delay each year before the work can get started they feel they cannot keep up their equipment and do the work during the winter months, and short contract time, without a price increase of at least 10 to 15 percent. We feel sure this same situation obtains with other contractors. Transposing these facts from the particular section we have discussed and relating it to the entire project, we recommend (a) a total of $9 million be included in the present budget under consideration, for bank stabilization purposes, and to coincide with the capabilities of the U.S. Engineers in this respect; (b) bank stabilization be removed from emergency status as heretofore, and put on a permanent basis, with adequate appropriations. We consider these recommendations a necessity for a sound, economical program of flood control and navigation. CONCLUSION In conclusion, we have requested: (1) An appropriation of $390,000 for planning purposes covering two navigation locks and dams below Little Rock, Ark. (2) An appropriation of $200,000 for planning purposes of Ozark Dam, (3) An increase in the present budget figure of $5 million to $9 million for bank stabilization. (4) Reclassification of appropriations for bank stabilization purposes from "emergency" to "permanent" status. Mr. EVINS. Thank you, Mr. Sanders. Since all the items to which you addressed yourself are items beyond the budget, when you revise your remarks would you put them on a priority basis, indicating which would have the highest priority. (The matter referred to was later supplied to the committee.) Mr. BYRNS. Thank you very much, Mr. Sanders. In my judgment that is a very excellent analysis of this whole picture, and it is particularly pertinent at this time, if I may take a moment, because up until this time we have been uncertain as to what route the Arkansas navigation channel would follow, whether it would follow the river itself or the canal. That was definitely settled by the Corps of Engineers in the fall so that makes it imperative we get busy on that particular section and do the things Mr. Sanders spoke of. Now it is my privilege to present for the State of Oklahoma my good friend and an old veteran in this field, Mr. Glade Kirkpatrick, vice chairman of this committee. He will discuss the situation from the standpoint of Oklahoma. Mr. KIRKPATRICK. I have a letter from our Governor of the State of Oklahoma and also various letters and statements which I would like to file with the committee. (The information referred to follows:) STATE OF OKLAHOMA, Oklahoma City, March 31, 1960. The CHAIRMAN AND MEMBERS OF THE PUBLIC WORKS SUBCOMMITTEE OF THE HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE. DEAR MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE: In view of the fact that it is impossible for me to appear personally before your committee I present to you Mr. Glade R. Kirkpatrick, a member of the Oklahoma Water Resources Board, who is my representative for the State of Oklahoma on the Tri-State Committee of the Arkansas Basin Development Association. I concur wholeheartedly in the recommendations by the Tri-State Committee chairmaned by Mr. Kirkpatrick. The funds requested to carry on this important water resources development program is a sound capital investment in the future of the area and the United States. I cannot urge too strongly that your committee make available the funds suggested by the committee of the Arkansas Basin Development Association. The item that I particularly urge that your committee also give serious consideration is an item of $20,000 to be made available for a study of the feasibility of building a connecting canal between the Arkansas Basin project which is now under construction and the Eufaula Reservoir. Such a canal would open up vast deposits of high grade coal surrounding the Eufaula Reservoir and would be of great benefit to the established glass and sand industry now located in the area, as well as the lead and zinc smelter operation in the Henryetta area. Undoubtedly, construction of this canal before the completion of Eufaula and Webbers Falls Reservoirs would be more economical than if the project has to be built after these areas are flooded. It will not be much over 20 miles from one of the arms of the Eufaula Reservoir to an arm to the Webbers Falls Reservoir, and there will a difference in elevation between the normal pools of the two lakes of but 95 feet. Any courtesies shown Mr. Kirkpatrick and his committee will be greatly appreciated by me. Sincerely, J. HOWARD EDMONDSON, Governor. THE OHIO RUBBER CO., Willoughby, Ohio, March 29, 1960. CHAIRMAN, PUBLIC WORKS SUBCOMMITTEE, Washington, D.C. DEAR CONGRESSMAN: Having recently broken ground for a new $3 million manufacturing plant at Fort Smith, Ark., we have made a careful study of the near-term and long-term possibilities of the Arkansas Basin area. It is obvious since we are locating a plant there that we found many present advantages in this area. We are a manufacturer's manufacturer and locate our own facilities in areas where we anticipate a strong expansion of metalworking industries. It is our belief that development of navigation in the Arkansas will eventually permit shipment of iron ore into this area where it will meet local metallurgical coal and limestone. When this comes about, the basic manufacture of steel in this area will, in our opinion, be the final step in permitting full utilization for industrial purposes of the great resources in water, fuels, and labor. We strongly recommend approval of the necessary appropriations to carry forward the development of navigation in the Arkansas. Yours very truly, MILO J. MARSH, President, GRAND RIVER CHEMICAL DIVISION, DEERE & Co., Pryor, Okla., March 21, 1960. CHAIRMAN, PUBLIC WORKS SUBCOMMITTEE, HONORABLE CHairman and Members of the SUBCOMMITTEE: The importance of ultimate development of the Arkansas River and