Mr. COLE. There are seasons of the year now that there can be no traffic on the Missouri River up to Kansas City. Is that not right? Colonel FERINGA. That is right. During the severe winter weather there will not be any traffic.

Mr. COLE. And also during the drouth years? I know I spent quite a lot of time on that Missouri River, fishing, and I have seen it where you could hardly get a rowboat down the river.

Colonel FERINGA. I think with the projects that have been authorized for construction both by the Department and by the Bureau of Reclamation—although I am careful to state that there is no demand on any water supply for navigation, because that was fought out bitterly, you remember, about 2 years ago-that with these contraction works and the water that would become available as it is released, we can have year-around navigation except for the winter months. Mr. COLE. Yes?

Colonel FERINGA. At this time, Mr. Chairman, may I present to the committee these waterway traffic graphs which we have prepared? I will ask Mr. Muller to pass them around. It shows the tremendous increase that has taken place on the waterways of the country.

The immediate area commercially tributary to a harbor at Sioux City includes portions of Iowa, Minnesota, South Dakota, and Nebraska, with a population of about 1,000,000.

Sioux City, Iowa, and Sioux Falls, S. D., with 1940 populations of 82,360 and 40,830, respectively, are its largest cities. Both are important manufacturing and commercial centers and livestock markets. Sioux City is the second largest city in Iowa and the leading industrial center in the Missouri River Basin above Omaha, Nebr. Sioux Falls is the largest city in South Dakota. Six major railroads and well-improved highways radiate from Sioux City into the tributary area, which is an agricultural region producing large quantities of grain and other farm crops, livestock, and dairy and poultry products. Also large quantities of commodities suitable for import by barge are consumed in the area.

Local interests in Iowa and South Dakota desire the construction of a harbor within the mouth of Big Sioux River, where it will be directly accessible to both States, and the use of the dredge spoil to fill the adjoining lowlands so that they will be suitable for future industrial terminal developments.

They point out that a harbor at this location would provide shelter for river craft from Missouri River ice flows and floodwaters.

The Board recommends improvement of Big Sioux River, South Dakota and Iowa, by dredging at the mouth of a channel 6,600 feet long, with project depth of 9 feet, 200 feet wide, in a short guide-wall protected entrance from the Missouri River and thence 400 feet wide to the upper end.

The CHAIRMAN. That is a little more than a mile long?

Colonel FERINGA. Yes, sir, a. little more than a mile.

Construction of levees to protect this channel and adjacent areas. on which the dredge spoil is to be deposited and provision of mooring facilities along the Missouri River immediately below the entrance. The Chief of Engineers concurs in the recommendations of the Board.

The improvement is recommended subject to the condition that no work shall be undertaken until local interests agree to furnish, with

out cost to the United States, all necessary lands, easements, rightsof-way, and spoil-disposal areas needed for the initial work and for subsequent maintenance when and as required, and give assurances satisfactory to the Secretary of War that they will construct and maintain under public supervision a public terminal with the necessary utilities and rail and highway connections open to all on equal terms.

The district engineer believes that after the Missouri River project. channel is sufficiently completed, about 1,690,000 tons of commerce, consisting largely of coal, petroleum products, and grain, will use the proposed harbor annually and estimates the resulting savings in transportation costs at over $1,182,000 during the 8-month navigation season. He attributes $31,000 of this benefit to the proposed harbor. In his opinion, the existence of the harbor will permit navigation operations for 2 weeks longer each season, and he estimates this benefit at $69,000 annually.

The harbor will make available a site for winter base for Government plant engaged in river work and lengthen the working season. The district engineer estimates its value for this purpose at $21,500 annually.

Provision of the harbor and filling the adjacent areas for industrial sites will enhance the value of the land. After offsetting the estimated total enhancement in land value by the cost to local interests for providing access roads and non-revenue-producing utilities, the district engineer estimates the net enhancement in land values at $321,000. At 4 percent interest this represents an annual benefit of $12,840, which he attributes to the harbor improvement.

These estimated annual benefits totaling $134,440, when compared with the estimated annual cost for the harbor of $37,040, indicate a ratio of costs to benefits of 1.0 to 3.6.

