The report of the Chief of Engineers, Department of the Army, on the Miss sippi River and St. Paul and South St. Paul, Minn., to the 85th Congress, kno as House Document 223, and attached hereto as exhibit No. 3, clearly indica the necessity for this project and is recommended by the Corps of Enginee We are attaching hereto exhibit No. 4 which shows the flood control impro ments as recommended by the Corps of Engineers and which will protect terminal market and the livestock industry within the city of South St. Pa As stated previously, other representatives of the city of South St. Paul present today, and if time permitted, would testify on this project. We attaching hereto the statement of Mr. L. B. Hunt, councilman of the city South St. Paul. Mr. Hunt would testify substantially in accordance with statement submitted, and such statement is attached hereto as exhibit No. 5. In conclusion, we wish to point out that the loss of this market through fl would bring about a chaotic condition in the marketing of livestock in State of Minnesota and surrounding States, and the ramifications of t would reach far beyond the borders of the State of Minnesota. We feel t the local community and the major industries have taxed themselves to limit of their capabilities in protecting the future of this market and are able to bear the additional cost of insuring this portion of the farm economy the future. For these reasons, we respectfully request the serious conside tion of this project by the U.S. Congress during the 1960 session. It is i that a delay in the completion of this project may leave this vast indust marketing area open to further danger of flood in the immediate future w the resultant serious impact upon the economy of the Midwest.

Respectfully submitted.

PAUL A. THUET, Jr., State Senator, State of Minnesota and Chairman of the Flood Contro Committee, South St. Paul Chamber of Commerce.

EXHIBIT No. 5

STATEMENT OF CITY OF SOUTH ST. PAUL, MINN.

Gentlemen, the mayor and the city council of South St. Paul appreciate v much the opportunity to appear before this committee. As a member of city council, I am appearing on their behalf. This concerns the flood cont project designated as the St. Paul-South St. Paul joint project.

We, in the city of South St. Paul, are vitally concerned with this project cause it actually involves the lifeblood of our city. The Army Engineers' port shows conclusively that there is no definite means of predicting when : other serious flood might occur. In fact, three times during the 1950's this 1 happened.

We would like to call your attention to the fact that approximately 36 perc of the tax revenue to the city of South St. Paul is derived from the industr flooded in 1951 and 1952 (see exhibit A). These industries are connected w the sale and processing of livestock products. We would fear that with anotl serious flood some of our industries might choose to relocate, which would be serious blow to the economy of our town. There are approximately 7,000 peoj now employed in these allied industries. A large number of these are our lo citizens.

If this would cause large unemployment, even though temporary, our busine men would also suffer seriously. Also, as Mr. Thuet has pointed out to you in report, the loss to the farm economy in the surrounding areas is so closely relat to our city's economy that they cannot be divided.

We wish to call attention to the fact that our city council as recently as Mar 21, 1960, passed a resolution requesting your authorization of this project (s exhibit B).

For those reasons previously stated, we respectfully request that your comm tee recommend an initial appropriation of $500,000 so that this project can started as soon as possible.

Respectfully submitted.

L. B. HUNT, City Councilman.

EXHIBIT B

RESOLUTION BY CITY COUNCIL OF SOUTH ST. PAUL, MINN.

By Alderman Hunt; seconded by Alderman Cosgrove

Whereas during the years of 1951 and 1952 the Mississippi River reached flood stage and inundated the industrial portion of the city of South St. Paul; and

Whereas such area contains the second largest terminal livestock market in the United States; and

Whereas such market receives livestock from 15 States of the United States and ships livestock to 22 States in the United States, and further, paid to the farmers of the State of Minnesota and surrounding States during the year of 1959 an excess of $550 million; and

Whereas a flood of the Mississippi River such as occurred in the years of 1951 and 1952 will cause irreparable damage, and a cessation of operations in the South St. Paul terminal market; and

Whereas the city of South St. Paul and the industries located in the socalled flood area have spent more than $1 million for flood protection and are financially unable to expend further sums; and

Whereas the Congress of the United States has approved such flood control under the Rivers and Harbors Act of 1958, and implemented the same by appropriating $200,000 in 1958, and $159,000 in 1959, for planning studies and preparation of bids; and

Whereas the Corps of Engineers has indicated a capability of proceeding with the project in the event funds are appropriated by the Congress: Now, therefore, be it

Resolved, That the city of South St. Paul respectfully request that the Congress of the United States review the South St. Paul-St. Paul flood-control project, and consider an initial appropriation of $500,000 enabling the Corps of Engineers to proceed with the project forthwith, and that if possible the Congress include this figure of $500,000 in the appropriation bill now pending before the House of Representatives; be it further

Resolved, That a copy of this resolution be forwarded to each member of the Minnesota congressional delegation.

