ing to $11,800,000, in addition to a loss to the region of 5 billion kilowatt-hours of energy or more. Approval of an appropriation for $45 million is required to keep the project on schedule.

In the case of Chief Joseph Dam, the House subcommittee's allocation of $27 million will probably result in a delay of 1 year in the delivery of power from generation units 5 to 16, entailing a loss in power revenues of some $7,800,000. An appropriation of $30 million is required to assure scheduled delivery of power. The $24 million granted for McNary Dam will undoubtedly suffice to maintain construction scheduled, but is not sufficient to permit payment to the railroad of $2,500,000 due for relocation of a bridge.

In the matter of planning funds, I would most seriously urge upon the subcommittee the advisability of providing the requested $46,000 for the Libby project and the $20,000 for Ice Harbor project. In the case of the Libby project, 6 million acre-feet of storage will be added upstream, thereby firming up critically needed power and increasing the output of main-stem Columbia River dams downstream. It is my understanding that this amount is necessary for planning on the new, upper site of the dam with regard to the proposed rail relocation plan and to prepare for resubmission through the International Joint Commission. The $20,000 request for Ice Harbor is required for planning on the project in its role as a unit in the main control plan of the Columbia River, in conjunction with storage projects on the Snake and Clearwater Rivers.

I should also like to direct the attention of the subcommittee to the request for $10,000 to complete surveys on the Okanogan River and the Similkameen River. The drainage areas of these two rivers contain important water-resource potentialities, and the latter river particularly has in its spring runoff often contributed huge quantities of uncontrolled water that has resulted in major damage and loss of life in downstream areas. Studies are now in the advanced stages, and this money is needed to carry them to the point at which negotiations can be pushed with Canada, through the International Joint Commission, looking to the ultimate control of the floodwaters of the Similkameen.

In conclusion, I should like to point out to you gentlemen the vital importance and necessity, particularly in our Pacific Northwest, of planning funds for the Corps of Army Engineers to be used, as indicated in the President's budget, for participation in the planning of projects in cooperation with non-Federal agencies under the new partnership policy of the Department of the Interior and of the administration, as announced by Secretary McKay last August, and restated by President Eisenhower in his state of the Union message. Under this plan, the Federal Government would be entirely relieved of financial participation in the power features of multipurpose projects, which is almost always by far the major share of the cost, and even, in some cases, of the cost of some of the ordinarily nonreimbursable features.

In the Pacific Northwest, this partnership development of our natural resources has taken hold rapidly, and several applications have already been filed with the Federal Power Commission for preliminary permits for dam sites to be developed in conformity with the principles of this new policy. I, myself, have already introduced a bill for the authorization of the construction of the Rocky Reach Dam, a multipurpose project, on the Columbia River a few miles upstream from my hometown of Wenatchee, Wash. This legislation provides that the Chelan County Public Utility District develop and finance the project, and that the studies, planning, and the actual construction be performed by the Army engineers.

You members of the Civil Functions Appropriations Subcommittee will be gratified, I am sure, to learn that the bill also provides that the Federal Government be reimbursed by the Public Utility District for the work performed by the Army engineers in connection with the dam. I expect in the near future to introduce another bill of like nature for the development of the Wells site on the Columbia River by the Douglas County Public Utility District. Other legislation is before the Congress seeking to take advantage of the principles of the partnership approach for the development of our resources.

In view of the lessened obligation of the Federal Government from a financial standpoint under this partnership policy, it rather seems to me that it is its clear duty to assure that projects seeking to qualify under its principles will not be delayed for want of funds available to the Corps of Engineers with which to perform studies, surveys and planning functions in connection with these projects. This is the very least cooperation we can accord to the local agencies involved.

I, therefore, also urge upon you gentlemen the need for anticipating these cooperative functions through the appropriation of the $5 million indicated in the President's budget as desirable for this purpose. To fail to do so may also operate to delay new Pacific Northwest projects at least a year and maybe more. Our need for new starts in projects involving the generation of hydroelectric energy is too acute to risk such delays if it lies in our power to avoid them.

Finally, I would like to say to you gentlemen of the subcommittee that from the standpoint of sheer investment quality, the investment of the Federal Government in our Northwest dams will bear the closest scrutiny and emerge with a clean bill of health. Repayments on the power features of these dams are far ahead of schedule, and the rapidly-increasing market for their power generation assures orderly and eventual retirement of their indebtedness, with interest. Also, and this is most important, when the Federal Government has been completely paid off-and bear in mind this can come only from the light and power bills of our Northwest consumers-the Federal Government still owns the dams. Private investors would give their eyeteeth for an investment like this.

STATEMENT OF C. A. ERDAHL, CHAIRMAN, PACIFIC NORTHWEST UTILITIES
CONFERENCE COMMITTEE

The utilities of the Northwest through their conference committee have ap peared before the appropriation subcommittee of the Congress at regular intervals during the last 7 years. Each time the Congress has been urged to continue the Federal program of multipurpose development of the Columbia River and to maintain the rate at which provision is being made for power supply from development of that stream.

Throughout the years of World War II and in later years also, national need for what the Northwest produces has been good reason for the use of national funds to develop the production of atomic materials, chemicals, aluminum, planes, and ships by making electric power available.

During those years appropriations which Congress made for Federal power development were matched by the non-Federal utilities, both public and private in development of their own systems. Their investment in the 15-year period from 1942-56 will be more than a billion dollars. During the last few years they have continuously asked to be allowed to have an even greater share and responsibility in the partnership for power.

The Federal Government appears willing to be relieved to some extent of the obligation to provide power supply assumed because of national need. This has been made apparent by the retarding of new starts and the slowing up of construction on those projects now under way.

