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Bay, will be not less than $20,000, inclusive of the costs of the condemnation proceeding.

The port, in cooperating with the United States Army engineers, has also secured permits and easements from owners of adjacent lands for such disposal purposes, and it is confidently believed that satisfactory and adequate disposal areas will be available when construction work commences.

THE CRITICAL LUMBER SHORTAGE Now LIMITING HOUSING AND POSTWAR

CONSTRUCTION

This Nation and the entire war-ravaged, civilized world are critically in need of manufactured lumber for home building and postwar construction.

The last great virgin stand of commercial saw timber of the West, approximately 177,000,000,000 feet b.m., exists within a 150-mile radius of the port of Coos Bay. Of this tremendous national timber resource, the United States Government is the owner of in excess of 50,000,000,000 feet b.m. (revested Oregon & California grant lands, and lands in the national forest reserves). Much of this timber is mature, overripe and should be logged, manufactured, and transported into he channels trade and industry at once. By reason of State and Federal regulations, this great timbered area will be logged on a "sustained yield" basis in the future and, by reason of such regulations, a production yield of not less than 750,000,000 feet b.m., per annum, is now assured for an indefinite future, barring only fire destruction.

The greatest limiting factor to the building of homes in the United States and to postwar industrial development is the shortage of manufactured lumber. Nowhere in the Nation can be found a comparable stand of commercial saw timber ready and available to meet this critical emergency.

As has heretofore been vividly shown, Coos Bay is now entering into a beginning cycle of lumber production. The great lumber-producing ports of the Northwest-Puget Sound, Grays Harbor, Willapa Bay, and the Columbia Riverare all reflecting the downward trend of lumber production, as shown in their records of water-borne lumber traffic.

Despite the insufficient water depths and navigation aids, Coos Bay is demonstrating a definite upward trend of increased lumber production.

When the Coos Bay Harbor has been improved so as to accommodate fullcargo shipments, lumber production in this entire area will be increased and the critical need of the Nation for this necessary product will be relieved and ameliorated.

CONCLUSION The undersigned port of Coos Bay, representing the local interests and the general public of the State of Oregon, interested in the development and improvement of the Coos Bay waterway, respectfully submits and asserts that a critical emergency now exists and that the improvements recommended in the review report of the United States Army Engineers for the establishment of water depths of 40 feet mean lower low-water on the bar entrance, and 30 feet mean lower lowwater in the inner harbor ship channel are immediately necessary to serve and accommodate the present and future water-borne transportation needs of southwestern Oregon.

Dated this 30th day of April 1946.
Respectfully submitted.

PORT OF Coos BAY (OREG,).
By FRANCK G. Shaw, President.

JOHN C. KENDALL,
Counsel for Port of Coos Bay.

STATEMENT OF HON. HOMER D. ANGELL, A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF OREGON

Mr. ANGELL. Mr. Chairman, may I commend my colleague for the very fine presentation he has made, and certainly he is qualified to speak on this subject. He has lived in that area; has been in the newspaper business and perhaps is as well informed on that whole area as any man could be.

It was

I would like also, Mr. Chairman, to say that I heartily agree with Congressman Ellsworth in what he has said.

The port of Coos Bay, Oreg., is one of the major ports for off-shore and intercoastal shipping on the west coast between Portland and San Francisco, Calif. The proposal before the committee at this time is a recoinmendation by the Chief of Engineers, United States Army, for channel deepening and harbor improvements to provide for the accommodation of vessels requiring up to a 30-foot draft. The tonnage originating at the port of Coos Bay is important in the commerce of this country as well as other nations of the world. Changes brought about by wartime shipping make it imperative that the proposed improvements in the harbor be made if the port of Coos Bay is to enjoy its past volume and continue its normal growth.

The importance of the products originating at the port of Coos Bay is amply demonstrated by the shipping to and from that port during the war. Because of the fact that the present channel depth is only 24 feet, Liberty ships and other large, efficient vessels, built during the war, were unable to take on full cargo at this point, since their draft requirements were from 28 to 30 feet when loaded. essential that the materials available at Coos Bay be moved, and in consequence, these large vessels were forced to travel to Coos Bay with partially filled bunkers of oil, take on as much cargo as would still permit the vessels to leave the harbor, and backtrack to another port to complete their cargoes and take on their full bunkers of oil. This was a wasteful and costly procedure, and much valuable time was lost. Approximately half of the vessels which called at Coos Bay during the later war years were compelled to do so under such circumstances.