Adopted by the city council this 21st day of March 1960.

DAVID G. HARDMAN, Mayor.

VALERIA YOUNG, Deputy City Recorder. Mr. THUET. 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 tremendous 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, Min., 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 clearly 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 of 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 spring of 1952, the flood crested at 22.2 feet. The area, including the St. Paul Union Stock Yards Co., Armour & Co., and a number of other small plants were flooded and rendered inoperative for a period of 3 weeks. I also wish to point out the other large photograph before you which shows this same industrial area under flood conditions. Swift & Co. constructed a temporary dike and saved the plant from inundation; however, it was unable to carry on normal livestock_packinghouse operations. During these years, the city of South St. Paul and private industry combined in an attempt to protect this vast industrial area and spent approximately $1 million in such protection. The damage caused by the 1951-52 floods in this area approximated $8 million.

It is appreciated that the Congress of the United States cannot consider the welfare of one community as distinguished from the overall welfare of all communities of the United States in granting funds for flood protection or any other purpose. However, in this situation, apart from the irreparable damage to the community dependent upon the tax receipts from this vast industrial area, 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 located 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 livestock was received for sale in the year 1959. According to the records, the total salable receipts on the South St. Paul livestock market in 1959 were in excess of $352 million. This does not include livestock purchased directly by the packing houses or livestock purchased on specific orders by marketing agencies on this market. It is estimated this would amount to an additional $150 to $200 million bringing the total to approximately $550 million. Livestock marketed in South St. Paul from 15 States and shipments 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 shipments of livestock to the market each day. The surrounding farm area is dependent upon this market for the sale of livestock which, in the State of Minnesota, is the farmers' largest dollar product. Shipments to this market increased 12 percent over the year 1958. It can be readily recognized that the farm economy of the State of Minnesota is built around this tremendous terminal 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 livestock report of the St. Paul Union Stockyards Co. which will verify the statements made herein.

We are attaching as exhibit No. 2 herewith a book of photographs taken during the flood years of 1951-52 indicating clearly that the operation of this market is impossible under flood conditions. We have taken, further, the liberty of extending the figures based on the 1959 receipts to show the economic loss to the State of Minnesota and the surrounding areas. In the event this market would be rendered inoperative because of flood for a period of 3 weeks, there would be a

drop in dollar payments from this market of approximately $30 million. The farmer would necessarily have to withhold his livesock from the market, or market the livestock in other areas, increasng the cost of marketing and possibly a loss in price. There can be 30 doubt that this would mean in the overall picture a considerable loss to the farmers in the area. A loss in wages to persons directly connected with the livestock market would be approximately $800,000 a week, or a total for a period of 3 weeks of $2,400,000. It is obvious that the loss of this income, particularly to the farmers, would have a great impact on the economy of the Midwest.

The report of the Chief of Engineers, Department of the Army, on the Mississippi River and St. Paul and South St. Paul, Minn., to the 85th Congress, known as House Document No. 223, attached hereto as exhibit No. 3, clearly indicates the necessity for this project and is recommended by the Corps of Engineers. We are attaching hereto hibit No. 4 which shows the flood control improvements as recommended by the Corps of Engineers and which will protect the termial market and the livestock industry within the city of South St. Paul.

As stated previously, other representatives of the city of South St. Paul are present today, and if time permitted, would testify on this, project. We are attaching hereto the statement of Mr. L. B. Hunt, Councilman of the city of South St. Paul. Mr. Hunt would testify substantially in accordance with the statement submitted, and such Katement is attached hereto as exhibit No. 5.