In accordance with existing law, we sent this report to the governors. The Governor of Iowa had no comment, and the Governor of South Dakota was in favor of the project but points out that due to the fact that this is a project which is national in scope, in that all the transportation benefits would benefit the entire Nation, he does not believe that anyone except the United States should pay for the costs of lands, et cetera. However, he has no objection to local interests assuming

that cost.

It has gone to the Bureau of the Budget, but we have not had a reply. It has gone to the Department of the Interior.

The CHAIRMAN. Any questions?

Mr. HOEVEN. Now, if I may present Mr. Forrest M. Olson, the mayor of Sioux City——

STATEMENT OF HON. FORREST M. OLSON, MAYOR OF THE CITY OF SIOUX CITY, IOWA

Mr. OLSON. Mr. Chairman, first I want to take this opportunity of thanking you very kindly for the courtesy that you are showing us

today by allowing us to appear at a time which really is previous to the time that we should be here.

For the purpose of the record, I would like to state that my name is Forrest Olson, and I am mayor of the city of Sioux City.

I would like to introduce into the record a brochure prepared by Sioux City and the chamber of commerce. With your permission, I would like to read some of the high lights that I have jotted down here, taken from this brochure.

In the interest of the development of the Missouri River Basin and especially in the development of the harbor and barge terminals at the mouth of the Big Sioux River, I wish to submit a brochure prepared by the city of Sioux City and the Sioux City Chamber of Commerce, in collaboration with South Dakota interests, pursuant to a discussion with representatives of the engineers, U. S. engineer office, Omaha, Nebr., on December 11, 1944, regarding the plan of improvement to provide harbor and barge terminals at the mouth of the Big Sioux River.

It has been prepared to demonstrate to the district engineers that the city of Sioux City and South Dakota interests, because of the local benefits which will accrue, will provide the required local cooperation and participation in the project; to present a preliminary plan being developed by local interests by which land adjacent to the Federal project will be developed for much needed new industrial sites; to show that the city of Sioux City has initiated measures to promote industrial expansion after the war and will vigorously encourage industry to utilize the proposed sites; and to evaluate the benefits in terms of enhancement of land values which the Federal project and the coordinated local plan will provide.

ADVANTAGES OF SIOUX CITY AS A SITE FOR HARBOR AND BARGE TERMINAL FACILITIES

Transportation: For many years the district engineers of the United States Army engineers of Omaha, Nebr., under the direction of the Chief of Engineers, Washington, D. C., have had as their assignment the task of controlling the devastating floods occuring in the Missouri Valley and the developing of the channel so as to make it navigable in order that this great midwestern area might utilize the opportunities provided in being a part of the great inland waterways system of America.

It is significant that each district engineer has designated Sioux City as the head of navigation in the plans prepared under their supervision. Some definite reason must be responsible for such decisions, and it may well be that the existing transportation facilities afforded at Sioux City, together with the designation of Sioux City as the terminal point of river navigation.

Trade territory: Retail area-Population: Located as it is, at the junction of three States, Iowa, Nebraska, and South Dakota, Sioux City has rightfully been termed "the shopping center of three States." Its retail shopping area is the largest in the State.

Wholesale area: The territory outlined and to which the facts in the tables apply, is the territory already intensely covered by the wholesale houses of Sioux City.

Many of the distributors and branch houses of Sioux City cover a much greater territory than here shown. Some of these cover all of Nebraska, Wyoming, Montana, North Dakota, and Iowa.

Taking into consideration a majority of the distributing houses of Sioux City send their salesmen into the outline territory regularly, the area shown is correctly listed as being a part of the Sioux City wholesale trade territory. See U. S. Department of Census figures covering 1940. This serves a total population of 1,375,000.

NEED FOR HARBOR AND DOCK FACILITIES

1. Presently planned facilities:

(a) Location: All existing plans for development of dock and harbor facilities for the port of Sioux City contemplate developments immediately on the main channel of the Missouri, a limitation which is imposed by the existing authorized project.

The city of Sioux City, through its authorized agency, the board of dock commissioners, has acquired title to approximately 1,600 lineal feet of shore line at about mile 800.6. This development will be restricted exclusively to public terminal uses and will not be available for private industrial development.

