not by any improvement in transportation costs. If the prewar coal prices did not encourage the expansion of coke-gas works years ago, certainly the present situation is less encouraging, and some way should be found to get these coals to Iowa at lower delivered cost. High coal prices have driven practically all manufactured-gas producers in recent years to the production of water gas instead of coal gas. The water-gas plant is less costly to construct and uses oil for fuel, while the more expensive coke plant can only survive with cheaper coal. Of course, making water gas no coke is made, and our local requirements must be brought in from elsewhere. When coke is not produced in Iowa, the domestic fuel used by our citizens has to be imported and sold at prices $2 to $3 above prices which a local producer might require. This $2 to $3 represents the average freight rate on cokes brought into Iowa from Illinois and Wisconsin. We are now increasing our gas-producing capacity by installing water-gas equipment. With any prospect of cheaper coal, this increase in capacity would undoubtedly have been handled by building more coke ovens. However, with mine prices of coal advancing year after year and old-time high railroad freight rates holding on an arbitrary basis, who would think of expanding a coke-oven operation? Our present annual requirements of east Kentucky-West Virginia coals is approximately 20,000 tons. This tonnage could be greatly increased to the advantage of Dubuque from the standpoint of cheaper gas as well as a more adequate supply of domestic coke. In fact, with the proper coal prices, it would be economically sound as Dubuque grows for additional coke ovens to provide much of the domestic and industrial coke required in interior Iowa. Having provided the excellent Mississippi River water system, we believe the United States Government should complete the good work by canalizing tributary streams as feeders. Thus we favor the proposed improvements on the Big Sandy Basin. Yours truly, THE KEY CITY GAS Co., R. V. MCKAY, Secretary-Manager. The arguments for the need to make high volatile coal, such as is required by the Key City Gas Co. and many other industries, available on a basis of lowcost water transportation direct from the mines, apply with equal force to the Smokeless or Pocahontas coal also obtainable from the same district. The cost of fuel based on BTU is an important factor in the promotion of industrial development, and many industries will not and cannot locate where costs of high-quality smokeless and byproduct coking coal are excessive, even though every other condition necessary for successful operation can be met. The proposal to make the coal produced in the Big Sandy Valley available to industry in this area is necessary for present and future industrial activity. We contend that the full benefit of economical water transportation will not be realized until our entire inland-waterway system including important tributaries such as the Big Sandy, where transportation of basic commodities is involved, are properly improved. The statements relative to the situation as applied to Dubuque apply with equal force to all of the river cities in this area, including Keokuk, Burlington, Fort Madison, Muscatine, Davenport, Clinton, and some of the smaller towns in Iowa, as well as Quincy, Rock Island, and Moline in Illinois, Prairie du Chien and La Crosse in Wisconsin, Winona, St. Paul, and Minneapolis in Minnesota. All of these cities are already important industrially, have excellent rail and truck facilities serving the richest agricultural area in the world. As a matter of national security the expansion of industry in this section is imperative and this need can be met through the fullest use of low-cost water transportation on our great inland-waterway system, when all segments of this system are properly improved. Many of the cities mentioned, Burlington, Muscatine, the Tri-Cities of Davenport, Moline, and Rock Island, Clinton, Dubuque, La Crosse, Winona, Stillwater, St. Paul, and Minneapolis have manifested their faith in and recognition of the importance of water transportation to our economic welfare, by expending millions of dollars for terminals, wharfs, and other river-front improvements. Other cities are considering and will provide terminal and unloading facilities and particularly coal docks as soon as they are assured that there are possibilities of securing the high-grade eastern coal for industrial and domestic uses via the all-water route. 