to the whole Ohio River Valley, which is a very dangerous flood valley. Cincinnati and on down the river, even the Mississippi River Valley floods will be helped by this project. I am very anxious for it to be put in if the committee sees fit to do so.

PREPARED STATEMENT

May I make this statement a part of the record.

Senator KNOWLAND. That statement may be made a part of the record.

Senator BRICKER. And I will advise the Zanesville Chamber of Commerce they can submit their maps.

Senator KNOWLAND. Tell them the committee will be glad to have them, and we are glad to have had you appear before the committee. Senator BRICKER. Thank you, Mr. Chairman. (The statement referred to follows:)

STATEMENT OF HON. JOHN W. BRICKER, A UNITED STATES SENATOR FROM THE STATE OF OHIO

The Dillon Reservoir project was first authorized by the Congress in 1938. No appropriation was made at that time to get the work under way. By the time the next Congress was ready to consider appropriations, the economic strength of the country was being devoted to World War II. After World War II, the project was started, but was again interrupted when the events in Korea intervened. Up to the present time $9,200,000 has been spent on the Dillon project. This is estimated to be about one-third of the total cost. Most of the work thus far done consists of grading for relocation of trackage of the B. & O. Railroad. Until the relocation work is completed, the project cannot be turned over to the railroad, which act would relieve the Federal Government of any responsibility for maintenance of the new right-of-way.

Piers and abutments were completed about 4 years ago for construction of three railroad bridges. Steel for the two larger bridges has already been fabricated and is now stored at Zanesville. The bridges are ready for erection, and this phase of the work should go forward promptly.

When completed, the Dillon Reservoir project will produce annually more than $1 billion, in estimated flood benefits. Almost $100,000 more in benefits will accrue to the public through conservation, public use, water supply, sanitation, and navigation.

The Dillon project is not intrinsically a project designed for local protection. It is an integral part of a comprehensive flood control plan for the Ohio River Basin. The Licking River on which the dam would be located is tributary to the Muskingum which in turn is tributary to the Ohio River. The Army engineers estimate that the Dillon Dam would be effective to hold back 4 feet from the crest of any Muskingum River flood. The sum of $2 million requested in the President's budget for advancement of the Dillon Reservoir work could be soundly expended within fiscal 1954. Such expenditure would do much to temper a dip in employment which is now being felt in the trade areas surrounding both Newark and Zanesville.

Completion of the Dillon Reservoir project has already been too long deferred. Failure to appropriate the funds requested for advancement of the project would contribute to great wastage of the work thus far done. Granting of the appropriation would permit the accrual of both short-term and long-range benefits.

Senator KNOWLAND. I have asked Senator Dworshak to take over the meeting. I have another meeting that I must attend at this time. Senator DwORSHAK (presiding). The committee will now hear Mr. Howard Munro on Panama Canal operations.

PANAMA CANAL

STATEMENT OF HOWARD E. MUNRO, LEGISLATIVE REPRESENTATIVE, THE CENTRAL LABOR UNION AND METAL TRADES COUNCIL, A. F. OF L.

GENERAL STATEMENT

Mr. MUNRO. Mr. Chairman and members of the committee, my name is Howard E. Munro. I am the legislative representative of the Canal Zone Central Labor Union and Metal Trades Council. I have been an employee of the Panama Canal Company and have lived on the Canal Zone since May of 1943, 3 months short of 11 years. At present I am on leave without pay from the Panama Canal Company.

The organizations which I represent are the central bodies of 26 unions affiliated with the American Federation of Labor. The membership of these unions are the United States citizens employed by the United States Government to operate, maintain, and protect the Panama Canal.

On behalf of the United States citizen employees on the Canal Zone, I desire to thank the committee for its fair treatment accorded them by restoring the 25 percent override on their salaries and ordering an independent study made of the wages paid on the Canal Zone when considering H. R. 5376 last session.

