TABLE NO. 1.-Profit to Government from interest payments under Willis-Madden bill with 3 per cent financing-Continued

[Same basis as Panama Canal 3 per cent bond issue]

BASIS OF COMPUTATIONS

Mr. GLYNN. What does the sum of $6,000,000 represent?

Mr. BELL. We have been told that the Army engineers consider that out of the total expenditure necessary for Dam No. 3, yet to be built, they would consider that $6,000,000 or more would be their allocation to navigation.

Mr. MCSWAIN. That is a proper proportion to the total expense to be borne by navigation, which is a public project and ought to come out of the Treasury.

Mr. BELL. That is exactly it.

Mr. GLYNN. To get this matter clear, you say the Government has spent less than $160,000,000. Did I understand you correctly to say that the total amount which has been spent by the Government up to the present time is about $104,000,000?

Mr. BELL. No. There are two ways in which you can divide it. I was dividing it as between the cost which had to do with the river navigation, power stations, and dams on the one hand, and things on the land, the nitrate plants, on the other hand. The river investment called for in this bill, including what is already there, will be approximately $104,0000,000 or $108,000,000.

If you divide it the other way, as between what the Government has spent and what it will spend without regard to whether it is on water or on land, the investment, as I recollect it, would be somewhere around $120,000,000 at present, as against a further investment of approximately $50,000,000.

The CHAIRMAN. The clerk will continue to read the bill. (The clerk continued to read the bill as follows:)

(3) During the term of the lease of said Dam Numbered 2, $35,000 annually, in installments quarterly in advance for repairs and maintenance of such dam and its locks and for operation of said locks irrespective of the actual cost thereof;

(4) From such delivery of such possession of said Dam Numbered 3, $20,000 annually, in installments quarterly in advance, for repairs and maintenance of such dam and its locks, and for operation of said locks irrespective of the actual cost thereof; and

(5) The lessee will supply to the lessor, free of all charge during the period of the lease of Dam Numbered 2, to be delivered at any point on its lock grounds designated by said Secretary of War by notice in writing to the lessee, electric power necessary for the operation and lighting of its said locks, and will supply to the lessor from such delivery of such possession of said Dam Numbered 3, to be delivered at any point on its lock grounds designated by said Secretary of War by notice in writing to the lessee, electric power necessary for the operation and lighting of its said locks.

Mr. WHEAT. Mr. Chairman, on page 8, line 23, the word "necessary" is rather indefinite. It does not say who shall pass upon the amount necessary. I think Mr. Bell would agree to put in there "necessary in his judgment," that is, the judgment of the Secretary of War, and provide that he shall decide how much there is necessary. There is an opportunity for discussion in there. As many of those things as we can eliminate the better it will be. I think the best phrase would be, "such electric power as in his judgment would be necessary."

Mr. MCSWAIN. Or "shall.”

Mr. WHEAT. Yes; and "as in his judgment shall be necessary." Mr. MCSWAIN. I so move, Mr. Chairman.

Mr. WHEAT. The same thing occurs on page 9, line 3, where the wording is "necessary for the operation and lighting of said lock." Mr. GLYNN. Will you give us that again?