The State of California has taken definite steps toward the consummation of this great public project. The State legislature of 1933 passed the Central Valley project act creating the Water Project Authority of the State of California, composed of five State officials, to construct and operate the project and to issue and sell revenue bonds to defray the cost. The bonds would be secured by revenues from the sale of water and power. The act was submitted to a referendum vote of the people at a general State election and was ratified by a substantial majority vote.

An application has been filed by the Water Project Authority of the State of California with the Federal Emergency Administration of Public Works for the financing of the Central Valley project under the provisions of the National Industrial Recovery Act of 1933. The application is now under examination by the Public Works Administration.

The construction of the project will directly and indirectly employ 25,000 men for the next 3 years and put into circulation millions of dollars, thereby restoring purchasing power to thousands now dependent upon charity.

In terms of labor and material to build the project, it will require 186,224,000 man-hours of labor, 6,528,000 cubic yards of concrete, 20,809,000 pounds of reinforcing steel, 114,543,000 pounds of structural steel, 6,496,000 barrels of cement 5,836,000 cubic yards of rock, 3,302,000 cubic yards of sand, and 38,311,000 cubic yards of excavation.

I am convinced that this project is as carefully planned, as broadly conceived, and as worthy of Federal finance as any project of its kind in the entire United States. Its consummation will prevent wholesale abandonment of hundreds of thousands of acres of fertile irrigated lands in the expansive Central Valley of California, which will jeopardize property values of $100,000,000 and directly affecting the livelihood of 50,000 American citizens. The tragedy which would follow forced abandonment of these lands-and abandonment will inevitably follow if an adequate water supply is not secured-would be as great as the tragedy which comes in the wake of flood or fire. Thousands of selfsupporting citizens will be thrown into the ranks of the unemployed. Hundreds of millions of dollars will be lost to the tax rolls, increasing the tax burden to be carried by others.

Mr. Chairman, as so ably pointed out by the engineer for the State of California, Mr. Edward Hyatt, the Central Valley project is an emergency project for the protection of life and property. It is a comprehensive project for flood control, navigation, irrigation, power, mining, and other uses, so planned that first units will coordinate without waste with plans for final completion. It is ready to start; plans are complete and 16,000 men will be employed during the first year of construction. It will save one-half million irrigated acres from returning to desert, and prevent the extinction of a high type of American civilization in this vast area; restore another half million acres to a selfsustaining basis, and prevent an ultimate capital loss of $100,000,000 and a present annual loss of $20,000,000 to agriculture alone. It will save 50,000 American citizens from abandoning their homes and loss of livelihood, and save the National and State relief rolls by that number of people. It will provide employment for over 25,000 men for 3 years, one-third of which will be in the Middle West and East, and reduce relief rolls by possibly 100,000 people. Much of this employment will be near Los Angeles, one of the most distressing relief centers in the United States. It will provide much-needed flood control, navigation, and cheap electric power. It will prevent a loss to the State and Nation in taxes, railroad earnings, and business amounting to millions of dollars annually. It will not interfere with private enterprise in any way, since this project can be built only by the United States, or by the State. It is not a new land project, but a relief enterprise for large areas now settled and developed in the Central Valley. It is endorsed by many Federal agencies. It is financially sound under the P. W. A. plan of financing and will pay back every cent at 4-percent interest due the United States, guaran-teed by contracts supported by the taxing power.

The CHAIRMAN. I want to say in conclusion that the representatives from the State of California and the witnesses have made a good record, one that gives us full and understandable information

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concerning this proposal; I want to thank you all, especially Mr. Englebright.

Mr. ENGLEBRIGHT. In behalf of the representatives from the State of California and the State, and for myself, I want to thank you, Mr. Chairman, and the committee for the gracious reception and courtesy that have been accorded us.

The CHAIRMAN. If there is nothing further this morning, let us adjourn, to meet at the call of the chairman.

(Thereupon at 12:15 p. m., Saturday, Feb. 9, 1935, the committee adjourned, to meet at the call of the chairman.)

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