C O R P S O F E N GI N E E R S O V E R SI G H T H E A RI N G S — 1 9 7 5

- ’ -' T S

n p n 2

K A N b' "‘ *"

8,

H E A RI N G S

B E F O R E T H E

M MI T T E E O N W A T E R R E S O U R C E S

O F T H E

MI T T E E O N P U B LI C W O R K S

D NI T E D S T A T E S S E N A T E

NI N E T Y- F O U R T H C O N G R E S S

FI R S T S E S SI O N

M A Y 9, 1 97 5 — W A S HI N G T O N, D. C.

M A Y 1 6, 1 97 5 — VI C K S B U R G, MI S S.

J U N E 1 9, 2 0, A N D O C T O B E R 8, 1 97 5 — W A S HI N G T O N, D. C.

S E RI A L N O. 9 4- H1 5

Pri nte d f or t he use of t he C o m mittee o n P u blic W or ks

C O R P S O F E N G I N E E R S O V E R SI G H T H E A R I N G S — 1 9 7 5

H E A R I N G S

B E F O R E T H E

S U B C O M M I T T E E O N W A T E R R E S O U R C E S

O P T H E

C O M MI T T E E O N P U B LI C W O R KS 

U NI T E D S T A T E S S E N A T E

NI N E T Y - F O U R T H C O N G R E S S

F I R S T S E S S I O N

M A Y 9, 1 9 7 5 — W A S HI N G T O N, D. C.

M A Y 1 6, 1 9 7 5 — VI C K S B U R G, MI S S.

J U N E 1 9, 2 0, A N D O C T O B E R 8, 1 9 7 5 — W A S HI N G T O N, D. C.

S E RI A L N O. 9 4- H 1 5

Pri nte d f or t he use of t he C o m mittee o n P u bli c W or ks

W - 2 3 9 - 0

U. S. G O V E R N M E N T P RI N TI N G O F FI C E 

W A S HI N G T O N : 1 97 5
C O M MI T T E E O N P U B L I C W O R K S

J E N I N G S R A N D O L P H, W est Vir gi ni a, C h ai r ma n

E D M U N D S. M U S KI E, M ai ne 

J O S E P H M. M O N T O Y A, N e w M e xic o 

M I K E G R A V E L, Al as k a 

L L O Y D M. B E N T S E N, T e x as 

Q U E N TI N N. B U R D I C K, N ort h D a k ot a 

J O H N C. C U L V E R, I o w a 

R O B E R T M O R G A N, N ort h C ar oli n a 

G A R Y H A R T, C ol or a d o

H O W A R D H. B A K E R, J ., T e n n ess e e 

J A M E S L. B U C K L E Y, N e w Y or k 

R O B E R T T. S T A F F O R D, V er m o nt 

J A M E S A. M C C L U R E, I d a h o 

P E T E V. D O M E N I C I, N e w M e xi c o

M. B a r r y Me y e r , C hi ef C o u ns el a n d C hi ef Cl e r k

ai l e y Gu a r d , Mi no rit y St aff Di re ct o r

e o n G. Bi l li n g s a n d Ri c h a r d D. Gr u n d y , S e ni o r P r ofessi o n al St aff Me mb ers

i c h a r d A. He l l m a n , Mi no rity C o u ns el

o h n W. Y a g o , Jr., Assist a nt C hi ef Cle r k; hi li p T. Cu m m i n g s , Assist a nt C hi ef C o u ns el

a r o l d H. Br a y m a n , S e ni o r P r of essi o n al St aff M e m be r ( mi n orit y)

P r of essi o nal a n d r ese ar ch st aff: a r l R. Br ai t h w a i t e , Ja m e s W. C a s e ( Assist a nt C o u ns el), a u l C hi m e s , 

r e n t o n Cr o w , Ka t h e ri n e Y. Cu d li p p , Pa u l F. Eb e l t o f t , Jr., Ge o r g e F. Fe n t o n , Jr., Ra n

d o l p h G. Fl o o d , K a t h a l e e n R. E. Fo r c u m , An n Ga r r a b r a n t , Ri c h a r d T. Gr e e r , Ri c h a r d M. 

a r ri s ( Assist a nt C o u nsel), e s l e y F. Ha y d e n , Ri c h a r d E. He r o d ( Assist a nt C o u nsel, Mi n orit y),

e r o ni c a A. o l l a n d , Ro n a l d L. Ka t z , Jo h n D. K w a pi s z , Mi c h a e l M a r l a n d , La r r y D. Me y e r s , 

u d y F. Pa r e n t e , Jo h n B. Pu ri n t o n , Jr., Ma r g a r e t E. Sh a n n o n , Ch a r l e n e A. St u r bi t t s , 

E. S t e v e n s Sw ai n , Jr., a n d Sa l l y W. Wa l k e r

u b c o m m i t t e e o n Wa t e r Re s o u r c e s

M I K E G R A V E L, Al as ka, C h a i r m a n

L L O Y D B E N T S E N, T e x as 

Q U E N TI N N. B U R D I C K, N ort h D a k o t a 

J O H N C. C U L V E R, I o w a

R O B E R T M O R G A N, N ort h C ar oli n a 

G A R Y H A R T, C ol or a d o

P E T E V. D O M E N I C I, N e w M e xi c o 

J A M E S L. B U C K L E Y, N e w Y or k 

R O B E R T T. S T A F F O R D, V er m o nt 

J A M E S A. M C C L U R E, I d a h o
N T E N T S

O P E N I N G S T A T E M E N T S

Pa ge

D o me nici, H o n. Pete V., U. S. Se n at or fr o m t he State of Ne w Me xic o _ _ _ 5, 7 5 2

Mc Cl ure, H o n. Ja me s A., U. S. Se n at or fr o m t he State of I da h o _ _ _ _ _ _ _ _ 2

Ra n d ol p h, H o n. Je n ni n g s, U. S. Se n at or fr o m t he State of West Vir gi nia.. 1 0 

LI S T O F WI T N E S S E S

a y 9, 1 9 75 ( p. 1)

Ba dre, H o n. C hafic S., a S e nat or fr o m Le b a n o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11

M orris, Maj. Ge n. J o h n W., Dire ct or of Ci vil W or ks, U. S. Ar m y C or ps of 

E n gi neers, acc o m p a nie d b y Ir wi n Reisler, C hief, Office of P olic y; R o n 

Alle n, Assista nt Ge neral C o u nsel f or Le gislati ve Affairs; T o m Bla n ki ns hi p, C hief of C o nstr ucti o n O per ati o n s; D. E. La w h u n, C hief of t he 

Le gislati v e C o or di nati o n Bra n c h; Hele n Cle g g, Office of P olic y; a n d

Bill H e de ma n, Assist a nt Ge neral C o u nsel f or Re g ulat or y F u n cti o ns _ _ _ 6

a y 1 6, 1 9 75, Vi c k s b u r g, Mi s s. ( p. 5 3)

A da ms, Pa ul E., e xec uti v e direct or, Ar ka ns as Water wa y C o m mi ssi o n _ _ _ 8 1

A n ders o n, P oll y C., e xec uti v e direct or, Mississi p pi Wil dlife Fe d erati o n _ _ 9 6

Barsc h d orf, Milt o n P., p ort direct or, Gree n ville, Miss., o n be half of H o n.

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 93

Be hr h orst, Ver n o n, L o uisia na C oastal C o m missi o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 2 5

Bre nt, Jesse, presi d e nt, Bre nt T o wi n g C o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 7

Br oc k, G. P., c hair m a n of t h e b oar d, Illi n ois Ce ntral G ulf Railr o a d _ _ _ _ _ 1 48

B ullar d, H o n. Nat, ma y or, cit y of Vi c ks b ur g _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 1

Cle m mer, Gle n n, bi ol o gist _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 0

C oc hr a n, H o n. T ha d, a re p res e nt ati v e i n C o n gress fr o m t he State of

Mississi p pi _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 3

Fee ne y, J ose p h, ge neral c o u nsel, Wester n Railr o a d Ass oci ati o n _ _ _ _ _ _ _ _ 1 51

Gialla nza, S., se ni or vice presi d e nt, Ne w Orlea ns Stea ms hi p As s ociati o n.. 2 1 4

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 1 7

Glazier, Her m a n, e xec uti ve assista nt t o t he G o ver n or of Missis si p pi _ _ _ _ 6 8

H olle ma n, W. R., presi d e nt, H olle ma n P ul p w o o d C o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 9

K oisc h, Maj. Ge n. Fra ncis P., Di visi o n E n gi neer, L o wer Mississi p pi Valle y

Di visi o n, C or ps of E n gi neers _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 7

Pre p are d state m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 9

K yle, E d war d, c o ns ulta nt f or t he P ort of M or ga n Cit y, La.................. ...... 2 0 6

La ne y, J. C., Br ot her h o o d of L oc o m oti ve E n gi neer s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 85

Lazell, Dr. Ja me s D., Jr., t he Nat ur e C o nser va nc y a n d J oi nt A u d u b o n

Scie ntific Staff _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 2

Ree h, Pierre C or dell, direct o r, Pla n ni n g a n d P ort De vel o p me nt, P ort of

Ne w Orlea ns _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 99

S heffield, Pa ul R., p ort direct or, Me m p his a n d S hel b y C o u nt y P ort

C o m mi ssi o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 0 7

Pre p are d state m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 1 0

S mit h, B. F., e xec uti v e vice presi d e nt, Delta C o u ncil _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 4 6

S utt k u s, R o yal, pr ofess or of bi ol o g y, T ula ne U ni ver sit y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 4

Watt s, Cal vi n T., e xec uti ve direct or, Re d Ri ver Valle y Ass ociati o n _ _ _ _ _ 1 42

( m)
I V

u n e 1 9, 1 9 75 ( p. 7 5 1)

Barl o o n, Mar vi n J., pr ofess or, De part me nt of Ec o n o mics, Case Wester n

Reser v e U ni versit y, Cle vela n d, O hi o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 5 8

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 71

D o w ns, J. A., presi de nt, Nati o nal Ass ociati o n of Dre d gi n g C o ntract ors, 

acc o m pa nie d b y J. W. Bea n, presi d e nt, C. F. Bea n C o., Ne w Orlea ns;

J oe D u da, Pacific Ma na ger, Great La kes Dre d ge & D oc k C o.; Barr y

S ulli va n, Was hi n gt o n re pr ese ntati v e of t he as s ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 5 3

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 6 0

Ka uf ma n n, J o h n H., pr ofess or of z o ol o g y, U ni ver sit y of Fl ori da _ _ _ _ _ _ _ _ 8 9 6

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 9 9

Miles, Rile y S., e xec uti ve direct o r, Fl ori d a Water Users Ass ociati o n, a n d 

c hair m a n, e xec uti ve c o m mitt ee, Nati o nal E n vir o n me ntal De vel o p me nt

Ass oci ati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 3 8

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 4 0

R o be rts, Pa ul, ec o n o mi st _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 0 9

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 1 6

S oi ke, He n r y E., ge neral ma na ger, P ort of Gra ys Har b or, Was h _ _ _ _ _ _ _ _ 8 8 4

Pre p are d state m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 8 8

u n e 2 0, 1 9 75 ( p. 9 4 5)

Ale xa n der, H o n. Bill, a Re p res e nt ati v e i n C o n gress fr o m t he State of

Ar k a ns as _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 61

B o y d, Ala n S., pre si de nt, Illi n ois Ce ntral G ulf Railr o a d _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 6 9

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 71

Clafli n, T h o mas, pr ofess or of bi ol o g y, U ni v ersit y of Wisc o nsi n _ _ _ _ _ _ _ _ _ 9 5 0

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 5 4

K oester, Le o, ma na ger, P u blic C o m m u nicati o ns, Sea b o ar d C oastli ne I nd ustries, L o uis ville, K y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 8 5

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 8 7

L o n g, H o n. Gillis W., a Re p res e nt ati v e i n C o n gress fr o m t he State of

L o ui sia na _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 6 3

Marli n, J o h n, direct o r, C oaliti o n o n A merica n Ri vers, C ha m pai g n, Ill _ _ _ 9 4 5

c t o b e r 8, 1 97 5 ( p. 1 00 3)

A n ders o n, Ge or ge, w ater res o urces a nal yst, Wester n Railr oa d Ass ociati o n, 

a n d D o nal d S. Beatti e, direct or, G o v er n m e ntal Affairs, Rail w a y La b or

E xec uti ves Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1 64

Pre par e d state m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1 69

Beattie, D o nal d S., direct or, G o ver n me ntal Affairs, Rail w a y La b or E xec uti ves Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1 68

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 22 1

Blac k wel der, Bre nt, Was hi n gt o n re pr ese ntati v e, E n vir o n m e nt al P olic y

Ce nte r _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 10

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 14

Esc h b ac h, Alfre d M., assista nt e xec uti ve direct or, P o rt of P ortla n d, P o rtla n d, Ore g _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 04

H ull, Willia m J., Nati o nal Water wa ys C o nfere nce, I nc., a n d Ja m es R.

S mit h, presi d e nt, A merica n Water wa ys O perat ors _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 37

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 04 1

S mit h, Ja me s R., presi de nt, t he A merica n Water wa ys O per at ors, I nc ------- 1 1 55

Pre p are d stat e m e nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1 58

A D DI T I O N A L M A T E RI A L

C or ps of E n gi neers:

C o m merce f or Selecte d I nla n d Water wa y Pr oje cts f or 1 9 7 3 _ _ _ _ _ _ _ _ 2 0

Dre d gi n g c osts, i nf or mati o n relati ve t o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 0 4

Sli des s h o w n d uri n g Ge neral M orris’ testi m o n y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 7

E ner g y I nt e nsit y of Bar ge a n d Rail Frei g ht Ha uli n g, pa p er pre pare d b y 

A nt h o n y V. Se bal d, Ce nt er f or A d va nce d C o m p utati o n, U ni versit y of

Illi n oi s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 22

Letters:

A da ms, Pa ul, e xec uti ve direct o r, Ar ka nsas Water wa ys C o m mis si o n.. 8 6 

D o w ns, J. A., pre si de nt, N ati o n al Ass ociati o n of Dre d gi n g C o ntract ors,

relati ve t o t he c osts of dre d gi n g _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 3 5

Fee ne y, J. D., ge neral c o u nsel, Wester n Railr o a d Ass ociati o n _ _ _ _ _ _ 1 53
Le tters — C o nti n u e d

Har v e y, J o h n E., direct or, C or p orate Traffic, Arc her Da niels Mi dla n d

C o.. _ _ _ _ _ _ _ 9 81

Mc C u b bi n, J o h n D., presi d e nt, L o uisi a na S hi p b uil di n g a n d Re pair

Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 4 9

Nati o nal Water wa ys C o nfere n ce _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 86

Pr y or, H o n. Da vi d, G o ver n or, State of Ar ka nsas _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 6

Mc Cl ure, H o n. Ja mes A., U. S. Se nat or fr o m t he State of I da h o, fl o or

state m e nt a cc o m pa n yi n g t he i ntr o d ucti o n of t he bill S. 8 3 8 _ _ _ _ _ _ _ _ _ 3

State m e nt s:

A n ders o n- T ull y C o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 9 8

Ara nt, H u g h M., presi d e nt, Mississi p pi Far m B ur ea u _ _ _ _ _ _ _ _ _ _ _ _ _ 6 9 0

D u n ne, H o n. Patric k, ma y or, cit y of Gree n ville, Miss _ _ _ _ _ _ _ _ _ _ _ _ _ 7 4

Eastla n d, H o n. Ja m es O., U. S. Se n at or fr o m t he State of Mis sissi p pi-. 6 0

E d war d s, H o n. E d wi n, G o ver n or, State of L o uisia na _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 5 3

E d war d s, Fra n k T., Mississi p pi State le gislati v e direct o r, U nite d 

Tra n s p ortati o n U ni o n a n d Ja me s B. Ra mse y, le gal c o u nsel, U nit e d

Tra ns p o rtati o n U ni o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 2 8

G ulf I ntr ac o astal Ca nal Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 35

Hea d- O n C ollisi on Li ne _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 29

Izaa k Walt o n Lea g u e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 38

Kilia n, C. M., e xec uti ve vice presi d e nt, Warri or- T o m bi g bee De velo p m e nt Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 0 5

Nati o nal C oal Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 48

Pe p per, Jac k W., State water e n gi neer, Mississi p pi B oar d of Water

C o m missi o ners _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 0 3

S o ut h Car oli n a State P ort s A ut h o rit y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 45

S n y der M olasses C o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2 29

Re ntsc h, R., vice pr esi de nt a n d ge neral ma na ger, Pri m ar y Al u mi n u m

Di visi o n, Re vere C o p per a n d Brass C o r p _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 81

Ri vers a n d Har b ors Ass ociati o n of Mi ssissi p pi _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 9 3

Ste n nis, H o n. J o h n C., U. S. S e nat or fr o m t h e St ate of Mis sissi p pi _ _ _ _ 5 4

T hat c her, H. K., e xec uti v e vice presi d e nt, O ua c hita Ri ve r Valle y

Ass ociati o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 00

T h o mas, Da vi d M., presi d e nt, Gree n ville Area C ha m ber of C o m merc e. 6 8 7

Wea ver, A. T., m a na ger of distri b uti o n, First miss, I nc _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 41

Wil ki ns, Gl o ver, a d mi nistrat or, Te n ness ee- T o m bi g bee Water wa y

De vel o p m e nt A ut h o rit y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 7 7

C O R P S O F E N G I N E E R S O V E R SI G H T H E A R I N G S — 1 9 7 5

I D A Y, M A Y 9, 1 9 7 5

U. S. e n a t e

o m m i t t e e o n P u b l i c W o r k s , 

u b c o m m i t t e e o n Wa t e r R e s o u r c e s

W ashi n gto n, D. C.

T he s u bc o m mittee met at 1 0:0 5 a. m., p urs ua nt t o call, i n r o o m 

4 20 0, Dir kse n Se nate Office B uil din g, H o n. Mi ke Gra vel (c hair ma n of 

t he s u bc o m mittee) presi di n g.

Prese nt: Se nat ors Gra vel, Ra n d ol p h (c hair ma n of t h e f ull c o m mittee), a n d Mc Cl ure.

O P E NI N G S T A T E M E N T O F H O N. MI K E G R A V E L, U. S. S E N A T O R F R O M 

T H E S T A T E O F A L A S K A

Se nat or r a v e l T he heari n g will c o me t o or der.

T his m or ni n g we res u me t he i n vesti gati o n be g u n last year i nt o t he 

ci vil w or ks pr o gra m of t he U. S. Ar m y C or ps of E n gi neers. T he 

s u bc o m mittee will direct its o versi g ht acti vities i n t he ne xt m o nt h 

t o war d a n i n- de pt h scr uti n y of t he na vi gati o n pr o gra m as c o n d ucte d 

b y t he c or ps a n d as a ut h orize d b y t he C o n gress.

I n vie w of t he i m p orta nce of t he na vi gati o n pr o gra m t o o ur nati o nal 

tra ns p ortati o n net w or k, it is e ntirel y a p pr o priate t hat t he S u bc o mmittee o n Wat er Res ources u n derta ke t his i n vesti gati o n at t his ti me.

Q uesti o ns ha ve bee n raise d rece ntl y o ver ma n y water wa y p olicies:

Tra diti o nal Fe deral na vi gati o n c ost-s hari n g mec ha nis ms are bei n g 

attac ke d.

Le gislati o n has bee n i ntr o d uce d w hic h w o ul d re m o ve t he na vi gati o n 

pr o gra m fr o m c or ps j uris dicti o n a n d place it, al o n g wit h tra ns p ortati o n acti vities of all ot her Fe deral a ge ncies, u n der t he De part me nt of 

Tra ns p ortati o n.

T he p olic y f or re place me nt of o bs olete l oc ks a n d da ms, i n effect 

si nce 1 90 9, is bei n g q uesti o ne d.

E n vir o n me ntal effects of na vi gati o n i m pr o ve me nts are u n der st u d y.

E x pa nsi o n of c or ps per mit a ut h orities o ver na vi ga ble waters are 

u n der attac k.

T he heari n g t his m or ni n g is t he first e ve nt i n a sc he d ule of acti vities 

w hich will hel p define t he pr o ble ms s o t hat we ca n w or k t o war d 

de visi n g s ol uti o ns.

T o da y t he s u bc o m mittee will recei ve testi m o n y fr o m Maj. Ge n. 

J o h n W. M orris, Direct or of Ci vil W or ks. Ge neral M orris will prese nt 

i nf or mati o n relati n g t o t he hist or y of t he c or ps na vi g ati o n pr o gra m, 

its c urre nt stat us, a n d his vie w of vari o us pr o ble ms w hic h e xist.

O n M a y 1 4 t he s u bc o m mittee will be gi n a 4- da y i n vesti gati o n t o ur 

of water wa ys w hich are maj or ele me nts i n t he i nla n d na vi gati o n netw or k. We will fl y o ver p orti o ns of t he O hio a n d Mississi ppi Ri vers, 

la n di n g at selected sites t o i ns pect vari o us c o m p o ne nts of t he s yste m.
T h e t o u r will i ncl u de a fiel d hea ri n g i n Vic k s b ur g, Miss., o n Ma y 

1 6. At t h at ti me we e x pe ct t o he ar fr o m re p res e nt ati ves of States, 

t he C or ps of E n gi neers, p o rt i nt ere sts, water wa y carriers, e n vir o nme ntalist s, a n d rail r oa ds. T h e s u b c o m mitte e wis hes t o hear t he vie ws 

of all se g me nts ha vi n g a n i nter est i n, or bei n g affecte d b y, t he na vigati o n pr o gra m.

O n J u ne 1 9, 2 0, a n d 2 3 we will h ol d a d diti o nal heari n g s i n W as h ­

i n gt o n t o recei ve testi m o n y fr o m all i nt ere ste d parties.

T h e na vi g ati o n pr o gra m has pla y e d a vit al r ole i n t he de v el o p m e nt 

of t his Nati o n. It is n o w a n e sse ntial pa rt of o ur tra ns p o rtati o n s yste m. 

T h e s u b c o m mitte e i nt e n ds t h at it re m ai n s o.

Ge n eral M orris, we l o o k t o y o u t o la y t he gr o u n d w or k f or t his 

o ve rsi g ht a cti vit y. We are h a p p y t o welc o m e y o u a n d y o ur c oll ea g ues.

Se nat or G r a v e l . Se nat or Mc Cl ure.

O P E NI N G S T A T E M E N T O F H O N. J A M E S A. Mc C L U R E, U. S. S E N A T O R 

F R O M T H E S T A T E O F I D A H O

Se nat or M l u r e . T h a n k y o u, Mr. C h air m a n. I wa nt t o j oi n wit h 

y o u i n welc o mi n g Ge n eral M or ris i n t his o pe ni n g sessi o n of hea ri n g s 

o n t he Fe d eral na vi gati o n pr o gra m. We k n o w y o u r testi m o n y will be 

m ost hel pf ul, Ge n eral, a n d I l o o k f or w ar d t o disc us si n g wit h y o u t he 

vari o us pr o ble m s a n d p ote ntial s t h at r elate t o t he Fe d eral na vi g ati o n 

eff ort.

As b ut o ne e xa m ple, t he citize ns of I da h o a n d t he Pacific N ort h we st 

are e nt h u sia stic a b o ut t he fact t h at Le wist o n will s o o n be o pe ne d t o 

ocea n g oi n g vessels tra v eli n g u p t he C ol u m bia- S na ke W ate r w a y. 

T his de v el o p m e nt pr o vi des e xciti n g ne w o p p o rt u nities f or ec o n o mic 

pr o gress i n t he Pacifi c N ort h we st.

B ut m y gr eater c o ncer n at t hi s m o me nt ce nters o n t he per mit 

pr o gra m s o pe rat e d b y t he c or ps a n d c o v eri n g t he c o nstr u cti o n of 

facilities i n “t he na vi ga ble waters of t he U nite d St at es ” a n d t he disp osal of dre d ge d s p oil or fill material i n “t he wat ers of t he U nite d 

St at es.”

As y o u k n o w, Ge ne ral M orris, I i ntr o d uce d S. 8 3 8 e arlie r t his y ear. 

T hi s le gislati o n w o ul d gr a nt t o t he c or p s t he a ut h orit y t o del e gate its 

per mit a ut h orit y t o a n y St ate t h at de vel o ps a per mit s yst e m t h at is 

d u pli cati ve of t he c or ps pr o g ra m.

T h e bill als o s pecifies t h at t his a ut h orit y ca n be dele gate d o nl y o ver 

t h ose waters w here t her e is n o re g ula r water b or ne i nterstate tra ns ­

p o rtati o n of c o m m erci al g o o ds, s uc h as at L a ke C oe ur d’ Ale ne, I da h o.

Y o ur office has, at m y re q uest, pre par e d se ver al alt er nati v e a ppr oa c hes, w hic h t hi s c o m mittee will st u d y.

I b elie ve it is i nc u m be nt u p o n t he C o n gres s t o res ol v e t his pr o ble m, 

t o relie ve s o m e of t he c urr e nt r e dta p e faci n g pers o ns o w ni n g la ke s h or e 

pr o perties, a n d eli mi nati n g t he dela ys i n h ere nt i n t w o o ve rla p pi n g 

per mit s yst e ms.

T his iss ue, as I see it, is n ot w h et h er per mits s h o ul d be iss ue d, b u t 

w h et h er t he Fe d eral G o v er n me nt m ust be i n v ol ve d i n s uc h a f u n cti o n 

o n s maller la ke s a n d wat er w a ys.

Mr. C h air ma n, I as k y o u r p er mi ssi o n t o place i n t he rec or d a c o p y of 

S. 8 3 8, a c o p y of m y fl o or stat e m e nt at t he ti m e I i ntr o d u ce d t h at bill, 

a n d c o pies of t he t w o bills C or ps of E n gi ne ers c o u nsel dra fte d at m y 

re q uest.

T h a n k y o u.

Se nat or G r a v e l . Wit h o ut o bj ecti o n t he y will be i ncl u de d i n t he 

rec or d.
[ T he ma terial refe rre d t o f oll o ws:]

8. 8 38 9 4t h C o n g. 1st Sess.

A BI L L T o a ut h orize t he Secretar y of t he Ar m y t o dele gate t o t he States certai n f u n cti o ns wit h res p ect t o 

t he l ocati o n a n d pla n s f or str uct ure s, e xca vati o ns, or fills i n or o n certai n na vi ga ble wat ers

B e it e na ct e d b y t he S e nat e a n d H o us e of R ep res ent ativ es of t he U nit e d St at es of

A me ri ca i n C o n gr ess ass e mble d, T h at t h e S e cr et ar y of t h e Ar m y is a ut h oriz e d t o 

d el e g at e t o a n y St at e t h e f u n cti o ns of t h e C hi ef of E n gi n e ers u n d er s e cti o n 1 0 of 

t h e A ct of M ar c h 3, 1 89 9 ( 33 U. S. C. 4 03), r el ati n g t o t h e a p pr o v al of t h e l o c ati o n 

a n d pl a ns f or a n y str u ct ur es o n or i n or a n y e x c a v ati o n or fill i n t h e n a vi g a bl e 

w at ers of t h e U nit e d St at es. S u c h d el e g ati o n m a y r el at e t o w at ers w h er e t h er e is 

n o r e g ul ar w at er b or n e i nt erst at e tr a ns p ort ati o n of c o m m er ci al g o o ds; s u c h 

d el e g ati o n m a y o c c ur o nl y aft er t h e St at e e n a cts a l a w t h at cr e at es a p er mit 

pr o gr a m w hi c h t h e S e cr et ar y of t h e Ar m y fi n ds is ess e nti all y d u pli c ati v e of 

F e d er al pr o c e d ur es, a ut h oriti es, a n d st a n d ar ds, a n d pr ot e cts t h e i nt er ests of t h e 

U nit e d St at es i n s u c h w at ers.

e c . 2. T h e S e cr et ar y of t h e Ar m y s h all, b y r e g ul ati o n, pr es cri be crit eri a f or 

a n y St at e p er mit pr o gr a m t o m e et t h e r e q uir e m e nts of s e cti o n 1 of t his A ct, a n d 

s u c h ot h er r e g ul ati o ns as m a y b e n e c ess ar y t o c arr y o ut t his A ct.

[ Fr o m t he C o n gressi o nal Rec or d, Fe b r uar y 2 5, 1 97 5]

Mr. M l u r e . Mr. Pr esi de nt, I a m t o d a y i ntr o d u ci n g l e gisl ati o n i nt e n d e d t o 

e as e t h e b ur d e n cr e at e d b y w h at I c o nsi d er h as b e e n a n err or i n j u d g m e nt i n t h e 

o p er ati o ns of t h e n a vi g ati o n al p er mit pr o gr a m r u n b y t h e Ar m y C or ps of E n gin e ers.

I i ntr o d u c e d si mil ar l e gisl ati o n l ast y e ar as S. 4 0 31. T h at bill w as t h e s u bj e ct of 

a n e xt e nsi v e h e ari ng b y t h e C o m mitt e e o n P u bli c W or ks. T h e r e c or d of t h at 

h e ari n g d e m o nstr at e d t h e n e e d f or e a rl y a cti o n d uri n g t his s essio n of t h e C o n gr ess.

S p e cifi c all y, t h e bill all o ws t h e S e cr et ar y of t h e Ar m y t o d el e g at e c ert ai n n a vig ati o n al p er mit a ut h oriti es o v er t h e l o c ati o n of str u ct ur es, e x c a v ati o ns, or fills 

i n n a vi g a bl e w at ers w h e n t h e St at es h a v e si mil ar s yst e ms of p er mits. T h e bill 

w o ul d e xt e n d o nl y t o s o- c all e d n a vi g a bl e w at ers t h at ar e n ot r e g ul arl y us e d f or 

i nt erst at e tr a ns p ort ati o n of c o m m er ci al g o o ds.

T o u n d erst a n d t his pr o ble m, w e m ust g o b a c k t o t h e 1 8 9 9 Ri v ers a n d H ar b ors 

A ct. S e cti o n 1 0 of t h at a ct cr e at e d a s yst e m of C or ps of E n gi n e ers p er mit c o v eri n g 

t h e pl a ci n g of a n y str u ct ur e, e x c a v ati o n, or fill i n n a vi g a bl e w at ers. T h e a ct, 

h o w e v er, d o es n ot d efi ne w h at a n a vi g a bl e w at er w a y is.

O v er t h e y e ars, t hr o u g h l e g al a cti o ns, t h e c o urts of t h e U nit e d St at es h a v e 

est a blis h e d t h e d efi niti o n of n a vi g a bl e w at ers. T h e l at est d efi niti o n is s et o ut i n 

s e cti o n 2 09. 26 0 of titl e 3 3 of t h e C o d e of F e d er al R e g ul ati o ns. G e n er all y, t h at 

d efi niti o n is t h at n a vi g a bl e w at ers of t h e U nit e d St at es ar e t h os e w at ers w hi c h ar e 

pr es e ntl y, or h a v e b e e n i n t h e p ast, or m a y b e i n t h e f ut ur e, s us c e pti bl e f or us e 

i n p ur p os es of i nt erst at e or f or ei g n c o m mer c e.

U p u ntil a f e w y e ars a g o, t h e C or ps w as usi n g a l o os e i nt er pr et ati o n of t his 

d efi niti o n w hi c h str ess e d t h e e xisti n g c o m m er cial n a vi g a bilit y of t h e w at er w a y. 

N ot m u c h att e nti o n w as p ai d t o pr e vi o us c o m m er ci al us es of a w at er w a y or t o 

w at ers wit h t h e p ot e nti al of c o m m erc e. T h e w at er w a y als o h a d t o g o fr o m a c o mm er ci al st arti n g p oi nt i n o n e St at e t o a fi n al d esti n ati o n i n a n ot h er St at e, wit h 

n o l a n d li n ks i n b et w e e n. T h er ef or e, if t h e w at er w as pr es e ntl y b ei n g us e d f or 

c o m m er ce a n d if t h e c o m m er ci al tr a ns p ort ati o n w as e ntir el y w at er b or n e, t h e n 

t h e w at er w a y w as c o nsi d er e d n a vi g a bl e. P er mits w er e t h e n r e q uir e d fr o m t h e 

C or ps, u n d er t h e 1 89 9 a ct, t o i ns ur e t h at str u ct ur es b uilt i nt o t h e w at er w o ul d n ot 

i nt erf er e wit h t h e fl o w of c o m m er c e.

I n t h e l at e 1 9 6 0’s, t h e Ni x o n A d mi nistr ati o n r e c o g nize d t h e d a m a gi n g eff e cts 

of p oll uti o n o n t h e w at er w a ys of t h e U nit e d St at es a n d s o u g ht w a ys t o c o ntr ol it. 

O n e t a cti c w as t o e nf or c e a n ot h er pr o visi o n of t h e ol d 1 8 9 9 A ct: S e cti o n 1 3, w hi c h 

d e alt wit h dis c h ar ges i nt o n a vi g a bl e w at ers. T o i ns ure t h at all w at ers w o ul d b e 

i n cl u d e d, a n d t h er e b y pr ot e ct e d fr o m p oll uti o n, t h e d efi niti o n of “ n a vi g a bl e 

w at ers” w as e x p a n d e d. T h e e n d r es ult w as t o br o a d e n t h e C or ps of E n gi n e ers’ 

j uris di cti o n s o t h at p er mits w o ul d b e r e q uir e d f or dis c h ar g es as w ell as str u ct ur es 

o n virt u all y all of t h e N ati o n’ s w at er w a ys.

E v e nt u all y, j uris di cti o n f or F e d er al p oll uti o n p er mits w as tr a nsf err e d t o t h e 

E n vir o n m e nt al Pr ot e cti o n A g e n c y, wit h t h e C or ps c o nti n ui n g t o h ol d its tr a diti o n al j uris di cti o n o v er str u ct ur es.
B ut t he C or ps c o nti n ue d t o use t he br oa der defi niti o n of na vi ga ble waters.

T he C or ps was n o l o n ger c o ncer ne d o nl y wit h waters w hic h were prese ntl y 

bei n g use d f or i nt erstat e c o m mer ce; t he y were n o w c o ncer ne d wit h waters w hic h 

were o nce use d f or a n d/ or c o ul d p ossi bl y be use d i n t he f ut u re f or c o m mercial 

na vi gati o n. A n d t he y were n o l o n ger c o ncer n e d o nl y wit h waters w hic h pr o vi de d 

i nte rst ate tr a n s p ortati o n; t he y were n o w als o c o ncer ne d wit h waters w hic h w o ul d 

or c o ul d ser ve as o ne li n k, i n c o nj u ncti o n wit h la n d tra n s p ortati o n, wit h t he 

i nte rstate m o ve me nt of c o m merce.

T his i nt er pretati o n ha d a pr of o u n d effect o n t he C or ps’ sc o pe of j uris di cti o n.

I n 1 93 2, t h e C or ps ma de a na vi g a bilit y st u d y of t he S p o ka ne, St. J oe, St. Maries, 

a n d C oe ur d’ Ale ne Ri ver s a n d deter mi ne d t he m t o be n o n na vi ga ble. I n 1 9 50, 

t he C or ps e val u ate d t he na vi ga ble stat us of La k e C oe ur d’ Alene, a n d deter mi ne d 

t h at it a n d its tri b uta rie s were n ot c o nsi der e d t o be na vi ga ble waters of t he U nite d 

States.

A n d yet, u n de r t he ne w i nte r pretati o n, t he C or ps o n Ja n uar y 2, 1 9 74, declare d 

t h at La ke C oe ur d’ Ale ne, La ke C hatc olet, R o u n d La ke, Hi d de n La ke, a n d t he 

l o wer reac hes of t he St. J oe Ri ver, I da h o, were na vi ga ble waters a n d s u bject t o 

per mits. I n t he t w o earlier st u dies it was deter mi ne d t h at t hese water s were n ot 

bei n g use d as t he s ole hi g h wa y f or c o m merce; i n 1 97 4 it was deter mi ne d t h at 

t he y f or m a li n k i n a c hai n of tra ns p ort ati o n w hic h carries c o m merce bet wee n 

t he States. A n d yet t her e is n o a p preci a ble differe nce i n t he na vi ga ble stat us si nce 

t he earlier st u di es —a n d t here was n o c ha n ge i n t he la w b y a n y le gislati ve b o d y.

It is o ne t hi n g t o a d mi nister t he la w as it was i nte n d e d. It is q uite a n ot her t o 

s hift bac k a n d f ort h bet wee n i nter pretati o ns of its a d mi nistrati o n. T he sit u ati o n 

is n ot u ni q ue t o N ort h I da h o. I k n o w of at least t w o ot her e xa m ples, K u a pa 

P o n d i n Ha waii a n d La ke Os weg o i n Ore g o n. I n e ac h case, t hese are waters w hic h 

w o ul d meet t he c urr e nt le gal d efi niti o n of “ na vi ga ble w ater, ” a n d yet are n ot b ei n g 

use d f or c o m mercial na vi gati o n. I n fact, t he y ha ve bec o me esse ntiall y rec reati o norie nte d waters.

T his is parti c ularl y tr ue at La ke C oe ur d’ Ale ne. T he s h oreli ne pr o p ert y is 

m ostl y o w ne d b y pri v ate citize ns a n d t he la ke is li ne d wit h l o vel y s u m m er a n d 

per ma ne nt h o mes. Wit h fe w e xce pti o ns, t he use of t he water is n o w d o mi nate d 

b y recreati o nal e n dea v ors — b oati n g, fis hi n g, s wi m mi n g, a n d saili n g. Cr uise s hi ps 

offer sce nic tri ps t he le n gt h of t he 3 0- mile-l o ng la ke a n d u p i nt o t he St. J oe Ri ver. 

A n n ual h y dr o pla ne b oat races are hel d o n La ke C oe ur d’ Ale ne. T he la ke lies o n 

a maj or east- west t h or o u g hfare, hel pi n g t o uris m t o bec o me o ne of t he m ost 

i m p orta nt i n d ustries of t he c o m m u nit y —t o uris m t h at is m ostl y water- orie nte d.

T he C or ps’ decisi o n mea n s t h at t h ose resi de nts will nee d b ot h C or ps a n d State 

per mits f or t he c o nstr u cti o n of a n y a d diti o nal d oc ks or piers f or b oats a n d f or 

a n y e xca vati o n or fills t o p er ha ps a d d a pati o or dec k t o a s u m mer h o me.

It see ms t o me t h at t here are ma n y ot her water wa ys w hic h are tr ul y s u pp orti n g c o m mercial na vi gati o n a n d w hic h are m ore deser vi n g of t he C or p s’ 

ti me a n d atte nti o n. I n sit uati o ns s uc h as t h at at La ke C oe ur d’ Ale ne, it see ms 

m ore a p pr o priate t o let t he Stat e ha n dle t he matte r of per mit s a n d t o let t he 

c or ps de v ote its eff orts t o areas m ore tr ul y na vi ga ble. T h at is t he p ur p ose of 

t he bill.

T here are certai n sti p ulati o ns, h o we ver. T he bill d oes n ot all o w t he Secretar y 

of t he Ar m y t o dele gate t his per mit a ut h orit y t o a n y State, w hic h mi g ht ha ve 

a sit u ati o n c o m p ara bl e t o t h at of La ke C oe ur d’ Ale ne, K ua p a P o n d, or La ke 

Os we g o. T he bill s pecifies t h at t he a ut h o rit y will be dele gate d o nl y t o t h ose 

State s w hic h t he msel ves ha ve a d o pte d a pr o gra m t o re g ulate a n d de vel o p al o n g 

waters t h at are na vi ga ble, b ut n ot c o m merciall y na vi ga ble. T he iss ue here is n ot 

w het her per mits s h o ul d be re q uire d, b ut rat her w het her t he Fe deral G o ver n me nt 

m ust be i n v ol ve d i n s uc h a f u ncti o n. I mai ntai n t h at it s h o ul d n ot.

A BI L L T o e xe m pt w or k a n d acti vities i n or o n t he water s of La ke C oe ur d’ Ale ne, I da h o fr o m certai n 

pr o visi o ns of Fe deral la w

Be it e n acte d by t he Se n ate a n d H o use of Re prese nt atives of t he U nite d St ates of

A meric a i n C o ngress asse m ble d, T h at t he pr o visi o ns a n d re q uir e me nt s of Secti o n 

1 0 of t he Act of Marc h 3, 1 89 9 ( 3 0 Stat. 1 15 1) a n d Secti o n 4 0 4 of t he Fe deral 

Water P oll uti o n C o ntr ol Act ( 6 2 Stat. 1 1 55) as a me n de d ( 3 3 U. S. C. 1 25 1 et se q.)

s hall n ot a p pl y t o a n y w or k or a cti viti es i n or o n t he water s of La ke C oe ur d ’ Ale ne 

i n t he State of I d a h o.
A B I LL T o a ut h ori ze t h e e x e m pti o n of w or k a n d a cti vities i n or o n w ater areas of t he U nite d State s fr o m 

certai n pr o visi o ns of F e deral la w

B e it e n a ct e d b y t he S e nat e a n d H o us e of R ep res e nt ati ves of t h e U nite d St at es of

A me ri ca i n C o n gr ess ass e mble d, T h a t t h e S e cr et ar y of t h e Ar m y a n d t h e C hi ef of 

E n gi n e ers ar e a ut h oriz e d t o w ai v e j oi n tl y a n y or all e x er cis e of j uris di cti o n of t h e 

U nit e d St at es u n d er t h e pr o visi o ns of S e cti o n 1 0 of t h e A ct of M ar c h 3, 1 8 9 9 

( 3 0 St at. 11 51) a n d S e cti o n 4 04 of t h e F e d er al W at er P oll uti o n C o ntr ol A ct ( 62 

St at. 11 5 5) as a m e n d e d ( 33 U. S. C. 1 2 51 et s eq.) o v er w or k a n d a cti viti e s i n or o n 

a n y w at er ar e as of t h e U nit e d St at es, i n cl u di n g s e g m e nts t h er e of or t h eir ass oci at e d ri v er b a n k, s h oreli n e, or w etl a n d ar e as, P r ovi de d t hat, t h e C hi ef of E n gi n e ers 

h as d et er mi n e d t h at s u c h w or k a n d a cti viti es, w hi c h h a v e b e e n or mi g ht b e c o nd u ct e d, will n ot h a v e a s u bst a nti al i m p a ct o n i nt erst at e a n d i nt er n ati o n al n a vig ati o n a n d a n c h or a g e a n d c a n b e a p pr o pri at el y r e g ul at e d i n t h e p u bli c i nt er est, if 

n e c ess ar y, b y t h e aff e ct e d St at e or its p oliti c al s u b di vis o ns wit hi n w h os e b o u n d ­

ari es t h e w or k a n d a cti viti es o c c ur.

e c . 2. T h e w ai v er a ut h oriz e d b y t his A ct s h all b e eff e cti v e o nl y w h e n i n 

writi n g a n d si g n e d b y t h e S e cr et ar y of t h e Ar m y a n d t h e C hi ef of E n gi n e ers a n d 

s h all p ert ai n t o s u c h w at er ar e as a n d t h e e x e m pt e d t y p es of w or k a n d a cti vit y 

w hi c h m a y b e c o n d u ct e d t h er ei n as ar e s p e cifi e d i n t h e w ai v er. It s h all n ot b e 

u nl a wf ul u n d er t h e pr o visi o ns of t h e A cts s p e cifi e d i n S e cti o n 1 of t his A ct t o 

c o m me n c e or c o n d u ct s u c h w or k a n d a cti viti es i n s u c h w at er ar e as as ar e s p e cifi e d 

i n t h e w ai v er d uri n g a n y p eri o d i n w hi c h t h e w ai v er is i n eff e ct.

e c . 3. N a cti o n t a k e n p urs u a nt t o t his A ct s h all b e d e e m e d a m aj or F e d er al 

a cti o n si g nifi c a ntl y aff e cti n g t h e q u alit y of t h e h u m a n e n vir o n m e nt wit hi n t h e 

m e a ni n g of t h e N ati o n al E n vir o n m e nt al P oli c y A ct of 1 9 6 9 ( 83 St at. 8 52) if s u c h 

a cti o n c o n c er ns t y p es of w or k a n d a cti viti es w hi c h o c c ur wit hi n w at er ar e as sit uat e d i n a n y S t at e w hi c h h as e n a ct e d l e gisl ati o n t o r e g ul at e s u c h w or k a n d a cti viti es 

b y t h e St at e or its p oliti c al s u b di visi o ns.

e c . 4. T h e S e cr et ar y of t h e Ar m y a n d t h e C hi ef of E n gi n e ers, aft er n oti c e a n d 

3 0 d a ys o p p ort u nit y f or p u bli c c o m m e nt, m a y r e ass ert t h e e x er cis e of a n y j urisdi cti o n w ai v e d u n d er t h e a ut h orit y of t his A ct s u bj e ct t o s u c h c o n diti o ns a n d f or 

s u c h p eri o ds as t h e y d e e m n e c ess ar y. S u c h r e ass erti o n of t h e e x er cis e of j uris di cti o n i n v ol v e d s h all b e eff e cti v e o nl y w h e n i n writi n g a n d si g n e d b y t h e S e cr et ar y 

of t h e Ar m y a n d t h e C hi ef of E n gi n e ers. All w or k a n d a cti viti es i n w at ers p ert ai ni n g t o t his r es u me d e x er cis e of j uris di cti o n s h all at t h e d at e of r es u m pti o n b e 

s u bj e ct t o t h e pr o visi o ns of t h e A cts s p e cifi e d i n S e cti o n 1 of t his A ct i n a c c or d a n c e 

wit h t h e t er ms s p e cifi e d b y t h e S e cr et ar y of t h e Ar m y, P r ovi de d t hat s u c h w or k a n d 

a cti viti es, w hi c h h a v e c o m m e n c e d pri or t o t h e r e ass erti o n of t h e e x er cis e of j urisdi cti o n a n d h a v e b e e n s p e cifi c all y a ut h oriz e d or p er mitt e d i n a c c or d a n c e wit h a 

l a w of t h e S t at e h a vi n g j uris di cti o n at t h at l e v el of g o v er n m e nt o v er s u c h w or k a n d 

a cti viti es, s h all n ot b e s u bj e ct t o t h e pr o visi o ns s p e cifi e d i n S e cti o n 1 of t his A ct 

u nl ess t h e C hi ef of E n gi n e ers d et er mi n es t h at t h e i nt er ests of n ati o n al or i nt ern ati o n al n a vi g ati o n or a n c h or a g e s o r e q uir es.

Se nat or G r a v e l . Bef ore y o u be gi n, Ge n eral, Se nat or D o m e nici ha d 

a n ot h er c o m mit m e nt a n d c o ul d n ot be here. I w o ul d li ke t o place his 

state m e nt i n t he r ec or d of t hes e heari n gs.

[ T he state m e nt f oll o ws:]

t a t e m e n t o f Ho n . Pe t e V. Do m e ni ci , U. S. Se n a t o r Fr o m t h e St a t e o f

e w Me xi c o

Mr. C h air m a n, t h a n k y o u v er y m u c h. It is a n h o n or t o j oi n wit h y o u i n w elc o mi n g G e n er al M orris t o t h es e h e ari n gs t h at o p e n o ur i n v esti g ati o n of t h e C or ps 

of E n gi n e ers n a vi g ati o n pr o gr a m.

T his m ar ks t h e first l e gisl ati v e h e ari n g b y t h e S u b c o m mitt e e si n c e I b e c a m e its 

r a n ki n g R e p u bli c a n m e m ber. I l o o k f or w ar d t o t his h e ari n g a n d t o w or ki n g wit h 

y o u, Mr. C h air m a n.

I o nl y wis h t h at I c o ul d j oi n y o u a n d G e n er al M orris o n t h e fi el d h e ari n gs t h at 

y o u h a v e s c h e d ul e d f or n e xt w e e k. T h a t i n v esti g ati v e t o ur s h o ul d a d d s u bst a nti all y t o o ur k n o wl e d g e of t h e F e d er al n a vi g ati o n al pr o gr a m.

T o d a y’ s h e ari n g, t h e o n e n e xt w e e k i n Vi c ks b ur g, a n d t h e t hr e e s c h e d ul e d f or 

mi d- J u n e s h o ul d pr o vi d e t h e S u b c o m mitt e e wit h t h e i nf or m ati o n w e n e e d t o 

ass ur e t h e d e v el o p m e nt of a n i nl a n d w at er w a y pr o gr a m of m a xi m u m eff e cti v e n ess.

I n t h at st u d y, I b eli e v e t h at w e c o nfr o nt m a n y c h all e n gi n g q u esti o n s:

W e m ust c o nsi der, f or e x a m pl e, w h et h er a n e e d e xists t o a m e n d t h e pr es e nt 

c ost-s h ari n g s yst e m, u n d er w hi c h F e d er al t a x p a y ers n o w p a y t h e f ull c ost of n a vig ati o n al c o nstr u cti o n a n d m ai nt e n a n c e w or k. D o es t his s u bsi d y dist ort tr a nsp ort ati o n p oli c y a n d pl a n ni n g ?
We m us t j u dge w het her t he pr ese nt met h o d f or c o m p uti n g be nefits of pr o p ose d 

na vi g ati o n w’or k — base d o n t he “sa vi n gs t o s hi p p ers” is fair a n d realistic. Are 

t here b ett er y ar dsti c ks f or j u d gi n g t he val ue of na vi gati o nal w or k?

Littl e eff ort has bee n ma de t o fit water w a ys p olic y i nt o a n y l o n g-ter m “ nati o nal 

tra ns p ort ati o n p olic y.” Are decisi o ns o n ne w water wa y pr oje cts ma de i n a vacu u m, i n de p e n de nt of t he relati o ns hi p t o c o m peti n g m o des? If t his is s o, h o w ca n 

t hese decisi o ns be ma de o n a br oa der basis?

T he C or ps of E n gi neers has s pe nt $ 1. 7 billi o n u n der a 1 9 09 La w all o wi n g replace me nt a n d re ha bilitati o n of t he na vi g ati o n s yste m. We m ust e xa mi ne w het her 

or n ot t his re pla ce me nt a ut h orit y is t o o br oa d? S h o ul d t he C o n gress re peal or 

m o dif y t he 1 90 9 Act? I n a lette r t o C hair m a n Ra n d ol p h, dat e d Ja n uar y 2 3, 1 9 75, 

Ar m y Secret ar y Calla wa y as ke d f or a C o n gressi o nal “reaffir mati o n or clarificati o n” of t his a ut h orit y pri or t o pr ocee di n g wit h t he re place me nt c o nstr ucti o n of 

L oc k a n d Da m 2 6 at Alt o n, Illi n ois. H o w s h o ul d t he C o n gress res p o n d?

I rec o g nize t hat t he c or ps has falle n be hi n d i n m uc h of its necessar y mai ntena nce dre d gi n g w or k. Y o ur dre d gi n g e q ui p me nt is o ut m o de d a n d i n nee d of i mpr o ve me nt. We m ust e xa mi ne t his pr o ble m, a n d see k t o deter mi ne if dre d gi n g 

s h o ul d be ste p pe d u p. Are g ui deli nes o n s p oil dis p osal t o o restricti ve ? W hat ca n we 

e x pect fr o m y o ur c urre nt Dre d ge d M aterial Researc h Pr o gra m?

Mr. C hair ma n, t hese are b ut a fe w of t he iss ues a n d s o me of t he areas of i nterest 

t h at I belie ve we s h o ul d c o ver t o d a y a n d i n t h e f ut ure. T he heari n gs, I k n o w, will 

s u g gest ma n y ot h er q uesti o ns, as well as a ns wers.

I l o o k f or w ar d t o e x pl ori n g t hese t o pics wit h y o u.

S T A T E M E N T 0 E M AJ. G E N. J O H N W. M O R R I S, DI R E C T O R O F CI V I L

W O R K S, U. S. A R M Y C O R P S O F E N GI N E E R S, A C C O M P A NI E D B Y

I R W I N R E I S L E R, C H I E F, O F FI C E O F P O L I C Y; R O N A L L E N, A S SI S TA N T G E N E R A L C O U N S E L F O R L E GI S L A TI V E A F F A I R S; T O M

B L A N K E N S HI P, C H I E F O F C O N S T R U C TI O N O P E R A TI O N S; D. E.

L A W H U N, C H I E F O F T H E L E GI S L A TI V E C O O R DI N A TI O N B R A N C H;

H E L E N C L E G G, O F FI C E O F P O L I C Y; A N D BI L L H E D E M A N, A S SI S TA N T G E N E R A L C O U N S E L F O R R E G U L A T O R Y F U N C TI O N S

Ge ne ral M o r r i s . T h a n k y o u, Mr. C h air ma n.

I a m please d t o ha v e t his o p p o rt u nit y t o a p pe ar t o d a y t o pre se nt 

testi m o n y o n t he C or ps of E n gi ne ers i nla n d a n d c oastal na vi g ati o n 

pr o g ra m. I will st art b y descri bi n g t he p h y sical a n d ec o n o mic c h aracte ristics of t he water wa y s yst e m, a n d s u m marizi n g t he e v ol uti o n of 

t he na vi g ati o n pr o gra m a n d t he a p plica ble la ws a n d p olicies.

O n t he scree n t o y o ur ri g ht I ha v e s o me sli des w hic h will ill ustrate 

p orti o n s of t hi s state m e nt.

Ge n eral p u blic i nter est i n na vi g ati o n a nte date d t he writi n g of t he 

U. S. C o nstit uti o n, b u t t he le gal a nal yse s ge n erall y refer t o t he c o mmerce cla use a n d s u bse q u e nt S u p re m e C o urt decisi o ns defi ni n g t he 

Fe d eral i nter est a n d ri g hts t o re g ulate na vi g ati o n a n d i m p r o v e na viga ble water w a ys.

T h e first di sti nct act of C o n g ress f or i m pr o vi n g na vi g ati o n was 

t h at of Ma y 2 4 , 1 8 2 4, e ntitle d “ A n A ct T o I m pr o ve t he N a vi gati o n of 

t he O hi o a n d Missi ssi p pi Ri v ers ”. A n a p pr o p riati o n of $ 7 5, 0 0 0 was p r ovi de d f or re m o vi n g sa n d bar s fr o m t he O hi o, a n d “ pla nter s, sa w yers, 

a n d s na gs” fr o m t he Mississi p pi.

T h e Fe d eral G o ver n m e nt, i n res p o nse t o t he tra ns p o rtati o n o ve rl oa d ca use d b y t he First a n d Sec o n d W orl d Wa rs a n d c ha n gi n g mari ne 

tec h n ol o g y, has si g nifica ntl y e x p a n d e d t he ca p acit y of t he i nla n d 

na vi gati o n s yst e m si nce t he 1 9 2 0’s.

Gr o wt h i n water wa y traffic has bee n sti m ulat e d b y i m pr o ve me nts 

i n mari ne e n gi n es, a d a ptati o n of t he pr o pell er t o s hall o w dr aft vessels,
t he s u bstituti o n f or pac ket s hi ps of t o w b oats, steel bar ges a n d s pecialized bar ges a da pte d t o certai n car g oes, as well as t he esta blis h me nt of 

i nte grate d t o ws a n d i m pr o ve d har b or a n d ter mi nal facilities.

Fe deral na vi gati o n i m pr o ve me nts, de vel o ped o n t he basis of c o ngressi o nal a ut h orizati o ns, c ust o maril y i ncl u de water wa y c ha n nels, 

l oc ks a n d da ms, har b or areas, pr otecti ve jetties a n d brea k waters, 

a n d mai nte na nce of water wa y di me nsi ons a de q uate f or efficie nt a n d 

safe passa ge of vessels.

O ur na vi gati o nal a ut h orities d o n ot c o ver water wa y i m pr o ve me nts 

t o pr o vi de na vi gati o n access t o pri vatel y- o w ne d facilities, access t o 

restricte d- use facilities n ot o pe n t o t he p u blic o n e q ual ter ms, or t o 

e n ha nce or pri maril y be nefit la n d de vel o p me nt sc he mes.

O n t he i nla n d water wa ys, we ha ve i m pr o ve d nat ural ri vers f or 

na vi gati o n b y o pe n-c ha nnel met h o ds, a n d t he c o nstr ucti o n of l oc ks 

a n d da ms, a n d ca nals. I n pla n ni n g i nla n d water wa ys a n d dee p draft 

har b ors, t he c or ps f oll o ws certai n l o gical se q ue ntial ste ps t o deter mi ne 

be nefits re s ulti n g fr o m a pr o p osed i m pr o ve me nt.

T he pri nci pal be nefits utilize d t o j ustif y na vi gati o n pr ojects are 

tra ns p ortati o n sa vi n gs. Ot her be nefits ma y i ncl u de re d ucti o n i n l osses 

d ue t o hazar d o us or i na de q uate o perati n g c o n diti o ns, e n ha nce me nt 

of la n d val ues fr o m la n dfill, nati o nal defe nse, fl oo d c o ntr ol, ba n k 

sta bilizati o n, a n d s h ore pr otecti o n.

I n t he case of dee p draft na vi gati o n, we e val uate be nefits b y c o nsi deri n g t he re d ucti o n i n vessel o perati n g c osts, i ncl u di n g f uel c o ns u m pti o n ec o n o m y, res ulti n g fr o m i m pr o ve me nts t o e xisti n g c ha n nels 

or t he c o nstr ucti o n of ne w c ha n nels, a nc h ora ge areas a n d t ur ni n g 

basi ns.

T he c or ps na vi gati o n pr o gra m n o w i ncl u des m ore t ha n 2 2, 00 0 miles 

of i nla n d water wa ys. A n a d diti o nal 5, 9 00 miles ha ve bee n a ut h orize d 

f or i m pr o ve me nt, b ut w or k has n ot yet c o m me nce d or bee n c o m plete d, 

as t he case ma y be.

At least 8 5 perce nt of t he c o m plete d s yste m milea ge carries c o mmerical traffic. Ni net y-f o ur perce nt of t he prese nt c o m mercial i nla n d 

water wa y s yste m has bee n i m pr o ve d b y t he Fe deral G o ver n me nt.

T here are als o 3, 00 0 miles of i ntrac oastal c ha n nels, 1 07 maj or 

har b or facilities, 2 63 o perati o nal l oc ks a n d 1 78 da ms, a n d a p pr o ximatel y 4 0 0 s mall p orts a n d har b ors. T he fi g ure of 2 63 o perati o nal 

l oc ks i ncl u des 2 26 maj or c ha m bers, 3 g uar d l oc ks, a n d 3 4 a u xiliar y 

l oc ks. T here are 2 29 mai n l ocati o ns. Fi g ures ha ve varie d acc or di n g 

t o t he defi niti o n of a l oc k w hic h is use d.

D o mestic water b or ne c o m merce m o ves o ne-si xt h of t he Nati o n’s 

i ntercit y car g o, a n d water wa y traffic is e x pecte d t o q ua dr u ple i n t he 

ne xt 5 0 years. Partic ularl y perti ne nt i n li g ht of c urre nt ec o n o mic 

c o n diti o ns a n d l ocalize d e ner g y’ s h orta ges is t he fact t hat r o u g hl y 6 0 

perce nt of t he frei g ht m o ve d o n i nla n d water wa ys is c oal a n d petr ole u m pr o d ucts. A n ot her 1 6 perce nt is a gric ult ural c o m m o dities, a n d 

t he re mai ni n g 2 4 perce nt basic ra w materials f or i n d ustr y.

T otal water wa y c o m merce prese ntl y t otals 1.7 billi o n t o ns/ ye ar — 

o ver 3 5 0 billi o n t o n- miles, or a b o ut 8 t o ns per ca pita. T his v ol u me of 

c o m merce has re gistere d a re mar ka ble gr o wt h, tri pli n g o ver t he past 

15 years. T his ra pi d i ncrease i n t he use of t he i nla n d water wa ys reflects t he dra matic p ost- W orl d War II i n d ustrial gr o wt h i n t he ri ver 

valle ys ser viced b y water wa y tra ns p ortati o n. T his i n d ustrial e xpa nsi o n has itself bee n directl y sti m ulate d b y Fe deral na vi gati o n 

i m pr o ve me nts.
Water wa y car g o is carrie d at a n a vera ge c ost t o t he carriers of 4. 5 

mills/t o n- mile, ma ki n g it t he c hea pest f or m of c o m mercial tra nsp ortati o n. S o me re p orts s u g gest t hat water b or ne c o m merce als o uses 

less e ner g y per t o n- mile t h a n a n y ot her tra ns p ortati o n m o de, ma ki n g 

water wa y m o ve me nt of b ul k c o m m o dities t he m ost e ner g y efficie nt 

a n d ec o n o mical tra ns p ortati o n m o de wit hi n its ser vice area.

E XI S TI N G I N L A N D N A VI G A TI O N S Y S T E M

T he Mississi p pi Ri ver is o ne of o ur m ost i m p orta nt water wa ys a n d 

t he mai n ste m of a n i nla n d na vi gati o n net w or k s pa n ni n g t he ce nter 

of t he c o nti ne nt. I n 1 97 3, traffic o n t he Mississi ppi water wa y s yste m 

a m o u nte d t o 3 18 millio n t o ns, or 1 40 billi on t o n- miles.

Fr o m t he G ulf t o St. L o uis, t he Mississi p pi Water wa y is a n o pe nri ver c ha n nel. T he c ha n nel is mai ntai ne d b y dre d gi n g, ba n k sta bilizati o n, c ut offs, a n d ot her w or ks, ma n y of w hic h ser ve t he d ual p ur p ose 

of passi n g fl o o d waters.

A b o ve St. L o uis, t he nat ur al c o n diti o ns of t he U p per Mississip pi 

pre ve nt na vi gati o n b y o pe n-ri ver c ha n nel. A 9-f o ot c ha n nel is mai ntai ne d u pstrea m t o Mi n nea p olis b y a series of 2 8 l oc ks a n d da ms.

T he n ort her n m ost maj or tri b utar y is t he 3 2 7- mile Illi n ois Ri ver 

Water wa y, c o n necti n g t he Mississi p pi Ri ver a n d Great La kes. A 

9-f o ot c ha n nel has bee n mai ntai ne d b y mea ns of a series of se ve n 

si n gle l oc ks. T he a d diti o n of lar ger d u plicate l oc ks has bee n a ut h orize d 

b y C o n gress, a n d fi nal prec o nstr ucti o n pla n ni n g is n o w u n der wa y.

T he Miss o uri Ri ver Water wa y, na vi ga ble a p pr o xi matel y 7 60 

miles u pstre a m t o Si o u x Cit y, I o wa, is a n o pe n-ri ver c ha n nel. Strea mfl o w le vels are i m pr o ve d b y releases fr o m a series of lar ge u pstrea m 

st ora ge da ms a n d ba n k re vet me nts, per mea ble di kes t o c o ntract 

a n d sta bilize t he water wa y, a n d ot her meas ures.

A relia ble c ha n nel is a vaila ble wit h de pt hs d uri n g t he na vi gati o n 

seas o n of 7 % feet fr o m Ka nsas Cit y, M o., t o t he m o ut h; 8 feet fr o m 

Ka nsas Cit y t o O ma ha; a n d 8 % feet fr o m O ma ha t o Si o u x Cit y. 

We ha ve st u die d e xte nsi on of na vi gati o n t o Ya n kt o n, S. Da k., b ut 

n o f urt her i m pr o ve me nts ha ve bee n a ut h orize d.

T he ne xt maj or tri b ut ar y is t he 1, 00 0- mile-l on g O hi o, o ne of t he 

ol dest a n d best e xa m ples of c o m plete ca nalizati o n of a maj or ri ver. 

T he ori gi nal ca nalizati o n s yste m of t he O hio Ri ver c o nsiste d of 51 

l o w-lift da ms wit h si n gle l oc ks.

M o der nizati o n of t he O hio Ri ver Water wa ys be ga n i n t he 1 9 50’s, 

a n d w he n c o m plete, 9-f o ot de pt hs will be pr o vi de d b y 19 hi g h-lift 

l oc ks a n d da ms. Of t hese 19 pla n ne d l oc ks a n d da ms, 8 ha ve bee n 

c o m plete d, 6 are bei n g c o nstr ucte d, a n d 5 are bei n g st u die d.

Ne xt is t he Ar ka nsas- Ver di gris s yste m, a 4 6 0- mile water wa y wit h 

1 8 l oc ks a n d da ms, pr o vi di n g 9-f o ot na vi gati o n fr o m t he m o ut h t o 

t he vici nit y of T ulsa, O kla. T his water wa y, c o m plete d i n 1 97 0, is 

n o w k n o w n as t he Mc Clella n- Kerr Ar ka nsas Ri ver na vi gati o n s yste m.

Ot her water wa y tri b utarie s of t he Mississi p pi s yste m are t he 

Te n nessee Ri ver, t he W hite Ri ver, a n d t he Re d Ri ver a n d tri b utaries, 

i ncl u di n g t he O uac hita- Blac k a n d Yaz o o Ri vers.

G U L F I N T R A C O A S T A L W A T E R W A Y

T he Mississi p pi Ri ver c o n nects wit h t he 1, 20 0- mile G ulf I nt rac oastal Water wa y stretc hi n g fr o m t he Me xica n b or der t o Fl ori da.
T he G ulf I ntrac o astal Water wa y li n ks t he Mississip pi s yste m 

wit h Te xas c oastal p orts, t he Blac k- Warri or a n d Te n nessee- T o mbi g bee 

Water wa ys i n Ala ba ma, a n d t he A palac hic ola- C hatta h o oc hee- Fli nt 

s yste m i n West Fl ori da.

C urre ntl y 1 2 feet dee p, t he water wa y is a ut h orize d f or a 1 6-f oot 

de pt h bet wee n t he Mississi p pi a n d Sa bi ne Ri vers. T his s yste m i ncl u des ei g ht l oc ks of var yi n g di me nsi ons. Prec o nstr ucti o n pla n ni n g 

is u n der wa y t o re place t he I n ner Har b or Na vi gati o n C ha n nel l oc k 

at Ne w Orlea ns, La., a n d t he Ver milli o n l oc k at A b be ville, La.

A T L A N T I C I N T R A C O A S T A L W A T E R W A Y

O ur sec o n d l o n gest water wa y is t he Atla ntic I ntra c oast al e xte n di n g 

fr o m B ost o n t o t he Fl ori da Ke ys. It is li n ke d t o t he G ulf I ntra c oast al 

Water wa y b y bar ge traffic m o vi n g o n t he O keech o bie Water wa y a n d 

St. L ucie l oc k a n d ca nal f or a dista nce of a p pr o xi matel y 1 55 miles at a 

c o ntr olli n g de pt h of a b o ut 8 feet.

P orti o ns of t he Atla ntic I ntra c oast al Water wa y n ort h of N orf ol k, 

Va., acc o m m o date ocea n goi n g vessels a n d are n ot strictl y i nla n d 

water wa y.

Bel o w N orf ol k t o Mia mi, Fla., a 1 2-f o ot c ha n nel has bee n a ut h orize d 

a n d c o nstr ucte d, e xce pt f or a secti o n 1 0 feet dee p bet wee n F ort Pierce 

a n d Mia mi. A parallel r o ute, 6 feet dee p a n d 1 00 feet wi de, al o n g t he 

c oast of Dela ware, Mar yla n d, a n d Vir gi nia, f or use b y recreati o n craft, 

was a ut h orize d b y C o n gress i n 1 97 0. Prec o nstr ucti o n pla n ni n g is n o w 

u n der wa y.

Ot her c o m merciall y i m p orta nt water wa ys ha ve bee n i m pr o ve d o n 

t he L o wer C ol u m bia a n d S na ke Ri vers, t he Sacra me nt o a n d Sa n 

J oa q ui n Ri vers i n Calif or nia, a n d t he Dela ware Ri ver u pstrea m t o 

P hila del p hia, Pa., a n d Tr e nt o n, N.J.

A d diti o nal water wa y se g me nts are ass ociate d wit h dee p draft 

har b ors, s uc h as t he c ha n nel net w or ks i n t he vici nit y of Ne w Y or k 

Har b or, Ne w Orlea ns, C hesa pea ke Ba y, N orf ol k, a n d t he H o ust o n 

s hi p c ha n nel.

M A J O R A U T H O R I Z E D W A T E R W A Y S N O T C O M P L E T E D

T he maj or a ut h orize d water wa ys w hic h ha ve n ot bee n c o m plete d 

i ncl u de t he Tri nit y Ri ver i n Te xas, t he Re d Ri ver i n L o uisia na a n d 

Te xas, t he Cr oss Fl ori da Bar ge Ca nal i n Fl ori da, t he Te n nesseeT o m bi g bee Water wa ys i n Ala ba ma a n d Mississi p pi, a n d t he C o osa 

Ri ver i n Ala ba ma a n d Ge or gia.

T he Tri nit y Ri ver pr oject, a ut h orize d b y t he 1 96 5 Ri ver a n d 

Har b or Act, will c o nsist of a 1 2 f o ot b y 2 0 0 f o ot m ulti- p ur pose c ha n nel 

e xte n di n g 3 63 miles fr o m Gal vest o n Ba y t hr o u g h Dallas t o F ort 

W ort h.

Si xtee n na vi g ati o n da ms a n d 2 0 l oc ks wit h var yi n g di me nsi o ns are 

pla n ne d. Prec o nstr ucti o n pla n ni n g is c urre ntl y u n der wa y, b ut i n 

acc or da nce wit h directi o ns fr o m t he A p pr o priati o ns C o m mittees, n o 

f u n ds ha ve bee n e x pe n de d f or pla n ni n g t he pr oject na vi gati o n feat ures 

si nce fiscal year 1 97 3.

T he c urre nt esti mate d c ost of t he pr oject wit h o ut na vi gati o n feat ures is $ 7 50 milli o n; wit h na vi gati o n feat ures, $ 1.6 billi o n. Prec o nstr ucti o n st u dies, e xcl usi ve of na vi gati o n, are sc he d ule d f or c o m pleti o n 

i n fiscal year 1 97 7.
1 0

Se nat or r a v e . Ma y I i nterr u pt y o u t here? I w o ul d li ke t o rec o gnize Se nat or Ra n d ol p h, w h o has j ust c o me i n, a n d als o a g uest he 

ha p pe ns t o ha ve fr o m t he nati o n of Le ba n o n; w h o is i ntereste d i n 

water wa ys.

I m ust e xte n d greeti n gs t o y o u, Se nat or. I a m ver y f o n d of y o ur 

c o u ntr y. Se nat or Ra n d ol p h, t he fl o or is y o urs.

O P E NI N G S T A T E M E N T O F H O N. J E N N I N G S R A N D O L P H. U. S. S E N A T O R 

F R O M T H E S T A T E O F W E S T VI R G I N I A

Se nat or R a n d o l p h . T ha n k y o u ver y m uc h, Mr. C hair ma n.

We ha ve bee n pri vile ge d t o s hare i n c o nfere nces earlier t his wee k 

t he pr o ble ms a n d als o t he c hallen ges of t he c o u ntr y of Le ba n o n fr o m 

t he sta n d p oi nt of its de vel o p me nt o n a br oa d fr o nt c o veri ng p u blic 

w or ks a n d tra ns p ortati o n.

T h ose c o nfere nces ha ve bee n hel d wit h Se nat or Ba dre, a n d he has 

c o me t o t his heari n g t o da y as o ur g uest i n his ca pacit y as c hair ma n 

of t he P u blic W or ks a n d Tra ns p ort C o m mittee of t he Parlia me nt 

of Le ba n o n. T h at c o u ntr y has j ust t he o ne le gislati ve bo d y, s o he ser ves 

f or 9 9 me m bers of t hat le gislati ve b o d y.

I pres u me it w o uld n ot be i na p pr o priat e f or me t o sa y t hat e ve n 

t h o u g h his c o u ntr y is ver y far a wa y, I u n dersta n d its pr o ble ms 

a little better w he n I k n o w t hat it is a m o u ntai n o us c o u ntr y, beca use 

West Vir gi nia a n d Le ba n o n ha ve c o m m on c haracteristics of terrai n 

a n d pr o ble ms of i ncrease d c osts i n p u blic w or ks, a n d we are affecte d 

i n t he sa me wa ys.

We ha ve f o u n d t his se nat or desir o us of c o u nseli n g a n d c o o perati o n. 

He s pea ks i n a ver y real a n d p ositi ve wa y a b o ut t he c o ncer ns t hat 

he has f or his pe o ple, t he pe o ple of his c o u ntr y.

He is tr yi n g, w hile he is here, t o fa miliarize hi mself wit h w hat 

we are d oi n g, n ot t hat t he y w o ul d patt er n after us —t here is a differe nt 

c ult ure here t ha n t here — b ut t hat we ma y ha ve ha d s o me e x perie nces 

w hic h w o ul d ai d hi m i n t he w or k t h at is bei n g d o ne i n his c o u ntr y.

I sa y t o t he se nat or t hat I ha ve l o n g felt a n d ofte n e x pressed t hat 

w he n we ha ve relati o ns hi ps wit h ot her c o u ntries a n d ha ve ai de d 

ot her c o u ntries i n realistic wa ys, t hat we ma ke a mista ke as a pe o ple 

i n t he U nite d States i n s o meti mes t hi n ki n g t hat beca use of s o me 

assista nce we e x pect t he pe o ples t here t o c o me t o a d o pt o ur t y pe of 

li vi ng.

T his is n ot desira ble, a n d I d o n’t t hi n k it is t he wa y we s h o ul d 

t hi n k w he n we are w or ki n g wit h ot her nati o n s a n d ot her pe o ples.

I believe t he disti ncti ve ness of a pe o ple is s o met hi n g t hat is t o be 

c heris he d b y t h ose pe o ple. T he n we ca n gr o w t o get her. We ca n ha ve 

a u nit y bet wee n us, br oa d i n p ur p ose, b ut t hat d oes n’t mea n we 

ha ve t o be u nif or m i n a n y se nse of t he w or d.

S o we welc o me y o u, Se nat or, t o t his heari n g c haire d b y t he Se nat or 

fr o m Alas ka. Y o u ca n realize t he bi g ness of t his c o u ntr y fr o m t he 

sta n d p oi nt of its t o p o gra p h y as it reac hes i nt o areas t hat we o nce 

felt were t he fr o ntiers a n d o utsi de of w hat we c o ul d d o i n t he c o nti ne ntal U nite d States. T he pr o ble ms are ma n y a n d t he c halle nges 

are great.

We are ha p p y t hat y o u ha ve bee n, d uri n g t he week, tal ki n g wit h 

Me m bers of t he Se nate a n d ot hers. I a m a p preciati ve pers o nall y 

a n d officiall y f or t he o p p ort u nit y t o ha ve met a n d tal ke d wit h y o u
1 1

a n d n o w t o welc o me y o u t o t hi s f or m al heari n g of t he S u b c o m mittee 

o n W ate r Res o urc es of t he Se n ate P u blic W or ks C o m mitte e.

Mr. C h air ma n, I wa nte d t he se nat or fr o m Le ba n o n t o k n o w t h at 

we a re ge n ui nel y i nt ere ste d i n t he eff orts he a n d ot h ers i n his c o u ntr y 

are ma ki n g t o w ar d t he b uil di n g of a bette r w orl d.

Se nat or G r a v e l . I t hi n k we n ee d a res p o nse fr o m t h e se n at o r.

S T A T E M E N T O F H O N. C H A FI C S. B A D R E, A S E N A T O R F R O M L E B A N O N

Mr. B a d r e . T h a n k y o u, Mr. C h air ma n. T h a n k y o u, Mr. Se nat or. 

Fi rst of all, I w o ul d li ke t o tell y o u t h at d ue t o m y E n glis h, I will n ot 

be a ble t o g o i nt o a l o n ger s peec h b eca u se t hi s is n ot m y ba sic la n g ua g e.

I w o ul d li ke y o u t o k n o w t h at it is a n h o n or a n d a pri vile g e f or 

me t o be here wit h y o u t o d a y. It has bee n a real h o n or a n d ple as ure 

t o me et wit h m y c ollea g ue, Se nat or Ra n d ol p h. We we nt t hr o u g h 

vari o u s pr o ble m s of m ut ual i ntere st beca use, as he j u st st at e d, we 

ha v e si milar c o u ntri es.

M y c o u ntr y is a m o u ntai n o us c o u ntr y. B uil di n g r oa ds is ver y 

diffic ult. O n h y dr o ele ctri c res o urce s t h at I c o ntr ol, als o, we ha ve a 

l ot of pr o ble m s. We ha v e rec o n str ucti o n pr o ble m s, a n d all t hi s falls 

u n d er t he j uri s di cti o n of m y P u bli c W o r ks a n d Tra ns p o rt C o m mitte e.

F u rt h er m o re, as t o d a y dista n ces are n o m ore of a pr o ble m bec a use 

of t he tra ns p o rtati o n, a n d t hi s is w h at I t ol d Se nat or Ra n d ol p h, 

we s h o ul d ha ve bette r ties bet we e n o ur parli a m e nts i n or d er t o let 

t he pe o ple k n o w t h at we are c olla b orati n g f or t he f ut ur e, a n d let 

t he ne w ge n erati o n u n de rst a n d t h at a bette r c o o per ati o n bet we e n 

t he bi g Nati o n a n d a ver y s mall nati o n t h at is mi ne is pr ofita ble.

It is pr o fita ble f or t he sec urit y of t he w orl d. It is pr o fita ble f or t he 

f ut ur e t h at we h o pe we will b e a ble t o b uil d f or t he m i n a bett er wa y.

I als o w o ul d welc o me a n y M e m ber of t he Se nat e, a n d here I a d d res s 

a n official i n vitati o n t o a n y M e m ber of t he Se nate w h o w o ul d li ke t o 

c o me t o Le ba n o n a n d visit wit h us s o we will disc u ss o ur m ut ual 

pr o ble ms; beca use, of c o urse, we will ta k e m ore fr o m y o u t h a n y o u 

will gi ve t o us. B ut I a m a bit selfis h a n d li ke t o be s o m eti m es.

T ha n k y o u a gai n, Mr. C h air ma n. T h a n k y o u f or t hi s o p p o rt u nit y, 

a n d it is a ple as ure t o be wit h y o u.

Se nat or R a n d o l p h . T ha n k y o u, Se nat or.

Se nat or G r a v e l . Se nat or Ra n d ol p h, t h at is t he first ti me I ha v e 

hea r d Le ba n o n referre d t o as hill c o u ntr y. As a m atte r of fact, c o me 

t o t hi n k of it, w hile I was t he re s o me of t h at m usic di d s o u n d li ke t h at.

Se nat or, we are ha p p y t o ha v e y o u here. I h o p e t h at y o ur ti m e 

fra m e will per mit y o u t o sta y. I k n o w Se nat or Ra n d ol p h has ot h er 

c o m mit m e nt s he has t o h o n or. B u t w h at we are d oi n g here is reall y 

t he baseli ne be gi n ni n g t o a t otal o ver vie w of t he water w a y pr o gra m 

of t he U nite d States.

Ge n eral M orris is i n c har ge of t he ci vil w or k s acti vitie s of t he C o r ps 

of E n gi neers. T h e state m e nt he has p re p are d a n d is gi vi n g us n o w a n d 

t he sli de pr ese ntati o n is pr o ba bl y as fi ne a n d as t otall y e nc o m p assi n g 

a pre se ntati o n t h at has e ve r bee n ma d e bef or e t he C o n gres s or a n y 

place i n t he U nite d St ate s o n o ur t otal water wa y pr o gra m. S o if y o ur 

ti me per mits a n d y o u w o ul d li ke t o f oll o w al o n g a n d st a y wit h us, 

y o u are welc o me t o d o s o.

5 4- 2 3 9 0 - 7 5 - 2
1 2

Mr. a d r . I w o ul d be deli g hte d. Als o, we ha v e t o d a y a ver y bi g 

pr o ble m wit h water. We ha v e all o cate d £ 1 9 0 milli o n j u st last wee k 

f or a pr oject. I w o ul d be ver y i nt ere ste d i n hea ri n g m ore a b o ut it.

Se n at o r G r a v e l . T h a n k y o u ver y m uc h, Se n at or. Y o u are welc o me 

t o sta y as l o n g as y o u wis h.

Ge ne ral M orris, let’s pic k u p at t he Re d Ri v er.

Ge neral M o r r i s . T h e Re d Ri v er W ate r w a y, a ut h orize d b y t he 

1 9 6 8 Ri v er a n d Ha r b or Act, will pr o vi de a na vi gati o n c ha n nel, 9 feet 

dee p a n d 2 0 0 feet wi de, wit h fi ve l oc ks a n d da m s, a p p r o xi m atel y 2 1 0 

miles fr o m t he j u n cti o n of t he Missi ssi p pi a n d Re d Ri v ers n ear A n g ola, 

La., t o S hre v e p o rt, La.

A n a d diti o nal secti o n of t he water wa y bet w ee n S hr e ve p ort a n d 

Da n g erfiel d, Te x., has bee n deferre d, pe n di n g a n ec o n o mi c rest u d y. 

T he c u rre nt esti m ate d c ost is $ 5 4 4 milli o n. F u n d s t o i nitiate pre c o n ­

str ucti o n pla n ni n g were a p p r o p riate d i n fiscal ye ar 1 9 7 1. F u n d s f or 

c o n str u cti o n were a p pr o pri ate d i n fiscal ye ar 1 9 73. T he sc he d ule d 

c o m pleti o n date is 1 9 8 5.

T he Cr oss Fl ori da B ar g e C a nal wa s a ut h ori ze d i n 1 9 4 2. As ori gi nall y 

e n vis a ge d, a 1 1 0- mile bar g e ca nal w o ul d ha v e bee n b uilt bet we e n t he 

St. J o h ns Ri ver at P olat k a a n d t he G ulf of Me xic o at Ya n keet o w n. 

T hr ee da m s, fi ve l oc ks, a n d a c ha n nel 1 2 feet dee p a n d 1 5 0 feet wi de 

w o ul d ha v e bee n i ncl u de d.

C o nstr ucti o n, be g u n i n 1 9 6 4, was ter mi nate d i n 1 97 1 b y t he Pr esi ­

de nt, aft er a b o ut 2 5 miles of c ha n nel, t hr ee l oc ks a n d da m s a n d f o ur 

bri d g es were c o m plet e d.

T h e Pr esi de nt or d ere d t he halt t o pre ve nt p ote ntial e n vir o n m e nt al 

da m a ge a n d dire cte d t h at t he w or k be ter mi nate d i n a ma n n er lea vi n g 

affecte d area s i n a safe a n d rest ore d c o n diti o n. A p pr o xi m atel y $ 7 0 

milli o n ha v e bee n i n v este d i n c o m plete d w or k s a n d la n ds.

I n 1 9 7 2 C o n gres s a p pr o pri ate d $ 1 5 0, 0 0 0 f or a d etaile d e n vir o n m e nt al 

i m pa ct st u d y. F u n d s were n ot ma d e a vaila ble u ntil t he c o u rts r ule d, 

i n Ja n u ar y 1 9 7 4, t h at t he y s h o ul d be relea se d. A rest u d y of pr oject 

alt er n ati ve s a n d a f ull EI S are n o w bei n g pre p are d at a t otal esti m ate d 

c ost of $ 2. 5 milli o n.

