dustrial 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.

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

A. Transportation

For many years, the district engineers of the United States Army Engineers of Omaha, Nebraska, under the direction of the Chief of Engineers, Washington, D. C., have had as their assignment the task of controlling the devastating floods occurring 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.

Retail Area

TRADE TERRITORY

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 outlined territory regularly, the area shown is correctly listed as being a part of the Sioux City wholesale trade territory (U. S. Department of Census 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 shore-line 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.

(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 side-track and highway-vehicle service. As stated in subparagraph "a," of this title, presert 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 Big 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 expanding demands for industrial sites and river terminal space in Sioux City. Predominant downstream tonnage will consist of grain and grain products, and various processed agricultural products, including compounded livestock feeds (including buttermilk feeds), canned vegetables, soap, fertilizer, and miscellaneous manufactured goods. Upstream commerce, terminating at Sioux City for redistribution throughout the above trade area, will consist of coal, petroleum products, coke, lumber and forest products, agricultural machinery, sugar, salt, iron, and steel goods, (including cast- and wrought-iron pipe), cotton linters, cotton denims, sisal, oystershells, canned fruit and vegetables, empty bottles, fiber boxes, cotton, burlap, gunny and jute bags and bagging, rope, rubber tires, industrial equipment and machinery, window and plate glass, paint and oils, cottonseed oil, peanuts, and sundry other articles of staple commerce.

The foregoing in-bound and out-bound tonnage will require industrial distribution facilities at the Sioux City headwater of navigation, with direct harbor access, coupled with direct railway sidetrack connection, and similar highway connections.

3. New facilities required

As previously stated, all usable industrial sites with harbor frontage within the corporate limits of Sioux City are now occupied by actual or potential ownertenants, and little or no additional frontage is available. Grain, petroleum, and coal terminals, in particular, require ample operating space to permit service side tracks with "run-by" room to handle many freight cars.

The proposed Big Sioux River project will afford opportunity for the size and types of industry referred to. This site is immediately adjacent to main-line rail service, and to Federal highway avenues. It is wholly within the corporate city limits of Sioux City, with public-service facilities available, as elsewhere explained.

The foregoing treats exclusively of the Iowa, or Sioux City, side of the Big Sioux River. Of equal, or possibly greater, importance (to the State of South Dakota) is the projected development of the western bank area of the Big Sioux River project. The State of South Dakota does not have, under any presently authorized river-navigation project, direct access to the navigable channel of the Missouri River. Its only access at present is through the State of Iowa, encountering the traffic congestion of the Sioux City municipal area. Unquestionably, if South Dakota industry and agriculture is to profit fully from the benefits or river transportation, this additional project is highly desirable and necessary to its furtherance.

Plan of Area Development.-The sponsoring interests propose a development in the areas adjacent to the Federal harbor and terminal facilities, in general accordance with the preliminary lay-out, exhibit A, attached hereto.

A general description covering the principal enginnering features of the proposed development being as follows:

1. The areas adjacent to the Sioux River at its mouth consist largely of accretion lands composed of mixed deposits from both the Missouri and Sioux Rivers. A large portion of this area, particularly in South Dakota, is subject to periodic flooding. In view of this condition, it is considered essential that

such lowlands be filled to an elevation providing complete protection from high water conditions, and further that protective dikes be constructed along those portions of the project exposed to cutting action during flood stages in the rivers.

In connection with the area fill required, it is proposed that spoils from dredging incident to the construction of the Federal project be employed for this purpose, as disposal of this waste material must be accomplished, and the area to be developed is well located for such disposal. This would be treated as being in the nature of a contribution from the Federal project, and accomplished without cost to the sponsors.

2. The preliminary plan contemplates the construction of all necessary utilities to provide complete services, as may be demanded by the development. These utilities would consist principally of sewers, water, gas, and electric services, described in general as follows:

Sanitary sewers will be provided of ample capacity to remove all sewage wastes of domestic and industrial character originating in the area. Disposal of these sanitary wastes will presently be accomplished by discharge into the Missouri River, without treatment, as this river provides sufficient dilution and carries sufficient dissolved oxygen, so that no nuisance will be created downstream due to this disposal method. In this connection it may be observed that the city of Sioux City, including the large packing-house industry, now follows this proposed method of sewage disposal.

