1 Addition to existing plant (to be added subsequent to Dec. 31, 1959). NOTE. Capability of West Group is limited by energy supply and the hydro dependable capacity (line 5) is in relation to the energy limitation. Energy capability is related to the critical period Sept. 1 to Apr. 15 of the 1936-37 adverse water year. Because of reservoir limitations the firm energy deficiency could not be held at a uniform level during this entire period, and the energy calculations above are based on the November through March period during which the maximum level of energy deficiency prevailed. Machine capacity (not shown) is in excess of dependable capacity and, coupled with secondary resources in the median water year and during the runoff season, can be partially utilized for interruptible load and replacement of fuel generation.

MONDAY, APRIL 11, 1960.

PACIFIC NORTHWEST PROJECTS

WITNESSES

HERBERT G. WEST, EXECUTIVE VICE PRESIDENT, INLAND EMPIRE WATERWAYS ASSOCIATION

CHARLES F. BAKER, PRESIDENT, INLAND EMPIRE WATERWAYS ASSOCIATION

NORMAN L. KREY, VICE PRESIDENT FOR WASHINGTON, INLAND EMPIRE WATERWAYS ASSOCIATION

LEW S. RUSSELL, SR., COMMISSIONER OF THE PORT OF PORTLAND, OREG.

GEORGE C. CADWELL, PRESIDENT, PORT OF VANCOUVER, WASH.

Mr. RABAUT. Mr. Herbert G. West.

Mr. WEST. Mr. Chairman, we have three or four witnesses to be included in our time. May I call them to the table?

Mr. RABAUT. Very well.

Mr. WEST. My name is Herbert G. West. I am executive vice presi dent of the Inland Empire Waterways Association, with headquar ters at Walla Walla, Wash.

At this time I would like to introduce our president, Mr. Charles Baker, who also is the general manager of one of our large farm cooperative organizations, Pacific Supply Cooperative. He has a statement he wishes to make.

Mr. BAKER. Mr. Chairman, I would like to submit a statement to the committee.

Mr. RABAUT. The statement will be placed in the record at this point.

(Mr. Baker's statement follows:)

STATEMENT OF CHARLES F. BAKER, SECRETARY AND GENERAL MANAGER, PACIFIO SUPPLY COOPERATIVE

My name is Charles F. Baker, secretary and general manager of Pacific Supply Cooperative, whose main office and headquarters are at Walla Walla, Wash. I am also the president of the Inland Empire Waterways Association. Pacific Supply Cooperative is a large regional farm supply and marketing cooperative serving more than 100,000 farm families in the States of Oregon, Washington, and Idaho. For more than 25 years we have actively supported the maximum comprehensive water resources development of our water resources in the Pacific Northwest, and particularly the Columbia and Snake River drainage system. We have done so for the following reasons:

(1) High cost transportation in the Pacific Northwest on farm products moving long distances to markets has long been a serious handicap to our growing economy. The development of slack water navigation into Lewiston, Idaho, on the Snake River, and to Wenatchee, Wash., on the Columbia River, will have a profound effect on the entire transportation system of the area. Already several million tons of cargo are moving to and from Portland, Oreg., and Pasco, Wash., on the Columbia River, which has had a significant effect on transportation rates charged in the area on both farm products moving to market as well as products used in the industrial trade which lend themselves to water transportation. When the rivers are canalized to Lewiston and Wenatchee, we can look for reductions in transportation costs of as much as 30 percent to 40 percent below the present rates on many essential commodities.

(2) The major source of energy for developing industry in the Northwest comes from our low cost hydropower developed at multipurpose dams on the Columbia and Snake Rivers. To date many new manufacturing enterprises using low-cost electric power have established plants in the Northwest, and more are certain to come as additional power is developed and made available. These new industries mean jobs for people, and jobs for more people mean markets closer to home for the farm products produced in the area, and all of this without any cost in the final analysis to the Federal Government, because the power rates will repay the cost of these dams with interest in approximately 50 years.

(3) This program has already brought under irrigation hundreds of thousands of acres of fertile farmlands and with probably another half million or more acres available to be developed as this program moves ahead.

(4) The flood control which additional dams, particularly in the headwaters of the Columbia and Snake, will me it possible to go a long way toward reducing the millions of dollars of flood damage suffered annually by property owners along the Columbia and Snake Rivers. This factor, too, is of great importance to the future economy of the region.

(5) The recreational advantages that are accruing to the people of the region as multipurpose dams establish pools of slack-water navigation are likewise becoming important assets to our economy.

We have been deeply appreciative of the splendid consideration given this program by your committee and the Congress over the past decade, and we strongly urge your favorable consideration of appropriations this year as outlined in the program of the Inland Empire Waterways Association, submitted by our executive vice president, Mr. Herbert G. West.

