The predicted demand The future electric power requirements as estimated by the Federal Power Commission, might well raise the question: what is going to become of all those kilowatt-hours? It is therefore appropriate to consider the requirements of the large user categories in this connection. Residential and farm requirements It is estimated that about 50 percent of the dwellings in the area have electrical service. The rise in the per capita income of the area, in addition to the fact that electric rates are low, create an increasing demand for energy. The many new users of electricity as load builders must be taken into account such as air conditioning, freezers, heating, improved farm appliances, etc. In short, it is estimated that the average customer for electric energy will use (by 1970) 2,760 kilowatt-hours annually, which is more than double the amount he presently uses in the area. This estimate is very conservative. Some authorities believe that the modern home wil afford a market of 6,000 kilowatt-hours annually and that within the reasonable future, the average farm load will approximate 8,000 kilowatt-hours annually. Commercial requirements Commercial power requirements are expected to be more than three times greater in 1970 than they were in 1944. The large increase in the past, in this type of consumption, has followed consistently the increase in dollar volume of retail sales. Improved lighting techniques, installation of store air conditioning units, promotional lighting, modernized street lighting systems, constitute the principal future requirements. It should be kept in mind that several large metropolitan areas are in this section as well as many sizable communities and towns. Industrial requirements The Federal Power Commission has estimated that the industrial power requirements of the area by 1970 will be twice as great as the 1944 load. This is a progressively rising figure, and the estimated loads were arrived at after an objective consideration of the economic factors and trends of the area. Coupled with this is the tendency for private generators to increasingly use central stations in view of rising fuel costs. A few other considerations The manufacture of aluminum from its oxide calls for large blocks of electric power. It is known that this industry is seriously considering an area location upon the presence of available power. The manufacture of worsteds and woolens in the area, already a growing industry, will be accelerated by the providing of additional supplies of energy. Bonding of plywoods by radio frequency heating, electric arc furnaces, welding, brazing, infra-red heating, resistance furnaces are integral to the growing industrial structure of the South. The presence of sufficient power will be a tremendous step forward in the achieving of a finished goods economy in the area. The Hartwell project will supply an installed capacity of 177,500 kilowatts. Evaluating power benefits In determining the value of the hydroelectric energy produced at the Hartwell project, it is assumed that the value of this energy will be equal to that of comparable energy from a steam electric plant. The annual value of the power therefore is $4,875,000 based on $18.75 per kilowatt installed capacity, plus 3.4 mills per kilowatt-hour output, plus the value of the increase in prime energy at Clark Hill resulting from increased stream flows from the Hartwell project. No value has been assigned to the secondary power because as to the doubt of its marketability. Capitalizing the annual benefits from power, we find that it is worth $100,000,000. Cost of Hartwell project In House Document No. 657 the cost of the Hartwell project was estimated at $33,687.000 but this was based on 1938 construction cost index. Today, the estimate, due to increased construction costs, is $68,500,000. The annual charges to cover interest and amortization (based on a life of 42 years), maintenance and operation are now estimated at $3,191,000. The annual benefits from flood control, navigation, recreation, and power are estimated at $4,065,000. This results in an annual profit from the project of $1,874,000 or a net return of 2.75 percent on the total estimated cost of the project. The Hartwell project not only has great social and economic value but it will pay for itself, with a benefit-to-cost ratio of 1.6 to 1. ADDING IT ALL UP Flood control The frequency with which the rich botton lands are flooded will be reduced and thus permit their cultivation. Twenty-five million dollars of the initial cost of the Hartwell project should be allocated to flood control. Navigation The navigable depth of the Savannah River will be increased and the cost of annual maintenance of the navigation project will be decreased. The value in providing the additional depth permits the allocation of $4,000,000 of the initial cost of the Hartwell project to navigation. Recreation The benefits in health and happiness to a potential population of 3,000,000 permits the allocation of $2,000,000 of the initial cost of the Hartwell project to recreation. Power The project in benefiting flood control, navigation, and recreation will produce hydroelectric power. The value of this power will be sufficient to pay for the cost of the entire project, and has a capitalized value