The port of Coos Bay is located at the gateway of one of the most important lumber-producing areas in the United States. In the tributary area adjoining Coos Bay and southwestern Oregon, there is an estimated stand of prime lumber of 178,000,000,000 board feet. Located in the tributary area and the adjoining area are 60 operating sawmills, with an annual capacity of approximately 450,000,000 board feet. Savings in transportation costs alone to these mills average approximately $3 per thousand board feet. It is estimated that the annual lumber production, which would flow through the port of Coos Bay, will be 600,000,000 board feet. In view of the great timber reserves in this area, and the sustained yield cutting program, the facilities afforded by the proposed improvements will be needed and fully utilized indefinitely.

Within the tributary area to Coos Bay, there are excellent potential mineral industry developments, and well-developed fruit, vegetable, and dairy-products industries which production is principally canned or processed for shipment. These industries are expanding, and new industrial developments are in prospect at this time.

The need for the channel improvements is well justified by the Army engineers in their estimates, showing that, with the proposed improvements, the water-borne traffic at Coos Bay will increase from a prewar yearly average of 550,000 tons to a figure of 967,000 tons in the years following completion of the project. In further justification, the Army engineers show that the ratio of benefits to costs is exceedingly favorable, being 1 to 1.97. The district engineer, in his recommendations and report, estimated certain collateral benefits which would accrue to Coos Bay and the tributary area. When these collateral benefits are added to the direct benefits, the ratio of cost to benefits is 1 to 2.64.

In view of the favorable ratio of benefits to cost, the great potential increase in tonnage originating out of the port of Coos Bay, the demonstrated need for the harbor improvements and channel deepening and the careful survey and recommendations of the Chief of Engineers, I feel this project is amply justified and warrants favorable action.

Mr. PETERSON of Georgia. I wish to subscribe to what Mr. Angell has said and to commend

Congressman Ellsworth for the fine presentation he has made, and I am sure that the people will appreciate the good work he is doing in this respect as well as in many other respects.

Mr. ELLSWORTH. I thank the chairman very much, and I would like to take this opportunity to invite the chairman and members of the committee to come out and visit Oregon again; I am sure you will enjoy it.

Mr. ANGELL. I will be out there.

Mr. PETERSON of Georgia. Colonel Feringa, suppose we proceed with the Coos Bay project.

Colonel FERINGA. Mr. Chairman, the report on Coos Bay, Oreg., is in response to a resolution adopted January 26, 1945, by the Senate Commerce Committee. It is also on a report authorized by the River and Harbor Act approved March 2, 1945.

Coos Bay is a tidal U-shaped estuary on the Oregon coast 200 miles south of the mouth of Columbia River and 445 miles north of San Francisco. It is 15 miles long, averages 1,200 feet wide at low tide, and has channel depths varying from 22 to 30 feet over the entrance bar to Guano Rock 1 mile inside, thence 21 to 26 feet to Smith's mill, mile 15.

The improvement authorized by Congress provides for two rubblemound, entrance jetties; dredging on the entrance bar; a channel 24 feet deep and 300 feet wide through Pigeon Point Reef, mile 2.5; thence an inner harbor channel to Smith's Mill, 24 feet deep and generally 250 feet wide increased to 450 feet at the railroad bridge, mile 9, and 300 feet wide in front of North Bend, mile 11.5, and the town of Coos Bay, mile 14; a turning basin 1,000 feet long and 600 feet wide opposite Coalbank slough just above Coos Bay; and a cahnnel 22 feet deep and 150 feet wide above Smith's Mill to Millington on Isthmus slough, mile 17.

Costs of the existing project to June 30, 1945, exclusive of contributed funds, were $1,120,764 for new work and $5,508,362 for maintenance.

Local interests have expended $627,682 for dredging in bay and harbor $360,000 for terminal facilities, plant, and equipment and have contributed $11,100 for dredging.

Commerce of Coos Bay for the period 1925 to 1944, inclusive, fluctuated between a high of 652,958 tons in 1937 and a low of 182,810 tons in 1932, averaged 477,682 tons annually, and consisted principally of shipments of lumber and its products and receipts of petroleum and its products. The commerce in 1944 was transported in 4,576 in-bound and out-bound trips of steamers drawing up to 24 feet and motor vessels and barges drawing up to 12 feet.

Coos Bay, North Bend, and Coquille, with populations of 5,259, 4,262, and 3,327, respectively, are the principal towns in the tributary area of approximately 4,000 square miles. The total population is about 42,000. Processing of forest products is the principal industry in the area where the standing timber is estimated at 4712 billion feet, board measure. There are 72 sawmills operating with an annual cutting capacity of 800,000,000 feet. Other industries include the production of plywood, blind slats, battery separators, and various other wood products and the processing of agricultural products. The annual catch of fish is estimated at 4,000 tons.

