her than at Flaming Gorge or Glen Canyon. However, in averagthe prices out and in keeping in mind the need for water storage, servation, irrigation and all of those factors-reclamation, all of se factors which attest themselves to this project-we feel that construction of Curecanti is the desirable move. Consequently, we have just assumed that it is in the project, will be he project, and perhaps should be in the project. Mr. FENTON. That is all, Mr. Chairman. Thank you. Mr. CANNON. We should not lose sight of the basic issue here, which hat after these installations have been built with the money of the payers, whether the taxpayers should get the benefit of these dams ilt at Government expense or whether the private utilities would be owed to build the lines and drain off the advantages so that the oney that is invested by the taxpayers in the installation would be lly for the benefit of the private utilities rather than for the public. at is the principal question before us in these transmission lines. Thank you for appearing today. HAWAII PROJECTS Mr. CANNON. We have received from the Hawaii State Chamber Commerce a listing indicating local interest priority on harbor rojects, which we will place in the record at this point. te of Hawaii-Federal Aid Harbor Projects-civil works program: Honolulu district engineer, U.S. Army Corps of Engineers Harbors for light draft vessels: This project includes study of approximately forty proposed sites, including terminal ports for inter-island ferry systems. Approved by the Hawaii State Chamber of Commerce, Feb. 12, 1960. Pending report of Governor. 1 Unassigned. RECOMMENDATIONS OF THE CHAMBER OF COMMERCE OF THE Mr. CANNON. We have received the usual recommendations fro U.S. Chamber of Commerce which I will include in the recor gether with my acknowledgment. Hon. CLARENCE CANNON, CHAMBER OF COMMERCE OF THE UNITED STATES, LEGISLATIVE DEPARTMENT, Washington, D.C., April 13, 10 Chairman, Subcommittee on Public Works Appropriations, House Appropriation te Committee, House Office Building, Washington, D.C. DEAR MR. CANNON: On the basis of our analysis of the President's 1961 baze the chamber of commerce of the United States recommends that the appropri tions for public works be reduced as outlined in the following table: Continuing concern over the inflationary force of excessive Government spend ing is essential under present economic conditions. Every inflationary fore should be curbed wherever possible. The chamber believes that possibilities for cutting down unnecessary or unwise Government spending are present in the vast public works program. We are convinced, from an examination of the proposed budget, that reductions can be made in the appropriation acont detailed in the following paragraphs. Since your committee has available to much more information concerning the public works program, we anticipate tha additional opportunities for reduction will become apparent to you. TENNESSEE VALLEY AUTHORITY The national chamber recommends reducing the TVA appropriation by $7. 449,000. The fertilizer production and test program, for which $3.399.00 a requested, constitutes an unwarranted commercial enterprise conducted by this Government agency and should be discontinued. The budget request provides for construction of the Melton Hill Dam and Reservoir on the Clinch River Estimated costs of this multipurpose project are $4,050,000 for 1961 and $34 million for completion. The national chamber recommends that the expansion of TVA power facilities be restrained, because the production and sale of ele tric power is properly a function of private industry rather than the Federa Government. The burden on taxpayers generally is compounded by having the Feder power sold below market price because costs such as interest and taxes have been omitted from price determinations. DEPARTMENT OF THE ARMY CIVIL Rivers, harbors, and flood control Operation and maintenance. The "Operation and maintenance" budget reques for 1961 is $125 million, an increase of $6,765,000 over the 1960 appropriation The increase would provide for a staff expansion of 179 employees at a cost $1 million, and for an increase of $3.5 million for "Other contractual services. Almost half of the funds requested ($59.4 million) will be for the operation and maintenance of 123 channel and harbor projects. The request for fiscal 1960 for the operation and maintenance of 194 channel and harbor projects was only $56,470,000. There is no apparent justification for requesting more per sonnel and funds for a program with a 37-percent decrease in the number $6,765,000. projects to be handled. We recommend that this appropriation be reduced b direction and management of the Corps of Engineers. While the amount is les General expenses.-This appropriation request of $12,120,000 is for executive han the fiscal 1960 appropriation, it excludes $732,000 for activities transferred "Operation and maintenance." Consequently, the corps is actually seeking ore for such overhead than in 1960. The national chamber sees no justificaon for an increase in this activity, other than $255,000 which is the amount ecessary to provide increases in salary as required by law. Your committee is ged to reduce this appropriation by $273,000. DEPARTMENT OF THE INTERIOR onneville Power Administration Construction.