Mr. CANNON. We are always glad to have your recommendation. Mr. O'Hara.

STATEMENT OF REPRESENTATIVE JOHN A. BLATNIK, MINNESOTA Mr. O'HARA. The next witness is our distinguished colleague from the Eighth Congressional District, the Honorable John Blatnik. Mr. CANNON. Mr. Blatnik.

Mr. BLATNIK. Good morning, Mr. Chairman and members of the committee.

Mr. CANNON. We are glad to have you with us this morning, Mr. Blatnik.

Mr. BLATNIK. Mr. Chairman, the St. Paul-South St. Paul flood control project has my wholehearted support. I know the situation in the St. Paul area and can attest to the urgent need for this project. I presided at the hearings in our Public Works Committee 2 years ago when the authorization for this project was approved. Compared to many that came before us in Public Works and you gentlemen this is at a large project, but for the people of the area it means hope for frire economic growth and development.

Minnesotans strongly support the project and join the delegation at has come down here this morning to urge that adequate appropristions be made for it.

Mr. ANDERSEN. If the gentleman will yield, according to the Army Engineers in connection with the justification for this project, I quote: "In this area the 1951 and 1952 floods caused estimated damages of $2.876,000 and $3,910,000 respectively. An additional loss of $3,400.000 from the 1952 flood was prevented in South St. Paul by emergency measures and partially completed dikes built after the 1951 food."

We are talking here about something that has created the loss of at Past $6 million to that particular area in two floods during this past decade. Thank you, Mr. Blatnik.

Mr. BLATNIK. Thank you, Mr. Chairman.

Mr. CANNON. Mr. Blatnik is a member of the Joint Steering Committee of the House. We are glad to have his testimony.

Mr. O'HARA. The next witness is my distinguished successor, Congressman Nelsen, and South St. Paul, is a part of his district.

STATEMENT OF REPRESENTATIVE ANCHER NELSEN, MINNESOTA Mr. NELSEN. Mr. Chairman and members of the committee, I would ke to ask permission to file a statement with this committee in the terest of saving time.

Mr. CANNON. Your statement will be made part of the record at this point.

(The statement follows:)

STATEMENTS BY CONGRESSMAN ANCHER NELSEN OF MINNESOTA CONCERNING ST. PAUL-SOUTH ST. PAUL FLOOD CONTROL PROJECT

Mr. Chairman, we appreciate this opportunity to present the case of the St. -South St. Paul flood control project, and in order to give the delegations from the cities concerned as much time as possible, I am filing the following statement is an extension of my verbal testimony:

We are here today to urge that $500,000 be appropriated in fiscal year 1961 to tart construction on this project. The U.S. Army Corps of Engineers has indiated that they have the capability to utilize this amount in the coming year. The St. Paul-South St. Paul project is a $5,705,500 flood control project authorzed by the Congress on July 3, 1958, for which a total of $359,000 has already een appropriated by Congress for planning studies. The need for this activity

grew out of disastrous floods which hit the area in 1951 and 1952, causing damage estimated at $2,788,000 in 1951 and $4,650,000 in 1952.

Since authorized by Congress, the project has proceeded in an orderly manner: all of the local commitments have been met, and plans are in the process of completion so that construction could normally start in the coming fiscal year. Throughout the history of this project, we have appreciated the support of the Congress, the U.S. Army Corps of Engineers and the Bureau of the Budget. In the last session of Congress an appropriation of $163,000 to complete the planning was passed with the full support of all agencies concerned.

In the budget presented this year, the South St. Paul project was not included because its cost-benefit ratio of 1.13 to 1 fell below the criteria set by the Corps of Engineers in determining the floor below which no projects would be considered.

We do not argue with the criteria which must be set by both the Corps of Engineers and this committee in determining the priorities among many essentially worthy projects.

However, as the Representative in Congress of the city of South St. Paul, it seems to me there is one overpowering argument-an argument which can never be incorporated into a cost-benefit ratio—which we regard as an intangible value of sufficient import to request that this committee include construction funds for our project in this year's appropriation.

I refer to the South St. Paul stockyards, the second largest livestock market in the country, all of it lying in the flood danger area. The fact that so many distinguished Members of Congress are represented here, or have filed statements in support of this project. indicates that the stockyards are a vital factor far beyond the boundaries of the Second Congressional District. Last year live stock was marketed in South St. Paul from 15 States and shipments of livestock were made out to the stockyards to 22 States.