T h e T e n n esse e- T o m bi g be e W ater wa y, a ut h oriz e d b y t he 1 9 4 6 Ri ve r 

a n d H ar b or Act, will p r o vi de a s h orte r, m ore dire ct c o n n ecti o n bet we e n 

t he easter n g ulf c oa st a n d t he Te n n esse e, O hi o, a n d U p per Mississi p pi 

Valle ys.

T he water wa y will be 2 5 3 miles l o n g wit h a de pt h of 9 feet i n t he 

ri ve r secti o n, 1 2 feet i n t he ca nal a n d di vi de secti o ns, a n d wi dt h s of 

2 8 0 t o 3 0 0 feet. Te n l oc ks a n d fi ve da m s a n d na vi gati o n p o ols are 

pla n ne d. T he t otal esti m ate d c ost is $ 9 5 3 milli o n, of w hic h $ 1 3 8 milli o n 

is n o n - Fe der al c osts. I nitial c o n str ucti o n f u n ds were a p pr o pri ate d i n 

fiscal ye ar 1 9 7 1, a n d pr oject c o m pleti o n is sc he d ule d f or 1 9 8 2.

T he Ala b a ma - C o osa Ri v er s yste m was a ut h o riz e d f or na vi g ati o n, 

fl o o d c o ntr ol, p o we r de v el o p m e nt a n d ot her p ur p oses i n t he 1 9 4 5 

Ri v er a n d Ha r b or Act.

T he Ala b a m a Ri v er p orti o n, c o m plet e d i n 1 9 7 2, pr o vi de s n a vi gati o n 

f or 3 1 4 miles fr o m ne ar M o bile, Ala., u p str ea m t o t he j u n cti o n of t he 

C o osa a n d Ala ba m a Ri v ers a b o v e M o nt g o m er y, Ala.

I m pr o ve me nts a ut h orize d o n t he C o os a Ri ver w o ul d e xt e n d na vigati o n 2 5 8 miles f u rt h er t o R o m e, Ga. T h e C o osa Ri v er na vi g ati o n 

feat ure s will i ncl u de si x l oc ks, c ha n nels 9 f eet dee p a n d 1 5 0 feet wi de,
1 3

m o d ificati o n s t o e xisti n g pri vate p o wer da m s a n d dre d gi n g i n t he 

e xisti n g na vi gati o n p o ol.

T he c u rre nt esti m ate d c ost f or t he C o os a Ri v er i m pr o v e m e nt is 

$ 3 2 4 milli o n, of w hic h $ 1 8 milli o n is n o n - Fe der al c osts. T h e Se n ate 

a n d H o u se S u b c o m mittee s o n P u blic W or ks ha v e dir ect e d t h at f urt he r e c o n o mic a n d e n gi n eeri n g st u die s be u n derta ke n pri or t o a d v a nc e 

e n gi neeri n g a n d desi g n or c o n str ucti o n. T hi s re st u d y is sc he d ul e d f or 

c o m pleti o n i n fiscal ye ar 1 9 7 7.

L O C K A N D D A M R E P L A C E M E N T S

As I i n dicate d, we are w or ki n g o n certai n l oc k a n d da m re plac eme nts. S o me pla n ne d i m pr o ve m e nt s will re q uir e a d diti o nal c o n gressi o nal a ut h orizati o n. U si n g a J ul y 1 9 74 base, we e sti mate t h at a ut h oriz e d 

re plac e m e nt s will c ost sli g htl y o ve r $ 4 billi o n.

All o cati o ns t hr o u g h J u ne 3 0, 1 9 7 4 w ere a p pr o xi m atel y $ 1. 1 billi o n, 

wit h a bala nce t o c o m plete of $ 2. 9 billi o n. C o st esc alati o n i n hi bits me 

fr o m c o m pari n g d ollar e x p e n dit ures t o date wit h t he per ce nta g e of 

p h ysical c o m pleti o n. C o st esc alati o n kee p s raisi n g t he d ollar bala nce 

o ut of pr o p orti o n t o c o m plet e d w or k.

O P E R A T I O N A N D M A I N T E N A N C E

T he C or ps of E n gi nee rs is res p o nsi ble f or mai nt ai ni n g t he na vi g abilit y of U. S. har b o rs a n d str ea ms t o ass u re t he s afe pas sa ge of w at erb or ne c o m m erce at a reas o na ble c ost. T his res p o n si bilit y is t w of ol d: 

We mai nt ai n e xisti n g a ut h oriz e d c ha n nel wi dt hs a n d de pt h s, a n d we 

c o nstr u ct ne w c ha n nel s at a gr eater wi dt h a n d/ o r de pt h.

I n a re p res e ntati ve yea r, we n or m all y perf or m mai nt e n a n ce o n 

a b o ut 3 5 0 of a t ot al of m ore t h a n 1, 0 0 0 na vi g ati o n pr ojects. T h e 

pr ojects ha v e rel ati v el y fi xe d O. & M. re q uir e m e nts, t he c ost of w hic h 

escalate s as price s i ncr ease; a n d, as pr ojects a ge, t he y re q uir e gr eat er 

mai nt e na nce a n d re h a bilit ati o n.

T h e a d diti o n of ne wl y c o m plete d pr ojects i nt o t he O. & M. i n v e nt or y, t he c ost s f or e n vir o n m e nt al pr otecti o n, i ncl u di n g p oll uti o n 

a b ate me nt, i ncre ase d traffic a n d lar g er vessel sizes ha v e i ncr eas e d t he 

nee d t o mai nt ai n pr ojects t o f ull a ut h oriz e d di me nsi o n s. T o car r y o ut 

t his res p o nsi bilit y, t he c or ps o w ns a n d o pe rate s a m o de st fleet of 

dre d g es, w hic h, i n s o me cases, c o m pet e wit h pri vatel y o w ne d dre d ges 

i n pr o vi di n g a p u blic ser vice. T h e c or p s perf or m s 5 4 perce nt of t he 

O. & M. dre d gi n g.

T he fiscal ye ar 1 9 7 6 b u d get re q ue st i ncl u de s a s u bsta ntial i ncr ease 

f or dre d gi n g na vi g ati o n pr ojects. If o ur pe n di n g fiscal ye ar 1 9 7 5 s u pple me ntal re q ue st a n d t he fiscal ye ar 1 9 7 6 b u d get a m o u nt are a p pr opri ate d, we s h o ul d be a ble t o plac e t he Nati o n’s p ri m ar y ha r b o rs a n d 

c ha n nels i n a d e q uate c o n diti o n a n d rest or e esse ntial di m e nsi o ns i n 

ma n y s maller har b o rs a n d c ha n nels.

Mea n w hile, t he acc u m ulati o n of defe rre d mai nt e na nce o n pr ojects 

ot he r t h a n pri m ar y c ha n nel s a n d ha r b or s is i ncre asi n g. We esti m ate 

n o w t h at t he bac kl o g a m o u nts t o $ 1 5 0 milli o n f or all mai nt e n a n ce 

dre d gi n g pr ojects. A n n u al c ost i ncr ease s a n d a d diti o nal mai nt e n a n ce 

re q uir e m e nts ha v e o ut pac e d f u n di n g i ncr ease s f or a n u m be r of yea rs, 

res ulti n g i n a re d uce d sta n d ar d of mai nt e n a n ce o n ma n y na vi g ati o n 

pr oject s.
1 4

I n pri ma r y har b ors, a ut h oriz e d de pt h s ha ve bee n mai nt ai n e d b ut, 

i n ma n y i nsta n ces, a ut h orize d wi dt hs a n d sl o pes ha v e n ot. I n s o me 

s maller har b o rs, mai nt e na nce dre d gi n g has bee n deferre d f or a ye ar 

or m ore.

U nit c osts ha ve i ncr ease d t o t he p oi nt t h at d re d gi n g w or k has bee n 

deferre d o n 3 5 pr ojects i n fiscal ye ar 1 9 7 5. Dre d gi n g pr o ble m s ha ve 

bee n f urt h er c o m plic ate d b y t he i ncre ase d c osts ass o ciate d wit h c u rtaile d o pe n water dis p osal, a n d t he nee d t o c o nstr u ct di ke d dis p o sal 

area s. We are tr yi n g t o c o u nter act t he s h o rtf all s t o kee p esse ntial 

water wa y c o m mer ce m o vi n g wit h o ut ca u si n g u n d ue har ds hi p at a n y 

pa rti c ular l oc ati o n.

I n fiscal y ea r 1 9 7 6, O. & M. f u n di n g will be a p plie d t o i m p r o v e t he 

le vel of mai nt e n a n ce of 4 9 c ha n nels a n d ha r b o rs c o nsi dere d t o be t he 

m o st critical of 3 5 0 pr ojects re q uiri n g mai nt e n a n ce d uri n g fiscal ye ar 

1 9 7 6. T he se ha v e bee n i de ntifie d o n t he basis of traffic t y p e a n d 

v ol u m e, effects of defe rre d mai nt e na nce o n t he l ocal a n d nati o nal 

ec o n o mies, a n d t he pre se nt state of mai nt e na nce.

A p art fr o m fi na n cial c o nst rai nts, a d e q uate mai nt e n a n ce a n d o p era ­

ti o n of t he water wa ys is c o m plic ate d b y t hr ee i nt err elate d fact or s: 

Pla ce m e nt of dre d ge d mat erial, pl a nt ca p a bilit y, a n d le gal a n d 

e n vir o n me ntal c o nstrai nt s.

Dis p osal pr o ble m s ste m al m ost e ntir el y fr o m e n vir o n m e nt al c o nsi de rati o ns. T h e 3 5 0 milli o n c u bic ya r d s we dre d ge a n n uall y ha v e t o 

be place d s o me w her e, a n d t h at s o me w here is al m ost al wa y s u n ac ce pta ble t o s o me o ne.

T o pr o vi de a scie ntific basis f or e v al u ati n g t he i m pa cts of dis p os al 

of dre d ge d material, a n d t o assist i n de v el o pi n g feasi ble dre d gi n g a n d 

dis p os al alt er n ati ve s, we are u n derta ki n g t he lar g est rese arc h a n d 

de v el o p m e nt pr oje ct i n t he hist or y of o u r water res o urces mi ssi o n: a 

5- year, $ 3 0 milli o n dre d ge d mat erial rese arc h pr o gra m.

T o dat e, t his pr o gr a m te n ds t o d e m o n str ate t h at dis p osal o per ati o ns 

us u all y d o n ot a d v ers el y affect water q u alit y a n d a q uatic or g a nis ms; 

t h at c o nfi ne d dis p o sal are as c a n be d esi g n e d, c o nst r ucte d, a n d m a na ge d 

wit h mi ni m al a d v ers e e n vir o n m e nt al i m pa ct; a n d t h at e ve n l o wq u alit y, s o m eti m es p oll ute d, dre d ge d material ma y ha v e be neficial 

uses.

O ur fl oati n g pl a nt p ose s pr o ble ms. C o r p s’ dre d ges are ol d a n d 

e x p e nsi ve t o m ai ntai n a n d o pe rate. C o ntra ct or pla nt is i n si milar 

c o n diti o n. Pe n di n g c o m pleti o n of o ur c o m pr e he nsi v e st u d y of nati o nal 

dre d gi n g re q uir e m e nts, we are o p erati n g u n der a c o n gre ssi o n al m o rat ori u m o n re placi n g or m o dif yi n g t he ol d dre d ges.

Se nat or G r a v e l . E xc use me. Is t h at a si n ki n g v essel?

Ge neral M o r ri s . Yes, sir. Si nce y o u ha v e as ke d, o ur dre d ge 

fleet------

Se n at or G r a v e l . T ha t is n ot reall y a dre d ge fleet, is it?

Ge neral M o r r i s . O ur dre d g es a ver a ge d 3 8 yea rs i n a ge u ntil t he 

M a c Ke nzie sa n k i n Gal ve st o n Ba y last yea r. N o w t he a ver a ge a ge is 

3 0 yea rs; t he M a c Ke nzie was 5 0 y ear s ol d at t he ti me of t he si n ki n g.

Se n at or G r a v e l . S he sa n k t here?

Ge ner al M o r ri s . Yes. We s u b se q ue ntl y re m o ve d it. B ut I g uess 

t he sli de ma d e t he p oi nt.

Se n at o r G r a v e l . It is a pr ett y gra p hic wa y t o ma k e a p oi nt.

Ge ner al M o r r i s . I nci de ntall y, t he nati o n al dre d gi n g st u d y is n o w 

c o m plete a n d t he Se cretar y of t he Ar m y has s u b mitte d it t o t he
1 5

Office of Ma na g e m e nt a n d B u d get f or re vie w pri o r t o f or w ar di n g 

t he st u d y t o t he C o n gre ss. We ha v e testifie d bef ore t he A p pr o pri ati o ns C o m mittee t his ye ar o n re q uir e m e nt s t o s u p ple me nt t he dre d ge 

fleet. M y state m e nt a b o ut t he m o rat ori u m o n re pl aci n g or m o dif yi n g 

ol d dre d g es nee ds t o be s ofte ne d s o m e w hat b v c urre nt c o n si de rati o ns 

i n t he A p pr o pri ati o ns C o m mittee.

Se nat or G r a v e l . T ha t is g oi n g t o be i ncl u de d i n t he J u ne he ari n g s — 

t he w h ole iss ue of pri vate vers us p u bli c acti vitie s i n dre d gi n g.

Ge ne ral M o r ri s . T his st u d y will i n dicate w h et h er t he c or p s 

s h o ul d c o nti n u e t o o p erate its o w n pl a nt or c o ntra ct m ore w o r k o ut 

t o pri v ate i n d ustr y. C u rre ntl y t he c or p s perf or ms a b o ut 3 5 perce nt 

a n d i n d u str y 6 5 per ce nt of t he t ot al dre d gi n g. O ur ge neral p oli c y o n 

c o ntr act or vers us i n- h o use dre d gi n g is t o ha v e t he w or k perf or m e d 

i n t he m o st ec o n o mical ma n n er c o nsi ste nt wit h saf et y a n d wit h 

mi ni m al disr u pti o n t o c o m m ercial na vi g ati o n.

Fi ve yea rs aft er N E P A, we ha v e ne arl y c o m plete d t he e v al u ati o n 

of t he e n vir o n m e nt al i m pa cts of o ur na vi g ati o n w or k. O ver 1, 0 0 0 

O. & M. pr oject s al o ne were i n v ol ve d.

We h a ve u n d ert a k e n ma n y c h a n ge s i n t he i nte re st of e n vir o n me ntal 

e n h a nc e m e nt. C u rre ntl y we are w or ki n g wit h E P A t o de vel o p fi nal 

g ui deli nes t o i m ple me nt secti o n 4 0 4 of t he Fe d eral W ate r P oll uti o n 

C o ntr ol Act A m e n d me nts of 1 9 72 rel ati n g t o disc h ar ge of dre d ge d 

mat erial i nt o na vi ga ble water s at s pecific dis p o sal sites.

Br o a dl y s pea ki n g, e n vir o n me ntal a wa re ne ss is wi d es prea d a n d t he 

i m pact of pr o p os e d ma n- m a de c ha n ges t o t he p h ysic al e n vir o n me nt 

is f re q ue ntl y a m atter of c o nject ure. A g ree me nt o ver w h et h er t he net 

effect of a n y pr o p o se d c ha n ge is be nefi cial or a d v ers e is diffi c ult t o 

ac hie ve.

T he C or p s of E n gi neers will, h o we ver, n ot rec o m m e n d a n y pr oject 

f or c o nstr u cti o n or c o nti n u e d o pe rati o n t h at we d o n ot re g ar d as a 

p ositi ve i m pr o ve me nt. B ut o ur j u d g me nts are n ot al wa ys a gree d t o 

b y t he p u blic a n d, occasi o nall y, t hes e disa gre e m e nt s m u st be res ol v e d 

b y c o urt a cti o n. At t he pre se nt ti me, t he n u m ber of s uits a g ai n st c or ps 

dre d gi n g pr ojects, i ncl u di n g t h os e i n (). & M. stat u s, is i ncrea si n g.

C O S T S H A R I N G

T h e o bje cti v es of na vi gati o n i m pr o ve m e nt s i ncl u de de v el o pi n g 

safe a n d efficie nt i nterstate a n d f orei g n water b or ne c o m merc e, 

sati sf yi n g recreati o n al b oati n g de m a n d, pr o d uci n g seaf o o d, e n h a nci n g 

fis h a n d wil dlife res o u rces as well as e n vir o n m e nt al q u alit y, e x p a n di n g 

i n d ustrial a n d a gric ult ur al pr o d u cti o n, mi ni mizi n g re gi o nal a n d 

secti o nal ha n dic a ps d ue t o p o or acc essi bilit y, a n d i ncr easi n g s ocial 

well bei n g.

T h e i m p orta nc e of t hese o bje cti v es t o t he Nati o n has b ee n cite d as 

j ustifi cati o n f or c o nti n ui n g Fe d eral res p o nsi bilit y f or na vi g ati o n i mpr o ve m e nt s. Fe d eral i n v est me nts i n water wa y i m pr o ve me nts va r y 

fr o m zer o t o 1 0 0 per ce nt, de p e n di n g o n t he nat ure of t he i m pr o veme nts, t he de gre e of be ne fit t o t he ge ne ral p u blic, i n c o ntr a disti ncti o n 

t o be nefits t o s pecial i nt ere sts or a n e xcl u si ve or pr e d o mi n a nt waterwa y user, a n d t he si g nific a nce of a pr o p ose d i m pr o ve m e nt i n t he c o nte xt of a n o ver all pla n.

D u e t o t he ge n eral a n d wi des p rea d n at ur e of t he be n efits, t h e F e de ral 

G o ver n m e nt parti ci p ate s i n t he c ost of pr o vi di n g ge ne ral na vi g ati o n
1 6

fea t ures f or c o m m ercial pr oject s; f or e xa m ple, i n t he c osts of br ea kwate rs, jetties, e ntra nc e a n d pri ma r y access c ha n nels, t ur ni n g basi ns 

a n d a nc h ora ge s.

N o n - Fe deral i nt ere sts are res p o nsi ble f or t he c osts of ter mi nal 

facilities; dre d gi n g i n bert hi n g area s a n d i nt eri or access c ha n nels; 

ac q uisiti o n of nec essa r y la n ds, ease me nts, ri g hts- of- w a y a n d s p oildis p os al area s wit h ret ai ni n g di ke s; a n d h ol d-a n d-sa ve re q uir e m e nt s.

N o n- F e deral i nt ere sts are als o r e q uire d t o rel oc ate a n d alter affecte d 

utilities, pi peli nes, ca ble s, a n d se wer o utlets. A d diti o nal l ocal c o o per ati o n ma y be r e q uire d i n e ve nt of s pecial be nefits.

T he Fe d eral G o ver n m e nt als o defra y s o ne- half of t he first c ost s of 

t he ge neral na vi gati o n feat ur es ser vi n g rec reati o n al traffic, a n d t he 

f ull 0. & M. c osts of ge ner al na vi gati o n f eat ure s of s m all- b oat h ar b ors.

N o n- F e deral i nt ere sts bea r o ne- h alf of t he c o n str u cti o n c ost s a n d 

pr o vi de all la n d s, ease me nts, ri g hts- of- w a y, a p u blic w harf, ser vici n g 

facilities, a n d nec essa r y p olici n g a n d ot h er esse ntial ser vices. Alteri n g 

rail r oa d bri d ges f or strictl y recreati o nal na vi g ati o n is c ost-s h are d 5 0 

per ce nt Fe d eral a n d 5 0 p erc e nt n o n- Fe d eral.

R E L A T I O N S H I P T O O T H E R T R A N S P O R T A TI O N M O D E S

F or se veral yea rs t he c or ps has bee n de vel o pi n g a n o verall pla n of 

i m pr o ve m e nt f or t he i nla n d na vi gati o n s yste m t o ma xi mize t he net 

c o ntri b uti o n t o t he N ati o n’s t ot al tra ns p o rtati o n s yst e m.

W hile pa st pr oject- b y- p r oj ect a nal yse s ha v e i n dicate d t he val ue of 

i n di vi d ual na vi g ati o n pr ojects or water wa y se g m e nts, a nal yses of t he 

t ot al i nla n d a n d i nt rac oa stal na vi g ati o n s yste m ha v e n ot bee n at ­

te m pte d u ntil t he a d ve nt of t he I nl a n d Na vi g ati o n S yste ms A nal ysis, 

“I N S A, ” t o w hic h I will r et u r n later.

T h e r ole of t he i nla n d wat er w a ys has n ot bee n rec o g nize d wi del y, 

n or has Fe d eral pr o p o ne nc y bee n vi g or o us. I n a d diti o n, si nce t he i ndi vi d u al A me rica n d oes n ot use t he water w a ys as he d oes t he rails 

a n d hi g h wa y s, t here is n o g e neral gras sr o ots u n derst a n di n g or s u p p ort 

f or water tra ns p o rtati o n.

B ut, t his N ati o n d oe s nee d a n d deser ve a fir st-cla ss w ater wa y s yste m. 

If t his s h o ul d bec o m e a nati o n al o bj ecti ve, we alre a d y p ossess, i n t he 

m ore t h a n 2 5, 0 0 0 miles of i m pr o v e d i nla n d a n d i ntra c o ast al water w a ys, 

9 5 per ce nt of t he o pti m al wat er w a y s yste m, fr o m a li ne ar sta n d p oi nt.

T h e tas k is t o acc or d m ore atte nti o n t o t he e ntire s y ste m’s pe rf or m a nce b y mai ntai ni n g water w a y di m e nsi o ns a n d o p erati n g c o nditi o ns a d e q uate f or safe a n d ec o n o mi call y efficie nt water b or ne 

c o m m erce, wit h o ut ma ki n g a dis pr o p orti o nate i n v est me nt of ti me 

a n d eff ort o n a n y pa rti c ular c o m p o n e nt.

T he disti n g ui s hi n g c h ara cte ristic of all U. S. tra ns p o rtati o n m o d es 

is t he hi g h de gr ee of pri vate o w n ers hi p a n d o pe rati o n. I n c o nt ra st 

t o m o st ot h er hi g hl y de vel o pe d nati o ns w here g o ver n m e nt s us uall y 

o w n a n d o p erate ma n y basic tra ns p o rt i n d ust rie s, pri vate e nter pri se 

pr o vi de s t he b ul k of U. S. tra ns p o rt ser vic es.

T h e Fe d eral G o ver n m e nt d oes pr o vi d e air p o rts, water wa ys a n d 

r oa d s, b u t pri v at e carrier s o w n a n d o p erate t he airli n es, bar g es, a n d 

tr u c ks. M o st railr o a d s are i n pri v at e ha n d s. T his p u bli c- p ri v ate 

mi x i n tra ns p o rtati o n ha s tra diti o n all y bee n c o nsi dere d a str e n gt h.

T h e Fe d eral G o ve r n me nt’s i n ve st m e nt r ole i n t he tra ns p o rtati o n 

i nfra str uct ure is hi g hl y si g nifica nt. B ut, p u blic s pe n di n g a n d pr o p ert y
1 7

a n d i nc o me ta x la ws ha ve bee n a p plie d u ne q uall y t o differe nt tra n sp ortati o n m o des.

T his reflects a lac k of c o m pre he nsi ve pla n ni n g a n d p olic y o versi g ht at differe nt le vels of g o ver n me nt. Certai n tra ns p o rtati o n m o des 

are hea vil y s u p p orte d i n c o m paris o n t o ot hers. T he dist orti o ns bet wee n 

m o des ha ve bee n partiall y relie ve d b y user c har ges a n d s pecialize d 

ta x i nce nti ves. B ut, t hese de vices ma y ulti matel y a g gra vate t he discri mi nati o n a p par e nt i n G o ver n me nt treat m e nt of tra ns p ortati o n 

ca pital a n d pri vate ca pital i n vest me nts, pr o d uci n g a n a p pare nt i n ve stme nt i m bala nce bet wee n vari o us tra ns p ortati o n m o des a n d bet wee n 

t he p u blic a n d pri vate sect ors.

P u blic atte nti o n n o w ri vets o n t he disarra y i n t he Nati o n’s tr a nsp ortati o n s yste m. T he c urre nt se nse of crisis has s pa w ne d a variet y 

of a d h oc pr o p osals a n d pr o gra ms t o effect i m pr o ve me nts.

T hese meas ures s h o ul d be assesse d a gai nst a bac k gr o u n d of c o nf used a n d i nc o m plete nati o nal tra ns p ortati o n p olic y. W hile s o me 

tra ns p ortati o n iss ues are c o vere d b y e x plicit or i m plicit e xisti n g or 

e v ol vi n g p olicy, t here are ot hers f or w hic h p olicy is u nclear or cl o u de d.

O ne critical area is o b vi o usl y t he esta blis h me nt of a c o nsiste nt 

nati o nal p olic y o n Fe deral s o urces of i n vest m e nt f u n ds f or tra n sp ortati o n.

Ot her fre q ue ntl y cite d fact ors c o ntri b uti n g t o t he se nse of crisis 

i ncl u de c urre nt re g ulat or y practices. S o me tra n s p ortati o n m o des, 

c ust o maril y vie we d as m o n o p olistic or p ote ntiall y m o n o p olistic, are 

hea vil y re g ulate d as t o e ntr y, rates, ser vice, a n d o perati n g pr oce d ures.

Ot hers o perate wit h c o nsi dera bl y less ec o n o mic re g ulati o n. Re g ulat or y i m bala nce bree ds i nefficie ncy a n d ma y ha ve c o ntri b ute d t o 

t he relati ve decli ne of ur ba n mass p u blic tra ns p ortati o n a n d i ntercit y 

rail traffic.

Wit h t he si g nifica nt e xce pti o n of a viati o n, a l o w rate of R. & D. 

e x pe n dit ures has res ulte d i n t he c o nti n ue d use of o bs olete facilities 

a n d t he fail ure t o i ntr o d uce ne w m o des, tec h ni q ues, a n d e q ui p me nt.

M ore o bsc ure iss ues are t he e mer gi n g val ue c o nflicts bet wee n 

tra ns p ortati o n efficie ncy, safet y, a n d e ner g y re q uire me nts o n t he 

o ne ha n d, a n d nati o nal s ocial a n d e n vir o n me ntal pri orities o n t he 

ot her.

Tra diti o n al be nefit-c ost a nal yses d o n ot e nc o m pass all t he ta n gi ble 

ec o n o mic c osts c har gea ble t o t he tra ns p ortati o n s yste m, let al o ne 

q ua ntif y t he ta n gi ble or i nta n gi ble s ocial a n d e n vir o n me ntal gai ns o n 

t he be nefit si de of t he e q uati o n.

T he a d mi nistrati o n see ks t o rectif y t he i ne q uities b y s u p p orti n g a 

wi der a p plicati o n of s o me f or m of user c har ges. Alrea d y a p plie d i n 

a viati o n a n d hi g h wa y pr o gra ms, user c har ges w o ul d be e xte n de d t o 

users of water wa ys i m pr o ve d a n d mai ntai ne d at Fe deral e x pe nse. If 

s o, user c har ges s h o uld be caref ull y str uct ure d t o ma xi mize t he use 

of fe derall y f u n de d i n vest me nts i n l oc ks a n d da ms.

I n m y o pi ni o n, t he mai n iss ue wit h i nla n d water wa ys is n ot t he 

le vel of c u m ulati ve Fe deral e x pe n dit ures o ver a 1 5 0- year s pa n —s o me 

$ 8 billi o n si nce 1 82 4 — n or t he nat ure a n d s o urce of Fe deral f u n di n g 

f or t he c o nstr ucti o n, o perati o n, a n d mai nte na nce of m ulti ple- p ur p ose 

na vi gati o n pr ojects.

Clearl y, all m o des —la n d, air, a n d water — ha ve a r ole t o pla y i n t he 

t otal nati o nal re q uire me nt t o m o ve c o m m o dities a n d pe o ple i nter nall y 

a n d i nter nati o nall y, a n d eac h m o de has u ni q ue a d va nta ge s gi ve n a
1 8

pa rti c ular tra ns p o rtati o n o bj ecti ve. T h e basic pr o ble m lies i n u n ­

pla n ne d, u ne ve n, a n d i nc o n siste nt e x p e n dit ur es f or all m o des.

T h ere h as bee n, hist oric all y; n o Fe deral eff ort t o pr o m ote i nt e grat e d 

m ulti m o d al tra ns p o rtati o n pla n ni n g. T he re has bee n n o l o n g -ra n ge, 

c o m pre h e nsi ve i n v est me nt pla n t o g ui de Fe d eral de v el o p m e nt of 

water wa ys or assista nc e t o ot her m o de s.

G o ver n m e nt al i n stit uti o n s at t he Fe d eral, St ate, a n d l ocal le vels, 

c har ge d wit h de vel o pi n g p olic y a n d i m ple m e nti n g tra ns p o rtati o n 

de v el o p m e nt, d o n ot al wa ys o pe rat e i n a c o m ple m e nt ar y ma n ne r. 

S o m eti m es t heir pr o gra m s are mar ke d b y differi n g criteria a n d 

pr o ce d ure s f or res o u rce all o cati o n a m o n g vari o u s tra ns p o rtati o n 

m o des.

Ea c h m o de’s o ve rri di n g pre occ u pati o n wit h self- pr o m oti o n has 

d o m i nate d t he e v ol uti o n of t he Nati o n’s tra ns p o rtati o n s yst e m. 

Fr e q ue ntl y o verl o o ke d i n t he c o m petiti o n a m o n g tra ns p o rtati o n 

m o d es a n d t heir s u p p orters f or a lar g er slice of t he c o m m ercial pie, 

is t he fa ct t h at water b or ne c o m m erce m u st c o nti n u e t o pla y a n e veri ncrea si n g r ole.

I t hi n k it is s h o rtsi g hte d t o a d dress m ulti m o d al tra ns p o rtati o n 

pla n ni n g i n t he li mite d se nse of rel ati n g it t o t he c o urs e a n d nat ur e 

of ur ba n de v el o p me nt, a n d o verl o o k or mi ni mize t he r ole of water ­

wa y s i n p o p ulati o n re distri b uti o n.

T he water w a ys ha v e o pe ne d f or m erl y is olate d are as t o i nitial c o mmer cial de v el o p me nt. T his o n g oi n g i n d ust rial e x p a nsi o n is vit al t o 

m ai ntai ni n g ec o n o mic gr o wt h.

T h e C or ps of E n gi ne ers s u bs cri b es t o t he c o m pre he n si ve “ p olic y” 

a p p r oa c h, w hic h i n v ol ves all dire ctl y affect e d p u blic i nte rests, t o 

re o r de r t he Nati o n’s tra ns p o rtati o n s yst e m.

T h e c o m ple xit y of t he s yste m ma k es it ver y diffic ult t o f ore cast all 

t he effect s of li mite d p olic y c ha n ges a n d pa n ace as rel ati n g t o i n v est ­

me nt decisi o n s, ta x ati o n, a n d re g ulati o n.

W h e n we m a ke a c ha n ge i nte n d e d t o rectif y s o me i ne q uit y, we fi n d 

it is s o meti me s diffic ult t o c o n vi nce t he be neficiari es t h at t he y a ct u all y 

sta n d t o be nefit. Fr e q ue ntl y t he pri vat e sect or ma k es a dj ust m e nts i n 

t he f or m of l ocati o n a n d i n v est m e nt decisi o ns o n t he basi s of e xisti n g 

p olicies, a n d c ha n ges are resi ste d. T heref ore, i n- de pt h e val uati o n a n d 

pla n ni n g, as well as care f ull y c o nsi dere d p olic y decisi o ns, see m well 

a d vise d.

I belie v e t h at c o nsi deri n g o ne f or m of tra ns p o rtati o n as a n 

alt er nati v e t o a n ot h er is less rel e v a nt t h a n e xa mi ni n g t he ca use s of 

tra ns p o rtati o n c o n g esti o n a n d pr oliferati n g c osts. Hi g h c ost s a n d 

tra ns p o rtati o n b ottle nec ks pa rtl y res ult fr o m def erri n g e x pa nsi o n a n d 

m o der nizati o n of f acilities.

S o t he c or ps is n o w a nal yzi n g na vi gati o n i m pr o ve m e nt s i n ter ms of 

f urt h eri n g t he o bj ecti ve of a n o pti m u m i nl a n d na vi g ati o n s yst e m 

wit hi n t he c o nte xt of a n i nt e grat e d nati o n al tra ns p o rtati o n s yst e m.

T hr o u g h I N S A, o ur i nla n d na vi gati o n s yste m s a nal ysis, we are 

de vel o pi n g a s yste m s a p p r oa c h t o t he ma na ge me nt, o pe rati o n, a n d 

i m pr o ve m e nt of t he i nl a n d wat er w a ys. Rec e ntl y, t hi s st u d y was e xpa n de d t o e nc o m pa ss macr ole v el, m ulti m o dal a nal ysis i n or d er t o 

per mit c or ps pla n ne rs t o ma xi mize t he o p erati n g efficie nc y of t he i nla n d wat er w a ys, o pti miz e t he desi g n a n d sc h e d uli n g of f ut ur e i mpr o ve m e nt s, e val uate t he c o n se q ue nces of s ocial a n d ec o n o mi c c h a n ge s,
1 9

a n d ulti matel y be m ore res p o nsi ve t o p u blic pri orities i n ma ki n g i nvest me nt decisi o ns.

S pecificall y, I N S A will pr o d uce a l o n g-ra n ge sc he d ule of rec o mme n de d na vi gati o n i m pr o ve me nts wit h detaile d i nf or mati o n o n t heir 

l ocati o n, size, c ost, a n d be nefit t o t he o verall U. S. tra ns p o rtati o n 

s yste m. T he pr o gra m will als o e na ble us t o f orecast o ur a n n ual b u d get 

re q uire me nts, if s uc h i m pr o ve me nts are t o be acc o m plis he d.

It is i m p orta nt t hat pla ns f or satisf yi n g t he Nati o n’s c u m ulati ve 

tra ns p ortati o n nee ds be de vel o ped i n a c o m pre he nsi ve ma n ner. 

O b vi o usl y, t his e xte n ds be y o n d t he c urre nt res p o nsi bilities a n d e xpertise of t he C or ps of E n gi neers.

Ne vert heless, we ca n n ot a nal yze i nla n d na vi gati o n o utsi de t he c o nte xt of t he t otal tra ns p ortati o n s yste m, of w hic h i nla n d na vi gati o n is 

a n i nte gral part.

T his c o ncl u des m y state m e nt. M y staff a n d I will be gla d t o a ns wer 

a n y q uesti o ns y o u ma y ha ve at t his ti me. T ha n k y o u.

[ An att ac h m e nt t o Ge neral M orris’ state m e nt a n d t he sli des s h o w n 

d uri n g t he testi m o n y f oll o w:]
2 0

C o m mer ce f o r S el e ct e d I nla n d 

( S h o rt

W at er w a y P r o j e c t s f o r 1 9 7 3 

t o n s )

I L LI N O I S W A T E R W A Y

T o t al t o n s, 4 2, 7 1 8, 5 8 0

P ri n c i p a l c o m m o ditie s:

G r ai n s

P etr ole u m p r o d u cts 

C o al

S a n d, g r a v el a n d c r u s h e d r o c k 

C h e m ic als a n d p r o d u cts

1 1, 5 5 4, 4 0 0

7. 9 1 3. 9 0 0 

7, 1 4 4, 1 0 0 

4, 3 3 8, 8 0 0

3. 1 7 4. 9 0 0

T o t a l t o n - m il e s, 8, 4 5 0, 7 2 7, 8 9 2

MI S S O U RI RI V E R

T o t al t o n s, 6, 3 7 0, 8 3 8

P ri n c i p a l c o m m o ditie s:

S a n d, g r a v e l a n d c r u s h e d r o c k 2, 9 1 1, 7 0 0 

G r ai n s 8 1 6, 5 0 0 

C h e m ic als a n d p r o d u ct s 3 0 7, 6 0 0 

Ce m e nt 1 3 8, 4 0 0 

M ola s s e s 1 0 2, 3 0 0

T o t al t o n - m il e s, 8 8 4, 4 0 5, 9 3 3

M I S SI S S I P PI RI V E R

MI N N E A P O LI S, MI N N., T O MI S S O U RI RI V E R

T o t a l t o n s, 5 8, 0 6 4, 1 9 8

P ri n c i p a l c o m m o ditie s:

G r ai n s

P etr ole u m p r o d u cts 

C o al

C h e m ic als a n d p r o d u ct s 

S a n d, g r a v e l a n d c r u s h e d r o c k 

T o t al t o n - m il e s, 1 0, 8 7 3, 5 7 5, 0 7 7

2 3, 6 4 3, 4 0 0

1 1, 1 1 6, 2 0 0

6, 4 8 3, 2 0 0

4, 5 7 1, 4 0 0

2, 6 9 4, 0 0 0
2 1

I S SI S S I P PI RI V E R

MI S S O U RI RI V E R T O O HI O RI V E R

T ota l t o n s, 6 3, 3 8 5, 8 7 6

P ri n c i p a l c o m m o ditie s:

G ra i n s

C oal

P etr ole u m p r o d u cts 

C he mic al s a n d p r o d u cts 

N o n - m eta llic m i n e ra ls

T ota l t o n - m il e s, 1 0, 4 3 4, 8 2 1, 3 5 8

2 5, 7 0 4, 1 0 0

9, 7 4 2, 7 0 0

8, 9 3 5, 4 0 0

5, 2 5 3, 5 0 0

2, 0 4 5, 0 0 0

M I S SI S S I P PI RI V E R

O HI O RI V E R T O B AT O N R O U G E

T ota l t o n s, 1 0 0, 3 9 5, 6 3 6

P ri n c i p a l c o m m o ditie s:

G ra i n s

P etr ole u m a n d p r o d u cts 

C he mic al s a n d p r o d u cts 

C oal

N o n - m eta llic m i n e r als

T ota l t o n - m il e s, 1 2, 5 8 8, 2 8 9, 2 4 4

O HI O RI V E R

2 7. 3 3 9. 9 0 0

1 7. 6 4 5. 9 0 0 

1 1, 7 4 0, 8 0 0 

1 0, 5 6 7, 6 0 0

3, 7 8 5, 6 7 6

T ota l t o n s, 1 3 5, 7 6 0, 4 7 5

P ri n c i p a l c o m m o ditie s:

C oal

P etr ole u m a n d p r o d u cts 

Sa n d, g r a v el a n d cr u s h e d r o c k 

C he mic al s a n d p r o d u cts 

G ra i n s

6 5, 1 3 6, 8 0 0

2 5, 2 5 1, 3 0 0

1 7. 7 0 4. 1 0 0

1 0. 2 0 1. 1 0 0 

2, 9 8 5, 3 0 0

T ota l t o n - m ile s, 2 9, 9 4 2, 1 9 7, 6 1 1
2 2

A L L E G H E N Y R I V E R

T ota l t o n s, 5, 3 1 7, 3 4 0

P ri n c i p a l c o m m o d itie s:

C o al

Sa n d, g ra v el a n d cr u s h e d r o c k 

P et r o le u m a n d p r o d u cts 

Ir o n a n d s t e e l 

C he mic al s a n d p r o d u cts

T ota l t o n - m il e s, 8 3, 1 0 1, 0 8 7

M O N O N G A H E L A RI V E R

T ota l t o n s, 3 7, 5 9 2, 5 8 4

P ri n c i p a l c o m m o d itie s:

C oal

P etr ole u m a n d p r o d u cts 

Ir o n a n d s t e e l p r o d u cts 

Sa n d, g ra v el a n d cr u s h e d r o c k 

C he mic al s a n d p r o d u cts

T ota l t o n - m ile s, 1, 4 9 4, 8 0 3, 8 9 4

K A N A W H A R I V E R

2, 3 5 1, 1 0 0

1, 7 7 4, 6 0 0

7 3 8, 1 0 0

9 5, 4 0 0

7 0, 0 0 0

2 9, 6 3 4, 5 0 0

2. 5 0 5. 5 0 0

1. 9 5 3. 5 0 0 

1, 5 9 9, 4 0 0

4 0 4, 9 0 0

T ota l t o n s, 1 4, 1 6 9, 3 3 7

P ri n c i p a l c o m m o d itie s:

C oal

C he mic al s a n d p r o d u cts 

Sa n d, g r a v el a n d cr u s h e d r o c k 

P etr ole u m a n d p r o d u cts 

Ce m e nt

T ota l t o n - m ile s, 7 9 6, 2 3 0, 2 4 7

7, 3 2 5, 0 0 0

3, 7 6 9, 7 0 0

1, 4 6 3, 6 0 0

1, 1 0 7, 9 0 0

1 3 5, 9 0 0
2 3

N T U C K Y RI V E R

T ota l t o n s, 7 7 7, 8 9 4

P ri n c i p a l c o m m o d itie s:

Sa n d, g r a v el a n d cr u s h e d r o c k 7 7 2, 3 6 2

T ota l t o n - m ile s, 5 2, 2 8 2, 2 5 2

G R E E N A N D B A R R E N RI V E R S

T ota l t o n s, 1 5, 5 1 7, 3 3 7

* '

P ri n c i p a l c o m m o diti es :

C oal 1 5, 5 1 7, 3 3 7

T ota l t o n - m ile s, 1, 3 9 5, 5 3 7, 0 2 1

* T E N N E SS E E RI V E R

T ota l t o n s, 2 8, 1 7 2, 6 9 6

P ri n c i p a l c o m m o ditie s:

C oal 1 1, 5 7 2, 2 0 0

Sa n d, g r a v el a n d cr u s h e d r o c k 4, 2 8 4, 5 0 0

P etr ole u m a n d p r o d u cts 2, 5 4 2, 4 0 0

C h e m ic al s a n d p r o d u cts 2, 3 9 5, 4 0 0

G ra i n s 1, 8 0 6, 4 0 0

T ota l t o n - m ile s, 3, 9 2 8, 4 9 8, 6 6 0

• C U M B E R L A N D RI V E R

T ota l t o n s, 1 0, 7 6 1, 1 2 0

P ri n c i p a l c o m m o ditie s:

C oal 4, 6 3 1, 8 0 0

N o n - m eta llic m i n e ra ls 2, 6 4 6, 5 0 0

P etr ole u m a n d p r o d u cts 1, 0 7 2, 0 0 0

C he mic al s a n d p r o d u cts 3 4 9, 1 0 0

Ce m e nt 3 0 5, 8 0 0

T ota l t o n - m il e s, 1, 0 5 4, 7 5 3, 5 4 8
2 4

A R K A N S A S RI V E R

T o t al t o n s, 4, 9 5 5, 7 8 9

P ri n c i p a l c o m m o ditie s:

S a n d, g r a v e l a n d c r u s h e d r o c k 

P etr ole u m a n d p r o d u ct s 

G r ai n s

C h e m ic als a n d p r o d u ct s 

I r o n a n d s t e e l p r o d u ct s

T o t a l t o n - m il e s, 3 3 8, 6 2 3, 9 3 5

G U L F I N T R A C O A S T A L W A T E R W A Y

T o t a l t o n s, 1 0 0, 7 6 7, 2 5 7

P ri n c i p a l c o m m o ditie s:

C r u de p etr ole u m 

P etr ole u m a n d p r o d u ct s 

C h e m ic als a n d p r o d u ct s 

M ari n e s h e ll s 

N o n m eta ll ic m i n e r al s

T o t a l t o n - m il e s, 1 6, 5 7 8, 1 0 4, 6 8 5

B L A C K W A R RI O R A N D T O M BI G B E E RI V E R S

T o t a l t o n s, 1 4, 1 0 1, 2 2 3

P ri n c i p a l c o m m o ditie s:

1, 9 9 3, 0 0 0

6 6 0, 4 0 0

5 5 6, 0 0 0

3 6 1, 8 0 0

1 6 1, 3 0 0

2 7, 4 5 6, 3 0 0

2 5. 9 7 7. 8 0 0

1 3. 5 4 1. 8 0 0 

1 2, 7 8 8, 5 0 0

4, 1 8 7, 3 0 0

C o al

I r o n o r e a n d c o n c e n tr a t e s 

P etr ole u m a n d p r o d u ct s 

S a n d, g r a v e l a n d c r u s h e d r o c k 

C h e m ic als a n d p r o d u ct s 

T o t a l t o n - m il e s, 3, 7 2 8, 7 5 0, 2 8 7

5, 5 0 9, 0 0 0

3, 2 1 3, 3 0 0

1, 7 5 5, 7 0 0

1, 0 5 2, 3 0 0

4 1 5, 0 0 0
2 5

A B A M A A N D C O OS A RI V E R S

T ota l t o n s, 2, 1 4 9, 0 0 4

P ri n ci p al c o m m o diti es:

Sa n d, g ra v el a n d cr u s h e d r o c k 1, 8 0 3, 1 0 0

W oo d a n d w o o d p r o d u cts 1 7 7, 0 0 0

G rai n s

3 2, 8 0 0,

T ota l t o n - m il e s, 1 5 1, 3 1 7, 6 3 3

. ’ *

AP AL A C HI C O L A, C H A T T A H O O C H E E A N D F LI N T RI V E R S

T ota l t o n s, 1, 0 2 4, 8 9 0

P ri n ci p al c o m m o diti es:

P et r ole u m a n d p r o d u cts 4 3 3, 0 0 0

Sa n d, g ra v el a n d cr u s h e d r o c k 3 7 3, 7 0 0

C h e micals a n d p r o d u cts 1 3 9, 7 0 0

T ota l t o n - m il e s, 1 2 4, 1 8 9, 2 5 3

A T L A NTI C I NT R A C O AS T A L W AT E R W A Y ( N or f ol k t o Mia mi)

T ota l t o n s, 5, 1 1 4, 0 6 7

, P ri n ci p al c o m m o diti es:

Pe tr ol e u m a n d p r o d u cts 2, 7 1 3, 5 0 0

W oo d a n d w o o d p r o d u cts 9 8 2, 9 0 0

Fr o m Ore 3 0 4, 5 0 0

Ir o n a n d st e e l p r o d u cts 1 9 9, 8 0 0

Sa n d, g ra v el a n d cr u s h e d r o c k 1 9 2, 8 0 0

T ota l t o n - m il e s, 5 9 6, 4 4 7, 6 4 1

5 4- 2 3 9 0 - 7 5



u m be rl a n d l oc k a n d da m, O hi o Ri ver. I n a c o a st al w at er w a y c he mical ba r g e. 0 0 D ar da ne ll e l oc k a n d da m, A r k a n sa s Ri ve r. G ulf i ntr a c o as tal w at er w a y, G al ve st o n, Te x.




3 6

Ge nera l o r ri s . I ha ve wit h me Mr. Ir wi n Reisler of t he P olic y 

Office, a n d Mr. T o m Bla n ki ns hi p, C hief of t he C o nstr ucti o n- O perati o ns Di visi o n.

Se nat or G r a v e l . T ha n k y o u ver y m uc h, Ge neral. It is a ver y fi ne 

state me nt. I ha ve a n u m ber of q uesti o ns. I wa nte d t o wait u ntil y o u 

c o m pleted y o ur st ate m e nt rat her t ha n i nterr u pt.

I w o ul d li ke t o g o bac k t o t he be gi n ni n g of y o ur state me nt. Y o u 

state t hat t he pri nci pal be nefits utilize d t o j ustif y na vi gati o n pr ojects 

are tra ns p ortati o n sa vi n g. Are t hese be nefits calc ulate d o n a s hi p pero nl y basis, or are ot her tra ns p ortati o n nee ds i ncl u de d?

Ge neral M o r ri s . Sir, ot her tra ns p ortati o n nee ds are c o nsi dere d i n 

deter mi ni n g t he sa vi n gs i n tra ns p ortati o n c osts. I t hi n k t he best 

s o urce of s pecific i nf or mati o n w o ul d be secti o n 7(a) of t he De p art me nt 

of Tra ns p ortati o n Act of 1 96 6, P u blic La w 8 9- 6 7 0, w hic h re q uires 

eac h c or ps na vi gati o n st u d y t o esti mate sa vi n gs t o s hi p pers via t he 

c o nsi dere d water wa y, w hic h is meas ure d i n ter ms of t he pr o d uct of 

t he esti mate d water wa y traffic a n d t he esti mate d u nit sa vi n gs t o 

s hi p pers fr o m t he m o ve me nt of t hat traffic via t he water wa y. T he 

u nit sa vi n gs are deri ve d b y c o m pari n g t he rates s hi p pers act uall y 

pa y f or tra ns p ortati o n b y a n y m o de at t he ti me of t he st u d y a n d t he 

rates e x pected t o pre vail o n t he i m pr o ve d water wa y.

S o a ge neral a ns wer t o y o ur q uesti o n is t hat it is i n ter ms of sa vi n gs 

t o t he s hi p pers.

Se nat or G r a v e l . I n c or ps c o nsi derati o n of pr oject alter nati ves, 

are e xisti n g or ne w facilities f or ot her m o des of tra ns p ortati o n ta ke n 

i nt o acc o u nt? H o w muc h i n p ut d oes t he De part me nt of Tra ns p ortati o n 

ha ve i n t he pla n ni n g a n d e val uati o n of na vi gati o n pr ojects? Has 

D O T as ke d f or c o m me nts d uri n g e val uati o n of t he e n vir o n me ntal 

i m pact state me nt ?

Ge neral M o r ri s . Yes. T he De part me nt of Tra ns p ortati o n is 

i n v ol ve d i n t he pla n ni n g a n d t he y are als o gi ve n a n o p p ort u nit y 

t o c o m me nt n ot o nl y o n t he pla n, b ut o n t he e n vir o n me ntal i m pact 

state m e nt. T heir i n p ut is c o nsi dere d bef ore t he pla n or t he i m pact 

state me nt is c o m plete d.

Se nat or G r a v e l . I n disc ussi n g t he Illi n ois Ri ver Water wa y, y o u 

stat e t hat t he a d diti o n of lar ger d u plicate l oc ks has bee n a ut h orize d 

b y C o n gress. Are t hese re place me nt l oc ks or ne w str uct ures? If 

re place me nts, w hat is t he e xact nat ure of y o ur c o n gressi o nal 

a ut h orizati o n?

Ge neral M o r ri s . Yes, sir. T he d u plicate l oc ks pr oject was 

s pecificall y a ut h orize d i n 1 96 2. T his pr oject will pr o vi de f or a n 

a d diti o nal 1 10 f o ot b y 1, 20 0 f o ot l oc k t o be c o nstr ucte d i n se ve n 

e xisti n g l oc k a n d da m facilities.

Se nat or G r a v e l . S t he y are re place me nts f or e xisti n g l oc ks?

Ge neral M o r ri s . N , sir. T he y are a n a d diti o n. T here will be 

d u plicate l oc ks at eac h site. We will ha ve t w o i nstea d of o ne. Sir, 

let me gi ve y o u a little m ore i nf or mati o n o n t hat. T he e xisti n g l oc ks 

are 1 10 b y 6 00 feet. We will a d d, i n a d diti o n t o t h ose alrea d y c o nstr ucte d at eac h site, o ne m ore l oc k w hich will be 1 10 b y 1, 20 0 feet. 

W he n t he e xisti n g pr oject is c o m plete, t here will be t w o l oc ks, o ne 

1 10 b y 6 00 feet a n d a ne w o ne a djace nt t o it, 1 10 b y 1, 20 0 feet.

Se nat or G r a v e l . Wit h res pect t o t he Cr oss Fl ori da Bar ge Ca nal, 

d o y o u a ntici pate ret ur ni n g t o t he P u blic W or ks C o m mittee f or
3 7

a ut h orizati o n of t his pr oject f oll o wi n g t he c o m pleti o n of t he e n vir o nme ntal state me nt ?

Ge neral M o r ri s . We ha ve bee n directe d b y t he c o urt a n d t he 

C o n gress t o pre pare a ne w re p ort o n t his pr oject. W he n c o m plete d, t he 

re p ort will be f or war de d t o t he C o n gress f or s uc h acti o n as it c o nsi ders 

a p pr o priate.

Se nat or G r a v e l . Ho w s o o n?

Ge neral M o r ri s . Sir, we were i nstr ucte d b y t he j u d ge t o ret ur n 

t o hi m o n t he first of Ma y wit h a st at us re p ort. We di d t hat. I n t hat 

re p ort, we re q ueste d a ut h orit y t o c o nti n ue t he re p ort pre parati o n 

t hr o u g h Se pte m ber of 1 97 6. We are a waiti n g his decisi o n.

If he a p pr o ves o ur rec o m me n dati o n, we w o ul d pr o ba bl y get a re p ort 

t o t he C o n gress s o meti me t o war d t he e n d of c ale n dar year 1 97 6. If 

t he j u d ge directs us t o ta ke w hate ver we ha ve a n d s u b mit it as s o o n 

as p ossi ble, we w o ul d, of c o urse, ha ve a re p ort t o y o u m uc h s o o ner. 

S o t he ulti mate a ns wer t o y o ur q uesti o n de pe n ds u p o n t he j u d ge’s 

decisi o n.

Se nat or G r a v e l . L o o ki n g t o pa ge 9, l oc k a n d da m re place me nt 

w hic h, as y o u k n o w, is q uite a v olatile iss ue, y o u state t hat s o me 

pla n ne d i m pr o ve me nts w o ul d re q uire a d diti o nal c o n gressi o nal a ut h orizati o n. C o ul d y o u e nlar ge u p o n t he state me nt? W hic h l oc k a n d da ms, 

a n d d o y o u re gar d t he c o n gressi o nal a ut h orizati o n as P u blic W or ks 

C o m mittee a ut h orizati o n or A p pr o priati o ns C o m mittee?

Ge neral M o r ri s . Sir, t his iss ue is n ot clear at t his partic ular 

m o me nt beca use of t he sit uati o n ass ociate d wit h t he re place me nt of 

l oc ks a n d da m 2 6 o n t he Mississi p pi Ri ver. T here is a stat ute, c o mm o nl y referre d t o as t he 1 90 9 ?ct w hic h a ut h orizes t he Secretar y of 

t he Ar m y t o rec o nstr uct na vi gati o n w or ks, w he ne ver, i n his j u d g me nt, 

t he c o n diti o ns of t he w or k re q uire s uc h acti o n. He ma y i ncl u de s uc h 

m o dificati ons as are necessar y t o pr o vi de a de q uate facilities f or e xisti n g na vi gati o n, pr o vi di n g t he m o dificati o ns c o nf or m t o si milar w or ks 

i n a n e xisti n g a n d c o n gressi onall y a ut h orize d pr oject.

U n der t hat a ut h orit y, we ha ve, as I me nti o ne d i n m y state m e nt, 

re place d 1 6 l oc ks a n d da ms. Ei g ht ot hers o n t he O hi o are n o w bei n g 

re place d. Ot her re place me nts are u n d er preli mi nar y c o nsi derati o n.

I n A u g ust of 1 97 4, t he Atc his o n, T o pe ka & Sa nt a Fe Railr oa d, i n 

c o nj u ncti o n wit h e n vir o n me ntal or ga nizati o ns, i ncl u di n g t he Iza k 

Walt o n Lea g ue c halle n ged t hat a ut h orit y a n d t he de gree of c o mplete ness of t he e n vir o n me ntal i m pact state me nt o n l oc ks a n d da m 

2 6. T he c o urt u p hel d t he plai ntiffs t o t he e xte nt t hat we ha d t o re vie w 

t he EI S, a n d t he j u d ge r ule d t hat t he 1 90 9 Act d oes n ot pr o vi de t he 

necessar y a ut h orit y t o e ntirel y re place a l oc k a n d da m.

T he Secretar y of t he Ar m y, writi n g t o t he P u blic W or ks C o m mittee 

earlier t his year, state d t hat he ha d al wa ys i nte n de d a n d still i nte n ds 

t o o perate f ull y wit hi n t he la w; t hat he c o nsi dere d t he 1 90 9 Act a deq uate a ut h orit y; a n d t hat t he i nte nt of C o n gress ha d bee n clearl y 

e x pressed b y t he a p pr o priati o ns acti o ns, a n d s o f ort h.

H o we ver, t he Secretar y of t he Ar m y di d i nte n d, i n t he case of l ocks 

a n d da m 2 6, t o u p date t he EI S, as t he c o urt ha d or dere d, t o s u b mit 

a re p ort t o t he a p pr o priate a ut h orizi n g c o m mittees later t his year 

wit h a re q uest t hat t he y reaffir m his a ut h orit y t o pr ocee d wit h replace me nt of l oc ks a n d da m 2 6.
3 8

at decisi o n, w he n it is f ort hc o mi n g, will, I pres u me, res ol ve t he 

m atte r of a ut h o rit y u n der t he 1 9 0 9 Act. U ntil t h at has bee n acc o mplis he d a n y maj or l oc k a n d da m re plac e m e nt will be pre se nte d t o t he 

P u blic W or ks C o m mitte e at a n a p pr o priat e ti me.

If t he re are a n y ne w s yste m s, of c o urse, we w o ul d re q ue st a ut h or ­

izati o n f or t he p r oj ect as we di d i n t he case of t h e Illi n ois, a b o ut w hic h 

y o u a s ke d earlier, a n d, i n t he p ast, t he M c Clell a n- Kerr Ar ka n sas Ri ve r 

pr oject, a n d s o f ort h.

Se nat or G r a v e l . T h a n k y o u. I t hi n k t h at a ns w ers se v eral q ue sti o ns I ha d.

O n pa ge 1 1, y o u disc us s y o ur $ 1 5 0 milli o n bac kl o g f or dre d gi n g 

mai nt e na nce. O ver t he yea rs i n w hic h t his bac kl o g has bee n i ncrea si n g, ha v e y o u re q ueste d a d e q uate f u n d s i n y o u r a n n ual b u d g et req u est a n d has 0 M B c ut d o w n o n mai nte na n ce dre d gi n g pri o r t o 

t he s u b missi o n of y o ur b u d g et t o t he A p pr o priati o n s C o m mitte e?

Ge n eral M o r ri s . Sir, t he fiscal ye ar 1 9 76 b u d get s u b missi o n w hic h 

is n o w bef or e t he A p pr o priati o n s C o m mittee i ncl u des t he c or ps’ 

re q ue st f or mai nte na n ce f u n di n g. I n fact, it was s u p ple me nte d b y 

t he Office of Ma na g e m e nt a n d B u d g et o n its wa y t o t he C o n gress 

s o t h at t he m o n e y i n t he 1 9 76 b u d g et will materiall y i m p r o v e t he 

mai nt e na nce sit u ati o n. B u t it is n ot s ufficie nt t o c o m pletel y re m o ve 

t he bac kl o g.

Of c o urse, t here is s o me q ue sti o n w h et h er we c o ul d c o m plet el y 

re m o ve t he e ntire bac kl o g i n 1 fiscal year, e ve n if t he m o n e ys were 

a vaila ble, beca u se t he bac kl o g f or all 0. & M. acti vitie s n o w is i n t he 

$ 2 0 0 milli o n area. We d o e x p ect t o ta k e a bi g bite o ut of t h at wit h 

t he fiscal y ear 1 9 76 f u n ds, if t he y are a p pr o pri ate d b y t he C o n gr ess.

I n fiscal ye ar 1 9 7 5, t her e is a s u p ple m e ntal acti o n u n der c o n si derati o n, w hic h w o ul d gi ve us a d diti o nal m o ne y. I belie v e it is i n t he 

vici nit y of $ 4 8 milli o n. H o w e ver, t h at will n ot si g nific a ntl y re d uc e 

t he mai nt e na nce bac kl o g. It will o nl y gi ve us m o n e y t o acc o m plis h 

critical mai nt e na nce t his y ear w hic h is es se ntial t o kee pi n g o ur maj or 

p orts a n d wat er w a ys i n reas o na ble o p erati n g c o n diti o n.

Se nat or G r a v e l . C o ul d y o u gi ve us a n e val uati o n of t he differe nc e 

bet wee n i n- h o use dre d gi n g a n d pri vate dre d gi n g?

Ge n eral M o r ri s . Yes, sir. Sir, it is o ur p olic y —it is t he p olic y of 

t he C hie f of E n gi ne ers —t o assi g n t o pri vat e dre d gi n g i n d ust rie s t he 

ma xi m u m a m o u nt of w or k f or w hic h t he y ha v e t he ca pa bilit y w he n 

t heir c osts f or d oi n g t he w or k are reas o na ble a n d a d e q uate i n 

li g ht of t he G o ver n m e nt esti m ate or t he G o ver n m e nt ca p a bilit y t o 

perf or m t he w or k.

I n t he case of i n d ustr y dre d gi n g, t her e are n u m er o us pri vatel y 

o w ne d dre d ges i n o perati o n a n d t he a m o u nt of w or k w hic h t he y d o 

i n o n g oi n g w or k a n d i n ne w c o n str ucti o n has gra d u all y rise n o ver t he 

yea rs t o w her e t he y c ollecti vel y d o a b o ut 6 5 perce nt of t he t ot al 

dre d gi n g pr o gra m, i ncl u di n g a b o ut 9 0 per ce nt of t he ne w w or k 

dre d gi n g.

I n t he h o p pe r dre d g e area, t he h o p pe r dre d g e vessel s are ocea n 

g oi n g a n d are re q uire d t o m ai ntai n a n d i m pr o ve t he e ntr a n ce c ha n nels 

t o o ur maj or p orts a n d har b or s. T h ere are n o h o p per dre d gers i n t he 

i n d u str y dre d ge fleet at t he pre se nt ti me. S o all of t h at w or k is d o ne 

b y t he Fe d eral fleet. I n d u str y is a n xi o us, of c o urs e, t h at as m uc h 

as p ossi ble of t he dre d gi n g w hic h we are c urre ntl y perf or mi n g wit h 

h o p p er dre d ges be t ur ne d o ver t o pri vate i n d ust r y. We a gree a n d we
3 9

are pre se ntl y re vie wi n g all h o p per dre d ge assi g n m e nts t o see if s o me 

of t his t y p e of w or k ca n be perf or m e d efficie ntl y wit h pri vatel y 

o w ne d pi peli ne dre d g es.

T h e p oi nt I a m tr yi n g t o ma k e is t h at t he Fe d eral G o ver n m e nt 

has a ver y si g nific a nt r ole i n h o p per dre d gi n g; a n d a lesser r ole i n 

pi peli ne dre d gi n g. I n b ot h cases, o ur r ole is di mi nis hi n g i n fa v or of 

pri vate i n d u str y w hic h is reall y t he A me rica n wa y of letti n g t he 

ca pitalisti c s yste m w or k w he n it ca n a n d will. We are e nc o ur a gi n g 

a n d assisti n g pri vate e nt er p rise i n t he dire cti o n of ass u mi n g a r ole i n 

t he h o p per dre d gi n g area.

Se nat or G r a v e l . I w o n der if we mi g ht recess f or a fe w mi n utes. I 

ha v e a fe w m or e q ue sti o ns. Als o, I w o ul d li ke t o get ba c k t o visit 

wit h y o u.

Ge n eral M o r r i s . Certai nl y.

Se nat or G r a v e l . We will n o w be i n recess f or 5 mi n utes.

[ Brief recess.]

Se nat or G r a v e l . T h e heari n g s will c o me bac k t o or de r.

T h a n k y o u ver y m uc h, Ge n eral.

T his is a ge neral q uesti o n g oi n g t o t he p hil os o p h y be hi n d t he c o n ce pt 

of a first-cla ss water s yst e m f or t he Nati o n. W hat f ut ur e p ossi bilities 

d o y o u see f or water e x pa nsi o n o ve r t he pre se nt a ut h oriz e d pr ojects 

t h at y o u ha v e me nti o ne d ?

Ge n eral M o r ri s . Sir, I ha v e se v eral ma ps wit h me. T w o are t he 

sa m e. T h e o utsi d e ma ps are t he pr es e nt water w a ys. T h e o ne i n t he 

mi d dle has o n it t he little pieces t h at mi g ht be e xte nsi o ns.

T o a ns w er y o ur q ue sti o n, as t he te xt of m y re m ar k s i n dicate, 9 5 

per ce nt of w hat w o ul d be a fairl y g o o d t otal s yste m, 9 5 perce nt of t he 

li ne ar le n gt h, n o w e xists. S o t he e xte nsi o n, i n ter ms of water wa y mile ­

a ge, w o ul d be rel ati v el y mi n or. B ut t h os e e xte nsi o ns c o ul d d o s o me 

e xciti n g t hi n gs. T h e y c o ul d i nter c o n n ect water w a ys a n d ma ke t he 

t otal s yste m c o n si de ra bl y m ore efficie nt.

T h ere are pra ctic al li mits t o h o w far na vi g ati o n ca n be e xt e n d e d 

p h y sicall y. O ne of t he t hi n gs t h at I t hi n k w o ul d be q uite be neficial, 

w o ul d be if y o u c o ul d c o n nect t he O hi o Ri ver wit h t he Gre at L a ke s i n 

s o me fas hi o n. B ut t hi s pr o ble m of n ee di n g a n d pre ser vi n g a first- class 

water s yste m bri n g s me i nt o t he q uesti o n of pri o riti es, of t a ki n g w h at 

we n o w ha ve a n d ma ki n g it as efficie nt as p ossi ble; a n d, sec o n d, t he 

a d d- o n.

T h e p oi nt I w o ul d reall y li ke t o ma ke is o ne w hic h I t hi n k is ver y 

basic i n t he cases of t he Fe der al hi g h wa y s yste m a n d, at s o me p oi nt 

i n t he pa st, t he rail a n d air s yste m s. We ha d pla n s w hic h wer e c o m pl ete 

i n eac h case a n d t he nati o nal o bj ecti ve was t o de vel o p t he se pla n s. 

We we nt a b o ut t he b usi n ess of d oi n g it.

We b uilt t he water w a ys i n a piece meal fas hi o n. E v er y ne w piece 

bec o m es m ore diffic ult b eca u se of t he ec o n o mi c tests we h a v e t o a p pl y. 

T o m y wa y of t hi n ki n g, we nee d t o ha v e a n o pti miz e d water tra ns ­

p o rtati o n s yste m w hic h will bec o me a nati o nal o bj ecti ve. We w o ul d 

t he n g o a b o ut t he b usi n ess of pr o vi di n g it bec a use t he Nati o n nee d s 

it a mi eli mi nate, or at le ast re d uc e, s o me of t he m ar gi nal te sts t h at are 

a p plie d t o it.

T o be m ore s pecific or t o s u m marize it, i n a ns w er t o y o ur q ue sti o n, 

t he e xte nsi o ns t o t he pre se nt li n ear s yste m w o ul d be q uite s h ort i n 

dist a nc e. S o me of t h e m w o ul d be v er y effecti v e i n m a ki n g o ur w ate r w a y 

s yst e m m or e efficie nt, b u t o ur pri orit y s h o ul d be o n ta ki n g w h at we
4 0

alre a d y ha v e c o n str uct e d a n d ma ki n g it o p erate as efficie ntl y as 

p ossi ble.

Se nat or G r a v e l . I n oti ce y o u ha v e a n e xte nsi o n i n M o nta n a.

Ge n eral M o r ri s . Y es, sir. T he se e xte nsi o ns, I s h o ul d p oi nt o ut, are 

se g me nts w hic h we ha v e bee n as ke d t o st u d y a n d n ot nece ssaril y se gme nts w hi c h w o ul d be fe asi ble. T he si x m ai n d a ms o n t he m ai n ste m of 

t he Miss o uri alr ea d y pr o vi de a de q u ate d e pt h e xce pt f or p o ssi bl y a b o ut 

2 0 0 miles. I d o n’t k n o w, ma y b e 1, 2 0 0 miles of ri ve r e xc e pt f or w here 

t he da m s are.

T h ere i s n’t a n y c o m m erce t o s pe a k of i n t h at a rea. S o t h e ec o n o mic 

j ustifi cati o n bec o mes ver y i m p o rta nt. I w o ul d p u t t hi s pr o p ose d e xte nsi o n a m o n g t h os e p ossi ble e xte nsi o ns w hic h are mer el y p h y sicall y 

p ossi ble. It w o ul d ha v e a rel ati vel y l o w c ha nc e of bei n g c o nst r ucte d.

Se nat or G r a v e l . Yo u state: “ User c har ges s h o ul d be str uct ur e d 

t o ma xi mi ze t he use of fe derall y f u n d e d i n v est me nts i n l oc ks a n d 

da ms.”

W hat d o y o u me a n b y t h at state m e nt?

Ge n eral M o r ri s . W hat I mea n t he re, sir, is t h at f u n ds w hic h are 

c ollecte d t hr o u g h a u ser c har ge s yste m, if o ne is esta blis he d, s h o ul d be 

ret ur ne d t o t he water w a y tra ns p o rtati o n s yste m f or its i m pr o ve m e nt, 

o pe rati o n a n d m ai nte n a nc e. Hist oricall y s p ea ki n g, I t hi n k t h at was t h e 

ori gi nal i de a be hi n d c olle cti n g i m p o rt d utie s at o ur maj or p orts. B ut, 

beca use of s u bs e q ue nt la ws a n d i nter pr etati o ns, t h at m o ne y is n ot 

nece ssaril y bei n g rei n veste d i n its s o urc e. If user c har ges are c ollecte d 

fr o m t he u sers of water w a ys a n d l oc ks a n d da m s, it w o ul d be desira ble 

f or t he m o ne y t o be i n v este d i n i m pr o vi n g t h os e str uct ur es.

Mr. Rei sler br o u g ht u p a n ot h er p oi nt, sir, t h at is, if it d oe s n ot w or k 

o ut t his w a y —t o m a xi mize t he use of t he f ull y f u n de d l oc ks a n d d a m s — 

b y ret ur ni n g t he fees t o t h ose str u ct u re s, t he i n vest m e nts t h at we ha ve 

alr ea d y ma de w o ul d be mi ni miz e d or t h eir effects w o ul d at lea st be 

re d u ce d t o a certai n e xte nt d ue t o t he l oss of traffic as t he s yste m 

beca me less efficie nt.

Se nat or G r a v e l . I t hi n k, Ge n eral, we ma y ha v e t o t hi n k i n ter ms 

of a tr ust f u n d f or wat er. All of t he m o ne ys c olle cte d — as I u n derst a n d 

it, c or rect me if I a m wr o n g —all g o t o t he ge neral tre as u r y. T h e o nl y 

wa y y o u ca n r ealiz e t he c o nc e pt of r et ur ni n g w ate r w a y use r fees t o t he 

s o urc e w o ul d be t hr o u g h a t otal tr ust f u n d c o nc e pt.

Ge n eral M o r ri s . Sir, t h at w o ul d certai nl y be o ne wa y. I d o n ot 

k n o w if t he la ws c o ul d be str uct ure d t o i de ntif y w her e t he m o n e y 

w o ul d be ret u r n e d ot h er t ha n t hr o u g h t he ge n eral tre as ur y.

Se nat or G r a v e l . We h a v e bee n a d v o cati n g a tr ust f u n d c o n ce pt f or 

e ner g y i n t he Fi na nc e C o m mitte e f or a b o ut 3 yea rs n o w. It has al wa y s 

bee n o p p ose d b y t he Tr ea s ur y a n d s ucce ssf ull y t h u s far.

Y o u are a ware of w h at t he e ner g y crisi s is a n d t he i n ertia be hi n d 

t h at. We ca n ma ke it t his ye ar. B ut if we d o we will bar el y ma ke it 

o ver t h e o p p ositi o n of t he Tr ea s ur y w hic h d oes n ot li ke t o see d e di cat e d 

f u n d s. Als o, we ha v e a pr oliferati o n of tr u st f u n ds i n t he tra ns p o rtati o n 

area, bec a use we will ha v e t he tr u st f u n d i n t he hi g h wa y, tr ust f u n d 

i n air a n d b y d e vel o pi n g a tr ust f u n d i n water, we mi g ht h o p ef ull y get 

t o t he p oi nt w here we c o ul d c o m bi ne all of t he tr ust f u n ds i nt o o ne f or 

tra ns p o rtati o n.

I d o n’t t hi n k we a re q uite m at u re e n o u g h at t hi s p oi nt. Ma y b e i n a 

fe w yea rs.
4 1

W hat li mitati o ns d o y o u t hi n k t he c or ps has i n creati n g i m pr o ve d 

p ort facilities or d o y o u ha ve a n y?

Ge neral M o r ri s . I a m n ot a ware t hat t he li mitati o ns are a n y 

greater f or p ort de vel o p me nt t ha n f or t he i nla n d water wa ys. Y o u sai d 

p orts?

Se nat or G r a v e l . P orts.

Ge neral M o r ri s . T here are p h ysical li mitati o ns t o t he c haract eristics of o ur la n d mass, w hic h are s uc h t hat we j u st ca n n ot ha ve a n y 

dee p p orts —c o m para ble t o i nter nati o nal dee p p orts of 1 40 t o 1 45 

feet — wit h o ut e x pe n di ng a l ot of w or k o n t heir de vel o p me nt a n d 

mai nte na nce.

T here are c o u ntries w hic h p ossess nat ural p orts wit h nat ural de pt hs 

of u p t o 1 00 feet. T he p h ysical c o nstrai nts o n o ur ha n dli n g dee p draft 

vessels are maj or. T here are fe w places we ca n utilize, per ha ps o nl y 

P u get S o u n d a n d, I g uess, Sa n Die go. A n ot her c o nstrai nt is t he hi g h 

pr o p orti o n of n o n- Fe deral i n vest me nt f u n ds f or p orts. As I me nti o ne d, 

t he l ocal i nterests m ust pa y f or t he bert hi n g facilities a n d t he e gress 

ite ms. I g uess t hat m y c o ncl usi o n is t hat t he bi g gest c o nstrai nt is 

reall y p h ysical, b ut fi na ncial c o nsi derati o ns als o pla y a r ole.

Se nat or G r a v e l . I t here a n y c ha nce t hat ma y be we c o ul d —as I 

u n dersta n d it, t he c or ps res p o nsi bilit y e n ds i n fr o nt of t he d oc k. Ca n 

we e x pa n d ma y be t hr o u g h le gislati o n t he res p o nsi bilit y of t he c or ps t o 

ha n dle t he w h ole p ort de vel o p me nt as we d o air p ort de vel o p me nts 

a n d t ur n ar o u n d a n d lease or re nt t o t he pri vate sect ors s urface areas 

of t he p ort?

Or d o it t hr o u g h l ocal a ut h orit y wit h Fe deral assista nce?

I k n o w i n Alas ka we ha ve wit h s o me diffic ult places li ke J u nea u 

w here we ca n’t reall y get t he res o urces t o bri n g i n a re n o vati o n a n d 

ac q uire t he pr o per d oc k facilities.

T he o nl y e xce pti on i n Alas ka t o t hat is A nc h ora ge.

Ge neral M o r ri s . Fr o m a n e n gi neeri n g sta n d p oi nt, I feel we ha ve 

t he c o m pete nce t o d o it. Fr o m a n i nstit uti o nal sta n d p oi nt t here are 

ma n y ot her c o nsi derati o ns. I n a de vel o pi n g area s uc h as Alas ka, it is 

s ort of a c hic ke n a n d e g g sit uati o n. Y o u c o ul d ha ve t he c o m mercial 

i m pet us f oll o wed b y t he de vel o p me nt; or, if y o u ha d t he p ort de vel o pme nt, y o u c o ul d s u p p ort t he c o m merce. Circ u m sta nces i n Alas ka are 

s o me w hat m o difie d si nce we ha ve a n e xisti n g State or i nstit uti o nal 

str uct u re t o fi na nce a n d ma na ge t hese p ort facilities.

I t hi n k I s h o ul d j ust rest m y a ns wer o n t he fa ct t hat, fr o m a n e ngi neeri n g sta n d p oi nt, we w o ul d certai nl y feel c o m pete nt t o u n derta k e 

lar ge-scale p o rt de vel o p me nt, if t hat is i n t he nati o nal i ntere st * * *.

Se nat or G r a v e l . T ha n k y o u ver y m uc h, Ge neral. I ha ve n o f urt her 

q uesti o ns. Se nat or Mc Cl ure has j oi ne d us a n d he has a n u m ber of 

ite ms he w o ul d li ke t o p urs ue. I w’ill t ur n t he heari n gs o ver t o hi m.

If y o u w o ul d c hair t he heari n g, Se nat or Mc Cl ure, 1 will st a y f or a 

fe w m o me nts.

Se nat or M l u r e [ presi di ng]. T ha n k y o u ver y m uc h, Se nat or.

Ge neral M orris, I wa nt t o j oi n w’it h m y c ollea g ue i n welc o mi n g y o u 

bef ore t he c o m mittee. T here are se veral ite ms I wa nt t o as k s o me 

q uesti o ns a b o ut, b ut o ne t h at is of partic ular c o ncer n t o t he pe o ple of 

m y State.

T o s ketc h t he bac k gr o u n d j u st a little, t he c or ps h as o ver t he years 

ha d res p o nsi bilit y wit h re gar d t o na vi ga ble waters, t hat defi niti o n of
4 2

na vi g a bilit y was a rat h er r est ricti v e defi niti o n. T hat is, it li mite d t he 

n u m b ers of water s o ve r w hic h t he c or p s act uall y e xercise d a ut h orit y 

u n der t he 1 8 9 9 Act.

M o re rec e ntl y t h at defi niti o n of na vi g a bilit y was c ha n ge d a n d 

gr eatl y i ncr eas e d t he res p o nsi bilit y of t he c or p s wit h res pect t o w h at 

ha d n ot b ee n c o n cer n s of t he c o r ps u p u ntil t h at ti me.

I refer, of c o ur se, t o t hi n gs li ke t he d oc ks o n la kes, t he sea w alls 

t h at mi g ht be c o nstr u cte d b y a ca bi n o w n er o n a s u m m er res ort are a, 

o n t he la ke s h ore.

La st ye ar I i ntr o d uc e d le gi slati o n w hic h w o ul d per mit t he c or ps t o 

ce de j uris dicti o n t o a St ate w her e t he St at e ha d a n a p pr o p riate 

pr o g ra m f or o ver seei n g a n d iss ui n g per mits o n t h at ki n d of e nc r oa c hme nt u p o n t he water wa y w here it di d n ’t i nt erf ere wit h t he na vi g abilit y of t he water w a y.

Si nce t h at ti me t he re g ulati o ns u n der t he Fe d eral W ate r P oll uti o n 

C o ntr ol Act ha ve r at he r br oa de n e d t he c or ps’ j uris dicti o n be y o n d t he 

pr o ble m we were di sc us si n g at t his ti me la st year.

It see ms t o m e t h at t he c or ps ha s n o w bee n c har ge d wit h a re s p o nsibilit y w hic h is r at he r u ni q ue a m o n g Fe d eral a ge ncies. I n t he air p oll uti o n c o ntr ol fiel d a n d ot h er p ha ses of water p oll uti o n, St ate a ge nci es 

are per mitte d t o be ar a l ar ge pa rt of t he b ur d e n of t he da y-t o- d a y e nf orc e me nt w here t he i m p act u p o n n ati o n al res o urce s is ver y sli g ht a n d 

t he sc o p e of t he pr o ble m is ve r y s mall.

T h e c or ps, it see m s u n d er t hes e t w o c ha n ge d circ u m sta nce s wit hi n 

t he last 2 yea rs, n o w fi n ds its res p o n si bilitie s gr eatl y i ncr ease d. I n 

fact, I ca n’t c o ncei ve of a n y water a n y w he re t h at if a n y b o d y p uts a 

str uct ure i nt o it, p uts a str u ct u re o n it, t he c or p s is n ’t r es p o nsi ble f or 

det er mi ni n g w het he r or n ot t her e is s o me i m pi n g e m e nt u p o n t he p u blic 

g o o d.

W o ul d y o u care t o c o m me nt o n t he c or p s feeli n g a b o ut t he e xte nt 

of t h at b ur de n?

Ge n eral M o r ri s . Yes, sir. I s h o ul d i nt r o d uce Mr. He de m a n. He is 

is o ur e x pert i n resi d e nce o n all m atters deali n g wit h t his s u bject. I 

will tr y t o gi ve y o u a la y ma n’s a n s wer, alt h o u g h I ma y call o n hi m.

As t he pr o gra m ma na g er, I w o ul d li ke t o st art b y sa yi n g t h at t he 

res p o nsi bi itie s of t he C or ps of E n gi n eer s i n t he re g ulat or y f u n cti o ns, 

pa rti c ularl y i n t h e per mitt or y f u n cti o n t o w hic h y o u ha v e refe rre d, 

ha v e bee n ma g nifie d wit hi n t he last fe w wee ks. I w o ul d e x p ect a b o ut 

a h u n dre df ol d.

Se nat or M l u r e . I w o ul d t hi n k t h at w o ul d be a ver y m o dest 

esti mate.

Ge n eral M o r ri s . We di d a little c hec k, f or e xa m ple, i n t he State of 

Ne bra s ka. U n der o ur ot h er defi niti o n w hic h I re c o g niz e y o u c o nsi de re d 

t o o e x p a nsi ve, we ha d a t ot al of 2, 3 0 0 miles of water t o re g ulate. B ut 

u n d er t he ne w br o a de ne d defi niti o n, we are u p t o 2 3, 0 0 0 a n d t h at 

d oes n ot i ncl u de all t he la ke s of w hi c h t here are h u n dre d s a n d h u n dre d s 

i n t he St at e of Ne b ras ka.

Ne br as k a c o ul d be a si m pler St at e t h a n ma n y. Per ha p s, if y o u will 

bea r wit h me, I will r u n t hr o u g h s o me t hi n gs t h at ha v e gra d u all y 

e v ol v e d a n d t h at affe ct o ur r es p o nsi bilitie s.

T h e ol d 1 8 9 9 A ct reall y sta rte d off as a de vic e t o i ns u re t h at p e o ple 

di d n ot b uil d t hi n gs w hic h w o ul d c o nstit ut e a n o bstr u cti o n t o na vi g ati o n. T h at was o ur c o ncer n.
4 3

If y o u will all o w me a pers o nal n ote, I re m e m ber t he first j o b I 

ha d i n t he C or ps of E n gi ne ers ma n y yea rs a g o, was t o ha v e a p u blic 

heari n g t o iss ue a p er mit. T h e w h ole t hi n g t o o k a b o ut 3 h o u rs a n d t he 

ma n ha d his per mit.

As ti me h as pass e d a n d t he i nt er est i n pre ser vati o n of w etl a n d s a n d 

t he nee d f or water q u alit y c o ntr ol has gr o w n, we ha ve f o u n d t h at, 

b y virt u e of c o urt test s, o ur o w n d ecisi o n s a n d ne w st at ut es t he d efi niti o n u n der t he 1 8 9 9 Act has gra d u all y bee n e x p a n d e d t o n ot o nl y 

i ncl u de ri vers w hic h are na vi ga ble b u t t h ose w hic h ne v er wer e na vi ga ble 

a n d t h os e w hic h c o ul d be na vi ga ble wit h a r eas o na ble i n ve st m e nt a n d 

all of t he ti dal wat ers of t he U nite d States.