87050-46- -10 The Board of Dock Commissioners of Dubuque and the Dubuque Chamber of Commerce are vitally interested in the proposed improvement of the Big Sandy River as set forth in the prospectus submitted by the Big Sandy Valley Association, Inc., and earnestly urge favorable action. Respectfully, DUBUQUE CHAMBER OF COMMERCE, CITY OF DUBUQUE, IOWA, Mr. M. L. GARVEY, Chairman of the Board, the Big Sandy Valley Association, 802 Southern Building, Washington, D. C. DEAR MR. GARVEY: It is sincerely regretted by me to find it impossible to appear in your behalf in person at the hearing of the Big Sandy River project before the United States Army engineers on Monday, 10th of September. Because of the real interest manifested by users of solid fuel in this area in any project which has for its objective the creation of the means to reduce the price of this type of coal available in the Big Sandy Valley to them, coupled with my interest in having our country make the fullest use possible of our inland-waterway system, I was prompted to make some rather extensive inquiries and investigations. As a class, of course, the users of fine steam coal in industrial plants are able to obtain Illinois coal on a fairly satisfactory basis, particularly those who can obtain such coal from the northern and central Illinois mines by means of barge transportation. However, many users in this class express a decided preference for the coal coming from your district and would undoubtedly use it in substantial quantities if the price on a B. t. u. basis justified it. Dealers in and users of coal for domestic consumption are practically unanimous in the conviction that a saving of $1.50 or more per ton in transportation costs on eastern smokeless coal of the Pocahontas type, would create a surprising increase in the demand for such coal. The annual consumption of coal for domestic use only in the city of Dubuque is approximately 115,000 tons; Clinton, Iowa, approximately 65,000 tons; Muscatine, Iowa, 55,000 tons; Winona, Minn., 50,000 tons; La Crosse, Wis., 60,000 tons. I have been unable to assemble any figures on the quantity of coal used by the many industries in the above-mentioned cities, but it certainly runs into big figures. The Interstate Power Co., at Dubuque, which supplies electric energy to a large territory from its Dubuque plant, alone uses 125,000 tons or more. You will find attached a letter addressed to me by Mr. R. V. McKay, manager of the Key City Gas Co., at Dubuque, which indicates clearly their interest and the possibilities of larger demand for Elkhorn or similar type of coal if it can be delivered here at a reduced cost. In addition, the establishment of briquetting plants in this area would be certain to follow and thus widen the market. The full benefits from the development of economical river transportation cannot be realized until our entire inland waterway system, including all important tributaries such as the Big Sandy, are improved to make low cost transportation, particularly of basic bulk commodities, possible. We respectfully and earnestly urge that the United States Corps of Engineers give favorable consideration to the appeal of your association. Very truly yours. DUBUQUE BOARD OF DOCK COMMISSIONERS, Concurred in by Dubuque Chamber of Commerce: J. A. KERPER, Secretary. Mr. KERPER. It is also my privilege to state that I have been authorized by the officers of the Upper Mississippi Waterway Association to present for the record a statement in support of this project adopted by said association. (The document referred to is as follows:) Mr. M. L. GARVEY, UPPER MISSISSIPPI WATERWAY ASSOCIATION, INC., Chairman, Executive Board, Big Sandy Valley Association, Inc., Washington, D. C. DEAR MR. GARVEY: Pursuant to your request, we are enclosing a statement in support of the Big Sandy River improvement. We sincerely regret our inability to personally be in Washington to present this opinion of the board of directors of the Upper Mississippi Waterway Association. In our absence, will you be kind enough to present this statement to the United States Corps of Engineers, and, in so doing, state that this statement was acted upon and approved at a special meeting of the board of directors of the Upper Mississippi Waterway Association held in Minneapolis on August 30, 1945. We are all hopeful that your hearing will prove successful in bringing about this important improvement. Very truly yours, A. D. STRONG, Secretary. STATEMENT IN SUPPORT OF BIG SANDY RIVER IMPROVEMENT The Upper Mississippi Waterway Association heartily endorses the proposal to extend the 9-foot channel in the Big Sandy River and the Levisa and Tug Forks as proposed by the Big Sandy Valley Association, Inc. The Upper Mississippi Waterway Association is chartered for the advancement of the commercial, agricultural, mercantile, and manufacturing interests of the upper Mississippi Valley through the development of an all-water transportation route via the Mississippi River to domestic and foreign markets. The Upper Mississippi Waterway Association, in a recent declaration of policy, fully recognizes the importance of the