through and this development takes place that we will be able to have it.

I think that is all, Mr. Chairman.

Mr. ANGELL. Mr. Morse, just a minute; you stated you were a member of the Oregon Legislature. You have been there some 4 years, have you not?

Mr. MORSE. More than that: 8 years, I guess.

Mr. ANGELL. Is it your understanding that practically all of the people of that area are in favor of this 308 report as a general, over-all program?

Mr. MORSE. Yes. I don't know of any opposition at all. In this brief that I am presenting it shows everybody that is in favor of itorganized labor and farmers, and everybody as far as I know.

Mr. ANGELL. Labor, farmers, industry, all groups?

Mr. MORSE. All groups are very much behind it, and they need it because their population is developing, and we need this work done. Mr. ANGELL. You are in an area that depends very considerably, does it not, upon reclamation and irrigation?

Mr. MORSE. Yes, we depend on irrigation absolutely to raise crops. Mr. MCDONOUGH. You say you are short of hydroelectric power up there?

Mr. MORSE. Yes, sir.

Mr. MCDONOUGH. Don't you get any power from the Bonneville Dam project?

Mr. MORSE. We have not until this last year. There is a line that was constructed to hook on to our present facilities. But Bonneville is so short itself, we can't depend on that.

Mr. MCDONOUGH. What are your present facilities?

Mr. MORSE. We have the Pacific Power & Light Co.; on this Deschutes River they have a power plant. And one of the big sawmills in Prineville generate electricity that has hooked on.

Mr. MCDONOUGH. In the plan for development of the power at Bonneville was your area included eventually?

Mr. MORSE. It was included when they first started, that they would give us power. We are some 200 miles away from there. But the way the country has developed, there is not enough power. They can use it all there before it ever gets up to us.

I mentioned in this report that they have made an application to build a private company to build a dam on the Deschutes River, and it was approved by the Oregon Legislature, and everything has gone through, but the fish interests came in and wanted to declare it a salmon stream.

Mr. ANGELL. Is it not true that one of the difficulties encountered with reference to getting power in remote areas of the Bonneville is the lack of backbone transmission facilities?

Mr. MORSE. Yes.

Mr. ANGELL. And it has been quite a problem to get sufficient funds to construct those backbone facilities to carry the power into the areas where it is taken over by private utilities and distributed. Mr. MORSE. Yes, that is very true.

Mr. MCDONOUGH. You have two power dams within a 200-mile radius.

Mr. ANGELL. Only one in production.

The CHAIRMAN. Thank you very much, Mr. Morse. Your prepared statement will be in the record.

(Mr. Morse's prepared statement follows:)

STATEMENT BY WILLIAM B. MORSE, OF PRINEVILLE, OREG., IN BEHALF OF CENTRAL OREGON CHAMBER OF COMMERCE

My name is William B. Morse. I reside in Prineville, Oreg., which is located in the central part of that State, only a few miles from the Deschutes River. I have lived in this area since 1907, during which time I have engaged, among other things, in farming, and operated a feed, seed, and grain business. I am also a member of the House of Representatives in the Oregon State Legislature from Crook and Jefferson Counties.

I appear here today before this subcommittee in behalf of the Central Oregon Chamber of Commerce, which represents the commercial, industrial, and civic interests of Crook, Deschutes, and Jefferson Counties, and affiliated chambers of commerce in Bend, Redmond, Madras, Prineville, Culver, and Sisters. These particular cities comprise all of the larger communities in central Oregon.

The organizations I represent wholeheartedly approve and support the broad program outlined in the Corps of Engineers 308 report for developing the vast Columbia River Basin. In that connection, may I add that as a matter of policy we firmly believe that such a program should be carried out by existing governmental agencies now charged with such responsibility, rather than superimposing upon the region any new government agency, authority, or administration specially created for this purpose. However, we are unalterably opposed to that part of the program submitted by the United States Fish and Wildlife Service, as outlined in appendix P of the report, which proposes to set aside the Deschutes River, together with 16 other tributaries of the Columbia River in Oregon below McNary Dam, as a fish sanctuary and prohibit the development of any of these rivers for any other purpose.

I am sure this committee is well aware of the fact that the Pacific Northwest region is faced with a serious power shortage. Every responsible agency in the field recognizes that, even on the basis of the maximum feasible Federal construction program, together with the presently planned construction of nonFederal utilities, the region will continue to face a power shortage for at least the next 6 years. During this period, power will simply not be available for industrial development, and many important industries will be required to curtail their present use of power.

Nowhere in the Northwest is the power shortage more acute than in the central Oregon area. There are no important power developments at the present time in our area, and we must depend upon power being brought in from other sections of the region. Since the war there has been a marked increase in population and industrial development in central Oregon, with a corresponding increase in the demand for power. During the past two winters it has been necessary to curtail sharply the use of power in that area. Many mills, factories, and industrial plants were obliged to shut down for various periods of time in order to make power available for domestic use. This forced many industries to lay off employees, and resulted in a real hardship upon the people of our area.

