Council; one from Baton Rouge, La., from the director of public works; one from the Huntington Central Labor Union; one from the Building and Construction Trades Council of Huntington, W. Va.; and one from the United Association of Journeymen Plumbers and Steamfitters, from Huntington, W. Va. Those are all in favor of it, and without objection, we will put them in the record at this point. (The communications referred to are as follows:) JOSEPH MANSFIELD, Chairman of Rivers and Harbors Committee, ASHLAND 3, Kr., May 4, 1946. Washington, D. C.: Representing several hundred interested taxpayers we request that you and your committee support the canalization of the Big Sandy River. This is a much needed improvement. H. E. SALYER, Secretary, Ashland Building and Construction Trade Council. BATON ROUGE, LA., May 1, 1946. NATIONAL RIVERS AND HARBORS CONGRESS, Washington, D. C.: This is to approve Big Sandy project. DEWITT L. PYBURN, Director, Department of Public Works. HUNTINGTON CENTRAL LABOR UNION, AFFILIATED WITH THE AMERICAN FEDERATION OF LABOR, Mr. JOSEPH J. MANSFIELD, Washington, D. C. HONORABLE SIR: The Huntington Central Labor Union is earnestly urging you to support the proposed canalization of the Big Sandy River, Tug and Levisa Forks, bordering the States of West Virginia and Kentucky. The proposed canalization of these rivers is greatly needed and wanted by the citizens of this area. It has come to our attention that certain powerful interests are lobbying against this bill for very selfish reasons. They do not care about the working people but think of how they can make more money without regard to others. We are asking you to carefully investigate the reasons put forth by the opposition and I am confident that you will find their reasons are definitely selfish. Trusting that you will support this bill for the benefit of the people who need it instead of those who do not, I remain, Yours very truly, HUNTINGTON CENTRAL LABOR UNION, (Mrs.) AGNES EVANS, Secretary. BUILDING AND CONSTRUCTION TRADES Council, OF HUNTINGTON AND VICINITY, AFFILIATED WITH THE AMERICAN FEDERATION OF LABOR, Huntington, W. Va., April 30, 1946. DEAR SIR: It has come to our attention that certain lobbyists are to appear before your committee on behalf of the monopoly which the C. & O. and the N. & W. railroads hold on transportation of coal and other materials in and out of the Big Sandy, Tug, and Levisa Fork Rivers which have been recommended by the United States engineers for canalization. It is our firm conviction that the canalization of these rivers should be put through according to the United States engineers recommendations because of the wide spread possibility of providing more work and more business for a great number of people who will be affected as a result of a lower freight transportation rate. This reduction in freight rates will insure enlargements of industrial plants who are now using the soft coal of this region and many other industries will no doubt be induced to come into the midwestern section of the country along the Ohio, Mississippi, and Missouri Rivers and their tributaries, thus assuring more business and employing of more labor. Especially is this project necessary because of present existing higher freight rates through out the immediate territory than exists in the other coal fields of West Virginia. The territory needs the results of this proposed project because the records show that the people of the Big Sandy Valley rated among the highest percentage on the relief program in previous years of anywhere in the United States. To disapprove this program will do a grave injustice to a very large number of the common people. We cannot believe that the congressional committee will act in behalf of the lobbyists of big business interests and deny such a great opportunity to help so many especially since canalization has never yet been detrimental to the railroads of the country. We urge that you add to the present waterway system this 200 miles of canalization into the greatest high-grade soft coal fields in the world. And by so doing help to bring prosperity, peace and happiness to the multitude of working people living along the shores of these rivers and in these mountains of West Virginia and Kentucky. The common people in this vicinity feel that a vote against this project is a direct vote against them and their best interest and this we hope and pray you will not do. Very truly yours, HUNTINGTON BUILDING AND CONSTRUCTION TRADES COUNCIL, UNITED ASSOCIATION JOURNEYMEN PLUMBERS Congressman JOSEPH J. MANSFIELD, House of Representatives, Washington, D. C. DEAR SIR: We would like to take this opportunity to sincerely urge you to support the proposed canalization of the Big Sandy River, bordering the States of West Virginia and Kentucky. This project is greatly needed and wanted by the citizens of the area to be affected. However, it has come to our attention that certain powerful interests are lobbying against this bill for purely selfish reasons. It is our desire that you carefully investigate the reasons put forth by the opposition and I am confident that you, as an intelligent person, can see that their reasons are definitely selfish. Hoping that you can see your way clear to vote favorably on the Big Sandy River canalization project, I remain Respectfully yours, H. E. DUNCAN, Business Representative, Local No. 521. Mr. PETERSON of Georgia. Now, what I wanted to get at, we had forty-odd telegrams, and messages here, from unions opposing this, and I am going to read one of these as a part of my question. We, the members of Local Union No. 5736 are against the cancellation of the Big Sandy River as we feel that it would be the means of putting a number of small coal operators out of business, and throwing a lot of men out of employment and we are against