BOOZ, ALLEN & HAMILTON STUDY

The management consultant firm of Booz, Allen & Hamilton was engaged by the Panama Canal Company to make this study. The report, with the company's recommendations, has been submitted to the legislative committees of Congress with copies to the Appropriation Committees as ordered.

I have been informed by the chairman of the Panama Canal Subcommittee of the Committee on Merchant Marine and Fisheries, Congressman John J. Allen, Jr., that the subcommittee will investigate the application of Public Law 841, 81st Congress, dealing with the Panama Canal Company, and will include the Booz, Allen & Hamilton report. Hearings have tentatively been set to start during the month of March.

As it appears to me that the intent of this committee was to let the legislative committees of Congress review this phase of the Panama Canal Company operation, I will not burden you with further details, other than to say the employees on the Canal Zone endorse the Booz, Allen & Hamilton report 100 percent and expect to receive favorable action on its recommendations.

I have appeared before the House Civil Functions Subcommittee on Appropriations, and it is my understanding they will print the Booz, Allen & Hamilton survey, with appendix, in their record.

REFERENCE TO RENT SURVEY OF 1952

We wish to call to your attention that this is the second study and report made by outside interests which has made recommendations

favorable to the employee. The first was made in November and December 1952. This was covered in my testimony before this committee last year. The employees have not received any noticeable improvement in their conditions as a result of the first study, but are hopeful that the investigations to be made by the Merchant Marine and Fisheries Committee will make the corrections necessary to incorporate the recommendations of both studies.

MORALE ON THE CANAL ZONE

The residents of the Canal Zone were impressed by the interest expressed by the recent visitation of this committee to the zone. The morale of the employees has, for some time, been so low as to be practically nonexistent. The recommendations of the Booz, Allen & Hamilton survey, the announcement that the House Merchant Marine and Fisheries Committee will review the survey along with Public Law 841, 81st Congress, and your visit to the zone, have raised their morale and restored their faith that their interests are being taken care of.

DUPLICATION OF FACILITIES

We realize there is a problem of duplication of facilities on the Canal Zone which this committee is trying to solve. We respectfully request that the committee give consideration to the civilian employee aspect of this question. The geographical location of the townsites with the connected transportation problem is a major problem to our people. Also there is the military-civilian problem inherent in the military rank system which I covered in my testimony before this committee last year.

I shall be glad to answer any questions the committee may have regarding the Booz, Allen & Hamilton study, elimination of duplication, and Canal Zone conditions affecting the employees.

Senator DwORSHAK. Are there any questions?

For the benefit of the members of the committee who have just come in from their other meeting, we have just heard a statement by Mr. Howard E. Munro, who represents the Canal Zone Central Labor Union and Metal Trades Council in the Canal Zone. Due to the recent visit of some of the members of the subcommittee earlier this month it is possible that there may be questions in the minds of the committee members.

When were you in the Canal Zone last?

Mr. MUNRO. I came up on the boat January 1, getting here in the States on the seventh.

Senator DwORSHAK. Have you had some favorable reports from the Canal Zone on the recent visit of members of this subcommittee?

VISIT OF COMMITTEE

Mr. MUNRO. Yes. Our group has reported to me that they had a meeting with the committee and presented their case and were very impressed with the reception that they received. I believe this is the first Senate committee of any size that has been there to look things over, and they feel that with the firsthand information you have that you will be in a much better position to judge the report.

Senator DwORSHAK. The delegation spent only 3 days in the Canal Zone, but, of course, that was a revelation to those of us who have never been in the zone previously. I can say for myself that I was greatly impressed by the magnitude of the operations there in the canal and the scope of the problems confronting the government in the Canal Zone, involving, as it does, local rate employees and the American citizens who are employed in the zone. While we are accustomed to having many very bewildering problems, we found out in the Canal Zone you have about every problem that exists. Mr. MUNRO. That is true.

Senator DwORSHAK. I am sure that the information that we acquired there will be of great value to us in the consideration of the appropriation bill for the zone for the next fiscal year.

Do you have any questions?