—The 1961 budget request includes $6,515,000 for starting conruction of new transmission and substation capacity to carry to load centers e power production of Federal and non-Federal generating installations scheded to be in operation by July 1964 and to meet service requirements of power stomers. This Federal expenditure would not be necessary if the power were arketed at the dams where it is generated. The expansion of the Bonneville Power Administration activities should be rtailed. The resultant Federal Government domination of the region's natural sources is inconsistent with the American free enterprise system. With inflaonary pressures ever dangerous, it is necessary that Federal expenditures be ept at the lowest level which will provide essential public services and the quirements of national safety. It is urged that these construction projects be rtailed or postponed until inflationary pressures subside. Beyond this, Bonneville Power Administration marketing policies should be vised under the direction of the proper congressional committee, to provide r direct sales of Federal power at the dams. If power produced at Federal ms were sold directly to local utilities, there would be no need for the conruction of Federal transmission facilities. Operation and maintenance. The 1961 budget request for Bonneville Power Iministration provides for a staff expansion of 54 at an estimated cost of 50,000. Data presented in the budget indicates a very slight increase in some ases of the operation and maintenance activities, but not sufficient to justify 5 percent increase in personnel. It is urged that your committee recommend reduction of $350,000 in this appropriation. SOUTHEASTERN POWER ADMINISTRATION Operation and maintenance.-The fiscal 1961 budget request is $800,000. The nction of Southeastern Power Administration in marketing power generated 14 Corps of Engineers hydroelectric plants constitutes an unwarranted busiss activity of the Government. The function of power marketing could be sumed by local utility firms now serving as contract carriers for the Federal wer, with direct sales by the Government to the utility companies at the dams. this business function were assumed by private enterprise this appropriation uld be unnecessary. SOUTHWESTERN POWER ADMINISTRATION Amounts requested for fiscal 1961 are: Construction, $1,325,000; continuing nd, $5 million; and operation and maintenance, $1,250,000. We recommend appropriation to the continuing fund or for construction. The Southwestern -wer Administration represents Government competition with private enterise, using tax revenues collected from all to help subsidize certain power users. The purchase and transmission of non-Federal power should not involve use of ederal funds. Local power needs should be met by local utility companies thout Federal financing or subsidy. Federal responsibility should not go bend seeing that power at any Federal project is made available to local utilities thout preference or discrimination as to type of users. The return of this tivity to its proper place in private enterprise would permit the discontinuance all Federal appropriations for the Southwestern Power Administration, inuding operation and maintenance. PROPOSED NEW CONSTRUCTION There undoubtedly will be requests from sponsors of new or enlarged local blic works to provide funds for projects they deem essential from the local int of view. While it is entirely natural that these requests be made, we urge the committee to resist them to the extent that they do not meet the test of essentiality from a national perspective. The Corps of Engineers has requested $21 million to cover fiscal year 1961 costs of 31 new construction starts which have estimated total commitments of $301 million. The Bureau of Reclamation is requesting $6 million in the coming year to start six new projects with total estimated commitments of $184 million. After evaluating the justifications submitted to your commite, you are urged to resist each project that is not essential from a national viewpoint. I would appreciate having this letter made a part of the record of hearings on the public works appropriation bill for 1961. Cordially yours, CLARENCE R. MILES, Manager. Mr. CLARENCE R. MILES, HOUSE OF REPRESENTATIVES, U.S. Chamber of Commerce, Washington, D.C. DEAR MR. MILES: Have received for inclusion in our public works hearing at your request, the chamber of commerce letter of April 13, 1960. Am amazed to find your National Chamber proposals at great variance with the requests and proposals of most of your State and city chambers which appeared before the Public Works Subcommittee in connection with water resources and power projects. Most of their proposals were, of course, to in crease the budget and include unbudgeted items in contrast to your proposals for reductions throughout the public works budget. Sincerely yours, CLARENCE CANNON, Chairman. Mr. CANNON. We shall insert in the record the following statements and letters which have been received for consideration by the committee. (The matter referred to follows:) YAQUINA BAY AND HARBOR, OREG. CONGRESS OF THE UNITED STATES, Hon. CLARENCE CANNON, Chairman, Appropriations Committee, HOUSE OF REPRESENTATIVES, Washington, D.C., February 26, 1960. DEAR COLLEAGUE: I am writing with respect to funds to provide for con tinued planning and engineering on improvements to Yaquina Bay and Harbor Oreg. You will recall that last year your committee at my request approved $100. 