In conclusion, we wish to point out that the loss of this market rough flood would bring about a chaotic condition in the marketing. of livestock in the State of Minnesota and surrounding States, and the ramifications of this would reach far beyond the borders of the State of Minnesota. We feel that the local community and the major adustries have taxed themselves to the limit of their capabilities in protecting the future of this market and are unable to bear the additional cost of insuring this portion of the farm economy in the future. For these reasons, we respectfully request the serious consideration of this project by the U.S. Congress during the 1960 ssion. It is felt that a delay in the completion of this project sy leave this vast industrial marketing area open to further danger of flood in the immediate future with the resultant serious impact pon the economy of the Midwest.

Mr. ANDERSEN. Will the gentleman yield?

Mr. THUET. Yes, sir.

Mr. ANDERSEN. Is it not a fact that the Army Engineers did find his project feasible?

Mr. THUET. They found it feasible and in House Document 223 lave strongly recommended it and have held extended hearings it.

Mr. ANDERSEN. Is it not a fact that the two projects known as as St. Paul and South St. Paul taken together have a benefit-to-cost atio of 1.1 to 1?

Mr. THUET. Yes; and in conversation with the Army Engineers hey have said this is a very good cost-benefit ratio except, because of unds, they have limited it to somewhat over 1.2.

Mr. ANDERSEN. Mr. Chairman, the thing I want to point out is his: That were the intangibles mentioned earlier here today taken

into consideration-by that I mean the economic loss to these farmers whom we have heard all these Congressmen speak about today—that benefit-to-cost ratio should really come before us with at least 1.4 to 1 for this particular project. The report states definitely that they did not take into consideration economic loss to this vast area. To me that should have been taken into consideration.

Furthermore, Mr. Chairman and gentlemen, they did not take into consideration the fact that the land protected is going to become enhanced to a valuation of $2,000 an acre rather than the $1,000 an acre as in the Army Engineers' report.

I am not here asking these gentlemen to argue for a project which has a 1.1 benefit-to-cost ratio. I am arguing for something here that is tremendously important to the people of Minnesota and the entire Midwest, and really should come in here with a benefit-to-cost ratio of a minimum of at least 1.3 to 1, in my opinion. I have studied this very carefully, Mr. Chairman. Thank you.

Mr. CANNON. Let me say, Senator, that this brief you have submitted here on this project is one of the best presented to the committee this year. The fact that Congressman Andersen, who is one of the ranking members of the Committee, and Congressman Marshall recommend this insures its earnest consideration. We thank you.

Mr. O'HARA. Mr. Chairman, we have heard more in detail as to South St. Paul project. Now it is my pleasure to call upon Congressman Karth, who represents the St. Paul area, who will in turn introduce Mayor Dillon, of St. Paul.

Mr. JENSEN. I wonder if I might say a word before we leave the South St. Paul project?

Mr. CANNON. Mr. Jensen.

Mr. JENSEN. Congressman Andersen, our colleague on the committee, has on many occasions brought this very important matter to our attention. He has pleaded with us on and off the record for favorable consideration of an amount to be placed in this bill for this project. Also, Mr. Ancher Nelsen has done likewise and Mr. Quie and our friend, Mr. Marshall, who is also a member of the Appropriations Committee, however, not a member of this subcommittee. As you know, he is a member of the Agriculture Subcommittee of Appropriations.

In this project, Mr. Chairman, after it has been explained so thoroughly to us in the past and today by these able gentlemen, I can see that there is a great problem here. I certainly have been sold on the idea of being favorably inclined to do everything I can to help out in this very worrisome problem you have in South St. Paul. I do not know as much about the other part, although the Congressmen have briefed us on that to some extent, too. Thank you, Mr. Chairman. Mr. CANNON. Mr. O'Hara.

Mr. O'HARA. Mr. Karth.

STATEMENT OF REPRESENTATIVE JOSEPH E. KARTH, MINNESOTA

Mr. CANNON. Congressman Karth, we are glad to have you with us this morning and to have you speak at this time.

Mr. KARTH. Good morning, Mr. Chairman and members of the committee. Being fully aware of the extremely heavy schedule this committee has undertaken, in an effort to provide enlightened and