(2) The present obstacle to increased production is lack of low-cost electric energy, of which slightly less than 10 kilowatt-hours are required to produce a pound of aluminum. Electric energy is one of the large items of expense in aluminum production and the practical price limit for 16 cents-per-pound aluminum is 3 mills per kilowatt-hour. The 16-cent price, which the industry would like to adhere to, has not been changed since the war although competitive materials have increased considerably.

(3) As a matter of practical fact, the only important possibility for increased electric power for aluminum is the hydroelectric projects being constructed in the Pacific Northwest by the Corps of Engineers and the Department of the Interior. Large projects such as these require from 3 to 5 or 6 years for completion.

(4) A recent survey made for the National Security Resources Board by electric utility operating representatives indicates that the load on the principal power resources in the Northwest will grow from 4,127,000 kilowatts in 1948 to 5,850,000 kilowatts in 1951 if the generating capacity can be provided.

(5) The Munitions Board has written to the Corps of Engineers and to the Secretary of Interior urging that they do all possible to speed up completion of some of their projects. These particular jobs are:

In addition, authorization should be urged for the Albeni Falls project (Corps of Engineers) which of itself would not only add 42,000 kilowatts to the power supply of the area but the storage capacity of which will add 100,000 kilowatts to the firm power at Grand Coulee.

(6) In the presentation of appropriation requests for power projects to the Congress, direct identification with the defense program is seldom so clear as it is in the case of these Northwest hydro-electric power projects. It is also seldom, in time of peace, that the National Military Establishment would feel warranted in making recommendations of this character. However, in this area the Government is the dominant power producer. No privately owned utility can or will, or perhaps should be expected to provide the very large amounts of power needed. The only practical method of obtaining an increase in the power supply in this area is to speed up the projects named.

(7) We feel that in this instance we are justified in urging large appropriations for these projects and, if the opportunity presents itself, of supporting the appropriation requests of the Corps of Engineers and the Department of the Interior for these projects before congressional appropriation committee.

LER. LUTES,
Lieutenant General, United States Army,
Director of the Staff.
(For the chairman.)

SEPTEMBER 15, 1948.

Lt. Gen. RAYMOND WHEELER,

Chief, Corps of Engineers, Department of the Army, Washington 25, D. C. (Via Assistant Secretary of the Army)

DEAR GENERAL WHEELER: From a national defense standpoint, this Board and the National Military Establishment have an interest in the development of the electric power generation facilities which are being constructed in the Pacific Northwest. These projects are directly identified with the defense program because, as a matter of practical fact, it is to this area and to Government power projects in it that we must look for additional electric energy needed for production of more aluminum.

Currently, aluminum is being manufactured at four times the prewar rate and the best judgment of the industry is that in order to meet present demands this output should be increased by about one-third. Munitions Board estimates indicate that in case of war, the present production would have to be doubled.

The output cannot be increased and, at the same time, a price close to the present market maintained because of the lack of low-cost electric energy. Any price increases in the metal (there has been no change since the war) will be reflected in the cost of defense materiel, particularly in the cost of the 70 group Air Force.

In the Pacific Northwest, where the Federal Government is the dominant electric power producer, no private utility can, or should be expected to, provide any great increase in power facilities. Rapid completion of projects now under way is the only practical means of obtaining an increased supply of aluminum in the next 4 years.

We suggest that your budget plans for fiscal year 1950 take into consideration all feasible means of speeding up completion of these projects: McNary Dam, Ice Harbor, Foster Creek, Lower Monumental, and Detroit.

Sincerely yours,

LER. LUTES. Lieutenant General, United States Army, Director of the Staff.

The CHAIRMAN. I believe those are the only two general projects. Do we have any pending bills for preliminary examination and survey? Colonel GEE. None, sir.

The CHAIRMAN. Do we have pending in that area a bill introduced, H. R. 427, for the establishment of the Columbia Valley Authority and subsequent bills for the establishment of the Columbia River Administration?

