you personally viewed the tremendous damage and economic loss resulting from that flood and witnessed the untold human suffering. You are, therefore, acutely aware of the serious setback which that flood dealt to the defense effort. Since I appeared before the Subcommittee on Army Civil Functions of the House of Representatives, two more floods have hit portions of this Nation, one in California, and the other in the Upper Ohio River Basin. The total of the preliminary estimate of the damages of those two floods is estimated at $25 million. These and similar floods will occur throughout the Nation until adequate flood protection works have been provided. The one bright spot in this picture is the fact that some flood control projects had been provided in these areas. The projects completed prevented damages estimated at $29 million. Had the Conemaugh River Reservoir above Pittsburgh been in operation, additional damages of $21⁄2 million would have been prevented. NEW CONSTRUCTION PROJECTS The 1953 budget estimates provide for the continuation of projects under construction at an economical rate and for the initiation of the following new projects: Under "River and harbors," we have the Keokuk lock on the upper Mississippi River, which is a replacement of an obsolete and structurally weak lock, and the Ice Harbor lock and dam, on the Columbia River in Washington. Chairman McKELLAR. Is the Keokuk lock a new proposal? The Ice Harbor lock and dam in the State of Washington is a project to provide power to meet defense requirements. Under flood control we have the Hartwell Reservoir, Georgia and South Carolina, which is a power project on the Savannah River Basin to develop power in the southeastern part of the United States, which could be used in connection with the defense plants in that area, including the hydrogen bomb plant. Then there is the Tuttle Creek Reservoir, in Kansas, on the Kansas River, which is a flood control project. As the committee knows, Mr. Chairman, that is the key project to the control of floods in the Kansas River Basin. Chairman MCKELLAR. Has the authorizing legislation been passed for that? General PICK. Yes, sir. Chairman MCKELLAR. Will you proceed with your statement, General? LOCAL FLOOD CONTROL PROJECTS General PICK. Next is the local flood control project at Cape Girardeau, Mo., which is to protect the town of Cape Girardeau from the Mississippi River floods. It is a very important locality and is subject to floods every few years in the main business part of the town. Topeka, Kans., is a local flood protection project to protect portions of Topeka, principally North Topeka, that is the area north of the Kansas River, which suffered so severely in last year's flood. 1953 BUDGET ESTIMATE The budget estimate for the civil functions of the Corps of Engineers totals $659,990,000, of which $542,004,000 is for construction, which 2 percent of the total. Of the $542,004,000 for construction, $315,561,300, or 58 percent of the construction funds, is for application on multiple-purpose projects involving the production of hydroelectric power. MANAGEMENT IMPROVEMENT The Corps of Engineers conducts a continuous management improvement program for the purpose of improving its operations and for effecting more economical execution of its missions. This program is participated in by all echelons of command and all elements of the corps We have continued our studies and efforts to improve estimating procedures, and intensive study along this line will be contrued Mr. Chairman, I can report to you that I think we are making some really worth-while progress. PRICE LEVELS At the time our fiscal year 1952 estimates were prepared in July 1970, the Engineering News Record cost of construction index stood at 512 67. By July of 1951 this index had risen to 542.36, which represented an increase of 5.8 percent during fiscal year 1951. This upward trend has continued, and the latest figures available at the time I appeared before the House subcommittee were those for December 1951. At that time this index was 547.67. The index for February 1952 shows a further rise to 549.26 for an increase of more than 1 percent since our 1953 estimates were prepared. The 1953 budget estimates were prepared in accordance with instructions from the Bureau of the Budget on the premise that pres will continue at the July 1951 levels during fiscal year 1953. Chairman McKELLAR. How much do you say they have gone up? General PICK. They have gone up 1 percent since the estimate was made. WATER TRANSPORTATION We are all familiar with the major contribution which our inland waterways and coastal harbors played in the first two World Wars, not only by the movement of commodities but also by permitting full u. zation of inland shipbuilding facilities. Dining the present emergency, our waterways are again playing an important role in the transportation industry. The most recent stat,stes on water-borne commerce, those for calendar year 1950, have stown a constant increase and have reached an all-time peak of 820 on tons. This exceeded by nearly 10 percent the previous high of 1947. To me this proves the ever-increasing importance of our river and harbor program. Chairman McKELLAR. Might I interrupt you there to ask, That is laviy steel, oil, and lumber, is it not? General PICK. Yes, sir; it is the basic commodities, the heavy tonnage items and principally steel, petroleum products, cement, and small grain. It is increasing by leaps and bounds every year. These inland waterways and coastal harbors that have been improved stand ready to serve the Nation in normal times as well as in times of emergency. MAINTENANCE AND IMPROVEMENT OF EXISTING RIVER AND HARBOR PROJECTS If we are to obtain full utilization of our shipping capacity, our maintenance program must be accelerated. Our maintenance program must not be allowed to lag. Existing waterways must be maintained to adequate depths to permit full utilization of the economic investment already made. Too many of our waterways, because of lack of maintenance funds, are now shoaling above critical depths. We have some of our first-line harbors shoaling from lack of maintenance on the channel into those harbors, because of lack of adequate maintenance each year since the war. Economies are being achieved by the curtailment or complete cessation of certain sections of canalized waterways which have become obsolescent and unused by commercial traffic. I presented to the Appropriations Committee last year a list of 10 waterways on which maintenance was scheduled to be curtailed or discontinued. Inasmuch as this committee