Senator YOUNG. I was going to ask Mr. Munro, I have not had a chance to read all of the statement yet, but are you appearing on behalf of the 25-percent differential plus all of the fringe benefits recommended by the study?

Mr. MUNRO. That is correct, sir.

Senator YOUNG. All of the fringe benefits?

LEGISLATION NEEDED

Mr. MUNRO. As I said in the statement, the Merchant Marine and Fisheries Committee is going to go into the whole setup of the canal, including Public Law 841, and instead of burdening this committee with all the detail we thought we would present our case over there and let them take care of the legislative program.

Senator CORDON. It is a problem where legislation is needed; it is not just a simple appropriation matter?

Mr. MUNRO. That is correct. The company has stated that legislation is needed, and I have been informed by them that they have their proposed legislative changes in order to present to the committee when they go into detail.

Senator ELLENDER. Are you assured that this legislation will be enacted during this session?

Mr. MUNRO. We are very hopeful that the shipping interests, on whom we are presently waiting to finish their study, will not delay us.

DUPLICATION OF FACILITIES

Senator ELLENDER. In the last paragraph of your statement here you have mentioned duplication of facilities. Will you enlarge upon your statement there?

Mr. MUNRO. Yes, sir. I would like to point out one of the conditions of elimination of duplication with the so-called service activities or the commonly called clubhouse. Take, for example, the town of Gatun. That is the locks town on the Atlantic side. The shift worker who goes to work at 3 p. m. in that townsite has to go to Margareta to get his meal and his lunch in order to take it to work with him.

Senator CORDON (presiding). How far is that?

Mr. MUNRO. That is about 7 miles.

Senator CORDON. How does he get there?

Mr. MUNRO. If he is fortunate enough to own a car he has good roads; otherwise he has to go in the so-called cheva. I think some of you gentlemen have seen them, which is a poor substitute for bus

service.

Senator CORDON. Something like the senatorial kiddy-cars that we

use.

Mr. MUNRO. Not quite as easy riding.

Senator ELLENDER. How is it handled now?

Mr. MUNRO. Before the reduction of service in the clubhouse, the clubhouse was open so that before a man went to work he could get his main meal and have a lunch packed to take to work with him. I am speaking of the bachelors, and there are a considerable number of bachelors on the Canal Zone.

Senator ELLENDER. They do not cook for themselves; they depend upon restaurants? Is that it?

Mr. MUNRO. In a good many cases they do, sir.

CLUBHOUSES

Senator ELLENDER. To what extent are these clubhouses subsidized by the Canal Company?

Mr. MUNRO. At the present time they are not subsidized; they are self-supporting.

Senator ELLENDER. How was it before? You are contemplating a change, are you not?

Mr. MUNRO. I am not too sure how they were actually financed, but I believe that there was no interest charged on the building, but I think, apart from that, they were self-supporting.

Senator ELLENDER. Has the Canal Company dispensed with these clubhouses?

Mr. MUNRO. Yes, sir, they have.

Senator ELLENDER. And you are saying now that they should be reinstated?

Mr. MUNRO. I believe that they should be, sir.

Senator ELLENDER. How many are there that should be reinstated, and where should they be located?

Mr. MUNRO. The present program, as I understand it, closes the Ancon clubhouse the 1st of March.

Senator ELLENDER. That is on the Pacific side?

Mr. MUNRO. The curtailment of Gatun and the curtailment at Cristobal is such that they are shutting down the services so they are not available at all times for all people. There is no other place to go. Senator YOUNG. Is that for United States and other citizens? Mr. MUNRO. That is correct.

Senator CORDON. It might be a good place for someone to open a restaurant.

Mr. MUNRO. According to the treaty obligations, I think that is prohibited. In other words, the United States has the monopoly of the Canal Zone facilities.

Senator CORDON. That would appear to be another case, with adequate proof, that a monopoly is not in the public interest.

Senator ELLENDER. Are there any other duplications of facilities that you desire to comment on?