Unless additional power is made available in the very near future, we fear that some of our industries may cease operations entirely and move from the region. This would place a great burden upon the communities to take care of those people who would be left without employment. We feel that every effort should be made to encourage development of power resources within the area itself in order to avoid this possibility.

On January 20 of this year, application for a preliminary permit to construct a dam and powerhouse on the Deschutes River near Madras, in Jefferson County, at a location known as the Pelton site, was filed by the Northwest Power Supply Co. with the Hydroelectric Commission of Oregon. This project would have an installed capacity of 75,000 kilowatts of power from two generators of 37,500 kilowatts each, and could be completed in approximately 18 months at a cost of about $12,000,000. Such project would assure the central Oregon region of sufficient power for present and reasonably foreseeable needs, and would be located entirely on public lands owned by the Federal Government and set aside for power development purposes many years ago. Moreover it would double the present assessed valuation of Jefferson County which is now the third poorest county of the State.

Power from the project would be integrated with the Northwest power pool, and would help stabilize the power flow in the south end of the Bonneville Power Administration system. The Pelton site readily lends itself to rapid construction, and could begin producing power much earlier than any Federal development in the region now under construction. This particular power site is generally regarded as the most desirable for immediate construction of any site in this section of the country.

During the 1949 session of the Oregon State Legislature, of which I was a member, a bill known as House bill 131 was introduced on January 25 by fish and game interests for the express purpose of making the Deschutes River a fish sanctuary. The committee of the legislature to which this bill was referred held a public hearing, at which proponents and opponents of the measure were invited to appear. Despite difficult weather conditions, the people of central Oregon chartered a bus and sent about 30 persons to the State Capitol in Salem to appear before the committee in opposition to this bill. Practically all of the agricultural, civic, and commercial interests of the area were represented at the hearing. Statements and resolutions in opposition to this measure were presented by representatives of the following organizations:

Central Oregon Chamber of Commerce. Warm Springs Indian Tribal Council. Prineville Chamber of Commerce.

Bend Chamber of Commerce.
Culver Chamber of Commerce.

Madras Chamber of Commerce.
Portland Chamber of Commerce.
Redmond Chamber of Commerce.
Powell Butte Farmers Club.
Jefferson County Farmers Union,
Oregon Farm Bureau Federation.
Haystack Grange of Culver.
Mudsprings Grange of Madras.
Central Oregon Coop.

Bend Central Labor Council.

Jefferson Water Conservancy District.
Central Oregon Peoples' Utility District.
Central Oregon R. E. A.

City of Prineville Railway.

Portland Labor Management Commit

tee.

Dant and Russel Lumber Co.

Robert W. Sawyer, Bend Bulletin.
Eastern Oregon Land. Co.

Electric Club of Portland.

Culver City Council.

Not even the fish and game interests in the area appeared at the hearing in support of the bill. The whole central Oregon area was practically unanimously against making a fish sanctuary of the Deschutes River.

The committee itself heard both sides of the question and made an exhaustive study of the matter. Eventually a report was prepared and submitted, recommending that the bill do not pass. When the report came up for adoption upon the floor of the house arguments were presented by both sides, and after extensive debate the house voted 41 to 18 against the bill. Later in the same session another bill was introduced in the senate to prohibit construction of any dams on the Deschutes River for a period of 2 years, during wihch time a legislative interim committee was to study the situation. Further hearings were held upon this measure, and this time the senate voted against this proposed bill by a substantial margin.

I think it is important for this committee to realize that the proposal of the United States Fish and Wildlife Service to make a fish sanctuary out of the Deschutes River was rejected only a few months ago after careful consideration by the Oregon State Legislature, which is probably more familiar than anyone else with the problems of the State. It seems unthinkable that any serious attempt should be made to prevent the development of an important power site in an area so desperately in need of additional power. No Federal projects will be in a position to supply the needs of the region before 1954. If the Northwest continues to grow, as it has in the past, we may be faced with a continued power shortage after that time. If we in central Oregon are prohibited from supplying our own power needs, future Federal development of power in the area may come too late.

I greatly appreciate the opportunity afforded me by this committee to present the views of the organization for whom I appear upon this important problem. I respectfully urge this committee not to adopt a policy which would have the effect of stifling development in our area.

The CHAIRMAN. Is Mr. Clifford Erdahl here? If you have any statement in addition to those that have been made about this matter, we would be glad to have it.

STATEMENT OF C. A. ERDAHL, COMMISSIONER, DEPARTMENT OF PUBLIC UTILITIES, TACOMA, WASH.

Mr. ERDAHL. I will be very brief, Mr. Chairman.

The CHAIRMAN. Do you have a statement now that brings out some fact that has not been brought out here?

Mr. ERDAHL. I have three statements I would like to submit.

