National Steel's industrial life is vitally dependent upon an adequate water supply from and upon the uninterrupted navigability of the Ohio River and its tributaries, the Monongahela and Cumberland Rivers. This is likewise true of all other steel producing companies operating in the Ohio River Valley. You have before you for your consideration and action requests for appropriations for the authorized facilities (locks, dams, and harbors) in the Ohio River Valley enumerated in schedule A below now in process of construction, modernization, and repair with partial funds previously appropriated. Additional appropriations to maintain construction schedules for fiscal 1961 to carry forward the construction of these facilities are now sought from your committee. Appropriations sufficient to meet construction schedules for fiscal 1961 (as estimated by the Army Engineers) on all projects enumerated in schedule A have been approved and recommended by the Army Corps of Engineers and are provided for in the 1961 budget; except the budgetary allowances for the Markland and Meldahl projects which are insufficient to maintain efficient construction schedules and for which additional funds are asked. Your committee's approval of these appropriations is now required to make funds available. SCHEDULE A The projects in the Ohio River Valley modernization program, now in process of construction, which are of vital concern to National Steel, are specifically the following: A. PROJECTS FOR WORK IN PROCESS 1. New Cumberland project, Ohio River 2 Markland project, Ohio River___ 3. Captain Anthony Meldahl project (formerly known as New Rich- 4 Greenup locks and dam, Ohio River.. Recommended for fiscal 1961 $6, 180, 000 13, 900, 000 18, 000, 000 9, 959, 000 9, 700, 000 9, 000, 000 18, 000, 000 Not to maintain construction schedules of projects in schedule A above during scal 1961 and not to then carry forward construction to completion would not only deprive the national economy and the operations of National Steel of the benefits to be derived from the use of these facilities when completed, but Would also imperil the capital thus far invested in them. To interrupt or delay work short of completion by not now making appropriations sufficient to maintain construction schedules would not only be economic waste but it would be an indictment against Congress' original judgment in authorizing these projects and appropriating funds to initiate construction. Each year, your committee, in full understanding of the necessities, has appropriated sufficient funds for the next fiscal year to carry forward construction on the projects referred to in schedule A, thereby assuring an efficient and continuous construction schedule. We have no doubt your committee will do likewise this year, fiscal 1961. SCHEDULES B AND C The following listed projects for new construction (schedule B) and for planning money for new projects (schedule C) are also of vital concern to National Steel. B. NEW PLANNED CONSTRUCTIONS 1. Belleville project, Ohio River____. Recommended for fiscal 1961 $750,000 Planning money was provided last year. Appropriation of funds to start Construction is now required. Budget for fiscal 1961 contained planning money but no appropriation to start construction. Unless appropriation is made to start Construction a serious delay and reduction in the rate of progress of the modernization program will result in total disregard of the mounting traffic congestion which threatens to cut off further growth within the present decade. 2. Opekiska project, Monongahela River_ Recommended for fiscal 1961 $500,000 The estimated cost of this project is $24,100,000. Funds in the amount of $272,000 have been previously provided for completion of planning. The fiscal 1961 budget makes no provision for funds to start construction. The construetion of this project will complete the present program for the modernization of the upper Monongahela. Vast reserves of metallurgical coal lie in the area along this portion of the river. 3. Maxwell project, Monongahela River_-_ Recommended for fiscal 1961 $1,500,000 Requested to complete planning and to commence construction is $1,500,000. This is an increase of $100,000 over the $1,400,000 requested in the fiscal 1961 budget. The total estimated cost of this project is $32 million, of which $463,000 has been appropriated. This project is the initial step in the modernization of the middle reaches of the Monongahela River. The Army Corps of Engineers has recommended planning money for all of the above facilities in schedule C. On the other hand, the budget contains no approval of any appropriations for planning money for any of the facilities on the Ohio River projects listed in schedule C above. Neither the Public Works Appropriation Acts for fiscal 1959 and 1960 nor the President's budget again for fiscal 1961 made provision for any funds for planning, advanced engineering and design work on the projects noted in schedule C. Yet, it must be borne in mind that there is not only an existing inadequacy of facilities to cope with current and increasing demands but many of the existing facilities are in such a deteriorated and wornout condition as to present the threat of possible stoppage or slowdown in traffic with irreparable loss and dire consequences to the industrial life of the Ohio River Valley and. indeed, the national economy in general. For instance, the Corps of Engineers has pointed out the existing hazardous approach conditions at the Uniontown project (dam No. 48) and has emphasized the need of immediate replacement. It should also be noted that each of these enumerated facilities replaces