000 to initiate planning on this meritorious project. The Corps of Engineeri during the coming fiscal year can economically expend $300,000 to continue its planning and engineering work on the project and I am gratified that this amount was recommended in the President's budget. Your committee is aware of the very favorable benefit-to-cost ratio that will result from the proposed improvements to Yaquina Bay and Harbor. It should also be noted that timber inventories in the tributary area completed by the U.S. Forest Service subse quent to the Board of Engineers for Rivers and Harbors estimate reveal that the benefits potential is much greater than first calculated. The proposed improvements on this project are urgently needed and wher completed will substantially improve the economy of a large area in Oregon I respectfully request that your committee approve the funds requested. With best wishes, I am, Sincerely, WALTER NORBLAD. FLOOD CONTROL, WAUKESHA COUNTY, WIS. U.S. SENATE, COMMITTEE ON AGRICULTURE AND FORESTRY, April 13, 1960. on. CLARENCE CANNON, hairman, Public Works Subcommittee, Committee on Appropriations, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: I appreciate very much the opportunity to present my ews to this subcommittee on the very serious flood which hit Waukesha ounty and the city of Waukesha 2 weeks ago. It has caused deep concern nong all of us in Wisconsin, for we feel that some attention should be given the basic causes of the tragedy which again this year has caused considerable ss and even greater danger to lives and property in the Fox River Basin in nd around Waukesha. Three hundred homes had water in their basements, the water purification stem was drowned out for a period of several days, the Barstow Street dam as damaged, and 2,000 feet of railroad track under water resulted in disupted rail service for 3 days. The danger to bridges, utilities, and hundreds 2 private homes is reported to have been very great even where no actual amage was sustained in this year's flood. The rapidly growing population of this area and the resultant increase in ilding and water runoff has made the question of widening and deepening e Fox River an urgent one. The prospects, unless some action is taken, are or a worsening situation with floods likely to occur in any spring which will use damage even greater than this year. Thirty years ago the 71st Congress recognized the need for flood control work the Fox River and directed the Army Corps of Engineers to review the oblem. In 1949 the Committee on Public Works of the House of Representaves authorized the Corps of Engineers to make an investigation of the Fox iver in the interests of flood control. That nothing has been done is indeed fortunate, for in addition to the fact that the river has flooded many times ace then, it probably would have been easier and less expensive to solve the oblem at that time. It seems to me that at this late date the least we can is begin a study of the situation so that plans for a permanent solution can made. The Corps of Engineers has said that $25,000 can be effectively utilized r this purpose in fiscal 1961. This is a modest request and in order to get a irt on a solution to this problem, I urge the approval of these funds. The responsibility of the Federal Government to at least study the problem ems to me very clear. How much better it would be to exercise this responsility now while the problem can be solved by studies and carefully planned tion than to wait until a few years hence when we might very well have to ur greater sums of money into Waukesha County because, through neglect, has become a disaster area. Sincerely, WILLIAM PROXMIRE, U.S. Senator. MONMOUTH-DALLAS RECLAMATION PROJECT, OREGON HOUSE OF REPRESENTATIVES, Washington, D.C., February 26, 1960. n. CLARENCE CANNON, airman, Appropriations Committee, use Office Building, Washington, D.C. DEAR COLLEAGUE: I am writing with respect to the need of funds requested the Department of the Interior for a feasibility study of the Monmouth-Dallas clamation project, Oregon. The signed acreage goal for this project has been met and the feasibility ady should now get underway. An adequate, dependable water supply in the onmouth-Dallas area is essential for maximum agricultural production. I n assure the committee there is a compelling need for this meritorious project d I am confident the feasibility report will show clearly the substantial ecomic benefits to be derived. |