this project going through and hope that you will use your influence against it. That is from Hazard, Ky. Mr. WELLS. I expected that; yes, sir. Mr. PETERSON of Georgia. Now, others say here that it will virtually destroy the coal industry in eastern Kentucky, that it would work to the benefit of a few large operators, but would put the small operators out of business. Mr. WELLS. Where does that statement come from? Mr. PETERSON of Georgia. It says they will be destructive of the coal industry of eastern Kentucky, and that is from Hazard. All of these that I am looking at now are the same. Here is one from Logan, W. Va. Mr. WELLS. Naturally. Mr. PETERSON of Georgia. It is to this effect: It says: We, the officers and members of Local Union 5813, U. M. W. of A., having a membership of 520, wish to inform you and the members of your committee that we are against the cancellation of the Tug River watershed in West Virginia, as we think it will only benefit a chosen few, and thereby cause a large number of people to be thrown out of work or who must choose some other field of employment. To be plain, we think this project is just a waste of money and would tend to swell the public relief rolls. That disturbs me that these messages are coming from unions, men. evidently employed in the coal field. Mr. WELLS. That is quite a simple question to answer, sir. Mr. DONDERO. The State motto of Kentucky is "United we stand, divided we fall" and one witness said several years ago that the trouble with the State of Kentucky is that they have been working on the last section of that motto too long. Mr. WELLS. If you will notice our seal in Kentucky, we have two men shaking hands, that is the present highway commissioner shaking hands with the outgoing highway commissioner, we change every time we have a Governor. Now, I want to continue here, and on your question, sirMr. PETERSON of Georgia. I do not believe that you have given an answer or any observations as to why these people are opposed to it. Mr. WELLS. I want to explain that, sir, because it is very simple to explain. As I stated here before, we have the only major coal field in the United States that does not have access to the improved waterways system, and those fellows are jealous of their position, and they realize that they can maintain their position of advantage over our coal field only if we are restricted to all-rail transportation. Mr. RANKIN. They already have water transportation, have they? Mr. WELLS. In the Logan fields; yes, sir. Mr. RANKIN. What about Hazard? Mr. PETERSON of Georgia. And what about Whelan? Mr. WELLS. What was that question? Mr. RANKIN. What about Hazard? Mr. WELLS. Hazard enjoys a better rail freight rate than we do and have always enjoyed it. Mr. RANKIN. Will someone point out Hazard on the map here? Mr. WELLS. It is right in here. Mr. RANKIN. What is their rate? Mr. WELLS. They have an advantage over Big Sandy to Logan and Lexington. Mr. JACKSON. Could you give to the committee the differential? Mr. WELLS. I will have to call on someone else for that; I am afraid that I do not know that. Mr. RANKIN. Their coal would not be shipped over this waterway? Mr. WELLS. No, sir; and that is the reason they are not interested in it, and one other thing about that Logan business is that the Island Creek Coal Co. maintains there at Huntington, W. Va., a huge plant to dump coal into the river to ship it into the Ohio River. Mr. PETERSON of Georgia. Where is Whelan, Ky.? Mr. WELLS. Whelan; well, gentlemen, Whelan, Ky., is up on Beaver Creek and in Floyd County. Mr. PETERSON of Georgia. Would it enjoy any advantages of these water rates? Mr. WELLS. It is questionable. Mr. PETERSON of Georgia. Then we have one here from Wheelwright, Ky. Mr. AUCHINCLOSS. Can you tell us why the West Virginia Farmer is against this proposition, could you tell us about that before you leave? Mr. WELLS. I think the West Virginia Farmer is represented here today by its editor and he will probably give you that information. Before I leave, I want to file my remarks in the record, and I also have some resolutions here that I want to file along with it. Mr. PETERSON of Georgia. Without objection, that will be done. (The documents are as follows:) THE BIG SANDY VALLEY ASSOCIATION, INC., Pikeville, Ky. Mr. Chairman, and Members of the Rivers and Harbors Committee of the Congress of United States: The Big Sandy Valley Association is a nonprofit organization. In addition to its officers it consists of a group of directors who are representative businessmen located in Tazewell and Buchanan Counties in Virginia; Mc Dowell, Mingo, Mercer, and Wayne Counties in West Virginia; and Boyd, Lawrence, Johnson,、 Floyd, Martin, and Pike Counties in Kentucky; all of which communities are actively and enthusiastically supporting the association's program. The objects and purposes of the Big Sandy Valley Association are to promote and encourage the development of industry, commerce, and agriculture in the valley. The association is, therefore, enthusiastically and wholeheartedly supporting the canalization of the Big Sandy River and its two forks. It is universally believed throughout the valley that with cheap river transportation available in the valley as it is available in other valleys in Kentucky, West Virginia, and Pennsylvania, a great era of economic development will unfold based on the abundant high quality and diversity of raw materials known to exist in the valley. The citizenship of the valley is eager for an opportunity to assist in a program to make the natural resources render the highest service in the economic, industrial, and social upbuilding of our valley and the country. In the six highest relief areas in the United States in 1940 the Big Sandy Valley was designated as "problem No. 1" by the Federal Emergency Relief