Colonel GEE. That is correct, sir.

H. R. 2766

The CHAIRMAN. In that area we have a bill here, H. R. 2766, authorizing flood control on the Yakima.

Colonel GEE. Mr. Chairman, this project is covered in the comprehensive plan of the Columbia Basin on which a general statement will be given by Colonel Weaver later. I believe the report or comment on this bill should be deferred until after the statement is heard.

H. R. 3774

The CHAIRMAN. A bill, H. R. 3774, by Representative Angell, with respect to the construction of some works along the Willamette. What do you have to say with respect to that?

Colonel GEE. The same comment applies. This project is also included in the comprehensive report on the Columbia Basin and he will be prepared

The CHAIRMAN. Is it presently approved?

Colonel GEE. No, sir; it is included within the one report.

The CHAIRMAN. That will be covered generally later?

Colonel GEE. Yes, sir.

H. R. 3636

The CHAIRMAN. The next is a bill, H. R. 3636, by Representative Horan to establish a Columbia River Interstate Commission and for other purposes, and there has been no report on that bill, as I understand; and do you have any comment to make?

Colonel GEE. No comment at this time, sir.

H. R. 3784

The CHAIRMAN. The next is, H. R. 3784, by Mr. Horan to authorize the construction of a multipurpose reservoir on Pend Oreille River in Idaho.

Colonel GEE. This is the project which we have just discussed and is covered by a survey report which is before the committee.

H. R. 3973

The CHAIRMAN. Next, a bill, H. R. 3973, by Representative Mitchell to authorize the construction of a dam and reservoir along Green River.

Colonel GEE. The Green-Dumawish report of which details have just been gone over.

The CHAIRMAN. By Representative Tollefson, a bill to do the same thing.

Colonel GEE. Same project.

H. R. 3969

The CHAIRMAN. Finally, a bill, H. R. 3969, by Representative Angell.

Colonel GEE. This is also included in the comprehensive plan of the Columbia River which will be presented shortly, sir.

The CHAIRMAN. And no bills for preliminary examination and survey?

Colonel GEE. No, sir.

The CHAIRMAN. Are there any other and further statements you care to make in the over-all reports or summaries that you desire to submit respecting these two items?

Colonel GEE. That is all, Mr. Chairman.

The CHAIRMAN. We are glad to have your statement.

Any questions by Mr. Angell?

Mr. ANGELL. Colone Gee, as I understand the Albeni Falls project, it is one project that is most available for early construction to provide additional water for hydroelectric development in the Columbia River area, is that right?

Colonel GEE. That is correct, sir.

Mr. ANGELL. As you have stated, it is of direct benefit to all the plants below on the Columbia River?

Colonel GEE. Yes, sir.

Mr. ANGELL. Including the two which are now producing power, Grand Coulee and Bonneville, and eventually McNary and Chief Joseph, when they come in.

The CHAIRMAN. In addition to a private plant at Rock Island. Mr. ANGELL. Does it drown out to any large extent the farm area or occupied area?

Colonel GEE. A very small area in the delta of the Clark Fork, shown in dark blue in the right portion of the map before you. A small amount in the northern portion of the Lake Shore. I rode over that area last fall and much of the area shaded in blue is now in swamp and is not productive as agricultural land.

Mr. ANGELL. Will it, in addition to furnishing added water for power, also be of direct benefit in flood protection?

Colonel GEE. Yes, sir; all of the water stored in the reservoir in the upper Columbia Basin can be made effective for the production of power and for the prevention of floods by virtue of the fact that when you can look to the top of the mountain ranges and see no more snow, the principal flood threat is gone. Therefore, it is safe at that time to impound additional waters, utilizing flood storage and utilizing that storage to hold waters for the generation of power. This is one of the few places in the United States that is possible. It is customary to evacuate flood storage immediately in order to prepare for the next flood in those portions of the country where floods are due to rains only. In this region, floods are produced by a combination of rain and snow, snow lying on the mountaintops. When that snow is gone, the principal flood threat is also gone.