Mr. BAKER. I would like to point out I am the general manager of a large farm supply cooperative in the Pacific Northwest which serves some 100.000 farm families.

Historically, for many years one of the great problems of agriculture has been the high-cost transportation to the market for the things we grow in the Pacific Northwest. The development of navigation on the Columbia River and Snake River is developing a competitive system which is already bringing very substantial reductions in the cost of transportation to the markets of the world, and partic

ularly for our wheat growers. It is likewise substantially reducing the cost of materials which farmers have to buy to grow these crops.

The second point, which is of great interest to our agriculture in the Northwest, is the development of low-cost hydroelectric power. We are a fast-growing region populationwise. This is the main source of energy we have. It has already brought many industries to the Pacific Northwest which are furnishing substantial employment for this rapidly growing population. We would like to expand that hydroelectric power to its fullest capacity because, looking down the road, it means jobs for people, and that in turn means markets at home to the farmers of the Northwest rather than to have to go to fardistant places at high transportation costs.

I could likewise touch upon the importance of flood control. I could touch upon the importance of bringing in several hundred thousand acres of additional lands under reclamation in these projects, all of which are extremely important to the economy of the Northwest and to the Nation as a whole.

Inasmuch as time is of the essence, I want to close by saying that we completely endorse every statement which will be submitted by our executive vice president, Mr. Herbert G. West, in detail, and specifically that phase of it requesting another $5 million to start Lower Monumental Dam as quickly as possible.

Mr. WEST. Mr. Norman Krey, our vice president for Washington and general manager of the Kaiser Aluminum & Chemical Co., Spokane. Mr. Krey.

Mr. KREY. Mr. Chairman and gentlemen, as vice president of the Inland Empire Waterways Association, I represent the large hydrousers in the Northwest. I should like to emphasize what Mr. Baker has said, and say that it is necessary for the low-cost power industry that we continue on schedule with these projects bringing in power as scheduled. We urge you to appropriate funds to continue this program which has been so successful in the past.

Mr. RABAUT. Thank you, Mr. Krey.

STATEMENT OF MR. LEW RUSSELL, SR.

Mr. WEST. Our next witness will be Mr. Lew Russell, Sr., who is a member of the Commission of the Port of Portland, Portland, Oreg. Mr. RUSSELL. Mr. Chairman and members of the committee, we endorse and are glad to endorse the program as outlined by the Inland Empire Waterways for continued improvements for the coming year, particularly on the upper Columbia and Snake Rivers, as well as some on the Willamette.

Specifically, I would like to leave this thought: Although our operation at the port of Portland is in Portland and Oregon, we are not provincial. We are for the Northwest. Therefore, we are particularly interested in the continued development and construction of the dam for navigation.

Mr. WEST. Mr. Chairman, I would like to introduce Mr. George Cadwell, who is president of the port of Vancouver, Wash.

Mr. CADWELL. Mr. Chairman and gentlemen, I am not going to take any time. I see you were over 30 minutes late starting. I want to endorse what each of these gentlemen has said. We are at the lower

end of the Columbia River where we get all this freight in barges. We want to endorse everything that the Inland Empire Waterways are proposing today.

Mr. RABACT. Thank you. I feel like complimenting you. You are interested in a great territory of the country.

We will insert Mr. West's statement at this point. (Statement referred to follows:)

STATEMENT OF HERBERT G. WEST, EXECUTIVE VICE PRESIDENT, INLAND EMPIRE WATERWAYS ASSOCIATION

My name is Herbert G. West, executive vice president of the Inland Empire Waterways Association, the main offices and headquarters of which are located in Walla Walla, Wash. Ours is the only regional organization in the Pacific Northwest dedicated to the comprehensive development of all the water resources of the Columbia-Snake River Basin and draws its members from all sections of the region affected. Included in this membership are farmers, farm cooperatives, individual businessmen, large corporations, chambers of commerce, public and private power groups, labor organizations, port districts, financial institutions, county and city governments, and other interested individuals— truly a representative cross section of the economy of all the territory in Oregon, Washington, and northern Idaho contiguous to the Columbia and Snake Rivers. We are now in our 27th year of operation and it has been our extreme privilege to have appeared before Subcommittees on Public Works of the House of Representatives in each of our previous 26 years, calling to the attention of these committees the need for expanded development in the Columbia River System to provide for the impact of our increasing population and our national security.

I feel certain that the members of this committee are well advised as to the development program on the Columbia River System and I do believe that they have reached the same conclusion as we in the Pacific Northwest, that it is vitally necessary to follow a comprehensive plan in such a development program, a comprehensive plan developed by sound engineering and economics in which each dam in the system relates to the other, thus bringing about maximum benefits through the proper tie-in of each and every project. Such a comprehensive plan is provided in the 308 Review Report prepared by the U.S. Army Corps of Engineers.

