resented here all believe that we are conservative in our request, since the need for improved channels at Baltimore and in the approaches thereto is immediate and the requests are not a matter of planning for future needs.

The Congress recognized this need, insofar as the Baltimore Harbor channel system is concerned, when, in 1958, it authorized a deepening of the main channel in Chesapeake Bay and Baltimore Harbor from 39 to 42 feet and the branch channels leading to large ore unloading piers and oil discharge piers from 35 to 42 feet. This authorization, which presently carries a benefit-to-cost ratio of 4.95 to 1, also provides for the widening of all the channels by 200 feet to permit the safe maneuvering of the large bulk carriers serving the port.

Insofar as the Chesapeake & Delaware Canal is concerned, the Congress recognized the need for its improvement in 1954 when it authorized a deepening of the canal from its present 27-foot depth to a depth of 35 feet and a widening from 250 feet to 450 feet. This canal, although of great importance to the port of Baltimore, has similar importance to the Delaware River ports. In addition, it facilitates the safe movement of vessels serving all of the ports in the North Atlantic range and is therefore not a project having purely local effect.

The seriousness with which the problem of inadequate depth in channels serving the port of Baltimore is concerned is indicated by the status of the representatives who are here today to lend their support to the projects. These representatives are the senior executives of all facets of port and business interests.

As the statements submitted today will indicate, Baltimore is noted as the principal bulk port on the eastern seaboard, and as such has the greatest demand for service to the large supercarriers now existing and now also under construction. Because of the limiting depth in the Baltimore Harbor channel system, which is less than any other major seaport on the seaboard, these large carriers can only enter the port loaded to partial capacity. This is an uneconomical operation from a business standpoint and also is one that is adverse to our national defense. Ore and oil are the primary commodities in the bulk trade and these are the principal commodities on which our defense rests. A few simple statistics on the drafts of larger bulk carriers in existence in June 1959 will illustrate the point here being made. These ships now serving the Western Hemisphere would all use the port of Baltimore if maximum loading were possible.

Other large carriers in this draft range of 34 to 40 feet, which is the critical range at Baltimore, have been completed since June 1959 and an ever-growing number are under construction. There are larger carriers in the world, but these generally do not serve the Western Hemisphere.

For the benefit of this committee, it is desired to point out that the $7 million requested for the Baltimore Harbor channel system is based on a practical, although only partial solution, to the problem of accommodating these large carriers. With the expenditure of $7 million during the next fiscal year, it is possible to provide a depth

of 42 feet on the inbound side of the channel for a width of about 275 feet from the ocean to the head of the main channel and the branch channels. Although navigation in such a narrow strip would be difficult, it is feasible and the port would within a year be in a position to serve the supercarriers.

The statements which are to be presented for the record, but which will not be presented orally because of time limitation, will clearly indicate to you the need for improved channel depth to afford greater economy in the cost of transportation and the elimination of the extreme hazards which exist because of ship operations in the present inadequate channels; the changing criteria in ship design which is producing larger and larger ships; the benefits that would accrue to the economy of the city, State, and the Nation through the provision of the deeper channels; and the important part such deeper channels mean to the national welfare and defense during times of emergency.

In closing, I wish to thank the committee for the time you have given the Baltimore interests and to again express to you our sincere hope that our appeal will be given favorable consideration.

Mr. CANNON. Thank you, Mr. Kronau.

Congressman Fallon.

Mr. FALLON. Mr. Chairman, I would like to present the gentlemen who are here today and ask unanimous consent that their statements may be made a part of the record.

Mr. Chairman, first I would like to present General Purnell, who is representing Mr. Arthur Grotz, president of the Western Maryland Railway Co.

Mr. ČANNON. General Purnell.

Mr. FALLON. I would like to present Mr. John D. Morris, regional manager of the Pennsylvania Railroad.

Mr. CANNON. Mr. Morris.