recommended the continuance of maintenance of five of these waterways for the remainder of the 1952 fiscal year, I deferred the scheduled cessation of maintenance in order that the prospective shippers may have an additional opportunity to actually develop commerce on the waterways. Those five waterways are the upper Kentucky River and Big Sandy River, Ky.; the Muskingum River, Ohio; the Ouachita River, La. and Ark., and the upper White River, Ark. Unless the reported and prospective benefits from the use of these antiquated navigation facilities during the present fiscal year are reasonably assured and sufficient to justify the Federal cost of operation and maintenance, I plan to cease their operation on July 1, 1952. Other marginal waterways are being carefully studied and action toward curtailment of their operation will be taken as required. Mr. Chairman, I think it is perfectly proper for us to carefully survey such waterways any time a waterway falls into disuse, to determine whether or not it is to the advantage of the Government and the local community to consider maintaining such waterways if they are not adequately used. Chairman MCKELLAR. Can you give us the amount of the annual expenditures in these five waterways? General PICK. Yes, sir. Chairman MCKELLAR. Would you put it into the record? (The information referred to follows:) 1953 BUDGET ESTIMATE The budget estimate for the civil functions of the Corps of Engineers totals $659,990,000, of which $542,004,000 is for construction, which is 82 percent of the total. Of the $542,004,000 for construction, $315,561,300, or 58 percent of the construction funds, is for application on multiple-purpose projects involving the production of hydroelectric power. MANAGEMENT IMPROVEMENT The Corps of Engineers conducts a continuous management improvement program for the purpose of improving its operations and for effecting more economical execution of its missions. This program is participated in by all echelons of command and all elements of the corps. We have continued our studies and efforts to improve estimating procedures, and intensive study along this line will be continued. Mr. Chairman, I can report to you that I think we are making some really worth-while progress. PRICE LEVELS At the time our fiscal year 1952 estimates were prepared in July 1950, the Engineering News Record cost of construction index stood at 512.67. By July of 1951 this index had risen to 542.36, which represented an increase of 5.8 percent during fiscal year 1951. This upward trend has continued, and the latest figures available at the time I appeared before the House subcommittee were those for December 1951. At that time this index was 547.67. The index for February 1952 shows a further rise to 549.26 for an increase of more than 1 percent since our 1953 estimates were prepared. The 1953 budget estimates were prepared in accordance with instructions from the Bureau of the Budget on the premise that prices will continue at the July 1951 levels during fiscal year 1953. Chairman McKELLAR. How much do you say they have gone up? General PICK. They have gone up 1 percent since the estimate was made. WATER TRANSPORTATION We are all familiar with the major contribution which our inland waterways and coastal harbors played in the first two World Wars, not only by the movement of commodities but also by permitting full utilization of inland shipbuilding facilities. During the present emergency, our waterways are again playing an important role in the transportation industry. The most recent statistics on water-borne commerce, those for calendar year 1950, have shown a constant increase and have reached an all-time peak of 820 million tons. This exceeded by nearly 10 percent the previous high of 1947. To me this proves the ever-increasing importance of our river and harbor program. Chairman MCKELLAR. Might I interrupt you there to ask, That is largely steel, oil, and lumber, is it not? General PICK. Yes, sir; it is the basic commodities, the heavy tonnage items and principally steel, petroleum products, cement, and small grain. It is increasing by leaps and bounds every year. These inland waterways and coastal harbors that have been improved stand ready to serve the Nation in normal times as well as in times of emergency. MAINTENANCE AND IMPROVEMENT OF EXISTING RIVER AND HARBOR PROJECTS If we are to obtain full utilization of our shipping capacity, our maintenance program must be accelerated. Our maintenance program must not be allowed to lag. Existing waterways must be maintained to adequate depths to permit full utilization of the economic investment already made. Too many of our waterways, because of lack of maintenance funds, are now shoaling above critical depths. We have some of our first-line harbors shoaling from lack of maintenance on the channel into those harbors, because of lack of adequate maintenance each year since the war. Economies are being achieved by the curtailment or complete cessation of certain sections of canalized waterways which have become obsolescent and unused by commercial traffic. I presented to the Appropriations Committee last year a list of 10 waterways on which maintenance was scheduled to be curtailed or discontinued. Inasmuch as this committee recommended the continuance of maintenance of five of these waterways for the remainder of the 1952 fiscal year, I deferred the scheduled cessation of maintenance in order that the prospective shippers may have an additional opportunity to actually develop commerce on the waterways. Those five waterways are the upper Kentucky River and Big Sandy River, Ky.; the Muskingum River, Ohio; the Ouachita River, La. and Ark., and the upper White River, Ark. Unless the reported and prospective benefits from the use of these antiquated navigation facilities during the present fiscal year are reasonably assured and sufficient to justify the Federal cost of operation and maintenance, I plan to cease their operation on July 1, 1952. Other marginal waterways are being carefully studied and action toward curtailment of their operation will be taken as required. Mr. Chairman, I think it is perfectly proper for us to carefully survey such waterways any time a waterway falls into disuse, to determine whether or not it is to the advantage of the Government and the local community to consider maintaining such waterways if they are not adequately used. Chairman McKELLAR. Can you give us the amount of the annual expenditures in these five waterways? General PICK. Yes, sir. Chairman MCKELLAR. Would you put it into the record? (The information referred to follows:) |