Local interests request enlargement of the channel to a width of 300 feet suitably widened at the bends, and to a depth of 40 feet over the Coos Bay bar and through the entrance thence 30 feet to the Coos Bay Lumber Co. mill near mile 15, and adequate turning basins at North Bend, town of Coos Bay, at some intermediate point between those towns, and at the upper terminus of the channel. They also desire anchorage grounds at miles 3.5 and 7. They claim the improvement would enable the postwar deep-draft vessels to load to capacity and thereby effect substantial savings in transportation charges.

The Board recommends modification of the existing project for Coos Bay, Oreg., to provide for a channel across the outer bar 40 feet deep at mean lower low water, and of suitable width with dimensions reduced gradually to Guano Rock; a channel 30 feet deep at mean lower low water and generally 300 feet wide thence to the mouth of Isthmus slough; turning basins of the same depth and 1,000 feet long and 600 feet wide opposite Coalbank slough and at the city of North Bend; anchorage basins 600 feet wide by 2,000 feet long at mile 3.5 and near mile 7.

The Chief of Engineers concurs in the views and recommendations of the Board.

The improvement is recommended subject to the provision that local interests give assurances satisfactory to the Secretary of War that they will (a) furnish free of cost to the United States necessary spoil-disposal areas for new work and subsequent maintenance as and when required; and (b) construct and maintain any additional terminal facilities necessary to the full use of the port, such facilities to be open to all on equal terms. Cost to United States for new work_.

$5, 689, 000

Cost of annual maintenance.
Interest and amortization ---

235, 000 228, 000

Total annual carrying charges.

463, 000 The district engineer in estimating benefits included certain collateral benefits. The Board agrees fully with the district engineer in the estimates of savings in transportation charges on lumber and logs, pulp, sulfur, petroleum and its products, and general merchandise. The Board, however, prefers the more conservative point of view which does not include the collateral benefits which in part are offset by other considerations. Eliminating these collateral benefits, the Board estimates the total benefits properly creditable to the im

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provement at approximately $900,000 which indicates a cost-benefit ratio of 1.0 to 1.9. The Board therefore concludes that the proposed channel improvement is economically justified.

Briefly, referring to this map, there is a channel now authorized to be 24 feet by 300 feet wide. At about the point where the channel turns north, there is a channel authorized 24 feet and 300 feet wide. We recommend that that channel be deepened to 40 feet and widened to 1,000 feet, and then the channel would progressively decrease to 35 feet in depth and 500 feet in width until we get to this location [indicating, and at that location we recommend that the channel be deepened to 30 feet with a width of 300 feet.

The total estimated cost is $5,689,000.
Mr. PETERSON of Georgia. What is the distance?
Colonel FERINGA. The distance is 14.7 miles.
Mr. PETERSON of Georgia. Is that salt water?
Colonel FERINGA. Yes, sir.

Mr. PETERSON of Georgia. Are there any fresh-water streams that enter into this bay?

Colonel FERINGA. There are some fresh-water streams but this part is all salt water.

The Governor is in favor of the improvement, and there is no opposition, as far as I know.

Mr. PETERSON of Georgia. Do ships enter there now?
Colonel FERINGA. Yes; they do.
Mr. PETERSON. of Georgia. Do they go all the way into Coos Bay!

Colonel FERINGA. Yes; they go all the way into Coos Bay. Lumber mills are located along this stretch, and go well into the bay.

The reason for recommending this depth is the inherent economy in using larger ships, and, also, some of the ships they are now using cannot load to full capacity.

Mr. PETERSON of Georgia. Is there a railroad now running into Coos Bay?

Colonel FERINGA. Yes; the Southern Pacific Coos Bay branch.
Mr. ANGELL. That is the only railroad that serves that section.

It is true that the largest stand of Douglas fir timber in the world is in that area.

Colonel FERINGA. Yes, sir.

Mr. ANGELL. That is perhaps the largest center of timber production now anywhere in the United States. Colonel FERINGA. Now; yes, sir.

Mr. ANGELL. Originally it was further north in the State of Washington, but much of that stand was logged out.

Colonel FERINGA. Yes, sir; originally there also was much timber in the Gulf States, but that has now been greatly depleted.

Mr. ANGELL. In the hearings was there any opposition developed to that project?

Colonel FERINGA. I am not aware of any. There was no opposition before the Board. The only thing in which the Board differed with the district engineer was that from the Board's standpoint, only so much of the benefits as are not definitely tangible that we can prove should be included.

Mr. PETERSON of Georgia. What is the ratio of benefits to cost on this project ?

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