either two or three existing locks and dams ranging in age from 33 years to 49 years. Furthermore, it must be borne in mind that there is usually a time lapse between the appropriation of planning money and completion of the construetion work of about 8 years. I refer to the statement of Mr. William J. Hull on behalf of the Ohio Valley Improvement Association, Inc. (submitted to your committee on these hearings), for full detailed information in respect of the present program for the modernization of the Ohio River and its tributaries with details respecting each of its component projects. Those set forth in schedules A, B, and C above are of primary concern to National Steel. Mr. Hull's statement gives in respect of each project the estimates of the Army Engineers for their completion as well as estimates for fiscal 1961 to maintain construction schedules and also for planning money. We emphatically endorse the recommendations contained in Mr. Hull's statement. All of the facilities set forth in schedules A, B, and C above are essential to the commercial navigation and the commercial operations of National Steel. All of these facilities are interrelated and interdependent and each is a part of one integrated system of water transportation. A failure or deficiency of any one facility could interfere with the free flow of river traffic over the entire Ohio River Valley system. For that reason, it is submitted that each project cannot be judged singly but must be viewed from the overall perspective of its relationship to the whole integrated system. Nevertheless, I single out the plants of the Weirton Steel division at Weirton and Steubenville as expenditures to illustrate the magnitude of the operations utilizing and dependent upon the use of the Ohio River and its tributaries, the Monongahela and Cumberland Rivers. The Weirton Steel Co. division consumed about 2,651,067 net tons of coking epal in 1959, all of which was transported to its plants by water from mines to the north and to the south of the plant. In addition, the Weirton plant produced 1831,580 net tons of coke products. It also transported to its Weirton plant by water raw materials and operating supplies, such as iron and steel scrap, ingot molds, fuel oil, and acid amounting to 535,092 net tons for 1959. It also moves substantial quantities of its outbound production by water to points on the Ohio and Mississippi Rivers and to the Southwest. The outbound steel production in 1959 amounted to 2,617,408 net tons, of which 291,537 net tons were shipped by water. Also Weirton produced and shipped about 7,938,276 gallons of benzol, toluol, and other by products. Weirton also shipped by water 129.108 tons of tar and 14,591 of ammonium sulphate. Weirton employs on the average about 13,000 persons, and its coal mines about 600 more. And bear in mind that Weirton is only one division of National Steel and only one of several thousand industries, large and small, which are located on the Ohio River system because of its stable water supply and transportation facilities. Furthermore, National Steel is engaged in a large expansion program, started in 1959 and scheduled for completion in 1961. This will substantially increase Its production and, consequently, its demands upon the water and navigation facilities of the Ohio River Valley. These increased demands must be foreseen and provided for. On behalf of the National Steel Corp., its divisions and subsidiaries, we earnestly petition your committee, for the reasons herein set forth, to make or approve appropriations for fiscal 1961 sufficient: (a) To carry forward the construction during fiscal 1961, in accord with construction schedules, of all facilities set forth in schedule A above now under construction; (b) To start construction on projects set forth in Schedule B above; and (c) To plan, engineer, and design all projects set forth in schedule C above. We appreciate this opportunity to present our views. INDIANA RESOLUTION AGAINST FEDERAL AID Mr. CANNON. Thank you. Mr. KIRWAN. Mr. Kellam, I want to give you time to think about this before you appear here later today on the Wabash valley proj ects. It is something that is very interesting to me because I have a voice here. I do not want to do anything that is going to harm Indiana. It is a sister State of mine. I note that the man who put this article together is Ralph Bradford. He is advising everybody in the United States to adopt the Indiana resolution. This just came over my desk on March 24. The State legislature adopted this in 1947. I am going to read this resolution which is now being circulated. I will give you time to think whether the Governor of Indiana wants Federal aid to stop the floods in the Wabash Valley. A man appeared here on Monday and said parts of the Wabash looked like the ocean. (Reading:) HOUSE CONCURRENT RESOLUTION No. 2 Indiana needs no guardian and intends to have none. We Hoosiers, like the people of our sister States, were fooled for quite a spell with the magician's trick that a dollar taxed out of our pockets and sent to Washington, will be bigger when it comes back to us. We have taken a good look at said dollar. We find that it lost weight in its journey to Washington and back. The political brokerage of the bureaucrats has been deducted. We have decided that there is no such thing as "Federal" aid. We know that there is no wealth to tax that is not already within the boundaries of the 48 States. So we propose henceforward to tax ourselves and take care of ourselves. We are fed up with subsidies, doles, and paternalism. We are no one's stepchild. We have grown up. We serve notice that we will