These days, when we hear a great deal of discussion regarding the plight of agriculture, it is important to note that the stockyards last year made payments to farmers in excess of $550 million. With more than one-half billion dollars going to farmers in a 15-State area, it is understandable why the St. Paul-South St. Paul flood control project is regarded as vital to the agricultural economy of a wide area of the upper Midwest.

Devastation caused by previous floods, and the threat of future floods, has been graphically described by other witnesses. I need only say that here we have one of the few remaining competitive markets in the United States-a market which we believe deserves immediate protection. In all the discussion on farm legislation we hear a great deal about research and marketing. South St. Paul affords a vital marketing facility for livestock, and I am genuinely concerned about the need for making certain that we never lose this market. We have seen what has already happened to the competitive markets in Kansas City and in Chicago, and all of us who are familiar with agriculture know that without our major competitive livestock centers, the whole process of livestock marketing, suffers a critical blow.

I could go on to point out that South St. Paul is virtually a one-industry town with 10,000 people employed in the stockyards and packing plants and that with the loss of this industry, South St. Paul would be a ghost town. The people of South St. Paul recognize how critical their problem is and they have made almost superhuman efforts to save their industry from flood in past years. In the 1951 flood the affected industries spent close to $1 million in emergency flood control. But, beyond the local impact, the basic case we make before this subcommittee is that South St. Paul flood control and the continued operation of the competitive livestock market is of vital concern to every Member of Congress who has livestock producers among his constituents.

Thus the issue rests not on the cost-benefit ratio, but on an evaluation of the intangible effects of this project on the health of our agricultural economy.

Throughout my efforts on this case, I have enjoyed a very fine working rela tionship with representatives of the communities concerned, with interested Members of Congress. I wish to compliment and thank the many who have contributed to the body of evidence being submitted here today. I have concen trated on the South St. Paul aspects of the project, and I am pleased to call to your attention the testimony being presented by my colleague, Congressman Joseph Karth, who represents St. Paul and is concentrating on that city's portion of this project. We have had a most cooperative relationship in connection with this project.

Mr. NELSEN. I would like to call attention to and emphasize the point made by Congressman Quie relative to our agricultural Midwest. I think all of us are interested in farm legislation. We hear a good deal of talk about marketing and research. In this South St. Paul area we have a marketing area, one of the largest in the United States, the second largest in the United States, and in the world. A 15-State area markets livestock at South St. Paul, and the farmers have received payments in the amount of a half billion dollars from the sale of their products to this market.

The flood control situation that existed in 1951 and 1952 was devastating, and only by a tremendous investment and effort were they able save the whole facility. Actually, in this flood control project, in my judgment, the intangibles are of greater value than the tangible enefits. I think it is fully justified.

I think the committee recognizes I am a rather conservative person, at in my judgment here is something we cannot fail to recognize. We have with us from South St. Paul, Senator Thuet, Clyde Brown Sf the city council, and Larry Hunt. They will later be recognized. am going to ask Mr. O'Hara to introduce residents of his former strict. He knows them well and has worked with them. I yield to ou, Joe, and you carry on from here. Thank you very much. Mr. CANNON. Thank you, Congressman Nelsen. Mr. O'Hara. Mr. O'HARA. During all the flood problems in South St. Paul when was involved in the authorship of the bill, State Senator Paul Thuet s perhaps the closest one with whom I worked in South St. Paul. He is extremely familiar with this whole problem. Paul, at this time is a pleasure to call on you for your testimony.

Mr. CANNON. Senator Thuet.

STATEMENT OF STATE SENATOR PAUL A. THUET, JR., MINNESOTA Mr. THUET. Mr. Chairman and Congressman O'Hara, we would e to submit at this time to the committee our statement, together ith the exhibits that we have.

Mr. CANNON. Your statement will be made a part of the record at is point.

(The statement referred to follows:)

ATEMENT OF SOUTH ST. PAUL CHAMBER OF COMMERCE ON MISSISSIPPI RIVER FLOOD CONTROL PROJECT AT ST. PAUL AND SOUTH ST. PAUL, MINN.

SUMMARY

LATIVE AND ADMINISTRATIVE ACTIONS, CITY OF SOUTH ST. PAUL, ST. PAULSOUTH ST. PAUL FLOOD CONTROL PROJECT

April 16, 1951: Flood with peak stage of 18.79 feet. od stage for 15 days.