improvement of tributaries serving the inland-waterways system, particularly these tributaries which give access to sources of solid fuels. As you know, the upper Mississippi River which serves Minneapolis, St. Paul, and the Northwest was made navigable, and this project was completed in the year 1940. Minneapolis, St. Paul, and many other important river communities such as Winona, Minn., La Crosse, Wis., Clinton and Dubuque, Iowa, the Tri Cities (Moline, Rock Island, and Davenport), and other river communities are far removed from the principal sources of solid fuels. Coal, and particularly eastern coal, to serve these communities in the Northwest, comes by the circuitous route by rail shipments to eastern lake ports and west by water navigation on the Great Lakes to the ports of Superior and Duluth; then again by rail to the Twin Cities and surrounding consuming areas. This rail-and-water route is expensive and responsible for the extremely high cost of eastern solid fuels in this area. The low cost of western shipments by the lake system is due to the returning iron-ore lake boats. At the present time it is estimated that the high-grade iron-ore deposits in the State of Minnesota are very rapidly diminishing and in another 5 or 6 years these eastern shipments of iron ore through the Great Lakes system no doubt will diminish and the present low-cost lake western-bound movement of eastern coal will be greatly affected and increased. Our inland waterways system of dependable navigable channels now are in extent of 4,000 miles. Some coal is already being shipped direct from mines on the Kanawha River down the Ohio River and up the Mississippi River at a very material saving to the consumers of this coal. Therefore, the Upper Mississippi Waterway Association is very much interested in seeing the Big Sandy River and its tributaries canalized to provide proper water depth so that this consuming area of solid fuels can be directly tapped by river tows which may serve the upper Mississippi Valley. The Upper Mississippi Waterway Association has been in existence since 1925, and its membership is composed of river proponents interested in low-cost water transportation. This association is interested in the further and continued development of our resources as they relate to all types of public benefits. There is a tremendous amount of coal consumption in the area served by the upper Mississippi River. It has been estimated that the annual coal consumption of the Northwest which may be served by the upper Mississippi River is in excess of 16,000,000 tons. The canalization of the Big Sandy River would create a competitive all-water route which would result in a tremendous saving to this large solid-fuel coal-consuming area. It is difficult to estimate the untold benefits not only to industries but to communities and farmers in this large agricultural area. Therefore, the Upper Mississippi Waterway Association urges favorable action by the United States Corps of Engineers as set forth in the prospectus submitted by the Big Sandy Valley Association, Inc. Respectfully submitted. UPPER MISSISSIPPI WATERWAY ASSOCIATION, By A. D. STRONG, Secretary. MINNEAPOLIS, MINN., September 6, 1945. Mr. KERPER. I have also been authorized to present for the record a statement by the port authority of the city of St. Paul and likewise a statement of the Upper Mississippi and St. Croix River Improvement Commission of Minnesota. Mr. PETERSON of Georgia. Without objection it will be received in the record. (The documents referred to are as follows:) J. A. KERPER, STILLWATER, MINN., May 4, 1946. Secretary, Upper Mississippi River Barge Water Use Council, Care of M. L. Garvey, Washington, D. C.: It is hereby authorized that you include in your statement before House Committee on Rivers and Harbors our statement as covered in my letter dated September 6, 1945, addressed to M. L. Garvey, chairman, executive committee, Big Sandy Valley Association, Inc. A. W. KLEINSCHNITZ, Secretary, Upper Mississippi and St. Croix River Improvement Commission of Minnesota. Mr. M. L. GARVEY, UPPER MISSISSIPPI AND ST. CROIX RIVER Chairman, Executive Committee, Big Sandy Valley Association, Inc. Washington 5, D. C. DEAR MR. GARVEY: It is noted from your letter of August 14, 1945, to Mr. Herman Mueller of St. Paul, Minn., and Mr. A. D. Strong of Minneapolis, Minn., that the United States Army engineers have made a complete study as to the canalization of the Big Sandy River and the Levisa and Tug Forks Rivers in the Thacker district of West Virginia and the Big Sandy district of Kentucky in the interest of shipping coal by inland waters to St. Paul or Minneapolis, Minn. This information is of great interest to this commission and for Minnesota to derive benefits we wish to submit the following statements which we request be presented