its tributaries for navigation and flood control, power generation, etc. can hardly be overemphasized as far as industries such as ours are concerned. Our primary business in this division of Deere & Co. is the manufacture and sale of synthetic nitrogen compounds, with the bulk of our market in the fertilizer and animal feed areas. Freight on our products from manufacturing point to destinations is the single biggest cost incurred in our business, and since we believe that shipment by water would be cheaper than by other means, we have admittedly, selfish interest i pects for navigation of the Arkansas River. Nitrogen is only one of three major plant food requirements, the ot being phosphate and potash in various forms. While we are not engaged in making or selling these materials, their availability at low extremely important to our ultimate consumer, the farmer, and as their of consumption increases or decreases, so to some extent does that of n Freight rates on phosphate rock are much lower than on processed or phosphate and, for the most part, it is desirable to ship the raw rock t cessing point for refinement and redistribution rather than ship the products long distances; for example, from Florida into the Midwest obvious that provision of water transportation for shipping phosphate ro Florida into eastern Oklahoma and to points in between presents the I of savings to the ultimate consumer in addition to the profit possibility 1 west operators in the processing and refining of the raw material. In th primary requirements are either, (1) availability of low cost power in q or (2) the availability of sources of energy such at natural gas at 1 and in quantity. The upper proposed navigable reaches of the Arkansa have, and will have, great quantities of both of these energy sources fore, there would unquestionably develop industry based on these e advantages. There are large deposits of coal and other minerals in the Oklahoma-A areas which could be economically mined and marketed if low cost wate portation were available via the Arkansas River. In addition to the economic gains from low cost water transportation etc., it seems in order to point up the delightful, publicly appreciated re areas which result from impoundments such as are planned and such been completed on the Arkansas and its tributaries. Add to this the great resulting from adequate flood control and it would seem that there is 1 tion as to the justification for ultimate complete development of the A River Valley in the shortest reasonable time. Very truly yours, W. W. YEANDLE, General Ma OKLAHOMA NATURAL GAS CO To the Chairman of the Public Works Subcommittee of the Approp Committee of the House of Representatives: Oklahoma Natural Gas Co. is very interested in the program for velopment of the Arkansas River Basin. For years we have worked v Arkansas River Basin Development Association because we believe this means a great deal for the development of eastern Oklahoma. V Oklahoma Natural Gas Co. serves the majority of communities in th homa portion of the Arkansas River Basin. Included in this area are lowing: Stigler, Muskogee, Wagoner, Catoosa, Pryor, Claremore, Chout Tulsa. The company has an 18-inch transmission line with a present capacity in excess of 70 million cubic feet of gas per day extending to t of Pryor and serving several industries already located in that area. recently extended that line in the amount of approximately 4 miles of 12-i which will serve a cement plant under construction. It is possible no our present facilities and projected construction, for Oklahoma Natural to provide to Muskogee and the area referred to above an additional 100 cubic feet of gas per day when it is required. With this area includ company presently serves approximately two-thirds of the gas meters entire State, including the cities of Enid, Oklahoma City, Ardmore, a extreme western portion of the State. This company has completely controlled adequate natural gas rese supply the above-mentioned increased transmission capacities for a consi number of years. It is our feeling that development of the maximum resources of the S Oklahoma demands the development of the Arkansas River from its m the town of Catoosa as provided for in this program, and we sincerely u continued interest of your committee in this effort. Sincerely, 11. A. ED DX SUNRAY OIL CO., Tulsa, Okla., March 24, 1960. CHAIRMAN, PUBLIC WORKS SUBCOMMITTEE, APPROPRIATIONS COMMITTEE, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: Favorable consideration of the appropriation requests which you now have under review to further implement the water resources development program in the basin of the Arkansas River are of vital concern to DX Sunray Oil Co. Others appearing before your committee will properly describe for you the broad economic potential of this forward-looking program for the States of Oklahoma, Arkansas, and Kansas, thus, I will confine my comments to the direct implications of this program to my company. The DX Sunray Oil Co. owns a refinery in Tulsa, Okla., with a crude capacity of 75,000 barrels per day and a refinery in Duncan, Okla., with a capacity of 45,000 barrels per day. During the past 3 years we have spent approximately $20 million to expand and modernize these two refineries, in which are employed approximately 2,000 people. Our Tulsa refinery has been in continuous production since 1914 and we are confident of the future of these operations. Much of our refined products are marketed along the Mississippi River and its tributaries. Next to crude cost and gasoline taxes, transportation represents the major item of expense which our customers must pay when purchasing gasoline and heating oils. The entire output of our Oklahoma refineries must now move to market by pipeline, truck, and railway. The plan for development of the Arkansas River Basin includes navigation to a point