Mr. FALLON. I would like to present Mr. George C. Doering, general attorney for the Baltimore & Ohio Railroad, who is representing Mr. W. C. Baker, vice president of the Baltimore & Ohio Railroad. Mr. Baker, because of a previous commitment, is unable to be present today.

Mr. CANNON. Mr. Doering.

Mr. FALLON. And I would like to present Mr. J. W. McElroy, president of the First National Bank of Baltimore. His statement reflects the opinion of the commercial banks.

Mr. CANNON. Mr. McElroy.

Mr. FALLON. And I would like to present Mr. Charles P. Crane, chairman of the board of the Baltimore Gas & Electric Co.

Mr. CANNON. Mr. Crane.

Mr. FALLON. I would like to present Capt. Steven M. Moodie, of the Marven Steamship Co., who is representing Mr. R. J. Jurgen, president of the Marven Steamship Co. and representing all the subsidiary steamship companies of the Bethlehem Steel Corp.

Mr. CANNON. Captain Moodie.

Mr. FALLON. I would like to present Mr. James V. Guthrie, vice president of the Steamship Trade Association of Baltimore, who is here representing Mr. Robert E. Herd, president of the Steamship Trade Association. Because of a conflicting meeting of the trade association, Mr. Herd was unable to be here.

Mr. CANNON. Mr. Guthrie.

Mr. FALLON. And I would like to present Mr. Charles Scarlett, Jr., executive vice president of Ramsay, Scarlett & Co., steamship agents. Mr. CANNON. Mr. Scarlett.

Mr. FALLON. And Mr. Gerald M. Stein, vice president of the Maryland Shipbuilding & Drydock Co.

Mr. CANNON. Mr. Stein.

Mr. FALLON. Mr. Gerald S. Wise, president of the Baltimore Association of Commerce, was unable to be here today because of a previous commitment. The association is represented by Mr. Edward A. Brannon, director of its export-import bureau.

Mr. CANNON. Mr. Brannon.

Mr. FALLON. And we have a statement by Capt. Howland S. Roberts, president of the Association of Maryland Pilots. Captain Roberts expresses his regrets in being unable to attend this hearing because of a conflicting meeting.

Mr. CANNON. His statement will be included in the record.

Mr. FALLON. And we also have a statement by Mr. Herbert J. Watt, president of the Canton Railroad and Canton Co. Mr. Watt was prevented from being here today because of a previous commitment. Mr. CANNON. His statement will be included in the record. (The statements above referred to follow :)

Statement by W. Arthur Grotz, President, Western MARYLAND RAILWAY Co., BALTIMORE, MD.

Western Maryland Railway Co. maintains one of the major ore handling facilities in Baltimore, representing a total investment of many millions of dollars. Most of this investment represents construction completed since 1950 in anticipation of a great increase in the importation of ore through the port of Baltimore.

It now appears that most of the future ore traffic will be transported from foreign origins in large deep-draft ore vessels. Such vessels when fully loaded will not be able to enter Baltimore Harbor unless the channel is deepened and widened as now proposed.

Baltimore is a major port with important facilities developed over many years for the express purpose of rapid and efficient handling of bulk cargoes, particularly ores. These commodities, and particularly iron ore, are commerce of major importance to this country.

Consequently, it appears to me to be obviously a matter of more than mere local concern that Baltimore, as one of the major ports of the Nation, be provided with access facilities sufficient to enable it to handle commerce which is of vital importance both from the standpoint of industry and national defense, and which Baltimore is particularly prepared to handle efficiently. The provisions for this adequate access can come only from the Congress. I urge the committee to include $7 million for this work in its recommended appropriations for the coming fiscal year. The need for this sum has already been described to the committee in hearings on this same subject last year.