Administration. The number of people on relief was two and one-half times that generally of other areas. In 1939, not taking into consideration the Tug Fork, 13,225 families were receiving relief in the way of work or commodities, over 30 percent of the entire population. From 1936 to 1940, inclusive, the Government spent for aid to the people of the 12 counties in the Big Sandy Valley over $65,000,000. At the end of World War I we had in Pike County alone 44 coal mines located on the C. & O. Railroad; in 1939 we had 2 left-and 1 of them in receivership. Without some form or plan of orderly development this area will continue to present a serious social problem. This area's importance in the national economy must be recognized and it is the duty of some Governmental agency to encourage the development of its resources and industry-canalization will do both. Seventy-five percent of the people of the Big Sandy Valley depend for a living directly or indirectly on the mining of coal. Our people are hoping and praying the Congress will provide canalization for our river, thus insuring low-cost river transportation to the consumer markets, thereby insuring an outlet for our mines. As an active proponent for many years of the lock and dam program for the Big Sandy River and its tributaries, the Levisa and Tug Forks, I am thoroughly familiar with the attitude of most of the leading citizens of the valley, and, up until coercive measures were adopted by the railways, the sentiment has been practically unanimous in favor of the project. Coal-operating companies are peculiarly dependent on the good will of the railway companies in many vital respects, such as car supply, fuel coal contracts, branch lines to new mines and mine sidings. In several cases, it is a matter of common gossip that some of the larger companies secured substantial loans either from or through the good offices of the railway companies to carry them across the depression years preceding World War II. Again the larger operating coal companies of the Levisa Fork are located at substantial distances from the river and their freight rate to the river will be fixed by the railways and will probably be so large as to constitute substantial differential in favor of the small mines in the 10-mile zone on the river front. The railways have, therefore, been in position to coerce the Big Sandy-Elkhorn Coal Operators Association into passing a resolution unfavorable to the canalization project. This is unfortunate and not only contradicts the widespread public approval of the project but would seem to adversely commit many of those who have heretofore been enthusiastic proponents of the project. It is understood that the United States district engineer office at Huntington has on file the confidential statements of many of the coal-operating companies which express their true sentiments, uninfluenced by coercive railway influences. It is believed that these statements are a truer measure of sentiment among the coal people than the resolutions of the association heretofore referred to. It should also be borne in mind by the committee that a substantial part of the tonnage produced by this association originates on the waters of the Kentucky River against whom a very substantial differential in transportation cost would be developed in favor of the mines continguous to the Levisa Fork, and they can hardly be expected to accept this differential enthusiastically. In order that the committee may thoroughly understand the type and character of the opposition which has been encountered by our association, the following brief analysis is submitted for your consideration. This opposition has emanated from three primary sources: (1) From the railroads and those either on the railroad pay roll or dependent on the railroads for one reason or another, such as fuel-coal contracts, new branchline connections and other profitable contracts. (2) Coal operators located in competitive coal fields who do not want to see the Big Sandy districts receive the benefits of low-cost river transportation for competitive reasons. Some of these now have river transportation and others have on-river freight rates enabling them to ship by river but at a higher cost than prospective mines on the Big Sandy located within the 10-mile zone. (3) Local coal operators, notably in the Big Sandy Elkhorn district, who are dominated by the railroads, or who are so located as to be subjected to a high onriver freight rate from the mines to the river, thus giving the riverside mines an advantage. These opponents have organized The association opposed to the Big Sandy Valley Canal project, and have issued a publication entitled "The $65,000,000 Question," and have solicited memberships in their association. For the information of the committee the following shows the relationship of the officers, and a majority of the board of directors of this association to either the railroads or competitive coal-producing areas. It is believed that the membership of the opposing association is comprised primarily of railway employees, railway-fuel coal-mine employees and others who are railway-connected. J. Brooks Lawson, president, Williamson, W. Va.: Mr. Lawson is attorney for and a director in the First National Bank of Williamson. This bank is the depository of the Norfolk & Western Railway funds in Williamson. Numerous employees of the Norfolk & Western Railway carry their balances in this bank. William S. Leckie, vice president, Columbus, Ohio: Mr. Leckie is a large coal operator with extensive interests in Greenbrier, Raleigh, Logan, McDowell, and Nicholas Counties, W. Va., and Buchanan County, Va., and Pike County, Ky.. His interests in the Williamson district are comparatively small, and his company has large and very profitable fuel-coal contracts with the railways. |