is not limited to definite bounds. Inland commerce may originate in or be destined to any of the States between the Appalachian and Rocky Mountains. Ocean commerce is carried by ships calling at all major United States and world ports. New Orleans with a population of 494,537 in 1940 is the principal port city. Baton Rouge, population about 34,719 in 1940, is an important oil refinery center. Industrial developments include shipbuilding and aircraft manufacturing at New Orleans; aluminum, synthetic rubber, and chemical plants in addition to the oil refineries at Baton Rouge; five major plants handling or processing petroleum products and two sugar refineries along the river between the two cities; and a large sulfur plant, several oil terminals and sea-food processing plants on the river below New Orleans. Agricultural products, principally sugar cane, strawberries, tobacco, garden truck, and citrus fruits, are grown along the river below Baton Rouge. Shrimping and oyster fleets are based on bayous and canals which connect the river with coastal bays and sounds. The Louisiana oil fields have been extended by discoveries in areas adjoining the Mississippi River below New Orleans. The port area is served by nine major railroads and a network of improved Federal and State highways.

Commerce on the lower Mississippi River through the passes averaged 13,170,000 tons during the 10-year period 1936 to 1945. In 1945, seagoing commerce through the passes, both foreign and coastwise, amounted to 13,387,000 tons, of which 4,047,000 tons were imports and coast wise receipts and 9,340,000 tons were exports and coast wise shipments. Sixty-six percent of the in-bound tonnage and 61 percent of the out-bound, were manufactured and miscellaneous commodities. This commerce was loaded or unloaded at points on the river from Head of Passes to Baton Rouge.

Barge commerce over the Gulf Intracoastal Waterway east and west of the Mississippi River during the 7-year period 1939 to 1945, inclusive, averaged 3,682,000 tons on the section from Mobile Bay to New Orleans, and 7,288,000 tons through Harvey Lock to New Orleans. In 1945, 5,172,000 tons moved over the section from Mobile Bay to New Orleans, 88 percent of which was east-bound, and 9,253,000 tons through Harvey lock, 93 percent being east-bound.

Records for 1945 show 3,227 transits of seagoing ships through South Pass and 1,531 through Southwest Pass, and 47 transits of barges through both passes. Of the vessel trips through South Pass, 49 were at drafts of 30 to 33 feet and of those through Southwest Pass 143 were at drafts of 30 to 36 feet. Trips of vessels using the Gulf Intracoastal Waterway during 1945 were 8,325 east-bound and 8,280 west-bound over the section Mobile Bay to New Orleans, 17,755 eastbound and 18,053 west-bound through Harvey Lock.

Extensive terminal and transfer facilities for both deep and shallow-draft traffic are located along the Mississippi River at Baton Rouge and downstream to the Head of Passes with the greatest concentration being at New Orleans. Terminal facilities on the east bank of Mississippi River at New Orleans form an almost continuous quay for 10 miles. Terminals on the west bank opposite the city are located at Westwego, Gretna, and Algiers. A United States naval drydock is at Algiers. Four lateral slips and marginal wharves are located along the Industrial Canal. Most of the wharf area of the port of New Orleans is connected by rail, principally by the New Orleans

Public Belt Railway. Public terminal business is controlled by the Board of Commissioners of the Port of New Orleans through supervision of public wharves owned by the State of Louisiana and covering about 62 percent of the improved water front.

Local interests desire provisions for the expansion of tidewater terminal facilities at New Orleans to serve further increase in waterborne commerce incident to continuing development of the Mississippi Valley and of New Orleans as a premier world port. They estimate that expansion of harbor space and general cargo handling facilities is required to provide an additional annual capacity of at least 3,000,000 tons. Local interests have plans for the extensive improvement of the port and terminal facilities. It is stated that the board of commissioners, port of New Orleans, contemplates expenditures of $30,000,000 for further development of east bank harbor facilities.

The division engineer at Vicksburg after holding hearings in the field, conducting extensive surveys and studies recommended modification of the existing project "Mississippi River, Baton Rouge to the Gulf of Mexico" to provide for the construction of the additional east-bank deep-draft outlet with turning basin and connecting harbor channel; with provision for the future construction of an additional look near Meraux and connecting channels and appurtenances between the turning basin and the Mississippi River when such is found to be economically justifiable.

The report of the division engineer was referred to the Board of Engineers for Rivers and Harbors. At the request of local interests the Board held a hearing in its office to afford them the opportunity to express their views.

The Board of Engineers after careful consideration of the recommendations of the division engineer, of information presented by local interests at the hearing and through correspondence, and of data subsequently developed by additional field investigations, is of the opinion that the most practicable plan for expansion of the harbor facilities of the port is by the creation of an off-river tidewater harbor with a seaway outlet as proposed by the division engineer. Since the existing river terminals will continue to be used along with new tidewater terminals, an adequate connection between the tidewater harbor and the river is essential. The existing industrial canal and lock would provide an adequate river connection for the east-bank harbor location but a new lock would be required for the west-bank location. Hence the tide-water harbor with seaway outlet and river connection could be provided on either side of the river at approximately the same cost. However, the east side location has certain advantages due to its relation to existing land access facilities and to the natural direction of harbor expansion for the benefit of shipping and industry. It provides for development in a location consistent with the over-all planning of the Board of Commissioners of the Port of New Orleans which is the authorized agency of the State of Louisiana responsible for administration and development of the port.