Mr. ANGELL. With the additional storage facility in this dam and in Hungry Horse, would it tend to firm up river power in all of the generating facilities below on the Columbia River?

Colonel GEE. Yes, sir.

Mr. ANGELL. That is one of the main purposes for providing additional storage.

Colonel GEE. Yes, sir.

Mr. ANGELL. How long would it take to construct the project after funds were made available?

Colonel GEE. Two years for the dam itself. It would take another year for the powerhouse.

Mr. ANGFIL. Is it true that it is one project that could perhaps be brought into production as quickly, if not more quickly, than any other available site within the area?

Colonel GEE. That is correct, sir.

Mr. ANGELL. Mr. Chairman, that is all on that particular project. Chairman WHITTINGTON. Mr. Mack, any questions?

Mr. MACK. I would like to ask some questions about the GreenDuwamish project. Colonel Gee, the State of Washington, according to the Census Bureau estimate for 1947, has enjoyed since 1940 a population increase of about 47 percent. Has this great increase occurred in Seattle and sections around Seattle?

Colonel GEE. Well, sir, it is my understanding that the growth has been very rapid in the vicinity of Seattle.

Mr. MACK. In other words, in your opinion the population and property development of Seattle and the area to be protected by the Green-Duwamish improvement are much larger and greater today than these were 5 or 6 years ago?

Colonel GEE. I am not a very well qualified witness on that point. The Seattle Chamber of Commerce is represented here.

Mr. MACK. You said in your statement that the benefits to cost ratio was 1.07 to 1.

Colonel GEE. Yes, sir.

Mr. MACK. The chairman commented that ratio brought the project just under the line. Now, if there has been a great growth in industrial installations and in developments in the area, then it is quite probable that if any floods occurred in the future comparable to those in the past, that the damages would be much greater in the future than in the past.

Colonel GEE. That is very true, sir.

Mr. MACK. That would increase the benefit ratio compared to the cost ratio in the future?

Colonel GEE. Yes, sir. The records on which the benefit-cost ratios were computed extend back over a period of about 25 years.

Mr. MACK. In this area, where the floods are to be controlled, there are two cities, Auburn, population 6,000, and Kemt, about 3,000. Colonel GEE. That is correct, sir.

Mr. MACK. In addition to the overflow in population from the city of Seattle?

Colonel GEE. Yes, sir.

Chairman WHITTINGTON. Are there any questions by members on my right?

Mr. TRIMBLE. Colonel Gee, remembering my own confusion with reference to the Arkansas, where flood control and harbor developments are involved, did I understand you to say that these three projects that have been considered and testified about by your this morning are to be considered independently, so far as legislation which may come up concerning the Interstate Comisssion or the Columbia River Authority, they being independent of whatever course might be taken on that.

Colonel GEE. Yes, sir; these projects are before you in the regular way, as reports authorized by the Congress, by this committee, or by the corresponding committee in the Senate, and are the reports of the Chief of Engineers made in response to these directives from the Congress.

Mr. TRIMBLE. And are necessary regardless of what action the Congress might take on the two proposals that may come before it? Colonel GEE. Yes, sir.

Mr. TRIMBLE. That is all.

The CHAIRMAN. Are there any further questions?

Mr. MARSALIS. Colonel, in that area, as I understand it, there is scarcely any irrigation on the west side of the mountains, but there is on the east side, is that correct?

Colonel GEE. You are speaking about the lower Green-Duwamish area, sir, on Puget Sound?

Mr. MARSALIS. That section of the country generally. Don't they have extensive rainfall on the west side?

Colonel GEE. There is heavy rainfall. However, that is augmented by the installation of a rather elaborate and expensive sprinkler systems which are in very common use in that area on these very highly developed lands.