There is also the matter of long-needed and congressionally approved projects for widening, straightening, and deepening the Chesapeake & Delaware Canal. I learn that there is at present included in the budget for this work only the sum of $103,000 which will be devoted entirely to planning activities. I am further informed that the U.S. Army district engineer at Philadelphia, who has charge of the canal work, can manage up to $1,200,000 for work on the canal in the coming fiscal year.

I urge the committee to increase the Chesapeake and Delaware Canal appropriation to $1,200,000 in order that some appreciable progress may be made on this important waterway. Unless appropriations for the canal are increased, the completion of the project which the Congress has long since approved may be 20 to 25 years away. Meanwhile, the port of Philadelphia, as well as the port of Baltimore, will suffer from the fact that the usefulness of the canal will increasingly lag behind the development of foreign and coastwise commerce which it was intended to serve.

STATEMENT BY JOHN D. MORRIS, REGIONAL MANAGER, PENNSYLVANIA RAILROAD, BALTIMORE, MD.

The Pennsylvania Railroad Co. has operating control of 19 berths for oceangoing ships, 9 of which can easily be made suitable for ships having a greater draft than the present channel which leads to them.

With the proposed deepening of the channels in the Chesapeake Bay, it is evident that the entrance channels to the various rivers and the piers in them must follow.

While it will require some dredging and the possibility of strengthening some structures by the property owners, it certainly would be a mistake for any com pany to be so backward as to not follow the trend of the times to make cargo carriers larger and thereby reduce the cost per unit of measure for transportation. The Pennsylvania Railroad stands ready to match this channel growth with those things necessary to accommodate the larger ships.

Baltimore, being the No. 1 bulk commodity port in the Nation, is deserving of assistance in this matter.

All modes of transportation are increasing in size, and it is necessary that waterways must be deepened if waterborne traffic is to keep abreast. Moreover, while it is not always possible to construct a new pier for additional space to dock ships, larger ships can be docked at existing piers and more cargo loaded or unloaded in less time per unit than could be handled to and from the smaller ships.

The deepening and widening of the main ship channel permits the port of Baltimore to be competitive to other ports; thereby of benefit to the whole Nation. As the representative of the Pennsylvania Railroad, we respectfully urge that the appropriation requested for the Baltimore Harbor deepening be given the full consideration of this committee.

STATEMENT OF W. C. BAKER, VICE PRESIDENT, the BALTIMORE & OHIO RAILROAD Co., BALTIMORE, MD.

I appreciate this opportunity of submitting a statement on behalf of the Baltimore & Ohio Railroad Co. supporting the requested increased appropriations for improvement of the Baltimore Harbor and channels and improvement of the Chesapeake & Delaware Canal.

This railroad company concurs in the view that the requested increase to $7 million of the appropriation for the deepening and widening of the Baltimore Harbor and channels is the minimum amount required to get such work started in a manner which will result in foreseeable practical benefits.

Similarly, this company believes that the $103,000 budget item for the Chesapeake & Delaware Canal should be increased to $1,200,000 in order that the work on that canal, which was approved by Congress in 1954, may be progressed in a serious manner. The deepening and widening of the C. & D. Canal so that it can handle ships with a 35-foot draft is imperative so that there may be full utilization of the facilities of the port of Baltimore as a gateway for large modern ships.

Improvement to modern day standards of the Baltimore Harbor and channels and of the C. & D. Canal is essential to the Baltimore & Ohio Railroad Co. The vital interest of the Baltimore & Ohio in waterborne traffic is evidenced by the fact that this company first started constructing piers and pier facilities in Baltimore about 100 years ago. The present-day value of these facilities is well over $100 million. Recent improvements include our Curtis Bay ore pier completed in 1951 at a cost of $5 million; our Locust Point fruit terminal completed in 1958 at a cost of almost $4 million; and the Hawkins Point marine terminal completed in this company's behalf during 1959 at a cost of almost $31⁄2 million.

In addition to the foregoing direct investment in piers and pier faclities, the Baltimore & Ohio has also spent about $32 million for dredging of channels adjacent to its piers, of which about $24 million has been spent since about 1944.