All of t h ose fact ors of t he defi niti o n are ver y s u bsta nti v e a n d all 

ver y well esta blis he d b y c o urt decisi o ns. As a res ult of t h at al o ne we 

ha d i ncre ase d w hat was a mi ni mal staff of a p pr o xi m atel y 5 0 or 6 0 

pe o ple t hr o u g h o ut ci vil w or ks t o a p p r o xi m atel y 3 0 0, a n d t he n u m b er 

of p er m it a p plicati o n s r ose per ha ps 1, 5 0 0 t o 2, 0 0 0 u p t o 2 0, 0 0 0.

T h at is w here we were a y ea r a g o. We m a de a s ur v e y of t he c o u ntr y 

a n d we f o u n d t h at m a n y St ate s w ere u nc o mf orta ble wit h o ur r ole, b u t 

t he 1 8 9 9 Act di d n ot gi ve t he C or ps of E n gi ne ers or t he Sec ret ar y of 

t he Ar m y a n y a ut h orit y t o del e gate t hese decisi o ns t o t he States.

I m et wit h t he pe o ple fr o m y o ur St at e as well as ma n y ot he r W est er n 

St ate s o n t his. We p olle d all t he G o v er n ors. Fr a n kl y, t he defi niti o n 

t h at I recite d has b ee n n ot t o o c o m f ort a ble.

H o w e ver, it is o ne w hic h I t h o u g ht we c o ul d li ve wit h.

W h e n t he a m e n d me nts t o P u bli c La w 9 2- 5 0 0 were pass e d i n 1 9 7 2, 

t here a p p ear e d t o be n o q ue sti o n t h at t he C o n g ress i nt e n de d t h at all 

t he water s of t he U nite d St at es be p olice d b y s o me o ne t o kee p t he m > 

fr o m bei n g p oll ute d.

T h e q ue sti o n was reall y w h o was g oi n g t o d o t he j o b; t h at is w hic h 

Fe d eral a ge n c y was g oi n g t o d o t he j o b?

O ur feeli n g was t h at t he 1 8 9 9 Act cl osel y ass o ciat e d us wit h na vi g ati o n, t h at all ot h er water s s h o ul d be re g ulate d b y s o me o ne else. T ha t 

was t he iss ue i n t he c o urt case i n w hic h we were rec e ntl y i n v ol ve d.

T he decisi o n was c o ntra r y t o o ur p ositi o n. I n ot h er w or d s, t he d ecisi o n was t h at: ( 1) It was t he i nt e nt of t he C o n gr ess t h at all waters be 

re g ulate d t o pr e v e nt p oll uti o n fr o m dre d ge d or fill material; a n d ( 2) 

t h at t he C o r p s of E n gi n eer s h a d t he re s p o nsi bilit y t o d o t he w h ole j o b, 

n ot j u st a pa rt of it.

We w ere n ot o nl y t ol d t h at is w hat t he la w m ea nt, b u t we were gi ve n 

a rel ati vel y s h ort peri o d of ti m e t o d o s o m et hi n g a b o ut it.

C o nse q ue ntl y, o n t hi s pa st T u es d a y, M a y 6, we p u blis h e d i n t he 

Fe d eral Re giste r a n a n n o u nc e m e nt of a re g ulati o n w hic h set s bef ore 

t he pe o ple of t he c o u ntr y f o ur alt er n ati ve s f or i m ple me nti n g t he decisi o n w hic h w o ul d affect t he i nte nt of C o n gr ess.

We i nt e n d t o gi ve t h at fairl y wi de distri b uti o n. We ha v e n otifi e d 

t he St ate s dire ctl y. It has bee n i n t he pa p ers, of c o urse, a n d C o n gres s 

is a war e of it a n d has c o n d ucte d heari n gs. N o w t he q ue sti o n is: Will t he 

C or ps of E n gi nee rs e n d u p wit h t hi s r ole, a n d, if we e n d u p wit h it, 

w h at will be t he r ole of t he States ?

O u r prefe re nc e w o ul d be t h at t he St ate s ha v e a maj or r ole i n t he 

deci si o n ma ki n g pr oces s t o t he p oi nt t h at t he y c o ul d be del e gate d 

a ut h orit y. T ha t will re q uir e s o me ki n d of le gislati o n bec a us e neit h er 

t he 1 8 9 9 Act n or secti o n 4 0 4 of t he Fe d eral W’at er P oll uti o n C o ntr ol 

Act all o ws us t o d o t h at.

5 4 - 2 3 9 0 - 7 5 - 4
4 4

t has bee n a l o n g disc ussi o n, sir. I a p ol o giz e f or t h at. S o m eti m e 

wit hi n t he ne xt 3 0 t o 9 0 da y s a n y o ne of a n u m b er of t hi n gs c o ul d 

ha p pe n, t he j u d ge ’s decisi o n ma y be a p p eal e d f or re vie w. T h e will of 

t he pe o ple ma y be felt eit h er t hr o u g h y o u r g o o d offices or dir ectl y e xpresse d t o us as a r es ult of t his p u blic n oti ce. Per ha p s t he C o n g ress i n 

its deli berati o ns will elect t o pass s o me ne w le gislati o n w hic h gi ves 

t he St ate s a r ole.

As t hi n gs n o w sta n d, t he C or ps of E n gi ne ers has t he res p o n si bilit y 

t o i m ple me nt t he j u d g e’s decisi o n a n d we d o n ot ha v e t he a ut h orit y 

t o dele gate it t o t he States.

T h a n k y o u.

Se nat or M l u r e . I d o n ’t t hi n k t h at state m e nt was o verl o n g at 

all beca use I t hi n k t he pe o ple of t his c o u ntr y reall y are n’t yet a ware 

of t h e c o nse q ue n ces of t he c o u rt’s i nter p retati o n of y o u r re s p o nsi bilit y. 

I k n o w t he p orti o n i n t he P o st arti cle of Ma rc h 2 8 i n re g ar d t o t he 

j u d ge’s decisi o n has t his state m e nt i n it. I n a r g ui n g a g ai n st t he e x pa nsi o n t he c or ps ha d esti m ate d it w o ul d c ost $ 3 5 milli o n a n n u all y a n d 

f orce hiri n g of 1, 7 5 0 a d diti o nal e m pl o yees.

Ha ve y o u a n y occasi o n t o re vise t h os e fi g ures?

Ge ne ral M o r r i s . Sir, I a m gla d y o u as ke d t h at q ue sti o n. Ea rli er 

t his yea r, i n t he c o urs e of o ur ne g oti ati o ns wit h t he E n vir o n me ntal 

Pr otecti o n A ge nc y a n d as t he liti gati o n pr o gr esse d, t his a p pariti o n 

a p p eare d bef ore us. S o we i m m e diatel y we nt t o t he fiel d a n d as ke d o ur 

c o m ma n ders w h at t he i m pa ct w o ul d be if t hi s defi niti o n were t o be 

a p pli e d.

We g ot bac k s o me a ns wers. T ha t is w her e t he 1, 7 5 0 p e o ple a n d t he 

$ 5 3 milli o n ca me fr o m. La st wee k we ha d t hes e sa me pe o ple i n W as h ­

i n gt o n f or o ne of o ur se mia n n ual meeti n g s. I a m s o m e w hat distress e d 

t o re p ort t o y o u t h at I d o n ot belie ve t he y u n der st o o d t he first si g nal.

As t his t hi n g e v ol v es i nt o a m ore clearl y defi ne d or d er a n d sc o pe 

of w or k, I a m ha vi n g se vere d o u bts, a n d t hi n k we were off b y per ha p s 

a fact or of t hr ee i n ter ms of t he nec essa r y staff a n d b y t w o i n ter m s 

of d ollar s.

Se nat or M l u r e . I ass u m e t h os e are m ulti ple s?

Ge ne ral M o r ri s . Yes. I n ste a d of 1, 7 0 0 pe o ple, ma y be we are t al ki n g 

a b o ut 5, 0 0 0. I n ste a d of $ 5 3 milli o n, ma y b e we are tal ki n g a b o ut $ 1 0 0 

milli o n. B ut t h at is strictl y a n i nt uiti v e a ns w er, n ot a precise o ne.

Se nat or M l u r e . I rec o g nize y o u ha ve ha d ver y little ti me re all y. 

T h e j u d g e’s decisi o n, 1 t hi n k, di d occ ur o n Ma rc h 2 7. As y o u ha v e 

i n dicate d, t he re g ulati o ns were iss ue d o n M a y 9, t he pr o p ose d 

alt er nati v e re g ulati o n s. B u t we were c o nc er ne d last ye ar i n m y 

St ate a n d t he y ea r bef or e as t he defi niti o n of na vi g a bilit y h a d c ha n ge d 

s o t h at y o u were e xe rti n g a ut h orit y i n are as w here it ha d ne v er 

bee n e xerte d b ef ore a n d o n e of t h e ar eas t ha t first ca me t o m y atte nti o n 

was t he re g ulati o n at C oe ur d’ Ale ne La k e i n n o rt h er n I da h o. T h ere 

is n o q ue sti o n t h at t he b o d y of water is na vi ga ble. T h e q ue sti o n was 

ori gi nall y w h et h er or n ot it was na vi ga ble i n a n i nterstate se nse, 

t he na vi g a bilit y d oes n ot e xte n d acr oss St at e li nes. It is t otall y wit hi n 

t he St ate, alt h o u g h t he water certai nl y passe s acr oss t he St at e li ne.

B ut t h at is a l a ke w h ose s h oreli ne has be e n pr ett y l ar gel y d e vel o pe d 

i n ter m s of s u m m er ca bi ns, ma n y of w hic h ha ve d oc ks, s o me of w hic h 

ha v e c o nstr u cte d a sea w all t o pr e v e nt t he er osi o n of t heir s h oreli nes 

a n d t he c or ps wa s s u d de nl y t hr ust i nt o t he tas k of telli n g t hese pe o ple 

w h et h er t he y c o ul d re p air t heir d oc k s or t heir b oat h o u ses, w h et h er
4 5

t he y c o ul d a d d t o t h eir sea wall or n ot. At o ne p oi nt it e ve n g ot t o 

t he p oi nt w here I t hi n k a per mit was de nie d f or a b oat h o use beca use 

t he b oat h o use w o ul d ca st a s ha d o w o n t he water. S o me pe o ple g ot 

ver y u n ha p p y a b o ut t h at ki n d of re g ulati o n t h at t h e y ha d ne v er 

e x pe rie nc e d bef ore.

T h e St at e officials at t he sa m e ti me sai d i n res p o ns e t o t he p u blic 

o utcr y t h at de vel o pe d, “ W e will ta k e o ver t he j o b. ” I d o n’t k n o w t hat 

t he y reall y k n o w w h at t h e y are getti n g i nt o. B ut t h e y sai d we will 

ta k e it o ver.

T h e p u blic ge n erall y s pe a ki n g sai d o n t h at ki n d of r e g ulati o n t he y 

w o ul d pre fer t o deal wit h a St at e a ge n c y as c o m par e d wit h a Fe d eral 

a ge n c y.

T h at sit uati o n is ma g nifie d a n d I w o ul d s u g gest a h u n dre df ol d 

b y a p plic ati o n of t he Fe d eral W ate r P oll uti o n C o ntr ol Act t o sa y 

t h at t he c or p s m ust be res p o nsi ble f or e v er yt hi n g t h at affect s a n y 

of t he water s i n t he U nite d States.

I gre w u p i n I da h o a n d o ne of t he ple asa nt tas ks t h at I perf or m e d 

o n m y gr a n df at he r’s r a n c h was hel pi n g hi m re b uil d t he fe nces acr oss 

t he str ea ms t h at g ot was he d o ut i n t he s pri n g fl o o ds.

I w o ul d ass u m e u n der t he ne w act t h at bef or e m y gra n d fat her 

w o ul d ha ve bee n a ble t o re b uil d t h at fe nce he w o ul d ha v e t o ha v e 

a per mit fr o m t he C or ps of E n gi neers.

I d o n’t k n o w t h at t h at is reall y t he ki n d of t hi n g t h at t he c or ps 

wa nts t o be i n v ol ve d i n?

Ge n eral M o r r i s . Sir, I pre s u m e t h at was a q ue sti o n.

Se nat or M l u r e . Yes, sir. I w o ul d welc o me y o u r c o m me nt.

Ge n eral M o r r i s . Let me sa y t h at: I n s o me ot her are as of t he 

U nite d States, t he C or ps of E n gi n eer s beca me i n v ol ve d a b o ut 2 

ye ars a g o i n s o me area s i n w hic h we ha d n ot earlier ta ke n a r ole; 

n ot bec a use we di d n ot ha ve t he res p o nsi bilit y earlier, b u t beca u se, 

pri or t o t hi s p u blic i ntere st re q uir e m e nt, we di d n ot elect t o ta k e t he 

i niti ati ve o n na vi ga bilit y deter mi nati o ns u ntil t he re was a de m o nstrate d nee d t o d o s o: S o me o ne mi g ht ha v e c o me i n f or a per mit, 

or we were e v al u ati n g ma ki n g a str ea m na vi ga ble, or t he re was a n 

i nte rstate c o m mis si o n er’s pr o ble m or s o m et hi n g of t h at s ort. S o we 

f o u n d o urs el ve s i n t he p ositi o n, t h at i n di vi d u als desiri n g a per mit 

t o d o s o m et hi n g i n na vi ga ble water s of t he U nite d St at es ( u n der t he 

defi niti o n I ga ve y o u) w o ul d ha ve t o c o me t o us a n d we w o ul d be 

res p o nsi ve t o t heir re q uests.

A c o u pl e of ye ars a g o t hes e re q uests were pr olife rati n g a n d we ma de 

t he decisi o n t h at we w o ul d ta k e t he i nitiati v e t o tr y t o get a he a d of 

t he p o we r c ur v e a n d det er mi ne w hic h were na vi ga ble str ea ms i n 

a d v a nc e, s o pe o ple w o ul d k n o w w h et h er or n ot t he y ha d t o a p pl y 

f or a per mit. T he re were ma n y pe o pl e w h o were k n o wi n gl y i n vi olati o n of t he la w. I n a se nse, we were c o ntri b uti n g t o t h at sit uati o n b y 

n ot ma ki n g t he p u blic a ware.

We de vel o pe d a pr o gra m a n d dire cte d t he fiel d t o ma ke t he na vi g abilit y det er mi nati o ns. C o nse q u e ntl y t here ar ose t he C oe ur d’ Ale ne 

pr o ble m, t he Pl atte Ri v er i n Ne bra s ka, pr o ble m, a n d o n a n d o n. T h e 

p oi nt I wa nt t o ma k e is t h at n ot hi n g sta rtli n g ha p p e n e d 2 yea rs 

a g o t o c ha n ge o ur basic res p o nsi bilit y ot her t ha n t h e fact t h at we 

electe d t o ta k e t he i niti ati ve i n t he deter mi nati o n s.
4 6

ha t is ha p pe ni n g n o w, as y o u ha v e pr o perl y ill u str ate d, is a w h ole 

ne w di me n si o n. I t hi n k t h at t he C or ps of E n gi ne ers w o ul d li ke t o 

ta k e t he p ositi o n —I t hi n k I ca n s p ea k f or t he C hief of E n gi neers —t h at 

we ha v e n e ver felt t h at t his was p r o p erl y o ur r ole, t h at we are ba sicall y 

gear e d t o t he na vi g ati o n pr o g ra m a n d t h at was w h at was ori gi nall y 

i nt e n d e d b y e n act m e nt of t he 1 8 99 Act.

We ha v e certai nl y n ot s o u g ht t his e x p a n d e d r ole. We are n ot see k ­

i n g it n o w. O ur prefere nc e w o ul d be f or t he Stat es t o d o it.

B ut I w o ul d li ke t o cl ose t he l o o p b y sa yi n g t h at: If it has t o be 

d o ne a n d if t he decisi o n is t h at it will b e d o ne b y a Fe d eral a ge nc y, of 

c o urse we will d o t he ver y best we ca n. I n o ur e x perie nce i n t he fiel d 

i n ac q uiri n g real est ate a n d deali n g wit h pe o ple t hr o u g h o ut t he c o u ntr y, we are f ull y a ware of h o w diffic ult it will be t o a p p r oac h a ma n 

li ke y o u r gr a n df at h er or s o me ot he r ra nc her a n d tell hi m w h y we w o ul d 

n ot b ot he r hi m a b o ut p utti n g u p a fe nce u nles s he wa nte d t o di g a 

l ot of material; or t h at he ca n n ot p ut a little c ul vert i n t he str ea m 

a n d t hr o w eart h acr os s it t o m o ve his cattl e; or he ca n n ot, i n effect, 

f or m a hillsi d e or re m o ve a certai n a m o u nt of material wit h o ut a 

per mit. T h ere is n o q ue sti o n t h at t here are diffic ult pr o ble ms a he a d 

of us t here.

B ut I w o ul d li ke t o reite rat e t h at s h o ul d t he decisi o n be t h at a 

Fe d eral a ge n c y will ha v e t o pers o nall y a d mi nister t his, t he n we will 

d o t he ver y be st j o b we ca n.

Se n at o r M l u r e . I a p p reciate t he fact t h at y o u w o ul d d o it. I 

w o ul d t hi n k t h at a n a d diti o nal 5, 0 0 0 pe o ple w o ul d be a m o dest 

esti m ate of w h at mi g ht be re q uire d if t hi s t hi n g is p us h e d t o its 

l o gical li mit s.

Ge ne ral M o r ri s . W e a re o nl y tal ki n g a b o ut dr e d ge a n d fill m ate rial. 

T h ere are ot h er acti vities. T he disc har g es w o ul d still be a c o nc er n, 

b u t t he y w o ul d be restri cte d t o dre d ge a n d fill mat eri al i n t he na vi ga ble 

str ea m s. S o t here are s o me acti vities w h ose i m plicati o n s ma y n ot be 

as ba d as we t hi n k.

Se n at o r M l u r e . B ut if t he W ate r P oll uti o n C o ntr ol Act is t he 

basi c a ut h orit y u n der w hic h t hi s is d o ne, t here is n o reas o n t o belie v e 

t h at it will ulti m atel y be c o nfi ne d t o dre d g e a n d fill.

Ge ne ral M o r r i s . O u r p orti o n of t h at la w is rat h er s pecific. I t hi n k 

t h e w or di n g w o ul d ha v e t o be c ha n ge d. I will let Mr. He de m a n 

a ns w er. I belie v e t he la w is s pecific. It h as t o be dre d ge or fill m aterial 

a n d a n y e xte nsi o n of t h at w o ul d n ot re q uir e a per mit fr o m t he c or ps.

Se nat or M l u r e . S y o u d o n’t t hi n k t he re is a n y li keli h o o d t h at 

y o u will g o be y o n d t he 1 8 9 9 st at ut e e xc e pt s o far as dre d ge a n d fill 

is c o ncer ne d.

Ge n eral M o r ri s . I ns ofa r as t he C or ps of E n gi n eer s’ pr o visi o n of 

t he la w is c o nc er ne d t he ot h er pr o visi o n s gi ve ot he r Fe d eral a ge nci es 

s uc h as t he E n vir o n m e ntal Pr otecti o n A ge n c y s p ecific a ut h o rit y. T he y 

ca n dele gate t h at t o t he States.

Se nat or M l u r e . T h e y ha v e t he a ut h orit y t o dele gate a n d y o u 

d o n ot ?

Ge n eral M o r r i s . N ot if t he y ha n g it o nt o t he 1 8 99 pr o ble m as 

water s of t he U nite d St ate s. Mr. He de m a n als o re mi n de d me t h at 

e ve n u n d er s ecti o n 4 0 4 we c a n n ot d ele g ate o ur a ut h o rit y. S o we ca n n ot.

Se nat or M l u r e . T h ere are a c o u ple of ot he r si de iss ues I mi g ht 

j u st state f or t he rec o r d, beca u se I t hi n k t he y are m atters t h at o u g ht
4 7

t o c o ncer n eac h of us. U n der t he A d missi o ns Act, at least of m y 

State, t he State is gra nte d title t o t he be ds of na vi ga ble strea ms. 

W he n we e x pa n d t he defi niti o n of na vi ga bilit y t hat e x pa n ds, I ass u me, 

t he title of t he State t o la n ds t hat ha ve bee n t h o u g ht t o be o w ned 

b y a pri vate pers o n or b y t he Fe deral G o ver n me nt i n t w o-t hir ds 

of m y State w hic h was i n Fe deral o w ners hi p of o ne s ort or a n ot her. 

T he ot her si de of t hat is t he defi niti o n w hic h c o urts ha ve use d f or 

ot her p ur p oses i n t he past as t o w hat is na vi ga ble. B ot h State a n d 

Fe deral c o urts i n m y area of t he c o u ntr y s o me ye ars a g o, t w o-t hir ds 

or t hree-f o urt hs of a ce nt ur y a g o, s ettle d u p o n t he test of na vi ga bilit y 

a n y strea m t hat c o ul d fl oat a 6-i nc h l o g i n hi g h water beca use t hat 

was o ne of t he p ur p oses, o ne of t he uses of stre a ms i n c o m merce — 

t he fl oati n g of l o gs t o t he sa w mill i n t he s pri n g.

W he n y o u ha ve a hea v y s n o w patc h i n t he m o u ntai ns, t hat is n’t a 

ver y lar ge stre a m t hat will fl oat a 6-i nc h l o g. If we t he n get bac k i n 

u n der t he 1 89 9 stat ute t o e ver y o ne of t h ose strea ms beca use t he y are 

na vi ga ble u n der t hat test, t he n we ha ve a ver y, ver y greatl y e nlar ge d 

r ole f or t he c or ps u n der t he 1 89 9 Act.

T he n we get i nt o secti o n 4 0 4 a ut h orit y w hic h affects all t he waters 

a n d w hile E P A ca n dele gate c ertai n of t he p oll uti o n disc har ge re g ulat or y f u ncti o ns t o t he State, t he c or ps d oes n’t ha ve t he sa me o pti o n.

T hat is t he reas o n I i ntr o d uce d m y le gislati on last yea r w hic h w o ul d 

gi ve a ut h orit y t o t he c or ps t o dele gate a ut h orit y t o a n a p pr o priat e 

State a ge nc y w here t here is a n a p pr o priate per mit a n d re g ulat or y 

s yste m.

1 d o n’t wa nt a n y o ne t o u n dersta n d t hat I a m sa yi n g t hat t here 

s h o ul d n’t be a n y s ur veilla nce of w hat is d o ne. I a m j ust c o ncerne d 

a b o ut w h ose j o b it is t o kee p trac k of w hat is ha p pe ni n g.

T he E n gi neers ha ve pr o vi de d me wit h a c o u ple of draft alter nati ves 

t o t he bill I rei ntr o d uce d t his year, w hic h t his year is S. 8 3 8, a n d I 

n otice t hat j ust ver y rece ntl y si milar le gislati o n has bee n i ntr o d uce d 

i n t he H o use of Re prese ntati ves, at least t w o differe nt bills. O ne is 

H. R. 6 7 27 i ntr o d uce d b v Mr. Pattis o n of Ne w Y or k f or hi mself a n d 

Mr. E mer y, Mr. K och, Mr. Le nt, a n d Mr. T h o ne. A n d t he ot her o ne 

bei n g H. R. 6 7 46, i ntr o d uce d b y Mr. Stratt o n a n d Mr. Pe yser.

S o it see ms t o me t h at t he pr o ble m is be gi n ni n g t o s urface i n ot her 

areas of t he c o u ntr y. I s u g gest we are g oi ng t o ha ve t o c o nfr o nt t he 

iss ue. We are g oi n g t o ha ve t o s ol ve it o ne wa y or t he ot her. I t hi n k 

s o me li mits are g oi n g t o ha ve t o be defi ne d or y o u are g oi n g t o fi nd 

y o ursel ves i n a m uc h e x pa n de d r ole a n d w hich y o u w o ul d u n derta ke, 

if it is y o ur res p o nsi bilit y, b ut o ne t hat y o u d o n’t reall y see k, as I 

u n dersta n d it.

Ge neral M o r ri s . T hat is c orrect, sir. We certai nl y feel t hat t he 

q ualit y of water is a para m o u nt re q uire me nt. We feel t hat t he States 

s h o ul d parti ci pate i n its mai nte na nce, t hat y o ur a nal ysis of a strea m 

fl oati n g t he l o g is a pr o per o ne a n d t hat w o ul d a p pl y u n der na vi gati o n.

O ne of t he tests of na vi gati o n u n der 1 89 9 is t he hist orical te st. T hat 

is acce pte d a n d re q uire d u n der t he c o urt a nal yses.

It is o ne w hic h has li mited practical a p plicati o n i n t o da y’s w orl d, 

beca use ma n y of t he strea ms are reall y j ust hist oricall y na vi ga ble a n d 

are n ot c urre ntl y na vi ga ble.

I t hi n k t he p oi nt I a m tr yi n g t o ma ke is t hat, i n or der t o pr o perl y 

e xec ute o ur missi o n, i n t he br oa d c o nte xt of na vi gati o n, I d o n ot
4 8

belie ve t hat we s h o ul d dele gate t he res p o nsi bilit y f or per mitti n g 

acti vities a n d re m o vi n g o bstr ucti o ns w hich w o ul d be a n o bstr ucti o n 

t o na vi gati o n i n w hic h t here is a Fe deral i n vest me nt.

N or d o I t hi n k we s h o ul d a ba n d o n s o me o versi g ht o n t h ose waterwa ys or t h ose water areas w hic h ha ve relati vel y g o o d pr os pects of 

bec o mi n g na vi ga ble.

S o, w hile w hat I ha ve sai d certai nl y c o ul d be i nter prete d as bei n g 

fa v ori n g dele gati o n t o t he States, t he lar ger part of t his decisi o n i n 

t hese o uter reac hes a n d i n t he hist orical areas, per ha ps t here is a nee d 

a n d we s h o ul d retai n a clear r ole f or per mitti n g acti vities i n na vi ga ble 

waters a n d i n t h ose water wa ys w hich are relati v el y li kel y t o bec o me 

na vi ga ble.

Se nat or M l u r e . I w o uld a gree wit h y o ur state m e nt wit h a 

c o u ple of c o m me nts per ha ps, t o re strict it sli g htl y. O ne, I w o ul d a gree 

if t here is a Fe deral i n vest me nt i n t h at n a vi ga bilit y, wit h o ut q uesti o n. 

T he ot her d o u bt t hat I ha ve is, if as a matter of fact t he na vi gati o n 

o n t he water wa y is n ot a n d ca n n ot be i nterst ate i n c haracter, it is 

t otall y i ntrastate, t hat per ha ps t he c or ps w o ul d ha ve n o partic ular 

le giti mate i nterest t here if t here were n o Fe deral i n vest me nt a n d if 

t he na vi gati o n were i n fact or p ote ntial d oes n ot cr oss t he State li ne.

Ge neral M o r ri s . I d o n’t t hi n k I a m pre pare d t o c o m me nt o n t hat.

I t hi n k we will ha ve t o get bac k i nt o s o me of t he c o m merce la ws. As 

y o u k n o w, t he C oe ur de’ Ale ne pr o ble m g ot a little f uzz y beca use 

t here is i nt erstate c o m merce.

I n o ur disc ussi o ns here I t hi n k t here is ge neral a gree me nt t hat t he 

States s h o ul d ha ve m ore a ut h orit y a n d h o w far t hat g oes we nee d t o 

s pecif y.

Se nat or M l u r e . I rec o g nize t hat t he c o urts ha ve e xte n de d 

Fe deral j uris dicti o n o n a n yt hi n g t hat has a n i m pa ct or mi g ht ha ve a n 

i m pact o n i nt erstat e c o m merce a n d t hat mea ns al m ost w hate ver y o u 

desire t o ma ke it.

If we are g oi n g t o re strict it bel o w t h at p ossi bilit y of i nter pretati o n 

b y t he c o urts, t he n t here w o ul d ha ve t o be a st at ut o r y defi niti o n of a 

li mit. T h at is n ot t he maj or pr o ble m. T he maj or pr o ble m mi g ht be 

als o defi ne d u n der o ne of t he f o ur alter nati ves t hat were file d i n y o ur 

alter n ati ve re g ulati o ns of Ma y 6.

U n der o ne of t h ose alter nati ve s, fillin g will be re g ulate d i n all na viga ble waters pl us t he e xte nsi o n of t h ose waters a n d t heir tri b utaries 

u p t o t heir he a d waters pl us all i nter state or i ntrast ate la kes, ri vers, or 

strea ms use d b y i nterstate tra velers f or recreati o n or ot her p ur p oses 

or f or re m o val of fish s ol d i n i nter state c o m merce b y i n d ustries 

o perati n g i n i nterstate c o m merce, or t o ai d i n t he pr o d ucti o n of 

a gric ult ural pr o d ucts s ol d or tra ns p orte d i n i nt erstate c o m merce.

I d o n’t k n o w h o w y o u ca n get a m uc h br oa der defi niti o n t ha n t hat.

Ge neral M o r ri s . Yo u are precisel y ri g ht. T hat was t he o bjecti ve 

of t he defi niti o n: T o ma ke it as br oa d as p ossi ble.

Se nat or M l u r e . It re mi n ds me a little bit of t he st or y t hat m y 

la w pr ofess or t ol d me whe n I was a st u d e nt at t he U ni versit y of I da h o. 

As y o u ma y k n o w, t he U ni versit y of I da h o is ver y near t he State li ne. 

T hat waters he d t here ha p pe ns t o sl o pe a little t o war d t he State of 

Was hi n gt o n. S o j ust o n t he e d ge of M osc o w, I d a h o, is a se wa ge tre atme nt pla nt. It is j ust i nsi de t he Stat e b or der.

O ur pr ofess or ca uti o ne d us t hat w he ne ver we we nt t o t he bat hr o o m 

we were i n i nter state c o m merce.
4 9

I a m afrai d t hat t hat is w hat we are lea di n g t o here i n t he defi niti o n 

of i nterstate c haracter of t hese waters.

A gai n, I rec o g nize t hat y o u ca n defi ne it t hat br oa dl y a n d t he 

c o urts ha ve ofte nti mes. I t hi n k we i n a n eff ort t o e xte n d Fe deral 

j uris dicti o n i n ci vil ri g hts cases sai d t hat beca use Mr. Ma d d o x’s ha mb ur ger j oi nt was a b o ut t w o or t hree bl oc ks a wa y fr o m a n i nter state 

hi g h wa y t here mi g ht be s o me tra veler t hat stra y e d o ver t he i nter state 

hi g h wa y a n d g ot o ver t o his eati n g place a n d, t heref ore, it was s o met hi n g t hat mi g ht affect s o me b o d y i n i nter state c o m merce a n d, t heref ore, t he Fe deral G o ver n me nt ha d t he a ut h orit y t o i nter ve ne.

T h ose strai ne d c o nstr ucti o ns ha ve le d us far afiel d, it see ms t o me, 

t o ki n d of a n i na p pr o priate Fe deral j uris dicti o n. B ut t hat is n ot hi n g 

t hat t he c or ps ca n certai nl y var y a n d t he c o urts ha ve s p o ke n.

B ut I a m c o ncer ne d a b o ut t h at pr o ble m. A gai n, y o u ga ve t he 

e xa m ple n ot of a fe nce acr oss t hat strea m, b ut m y gra n dfat her p utti n g 

it i n a c ul vert a n d t hr o wi n g s o me dirt o ver it i n or der t o get his cattle 

fr o m o ne si de of t hat s mall strea m t o a n ot her. S o me of t h ose get d o w n 

t o prett y s mall iss ues a n d yet t he a ut h orit y c o ul d be e xercise d a n d 

per ha ps w o ul d be.

We w o n’t s ol ve it here t his m or ni n g. B ut I t hi n k b ot h y o u a n d t he 

C o n gress ha d better be l o o kin g at t he ra mificati o ns of t his p olic y a n d 

tr yi n g t o get her t o write a n a p pr o priate defi niti o n f or y o ur r ole.

At t he sa me ti me I w o uld h o pe t hat we w o uld als o see if we mi g ht 

e x pa n d t he sc o pe of t he dele gati o n t o t he a p pr o priate Stat e a ge ncies 

w here t here is a n a p pr o priate re g ulat or y sc he me u n der t he State 

w here t hat mi g ht be a n a p pr o priate alter nati ve.

I a m s ure we are g oi ng t o hear m ore a b o ut it.

Ge neral M o r ri s . Yes, sir.

Se nat or M l u r e . Yo u ha ve s p o ke n s o me w hat ge nerall y t o t he 

q uesti o n of water wa ys decline. I n t he 1 97 2 D O T re p ort it was state d 

t hat we ca n n ot prete n d t hat t he dist orti o ns i n tra ns p ortati o n i n vestme nt d ue t o massi ve p u blic e x pe n dit ures f or hi g h wa ys, a viati o n s yste ms, water wa ys a n d t he li ke ha ve n ot bee n a s u bsta ntial fact or i n t he 

decline of ot her m o des a n d ser vices.

W o ul d y o u c o m me nt o n t hat state me nt ma de b y D O T?

Ge neral M o r ri s . Yes, sir. I ha ve a refere nce t o t hat i n m y stat eme nt. I belie ve t he y were referri n g t o ur ba n mass tra n sit w hic h has 

gi ve n wa y t o a ut o m o biles, as well as l ocalize d i ncreases or decreases 

i n rail a n d air traffic.

T he s u bsi d y s yste m a n d ta x practices, ha ve n ot bee n c o nsiste nt f or 

all m o des. T heref ore, t here are dist orti o ns. T he y will c o nti n ue, t o 

s o me de gree, u ntil we ha ve a fairl y c o nsiste nt Fe deral i n vest me nt 

p olicy, w hic h is m ore or less e q uita ble t o all m o des.

Se nat or M l u r e . It has bee n c har ge d, of c o urse, i n ma n y places, 

t hat t he 1 00 perce nt i n vest me nt wit h t he Fe deral G o ver n me nt i n 

na vi gati o n w or ks dist orts nati o nal tra ns p ortati o n p olicy.

Ge neral M o r ri s . Yes, sir. I a m al wa ys e x pecte d t o ha ve s o me ver y 

sa ge a ns wer t o t hat. B ut I reall y d o n ot k n o w t hat m uc h a b o ut t he 

ot her m o des of tra ns p ortati o n. S o I a m s pea ki n g fr o m a relati vel y 

narr o w vie w p oi nt w he n I tal k a b o ut t he i m pact t hat t he Fe deral 

s u p p ort of na vi gati o n ma y ha ve o n ot h er m o des.

T he o nl y t hi n g I d o k n o w is t hat, i n t he rece nt Nati o nal Water 

C o nference, t his s u bject was disc usse d i n great detail a n d t he ge neral 

c o nse ns us see med t o be t h at t here reall y was n ot t hat m uc h dis parit y.
5 0

I a m virt u all y c o n vi n ce d t h at a n y o ne m o de w hic h d oes well be nefits 

t he ot he rs. It see ms t o me t h at t he hi g h wa y s a n d t he rails w hic h are 

parallel t o a n d c o nti g u o us wit h g o o d wat er w a ys are a m o n g t h ose 

w hic h are d oi n g t he best, fr o m a n ec o n o mic sta n d p oi nt.

W he n t he y se p arate a n d g o t heir se p arate wa ys, we fi n d area s of 

tr o u ble.

I a m n ot all t h at fa miliar, eit h er, wit h t he hist or y of t he railr oa d s 

or t he hi g h wa ys a n d h o w Fe d eral f u n ds were i n ve ste d i n t heir de vel o pme nt.

B ut I d o feel t h at t her e has t o be a nati o n al tra ns p o rtati o n p olic y 

a n d a n i nt e grat e d i nt er m o dal tra ns p o rtati o n s yst e m w hic h per mit s 

res ol uti o n of t hes e t y pe s of pr o ble m s, if t he y d o i n fact e xist, s o t h at 

t he p u blic as a w h ole has a clear u n derst a n di n g of w h at is g oi n g o n.

I t hi n k t here is a l ot of c o nf u si o n t o d a y a b o ut j u st w hat t he Fe d eral 

s u b si d y t o eac h of t h e vari o u s m o d es a m o u nts t o. It is c o nf u si n g w he n 

y o u see t he railr o a ds getti n g all of t hese h u n d re d s of milli o ns of d ollars.

We k n o w t he Nati o nal Hi g h wa y I nte rstate S yste m, t he air p orts 

a n d air w a ys, a n d of c o urse, t he wat er w a ys, were b uilt wit h Fe d eral 

s u p p ort.

I t hi n k o ur pe o ple k n o w less a b o ut t he wat er w a ys bec a us e t he y d o 

n ot t ra v el o n t he m. I d o n ot k n o w a n y o ne w h o e ver get s o n a w ate r w a y 

a n d g oes fr o m C hic a g o t o St. L o uis.

S o n ot o nl y is t here c o nf u si o n, b ut t here is pr o ba bl y a l ot of mislea di n g i nf or m ati o n c urre nt.

Se nat or M l u r e . I k n o w we are a b o ut at t he p oi nt of d e di cati n g 

t he se a p ort at Le wist o n, I da h o, s o me 4 0 0 miles fr o m t he ocea n. We 

will ha v e dee p w ater bar g es c o mi n g i nt o t h at p ort. T h e pe o ple i n m y 

are a of t he c o u ntr y are gratef ul f or t he o p p o rt u nit y t o ha ve a c o m peti n g f or m of tra ns p o rtati o n.

I k n o w at t he ti me t he tra ns p o rtati o n was e xte n de d as far i nla n d as 

Walla Walla, Wa s h., we g ot a re d ucti o n i n frei g ht rate s o n t he railr oa ds f or t he b ul k tra ns p o rt of g rai n t o t he c oast. U p u ntil t h at ti me, 

t he railr o a ds c o ul d n ’t ca rr y it f or a n y less m o ne y.

T h e bar ge traffic beca me c o m p etiti v e, a n d t he railr o a ds l o were d 

t heir rat es.

I t hi n k t he far mers i n t h at are a be n efit fr o m t h at i ncre ase d c o m petiti o n. S o far as I k n o w, t h os e railr o a d s are still o p erati n g efficie ntl y 

a n d still are ma ki n g m o ne y i n t h at a rea of t he c o u ntr y.

S o I t hi n k t he St ate ca n be o ve r ga g e d —t h at t he s u bsi d y is s o gre at 

t h at it dri v es ot h ers o ut of b u si nes s.

B ut I d o a gre e wit h y o u t h at we o u g ht t o tr y t o res ol ve as be st we 

ca n w h at is a n a p pr o pri ate mi x of tra ns p o rtati o n m o d es i n a nati o n al 

tr a n s p ortati o n pr o gra m, t he n tr y t o a d a pt nati o nal p olicies t o d o 

w h at is nec essar y t o see t h at eac h of t h os e m o d es o p erates 

ec o n o mic all y.

I, f or o ne, t hi n k we ha v e d o ne prett y well i n t he a bse nce of s uc h a 

c o her e nt n ati o n al p olic y, b ut I t hi n k it c o ul d be i m p r o v e d if we were 

t o d e vel o p a nati o nal t ra ns p o rtati o n p olic y t o l o o k n ot j u st at o ne m o de 

or t he ot h er, b u t l o o k at all m o de s t o g et h er bef ore we det er mi ne 

w h et h er we w a nt t o i ncre ase air traffi c de n sit y al o n g t he ea ste r n sea 

c oa st or w h et h er we wa nt t o ha v e i ncr ease d rail pas se n ger tra nsit, 

w h et h er we w a nt m ore bar g e traffi c i n a pa rti c ular are a or w h et h er 

we i n d oi n g s o w o ul d re n der t he railr o a d or se g me nt of railr o a d s u n ­

ec o n o mic wit h o ut k n o wi n gl y o r c o nsci o usl y d oi n g t h at.

I s us pect de v el o pi n g t h at p olic y is g oi n g t o be s u bje ct t o a gr eat 

deal of q uesti o ni n g.
5 1

S h o u l d t he Fe deral G o ver n m e nt ha v e t he a ut h orit y t o c o ntr ol t he 

s pee d of s hi ps o n i nl a n d water w a ys t o re d uce wa v e acti o n o n ri v er 

ba n k er osi o n?

Ge n eral M o r r i s . We basicall y ha v e wa y s of c o ntr olli n g s pee d n o w. 

It d oe s n’t c o me o ut i n t h at f or m, t h o u g h. We p u blis h re g ulati o ns o n 

o p erati n g c o n diti o ns. A gai n, a gr at uit o us c o m me nt: I a m n ot s o s ure 

t h at t he er osi o n effects of t he wa ve s ge n erate d b y s pee d is n ot e xa gger ate d. A m or e critical fact or is w here t he vessel is i n rel ati o n t o 

t h e s h ore, n ot h o w fast it is g oi n g.

B ut a n y h o w, t here is n o dire ct s pee d li mit I a m a war e of. We d o 

ha v e re g ulati o n s w hic h ca n c o ntr ol safe o p erati n g a n d pr o per o p er at ­

i n g s pee ds, a n d we ha v e d o ne it o n t he O hi o Ri v er satisf act oril y i n 

c o o perati o n wit h t he s hi p pi n g i n d ust r y.

Se nat or M l u r e . Ho w a b o ut t he rec reati o n i n d ust r y?

Ge neral M o r r i s . N , sir, t here are s pee d li mits. I t hi n k t he C o ast 

G u ar d is d oi n g a v er y g o o d j o b i n c o ntr olli n g t he s pee ds of rec reati o nal 

vessels i n c o n g este d areas.

Se nat or M l u r e . D t he y d o t h at o n t he basis of str ea m b a n k 

pr otecti o n ?

Ge n eral M o r ri s . T ha t is pa rt of t he reas o n. Saf et y is t he pri m ar y 

reas o n. O n str ea m b a n k pr otecti o n, t he y w o ul d nee d o ur hel p, a n d we 

w o ul d certai nl y be gla d t o gi ve it t o t he m, alt h o u g h pr o per s pee ds 

are mai ntai ne d n ot o nl y f or saf et y reas o ns, b u t f or o pti m al mai ntena n ce a n d o pe rati n g c o n diti o n s.

Se nat or M l u r e . If t he s pee d li mit is de vel o pe d, is it de vel o pe d 

b y y o u or b y t he C o ast G u ar d i n t h ose i nst a nc es?

Ge n eral M o r r i s . Fr o m t he sta n d p oi nt of water wa y mai nt e n a n ce, 

we w o ul d d o t he a nal ysis. We ha v e d o ne n u m er o us a nal yse s. Fr o m 

t he sta n d p oi nt of saf et y, I t hi n k t he C o ast G u ar d w o ul d be m ore 

i n v ol ve d. It is n ot a diffic ult t hi n g t o w or k wit h t he m, h o w e ver, sir. 

We ha v e da y-t o- d a y, o n g oi n g relati o n s.

Se nat or M l u r e . I w o ul d ass u m e t h at if y o u ha v e res p o n si bilit y 

f or t he mai nt e na nce of t he p urit y of t he water, y o u m i g ht be c o ncer ne d 

a b o ut str ea m b a n k er osi o n, a n d t h at mi g ht get y o u bac k i nt o e ve r y 

na vi ga ble str ea m i n t he c o u ntr y. We will ha v e t he C or ps o ut 

t here, weari n g a s pee d officer’s u nif or m, tic keti n g b oats.

Ge n eral M o r ri s . Sir, o ne of t he pr o p osals we ha v e bef ore us n o w 

is t o p ut s o me of o ur pe o pl e i n u nif or m. I d o n ot mea n Ar m y u nif or m. 

I m u st sa y I a m seri o usl y w orr yi n g a b o ut h o w we are g oi n g t o ha n dle 

s o me of t hes e c o nfr o ntati o n s t h at are q uite u n q u esti o n a bl y g oi n g 

t o de vel o p o n s o me far me r’s la n d.

Se nat or M l u r e . I t hi n k t here are seri o us pr o ble ms. I reall y 

belie v e t h at b ot h y o u a n d we ha d bette r be getti n g i nt o t he b usi nes s 

of defi ni n g t he e xte nt of t h ose pr o ble m s, beca use if we d o n’t, t he re 

will be vari o us ot h ers w h o b y mea ns of c o urt acti o n or p olitic al 

pres s ure will be det er mi ni n g n ot nec essaril y as t he p u blic ge n erall y 

w o ul d desire, b u t as t h ose i n di vi d ual gr o u ps mi g ht see best.

I ha v e a n o pe ni n g state m e nt w hic h I w o ul d li ke t o be plac e d i n t he 

rec or d at t he be gi n ni n g of t he hea ri n g s t o d a y, al o n g wit h certai n 

atta c h m e nts t he ret o w hic h I will gi ve t o t he re p ort er.

T h a n k y o u ver y m uc h, Ge n eral, f or y o u r a p pe ara nce a n d testi m o n y 

t his m or ni n g.

T h e hea ri n g is a dj o ur ne d.

( W h ere u p o n, at 1 2: 1 0 p. m., t he s u bc o m mitte e re cesse d, t o r ec o n ve ne 

s u bje ct t o t he call of t he C hair.)
5 2
5 3

C O R P S O F E N GI N E E R S O V E R SI G H T H E A RI N G S — 1975

F R I D A Y, M A Y 1 6, 1 9 7 5

U. S. e n a t e

o m m i t t e e o n P u b li c W o r k s , 

u b c o m m i t t e e o n W a t e r R e s o u r c e s

Vicksbvr g, Miss.

T he s u bc o m mittee met, p urs u a nt t o call, at 9 a. m. i n t he circ uit 

c o urtr o o m of t he c o u nt y c o urt h o use i n Vic ks b ur g, Miss., H o n. Mi ke 

Gra vel (c hair ma n of t he s u bc o m mittee) presi di n g.

O P E NI N G S T A T E M E N T O F H O N. MI K E G R A V E L, U. S. S E N A T O R F R O M 

T H E S T A T E O F A L A S K A

Se nat or r a v e l It gi ves us great pleas ure t o be here wit h y o u 

t o da y a n d here yester da y, als o, a n d t o e nj o y y o ur tre me n d o us s o ut her n h os pitalit y.

W hat we’re d oi n g is tr yi n g t o ma ke a n e ntire i n vesti gati o n i nt o t he 

water pr o ble ms of t his area. It is t he h o pe of t he s u bc o m mittee t hat 

wit h t his i nf or mati o n we will be a ble t o f or m ulate le gislati o n t hat 

will be of t he greatest be nefit t o t he pe ople i n t his area.

Se nat or Ste n nis a n d Se nat or Eastla n d b ot h as ke d me t o c o n vey 

t heir g o od wis hes t o t he c o m m u nit y a n d, als o, t heir re grets f or n ot 

bei n g a ble t o be here t o da y pers o nall y, b ut as I ’ m s ure y o u will u n dersta n d, t he y were tie d u p wit h ot her c o m mit me nts i n Was hi n gt o n. 

T heir state me nts, h o we ver, will be recei ve d f or t he rec or d.

[ T he state me nts referre d t o f oll o w:]
5 4

S T A T E M E N T B Y

S e n at o r J o h n C. Ste n nis 

of

M i s si s si p p i

t o

T H E S U B C O M M I T T E E O N W A T E R R E S O U R C E S

of t h e

S E N A T E P U B L I C W O R K S C O M M I T T E E

M r. C h air m a n a n d m e m b e r s of t h e S u b c o m m it te e o n W ate r R e s o u r c e s

of t h e S e n ate P u bli c W o r k s C o m m it te e, I r e g r e t t h at I c a n n ot be a t y o u r

h e a ri n g i n V ic k s b u r g o n M a y 1 6, t o p e r s o n all y w elc o m e y o u t o M i s si s si p p i.

I a m p r o vi d i n g t h is st a t e m e n t wit h t h e r e q u e st t h at it b e m a d e a p a rt

of t h e h e a ri n g r e c o r d.

I a m p l e a s e d t h at y o u s el e ct e d V ic k s b u r g a s a h e a ri n g sit e f o r

y o u r fie l d i n v e sti g ati o n o n t h e i n la n d n a vi g ati o n p r o g r a m o f t h e C o r p s

o f E n g i n e e r s. T h e M i s si s si p p i R i v e r i s of c o u r s e t h e g r e a t e s t i n la n d 

w ate r w a y i n t h e w o rl d , c a r r y i n g o v e r 3 0 0 m il li o n t o n s of f r ei g h t a 

y e a r. H e r e at V ic k s b u r g y o u a r e i n a cit y t h at w a s o ri g i n all y s ettl e d 

a s a ri v e r p o rt. H e r e w a s o n c e f o u g ht a g r e a t b att l e f o r t h e c o n tr o l

of i n la n d n a vi g ati o n o n t h e R i v e r, d u ri n g t h e W ar B et w e e n t h e S t ate s,

a n d h e r e t h e r e h a v e b e e n f o u g ht m a n y s u b s e q u e nt b att l e s a g ai n st t h e

R i v e r it s e l f, i n ti m e s o f fl o o d, t o p r e v e n t it s v a st f o r c e fr o m

d e v a sta ti n g t h e c o u n tr y si d e.
5 5

- 2 

T his cit y is t h e tr a d iti o n a l h o m e of t h e M i s si s si p p i R i v e r

C o m m i s si o n a n d t h e ^ V ic k s b u r g E n g i n e e r D i st ri c t. M a n y t h o u s a n d s o f

M i s si s si p p i a n s h a v e s p e n t a lif eti m e of w o r k h e r e, d e d ic at e d t o fl o o d

c o n tr o l a n d c h a n n el i m p r o v e m e n t o n t h e R i v e r, a n d fi n e r o r m o r e s k illf u l

p u bli c s e r v a n t s a r e n ot t o b e f o u n d.

V ic k s b u r g i s als o t h e h o m e of t h e W ate r w a y s E x p e ri m e n t S ta ti o n,

a w at e r r e s o u r c e s l a b o r a t o r y o f w o rl d r e n o w n, t h e l a r g e s t a n d b e st o f

it s ki n d. I u n d e r st a n d y o u w ill h a v e a n o p p o rt u nit y t o v i sit t h e E x p e ri ­

m e nt S ta ti o n i n t h e a fte r n o o n, a n d I a m s u r e y o u w il l fi n d it t o b e a

sti m u l ati n g e x p e ri e n c e.

Y o u r n oti c e r e g a r d i n g t h i s h e a ri n g i n d ic ate d a p a rti c u l a r i n t e r e s t

i n t h e r e p l a c e m e n t of o b s o l ete n a v i g ati o n al st r u c t u r e s, d r e d gi n g p o li c i e s,

a n d t h e c o n c e pt of u s e r f e e s f o r w at e r w a y s.

A s C h air m a n o f t h e P u bli c W o r k s S u b c o m m it te e of t h e S e n ate

A p p r o p ria ti o n s C o m m it te e it h a s b e e n n e c e s s a r y f o r m e t o f o ll o w v e r y

cl o s el y t h e s u b j e ct s of r e p l a c e m e n t o f n a vi g ati o n st r u c t u r e s a n d d r e d g i n g.

I b eli e v e t h at t h e a cti o n s of t h e S u b c o m m it te e, a n d t h e S e n ate A p p r o p ri a ­

ti o n s C o m m it te e As a w h ole, i n p r o vi d i n g a n n u al f u n di n g f o r t h e s e

o p e r ati o n s a r e s u ffi cie n tl y s elf e vi d e nt s o t h at I n e e d n ot d w ell f u rt h e r

o n t h e s e s u b j e ct s at t h is ti m e. M y r e m a r k s w ill b e a d d r e s s e d p ri m a ril y

t o w a r d t h e s u b j e ct o f u s e r f e e s o n i nla n d w ate r w a y s.
5 6

- 3 -

I n M i s si s si p p i w e h a v e a v e r y str o n g i n t e r e s t i n t h e m o v e m e nt of

f r ei g h t b y b a r g e o n t h e i n la n d w at e r w a y s. It h a s a m a s si v e e f f e ct o n o u r

ec o n o m y b e c a u s e w e a r e s o f o rt u n at e a s t o h a v e m a n y a r e a s o f o u r Sta te

wit h d i r e c t a c c e s s t o s u c h w at e r w a y s. M il li o n s of t o n s of f r e i g h t m o v e

i n a n d o ut of o u r ri v e r p o rt s of G r e e n v ille , V i c k s b u r g, a n d N atc h e z v ia

t h e M i s si s si p p i R i v e r s y ste m .

T h e G ulf I n t r a c o a st a l W ate r w a y, w hic h p r o v i d e s a b a r g e c a n al t h at

i s n ot s u bje cte d t o t h e h a z a r d s of t h e o p e n s e a, a n d a s y o u k n o w c a r ri e s

tr e m e n d o u s t r a f fi c, s e r v e s a ll of o u r c o a st a l p o rt s, f r o m B a y S ai n t L o uis

o n t h e w e st t o P a s c a g o u la o n t h e e a st.

Y ell o w C r e e k P o rt, i n t h e n o rt h e a st c o r n e r of t h e Sta te , i s c o n n e cte d

t o t h e e nti r e i n la n d w ate r w a y s y ste m b y w a y o f t h e T e n n e s s e e R i v e r.

T h e T e n n e s s e e - T o m b i g b e e W ate r w a y w hic h w h e n c o m ple te d w ill

c o n n e ct wit h t h e T e n n e s s e e R i v e r o n t h e n o rt h a n d t h e G ulf I n t r a c o a s t a l

W ate r w a y o n t h e s o ut h , w ill p r o vi d e b a r g e tr a f fi c t o o u r c iti e s i n e a st

M i s si s si p p i, a n d w il l h a v e a p r o f o u n d e ff e ct o n t h e r e g i o n al e c o n o m y.

A s y o u a r e a w a r e, o n e of t h e e c o n o m ie s p r o p o s e d b y t h e P r e si d e n t

l a s t O ct o b e r, ai m e d a t b ala n ci n g t h e b u d g et, w a s t o re q uir e b a r g e li n e s

t o p a y u s e r s f e e s o n w ate r w a y s. T his p r o p o s a l, of c o u r s e, w a s m a d e

a t a ti m e w h e n t h e a d m i n i str ati o n e f f o rt w a s ai m e d a t b u d g et b ala n ci n g

a s a n a n ti-i n fl a ti o n m e a s u r e, r a t h e r t h a n i n t h e p r e s e n t a t m o s p h e r e of

d r a sti c e f f o rt s t o h a lt t h e r e c e s si o n t h at o c c u r r e d b e c a u s e of t h e

q u a d r u pli n g o f e n e r g y c o st s.
5 7

- 4 

It r e q u ir e s l e s s e n e r g y t o m o v e a t o n o f f r ei g h t o n e m il e b y w at e r

t h a n b y a n y o t h e r m et h o d. W it h t h e r a p i d ri s e i n t h e c o st o f e n e r g y, I

t h i n k it i s e a s y t o s e e t h at t h e w at e r m o v e m e nt o f f r ei g h t i s g oi n g t o

i n c r e a s e, wit h a n o v e r all s a vi n g o f e n e r g y t o t h e n ati o n.

I t o t a ll y o p p o s e p utti n g a u s e r f e e o n w at e r w a y s. O ne of t h e f i r s t

a cts of C o n g r e s s u n d e r t h e t h e n n e w C o n sti t u ti o n i n 1 7 8 9, s a y s t h at t h e

ri v e r s " s h all b e c o m m o n hi g h w a y s a n d f o r e v e r f r e e. " T his l o n g sta n di n g

n ati o n al p oli c y s h o ul d n ot b e c h a n g e d, l e a s t of a ll i n ti m e s li k e t h e s e,

w h e n tr a n s p o rt a ti o n c o st s a r e s o a ri n g b e c a u s e of t h e hi g h c o st s of f u el.

T h e i m p o sit i o n of u s e r f e e s o n w ate r w a y s i s n ot a p e n alt y o n a n y o n e

e x c e pt t h e c o n s u m e r. T h e t r a n s p o rt a ti o n c h a r g e s w il l b e p a s s e d o n t o

h i m .

T his c o n s u m e r i s t h e p u bli c a s a w h ole , n ot s o m e p a rti c u l a r p a rt

of t h e p u bli c, b y r e a s o n o f t h e n a t u r e o f t h e c a r g o e s i n v ol v e d. W at e r ­

b o r n e c a r g o i s b ul k c a r g o - - b a si c m a t e ri a l s - - o oa l, p etr o l e u m , g r ai n ,

st e e l, o r e, c h e m i c a l s. W h e n y o u a d d t o t h e i r c o st y o u p e n ali z e e v e r y

t a x p a y e r.

C o n g r e s s j u st c ut ta x e s t w o m o nt h s a g o. T o i n r p os e a w ate r w a y

u s e r s ta x t o b e p ai d b y a ll t h e t a x p a y e r s is c o n tr a d ic t o r y a n d s elf -

d e f e ati n g. It i s als o i n fla ti o n a r y.

T h e a r g u m e nts a d v a n c e d f o r u s e r s f e e s a r e s u p e r fi ci all y a tt r a c ti v e

b ut t h e y a r e n ot p e r s u a si v e. I w o ul d li k e t o s e e s o m e f a ct s.
5 8

- 5 -

N ot e n o u g h i s k n o w n a b o ut w h at t h e e f f e cts of u s e r f e e s w o ul d b e.

F o r e x a m ple , c o n si d e r t h e tr e m e n d o u s d o w n str e a m m o v e m e nt o f g r ai n 

o n t h e M i s si s si p p i R i v e r, c a r r y i n g o u r e x p o rt tr a d e t o d e e p w ate r p o rt s,

a n d t h e c o r r e s p o n d i n g u p str e a m m o v e m e nt o f f e rtili z e r s a n d f u el. A 

u s e r ta x w o ul d h a v e a p r o f o u n d e ff e ct o n a g ri c u lt u r e i n t h e M i d dle W e st

a n d t h e M i s si s si p p i V all e y a n d t h u s a r e g i o n al e c o n o m ic i m p a ct t h at 

i s of la r g e b ut u n k n o w n m a g nit u d e, b e c a u s e it h a s n ot e v e n b e e n e v al u ate d. 

It s e e m s t o m e t h at r e c e n tl y t h e r e h a s b e e n, i n p a rt s of g o v e r n m e nt

a n d t h e p u bli c, a n a i r of u n d u e h a st e a b o ut p r e s c ri b i n g u s e r f e e s o n 

w a t e r w a y s - - a te n d e n c y t o t r e a t t h e s u b j e ct a s " a n i d e a w h o s e ti m e h a s 

c o m e, " w it h o ut a d e q u ate e v al u ati o n of t h e f a ct s a n d c o n s e q u e n c e s. T h e

m e m b e rs of t h is S u b c o m m it te e a r e a s w ell a w a r e a s I a m of t h e d a n g e r

of le tt i n g a n y s u c h att it u d e e n t e r t h e p r e p a r a ti o n of a n y l e g i sl ati o n.

A n d u s e r fe e l e g i sl a ti o n h a s p r o f o u n d p o t e n ti al e ff e cts o n t h e d e li c at e

b ala n c e of t h e A m e ric a n e c o n o m ic s t r u c t u r e .

B il li o n s o f d o ll a r s i n p ri v at e f u n d s h a v e b e e n i n v e ste d i n i n d u str y 

al o n g i n la n d w at e r w a y s, p r e m i s e d u p o n t h e p r e s e n t s y ste m of b a r g e 

n a vi g ati o n. B e f o r e a n yt h i n g i s d o n e t o a lt e r t h e s y ste m o r t h e m et h o d 

of fi n a n ci n g it s o p e r ati o n, t h e f a ct s m u st b e e st a b li s h e d a n d m eti c u l o u sl y

e x a m i n e d. I t h i n k t h at i s s elf e vi d e nt.

If t h e a d m i n i str a ti o n d e m a n d s u s e r f e e s, t h e n t h e C o n g r e s s m u st

d e m a n d t h e f a c t s - - a ll t h e f a ct s a s t o t h e c o m ple x i n t e r p l a y of s u c h
5 9

- 6 

f e e s t h r o u g h t h e e c o n o m ic s t r u c t u r e - - s o t h at t h e c o n s e q u e n c e s of

i m p o si n g f e e s c a n be e x a m i n e d, a n d t h e n a c c e p t e d o r r e j e c t e d o n a

r a ti o n al b a si s. I w o ul d p r e d i c t t h at t h e c o n c e pt o f ta xi n g t h is ri v e r

tr a f fi c w o ul d t h e n b e r e j e ct e d.

If t h e f a ct s a r e n ot a v ail a b l e, a n d I b eli e v e t h e y a r e n ot, t h e n t h e

C o n g r e s s i s n ot y et i n a p o sit i o n t o l e g i sl a t e o n u s e r f e e s. T h e y c a n

o nl y l e g i sl a t e a m e a n s of e st a b li s h i n g t h e f a c t s, a n d I w o ul d p r e d i c t

t h at t h is w o ul d e n ta il a l o n g c o m ple x, a n d v e r y e x p e n si v e e c o n o m ic

st u d y. It m u st be a s k e d t h e n, I b eli e v e, w h et h e r t h e e x p e n s e of

s u c h a st u d y i s w a r r a n t e d. T his i n it s e l f i s o p e n t o q u e sti o n.

I a p p r e c i a t e t h e o p p o rt u nit y t o p r o vi d e t h is st a t e m e n t.

5 4- 2 3 9 0 - 7 5 - 5
6 0

Sta te m e nt of H o n o r a ble J a m e s O. E a stl a n d 

b e f o r e t h e S e n ate P u b li c W or k s S u b c o m m it te e 

o n W ate r R e s o u r c e s a t V ic k s b u r g, M i s sis si p p i, 

M a y 1 6, 1 9 7 5.

I a m d eli g hte d t h at t h e s u b c o m m it te e i s u p d ati n g it s i n f o r m ati o n 

o n t h e p u bli c w o r k s a cti v iti e s of t h e C o r p s of E n g i n e e r s. It i s e s s e n ti a l 

t h at t h e r e s p o n si b l e c o m m itt e e s h a v e f ull i n f o r m ati o n o n t h e a c ti v iti e s 

of o u r f e d e r a l a g e n cie s a s t h e y p e r f o r m t h e i r a u t h o ri z e d p u bli c s e r v i c e s.

T h e C o r p s o f E n g i n e e r s h a s d o n e a tr e m e n d o u s j o b i n s e r v i n g 

A m e ric a. T h e C o n g r e s s h a s pla c e d u p o n t h e m t h e r e s p o n si b ilit y of 

m a n a gi n g o u r l a r g e r st r e a m s f o r fl o o d c o n tr o l, n a vi g ati o n a n d o t h e r 

p u r p o s e s. T his r e s p o n si b ilit y i s f ri g hte ni n g w h e n w e c o n si d e r t h at a 

m aj o r p o rti o n o f o u r p o p ula ti o n is al o n g o u r n a vi g a ble st r e a m s a n d t h e 

l a r g e m etr o p o lit a n a r e a s a r o u n d t h e p e ri m e t e r of t h e c o u ntr y w h e r e p o rt s 

s e r v e o u r i m p o rt a n d e x p o rt n e e d s f o r g o o d s a n d h u m a n t r a f fi c. T h e 

m ai n te n a n c e of h a r b o r s al o n e i s a st u p e n d o u s t a s k.

I n t h e e a rl y d a y s of o u r c o u ntr y, w at e r w a s t h e m a j o r m e a n s of 

t r a n s p o rt a ti o n f o r a g ri c u lt u r a l p r o d u c t s, i n d u stri a l p r o d u cts a n d f o r 

h u m a n t r a v e l. M uc h of t h is c o m m e r c e w a s li m ite d t o t h e p e ri o d s of t h e 

y e a r w h e n t h e str e a m s w e r e at fl o o d st a g e. T h e r e s p o n si b ilit y of m a ki n g 

o u r w a t e r hi g h w a y s u s e f u l t h r o u g h o ut t h e y e a r w a s pla c e d u p o n t h e C o r p s 

a n d it h a s d o n e a n e x c ell e nt j o b o f o p e ni n g u p t h e i n t e r n a l m a r k e t s of t h e 

U nit e d S t ate s a n d t h e e x p o rt m a r k e t s o f t h e w o rl d t o o u r i n d u stri e s a n d 

f a r m s.

T h e s y st e m h a s b e e n d e v el o p e d t o t h e p oi n t t h at n e a rl y h alf of 

A m e ri c a's c o m m e r c e m o v e s u p o n i n la n d n a vi g a ble st r e a m s. It i s t h e 

c h e a p e st m et h o d of t r a n s p o rt a ti o n f o r h e a v y g o o d s a n d i s e x tr e m el y 

i m p o rt a n t i n t h i s d a y w h e n e n e r g y c o n s u m pti o n i s of p ri m e i m p o rt a n c e. 

W e a r e c u r r e n tl y r e a pi n g a d dit i o n al b e n e fit s f r o m o u r p a st i n v e st m e n ts 

i n t h e i n la n d n a vi g ati o n s y ste m .

T h e C o r p s h a s e x e r c i s e d g o o d j u d g m e nt a n d f o r e si g h t i n m a ki n g 

t h e g r e a t e s t p o s si b l e u s e of a v ail a b l e f u n d s. I n d e v el o pi n g n a vi g ati o n 

t h e C o r p s h a s s o c o n str u ct e d s o m e d a m s s o t h at t h e y c o n tr i b u t e t o fl o o d 

c o n tr o l a n d / o r t o h y d r o - e l e c tri c p o w e r g e n e r ati o n. T h e s e m u lt i p u r p o s e 

b e n e fit s h a v e b e e n e x tr e m el y i m p o rt a n t i n t h e i m m e d ia te p a st t h r e e y e a r s 

f o r fl o o d c o n tr o l a s w ell a s t h e c o nti n u o u s c o ntr i b uti o n t o e l e c t ri c p o w e r 

g e n e r ati o n.
6 1

r p e o ple h a v e i n v e ste d fi v e b ill i o n d o ll a r s i n fl o o d c o n tr o l.

O n e p oi n t ei g h t y - n i n e bil li o n d o ll a r s of t h i s w a s i n t h e M i s si s si p p i R i v e r 

V all e y, i n cl u di n g t ri b u t a ri e s, si n c e t h e i n c e pti o n of o u r fl o o d c o n tr o l 

p r o g r a m . I a m i n f o r m e d t h at t h e M R T p r o j e c t i s a b o ut 3 7 % c o m ple te 

a n d i n t h e 1 9 7 3 fl o o d al o n e t h e p a rti a ll y i n st a ll e d w o r k s m it i g at e d d a m a g e s 

i n e x c e s s of f o u rt e e n bil li o n d o ll a r s. T h e r e a r e fe w a r e a s o f p u bli c i n ­

v e st m e n t t h a t h a v e g e n e r ate d c o m p a r a b l e r e t u r n s. T h e s y st e m i s n ot y et 

c o m ple te a s y o u w il l b e a ble t o s e e a s y o u fl y o v e r t h e a r e a a r o u n d 

V ic k s b u r g a n d i n t h e c o rr e s p o n d i n g d elt a a r e a s o f A r k a n s a s a n d L o uis ia n a. 

M o st of t h e r e m ai n i n g w o r k s n e e d e d a r e a u t h o ri z e d, a n d I a m h o p e f u l t h at 

t h e C o n g r e s s w il l e x p e dit e f u n di n g t o fi n ali z e t h e C o r p s' pla n s t o p r o vi d e 

m a xi m u m p r o t e cti o n t o t h e a g ri c u lt u r a l a n d m etr o p o lit a n a r e a s i n t h e 

l o w e r M i s si s si p p i V all e y.

I a m o p p o s e d t o t h e A d m i n i str a ti o n's p r o p o s al t o p la c e u s e r c h a r g e s 

o n i n la n d w ate r w a y tr a f fi c. It i s n o m o r e f e a si b l e t o a p pl y s u c h c h a r g e s 

t h a n it w o ul d b e t o p l a c e t h e m u p o n t h e o c e a n - g oi n g v e s s e l s t h at u tili z e 

o u r h a r b o r s i n i n t e r n ati o n al t r a d e . C e rta i n l y t h e o p e r ati o n a n d m ai n te n a n c e 

o f t h e p o rt f a c iliti e s t h at s e r v e a s d e p ots f o r t h e a s s e m b li n g, l o a di n g a n d 

u nl o a di n g of t h e g o o d s a n d c o m m e r c e i s a l e g iti m ate c h a r g e. H o w e v e r, 

e q uit y d e m a n d s t h at i n la n d a n d o v e r s e a s w a t e r t r a n s p o rt a ti o n b e t r e a t e d 

e q u all y t o e n c o u r a g e t h e d i stri b u ti o n of t h e p r o d u cti o n of o u r p la nts a n d 

f a r m s t o o u r o w n p e o ple a s w ell a s i n f o r ei g n t r a d e.

T h e e a rl y st r u c t u r e s of t h e C o r p s a r e i n s o m e i n st a n c e s i n a d e q u ate 

f o r t o d a y's n e e d s. C o n diti o n s of t h e s y st e m a r e c h a n g e d a s a d dit i o n al 

f a c iliti e s a r e i n st a ll e d a n d t h e fl o w o f t h e st r e a m i s a lt e r e d . S o m e of t h e 

l o c k s a n d d a m s h a v e b e c o m e o b s o l ete a n d u n d e r s o m e c ir c u m st a n c e s 

d a n g e r o u s t o t r a f fi c. T h e y n o l o n g e r c o n tr i b u t e e ff e cti v el y t o fl o o d c o n tr o l. 

I n t h e s e i n st a n c e s, m o d e r niz i n g o r r e p la ci n g t h e st r u c t u r e s i s e s s e n ti a l 

t o t h e c o nti n ui n g d e v el o p m e nt o f t h e a r e a s a f f e cte d a n d t o t h e p r e s e r v a ti o n 

o f o u r i n la n d w ate r w a y s y ste m . T h e s e m o d e r n i z ati o n s o r r e p l a c e m e n t s 

of o b s o le te f a c iliti e s n e e d t o b e s c h e d ule d a n d f u n d e d a s q uic kl y a s p o s si b l e.

I a m d e e pl y c o n c e r n e d a b o ut r e c e n t d e v el o p m e nts t h at w ill a ff e ct 

t h e C o r p s o f E n g i n e e r s. It i s b ei n g f o r c e d i n t o a r e a s it i s ill e q ui p p e d t o 

c o p e w it h.

T h e e x e r c i s e of f e d e r a l r e g u l a t o r y a u t h o riti e s a n d t h e r e s u lt a n t 

f e d e r a l c o n tr o l o f d e v el o p m e nt b y t h e C o r p s of E n g i n e e r s p u r s u a n t t o 

S e cti o n 4 0 4 o f F W P C A, o v e r i n la n d ri v e r s, st r e a m s a n d l a k e s a n d o v e r
6 2

i n t e r -ti d a l a r e a s b e y o n d t h e tr a d iti o n a l b o u n d a rie s of f e d e r a l n a vi g ati o n al 

s e r v it u d e is a m aj o r s hif t i n p oli c y a n d p r o g r a m wit h r e s p e c t t o t h e i n ­

v ol v e m e nt o f t h e f e d e r a l g o v e r n m e nt i n la n d u s e c o n tr o l. L a yi n g t h e la n d 

u s e c o n tr o l i s s u e a si d e f o r t h e m o m e nt, a p r e li m i n a r y s u r v e y w o ul d r e q u ir e 

a n a d dit i o n al all o c ati o n of s o m e w h e r e i n t h e n ei g h b o r h o o d of 1, 7 5 0 p e r s o n n el 

s p a c e s a n d a n a d dit i o n al f e d e r a l e x p e n dit u r e of $ 5 2 m il li o n i n c a s e t h e 

b r o a d e st e xte n si o n of t h e C o r p s' j u ri s d i c ti o n of S e cti o n 4 0 4 i s a d o pte d.

P utt i n g t h e D e p a rt m e nt of t h e A r m y i n t o t h e s e a r e a s w il l r e s u lt 

i n a s u b st a n ti a l d u pli c ati o n of e f f o rt a n d p u r p o s e wit h r e s p e c t t o o t h e r 

f e d e r a l p r o g r a m s. It w ill i n fri n g e o n t h e D e p a rt m e nt of C o m m e r c e's 

C o a st al Z o n e M a n a g e m e nt p r o g r a m , a n d w il l d ir e c tl y i m p a ct o n t h e 

a cti v iti e s of t h e D e p a rt m e nt of A g ri c u lt u r e's S oil C o n s e r v ati o n p r o g r a m .

I c a n f o r e s e e c o stl y d ela y s t o t h e s e a g e n cie s a s w ell a s t o p ri v at e la n d 

o w n e r s if t h e y a r e r e q u ir e d t o o bta i n p e r m it s f o r a n y a cti v it y i n v ol v i n g 

d i s p o s al o f d r e d g e m a t e ri a l o r t h e u s e of fill i n t h e a ffe cte d a r e a s. It 

i s q u e sti o n a ble w h et h e r t h e C o r p s s h o ul d b e c o m e i n v ol v e d w it h s u c h a 

s w e e pi n g r e g u l a t o r y p r o g r a m b e y o n d t h e b o u n d a rie s of t h e f e d e r a l 

n a vi g ati o n al s e r v it u d e a r e a s a s w e k n o w t h e m a n d w hic h h i st o ri c a ll y h a v e 

b e e n t h e r e s p o n si b ilit y of t h e st a t e s. M o r e o v e r, e xte n si o n of f e d e r a l 

j u ri s d i c ti o n b e y o n d a r e a s f all i n g w it hi n t h e n a vi g ati o n al s e r v it u d e r a i s e s 

o t h e r i m p o rt a n t i s s u e s.

( 1) M o st la n d titl e s t o st r e a m b e d s w e r e i s s u e d t o ri p a ri a n o w n e r s 

b y f e d e r a l la n d o ffic e s w it h o ut r e s e r v a ti o n . I m p o si n g a n a vi g ati o n al st at u s 

a n d f e d e r a l c o n tr o l o n s u c h st r e a m s w o ul d b e ta nta m o u nt t o ta ki n g s u c h la n d 

w it h o ut c o m p e n s ati o n u n l e s s c o m p e n s ati o n w e r e i n f a ct p r o vi d e d.

( 2) T h e l o c al ta xi n g j u ri s d i c ti o n m a y be d e p ri v e d of a s u b sta n tia l 

a m o u nt of p r o p e rt y t a x r e v e n u e a s a r e s u lt o f S e cti o n 4 0 4 f e d e r a l j u ri s d i c ti o n 

b ei n g e x e r c i s e d b y d e p ri v i n g t h e la n d o w n e r of a n y r e a l b e n e fi ci al u s e of his 

p r o p e rt y. I r a i s e t h e s e i s s u e s at t h i s ti m e - - f o r t h e s e a n d o t h e r i s s u e s y et 

t o b e r a i s e d r e q u ir e a c l o s e r s c r u ti n y b e f o r e w e all o w t h e C o r p s t o p r o c e e d 

i n t o a r e g u l at o r y p r o g r a m w hic h it i s n o w b ei n g f o r c e d i n t o , a n d c e rt ai n l y 

e x c e e d s w h at p e r c ei v e a s h a vi n g b e e n c o n g r e s si o n al i n te nt.

I a m d eli g hte d t h at t h e s u b c o m m itte e i s v is it i n g t h e V ic k s b u r g a r e a. 

It o f f e r s a g o o d e x a m ple of t h e a c c o m p li s h m e n t s of t h e p a st a n d t h e n e e d s of 

t h e f u t u r e. I h o p e f o r y o u a p l e a s a n t a n d i n f o r m ati v e i n s p e cti o n t o u r.

o 0 o
6 3

Se nat or G r a v e l . W e h a ve a l o n g li st of wit nesse s t o be h ear d t o d a y. 

T h e wit ne sses ha v e bee n gi ve n t he o p p o rt u nit y t o s u b mit writt e n 

state m e nts, b u t t he y ma y be hea r d f or oral testi m o n y as well. W e’ll 

j u st g o d o w n t he list of wit n esses a n d he ar t he m as we ha ve t he m 

arra n ge d here. O b vi o usl y, we d o n’t ha v e t o list e n t o d u plicati o ns i n 

state m e nts w he n we rec o g nize eac h wit n ess, b ut t he y will be gi ve n 

t he o p p o rt u nit y t o s pe a k if t he y s o desire.

If I mi g ht a d d h ere, I defi nitel y a gree, as w o ul d a n y per s o n w h o has 

tra v ele d ar o u n d t o see t he pr o ble m of e xcess water t h at y o u s uffer 

fr o m, t h at s o m et hi n g has t o be d o ne a b o ut it.

O ur fir st wit n ess t hi s m or ni n g is t he H o n o ra ble T h a d C oc hra n, U. S. 

H o u se of Re pre se ntati ve s. I’ m ver y ha p p y t o ha v e y o u lea d off o ur 

list of wit ne sses here t o d a y. Y o u o b vi o u sl y ha v e t he gr eate st c o n cer n 

f or t he nee ds of t hi s area, s o g o a he a d a n d ma k e a case f or y o ur c o nstit u e nts, as I’ m s ur e y o u will. T h e fl o or is y o u rs, s o w o ul d y o u pr ocee d as y o u see fit.

S T A T E M E N T O F H O N. T H A D C O C H R A N, A R E P R E S E N T A TI V E I N 

C O N G R E S S F R O M T H E S T A T E O F MI S SI S SI P PI

Re pr ese ntati v e C o c h r a n . T h a n k y o u, Mr. C h air ma n. It is reall y 

a n h o n or a n d a pri vile ge t o welc o m e y o u a n d y o ur disti n g uis he d 

s u b c o m mitte e t o Vic k s b ur g a n d t he F o urt h C o n g ressi o nal Di strict of 

Mississi p pi, w hic h I a m h o n o re d t o re p res e nt i n t he U. S. C o n gres s i n 

t he H o u se of Re pre se ntati ves.

I wa nt t o c o m m e n d y o u a n d t he me m bers of t he s u b c o m mitte e 

f or y o ur se nse of res p o n si bilit y, y o ur c o n cer n f or pr o m oti n g water 

res o urce s de v el o p m e nt a n d f or bri n gi n g y o ur i n q uir y t o o ur area. 

I ass u re y o u t h at t he citiz e ns of t he F o urt h C o n g ressi o nal Di strict 

a n d t he l o wer Mississi p pi Ri v er Vall e y are vit all y i nter este d i n all 

as p ect s of water wa ys de v el o p m e nt, beca use, m or e t h a n a n y ot h er 

are a of t hi s Nati o n, we h a ve e x perie nce d a f ull mea s ure of t he h ar d s hi p 

ca use d b y t he fre q u e nt fl o o di n g of t he Missis si p pi Ri ver a n d its 

tri b utaries. H o w e ver, o ur are a is, als o, f ull y a ware of t he gr eat be n efit 

t h at ca n be pr o vi de d t hr o u g h c o nti n ue d a n d se nsi ble de v el o p m e nt 

of fl o o d c o ntr ol mea s ure s a n d na vi g ati o n al pr oject s.

T he l o wer Mississi p pi re gi o n l o n gs f or f ull de v el o p m e nt of its 

i nla n d na vi gati o nal res o urces, a n d we will c o nti n u e t o c o o per ate wit h 

t he G o ver n me nt’s e ff ort s t o acc o m pli s h e x p a nsi o n of o ur n a vi gati o nal 

o p p ort u nitie s.

T his series of h eari n gs c o me s a t a v er y o p p ort u n e ti me i n t he hist or y 

of ci vil w or k s de v el o p m e nt o n o ur wat er w a ys. I n rec e nt ye ars a n d 

c o nti n ui n g at t he pre se nt ti me, t he re ha s bee n a gr eat er i ntere st devel o pi n g i n be h alf of re e val uati o n of o u r hist o ric a p p r oa c h t o deter mi ni n g t he w o rt h of i nla n d water wa y a n d ot her water res o urce s de v el o pme nt pr ojects. T his ree val uati o n ha s c o me a b o ut f or m a n y rea s o n s, 

b u t t he m o st si g nific a nt has bee n t he gr o wi n g c o nc er n t h at s uc h p r ojects ma y ha v e a n a d v erse i m pa ct o n o ur e n vir o n m e nt.

I n rec e nt ye ars t he C o n g ress has act e d t o i ns u re e n vir o n me ntal 

pr ote cti o n t hr o u g h e n act m e nt of a va riet y of stat ute s ai m e d at rec o gnizi n g e n vir o n m e nt al c o n si de rati o ns i n virt u all y e ver y acti vit y i n t he 

p u blic a n d pri vate sect ors. T his has bec o me a critical fa ct or i n waterwa y s de v el o p m e nt, a n d, i n fact, a seri o us c o nc er n affe cti n g virt u all y 

e ve r y pr oject c urre ntl y u n der de v el o p m e nt or c o n si d erati o n.
6 4

As t he pri n ci pal water res o u rces a ge nc y i n t hi s c o u ntr y, t he C or ps 

of E n gi n eer s’ eff orts will be si g nifica ntl y affect e d b y t he i m pa ct of 

e n vir o n me ntal c o n si de rati o ns a n d c o n str ai nts. T h e ulti m ate bal a nc e 

we stri ke will ha ve a dir ect i m pa ct o n t he li ves of t he citiz e ns w h o 

li ve a n d w or k i n o ur ri v er vall e ys a n d area s s ur r o u n di n g t he m. T h ese 

are t he citize ns w h o k n o w first ha n d of t he be n efit s deri ve d fr o m t he 

o ve r $ 3 0 billi o n alr ea d y i n v este d t hr o u g h t he U. S. C or ps of E n gi ne ers 

f or fl o o d c o ntr ol, s h or eli ne pr otecti o n, na vi g ati o n, a n d rel ate d p u rp oses o ver t he 1 5 0- y ear hist or y of o ur N ati o n’s eff ort s i n t he are a of 

water res o urces de v el o p m e nt.

Na vi g ati o n al i m pr o ve me nts are es pe ciall y si g nific a nt f or t h e pe o ple 

of t he l o wer Mis sissi p pi, a n d t he Nati o n as a w h ole. It has bee n estimate d t h at i n e xcess of 1 % billi o n t o n s of c o m m erce m o ve t hr o u g h 

c or p s c o n str uct e d facilitie s eac h year. T his t o n na g e has bee n stea dil y 

i ncr easi n g o ver t he pa st deca de. I n 1 9 6 3, c o m m erce bet w ee n Mi n n ea p olis a n d t he G ulf of M e xic o t ot ale d a p p r o xi m atel y 1 5 8 m illi o n t o ns. 

I n 1 9 7 3, t he t o n na g e bet we e n t he t w o p oi nt s h a d i ncr eas e d t o r o u g hl y 

2 7 6 milli o n t o n s. T he se statistic s are q uite si g nific a nt w he n o ne 

c o nsi ders t he ri p ple effect s uc h c o m m erce has o n t he ec o n o mies of 

c o m m u niti es ser ve d b y na vi gati o nal de v el o p m e nt a n d its c o nti n u e d 

i m pr o ve m e nt.

Mis sissi p pi’s ri v er p orts h a v e e nj o ye d a gr o wt h c o m par a bl e t o t h at 

e vi de nce d b y t h e statistic s a b o ve. Gre e n ville’s p o rt has s h o w n a n 

i ncre ase of o ver 1 milli o n t o n s d uri n g t he pa st deca de. Vic ks b ur g ha s 

s h o w n a n i nc rea se of r o u g hl y 1 % milli o n t o n s f or t he sa m e peri o d.