of $100,000,000. Mr. BROWN. Mr. Chairman, Congressman Preston, of Georgia, has been here all day but I do not see him now. He would like permission to file a statement later on in favor of the project. Mr. DAVIS. It may be filed. Mr. BROWN. Mr. Chairman, I have a statement from Hon. Lee E. Carter, executive secretary, Hart County Chamber of Commerce. I would like to file this statement on behalf of Mr. Carter at this time. The CHAIRMAN. Is Mr. Carter in the room? Mr. CARTER. Yes, sir. The CHAIRMAN. Have you any other occupation besides being secretary of the chamber of commerce? Mr. CARTER. Yes, sir; income-tax consultant. The CHAIRMAN. Get out of here as soon as you can. [Laughter.] You may make any additional statement you like, sir. Mr. CARTER. Thank you, Mr. Chairman. However, I think the statement covers our endorsement of this project. (The statement referred to is as follows:) THE PROPOSED HARTWELL DAM To the Members of the Public Works Committee of the United States House of Representatives: Gentlemen, in setting forth reasons for the early construction of Hartwell Dam on the Savannah River, the writer is very much concerned about the need for the recreational benefits so vitally needed for the health and happiness of a potential population of more than 3,000,000. We have been a citizen of this area all our life, and over the years have seen the need for low-cost recreational facilities for the working class of people which dominate our area of the country, since we are in the center of the textile world. The Hartwell Dam, like others the Corps of Engineers plan for the Savannah River, will usher in a new and dynamic era for one of the most beautiful valleys in all the world. The site chosen for this great structure is a dream site for a dam. High hills on both sides of the river will flank the concrete-gravity type dam which will rise about 182 feet above the bed of the river. The "pursuit of happiness" cannot be neglected in the over-all summation of our project. While the project will be attractive to the people of South Carolina and Georgia (5,000,000 population) we are considering its recreational attractions within a hundred miles radius of the project. In this area, to which industries are rapidly coming because climatic conditions and labor conditions are most favorable, there is an immediate need for low cost recreational facilities. We have dwelt on only one phase of the great benefits which would accrue as a result of Hartwell Dam. The movement to make assets instead of liabilities out of the natural resources of our country, is the reason for Hartwell Dam. Respectfully, MAY 16, 19449. LEE E. CARTER, Hart County Chamber of Commerce, Hartwell, Ga. Mr. BROWN. Mr. Chairman, from Anderson, S. C., we have Hon. Z. W. Meeks, executive secretary, Anderson Chamber of Commerce. Chairman WHITTINGTON. Proceed, Mr. Meeks. STATEMENT OF Z. W. MEEKS, EXECUTIVE SECRETARY, ANDERSON CHAMBER OF COMMERCE Mr. MEEKS. Mr. Chairman and gentlemen of the committee, your attention has already been called to the great need for the building of the Hartwell Dam from the standpoint of flood control, soil conservation, navigation and power, as well as its possibilities in improving the general economic level of the people of South Carolina and Georgia and the Nation as a whole. Briefly, I should like to call to your attention the very great importance of this project as a complement to the Clark Hill project, already under construction, as a national security factor in the defense of this country in the event we have to engage in another war. The President of the United States through the National Security Resources Board has given much thought and concern to the matter of decentralization and dispersion of industry. The National Security Act in 1947 places upon the National Security Resources Board the responsibility for studying "the strategic relocation of industries, services, government, and economic activities, the continuous operation of which is essential to the Nation's security." In the event of another war, there is going to be an increasing need for electrical power, inland water transportation, and all the other facilities and services which the Hartwell Dam would provide. There is likewise going to be an increasing importance attached to the decentralization and dispersion of industries and other services like this plant. After preliminary studies of national security and defense factors, the National Security Resources Board in a recent study made the following recommendation: The whole problem of industrial dispersion boils down to a common-sense application of the old adage about not putting all of one's eggs in one basket. Whatever future technological advances may take place in the art of waging war, there will always remain the fundamental principle that the advantage sought in any strategic objective must be weighed against the cost of attaining it, in terms of energy and materials. It is also true that as the destructive effects of modern weapons increase, so does their cost. Such weapons-whether they be atomic, chemical, bacteriological, or any other diabolical engine of destruction that may be further developed in the foreseeable future-cannot be expended prodigally unless the risk is calculated to bring results. If the