The non-Federal addition to power supply in the Pacific Northwest during the last 5 years has been more than 800,000 kilowatts of units brought onto the line. During that time the Federal Government units put into service have amounted to 1,060,000 kilowatts (Coulee, Detroit, McNary, Hungry Horse).

For the next 5 years the Federal programs will bring on numerous units at Detroit-Big Cliff, McNary, Look Out Point, Albeni Falls, Chief Joseph, The Dalles, and at other points providing the appropriations for 1955 and succeeding years are adequate.

However, the total planned will be too little to meet the normal demand for power by 1960 without any new major industrial loads.

The non-Federal agencies all need time to develop the projects in the area which they could build. To accomplish their desire and that of the Federal Government to have them take on this task requires that the Federal Government appropriations be not reduced for 1955 to the point of delaying projects now under way.

We have received reports that the $11 million needed at this time to keep The Dalles and the $3 million needed to keep Chief Joseph on schedule would be more than offset by the revenues from power sales of $11,800,000 from The Dalles and $7,900,000 from Chief Joseph if those projects are kept on schedule. These sums would otherwise be lost by delays.

This, however, is not our principal concern. It is that a year's delay or 2 years' delay, such as might result would certainly bring repetition at an early date of the power shortage of 1952-53. The area has not yet fully recovered from the industrial and domestic curtailment of power of that period.

Even beyond the need for keeping present projects on schedule there is a need for at least one new start immediately on the Columbia River.

There is attached a table showing the amounts of money spent by the various utilities in the last 5 years and the amounts which each anticipates spending in the next 5 years. The total is $1,579,924,262. The future expenditures are divided to show planning and site investigation separately from construction. These sums of money represent the installation of 3,234,000 kilowatts.

The amount of power installation compares favorably with the Federal program of installation totaling 3,154,000 kilowatts by 1960 at McNary, Chief Joseph, and the Dalles.

A greater amount of new construction cannot be anticipated until there is something more definite as to what partnership of Federal and non-Federal agencies in development can be worked out.

This will take time. Since Congress is giving attention to budget matters first, attention to partnership details which may require legislation will come second. To avoid a year's loss of time and to permit working out of a sound partnership program, at least one new start should be authorized at this time.

MOUNTAIN STATES POWER Co.

NORTHWEST PUBLIC POWER ASSOCIATION.

PACIFIC POWER & LIGHT CO.

PORTLAND GENERAL ELECTRIC Co.

PUGET SOUND POWER & LIGHT CO.

SEATTLE CITY LIGHT.

TACOMA CITY LIGHT.

WASHINGTON WATER POWER CO.

Hon. WILLIAM F. KNOWLAND,

UNITED STATES SENATE,

COMMITTEE ON LABOR AND PUBLIC WELFARE,
March 17, 1954.

Chairman, Subcommittee on Civil Functions, Committee on Appropriations, United States Senate, Washington, D. C.

DEAR MR. CHAIRMAN: Please let me enclose for consideration by the members of your subcommittee a self-explanatory letter from Mr. E. I. Runner, chairman of the Wheeling Floodwall Authority, Wheeling, W. Va.

With every good wish and the kindest of regards, I am, always,
Faithfully yours,

M. M. NEELY.

CITY OF WHEELING,

Hon. WILLIAM F. KNOWLAND,

Wheeling, W. Va., March 10, 1954.

Chairman, Subcommittee on Civil Functions,

Senate Committee on Appropriations, Washington, D. C.

HONORABLE SIR: Again we wish to direct attention to the imperative need for providing flood protection of properties-industrial, domestic, and commercialalong the east bank of the Ohio River through construction of the WheelingBenwood flood-protection project.

During the past many years voluminous reports and vast amounts of statistical data have been compiled with the various bureaus in Washington. The project has been approved by the United States Corps of Engineers from the Chief in Washington to the field division and district. Evidence has been submitted, time and time again, as to the economic justification of the project, and once again we are desirous of registering our earnest supplication for tangible recognition of this much-needed project by your committee.

According to district engineers at Pittsburgh, Pa., a total of $259,000 in varying amounts has been allocated and spent in surveys, planning, and preparation of specifications between the years of 1938 and 1953, so that today we understand work can begin almost immediately after allocation of construction moneys.

We would like to emphasize that the unemployment situation in the WheelingBenwood industrial areas, as reflected by the unemployment compensation claims, indicate an increase in excess of 52 percent as of December 31, 1953, when compared with the same date in 1952; and the current unemployment condition shows an unhealthy situation and a serious impairment that will require the application of the proper measures to bring about desired results.

It is, therefore, believed that the inclusion of funds in the 1954-55 fiscal budget to begin construction of this project would materially relieve the present unemployment situtaion and be a tonic toward a vast increase and an upturn in the business and industrial life of our area and thus provide not only employment, but at the same time the construction of this project will mean the saving of many, many millions of dollars to the property and industrial interests of the Ohio Valley.

Respectfully yours,

WHEELING FLOODWALL AUTHORITY,
E. I. RUNNER, Chairman.

ST. ANTHONY FALLS PROJECT

STATEMENT OF HUGO G. ERICKSON, CITY ENGINEER, MINNEAPOLIS, MINN.

My name is Hugo G. Erickson. I am the city engineer of the city of Minneapolis.

The City Council of the City of Minneapolis has directed me to appear before your committee to urge appropriation of adequate funds for the continuance of work in connection with the St. Anthony Falls project in the city of Minneapolis. I would like to express my appreciation to the committee in behalf of the city of Minneapolis for the privilege of appearing here.

The extension of the 9-foot channel in the Mississippi River to the north city limits of Minneapolis, Minn., was authorized by Congress in 1937. The work essentially consists of the dredging of a channel to the proper depth and width,