type of vessel which deliver to the stone docks at the head of navigation in Grand River, draw less than 20 feet, a depth of 20 feet will accommodate the traffic in the Grand River upstream from the knuckle in the ore dock.

(e) Enlargement of winding basin near the upper limits of the navigable channel.-Present facilities are not sufficient to permit turning the larger type of vessel in the river. An enlarged turning basin would be advantageous to general navigation.

37. Precedents.-(a) At the public hearing local interests argued that since the Federal Government has assumed responsibility for providing and maintaining the channels in the inner or river channels of other ports, then in all fairness, it should assume the same responsibility for the river channels now maintained by the local interests of Fairport.

(b) There are precedents for either local interests or the Federal Government paying for a part or all of the locally maintained channels. Any precedents so advanced have no bearing on the general problem of determining to what extent the Federal Government shall assume responsibility for the entire improvement and maintenance in any particular case. The determination of a fair division of expenditures should rather be based upon an equity between local and general benefits derived from the commerce using the harbor.

(c) Local interests presented a list of 12 harbors in which a portion or all of the local channels are maintained by the Federal Government. The large number of ports in which local interests do a proportion of the work, corresponding to their local benefits, was not presented. The claim is made that since, in some instances, the Federal Government takes care of very extensive channels with slightly developed abutting property, it should do the same for the Grand River which serves important terminals. If the local conditions and benefits in the other ports mentioned correspond to those in Fairport, an equitable distribution of expense in such ports would call for payment by local interests of some part of the cost there incurred.

38. Savings. Based upon computations reported in House Document No. 253, Seventieth Congress, first session, relating to benefits to be derived from deeper channels, and adjusting the results of these computations to take into consideration fluctuations in lake levels for the period 1910-34, it has been estimated that, for a maximum draft of 22 feet, reductions in transportation costs amount to 6.6 cents per ton of iron ore, and 2.6 cents per ton of stone.

If the entire cost of connecting channels be charged to the ore movement and the cost of harbors be charged to both ore and stone movements, then, after deducting all other charges, savings available for improvement by the United States at receiving harbors, assuming an annual movement of 40,000,000 tons of ore and 10,000,00 tons of limestone, become 3.3 cents per ton of ore and 1.5 cents per ton of stone. These savings for Fairport Harbor, based upon average tonnages for the period 1925 to 1934, inclusive, are as follows:

Iron ore, 1 678 378 tons at 3.3 cents_.
Limestone, 848,777 tons at 1.5 cents.

Total

$55, 400 12, 700

68, 100

The annual carrying charges of the suggested and authorized improvements are as follows:

Increased annual maintenance.

Improvement (4 percent on $501,500, cost of widening and deepening to the head of navigation)_

Depreciation (4 percent on $41,500, cost of bulkhead)__

Total.

$12,000

20, 060

1,660

33, 720

The ratio of expected savings to estimated annual charges is therefore about 2 to 1.

39. Conclusions. In arriving at conclusions based upon the facts developed and discussed in this report it is possible to follow either of two lines of reasoning:

First. To take the view that the Federal Government should assume the entire cost of securing and maintaining desired improvements, provided the requirements of commerce are such as to justify them, and provided further that the cost of such improvements is properly offset by savings.

Second. To take into consideration general and local benefits to be derived from desired improvements, and if justified by the requirements of commerce and by prospective savings to determine upon an equitable division of costs based upon relative benefits.

The deepening of the outer harbor and of the channel in Grand River to the head of navigation and the enlargement of the turning basin are desirable improvements in the interests of navigation.

That they are economically justified is indicated by the comparison of expected savings, with estimated annual charges shown in the preceding paragraph.

However, the economic justification of an improvement does not relieve local interests from equitable participation in its cost, dependent upon the extent of local benefits. With respect to the various items under consideration, therefore, the conclusions of the district engineer are as follows:

(a) Lengthening of proposed bulkhead on west side of river from 500 to 1,800 feet.-The cost of extending the bulkhead, beyond the 500-foot length already authorized, is not justified by probable benefits to navigation. If, upon completion of widening, the need for additional protection against bank erosion and consequent encroachment upon the channel should become evident, the situation can then be considered further.

(b) Extending the Federal project to the head of deep-water navigation. It is equitable that the cost of improving and maintaining the river channel above present project limits should continue to be a local responsibility. That the village and county governments derive a substantial income from taxes on water-front property has been shown. The fact that these governments do not now participate in the costs of improvement and maintenance does not affect the equities in the matter, nor relieve them of responsibility for such expenditure.

(c) Deepening the river channel from the limits of the Federal project, upstream to the knuckle in the ore docks.-Deepening is essential to the utilization of increased depths in connecting channels but, since the Federal Government proposes to assume the cost of deepening the outer harbor, it is equitable that local interests should

correspondingly improve the river channel. Since the river channel is but little disturbed by wave action, the requirements for 22-foot draft in this part of the harbor would be amply served by deepening it to 24 feet.

(d) Deepening the river channel above the knuckle in the ore dock to the head of navigation to provide for 21-foot draft.-There is no necessity for depths in this portion of the channel in excess of 20 feet, and its further improvement and maintenance is a local responsibility.

(e) Enlargement of winding basin near the upper limits of the navigable channel.-Such an improvement is desirable but should be undertaken by local interests.

40. Recommendations.-In view of the facts brought out in this report, it is recommended (a) that the provisions of the present project with respect to the construction of a bulkhead, and the widening of the mouth of Grand River, be interpreted to permit prosecution of the work in that part protected by the maintained portion of the west pier only, if it is not possible to do all of the work at one time; (b) that the request that the Federal Government assume responsibility for the improvement and maintenance of the channel above present project limits be denied.

J. A. O'CONNOR, Lieutenant Colonel, Corps of Engineers, District Engineer.