industrial facilities of the United States were effectively dispersed, that fact alone would make an incalculable contribution toward the maintenance of peace because of the prohibitive expense of any enemy attempt to destroy this country's ability to defend itself. Dispersion could contribute significantly toward outlawing war. It seems to us that this recommendation constitutes the strongest possible endorsement for early action on the Hartwell Dam project. We sincerely and respectively urge the favorable consideration of this committee at an early date in the matter of completing this project. The CHAIRMAN. What is the population of Anderson, S. C.? The CHAIRMAN. Thank you, sir. You may file any additional material you wish to emphasize your statement. (The following letter was subsequently submitted:) CHAIRMAN, PUBLIC WORKS COMMITTEE, THE CITY OF ANDERSON, S. C., May 19, 1949. United States House of Representatives, Washington, D. C. DEAR SIR: It had been my intention to appear along with the delegation of South Carolinians and Georgians in behalf of the Hartwell Dam project at the hearing of your committee in Washington earlier this week. Unfortunately, I had made previous engagements elsewhere that prevented my appearance. However, speaking on behalf of my city, I wish to state that the project has the wholehearted backing and support of the people of the city of Anderson and this area. We all feel that construction of this dam will be a vital factor in our growth, economic development, and security, and that its authorization would be necessary to complete the great Savannah River Basin project which includes the Clark Hill development. Aside from the fact of the economic and recreational benefits, we who are located too near to the site of the proposed project stand to gain, we base our complete endorsement upon the following grounds: 1. Production of electric power. 2. Flood control. 3. National defense. Perhaps the one most vital to us here so close to the Savannah River is that of flood control-if one factor could be considered more important than the others. But this one, especially, is close to us who have seen the rich, dark soil of our county and surrounding areas year by year wash down the river; and to us here who have seen the muddy floodwaters inundate our farmers' crops, completely wiping out a year's work in the matter of a few short hours. I understand that petitions on all these points have been presented to you, and feel sure that you recognize and consider the importance of these factors involved in the construction of the dam. To this I can add my personal endorsement and that of the people of the city of Anderson. Respectfully submitted. WILLIAM C. JOHNSTON, Mayor. Mr. BROWN. Next is the Honorable Frank Brownlee, president, Anderson Chamber of Commerce; member of South Carolina Resources, Planning, and Development Board of the State. STATEMENT OF R. FRANK BROWNLEE, PRESIDENT, ANDERSON CHAMBER OF COMMERCE Mr. BROWNLEE. Mr. Chairman, as president of the Anderson Chamber of Commerce representing more than 600 members engaged in all types of business activity at Anderson, S. C., I am authorized to go on record as being heartily in favor of the early construction of the Hartwell Dam. In formal action, the board of directors has approved not only endorsement of this project but have instructed me and members of the executive committee of our organization to do everything possible to bring about its early construction. The great majority of all the people in this whole section of South Carolina and Georgia not only favor the plan to build this dam at an early date but are looking forward hopefully to the time when actual work will start. Construction of this dam is the next natural step in the development of the Savannah River Valley following the construction of the Clark Hill Dam which is now under way. To receive the full benefits from the Clark Hill project it is necessary, we are advised, to complete also the Hartwell Dam. While we taken a great deal of pride in the agricultural, commercial, and industrial development which has taken place in this area within the past 15 or 20 years, we will never be able to fully realize our potentialities without completely utilizing the great natural resources which abound in this section. Private interests and capital cannot and will not develop these natural resources. It therefore, falls the responsibility of the Federal Government to aid to the extent of helping us to help ourselves. The figures below show in a much better way than I could ever describe, the need for the further development of this section from an agricultural, commercial and industrial standpoint: per capita income in South Carolina in 1939 was $261 and in 1946 was $729; in Georgia in 1939 it was $290 and in 1946 it was $809; while the national average per capita income in 1939 was $539 and in 1946 was $1,200. These figures, showing the per capita income for South Carolina and Georgia for the years 1939 and 1946, the latest year for which they are available, placed alongside the national average per capita income show graphically the need for lifting the per capita income through development of our available natural resources. These 7year figures, on the other hand, show definitely the remarkable growth |