approximately 12 miles northeast of Tulsa. We feel that cheap water transportation would provide a singular advantage for our Oklahoma refineries since both the raw material and finished products are bulk commodities which lend themselves to profitable barge movement. The reduction in transportation cost which such a navigation system makes possible could result in lower product costs for our customers in the immediate future and lower raw material cost for our refineries over the long term at such time as the diminishing supply of local crude must be supplemented by oil shipped in from other producing areas. The Tulsa plant of DX Sunray Oil Co. provided more lubricating oils for the Air Force during the last war than any refinery in the United States and we have for many years supplied substantial quantities of lubricants to customers in England, France, Germany, Japan and other parts of the world. All of these lubricating oils must now be shipped by costly railway or motor transport. We have been deterred in the construction of additional petrochemical facilities at our Oklahoma refineries because most of the commodities produced from such facilities are bulky and the cost of transportation by rail to the potential consuming areas would make such an investment uneconomical. The availability of cheap water transportation would permit our inland refineries to compete more favorably with other producers of lubricants, petroleum chemicals and byproducts. The high cost of industrial water is a matter of real concern to my company. 6.500,000 gallons of fresh water must be purchased daily for use as a coolant in the operation of our Tulsa refinery. At $0.142 per thousand gallons, this represents a substantial item in our total manufacturing cost. We are confident that construction of the Oologah and Keystone reservoirs will make available at reasonable prices the industrial water so essential to the operation of our refinery and to other industries which might be located in the Tulsa area. We respectfully urge your favorable consideration of the appropriations needed to carry out the Arkansas River Basin development plan as rapidly as possible. consistent with sound engineering practices. Very truly yours, R. W. MCDONNELL. NATIONAL BANK OF TULSA, THE CHAIRMAN, PUBLIC WORKS SURCOMMITTEE OF THE APPROPRIATIONS COM MITTEE, House of Representatives, Washington, D.C. DEAR SIR: For many years I have been interested in the comprehensive prozram for the development of water resources in the Arkansas River Basin. I have watched the progress of each project and viewed the benefits which resulted from the completion of each project. These benefits in the form of flood control, water supply, hydroelectric power, and recreation have been very striking indeed. One cannot visit the lakes in operation along the Arkansas and its tributaries without being impressed with their economic importance to the people in this area and to the Nation as a whole. As the program for the full development of the Arkansas Basin develops and new industries are established each year, the impact that water transportation will have in the valley becomes increasingly clear. We at the National Bank of Tulsa are happy to reaffirm our vital interest in this program, and we are proud to participate with the many others in Oklahoma, Arkansas, and Kansas in doing everything we can to hasten the comple tion of the overall program. We should like to urge that additional funds be appropriated in order that this may be accomplished. Very truly yours, A. E. BRADSHAW, Chairman of the Board. THE FIRST NATIONAL BANK & TRUST CO. OF TULSA, March 22, 1960. CHAIRMAN OF THE PUBLIC WORKS SUBCOMMITTEE OF THE APPROPRIATIONS COM- DEAR SIR: For more than 25 years this bank has been in favor of a comprehensive program for the development of the Arkansas River Basin. In our opinion this project is desirable for the industrial development of a large segment of the country which would support a considerable population growth through increased employment. Extensive studies have supported the economic feasibility of such a project, and we are gratified to know that progress is being made in this endeavor. It is our firm belief that the advantages of this development will be national in scope and a necessity for the surrounding States. We assure you of our continued support as a part of our contribution to the progress of the economics of this region. Very truly yours, F. G. MCCLINTOCK. FANSTEEL METALLURGICAL CORP., CHAIRMAN, PUBLIC WORKS SUBCOMMITTEE, U.S. House of Representatives, Washington, D.C. DEAR SIR: The consolidation of numerous efforts to bring to reality navigation on the Arkansas River by the Arkansas Basin Development Association and the Tri-State Committee is one of the most significant actions the Southwest has ever experienced. It is second only to the realization of the project itself. The writer has worked on the Ohio River and lived near the Illinois Log Canal and the Great Lakes and is fully appreciative of the results of a combination of resources and water navigation. Considering this, the prospective benefits to this area and the country at large stagger the imagination. Navigation on the Arkansas will make available all the factors which will promote rapid development of the area to assist in maintaining the high U.S. standards of living for the surging population. Since water is the most vital of the utilities necessary for industrial growth, and production must keep pace with the population increase, it is imperative that your committee provide the Corps of Engineers with the funds they require. Yours truly, LYLE L. CLARK, Plant Manager. CONTAINER CORP. OF AMERICA, CHAIRMAN, PUBLIC WORKS SUBCOMMITTEE, U.S. Senate, Washington, D.C. DEAR SIR: As you can appreciate, our business, that of making corrugated shipping containers, is one that makes us automatically interested in seeing new |