N ot o nl y t he statistic s of v ol u m e, b u t t he t y p es of c o m m o dities 

m o vi n g t hr o u g h o ur water wa ys i n t he l o wer Mis sissi p pi Valle y are, 

als o, i m p o rta nt. C o m m o ditie s s uc h as f uel oils, gas oli ne, li q uefie d 

b uta n e a n d pr o pa n e, c oal a n d a variet y of c he mical deri vati ve s w hic h 

are s o i m p o rta nt t o t hi s N ati o n’s e ner g y re q uir e m e nts are ma ki n g u p 

t he b ul k of t he t o n na g e. H o w e ver, grai n, fi bers, ores, steel, a n d ot h er 

ma n ufact ur e d pr o d ucts are, als o, a pa rt of t he c o m m erce i n o ur are a 

de pe n de nt o n water wa ys f or i ne x pe nsi ve tra ns p o rt.

C o nti n ue d de v el o p m e nt of t he na vi g ati o n al p ote ntial of o ur i nla n d 

water wa ys mea ns m or e t h a n c hea p tra ns p o rtati o n. It has t he effect 

of e nc o ura gi n g ec o n o mic de v el o p m e nt i n t he are as a n d re gi o n s ser v e d 

b y t he i m pr o ve m e nt s. T his mea ns j o bs, e x pa nsi o n of l ocal ta x bases, 

a n d a d diti o nal a gri c ult ural a n d i n d ust rial de v el o p m e nt a n d pr o d ucti o n 

w hic h be n efit o ur ec o n o m y as a w h ole a n d c o ntri b ute t o t he p ositi o n 

of o ur Nati o n as a lea di n g s u p plier of esse ntial pr o d ucts.

E v e n t h o u g h t h e citiz e ns of t his pa rt of t he c o u ntr y a p pre ciate t he 

pa st a n d o n g oi n g be nefits of wat er w a ys de v el o p m e nt, partic ula rl y 

fr o m i m pr o v e d na vi gati o nal o p p ort u nitie s, we, als o, realize t he nee d 

t o pa us e a n d c o nsi der, as t his c o m mittee is d oi n g, Mr. C h air ma n, 

w here we are a n d w h ere we m u st g o. It is t h e o bli g ati o n of t h e C o n gre ss 

t o i ns ure t h at t he pe o ple are getti n g t heir m o ne y ’s w ort h fr o m t hes e 

pr oj ects. I n t hi s re g ar d, I feel t h at t he i n v esti gati o n of c urre nt o pe rati o ns, pla n s, a n d pr o ble m s of t he i nla n d water wa y pr o gra m fr o m t he 

vie w p oi nt of all t he varie d i nt ere sts i n v ol ve d will i ns ure t h at all 

p ossi bl e be nefits, b ot h t o o ur e n vir o n me nt a n d ec o n o mic well- bei n g 

will be realiz e d.

I n ma ki n g a n i n v esti gati o n of t hes e eff orts, we m u st realize t he 

c o m ple xit y of t he iss ues a n d i nt ere sts i n v ol ve d. A bala nce d a n d o pe n
6 5

vie w is nece ssar y if we are t o c o nti n u e t o i ns u re t h at all i nt ere sts are 

ser ve d b y c o nti n ue d i nla n d water w a y d e vel o p m e nt.

O ver t he y ear s t his Nati o n has d e pe n de d o n t he C or ps of E n gi neers 

f or t he i m ple me ntati o n of o ur water w a ys pr o gra m s. T his has r es ulte d 

i n a n a wes o me res p o nsi bilit y fr o m t heir p oi nt of vie w. T h eir tas k 

has n ot bee n a n eas y o ne. T h e C o n gress has fre q u e ntl y see n fit t o 

e x p a n d c or ps acti vit y, a n d t o o i nfre q ue ntl y has faile d —t o o freq u e ntl y has f &ile d t o pr o vi de t he fi na n cial mea ns or s pecific dire cti o n 

re q uire d t o acc o m plis h ne w tas ks efficie ntl y or wit hi n t he ti m e act uall y n ee de d.

Fr o m its m ore ge n erall y c o ncei v e d missi o n a n d tra diti o n al r ole of 

pla n ni n g, desi g ni n g, a n d c o n str u cti n g water res o urces pr ojects primaril y f or na vi gati o n, fl o o d c o ntr ol, h y d r o p o w er ge n erati o n, rec rea ­

ti o n, a n d water s u p pl y, t he c or ps has see n its missi o n e x p a n d e d i n 

rec e nt yea rs t o i ncl u de: asse ss m e nt of wat er-e ner g y rel ati o ns hi p a n d 

wa ys t o o pti mize water use f or t his p u r p os e; assi sta n ce t o St at e a n d 

l ocal a ut h oriti es i n de v el o p m e nt of water ma na g e m e nt pr o gra ms; 

ur b a n st u dies of maj or metr o p olita n area s t o pr o vi de i nf or m ati o n t o 

a p pr o pri ate officials o n pr o ble ms of fl o o di n g, water s u p pl y, a n d 

wa ste water ma na ge me nt; de v el o p m e nt of fl o o d plai n ma na ge me nt 

ser vic e a n d assi sta n ce i n Fe d eral n o o d i ns u ra n ce pr o gra ms; assi sta n ce 

t o St at e a ge ncie s i n t heir de v el o p m e nt of c oastal z o ne ma na ge me nt 

pla ns; f oc usi n g o n n o nstr u ct u ral alt er n ati ve s f or fl o o d c o ntr ol; a n d 

asse ss m e nt of pre vi o usl y a ut h oriz e d b ut n ot i m ple m e nte d pr ojects 

wit h c o nsi d erati o n gi ve n t o d ea ut h o riz ati o n.

Wit h all its varie d b ut relate d res p o nsi bilities, t he c or ps m ust ha v e 

pr o per g ui d a nce b y t he C o n gress t o acc o m plis h w h at m ust be its 

o verri di n g missi o n i n m y vie w —t he de v el o p me nt, w her e p ossi ble, 

of all o ur water w a ys t o o btai n o pti m u m ec o n o mic be nefits f or all o ur 

citize ns w hile i ns u ri n g a d e q uate pr otecti o n f or o ur e n vir o n me nt a n d 

pri vate pr o pert y ri g hts.

I belie v e t he gr eat maj orit y of A m eric a ns n o w realiz e t he desira bilit y of acc o m plis hi n g t his g oal, a n d t h at t he y are willi n g t o ma ke 

t he reas o na ble c o m pr o mis es t h at will bri n g a b o ut ma xi m u m l o n gter m be n efit t o o ur Nati o n as a w h ole.

T he pe o ple of t his r e gi o n are kee nl y a ware of t h e v ari et y of p r o bl e ms 

t h at e xist t o hi n der or d erl y de v el o p m e nt of nee d e d pr ojects i n t his 

area. We ha v e hea r d criti cis m of pr ojects f or e n vir o n m e nt al reas o ns. 

T o s o me t hese critici s ms see m u n w arr a nte d a n d e xc essi ve. S o me pe o ple 

feel t h at t here is a n eff ort u n d er w a y t o c o m pletel y halt water wa y 

de v el o p me nt a n d bri n g t o a cl ose t he p ossi bilit y of c o nti n ue d ec o n o mic 

de v el o p m e nt w hic h de p e n d s u p o n or d erl y c o m pleti o n of vari o u s 

pr oj ects.

We s h o ul d ha v e, a n d I t hi n k C o n g ress s h o ul d ha v e, gr eat c o ncer n f or o ur e n vir o n me nt. We i n t he l o wer Missi ssi p pi Vall e y a p ­

preciate, m ore t h a n s o me realize, t he nee d t o pr ote ct o ur wil dlife, 

preser ve wil der ness area s a n d pr o vi de recreati o n al be ne fits of v al u e t o 

t his a n d f ut ur e ge n erati o n s. T his re gi o n of t he c o u ntr y is bl esse d wit h 

a n a b u n da nce of wil dlife a n d recr eati o n al p ote ntial, a fact t h at is 

f ull y a p p reciat e d b y its citize n s. H o w e ver, its pr otecti o n d oes n ot 

re q uire us t o t ot all y disr e gar d o ur ec o n o mic f ut ure b y c o m pletel y 

st o p pi n g water w a y de v el o p me nt. O n t he c o ntr ar y, it e nc o ur a ge s us 

all t o reasse ss o ur met h o ds t o fi n d mea ns of sati sf yi n g, t hr o u g h c o mpr o mis e, t he g oals of ec o n o mic de v el o p m e nt a n d e n vir o n me ntal 

pr otecti o n.
6 6

A n ot h er s u bject w hic h I t hi n k deser v es t he i m m e di ate atte nti o n of 

t he C o n gress a n d ma y be t his c o m mittee, Mr. C h air m a n, a n d t he 

H o u se C o m mittee o n P u blic W or ks a n d Tr a n s p ortati o n o n w hic h 

I ser ve, is t h at of t he e xte nt of c or ps res p o nsi bilit y o ver waters w hic h 

are n ot na vi gati o n al.

O n M arc h 2 7 of t his yea r, t he U. S. Di strict C o urt f or t he Di strict 

of C ol u m bia re n d ere d a decisi o n i n t he case of N at ur al Res o urces

Deje nse C o u ncil v. C all a w ay, w hic h I k n o w t he c hair m a n ma y be 

fa miliar wit h, w hic h ma y ha v e far-r eac hi n g i m plicati o n s o n waterwa y s de v el o p me nt, a n d parti c ularl y o n na vi gati o nal pr ojects u n d er 

c o n str u cti o n or c o nsi derati o n. T h e c o urt r ule d t h at u n der secti o n 4 0 4 

of t he Fe d eral W ate r P oll uti o n Act A m e n d me nts of 1 9 7 2, t he res p o nsi bilit y a n d a ut h o rit y of t he C or ps of E n gi neers t o re g ulate t he 

dis p osal of dre d g e d mat erial or fill mat erial e xte n ds ge ne rall y t o all 

“ w aters of t he U nite d St at es ” as defi ne d b y t he c o u rt. T hi s la n g u a ge 

br o a de ns t he c or p s’ res p o nsi bilit y a n d a ut h o rit y dra stic all y b y bri n gi n g u n der c or p s j uri s dicti o n pra cti call y all la kes, stre a m s, ri vers, 

a n d wetla n ds i n t his c o u ntr y.

Pri or t o t hi s decisi o n, t he c or ps has o perate d u n d er a m ore li mite d 

defi niti o n of “ n a vi ga ble water s” i n iss ui n g re g ulati o n s u n d er its 

a ut h o rit y. T h e m ost rec e nt defi niti o n of “ na vi ga ble water s” iss ue d 

b y t he c or ps was i n 1 9 7 2, w he n t h e y defi ne d t he ter m t o i ncl u d e 

“all water s w hic h are pre se ntl y use d, or were use d i n t he past, or 

s usc e pti ble t o use i n t heir nat ur al c o n diti o n or b y r eas o na ble i m p r o v eme nt as a mea ns t o tra ns p o rt i nter state c o m m erce s h or e war d t o 

t heir or di na r y hi g h water mar k, a n d all waters w hic h are s u bject 

t o t he e b b a n d fl o w of t he ti de s h or e war d t o t heir me a n hi g h 

water m ar k. ” E v e n t his defi niti o n has att ra ct e d criticis m fr o m s o me 

q u art ers, partic ula rl y t he p hr ase “ use d i n t he pa st.” M a n y of o ur 

stre a m s were utilize d f or c o m m erce d uri n g t he de vel o pi n g yea rs of 

o ur y o u n g Nati o n o n t his c o nti n e nt. H o we ver, t he y ha v e i n ma n y 

i nst a nc es n ot bee n s o u se d si nce t he t ur n of t he ce nt ur y.

Wit h t he rec e nt c o urt decisi o n, h o we v er, we are i n a n e w ball ga me. 

E v er y far me r or ot h er la n d o w n er i n t his c o u ntr y will be se verel y 

restricte d i n his a bilit y t o deal wit h t he pr o ble ms of water o n his 

o w n pr o pert y, n o m atter h o w s mall or is olat e d t he pr o ble m mi g ht 

be. He mi g ht e ve n ha v e t o get a per mit fr o m t he C or ps of E n gi neers 

j u st t o b uil d a st oc k p o n d. T his w o ul d be a bs u r d i n m y o pi ni o n.

It is m y vie w t h at t he C o n gress di d n ot i nte n d t hi s far-r eac hi n g 

i nter pr etati o n, a n d I a m gi vi n g t o p pri orit y t o see ki n g c o n gres si o nal 

a p p r o v al of a bill I i ntr o d u ce d o n We d nes da y of t his wee k t o s pecif y 

c o n gre ssi o nal i nte nt as t o c or ps a ut h orit y o ver o ur i nla n d waters. 

M y le gislati o n will defi ne na vi ga ble wat ers i n its m ore tra diti o n al 

a n d l o n g-sta n di n g ter m s w hic h were acce pte d pri o r t o t his c o u rt 

decisi o n a n d will restrict c or ps a ut h orit y t o o nl y na vi ga ble wat ers.

Re pre se ntati ve C o c h r a n . A n ot h er area of gre at c o nc er n t o t h ose 

affecte d b y wat er w a ys d e vel o p m e nt i n o ur re gi o n is t h at of miti g ati o n. 

We all a gree, I belie ve, t h at t h e pr oce ss of re d u ci n g t h e a d ve rse i m pa ct 

of c or ps pr ojects o n fis h a n d wil dlife res o urces a n d t heir val ue t o t he 

p u bli c is a w ort h w hile a n d nec essa r y o ne. H o we ver, t he i m pa ct of 

miti g ati o n m ust be re vie we d wit h t he ai m of det er mi ni n g w h et h er t he 

effect is o ne t h at n ot o nl y pr o vi des t he nece ssar y pr otecti o ns f or o ur 

e n vir o n me nt b u t als o w h et h er t he pri vate i nt ere sts i n v ol ve d are bei n g 

gi ve n a d e q uate c o nsi der ati o n.
6 7

W he n miti g ati o n is r e q uire d aft er l o n g a n d e x h a usti v e st u d y b y t he 

c or ps, fis h a n d wil dlife i nte rests, a n d t he p u bli c, t he m o st c o m m o n 

a p pr oac h, a n d t he m o st c o ntr o versial, is t h at of g o v er n me nt ac q uisiti o n 

of pri vate la n d s s uita ble f or pre ser vi n g t he p u blic i nter est i n fis h a n d 

wil dlife res o urce s a n d t he pre ser vati o n of ha bitat f or t hes e res o urc es. 

Of c o urse, t his is t he si m ple st met h o d of miti g ati o n. H o w e ver, it 

res ults i n t w o ot h er acti o ns t o w hic h ma n y pe o ple are n o w e x pr essi n g 

res er v ati o n. T h e la n d is ta k e n off l ocal ta x r oles a n d o ut of pri vate 

o w ne rs hi p. T his c o ncer n o n t he pa rt of ma n y i n t he l o wer Missis si p pi 

Valle y is bec o mi n g m ore wi de s pre a d i n vie w of t he rat h er lar g e tra ct s 

of la n d w hic h are bei n g c o nsi d ere d nec essa r y t o offset fis h a n d wil dlife, 

as well as r ecr eati o n al, l osses.

As a n e xa m ple, t he Fis h a n d Wil dlif e Ser vic e re p ort o n miti g ati o n 

f or t he pr o p ose d Yaz o o Basi n a n d l o wer tri b utaries pr oje ct i ncl u d es a 

rec o m me n dati o n t o ac q uire s o me 4 9, 0 0 0 acres of w o o dla n ds a n d 

c o nti g u o us la n ds l ocat e d i n sc att ere d tra ct s t hr o u g h o ut t he basi n 

f or fis h a n d wil dlife p ur p oses.

T hi s is o ne of ma n y s uc h pr ojects t h at are i ncreasi n gl y ar o usi n g 

c o nc er n o ve r Fe d eral ac q uisiti o n of p ri v ate l a n d s.

I t hi n k we m u st re vie w o ur a p p r oa c h t o miti gati o n, a n d w here 

p ossi ble, I belie ve we c a n c ha n ge o ur e m p hasis fr o m a bs ol ute g o ver nme nt o w n ers hi p t o o ne of g o ver n m e nt s u pe r visi o n, es peciall y w here 

t he g o v er n me nt a n d pri vate i nt ere sts ca n a gree t hr o u g h c o ntra ct or 

eas e m e nt o n a s uit a bl e mea ns of i ns uri n g res pect f or t he p u blic i nte rests, w hile all o wi n g pri vate o w ners hi p.

T hr o u g h c o o perati o n i n a n eff ort t o u n derst a n d eac h ot he r’s p oi nts 

of vie w, I a m certai n t h at all t he citiz e ns of t his c o u ntr y a n d pa rti c u ­

larl y t h ose w h o li ve a n d w or k i n t he i m me diate area s ser v e d b y na vi ­

gati o n al a n d ot h er water res o urces pr ojects ca n rea c h a n acc o m m o dati o n wit h t heir e n vir o n m e nt w hile c o nti n ui n g t o ma k e pr o g ress i n 

ta ki n g ec o n o mic a d va nta ge of o ur i nla n d wat er w a ys.

I n cl osi n g, I w o ul d li ke t o e x pr ess m y pers o nal a p p reciati o n t o y o u, 

Mr. C h air ma n, f or c o mi n g t o Vic ks b ur g. We are pr o u d t o ha ve l oc ate d 

here i n Vic k s b ur g t he Mississi p pi Ri ver C o m missi o n, t he fa m o us 

Water w a ys E x peri m e nt Stati o n, a n d t he Vic k s b ur g Dist rict of t he 

C or p s of E n gi ne ers all of w hic h f u n cti o n u n der t he a ut h orit y a n d at 

t he dire cti o n of y o ur c o m mittee a n d t he C o n gress. B y re c o g nizi n g t he 

res p o nsi bilit y we ha v e f or cl ose atte nti o n t o pr ojects, a n d f ut ure 

pla n ni n g, I t hi n k we ca n, b y w or ki n g t o g et h er, ma k e o ur p art of t he 

c o u ntr y a safer, m or e pr o s per o us a n d m or e e nj o ya ble plac e f or t his 

a n d ot h er ge n erati o n s t o c o me.

Se nat or G r a v e l . T h a n k y o u, C o n gre ss m a n C oc hra n, f or y o u r st at eme nt. Y o u r o verall vie w is t he ki n d of state m e nt we nee d t o be gi n 

t his he ari n g t o d a y. O n b e half of t he s u b c o m mittee, I wa nt t o c o m me n d 

y o u pers o nall y f or t he l e gisl ati o n y o u i ntr o d uce d la st wee k i n rel ati o n ­

s hi p t o t he c o urt’s decisi o n re g ar di n g water w a ys. I ’ m s ure i n t he da ys 

a he a d t he Se nat e will ha v e heari n g s o n t he s u bject. Ce rtai nl y, i n t he 

H o use, y o u will be pressi n g y o ur le gi slati o n a n d passi n g t hi s pressi n g 

pr o ble m o n t o c o m mittee s t o see t h at it will be ha n dle d. O b vi o u sl y, 

it ’s a br o a d i nter pretati o n, a n d t he i m pa ct of i nter p retati o n is g oi n g 

t o be s o m et hi n g critical t o ha n dle.
6 8

Re pr ese ntati v e C o c h r a n . I ma y p oi nt t his o ut. Da y bef ore y esterda y, o ur s u bc o m mittee was c o n d ucti n g a n i n v esti gati o n a n d re vi e w of 

t he Fe d eral W ate r P oll uti o n C o ntr ol Act A m e n d me nts of 1 9 7 2, wit h 

refere nc e t o s pecial c ha n ges t h at we mi g ht rec o m m e n d i n t h at act. 

T his s uit ha d ori gi nall y bee n file d a g ai n st t he E n vir o n me ntal Pr ote cti o n A ge n c y a n d t he secti o n of t he Ar m y. We al wa ys ha ve E P A 

re pr ese nte d, a n d t he E P A re p res e ntati ve t ol d o ur s u b c o m mitte e t h at 

it w o ul d rec o m me n d a d o pti o n of t he br o a de st defi niti o n of na vi ga ble 

waters t h at t he C or p s of E n gi ne ers ha d list e d as a n alt er n ati ve. 

Pr o m ul gati n g u n d er t he a ut h orit y of t his decisi o n a n d i n res p o nse t o 

q ue sti o ni n g fr o m s o me of o ur s u bc o m mitte e, E P A sai d t h at t his w o ul d 

e ve n e xt e n d t o t he re q uir e m e nt of a rice far mer i n L o uisia n a or Mi ssissi p pi b uil di n g a di ke o n his la n d f or t he p ur p ose of rice c ulti v ati o n 

t o see k a per mit fr o m t he U. S. C or ps of E n gi neers bef ore he c o ul d 

c ulti v ate t h at cr o p; t h at t hi s was water of t he U nite d St ate s u n der 

t he defi niti o n t h at t his c o urt has iss ue d, a n d i n m y j u d g m e nt, t his is 

a sit uati o n t h at t he C o n gress ne v er i nte n d e d w he n it pas se d t hi s bill 

or t he a m e n d me nts of 1 9 7 2, a n d I see n o alt er n ati ve ot h er t ha n 

le gislati o n t o t he c o ntrar y.

Se nat or G r a v e l . I t hi n k y o ur vie w is acc urate, ver y acc urate, a n d 

I a p pre ciate y o ur testi m o n y t o d a y.

O u r n e xt wit n ess is Mr. He r m a n Glazier, e xe c uti ve as sista nt t o t he 

G o v er n o r, re pres e nti n g t he H o n ora ble Willi a m L. Waller, G o ver n or of 

Mississi p pi.

Ple ase feel free t o pr oc ee d.

S T A T E M E N T O F H E R M A N G L A ZI E R, E X E C U TI V E A S SI S T A N T T O T H E 

G O V E R N O R O F MI S SI S SI P PI

Mr. G l a zi e r . Mr. C h air ma n a n d me m bers of t he s u b c o m mittee, 

I a m He r m a n Glazier, e xe c uti ve as sista nt t o t he G o ver n or of Mississi p pi a n d G o ver n or Waller ’s desi g n ate d re p res e ntati ve t o a p pe ar i n 

his be h alf.

Mr. C h air ma n, i n t he na me of G o ver n or Waller a n d o n be h alf of 

t he St at e of Mississi p pi, I a m pri vile ge d t o welc o m e y o u a gai n t o t he 

St at e of Mississi p pi. We re call wit h gratef ul a p p reciati o n y o u r i nte rest 

i n t he State a n d her pe o ple f oll o wi n g H u rri ca n e Ca mille, y o ur p articipati o n i n t h e P u blic W or ks C o m m itte e heari n g s i n t he latt er pa rt of 

1 9 6 9 i n Bil o xi.

E v er y disc u ssi o n of t he ci vil w or k s pr o gra ms of t he U. S. Ar m y 

C or p s- of E n gi n eer s is of vital i ntere st t o Mississi p pi, a n d a n y c o n gr essi o nal acti o n rel ate d t he ret o, b y its ver y nat ure, will ha v e a n i m pa ct 

u p o n o ur St at e.

O ne of t he gr eatest ec o n o mic a d va nta ge s e n u ri n g t o t he St at e of 

Mississi p pi is t he a v ail a bilit y of na vi ga ble water w a ys. T his nat ural 

ass et has bee n res p o nsi ble f or t he i n v est m e nt of ma n y milli o ns of 

d ollars a n d f or t he cre ati o n of h u n dre d s of ne w j o b s d uri n g t he pa st 

fe w ye ars. Mississi p pi, al o n g wit h Ala ba m a, Te n nes see, a n d Ke nt uc k y, is l o o ki n g f or w ar d wit h gr eat a ntici pati o n t o t he c o m pl eti o n of 

t he Te n nes see- T o m bi g be e Ri ver W ate r w a y, t he c ul mi nati o n of ma n y 

ye ars of pla n ni n g f or a dir ect r o ute fr o m t he Te n nes see Ri ve r t o t he 

G ulf of Me xic o.
6 9

Mis sissi p pi’s eff orts t o b uil d a st r o n g er e c o n o mic ba se a n d t o i n crea se 

t he per c a pita i n c o m e of o ur pe o ple are dir ectl y tie d t o t h e utiliz ati o n 

of water tra ns p o rtati o n.

T h e p olic y of Fe der al i m pr o ve me nt a n d mai nt e n a n ce of A m eri ca’s 

water w a ys, free fr o m t olls or use r c har ges, is as ol d as o ur Nati o n. 

T h e nee d of risi n g efficie nc y a n d pr os perit y of A m eric a n far mi n g, i n 

t he face of t he m o u nti n g crisis of w orl d h u n ger, calls f or a r e de dic ati o n 

t o a water wa ys p olic y w hic h has ser ve d o ur Nati o n s o l o n g a n d s o 

s ucce ssf ull y. O u r hist oricall y free water wa ys p olic y is a n d has bee n 

f or t he b e ne fit of all t he p e o ple, n ot j u st t he u ser. T h e gr eatest p orti o n 

of t he be n efits e n ures t o t he c o n s u m er, refle cte d i n t he gr o cer y bill, 

t he electric bill, t h e he ati n g oil bill, t h e gas oli ne bill, t he far m er’s 

c he mical bill. As s o a ptl y state d, it is tr ul y t he p o or m a n ’s pi peli ne.

Mis sissi p pi has hist oricall y s u p p orte d a n d e nc o ura ge d f ull utili za ­

ti o n of o ur i nl a n d wat er w a ys. T his e nc o m p asse s all as p ect s t here o f, 

i ncl u di n g a d e q uate na vi g ati o n al str uct ure s, pr o per c ha n nel m ai nt ena n ce, t oll-free use t her e of, n o n certifi cat e d users.

T h e rec e nt dre d ge a n d fill o pi ni o n of t h e Distri ct C o urt a n d t he f o ur 

alt er nati v es pr o p os e d b y t he C or ps of E n gi ne ers i n t h eir rea cti o n 

t he ret o ca us es us t o feel t h at t hi s c o m mitte e a n d t he C o n gres s m ust 

res ol ve t hi s m atte r i n a rea s o n a bl e wa y. It a p pea rs t o us t h at if t he 

C o n g ress ha d i nt e n de d t o e xt e n d t h e a ut h orit y of t he C or ps of E n gineer s fr o m na vi g ati o n al str ea ms t o all t h e water s a n d wetla n d s of t he 

St ate, it w o ul d ha v e s p o k e n. It all c o mes d o w n t o a s u m m er rer u n of 

si g nific a nt deteri or ati o n as rel ate d t o t he Cle a n Air Act.

Mis sissi p pi is n ot t he o nl y S tate w h ose l o n g -ra n ge ec o n o mic gr o wt h 

pla ns i n v ol ve t he f ull utiliz ati o n of i nla n d water w a ys. T h e Mississi p pi 

Ri v er p o rts of Natc h ez, Vic ks b ur g, Gree n ville, a n d R os e dale are 

esse ntial t o o ur ec o n o m y, a n d were it n ot f or s o me m a n ma de str uct ure s 

acr oss t he Mississi p pi Ri ver wit h s uc h l o w vertic al s pa ns, t h o se p o rts 

w o ul d h a v e a n e v e n g reater i m pa ct t h ere o n. Yell o w C ree k i n t h e n ort h ­

ea st c or ner of o ur St ate, Gre e n w o o d a n d Yaz o o Cit y o n t he Yaz o o 

Ri v er, Pas ca g o ula o n t he Pa sca g o ula Ri ver a n d Ba y o u Ca s otte a n d 

t he pla n n e d p o rts o n t he Te n nes see- T o m bi g b ee Ri v er W ate r w a y all 

will e n h a nc e Mis sissi p pi’s de dic ate d eff orts t o pr o d uc e f o o d, fee d, a n d 

fi ber f or n ati o n al a n d i nt er nati o nal c o n s u m pti o n. T h e st atic testi n g of 

t he Sat u r n M o o n R o c kets a n d t h e s p ace s h uttl e e n gi nes at t he N ati o n al 

S pac e Tec h n ol o g y La b o rat or y i n Mis sissi p pi di d a n d will rel y u p o n 

a d e q uate i nla n d water wa y tra ns p o rtati o n.

Mr. C h air ma n, if t he i nla n d water wa ys s yste m acti vitie s of t he 

C or ps of E n gi nee rs bec o m e d e p e n de nt i n a n y w a y u p o n t oll c har g es t o 

s u p p ort na vi g ati o n al str uct ure s a n d c ha n nel mai nt e n a n ce a n d i mpr o ve m e nt, a n d if t he e n vir o n m e nt al i m pa cts of dre d gi n g a n d filli n g 

are pe r mitt e d t o o ve r bala nc e t he ec o n o mic be n efits t herefr o m, t he re 

will be j u st t w o l osers: ( 1) All t h e pe o ple of t h e U nite d St at es; a n d, 

( 2) t he pe o ple of t h at pa rt of t he re st of t he w orl d rel yi n g u p o n us t o 

get o ur pr o d ucts fr o m t he i nla n d pa rts of t he U nite d St at es al o n g t he 

i nla n d water wa ys s yste m t o o ur c oa stal citie s a n d o ur ocea n p orts. 

E v er y ti m e t h e t oll, fee, or c ha r ge o n i nl a n d w ate r w a y u sers c o nc e pt 

has bee n br o u g ht bac k o ut of m ot h b all s, Mis sissi p pi ha s o p p ose d it. 

We still d o.
7 0

Mr. C h air ma n, t he U. S. Di strict C o u rt f or t he Dist rict of C ol u m bia 

has u s ur pe d t he p rer o gati ve s of t he C o n g ress of t he U nite d State s a n d 

i g n or e d t he ri g hts of t he res pecti ve St ate s wit h its dre d ge a n d fill 

decisi o n. Neit h er of us e ve n has t he b e nefit of a n a p pellat e re vie w. T h e 

far mers face e n o u g h o bst acles s uc h as fl o o ds, e xcessi ve rai ns, a n d 

dr o u g hts w it h o ut ha vi n g t o c o pe wit h t he dile m m a of s ec uri n g a h o st 

of per mits as t h e y pr o g ress t hr o u g h t he far mi n g seas o n. At s o me ti m e — 

li ke t he pr ese nt — b y s o me o ne —li k e t he C o n g ress —a reas o na ble bala nce m ust be dra w n, t he E n vir o n me ntal Pr ote cti o n A ge n c y t o t he 

c o ntr ar y n ot w it h sta n di n g.

Mr. C h air ma n, we a p preciat e t he o p p ort u nit y aff or de d us t o d a y, we 

are h o n o re d t o ha ve y o u i n t he g re at State of Mississi p pi a n d we welc o me t he c ha nce t o offer o ur ser vic es t o y o u a n d t he s u b c o m mitte e t o 

ma ke y o ur visit as e nj o ya ble as p ossi ble.

T h a n k y o u, sir.

Se nat or G r a v e l . I ’ d li ke t o as k y o u a c o u ple of q ue sti o ns. C o ul d 

y o u gi ve us t h e fi g ures, a n esti m ate ma y be, of t he d ollar da m a ge 

ca use d b y fl o o di n g of y o u r w ater wa ys, a n d if y o u ca n, I ’ d as k t h at y o u 

s u b mit t h at f or t he rec or d.

Mr. G l a zi e r . I ’ m ma ki n g t h at a vaila ble, sir. I belie ve, per ha ps, 

t here will be s o me state m e nts ma d e t o t he c o m mitte e l at er o n t h at will 

c o ve r t h at; ot h er wise, I will s u b mit it t o y o u. ( See p. 7 1.)

Se n at or G r a v e l . Well, I’ll le a ve it u p t o y o u t o d o t h at. Y o u mi g ht 

als o pr o vi de at t he sa me ti me a desc ri pti o n of t he g o o ds a n d pr o d ucts 

carrie d o n y o ur wat er w a ys.

C o n cer ni n g t he d re d g e a n d fill c o urt d ecisi o n, Mr. Glazie r, w h at are 

y o u r t h o u g hts wit h res p ect t o t he dele gati o n of t his per mit a ut h o rit y 

t o t he States?

Mr. G l a zi e r . Mr. C hair m a n, we ha v e a n ot h er f or m of a d mitti n g 

s yste m s of dele gati ve a ut h o rit y fr o m o ne Fe d eral a ge nc y t o a n ot h er. 

S o meti mes it w or ks, a n d s o meti me s it d oe s n’t. S o meti mes it is nece ssar y, a n d s o m eti m es it is u n ne cess ar y. T h ere are ti me s t h at w he n 

per mits are gra nte d t he o ve rsi g ht of t he Fe d eral a ge n c y is o ve rr ul e d. 

I n s o me cases t h at a p plies t o t he sit uati o n of t he C or ps of E n gi ne ers. 

We ha v e al m ost bec o me a per mit la n d. T h ere are t hi n gs i n v ol ve d i n 

Missis si p pi wit h t he “ dr e d ge a n d fill” a n d we’ ve re sc he d ule d j u d g m e nt 

or are per mitti n g ti m e t o C o n gr ess — a n d C oc hra n t o uc he d o n o ne of 

t he m t h at rel ate s t o t he area of t he rice i n d ust r y. La st wee k t he rai nwaters w ere n ot r u n ni n g t hr o u g h t he fiel ds a n d far m s as t h e y ’re d oi n g 

t o d a y. N o w, if t he sa me practice is f oll o we d t h at ha s bee n g oi n g o n 

e ver si nce t he St ate of Missis si p pi ha s o pe n e d u p t heir far mi n g, 

s o m e b o d y’s g oi n g t o be o ut r u n ni n g a water p u m p i o get t h at water 

o ut of his la n d, t o gi ve hi m a little bre a k s o o n s o t h at he ca n re pla nt 

or ma k e pre par ati o n s t o pla nt as s o o n as it ’s dr y e n o u g h. He d oe s n’t 

k n o w w he n t h at’s c o mi n g, a n d he has t o get o ut t here a n d d o t he 

pla nti n g w he n he ca n. He d oe s n’t ha v e ti m e t o r u n d o w n s o me per mit 

iss ue d i n or d er t o acc o m m o date t h at sit uati o n. He realize s at t he 

sa me ti me t h at per ha p s t her e m u st be s o me m o nit o ri n g of t he bala nce 

bet w ee n utilizati o n a n d t he e n vir o n me nt.

T he se pe o ple t h at are o pe rati n g o n t hi s la n d are o pe rati n g o n t heir 

h o mes, t heir s o urc e of i nc o me a n d t he la n d t o w hic h t he y ha v e bee n 

tie d f or ma n y, ma n y year s. I ’ve ne v er r u n acr oss o ne w h o was g oi n g 

t o ma n a ge his la n d i n s uc h a wa y as t o da m a ge it a n y m or e t h a n is
7 1

a bs o l utel y nece ssar y f or pr o d ucti o n, a n d at t he sa me ti me he res pects 

t he ri g hts of his nei g h b ors s o t h at he is g oi n g t o ma n a ge his o w n 

pr o pert y i n s uc h a w a y s o as n ot t o i nfri n ge t he ri g hts of his nei g h b ors.

I g uess w h at I ’ m sa yi n g, Mr. C h air ma n, is t h at we’re alr ea d y o ve rper mitte d.

T h a n k y o u, Mr. C h air m a n.

Se n at or G r a v e l . T ha n k y o u ver y m uc h, Mr. Glazier. We a p p re ciate 

y o u r testif yi n g, a n d, als o, gi ve m y pers o nal re g ar d s t o y o ur fi ne 

G o ver n or.

[ Mr. Glazier s u p plie d t he f oll o wi n g:]

h e Ca pi t o l

J acks o n, Miss., M ay 2 1, 1 9 7 5.

H o n. M i k e Gr a v e l , U. S. Se nat or,

C h air ma n, S u bc o m mittee o n W ater Res ources, C o m mittee o n P u blic W orks, U. S.

Se n ate, Dirkse n B uil di n g, W as hi n gt o n, D. C.

e a r Se n a t o r Gr a v e l : Mississi p pi was h o n ore d b y y o ur visit last wee k, a n d

t he praise f or y o ur h ol di n g t h e h eari n g o n t h e C or ps of E n gi neers was o utst a n di n g.

I was re q ue ste d b y t he C hair m a n t o o btai n data o n t he v ol u me a n d t y pes of 

c o m m o dities o n t he i nla n d water wa ys affecti n g Mississi p pi. I a m please d t o e ncl ose 

here wit h a c o p y of s uc h data, w hic h is c o m plete f or t he cale n d ar year 1 9 73. Of 

c o urse, 1 9 73 was a ba d year f or i nla n d water w a ys beca use of t he l o n g- h ol di n g

peri o d of fl o o di n g. I n s pite of t h at, h o we ver, a greater tre n d was still reflecte d. 

Res pectf ull y,

e r m a n Gl a zi e r

Exec utive Assist a nt.

[ T he i nf or m ati o n att ac h e d t o t he a b o ve letter was als o i ntr o d uce d 

i nt o t he rec or d as p art of t he testi m o n y of Ge ne ral K oisc h. It is 

i ncl u de d i n t he re p ort e ntitle d, “ Water b or ne C o m merc e of t he U nite d 

St ate s,” a n d ma y be f o u n d at p. 2 2 9.]

Se n at or G r a v e l . O ur ne xt wit n ess is t he H o n ora ble N at B ullar d, 

ma y or of t he cit y of Vic k s b ur g, Miss. We ha d t he pleas ure of meeti n g 

wit h hi m last ni g ht, a n d we c ert ai nl y a p pre ciate t he h os pit alit y s h o w n 

us b y t he cit y of Vic ks b ur g. We als o disc us se d s o me of t he pr o ble ms 

c o nfr o nti n g hi m i n t he disc h ar ge of his d utie s c o nc er ni n g o ur w at erwa ys s yst e m. We are ha p p y t o ha v e y o u here i n o ur hea ri n g t his 

m or ni n g.

S T A T E M E N T O F H O N. N A T B U L L A R D, M A Y O R, CI T Y O F V I C K S B U R G

Mr. B u l l a r d . As ma y or of Vic k s b ur g, I e x pres s t he a p p reciati o n 

of t he pe o ple of Vic ks b ur g a n d Wa rre n C o u nt y f or t he o p p o rt u nit y 

t o ma k e a state m e nt t o t his c o m mittee a n d its a ble staf f t o o ur area, 

a n d h o pe y o ur sta y will be ple asa nt a n d pr o d ucti ve.

T he pre si d e nt of t he Missi ssi p pi Ri v er C o m missi o n a n d ot he r 

wit ne sses will pr o vi de tec h nical data t o t his c o m mittee, b ut i n a s mall 

wa y, I w o ul d li ke t o tr y t o rel ate s o me of t he be nefits t o t he pe o ple 

t h at res ult fr o m t he acti vities of t he C or ps of E n gi ne ers i n t hi s area. 

We s pe a k wit h pri de a b o ut t he c or ps here, n ot si m pl y beca use t here 

are frie n ds a n d nei g h b ors pr ofe ssi o n all y e m pl o ye d i n its a ge ncie s 

base d here — w hi c h ma y s o m e w h at c ol or o ur j u d g m e nt — b ut beca use 

t his are a has dir ectl y, me as ura bl y, a n d defi nitel y be nefite d fr o m l ocal 

pr oject s of t he c or ps.

Vic k s b ur g a n d Warre n C o u nt y’s access t o t he Missis si p pi Ri ve r is 

t he C or ps of E n gi ne er’s Yaz o o Ri v er Di v ersi o n Ca n al. O ur stat u s as a 

p ort wit h si g ni fica nt t o n na ge is esta blis he d a n d mai nt ai n e d beca use
1 2

of t h e n a vi gati o n dr e d gi n g b y t he c or ps. T his cit y ’s free d o m fr o m fl o o d 

w hic h is e ve n n o w disa str o us o n la n ds ar o u n d us is d ue t o t he sea w all 

erecte d b y t he C or p s of E n gi n eers. T he Wa rre n C o u nt y Ha r b or n ort h 

of t he cit y pr o vi des s u b sta nti al e m pl o y m e nt i n t his a rea a n d is a n ot h er 

c or ps pr oject. T o statistic all y ill u str ate, t he l ocal t o n na g e has i ncrease d fr o m 1, 3 8 2, 7 8 5 t o ns i n 1 9 6 4 t o 2, 7 8 7, 2 3 9 t o ns 1 0 y ear s later i n 

1 9 7 3, pri m aril y as a res ult of t he af ore m e nti o n e d har b o r pr oject. 

Se n at or G r a v e l . W hat was t he first a m o u nt of t o n n a ge?

Mr. B u l l a r d . 1, 3 8 2, 7 8 5, a n d i n 1 9 7 3, 1 0 year s later, it ha d i ncre ase d 

t o 2, 7 8 7, 2 3 9 t o ns.

T h e be nefits t o Vic k s b ur g a n d Wa rre n C o u nt y i nci de nt t o t he 

acti vit y of t he C or ps of E n gi ne ers I ha v e me nti o n e d are e n or m o u s. 

J u st t he re v e n u e ge n erate d i n Fe d eral ta x ati o n of t he i n d ust rie s a n d 

i n di vi d uals l oc ate d a n d e m pl o ye d as a res ult of t he c or ps pr ojects 

d o u btle ssl y has re p ai d t he Fe d eral c ost s ma n y f ol d. M ulti pl y t he 

be nefits o n a n ati o n al scale al o n g o ur water w a ys, a n d t he c o ntri b uti o n 

of t he c or ps t o o ur nati o n al ec o n o m y, o ur lifest yle, a n d o ur pers o nal 

c o mf ort is m o st si g nifica nt. Yet t h e p ote ntial f or i m pr o ve m e nt t hr o u g h 

a d diti o n al c or ps eff ort s is m ore si g nific a nt still.

T he s u g gesti o n t h at water w a y usa ge s h o ul d be ta xe d or t h at pr ojects 

s h o ul d be c urtaile d w o ul d i m p e de o ur nati o n al gr o wt h a n d del a y o ur 

pr o gre ss t o w ar d a f ull y e m pl o ye d, m ore c o m f ort a ble, free s ociet y.

I n t he f or mi n g yea rs of o ur Nati o n, water traffic basi call y carrie d 

t he material s a n d pr oject s t h at le d t o o ur c o m m ercial a n d nati o n al 

de v el o p me nt. As we a p p r oac h o ur 2 0 0t h year, we rec o g nize t hese 

i m pr o ve d water wa ys are i ncr easi n g i n i m p orta n ce t o o ur welfar e as 

t he c he a pe st, lea st e ner g y-c o ns u mi n g a ve n ue t o car r y o ur materi als 

a n d pr o d u cts i n o u r c o nti n ui n g de v el o p m e nt a n d pr o s perit y.

I t h a n k y o u.

Se nat or G r a v e l . T h a n k y o u ver y m uc h, Mr. Ma y or. I d o n’t ha v e 

a n y q ue sti o ns. I a p preciate t he ge n eral ness wit h w hic h y o u deli v ere d 

y o ur state m e nt. I ass ur e y o u t he c o nte xt of y o ur state m e nt s pe a ks f or 

itself, a n d we certai nl y a p p reciate it.

Let me sa y a gai n h o w m uc h we a p preciat e y o ur h os pitalit y.

O ur ne xt wit n ess, H o n. P at D u n n e, ma y or of Gree n vill e, Miss., 

ca n n ot be here, b ut he will be re p res e nt e d b y Mr. Milt o n P. Bar sc h - 

d orf, p o rt dir ect or of Gree n ville, Miss.

S T A T E M E N T O F MI L T O N P. B A R S C H D O R F, P O R T DI R E C T O R, G R E E N ­

VI L L E. MI S S., O N B E H A L F O F H O N. P A T RI C K A. D U N N E, M A Y O R

Mr. B a r s c h d o r f . Mr. C h air ma n, t he ma y or of Gree n ville, P at 

D u n ne, as ke d me t o e x pres s his re g ret s at bei n g u na ble t o be here 

t o d a y a n d, als o, his dee p a p p reciati o n f or y o ur ta ki n g of y o u r val ua ble 

ti me t o c o me d o w n a n d see w h at t his valle y has t o offer a n d w h at it 

reall y mea ns t o ha v e t he gr eat Missi ssi p pi Ri v er a n d its tri b utaries 

as o ne of t heir gre at ec o n o mic asset s.

I w o n ’t rea d his state m e nt. I ’ll j u st s u m m ariz e it, sir, f or p ur p oses 

of ti me here t o d a y.

{ T he state m e nt a p p ear s at p. 7 4.]

Mr. B a r s c h d o r f . I w o ul d li ke t o a d d, h o we ver, t h at o ne of t he 

reas o ns t he m a y o r was u na ble t o be here t o d a y is t h at h e m ust atte n d 

a cere m o n y a n n o u n ci n g t he o pe ni n g of a facilit y w hic h I t hi n k is 

ver y s y m b olic of, per h a ps, w h at t his hea ri n g t o d a y is all a b o ut.
7 3

E m pl o y m e nt i n Gree n vill e i n t he i m pa ct are as rel ati n g t o water 

tra ns p o rtati o n is esti m ate d t o be o v er $ 9 0 milli o n i n wa ges a n d salari es 

or a b o ut 1 0, 0 0 0 j o bs i n t he ye ar 1 9 7 3. T his fi g ure re pres e nt s 2 1 pe rce nt 

of t he t ot al w or k f orce of t he Gree n vill e area, a m o st si g nific a nt a n d 

critic al se g me nt of Gre e n ville’s ec o n o m y.

T he cit y of Gree n ville, as well as all ot her c o m m u niti es l oc ate d o n 

t hi s gre at i nla n d water wa y w h ose ec o n o mies are s o criticall y tie d i nt o 

t he c o nti n u e d he alt h y gr o wt h of o ur water b or ne c o m m erce, are 

u n alt era bl y o p p o se d t o a n y sc he m e of use r c har ges or ta x ass ess me nt 

w hic h w o ul d ulti m atel y destr o y t his m o st efficie nt f or m of m o vi n g 

o ur Nati o n’s c o m m erce a n d b ur de n o ur ta x pa yers wit h t he a d d e d 

c osts of alter nate f or m s of tra ns p o rtati o n.

I str o n gl y rec o m m e n d, Mr. C h air ma n, t h at y o ur c o m mittee, a n d 

t h os e i n Wa s hi n gt o n c har ge d wit h mai nt ai ni n g a n d de vel o pi n g a n 

i nte r m o del tra ns p o rtati o n s yste m t o ser v e t he s hi p per s a n d ta x pa yers 

of t his Nati o n m o st effecti vel y a n d efficie ntl y, wei g h ver y car ef ull y 

t he net ec o n o mic effects of si n gli n g o ut a n d gra d u all y str a n gli n g a 

healt h y water car rier i n d u str y u n d er t he g uise of ai di n g a n d s ol vi n g 

t he fi na ncial pr o ble m s of t he rail r oa d i n d u str y a n d gi vi n g t he a p ­

peara nc e of e q uita ble tre at m e nt t o all be neficiarie s of o ur water 

res o ur ces.

T h a n k y o u ver y m uc h.

Se n at o r G r a v e l . T h a n k y o u ver y m uc h. We a p p reciate y o ur 

c o mi n g f or w ar d, sir.

[ Ma y or D u n n e’s state m e nt f oll o ws:]
" ••

M A Y O R

I M P A C T O F W A T E R B O R N E C O M M E R C E 

O N T H E

E C O N O M Y O F G R E E N V I L L E

T h e a m o u n t o f e c o n o m i c i m p a c t w h i c h w a t e r b o r n e c o m m e r c e h a s 

o n t h e G r e e n v i l l e M e t r o p o l i t a n a r e a i s b a s e d u p o n t h r e e d i s t i n c t l y 

d i f f e r e n t t y p e s o f i m p a c t .

1 . T h e m o s t d i r e c t e c o n o m i c i m p a c t i s t h e p a y m e n t o f w a g e s 

a n d s a l a r i e s t o w o r k e r s w h o a r e d i r e c t l y e n g a g e d i n w a t e r b o r n e 

c o m m e r c e i n c l u d i n g t h o s e w h o a r e e n g a g e d i n w a t e r t r a n s p o r t a t i o n 

b u t a r e e m p l o y e d b y f i r m s w h o s e p r i m a r y p u r p o s e i s n o t w a t e r 

t r a n s p o r t a t i o n .

2 . T h e s e c o n d d i r e c t a r e a o f i m p a c t i s t h e p a y m e n t o f w a g e s 

a n d s a l a r i e s t o w o r k e r s w h o d o n o t w o r k i n w a t e r b o r n e c o m m e r c e , b u t 

w h o a r e e m p l o y e d b y i n d u s t r i e s o r f i r m s t h a t h a v e b e e n i n d u c e d t o 

l o c a t e i n t h e G r e e n v i l l e a r e a b e c a u s e o f a v a i l a b i l i t y o f w a t e r - 

c o m p e t i t i v e r a i l r a t e s .

3 . T h e t h i r d a r e a o f e c o n o m i c i m p a c t i s t h e i n d i r e c t o r 

s e c o n d a r y i m p a c t w h i c h r e s u l t s f r o m t h e t w o i m p a c t s d e s c r i b e d a b o v e , 

t h i s s e c o n d a r y e f f e c t , w h i c h i s a l s o k n o w n a s t h e m u l t i p l i e r e f f e c t , 

i s d e t e r m i n e d b y t h e e c o n o m i c a c t i v i t y w h i c h i s i n d u c e d b y t h e 

e x p e n d i t u r e o f m o n e y p a i d o u t i n t h e f o r m o f w a g e s a n d s a l a r i e s

" P O R T C I T V O F T H E D E L T A ”
7 5

d e s c r i b e d a b o v e . S t u d i e s c o n d u c t e d i n o t h e r p o r t c i t i e s i n d i c a t e 

t h a t t h e a d d i t i o n a l e m p l o y m e n t i n t h e w a t e r t r a n s p o r t a t i o n s e c t o r 

o f t h i s s e c o n d a r y i m p a c t w i l l b e a t t h e r a t i o o f a p p r o x i m a t e l y o n e 

a n d o n e - h a l f t o o n e , o r, f o r e v e r y j o b t h a t i s a d d e d i n t h e G r e e n v i l l e 

a r e a b e c a u s e o f w a t e r t r a n s p o r t a t i o n , t h e r e w i l l b e o n e a n d o n e - h a l f 

a d d i t i o n a l j o b s g e n e r a t e d e l s e w h e r e i n t h e e c o n o m y o f t h e a r e a t o 

p r o v i d e f o r t h e i n c r e a s e d d e m a n d f o r g o o d s a n d s e r v i c e s .

E m p l o y m e n t i n G r e e n v i l l e i n t h e s e f i r s t t w o i m p a c t a r e a s i s 

e s t i m a t e d t o b e 4 , 0 0 0 j o b s w i t h a n n u a l w a g e s a n d s a l a r i e s o f o v e r

$ 3 5 , 0 0 0 , 0 0 0 . 0 0 .

T h e o v e r a l l e c o n o m i c i m p a c t i n c l u d i n g t h e s e c o n d a r y e f f e c t s 

b e c a u s e o f w a t e r t r a n s p o r t a t i o n i s e s t i m a t e d t o b e o v e r $ 9 0 , 0 0 0 , 0 0 0 

i n w a g e s a n d s a l a r i e s o r r o u g h l y 1 0 , 0 0 0 j o b s i n t h e y e a r 1 9 7 3 .

T h i s f i g u r e r e p r e s e n t s 2 1 % o f t h e t o t a l w o r k f o r c e i n t h e 

G r e e n v i l l e a r e a . A m o s t s i g n i f i c a n t a n d c r i t i c a l s e g m e n t o f o u r

e c o n o m y .

T h e C i t y o f G r e e n v i l l e a s w e l l a s a l l o t h e r c o m m u n i t i e s l o c a t e d 

o n t h i s g r e a t i n l a n d w a t e r w a y w h o s e e c o n o m i e s a r e s o c r i t i c a l l y t i e d 

i n t o t h e c o n t i n u e d h e a l t h y g r o w t h o f o u r w a t e r b o r n e c o m m e r c e a r e

u n a l t e r a b l y o p p o s e d t o a n y s c h e m e o f u s e r c h a r g e s o r t a x a s s e s s m e n t

" P O R T C I T V O F T H E D E L T A ”

5 4- 2 3 9 0 - 7 5 - 6
7 6

O F FI C E O F T H E M A Y O R

P A T RI C K A. D U N N E

M A Y O R

w h i c h w o u l d u l t i m a t e l y d e s t r o y t h i s m o s t e f f i c i e n t f o r m o f m o v i n g 

o u r n a t i o n ' s c o m m e r c e a n d b u r d e n o u r t a x p a y e r s w i t h t h e a d d e d c o s t s 

o f a l t e r n a t e f o r m s o f t r a n s p o r t a t i o n .

I s t r o n g l y r e c o m m e n d - S e n a t o r G r a v e l , t h a t y o u r c o m m i t t e e , 

a n d t h o s e i n W a s h i n g t o n c h a r g e d w i t h m a i n t a i n i n g a n d d e v e l o p i n g a n 

i n t e r m o d e l t r a n s p o r t a t i o n s y s t e m t o s e r v e t h e s h i p p e r s a n d t a x p a y e r s 

o f t h i s n a t i o n m o s t e f f e c t i v e l y a n d e f f i c i e n t l y , w e i g h v e r y c a r e f u l l y 

t h e n e t e c o n o m i c e f f e c t s o f s i n g l i n g o u t a n d g r a d u a l l y s t r a n g l i n g 

a h e a l t h y w a t e r c a r r i e r i n d u s t r y u n d e r t h e g u i s e o f a i d i n g a n d 

s o l v i n g t h e f i n a n c i a l p r o b l e m s o f t h e r a i l r o a d i n d u s t r y a n d g i v i n g 

t h e a p p e a r a n c e o f e q u i t a b l e t r e a t m e n t t o a l l b e n e f i c i a r i e s o f o u r

w a t e r r e s o u r c e s .

R e s p e c t f u l l y s u b m i t t e d

P a t r i c k A . D u n n e , M a y o r

" P O R T C I T Y O F T H E D E L T A "
7 7

Se nat or G r a v e l . O ur ne xt wit n ess is Maj. Ge n. Fr a n cis K oisc h, 

Di visi o n E n gi ne er, L o w er Mississi p pi Valle y Di visi o n.

Ge n eral, it ’s a plea s ure seei n g y o u a gai n, a n d we a p p reciat e y o u r 

h o s pitalit y e xte n de d t o us o n t hi s visit. F eel free t o pr oc ee d as is m ost 

c o m f orta ble t o y o u.

S T A T E M E N T O F M A T. G E N. F R A N CI S P. K OI S C H, DI VI SI O N E N GIN E E R, L O W E R MI S SI S S I P PI V A L L E Y DI VI SI O N, C O RP S O F E N GIN E E R S

M aj o r Ge n eral K oi s c h . Mr. C h air ma n, I ’ m M aj. Ge n. Fra nci s 

K oisc h. I ’ m t he Pr esi de nt of t he Missi ssi p pi Ri ver C o m missi o n a n d 

Di visi o n E n gi n eer of t he L o w er Missi ssi p pi Valle y.

I ha v e f or t he rec or d, wit h y o ur per missi o n, a writt e n state m e nt 

w hic h I will s u b mit, b u t at t his ti me if I ma y, I w o ul d rea d t o y o u select e d e xc er pt s fr o m m y writt e n state m e nt.

Se nat or G r a v e l . Ver y well, sir.

[ T he st at e m e nt a p p ear s at p. 7 9.]

M aj o r Ge n eral K oi s c h . I a m pleas e d t o ha ve t he o p p o rt u nit y 

t o brief y o u o n o ur na vi g ati o n pr ojects i n t he L o w er Missi ssi p pi 

Valle y.

De s pite t he ge n erall y u nf a v o ra ble nati o n al ec o n o m y, c o m m erce 

o n t he Missi ssi p pi Ri v er i n 1 9 7 4 a m o u nte d t o a n esti m ate d 2 9 0 

milli o n t o ns, u p 5 pe rce nt o ve r 1 9 7 3. T her e has b ee n a stea d y i n creas e 

i n t o n na g e o n t his w ate r w a y, a n d eac h ye ar ’s r e p ort is a n ot h er rec or d 

hi g h. ..

T h e Missi ssi p pi Ri v er is t he k e y ele m e nt of t he mi d- A merica i nla n d 

water wa y n et w or k. We h a ve a m a p o v er he re t o s h o w y o u t he net w o r k. 

A m eric a ns ser ve d b y t he Te n ness ee, C u m b erl a n d, O hi o, Miss o uri, 

Illi n ois, Ar k a ns as, W hite, O u ac hita, a n d ot her ri v ers de p e n d o n t he 

Mis sissi p pi as t heir c o n nect or t o b ot h d o m esti c a n d w orl d ma r kets.

A m ulti billi o n- d olla r i n d ustri al c o m pl e x has bec o me esta blis he d 

al o n g t he 4 0-f o ot- de e p na vi g ati o n c ha n nel bel o w Bat o n R o u g e. A 

n u m b er of fact ors ha v e c o ntri b ute d t o o utst a n di n g gr o wt h of t his 

area, i ncl u di n g: de p e n d a bl e de e p- dr aft na vi g ati o n wit h c o n necti n g 

s hall o w- dra ft c ha n n els, a n a b u n da nt fre s h water s u p pl y, c o nfi de nce i n 

t he Fe d eral fl o o d c o ntr ol pr o gra m, a n d t he mi n eral ric h l o wer c oa st 

of L o ui sia n a.

L o o ki n g a he a d, t he Mississi p pi Ri v er C o m missi o n has c o m plete d 

a c o m pre he n si ve st u d y of t he L o w er Missi ssi p pi re gi o n f or s u b missi o n 

t o t he W ate r Res o urces C o u n cil. I n t his st u d y, m y staff, i n c o or di n ati o n wit h ot h er Fe d eral a ge ncies a n d wit h St at e a n d l ocal i nte rests, 

a nal yz e d t he water-relat e d nee ds of t he re gi o n t hr o u g h t he y ear 2 0 2 0.

I n t his st u d y, it was f o u n d t h at a si g nifica nt gr o wt h is pr ojecte d 

f or t ot al i nla n d, c oast wise, a n d f orei g n c o m m erce. T otal traffic is 

e x p ecte d t o i ncre ase f o ur t o fi ve ti me s m ore t h a n t he c u rre nt le vel.

We ha v e t hr ee na vi g ati o n l oc ks i n t he L o w er Mississi p pi Valle y 

Di visi o n w hic h are bei n g pla n ne d f or re plac e m e nt bec a us e t he y ha v e 

o utli v e d t heir desi g n e d li ves a n d ca n n ot efficie ntl y ha n dle c u rre nt or 

pr ojecte d f ut ur e traffic. O ne is l oc ks a n d da m 2 6 ne ar Alt o n, Ill. 

It s h o ul d be re pla ce d beca use of t he distr esse d st at e of t he e xisti n g 

str uct ure a n d t o sati sf y pr ese nt a n d f ut ure na vi g ati o n n ee ds.

A n ot h er is t he i n n er ha r b or na vi g ati o n ca nal l oc k at Ne w Orle a ns 

w hic h is pla n n e d f or re plac e m e nt u n der t he ori gi nal a ut h o riz ati o n
7 8

f or t he Mis sissi p pi Ri ver - G ulf o utlet w hic h p r o vi de d f o r a re plac e m e nt 

l oc k w he n ec o n o micall y j ustifie d b y o bs olesce nce of t he e xisti n g l oc k 

or b y i ncre ase d traffic.

T h e t hir d l oc k i n v ol ve d is t he Ver milli o n l oc k o n t he hea vil y 

tra v ele d s o ut he r n L o uisia na p orti o n of t he G ulf I nt rac oa stal W at erwa y. T his acti o n is bei n g ta k e n f or b ot h fl o o d c o ntr ol a n d na vi gati o n 

be nefits. We are pr oc ee di n g wit h desi g n of t he re plac e m e nt str u ct u re.

Mai nt e na nce of a de q u ate na vi gati o n de pt h s i n t he har b or s a n d 

water w a ys i n t he L o w er Mississi p pi Valle y Di vi si o n is critic al t o 

t he ec o n o mic m o ve m e nt of wat er b or n e c o m m erce t o a n d fr o m t he 

N ati o n’s he artla n d. T h e fl o o d w aters of 1 9 73, 1 9 7 4, a n d 1 9 7 5 ha v e 

carrie d u n u s uall y lar ge se di m e nt l oa ds a n d mai nt ai ni n g pr oject 

di m e nsi o ns at se ver al l ocati o n s is e xtre mel y diffic ult.

O ur m o st criti cal l ocati o n is t he S o ut h w est Pass, t h e maj or r o ute 

f or s hi p pi n g bet w ee n Ne w Orle a ns a n d t he G ulf of Me xic o. N or mall y 

o ne c or p s h o p per dre d ge a n d o ne or t w o c o ntra ct pi peli ne dre d ges 

ca n me et t he dre d gi n g re q uir e m e nt s i n t hi s area. H o w e ver, i n fiscal 

1 9 74 we dre d g e d f o ur ti me s t he n or m al a m o u nt.

We sta rte d dre d gi n g a gai n i n Ja n u ar y of t his ye ar, a n d we n o w 

ha v e t w o G o v er n me nt- o w ne d a n d t w o c o ntra ct dre d ges w or ki n g 

i n t he S o ut h w est Pass. Siltati o n of t he c ha n nel c o nti n u es t o be a b ­

n or mall y hi g h, a n d we l ost o ur 4 0-f o ot pr oject de pt h o n Ma rc h 1 

w he n it dr o p pe d t o 3 9 feet. T o da y as we sit here at t his heari n g, 

we ha ve o nl y 3 6 feet f or s hi ps u n d er 1 0 0, 0 0 0 dea d w ei g ht t o ns. F or 

lar g er s hi ps, pil ot s are li miti n g t he dr aft t o 3 4 feet beca use of t he 

diffic ult y i n ha n dli n g t he m. Ea c h i nc h of l ost dr aft re p res e nt s a l oss 

i n t he t h o usa n d s of d ollars of c o m m erce det ai n e d fr o m w orl d tra d e.

I n t he i nt ere st of ti m e, Mr. C hair m a n, I a m s u b mitti n g f or t he 

rec or d s of t he c o m mittee se ver al d oc u m e nt s w hic h pr o vi de m ore 

detail o n na vi gati o n pr ojects i n t he L o wer Missi ssi p pi Valle y Di visi o n.

O ne is a c o m pilati o n of pr ojects a n d st u dies, i ncl u di n g ma p s, a n d 

w here a p p r o p riate, j ustifi cati o n data is a d de d f or t he A p pr o pri ati o ns 

C o m mittees.

I n a d diti o n, we ha v e a listi n g of na vi gati o n pr oject s, i ncl u di n g 

ori gi nal c ost, a ver a ge a n n ual mai nte na n ce c osts f or t he 5- yea r peri o d 

e n di n g i n fiscal 1 9 7 4, a n d a n n ual t o n na g e.

I a m, als o, s u b mitti n g f or t he rec or d a c o p y of pa rt 2 of “ W ate rb or ne C o m merc e St ati sti cs f or Cal e n d ar Year 1 9 7 3” —t he late st 

ye ar of rec or d. T his p u blicati o n i ncl u d es t he t y p es a n d a m o u nts of 

car g o tra ns p o rte d al o n g t he Mississi p pi Ri v er a n d a djac e nt waterwa ys, a n d t hr o u g h t he p orts of t he area.

Als o bei n g s u b mitte d are c o pies of t he “ S u m ma r y a n d t he Na vi g ati o n A p p e n di x of t he L o w er Mississi p pi Re gi o n C o m pre h e nsi ve 

St u d y. ”

[ T he material referre d t o ma y be f o u n d be gi n ni n g at p. 2 2 9.]

M aj o r Ge ne ral K oi s c h . Se nat or Gra v el, o n y o ur c u rre nt i n s pecti o n 

tri p, I h o pe y o u get t he feel of t he i m p orta n ce t o t he Nati o n of t he 

i nla n d na vi gati o n s yste m as it e xists wit hi n t he b o u n da ries of t he 

L o wer Missi ssi p pi Valle y Di vi si o n of t he C or ps of E n gi ne ers w hic h 

I re p res e nt t o d a y. T h e na vi gati o n i nt ere sts l o o k t o us t o tie it all 

t o g et h er beca use we are t he o nl y a ge nc y of t he e xe c uti ve de pa rt m e nt 

w hic h has t he res p o nsi bilities a n d t he ca p a biliti es t o pr o vi de t he 

o verall ma na g e m e nt of t hese water res o urces re q uir e d t o me et t he 

N ati o n’s nee ds.
7 9

T his c o n cl u d e d m y state m e nt, Mr. C h air ma n. I will be gla d t o 

a ns w er q u esti o n s at t his ti me.

Se nat or G r a v e l . T h a n k y o u. T his has c ert ai nl y gi ve n us a c o m pre ­

he nsi ve k n o wle d ge of t he p r o ble ms faci n g t he l o wer Mississi p pi V alle y 

di visi o n. Y o ur testi m o n y see ms t o c o n ve y t he iss ue m or e ac c urat el y 

t h a n has bee n d o n e i n t he pa st, es pe ciall y c o n cer ni n g t he sit u ati o n of 

l oc k a n d da m 2 6. We a p p reciat e y o ur ver y e nli g hte ni n g a n d li vel y 

disc u ssi o n o n t h e pr o ble m, a n d we will c o me a wa y m u c h be tt er i nf or m e d t h a n we w o ul d ha ve bee n ot he r wis e.

T h e fl o o d w ate rs of 1 9 7 3, 1 9 7 4, a n d 1 9 7 5 —I ’ m s o m e w hat s u r prise d 

b y t he de gre e of fl o o di n g t h at has ta k e n plac e. C o ul d y o u gi ve us a 

per ce nta ge of t h e t otal da m a ge, a n d h o w d oes t his le vel of fl o o di n g 

c o m pare wit h 1 9 7 3, w hic h was t he w o rst i n t h e Nati o n?

Maj or Ge n eral K oi s c h . Mr. C h air ma n, let me p u t it t hi s wa y. 

F o r al m ost 2 3 ye ars, t he valle y ca m e a wa y wit h o ut a si n gle m aj o r 

fl o o d, b u t t h e n ca me t he w h o p p er i n 1 9 7 3. I n 1 9 7 5 we a gai n ha ve a 

maj or fl o o d. We are tal ki n g a b o ut a l ot of water. I k n o w i n c u bi c 

feet it ’s ver y diffi c ult t o get t he feel f or t he act ual a m o u nt, b ut t hi s 

is w h at we ha ve t o deal wit h f or t he water j u st passi n g Vic ks b ur g, 

a n d h o w d o y o u ha n dle it? We’re tal ki n g i n v ol u mes s o gr eat t h at 

it ’s ver y diffi c ult t o get a feel f or. We ’ ve m eas ure d passi n g Vic k s b u r g 

o ver 2 milli o n c u bi c feet per sec o n d, u nli ke — w hat d oes t h at mea n? 

T h at’s a n a wf ul l ot of water. W h y, it ’s 2 0 ti me s w h at g oes o ver 

Ni a g ara Falls i n a sec o n d. A n d y o u c a n i ma gi ne h o w m u c h water t h at 

is f or a w h ole d a y.

Se nat or G r a v e l . T h a n k y o u, Ge n eral, sir.

M aj o r Ge ner al K oi s c h . T h a n k y o u, ge ntle m e n. I a p pr eciat e t hi s 

o p p o rt u nit y t o s pe a k t o y o u t o d a y.

[ Ge n eral K oisc h’s state m e nt f oll o w s: }

t a t e m e n t o f M a j . G e n . F r a n ci s P. o i s c h , P r e s i d e n t , M i s s i s s i p p i

i v e r Co m m i s si o n a n d D i v i s i o n E n g i n e e r , Lo w e r M i s s i s s i p p i Va l l e y

i v i s i o n

T ha n k y o u Mr. C hair ma n. I a m please d t o ha ve t he o p p ort u nit y t o brief y o u 

o n o ur na vi gati o n pr oje cts i n t he L o wer Mississi p pi Valle y.

T he nati o n ’s t ot al water b or ne c o m merce is a p pr o xi m atel y 1. 7 billi o n t o ns per 

year or o ver 3 5 8 billi o n t o n- miles, of w hic h 4 4 8 milli o n t o ns per year or 1 08 

billi o n t o n- mile s tra vers e t h e water wa y s i n t he L o wer Mississi p pi Valle y Di visi o n.

Des pite t h e ge nerall y u nfa v or a ble ec o n o m y, c o m merce o n t he Mississi p pi Ri ver 

i n 1 97 4 a m o u nte d t o a n esti m ate d 2 9 0 milli o n t o ns, u p fi ve p erce nt o ver 1 9 7 3. 

T here has bee n a stea d y i ncrease i n t o n n a ge o n t his water w a y, a n d eac h ye ar’s 

re p o rt is a n ot her rec or d hi g h.

T he Mississi p pi Ri ve r is t h e ke y ele m e nt of t h e mi d- A meric a i nla n d water wa y 

net w or k. A merica ns ser ve d b y t he Te n nessee, C u m berla n d, O hi o, Miss o uri, 

Illi n ois, Ar ka nsas, W hite, O uac hita, a n d ot h er ri vers de pe n d o n t he Mississi p pi 

as t heir c o n nect or t o b ot h d o mestic a n d w orl d mar kets.

T he Mississi p pi Ri v er a n d t he Mississi p pi Ri ver- G ulf O utl et s u p p ort Ne w 

Orlea ns, t he t hir d lar g est p ort i n t he w orl d, a n d t he sec o n d lar gest i n t he nati o n.

T he p ort of Bat o n R o u ge, w hic h ra n ks si xt h i n t he nati o n, is als o l ocat e d o n t he 

Mississi p pi Ri ve r at t he hea d of dee p dra ft na vi g ati o n.

We ha ve a t hir d dee p water p ort, La ke C harles, L o uisia na o n t he Calcasie u 

Ri ver. I n a d diti o n, we ha ve s o me t hree d oze n s hall o w dra ft p ort s o n t he vari o u s 

na vi g ati o n c ha n nels, wit h a d diti o nal o nes u n de r st u d y or bei n g de vel o pe d. Asi de 

fr o m t he p orts, we esti m ate t here are at least o ne t h o u sa n d i n di vi d ual piers a n d 

ter mi nals f or vari o u s i n d ustries.

A m ulti- billi o n d ollar i n d u strial c o m ple x has bec o me esta blis he d al o n g t he 4 0- 

f o ot dee p na vi gati o n c ha n nel bel o w Bat o n R o u ge. A n u m ber of fact ors ha ve c o ntri b ute d t o o ut sta n di n g gr o wt h of t hi s area, i ncl u di n g de pe n da ble dee p- dr aft 

na vi g ati o n wit h c o n necti n g s hall o w dra ft c ha n nels; a n a b u n d a nt fres h wat er
8 0

s u p p l y; c o nfi de nce i n t he Fe deral Fl o o d C o ntr ol pr o gra m; a n d t he mi neral ric h 

l o wer c oast of L o uisia na.

A n i m p orta nt c o n nect or t o t he Mississi p pi Ri ver Is t he G ulf I ntr ac o astal 

Water wa y w hic h s kirts t he G ulf C oast fr o m Fl ori da t o Me xic o. M ore t ha n 1 00 

milli o n t o ns of c o m merce per year are carrie d o n t his water w a y, wit h m ost of t he 

traffic i n t he reac h bet we e n Ne w Orlea ns a n d t he Te xas b or der. M uc h of t h e car g o 

carrie d o n t he GI W W is e ner g y-relate d, a n d t he w ater w a y is als o a ke y r o ut e f or 

b oat s ser vici n g t he off-s h ore oil i n d ustr y.

L o o ki n g a hea d, t he Mississi p pi Ri ver C o m missi o n has c o m plete d a c o m prehe nsi ve st u d y of t he L o wer Mississi p pi Re gi o n f or s u b missi o n t o t he Water 

Res o urces C o u ncil. I n t his st u d y, m y staff, i n c o or di nati o n wit h ot her Fe der al 

a ge ncies a n d wit h State a n d l ocal i nterest s, a nal yze d t he water-relate d nee ds of 

t he re gi o n t hr o u g h t he year 2 0 2 0.

I n t his st u d y, it was f o u n d t h at a si g nifica nt gr o wt h is pr oj ecte d f or t otal i nla n d, 

c oast wise a n d f orei g n c o m merce. T otal traffic is e x pe cte d t o i ncrease 4 t o 5 ti m es 

m ore t ha n t he c urre nt le vel.

Beca use of t he i m p orta nc e of t he Mississi p pi Ri ver t o t he nati o nal ec o n o m y, we 

c o nti n ue t o recei ve ma n y re q ue sts f or i m pr o v e me nts a n d e x pa nsi o n. We are n o w 

c o nstr ucti n g na vi gati o n c ha n nels al o n g t he Kas ka s kia Ri ver i n Illi n ois a n d al o n g 

t he R e d Ri ver i n L o uisia na. A n ec o n o mic feasi bilit y st u d y is u n der wa y o n e xte n di n g na vi g ati o n o n t he Re d Ri ve r be y o n d S hre v e p ort, L o uisia na t o Dai n gerfiel d, 

Te xas.

Also i n t he st u d y sta ge are pr oject s t h at w o ul d dee pe n t he prese nt 4 0-f o ot 

c ha n nel fr o m t he G ulf t o Bat o n R o u ge a n d t o e xte n d t he 4 0-f o ot c ha n nel t o 

Natc hez, Mississi p pi. We ha ve a n u nf u n d e d st u d y o n dee p e ni n g t he s hall o w dra ft 

c ha n nel fr o m Bat o n R o u ge t o Cair o.

D uri n g t he ne xt fiscal year, we will be gi n a st u d y o n t he nee d f or wi de ni n g a n d 

dee pe ni n g t he G ulf I ntr ac o astal Water wa y fr o m easter n L o uisia na t o Te xas, wit h 

t he S o ut h we ster n Di visi o n t o c o n d uct a si milar st u d y o n t he GI W W acr oss Te xas.

We h a ve t hree n a vi gati o n l oc ks i n L M V D w hic h are bei n g pla n n e d f or re placeme nt be ca use t h e y ha ve o utli ve d t h eir desi g ne d li ves a n d ca n n ot efficie ntl y ha n dle 

c urr e nt cr pr ojecte d f ut u re traffic. O ne is L oc ks a n d Da m 2 6 near Alt o n, Illi n ois. 

It s h o ul d be re pla ce d beca use of t he distresse d state of t he e xisti n g str uct ure, a n d 

t o satisf y prese nt a n d f ut u re na vi gati o n nee ds.

A n ot her is t h e I n n er Har b or Na vi g ati o n Ca nal L oc k at Ne w Orlea ns w hic h is 

pla n ne d f or re plac e me nt u n de r t he ori gi nal a ut h oriz ati o n f or t he Mississi p pi 

Ri ver- G ulf O utl et w hic h pr o vi de d f or a re pla ce me nt l oc k w he n ec o n o micall y 

j ustifie d b y o bs olesce nce of t he e xisti n g l oc k or b y i ncrease d traffic.

T he t hir d l oc k i n v ol ve d is t he Ver milli o n L oc k o n t he hea vil y-tra vele d s o ut her n 

L o uisia na p orti o n of t he G ulf I ntr ac oa stal Water w a y. T his acti o n is bei n g ta ke n 

f or b ot h fl o o d c o ntr ol a n d na vi g ati o n be nefits. We are pr ocee di n g wit h desi g n of 

t he re plac e me nt str uct ure.

Mai nte na nce of a de q uate na vi gati o n de pt hs i n t he har b o rs a n d water wa ys i n 

t he L o wer Mississi p pi Valle y Di visi o n is critical t o t he ec o n o mic m o ve me nt of 

water b or ne c o m merce t o a n d fr o m t he Nati o n’s heartla n d. T he fl o o d water s of 

1 9 73, 1 97 4 a n d 1 9 75 ha ve carrie d u n us uall y lar ge s e di m e nt l oa ds a n d mai ntai ni n g 

pr oje ct di me nsi o ns at se v eral l ocati o ns is e xtre mel y diffic ult.

O ur m ost critical l ocati o n is t he S o ut h w est Pass, t he maj o r r o ut e f or s hi p pi n g 

bet wee n Ne w Orlea ns a n d t he G ulf of Me xic o. N or m all y o ne C or ps h o p per dre d g e 

a n d o ne or t w o c o ntract pi peli ne dre d ges ca n meet t he dre d gi n g re q uir e me nts 

i n t his area. H o we ver, i n F Y 7 4 we dre d ge d f o ur ti mes t he n or mal a m o u nt.

We starte d dre d gi n g a gai n i n Ja n uar y of t his year, a n d we n o w ha ve t w o 

g o ver n me nt o w ne d a n d t w o c o ntract dre d ges w or ki n g i n t he S o ut h west Pass. 

Siltati o n of t h e c ha n n el c o nti n u es t o be a b n or mall y hi g h, a n d we l ost o ur 4 0 f o ot 

pr oje ct de pt h o n 1 Marc h w he n it dr o p p e d t o 3 9 feet. T o da y we ha ve o nl y 3 6 

feet f or s hi ps u n der 1 0 0, 00 0 de a d wei g ht t o ns. F or lar ger s hi ps, pil ots are li miti n g 

t he dra ft t o 3 4 feet beca use of t he diffic ult y i n ha n dli n g t he m. Eac h i nc h of l ost 

dra ft re pres e nts a l oss i n t he t h o us a n ds of d ollars of c o m merce detai n e d fr o m 

w orl d tra d e.

I n t he i nterest of ti me, Mr. C hair ma n, I a m s u b mitti n g f or t he rec or ds of t he 

C o m mittee se veral d oc u m e nts w hic h pr o vi de m ore detail o n na vi gati o n pr oje cts 

i n t he L o wer Mississi p pi Valle y Di visi o n.

O ne is a c o m pilati o n of pr oje cts a n d st u die s, i ncl u di n g m a ps, a n d w here a p pr opriate, j ustificati o n data prese nte d t o t he A p pr o priati o ns C o m mittee s.

I n a d diti o n, we ha ve a listi n g of na vi g ati o n pr oject s, i ncl u di n g ori gi nal c ost, 

a vera ge a n n u al mai nte na n ce c osts f or t he fi ve ye ar peri o d e n di n g i n fiscal 1 9 74, 

a n d a n n u al t o n na ge.
8 1

I a m als o s u b mitti n g f or t he rec or d a c o p y of Pa rt T w o of Water b or n e C o mmerce Statistic s f or Cale n d ar Year 1 9 73 —t he late st year of rec or d. T his p u blicati o n i ncl u des t he t y pes a n d a m o u nts of car g o tra n s p orte d al o n g t he Mississi p pi 

Ri ver a n d a dja ce nt water wa y s, a n d t hr o u g h t he p orts of t h e area.

Als o b ei n g s u b mitte d are c o pies of t he S u m m ar y a n d t he Na vi gati o n A p pe n di x 

of t he L o wer Mississi p pi Re gi o n C o m pre he n si ve St u d y.

Se nat or Gra vel, o n y o ur c ur re nt i ns pecti o n tri p, I h o pe y o u get t he feel of t he 

i m p orta nce t o t he nati o n of t he i nla n d na vi gati o n s yste m as it e xists wit hi n t he 

b o u n daries of t he L o wer Mississi p pi Valle y Di visi o n of t he C or ps of E n gi neers 

w hic h I re pre se nt t o da y. T he na vi gati o n i nter ests l o o k t o us t o tie it all t o get her 

beca use we are t he o nl y a ge nc y of t he E xec uti ve De part me nt w hic h has t he 

res p o nsi biliti es a n d t he ca pa bilities t o pr o vi d e t he o verall ma n a ge m e nt of t hese 

water re s o urces re q uire d t o meet t he nati o n’s nee ds.

T his c o ncl u des m y stat e me nt, Mr. C hair m a n. I will be gla d t o a ns wer q uesti o n s 

at t his ti me.

Se nat or G r a v e l . O ur ne xt wit n ess will be Mr. Pa ul E. A da ms, 

e xec uti ve dire ct or, Ar ka n sas W ate r w a ys C o m missi o n, Littl e R oc k, 

Ar k.

Mr. A da ms, it ’s c ert ai nl y a pleas ure t o h a ve y o u here wit h us t o d a y. 

If y o u li ke, y o u ma y pr oce e d wit h y o ur state m e nt at t his ti me.

S T A T E M E N T O F P A U L E. A D A M S, E X E C U TI V E DI R E C T O R, A R K A N S A S 

W A T E R W A Y S C O M MI S SI O N

Mr. A d a m s . M y na m e is Pa ul A da ms a n d I a m e xe c uti ve dir ect or 

of t he Ar k a ns as Water wa ys C o m missi o n, a St at e a ge n c y t h at is 

c o nc er ne d ge nerall y wit h pla n ni n g, pr o m oti n g, de vel o pi n g, a n d pr otecti n g t he w ater wa y s of o ur State i n t he i nte rest of w ate r tra ns p o rt ati o n. T h e s pecific a ut h o rities of t hi s c o m missi o n are set f ort h i n a n 

e ncl o s ure t o m y state m e nt. I n or d er t o c o nse r ve ti m e I will n ot rea d 

t he m. H o w e ver, it is wit hi n t hes e a ut h o rities t h at t hi s state m e nt is 

bei n g ma d e.

T h e Ar k a ns as Water wa ys C o m mis si o n e x pre sses its a p pre ciati o n t o 

y o u, Se n at or, a n d ot h er me m b ers of t his s u b c o m mitte e f or ta ki n g 

ti m e o ut fr o m a b us y sc he d ule t o ha ve t his heari n g a n d all o wi n g us t o 

e x pr ess t o y o u s o me of t he t hi n g s we belie v e i m p o rt a nt i n t he water 

res o u rces fiel d.

Y o ur ne ws release rel ati n g t o t he hea ri n g state d t h at it w o ul d 

f oc us o n c u rre nt o p erati o n s a n d pr o ble m s of t he i nl a n d water wa y 

pr o gra m, wit h a vie w t o deter mi ni n g if c ha n ges s h o ul d be ma de t o 

ma k e t he pr o gra m m ore res p o nsi ve t o t he de m a n d s of o ur m o de m 

s ociet y.

I n t he lette r i n viti n g t he c o m missi o n t o pre se nt testi m o n y y o u 

state d t h at t he s u b c o m mittee desire s t o recei v e testi m o n y o n t he 

ec o n o mic, s ocial, a n d e n vir o n me ntal i m pacts of e xisti n g na vi gati o n 

pr o g ra m s.

I will t o u c h briefl y o n t hes e ge neral s u bject s.