Vessel time is lost at present by vessels awaiting docking facilities and as commerce increases in the future still more vessel time will be lost.

The lack of sufficient terminal facilities has become a dominant factor in limiting the current growth of commerce at New Orleans. Conditioned on the provision of adequate port facilities, it is estimated

that commerce in general cargo alone will reach an annual volume of 7,500,000 tons in about 10 years. The east-bank seaway channel and tidewater harbor improvements will permit the development of terminal facilities in addition to those existing on the river water front, and will provide for relief of congestion at the existing terminals and more efficient handling of cargo with resultant savings in cost of vessel operation because less time will be required in port. Allowing for the most efficient and economical operation of the existing terminals, they would provide for movement of 4,250,000 tons leaving 3,250,000 tons of the estimated 7,500,000 tons of general cargo to be moved over new terminals to be provided in the proposed tidewater harbor. On the basis of current tonnage movements, the 3.250,000 tons would require 1,550 calls of deep-draft vessels using the newer, more efficient terminal facilities. Estimates by vessel operators show that savings in ship turn-around time provided by these facilities would be a minimum of 1.25 days per call.

A representative analysis of ship operating costs of all deep-draft vessels calling at New Orleans during a recent period shows an average of $70 per hour to be generally applicable. On these bases the savings in ship time in transporting cargo to and from the new terminals is estimated at $3,250,000 annually. In addition, relief of congestion at existing general cargo terminals and in the landward access facilities to all the present terminal wharves will save ship time in loading and unloading and provide benefits to industrial and commercial tonnage using those facilities estimated at $950,000 annually. Further benefits creditable to the improvement would result from reduced sailing time of coastwise vessels, reduction in hazards to navigation, savings in terminal handling charges and annual charges on wharves, and enhancement in value of water-front property. These additional benefits are estimated to have an annual value of $1,635,000. The sum of the tangible benefits estimated by the Board is $5,835,000, which compared with annual charges of $4,027,000 shows a benefit-cost ratio of 1.45. Additional benefits to industry and employment would accrue throughout the vast tributary area and the improvements would greatly enhance the capacity of the port for emergency war service.

The Board of Engineer for Rivers and Harbors recommends that the existing project for "Mississippi River, Baton Rouge to the Gulf of Mexico" be modified to provide for construction of: A seaway canal 36 feet deep and 500 feet wide extending 70 miles as a land and water cut on tangents and easy curves from a point south of the Intracoastal Waterway at Micheaud southeasterly to and along the south shore of Lake Borgne and through the marshes to and across Chandeleur Sound to Chandeleur Islands at or north of Errol Island, thence increasing gradually to a width of 600 feet and depth of 38 feet in the Gulf of Mexico, with protective jetties at the entrance, a permanent retention dike through Chandeleur Sound, and a wing dike along the islands as required; a turning basin at the landward end of the seaway canal, 36 feet deep, 1,000 feet wide, and 2,000 feet long; and a connecting channel 36 feet deep and 500 feet wide extending westerly along the Gulf Intracoastal Waterway from the turning basin to the industrial canal, subject to certain conditions of local cooperation.

The Board estimated the cost of the project to the United States at $65,000,000, and the annual cost of maintenance at $1,000,000.

The report of the Board of Engineers was submitted to the Chief of Engineers. He concurred in the views and recommendations of the Board and in his proposed report recommends the modification of the existing project to provide for the construction of the seaway canal, with the additional provision that the United States construct a highway bridge to carry Louisiana State Highway 61 over the channel. The Chief of Engineers estimates the total cost at $67,000,000.

The Chief of Engineers furnished copies of his proposed report to the Governor of Louisiana and to the Bureau of the Budget for comment. The Governor of Louisiana stated that he favors the proposed improvement. The Chief of Engineers has not as yet received the comments of the Bureau of the Budget on his proposed report.

Senator MCCLELLAN. The Senate will meet at 11 o'clock tomorrow, I understand, and we can start early at 9:30, and if we will all be here, we will start on time and get another hour and a half tomorrow, which may enable us, or let us say that we hope it will enable us, to conclude on Monday, and maybe then we can try to get started on marking up this bill. We are very anxious to get this bill out.

Senator STENNIS. I suggest we come back tomorrow. (Discussion off the record.)

Senator MCCLELLAN. The committee will stand in recess until 9:30 tomorrow morning.

(Whereupon, at 12 noon, the committee recessed, to reconvene at 9:30 a. m. Saturday, August 27, 1949.)