resist Washington, D.C., adopting us. Be it resolved by the House of Representatives of the General Assembly of the State of Indiana, the Senate concurring, That we respectfully petition and urge Indiana's Congressmen and Senators to vote to fetch our county courthouse and city halls back from Pennsylvania Avenue. We want government to come home. Resolved, further, That we call upon the legislatures of our sister States and on good citizens everywhere who believe in the basic principles of Lincoln and Jefferson to join with us, and we with them to restore the American Republic and our 48 States to the foundations built by our fathers. I want you to ask the Governor if he is in favor of this resolution today and let us know before I cast my vote for Indiana. Mr. KELLAM. May I make a statement? Mr. KIRWAN. It is on the statute books of Indiana. Mr. KELLAM. Is it permissible for me to make a statement? Mr. KELLAM. I would like to make the statement as an employee of the State of Indiana, that I have no right to speak for the Governor, or for the legislature, but I would like to make a personal observation in view of the work that I do as secretary of the Indiana Flood Control and Water Resources and having been interested in water resources of the country since about 40 years or so. The thing is that in my estimation the water resources now have become the No. 1 problem in America and my people were among those who helped to set up the formula around Philadelphia for the establishment of the Constitution. Mr. KIRWAN. That is not what I want. I thought you would give me the answer yourself. Mr. KELLAM. I am talking my personal views. The Constitution provides for balance of State, Federal, and local interests. We believe that in this water resources field we have representation by the Federal, by the State, and by the local interests and we believe that there is a definite place for each. Mr. KIRWAN. I am talking about this resolution. Do you believe in this resolution or do you not believe in it? Mr. KELLAM. I cannot comment on the resolution. Mr. KIRWAN. I have just read it to you. I will let you read it. Do you or don't you want Federal aid?' Mr. KELLAM. I say Mr. KIRMAN. Please answer the question, do you want Federal aid or don't you want it? Mr. KELLAM. I say there is a place for Federal aid Mr. KIRWAN. Never mind the place. I am trying to tell you what the resolution said. If you want my vote to give Indiana Federal aid, say "Yes" or "No." Mr. KELLAM. Yes. Mr. KIRWAN. You want it? Mr. KELLAM. We want Federal funds. Mr. KIRWAN. This resolution is now being circulated over the United States, calling for its adoption by other States. Mr. EVINS. Will the gentleman yield? Mr. KIRWAN. Yes. Mr. EVINS. As I understood the resolution, it had a two-pronged feature. It said, "We want to be divorced from Pennsylvania Avenue." Mr. KIRWAN. They want no Federal funds in Indiana. You can answer for yourself whether you want it or don't want it. Just say "Yes" or "No." Mr. PILLION. Will the gentleman yield? Mr. KIRWAN. Yes. Mr. PILLION. I have the highest respect for the gentleman from Ohio, for his sense of fairness and justice. He has exhibited those qualities time after time, but I am just wondering if this answer that the gentleman desires from the witness is a fair situation. These gentlemen are here today seeking Federal funds in a field in which the Federal Government has pretty much taken upon itself to supply funds through the work of the U.S. Army Engineers, crossing State boundaries, making it interstate and making it somewhat even international in aspect. I think the resolution adopted by the State of Indiana dealt with a rather different field of Federal aid program where Federal aid is distributed to States based upon considerations much different from the situation right here. These gentlemen were not responsible for that resolution. They did not vote upon it and I am just wondering if they are prepared at this time to answer the gentleman's question. It is rather far afield, rather irrelevant from the present situation. I know the gentleman means to be fair. He is trying to raise the situation here. Mr. KIRWAN. The whole thing is in the resolution. Mr. PILLION. It is not these gentlemen's resolution. They are not responsible for it. Mr. KIRWAN. I am not saying they are responsible. I know you are a very good lawyer and I know in the courtroom what the answer would be from the judge and the jury. I have served on many juries. I know what this resolution says. Indiana does not want Federal aid. They do not want any aid from Pennsylvania Avenue and they spell it out, "Federal aid." All I am asking of this man, is he or is he not for Federal aid? Mr. PILLION. I think the gentleman is aware that most judges Would rule that question as being objectionable and not fair. A witness has a right to express himself beyond the mere words yes or o and I am just wondering, and I realize the gentleman wants to be fair and I know he is fair but I just raise the question here because these men are not part and parcel of that resolution. It is for an altogether different purpose they are here. Mr. KIRWAN. I raise the question. Here is the language. It suggests here, first that you can pass this booklet around to other members of your family and urge them to read it. When everyone has read it, you can bring the subject up for discussion. Second, you can tear out the Indiana resolution, page 15, and send a letter to your local representative, all over America, to condemn us. That is the answer. I have a vote here and I want to know that Indiana wants, whether they want Federal aid or not. That is very simple. |