T h e res p o nse of m y c o m missi o n t o t he state m e nts i n t he p u bli c 

n otice is t o as k of y o u t o gi ve us a set of t o ols f or e v al u ati n g w ite r 

res o u rce pr ojects t h at will i ns u re pr o per de v el o p m e nt s i n lie u of n o 

de v el o p me nt. We rec o g nize t he diffic ult y t h at t he C o n g ress a n d t he 

a ge nci es of t he Fe d eral G o ver n m e nt ha v e i n c o mi n g u p wit h s uc h 

t o ols. We, als o, k n o w t h at y o u a n d y o ur staf f are a ware of a n d acq u ai nte d wit h t he ma n y v ol u mes of ec o n o mic lit er at ur e a vaila ble o n 

t hi s s u bject. T h e me m bers a n d staff of t he Ar k a ns as Water w a ys 

C o m missi o n are, als o, ac q uai nte d t o s o me de gree wit h t he vari o us
8 2

c o n ce pt s i n v ol ve d a n d are k n o wl e d gea ble of t heir effects as t he y rel ate 

t o water res o urce d e vel o p m e nt. T heref ore, it w o ul d be ti me c o ns u mi n g 

o n o ur pa rt a n d a waste of ti me o n y o ur pa rt f or us t o re vie w t he 

vari o us ec o n o mi c t he o ries t h at ha ve bee n set f ort h o n t he s u bject. 

T heref ore, I will s u m marize t he c o ncl u si o ns of t he c o m missi o n a n d 

re q ue st t h at y o u gi ve t he m h o n est a n d si ncere c o n si de rati o ns w he n 

y o u are a d o pti n g pr oc e d ures f or det er mi ni n g t he f ut ure of water 

res o urce de v el o p me nts i n t hi s c o u ntr y.

T h e c o ncl usi o ns are:

(а) T hat t he pri nci ples a n d sta n d ar d s as fi nall y e v ol ve d be base d 

o n t he ass u m pti o n t h at t he re will be a nee d f or water a n d water 

rel ate d la n d a n d e ner g y f or n ot o nl y meeti n g t he f ut ur e nee ds of o ur 

Nati o n b ut f or t he ec o n o mic a n d s ocial e xiste nce of its i n ha bita nts, 

"t is a p pare nt t h at t he pre se nt a n d gr o wi n g p o p ul ati o n of o ur Nati o n, 

wit h its press ures a n d c o m pl e xities, de m a n d s a wa y of life w hic h will 

pr o vi de f or t he caref ul use of wat er a n d ot h er res o u rces, t o t he e n d of 

i ns u ri n g t he basic nee d s f or f o o d, air, wat er, fi ber, mi ne rals, he alt h, 

m o bilit y, a n d p o wer.

( б) T hat t he pri n ci pl es a n d sta n d ar d s rec o g nize i n pr oject e v al u ati o n t h at i n a d diti o n t o dir ect be nefits, ofte n defi ne d as ec o n o mic 

efficie nc y be nefits, t here are ot h er ec o n o mic a n d s ocial c o n si de rati o ns 

t h at r es ult beca use of t he a vaila bilit y of l o w-c ost w ate r tra ns p o rtati o n 

a n d/ o r ot h er pr o d ucts of water res o ur ce pr ojects. I will disc us s s uc h 

be ne fits lat er as “c o ns u me r or p u bli c val u e be n efits.”

(c) T hat t he c o n ce pt f or dete r mi ni n g t he dis c o u nt rate be base d o n 

t he t he or y t h at t he G o ver n m e nt is n ot c o m peti n g wit h t he pri vate 

sect or, b u t offeri n g a nee d e d ser vice t h at t he pri vate sect or ca n n ot 

pr o vi d e ec o n o micall y.

(<Z) T ha t c ost-s ha ri n g pr oc e d ures be ge n erall y i n li ne wit h esta blis he d pr oc e d ures b u t c o n sist e nt wit h l ocal a n d St at e ca p a bilitie s. 

Bef ore s uc h sta n d ar ds are materiall y m o difie d, cl ose scr uti n y s h o ul d 

be gi ve n t o t he ec o n o mic, i nfl ati o nar y, s ocial, a n d e n vir o n m e nt al 

q ue sti o ns ass o ciat e d wit h i m p ositi o n of dis cri mi nat or y user ta xe s a n d 

ot her s uc h c ost-s h ari n g t he ories. It is o ur o pi ni o n t h at t he i nc o m e t o 

t he Fe d eral G o ver n m e nt fr o m s uc h asse ss m e nts m a y be s mall i n c o mparis o n t o t he s pi n off- da m a gi n g i m pacts t o o ur basi c ec o n o mic f o u ndati o n. It is, als o, o ur c o ncl u si o n t h at if f ut ur e c ost-s ha ri n g p olic y 

s h o ul d lea n t o w ar d m or e n o n- Fe deral parti ci p ati o n t here m u st be a 

c o nc urr e nt c ha n ge i n t he di visi o n of t he ta x i nc o m e bet w ee n t he 

Fe der al G o ver n m e nt a n d n o n- Fe deral e ntiti es s uc h as St ate, c o u nt y 

a n d cit y.

(e) T hat t he p ri nci ple s a n d sta n d ar d s n ot be s o d etaile d, t he oretical, 

i n v ol ve d, a n d e x pe nsi ve t h at t he y will be use d t o precl u de de v el o p ­

m e nt t h at w o ul d ot he r wi se e n ha nce t he ec o n o mic sta bilit y of o ur 

Nati o n, re gi o n, a n d St ate, as well as i m p r o v e t he o verall q u alit y of 

o ur e n vir o n m e nt.

Wit h re ga r d t o y o ur desir es t o recei v e testi m o n y o n t he ec o n o mic, 

s ocial, a n d e n vir o n m e nt al i m pa ct of e xisti n g na vi gati o n pr o gra m s, I 

n o w i n vite y o ur atte nti o n t o t he p u blic val ue be n efit s t h at are n o w 

o verl o o ke d. T o prefa ce m y f urt he r re m ar k s, I q u ote fr o m a s peec h 

gi ve n b y Pre si d e nt Ke n ne d y w he n he de dicate d a water res o urce 

pr oject i n Ar k a ns as j u st bef ore his de at h. He sai d “ T hes e pr ojects 

pr o d uc e wealt h, t he y bri n g i n d ust r y, t he y bri n g j o bs, a n d t he we alt h 

t h e y bri n g bri n g s we alt h t o t he ot h er secti o ns of t he U nite d St at es.”
8 3

N o t t o o ma n y yea rs a g o Ar k a ns as was c o nsi d ere d j u st a n ot h er 

i nt eri or St at e wit h a pr o bl e m of tra ns p o rti n g its a gri c ult ur al pr o d u cts 

a n d t he s mall a m o u nt of i n d ustrial pr o d u cts t h at it ha d t o t he na ­

ti o n al a n d i nter nati o nal mar ket s. N ot s o t o d a y. Al o n g wit h o ur hi g hwa ys, rail r oa ds, airla nes, a n d pi peli nes, we n o w ha v e c o m m ercial 

water tra ns p o rtati o n t o s o me de gree o n m or e t ha n 1, 5 0 0 miles of 

na vi ga ble str ea m s t h at are wit hi n or b or de r o ur State. E x ce pt f or t he 

Missis si p pi Ri v er t h at is o ur easter n b or der, o ur sta n d ar d 9-f o ot 

c ha n nels are y o u n g or are i nc o m plete. T h e Mc Clella n - Ke rr Ar k a ns as 

Ri v er Na vi g ati o n S yste m is e sse ntiall y c o m plet e ; t he O u ac hita Ri v er, 

w hic h n o w has o nl y a 6 %-f oot na vi gati o n c ha n nel u p stre a m t o Ca mde n, has a 9-f o ot c ha n nel sc he d ule d f or c o m pleti o n i n t he f orese ea ble 

f ut ur e; a n d t he W hite Ri ver, w hic h n o w has o nl y a 5-f o ot na vi gati o n 

c ha n nel t o A u g u sta a n d a 4 ^-f o ot c ha n nel fr o m A u g usta t o Ne w p ort, is 

n o w bei n g st u die d t o dete r mi ne if a 9-f o ot c ha n nel is feasi ble. Na vi g ati o n o n t he Re d Ri v er i n Ar k a nsa s is n ot c o nsi dere d feasi ble at t his 

ti me. H o w e ver, s uc h is i n t he l o n g-ra n ge c o m pre h e nsi ve pla n f or 

de v el o p m e nt of t h at basi n. T hes e na vi ga ble wat ers, s uc h as t he y are 

n o w a n d wit h t he h o pe t h at t he y will be i m p r o v e d, gi ve t he pe o ple 

a n d i n d ust r y of o ur St ate a n i nte rc o n ne cti o n wit h t he ot h er i nla n d 

water w a ys a n d t he g ulf-c oa stal s yst e m. Of m or e i m p orta n ce, t his 

stre a m c o n n ects Ar ka n sas wit h t he ma r k ets of t he Nati o n as well as 

i nt er n ati o n al ma r kets. I bri n g y o u st at us of o ur na vi ga ble str ea m s t o 

e m p hasi ze t h at Ar k a ns as is n o w de p e n di n g o n water tra ns p o rtati o n 

a n d i n o ur pla n ni n g f or t he f ut ure belie ve it is nece ssar y al o n g wit h 

t he ot h er m o des, t o e n h a nc e o ur c ha n ces of a s o u n d ec o n o mic a n d 

e n vir o n m e nt al base.

Ar k a ns as’ a gric ult ur al i nc o me has gr o w n t o c o ver $ 2. 5 billi o n 

a n n uall y. A b o ut 6 0 per ce nt of t his is ma d e u p of c ott o n, s o y b ea ns, 

a n d rice wit h s o y b ea n s bei n g t he lar g est i nc o m e pr o d uce r. I n fact, 

s o y bea n pr o d ucti o n has rise n as hi g h as 1 16 milli o n b us hels i n a year. 

A b o ut 6 5 p erc e nt of t hes e s o y b ea ns are s ol d t o f orei g n mar kets, eit h er 

i n t he f or m of fi nis he d s o y b ea n meal, s o y bea n oil, or ra w bea ns; 

a b o ut 6 0 per ce nt of t he rice pr o d u ce d i n Ar k a ns as is s ol d o ver seas; 

a n d a b o ut 3 5 perce nt of o ur c ott o n m o v es t o f orei g n mills a n d t he n t o 

f orei g n c o ns u m pti o n.

La st ye ar t he na vi ga ble s yst e ms t h at are wit hi n o ur b or ders t his 

d oes n ot i ncl u de t he Mississi p pi Ri v er ha n dle d a p p r o xi m atel y 7 

milli o n t o ns of c o m m erce. A b o ut 3 5 perc e nt of t hi s was i n b o u n d a n d 

i ncl u de d s uc h ite m s as ba u xite, ir o n a n d steel, petr ole u m pr o d u cts, 

c he mical fertilizers a n d ot h er c he mi cals, a n d a b o ut 1 5 per ce nt was 

o ut b o u n d a n d was ma d e u p m ostl y of a gric ult ural pr o d u cts a n d c oal. 

T h e ot he r 5 0 p erce nt was i nter nal m o ve me nts.

W hat d oes all t his acti vit y s h o w a n d w h y a m I t elli n g y o u a b o ut it? 

It s h o ws t h at t hes e acti vitie s a n d res ulti n g be n efit s are wi de s pre a d. I 

call t he m p u blic or c o n s u m er be nefits beca use t he be nefi ciaries a re n ot 

all l ocal a n d as s o me w o ul d sa y “ wi n d fall,” b ut are sc att ere d t hr o u g ho ut, n ot o nl y o ur St at e ec o n o m y, b ut t he ec o n o m y of t he Nati o n, a n d 

as I ha v e i n dicate d, e ve n i nt er n ati o n all y. Yes, s hi p pe rs d o sa ve fr o m 

usi n g water tra ns p o rtati o n a n d t h at is t he dir ect be ne fits fr o m s uc h a 

pr oject. B u t t he be ne fits t h at are m ore i m p o rta nt, i n o ur o pi ni o n, g o 

be y o n d t hes e sa vi n gs bec a use t hese sa vi n gs are reflecte d i n t he c ost 

of a pr o d uct a n d t he c ost of t he pr o d uct is ulti m atel y pai d b y t he
8 4

c o ns u me r. T ha t is t he i m p o rta nt st o r y a b o ut l o w-c o st water tr a n s p ortati o n d uri n g t hes e i nflati o na r y ti me s w he n t he c o ns u mer is ha vi n g a 

ha r d ti m e str etc hi n g his i nc o m e t o c o ve r t he neces sities of life. I n 

a d diti o n, beca use t he bar g e rat es f or tra ns p o rti n g t he ra w materi als 

a n d f uel f or t he N ati o n’s ba sic i n d ust rie s are c o m par ati v el y l o w, t he y 

ser ve t o h ol d d o w n t he rat es of o ve rla n d m o des. T he se sa vi n gs are, 

als o, pass e d al o n g u ntil ulti m atel y a n d i m p o rta ntl y t he c o n s u m er is 

t he be neficiar y.

L o w -c ost water tra ns p o rtati o n, als o, hel ps t o ge n erate i n d ust rial 

de v el o p me nt. We are m o st c o nsci o us of t hi s here i n Ar ka n sas beca use 

of t he i m pa ct of t he $ 1. 2 billi o n Mc Clella n - K err Ar ka n sas Ri v er 

Na vi g ati o n S yste m t h at is esse ntiall y c o m plet e a n d has b ee n i n o per ati o n f or o nl y a fe w y ears. It is n o w esti m ate d t h at i n v est me nts i n ne w 

a n d e x p a n d e d i n d ustries i n t he valle y w hic h are dir ectl y or i n dir ectl y 

ori e ntat e d t o water tra ns p o rtati o n a m o u nts t o o ver $ 3 billi o n, a n d 

s o me 2 0, 0 0 0 ne w j o bs ha v e b ee n cre ate d. O ver o n e- half of t hi s h as bee n 

i n Ar k a ns as. T his d oes n ot i ncl u de i n v est me nts of m a n y milli o ns of 

d oll ars i n ne w ba n k b uil di n g s a n d ot h er s uc h i n v est me nts w hic h n o 

d o u bt were i nfl ue nce d b y t he ec o n o mic gr o wt h p ote ntial br o u g ht 

a b o ut b y t his water res o u rce pr oject. All of t his mea ns a br o a de ne d 

ta x bas e t o o ur l ocal c o m m u nities, w hic h, i n t ur n, mea ns b ette r sc h o ols, 

li br arie s a n d h os pitals, i m p r o v e d p u blic ser vices, bette r rec reati o nal 

facilities, a n d i m p r o ve d c ult ural o p p ort u nitie s.

A n ot h er p u blic or c o n s u m er be n efit r es ults fr o m t he vit al r ole w hic h 

o ur water w a ys pla y i n ac hie vi n g a fa v o ra ble bala nce of tra de wit h 

ot h er c o u ntries. As y o u well k n o w, t he bala nce - of-tra de deficit i n 

rec e nt ye ars has n ot bee n g o o d f or t he Nati o n’s fiscal sta bilit y. L o wc ost water tra ns p o rtati o n, o n i nl a n d as well as ocea n c ha n nels, is 

i n str u m e ntal i n ge n erati n g e x p orts, a n d it is esse ntial t h at t hi s c o ntri b uti o n be rec o g nize d o n t he pl us si de of water res o urce pr ojects 

w he n a nal yzi n g i nt er n ati o n al tra de pr o ble ms a n d t he m o n eta r y 

sta bilit y of t he U nite d States. W hat is g o o d f or t he sta bilit y of o ur 

Nati o n is g o o d f or Ar k a ns as.

N ot o nl y is water tra ns p o rtati o n i m p o rta nt t o Ar k a ns as beca use of 

its a bilit y t o m o ve grai n, c oal, oil, ba u xite, a n d ot h er b ul k pr o d ucts 

at a c o m parati ve l o w c ost, b u t i n t his d a y w he n all of us are c o nsci o us 

of o ur s h ort s u p pl y of f uel a n d are c o nc er ne d a b o ut o ur e n vir o n m e nt, 

it is i m p o rt a nt t o n ot e t h at water tra ns p o rtati o n re q uir es less e ner g y 

per t o n- mile t h a n a n y ot h er met h o d of frei g ht distri b uti o n a n d pr od uces less air a n d n oise p oll uti o n t h a n trai ns a n d tr uc ks. All of t hese 

fact ors are si g nifica nt t o t he ec o n o mic a n d e n vir o n m e nt al sta bilit y 

of A r ka nsa s a n d t he Nati o n.

W ate r res o urc e d e vel o p me nt h as m ea nt m u c h t o t he ec o n o mic de velo p me nt of Ar k a ns as, a n d we d o n ot wa nt t o re gres s ec o n o micall y, 

c ult ur all y, or e n vir o n m e nt all y t o w her e we were pri o r t o s uc h de vel o pme nts. We wa nt t o m o ve a he a d wit h o ur ot h er pr ojects t h at are 

ec o n o mic all y a n d e n vir o n me ntall y s o u n d, a n d, a b o v e all, t he e xisti n g 

pr ojects m ust be o pe rate d a n d mai nt ai n e d a n d ke pt u p t o m o d er n 

sta n d ar d s. T h e Water w a ys C o m missi o n bri n g s t his messa g e t o y o u 

beca use it t hi n k s Ar k a ns as as well as t he Nati o n nee d s water r es o ur ce 

de v el o p m e nt s a n d parti c ularl y water tra ns p o rtati o n t o mai nt ai n a 

bala nce d a n d sta ble ec o n o m y. We s u g g est t o y o u a nati o nal tra ns ­

p o rtati o n g oal of de vel o pi n g a n i nt er m o d al s yst e m w hic h w o ul d i ncl u d e
8 5

w at er tr a ns p ort ati o n a n d w hi c h w o ul d m a xi miz e t h e i n h er e n t a d v a nt a g es of e a c h of t h e v ari o us m o d es. T hi s c o m missi o n r e c o g niz es t h at 

w at er tr a ns p ort ati o n or e v e n tr a ns p ort ati o n i n g e n er al is n ot a g o al 

i n its elf, b ut it s er v es ot h er g o als a n d o bj e cti v es, pri m aril y t h e N a ti o n’s 

pr o d u c ti vi t y, a n d it is o ur c o ns e ns us t h a t t h e N ati o n n e e ds a n d d es er v es a first- cl ass w at e r tr a ns p ort ati o n s yst e m. W at er tr a ns p ort ati o n 

is a n o n c o ns u m pti v e us e of w at e r a n d is g e n er all y e n h a n ci n g t o ot h er 

p ur p os es t h a t us e w at er. It is c o m p ati bl e wit h r e as o n a bl e e n vir o nm e nt al st a n d ar ds.

I n c o n cl usi o n, l et m e e m p h asiz e t h a t it is v er y i m p ort a nt t o t h e 

e c o n o mi c s ur vi v al of t his c o u ntr y t h at y o u g e ntl e m e n, as m e m b ers of 

t his s u b c o m mitt e e, r e c o g niz e t h e v al u e t h at w at e r a n d its c oll at er al 

us es will pl a y t o w ar d i ns uri n g o ur f u t ur e b asi c n e e ds. I n y o u r d eli b er a ­

ti o ns, w e as k y o u t o t hi n k a n d a ct p osi ti v el y a n d a d o p t e v al u ati o n 

pr o c e d ur es a n d p oli ci es w hi c h will r es ult i n f urt h er d e v el o p m e nt a n d 

pr o p er us es of t h es e r es o ur c es i n or d er t h at f ut ur e g e n er ati o ns m a y 

e nj o y s o m e of t h e g o o d t hi n gs of lif e t h a t w e ar e n o w e nj o yi n g.

W e r es p e cti v el y r e q u est t h a t t h e C o n gr ess n ot t a k e a n y a cti o n 

r el ati n g t o c ost s h ari n g, p arti c ul a rl y as s u c h m a y i n cl u d e w at e r w a y 

us er t a x es u ntil all i m p a cts o n t h e n ati o n al, r e gi o n al, a n d St at e e c on o mi cs a n d o n i nt er n ati o n al tr a d e h a v e b e e n t h or o u g hl y st u di e d a n d 

t h e r es ults ar e k n o w n. T his c o m missi o n b eli e v es t h a t b e c a us e of t h e 

N ati o n’s s eri o us e c o n o mi c pr o bl e ms, t h er e c o ul d h ar dl y b e a w ors e 

ti m e t h a n n o w t o i m p os e n e w t a x es o n t h e w at er w a ys.

W e b eli e v e t h e e m p h asis, p arti c ul arl y n o w, s h o ul d b e o n m a xi m u m 

utiliz a ti o n of l o w- c ost w at er tr a ns p ort ati o n t o c o ns er v e e n er g y s u ppli es, h ol d d o w n fr ei g ht c osts, i n cr e as e pr o d u c ti vi t y, a n d t o m ai nt ai n 

a h e alt h y i nl a n d tr a ns p ort ati o n s yst e m t o b olst er o ur s a g gi n g e c o n o m y.

A g ai n I t h a n k y o u, S e n at or Gr a v el.

[ A n att a c h m e nt t o Mr. A d a m s’ st at e m e n t f oll o ws:]

I n a c c or d a n c e wit h Ar k a ns as St a t ut es (1 9 7 3) S e cti o n 21 -1 7 0 2, t h e Ar k a ns as 

W a t er w a ys C o m mi ssi o n is a ut h oriz e d t o:

(1) St u d y a n d c o or di n at e eff orts d esi g n e d t o pr o m ot e t h e d e v el o p m e n t of t h e 

n a vi g a bl e str e a m ar e as i n t his St a t e f or w at e r tr a n s p ort ati o n p ur p os e s;

( 2) E n c o ur a g e a n d c o or di n at e t h e d e v el o p m e nt of ri v er p ort a n d h ar b or f a ciliti e s;

( 3) T o r e c o m m e n d t o t h e pr o p er offi ci als r e cr e a ti o n al r estri cti o n s i n criti c al 

c o m m er ci al n a vi g ati o n ar e as i n or d er t o pr o m o t e p u bli c s af et y a n d e x p e dit e w at e r 

tr a ns p ort ati o n.

( 4) I nt er c e d e o n b e h alf of a n d t o r e pr es e n t t h e St a t e of Ar k a ns as i n m att er s 

p ert ai ni n g t o t h e a p pli c ati o n of f e es, t olls or us e c h ar g e s l e vi e d or c o nt e m pl at e d t o 

b e l e vi e d a g ai nst t h e w at er tr a n s p or t ati o n i n d ust r y e n g a g e d i n eit h er i n tr as t at e or 

i nt e rst at e w at er c o m m er c e.

( 5) R e c ei v e a n d us e a n y f e d er al, st a t e or pri v at e f u n ds, d o n a ti o ns a n d gr a nts 

m a d e a v ail a bl e f or t h e d e v el o p m e nt, us e a n d e x p a nsi o n of ri v e r tr a ns p ort ati o n 

r es o ur c es of t his St at e, pr o vi d e d t h at n ot hi n g h er ei n s h all b e d e e m e d t o d e n y or 

pr o hi bit a n y cit y, c o u nt y, p ort a ut h orit y or o t h er g o v er n m e nt al or pri v at e a g e n c y 

or a ut h o rit y fr o m a c c e pti n g s u c h d o n a ti o ns a n d gr a nt s t h e y ar e n o w a ut h o riz e d 

b y l a w t o r e c ei v e.

( 6) C o o p er at e wit h a n d f ur nis h ass ur a n c es t o t h e U ni t e d St a t es G o v e r n m e nt 

a n d a n y a g e n ci es t h er e of, f or i m pr o v e m e nt of t h e w at er w a ys of t his St a t e f or t h e 

p ur p os e of c o m m er ci al n a vi g ati o n a n d ot h er pr oj e ct p ur p os es, a n d t o c o n tr a c t 

wit h t h e S e c r et a r y of t h e Ar m y a n d t h e C hi ef of E n gi n e ers t o p r o vi d e t h e n e c es s ar y 

l a n ds, e as e m e n ts, a n d ri g ht s- of- w a y i n c o n n e cti o n t h e r e wit h; t o s h ar e if n e c es s ar y 

i n t h e c osts of t h e pr oj e cts i n t h e e v e n t t h e C hi ef of E n gi n e ers d et er mi n es t h a t it 

is n e c es s ar y u n d er a p pli c a bl e f e d er al l a ws a n d p oli c y; a n d t o ot h er wis e f ur nis h 

l o c al c o o p e r ati o n r e q uir e m e nts of t h e A cts a ut h orizi n g pr oj e cts.
8 6

( 7) H a v e a n d e x er cis e t h e p o w er a n d a u t h o rit y t o a c q uir e s u c h r e al a n d p ers o n al 

pr o p erl y, i n t h e n a m e of t h e St a t e of Ar k a n s as, b y gift, gr a nt, p ur c h as e, n e g oti a ­

ti o n or b y c o n d e m n ati o n, as t h e C o m mi ssi o n d e e ms n e c ess ar y or d esir a bl e t o 

c arr y o ut its f u n c ti o n s a n d r es p o nsi biliti es u n d er t his A ct.

( 8) R e q uir e all St a t e a g e n ci es, b o ar ds or c o m missi o ns, w h e n s u c h a g e n ci es, 

b o ar ds a n d c o m missi o ns ar e pl a n ni n g i n d u stri al, r esi d e nti al or r e c r e ati o n al z o ni n gs, 

o p er ati o n al r e g ul ati o n s or i m pr o v e m e n ts i n v ol vi n g c h a n n el ali g n m e nt s, b a n k 

st a biliz ati o n, b a n k a n d a dj a c e nt l a n d us es, w hi c h w o ul d dir e ctl y or i n dir e ctl y 

aff e ct c o m m er ci al n a vi g ati o n o n a n y of t h e S t a t e’s i nl a n d w at e r w a ys, t o c o or di n a t e 

s u c h pl a n ni n g wit h t h e C o m missi o n.

( 9) R e q uir e all St a t e a g e n ci es, b o ar ds a n d c o m missi o ns h a vi n g t h e p o w e r t o 

gi v e ass ur a n c es o v er w at er r es o ur c e pr oj e cts t o c o or di n at e s u c h a cti viti es wit h t h e 

Ar k a n s as W a t er w a ys C o m missi o n pri or t o gi vi n g s u c h ass ur a n c es if s u c h ass ur a n c es 

ar e gi v e n i n r e g ar d t o pr oj e cts a n d pr o gr a m s t h a t ar e o n t h e n a vi g a bl e w a t er w a ys 

of t h e St a t e or m a y aff e ct t h es e w at er w a ys.

(1 0) A ut h oriz e t h e assi g n m e nt, tr a nsf e r, l e as e, c o n v e y a n c e, gr a nt or d o n ati o n of 

a n y or all of its pr o p er t y t o t h e U nit e d St a t es of A m eri c a or t o a n y a g e n c y or 

d e p a rt m e nt t h er e of, f or us e of t h e U nit e d St at es i n c o n n e cti o n wit h t h e p ur p os es 

of t his A ct.

(11) R e p r es e nt t his St a t e i n t h e pr o m o ti o n of t h e d e v el o p m e nt of c o m m e r ci al 

w at e r tr a ns p ort a ti o n i n t his S t at e a n d t o c o o p er at e wit h ot h e r st at es, ot h e r a g e n ci es 

of t his St a t e or a g e n ci es of t h e U nit e d St a t es G o v er n m e nt, i n a n y m a n n e r w h ats oe v er, i n a n eff or t t o d e v el o p t h e c o m m er ci al us e of t h e w at er w a ys i n t his St at e. 

T h e C o m missi o n is h er e b y e m p o w e r e d t o st u d y all e x e c u ti v e or d ers a n d l e gisl ati o n, 

st a t e a n d f e d er al, w hi c h m a y aff e ct t h e c o m m e r ci al d e v el o p m e nt of i nt ers t at e or 

i nt r as t at e w at er tr a n s p ort ati o n a n d t o m a k e r e c o m m e n d ati o ns c o n c e r ni n g a n y 

s u c h e x e c uti v e or d ers or l e gisl ati o n.

(1 2) T o d o a n d p erf or m all ot h er f u n cti o ns f or a n d i n b e h alf of t h e St a t e w hi c h 

m a y b e n e c es s ar y or d esir a bl e t o a c c o m plis h t h e p ur p os es of t his A ct, i n cl u di n g 

b u t n ot li mit e d t o t h e m a ki n g of st u di e s a n d pl a ns f or t h e e x p a nsi o n, us e a n d 

gr o w t h of t h e w at e r tr a n s p ort ati o n r es o ur c es a n d f a ciliti es of t his St at e” .

Se nat or G r a v e l . T ha n k y o u.

I’d li ke t o direct a q uesti o n t o y o u c o ncer ni n g i n d ustr y materials 

or i n d ustr y-relate d pr o d ucts, oil, gas-----

Mr. A d a m s . It w o uld ha ve t o be ge neral n o w, b ut I’ll be gla d t o 

prese nt it f or t he rec or d-----

Se nat or G r a v e l . Ver y well.

[ Letters fr o m Mr. A da ms a n d t he G o ver n or of Ar ka nsas f oll o w:]

r k a n s a s W a t e r w a y s Co m m i s si o n

Little R ock, Ark., M a y 2 3, 1 9 7 5.

H o n. i k e Gr a v e l

C h air m a n, S u bc o m mittee o n W ater Res o urces, C o m mittee o n P u blic W orks, U. S.

Se n ate, W as hi n gt o n, D. C.

e a r Se n a t o r G r a v e l At t h e h e ari n g at Vi c ks b ur g, Mississi p pi o n M a y 1 6, 

1 9 7 5 y o u r e q u est e d t h a t I f ur nis h f or t h e r e c or d t h e p er c e n t a g e of t h e t ot al 

c o m m er c e tr a ns p ort e d o n t h e n a vi g a bl e w at er s wit hi n t h e St at e of Ar k a ns as 

t h at is e n er g y r el at e d.

O n t h e b as es of r e c or ds a v ail a bl e t o t his offi c e it is esti m at e d t h at o v e r 3 8 

p er c e n t of t h e i n b o u n d- o ut b o u n d c o m m er c e t h a t w as m e nti o n e d i n m y pr es e nt ati o n w as e n er g y ori e nt e d. I c all y o ur a tt e n ti o n, h o w e v er, t o t h e f a c t t h at u p t o n o w 

v e r y littl e c o al h as m o v e d o n t h e Ar k a ns as Ri v er. It is e x p e ct e d t h a t i n t h e n e ar 

f ut u r e t his m o v e m e nt will i n cr e as e m a n y f ol d a n d it is pr o b a bl e t h at e n er g y 

ori e nt e d pr o d u cts will a m o u nt t o o v er 7 5 p er c e nt of t h e t ot al.

Pl e as e c all o n m e if I c a n b e of f urt h er s er vi c e t o y o u a n d y o u r st aff a n d ot h er 

m e m b ers of t h e S u b c o m mitt e e.

Si n c er el y y o urs,

a u l E. d a m s , 

Exec utive Direct or.
8 7

t e o f Ar k a n s a s

f f i c e o f t h e Go v e r n o r

Little R ock, Ar k., J u ne 2 0, 1 9 7 5.

Se nat or M i k e Gr a v e l

C h air m a n, S u bc o m mittee o n W ater Res o urces, C o m mittee o n P u bli c W orks, U. S.

Se n ate, W as hi n gt o n, D. C.

e a r Se n a t o r Gr a v e l : At t h e heari n g t hat y o u hel d i n Vic ks b ur g, Mississi p pi, 

o n Ma y 1 6, 1 97 5, Mr. Pa ul E. A da ms, E xec uti ve Direct or of t he Ar ka nsas Waterwa ys C o m missi o n, prese nte d testi m o n y c o ncer ni n g water res o urce de vel o p me nts.

I w o ul d li ke t he rec or d t o s h o w t h at I c o nc ur wit h t he state m e nt prese nte d b y 

Mr. A da ms. I als o wa nt t o e m p hasize t he c o nti n ui n g p u blic val ue of t oll-free 

water wa ys a n d res pectf ull y re q u est t h at y o ur S u bc o m mitte e m o ve ca uti o usl y i n 

rec o m me n di n g a n y drastic c ha n ges i n nati o nal water w a ys p olicies wit h o ut a 

t h or o u g h a n d i m partial st u d y of t h e a d verse i m pacts t h at mi g ht res ult fr o m f uel 

ta xes, l oc ka ge fees, t o n- mile ta xes, or ot her user c har ge i m p ositi o ns.

Ver y tr ul y y o urs,

a v i d P r y o r

Se nat or G r a v e l . We ’ll g o o n t o t he ne xt wit n ess. Ne xt we call 

Mr. Jess e Br e nt, pre si d e nt of Br e nt T o wi n g C o., Gree n vill e, Miss. 

Plea se, pr oce e d, sir, a n d I ’ m s ure if y o u ha v e a writt e n st at e m e nt 

t o s u b mit t o t he c o m mittee, it will be recei ve d f or t he rec o r d. Y o u 

d o n’t ha v e a writt e n st at e m e nt t o s u b m it at t hi s ti m e?

Mr. B r e n t . N , sir.

Se nat or G r a v e l . Ver y well, please, pr oce e d.

S T A T E M E N T O F J E S S E B R E N T, P R E SI D E N T, B R E N T T O WI N G C O.

Mr. B r e n t . Se nat or, I wa nt t o t h a n k y o u f or c o mi n g d o w n i n o ur 

pa rt of t he c o u ntr y a n d o bse r vi n g w h at o ur pr o ble m s are. H o we ver, 

I ’ m g oi n g t o tal k i n a ge ne ral s ort of wa y.

Ha vi n g s p e nt m y w h ole lifeti me o n t he Mississi p pi Ri ver S yste m, 

I feel li ke I k n o w a little s o m et hi n g a b o ut t he pr o ble ms we i n t h e 

t o wi n g i n d u str y face.

I ’ll g o bac k t o t he da y s of M ar k T w ai n. T h e ri v er tra ns p o rtati o n 

was t hri vi n g, a n d t he n t he rail r oa ds ca m e a n d p ut t he ol d pa c k et 

b o ats o ut of b usi n ess, a n d C o n gress wisel y —I t hi n k it was i n 19 20 — 

f or m e d t he I nla n d W ate r w a y C or p orati o n, w hic h o pe rat e d t he Fe deral 

bar ger y s yste m. It ’s a pit y t h at s o me of t he pri vate sect or i n t hi s 

c o u ntr y di d n ’t ha ve t he m o ne y a n d t he f or esi g ht t o d o t h at.

A n d w he n I we nt i n t hi s b usi ness, I’ m n o w i n 1941, we wer e m o vi n g 

3 per ce nt of t he i nter cit y frei g ht, a n d n o w we’re m o vi n g 16 pe rc e nt. 

We ’ ve ha d 2 real g o o d yea rs o n t he Mississi p pi Ri v er S yste m. All of 

us ha v e. We’ ve ha d all we c o ul d d o, a n d o ur i n d u str y has bee n b uil d ­

i n g e q ui p me nt j u st as fast as t he y c o ul d, a n d t he a vera ge s hi p ya r d 

t o da y has g ot a bac kl o g of a 1 % t o 2 yea rs, b ut I see —I see a sla c ki n g 

off i n o ur b usi n ess d ue t o t he fact t h at t he t o n na g e is n ot g oi n g t o 

i ncre ase, i n m y o pi ni o n, li ke it has i n t he last se veral yea rs, a n d I 

t hi n k o ur pe o ple are g oi n g t o g o t hr o u g h s o me lea n years, a n d I w o ul d 

h o pe t he G o ver n m e nt a n d t he G o ver n m e nt a ge ncie s a n d C o n gres s 

w o ul d l o o k at t hi n gs t he y ca n d o t o hel p o ur i n d u str y ri de t hr o u g h t his 

peri o d. I ’ d li ke t o see------

Se nat or G r a v e l . Mr. Bre nt, w h at are t he s pecific i n d ust rie s or 

area s t h at y o u are refe rri n g t o? T h e w h ole ec o n o m y of t he Nati o n or 

a n y s pecial gr o u p t h at is h urti n g ?

Mr. B r e n t . Well, t he grai n pe o ple are h u rti n g beca use of t heir 

cr o p la st ye ar u p t here, a n d pr o s pe cts d o n’t l o o k t o o g o o d n o w.
8 8

Pe tr ole u m m o ve m e nt is, I ’ m s ure, d o w n beca use — well, t he far m ers 

ha ve n’t bee n a ble t o get i n t he fiel ds t o b ur n t he t ra ct or f uel a n d diesel 

f uel, a n d we g ot st ora g e pr ett y well f ull i n t his c o u ntr y. T h e o nl y n e w 

t o n na g e t h at I see is c oal, a n d t h at is g oi n g t o hel p, b ut all t his e q ui pme nt t h at’s o n or d er t o d a y, a n d it ’s o n t he ri ve r, sa y, 2 ye ars fr o m n o w, 

I j ust d o n’t see t he t o n na g e t o kee p it all b us y is t he p oi nt I ’ m ma ki n g, 

a n d m yself, I ’ m n ot g oi n g t o — w he n I fi nis h t he w or k pr o gra m I ’ m 

o n, I ’ m n ot g oi n g t o b uil d. 1 m n ot g oi n g t o e x p a n d a n y m ore u ntil I 

see. A n d we’ ve g ot — w e’ ve g ot a b u nc h of t o w b o ats tie d u p i n m y t o w n 

ri g ht n o w o ut of w or k. T h e y ’re a b o ut 1 0 0 d o micile d, a n d we’ ve g ot 

1 5 of t he m tie d u p, a n d t h at h urts.

I ’ d li ke t o, als o, re mi n d y o u. Y o u k n o w, I t hi n k it was i n 1 9 1 4, 

C o n g ress wisel y pass e d t he Pa na ma Ca n al Act. N o w, t hes e are s o me 

t hi n gs t h at C o n gress has d o ne t h at I t hi n k was d o ne wit h a l ot of 

t h o u g ht, b ut s o me t hi n gs — C o n gr ess has d o ne s o me t hi n gs i n t he la st 

se ve ral yea rs t h at reall y h u rt us, a n d I d o u bt t h at t he y realiz e w he n 

t he y di d it —i n fact, I k n o w t he y di d n ’t. I k n o w I tal k e d t o m y t w o 

Se n at or s. T his M u s kie bill t h at was i ntr o d uce d has g ot s o me vici o us 

t hi n gs i n it. We’ ve g ot s o me st uff we ca n’t li ve wit h, a n d I ’ ve c he c ke d 

i nt o it a n d f o u n d o ut t h at t his first was ori gi n ate d w he n Se nat or 

M u s kie was, y o u k n o w, fr o nt r u n ner f or Pre si d e nt. I ’ m s ure he we nt 

t o his c ollea g u es a n d sai d, “I g otta ha v e a bill t o clea n u p t he water 

a n d air,” a n d, y o u k n o w, it passe d t he Se nat e wit h a v oice v ote. We 

g ot o ver t o t he H o u se a n d we nt t o w or k a n d we g ot a n e xte nsi o n of 2 

ye ars o n it. I ’ m tal ki n g a b o ut t he $ 5, 0 0 0-a- b arrel fi ne f or s pilli n g a n 

u nr e m o va ble s u b sta nce i n a wat er w a y. N o w, we ca n’t b u y i ns ura nce 

f or t h at, a n d if it’s a ba d s u b sta n ce, w h ate ver it mi g ht be, I t hi n k it ’s 

j u st a b o ut as safe t o m o ve it o n t he water wa y as a n y ot he r m o de; i n 

fact, safer, b ut if C o n gres s d o n’t d o s o m et hi n g, we’re j u st g oi n g t o 

ha v e t o n ot m o ve t hes e c o m m o dities t h at a re liste d. N o w, E P A ha s n ’t 

c o me o ut wit h a list yet. T h at ’s t he o nl y t hi n g t h at’s sa ve d us. O ur 

ti me has r u n o ut. We were o n a $ 5 0, 0 0 0 ma xi m u m fi ne u ntil la st fall. 

T his is j u st o ne t hi n g.

Se nat or G r a v e l . Ho w ca n we st o p s pills if we d o n’t fi ne t he se------

Mr. B r e n t . I di d n ’t q uite------

Se nat or G r a v e l . It ’s o b vi o us, y o u k n o w, t h at we ha v e s pills. H o w 

d o we st o p t hese s pills?

Mr. B r e n t . Well, I t hi n k t he C oa st G ua r d ’s g oi n g t o ma k e us b uil d 

d o u ble-s ki n ne d bar g es e ve nt u all y, at lea st d o u ble si des, a n d, y o u 

k n o w, we j u st se veral ye ars a g o sta rte d lice n si n g all o ur pil ots, o ur 

pers o n nel.

All t his st uff h as r u n o ur c o sts u p. I use d —I ’ve testifie d bef or e c o mmittee s of C o n gress a n d ki n d of ma d e a bra g a b o ut we — o u r a vera ge 

rat es o n t he ri v er are t he sa me as t he y were at t he e n d of W orl d Wa r 

II. I c o ul d d o t his a b o ut 4 y ear s a g o, a n d we were tal ki n g a b o ut 2 t o 

3 mill a t o n- mile. We ’re tal ki n g a b o ut 4 or 5 t o d a y, Se n at or, a n d a 

l ot of t his c ost is br o u g ht o n b y all of t he re g ulati o n s a n d t he t hi n gs 

t h at we ha v e t o d o.

N o w, t he f uel is t he bi g ge st ite m. O u r la b or’s u p, b ut o ur f uel is 

u p 3 0 0 perc e nt, a n d o ne of o ur 5, 0 0 0- h ors e p o w er t o w b oats will b u r n 

6, 0 0 0 gall o ns of diesel f uel a da y. Well, it ’s eas y t o fi g ure. At 1 0 ce nts 

a gall o n, t h at was $ 6 0 0 w ort h of f uel. T o da y it is 3 0-s o met hi n g ce nts 

a gall o n. See?

Se nat or G r a v e l . Yo u ca n’t bla m e Se nat or M us kie beca u se t he 

f uel’s g o ne u p. T h e fact of c o nsta nt s pilli n g —if t he c or ps or t he C oa st
8 9

G u ar d ma ke y o u ha ve t hese d o u ble- b ott o me d bar ge s, t h at’s a n ot he r 

reas o n f or c o nsi deri n g m ore t h a n t he $ 5, 0 0 0 fi ne.

Mr. B r e n t . T h at’s a — n o w, Se nat or, t h at’s $ 5, 0 0 0 per barrel. O ne 

of m y bi g bar ge s h ol d s 3 0, 0 0 0 barr els. T h at’s $ 1 5 0 milli o n; is n ’t it?

Se nat or G r a v e l . T ha t w o ul d pr ett y well p ut y o u o ut of b u si n ess; 

w o ul d n’t it?

Mr. B r e n t . Yo u ca n’t b u y t h at i ns u ra n ce.

Se nat or G r a v e l . Y o ur first a n d last s pill.

H o w ca n y o ur b usi n ess hel p pr e v e nt t hes e petr ol e u m s pills wit hi n 

y o ur ec o n o mic c o nfi nes? W hat ca n y o u d o ot h er t h a n sa y y o u’ll tr y ? 

N ot y o u, pers o nall y, b ut y o ur i n d ustr y ?

Mr. B r e n t . Well, y o u k n o w t he bar g e t h at hit t he Vic ks b ur g 

bri d g e here?

Se n at o r G r a v e l . We sa w t h at.

Mr. B r e n t . Yo u k n o w, t h at was a hi g h- w ater area. I d o n’t k n o w 

w h at y o u ca n d o t o pre ve nt t h os e t hi n g s fr o m ha p pe ni n g. W hat d o 

y o u d o t o pr e v e nt t hes e cars fr o m r u n ni n g off t he rail r oa d tra c k a n d 

t hes e tr u c k s fr o m ha vi n g acci de nts o n o ur hi g h w a ys? Y o u j u st d o t he 

best y o u ca n. I d o n’t t hi n k y o u’re g oi n g t o eli mi nate t he m, b ut I 

t hi n k o ur t otal saf et y rec or d is i m p r o vi n g, a n d I tr y t o pr e v e nt t he m 

i n, y o u k n o w, o ur b usi ne ss beca u se of t he c ost if I di d n ’t w a nt t o d o it 

beca u se I di d n ’t w a nt t o see a n y oil s pille d o n t he ri ver.

N o w, o ne ot h er t hi n g, Se n at or. I ’ m tal ki n g j u st as plai n as I k n o w 

h o w beca u se I d o n’t t hi n k y o u wa nt me t o sit u p here a n d, y o u k n o w, 

b u tte r t his t hi n g u p. I ’ m n ot pessi mistic a b o ut t he tra ns p o rtati o n o n 

t he i nla n d water w a ys, b ut I d o see s o me pr o ble m s a he a d, a n d I w o ul d 

h o pe t h at y o u as a Se nat or w o ul d kee p t h at i n mi n d. I g uess t o da y 

we are t he he alt hie st se g me nt of t he tra ns p o rtati o n s y ste m. Fr o m 

w h at I rea d, t he airli n es are i n tr o u ble. S o me of o ur —a l ot of o u r 

railr oa ds are, a n d I tal k e d t o a g o o d frie n d of mi ne w h o o p erates a bi g 

tr u c ki n g li ne j u st 1 or 2 da y s a g o w he n I k ne w I was c o mi n g d o w n 

here. He sa ys t he tr u c k er s’ t o n na g e is off nati o n wi d e 2 0 per ce nt. N o w, 

I d o n’t see w h y we s h o ul d ta m pe r t o o m u c h wit h a n i n d u str y t h at’s 

d oi n g all ri g ht a n d re n deri n g t he frei g ht ser vic e t o t hi s c o u ntr y — 1 6 

per ce nt of t he frei g ht, b ut 2 per ce nt of t he frei g ht bill, a n d t hi s is 

g oi n g t o g o o ut —it ’s g oi n g t o m us hr o o m o ut j u st li ke w he n y o u we nt 

u p o n t he price of steel $ 5 a t o n, w h y, y o ur refri g erat or we nt u p $ 5. 

Well, t here wa s n’t a t o n of steel i n y o ur refri gerat o r, b ut it still we nt 

u p $ 5. I ’ m j u st gi vi n g t h at f or a n e xa m ple.

N o w, I k n o w I ’ ve ta k e n t o o m u c h ti m e. I ha v e o ne ot he r t hi n g 

t o sa y. It j u st galls me t he a b us e s o me pe o ple are gi vi n g o ur frie n ds, 

t he C or ps of E n gi ne ers. We deal wit h a b u n c h of G o ver n m e nt 

a ge ncies — m ostl y, C o ast G u ar d; n e xt t o C o ast G u ar d, c or p s pe o ple — 

a n d I t hi n k t h at t he C or ps of E n gi ne ers is o ne of t he fi ne st or g a ni zati o n s, a n d I ’ m n ot g oi n g t o sa y b urea ucr aci es beca use it ’s n ot a 

b urea ucr ac y. It ’s o ne of t he fi nest or g a ni zati o n s i n t hi s c o u ntr y. I 

ha ve see n t he m o ve r m y lifeti me. I w or ke d wit h t he m 4 y ear s w h e n I 

was a y o u n g ma n, a n d t he y are de dicate d pe o pl e.

T h ere was a n arti cle, a series of arti cle s, i n t he Jac ks o n pa per 

rec e ntl y, a n d a frie n d of mi ne se nt me s o me of t he m. I t hi n k t h ere 

was si x, a n d t he g u y t h at wr ote t he m, he ma y be sitti n g o ut t h ere 

s o m e w h ere be hi n d me ri g ht n o w. I d o n’t care if he is. I rea d t h o se 

t hi n gs, a n d I ’ m g oi n g t o gi ve y o u a n ill u str ati o n. He tells a b o ut t he 

M o r ga nza S pill wa y, a n d t he c or ps b uilt it, a n d it ’s o nl y bee n o pe n e d 

o ne ti m e i n 2 0 yea rs. Well, w he n we b uilt t he t hi n g, we h o p e d we
9 0

ne v er w o ul d ha v e t o o pe n it, a n d t he o nl y ti me w e’re g oi n g t o o pe n it 

is i n t he ti m e of a crisis w he n we ha v e a n ot h er hi g h water li ke we 

ha d i n 1 9 7 3, or 1 9 3 7, 1 9 27. See, a n d here he was. T h e a vera ge pers o n 

w h o di d n ’t k n o w as m uc h a b o ut it as I d o w o ul d t hi n k, “ W ell, t he 

C or ps of E n gi ne ers wa ste d all t h at m o ne y o n t he M o r ga nza S pill wa y.” 

T h at’s j u st a n ill u str ati o n.

I wa nt t o g o o n rec or d a n d sa y t h at I t hi n k t hese are a fi ne, de dicate d b u n c h of pe o ple, a n d I h o pe y o u feel t he sa m e w a y I d o, Se n at or.

T h a n k y o u f or letti n g me c o me d o w n here. Y o u’re g oi n g t o get a n 

A W O testi m o n y i n Wa s hi n gt o n, a n d it w o n ’t be as ra m bli n g as 

mi ne, a n d i t’ll h a v e m ore statistics i n it.

T h a n k y o u ver y m uc h.

Se nat or G r a v e l . T h a n k y o u ver y m u c h, Mr. Br e nt.

O ur ne xt gr o u p of wit nes ses will be a n e n vir o n m e nt al pa n el, a n d 

n o w if all t he p e o ple o n t he p a nel w o ul d j ust c o me a n d seat y o ur sel v es 

t here.

First, w o ul d y o u j u st li ke t o i nt r o d uce y o ur sel ve s?

Dr. C l e m m e r . I ’ m Gle n n Cle m m er fr o m Star k ville, Miss.

Dr. L a z e l l . I ’ m Ja m es Lazell wit h t he Nat ure C o nser va nc y.

Dr. S u t t k u s . I ’ m R o yal S utt k us fr o m Ne w Orlea ns, La.

Miss A n d e r s o n . I ’ m P oll y A n d ers o n wit h t he Mississi p pi Wil dlife 

Fe der ati o n.

Se nat or G r a v e l . All ri g ht, t h a n k y o u. Y o u r first wit nes s ma y 

n o w pr oce e d.

S T A T E M E N T O F G L E N N C L E M M E R, BI O L O GI S T

Dr. C l e m m e r . I w o ul d first li ke t o t h a n k y o u, Se nat or Gra vel, 

f or t he o p p o rt u nit y t o ma k e a state m e nt t o da y bef ore t he c o m mittee.

M y na m e is Gle n n Cle m mer, a n d I a m a bi ol o gist a n d resi d e i n 

Star k ville, Miss. I ha v e w or ke d i n t hi s are a f or t he pa st 1 2 yea rs, 

a n d I a m a n ass o ciat e pr ofess or of z o ol o g y. I a m ma ki n g t his st at e m e nt 

o n m y o w n be h alf a n d, of c o urse, m y vie ws d o n ot nece ssaril y re p rese nt t h os e of t he de pa rt m e nt I ’ m ass o ciat e d wit h.

N u me r o u s e n vir o n me ntal gr o u ps, bi ol o gists, a n d pr of essi o nal 

s ocietie s, i ncl u di n g t he A merica n Fis h erie s S oci et y, t he A m eric a n 

S oci et y of Ic ht h y ol o gists a n d Her pet ol o gists, a n d t he Ass o ciati o n of 

S o ut h easter n Bi ol o gist s ha v e calle d f or a ree val uati o n of t he e n vir o nme ntal l osses res ulti n g fr o m p u blic w or ks pr ojects s uc h as na vi g ati o n 

pr o g ra m s of t he Ar m y C or ps of E n gi ne ers. T h e A m eric a n Fis h erie s 

S oci et y i n 1 9 7 3 pas se d a re s ol uti o n vi g or o u sl y o p p osi n g —a n d I q u ote:

P u blicl y f u n de d strea m alterati o n acti vities, b ot h e xisti n g a n d pr o p ose d, 

u ntil nat ural res o urce val ues, res o urce e n ha nci n g, a n d recreati o n o p p ort u nities 

are c o m pre he nsi vel y e val uate d . . .

T h e C o m ptr oller Ge n eral last fall, Se pte m b er 1 9 7 4, pre se nte d a 

re p ort t o t he C o n gres s e ntitl e d: “I m p r o ve me nts Nee de d i n Ma ki n g 

Be n efit- C ost A nal yse s f or Fe d eral W ate r Res o urc es Pr oje ct s,” a n d 

t he p u blicati o n was pres e nt e d i n res p o nse t o t he err ati c pr o ce d ure s 

e m pl o ye d b y pla n ni n g a ge ncies, i ncl u di n g c or ps pr oj ects.

I w o ul d li ke t o el a b orate o n s o me of t h e hi g hl y q uesti o n a bl e p ractic es 

ass ociate d wit h a p artic ul ar na vi g ati o n pr oje ct t h at I a m m o st f a miliar 

wit h —t he pr o p o se d Te n nes see- T o m bi g be e Water w a y. H o w e ver, m uc h 

of t he rati o n ale a n d met h o d ol o g y be hi n d t hi s pr oject has a p plicati o n, 

I feel, t o ot h er na vi g ati o n pr oject s i n ge ne ral.
9 1

T he Te n nessee- T o m bi g bee Water wa y is a pla n t o li n k t he Te n nessee 

a n d T o m bi g bee Ri vers. T he pr oject e xte n ds t hr o u g h n ort h east 

Mississi p pi a n d wester n Ala ba ma. T he 2 5 3- mile water wa y will c o nsist 

of 1 0 l oc ks a n d da ms a n d will c ut t hr o u g h t he di vi de area bet wee n t he 

t w o ri vers. T he di vi de c o nstr ucti o n will be t he lar gest eart h m o vi n g 

pr oject e ver u n derta ke n i n N ort h A merica. T his is esse ntiall y a n a vigati o n pr oject. T here will be n o p o wer pr o d ucti o n a n d n o —t here is n o 

fl oo d pr otecti o n wit h Te n n- T o m.

T he Te n n- T o m was a ut h orize d i n 1 94 6 at a n i nitial c ost of $ 1 16. 9 

millio n. B y 1 96 9, c ost esti mates ha d i ncrease d t o $ 3 16 milli on. T he 

1 97 4 esti mate was $ 8 70. 4 milli on. T his re prese nts a n i ncrease of $ 1 67 

millio n o ver t he past year. T h us, 1 year i ncrease i n c osts f or 1 97 4 

is m ore t ha n t he e ntire b u d get t hat was pre dicte d at t he ti me of 

a ut h orizati o n. W hile t he c osts ha ve i ncreased si xf ol d, ha ve t he 

be nefits i ncrease d acc or di ngl y? N o st u dies are a vaila ble. T he c or ps 

re plies, h o we ver “t he pri mar y be nefits f or t he water wa y, w hic h are 

deri ve d fr o m esti mates of sa vi n gs i n tra ns p ortati o n c ost, ha ve also 

i ncrease d res ulti n g i n little c ha n ge i n t he o verall be nefit-c ost rati o.” 

If sa vi n gs t o s hi p pers ha ve i ncrease d s o pr o di gi o usl y, al m ost 3 00 

perce nt o ver t he last 5 years, it see ms t hat t he y c o ul d well aff or d t o 

b uil d, use a n d mai ntai n t he water wa ys wit h o ut t he s u bsi dies t hat t he y 

n o w e nj o y.

T he i ntere st rate use d t o disc o u nt be nefits a n d c osts was 3 % perce nt. 

Acc ordi n g t o t he st u dies of ec o n o mist Dr. Pa ul R o berts, t he pr oject 

bec o mes u nec o n o micall y feasi ble if a disc o u nt rate of sli g htl y o ver 

5 perce nt is use d, well bel o w t he 5 %- perce nt rate prese ntl y i n effect.

I n a d diti o n, t he ec o n o mic be nefits beco me e ve n m ore d o u btf ul w he n 

o ne realizes t h at 5 0 perce nt of t he traffic pr ojecte d f or Te n n- T o m will 

act uall y be traffic di verte d fr o m t he parallel Mississi ppi Ri ver.

E n vir o n me ntal l osses ha ve n ot bee n i ncl u de d i n t he a nal ysis. T he 

T o m bi g bee Ri ver is t he lar gest re mai ni n g u ni m p o u n de d, u nc ha nnelize d ri ver i n t he e ntire M o bile drai na ge basi n. T he destr ucti o n of 

t he T o m bi g bee Ri ver will eli mi nate o ne of t he ric hest ri veri ne fa u nas 

i n N ort h A merica. Water wa y c o nstr ucti o n will affect n u mer o us s pecies 

of t hreate ne d fish a n d fres h water m ussels. T he c urre nt listi n g of rare 

a n d t hreate ne d verte brates i n Mississi p pi p u blis he d b y t he Mississi p pi Ga me a n d Fis h C o m missi o n i ncl u de d 3 5 s pecies of fres h water 

fish t hat are detri me ntall y affecte d b y na vi gati o n pr ojects i n o ur State. 

T his a m o u nts t o a p pr o xi matel y o ne-si xt h of o ur nati ve fis h fa u na.

C ol. Dra ke Wils on of t he M o bile district rec o gnizes t he i m p orta nce 

of t hese l osses. I n a letter of Oct o ber 8, 1 97 4, he wr ote, “ A di versit y 

of ha bitat a n d of s pecies of or ga nis ms wit hi n a n ec os yste m c o ntri b utes 

t o t he s yste m’s sta bilit y a n d s ustai ne d pr o d ucti vit y b y ma ki n g t he 

s yste m m ore a da pta ble t o nat ural or ma n-i n d uce d c ha n ges.” T he n he 

f urt her n ote d t hat t he c ha n nelizati o n of strea ms “ w o ul d ha ve a n 

a d verse effect o n t he ec os yste m b y de gra di n g water q ualit y a n d i ncreasi ng d o w nstrea m se di me ntati o n.” It see ms s ha mef ul t o me, s ha mef ull y i nc o nsiste nt, t hat fis h a n d wil dlife a n n ual be nefits i n h u n dre ds of 

t h o usa n ds of d ollars are c o m p ute d as p art of t he merits of t he Te n nT o m pr oject. Yet, t he l osses of e ntire p o p ulati o ns a n d c o nti n ue d 

e n vir o n me ntal de gra dati o n g o u nacc o u nte d f or.

As me nti o ne d pre vi o usl y, t he matt er of s p oil dis p osal is a m o n ume ntal u n derta ki n g, 2 58 milli on c u bic v ar ds of dirt will be re m o ve d 

i n t he c o n str ucti o n of t he pr oject. T hat is m ore dirt t ha n was re m o ve d

5 4- 2 3 9 0 - 7 5 - 7
9 2

fr o m t he Pa na m a Ca n al di vi de c ut. T his is e q ui vale nt t o a c ha n nel 

1 0 f eet dee p, 3 0 0 f eet wi de, a n d 5 0 0 miles l o n g. T h at’s a b o ut 3 7 milli o n 

tr uc kl o a ds. T h e c or ps di d n ot re ve al h o w t he y w o ul d c o nte n d wit h t he 

s p oils u ntil t hi s pa st fall w he n t h e y a n n o u n ce d t h at t h e y pla n t o fill 

5 1 vall e ys i n n ort h er n Missis si p pi. C osts of dis p osal, gra di n g, a n d 

re v e getati o n was n ot i ncl u de d o n t he de bit si de of t he be ne fit-c ost 

rati o.

A pr o ble m t h at is cl osel y ass o ciat e d wit h na vi gati o n pr ojects a n d of 

critic al i m p orta nce t o t he pe o ple of o ur are a is fl o o di n g. I n c o nstr u cti n g na vi gati o nal c ha n n els, t he c or p s nece ssaril y m o difies fl o w p atter n s 

b y c utti n g t hr o u g h nat ur al mea n ders, t h u s str ai g hte ni n g t he str ea mbe d a n d acc eler ati n g r u n off. W h e n le vee s yst e ms are a d d e d, t his 

pre ve nts t h e n at ur al di s pers al of w ate r o ver t h e fl o o d plai n a n d ele vat es 

t he le vel d o w nstr ea m. D uri n g t he fl o o d peri o d of t his s pri n g i n t he 

T o m bi g b ee Valle y, rec or ds s h o we d t h at pre ci pitati o n was 2 1 pe rce nt 

a b o v e l e vel — a b o ve n or m al. H o w e ver, t h e r u n off w as 4 3 per ce nt a b o v e 

n or mal. It see ms reas o na ble t h at o ur i ncre ase d fl o o di n g ma y be 

attri b uta bl e t o t he e xte n si ve str ea m m o dificati o ns.

T h e cat al o g of a b uses a mas se d b y c or ps na vi gati o n pr ojects is s o 

e xte nsi v e t h at I tr ust t h at a ree val uati o n will be f ort hc o mi n g bef ore 

a d diti o nal e x p e n dit ur es are gi ve n t he us ual a ut o m ati c sta m p of 

a p p r o v al.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

W h o will be ne xt?

S T A T E M E N T O F D R. J A M E S D. L A Z E L L, J R., T H E N A T U R E C O N S E R VA N C Y A N D J OI N T A U D U B O N S CI E N TI F I C S T A F F

Dr. L a z e l l . I a m Ja me s D. La zell, Jr., wit h t he N at ur e C o nser va nc y, 

t he J oi nt A u d u b o n Scie ntific Staff, a n d I ’ m als o e m pl o ye d as a 

c olla b orat or wit h t he Nati o nal Pa r k Ser vi ce, a n d I ’ m c u rre ntl y resi di n g i n Mississi p pi, Jac ks o n, Miss.

T h e Ar m y C o r ps of E n gi ne ers is wit h o ut a d o u bt t he m o st e nvir o n me ntall y destr u cti ve or g a ni zati o n o n E art h. Bi ol o gists, ec olo gists, nat uralists, c o n ser v ati o nist s, a n d o ut d o or s p o rts me n acr oss 

t he Nati o n are per pet uall y h orrifie d a n d sic ke ne d b y pr oje ct aft er 

pr oject de str o yi n g e nti re nat ural ec o s yst e ms t h at ca n ne v er be re ­

place d. F o r w h at? I n e ver y case k n o w n t o me —I belie v e t o da y’s 

heari n g s be ar t hi s o ut —t he w or ki n gs of t he Ar m y C or ps be n efit a 

rel ati vel y ti n y ha n df ul of l ocal, pri v at e la n d o w n ers, s ni p per s, e ntre pre ne u rs, a n d me rc h a nt s at t he e x pe n se of e ve r y ta x pa yer i n t he 

c o u ntr y.

T h ere is a certai n es prit, or s pirit of a d ve nt u re, a b o ut t he Ar m y 

C or ps re mi ni sce nt of t he fa m o us m o u ntai n cli m b er, Mall or y, w h o 

trie d M o u nt E v er est “ b eca us e it is t h er e. ” T he Ar m y C o r ps ’ m ott o 

s h o ul d be “ b eca u se it is p ossi ble. ” T h ere is n o m o u ntai n ra n ge t he y 

ca n n ot tra nsf or m i nt o a la ke; n o la ke t h e y ca n n ot drai n t o dr y la n d; 

n o fres h water s yste m t he y ca n n ot c o n v ert t o salt; a n d, I fear, n o 

ocea n t he y ca n n ot at lea st tr y t o re n der fres h. I p ossess a 2 2- v ol u me 

st u d y a n d pr o p osal of t he Ar m y C o r p s’ o n t he l o wer Mississi p pi 

Ri ver V alle y, t he u p s h ot of w hic h is t h at t h e y pla n t o str ai g ht e n t he 

ri v er a n d li ne it wit h c o nc rete. T h e i ncr e di ble r u n off of t o ps oil a n d 

fres h water t h at w o ul d res ult mi g ht veril y g o a l o n g wa y t o w ar d 

c o n verti n g t he G ulf of Me xic o t o fres h water, a n d s o me da y, i nt o dr y 

la n d — o r at lea st t o brac kis h m u d.
93

T he Ar m y C or ps l o ves t o select a re m otel y i nla n d c o m m u nit y, li ke 

T ulsa, O kla., a n d ma ke it a sea p ort. Q uesti o n t he m s pecificall y o n 

j ust h o w be neficial t hat pr oject has pr o ve n t o be.

I p ossess a n ei g ht- v ol u me st u d y o n t he Pasca g o ula Ri ver s yste m of 

Mississi p pi, t he u ps h ot of w hic h is t o ma ke t he t o w n of Meri dia n a 

sea p ort. T o d o t his t he y will ha ve t o ca nalize, le vee, da m, a n d i nstall 

l oc ks ri g ht t hr o u g h t he vast Pasca g o ula S wa m p, a n area t he pe o ple 

of Mississip pi, wit h t he hel p of t he Nat ure C o nser va nc y, are att e m pt ­

i n g t o preser ve as pr o ba bl y t he last, bi g gest, best n at ural area i n t he 

S o ut heast. T he Ar m y C or ps’ eff orts w o ul d destr o y t he w h ole ec ol o gy 

of t he re gi o n, de pe n di n g as it d oes o n seas o nal a n d s patial, r h yt h mic, 

nat ural c ha n ges i n w ater le vel.

L o o k at t he hist or y of t he c or ps’ deali n gs i n t he E ver gla d es re gi o n 

of s o ut h Fl ori da —s pecificall y, wit h E ver gla des Nati o nal Par k. T he 

c or ps will alter natel y water star ve t he par k u ntil t he l osses t o a ni mal 

a n d pla nt life ca use a ge neral h ue a n d cr y a m o n g t he p u blic, t he n i n 

see mi ng c hil dis h s pite, t he y t ur n o n t he w ater f ull blast a n d fl oo d us 

o ut.

C o nsi der n o w t he m uc h-t o ute d E di n b ur g Da m pr oject, part of ni ne 

v ol u mes I p ossess o n t he ge neral ra pe a n d pilla ge of Mississi p pi’s 

Pearl Ri ver S yste m. T he c or ps tell us t h at E di n b ur g will be a “recrea ­

ti o nal reser v oir, ” n ot y o ur t y pical dr y m u d, dea d z o ne h orr or use d f or 

fl o od c o ntr ol. T hat mea ns, if tr ue, t hat t he reser v oir w o ul d be k e pt at 

t he sa me le vel ye ar r o u n d, s o ve get ati o n c o ul d gr o w ar o u n d its s h ore ­

li ne. I n t he ne xt breat h, h o we ver, t he y p oi nt o ut h o w w o n derf ull y t he y 

will use E di n b ur g’s i m p o u n de d waters t o miti gate Jac ks o n’s p oll uti o n 

of t he Pearl. D uri n g late s u m mer, l o w- water ti mes, w he n p oll uta nts 

de o x y ge nate t he ri ver f or miles bel o w Jac ks o n, t he c or ps will release 

E di n b u r g’s waters t o dil ute t he p oll uti o n. T hat is e xactl y w he n t he 

reser v oir’s s h ores, n o w re n dere d a br oa d e x pa nse of bare m u d b y t he 

dr o p pi n g water le vel, mi g ht e x pect t o e nj o y t heir gre atest recreati o nal 

use.

Are t hese s ur ve y ors of pr ojects j ust a littl e st u pi d ? D o t he y believe 

we are? Are t he y per ha ps merel y h y p ocrites? Or s o me h o w dee pl y 

per verse?

A n d, t he E di n b ur g pr oject will destr o y o ne of t he State’s last 

re mai ni n g ol d gr o wt h ri ver b ott o m f orests. We hear tal k of miti gati o n, 

e xc ha n ge of la n ds f or t h ose de n u de d a n d s u b mer ge d. W hat ca n t he y 

offer i n e xc ha nge w he n t he y ha ve destr o ye d t he la st t here was?

I c o ul d cite e xa m ples all da y. T he tita nic Te n n- T o m. It’s a mazi n g. 

T he y’re g oi ng t o fill 51 valle ys i n n ort h Mississi p pi. S o u n ds li ke scie nce 

ficti o n, b ut it ’s tr ue.

T he fa ntastic Fl ori da Bar ge Ca nal, w hic h nearl y di d destr o y s o me 

of t he fi nest a n d m ost bea utif ul wil d a n d sce nic la n d i n t he c o u ntr y, is, 

I h o pe, fi nall y dea d.

A n y wa y, we all k n o w w hat t he real pr o ble m is. T he Ar m y C or ps 

m ust s pe n d as m uc h m o ne y t his year as t he y s pe nt last i n or der t o get 

t he sa me a m o u nt ne xt year. As m uc h? Of c o urse, m ore m o ne y s pe nt is 

better, if p ossible, a n d t he Ar m y C or ps’ m ott o is “ w hate ver is p ossi ble.”

I n cl osi n g, I s u b mit t hat all Fe deral f u n ds, all m o ne ys ta ke n fr o m 

ta x pa yers, s h o ul d be wit h dra w n fr o m t he Ar m y C or ps of E n gi neers. 

We t he A merica n ta x pa yi n g pe o ple ha ve d o ne j ust da m n-e n o u g h f or 

t he me m bers of t he Ar m y C or ps. We ha ve set t he m u p, pai d t he m
9 4

w hile t hey g ot or ga nize d, s u p p orte d all t heir pla n ni n g a n d salespitc hi n g t o date. N o w let t he i n di vi d ual me m bers of t he c or p s g o 

o ut a n d sell t heir pr ojects t o t he pe o ple w h o will be ne fit b y t he m li ke 

a n y ot h er g o o d b usi n ess. T h e y s h o ul d g o o ut t o Me ri dia n a n d sell t h at 

t o w n o n b ec o mi n g a se a p o rt. G o c o n vi nce t he la n d o w n ers all al o n g t he 

wa y of w h at a gr eat t hi n g t he y ca n d o f or t he m. Get t he fi na n cial 

s p o n s ors hi p of t he s hi p p ers a n d me rc h a nts w h o are g oi n g t o d o s uc h 

g o o d b usi n ess al o n g y o u r water wa y.

St o p usi n g m y wallet a n d m y wa ges t o s u p p ort y o ur o ut ra g e o u s 

sc he m es —sc he me s t h at I a n d milli o n s of ot h er A m eric a ns o p p o se. 

Get t he pe o pl e w h o l o ve t he c or ps, a n d wa nt it, t o pa y t he bill. T h at’s 

w h at we c o nse r vati o nists ha v e t o d o.

Of c o urse, I m ust fi nis h o n a q ui et, d o w n be at n ote of gl o o m. If t he 

pe o ple i n t he Ar m y C or ps of E n gi ne ers were act uall y f orce d o ut i nt o 

t he cr uel w orl d of c o m petiti v e b usi ne ss, y o u a n d I w o ul d still ha ve t o 

f o ot t he bill; t he y w o ul d all e n d u p o n welfar e.

Se nat or G r a v e l . T ha n k y o u.

Mr. S utt k us ?

S T A T E M E N T O F R O Y A L S U T T K U S, P R O F E S S O R O F BI O L O G Y, T U L A N E 

U N I V E R SI T Y

Mr. S u t t k u s . M y na m e is R o yal S utt k us. I a m a resi de nt of Ne w 

Orle a ns, La., a n d a pr ofe ss or of bi ol o g y at T ula n e U ni ve rsit y i n Ne w 

Orlea ns. I s pe a k f or m yself, a n d s o m y vie ws are n ot nec essa ril y 

re p res e ntati ve of T ula ne U ni ver sit y.

M y st u di es of a q u ati c e n vir o n me nts be g a n i n t h e Gr eat La kes re gi o n 

as a n u n der gr a d uate at Mic hi ga n St at e U ni ve rsit y i n 1 9 3 4, were 

c o nti n u e d as a gr a d uate st u de nt at C or nell U ni ve rsit y fr o m 1 9 4 6 t o 

1 9 5 0, a n d m y pr ofess or care er as a n a q uatic bi ol o gist i n 1 9 5 0 at 

T ula n e U ni ve rsit y, a n d has c o nti n u e d t o t he pre se nt.

M y fiel d e x perie nce wit hi n t he U nite d St at es h as ra n ge d ge o gra p hi ­

call y fr o m t he H u ds o n Ri ver drai na ge i n t he N ort h ea st s o ut h w ar d t o 

t he s o ut he r n ti p of Fl o ri d a a n d we st w ar d t o t h e Pacific Ocea n. T h e 

Pacifi c N o rt h we st is t he o nl y are a i n w hic h I ha v e n ot ha d e xte nsi v e 

fiel di n g st u dies.

I ha ve m a de m ore t h a n 6, 0 0 0 a q uatic c ollecti o ns i n t he l ast 3 0 ye ars 

a n d ha v e rec o r de d fiel d n ote s f or eac h of t hes e c olle cti o n s. D u ri n g t he 

la st 2 5 y ear s, I ha v e bee n c o n d ucti n g a n u m b er of l o n g-ra n g e a q uatic 

s ur ve y s of maj or a n d mi n or tri b utaries of t he Mississi p pi a n d ot he r 

ri vers drai ni n g i n d e p e n de ntl y i nt o t he G ulf of Me xic o.

A re vie w of m y p u blis h e d a n d u n p u blis h e d data, m y r ec or de d fiel d 

o bse r va n ces a n d p u blis h e d w or ks of ot h ers t h at I a m fa miliar wit h 

lea d s me t o a ver y str o n g u ne q ui v ocal c o ncl usi o n. I fi n d t he i nl a n d 

water wa y s yste m t otall y u nj ustifia ble o n a n e n vir o n m e nt al basi s. I 

q ue sti o n w h et h er t ot al c osts will e ver be esti m ate d f or a n y pr oject.

A case i n p oi nt is pr o p ose d l oc k a n d da m 2 6 a n d t he re st of t he 

u p p er Missi ssi p pi Ri v er na vi gati o n s yste m. Milli o ns of ta x pa ye rs’ 

d ollars ha v e bee n s p e nt t his pa st wi nter a n d s pri n g tr yi n g t o kee p t he 

Mississi p pi Ri v er a n d its tri b utaries dre d ge d. Rec e ntl y a h u ge dre d ge 

was m o ve d fr o m t he ea st c oa st t o t he Mis sissi p pi Delta a d di n g t o t he 

c o n ce ntrati o n of t he lar gest dre d ges a vaila ble. Yet, t he c or ps 

has a n n o u n ce d t h at t he y are barel y a ble t o kee p u p wit h
9 5

t he i ncreasi n g siltati o n. I ha v e see n n o refere nc e t o w hat p o rti o n 

of t hese c ost s are attri b ute d t o eac h of t he u p str ea m pr ojects. 

Certai nl y, t he u p str ea m acti vities, dre d gi n g a n d s o f ort h, are rel ate d 

t o t he d o w nst rea m silt ati o n.

T h e dre d gi n g c osts al o n g t he l o wer re gi o ns of t he ri v er, alt h o u g h 

gr eat i n ter ms of milli o ns of d oll ars, are mi n or i n c o m paris o n t o t heir 

e n vir o n me ntal c osts.

T h e c osts of ret ur ni n g t hes e milli o ns of t o ns, of w hic h m u c h is ric h 

t o ps oil, bac k t o t heir place of ori gi n at t he site s of t h e u pstre a m p r ojects s h o ul d be i ncl u de d i n t he c osts fi g ure f or t he esti m ate d c ost sbe ne fit rati o.

D u ri n g m y 3 0- pl us yea rs of fiel d e x perie nc e, I ha v e yet t o see t he 

first free-fl o wi n g str ea m t h at ha s bee n e n h a nc e d bi ol o gic all y b y a 

c o n v ersi o n i nt o na vi g ati o n al i nl a n d water w a ys. T h e t y pical patt er n 

is ver y ra pi d deteri or ati o n i nitiall y d uri n g t he c o nstr u cti o n p ha se, 

t he n a c o nti n ue d pr o gressi ve deteri or ati o n t he rea fter.

T h e de str ucti o n of ric h asse m bla ges of a q uatic pla nts a n d a ni mals 

or t he d eci mati o n of e ve n a si n gle e n d a n g ere d f or m c a n ne ver be c o m ­

pe n sat e d f or o n a m o netar y basis.

It is vital t h at we mai nt ai n t he hi g he st de gre e of di v ersit y of 

pl a nts a n d a ni mals i n e ver y ge o gra p hic al are a p ossi ble. A hi g h p ri o rit y, 

if n ot t he hi g hest, s h o ul d be plac e d o n t he f o o d- pr o d ucti ve are as 

s uc h as t he ric h l o wla n ds. I n rec e nt yea rs, vari o us St at es ha ve c o m ­

pile d lists o f rare a n d t hr eate n e d, e n d a n g ere d s pecies. A n e x a mi nati o n 

of Mis sissi p pi, Ala ba m a, Mis s o uri or Pe n n s yl va nia ’s listi n g s of 

e n d a n g ere d or t hr eate n e d s pecies of fis hes re ve als se ver al facts: 

( 1) M o st of t he lists a re q uite e xte nsi ve; ( 2) a b o ut 8 0 p erc e nt or m ore 

of t he f or m s are n ot f o o d a n d ga m e a n d n o n c o m mer cial s pecies.

T h us, we see t h at t he maj or or t he m aj o rit y are s mall f ora g e fis hes. 

T h e q ue sti o n c o mes t o mi n d: W hat is ca usi n g t he deci m ati o n of 

t hes e s mall fis hes? T he a ns w er is o b vi o us t o t he e x perie nc e d o bs er ve r. 

T h e deci m ati o n of nea rl y e ver y f or m, i ncl u di n g t he ga me a n d c o m ­

mercial s pecies, is dir ectl y rel ate d t o ha bitat destr u cti o n. C o n v ersi o n 

of free-fl o wi n g ri ve rs i nt o na vi g ati o n c ha n nels a n d t he acti viti es 

ass o ciat e d wit h t he mai nt e na nce of t he na vi gati o n s yste m s pr o vi d e 

a de q u ate mec ha nis m s f or de str ucti o n of a q uatic ha bitats. I n ti m e, a 

c o m plete de str ucti o n of t he nat ural ec o s yst e m ca n be a ntici pate d.

Pre - a n d p o st-i m p o u n d m e nt st u die s of t he Ala ba m a Ri ver f ur nis h 

a de q u ate d o c u me ntati o n f or t he a b o ve state m e nts. I n 1 9 6 6, t he 

frec kl e- bellie d Ma d T o m, n ot u r us gyri n us, a s mall catfis h, was 

ta k e n at s e ve n diff ere nt l ocalities al o n g a 3 0- mile secti o n of t he ri v er. 

I n 1 9 6 7, it was ta k e n at o ne l ocalit y. T h ere aft er, n o n e was ta k e n, 

alt h o u g h 3 0 c ollecti o ns a ye ar were ta k e n at t hes e sa m e c oll ecti n g 

sites, t otali n g m ore t ha n 2 0 0 c olle cti o n s b y t he e n d of 1 9 7 4.

A n ot h er e xa m ple of a s pecies w hic h was e xter mi nate d fr o m t he 

sa me secti o n of t he Ala ba m a Ri ver was t he yell o w- bell y, perci n a

w as h atee.

We t o o k 1 1 2 s peci me n s i n 3 0 c olle cti o ns d uri n g 1 9 6 6; 2 5 i n 1 9 6 7; 

4 6 i n 1 9 6 8; 1 6 i n 1 9 6 9; 4 4 i n 1 9 7 0; 5 s p eci m e ns i n 1 9 7 1; 1 s pe ci m e n i n 

1 9 7 2; n o ne i n 3 0 c ollecti o ns i n 1 9 7 3; n o ne i n 3 0 c olle cti o n s i n 1 9 7 4; 

a n d n o ne s o far i n 1 9 7 5.

O ur searc h has bee n e xt e n d e d t o 6 0 miles of ri ve r, all of w hic h is 

i m p o u n de d a n d pa rt of t he water wa y s yste m. E v e n t h o u g h we ha v e 

e xt e n d e d o u r searc hes t o d o u ble t he dista n ce al o n g t he ri v er, n o
9 6

frec kle- bellie d Ma d T o m s or yell o w- b ellies ha v e bee n f o u n d. It is 

o b vi o us t h at t he y ha v e bee n re m o ve d fr o m t h at e ntire secti o n of t he 

ri ve r. Let us c o nsi der t he r ole of t hes e s mall f ora ge fis hes. T h e di v ersit y of f ora g e is dir ectl y rel ate d t o t he di visi o n of a n a b u n da n ce of 

pre dat or s. I p ut i n t his cat e g o r y t he f o o d a n d ga m e fis hes. A hi g h 

di v ersit y of f ora ge s pecies w o ul d s pa w n at diff ere nt ti me s of t he . year 

a n d i ns u re a n a d e q uate f o o d s u p pl y f or t he pre dat ors. A gai n, f o o d 

a n d ga m e s pecies I ’ m tal ki n g a b o ut. T he eli mi nati o n of o ne f ora g e 

s pecies ma y cre ate a criti cal v oi d i n t he diet of a pr e d at or s pecies.

A n ot h er f u n d a m e ntal fa ct a b o ut t he rel ati o n s hi p bet we e n f ora ge 

a n d pr e d at or s pecies is t h at f ora g e s pecies are i n gr eater n u m bers. 

F o r e xa m ple, we ha v e a l o n g -ra n ge st u d y o n t he l o wer Re d Ri v er. 

I n a 7- y ear peri o d, we c olle cte d o ver 1 3 5, 0 0 0 s peci me ns of fis hes i n 

1 0 3 sa m ple s fr o m a si n gle site. O ver t he yea rs we ha ve ta k e n 9 4 

diff ere nt s pecies fr o m t hi s site. C o n si deri n g t he n u m ber of i n di vi d uals, 

9 8 perce nt of t hes e 1 3 5, 0 0 0- pl us s peci m e ns were f ora g e fis hes a n d 2 

perce nt were pre dat or s — of t he f o o d a n d ga me s peci me n s. N o w, t he 

2- p erc e nt fi g ure is act uall y a hi g h o ne beca use it i ncl u de s t he y o u n g 

i n di vi d u al as well as t he a d ult pre dat or.

C o n si de ri n g t he 9 4 s pecies, 5 7 w o ul d fall i nt o t he f ora g e cat e g o r y 

a n d 3 5 i nt o t he pr e d at o r cat e g or y. T h u s, a b o ut t w o-t hir ds are of 

f ora g e a n d o n e-t hir d pr e d at o r s pecies.

I n c o ncl usi o n, I w o ul d str o n gl y ur ge a c o m plet e m o rat ori u m of all 

i nl a n d water wa y pr ojects. Sec o n d, I w o ul d s u g gest user s t o be ta xe d 

f or t h e o pe rati o n a n d mai nt e n a n ce of t he pr ese nt s yste m. T hir d, I 

w o ul d s u g g est t he f o u n d ati o n of a p ha si n g - o ut pr o gra m f or t he i nla n d 

water wa y s yst e m, a re st o rati o n pla n t o ret u r n t he ri v ers t o a freefl o wi n g stat us.

Mr. C h air m a n, I h o p e t h at t he i n di vi d ual s w h o are res p o nsi ble 

f or ma ki n g critical decisi o ns will ha v e t he c o ur a ge a n d str e n gt h t o 

p urs u e t h at c o urse of acti o n w hic h will i ns ure t he s ur vi v al of o ur 

f ut ure ge n erati o ns.

T ha n k y o u.

Se nat or G r a v e l . Miss A n de rs o n ?