April 16, 1952: Flood with peak stage of 22.02 feet. od stage for 23 days.

Mississippi River above

Mississippi River above

May 5, 1952: South St. Paul City Council resolution requesting that Congress the immediate steps to provide flood control and protective measures to prevent currence of damage and loss of 1951 and 1952; and further, that a copy of the solution be forwarded to the Minnesota delegation.

August 11, 1952: The Chief of Engineers, Corps of Engineers, authorized instigation of the flood and related problems on the Mississippi River at and in vicinity of St. Paul and South St. Paul.

October 9, 1952: Testimony presented at public hearing held by Corps of Engieers at South St. Paul.

February 6, 1956: South St. Paul City Council resolution. Approval of the lood control project proposed by the Corps of Engineers and declaration of in

tention on the part of the city of South St. Paul to cooperate, including contribution of necessary funds.

May 23, 1956: The district engineer, St. Paul District, Corps of Engineers, submitted his report in which he concluded that the "proposed improvements are economically justified" and recommended that the United States undertake the construction, subject to the usual conditions for local cooperation. 223, 85th Cong., 1st sess., p. 6.)

(H. Doc.

July 18, 1956: Brig. Gen. P. D. Berrigan, division engineer (Chicago), Corps of Engineers, concurred in the recommendations of the district engineer and forwarded the report to the Chief of Engineers, Department of the Army, Washington, D.C. (H. Doc. 223, 85th Cong., 1st session., p. 31.)

January 28, 1957: The Board of Engineers for Rivers and Harbors, Corps of Engineers, U.S. Army, submitted an interim report to the Chief of Engineers and in paragraph 7 of its report, the Board stated:

"7. The Board of Engineers for Rivers and Harbors concurs with the views and recommendations of the reporting officers. The Board believes the proposed plan will provide needed protection for important commercial and industrial areas at St. Paul and South St. Paul and will provide benefits commensurate with the costs." (H. Doc. 223, 85th Cong., 1st sess., p. 2.)

May 16, 1957: Maj. Gen. E. C. Itschner, Chief of Engineers, Department of the Army, submitted to the Secretary of the Army for transmission to Congress the interim report of the Board of Engineers for Rivers and Harbors considering the flood program at St. Paul and South St. Paul. In his letter General Itschner states:

"3. After due consideration of these reports, I concur in the views and recommendations of the Board." (H. Doc. 223, 85th Cong., 1st sess., p. 1.)

July 17, 1957: Hon. Wilber M. Brucker, Secretary of the Army, transmitted to the Speaker of the House of Representatives the "favorable report dated May 16. 1957, from the Chief of Engineers, Department of the Army, together with accompanying papers and illustrations, on an interim report on the Mississippi River at St. Paul and South St. Paul, Minn., requested by resolutions of the Committee on Flood Control, House of Representatives, adopted September 18, 1944." (H. Doc. 223, 85th Cong., 1st sess., p. v.)

August 8, 1957: House Document 223, 85th Congress, 1st session, referred to the Committee on Public Works.

July 3, 1958: Section 203 of the Flood Control Act of 1958 as enacted by the 85th Congress, Public Law 85-500, 72 Statutes at Large 305, 310, provided, among others, that "The projects for flood protection on the Mississippi River at St. Paul and South St. Paul, Minn., are hereby authorized substantially in accordance with the recommendations of the Chief of Engineers in House Document 223, 85th Congress, at an estimated cost of $5,705,500."

September 2, 1958: Appropriation by Congress of the sum of $200,000 for planning studies for flood control of the Mississippi River at St. Paul and South St. Paul, Minn. (Public Law 85-863.)

September 10, 1959: Further appropriation by Congress of the sum of $159,000 for planning studies and preparation of bids for flood control of the Mississippi River at St. Paul and South St. Paul, Minn. (Public Law 86-254.)

December 30, 1959: South St. Paul City Council resolution. Reaffirming the city's position of cooperation in the flood control project and requesting that Congress appropriate necessary funds for the project.

February 9, 1960: Resolution adopted by the Mississippi Valley Association urging Congress to appropriate the sum of $500,000 to start construction in fiscal 1961.

March 21, 1960: Resolution of the City Council of the City of South St. Paul urging inclusion of the St. Paul-South St. Paul flood control project in 1960 budget.