A separate sewer system will be provided for the removal of storm water. It is anticipated that, due to the nature of the soil, percolation of rain water will be quite rapid throughout the area, which fact will contribute toward a reduction in the cost of constructing large and extensive storm sewers. Surface drainage will be used where possible, supplemented where necessary by a system of inlets and pipe sewers. Storm sewers will be discharged into both the Sioux

and Missouri Rivers.

It is proposed to construct an adequate water distribution system in the area for all domestic, industrial, and fire-protection purposes. This system will consist principally of a network of cast-iron distribution mains and laterals, with fire hydrants located at strategic points throughout development.

Water can be obtained of suitable quality and in adequate quantity from the present water-distribution system of Sioux City.

Reserve water capacity for periods of high demand will be obtained by the construction of ground-storage reservoirs and high service pumping stations to assure ample supply at proper pressures under all conditions of usage.

Gas requirements in the area will be supplied by extension of the present system of the Sioux City Gas & Electric Co. An ample supply to meet all requirements is assured from this source.

Electric service will likewise be provided by the aforesaid gas and electric company, which company owns and operates a generating station of 31,250kilowatt capacity, located on the east bank of the Sioux River approximately 1 mile upstream from the proposed development.

It is of interest to note that, in connection with the operation of this electric generating station, cooling water from the condensers is discharged into the Sioux River Channel proposed to be used as a barge harbor, with a resulting increase in stream temperatures, tending to keep the river channel free from heavy ice formations in the winter period, and thus creating a more favorable winter harbor condition.

3. It is contemplated to provide traffic access to the barge harbor by rerouting Federal Highway No. 77 and the construction of a new Sioux River bridge. This highway will connect to the present paved Federal Highway No. 77 on the Iowa side at the eastern extremity of the developed area, and will thus form a continuation of the new high-speed Missouri River Road, now in the planning stages, and proposed for postwar construction by the Iowa Highway Commission.

From the above point the new highway will extend in a northwesterly direction and will form the northern boundary of the project area, crossing the Sioux River at the northern terminal of the barge harbor, thence into South Dakota to a junction with present Federal Highway No. 77 as shown on exhibit A.

It is proposed that the construction of this new highway and the Sioux River bridge will become a joint undertaking of the States of Iowa and South Dakota. Service roads will be provided in the developed areas to connect all docks with railroad spurs and to the principal highway above referred to. Principal service

roads would be constructed using a high type of all weather road surfacing, with minor roads constructed of stabilized base material and armor coating.

4. Railroad facilities to be constructed for both the Iowa and South Dakota areas will consist of spurs from the existing trackage of the Chicago, Milwaukee, St. Paul & Pacific Railroad Co., the principal west-coast line of said company from Sioux City to Aberdeen, S. Dak., now adjoining the project area on the east. These spurs would parallel the principal highway on the Iowa side for its entire length, and on the South Dakota side the railroad spur would parallel the principal highway from its junction with Highway No. 77 to the project area, and thence southerly paralleling the principal service road along the westerly boundary.

5. The complete development of the project area, together with the construction of the utility systems will necessarily cover a considerable period of time, but this development can be carried out on a unit area basis, with additional units constructed in accordance with, and at the time of, demand requirements.

The construction costs of service roads, sanitary sewers and storm sewers would be assessed againt the benefited property.

Utilities such as water, gas, electric, and the railroad facilities would be provided by the operating companies serving the development.

On page 24 of the exhibit you will notice a resolution passed by the City Council of Sioux City, Iowa, endorsing the improvement of harbor and barge terminals at the confluence of the Big Sioux and Missouri Rivers.

On page 26 you will also note a similar resolution passed by the Board of Commissioners of Union County, S. Dak.

I would like to quote at this point a letter from Governor Sharpe of South Dakota :

"The Honorable FORREST M. OLSON,

Mayor of Sioux City, Sioux City, Iowa.

"DEAR MAYOR OLSON: The following is a general outline statement of the interests and position which I think the State of South Dakota should take in connection with the barge terminal and harbor facilities at the mouth of the Sioux River.