S T A T E M E N T O F P O L L Y C. A N D E R S O N, E X E C U T I V E DI R E C T O R, 

MI S SI S S I P PI WI L D L I F E F E D E R A TI O N

Mis s A n d e r s o n . I ’ m Miss P oll y C. A n d ers o n, E x ec uti v e Direct or 

of t h e Missi ssi p pi Wil dlife Fe d erati o n.

T h e Missis si p pi Wil dlife Fe derati o n re p res e nt s m ore t h a n 1 0, 0 0 0 

Mis sissi p pia ns. We are a n affiliate of t he Nati o nal Wil dlife F e d erati o n, 

wit h m ore t ha n 3 % milli o n m e m b ers nati o n wi d e. Ne arl y half t he p o p ulati o n of Missi ssi p pi h ol d s a fis hi n g lice nse, a n d t he re are f o u r ti me s 

as m a n y bi g ga me h u nt ers as g olfers. Mississi p pi, n ot al wa ys at t he 

t o p of t he li st of t he 5 0 Stat es, is i n fact n u m ber t hre e i n ric h n ess of its 

fis h fa u na. Wit h 2 0 0 s pecies of fis h k n o w n t o date o nl y 2 ot he r St at es 

e xcee d us. Yet, e x pe rts r e p ort t h at m ore t h a n 5 0 — m ore t ha n o ne-f o urt h 

of o ur s pecies —are t o d a y dir ectl y e n d a n g ere d b y m a n ’s acti viti es. 

C o nse r vati o n of o ur nat ural fis h a n d wil dlife ha bitat has nec essaril y 

bec o m e m y pri ma r y c o nc er n.

Alt h o u g h I ha v e a pre pare d state m e nt o n ge neral c or ps pr ojects 

w hic h I will s u b mit i nt o t he rec or d of t his he ari n g, I ha v e j ust r et u r n e d 

fr o m Wa s hi n gt o n w here m uc h c o ntr o v ers y is n o w ta ki n g place o n t he
9 7

Marc h 2 7, 1 97 5, c o urt or der w hic h re q uires t he U. S. Ar m y C or ps of 

E n gi neers t o greatl y e x pa n d its j uris dicti o n o ver t he Nati o n’s waterwa ys. T his e x pa n de d j uris dicti o n w o ul d c ur b c oastal a n d i nla n d 

watersi de de vel o p me nt b y f orci n g t he c or ps t o re g ulate dre d ge a n d 

fill de vel o p me nt i n n o n na vi ga ble waters.

After J u d ge R o bi ns o n or dere d t his e x pa n de d j uris dicti o n, t he 

c or ps iss ue d a scare tactic ne ws release o n Ma y 6, 1 97 5, w hic h was 

carrie d b y ma n y maj or ne ws pa pers, s uc h as t he Ne w Y or k Ti mes, 

a n d w hic h ma kes me feel c o m pelle d t o da y t o a d dress m y re mar ks o n 

t his ver y pe rti ne nt iss ue.

T he release rea d at t he o utset:

U n d er s o me of t he pr o p ose d re g ulati o ns, Fe deral per mits ma y be re q uire d b y 

t he ra nc her w h o wa nts t o e nlar ge his st oc k p o n d, or t he far m er w h o wa nts t o 

dee pe n a n irri gati o n ditc h or pl o w a fiel d, or t h e m o u nt ai neer w h o w a nts t o pr ot ect 

his la n d a gai nst strea m er osi o n.

T hese state me nts are j ust u ntr ue. E ve n t he br oa dest alter nati ve i n 

t he c or ps re g ulati o ns, w hic h is N o. 1, states t hat:

T he c or ps a ut h orit y w o ul d be e xte n de d t o virt u all y e ver y c oastal a n d i nla n d 

artificial or nat ural b o d y of water i ncl u di n g tri b utaries t o na vi ga ble waters, all 

i nte rst ate w aters a n d i ntr ast ate la kes, ri vers or strea m s use d f or vari o u s p ur p oses.

T he re g ulati o n n o w here pr o p oses a n e xte nsi on of a ut h orit y t o 

c o ver st oc k p o n ds a n d pl o we d fields. T he release was a p par e ntl y a 

tactic t o scare far mers a n d ra nc hers i nt o s u p p ort of t he narr o west 

defi niti o n of t he c or ps res p o nsi bilit y p ossi ble, w hic h is, of c o urse, t he 

p ositi o n fa v ore d b y t he c or ps.

T he ne w re g ulati o ns will n ot ba n acti vit y o n wetla n ds or restrict 

t hat acti vit y of far mers a n d pri vate la n d o w ners. T he y will re q uire 

t hat c o nstr ucti o n i n wetla n ds a n d o n tri b utar y strea ms be carrie d 

o ut b y per mit a n d wit h e n vir o n me ntal re vie w.

W h y t he f uss? Beca use o ur Nati o n has alrea d y l ost 4 0 perce nt or 

4 5 milli on acres of its wetla n d res o urces. T hese wetla n ds pr o vi de 

bree di n g gr o u n ds a n d ha bitat f or ma n y s pecies of waterf o wl, fis h, 

ma m mals, as well as s u p p orti n g s hellfis h a n d ot her a q uatic life. T he y 

are t he m ost versatile areas i n t he c o u ntr y pr o d uci n g m ore p o u n ds 

per acre, m ore s pecies a n d m ore variet y t ha n a n y w here else. Calif or nia al o ne has l ost 2 5 6, 0 00 acres or t w o-t hir ds of its 3 8 2,0 0 0 acres 

of wetla n ds. We ca n n ot c o nti n ue t o waste res o urces w hic h ta ke as 

l o n g as 4, 0 0 0 years t o rest ore.

F or years t he c or ps has catere d t o lar ge la n d de vel o pers a n d water 

na vi gati o n pe o ple wit h s u bsi d y fr o m t he ta x pa yer. C o nse q ue ntl y, 

beca use t he c or ps has t ur ne d w hat was a mars h tee mi n g wit h fis h 

a n d wil dlife a n d val ue d at $ 2 per acre b y t he de vel o per i nt o $ 2, 0 0 0 per 

acre dre d ge d, drai ne d a n d fille d la n d w hic h be nefited t he la n d devel o per, t he y ha ve bee n s u p p orte d b y t he lar ge la n d de vel o pers.

T he iss ue n o w? I n t he past t he Ar m y C or ps of E n gi neers has 

restricte d a n y atte m pts t o e xte n d its j uris dicti o n t o pr otect wetla n ds 

a n d n o n na vi ga ble waters as a ut h orize d b y t he Fe deral Water P oll uti o n A me n d me nts of 1 9 72. I nstea d, t he y c o nti n ue t o m ai ntai n li mite d 

j uris dicti o n as set f ort h b y t he 1 89 9 Ri vers a n d Har b ors Act al o n g a 

c oastli ne t hat st o ps at t he “ mea n hi g h ti de” p oi nt. We d o n’t wa nt, 

a n d ha ve ne ver as ke d f or, a n e xte nsi o n of j uris dicti o n i nt o far m 

p o n ds or rice fiel ds a n y m ore t ha n y o u, b ut d o n’t t hr o w o ut t he ba b y 

wit h t he bat h water. We as k t hat y o u ha ve t he e x perts c o me u p wit h
9 8

a defi niti o n base d o n bi ol o gi cal pr o d u cti vit y. We wa nt t o sa ve t he 

pr o d u cti v e wetla n ds, n ot re q uir e —a s y o ur pres s releas e re p orte d — 

t o ha v e “ h o use wi ves a n d g olf c o urse gree n ke e pers get Fe d eral pe rmissi o n t o fill a ba c k yar d s wi m mi n g p o ol or c o n str uct a ne w s a n d t ra p.”

I w o ul d ur ge t he Ar m y C oras of E n gi neers t o a d o pt alt er n ati ve 1, 

w hic h is s u p p orte d b y t he E n vir o n me ntal Pr otecti o n A ge nc y, t he 

Nati o nal Wil dlif e Fe derati o n, t he J ustic e De pa rt m e nt, t he Nat u ral 

Res o urce Defe n se C o u ncil, a n d w hic h w o ul d pr otect wetla n ds a n d 

n o n na vi ga ble waters.

T h a n k y o u, Mr. C h air ma n.

Se n at o r G r a v e l . I a p p reciate y o u r c o mi n g f or w ar d wit h y o ur 

state m e nts. It certai nl y a d ds t o t he dial o g of differe n ces t h at e xist o n 

t he iss ues t h at we m ust ta k e u p. I w o ul d h o pe t h at y o u mi g ht i n y o ur 

or g a ni zati o n s visit t he Water w a ys E x peri me ntal Stati o n a n d ma y b e 

set u p s o me pa nels bet w ee n y o u r or g a niz ati o ns. I ’ m s ure t he c or ps 

at t he e x p eri m e nt stati o n deals wit h t hese pr o ble ms fr o m a n aca de mic 

p oi nt of vie w, w hic h I t hi n k is t he g oal, t h at y o u ha v e t o asc ertai n 

pr o bl e ms bef ore a pr oject is u n derta k e n.

S o, I w o ul d c o u nsel y o u i n o ne dire cti o n. T h at w o ul d be t o set u p 

y o ur or g a ni zati o n s o t h at y o u c o ul d i nte rfa ce wit h t he c or p s i n g oi n g 

o v er pr o ble ms s o t h at we w o ul d n ’t be face d wit h s uc h gr eat fr ustr ati o ns w here, as a res ult of y o u r fr u str ati o n s, y o u’ ve c o me f or w ar d, 

a n d I mi g ht sa y, m o st res p ectf ull y, har a n g ue d t he C or p s wit h st at em e nts of c o ntr o versie s, of h y p ocri s y a n d t hi n g s li ke------

Dr. L a z e l l . Q ue sti o n s, q ue sti o ns — I as k e d------

Se nat or G r a v e l . Well, r het oric al q uesti o n s. I deal wit h r het oric — 

as a p oliticia n, I k n o w t he p ur p o se of r het oric. B ut I t hi n k y o ur 

attit u de is ver y i m p o rta nt —as t he sa yi n g g oes — a n d I u n de rst a n d 

y o ur fr u str ati o n s of deali n g wit h a n eff ort t h at see ms t o be s o pr ol o n ge d. I k n o w t h at y o ur or ga nizati o n is n ot pr o perl y f u n de d, a n d I 

h o pe s o me da y we’ll m at u re e n o u g h t o ha v e d ual f u n di n g f or o ur 

a d v ers arie s i n a pr o per fas hi o n, b ut we ha ve s ee n c ha n g es i n t he c or ps. 

I n fact, we’ve see n c ha n ges i n t he Nati o n, m at urit y, w hic h is ca u se d 

b y t he i nte rests of or ga nizati o ns s uc h as y o urs t hr o u g h o ut t he Nati o n. 

It ’s ver y g o o d f or o ur w h ole s oci et y a n d o ur w h ole ec os y ste m, y o ur 

i n v ol v e m e nt i n o ur pr o ble ms, b ut I mi g ht s u b mit t h at we’re all i n t he 

sa m e b o at. W hat we nee d is gre ate r c o m m u nic ati o n a n d st u d y a n d 

k n o wle d ge, a n d c o m m u nic ati o n is b ette r ac hie ve d wit h less e m oti o nal 

i nterfac e. Yet, I rec o g nize t he fr u str ati o n s t h at bri n g a b o ut t h at 

e m oti o n alis m.

Y o u ha ve a n o p p o rt u nit y t h at’s ri g ht here i n t he c o m m u nit y of 

y o ur or g a ni zati o n. It ’s t he e x p eri m e ntal stati o n of t he c or ps. I ha d 

occasi o n t o visit t h at ye ster da y. I’ m ver y i m press e d wit h t he a cti vitie s 

t he y ha v e u n d er w a y i n e n vir o n me ntal rese arc h a n d t he f u n di n g t h at 

t he y are g oi n g t o recei v e. N o q ue sti o n it ’s see n ver y s mall f u n di n g i n 

t he past, b ut we all tr y t o lear n fr o m t he past, s o I h o pe t h at y o u ca n 

ma ke y o ur c o ntri b uti o n s t hr o u g h m ore dir ect c o nta ct wit h t he c or p s.

Y o u’ ve h a d a n o p p o rt u nit y. We ca n gai n fr o m y o u r testi m o n y here, 

b u t we ca n har dl y s ol ve t he pr o ble m s at o ur le vel i n Wa s hi n gt o n, 

b y m a ki n g a l ot of c har g es of t he c or ps, s uc h as acc u si n g t he c or p s of 

ma ki n g T ulsa a sea p ort. L et ’s f ace it, a p oliti cia n fr o m m y are a — a n d 

he wa s n’t a me m b er of t he c or ps, at lea st n ot t he last ti me I sa w 

hi m, he wa s n’t — he was a p oliticia n, a n d he ha d his v ot es fr o m t he 

pe o ple. T h e C o n gres s is a mirr or of t he pe o pl e. We ha v e bec o me m or e
9 9

se n siti v e t o t he e n vir o n me nt beca use we are mirr ors w hic h refle ct 

t he di me nsi o n s of c o nc er n of t he pe o ple.

I mi g ht sa y t h at y o u ha v e a r ole t o pla y a n d a ser vic e t o re n der, 

a n d t he best wa y t o d o t h at is t hr o u g h dir ect i nte rfa ce.

We ha d a hea ri n g y ester da y — or a c o n fr o ntati o n, s o t o s pe a k — wit h 

res pect t o l oc ks a n d da m 2 6, a m atte r of c o nc er n t o y o u. I t h o u g ht 

it was ver y hel pf ul t o us; we ma y ha v e see n t he ger mi nati o n of a 

c o m pr o mise i n t his re g ar d. C o m pr o mises ca n’t al w a ys be perfect, 

b u t certai nl y t h e y ’re acc o m m o dati n g i n a de m ocr atic s oci et y.

S o, a gai n I a p p reciate y o ur c o mi n g f or w ar d. I h o p e y o u will a vail 

y o u rsel ves of t his o p p o rt u nit y t o ha v e a n i m pa ct o n t he c or p s a n d I 

h o pe t h at i n t he f ut ur e y o u will ha v e a pa rti ci pat or y r ole i n w or ki n g 

wit h t he m. T h e y are pers o ns of g o o d will a n d, li ke y o u, are j ust 

tr yi n g t o d o a j o b wit hi n t he c o m pl e x of or d ers t h e y ’re gi ve n b y t he 

p olic y m a ker s. Y o u ca n hel p alt er t he p olic y of t h e Nati o n, a n d I 

t hi n k y o u ca n diff use y o ur fr u str ati o ns b y getti n g ri g ht i n t he re a n d 

fi g hti n g wit h t he m or q u arr eli n g wit h t he m a n d c halle n gi n g t he m. 

I ’ m s ure t h e y will gi ve y o u t h at o p p o rt u nit y. If n ot, dr o p me a li ne. 

T h a n k y o u.

O ur ne xt gr o u p of wit ness es will be a Ri ver Valle y ass o ciati o n s 

pa n el, w hic h will i ncl u de Mr. “ C hic ke n ” H olle m a n, c h air ma n of 

t he b oa r d, O u ac hita Ri v er Valle y Ass ociati o n, Mr. Cal vi n T. W att s, 

e xe c uti ve dir ect or, Re d Ri ver Vall e y Ass o ciati o n, Mr. B. F. S mit h, 

e xe c uti ve vice presi de nt, D elta C o u ncil, St o n e vill e, Miss., a n d Mr. 

Ne w ma n B olls, e n gi n eer, Mississi p pi B oar d of Le ve e C o m missi o ners. 

W h e n y o u’re seate d t her e ge ntle m e n, w o ul d y o u all li ke t o st art here 

a n d i ntr o d uc e y o urs el ves ?

Mr. W a t t s . I ’ m Cal vi n T. W att s.

Mr. H o l l e m a n . I ’ m W. R. “ C hic ke n” H oll e ma n.

Mr. S mi t h . I ’ m B. F. S mit h.

Se nat or G r a v e l . Will Mr. B olls be here t o d a y?

Mr. W a t t s . I ha ve n’t see n hi m.

Se nat or G r a v e l . I w o n der if I mi g ht as k if y o u c o ul d s u b mit y o u r 

testi m o n y, a n d it w o ul d be acc e pt e d f or t he rec or d, a n d j u st s u mmariz e y o ur re m ar k s here t o d a y. I n s o d oi n g, y o u w o ul d acc o m m o dat e 

us i n t he i nter est of ti me. I belie ve y o u ha v e writt e n state m e nts?

Y o u, sir, will pr ocee d first?

S T A T E M E N T O F W. R. H O L L E M A N, P R E SI D E N T, H O L L E M A N 

P U L P W O O D C O.

Mr. H o l l e m a n . Mr. C h air ma n, m y na m e is W. R. “ C hic ke n ” 

H oll e ma n of Ca m de n, Ar k. I ’ m pr esi de nt of H olle m a n P ul p w o o d C o. 

a n d c h air ma n of t he b oa r d of dir ect ors of t he O u ac hit a Ri ver Valle y 

Ass ociati o n.

Mr. H. K. T h atc her, w h o was t o ma ke t his pre se ntati o n, de v el o p e d 

a s u d de n ill ness a n d is i n t he h o s pital a n d ca n n ot be pre se nt. He has 

pre par e d a state m e nt w hic h I wis h t o file f or t he rec or d at t his ti me.

[ T he state m e nt a p p ear s at p. 1 0 0.]

I ncl u d e d i n t he state m e nt are letter s fr o m t he Se n at o rs a n d C o ngres s me n fr o m Ar k a ns as a n d L o uisia na w h o are c o nc er ne d f or t he 

O u ac hita Ri ver basi n.
1 0 0

T h e state m e nts i ncl u de a res ol uti o n fr o m t he Ar k a ns as Ge ne ral 

Asse m bl y o p p o si n g a n y ta x o n i nla n d water w a ys; als o, a res ol uti o n 

fr o m t he S o ut h Ar k a ns as De vel o p me nt C o u ncil, or ga nize d es peciall y 

f or t he p ur p ose of de vel o pi n g t he O u ac hita Ri v er i n Ar k a ns as.

T h ere are 2 5 letter s a n d state me nts. I ha v e liste d t he m f or t he 

rec or d, a n d i n c o ncl usi o n, Mr. C h air ma n, I w o ul d li ke t h e pri vile g e 

of i ntr o d uci n g t he f oll o wi n g pers o ns fr o m t he O u ac hita Ri ver Valle y 

Ass o ciati o n w h o are here t o d a y s u p p orti n g o ur p ositi o n.

O n m y left we ha v e o ne of o ur St ate se nat ors, J o h n Ve ar d e n, fr o m 

Lea k es ville. We ha v e Mr. Va sc o Ca rte r, p u blic affairs c o ns ulta nt fr o m 

t he Ge or gia Pacific C or p, a n d pre si d e nt of t he O u ac hita Ri ver Valle y 

Ass ociati o n; Mr. E d C o x, p u blic relati o n s, Li o n Oil C o., El D or a d o, 

Ar k., a n d pa st pre si d e nt of t he O u ac hita Ri ve r Valle y Ass ociati o n.

We als o ha v e wit h us t o d a y Mr. Dic k Ha r pe r, c o m missi o n er, 

str eets a n d p u blic w or ks, M o n r oe, La., a n d b oar d of dir ect ors of t he 

O u ac hit a Ri ver V alle y Ass ociati o n.

We als o ha v e Mr. J o h n n y J o n es, vice pre si d e nt of t he Fi rst 

Nati o nal Ba n k of C a m de n a n d pre si d e nt of t he b oa r d of t he Ca m de n 

Pr o peller Cl u b.

We als o ha v e Mr. Ge or ge C h a ne y, c hair ma n of t he b oa r d, p u blic 

w or k s, St at e of L o uisia n a, a n d vice pre si d e nt of t he O u ac hit a Ri v er 

Vall e y Ass o ciati o n.

We als o ha ve pre se nt wit h us t o d a y Mr. Gle n Ha m m, of t he 

O u ac hit a Ri ver Valle y Ass ociati o n fr o m M o nr oe, La.; Mr. H o war d 

Griffi n, fr o m O u ac hita Ri ver Vall e y Ass o ciati o n a n d als o fr o m 

M o nr o e, La.; a n d we ha v e Mr. Er ne st Br uce, fr o m M o nr o e, La., 

re p res e nti n g M o ore Ter mi nal & Bar ge C o., a n d als o of t he O u ac hit a 

Ri ver V alle y Ass ociati o n.

I ’ d li ke t o t h a n k y o u a gai n, a n d Mr. T h atc he r, H. K. T h atc her, 

se n ds his re g ret s t h at he c o ul d n ’t be here t o gi ve his state m e nt, s o 

I ’ d li ke t o file t hese state m e nts at t hi s ti me f or t he rec o r d.

T ha n k y o u ver y m uc h.

Se nat or G r a v e l . T h a n k y o u, sir.

[ Mr. T hatc he r’s state m e nt wit h att ac h m e nts f oll o ws:]

t a t e m e n t o f H. K. h a t c h e r , E x e c u t i v e Vi c e P r e s i d e n t , Ou a c h i t a R i v e r

a l l e y As s o ci a ti o n

Mr. C hair m a n, m y na me is H. K. T hat c her, E xec uti ve Vice P resi d e nt of t he 

O uac hita Ri v er Valle y Ass ociati o n wit h hea d q uart ers i n Ca m de n, Ar ka nsas. T he 

O. R. V. A. is a n o n pr ofit, be ne v ole nt ass ociati o n, c o m p ose d of b usi ness a n d pr ofessi o nal pe o ple, ma n u fact urers, pr ocess ors a n d ot her i nter este d i n di vi d uals w h o 

eit he r li ve i n or ha ve i ntere sts i n t he O uac hita Ri ver Basi n i n Ar ka nsas a n d 

L o uisia na.

We are please d t h at y o u w o ul d sc he d ule a near b y p u blic heari n g of t h e Se nat e 

S u bc o m mittee o n Water Res o ur ces s o re prese ntati v es of Water Res o urce s De vel o pme nt Ass ociati o ns s uc h as o urs c o ul d partici p ate.

We w h o li ve i n t his i nla n d valle y of t he O uac hita Ri ve r a n d w h o ha ve ear ne d 

t he ri g ht t o call it h o me, are f ull y a ware of t h e p olitical, ec o n o mic, p h ysical a n d 

i de ol o gical pr o ble ms c o nfr o nti n g t his nati o n t o da y. We k n o w t h at s ol uti o ns ca n 

o nl y c o me a b o ut t hr o u g h wise lea ders hi p e x hi bite d l ocall y, re gi o n wi de a n d 

nati o nall y, t he me m bers of t h e C o n gress a n d t he A d mi nistrati o n i ncl u de d.

T he me m bers of t his Ass ociati o n are c o m mitte d t o st a n d a n d vi g oro usly defe n d

t heir w ater a n d la n d herita ges a n d t heir s ocial a n d ec o n o mic str uct ure s wit h all t he 

wea p o ns at t heir c o m ma n d.
1 0 1

T here are a p pr o xi matel y 2 5, 0 0 0 s q uare miles of te rrit or y i n t he O ua c hit a Ri ve r 

drai na g e area. T he Basi n is a m pl y watere d, recei vi n g o n t he a vera ge of 5 1 i nc hes 

of rai nfall eac h year. It lies i n a ver y fast gr o wi n g pi ne a n d har d w o o d area. It’s 

a gric ult ural pr o d ucti v e rat e is a b o ve t he nati o nal a vera ges. Its c o m mercial 

mi nerals c o nsist of barit e, ba u xite, br o mi ne, c hal k, cla ys, ci n n a bar, ir o n ore, 

g y ps u m, li g nite, marl, n o vac ulite, nat ural gas, petr ole u m, salt, s ul p h ur, tri p oli, 

tita ni u m a n d va na di u m. I n a d diti o n t here are great q ua ntitie s of st o n e, sa n d a n d 

gra vel. T he vall e y’s cli mate is ge nerall y plea sa nt t o t he a p pr o xi mat el y 1, 0 0 0, 0 0 0 

i n ha bita nts.

T he O. R. V. A. was f o u n de d i n 1 89 3 f or t he e x presse d p ur p os e of sec uri n g a 

year-r o u n d slac k- water na vi g ati o n pr oje ct o n t he O uac hita Ri ver t o Ca m de n, 

Ar ka nsas, a n d u p strea m as far as na vi g ati o n c o ul d be ec o n o micall y j ustifie d. 

Si nce t he f o u n di n g of t he Ass ociati o n, its me m bers ha ve br oa d e ne d t heir vie ws 

a n d e xte n de d t heir o bli gati o ns t o pr o m ote ot h er nee de d water a n d relate d la n d 

res o urces.

T he me m bers of t he O. R. V. A. c o nsi der na vi g ati o n o n t he O ua c hita Ri v er a n d 

its tri b utaries t o be f u n d a me nt al a n d t he b asic f act or i n t he de vel o p me nt of t he 

valle y. Na vi gati o n br o u g ht t he first settle rs i nt o t he Basi n. T he s hall o w dra ft 

pac ket b oat s were i nstr u m e ntal i n la yi n g a s oli d ec o n o mic f o u n dati o n i n t he 

re gi o n. T he lar ger steel bar ges a n d t hei r t o w b oats c o nti n ue d t he ec o n o mic a n d 

s ocial de vel o p me nts a n d t he m o der n 9-f o ot c ha n n el de pt h wit h its m ore efficie nt 

mari ne e q ui p me nt a n d facilities will all o w c o m mercial c o m petiti ve ne ss t o c o nti n ue. 

T hr o u g h t he use of t he L A S H, Sea bee a n d Mi ni s hi p s yste ms, i nla n d p ort s are 

be gi n ni n g t o e nj o y s o me of t h e be nefits of f orei g n tra d e.

Beca use of t he m ore fa v ora ble per t o n- mile c ost, c o m mercial na vi gati o n o n 

t he O uac hita Ri v er is t he lifeli ne a n d b ackb o ne of t his re gi o n a n d will re m ai n t he 

basic m o de cf tra n s p o rtati o n f or b ul k pr o d ucts t h at are s o esse ntial t o de vel o pme nt of i n d ustr y t h at is necessar y t o s ustai n o ur ec o n o m y.

I n t h at c o n necti o n t he O uac hita Ri v er a n d its tri b utaries has ma n y t y pe s of 

c o m m o dities a vaila ble i n c o m mercial q ua ntities s uita ble f or bar ge s hi p pi n g.

T he U. S. Ar m y C or ps of E n gi neers i n t heir p u blicati o n, “ Water b or ne C o m merce 

of t he U nite d States” lists t he f oll o wi n g i n- b o u n d a n d o ut- b o u n d c o m m o dities 

tra n s p orte d o n t he O uac hita Ri ver i n Ar ka ns as a n d L o uisia na fr o m 1 9 5 3 t o a n d 

i ncl u di n g 1 9 73:

A n h y dr o us A m m o nia 

Alc o h ol

A q ua A m m o nia

As p halt

Be nze ne

C he micals, basic

Cre os ote

C or n

Cr u de Oil 

Cr us he d St o ne 

C ycle Oil 

Cr u de Tar 

Cr u de Petr ole u m 

Diesel Oil 

Distillate F uels 

Fertilizers 

Fis h, fres h 

F uel Oil 

Gas oli ne 

Gl yc ol

Grai n S or g h u m 

G u m & W o o d c he micals 

Hea v y Is o m grat e 

Jet F uel

Li q ui d S ul p h ur

L o gs

L u be Oil

Mac hi ner y

Ma n ga nese Ore

Metal Fa bricati o ns

Met h a n ol

Petr ole u m C oal

Petr ole u m C utti n g St oc k

Petr ole u m F uels

Plasti c Materials

Pl y w o o d- Ve neer

Pili n g, C o ncret e

Pili n g, W o o d

Resi n Oil

R oc k- Ri pra p

Salt Ca ke

Sa n d & Gra vel

Scra p Ir o n

S hi ps & B oats

S ol uti o n # 3 2

S o y bea ns

Steel Casti n g s

Steel Pi pe

Steel S ha pes & Plates 

S ulf uric Aci d 

T ol ue ne

Wate r I M P, Materials 

W heat
1 0 2

I n a d dit i o n t o t he a b o ve re p orte d s hi p pe d o n t he O uac hita Ri ver, a c urr e nt

list i n t he office of t he O uac hita Ri ve r Valle y Ass ociati o n s h o ws t he f oll o wi n g 

pr os pecti ve c o m m o dities i n q uiri n g a b o ut bar ge rates, p ort facilities a n d ot h er 

s hi p pi n g c o n diti o ns:

Al u mi n u m E xtr usi o ns Li g ht B uil di n g Bl oc ks

Al u mi n u m Pi gs & All o y L u m ber, D u m ma ge

A p plia nces, H o use h ol d L u m ber, Pac ka ge d

A ut o m o biles Metal S heeti n g

Beer, Ca n ne d M olasses f or fee d

B ottle d G o o ds Oil, Greases, Pac ka ge d

Bric ks & Cera mics Plaster B oar d

Br o mi ne P ul pi n g W o o d

Ca n ne d G o o ds P ul p Wet Dr y

Ce me nt B ul k R o ofi n g Gra n ules

Cla ys R o ofi n g, R olls, Flat

C offi ns R u b b er, Cr u de

E x pl osi ves Salt, B ul k

Far m E q ui p m e nt St o ne, B uil di n g

Fee ds, Mi xe d S u gar

Felt R o ofi n g R olls Tri p oli

Fis h Meal Wire Ca bles

Har d ware, Wire, Nails W o o d C hi ps

Ir o n Ore W o o d Pr o d ucts

Li g nite

T he prece di n g lists of c o m m o dities s hi p pe d o n t he O uac hita Ri v er a n d t he

 pr os pecti ve c o m m o dities i n q uiri n g a b o ut s hi p pi n g c o n diti o ns, s h o ws t he p ote ntial s 

or w ater tra ns p ortati o n of t he O uac hita Ri ve r a n d its tri b utarie s. T he c o m m o dities n o w s hi p pe d are al m ost e q uall y di vi de d bet wee n li q ui d a n d dr y car g oes, b ut 

t he t o n na ge bala nce is a b o ut 7 5 perc e nt li q ui d a n d 2 5 perce nt dr y. T he pr os pecti v e 

ite ms f or ri ver s hi p m e nt are al m ost e ntirel y dr y car g oes. It is e x pecte d t h at ultimatel y t he t o n na ge bala nce will be a b o ut 6 0 perce nt li q ui d a n d 4 0 perc e nt dr y, 

I n 1 9 60 w he n t he fi nal a ut h o rizati o n was m a de b y t he C o n gress f or t he 9-f o ot 

Na vi g ati o n Pr oje ct o n t he O uac hita Ri ver, t he C or ps of E n gi neers esti m ate d it 

w o ul d re q uire 1, 2 0 0, 0 00 t o ns of s hi p pi n g a n n u all y t o a m ortize t he pr oje ct. I n 1 97 4 

wit h t he pr oje ct o nl y o ne- half c o m plete d, t he a n n ual t o n na g e o n t he O uac hita 

Ri ver will reac h 1, 0 0 0, 0 0 0 t o ns, t he O. R. V. A. esti mates t h at 1 0 years afte r t he 

c o m pleti o n of t he pr oject, t he a n n ual t o n na ge tra n s p orte d will reac h 3, 0 0 0, 0 00 

t o ns.

T he O uac hita Ri v er Valle y Ass ociati o n e x pa n ds its Water Res o urces pr o gra m 

wit h t he k n o wle d ge:

* T H A T, t he pe o ple of t he Valle y a n d t heir nei g h b ors are p atri otic, wit h pr o ve n 

l o yalt y t o t heir states a n d t he nati o n a n d are e x p o ne nts of t he c o vete d Free 

E nter pris e S yste m.

♦ T H A T, m o der n na vi g ati o n o n i nla n d water w a ys w hic h re q uir e c o ntr olle d 

water reser v oirs, na vi g ati o n p o ols, l oc k a n d da ms will i ncrease mi ni m u m fl o ws. 

T his a d diti o nal wate r creates de ma n ds f or ot her wat er uses t h us gi vi n g a d de d v alues

res ulti n g fr o m n avi g ati on pr ojects.

♦ T H A T, na vi gati o n als o ser ves t o h ol d d o w n traffic r ates of o verla n d m o des of 

tra n s p o rtati o n. T hese sa vi n gs are passe d o n t o s hi p pers a n d ot he r c o m mercial 

a n d i n d u strial o perati o ns, a n d m ore i m p ort a ntly, t o t he c o ns u mers.

* T H A T, it is u n wise a n d u n acce pt able t o place a c o nfisc atory t oll, user c h ar ge,

l ock fee, f uel t ax, or w hat- ha ve- y o u, a gai n st w ater s hi p pi n g i ntere sts at a ti me w he n 

s uc h a ta x will cri p ple, if n ot eli mi n ate t h e bar gi n g i n d ustr y, a n d drasticall y c urtail 

e xisti n g i n d ustries de pe n di n g w h oll y, or i n part, o n t he i nla n d water w a ys.

♦ T H A T, t he relati vel y s mall f e deral w ater user ta x t h at c o ul d be c ollecte d w o ul d 

be of s mall val ue i n c ur bi n g t he fe deral deficit, b ut o n t he c o ntrar y, w o ul d res ult 

i n irre par a ble da m a gi n g s pi n- offs t o t he ec o n o m y as a w h ole, wit heri ng t he t ax b ase,

a n d t h us defeati n g t he p ur p ose of t he pr o p ose d ta x.

♦ T H A T, t he pr o p ose d retr o gressi ve water- use ta x will precl u de t he ne wer a n d 

s maller ri ver tra n s p o rtati o n s yste ms, s uc h as t he O uac hita, Re d, W hite, a n d t he 

Ar ka nsas Ri vers, fr o m t heir prese nt mar keti n g li mits. U n der t heir pres e nt ec on o mic stat u s, t hese i nla n d water wa ys are n ot i n a p ositi o n t o be ta xe d t o pa y f or 

eit h er t he i nitial c o nstr ucti o n c ost of t heir na vi g ati o n pr oject n or t o ass u me t he 

prese ntl y calc ulate d o perati n g a n d mai nte na nce c har ges. T heir c ha n nel de pt h s 

a n d b ott o m wi dt hs are n ot sta bilize d a n d t heir ter mi n al facilities a n d bar gi n g 

o perati o ns ha ve n ot yet reac he d pr os pe cti ve ec o n o mic le vels.
1 0 3

Mr. C h ai r m a n a n d G e ntl e m e n of t h e C o m mitt e e, w e r e aliz e t h at t h e i niti al 

f e d er al c ost of a m o d er n n a vi g ati o n pr oj e ct, o n a n y ri v er, is al w a ys hi g h b e c a us e 

c h a n n el dr e d gi n g, c o ns tr u cti o n of c o ntr oll e d w at e r r es er v oirs, b uil di n g l o c ks a n d 

d a ms, n a vi g ati o n p o ols, et c., ar e e x p e n si v e m aj or o p er ati o ns. B ut, l e t’s n ot 

f or g et t h a t t h es e f e d er al e x p e n dit u r es r e pr es e nt o nl y a b o ut 1 0 p er c e nt of t h e c osts 

of a w or ki n g n a vi g ati o n s yst e m, t h e b al a n c e of t h e c osts ar e s u p pli e d b y l o c al 

i nt er ests.

T o m a k e a n a vi g ati o n s yst e m w or k, pri v at e i nt er e sts m us t s u p pl y all n e e d e d 

ri g h t- of- w a ys, t o w b o ats, b ar g es, d o c ks, w ar e h o us es, t a n k f ar ms, gr ai n el e v at or s, 

o p er ati n g p ers o n n el, a c c ess r o a ds, e xt e nsi v e r ail a n d tr u c k c o n n e cti o ns a n d all 

n e e d e d utiliti es.

T h e l o c al i nt er ests m ust als o pr o vi d e p oli c e a n d fir e pr ot e cti o n, g o o d h e alt h 

a n d s a ni t ar y c o n diti o ns, tr a d e a n d s o ci al s er vi c e, ci vi c a n d c ult u r al c e nt ers, s c h o ols, 

c h ur c h es a n d r e cr e a ti o n al f a ciliti es. T h e c o m m u niti es i n v ol v e d m us t als o pr o vi d e 

fi n a n ci al i nstit uti o n s, i n d u stri al p ar ks, l a w y e rs, d o ct ors, n e ws p a p ers, r a di o a n d 

T V s er vi c e, a n d m a n y ot h er s u c h s er vi c es.

T h es e ar e t h e s u p p orti n g p e o pl e a n d i nsti t uti o ns t h at utiliz e l o w- c ost w at er 

tr a n s p o rt ati o n t o attr a ct s uit a bl e i n d ust ri es, t h us h el pi n g g e n e r at e t h e i n c o m e 

w hi c h p a y s t h e f e d er al t a x e s s u p p orti n g all g o v e r n m e nt o p er ati o ns, i n cl u di n g 

c o nst r u cti o n a n d m ai nt e n a n c e c ost f or n a vi g ati o n. M a n y milli o ns of pri v at e 

d oll ars h a v e alr e a d y b e e n s p e nt i n l o c ati n g or e x p a n di n g i n d us tri es i n t h e O u a c hit a 

Ri v e r V all e y as a r es ult of f or m e r a n d pr es e nt n a vi g ati o n b e n efits, a n d o ur m o d er n 

n a vi g ati o n pr oj e ct is o nl y a b o ut o n e- h alf c o m pl et e d. T o us e a n ot h er e x a m pl e, 

t h e Ar k a ns as Ri v e r N a vi g ati o n Pr oj e ct h as r e c e ntl y b e e n c o m pl et e d at a n 

a p pr o xi m at e c ost of 1. 2 billi o n d oll ars. T o d at e i n e x c ess of 3 billi o n d oll ars h as 

b e e n s p e n t or c o m mitt e d i n t h e c o nstr u cti o n of pri v at e w at er ori e n t e d i n d us tri es 

i n t h e Ar k a ns as Ri v er B asi n.

Mr. C h air m a n, I e m p h asiz e t o y o u a g ai n t h at t h e e arl y n a vi g ati o n o n t h e 

O u a c hit a Ri v e r w as ess e nti al i n s et tli n g t his V all e y a n d t h at wit h o u t s u c h 

n a vi g ati o n t h e r e gi o n c o ul d n ot h a v e r e a c h e d its pr es e nt e c o n o mi c a n d s o ci al 

gr o wt h.

T h e O. R. V. A. st at e s e m p h ati c all y t h at m o d er n ri v er tr a n s p o rt ati o n is ess e nti al

o n t h e O u a c hit a Ri v er s yst e m a n d m us t b e pr o p erl y d e v el o p e d a n d m ai n t ai n e d 

i n or d er t o k e e p t h e V all e y fr o m b e c o mi n g is ol at e d a n d its e c o n o m y f r o m

d et eri o r ati n g.

T h e n a vi g ati o n s yst e m is y o u n g a n d m ust b e n u rt u r e d u ntil t h e p e o pl e c o n c er n e d 

c a n c o m pl et e its b uil di n g a n d cr e a t e a s atisf a ct o r y fl o w of tr affi c.

At t his s t a g e of o ur n a vi g ati o n gr o wt h, w e c a n n o t s t a n d a n y d e p r essi n g t a x ati o n.

E v e n t h e t h re at of c u rt ail m e nt fr o m a n y s o ur c e h urts o ur n a vi g a ti o n pr o gr a m 

a n d t h e V all e y’s e c o n o mi c pr o gr ess. If t h e A d mi nis tr ati o n i nsis ts u p o n a w at e rus er t a x t h at is u nj us t, w e h a v e n o ot h e r pl a c e t o t ur n e x c e pt t o m e m b ers of t h e 

C o n gr ess a n d w e l o o k t o y o u a n d y o u r c oll e a g u es f or pr o p er g ui d a n c e a n d 

l e a d ers hi p.

Mr. C h ai r m a n, as a s p o k e s m a n f or t h e O. R. V. A., I h a v e e m p h asiz e d t h e 

i m p o rt a n c e of m o d er n n a vi g ati o n o n t h e O u a c hit a Ri v er, b u t n a vi g ati o n is o nl y 

o n e f a c et of o ur w at e r r es o ur c es d e v el o p m e nt pr o gr a m. I n cl osi n g, l et m e r e p e at 

t h at o ur n a vi g ati o n pr oj e ct c arri es wit h it m a n y ot h er b e n efits t o t h e V all e y. 

T h es e i n cl u d e pr o gr a ms of w at er a n d r el at e d l a n d d e v el o p m e nts t h at pr o vi d e 

a d e q u at e fl o o d pr ot e cti o n; m a xi m u m v ol u m es of hi g h q u ali t y w a t er s u p pli es f or 

d o m esti c, m u ni ci p al, a gri c ult ur al a n d i n d us tri al us es; w at er ori e nt e d r e cr e ati o n al 

d e v el o p m e nts; p oll uti o n c o nt r ol a n d a b a t e m e nt pr a cti c es; fis h a n d wil dlif e 

pr o p a g ati o n; t h e c o nst r u cti o n of h y d r o el e ctri c f a ciliti e s; a n d s u c h ot h er w at er 

us es t h at will e n h a n c e t h e g e n er al w elf a r e of t h e p e o pl e. A n y distri b uti o n of t h e 

c ost of t h es e pr oj e cts m ust b e e q u all y all o c at e d t o e a c h of t h es e us es, n a vi g ati o n 

s h o ul d n ot b e si n gl e d t o c ar r y t h e e ntir e l o a d.

Wit h t h e C h air m a n’ s p er missi o n, I w o ul d li k e t o fil e s o m e st a t e m e nt s pr e p a r e d 

f or t his h e ari n g b y s o m e of t h e pr o mi n e n t m e m b ers of t h e O. R. V. A.

T h a n k y o u f or y o u r p ati e n c e a n d t h e c o u rt es y i n h e ari n g us.
1 0 4

j o h n . M l e l l a n

A R K A N S A S

A P P R O P RI A T I O N S

C H AI R M A N

J U DI CI A R Y

C H AI R M A N —S u B C O M MI T T n O M a t r m t r

r a d c m a r k s a n o C t ai h t

C H AI R M A N —S U B C O M MI TT Z K O M C RI MI N A L

a w s a n o Pr o c k o u r k r

G O V E R N M E N T

O P E R A TI O N S

Ql C ntlc b z S L xle s S e n a t e

W A S HI N G T O N. D. C. 2 0 51 0

R. W A L L A C E ( R U O O V) W MI T E A K C R

A D MI NI ST R A TI V E A M I S T A NT

m a Co o s 2 0 2, 2 2 3- 7 8 27

M A X R A R RI B H

r s a Co o c 2 0 2. 2 2 5- 78 3 0

A pril 2, 1 97 5

Mr. H. K. T hatc her

E xec uti ve Vice Presi de nt 

O uac hita Ri ver Valle y A ss ociati o n 

214 Va n B ure n, N ort h west 

Ca m de n, Ar ka nsas 7 17 01

Dear Mr. T hatc her:

T his is t o ac k n o wle d ge wit h t ha n ks rec ei pt of y o ur letter of Marc h 2 8 

re gar di n g t he pr o p ose d per t o n- mile a n d l oc ka ge fe e s.

M y office has bee n f oll o wi n g wit h i nt ere st t he pr o p ose d ta x a n d use r 

fee o n c o m mercial bar ge na vi gati o n. C urre ntl y s uc h a ta x Is n o m ore 

t ha n a pr o p o sal. Le gislati o n o n t his matter was p ut f or war d b y t h e 

Presi d e nt la st y ear, b ut wa s n't I ntr o d uce d i n t he C o n gre ss. S uffice 

it t o sa y t h at at pre se nt I will n ot s u p p ort a n y meas ure w hic h w o ul d 

ser ve t o sti fle t he b u d di n g na vi gati o n s yste m of Ar ka nsas w hic h I ha ve 

w or ke d t o b uil d a n d a ss ist.

I a p preciate y o ur e x pre ssi o n of s u p p ort re gar di n g t he R oc k Isla n d 

Railr oa d. H o pef ull y eac h of o ur nati o n's tra n s p ortati o n s yste ms ca n 

de vel o p freel y t o t he be nefit of a ll.

Wit h ki n d re g ar d s, I a m

Si nce rel y y o ur s,

J L M/ plt
1 0 5

S S F V L B. L O N G

5il Cni {cb C i a le s - S c n af e

W A S H I N G T O N . D . C . 2 0 S 1 0

A p r i l 1 5 , 1 9 7 5

M r . H . K . T h a t c h e r 

E x e c u t i v e V i c e P r e s i d e n t 

O u a c h i t a R i v e r V a l l e y A s s o c i a t i o n 

2 1 4 V a n B u r e n , N . W .

C a m d e n , A r k a n s a s 7 1 7 0 1 

D e a r H . K . :

T h a n k y o u f o r s e n d i n g m e a c o p y o f t h e s t a t e m e n t 

i n o p p o s i t i o n t o t h e p r o p o s e d n a v i g a t i o n t a x , w h i c h w i l l b e 

s u b m i t t e d t o t h e P u b l i c W o r k s S u b c o m m i t t e e o n W a t e r R e s o u r c e s .

A s y o u k n o w , I a g r e e w i t h y o u r s t a n d i n o p p o s i t i o n 

t o a n y s o r t o f n a v i g a t i o n t a x , w h i c h w o u l d s e v e r e l y a n d 

u n f a i r l y p e n a l i z e r i v e r t r a n s p o r t a t i o n v i t a l t o t h e e n t i r e 

L o w e r M i s s i s s i p p i V a l l e y . I c a n a s s u r e y o u t h a t I w i l l 

c o n t i n u e t o d o e v e r y t h i n g I c a n t o f i g h t s u c h a m e a s u r e , a n d 

i t i s m y s i n c e r e h o p e t h a t n o a c t i o n o f t h i s t y p e w i l l b e 

t a k e n .

I a p p r e c i a t e y o u r k e e p i n g m e a d v i s e d i n t h i s r e g a r d , 

a n d w i t h c o n t i n u e d g o o d w i s h e s , I a m

S i n c e r e f y y o u r s
J. B E N N E T T J O H N S T O N

L O UI SI A N A

1 0 6

C utl et) k i t tl e s S c u t tl e

W A S HI N G T O N, D. C. 2 0 91 0

A p ril 1 6, 1 9 7 5

Mr. H. K. T h atc h er 

E x e c uti v e Vic e P re si d e nt 

O u ac hit a Ri v er V all e y A ss o cia ti o n 

2 1 4 Va n B u re n, N. W.

Ca m de n, A r k a n sa s 7 1 7 0 1

De ar H. K .:

T ha n k y o u f o r y o ur l e tt e r a n d t h e e n cl o se d state m e nt t o be 

gi v e n a t t h e P u bli c W or ks S u bc o m mitte e h e a ri n g i n Vic ks b u r g, M is sis si p pi. 

I a p p r e cia te y o u r ma ki n g t h e sta te m e nt a v aila ble t o me.

I a s s u re y o u I w il l cl o s el y w at c h a n y de vel o p m e nts p e rta i n i n g 

t h e n a vi g ati o n ta x pr o p os e d b y t h e P r e si d e nt. Alt h o u g h I a m n ot a 

o f t h e P u bli c W or ks C o m m itte e, I w il l d o e v e r y t h i n gji o s si b l e t o be 

a s sis ta n c e.

Wit h k i n d e st r e g a r d s, I a m,

t o

me m ber

o f

J o h n st o n 

U nit e d S ta te s S e n at o r

J B J:ji b
1 0 7

N R Y M. J A C K B O N, W A S H., C H AI R M A N

F R A N K C H U R C H. I O A H O F A UL J. F A N NI N. A RI X.

L E E M E T C A L F. M O N T. C LI FF O R O F. H A N S E N. W Y O.

J. B E N N E T T J O H N S T O N, L A. M A R K O. H A T FI EL D, O R E O.

F L O Y D K. H A S K E L L. C OL O. D E W E Y F. B A R T L E T T. O K L A.

RI C H A R D ST O N E. F L A.

D AL E D U MF E R S. A R K.

O R E N VI LL E O A R SI OE. S F E CI AL C O U N S EL A N O ST A F F Ol RE CT O R

WI L LI A M J. V A N N E S S, C HI EF C O U N S E L

^ C n tt c b ^ S t a l e s ^ S c n al c

C O M MI T T E E O N

I N T E RI O R A N O I N S U L A R A F F AI R S

a s h i n g t o n , 2 0 5, 0

A p ril 4, 1 9 7 5

Mr. H. K. T h atc h er

E x e c uti v e Vic e P r e si d e n t

O u a c hit a Ri v er V all e y A s s o cia ti o n

2 1 4 Va n B ur e n, N. W.

Ca m d e n, A r k a n sa s 7 1 7 0 1

D ea r H. K .:

T h a n k y o u f o r s e n di n g me a c o p y o f t h e 

sta te m e nt t h a t y o u pla n t o d e li v e r b e f o r e t h e 

S u bc o m mitt ee o n W at er R e s o urc es o f t h e 

S e n ate C o m mitte e o n P u b li c W or k s.

I ha ve p r e v i o u sl y b e e n a w ar e o f p r o p o s als 

t o i m p o se s o me ki n d o f u s e r t a x o n w ate r- b o r n e 

c o m me rce. As G o v er n or, I be ca me w ell a c q u ai n te d 

w it h t h e b e n e fit s t h a t ri v e r n a v i g ati o n c o n f e r s 

u p o n t h e S t at e o f A r k a n sa s a n d t h e n a ti o n, a n d I 

w o ul d be r e l u c t a n t t o s u p p o rt a n y t a x o r ot h e r 

d e vic e t h a t w o ul d pla c e a n u n r e a s o n a ble b ur d e n 

u p o n s u c h c o m merce.

Y o ur sta te m e nt i s a r ti c u l a t e , w ell - a r g u e d, 

a n d p e r s u a si v e, a n d I a p p r e cia t e r e c ei v i n g i t fr o m 

y o u.

S i n c e r el y y o u rs .

D al e B u m pers

D B:als

5 4- 2 3 9 0 - 7 5 - 8
1 0 8

R A Y T H O R N T O N

t h Di s t ri c t. Ar k a n s a s

W A S HI N GT O N OF FI C Ki

1 10 9 L ON G W O R T H B L O O.

a s hi n g t o n . D C. 2 0 8I B

2 0 2- 2 2 5- 3 77 2

DI ST RI CT OF FI C Ki

2 8 20 F c d c r a l Bl o g

i n s Bl u f f . Ar k . 7 16 01

8 0 1- 8 3 5- 7 78 0

C o n gre s s of tfj e S nit c h St at e s 

S ? o use of fte pre ge nt atit J M t

I S aa bfn Bt o n, Z3. C. 2 0 5 1 5

A p r i l 7 , 1 9 7 5

C O M MI T T E E O N T H E

J U DI CI A R Y

C O M MI T T E E O N S CI E N C E

A N O A S T R O N A U TI C S

M r . H . K . T h a t c h e r 

E x e c u t i v e V i c e P r e s i d e n t 

O u a c h i t a R i v e r V a l l e y A s s o c i a t i o n 

2 1 4 V a n B u r e n , N . W .

C a m d e n , A r k a n s a s 7 1 7 0 1 

D e a r M r . T h a t c h e r :

T h a n k s f o r y o u r r e c e n t s t a t e m e n t c o n c e r n i n g p r o p o s e d 

t a x a t i o n o f i n l a n d w a t e r w a y s . C e r t a i n l y , I a g r e e w i t h y o u r 

a n a l y s i s t h a t t h e d e v e l o p m e n t o f t h e i n t e r i o r r e s o u r c e s o f 

o u r n a t i o n w o u l d b e c r i p p l e d b y u n w i s e u s e r c h a r g e s . T h i s 

i s e s p e c i a l l y t r u e w h e r e a p r o j e c t h a s j u s t b e e n c o m p l e t e d 

a n d h a s n o t y e t m a t u r e d .

T h a n k s a g a i n f o r s e n d i n g m e t h e s t a t e m e n t .

S i n c e r e l y ,

/ ^ 7

R A Y T H O R N T O N 

M e m b e r o f C o n g r e s s

R T / m g
1 0 9

J O H N P A U L H A M M E R S C H M I D T

H O M E A D D R E S S :

a r m i » O M. r k a n s a s

W A S H I N G T O N A D D R E S S :

2 4 53 R a y b u r n Bui l di m o

W A S HI N G T O N. D. C. 2 0 51 8

h o n s . " 2 5- 4 30 1

C o ngress of flje ^ nite b States 

ty o uit of Me presfe ntatibesf 

C Hasrtjinst on, D. C. 2 05 15

C O M M I I I t t S :

P U B LI C W O R K S

V E T E R A N S' A F F AI R S

Rj B o o w Mrr m a.

C E M E T E RI E S

C O M P E N S A TI O N A N O P E N SI O N

I N S U R A N C E

H O S PI T A L S

A p ril 1 0, 1 9 7 5 S E L E C T C O M MI T T E E O N A QI N O

M r. H. K. T h a t c h e r 

E x e c u ti v e V ic e P r e s i d e n t 

O u a c h it a R i v e r V a ll e y A s s o c i a ti o n 

2 1 4 Va n B u r e n, N. W.

C a m de n, A r k a n s a s 7 1 7 0 1

D e ar H. K .:

T h i s w i l l a c k n o w le d g e y o u r r e c e n t c o m m e n ts w it h 

t h a n k s a n d i n t e r e s t , a s t h e y r e l a t e t o t h e A d m i n i s t r a ­

t i o n ' s p r o p o s e d t a x a ti o n o f w a t e r w a y s.

Y o u k n o w, o f c o u r s e , t h a t m y s e r v i c e o n t h e 

P u b li c W or k s a n d T r a n s p o r t a ti o n C o m m itte e h a s s h a r p e n e d 

m y i n t e r e s t i n t h i s p a r t i c u l a r p r o b l e m .

S p e c i a l l e g i s l a t i o n , w hic h i s e x p e c t e d w i l l b e 

s e n t fr o m t h e W hit e H o u se t o C o n g r e s s, w i l l b e c o n si d e r e d 

b y t h e W a ys a n d M ea ns C o m m it te e, c a l l i n g f o r t a x a ti o n 

o f w a t e r w a y s. H o w e v e r, I w o ul d i m a g i n e t h a t t h e P u b li c 

W or ks C o m m itte e w ill e x e r c i s e i t s c o n s i d e r a ti o n i n f l u e n c e 

a n d I' m c l o s e l y f o ll o w i n g d e v e l o p m e n t s.

H. K ., y o u 'l l h e a r fr o m me a g a i n a s t o a n y d e v e l o p ­

m e nts t h a t ma y o c c u r. I c o u l d n 't a g r e e m ore w it h t h e 

vie w s e x p r e s s e d i n t h e i n f o r m a ti o n y o u m a d e a v a i l a b l e .

W it h w a r m e st w i s h e s.

J P H /e c

J L H A M M E RS C H MI D T 

r o f C o n g r e s s
I L B U R D . M I L L S

1 1 0

C O M M I T T E E O N

W A Y S A N D M E A N S

C o n gr e s s of t be B ntt c h St at e s

S? o u g e of M e p re se nt ati b es 

® 3asfjf njjt o n, S. C . 2 0 5 1 5

J OI N T C O M MI T T E E O N

I N T E R N A L R E V E N U E

T A X A TI O N

A p r i l 4 , 1 9 7 5

M r . H . K . T h a t c h e r 

E x e c u t i v e V i c e P r e s i d e n t 

O u a c h i t a R i v e r V a l l e y A s s o c i a t i o n 

2 1 4 V a n B u r e n , N . W .

C a m d e n , A r k a n s a s 7 1 7 0 1

D e a r H . K . s

I a m s t i l l u n d e r g o i n g m e d i c a l t r e a t m e n t i n 

a F l o r i d a c l i n i c a n d a n t i c i p a t e a m e d i c a l r e l e a s e 

w i t h i n t h e n e x t f e w w e e k s . W h i l e v i s i t i n g w i t h 

m y s t a f f t o d a y , t h e y t o l d m e a b o u t t h e r e c e i p t o f 

y o u r l e t t e r o f M a r c h 3 1 a n d a c c o m p a n y i n g s t a t e m e n t .

B e a s s u r e d t h a t w h e n I a m a l l o w e d t o r e t u r n 

t o a f u l l s c h e d u l e , I w i l l g i v e t h e m a t t e r y o u 

d i s c u s s m y f u l l a t t e n t i o n . P e r h a p s a t s o m e p o i n t 

w e c a n g e t t o g e t h e r a n d d i s c u s s i t f u r t h e r .

W i t h k i n d e s t p e r s o n a l r e g a r d s a n d b e s t 

w i s h e s , I a m

S i n c e r e l y y o u r s

W i l b u r D . M i l l s

W D M / m a c
Ill

/»*-«- ■ hJ C. K

I r r Di s t ri c t. Am k a m r a

c l a y

C o n gr es s of tfj e S nit c h St at e s 

Jj o uae of &e prts e ntati b £ £i 

EJas bi nat o n, 3 3. C. 2 0 51 5

A p ril 8, 1 9 7 5

MI S SI S SI P PI

M r. H. K. T h at c h e r 

E x e c u ti v e V ic e P r e s i d e n t 

O u a c h it a R i v e r V all e y A s s o c i a ti o n 

2 1 4 Va n B u r e n, N. W.

Ca m d e n, A r k a n s a s 7 1 7 0 1

D ea r M r. T h at c h e r:

I v e r y m uc h a p p r e c i a t e y o u r p r o v i d i n g me w it h t h e 

d a t a a n d y o u r p r e s e n t p o s iti o n o n t h e s u b j e c t o f 

i m p o siti o n o f u s e r t a x e s o n i n l a n d w ate r w a y s. T h i s, 

a s y o u k n o w, h a s b e e n a c o n ti n u i n g t o p i c o f l e g i s l a ­

ti v e e f f o r t s w it h i n t h e E x e c u ti v e B r a n c h.

I t i s a m a tt e r a b o ut w hic h I h a v e b e e n c o n c e r n e d f o r 

a l o n g ti m e. T h e re a p p e a r s t o b e w it h i n t h e C o n g r e s s, 

a t t h i s ti m e, a s w i n gi n g o f t h e p e n d ul u m t o w a r d s u p p o rt 

o f l e v y i n g s u c h t a x e s . I b e li e v e t h a t s u c h a m o ve w o ul d 

b e a d v e r s e t o t h e n a ti o n a l i n t e r e s t. B u t, I a l s o b e li e v e 

t h a t i n d i v i d u a l s a n d g r o u p s w it h k n o w le d g e, e x p e rti s e a n d 

i n t e r e s t i n t h e o p e r a ti o n o f t h e i n l a n d w ate r w a y s s y ste m 

m u st m o v e t o i n s u r e t h a t s h o u l d e f f o r t s t o h e a d - o f f t h e 

e n a ct m e nt o f s u c h l e g i s l a t i o n f a i l t h e y w ill h a v e a s u b ­

s t a n ti a l r o l e i n f o r m u l ati n g w h at e v e r la w e v o l v e s.

I b e li e v e t h a t we a r e i n a g r e e m e nt t h a t t h e o p e r a ti o n o f 

t h e i n l a n d w ate r w a y s t r a n s p o r t a ti o n s y ste m i m p a cts o n a 

w i d e r a n g e o f n a ti o n a l e c o n o m ic a n d d e v el o p m e nt a c t i v i t i e s 

S o me o f t h e s e a r e a s a r e i n d i c a t e d i n l e t t e r s w hic h I h a v e 

r e c e n tl y w ritt e n t o t h e U. S . D e p a rt m e nts o f T r a n s p o rt a ti o n 

a n d C o m m erc e a n d t o t h e W ate r R e s o u r c e s C o u n cil . C o pie s 

o f t h i s c o rr e s p o n d e n c e a r e e n c l o s e d , f o r y o u r u s e a n d 

i n f o r m a ti o n . I f y o u w o ul d li k e t o o f f e r c o m m e nts o n t h e 

q u e s ti o n s w hic h a r e s u g g e st e d i n m y l e t t e r s t o t h e D e p a rtm e nts a n d C o u n cil I w o ul d w el c o m e t h e m.
1 1 2

a g e 2

T h a n k y o u a g ai n f o r k e e pi n g me p o st e d o n y o u r t h i n k i n g 

o n t h e p r e s e n t a n d f u t u r e o f i n l a n d w ate r w a y s.

W it h k i n d e s t r e g a r d s, X a m

S i n c e r e l y ,

BI L L A LE X A N D E R 

Me m b er o f C o n g re ss

B A /a a

E n cl o s u r e
1 1 3

C o n g res s of tfje £l mteti &t ate g 

£) o u s(t of & e p «f! e nt a tt otf 

n atffrt njjt o n, O. C. 2 0 5 15

D wnucr. a m m m b m A p ril 8/ 19 75

T he H o n or a b le W illi a m C ole m a n 

S e c r eta r y o f T r a n s p o rt ati o n

_ _ U. S. D e p art m e n t o f T r a n s p o rt ati o n

“ o~»o« W as hi n gt o n, D. C.

De ar Mr. S e c r eta r y :

« TM~ T h e A d m i n is tr ati o n h a s p r o p o se d t h a t C o n gr es s a p pr o v e a

•"•“ T s y st e m o f w at er w a y u s e r ta x e s be le v i e d a g ai n st t h e u s e r s

o f o u r N ati o n's i n la n d w ate r w a y s.

F o r a n u m ber o f y e a r s b e f o re m y e l e c ti o n t o t h e C o n gre ss 

X w or ke d t o w ar d t h e d e v el o p m e n t o f i n la n d w ate r w a y s. T his 

i s a n i n t e r e s t I ha ve r e t a i n e d as a Me m ber o f C o n gr es s 

r e p r e s e n ti n g a r e gi o n i n w hi c h i n la n d w at er w a y s s e r v e as 

a m aj or ele m e n t o f o u r t r a n s p o rt a ti o n n et w or k.

T he i n la n d w at er w a y s tr a n s p o rt a ti o n s y st e m i s u n q u e sti o n ­

a bl y o f g r e at v al u e t o o u r N ati o n as a w h ole. P o li c i e s 

r e l a ti n g t o t h e f u t u r e o f t h e s e w at er w a y s m u st, X b e li e v e, 

be e x a m i n e d fr o m a wi d e v a ri e t y o f a s p e ct s.

I m p o siti o n o f s u c h u s e r ta x e s as ha v e b ee n p r o p o se d ca n 

be e x p e cte d t o ha ve a m aj or i m p ac t n ot o nl y o n t h e i n la n d 

w at er w a y s s y st e m, b ut o n t h e N ati o n's t o t a l tr a n s p o rt a ti o n 

ne t w or k a n d o n o u r n a ti o n a l ec o n o m y. I n vi e w o f t h i s a n d 

t h e f a c t t h a t t h e D e p art m e n t o f T r a n s p o rt ati o n i s c h ar g e d 

w it h t h e p ri n c i p a l r e s p o n si b ilit y f o r c o o r di n ati n g a n d 

e st a b li s h i n g f e d e r a l tr a n s p o rt a ti o n p o li c y, I w o u l d v er y 

m uc h a p p r e cia t e y o u r p r o vi d i n g me w it h t h e f oll o w i n g i n f o r m ­

ati o n :

Y o ur p o siti o n o n t h e i m p o sit i o n o f w at er w a y u s e r ta x e s o n 

i n la n d w at er w a y u s e r s ;

C o p ie s o f a n y a n d a ll st u d i e s t h e D e p art m e n t h as d o ne o n t h e 

i m p a ct s u c h ta x e s w ill ha ve o n t h e c o nti n u e d o p e r ati o n o f 

t h e i n la n d w at er w a y s tr a n s p o rt a ti o n s y st e m as a n i m p o rta nt 

p a rt o f t h e N ati o n ’s t o t a l t r a n s p o rt a ti o n s y ste m , o n t h e
1 1 4

Pa ge 2

n a ti o n's tr a n s p o rt a ti o n ne t w or k as a w h ole, o n t h e c o m p etiti v e p o siti o n i n i n t e r n a ti o n a l m ar k ets o f U. S. p r o d u cts 

n or m all y tr a n s p o rte d t h r o u g h t h e i n la n d w at er w a y s 

s y ste m, o n t h e U. S. r e t a il p ri c e s o f e s s e n ti a l c o ns u m er 

p r o d u cts s u c h as f o o d, o n e x i sti n g i n d u s t r i a l, b u si n e s s 

a n d r e c r e ati o n o p e r ati o n s al o n g o ur N ati o n's i n la n d w ate rwa y s w hi c h n o w u se t h i s f or m o f t r a n s p o rt a ti o n, a n d o n 

t h e p o t e n ti a l f o r i n d u s t ri a l a n d b u si n e s s de vel o p m e nt 

al o n g o u r N ati o n's i n la n d w at er w a y s; a n d,

C o p ie s o f a n y a n d a ll st u d i e s o n t h e i n i t i a l a n d p r o j e cte d 

c o st s o f e st a b li s h i n g a n a g e n c y o r a d m i n i str ati o n, o r 

e x p a n di n g a n e x i sti n g a g e n c y o r a d m i n i str ati o n, t o i m pleme nt a n d o p e r ate t h e i n la n d w at er w a y u s e r ta x pr o g ra m a n d 

h o w c o sts o f t h i s w o ul d b e fi n a n c e d.

I f st u d i e s s u c h as t h o s e a b o ut w hi c h I ha ve as k e d ha ve 

n ot be e n c a r ri e d o u t, ple a s e a d vis e o n w h at, i f a n y, pla n s 

D O T ha s f o r c o n d u cti n g s u c h st u d i e s. I f n o s u c h st u d i e s 

ha ve be e n c o n d u ct e d p l e a s e a d vis e as t o t h e re a s o n f o r 

f a il u r e t o ma k e s u c h i n v e sti g a ti o n s a n d e v al u ati o n s.

I n vi e w o f t h e i m p ort a n ce o f t h e i n la n d w at er w a y s t o t h e 

N ati o n a n d o u r tr a n s p o rt a ti o n n et w o r k, i t se e m s c l e a r t h at 

a n s w er s t o q u e sti o n s s u c h as t h o s e s u g g e ste d b y st u d i e s 

I ha ve i n q u ir e d a b o ut w o ul d be e s s e n ti a l t o t h e f o r m ula ti o n 

o f p oli c y w it h r e g a r d t o t h e b e st wa y f o r t h e N ati o n t o 

fi n a n c e t h e m ai n te n a n c e, i m pr o v e m e nt a n d o p e r ati o n o f t h i s 

ele m e n t o f t h e tr a n s p o rt a ti o n n et w o r k.

I f s u c h st u d i e s ha ve n ot be e n a p a rt o f t h e p o li c y ma ki n g 

c o n si d e r ati o n s o n t h e s u b j e ct o f i n la n d w at er w a y s t a x e s,

I ur g e t h a t t h e y b e u n d ert a k e n a n d t h a t e f f o rt s t o e st a b ­

li s h s u c h a ta x pr o g ra m be h el d i n a b e y a n ce u n til t h e 

r e s u lt s o f t h e s e st u d i e s are ma de a v ail a b l e t o t h e C o n gr es s 

a n d t h e p u b li c.

T h a n k y o u f o r t h e c o o p e r ati o n y o u a n d y o u r s t a f f ha ve p r o ­

vi d e d t o me i n t h e p a st a n d f o r a n y a s si st a n c e y o u ma y be 

a ble t o p r o vi d e t o me o n t h i s m att e r.

Wit h ki n d r e g a r d s, I a m

S i n c e r el y

BI L L A L E X A N D E R 

Me m ber o f C o n gr es s

B A/ aa
1 1 5

; W M . V . ( B i l l A L E X A N D E R

C o n g res s of tfje Z B nitc b S >tatesf 

Jj o u s e of & e pr efi e ntatt o es 

darijl n gt o n, J D. C. 2 0 5 1 5 

A p ril 8, 1 9 7 5

T he H o n ora ble J o h n K. T a b or 

A cti n g S e c r eta r y o f C o m merce 

U. S. D e p art m e n t o f C o m merce 

W as hi n gt o n, D. C.

De ar Mr. S e c r et a r y :

T he A d m i n is tr ati o n h a s pr o p o se d t h a t C o n gre ss a p pr o v e a 

s y st e m o f w at er w a y s u s e r ta x e s t o be l e v i e d a g ai n st t h e 

u s e r s o f o u r N ati o n's i n la n d w ate r w a y s.

F or a n u m ber o f y e a r s b e f o r e my e l e c ti o n t o t h e C o n gr es s 

I w o r k e d t o w ar d t h e d e v el o p m e n t o f i n la n d w ate r w a y s. T his 

i s a n i n t e r e s t I ha v e r e t a i n e d as a Me m ber o f C o n gre ss 

r e p r e s e n ti n g a r e gi o n i n w hi c h i n la n d w at er w a y s s e r v e as 

a m aj or ele m e nt o f o u r tr a n s p o rt a ti o n n et w o r k.

T he i n la n d w at er w a y s t r a n s p o rt a ti o n s y st e m i s u n q u e sti o n ­

a bl y o f g r e at v al u e t o o u r N ati o n as a w h ole. P o li ci e s 

r e l a ti n g t o t h e f u t u r e o f t h e s e w at er w a y s m u st, I b e li e v e, 

be e x a m i n e d fr o m a wi d e v a ri e t y o f a s p e ct s.

I m p o siti o n o f s u c h u s e r ta x e s as ha ve b ee n p r o p o se d ca n 

be e x p e cte d t o ha ve a m aj or i m p a ct n ot o nl y o n t h e i n la n d 

w at er w a y s s y ste m , b ut o n t h e N ati o n's t o t a l t r a n s p o rt a ti o n 

n et w or k a n d o n o u r n ati o n al ec o n o m y. I n vi e w o f t h i s a n d 

t h e f a c t t h a t t h e D e p art m e n t o f C o m merce i s c h ar g e d w it h 

t h e p ri n c i p a l r e s p o n si b ilit y f o r c o o r di n ati n g a n d e st a b li s h' 

i n g f e d e r al p o lic y i n t h e a r e a o f c o m m erc e, I w o ul d v er y 

m uc h a p p r e cia t e y o u r p r o vi d i n g w it h me t h e f o ll o w i n g i n f o r ­

m ati o n:

Y o ur p o siti o n o n t h e i m p o sit i o n o f w at er w a y u s e r ta x e s o n 

i nla n d w at er w a y u s e r s;

C o p ie s o f a n y a n d a ll st u d i e s t h e D e p art m e n t ha s d o ne o n t h e 

i m p ac t s u c h ta x e s w ill ha ve o n t h e c o nti n u e d o p e r ati o n o f 

t h e i n la n d w at er w a y s tr a n s p o rt a ti o n s y st e m as a n i m p o rt a nt 

p a rt o f t h e N ati o n's t o t a l t r a n s p o rt a ti o n s y ste m , o n t h e 

n a ti o n's t r a n p o rt a ti o n ne t w or k as a w h ole, o n t h e c o m p etiti v e p o siti o n i n i n t e r n a ti o n a l m ar k ets o f U. S. p r o d u cts
1 1 6

Pa ge 2

n or m all y tr a n s p o rt e d t h r o u g h t h e i n la n d w at er w a y s 

s y ste m, o n t h e U. S. r e t a il p ri c e s o f e s s e n ti a l c o ns u m er 

p r o d u cts s u c h as f o o d, o n e x i sti n g i n d u s t r i a l, b u si n e s s 

a n d r e c r e ati o n o p e r ati o n s al o n g o u r N ati o n's i nla n d w ate rwa y s w hi c h n o w u se t h i s f or m o f t r a n s p o rt a ti o n, a n d o n 

t h e p o t e n ti a l f o r i n d u s t ri a l a n d b u si n e s s de vel o p m e nt 

al o n g o u r N ati o n's i n la n d w at er w a y s; a n d,

C o pie s o f a n y a n d a ll st u d i e s o n t h e i n i t i a l a n d p r o j e cte d 

c o sts o f e st a b li s h i n g a n a g e n c y o r a d m i n i str ati o n, o r 

e x p a n di n g a n e x i sti n g a g e n c y o r a d m i n i str ati o n, t o i m pleme nt a n d o p e r ate t h e i nla n d w at er w a y u s e r ta x pr o g ra m a n d 

h o w c o sts o f t h i s w o ul d be fi n a n c e d.

I f st u d i e s s u c h as t h o s e a b o ut w hi c h I ha ve as ke d ha ve 

fl ot be e n c a r ri e d o u t, ple a s e a d vis e o n w h at, i f a n y, pla n s 

D O C h as f o r c o n d u cti n g s u c h s t u d i e s. I f n o s u c h st u d i e s 

ha ve be e n c o n d u ct e d ple a s e a d vis e as t o t h e re a s o n f o r 

f a il u r e t o ma ke s u c h i n v e sti g a ti o n s a n d e v al u ati o n s.

I n vi e w o f t h e i m p ort a n ce o f t h e i n la n d w at er w a y s t o t h e 

N ati o n a n d o u r tr a n s p o rt a ti o n n et w o r k, i t see ms c l e a r t h a t 

a n s w er s t o q u e sti o n s s u c h as t h o s e s u g g e ste d b y st u d i e s 

I ha ve i n q u ir e d a b o ut w o ul d be e s s e n ti a l t o t h e f o r m ula ti o n 

o f p oli c y w it h r e g a r d t o t h e b e st wa y f o r t h e N ati o n t o 

fi n a n c e t h e m ai n te n a n c e, i m pr o v e m e nt a n d o p e r ati o n o f t h i s 

ele m e n t o f t h e tr a n s p o rt a ti o n n et w o r k.

I f s u c h st u d i e s ha ve n ot be e n a p a rt o f t h e p oli c y ma ki n g 

c o n si d e r ati o n s o n t h e s u b j e ct o f i n la n d w at er w a y s t a x e s,

I ur g e t h a t t h e y be u n d ert a k e n a n d t h a t e f f o rt s t o e st a b ­

li s h s u c h a ta x pr o g ra m b e ’ h el d i n a b e y a n ce u n til t h e 

r e s u lt s o f t h e s e st u d i e s are ma de a v ail a b l e t o t h e C o n gr es s 

a n d t h e p u b li c.

T h a n k y o u f o r t h e c o o p e ra ti o n y o u a n d y o u r s t a f f ha ve p r o ­

vi d e d t o me i n t h e p a st a n d f o r a n y a s si st a n c e y o u ma y be 

a ble t o p r o vi d e t o me o n t h i s m att e r.

Wit h k i n d e st r e g a r d s, I a m

BI L L A L E X A N D E R 

Me m ber o f C o n gr es s

B A/ aa
. V . ( SI L L) A L E X A N D E R

1 1 7

C o n g res s of tfje T H nite h S ta te s 

$ o u £ e of ft e pr e g e nt ati b efi 

5 0a «f)t nst o n, 3 3. C. 2 0 5 1 5 

A p r i l 8 , 1 9 7 5

T h e H o n o r a ble R o g ers C. B. M ort o n 

C h air m a n, W ate r R e s o u rc e s C o u n cil 

2 1 2 0 L S t r e e t, N. W.

W a s hi n gt o n, D. C. 2 0 0 3 7

D ea r Mr. C h air m a n:

I a m w riti n g y o u i n y o u r r o l e a s c h air m a n o f t h e C o u n cil 

r a t h e r t h a n a s S e c r e t a r y o f t h e I n t e r i o r b e c a u s e o f t h e 

r o l e t h e W R C h a s h a d i n t h e m o v e m e nt t o i m p o se u s e r t a x e s 

o n i n l a n d w ate r w a y u s e r s.

F o r a n u m be r o f y e a r s b e f o r e m y e l e c ti o n t o t h e C o n g re s s 

I w o r k e d t o w a r d t h e d e v el o p m e nt o f i n l a n d w ate r w a y s. T h is 

i s a n i n t e r e s t I h a v e r e t a i n e d a s a Me m ber o f C o n g re s s 

r e p r e s e n ti n g a r e g i o n i n w hic h i n l a n d w ate r w a y s s e r v e as 

a m aj o r ele m e nt o f o u r t r a n s p o r t a ti o n n et w o r k.

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a b l y o f g r e a t v al u e t o o u r N ati o n a s a w h ole . P o li c i e s 

r e l a ti n g t o t h e f u t u r e o f t h e s e w ate r w a y s m u st, I b e li e v e , 

b e e x a m i n e d fr o m a w i d e v a r i e t y o f a s p e c t s.

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b e e x p e ct e d t o h a v e a m aj o r i m p a ct n o t o nl y o n t h e i n l a n d 

w ate r w a y s s y ste m , b u t o n t h e N a ti o n's t o t a l t r a n s p o r t a ti o n 

n et w o r k a n d o n o u r n a ti o n a l ec o n o m y. I n vie w o f t h i s a n d 

t h e f a c t t h a t t h e W ate r R e s o u r c e s C o u n cil h a s b e e n a c ti v e 

i n s u p p o rti n g s u c h t a x e s, I w o ul d v e r y m uc h a p p r e c i a t e y o u r 

p r o v i d i n g me w it h t h e f o ll o w i n g i n f o r m a ti o n :

C o pie s o f a n y a n d a l l s t u d i e s t h e C o u n cil h a s d o ne o n t h e 

i m p a ct s u c h t a x e s w ill h a v e o n t h e c o n ti n u e d o p e r a ti o n o f 

t h e i n l a n d w ate r w a y s t r a n s p o r t a ti o n s y ste m as a n i m p o rt a n t 

p a r t o f t h e N a ti o n's t o t a l t r a n s p o r t a ti o n s y st e m , o n t h e 

n a ti o n 's t r a n p o rt a ti o n n et w o r k as a w h ole , o n t h e c o m p eti ­

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p r o d u ct s s u c h a s f o o d, o n e x i s ti n g i n d u s t r i a l, b u si n e s s 

a n d r e c r e a ti o n o p e r a ti o n s al o n g o u r N a ti o n's i n l a n d w at e r ­

wa ys w hic h n o w u s e t h i s f o r m o f t r a n s p o r t a ti o n , a n d o n 

t h e p o t e n ti a l f o r i n d u s t r i a l a n d b u si n e s s d e v el o p m e nt 

al o n g o u r N a ti o n's i n l a n d w ate r w a y s; a n d,

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c o st s o f e s t a b li s h i n g a n a g e n c y o r a d m i n i s t r a ti o n , o r 

e x p a n di n g a n e x i s ti n g a g e n c y o r a d m i n i s t r a ti o n , t o i m ple ­

m e nt a n d o p e r a t e t h e i n l a n d w ate r w a y u s e r t a x p r o g ra m a n d 

h o w c o s t s o f t h i s w o ul d b e fi n a n c e d.

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n o t b e e n c a r ri e d o u t, p l e a s e a d v i s e o n w h at, i f a n y, p l a n s 

W R C h a s f o r c o n d u cti n g s u c h s t u d i e s . I f n o s u c h st u d i e s 

h a v e b e e n c o n d u cte d p l e a s e a d v i s e a s t o t h e r e a s o n f o r 

f a il u r e t o ma ke s u c h i n v e s ti g a ti o n s a n d e v a l u a ti o n s.

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a n s w ers t o q u e s ti o n s s u c h a s t h o s e s u g g e st e d b y s t u d i e s 

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o f p o li c y w it h r e g a r d t o t h e b e s t wa y f o r t h e N ati o n t o 

fi n a n c e t h e m ai n t e n a n c e, i m pr o v e m e nt a n d o p e r a ti o n o f t h i s 

ele m e nt o f t h e t r a n s p o rt a ti o n n et w o r k.

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c o n s i d e r a ti o n s o n t h e s u b j e c t o f i n l a n d w ate r w a y s t a x e s,

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ta xi n g na vi g ati o n o p er ati o ns o n t h e N ati o n' s i nl a n d w at er w a y s, 

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o n W a t e r R e s o u r c e s c o n c e r n i n g w a t e r w a y u s e r c h a r g e s .

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U s e r T a x A c t o f 1 9 7 4 " t o t h e C o n g r e s s b u t i t w a s n e v e r i n t r o d u c e d .

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i n l a n d w a t e r w a y s . U n d e r t h i s p r o p o s a l , a $ 1 0 l o c k a g e f e e f o r 

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e x p e n s e .

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p r i v a t e b o a t o w n e r s a n d C o n g r e s s m e n o v e r t h e p o s s i b l e i m p a c t o f 

w a t e r w a y u s e r c h a r g e s i n t h e f o r m o f a $ 1 0 l o c k a g e f e e a n d a t o n - m i l e 

t a x . B e c a u s e t h i s c o n c e r n i s s h a r e d b y t h e D e p a r t m e n t o f T r a n s p o r t a t i o n 

a l t e r n a t i v e l e g i s l a t i v e p r o p o s a l s a r e n o w b e i n g c o n s i d e r e d b y t h e 

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p r o v i s i o n s o f S e c t i o n 8 0 ( c ) o f t h e W a t e r R e s o u r c e s D e v e l o p m e n t A c t 

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s e g m e n t s o f t h e N a t i o n m e n t i o n e d i n t h e p r o p o s e d b i l l , a n d w o u l d i n c l u d e 

w a t e r t r a n s p o r t a t i o n o n t h e M i s s i s s i p p i R i v e r a n d t h e A r k a n s a s R i v e r ; a n d

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o n t h e A r k a n s a s - V e r d i g r i s s e g m e n t w o u l d b e 3 7 . 3 8 m i l l s p e r t o n m i l e , w h i c h 

w o u l d I n c r e a s e t h e c o s t o f m o v i n g a l o a d e d 1 , 5 0 0 - t o n b a r g e o n e m i l e o n t h e 

A r k a n s a s R i v e r b y $ 5 6 . 0 7 ; a n d

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p o r t a t i o n , w h i c h i s v i t a l t o t h e e c o n o m y o f t h i s S t a t e a n d R e g i o n , i s i l l u s ­

t r a t e d b y t h e f a c t t h a t a n e i g h t - b a r g e t o w m o v i n g f r o m t h e M i s s i s s i p p i R i v e r 

t o P i n e B l u f f , L i t t l e R o c k , a n d F o r t S m i t h w o u l d c o s t $ 3 2 , 0 0 0 , $ 5 2 , 0 0 0 , a n d 

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p r o d u c t i o n , a n d h i g h u n e m p l o y m e n t a r e i m p o s i n g a s e v e r e s t r a i t j p o n t h e 

e c o n o m y o f t h i s R e g i o n a n d t h e N a t i o n a t t h i s t i m e , a n d t h e e n a c t m e n t o f 

t h e F e d e r a l W a t e r w a y U s e r T a x L a w c o u l d b e a c r i p p l i n g b l o w t o m a n y o f t h e 

n e w a n d e x i s t i n g i n d u s t r i e s a n d u s e r s w h o a r e d e p e n d e n t u p o n w a t e r w a y 

t r a n s p o r t a t i o n i n t h i s a r e a ; a n d

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s a v i n g s a r e p a s s e d o n t o t h e s h i p p e r s , w h o l e s a l e r s , a n d u l t i m a t e l y a n d 

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u t i l i z a t i o n o f l o w - c o s t w a t e r t r a n s p o r t a t i o n i s e s s e n t i a l t o c o n s e r v i n g 

e n e r g y s u p p l i e s , t h e r e b y h o l d i n g d o w n i n f l a t i o n a r y c o s t s a n d i n c r e a s i n g 

p r o d u c t i v i t y w h i c h r e s u l t i n i n c r e a s e s i n e m p l o y m e n t o p p o r t u n i t i e s ;

N O W T H E R E F O R E ,

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O F A R K A N S A S , T H E H O U S E O F R E P R E S E N T A T I V E S C O N C U R R I N G T H E R E I N :

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t o t h e i m p o s i t i o n o f t h e p r o p o s e d f e d e r a l w a t e r w a y u s e r t a x e s w h i c h , i f 

e n a c t e d , w o u l d i m p o s e a n e x t r e m e b u r d e n u p o n t h e e c o n o m y o f t h i s R e g i o n a n d 

w o u l d c o n t r i b u t e t o i n f l a t i o n i n t h e R e g i o n d u e t o f u r t h e r i n c r e a s e s i n 

p r i c e s o f g o o d s , s e r v i c e s , a n d c o m m o d i t i e s w h i c h a r e d e p e n d e n t u p o n w a t e r 

t r a n s p o r t a t i o n .