Mr. MACK. I would like to say that Mr. Erdahl is one of the best informed men on the power situation in the Pacific Northwest. The CHAIRMAN. Is there any other statement you would like to make, Mr. Mack?

Mr. MACK. That is all.

Mr. ERDAHL. First I would like to submit a statement.

The CHAIRMAN. You may pass that statement to the reporter.

Mr. ERDAHL. I pass that on with just this one statement that we have suggested that the Corps of Engineers set up a priority on construction of those projects to take care of the very necessary need for electrical energy in the area. I have a report of my own, and we appreciate your putting that telegram in this morning, Mr. Chairman, on the Albeni Falls. The priority under 308 is very important, and we think that Albeni Falls can do more to bring power into the area quicker than any other porject that the Corps of Engineers has for our particular area.

The CHAIRMAN. All right, sir.

Mr. ERDAHL. For the statement of my own with regard to the 308 report, we are very much like the balance in favor of the 308 review report. We have the same objection, however, as the gentleman from Oregon, and that is we do object to the appendix P of the 308 report because it seems to us that the Federal Government has set up their program on the Columbia River adequately, possibly, taking care of the power and fish problem, but without regard to the local interests. The local interests are pretty much confined for power facilities or new expansion program on the west slope, and the so-called sanctuary or fish refuge in the 308 report pretty well stops us from going ahead with projects that we have made much investigation on, and spent much of our own Tacoma money on-$500,000.

The CHAIRMAN. That is one of the very important details that is going into that matter, and we will keep in mind what you say.

Mr. ERDAHL. We think the Federal Government should encourage us to build for ourselves rather than to discourage us, and I think that does take that position.

I think that covers the 308. And then with regard to the Green River project, the city of Tacoma is very much in favor of the Green River project, but we want to remind this group, as we have the Corps of Engineers, that Tacoma's water supply comes off of that river for 150,000 people, and we do not feel that the report thus far has given enough consideration to the very serious problem that that presents to the people of the city of Tacoma.

We are not concerned that the Federal Government will not take care of it, but we want it to be a matter of record.

If I may, I would like to include this in the record with regard to the Green River project.

Thank you, very much.

Mr. MACK. Mr. Erdahl, are both public and private power companies all agreed that these projects should go forward?

Mr. ERDAHL. That statement of the conference is made up of all of the major public and private agencies in the Pacific Northwest, and we are definitely in favor of the 308 report.

Mr. ANGELL. Mr. Erdahl, what interest do you represent?

Mr. ERDAHL. I am the commissioner of public utilities of the city of Tacoma and chairman of the Pacific Northwest Utilities Conference Committee.

Mr. ANGELL. The city of Tacoma has a very adequate and fine hydroelectric project, has it not?

Mr. ERDAHL. We have the best in the country, Mr. Angell.
Mr. ANGELL. And you have very low rates.

Mr. ERDAHL. Very low rates; yes, sir.

The CHAIRMAN. I would like to add to that if I may, Mr. Angell, that that project at Tacoma was one of the first projects that convinced me that where there was a necessity there was no objection to proper governmental operation.

Thank you, very much. Your statements will be put in the record at this point.

(The statements referred to follow :)

BOARD OF ENGINEERS FOR RIVERS AND HARBORS,

Gravelly Point, Washington 25, D. C.

APRIL 30, 1948.

GENTLEMEN: It was been brought to the attention of the water division, department of public utilities, city of Tacoma, Wash., that the Army engineers now are preparing plans for a flood-control dam to be located approximately 3 miles above the intake of Tacoma's Green River gravity system, the principal source of Tacoma's water supply.

The Tacoma Water Department is vitally interested in maintaining the high standard of the quality of its water supply which now serves some 140,000 people and a large number of important industries requiring a high grade of water supply for their operations. It is, therefore, necessary to plan the con struction and future operations of the proposed flood-control dam on the Green River in such a manner that no impairment or deterioration will result in Tacoma's water supply from this source.

The water department of the city of Tacoma, therefore, requests information on the following questions pertaining to the Eagle Gorge Dam flood-control project:

1. Location of dam site.

2. Elevation of river bed at site.

3. Elevation of overflow crest of dam.

4. Height of dam and general type of design.

5. Outline of storage basin and storage capacity in acre feet.

6. How will the drainage and sanitary problems be handled during construction so as not to impair the present quality of water?

7. How will the drainage and sanitary problems be handled after construction so as not to impair the present quality of the water?

8. What agency will be in charge directing the operations for impounding and releasing stored water and to what extent will the city have control so as to safeguard the quality of its present water supply and future requirements for additional water.

9. What provision has been made or will be made for the prevention of accumulating debris and logs in the storage basin?

10. Have sedimentation studies been made and what provision will be made to prevent the accumulation of silt in the storage basin?

11. What provision will be made for bypassing clear river water around the storage basin when the storage water does not clear up as rapidly as the river water?

12. Can water be released from the storage basin at the dam from various levels?