"In general it is my opinion from personal inspection and many years experience with the Missouri River and both Iowa and Dakota territories adjacent to the Sioux River that the proposed development would be of great benefit to South Dakota and I am reasonably sure that considerable navigation, warehousing and even processing facilities would be developed on the South Dakota side of the proposed harbor.

"Sioux City has long been a natural gateway to much of South Dakota and especially to some of the most thickly settled and richest parts of the State. In fact most of the original settlement of South Dakota funneled through Sioux City and spread out through the State.

"South Dakota is much interested in a navigation channel not only to Sioux City but on through South Dakota to Bismarck, N. Dak., because it seems reasonably plain that eventually such transportation system would connect us with the great industrial regions of Ohio, Tennessee, Arkansas, and other river valleys as well as with the ocean commerce coming through the Gulf of Mexico. Thus we could link up the great food and fiber production of the Northwest with the coal, oil, steel, and similar industrial production of the East.

"It seems reasonably certain to me that this great inland waterway system of the Nation is certain to become one of its most used and efficient transportation systems.

"Sioux City, located near the confluence of the Sioux and the Missouri Rivers, is ideally situated for the first major development of navigation terminal facilities. As Governor of this State and as chairman of the Missouri River States Committee and as chairman of the committee on use of water resources of the Mississippi Valley Association, I have at all times supported and will continue to support the idea of development of this Sioux River barge terminal and harbor facilities program. It seems to me that the engineer's design and plan of it is the best that could be devised in view of the environment and physical conditions. It certainly is the best arrangement that could be made from a South Dakota standpoint and I am sure that various business enterprises of this State

would rapidly take advantage of it as soon as the facilities were in and the channel to Sioux City completed according to the proposed plans.

"Yours sincerely,

M. Q. SHARPE, Governor."

I would like to take this opportunity of thanking the committee for the courtesies shown the Sioux City Delegation and sincerely hope that due consideration will be given to our problems.

Respectfully yours,

FORREST M. OLSON, Mayor, Sioux City, Iowa.

Mr. RANKIN. This project has been approved by the Army engineers, as I understand it.

Mr. OLSON. Yes, sir.

Mr. RANKIN. And we are already providing a 9-foot channel up to Sioux City; is that not correct?

Mr. OLSON. Yes, sir.

Mr. RANKIN. And this project that you are asking for here would simply be an addition in the way of a port?

Mr. OLSON. Yes.

Mr. HOEVEN. It is an auxiliary harbor. That is what it amounts to. Mr. RANKIN. That is what I am trying to say.

Mr. HOEVEN. May I point out here, before I forget it: I do not know whether it has been emphasized, but the port facilities at Sioux City are absolutely limited along the Missouri. Every available piece of ground there has been taken up by four of our large packing plants that run right up to the river, and as this 9-foot channel is completed and Sioux City becomes the head of river navigation up there on the Missouri, there simply is not going to be any place for these towboats to get into except this auxiliary harbor, that we are trying to create here on the big Sioux; which, in addition to taking care of that river traffic, will also provide a winter haven for the construction boats on the river, which otherwise would be tied up.

It is estimated this would increase the working season about 2 months if this harbor were provided.

Mr. RANKIN. How much would it cost? $325,000?

Mr. OLSON. That is right.

Mr. RANKIN. And how wide would that be?

Mr. OLSON. Two hundred feet wide, and a short guide-wall-protected entrance from the Missouri River, and then 400 feet wide to the upper end.

Mr. RANKIN. I see. That would simply furnish you with an auxiliary harbor there, and it would be ample to take care of your needs? Mr. OLSON. Unless we have that auxiliary harbor, we have no place to dock these towboats, on account of the fact that every available bit of space has already been taken up by industry.

Mr. RANKIN. I see. That is what I wanted to get in my mind, becouse I am very much interested in that development of the Missouri River from the standpoint of navigation.

Mr. OLSON. I know you are, Mr. Congressman.

Mr. RANKIN. That is all as far as I am concerned, Mr. Chairman. Mr. ANGELL. There is no opposition, as I understand it, to this project, is there?