Mr. Chairman and members of the committee, we wish to thank you very much for the opportunity to appear before this committee, having in mind the tre mendous amount of work to be accomplished by the committee in an extremely short time. I am appearing on behalf of the city of South St. Paul, a community within the State of Minnesota. Other representatives of this community are also present today and join in this statement.

As you know, we are concerned with the flood control project designated as the St. Paul-South St. Paul flood control project. The honorable mayor of the city of St. Paul, Minn., will present the problems insofar as the city of St. Paul is concerned and it is my intention to confine myself in main to problems relating to

the city of South St. Paul. Since this is a joint project, however, I wish it dearly understood that we of the city of South St. Paul heartily endorse the St. Paul portion of the project and hope that your committee will see fit to recommend the inclusion of the joint project in the appropriations bill now pending. We are requesting that your committee recommend an initial appropriation of 500,000 for the commencement of this project which has been heretofore approved by the Congress under the Flood Control Act of 1958. Funds for the planning studies were approved and appropriated in 1958 and 1959 and the project is ready for construction.

The city of South St. Paul is a community of approximately 20,000 people situated on the west bank of the Mississippi River, directly south of the city St. Paul. The industrial area of the community is shown on the large photograph before you. In the year 1951, the river crested at 18.8 feet. In the gring of 1952, the flood crested at 22.2 feet. The area, including the St. Paul Calon Stock Yards Co., Armour & Co., and a number of other small plants were fooded and rendered inoperative for a period of 3 weeks. I also wish to point ut the other large photograph before you which shows this same industrial area der flood conditions. Swift & Co. constructed a temporary dike and saved the Kant from inundation; however, it was unable to carry on normal livestock Jeckinghouse operations. During these years, the city of South St. Paul and private industry combined in an attempt to protect this vast industrial area and peat approximately $1 million in such protection. The damage caused by the 151-52 floods in this area approximated $8 million.

It is appreciated that the Congress of the United States cannot consider the lfare of one community as distinguished from the overall welfare of all *mmunities of the United States in granting funds for flood protection or any her purpose. However, in this situation, apart from the irreparable damage to the community dependent upon the tax receipts from this vast industrial Ara, is the fact that the farm economy of the State of Minnesota and surrounding areas is closely related to the successful operation of the livestock market bated in the city of South St. Paul. The South St. Paul livestock market is the second largest market in the United States. A total of 4,972,426 head of Avestock was received for sale in the year 1959.

- According to the records, the total salable receipts on the South St. Paul Irestock market in 1959 were in excess of $352 million. This does not include estock purchased directly by the packing houses or livestock purchased on bific orders by marketing agencies on this market. It is estimated this would mount to an additional $150 to $200 million bringing the total to approximately 50 million. Livestock marketed in South St. Paul from 15 States and shipbents of livestock were made out of South St. Paul stockyards to 22 States. This market is served by eight railroads. In excess of 600 motortrucks bring ipments of livestock to the market each day. The surrounding farm area is pendent upon this market for the sale of livestock which, in the State of fitnesota, is the farmers' largest dollar product. Shipments to this market reased 12 percent over the year 1958. It can be readily recognized that the economy of the State of Minnesota is built around this tremendous termial market, so necessary for the proper marketing of the farmers' livestock. We have taken the liberty of attaching hereto, as exhibit No. 1, the 72d annual estock report of the St. Paul Union Stockyards Co. which will verify the tatements made herein.

We are attaching as exhibit No. 2 herewith a book of photographs taken ring the flood years of 1951-52 indicating clearly that the operation of this arket is impossible under flood conditions. We have taken, further, the liberty extending the figures based on the 1959 receipts to show the economic loss to e State of Minnesota and the surrounding areas. In the event this market ld be rendered inoperative because of flood for a period of 3 weeks, there ald be a drop in dollar payments from this market of approximately $30 on. The farmer would necessarily have to withhold his livestock from the arket, or market the livestock in other areas, increasing the cost of marketing d possibly a loss in price. There can be no doubt that this would mean the overall picture a considerable loss to the farmers in the area. A loss wages to persons directly connected with the livestock market would be proximately $800,000 a week, or a total for a period of 3 weeks of $2,400,000. is obvious that the loss of this income, particularly to the farmers, would ve a great impact on the economy of the Midwest.