at the hearing to be held in Washington, D. C., on September 10, 1945, before the United States Corps of Engineers for the securing of the canalization of the Big Sandy River and its two main tributaries. The Upper Mississippi and St. Croix River Improvement Commission of Minnesota was created by the Legislature of the State of Minnesota under a joint resolution approved April 8, 1927, for the purpose of developing and promoting river navigation to Minnesota. In addition to Minnesota the surrounding States of Wisconsin, Iowa, North Dakota, and South Dakota also have the benefit, especially Iowa, which is located on the banks of the Mississippi, and Wisconsin, located on the banks of the Mississippi and also on the St. Croix River. At present our inland waterways system is dependable with maintained channels in the Mississippi as far north as Minneapolis, Minn., and in the St. Croix as far north as Stillwater, Minn., and in the Minnesota River as far as New Ulm, Minn. On these dependable navigable rivers we have any number of municipal and private owned terminals located in the cities of Winona, Red Wing, St. Paul, Minneapolis on the Mississippi, Stillwater on the St. Croix River and Cargill on the Minnesota River. Minnesota and the great Northwest is far removed from the source of solid fuels, especially the better grades of eastern coal. To serve these communities at present it must move via circuitous routes, that is via rail, Great Lake ports to Duluth and Superior, then again via rail to points in Minnesota and surrounding territory. Movement via this route is rather expensive and indirectly responsible for the high cost of eastern solid fuels in this area, and therefore, the movement to this district of coal is principally Illinois coal. The possibilities are that the high-grade iron-ore deposits in the State of Minnesota are rapidly diminishing and it is only a matter of a few years that this will affect the movement of eastern coal via the head of the Lakes route, which, in turn, will mean that the high-grade eastern fuels will have to move via all rail and a considerable increase in price will result. Considering the all-rail rate on smokeless coal to this district against the river route the possibilities are that there will be a saving of $2 per ton to the consumer and we believe that this saving to the public would be sufficient to obtain a far greater coal tonnage and value and we are confident of a great volume of river tonnage increase to this area. At a meeting of the commissioners of the Upper Mississippi and St. Croix River Improvement Commission of the State of Minnesota, all of whom were appointed by the Governor of the State of Minnesota, and composed of members who are river proponents interested in low-water-cost transportation serving the public along the Mississippi, St. Croix, and Minnesota Rivers, on September 4, 1945, the prospectus submitted by the Big Sandy Valley Association, Inc., was given consideration and unanimously approved and recommended. It was further moved that this statement be prepared and recommended to the United States Corps of Engineers approving the project. We are confident that upon the completion of the project as planned it will develop to a very early utilization on the movement of eastern coal via the Big Sandy, Ohio, Mississippi, St. Croix, and Minnesota Rivers, making the opportunity of the Big Sandy Valley to become a part of this vast inland waterways system, thereby creating a competitive all-water route which would be difficult to estimate the numerous benefits to this large agricultural area. Therefore, the Upper Mississippi and St. Croix River Improvement Commission of the State of Minnesota urges favorable action on this project as set forth in the prospectus submitted by the Big Sandy Valley Association, Inc. Respectfully submitted. UPPER MISSISSIPPI AND ST. CROIX RIVER IMPROVEMENT COMMISSION OF MINNESOTA, By A. W. KLEINSCHNITZ, Secretary. PORT AUTHORITY OF THE CITY OF ST. PAUL, Mr. M. L. GARVEY, Chairman, Executive Board, Big Sandy Valley Association, 802 Southern Building, Washington, D. C. DEAR MR. GARVEY: Mr. Strong and I both wrote you yesterday regarding the situation we find ourselves in so far as attending the hearing in Washington on September 10 in re the Big Sandy River improvement. Am enclosing herewith five copies of statement I have prepared for incorporation in the record at the hearing. As I recall, the United States Engineers require four copies of such written statement. The extra copy is for you. Mr. Strong is also preparing a statement in behalf of the Upper Mississippi Waterway Association, which you will no doubt receive in the same mail. Again regretting our inability to be there in person, and with kindest regards and best wishes, I am, Yours very truly, H. MUELLER, Secretary-General Manager. |