. B E I T F U R T H E R R E S O L V E D T H A T t h e A r k a n s a s G e n e r a l A s s e m b l y r e s p e c t f u l l y 

u r g e s t h e m e m b e r s o f t h e A r k a n s a s C o n g r e s s i o n a l D e l e g a t i o n t o o p p o s e , w i t h 

t h e f u l l r e s o u r c e s a t t h e i r c o m m a n d , t h e e n a c t m e n t o f t h e p r o p o s e d F e d e r a l 

W a t e r w a y U s e r T a x L a w .

B E I T F U R T H E R R E S O L V E D T H A T u p o n t h e a d o p t i o n o f t h i s R e s o l u t i o n , t h e 

S e c r e t a r y o f S t a t e s h a l l c a u s e a n a p p r o p r i a t e c o p y t o b e f u r n i s h e d t o t h e 

P r e s i d e n t o f t h e U n i t e d S t a t e s , i n o r d e r t h a t h e m a y b e a p p r i s e d o f t h e 

s e r i o u s i m p a c t o f t h e p r o p o s e d l e g i s l a t i o n u p o n t h i s S t a t e a n d R e g i o n , 

a n d c o p i e s s h a l l b e f u r n i s h e d t o e a c h m e m b e r o f t h e A r k a n s a s C o n g r e s s i o n a l 

D e l e g a t i o n , e a c h o f w h o m i s u r g e d t o o p p o s e t h e e n a c t m e n t o f t h e F e d e r a l 

W a t e r w a y U s e r T a x L a w .
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U. S. Se n ate P u blic W or k s S u bc o m mitte e o n W ate r R es o u rc es

W H E R E A S, t he S o ut h Ar k a n sa s De vel o p m e nt C o u ncil was or ga ni ze d i n 1 9 5 4 b y 

a gr o u p of b u si ne ss a n d pr of es si o n al pr o p le li vi n g i n cl os e pr o xi m it y of a na vi gata bl e 

p o rti o n of t h e O u ac hita Ri v er i n si x ( 6) S o ut h A r k a n sa s c o u ntie s, na m el y, As hle y, 

Br a dle y, Cal h o u n, C ol u m bia, O u ac hita a n d U ni o n; a n d

W H E R E A S, c o m m er ci al na vi g ati o n o n t h e O u ac hit a Ri v er is a b as ic fa ct or i n 

t h e ec o n o mic, s o ci al, ae st he ti c a n d p o litic al de vel o p m e nt of t he S A. D. C. re gi o n; a n d

W H E R E A S, t his e xtr e m el y vital na vi ga bl e water w a y is n o w t h re at e n e d t o be c u r 

taile d, if n ot e n ti rel y eli m i n at e d b y t he e n act m e nt of a n u n wi se, re tr o g re ss i v e a n d c o nfi sc at or y ta x a g ai nst t h e l o cal water w a y s i n te re sts w hi c h are i n p art m e m b er s of t he 

5. A. D. C .; n o w

T H E R E F O R E, B E I T R E S O L V E D, t h at t he S. A. D. C. call u p o n it s el ecte d 

Dele g ati o n s i n t he Nati o nal C o n gr es s a n d t he Ar k a n sa s G e n er al A ss e m bl y t o st a n d a n d 

fi g ht a g ai nst s u c h ill- a d vis e d w at er wa ys ta xati o n, w het h er it is p er p et ra d e d b y t he A dmi nistr ati o n, M e m be rs of t he C o n gr es s, e m oti o nal e n vir o n m e ntal gr o u ps, or ot he r 

c o m p eti n g m o d es of tr a n s p ort ati o n se e ki n g t o eli m i n at e c o m p eti o n; a n d

B E I T F U R T H E R R E S O L V E D, t h at a c o p y of t his Re s ol uti o n be dir ec te d t o 

Se nat or Mi ke Gra vel, C hair m a n of t h e Se nate P u blic W o r ks S u bc o m mitte e o n W at er 

R es o u rc es, h ol di n g a P u blic He ari n g o n t h e s u bj ect i n Vi c k s b ur g, M is si ssi p pi, Ma y 1 6 

1 9 7 5.

A d o pte d at t he m o nt hl y m eeti n g of t h e S A. D. C ., Ma y 6, 1 9 7 5, Ma g n oli a, A r k a n sa s.

Si g ne d

5 4- 2 3 9 0 - 7 5 - 9
1 2 4

o n or a ble G er al d T. F o r d 

O ff ic e of C he P r e si d e nt 

W as hi n gt o n, D. C.

De ar Mr. P r e si d e nt:

I a m a w ar e of t h e f a ct t h at y o u s e nt t o t h e C o n gr es s l a s t N o ve m ber a 

pa c k a g e of ec o n o mi c c u re s t h at i n cl u d e d d r a ft l e g i sl a ti o n p r o vi d i n g f o r t h e 

i m p o siti o n of water wa y u s er ta x e s a n d ot h e r p u r p o s e s. T hi s l e g i sl a ti o n i s 

a b o u t t h e sa me a s t h at d ra fte d t h r e e y e ars a g o w hic h was o bje cte d t o s t r e n i - 

o u sl y b y t h e U nite d S ta te s De part m e nt of C o m merce b ec a u se of t h e v er y a d v ers e 

i m pa ct i t w o ul d ha ve o n t h e n ati o n al ec o n o m y a n d o n i n t e r n a ti o n a l tr a d e. I n 

a cc or da n ce w it h t h e d r a ft l e g i sl ati o n ea c h t o n of c o m merce w o ul d be ta xe d 

ea c h m il e i t was tr a n s p o rt e d o n ea c h of t h e 2 0 ri v e r se g m e nts m e nti o ne d i n t h e 

pr o p os e d b il l. Eac h se g m e nt of t h e t o t a l w o ul d be ta x e d t o t h e e xte nt n e c e s sa r y 

t o re c o u p o p e ra ti o n a n d m ai nt e n a n ce c o sts f o r t h at se g m e nt. I n f o r m ati o n a v aila b le 

t o me s h o w s t h e ta x t o ra n g e fr o m o n e - h alf m ill p e r t o n - m il e o n t h e U p per M is sis si p pi 

Ri v er se g me nt t o 1 1 7 m il ls o n t h e W illa m ett e Ri v er a n d t h e A r k a n sa s- V e r d i g ri s se g m e nt 

w o ul d be 3 7. 3 8 m ill s. T his ta x w o ul d i n c r e a s e t h e c o st of m o vi n g a l o a d e d 1, 5 0 0 t o n 

b ar ge o n e m il e o n t h e A r k a n sa s- V er d i g ri s S y ste m b y $ 5 6. 0 7. Ass u mi n g a n 8 b ar g e t o w, 

t h e a d de d c o st f o r m o vi n g i t fr o m t h e M is sis si p pi Ri v er t o Pi n e B l u ff, L ittl e R oc k 

a n d F o rt S m it h, A r k a n sa s w o ul d be a b o u t $ 3 2, 0 0 0, $ 5 2, 0 0 0, a n d $ 1 3 9, 0 0 0, r e s p e cti v el y .

I n s o f a r a s I k n o w t h e b ill dis c u s s e d a b o v e h a s n ot be e n re s u b m itte d t h i s 

c u rr e nt s e s si o n. H o we ver, a b o u t t w o we e ks a g o t h e W hite H o us e P re s s O ff ic e sta t e d 

t h at y o u w ill pr o p o se ne w water wa y u s e r c h ar g e l e g i sl a ti o n i n t h e n e xt f o u r t o si x 

w ee ks. I t i s u n d erst o o d t h at t h e A s sis ta nt G e n er al C o u nc il f o r t h e D e p art m e nt of 

T r a n s p o rt ati o n h as b ee n as ke d t o d r a ft a ne w p r o p o s al o n ce d e cis i o n s ha ve be e n ma de 

a s t o t h e f or m o f t h e ne w p r o p o s al. W h et h er a n ot h e r se g m e nt t o ll a p pr o a c h , f u el ta x e s, 

or w h at n ot, t h e g e n e r al i d e a w ill pr o b a bl y be t o re c o u p o p e ra ti o n a n d m ai nte n a n ce c o sts .

Ha vi n g se r v e d i n t h e U nite d Sta te s C o n gr es s a n d n o w a s G o ve r n or o f A r k a n sa s I a m 

p a rti c u l a rl y c o n sc i o u s o f t h e i m p o rt a n ce of t h e s t a b ilit y of o u r ec o n o mi c s y st e m . I 

a m als o p a rti c u l a rl y c o n sc i o u s of t h e ec o n o mic gr o w t h h e re i n t h e Ar k a n sa s Ri v er V all e y 

be ca us e of t h e r e c e nt c o m pleti o n a n d alr e a d y f a v o ra ble i m pa ct of t h e 1. 2 b illi o n d o ll a r 

w ate r re s o u rc e p r o je ct w hic h pr o vi d e s w ate r tr a n s p o rt ati o n. I t i s e sti m ate d t h at 

alr e a d y i n v e st m e nts a m o u nti n g t o o v er 3 b illi o n d o ll a r s ha ve be e n ma de i n ne w a n d 

e x pa n d e d i n d u stri e s h e re i n t h e v all e y, w hic h a r e d ir e c tl y or i n d ir e c tl y o rie nte d t o 

w ate r tr a n s p o rt ati o n. Als o, a b o u t 2 0, 0 0 0 j o b s ha ve be e n c r e at e d. A ll o f t h i s mea ns 

a br oa de ne d ta x b a se t o o ur l o c al c o m m u n iti es, st a t e a n d n ati o n. T his i n t u r n mea ns 

b e tt e r ec o n o mi c c o n dit i o n s; b e tt e r s c h o ols, li b r a r i e s , a n d h o s p it al s; i m pr o ve d p u bli c 

s e r vic e s; g r e ate r r e c r e ati o n al f a c iliti e s a n d c u lt u r a l o p p o rt u n iti e s. N ot o n l y i s 

w ate r tr a n s p o rta ti o n i m p o rt a nt t o A r k a n sa s b ec a u se o f it s a b ilit y t o m o ve g r ai n , c o al, 

b a u xit e a n d ot h e r b ul k pr o d u cts a t a c o m p ar ati v e l o w c o st, b ut i n t h i s da y w he n a ll of 

us a r e c o n sc i o u s o f o ur s h o rt s u p p l y of f u el a n d a r e c o nc er ne d a b o u t o u r e n vi r o n m e nt i t 

i s i m p ort a n t t o n ote t h a t w at er tr a n s p o rta ti o n r e q uir e s l e s s e n er g y p e r t o n - m il e t h a n 

a n y ot h e r met h o d o f f r e i g h t d i stri b u ti o n a n d pr o d u ce s l e s s a i r a n d n ois e p o ll u ti o n t h a n 

t r a i n s a n d tr u c k s. A ll o f t h e se f a ct o r s a re s i g n ifi c a n t t o t h e ec o n o mic a n d e n vi r o n m e n ­

t a l s t a b ilit y o f A r k a n sa s a n d t h e N ati o n.
H o n o r a b l e G e r a l d T . F o r d

I n v i e w o f t h e n a t i o n s s e r i o u s e c o n o m i c p r o b l e m s t h e r e c o u l d h a r d l y b e a 

w o r s e t i m e t h a n n o w t o r e v i v e l e g i s l a t i o n I m p o s i n g t a x e s o n w a t e r w a y s . T h e 

p r o p o s e d l e g i s l a t i o n o r a n y c o m p a r a b l e t h e r e t o i f e n a c t e d i n t o l a w w o u l d n o 

d o u b t r e s u l t i n c l o s u r e t o c o m m e r c i a l n a v i g a t i o n o n a n u m b e r o f i m p o r t a n t t r i b u ­

t a r y w a t e r w a y s , t h a t a r e i m p o r t a n t p a r t s o f t h e I n l a n d W a t e r w a y s S y s t e m , i n c l u d ­

i n g t h e A r k a n s a s - V e r d i g r i s s e g m e n t .

B e c a u s e o f t h e b a r g e r a t e s f o r t r a n s p o r t i n g t h e r a w m a t e r i a l s a n d f u e l t o 

t h e n a t i o n s b a s i c i n d u s t r i e s a r e c o m p a r a t i v e l y l o w t h e y h a v e s e r v e d t o h o l d d o w n 

t h e r a t e s o f o v e r l a n d m o d e s . T h e s e s a v i n g s a r e p a s s e d o n t o s h i p p e r s , w h o l e s a l e r s 

a n d u l t i m a t e l y a n d i m p o r t a n t l y t o c o n s u m e r s . I b e l i e v e t h a t e m p h a s i s , p a r t i c u l a r l y 

n o w , s h o u l d b e o n m a x i m u m u t i l i z a t i o n o f l o w - c o s t w a t e r t r a n s p o r t a t i o n t o c o n s e r v e 

e n e r g y s u p p l i e s , h o l d d o w n f r e i g h t c o s t s , i n c r e a s e p r o d u c t i v i t y , a n d t o m a i n t a i n a 

h e a l t h y i n l a n d t r a n s p o r t a t i o n s y s t e m t o b o l s t e r o u r s a g g i n g e c o n o m y .

M r . P r e s i d e n t , 1 b e g o f y o u t o r e c o n s i d e r y o u r p r o p o s a l o f a w a t e r w a y u s e r 

t a x w h i c h h a s b e e n e s t i m a t e d w o u l d y i e l d a b o u t $ 1 0 0 m i l l i o n a n n u a l l y t o t h e F e d e r a l 

T r e a s u r y . T h i s w o u l d b e s m a l l i n c o m p a r i s o n t o s p i n o f f d a m a g i n g i m p a c t s t o o u r 

e c o n o m y . T h e r e i s n o w a y , i n m y o p i n i o n , t h a t a $ 1 0 0 m i l l i o n r e t u r n t o t h e F e d e r a l 

G o v e r n m e n t c a n b e e q u a t e d w i t h t h e m i l l i o n s u p o n m i l l i o n s o f d o l l a r s o f e c o n o m i c 

d i s l o c a t i o n t h a t w i l l o c c u r i n A m e r i c a n a g r i c u l t u r a l a n d I n d u s t r i a l r e g i o n s s h o u l d 

a b i l l c o m p a r a b l e t o t h a t p r o p o s e d b y y o u b e e n a c t e d .

R e s p e c t f u l l y y o u r s ,

D a v i d P r y o r 

G o v e r n o r o f A r k a n s a s
1 2 6

F O » T O F FI CE B O X S 4 B T H O M A S A R R O E T Z L U M B E R C O.

M O O M A L L S T R E E T

C A LI O N. A R K A N S A S 7 1 7 1 4 R. O. B O X S 40 S B R O A O W A Y S T A TI O N

Fe br uar y 2 6, 1 97 5

Mr. H. K. T hat c her

O uac hita Ri v er Valle y As s ociati o n

2 1 4 Van B ure n S t., N. W.

Ca m de n, Ar ka nsas 7 1 70 1

Dear H. K.s

We ar e he ari n g m ore a n d m ore ta l k of pr o rata c har ge s u p o n ri v er 

t o n na g e t h es e da y s, e n o u gh t o ca use us c o n si d era ble alar m.

T he i n stit u ti o n of s uc h c har g es u p o n t he O uac hita Ri ver w oul d 

f a ll as a cr u s hi n g bl o w t o o ur ri v er l o g gi n g o p er ati o ns, si n ce 

we ar e n o w t h e pri mar y c o m mercial us er s of t he u p per O uac hita 

p o ol s.

I n ci d e n tall y, as o ur detail e d c ost rec or d s cl ea rl y re ve al, it is 

n o w o nl y ma r gi nall y pr o fita ble t o tr a n s p ort l o g s b y bar ge i n ste a d 

of b y tr u c k, a n d o ur c o n versi o n t o a ll tr uc k l o g gi n g is n o w o nl y 

f o re st alle d b y t h e fa ct or s of c o n ve nie nce a n d a cc es si bilit y t h at 

acc o m pan y ri v er o p er ati o n s.

Y o ur ai d i n s pre a di n g t h is messa ge t o a p pr o p riate p artie s c o ncer ne d will be gr eatl y a p pr eciate d.

Si nc er el y y o ur s,

C ALI O N L U MBE R C O MP A N Y, I N C.

C harles E. T ho mas 

Vi ce- Presi de nt

C E T: b w
1 2 7

I T Y O F C R O S S E T T

C R O S S E T T . A R K A N S A S 7 1 0 3 3

Ma y 0, 1 77 5

Mr. H. K. T hat c her

O uac hita Ri v er Valle y As s ociati o n

2l U Va n B ure n S t. N. W.

Ca m de n, Ar ka nsas 7 1 7 01

Dear H. K.t

I t has c o me t o n y att e nti o n t h at t h e a d mi nist rati o n i s a gai n sea ki n g le gis 

la ti o n t o le v y a pr o rata ta x u p o n ri v er tr a n s p ort ati o n.

Ma y I ur ge y o u as E xec uti v e Vi ce- Presi de nt of t h e O ua c hit a Ri v er Valle y 

As s ociati o n t o ta k e a sta n d i n o p p o siti o n t o a n y pr o p os e d na vi g ati o n ta x, w hic h 

w o ul d se ve rel y pe nal i 7.e ri v er tr a n s p ort ati o n, a n d t o pas s t h at t hi n ki n g al o n g 

t o t he a p pr o p riate p a rti e s.

Si nc er el y,

A. B. M o ore, J r., 

Cit y of Cr os sett

A B Mt de
CI T I E S S E R VI C E OI L C O M P A N Y

B o x 5 7 3

F air b a n k s, L o ui si a n a 7 1 2 40 

P h o n e: 3 1 8- 6 6 5-2 0 1 5

A p ril 1 8, 1 9 7 5

S e n at o r Mi ke G ra v el

C hair m a n, S e n ate S u bc o m mitt ee o n W at er R e s o urc es 

D ir k se n O ff ic e B uil di n g 

W as hi n g t o n, D. C. 2 0 5 1 0 

De ar S e n at o rs

I a m 4 2 y e a r s o l d, a n d ha ve se e n b ar g e t r a f f i c g o fr o m 

a b s ol u te z er o t o o n e m il li o n t o n 3 p er y e a r o n t h e O u a c h it a 

R i v e r, m o stl y i n t h e p a st 1 0 y e a r s. Wit h t h e c h a n n el i n c r e a s e 

fr o m 6 ’ t o 9 * i n t h e p a st y e a r o r s o i n L o uis ia n a, a n d w or k 

i n p r o g r e s s i n A r k a n sa s f o r t h e sa m e, I fi n d i t v er y u nti m el y 

f o r a t o wi n g c h ar g e a n d l o c k a g e fe e w hi c h i s u n d er p r o p o s al. 

T his i s t o sa y n ot h i n g o f t h e e f f e c t o n t h e ec o n o m y w it hi n 

t h e O u a c hit a R i v er b a si n a r e a.

C e rta i n l y ri v e r t r a n s p o rt a ti o n ha s pr o v e n i t s e l f t o be 

e c o n o mic al i n e v er y r e s p e c t. A ta x w ill o nl y be p a ss e d o n t o 

t h e c o ns u m er r e g a r d l e s s o f w h ere i t i s i m p o se d, a n d p r o b a bl y 

ma n y ti m e s o v er t h e c o st o f t h e o ri g i n a l ta x i t s e l f .

O ur n a ti o n, c o m pa ni es a n d i n d i v i d u als ne e d t o sa v e f u e l, a n d 

t o g o t o m ore ri v e r t r a f f i c i s o ne mea ns o f d oi n g s o. Ple a s e 

c o m p are t h e f u e l u se p e r t o n mil e o n t h e w ate r w it h tr u c k s o n 

la n d. I f f o r n o o t h e r r e a s o n, t h i s s h o ul d c a u se t h o u g ht t o be 

gi v e n t o p a rt o f t h e dis a d v a nta g e s o f a d d iti o n a l ta x e s a n d 

f e e s f o r ri v e r t r a n s o o rt a ti o n . He re we ha ve s p e nt 1 0 t o 2 0 

y e a r s t o b uil d u p ri v e r tr a n s p o rt a ti o n o n t h e O u a c hit a, a n d 

wit h a d d iti o n a l t a x e s, t h i s c o ul d ha ve a l l be e n i n v ai n . I t 

c e rt a i n l y c o ul d ke e p p r o s p e cti v e t o wi n g p e o ple fr o m g oi n g 

i n t o t h e b u si n e s s.

I t i s o ur h o p e t h a t t h i s w ill be r e - c o n si d e r e d a n d dis m is se d 

u n til s u c h ti m e t h a t t h e ec o n o m y ca n sta n d i t - a n d e v e n t h e n, 

I d o n ot t h i n k t h i s w o ul d be g o o d.

Y o ur s tr u l y

B. Gle n n Ha m

S u p e r v is o r o f La n d U tili z a ti o n 

C iti e s S e r v ic e O il C o m pa n y

cc H. K. T h atc h er
1 2 9

s e B a g Co m p a n y

E S T A B LI S H E D I 8 « !

C R O S S E T T , A R K A N S A S 7 1 6 3 5

Mr. H. T. T h atc h e r

O u a c hit a R i v e r V all e y A s s o c i a ti o n

2 1 4 Va n B ure n S t r e e t, N. W.

Ca m d e n, A r k a n s a s 7 1 7 0 1

D e ar Mr. T h atc h e r:

I t w o u l d b e t o o u r a d v a nta g e f o r o u r c o m pa n y t o u s e t h e O u a c hit a 

R i v e r i n s h i p p i n g b a g s f o r e x p o rt s hi p m e nt.

W it h t h e t a l k o f a r i v e r t a x b ei n g a p p li e d we w o u l d h a v e t o 

c o n ti n u e a s we h a v e i n t h e p a s t t o s h i p o u r b a g s b y r a i l t o Ne w 

O rle a n s f o r e x p o rt.

S i n c e r e l y ,

C H A SE B A G C O MP A N Y

A. W. G a r r e tt 

M a n a g er

A W G: ba w
1 3 0

T H E

E X C H A N G E B A N K & T R U S T C O M P A N Y

Ma y 1 4, 1 97 5

WI L LI A M W. T H O M A S

■ X K C U TI V K VI C S P R K KI D K M T

Mr. H. K. T h at c h er

O u a c h it a Ri v er V all e y A s s o cia ti o n

2 1 4 Va n B u re n N. W.

Ca m d e n, A r k a n sa s 7 1 7 0 1

De ar Mr. T h atc h er:

I n l o o ki n g o v er t h e pr o p o se d f e d e r al w at er w a y u s e r 

t a x, I fi n d t h a t t h i s ta x w o ul d be t o t a ll y p r o h i b it e d 

t o t h e w ate r tr a n s p o rt a ti o n t h a t we ha ve be e n l o o ki n g 

f o r w ar d t o i n t h i s a re a o n t h e O u a c h it a Ri v er.

I w o ul d li k e t o e n c o ura g e y o u t o u r g e n tl y o p p o se a n y 

s u r c h a r g e s o r u s e r ta x t h a t w ill d e str o y o ur h o pe s f o r 

a n y e q u it a b le mea ns o f i m pr o vi n g t h e ec o n o m y o f t h i s 

a r e a a n d o f t h e n ati o n b y t h e e n ac t m e n t o f a w at er w a y 

u s e r t a x.

I c o n c u r wit h G o v er n o r P r y o r's l e tt e r t o t h e P r e si d e nt 

t h a t t h i s p a rti c u l a r p r o p o s al s h o ul d be str o n gl y 

o p p o se d b y a ll p e o ple c o n n e cte d w it h u tili z a ti o n o f 

t h e ri v e r s as a mea n s o f w ate r tr a n s p o r ati o n.

I f I ca n be o f a n y f u rt h e r s e r v i c e t o y o u i n r e g a r d t o 

t h i s , p le a s e f e el f r e e t o c a ll o n me.

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D e a r C o l . G a l l o w a y :

I h a v e f o l l o w e d w i t h g r e a t i n t e r e s t t h e c o n t i n u i n g p r o g r e s s b e i n g 

m a d e o n d e v e l o p m e n t o f t h e n i n e - f o o t n a v i g a t i o n c h a n n e l o n t h e 

O u a c h i t a R i v e r . T h e r e c e n t g r o u n d b r e a k i n g c e r e m o n i e s a t F e l s e n t h a l 

s e r v e d a s a r e m i n d e r o f t h e i m p o r t a n t b e n e f i t s t h a t c a n b e b r o u g h t 

t o A s h l e y C o u n t y i n t e r m s o f i n d u s t r i a l g r o w t h .

A s h l e y C o u n t y i s f o r t u n a t e i n h a v i n g a g o o d e c o n o m i c b a l a n c e b e t w e e n 

i n d u s t r y a n d a g r i c u l t u r e . T h e e a s t e r n p a r t o f t h e c o u n t y i s r i c h i n 

f a r m l a n d a n d o u r i n d u s t r y i s l o c a t e d t o t h e w e s t t o w a r d t h e O u a c h i t a .

R i c e i s a m a j o r c r o p i n t h i s a r e a a n d o n e t h a t i s e x p o r t e d a b r o a d a s 

w e l l a s s h i p p e d t o p o i n t s w i t h i n t h e U . S . S o m e o f o u r e x i s t i n g i n d u s t r y 

i s p r e s e n t l y t r u c k i n g w o o d p r o d u c t s t o t h e M i s s i s s i p p i R i v e r p o r t c i t y 

o f G r e e n v i l l e f o r a c c e s s t o w a t e r t r a n s p o r t a t i o n a n d s u b s t a n t i a l q u a n t i t i e s 

o f f u e l o i l a r e t r u c k e d i n f r o m t h e r i v e r c i t i e s t o o f f s e t t h e d e c l i n i n g 

s u p p l y o f n a t u r a l g a s t h a t h a s s e r v e d f o r m a n y y e a r s a s o u r p r i n c i p a l 

e n e r g y s o u r c e .

S e v e r a l c i t i e s a l o n g t h e O u a c h i t a R i v e r a l r e a d y h a v e r i v e r p o r t f a c i l i t i e s 

t o a c c o m m o d a t e b a r g e s t h a t c a n t r a v e l t h e e x i s t i n g s i x - f o o t r i v e r c h a n n e l . 

W i t h t h e n i n e - f o o t c h a n n e l , t h e s e c o m m u n i t i e s w i l l s t a n d t o b e n e f i t m o r e 

a n d t h e e x i s t i n g p o r t s a n d d o c k s w i l l s e r v e t o a t t r a c t n e w a n d e x p a n d i n g 

i n d u s t r i e s .

A t t h i s t i m e , A s h l e y C o u n t y h a s n o d o c k i n g f a c i l i t i e s t o t a k e a d v a n t a g e 

o f t h e r i v e r t r a f f i c . T h e r e i s n o q u e s t i o n t h a t w a t e r t r a n s p o r t a t i o n i s 

t h e c h e a p e s t w a y t o m o v e l a r g e q u a n t i t i e s o f g o o d s . I n t h e y e a r s a h e a d , 

i t i s q u i t e a p p a r e n t t h a t w a t e r t r a n s p o r t a t i o n w i l l p l a y a n e v e n g r e a t e r 

r o l e i n m o v i n g r a w m a t e r i a l s . I k n o w t h e r e i s i n t e r e s t n o w i n m o v i n g 

p u l p w o o d , c h e m i c a l s a n d f u e l o i l u p t h e r i v e r . T h e r e i s a l s o t h e p o s s i ­

b i l i t y o f s h i p p i n g f i n i s h e d g o o d s d o w n r i v e r .

U n l e s s A s h l e y C o u n t y c a n o b t a i n a d e q u a t e p o r t f a c i l i t i e s , t h e n e w r i v e r 

p r o j e c t w i l l n o t b e a b l e t o s e r v e e x i s t i n g i n d u s t r y a n d a g r i c u l t u r e .

M o r e i m p o r t a n t , h o w e v e r , m y c o u n t y w i l l n o t b e i n a p o s i t i o n t o a t t r a c t 

n e w i n d u s t r y t h a t t h e i m p r o v e d t r a n s p o r t a t i o n s y s t e m w i l l b r i n g .
1 3 2

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P a g e 2

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W h i l e c o m p l e t i o n o f t h e n e w c h a n n e l i s s t i l l y e a r s a w a y f r o m c o m p l e t i o n , 

I s t r o n g l y b e l i e v e t h a t A s h l e y C o u n t y s l u s t b e g i n i m m e d i a t e p l a n n i n g i f 

w e a r e t o t a k e a d v a n t a g e o f t h i s O u a c h i t a p r o j e c t . T h i s i s w h e r e w e 

n e e d t h e h e l p o f y o u r o f f i c e . T h e C o r p s o f E n g i n e e r s h a s e x t e n s i v e 

e x p e r i e n c e i n t h e l o c a t i o n o f p o r t a n d d o c k f a c i l i t i e s , t h e p h y s i c a l 

n e e d s o f s u c h f a c i l i t i e s , a n d t h e t r a f f i c l e v e l s r e q u i r e d t o j u s t i f y 

c o n s t r u c t i o n o f a s m a l l p o r t . W o u l d i t b e p o s s i b l e f o r y o u r s t a f f t o 

s t u d y t h e c o n c e p t a n d f e a s i b i l i t y o f d e v e l o p i n g a s m a l l r i v e r p o r t o n 

t h e O u a c h i t a i n A s h l e y C o u n t y a n d s u g g e s t i n g p o t e n t i a l s i t e s f o r d o c k i n g 

f a c i l i t i e s t h a t w o u l d s e r v e t h e p u b l i c ?

I a m c o n v i n c e d t h a t t h i s w o u l d b e a v e r y w o r t h w h i l e e f f o r t o n t h e p a r t 

o f t h e C o r p s o f E n g i n e e r s t h a t w o u l d p e r m i t m y c o u n t y t o e n j o y t h e f u l l 

e c o n o m i c b e n e f i t s o f w a t e r t r a n s p o r t a t i o n o n t h e O u a c h i t a . P l e a s e l e t 

m e h e a r f r o m y o u a t y o u r e a r l i e s t c o n v e n i e n c e o n t h i s r e q u e s t .

V e r y t r u l y y o u r s ,

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H . K . T h a t c h e r , E x e c u t i v e S e c . O R V A , C a m d e n , A r k a n s a s 

V a s k e l l C a r t e r , P r e s i d e n t O R V A , C r o s s e t t , A r k a n s a s
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Re e v es R itc h i e ha s as ke d me t o re s p o n d t o y o ur l e tt e r 

o f Marc h 1 8, 1 9 7 5, i n w hi c h y o u r e q u e ste d o ur h el p i n p r e ­

v e nti n g t h e i m p o siti o n o f a $1 0 l o c k a g e f e e p e r t o n - m il e 

t o wi n g c h ar g e o n t h e i nla n d w at er w a y s o f A m eric a.

We s u p p o rt y o ur vi e w t h at t h i s s u rc h a r g e a t t h i s 

p oi n t i n ti m e i s n ot i n t h e b e st i n t e r e s t o f A m eric a o r 

t h e e l e c t ri c u t i l i t i e s c o m pa ni es o f t h e Mi d dl e S o ut h,

We ha ve be e n f oll o w i n g t h i s is s u e si n c e i t was b r o u g ht 

u p b y t h e P r e si d e nt i n N o ve m b er, 1 9 7 4, a n d ha ve be e n i n 

p e r s o n al c o nta ct w it h a ll o f o ur C o n g re s si o n al d el e g ati o n. 

I n a d d iti o n, we ha ve be e n w or ki n g as p a rt o f t h e A r k a n sa s 

B as i n A s s o cia ti o n i n d e v el o pi n g t h e i r p o siti v e p o siti o n 

a n d i n t h e i r p r e p a r ati o n s f o r g oi n g t o W as hi n g t o n l a t e 

n e xt m o nt h t o s t a t e , i n p e rs o n, t h e i r vie w s. ( I pla n t o 

be t h e r e p e r s o n a ll y .)

I n a d d iti o n, we a re p r o vi d i n g i n - p u t as r e q u e ste d 

fr o m t h e W at er R es o urc es C o n gre ss o f w hi c h we a re a me mb e r t h r o u g h t h e A r k a n sa s B a si n A s s o cia ti o n.
1 3 4

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W e f e e l t h a t t h e t y p e a c t i o n s w h i c h I h a v e o u t l i n e d 

a b o v e r e p r e s e n t t h e b e s t a p p r o a c h f o r o u r C o m p a n y t o f o l ­

l o w a t t h i s p o i n t i n t i m e . W e w i l l s t a n d r e a d y t o p r o ­

v i d e o t h e r a s s i s t a n c e i n t h e f u t u r e i f y o u d e e m t h i s 

a p p r o p r i a t e .

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S i n c e r e l y

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O u a c h it a R i v e r V a ll e y A s s o c i a ti o n 

2 1 4 V a n B u r e n, N. W.

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D e a r M r. T h a t c h e r:

I n r e s p o n s e t o y o u r r e q u e s t, t h i s l e t t e r i s t o g i v e y o u a

s t a t e m e n t o n t h e e f f e c t o n I n t e r n a t i o n a l P a p e r C o m pa n y a t t h i s l o c a ti o n 

o f t h e p r o p o s e d t a x o n c e r t a i n w a t e r s h i p m e n ts o n t h e O u a c h it a a n d 

r e l a t e d n a v i g a b l e c o n n e c ti o n s.

A s o u tli n e d o n t h e a tt a c h e d c o m p a ris o n o f p r e s e n t t r a n s p o r t a ti o n

c o s t s v s . t r a n s p o r t a ti o n c o s t s i f t h e p r o p o s e d w ate r w a y u s e r t a x i s 

i m p l e m e n te d, y o u w i l l n o t e t h a t o u r w ate r w a y t r a n s p o r t a ti o n c o s t s w o ul d 

b e i n c r e a s e d b y 6 8 %. S u c h a l a r g e i n c r e a s e w o ul d d i s c o u r a g e t h e u s e o f 

w a t e r t r a n s p o r t a ti o n a t a ti m e w h e n o u r c o m p a n y, w it h m a n y o t h e r s , h a s 

p l e d g e d t o t h e P r e s i d e n t o f t h e U n it e d S t a t e s a s t r i n g e n t e n e r g y 

c o n s e r v a ti o n p r o g r a m . A lt e r n a t e t r a n s p o r t a ti o n , e s p e c i a ll y o f h e a v y 

l o a d s , n o t o n l y r e q u i r e s a g r e a t a m o u nt o f a d d iti o n a l e n e r g y , b u t i s 

a l s o h i g h l y i n f l a t i o n a r y . F o r t h e s e r e a s o n s o u r g o v e r n m e nt s h o u l d b e 

d o i n g e v e r y t h i n g p o s s i b l e t o e n c o u r a g e r a t h e r t h a n d i s c o u r a g e t h e u s e 

o f w a t e r w a y s.

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r e v i e w e d a t o u r D i v i s i o n O f f i c e i n M o b il e a n d h a s t h e a p p r o v a l o f 

I n t e r n a t i o n a l P a p e r C o m pa n y.

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a p p r e c i a t e d .

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2 1 4 V a n B u r e n N . W .

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D e a r M r . T h a t c h e r :

W e , a l o n g w i t h o t h e r c o m p a n i e s i n t h i s a r e a , a r e c o n c e r n e d o v e r t h e 

m o v e m e n t t h a t i s o n i n W a s h i n g t o n t o i m p o s e s u r c h a r g e s u p o n r i v e r 

t r a n s p o r t a t i o n t h a t w e b e l i e v e i s v i t a l t o t h e e c o n o m y a n d g r o w t h 

o f t h i s r e g i o n o f o u r s t a t e . T h i s l e g i s l a t i o n w o u l d p r o b a b l y d e ­

s t r o y t h e b a d l y n e e d e d t r a n s p o r t a t i o n s y s t e m o n t h e O u a c h i t a R i v e r 

t h a t i s n o w b e g i n n i n g t o e m e r g e .

J - M P o u l t r y P a c k i n g C o m p a n y o p e r a t e s a c o m p l e t e l y i n t e g r a t e d p o u l ­

t r y o p e r a t i o n t h a t n o r m a l l y u s e s 2 , 2 0 0 t o n s o f f e e d i n g r e d i e n t s p e r 

w e e k . S i n c e t h i s o p e r a t i o n i s l o c a t e d a g r e a t d i s t a n c e f r o m t h e 

g r a i n p r o d u c i n g a r e a s , w e n e e d a l o w c o s t w a t e r m o v e m e n t o f g r a i n 

t o m a i n t a i n a c o m p e t i t i v e p o s i t i o n w i t h o t h e r p o u l t r y p r o d u c i n g 

a r e a s .

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p l e t i o n o f t h e 9 - f o o t c h a n n e l o n t h e O u a c h i t a R i v e r s o t h a t w e c o u l d 

o v e r c o m e s o m e o f t h e c o m p e t i t i v e d i s a d v a n t a g e s o f t h e p r e s e n t g r a i n 

f r e i g h t r a t e s . W e u r g e n t l y o p p o s e a n y s u r c h a r g e s t h a t w o u l d d e l a y 

o r d e s t r o y t h e l o n g - a w a i t e d r i v e r d e v e l o p m e n t g o a l s t h a t a r e s o v i t a l 

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D e ar " B 1 g D a d d y":

We ar e a m e m ber of t h e O u a c hit a Ri v e r V all e y A s s o ci ati o n a n d a s o u r r e pr es e nt a ti v e, we h o pe y o u ar e a cti v el y e n g ag e d i n fi g h ti n g t h e pr o p o s e d e x tr a 

c h ar g e s f o r ri v e r t o n n a g e. Y ou a n d I k no w t h at ri v e r t r a ffi c o n O u a c hit a 

h as n ot y et att ai n e d mu ch v ol u m e. A d diti o n al c o nfi s c a bl e m e a s ur e s d u ri n g 

t h e n e xt f e w y e ar s w he n a ni n e -f o ot c h a n n el b e co me s a r e ali t y w o ul d li m it 

t h e b u si n e s s d e v el o p m e nt e x p e ct e d t o r e p a y t h e l a r g e e x p e n dit u r e s n e c e s s ar y 

t o m a ke p o s si bl e a v ol u m e of i n d u stri al t r a ffi c .

We i n Cr o s s ett ar e l o o ki n g f or w ar d t o t h e d a y w he n o u r l o c al i n d u stri al 

pl a n t s w ill ma ke b ett e r u s e of t h e O u a c hit a Ri v er. I t c o ul d b e a b o o st 

t o t h e e c o n o mi c d e v el o p m e nt n e ed e d i n t h i s s o ut h Ar k a n s a s ar e a. We h o p e 

y o ur li st e n e r s a n d t h o s e i n a ut h o rit y w ill f or e g o pr or at a c h ar g e s o n 

ri v e r t r a ffi c .

Y o ur s v e r y x si n c er el y

J. B. P o se y

Vi c e C h air m a n of t h e B o ar d

J B P/ dl b

c c: Mr. V a s k ell C art e r 

Cr o s s ett Di vi si o n 

G e o r gi a - P a cifi c C o r p or ati o n 

C r o s s ett, A R 7 1 6 3 5
1 3 9

Q U E E N CI T Y O F T H E O U A C HI T A'

C H A M B E R O F C O M M E R C E

P O B O X 9 9 • T Et E P H O N E A R E A C O O E 5 0, + 8 3 6- 6 4 2 6 • C A M D E N. A R K A N S A S 7, 7 0,

M a y 8, 1 9 7 5

S e n at or Mi ke G ra v el, C h air m a n 

S e n at e S u bc o m mitte e o n W at er R e s o u rc e s 

R o o m 4 2 0 4 D ir k se n B uil di n g

W as hi n gt o n, D. C. 2 0 5 1 0 

D e ar S e n at or G ra v el:

C a m de n, A r k a n s a s, h a s b ee n at t h e he a d of c o m m e rc ia l n a vig ati o n o n t h e O u ac hita R i v er o n a t o ll fre e b a sis si n c e 1 7 8 3. We ha ve 

ha d a y e a r r o u n d, sla c k - w ate r l o c k a n d da m n a v i g ati o n s y ste m f o r t h e 

la st 5 1 y e a r s.

C o m m erc ia l n a v i g ati o n is a b a sic s u p p o rt t o C a m d e n's R e g i o na l 

ec o n o m y. T h e P r e si d e n t's p r o p o se d p e r t o n m il e ta x o n ri v e r ca r g o, 

l o c k a g e fe e, a n d f u el ta x a r e c o n fi sc at o r y a n d w o ul d m a k e t h e O ua c hit a 

Ri v er a tr a n s p o rt ati o n li a bilit y.

S e n at or G ra v el, y o u a n d y o u r W at er R e s o u rc e s S u b c o m mitte e 

a r e u r g e d t o o p p o se a n d v ote a g ai n st a n y t y p e of u s e r c h a r g e s t h at will 

c u rta il o r d e str o y c o m m e rc ia l n a v i g ati o n o n t h e O u ac hita Ri v er i n 

A r k a n s a s a n d L o uisia n a.

R e s p e ctf ull y s u b m itte d f o r t h e Vic k s b ur g, 

M is sis si p pi, P u bli c H ea ri n g r e c o r d s 

M a y 1 6, 1 9 7 5

5 4- 2 3 9 0 - 7 5 - 1 0
1 4 0

O S S E T T P O R R R T R T C A PI T A L D O T H « W O R L D

Ma y 8, 1 9 7 5

Mr. H. K. T h atc h e r

O u a c hit a R i v e r V all e y A s s o ci ati o n

2 1 4 Va n B u re n, N. W.

Ca m d e n, A R 7 1 7 0 1

D ea r Mr. T h atc h e r:

L et i t be k n o w n t h a t t h e C r o s s e tt C h a m ber o f C o m merc e o b j e ct s t o a n y t a x 

o n O u a c hit a R i v e r t r a f f i c . We f e e l t h a t a ta x o n O u a c hit a R i v e r t r a f f i c 

w o ul d g r e a tl y re d u c e t h e p o t e n ti a l o f t h e F e l s e n t h a l P r o j e c t, hi n d e r 

C r o s s e tt's atte m p t t o d e v el o p a p o rt f a c i l i t y o n t h e O u a c hit a R i v e r 

a n d a d v e r s el y a f f e c t t h e ec o n o m ic gr o wt h o f o u r a r e a.

S i n c e r e l y ,

A. W. G a r r e tt 

P r e si d e n t

A W G/tf
1 41

LI O N OI L C O M P A N Y

LI O N OI L B UI L DI N G

E L D O R A D O. A R K A N S A S 7 1 7 3 0

( 5 0 1) 8 6 3- 3 1 1 1

P U B LI C R E L A TI O N S

M a y 1 4 , 1 9 7 5

M r . H . K . T h a t c h e r

O u a c h i t a R i v e r V a l l e y A s s o c i a t i o n

2 1 4 V a n B u r e n N . W .

C a m d e n , A r k a n s a s 7 1 7 0 1

D e a r M r . T h a t c h e r :

W e c a n h a r d l y b e l i e v e t h a t a m o v e m e n t i s o n i n W a s h i n g t o n 

t o i m p o s e s u r c h a r g e s u p o n r i v e r t r a n s p o r t a t i o n w h e n w e 

s h o u l d b e d o i n g a l l w e c a n t o e n c o u r a g e l o w c o s t w a t e r 

m o v e m e n t o f g o o d s t o f i g h t i n f l a t i o n . T h i s m o v e c o u l d 

d e s t r o y t h e e m e r g i n g t r a n s p o r t a t i o n s y s t e m o n t h e O u a c h i t a 

R i v e r s o b a d l y n e e d e d t o i m p r o v e o u r e c o n o m y i n t h i s 

d e p r e s s e d a r e a .

L i o n O i l C o m p a n y o p e r a t e s a 4 7 , 5 0 0 b b l . - p e r - d a y i n l a n d 

r e f i n e r y a n d , a s s u c h , i s a t a c o m p e t i t i v e d i s a d v a n t a g e 

w i t h c o a s t a l r e f i n e r i e s t h a t e n j o y l o w - c o s t w a t e r m o v e ­

m e n t o f c r u d e o i l a n d p e t r o l e u m p r o d u c t s .

W e h a v e b e e n l o o k i n g f o r w a r d • f o r m a n y y e a r s t o t h e c o m p l e t i o n 

o f t h e n i n e - f o o t c h a n n e l o n t h e O u a c h i t a R i v e r s o t h a t w e 

c o u l d o v e r c o m e s o m e o f t h e d i s a d v a n t a g e s o f o u r i n l a n d 

l o c a t i o n . N o w t h a t w e a r e n e a r o u r r i v e r d e v e l o p m e n t g o a l s , 

w e s i n c e r e l y a n d u r g e n t l y o p p o s e a n y s u r c h a r g e s o r u s e r 

t a x e s t h a t w i l l d e s t r o y o u r h o p e s f o r a n y e q u i t a b l e m e a n s 

o f i m p r o v i n g t h e e c o n o m y o f t h i s a r e a a n d o f t h e n a t i o n .

P a u l W o r s h a m

M a n a g e r o f W a t e r T e r m i n a l 

O p e r a t i o n s

P W : a j
1 4 2

Se nat or G r a v e l . Yo u ma y pr oce e d, sir.

S T A T E M E N T O F C A L VI N T. W A T T S, E X E C U TI V E DI R E C T O R, R E D 

RI V E R V A L L E Y A S S O CI A TI O N

Mr. W a t t s . T ha n k y o u, M r. C h air m a n. I ’ m C al vi n W att s, e xec uti ve 

dire ct or of t he Re d Ri v er Valle y Ass o ciati o n, wit h offices i n S hre v ep ort, La.

Ge n eral K oisc h me nti o n e d t o y o u t he eff ort s we ha v e p ut f ort h i n 

t he Re d Ri v er Valle y’s i nla n d na vi gati o n pr oject s. O ur ass o ciati o n is 

5 0 yea rs ol d t his year, a n d it was f or me d wit h t he s pecific o bjecti v e 

of re st ori n g na vi gati o n of t he Re d Ri v er fr o m its m o ut h pa st Ale xa n ­

dri a t o S hr e ve p ort. Of c o urse, o ver t he yea rs t he o bj ecti ves of o ur 

or g a niz ati o n ha v e br oa de n e d t o i ncl u d e all f or ms of de v el o p m e nt of 

water res o urces of t he basi n i n t he St ate s of Ar ka nsas, L o uisia na, 

O kl a h o m a, a n d Te xa s.

I mi g ht s a y t h at t o p ut na vi gati o n i n its pr o per pe rs pe cti v e, it m ust 

be r ec o g ni ze d as t he l o gical e xte nsi o n of o ur f orei g n c o m merce, as well 

as a n i m p o rta nt li n k i n o ur d o m estic tra ns p o rtati o n s yst e m. T o da y 

a bar g e l oa d e d i n t he he artla n d of A me rica ca n be tra ns p o rte d 

1, 0 0 0 miles o n o ur wat er w a ys t o a g ulf c oa st p ort. T he re t he bar g e 

a n d its car g o is p ut o n a s hi p a n d se nt o vers eas, a n d w he n it get s t o 

E ur o pe, of c o urs e, t he b ar ge a n d its l o a d is u nl oa d e d a n d is tra ns p o rte d 

o ver t he ca nal s yste m all o ver E ur o pe, a n d t h at’s bee n a g reat sa vi n gs 

i n tra ns p o rtati o n c osts, a n d I mi g ht sa y, t his sa vi n gs ca n be t he 

det er mi ni n g fact or i n a hi g hl y c o m petiti v e m ar ket as t o w hic h nati o n 

ca n sell its pr o d ucts.

Her e i n o ur c o u ntr y, bac k i n 1 8 0 8, t he Sec ret ar y of t he T re as ur y at 

t h at ti me, Al bert Gallati n, i n a re p ort t o C o n gr ess, pr o p ose d a farreac hi n g s yst e m of na vi g ati o n, w hic h he sai d w o ul d t e n d t o “st re n gt he n 

a n d pe r pet uate t he u ni o n of a y o u n g nati o n. ” Si nce t h at ti me we ha v e 

c o n str u cte d 2 5, 0 0 0 miles of i nla n d water w a ys i n o ur c o u ntr y t h at’s 

ser vi n g t he Nati o n ver y well t o t he e xte nt t h at it ’s b uilt.

T he q ue sti o n fre q ue ntl y is as ke d: “ H a v e n ’t we d o ne e n o u g h?” 

T hi s ti me t he a ns w er m u st be i n t he ne g ati v e. T he re are still la n d ­

l oc ke d p orti o n s of t he c o u ntr y t h at ha v e n ot ha d t he o p p o rt u nit y t o 

de vel o p t heir p ot e ntial. I n ot h er area s, t he p res e nt f acilitie s a re t otall y 

i na de q uat e t o ha n dle e xisti n g c o m m erce. T o gi ve y o u a n e xa m ple, 

t he O hi o Ri v er pr oject, it was j ustifie d at t he ti me it was c o nstr u cte d 

o n t he basis of c arr yi n g 1 9 milli o n t o n s of frei g ht a n n u all y. I n 1 9 7 3, it 

carri e d 1 6 0 milli o n t o ns, a n d t h at water w a y, of c o urse, is bei n g 

re vise d wit h ne w l oc ks a n d da m s t o acc o m m o dat e t he hea v y l oa d of 

traffic. Wit h o ut t h ose l oc ks a n d da m s, t he ne w o nes t h at are bei n g 

b uilt a n d t he re n o vati o n of t he s yste m, t he y c o ul d n’t ha n dle t he 

traffic t h at it is ha n dli n g at t he pre se nt ti me.

Pa ul A da ms me nti o ne d t o y o u t he be n efits of t he Ar k a ns as Ri v er 

pr oject a n d w h at is g oi n g o n i n t h at s yste m. I w o ul d li ke t o c o m me nt 

o n o ne pr oject i n t he s o ut her n pa rt of o ur c o u ntr y. Y o u see t he 

G ulf I nt rac oa stal W ate r w a y, w hic h Ge neral K ois c h me nti o n e d, w hic h 

was ha n dli n g a 1 0 0 milli o n t o ns. D o y o u k n o w at t he ti me t h at 

pr oject was a ut h orize d i n 1 9 4 6, it was pr ojecte d t h at it w o ul d o nl y 

nee d t o ha n dle 5 milli o n t o ns of traffic? At its pre se nt t o n na g e, it is 

ha n dli n g o ver 2 0 ti me s t he a m o u nt t h at was pr ojecte d bac k i n 1 9 4 6 

at t he ti me of a ut h o riz ati o n.
1 4 3

Of c o urse, we ha ve eff orts bei n g ma de at t he prese nt ti me t o 

re n o vate t hat water wa y, wi de n a n d dee pe n it t o w here it ca n ha n dle 

t he great l oa d of traffic t hat we are ha vi n g acr oss t he s o ut her n parts 

of Fl ori da, Ala ba ma, Mississi p pi, L o uisia na, a n d Te xas o n t o t he 

Me xica n b or der.

T hese ec o no mic de vel o p me nts t hat y o u ha ve hear d a b o ut i n t he 

Ar ka nsas a n d t he ot her maj or ri ver basi ns t hat ha ve f oll o we d i mpr o ve me nts ha ve raise d o ur h o pes a n d as pirati o ns f or t he Re d Ri ver 

Valley of Ar ka nsas, L o uisia na, O kla h o ma, a n d Te xas.

Mr. C hair ma n, t he heart of t he Re d Ri ver pr oject is t he na vi gati o n 

c ha n nel w hic h i n its i nitial sta ge will rest ore na vi gati o n t o S hre ve p ort, 

La., a n d e ve nt uall y t o Dai n gerfiel d, Te x.

O n y o ur ma p t he blac k das h li ne ta ki n g off a b o ve Bat o n R o u ge 

a n d g oi n g u p n ort h west of S hre ve p ort is t he Re d Ri ver p orti o n. 

T he n t here is a 7 0- mile e xte nsi o n t o t he left, w hic h is n ot s h o wn, 

t hat w o ul d g o o n t o Dai n gerfiel d, Te x. T he pri mar y be neficiar y of 

t hat le g w o ul d be L o ne Star Steel, l ocate d at Dai n gerfiel d, Te x.

T he Re d Ri ver i n its prese nt state is ver y erratic a n d is s u bject 

t o wi de fl uct uati o ns i n sta ge a n d mea n deri n g beca use of its fria ble 

s oils.

T he a ut h orize d pr oject i n its i nitial sta ge, w hic h is n o w u n d er c o nstr ucti o n, pr o vi des f or t he c o nstr ucti o n of fi ve l oc ks a n d da ms f or 

S hre ve p ort wit h pr o per ali ne me nt mai ntai ne d b y ba n k a n d c ha n nel 

sta bilizati o n w or ks. T he latt er is a ver y i m p orta nt a dj u n ct t o t he 

fl oo d pr otecti o n pr o vi de d t he ur ba n a n d a gric ult ural valle y la n d as 

well as pr otecti n g railr oa ds, hi g h wa ys, i n d ustries, defe nse i nstallati o ns, 

a n d maj or pi peli ne cr ossi n gs. As 1 me nti o ne d, t he Re d Ri ver is a 

mea n deri n g strea m re q uiri n g maj or le vee set bac ks. It is n ot u n us ual 

f or s o me areas t o l ose as m uc h as 6 0 feet of ri ver ba n k i n a s pri n g fl o o d. 

Ba n k ca vi n g is res p o nsible f or t hree maj or l osses. L ocall y, t here are 

bri d ge re place me nts o n l ocal, State, a n d Fe deral hi g h wa ys a n d t he l oss 

of t h o usa n ds of acres of ric h a gric ult ural la n d nee de d f or t he pr o d ucti o n of f o o d a n d fi bers. O n t he Re d Ri ver we ha ve 3, 0 00 acres of 

a gric ult ural la n d a year ca vi n g i nt o t hat ri ver g oi n g d o w nstrea m as 

silt pr o d uci n g 3 3 milli o n t o ns of silt a ye ar at t he m o ut h, w hic h g oes 

i nt o t his basi n t here creati n g t he pr o ble ms t hat y o u ha ve i n t hat basi n, 

w hich I’ m s ure y o u ha ve hear d or will hear a b o ut i n t he c o urse of 

t hese heari n gs. D o w nstrea m l osses are t w of ol d, strea m p oll uti o n 

a n d se di me ntati o n as vel ocit y of fl oo d fl o ws decrease, necessitati n g 

i ncrease d mai nte na nce of na vi gati o n c ha n nels.

D ue t o c o nti n ui n g de vel o p me nts i n t he basi n a n d t he i ncreasi n g 

i m p orta nce of f o od a n d fi ber- pr o d uci n g la n ds, le vee set bac ks are m ore 

fre q ue ntl y bec o min g i m practical or u nec o no mical. T he c ha n nel 

sta bilizati o n p orti o n of t he na vi gati o n pr oject will c o nfi ne t he ri ver 

t o its desire d ali ne me nt a n d eli mi nate t he nee d f or t hese c ostl y le vee 

set bac ks.

T he a vera ge sa vi n gs i n tra ns p ortati o n c osts base d o n a n a vera ge 

a n n ual m o ve me nt of 8, 6 9 0, 0 0 0 t o ns is pr ojecte d t o $ 1 8,2 7 2, 0 0 0, wit h 

t otal a n n ual pr oject be nefits i n e xcess of $ 33 millio n, i ncl u di n g $ 5 

millio n i n area re de vel o p me nt be nefits.

T his is t he p orti o n t hat is n o w u n der c o nstr ucti o n fr o m t h e m o ut h 

t o S hre ve p ort t hat I’ m referri n g t o.

We belie ve t he esti mate d be nefits are c o nser vati ve. T he p ote ntial 

water wa y traffic is s u bsta ntiall y greater t ha n t he c or ps esti mate, a n d
1 4 4

i n vie w of t he maj or i ncr ease s i n f uel c osts si nce t he last c o m plete 

ec o n o mic a nal ysi s, t he pr ojecte d sa vi n gs per t o n of traffic m o v e d o n 

t he water wa y are t o o l o w.

I ’ m m e nti o ni n g t hes e allie d feat ur es of t he pr oject t o let y o u k n o w 

t h at t his —t h at t he be nefits of t his pr oje ct as well a s ot he r n a vi gati o n al 

pr ojects o ve r t he c o u ntr y are n ot e ntirel y na vi gati o nal. T h e be nefits 

o n t hi s pr oject — o v er half t he be ne fits g o t o t he pr otecti o n of t he 

a djac e nt l a n d s, ba n k ca vi n gs a n d b e nefits s uc h as t h at s o t h at a ct u all y 

a b o ut half t he be nefits of t hi s pr oje ct w o ul d be e x hi biti ve t o na vigati o n, w he reas t he ot h er be n efits w o ul d be t o t he allie d p ur p os es of 

t he pr o gra m.

N o ot her Fe der al pr o gra m is s u bje ct t o t he stri n ge nt ec o n o mic 

e v al u ati o n a p plie d t o water res o urce pr oject s. T h eir j ustifi cati o n 

m u st be de m o nst rat e d o n t he basi s of ec o n o mi c efficie nc y. I n t he 

decisi o n ma ki n g pr ocess, c o n si de rati o n s h o ul d be gi ve n t o t he c o ntrib uti o n s uc h pr ojects ma k e t o t he ac hie v e m e nt of n ati o n al g oals.

We s h o ul d e val uate re gi o nal be nefits, s uc h as t he p ote ntial eac h 

water wa y pr oje ct has t o t he cre ati o n of j o b o p p ort u nitie s, n ot o nl y 

d uri n g c o n str ucti o n, b u t als o per m a n e nt j o bs res ulti n g fr o m de v elo p m e nt s ma de p ossi ble b y t he pr oject. A maj or c o ntri b uti o n t o t he 

s ol uti o n of u n e m pl o y m e nt pr o ble m s is t he cre ati o n of a cli m ate 

w hic h will attr ac t i n d u str y t hr o u g h l o w-c o st tra ns p o rtati o n t o a n 

are a ric h i n ra w mat erials, pr otecte d fr o m t he ra va ges of fl o o ds, a n d 

ha vi n g a n a m ple s u p pl y of pr oce ssi n g wat er, as well as recr eati o n al 

p ossi bilities.

I n c o n si deri n g t he f ut ure r ole of G o v er n m e nt i n i nl a n d na vi gati o n, 

it is a p pr o p riate t o c o nsi der t he pr ojecti o n s of f ut ur e frei g ht m o v eme nts. I n 1 9 7 0 t he D e p art m e nt of Tr a n s p ortati o n’s pr ojecti o n s f or 

t he 2 0 ye ars e n di n g i n 1 9 9 0 is a 6 5- p erc e nt i n creas e i n frei g ht carria ge. 

I n or d er t o sal v a ge t he maj or p orti o n of o ur e xisti n g rail s yst e m s, 

t here will ha v e t o be a maj or i nf u si o n of Fe d eral f u n d s, pr o ba bl y i n 

t he or d er of te n s of billi o ns of d oll ars.

E x pa n si o n of tra ns p o rtati o n facilities m u st c o nsi der all m o d es of 

tra ns p o rt, ta ki n g i nt o c o n si de rati o n t he u ni q ue a d va nta ge s of eac h. 

Pr o visi o n s h o ul d be ma d e f or t he i nt err elati o n of c o m peti n g m o des, 

a n d t he e xt e nsi o n of j oi nt m o ve m e nt s of frei g ht.

I n its 1 9 7 2 Nati o nal Tr a n s p ortati o n Re p ort, t he U. S. D e p art m e nt 

of Tr a n s p ortati o n pr ojects a n i nc re m e nt al ca pital re q uir e m e nt of 

U. S. railr o a d s t o 1 9 8 0 of a b o ut $ 3 2. 3 0 f or eac h 1, 0 0 0 t o n- mile s of 

railr oa d frei g ht pr ojecte d f or t h at ye ar, e xcl usi v e of p u blic f u n ds f or 

rail r oa d assi sta n ce. B y c o ntr ast, t he c orr es p o n di n g fi g ure f or water 

carria g e is o nl y $ 6. 8 4. T he se esti m ate s were pre par e d pri or t o t he 

oil e m b ar g o a n d o ur pla n s f or esse ntial e ner g y self-s ufficie nc y.

T o da y we face a ver y seri o us e ner g y a n d bal a nc e- of- p a y m e nt s 

pr o ble m. Wit h a f o urf ol d i ncr ease i n t he price of f orei g n oil t o a n 

a vera ge of a b o ut $ 1 2 a barrel, o ur ec o n o mic sta bilit y is e n d a n g ere d 

u nless we ca n ac hie ve esse ntial e ner g y self-s ufficie nc y. Pr oje ct I n de ­

pe n de n ce o utli ne d vari o us o pti o n s t o ac hie ve t h at g oal. I n t he ne ar 

ter m, i ncr ease d e x pl orati o n s f or d o m estic oil a n d gas h o p ef ull y will 

c o m pe n sate f or de crease d pr o d u cti o n fr o m ol d wells. Pe n di n g de v el o p ­

me nt of ec o n o mi cal mea n s of pr o d uci n g s olar a n d ge ot her mal e ner g y, 

we m ust d e pe n d o n c oal a n d fissi o n p o we r r eact or s t o me et o ur e ner g y 

nee ds. T h ere is c o nsi dera ble o p p ositi o n t o n uclear p o wer, as y o u well
1 4 5

k n o w. J u st la st We d ne s da y, t he N u cle ar Re g ulat or y C o m missi o n 

a n n o u nc e d a del a y of 3 ye ars i n t heir decisi o n o n pl ut o ni u m rec y cle. 

At lea st 1 5 St ate s are c o nsi deri n g s o me s o rt of n u cle ar m o rat ori u m, 

a n d it is q uite p ossi ble t h at t his sessi o n si milar le gi slati o n will be 

c o nsi d ere d i n b ot h t he H o u se a n d t he Se nat e. T his lea ve s o nl y t he 

e xercise of o ur c oal o pti o n as a d o m estic s o urc e of e ner g y f or me eti n g 

o ur i ncr easi n g nee ds w hile r e d u ci n g o ur de p e n d e nce o n f orei g n s u p plies.

T h e F E A fi n ds t h at bet w ee n n o w a n d 1 9 8 5 we will ha v e t o d o u ble 

o ur c oal pr o d u cti o n. I n heari n g s last ye ar bef or e t he C o m mitte e o n 

I nterstate a n d F or ei g n C o m mer ce i n t he H o u se of Re pre se ntati ve s, 

t he pre si d e nt of t he Nati o nal C oal Ass o ciati o n cite d a st u d y b y t he 

Nati o n al Aca de m y of E n gi n eeri n g. I w o ul d li ke t o cite w h at t h at 

st u d y vi s ualiz e d as t he tra ns p o rtati o n c o m p o n e nt s of t he c oal deli ver y 

s yst e m re q uire d f or a d o u bli n g of o ur c oal pr o d ucti o n.

First, we w o ul d nee d 6 0 ne w 2- milli o n-t o n- p er- y ear easter n rail - 

bar ge s yst e m s of 1 0 0 t o 5 0 0 miles eac h; we w o ul d nee d 7 0 ne w 3- 

milli o n -t o n - per - yea r wester n rail- bar ge s yste m s of 1, 0 0 0 t o 1, 2 0 0 

miles eac h; 4 ne w 2 5- milli o n -t o n - per - yea r sl u rr y pi peli nes of 1, 0 0 0 

miles eac h; 2 ne w 2. 5- billi o n-c u bic -feet- per- da y gas pi peli nes of 

1, 0 0 0 miles eac h; 8, 0 0 0 n e w rail r oa d l oc o m oti v es; 1 5 0, 0 0 0 ne w g o n d ola 

a n d h o p per cars.

T h e diffic ult y of me eti n g t his nee d is ill ustrate d b y t he fact t h at 

i n d ust rial s o urce s esti m ate t he ma xi m u m n u m b er of cars t h at c o ul d 

be b uilt i n e xisti n g facilitie s is a b o ut 7 0, 0 0 0 pe r yea r. I n or d er t o 

re pl ace w or n o ut cars a n d fill t he c u rre nt bac kl o g of s o me 9 0, 0 0 0 car s 

will re q uire s u bsta ntiall y all of t he c u rre nt i n d ustri al ca p acit y, t h us 

re q uiri n g ne w pl a nt facilities t o pr o vi de t he re q uir e m e nts of t he 

i ncre ase d c oal pr o d ucti o n.

T h e l o gistic s of t hi s c o u ntr y ’s use of its nat u ral res o urc es will 

re q uir e s o me re o rie ntati o n d uri n g t he ne xt 2 5 yea rs. T his i ne vita bl y 

will call f or a re ne wal a n d i ncre ase d e m p ha sis o n i nl a n d water wa y 

de v el o p m e nt a n d utiliz ati o n.

T h e t he or y t h at G o ver n m e nt facilities a n d ser vi ces s h o ul d be pai d 

f or b y t he users rat h er t h a n t he ge neral ta x pa ye r is dec e pti vel y 

si m ple. W he n a p plie d i n pra ctic e, we fi n d t h at t he be nefits are wi del y 

dis perse d. Lar g e t o n na g es of ri v er traffic are oil a n d c oal desti n e d f or 

p u blic utilities t h at are re g ulate d. I n s uc h c ases, tra ns p o rtati o n s a vi n gs 

are passe d o n dir ectl y t o t he ulti m ate c o ns u mer. A n ot h er m aj o r 

se g me nt of ri ve r traffi c c o nsists of oil, c oal, a n d fertilize rs f or a gric ult ur al p ur p oses as well as t he s hi p m e nt of gr ai n s fr o m far m s. Far m ers 

as a class ha v e pa rti ci p at e d t he lea st i n t he ec o n o mic gai ns ot her 

se g me nts of o ur s ociet y h a ve e nj o y e d. If net i nc o m e is f u rt h er re d u ce d, 

it will dri v e far m ers a n d t heir fa mili es off t he far ms a n d i nt o t he 

citie s t o a g gra vat e t h eir u n e m pl o y m e nt pr o ble m s.

I n 1 9 7 3, ri ve r bar g es carrie d o ver 1.1 milli o n b us hels of f ar m cr o ps. 

T h e ma r keti n g of far m cr o ps, tra de d as t he y are i n o pe n ma r kets, is 

i nt e ns el y c o m petiti v e, s o t h at all t he tra ns p o rtati o n sa vi n gs are 

tra nslat e d i nt o hi g her i nc o m e at t he far m. I n ge n eral, t he be n efit s 

of l o w- c ost tra ns p o rtati o n will be pass e d o n fr o m ra w material pr od uc ers t hr o u g h t he v ari o u s la yer s oi fa b ric ati o n t o t he ulti mate d o me stic c o ns u mer or f or e x p ort.

T heref o re, we c o n si der it u n wise t o place a user c har ge, l oc k fee, o r 

f uel ta x o n wat er w a ys. T his is pa rti c ularl y i m p o rt a nt at t his ti m e w he n 

t he c o u ntr y nee d s t he l o w- c ost tra ns p o rtati o n i n or d er t o s ucc essf ull y
1 4 6

c o m pete i n f orei g n mar kets. A n d c o m pet e we m ust, if we are t o a v oi d 

a seri o us deficit i n o ur bala nc e of p a y m e nt s. A us er ta x, if s m all, w o ul d 

ha v e little effect o n t he Fe der al deficit. If lar ge, it c o ul d seri o usl y 

cri p ple mar gi nal bar geli nes a n d c o ul d res ult i n irr e p ara ble da m a gi n g 

s pi n offs t o t he ec o n o m y as a w h ole.

It s h o ul d be p oi nte d o ut t h at Fe d eral assi sta n ce is als o bei n g 

pr o vi de d ot he r f or ms of tra ns p o rtati o n, i ncl u di n g ur ba n mas s tra nsit, 

hi g h wa ys, a n d air p ort s, as well as a gr o wi n g Fe d eral pr o gra m of ai d 

t o t he railr oa ds. Si nce Fe d eral s u p p ort f or t hes e f or ms of tra ns p o rta ­

ti o n assista nce is pres e nte d as n ati o n al pr o g ra m s, t he y are n ot referre d 

t o as “ p or k. ” Alt h o u g h t he i n di vi d ual se g m e nts of o ur i nla n d 

water wa y s yste m are i n di vi d u all y j ustifie d, it s h o ul d be e m p hasi ze d 

t h at t he e xisti n g s yst e ms ser v e 3 8 St ate s wit h 9 5 perce nt of o ur 

p o p ulati o n.

I n c o ncl usi o n, I w o ul d li ke t o p oi nt o ut t h at i n d ust rial pl a nts 

l ocate d o n water w a ys bri n g i n b ul k f uels a n d ra w material s b y bar ge, 

a n d t he y s hi p hi g h val u e pr o d ucts b ot h i n a n d o ut b y rail a n d tr u c k. A 

st u d y of t he pri nci pal rail r oa ds t h at parallel i nla n d na vi g ati o n r o utes 

s h o ws t h at t heir i ncrea ses i n frei g ht carria ge, as well as re v e n u es, 

fr o m 1 9 6 0 t o 1 9 7 0 a b o ut d o u bles t h at of all ot h er class I rail r oa ds.

T h ere is n o q ue sti o n b ut w h at o ur nati o n al tra ns p o rtati o n p olic y 

de m a n d s t h at we ha ve a he alt h y, pr o fit m a ki n g railr o a d i n d ustr y. I n 

a ntici pati o n of ra pi d c o m pleti o n b y t he C o n gress of t he nece ssar y 

a ut h o riz ati o n f or a pr o gra m of assi sta n ce t o railr oa ds, t he Se n ate 

i nse rte d i n t he E m er ge nc y E m pl o y m e nt Act, 1 9 7 5, t he s u m of $ 7 0 0 

milli o n t o i niti at e t he pr o gra m. T he se f u n d s are nee d e d, b u t i n o ur 

eff orts t o re h a bilitat e t he railr oa d s, we ca n n ot aff or d t o ne glect t he 

e xte nsi o n a n d m o der nizati o n of o ur i nla n d water w a y s yste m.

We wis h t o e x pres s o u r si n cere t ha n k s, Mr. C h air ma n, a n d a p p reciati o n f or all otti n g us t he ti me t o d a y t o pre se nt s o m e of o ur vie ws o n t he 

Fe d eral pr o gra m of i nla n d na vi g ati o n, its c o ntri b uti o n t o t he o verall 

tra ns p o rtati o n nee ds of o ur Nati o n, a n d m o st i m p o rta ntl y, its r ole 

i n re gi o nal de v el o p me nt.

I ’ll file a c o m plet e st at e m e nt wit h t he staff f or t he rec or d.

Se nat or G r a v e l . Mr. W att s, t h at’s a ver y, ver y fi ne state m e nt y o u 

ha v e.

Mr. W a t t s . T h a n k y o u, sir.

Se nat or G r a v e l . All ri g ht, sir.

S T A T E M E N T O F B. F. S MI T H. E X E C U TI V E VI C E P R E SI D E N T, 

D E L T A C O U N CI L

Mr. S mi t h . Mr. C h air ma n, m y na m e is B. F. S mit h. I ’ m e xec uti ve 

vice pr esi de nt of Delta C o u n cil. It ’s a n are a ec o n o mic de v el o p m e nt 

or g a ni zati o n re pres e nti n g t he 1 8 delta a n d pa rt- delta c o u ntie s of 

Mississi p pi. N o pa rt of t he Nati o n has a gr eater i ntere st i n a n d 

c o nc er n wit h water a n d water res o urce s t h a n t hi s Yaz o o- Mi ssissi p pi 

Delta. O ur c o ncer n is b ot h wit h t he p ositi ve a n d t he ne gati ve as p ects 

of w ate r.

O n t he p ositi ve si de, we f ull y u n derst a n d t h at water is o ne of o ur 

m o st preci o us a n d nece ssar y c o m m o dities. It ’s esse ntial f or life itself. 

Wit h o ut w ate r, pe o ple ca n n ot li ve, pla nts c a n n ot gr o w, a n d we ca n n ot 

pr o d uc e f o o d, fee d, a n d fi ber t h at is esse ntial f or h u ma n welfare.
1 4

O n t he ne gati ve si de, h o we ver, wa ter m ust be c o ntr olle d t o pr otect 

pr o d ucti ve la n d, cities, a n d pe o ple fr o m de vastati n g fl o ods a n d 

o verfl o ws. N o w, I realize t hat t hese heari n gs are n ot c o ncer ned 

wit h t his p hase of o ur water res o urces, b ut I ca n n ot o verl o o k t he 

o p p ort u nit y t o c o m me nd t he U. S. Ar m y E n gi neers f or t heir effecti ve 

ser vices. A rece nt e xa m ple of t he val ue of o nl y o ne part of t he ci vil 

w or ks pr o gra m res ulte d fr o m t he Mississi p pi Ri ver fl oo d of 1 97 3 

w he n ei g ht States b or deri n g t he l o wer Mississi ppi Ri ver Valley 

s uffere d $ 1, 04 6 millio n i n fl oo d l osses. As great as t his l oss was, t he 

fi g ure, wit h o ut t he Mississip pi Ri ver a n d tri b utaries pr oject, w hich 

is o nl y a b o ut half c o m plete, w o ul d ha ve bee n i n e xcess of $ 1 5 billi on.

Mr. C hair ma n, I mi g ht, als o, j ust p oi nt o ut —t he c or ps d oes n’t 

i nitiate pr ojects, as y o u p oi nte d o ut a m o me nt a g o. T hese pr ojects 

are i nitiate d b y pe o ple. T he y are a p pr o ve d b y C o n gress after he ari n gs; 

t he y are a ut h orize d, st u dies are ma de, a n d f u n ds are a p pr o priate d. 

T he y’ve g o ne t hr o u g h a l o n g pr ocess, a n d we t hi n k t he c or ps d oes a 

ver y e xcelle nt j o b.

S pea ki n g s pecificall y t o t he s u bject of t he na vi gati o n w or k of t he 

C or ps of E n gi neers, o ne of o ur greatest nati o nal ec o n o mic assets is 

t he a vaila bilit y of na vi ga ble water wa ys w hic h t o get her wit h o ur 

c oastal p orts pr o vi de t he N ati o n’s heartla n d wit h access t o t he mar ket s 

of t he w orl d. O ur i nla n d water wa ys pr o vi de de pe n da ble, ec o n o mical 

tra ns p ortati o n f or a gric ult ure a n d f or i n d ustr y. Wit h o ut t hese w aterwa ys a n d t h e tre me n d o us t o n na ges t h at are tra n s p orte d, t he l o gistical 

pr o ble ms ass ociate d wit h m o vi n g b ul k c o m m o dities c o ul d n ot be 

ha n dle d. We si m pl y d o n ot ha ve t he hi g h wa y s pace, t he frei g ht cars, 

or t he r oa d be ds t o ha n dle t he j o b a n d pr o vi de necessar y ser vices.

T oll-free water tra ns p ortati o n is of t he greatest i m p orta nce t o 

A merica n a gric ult ure. O ur ri vers a n d la kes carr y e n or m o us q ua ntities 

of all ki n ds of far m cr o ps t o dista nt mar kets. I n 1 97 5, o ur a gric ult ural 

e x p orts are e x pecte d t o reac h a val ue of $ 2 2 billi o n, a n d a siza ble perce nta ge of t hese c o m m o dities is bei n g carrie d o n i nla n d water wa ys. 

T hi n k w hat t his mea ns t o o ur bala nce- of- pa y me nt p ositi o n. Far mers 

als o recei ve as well as s hi p b y i nla n d water wa ys. F or i nsta nce, we 

recei ve f uel a n d fertilizer, far m e q ui p me nt a n d all ki n ds of far m 

c he micals, t o na me j ust a fe w of t he s u p plies a n d c o m m o dities.

N ot o nl y d oes a gric ult ure be nefit fr o m o ur t oll-free i nla n d waterwa ys, t he nati o nal i nterest has bee n greatl y e n ha nce d b y t his p olic y of 

free d o m fr o m t olls or use ta xes. T oll-free water b or ne c o m merce has 

bee n t he f o u n dati o n of e xte nsi ve ec o n o mic de vel o p me nts t hr o u g h o ut 

t he c o u ntr y. I n a rece nt 1 5- year s pa n, m ore t ha n $ 10 8 milli o n was i n ­

veste d i n 6, 00 0 ne w a n d e x pa n de d waterfr o nt i n d ustries w hic h pr o vi de 

h u n dre ds of milli o ns of d ollars i n pa yr olls. Als o, 2 3 of t he 2 5 lar g est 

metr o p olit a n areas of t he Nati o n, wit h a p o p ulati o n of nearl y 7 0 milli o n pe o ple, h a ve gr o w n t o t heir pr ese nt size o n t he bases of t heir ri ver 

a n d h ar b or l ocati o ns. M ore t ha n 1 80 milli on pe o ple li ve i n St ate s n o w 

ser ve d b y na vi gati o n.

I cite t hese fi g ures t o ill ustrate t he fact t hat o ur t oll-free na vi gati o n 

s yste m is a hi g hl y re war di n g nati o nal p olicy. Be nefits are n ot c o nfi ne d 

t o t h ose w h o use t he water wa ys directl y, b ut t he y accr ue t o o ur e ntire 

p o p ulati o n. If a n y o ne i; bei n g s u bsi dized, Mr. C hair ma n, it is t he a vera ge A merica n c o ns u mer, w het her he k n o ws it or n ot.

Relate d t o t he mai nte na nce of t he prese ntl y a ut h orize d 1 2-fo ot 

c ha n nel a n d of maj or i m p orta nce t o t he realizati o n of t he f ull p ote ntial
1 4

a n d tre me n d o us i m pa ct of t he di rect e x p ort-i m p ort, as well as d o m estic 

tra de bei n g de vel o p e d t hr o u g h o u r Mis sissi p pi Ri v er p ort s, is t he pr o visi o n f or gre ate r c ha n nel de pt h s t o acc o m m o date gre ate r p a y l oa d s a n d 

dee p er dr aft vessels. A st u d y has bee n a ut h oriz e d b y C o n g ress t o deter mi ne t he ec o n o mic feasi bilit y of i ncre ase d c ha n nel de pt h s o n t he 

Missis si p pi Ri ve r n ort h of B at o n R o u g e, La. We he artil y e n d orse t his 

st u d y, a n d we h o pe t hat it c a n be m a de as s o o n as p o ssi ble.

I n c o ncl usi o n, Mr. C h air m a n, Delta C o u n cil reaffir m s it s st r o n g s u pp o rt of t oll-free wat er w a ys a n d p orts a n d o ur str o n g o p p ositi o n t o t he 

i m p ositi o n of t olls or u ser c har g es.

T h a n k y o u ver y m uc h f or t hi s o p p o rt u nit y.

Se nat or G r a v e l . T h a n k y o u ver y m uc h, Mr. S mit h, a n d Mr. 

W att s, b ot h.

O ur n e xt pa n el is m a de u p of Mr. Ge or ge P. Br oc k, c h air ma n of t he 

b oa r d, Illi n ois Ce ntr al G ulf Railr o a d, M o bil e, Ala.; Mr. F. T. 

E d war ds, St at e le gislati v e dir ect or, U nite d Tr a n s p ortati o n U ni o n; 

a n d Mr. J. C. La n e y, ge ner al c hair m a n, Br ot her h o o d of L oc o m oti v e 

E n gi neers.

We’re gla d t o ha v e y o u at t hi s hea ri n g.

Mr. F e e n e y . I’ m J oe Fee n e y, ge ner al c o u nsel of t he We ster n 

Railr o a d Ass o ciati o n. I ’ll be acc o m pa n yi n g Mr. Br oc k.

S T A T E M E N T O F G. P. B R O C K, C H AI R M A N O F T H E B O A R D, I L LI N OI S 

C E N T R A L G U L F R AI L R O A D

Mr. B r o c k . G o o d m or ni n g. I a p pre ciate t he o p p o rt u nit y t o a p p ear 

here a n d wis h t o t ha n k t he c o m mittee f or its willi n g ness t o nea r 

c o m me nts c o nc er ni n g t he ma n y a n d varie d i m pacts o n t he p u blic 

i nt ere st w hic h t he e x p e n dit ur e of p u blic f u n ds f or na vi g ati o n facilities 

e ntails.

I ’ m s ur e y o u k n o w t he Illi n ois Ce ntral G ulf Railr o a d is lar g el y a 

n o rt h -s o ut h li ne o p erati n g bet w ee n t he g ulf p orts a n d C hic a g o. T he 

railr o a d o p erates 9, 6 2 6 miles of mai nli ne i n 1 3 St ate s e nc o m p assi n g 

maj or ma n u fact uri n g a n d a gric ult ural ce nters. O n its n o rt h -s o ut h 

o pe rati o n, t he I C G faces i nt e ns e c o m petiti o n fr o m s u b si di ze d water ­

wa ys. All of t he maj or citie s ser v e d wit h t he e xce pti o n of Jac ks o n, 

Miss., a n d I n dia n a p olis, I n d., are o n n a vi ga ble wat er w a ys. T h e Mississi p pi Ri ver Na vi g ati o n S yste m dir ectl y par allels I C G ’s mai n n o rt h - 

s o ut h r o utes. C o nse q ue ntl y, t he Illi n ois Ce ntr al G ulf Railr o a d is 

u n de rst a n da bl y i nt ere ste d i n a n y pr oje ct w hic h will s u b si diz e its water 

c o m petiti o n wit h p u bli c m o ne ys.