The additional river-front area lying downstream from this city dock site and within the corporate limits of Sioux City, embracing a shore line of about 21⁄2 miles, is already acquired by private industrial concerns or is unsuitable for industrial development. The shoreline area, lying upstream from the municipal dock site, with the exception of about 800 feet, consists wholly of a flood-basin area subject to annual overflow and which we understand may not be impeded by artificial fill for that reason.

Presently planned facilities, therefore, may be stated to occupy all available and usable harbor space within the corporate limits of Sioux City in the light of presently authorized channel development of the Missouri River.

1

(b) Adequacy: Presently planned facilities in Sioux City, already occupying virtually all usable harbor frontage, are wholly inadequate to meet anticipated normal future needs of river commerce at Sioux City.

The type of commerce available will demand adequate harbor frontage, with ample industrial area for sidetrack and highway vehicle service. As stated in subparagraph (a) of this title, present available industrial sites are already occupied, or held by private industries ready to construct individual terminals as soon as river navigation is made available. This leaves new industry, to be attracted by river commerce, without adequate opportunity for location.

A second feature essential to the accommodation of advanced river commerce at Sioux City is a winter, or "slack water," terminal for the accommodation of floating equipment during the winter lay-over at Sioux City, during extreme flood stage on the Missouri, and for floating repairs to barges and power units.

The main channel of the Missouri, the only present available space, is dangerously swift at flood stage, and during the spring run-off of channel ice is disastrous to any floating equipment exposed in its main

channel.

Sioux City, as the northern terminus of all navigation on the Missouri, is definitely in need of a winter harbor and of a slack-water harbor for storage, work, and safety area. Such a facility will result from the proposed Bix Sioux River mouth development.

2. Expected commerce: Sioux City is the natural gateway, and the logical point of contact for rail and highway commerce with water commerce, for all of the State of South Dakota, for all of the northern one-third of the State of Nebraska, and for approximately 5,000 square miles of northwestern Iowa.

Sioux City's normal market area embraces all of the foregoing territory and extends well into the States of Wyoming, Montana, North Dakota, and Minnesota.

The advent of actual and adequate river transportation service will undoubtedly result in greatly expanded demand for industrial sites and river terminal space in Sioux City.

Predominant downstream tonnage will consist of grain products. The CHAIRMAN. What does that consist of principally? Wheat, corn, or what?

Mr. OLSON. Both; wheat and corn.

The CHAIRMAN. Which predominates in your section of the State? Mr. OLSON. Corn.

The CHAIRMAN. But in shipping, your corn is consumed more at home than wheat, is it not?

Mr. OLSON. There is a lot of corn consumed there; yes. There will be considerable wheat also from South Dakota.

The CHAIRMAN. I notice in the grain shipments-year before last, I believe that consisted mostly of wheat; and a lot of beans are from up there somewhere.

Mr. OLSON. Yes; there are a lot of beans raised.

Mr. RANKIN. Judge, it would be of considerable aid to us if you would just insert your statement in the record and let us ask you questions about it.

Mr. OLSON. All right, sir.

The CHAIRMAN. That may be done. (The statement is as follows:)

CITY OF SIOUX CITY, IOWA.
DEPARTMENT OF PUBLIC AFFAIRS,
April 8, 1946.

COMMITTEE ON RIVERS AND HARBORS,

House of Representatives, United States. GENTLEMEN: In the interest of the development of the Missouri River Basin and especially in the development of the harbor and barge terminals at the mouth of the Big Siour River, I wish to submit exhibit No. 1 which is a brochure prepared by the city of Sioux City and the Sioux City Chamber of Commerce in collaboration with South Dakota interests, pursuant to a discussion with representatives of the engineers, United States Army Engineer Office, Omaha, Nebr., on December 11, 1944, regarding the plan of improvement to provide harbor and barge terminals at the mouth of the Big Sioux River.

PURPOSE

It has been prepared to demonstrate to the district engineers that the city of Sioux City and South Dakota interests, because of the local benefits which will accrue, will provide the required local cooperation and participation in the project; to present a preliminary plan being developed by local interests by which land adjacent to the Federal project will be developed for much needed new industrial sites; to show that the city of Sioux City has initiated measures to promote in