It is in behalf of just such an overall program of development that I represent our organization here today urging your consideration of appropriations which are necessary for fiscal year 1961 to insure its proceeding in an orderly fashion, thus providing electrical energy for the growing population of the Pacific Northwest and for industrial expansion to care for the needs of all our people; navigation for the economical movement of our products downstream and transport of commodities upstream; flood control to protect our cities, industry, and agricultural lands; and irrigation to reclaim our arid lands.

POWER

While the curernt power situation in the Pacific Northwest is not critical and while progress is being made to meet our requirements in the immediate future, due to the time-consuming process of construction of projects. programing must be done now for the future in order to keep pace with our ever-increasing population growth and to provide electrical energy for greatly needed industrial growth and expansion.

According to the 1959-69 advance program of Bonneville Power Administration, the U.S. Columbia River Power System had a generator installation of 5.721.250 kilowatts of nameplate rating on June 30, 1959. This is an increase of 287.250 kilowatts over the installation in service as of June 30, 1958, and included a total of 312.000 kilowatts from unit 5 through 8 which came on the line at the The Dalles Dam, 64,000 kilowatts which went into service during the year at Chief Joseph project, and 11.250 kilowatts produced by the completion of a unit at the Roza project.

Non-Federal generations in the area served by the U.S. Columbia River Power System were increased by 376,600 kilowatts during the period under discussion. Also according to Bonneville's advance program, additional prime power from installations at both Federal and non-Federal installations scheduled for completion will provide 5,452,950 kilowatts. This additional prime power is expected to provide for the area's growth in power loads until 1965–66. However, included in this scheduled installation are five projects for which we are seeking appropriations here today. Production of power from these powerplants is included in the estimated need until 1965-66 and they must, therefore, be kept on schedule to meet these requirements.

Nevertheless, also according to Bonneville Power Administration's advance program, additional power supply will be needed for the remainder of the period from 1965-66 through 1969-70. This power must come from new hydroelectric projects now under active consideration. We must, therefore, provide now for future needs by getting new projects underway and, most certainly, we cannot fall behind in those already under construction.

Over the many years that our organization has appeared here, we constantly have called to mind the fact that funds appropriated for these needed projects are sound investments of public funds; funds repaid to the Treasury of the United States through power revenues plus interest. However, this is such a splendid record and so indicative of its sound economic basis that I would like once again to refer you to the repayment schedule of the past year.

Included at the rear of this testimony you will find exhibit I which tells the repayment story. Exhibit I(a) tells the overall picture; exhibit I(b) lists individual projects with amounts and percentages repaid.

According to the 1959 report of Bonneville Power Administration, as of June 30, 1959, $268,353,287 of the power capital invested in projects constructed or under construction had been repaid, exceeding the estimated scheduled repayment requirements for the overall system by $64,648,446. Major projects contributing to the excess repayment total include Bonneville Power Administration, $43.251,727 ahead of schedule; Bonneville Dam, $11,282,288; McNary Dam, $7,072,194; and Chief Joseph project, $1,048,924. The balance of the total excess repayment is made up of several lesser projects.

Truly, this is an excellent record and clearly indicates the soundness of the overall program by factual data from the records of the Bonneville Power Administration.

NAVIGATION

Although navigation perhaps does not present such a dramatic picture to the general public as the power problem which touches their lives each and every day of every year, nevertheless it does play a very important role in the economic well-being of the residents of the Pacific Northwest and will continue in an even more important role in the future as it takes its proper place in the backbone of our economy through the creation of lower transportation rates and resulting industrial expansion. As navigation extends farther into the interior, so tonnages increase and industry takes advantage of water transportation to bring in its raw products and export its finished goods. And, so, navigation joins with low-cost available power to attract new industrial developments to an area so in need of them to provide employment for our people and share the tax loads of all levels of Government, county, State and Federal.

EXHIBIT II, a part of this report and compiled from Commerce Reports of the U.S. Army Corps of Engineers, clearly indicates the growth of tonnage on the Columbia River and specifically shows that as navigation improves farther into the interior so does the movement of tonnage going upriver move farther inland and the tonnage going downstream originates from points deeper in the interior. This, indeed, is good for the entire Pacific Northwest, bringing sound economy to the interior and at the same time increasing tonnage at coastal ports which handle the cargo for transshipment to ocean-going vessels.

In addition to showing figures for each of the years from 1952 through 1959, I also have indicated in this exhibit total lockages through Bonneville, The Dalles and McNary for the 3 years just past, 1959, 1958, and 1957. This shows very clearly that of the 1,987,118 tons moving upstream through Bonneville locks, 1,926,003 tons moved on upstream through the Dalles locks and 1,565,262 tons went farther upriver, passing through the locks at McNary. Only 61,115 tons remained on the Bonneville Pool and 360,741 tons on the Dalles Pool. In other words, over 78 percent of the upstream tonnage was delivered to the McNary Pool and beyond.