We have already dredged the waters adjacent to our Curtis Bay ore pier to a depth of 39 feet in anticipation of an increase in the 35-foot depth of the approach channel into Curtis Bay to accommodate the large ore carriers. The present channel limitation prohibts use of our ore pier by ships with cargoes of

over 35,500 tons and the trend is well-known toward larger ore carriers with 60,000-gross-ton capacity. The inability to handle these larger vessels because of the 35-foot channel limitation is a severe handicap, resulting in loss of business to the Baltimore & Ohio as well as the port of Baltimore.

The importance to the Baltimore & Ohio of handling waterborne traffic at Baltimore is further shown by the fact that in 1959 this company handled 5,984,041 tons of such traffic, with resulting gross revenue to the company of $16,023,437. This is a sizable chunk of business to the Baltimore & Ohio Railroad and would be increased if the harbor improvements were made. It is obvious that the Baltimore port, together with the C. & D. Canal, must be improved if the Baltimore & Ohio Railroad is to have the opportunity to participate in the increasing volume of traffic handled by the larger size ships. Accordingly, the Baltimore & Ohio strongly urges that the requested increased appropriations be approved so that the important work of improving the Baltimore Harbor and channels and the C. & D. Canal may be started as promptly as possible.

STATEMENT BY J. W. MCELROY, PRESIDENT, FIRST NATIONAL BANK OF BALTIMORE, BALTIMORE, MD.

A group of representatives of the commercial banking interests in Baltimore has taken under consideration this question of channel depth, arriving unanimously at the conclusion that the prosperity of our city and State are inseparably tied to the activity in the port.

Adequate statistical presentation will be, or has been made, to the committee, furnishing testimony to the vital contribution which the port makes to our economy. As bankers, the prosperity of our community, present and future, is a question of the greatest concern. Our concern becomes magnified when we are confronted with obstacles in the path of continued development. Our present channel limitations constitute such an obstacle. The adverse effect has already been felt by a few industries who are directly concerned, but the impact is not yet widespread. That is the situation today, but we also are aware of a trend in the shipping industry toward larger vessels of deeper draft. If present day ships cannot enter our port fully laden because of depth limitations, what of tomorrow's, several of which, by the way, are already in advanced stages of construction.

The need for deeper water becomes more pressing each day, and its significance penetrates beyond our own concern for the local economy. It concerns a vast segment of industry in our own Midwest which historically looks to Baltimore as the link to ocean trade routes. More broadly, consider that our Nation increasingly depends on world sources for a widening list of raw materials essential to our current production levels. Our dependence on these importations is already manifest in certain basic ores and petroleum; commodities which, by their nature, are hauled in large single loads, and for the carriage of which, our larger ships have been principally designed. Baltimore figures prominently in this area, and our port activity depends highly on this sound base. The industries concerned are well-established and integrated in our economic structure. We need them today as we will need them tomorrow, but we know that we must provide the facilities which will induce their expansion rather than set obstacles before them. We can think of no greater disservice to our community than to allow industries to lessen their activity because we failed to encourage the development of adequate facilities.

In the present case, deepening our Baltimore channel system to 42 feet and the Chesapeake & Delaware Canal to 35 feet, the adversities are apparent today. The trends which will aggravate these adversities are clear. Because we are apprehensive of the consequences which these developments may ultimately bring to our community, the commercial banking interests strongly endorse the immediate undertaking of the channel projects with the appropriation of $7 million for Baltimore Harbor and $1.2 million for the Chesapeake & Delaware Canal.

STATEMENT BY CHARLES P. CRANE, CHAIRMAN OF THE BOARD, BALTIMORE GAS & ELECTRIC CO., BALTIMORE, MD.

The economic well-being of the Baltimore metropolitan area and of Maryland is closely related to and dependent upon adequate facilities to serve the strategically located port of Baltimore.