I a m here n ot o nl y beca u se of m y c o nc er n f or t he Illi n oi s Ce ntr al 

G ulf Railr o a d as a pr ofit m a ki n g e nt er p rise. I ha v e bee n i n t he railr oa d b usi ness 6 3 yea rs a n d ha v e li ve d t hr o u g h t w o w orl d wars. I ha ve 

w or k e d n ot o nl y o n t he railr oa ds i n o u r c o u ntr y, b u t o n rail r oa ds i n 

E n gla n d, Fr a n ce a n d S witzerla n d. Railr o a ds pla y a vit al r ole i n t he 

a bilit y of a c o u ntr y t o s ur vi ve i n ti m es of w ar a n d pr o s pe r i n ti me s of 

peace. Railr oa ds ca n fill t his r ole bec a us e of t heir a bilit y t o ha n dle 

a d diti o nal traffic wit h c o m par ati vel y s mall a d diti o nal e x p e n dit ures f or 

ca pital g o o ds a n d ma n p o w er. O ne of t he less o ns of hist or y t o be 

lear ne d fr o m W orl d War II is t h e a bilit y of t he railr o a ds t o ha n dle 

va st a m o u nts of war materi al, n ot t o me nti o n m o vi n g t he tr o o p s a n d 

t heir e q ui p me nt, w hile at t he sa m e ti m e c o ns er vi n g preci o us f uel a n d 

ma n p o w er.
1 4 9

I feel t hat t he railr oa ds are still esse ntial t o t he welfare of o ur 

c o u ntr y. Wit h o ut t he railr oa ds, tr uc ks, bar ges a n d pi peli nes ca n n ot 

meet t he p u blic’s tra ns p ortati o n nee ds. T he petr ole u m crisis al o ne 

hi g hli g hts t he vali dit y of t his p ositi o n. S o me e x perts ha ve c o ncl u de d 

t hat tr uc ks use o n t he a vera ge at least f o ur ti mes t he a m o u nt of f uel 

as a railr oa d trai n t o m o ve t he sa me a m o u nt of frei g ht. Ot her e x perts 

ha ve place d t he difference at 11 t o 1 i n fa v or of t he railr oa ds.

Past p u blic w or ks tra ns p ortati o n pr ojects ha ve ha d a pr of o u n d 

effect o n t he p ositi o n of t he railr oa ds i n t he nati o nal tra ns p ortati o n 

s yste m a n d o n t he ulti mate efficie nc y a n d ca pacit y of t he t otal s yste m. 

I n 1 94 7, railr oa ds ha d better t ha n 6 5 perce nt of t he t otal i ntercit y 

frei g ht mar ket; tr uc ks ha d 1 0 perce nt; a n d bar ges less t ha n 3 S perce nt. 

T his 6 5 perce nt of t he traffic e na ble d ma n y railr oa ds t o a bs or b deficits 

fr o m passe n ger o perati o ns a n d m o ne y-l osi n g bra nc h li nes w hile 

mai ntai ni n g t heir r oa d wa ys a n d facilities i n g o o d s ha pe.

T he pict ure be ga n t o c ha n ge q uic kl y as m ore a n d m ore p u blic 

m o ne y was p o ure d i nt o hi g h wa ys, water wa ys, a n d air p orts w hile 

railr oa ds still ha d t o pa y t heir o w n wa y all t he wa v.

T hr o u g h 1 94 7 —fr o m 1 94 7 t hr o u g h 1 97 4, t he Fe deral, State, a n d 

l ocal g o ver n me nts s p e nt $ 34 5 billi o n i n t he c o nstr ucti o n a n d mai ntena nce of hi g h wa ys al o ne. D uri n g t his peri o d, t he tr uc ki n g i n d u str y’s 

s hare of t he i ntercit y frei g ht traffic t otal r ose fr o m 10 perce nt t o 

2 2. 9 perce nt.

Fr o m 1 94 7 t hr o u g h 1 97 4, t he Fe deral G o ver n me nt s pe nt $ 4.3 

billi on i m pr o vi n g t he i nla n d water wa ys a n d t he perce nta ge of i ntercit y frei g ht ha ule d b y barges i ncrease d fr o m 3. 4 perce nt t o 1 0. 5 perce nt.

D uri n g t his sa me peri o d t he railr oa ds’ s hare of t he frei g ht mar ket 

dr o p pe d fr o m 6 5.3 perce nt t o 3 8.9 perce nt. T he railr oa ds f o u n d 

t he msel ves c halle n ge d b y c o m petit ors w h o were massi vel y s u bsi dize d 

b y t he p u blic treas ur y.

T he res ult was i ne vita ble: A s u bsta ntial l oss of traffic t o c o m peti n g 

m o des a n d a s har p re d ucti o n i n rail re ve n ues o n retai ne d water a n d 

tr uc k c o m petiti ve traffic.

It s h o ul d be a p pare nt t o t his c o m mittee w h y t he railr oa ds, a n d t he 

I C G i n partic ular, are c o ncer ne d a b o ut t he C or ps of E n gi neers’ pla ns 

t o s pe n d at least $ 3. 2 billi o n t o e x pa n d bar ge na vi gati o n o n t he Mississi p pi Ri ver s yste m starti n g wit h a n e x pe n dit ure of $ 4 00 milli o n t o 

$ 50 0 millio n o n l oc ks a n d da m 2 6 at Alt o n.

N o w, t his pr o p osal is a bs ol utel y u n necessar y. It w o ul d a d versel y 

affect t he ge neral s hi p pi n g p u blic all o ver t he U nite d State s w here 

ri vers d o n ot e xist. It w o ul d i m pair t he a bilit y of at least o ne railr oa d 

t o s ur vi ve as a pri vate e nter prise.

E x pa nsi o n of bar ge na vi gati o n is u n necessary beca use t he a d diti o nal 

traffic t he c or ps esti mates will m o ve o n t he water wa y ca n be ha n dle d 

b y rail at a mi ni m u m c ost t o t he p u blic.

Illi n ois Ce ntral G ulf has a m ple ca pa cit y t o a bs or b its s hare of t he 

a vera ge 7 0 milli o n t o ns i ncrease t he C or ps of E n gi neers pr ojects will 

be ne w traffic i n d uce d t o a n e x pa n de d u p per Mississi ppi Ri ver 

s yste m.

T he ge neral s hi p pi n g p u blic d oes n ot be nefit fr o m s u bsi dize d 

tra ns p ort pr ojects w hicn di vert traffic fr o m railr oa ds. T he t o n na ge 

di verte d fr o m t he railr oa ds w o ul d ot her wise c o ntri b ute critical 

re ve n ues nee de d t o hel p defra y t he fi xed e x pe nses w hic h m ust be 

s hare d b y all rail s hi p pers. W he n s uc h t o n na ge is di verte d fr o m t he
1 5 0

rail r oads, t he re m ai ni n g rail s hi p pe rs m u st pa y hi g her u nit c osts or 

face a decli ne i n ser vice. M o st of t h e bar g e traffic is u nre g ulate d a n d 

s uc h bar ge o p erat or s d o n ot ha v e a n o bli gati o n t o perf or m ser vic e at 

p u blis h e d rat es.

M or e o v er, t his decli ne i n re v e n u es res ulti n g fr o m s u b si d y i n d u ce d 

traffic di versi o n has alre a d y br o u g ht m ore t h a n o ne railr o a d t o t he 

bri n k of i ns ol v e nc y. I n d ee d, l oc ks a n d da m 2 6 a n d t he ot h er l oc ks o n 

t he Mississi p pi a n d Illi n ois Ri v ers w hi c h t he c or ps pr o p oses t o e x p a n d 

vi vi dl y ill ustrate t he railr o a d s’ dile m m a. Des pite t he e xisti n g e xcess 

ca p acit y o n t he Illi n oi s Ce ntr al G ulf, t he c or ps’ pr o p osal will di v ert 

o ver $ 6 7 milli o n i n pres e nt, criticall y nee d e d gr oss re v e n u es fr o m t he 

I C G al o ne. I n a d diti o n, f ut ur e traffic di ver si o n pr ojecte d b y t he 

c or ps re p res e nt s o ver $ 2 0 5 milli o n a n n uall y i n e sse ntial gr oss re ve n ues. 

O ur a n al y sts pre dict t h at t his di ver si o n, res ulti n g fr o m t he vastl y 

e x p a n d e d l oc ks a n d da m 2 6 a n d rel ate d c o m p o ne nts, will bri n g I C G 

t o its fi na n cial k nees.

I n asse ssi n g t hese l osses, t hi s c o m mittee ca n n ot i g n ore t he dis astr o u s 

i m pa ct of t hi s massi ve water wa y s u b si d y o n ta x re ve n ue s a n d j o bs. 

F o r e xa m ple, I C G pa y s o ver $ 1 5 milli o n a n n uall y i n a d val o re m a n d 

l ocal ta xe s. Di v ersi o n of traffic fr o m t he railr o a ds will ulti m atel y ca use 

a re d ucti o n i n t h ose ta xe s a n d a c o n se q ue nt l oss of re v e n u es t o l ocal 

sc h o ol districts a n d ot he r g o ver n m e nt al u nit s.

As t o j o bs, rail o pe rati o ns are m ore la b o r i nte nsi v e t h a n bar ge s. 

Missi ssi p pi al o ne has 3, 3 6 6 I C G wa ge ear n ers i n its c o m m u nities. 

T hes e e m pl o yees, w h ose j o b sec urit y is t hr eate n e d b y c o nti n u e d 

di versi o n of traffic, c o ntri b ute gre atl y t o t he ec o n o m y of t his St at e 

t hr o u g h t he pa y me nt of ta xe s a n d ot h er fa mil y e x pe n ses a n d t o t he 

ge ner al welfar e of t he St at e t hr o u g h t he tia ns p o rtati o n of esse ntial 

ra w material s i nt o ma n ufact uri n g ce nters a n d fi nis he d pr o d u cts i nt o 

c ha n nels of c o m mer ce. As a n e xa m ple, Missis si p pi a n d its s o ut h ea ste r n 

nei g h b ori n g St at es pr o ba bl y pr o d uce m ore p ul p w o o d a n d w o o d c hi p s 

f or t he pa p er i n d ust r y t h a n all t he re m ai ni n g States c o m bi ne d. I n 

1 9 7 4, I C G al o ne h a n dle d 1 7 2, 2 5 0 cars of p ul p w o o d a n d c hi ps. Of t h ese, 

8 5, 0 0 0 car s ori gi nat e d a n d ter mi nate d wit hi n Mississi p pi. T h e bala nce 

was m o v e d t o pa p er pr o d uci n g pla nts nea r b y. I n or d er t h at t his 

i m p o rta nt pa p er pr o d uci n g se g me nt of t he ec o n o m y re m ai n sta ble, 

it is esse ntial t h at o ur tra ns p o rtati o n s yste m be n ot ta m per e d wit h i n 

a n y wa y t h at w o ul d ca use a di ver si o n of traffic fr o m, a n d a w ea ke ni n g 

of, o ur rail s yst e m s. W hat has bee n sai d of t he pa p er i n d u str y ca n be 

sai d of t he ma n y ot h er i n d ustrie s w hic h ma ke material c o ntri b uti o ns 

t o t he ec o n o mic well- bei n g of t heir c o m m u nities.

T hi s c o m mittee has a c h oice — a vit al pri vate tra ns p o rt s yste m 

pr o vi di n g efficie nt l o w-c ost ser vice, hi g h ta x pa y m e nt s a n d t h o usa n d s 

of j o bs, or a w h oll y s u bsi dize d tra ns p o rt ser vic e drai ni n g criticall y 

nee de d G o ver n m e nt re ve n ue s a n d destr o yi n g esse ntial j o bs. T h e 

c h oice is y o urs, b u t t he Nati o n, rail s hi p pers, rail ser ve d c o m m u nities, 

a n d a va st r ail la b or f orce ca n ill aff or d a h ast y decisi o n o n y o ur p art.

We as k t h at t hi s c o m mittee h ol d f ull heari n g s o n l oc ks a n d da m 2 6 

a n d gi ve t he rail r oa ds a n o p p o rt u nit y t o de m o nst rat e t he pr oject is 

n ot ec o n o mi call y j ustifie d.

A n d, Se n at or, I ’ d li ke t o as k y o ur per missi o n t o as k Mr. Fee ne y 

t o a d d a fe w w or d s.
1 5

S T A T E M E N T O F J O S E P H F E E N E Y, G E N E R A L C O U N S E L, W E S T E R N 

R AI L R O A D A S S O CI A TI O N

Mr. F e e n e y . Se n at or, ver y briefl y, t he railr o a d s ha v e u n d erst o o d 

fr o m c orre s p o n de nc e, s o me of w hic h y o ur c o m mittee a n d s u b c o m mittee 

ha v e recei v e d, t h at t here w o ul d be f ull heari n g s o n t he a ut h o riz ati o n 

of l oc ks a n d da m 2 6.

T hi s heari n g t o d a y, we ass u m e, is a prel u d e o p p o rt u nit y f or t he 

rail r oa ds a n d ot h ers t o ma k e a f ull c o m pre he n si ve pr es e ntati o n o n 

l oc ks a n d da m 2 6. We, als o, ass u me t o d a y t h at t hi s hea ri n g is a rec o gniti o n b y t he c o m mittee of t he ver y c o m pl e x iss ue s i n v ol ve d a n d t he 

s u bsta ntial c o ns e q ue n ce w hic h t he c o n str ucti o n of l oc ks a n d da m 2 6 

w o ul d ha v e o n t he tra ns p o rtati o n s yste m a n d ot he r as p ects of t he 

Mi d w est.

We are n o w c o n fr o nte d wit h a n acti o n of t he Se nate A p pr o pri ati o n s 

C o m mitte e i n t he f or m of a n a m e n d m e nt t o H. R. 5 8 9 9, w hic h w o ul d 

p u r p ort t o a ut h orize l oc k a n d d a m 2 6 wit h o ut h eari n g a n d w it h o ut gi vi n g t he P u blic W o r ks C o m mitte e a n o p p o rt u nit y t o re vie w t he iss ues 

i n v ol ve d. T his bill as a m e n d e d was re p ort e d o ut o n We d ne s da y, M a y 

1 4, a n d m a y reac h t he fl o or t his v er y a fter n o o n. We h o pe t he m e m b ers 

of t he S e nate P u blic W or k s C o m mitte e will s u p p ort a m o v e t o delete 

t hi s a m e n d me nt fr o m t he sec o n d s u p ple me ntal a p pr o pri ati o n s bill 

H. R. 5 8 9 9.

Se nat or G r a v e l . T ha n k y o u v er y m uc h.

Mr. W atts, w h o prece de d y o u, a n d P m s u re y o u hea r d his testi m o n y 

f or t he Re d Ri v er Valle y Ass ociati o n, ha d w h at I t h o u g ht was a ver y 

i nt ere sti n g c o m me nt. He sa y s:

A st u d y of t h e pri nci pal railr o a ds t h at parallel i nla n d na vi gati o n r o ute s s h o ws 

t h at t h eir i ncrease i n frei g ht carria ge, as well as re v e n ues, fr o m 1 9 60 t o 1 9 70 a b o ut 

d o u bles t h at of all ot her class I railr o a ds.

M r. B r o c k . Yes, sir, defi nitel y.

Se nat or G r a v e l . W hat we’re refe rri n g t o is t he r ailr oa ds t h at f oll o w 

al o n g t he na vi gati o n s yste m, parti c ularl y t he Mis sissi p pi s yst e m, as 

y o ur li ne d oes. Ha ve t he y e x perie nc e d t he be n efit s of t hes e water wa y 

de v el o p m e nt s rat h er t h a n t he detri me nts of t hes e water wa y de v el o p ­

me nts?

Mr. F e e n e y . Se n at or, if I c o ul d res p o n d t o t h at o n be h alf of Mr. 

Br oc k, t h at is esse ntiall y t he ar g u m e nt of Dr. Barl o o n, a c o ns ult a nt 

f or t he C or p s of E n gi ne ers. T h at sa me ar g u m e nt was s u b mitt e d i n t he 

f or m of a n affi d a vit b y Dr. Barl o o n i n o p p ositi o n t o o ur m oti o n f or a 

preli mi nar y i nj u ncti o n i n t he c o urt fi g ht. W e are a nal yzi n g t h at ar g ume nt i n det ail, a n d we pla n t o pr o vi de b ot h f or t hi s c o m mitte e w he n 

we ha v e f ull heari n gs, h o pe f ull y, o n l oc ks a n d da m 2 6, a n d bef or e t his 

c o m mittee we’ll be a ble t o de m o nstrate t h at t h at ar g u m e nt is wit h o ut 

basis.

F o r o ne t hi n g, t he railr oa ds t h e y selecte d i n t h at st u d y, i ncl u di n g 

t he L. & N., were s o me of t he m o st pr os per o us railr o a ds we ha v e. T h e y 

left o ut t h e R oc k I sla n d, w hic h h a p p e ns t o pa rall el t he Mississi p pi, t o o, 

a n d ser v es t hes e p oi nts. T h ere was a s electi ve st u d y. F u rt h er m or e, we 

will be a ble t o de m o nstrate t h at t he gr o wt h of rail traffic i n t h at area 

has n ot hi n g t o d o pa rti c ularl y wit h t he water wa y, a n d I t hi n k it 

was —it ’s si m pl y a s yll o gis m t h at D r. Barl o o n i n v e nte d a n d M r. W atts 

has a d o pte d t h at I d o n’t t hi n k will h ol d u p w he n we p u t it u n der 

t he searc hli g ht.
1 5

Se na t or Gr a v e l . I w o n der if y o u w o ul d n’t s u b mit f or t hi s hea ri n g 

his ar g u m e nt a n d y o ur a nal ysi s of t his d oc u me nt of Dr. Barl o o n’s. I ’ m 

s ure y o u ha v e a c o p y of it, s o tr y t o g o a he a d a n d c o m plete y o ur 

a nal ysis of it, a n d we’ll lea v e t he rec o r d o pe n t o recei v e it f or t he 

rec or d. J u st s o y o u s u b mit it wit hi n a reas o na ble ti me.

Mr. F e e n e y . Ver y well.

Se nat or G r a v e l . Als o, I u n derst a n d y o u will ha ve t he o p p o rt u nit y 

t o pre se nt t he testi m o n y of Mr. Alle n B o y d, a n d I ’ll as k t h at t h at be 

s u b mitt e d wit hi n t he ne xt 2 or 3 wee ks f or t he rec or d of t his hea ri n g 

i nstea d of waiti n g f or a lat er heari n g. A hea ri n g i n t he ha n d is w ort h 

t w o i n t h e b us h.

Mr. F e e n e y . Yes, sir.

[ Mr. Fee ne y s u p plie d t he f oll o wi n g:]
1 5 3

S T E R N R A I L R O A D A S S O C I A T I O N

L A W D E P A R T M E N T

2 2 2 S O U T H RI V E R SI D E P L A Z A R O O M 1 2 0 0

C HI C A G O. I L LI N O I S 6 0 6 0 6

TSLTA*OA« (313] W-Wl

JOSEPH O. E E S N E Y

OJ'.E H L COUNSEL

C.-' O . * S J. H A 3 L O V I C 

T C 3 S S 7 T O P A L

: - T j A ' - - E V A U G H N 3 ^ 7 5

A - - O R ii V S

E o - . u r a b i e H i k e G r a v e l 

U . S . S e n a t o 

t’a s h i n g t o n , D . C .

D e a r S e n a t o r G r a v e l :

i r i n g b e f o r e y o u r s u b c o m m i t t e e a t V i c k s b u r g , M i s s i s s i p p i 

5, y o u a d d r e s s e d a q u e s t i o n t o M r . G l e n P . B r o c k , C h a i r -

A t t h e h e a r 

o n M a y 1 6, 1 9 7 5 ,

n a n o f t h e B o a r d o f t h e I l l i n o i s C e n t r a l G u l f R a i l r o a d C o m p a n y . M y 

n o t e s s h o w y o u i n v i t e d M r . E r o c k t o c o m m e n t o n t h e s t a t e m e n t o f o n e o f 

t h e o r i o r w i t n e s s e s , M r . M i l t o n B a r s c h d o r f , t h a t t h e r a i l r o a d s s e r v i n g 

t h e t e r r i t o r y a l o n g t h e M i s s i s s i p p i R i v e r V a l l e y w h e r e t h e r e i s s t r o n g 

' a r g e c o m p e t i t i o n h a v e p r o s p e r e d i n c o m p a r i s o n t o r a i l r o a d s s e r v i n g 

e r r i t o r i e s w h e r e t h e r e i s n o o r v e r y l i t t l e b a r g e c o m p e t i t i o n . I a c - 

o m p a n i e d M r . B r o c k d u r i n g h i s t e s t i m o n y a n d i n c o l l o q u y w i t h y o u I 

u g g e s t e d M r . B a r s c h d o r f ' s s t a t e m e n t w a s a r e i t e r a t i o n o f a n a r g u m e n t 

d v a n c e d i n v a r i o u s f o r u m s b y a n e c o n o m i s t , P r o f e s s o r M a r v i n J . B a r l o o n 

* u g r a c i o u s l y o f f e r e d t o h o l d t h e r e c o r d o p e n s o t h e r a i l r o a d s c o u x d 

s u b m i t a d e t a i l e d a n a l y s i s o f P r o f e s s o r B a r l o o n ' s a r g u m e n t . T h i s 

l e t t e r i s i n r e s p o n s e t o y o u r i n v i t a t i o n .

P r o f e s s o r B a r l o o n s t a t e d h i s a l l e g a t i o n t h a t b a r g e c o m p e t i t i o n 

r e s u l t s i n p r o s p e r o u s g r o w t h o f r a i l r o a d s i n d e t a i l i n a n a f f i d a v i t 

s u b m i t t e d o n b e h a l f o f t h e A t c h i s o n , T o p e k a a n d S a n t a F e R a i l w a y C o . , 

efc a l . , v . H o w a r d II. C a l l a w a y , e t a l . , C A K o . 7 4 - 1 1 9 0 , f i l e d w . t h t a e 

C o j r t o n A u g u s t 1 6, 1 9 7 4 . A c o p y o f P r o f e s s o r B a r l o o n ' s a f f i d a v i t i s 

a t t a c h e d a s A p p e n d i x A . T h e W e s t e r n r a i l r o a d s w h i c h a r e p l a i n t i f f s i n 

t h e l a w s u i t r e s p e c t f u l l y u r g e t h a t t h e f a c t s d o n o t s u p p o r t P r o f e s s o r 

B a r l o o n ’ s c o n c l u s i o n s .

1 . P r o f e s s o r B a r l o o n ' s s t a t i s t i c s c o n t a i n b a s i c a r i t h m e t i c a l 

e r r o r s . I n E x h i b i t I I I o f h i s a f f i d a v i t h e p u r p o r t s t o c o m p a r e C l a s s 

I a n d I I r a i l r o a d s w i t h " f o u r r i v e r v a l l e y r a i l r o a d s " . H o w e v e r h a 

a c t u a l l y c o m p a r e s d i f f e r i n g c l a s s e s o f r a i l r o a d s i n d i f f e r e n t y e a r s . 

S o m a y e a r s h o h a s u s e d d a t a f o r C l a s s I , I I a n d I I I r a i l r o a d s , o t h e r 

y e a r s j u s t C l a s s I r a i l r o a d s , a n d o t h e r y e a r s C l a s s I a n d I I .

S i m i l a r a r i t h m e t i c a l e r r o r s a r e c o n t a i n e d i n E x h i b i t I I t o P r o f e s s o r 

B a r l o o n ' s a f f i d a v i t .

2 . P r o f e s s o r B a r l o o n d i d n o t a d j u s t h i s d a t a f o r s e v e r a l r a i l ­

r o a d m e r g e r s w h i c h i n c r e a s e d t h e r e p o r t e d t r a f f i c l o a d f o r t h e f o u r 

v a l l e y l i n e s b y a c q u i s i t i o n o f e x i s t i n g t r a f f i c a n d n o t b y n e w g r o w t h . 

T h i s f a i l u r e o v e r s t a t e s g r o w t h f o r t h e f o u r v a l l e y r o a d s a n d u n d e r ­

s t a t e s g r o w t h f o r t h e r e m a i n i n g c a r r i e r s .
 P r o f e s s o r B a r l o o n s e l e c t e d o n l y t h o s e r i v e r l i n e s w h i c h a i d e d 

is a r g u m e n t . H e f a i l e d t o i n c l u d e s u c h b a r g e c o m p e t i t i v e r o a d s a s t h e 

H o c k I s l a n d , t h e M - K - T ' a n d t h e P e n n - C e n t r a l . I n c l u s i o n o f t h e s e r o a d s 

w o u l d h a v e d e m o n s t r a t e d t h e a d v e r s e e f f e c t s o f o f b a r g e s u b s i d i e s .

4. P r o f e s s o r B a r l o o n f a i l s t o d i s t i n g u i s h f u n d a m e n t a l l y d i f f e r e n t 

o p e r a t i n g i n f l u e n c e s b e t w e e n r a i l r o a d s o p e r a t i n g i n d i f f e r e n t g e o ­

g r a p h i c r e g i o n s . B y c o m p a r i n g f o u r l o n g - h a u l r o a d s w i t h t h e s h o r t - h a u l 

r o a d s o f t h e E a s t w h i c h h a v e s u f f e r e d t r e m e n d o u s l y f r o m s h o r t - h a u l 

t r u c k c o m p e t i t i o n e n g e n d e r e d b y h i g h w a y s u b s i d i e s . P r o f e s s o r B a r l o o n 

u n d e r s t a t e s t h e g r o w t h o f r a i l r o a d s g e n e r a l l y . W h e n t h e f o u r v a l l e y 

r o a d s a r e c o m p a r e d w i t h t h e l o n g - h a u l w e s t e r n a n d s o u t h e r n c a r r i e r s , 

t h e f o u r l o n g - h a u l v a l l e y r o a d s h a v e s u f f e r e d b y c o m p a r i s o n .

5 . T h e c r i t e r i a s e l e c t e d b y P r o f e s s o r B a r l o o n - t h e m i l e s a n d 

f r e i g h t r e v e n u e - a r e m e a n i n g l e s s i n d i c a t i o n o f r a i l e c o n o m i c h e a l t h . 

T h e r e a l i s s u e i s w h e t h e r t o t a l r a i l r e v e n u e s a r e m e e t i n g t o t a l r a i l 

c o s t s . T o n m i l e s c a n i n c r e a s e a n d t o t a l r e v e n u e c a n i n c r e a s e b u t 

r e v e n u e p e r u n i t o f t r a f f i c o n a f i x e d d o l l a r b a s i s m a y s a g o r n o t g r o w 

a s f a s t a s c o s t s o f o p e r a t i o n . T h e r e a l p r o b l e m l i e s i n t h e p r i c e 

f l o o r s e s t a b l i s h e d b y d i r e c t g o v e r n m e n t s u b s i d i e s t o b a r g e a n d t r u c k 

o p e r a t i o n s . B y s u b s i d i z i n g l o w e r b a r g e r a t e s t h e g o v e r n m e n t h a s f o r c e d 

r a i l r e v e n u e s p e r u n i t d o w n w h i l e c o s t s o f o p e r a t i o n r o s e . T h e r e s u l t 

h a s b e e n t h e i n a b i l i t y o f s u b s i d y i m p a c t e d r a i l r o a d s t o m e e t t h e f u l l 

c o s t s o f o p e r a t i o n . I f a v e r a g e c o s t s p e r u n i t a r e e x c e e d i n g a v e r a g e 

r e v e n u e s p e r u n i t i t m a t t e r s l i t t l e t h a t q r o s s r e v e n u e s a n d t o n - m i l e s 

h a v e i n c r e a s e d . B y g r e a t l y i n c r e a s i n g t h e s u b s i d y t o b a r g e o p e r a t i o n s 

t h r o u g h e x p a n s i o n o f t h e U p p e r M i s s i s s i p p i N a v i g a t i o n S y s t e m t h e 

g o v e r n m e n t t h r e a t e n s t o d r o p t h e s u b s i d y i n d u c e d p r i c e f l o o r e v e n 

f u r t h e r a n d f u r t h e r ’• e d u c e r e v e n u e p e r u n i t . T h i s w i l l o n l y a c c e l e r a t e 

t h e g r o w i n g p r o b l e m s o f r a i l s e r v i c e f a c i n g C o n g r e s s a n d t h e N a t i o n 

t o d a y . T h e g o v e r n m e n t i 3 l i t a r a l l y p u m p i n g s u b s i d i e s i n t o t h e 

d e s t r u c t i o n o f t h e n a t i o n ' s r a i l s y s t e m b y s u b s i d i z e d m o d e s .

c c: M r . G l e n P . B r o c k 

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v .

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O F A M E R I C A , e t a l . ,

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) 

D I S T R I C T O F C O L U M B I A ) S S A F F I D A V I T O F M A R V I N J . B A R L O C N 

M A R V I N J . B A R L O O N , b e i n g f i r s t d u l y s w o r n , d e p o s e s 

a n d s a y s :

(1) T h a t h e i s o f l a w f u l a g e a n d t h a t h e h a s p e r s o n a l 

k n o w l e d g e o f t h e f a c t s h e r e i n s e t f o r t h e x c e p t w h e r e s p e c i f i ­

c a l l y s t a t e d t o b e t r u e u p o n i n f o r m a t i o n a n d b e l i e f ;

( 2 ) A f f i a n t r e s i d e s a t 3 0 6 4 E d g e h i l l R o a d , C l e v e l a n d 

H e i g h t s , O h i o . H e i s F r a n k T r a c y C a r l t o n P r o f e s s o r o f

•• 

E c o n o m i c s a t C a s e W e s t e r n R e s e r v e U n i v e r s i t y i n t h e c i t y o f 

C l e v e l a n d , O h i o , a n d i n c h a r g e o f i n s t r u c t i o n i n t h e e c o n o m i c s 

o f t r a n s p o r t a t i o n , i n c l u d i n g t h e s u p e r v i s i o n o f d o c t o r a l 

d i s s e r t a t i o n s , a t t h a t i n s t i t u t i o n ;

5 4- 2 3 9 0 - 7 5 - 11
1 5 6

) A f f i a n t h o l d s t h e d e g r e e , M a s t e r i n B u s i n e s s 

A d m i n i s t r a t i o n , f r o m H a r v a r d U n i v e r s i t y a n d i s a g r a d u a t e o f t h e 

U n i v e r s i t y o f I o w a . H e h a s p r e v i o u s l y s e r v e d f o r f i v e y e a r s o n 

t h e f a c u l t y o f H a r v a r d U n i v e r s i t y a n d f o r o n e y e a r o n '■ h e

o f t h e T u l a n e U n i v e r s i t y o f L o u i s i a n a ;

( 4 ) A f f i a n t i s t h e a u t h o r o f a s t u d y , p u b l i : '

1 9 6 9 , u n d e r c o n t r a c t w i t h t h e g o v e r n m e n t o f t h e S t a t e o r 

M i n n e s o t a , o n t h e f u t u r e e c o n o m i c n e e d s o f t h e S t a t e o f 

M i n n e s o t a f o r i n l a n d n a v i g a t i o n d e v e l o p m e n t v i a t h e M i ss is :- i .pi 

R i v e r a n d t h e G r e a t L a k e s . H e i s t h e a u t h o r o f t h e a n a l y s i s o f 

t h e r o l e o f i n l a n d w a t e r t r a n s p o r t a t i o n o n t h e f u t u r e s u p p l y ■ • 

b i t u m i n o u s c o a l w h i c h w a s i n c l u d e d i n t h e 1 9 7 1 F

N a t i o n a l P e t r o l e u m C o u n c i l t o t h e U . S . D e p a r t m e n t 

o n U . S . e n e r g y r e q u i r e m e n t s t o 1 9 8 5 . F u r t h e r , h e i s t h e a u t ’ - 

o f n u m e r o u s o t h e r p u b l i s h e d m o n o g r a p h s a n d j o u r n a l a r t i c l e s o r 

t h e e c o n o m i c s o f t r a n s p o r t a t i o n b y r a i l , w a t e r , a n d o r 

v e h i c l e i n c l u d i n g , i n a d d i t i o n t o p r o f e s s i o n a l j o u r n a l s , 

p e r i o d i c a l s s u c h a s H a r p e r ' s M a g a z i n e a n d t h e N e \ Y o r k T i m e s 

M a g a z i n e ;

(5) I n 1 9 7 3 , a f f i a n t s e r v e d a s e x p e r t w i t n e s s • > c < - r e 

t h e U n i t e d S t a t e s D i s t r i c t C o u r t , M i d d l e D i s t r i c t o f F I . i d' , 

w i t h r e s p e c t t o t h e e c o n o m i c e v a l u a t i o n o f t h e o r o k t-'

F l o r i d a B a r g e C a n a l a n d , i n a d d i t i o n , h a s s e r v e d «s . 

w i t n e s s b e f o r e h e a r i n g s o f t h e I n t e r s t a t e C o m m e r c e C o m m i . 

a n d , o n n u m e r o u s o c c a s i o n s , b e f o r e c o m m i t t e e s o f t h e U . S .

o f R e p r e s e n t a t i v e s a n d t h e U . S . S e n a t e o n q u e s t i o n s o f w a . s r 

t r a n s p o r t a t i o n a n d r e l a t e d w a t e r r e s o u r c e d e v e l o p m e n t ;

- 2 -
1 5 7

( 6 ) A f f i a n t h a s s e r v e d f o r m a n y y e a r s a s c o n s u l t a n t o n 

t r a n s p o r t a t i o n e c o n o m i c s t o v a r i o u s c i v i c g r o u p s , b u s i n e s s f i r m s 

t r a d e a s s o c i a t i o n s , a n d g o v e r n m e n t a g e n c i e s . H e i s a m e m b e r o f 

t h e T r a n s p o r t a t i o n R e s e a r c h F o r u m , o f t h e T r a n s p o r t a t i o n a n d 

P u b l i c U t i l i t i e s G r o u p o f t h e A m e r i c a n E c o n o m i c A s s o c i a t i o n , a n d 

o f t h e N a t i o n a l P l a n n i n g A s s o c i a t i o n . H e i s l i s t e d i n A m e r i c a n 

M e n a n d W o m e n o f S c i e n c e a n d i n W h o ' s W h o i n A m e r i c a ;

(7) A f f i a n t s t a t e s t h a t h e h a s s t u d i e d t h e C o m p l a i n t 

f i l e d b y t h e p l a i n t i f f s i n t h i s c a u s e w i t h r e s p e c t t o t h e p r o ­

j e c t e d c o n s t r u c t i o n o f a n a v i g a t i o n f a c i l i t y o n t h e M i s s i s s i p p i 

R i v e r t o r e p l a c e t h e p r e s e n t L o c k s N o . 2 6 n e a r A l t o n , I l l i n o i s , 

a n d r e l a t e d i s s u e s , a n d t h a t , i n h i s p r o f e s s i o n a l o p i n i o n , s a i d 

C o m p l a i n t r e f l e c t s s u b s t a n t i a l m i s c o n c e p t i o n s a s t o t h e e c o n o m i c 

i m p l i c a t i o n s a n d c o n s e q u e n c e s o f s u c h c o n s t r u c t i o n .

I n p a r t i c u l a r , a f f i a n t s t a t e s a s f o l l o w s :

( a ) U n d e r t h e t i t l e , " T h e C h a l l e n g e d 

A c t i o n s " , p l a i n t i f f s t r e a t t h e p r o p o s e d n a v i g a t i o n 

f a c i l i t y a s t h o u g h i t w o u l d b e a n e w e l e m e n t i n t h e 

t r a n s p o r t a t i o n s y s t e m o f t h e M i s s i s s i p p i V a l l e y 

w h i c h w o u l d i n s t i t u t e a m a s s i v e d i v e r s i o n o f e x i s t i n g 

f r e i g h t t r a f f i c f r o m t h e r a i l r o a d s t o t h e w a t e r w a y s , 

w i t h c o n s e q u e n t l o s s e s o f d e s t r u c t i v e m a g n i t u d e t o t h e 

r a i l r o a d s a n d t o n o n - w a t e r w a y c o m m u n i t i e s s e r v e d b y 

t h e r a i l r o a d s . T h e p l a i n t i f f s g i v e l i t t l e o r n o 

a t t e n t i o n t o t h e c i r c u m s t a n c e t h a t t h e p r o p o s e d c o n s t r u c ­

t i o n w o u l d r e p l a c e w i t h e n l a r g e d c a p a c i t y a n a v i g a t i o n 

s t r u c t u r e w h i c h h a s a l r e a d y l o n g b e e n i n s e r v i c e , t h a t 

t h e p r o p o s e d c o n s t r u c t i o n , t h e r e f o r e , w o u l d n o t s u b ­

s t a n t i a l l y a l t e r l o n g - e x i s t i n g r a i l - w a t e r c o m p e t i t i v e

» 
1 5 8

r e l a t i o n s h i p s , a n d t h a t , f o r t h i s r e a s o n , t h e p r i n c i p a l 

c o n s e q u e n c e o f t h e p r o p o s e d s t r u c t u r e w o u l d b e t o p e r m i t 

t h e c o n t i n u a t i o n o f a p a t t e r n o f g r o w t h a n d d e v e l o p m e n t 

i n t r a n s p o r t a t i o n b y t h e r e s p e c t i v e m o d e s w h i c h h a s b e e n 

u n d e r w a y f o r m a n y y e a r s w i c h o u t t h e d e s t r u c t i v e c o n s e ­

q u e n c e s e n v i s i o n e d ;

(b) T h e p l a i n t i f f s c o m m u n i c a t e t h i s e r r o n e o u s 

c o n c e p t i o n i n t h e f o l l o w i n g a l l e g a t i o n s :

I n A l l e g a t i o n 2 , p l a i n t i f f s r e f e r t o t h e 

p r o j e c t a s a d e c i s i o n " t o b e g i n " a c o n s t r u c t i o n p r o g r a m 

o n t h e U p p e r M i s s i s s i p p i R i v e r B a s i n W a t e r w a y S y s t e m a n d 

o n t h e I l l i n o i s W a t e r w a y ; i n A l l e g a t i o n 3,- t h e y r e f e r t o 

t h e " l o s s " o f " p o t e n t i a l t r a f f i c " b y t h e p l a i n t i f f r a i l ­

r o a d s ; i n A l l e g a t i o n 4 ( a ) , t h e y r e f e r t o t h e " d i v e r s i o n 

o f t h i s h u g e t r a f f i c v o l u m e " f r o m t h e r a i l r o a d s ; i n 

A l l e g a t i o n 4 ( b ) t h e y c i t e t h e " h i g h e r s h a r e o f r a i l r o a d 

f i x e d p l a n t c o s t s " w h i c h n o n - w a t e r w a y s h i p p e r s a n d c o n ­

s u m e r s w o u l d a l l e g e d l y b e f o r c e d t o p a y b y v i r t u e o f t h e 

s u p p o s e d d i v e r s i o n o f t r a f f i c f r o m t h e r a i l r o a d s ; i n 

A l l e g a t i o n 5 , c ( l ) t h e y s p e a k o f t h e " e c o n o m i c l o s s e s t o 

p l a i n t i f f r a i l r o a d s " ; i n A l l e g a t i o n 5 , d ( 4 ) t h e y r e f e r t o 

t h e " l o s s e s t o p l a i n t i f f r a i l r o a d s " , t o t h e " i n t e n t i o n a l 

d i v e r s i o n o f t h e s e s u b s t a n t i a l g e n e r a l r e v e n u e s f r o m t h e 

p l a i n t i f f r a i l r o a d s " a n d t o " t h e e x t e n t t h a t t h e p l a i n t i f 

r a i l r o a d s a r e f o r c e d i n t o b a n k r u p t c y o r o t h e r d e s p e r a t e 

f i n a n c i a l s t r a i t s b y t h e C o r p s ' a c t i o n s o n t h e U p p e r 

M i s s i s s i p p i R i v e r " ; a n d , i n t h e s a m e A l l e g a t i o n , t h e y 

s p e a k o f t h e " e n o r m o u s e c o n o m i c l o s s e s " b y t h e c o m m u n i , 

s e r v e d b y t h e s e r a i l r o a d s .
. 1 5 9

( c ) O n t h e b a s i s o f r e p o r t s b y a p p r o p r i a t e 

r e p o r t i n g a g e n c i e s o f t h e U n i t e d S t a t e s G o v e r n m e n t , 

a f f i a n t s t a t e s a s h i s p r o f e s s i o n a l •o p i n i o n t h a t t h e p r o ­

j e c t e d l o c k s a n d d a m i n s t a l l a t i o n w o u l d n o t s u b s t a n t i a l l y 

a l t e r t h e l o n g - e s t a b l i s h e d r a i l - w a t e r c o m p e t i t i v e r e l a ­

t i o n s h i p i n t h e U p p e r M i s s i s s i p p i a n d I l l i n o i s R i v e r 

V a l l e y s a n d t h a t t h i s c o m p e t i t i v e r e l a t i o n s h i p h a s n o t 

b e e n a n d d o e s n o t p r o m i s e t o b e d e m o n s t r a b l y d i s a d v a n ­

t a g e o u s e i t h e r t o t h e r a i l r o a d s o r t o t h e n o n - w a t e r w a y 

c o m m u n i t i e s s e r v e d b y t h e r a i l r o a d s .

(d) T h e C h i e f o f E n g i n e e r s , U . S . D e p a r t m e n t o f

t h e A r m y , r e p o r t s t h a t t h e e x i s t i n g n a v i g a t i o n s y s t e m

o f t h e U p p e r M i s s i s s i p p i R i v e r , c o n s i s t i n g o f 2 7 l o c k -

a n d - d a m i n s t a l l a t i o n s b e t w e e n t h e m o u t h o f t h e M i s s o u r i

R i v e r a n d M i n n e a p o l i s , w a s s u b s t a n t i a l l y c o m p l e t e d i n

1 9 3 9 , a n d t h a t t h e p r e s e n t L o c k s a n d D a m N o . 2 6 w e r e c o m - 

1 /

p l e t e d i n 1 9 3 8 . T h e s a m e a u t h o r i t y r e p o r t s t h a t t h e

t h r o u g h n a v i g a t i o n s y s t e m o f t h e I l l i n o i s R i v e r f r o m 

2 /

G r a f t o n t o C h i c a g o w a s c o m p l e t e d i n 1 9 3 9 . T h e s e 

s y s t e m s p r o v i d e d , f o r t h e f i r s t t i m e , a y e a r - a r o u n d n i n e - 

f o o t c h a n n e l f o r c o m m e r c i a l n a v i g a t i o n o v e r t h e f u l l 

e x t e n t o f t h e r i v e r r e a c h e s s e r v e d . A t t h e b e g i n n i n g o f

1 / O f f i c e o f t h e C h i e f o f E n g i n e e r s , U . S . D e p a r t m e n t o f 

t h e A r m y , " R e p o r t U p o n t h e I m p r o v e m e n t o f M i s s i s s i p p i R i v e r 

B e t w e e n M i s s o u r i R i v e r a n d M i n n e a p o l i s , M i n n . " , A n n u a l R e p o r t o f 

t h e C h i e f o f E n g i n e e r s , U . S . A r m y , o n C i v i l W o r k s A c t i v i t i e s ,

1 9 6 4 , U . S . G o v e r n m e n t P r i n t i n g O f f i c e , W a s h i n g t o n , D . C . , 1 9 6 4 ,

p a g e s 1 0 9 8 a n d 1 0 9 9 . '■ 

2 / O f f i c e o f t h e C h i e f o f E n g i n e e r s , U . S . D e p a r t m e n t o f 

t h e A r m y , 1 9 7 2 A n n u a l R e p o r t , C h i e f o f E n g i n e e r s , o n C i v i l W o r k s 

A c t i v i t i e s , V o l u m e I I, U . S . G o v e r n m e n t P r i n t i n g O f f i c e , 

W a s h i n g t o n , D . C . , 1 9 7 2 , p a g e 3 0 - 3 9 .
1 6 0

1 9 7 4 t h e y h a d t h u s b e e n i n s e r v i c e a t o t a l o f 3 5 y e a r s .

F o r a p p r o x i m a t e l y t h e f i r s t 3 0 o f t h e s e 3 5 y e a r s , t h e s e 

s y s t e m s c a r r i e d w a t e r b o r n e t r a f f i c a t l e s s t h a n t h e i r 

p r a c t i c a l c a p a c i t y e v e n a t t h e p o i n t s o f g r e a t e s t t r a f f i c 

d e n s i t y .

( e ) T h e p r o j e c t e d c o n s t r u c t i o n o f r e p l a c e m e n t 

n a v i g a t i o n f a c i l i t i e s a t L o c k s a n d D a m N o. 2 6 w i l l n o t 

s u b s t a n t i a l l y a l t e r t h e t a c h n o l o g i c a l o r e c o n o m i c f e a t u r e s 

o f c o m m e r c i a l n a v i g a t i o n f r o m w h a t t h e s e f e a t u r e s w e r e 

d u r i n g t h e 3 0 y e a r s w h e n t h e p r e s e n t s y s t e m s w e r e c a r r y i n g 

t r a f f i c a t l e s s t h a n t h e i r c a p a c i t y . T h e c h i e f s i g n i f i ­

c a n t a l t e r a t i o n a f f e c t i n g b a r g i n g t e c h n o l o g y w i l l b e t h e 

p r o v i s i o n o f l a r g e r l o c k c h a m b e r s , a p r o v i s i o n o f 

s i g n i f i c a n c e o n l y t o v e s s e l t o w s e x c e e d i n g 6 0 0 f e e t i n 

l e n g t h , f o r w h i c h t h e l o n g e r c h a m b e r s w i l l e l i m i n a t e t h e 

p r e s e n t n e c e s s i t y o f d o u b l e - l o c k i n g , ' b u t o f n o s i g n i f i c a n t 

t e c h n o l o g i c a l o r e c o n o m i c a d v a n t a g e t o t h e l a r g e n u m b e r o f 

s h o r t e r t o w s . O t h e r t h a n t h i s i m p r o v e m e n t , v i r t u a l l y t h e 

o n l y m e a n i n g f u l f e a t u r e o f t h e r e p l a c e m e n t f a c i l i t i e s , a n d 

t h e i r o v e r r i d i n g j u s t i f i c a t i o n , w i l l b e a n e n l a r g e m e n t o f 

t r a f f i c c a p a c i t y , p e r m i t t i n g a c o n t i n u a t i o n o f t h e 

t e c h n o l o g i c a l a n d e c o n o m i c c h a r a c t e r i s t i c s o f c o m m e r c i a l 

n a v i g a t i o n o n t h e U p p e r M i s s i s s i p p i a n d I l l i n o i s R i v e r s 

w h i c h h a v e a l r e a d y p r e v a i l e d f o r a p p r o x i m a t e l y 3 0 y e a r s ;

( f ) W h i l e a l l e g e d b y p l a i n t i f f s t h a t t h e d i m e n s i o n s 

o f t h e p r o j e c t e d l o c k s w o u l d p r o v i d e f o r a 1 2 - f o o t v e s s e l 

d r a f t o v e r t h e s i l l s , t h e p r o v i s i o n o f a m i n i m u m d r a f t o f 

1 2 f e e t , i n p l a c e o f t h e p r e s e n t 9 - f o o t d r a f t i n t h e r i v e r 

r e a c h e s s e r v e d , i s n o t a f e a t u r e o f t h e p r o j e c t . T h e
1 6 1

p r o v i s i o n o f a c h a n n e l w i t h a m i n i m u m d e p t h o f 1 2 f e e t 

i n t h e s e r e a c h e s i s s u b j e c t t o f u t u r e s e p a r a t e a n d 

i n d e p e n d e n t d e c i s i o n b y t h e p u b l i c a u t h o r i t y . E v e n i f 

t h i s d e c i s i o n s h o u l d , a t s o m e f u t u r e t i m e , b e i n t h e 

a f f i r m a t i v e , t h e p r o v i s i o n o f t h e 1 2 - f o o t c h a n n e l w o u l d 

r e q u i r e t h e r e p l a c e m e n t o r r e c o n s t r u c t i o n o f t h e n u m e r o u s 

p r e s e n t l o c k - a n d - d a m i n s t a l l a t i o n s o v e r t h e f u l l e x t e n t 

o f t h e U p p e r M i s s i s s i p p i a n d I l l i n o i s R i v e r s a n d t h u s 

c o u l d n o t b e a v a i l a b l e t o n a v i g a t i o n f o r m a n y y e a r s 

s u b s e q u e n t t o t h e c o m p l e t i o n o f t h e p r o j e c t e d i n s t a l l a ­

t i o n a t L o c k s a n d D a m N o . 2 6. F o r t h i s r e a s o n , t h e n i n e - 

f o o t c h a n n e l p r o v i d e d b y t h e p r e s e n t s y s t e m s i n c e 1 9 3 9 

m u s t i n e v i t a b l y b e a f e a t u r e o f n a v i g a t i o n , f o r m u c h o f 

t h e s e r v i c e l i f e o f t h e p r o j e c t e d i n s t a l l a t i o n , a n d 

p o s s i b l y f o r a l l o f i t . T h u s , a p a r t f r o m t h e e l i m i n a t i o n 

o f d o u b l e - l o c k i n g f o r l a r g e r t o w s o f v e s s e l s , t h e p r o ­

j e c t e d i n s t a l l a t i o n w i l l n o t i n s t i t u t e s u b s t a n t i a l 

a l t e r a t i o n i n t h e t e c h n o l o g y , e f f i c i e n c y , o r e c o n o m i c s 

o f c o m m e r c i a l n a v i g a t i o n f r o m t h a t w h i c h p r e v a i l e d f o r 

a p p r o x i m a t e l y 3 0 y e a r s a f t e r 1 9 3 9 . N o r , t h e r e f o r e , w i l l 

i t i n s t i t u t e a n y d e c i s i v e a l t e r a t i o n i n l o n g - e x i s t i n g 

c o m p e t i t i v e r e l a t i o n s h i p s b e t w e e n r a i l a n d w a t e r t r a n s ­

p o r t a t i o n . T h e p r i n c i p a l c o n s e q u e n c e o f t h e p r o j e c t w i l l 

b e t h e p r o v i s i o n o f w a t e r b o r n e t r a f f i c c a p a c i t y i n e x c e s s 

o f p r e s e n t t r a f f i c d e m a n d a n d t h e c o n s e q u e n t r e d u c t i o n 

o r e l i m i n a t i o n o f c o n g e s t i o n s o a s t o r e s t o r e t h e f r e e d o m 

a n d c o n t i n u i t y o f m o v e m e n t w h i c h h a v e a l r e a d y c h a r a c t e r ­

i z e d t h e e x i s t i n g s y s t e m f o r a p p r o x i m a t e l y 3 0 y e a r s .
1 6 2

) T h e p r o v i s i o n o f s u c h a d d i t i o n a l c a p a c i t y 

w i l l p e r m i t t h e c o n t i n u e d g r o w t h o f w a t e r b o r n e c o m m e r c e 

i n t h e U p p e r M i s s i s s i p p i B a s i n . T h i s , t o o , w i l l 

c o n s t i t u t e , n o t a n i n n o v a t i o n , b u t a c o n t i n u a t i o n o f l o n g - 

s u s t a i n e d p a s t t r e n d s . O n i n f o r m a t i o n a n d b e l i e f , 

a f f i a n t s t a t e s t h a t t h e C o r p s o f E n g i n e e r s , U . S . A r m y , 

p r o j e c t s t r a f f i c d e m a n d a t L o c k s a n d D a m N o . 2 6 a s r i s i n g 

f r o m 4 6 . 2 m i l l i o n t o n s i n 1 9 7 0 t o 7 0 . 0 m i l l i o n i n 1 9 8 0 ,

a n i n c r e a s e o f 2 3 . 8 m i l l i o n t o n s , o r 5 1 . 5 p e r c e n t . 

C o m p a r i n g t h i s w i t h p a s t g r o w t h , t r a f f i c m o v e m e n t t h r o u g h 

L o c k s a n d D a m N o . 2 6 i n 1 9 6 0 w a s 2 1 . 2 m i l l i o n t o n s , s o 

t h a t t h e r i s e t o 4 6 . 2 m i l l i o n i n 1 9 7 0 r e p r e s e n t e d a p a s t 

i n c r e a s e g r e a t e r t h a n t h a t p r o j e c t e d f o r t h e f u t u r e , 

n a m e l y 2 5 . 0 m i l l i o n t o n s , o r 1 1 7 . 9 p e r c e n t . T h e r e f o r e , 

t h e f u t u r e g r o w t h i n w a t e r b o r n e t o n n a g e c o n t e m p l a t e d i n 

t h e r e p l a c e m e n t p r o j e c t r e p r e s e n t s a m a g n i t u d e a n d r a t e 

o f g r o w t h n o g r e a t e r t h a n t h a t a l r e a d y u n d e r w a y o v e r p a s t 

y e a r s . S u c h p r o j e c t e d g r o w t h i s t h u s n o t a s i g n i f i c a n t 

a l t e r a t i o n i n t h e c o m p e t i t i v e r e l a t i o n s h i p s b e t w e e n r a i l 

a n d w a t e r t r a n s p o r t a t i o n i n t h e U p p e r M i s s i s s i p p i B a s i n .

(h) I n a s m u c h , t h e r e f o r e , a s t h e p r o j e c t e d r e p l a c e ­

m e n t i n s t a l l a t i o n a t L o c k s a n d D a m N o . 2 6 w i l l n o t 

i n c o r p o r a t e a n y s u b s t a n t i a l c h a n g e i n r a i l - w a t e r c o m p e t i ­

t i v e r e l a t i o n s h i p s , e i t h e r a s t o n a v i g a t i o n t e c h n o l o g y

o r a s t o r a t e o f t r a f f i c g r o w t h , f r o m t h o s e p r e v i o u s l y 

p r e v a i l i n g o v e r m a n y y e a r s , i t m a y b e c o n c l u d e d t h a t t h e 

p r o s p e c t s f o r t h e d i r e c o n s e q u e n c e s a n t i c i p a t e d b y 

p l a i n t i f f s m a y b e s u i t a b l y a p p r a i s e d b y r e f e r e n c e t o t h e

- 8 -
1 6

e x p e r i e n c e o f t h e r i v e r v a l l e y r a i l r o a d s o v e r t h e 

p e r i o d s u b s e q u e n t t o c o m p l e t i o n o f t h e e x i s t i n g 

n a v i g a t i o n s y s t e m s o f t h e U p p e r M i s s i s s i p p i a n d 

I l l i n o i s R i v e r s .

(i) B e c a u s e o f t h e s p e c i a l c i r c u m s t a n c e s

o f W o r l d W a r I I, t h e b e a r i n g o f t h e n a v i g a t i o n s y s t e m s 

o f t h e U p p e r M i s s i s s i p p i a n d I l l i n o i s R i v e r s o n r a i l - 

w a t e r c o m p e t i t i v e r e l a t i o n s h i p s b e c o m e s c l e a r l y 

d i s c e r n a b l e o n l y a f t e r t h e e n d o f t h e w a r i n 1 9 4 5 . T h e 

C o r p s o f E n g i n e e r s , U . S . A r m y , r e p o r t s t h a t t h e m a g n i ­

t u d e o f w a t e r b o r n e c a r g o c a r r i e d i n s h a l l o w - d r a f t 

c o m m e r c e o n t h e m a i n s t r e a m o f t h e M i s s i s s i p p i R i v e r ,

e x t e n d i n g f r o m M i n n e a p o l i s a n d t h e G u l f o f M e x i c o ,

1 /

a m o u n t e d i n . 1 9 4 6 t o 8 . 2 b i l l i o n t o n - m i l e s . F o r t h e 

s a m e r e a c h o f t h e M i s s i s s i p p i , t h e C o r p s r e p o r t s a 

s h a l l o w - d r a f t t o n - m i l e a g e i n 1 9 7 1 o f 8 1 . 1 b i l l i o n , 

v i r t u a l l y t e n - f o l d t h e 1 9 4 6 v o l u m e . T h e y e a r - b y - y e a r 

p o s t w a r r e c o r d a p p e a r s h e r e w i t h a s E x h i b i t I .

( j ) T o a p p r a i s e a n y d i s c e r n a b l e e f f e c t o f t h i s 

p o s t w a r g r o w t h i n w a t e r b o r n e c o m m e r c e o n t h e r i v e r 

v a l l e y r a i l r o a d s , a f f i a n t h a s r e f e r r e d t o r e p o r t s o f 

t h e I n t e r s t a t e C o m m e r c e C o m m i s s i o n . H e h a s s o u g h t t o 

s e l e c t f o r t h i s p u r p o s e r a i l r o a d c o m p a n i e s — m o s t o f 

w h o s e m a i n l i n e t r a c k a g e i s p a r a l l e l t o t h e M i s s i s s i p p i 

a n d I l l i n o i s R i v e r s . T h e I n t e r s t a t e C o m m e r c e C o m m i s s i o n

1 / U . S . D e p a r t m e n t o f t h e A r m y , C o r p s o f E n g i n e e r s , 

W a t e r b o r n e C o m m e r c e o f t h e U n i t e d S t a t e s , C a l e n d a r Y e a r 1 9 5 5 , 

P a r t 2 , N e w O r l e a n s , L o u i s i a n a , 1 9 5 5 , p a g e I X .
1 6 4

r e p o r t s f r e i g h t d a t a o n l y b y r a i l r o a d c o m p a n i e s a n d n o t 

b y t r a c k a g e l i n e s . W h i l e n u m e r o u s • r a i l r o a d c o m p a n i e s 

h a v e t r a c k a g e p a r a l l e l t o t h e r i v e r s , f o r m a n y o f t h e s e 

c o m p a n i e s m o s t o f t h e i r t r a c k a g e i s n o t r i v e r - p a r a l l e l 

s o t h a t , s e p a r a t e d a t a o n t h e r i v e r - p a r a l l e l t r a c k a g e 

n o t b e i n g a v a i l a b l e , t h e f r e i g h t - c a r r y i n g e x p e r i e n c e o f 

t h e s e c o m p a n i e s w o u l d n o t b e r e v e a l i n g a s t o t h e p o s s i b l e 

e f f e c t o f w a t e r w a y c o m p e t i t i o n .

( k ) T h e e l i m i n a t i o n f r o m c o n s i d e r a t i o n o f s u c h 

c o m p a n i e s h a s l e f t a f f i a n t w i t h a s e l e c t e d l i s t o f f o u r 

r a i l r o a d c o m p a n i e s , m o s t o f w h o s e m a i n l i n e t r a c k a g e 

a p p e a r s r e a s o n a b l y p a r a l l e l t o t h e M i s s i s s i p p i R i v e r 

a n d i t s m a j o r t r i b u t a r i e s a n d , t o s o m e d e g r e e , t o t h e 

B l a c k W a r r i o r - T o m b i g b e e R i v e r s y s t e m a n d t o a p o r t i o n 

o f t h e G u l f I n t r a c o a s t a l W a t e r w a y . T h e s e f o u r r a i l r o a d 

c o m p a n i e s a r e : ( 1 ) I l l i n o i s C e n t r a l G u l f R a i l r o a d 

C o m p a n y , (2) L o u i s v i l l e &' N a s h v i l l e R a i l r o a d C o m p a n y ,

( 3 ) M i s s o u r i P a c i f i c R a i l r o a d C o m p a n y , a n d (4) S t . L o u i s - 

S a n F r a n c i s c o R a i l w a y C o m p a n y . A f f i a n t h a s e x a m i n e d 

d a t a o n t o n - m i l e s o f r e v e n u e f r e i g h t c a r r i e d a n d o n 

f r e i g h t r e v e n u e o f t h e s e f o u r r a i l r o a d s f o r t h e y e a r s 

1 9 4 6 t h r o u g h 1 9 7 1 , t h e l a t e s t y e a r r e p o r t e d . H e h a s 

a d j u s t e d t h e y e a r - t o - y e a r d a t a f o r m e r g e r s w h i c h h a v e 

o c c u r r e d s i n c e 1 9 4 6 a f f e c t i n g t h e s e r a i l r o a d c o m p a n i e s . 

A f f i a n t h a s c o m p a r e d t h e d a t a f o r t h e s e f o u r r a i l r o a d 

c o m p a n i e s w i t h c o r r e s p o n d i n g d a t a f o r a l l o t h e r C l a s s I 

«■ I I l i n e h a u l r a i l r a o d s i n t h e U n i t e d S t a t e s . T h e

- 1 0 -
1 6 5

r e s u l t i n g c o m p a r i s o n s a r e d e r i v e d d i r e c t l y f r o m 

r e p o r t s o f t h e I n t e r s t a t e C o m m e r c e •C o m m i s s i o n . —

( l ) A f f i a n t p r e s e n t s a s E x h i b i t I I t h e 

c o m p a r a t i v e t o n - m i l e a g e s o f f r e i g h t c a r r i e d .

( m ) D u r i n g t h e 2 6 - y e a r p e r i o d o f v e r y 

s u b s t a n t i a l g r o w t h o f i n l a n d w a t e r b o r n e c o m m e r c e o n t h e 

M i s s i s s i p p i R i v e r , t h e f o u r r a i l r o a d s w h o s e p r i n c i p a l 

t r a c k a g e l i n e s a r e p a r a l l e l t o t h e r i v e r e x p e r i e n c e d

a n i n c r e a s e o f 7 6 . 2 p e r c e n t i n t o n - m i l e s o f r e v e n u e 

f r e i g h t c a r r i e d i n c o n t r a s t w i t h a n i n c r e a s e o f o n l y 

1 8 . 6 p e r c e n t e x p e r i e n c e d b y a l l o t h e r l i n e h a u l r a i l r o a d s 

i n t h e U n i t e d S t a t e s . F u r t h e r , t h e l a r g e r t o n - m i l e a g e 

o f t h e r i v e r - p a r a l l e l r a i l r o a d s w a s s u s t a i n e d t h r o u g h ­

o u t t h e 2 6 - y e a r p e r i o d , a n d i n t w o o f t h e f i v e - y e a r 

i n t e r v a l s s h o w n , n a m e l y , f r o m 1 9 5 1 t o 1 9 5 6 a n d a g a i n 

f r o m 1 9 6 6 t o 1 9 7 1 , t h e t o n - m i l e a g e o f t h e r i v e r -

p a r a l l e l r a i l r o a d s i n c r e a s e d w h i l e t h a t o f a l l o t h e r 

U . S . r a i l r o a d s d e c l i n e d . ( Se e E xh ib it II).

( n ) T o d e t e r m i n e i f t h e i n c r e a s e i n f r e i g h t 

c a r r i e d w a s a s s o c i a t e d w i t h a c o r r e s p o n d i n g i n c r e a s e 

i n r e v e n u e o f t h e r i v e r - p a r a l l e l r a i l r o a d s , a f f i a n t 

p r e p a r e d f r o m t h e s a m e I n t e r s t a t e C o m m e r c e C o m m i s s i o n 

s o u r c e t h e a n a l y s i s o f f r e i g h t r e v e n u e s e t f o r t h

i n E x h i b i t I I I .

1 / I n t e r s t a t e C o m m e r c e C o m m i s s i o n , T r a n s p o r t S t a t i s t i c s 

i n t h e U n i t e d S t a t e s , P a r t 1 , R a i l r o a d s , W a s h i n g t o n , D .C ., 

R e s p e c t i v e Y e a r s .

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) T h e d a t a o f t h e I n t e r s t a t e C o m m e r c e

C o m m i s s i o n d e m o n s t r a t e t h a t , d u r i n g t h e 2 6 - y e a r

p e r i o d o f v e r y l a r g e c o n c u r r e n t g r o w t h i n d o m e s t i c 

w a t e r b o r n e c o m m e r c e o n t h e M i s s i s s i p p i R i v e r , t h e 

f r e i g h t r e v e n u e s o f t h e r a i l r o a d s w h o s e p r i n c i p a l 

l i n e s p a r a l l e l t h a t r i v e r i n c r e a s e d b y 1 7 3 . 4 p e r c e n t , 

a n d i n 1 9 7 1 w e r e 2 . 7 - f o l d t h e l e v e l o f 1 9 4 6 . M e a n w h i l e , 

t h e f r e i g h t r e v e n u e s o f a l l o t h e r l i n e h a u l r a i l r o a d s 

i n t h e U n i t e d S t a t e s h a d i n c r e a s e d b y o n l y 9 3 . 7 p e r c e n t , 

o r a p p r o x i m a t e l y 1 . 9 - f o l d t h e 1 9 4 6 l e v e l . T h e s e d a t a 

d e m o n s t r a t e a l s o t h a t t h e d i f f e r e n t i a l f a v o r a b l e t o t h e 

r i v e r v a l l e y r a i l r o a d s w a s s u s t a i n e d i n e a c h o f t h e 

f i v e - y e a r i n t e r v a l s o f t h e e n t i r e p e r i o d . ( S e e E x h i b i t III).

( p ) T h e e v i d e n c e , t h e r e f o r e , a p p e a r s c l e a r t h a t 

t h e r a i l - w a t e r c o m p e t i t i v e r e l a t i o n s h i p w h i c h p r e v a i l e d 

s i n c e W o r l d W a r I I , a n d w h i c h w o u l d n o t b e s u b s t a n t i a l l y 

a l t e r e d b y t h e p r o j e c t e d r e p l a c e m e n t i n s t a l l a t i o n a t 

L o c k s a n d D a m N o . 2 6 , d i d n o t e n t a i l f o r t h e a f f e c t e d 

r a i l r o a d s t h a t t h e y b e " f o r c e d i n t o b a n k r u p t c y o r o t h e r 

d e s p e r a t e f i n a n c i a l s t r a i t s b y t h e C o r p s ' a c t i o n s o n t h e 

U p p e r M i s s i s s i p p i R i v e r " , a s s t a t e d i n p l a i n t i f f s ' 

A l l e g a t i o n 5 , d ( 4 ) , n o r , i n c o n s e q u e n c e o f a l l e g e d t r a f f i c 

l o s s e s t o t h e r a i l r o a d s , t h a t t h e r e w o u l d b e a " h i g h e r 

s h a r e o f r a i l r o a d f i x e d p l a n t c o s t s " t o b e r e c o v e r e d 

f r o m n o n - w a t e r w a y s h i p p e r s a n d c o n s u m e r s , a s s t a t e d i n 

p l a i n t i f f s ' A l l e g a t i o n 4 ( b ) . O n t h e c o n t r a r y , t h e 

o f f i c i a l r e c o r d i s c l e a r t h a t t h e g r o w t h i n w a t e r b o r n e

1 2
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c o m m e r c e h a s b e e n a c c o m p a n i e d b y a v e r y s u b s t a n t i a l 

g r o w t h i n b o t h t h e p h y s i c a l v o l u m e a n d t h e r e v e n u e s 

o f f r e i g h t c a r r i e d b y t h e r i v e r - p a r a l l e l r a i l r o a d s — 

a g r o w t h s u p e r i o r t o t h a t o f t h e r e m a i n d e r o f t h e 

U . S . r a i l r o a d s y s t e m .

(q) A n a u t h o r i t a t i v e r e p o r t o f t h e U . S .

D e p a r t m e n t o f T r a n s p o r t a t i o n d e m o n s t r a t e s t h a t t h e 

p a s t w a t e r - r a i l r e l a t i o n s h i p i n t h e c a r r i a g e o f 

d o m e s t i c f r e i g h t m a y b e p r o j e c t e d f o r t h e f u t u r e a s 

a s t a t i s t i c a l l y v a l i d e x p e c t a n c y . T h e c o n c u r r e n t 

p a s t g r o w t h i n w a t e r a n d r a i l f r e i g h t v o l u m e 

d e m o n s t r a t e d i n t h e e x h i b i t s a t t a c h e d i s r e p e a t e d 

i n p r o j e c t i o n s o f t h e U . S . D e p a r t m e n t o f T r a n s p o r t a t i o n 

f o r t h e y e a r 1 9 9 0 . I n i t s 1 9 7 2 N a t i o n a l T r a n s p o r t a t i o n 

R e p o r t , t h e D e p a r t m e n t p r o j e c t s a n i n c r e a s e i n y e a r l y 

r a i l r o a d f r e i g h t f r o m 1 9 7 0 t o 1 9 9 0 o f 4 8 3 b i l l i o n t o n - 

m i l e s a n d a c o n c u r r e n t i n c r e a s e i n w a t e r b o r n e f r e i g h t 

( i n c l u d i n g d o m e s t i c d e e p - d r a f t f r e i g h t a s w e l l a s

s h a l l o w - d r a f t i n l a n d m o v e m e n t s ) o f 4 5 6 b i l l i o n t o n - m i l e s .

( 8 ) I n A l l e g a t i o n 4 4 o f t h e i r C o m p l a i n t , p l a i n t i f f s 

e x p r e s s a n x i e t y a s t o t h e v a s t u n d e r u t i l i z a t i o n o f r a i l r o a d 

c a p a c i t y . W h i l e p l a i n t i f f s a r e n o t s p e c i f i c a s t o t h e c a t e g o r y 

o f c a p a c i t y w h i c h t h e y b e l i e v e i s u n d e r u t i l i z e d , t h e p e r s i s t e n c e 

o f s e v e r e r a i l w a y f r e i g h t c a r s h o r t a g e s i m p l i e s t h a t t h e a l l e g e d 

u n d e r u t i l i z e d c a p a c i t y m u s t r a t h e r b e t h a t o f r i g h t s - o f - w a y a n d

1 / U . S . D e p a r t m e n t o f T r a n s p o r t a t i o n , 1 9 7 2 N a t i o n a l 

T r a n s p o r t a t i o n R e p o r t , E x e c u t i v e S u m m a r y , W a s h i n g t o n , D . C . , 

J u l y 1 9 7 2 , p a g e 5 .

1 3
1 6 8

t e r m i n a l s . P a s t a n d p r o j e c t e d g r o w t h i n r a i l w a y f r e i g h t t r a f f i c , 

h o w e v e r , d e m o n s t r a t e s t h a t t h i s c a p a c i t y h a s b e e n a n d w i l l 

c o n t i n u e t o b e e v e r m o r e f u l l y u t i l i z e d c o n c u r r e n t l y w i t h t h e 

g r o w t h i n w a t e r b o r n e f r e i g h t c a r r i a g e . A c c o r d i n g t o t h e I n t e r ­

s t a t e C o m m e r c e C o m m i s s i o n , t h e y e a r l y v o l u m e o f r e v e n u e f r e i g h t 

c a r r i e d b y A m e r i c a n r a i l r o a d s g r e w d u r i n g t h e 2 6 - y e a r p r i o d ,

1 9 4 6 t o 1 9 7 2 , b y 1 8 9 b i l l i o n t o n - m i l e s , a n a v e r a g e o f 7 . 3 b i l l i o n 

p e r y e a r . T h e a b o v e - c i t e d r e p o r t o f t h e D e p a r t m e n t o f T r a n s p o r ­

t a t i o n p r o j e c t s f o r t h e 1 8 - y e a r p e r i o d 1 9 7 2 t o 1 9 9 0 , a f u r t h e r 

g r o w t h o f 4 3 9 b i l l i o n t o n - m i l e s , a n a v e r a g e o f 2 4 . 4 b i l l i o n p e r 

y e a r ; t h a t i s , a g r o w t h r a t e o f 3 - f o l d t h a t o f t h e p o s t w a r 

p e r i o d t o 1 9 7 2 . T h u s , t h e p r o v i s i o n o f a d e q u a t e c a p a c i t y f o r 

w a t e r b o r n e c a r r i a g e o n t h e M i s s i s s i p p i R i v e r a t L o c k s a n d D a m 

N o . 2 6 i s f u l l y h a r m o n i o u s w i t h a n o u t l o o k f o r e v e r m o r e f u l l 

u t i l i z a t i o n o f w h a t e v e r u n d e r u t i l i z e d c a p a c i t y p l a i n t i f f s 

c o n t e m p l a t e i n t h e i r C o m p l a i n t ;

(9) A f f i a n t s t a t e s , a s h i s p r o f e s s i o n a l o p i n i o n , t h a t 

t h e c o n c u r r e n t g r o w t h i n w a t e r b o r n e a n d r a i l w a y f r e i g h t , b o t h 

p a s t a n d p r o s p e c t i v e , r e f l e c t s t h e g r o w i n g r e q u i r e m e n t s o f t h e 

n a t i o n a l e c o n o m y , t h a t t h e c o n t i n u e d e x p a n s i o n o f t h e r e a l 

G r o s s N a t i o n a l P r o d u c t , r e p r e s e n t i n g b o t h t h e r i s e i n p o p u l a t i o n 

a n d t h e i n c r e a s e d v o l u m e o f p r o d u c t i o n a n d c o n s u m p t i o n p e r c a p i t a 

r e q u i r e s a c o r r e s p o n d i n g e x p a n s i o n i n t h e v o l u m e o f f r e i g h t 

c a r r i a g e b y a l l m o d e s o f t r a n s p o r t a t i o n , a n d t h a t t h e p e r p e t u a t i c 

o f o u t m o d e d f a c i l i t i e s o f i n a d e q u a t e c a p a c i t y i n a n y m o d e o f 

f r e i g h t t r a n s p o r t a t i o n i s i n j u r i o u s t o t h e n a t i o n a l e c o n o m y . 

P l a i n t i f f s a l l e g e t h a t t h e r e w o u l d b e a n a d v e r s e " r i p p l e e f f e c t " 

o n t h e r e g i o n a l e c o n o m y o f t h e c e n t r a l a n d u p p e r M i s s i s s i p p i

1 4
1 6 9

V a l l e y o f p r o v i d i n g e n l a r g e d c a p a c i t y f o r w a t e r b o r n e c o m m e r c e 

o n t h e M i s s i s s i p p i R i v e r . I n t h e o p i n i o n o f t h i s a f f i a n t , 

h o w e v e r , t h e a d v e r s e " r i p p l e e f f e c t " w o u l d b e c o n s e q u e n t u p o n 

f a i l u r e t o p r o v i d e t h i s c a p a c i t y .

( 10 ) T o a c o n s i d e r a b l e e x t e n t , t h e c o n c u r r e n t p a s t a n d 

p r e s e n t g r o w t h o f w a t e r a n d r a i l t r a n s p o r t a t i o n r e f l e c t s t h e 

c o m p l e m e n t a r i t y t o e a c h o t h e r o f t h e t w o m o d e s , p a r t i c u l a r l y i n 

t h e g r o w i n g v o l u m e o f r a i l - w a t e r i n t e r c h a n g e t r a f f i c . S e v e r a l 

i l l u s t r a t i o n s m a y b e c i t e d . O n i n f o r m a t i o n a n d b e l i e f , a f f i a n t 

r e f e r s t o u p b o u n d c o a l m o v e m e n t s o n t h e M i s s i s s i p p i R i v e r f r o m 

S o u t h e r n I l l i n o i s t o t h e T w i n C i t i e s a r e a w h i c h o r i g i n a t e a t 

i n l a n d m i n e s a n d a r e c o n v e y e d b y r a i l t o r i v e r t e r m i n a l s f o r 

u p s t r e a m c a r r i a g e . O n N o v e m b e r 2 0, 1 9 7 3 , t h e T e x a s G a s T r a n s ­

m i s s i o n C o r p o r a t i o n a n d B u r l i n g t o n N o r t h e r n , I n c . , j o i n t l y 

a n n o u n c e d a p r e l i m i n a r y a g r e e m e n t f o r t h e r a i l r o a d t r a n s p o r t a ­

t i o n b y u n i t t r a i n s o f l o w s u l p h u r c o a l f r o m t h e N o r t h D a k o t a , 

M o n t a n a , a n d W y o m i n g r e g i o n t o a t e r m i n a l o n t h e M i s s i s s i p p i 

R i v e r f o r d i s t r i b u t i o n b y r i v e r b a r g e s t o e l e c t r i c u t i l i t i e s a t 

v a r i o u s c o n s u m i n g l o c a t i o n s o n t h e r i v e r s y s t e m , a n d o n 

J a n u a r y 3 0, 1 9 7 4 , t h e s u b s i d i a r y b a r g e l i n e o f T e x a s G a s T r a n s ­

m i s s i o n d i s c l o s e d p l a n s f o r s i t i n g o f t h i s t e r m i n a l o n t h e 

M i s s i s s i p p i R i v e r n e a r S t. L o u i s a n d t h e e x p e c t a t i o n o f a c a p a c i t 

o f 2 0 m i l l i o n t o n s o f c o a l p e r y e a r ;

( 1 1 ) O n i n f o r m a t i o n a n d b e l i e f , a f f i a n t r e f e r s f u r t h e r 

t o t h e f i l i n g i n 1 9 6 8 b y f i v e M i s s i s s i p p i R i v e r b a r g e l i n e s a n d 

t h e C h i c a g o a n d N o r t h W e s t e r n R a i l w a y o f j o i n t r a t e s f o r t h e 

m o v e m e n t o f g r a i n f r o m i n t e r i o r f a r m r e g i o n s i n t h e s t a t e o f 

I o w a v i a t h e M i s s i s s i p p i R i v e r t o t h e G u l f C o a s t f o r e x p o r t a n d 

b y a c o r r e s p o n d i n g i n i t i a t i v e o f t h e T o l e d o , P e o r i a a n d W e s t e r n

1 5
1 7 0

R a i l r o a d f o r a r a i l - b a r g e s e r v i c e o n g r a i n f r o m u p p e r I l l i n o i s 

i n t o P e o r i a . I n J u l y 1 9 7 4 , t h e C h i c a g o , M i l w a u k e e , S t . P a u l 

a n d P a c i f i c R a i l r o a d C o m p a n y a n n o u n c e d t h e i n t r o d u c t i o n f o r g r a i n 

s h i p p e r s i n I o w a a n d M i n n e s o t a o f " m i n i u n i t g r a i n t r a i n s " t o 

t r a n s p o r t f a r m c r o p s f r o m i n t e r i o r p o i n t s t o b a r g e l o a d i n g 

f a c i l i t i e s o n t h e M i s s i s s i p p i R i v e r ;

( 12 ) A f f i a n t c i t e s t h e s e i n s t a n c e s a s m e r e l y i l l u s t r a t i v e 

o f a s u b s t a n t i a l a n d g r o w i n g t o n n a g e o f r a i l - b a r g e a n d b a r g e - r a i l 

m o v e m e n t s , t h e c o n t i n u a t i o n a n d g r o w t h o f w h i c h w o u l d b e r e t a r d e d , 

i f n o t t o t a l l y a r r e s t e d , b y f a i l u r e t o p r o v i d e a d e q u a t e n a v i g a ­

t i o n c a p a c i t y o n t h e M i s s i s s i p p i R i v e r . T h e s e c t i o n o f t h e r i v e r 

i n w h i c h t h e L o c k s a n d D a m N o . 2 6 a r e l o c a t e d , a n d t h e i n a d e q u a t e 

c a p a c i t y o f w h i c h w i l l b e r e l i e v e d b y t h e p r o j e c t e d r e p l a c e m e n t

i n s t a l l a t i o n , i s t h e c e n t r a l i n t e r c h a n g e s e c t i o n o f t h e i n l a n d 

r i v e r s y s t e m . W a t e r b o r n e c o m m e r c e o r i g i n a t i n g a n d t e r m i n a t i n g 

o n f i v e m a j o r r i v e r r e a c h e s t r a v e r s e s t h i s s e c t i o n . T h e I l l i n o i s 

t h e U p p e r M i s s i s s i p p i , t h e M i s s o u r i , t h e L o w e r M i s s i s s i p p i , a n d 

t h e O h i o R i v e r s c o m p r i s e a n i n t e g r a l t r a n s p o r t a t i o n s y s t e m o n l y 

b y v i r t u e o f t h e i r c o n v e r g e n c e h e r e . T h e a r r e s t o f t r a f f i c 

g r o w t h i n t h i s s e c t i o n , t h e r e f o r e , w o u l d h a v e a d v e r s e c o n s e ­

q u e n c e s t h r o u g h o u t t h e r i v e r s y s t e m , e x t e n d i n g f r o m P i t t s b u r g h t o 

K a n s a s C i t y a n d f r o m C h i c a g o a n d M i n n e a p o l i s t o t h e G u l f C o a s t , 

w i t h r e s p e c t t o b o t h a l l - b a r g e a n d t h e g r o w i n g r a i l - b a r g e 

s e c t o r s o f t h e t r a f f i c ;

( 13 ) P l a i n t i f f s a l l e g e t h a t s h i p p e r s a n d c o m m u n i t i e s

•• 

r e m o t e f r o m n a v i g a b l e r i v e r s a n d d e p e n d e n t o n n o n - w a t e r w a y m o d e s 

o f t r a n s p o r t a t i o n w i l l b e i n j u r e d b y t h e e x p a n s i o n o f w a t e r w a y

- 1 6 -
1 7 1 

c a r r i a g e , w h i c h t h e r e p l a c e m e n t i n s t a l l a t i o n w i l l m a k e p o s s i b l e , 

b y v i r t u e o f t h e r e d u c t i o n i n t h e v o l u m e o f r a i l f r e i g h t a l l e g e d l y 

c o n s e q u e n t u p o n t h i s e x p a n s i o n . T h e p a s t a n d p r o j e c t e d f u t u r e 

g r o w t h i n r a i l r o a d f r e i g h t v o l u m e a n d r e v e n u e s c o n c u r r e n t w i t h 

w a t e r w a y t r a f f i c e x p a n s i o n c i t e d a b o v e i n t h i s a f f i d a v i t d e m o n ­

s t r a t e s t h a t t h i s a l l e g a t i o n i s w i t h o u t f o u n d a t i o n i n f a c t . 

F u r t h e r , t h e l a r g e a n d g r o w i n g v o l u m e o f r a i l - w a t e r i n t e r c h a n g e 

m o v e m e n t s s e r v i n g o r i g i n a t i n g c o m m u n i t i e s r e m o t e f r o m n a v i g a b l e 

w a t e r s , i n c l u d i n g , f o r e x a m p l e , t h e p r e v i o u s l y c i t e d m i n i n g 

a r e a s o f W y o m i n g , M o n t a n a , a n d N o r t h D a k o t a , a n d f a r m r e g i o n s o f 

I o w a a n d t h e i n t e r i o r o f I l l i n o i s , e x t e n d t h e b e n e f i t s o f w a t e r 

t r a n s p o r t a t i o n t o i n t e r i o r r e g i o n s a t l o n g d i s t a n c e s f r o m 

n a v i g a b l e w a t e r s . I n a d d i t i o n t o t h e r a i l - w a t e r m o v e m e n t s c i t e d , 

a f f i a n t i s i n f o r m e d b y s h i p p i n g i n t e r e s t s i n t h e T w i n C i t i e s a n d 

b e l i e v e s t h a t t h e r e a r e l a r g e v o l u m e s o f f a r m c r o p s o r i g i n a t i n g 

i n i n l a n d a r e a s o f M i n n e s o t a a n d S o u t h D a k o t a b y t r u c k f o r b a r g e 

t r a n s s h i p m e n t a t t h e h e a d o f M i s s i s s i p p i R i v e r n a v i g a t i o n ;

( 14 ) I n a f f i a n t ' s p r o f e s s i o n a l o p i n i o n , a n y d e l a y i n t h e 

i n i t i a t i o n o f c o n s t r u c t i o n o f t h e r e p l a c e m e n t f a c i l i t y a t L o c k s 

a n d D a m N o . 2 6 w o u l d b e s e r i o u s l y i n j u r i o u s t o n u m e r o u s s h i p p i n g 

a n d c o m m u n i t y i n t e r e s t s r e l i a n t o n w a t e r b o r n e t r a n s i t s a t t h i s 

p o i n t . A s s u m i n g t h e b e g i n n i n g o f c o n s t r u c t i o n i n 1 9 7 4 , o n 

i n f o r m a t i o n a n d b e l i e f , t h e C o r p s o f E n g i n e e r s h a s s c h e d u l e d 

c o m p l e t i o n o f t h e p r o j e c t f o r t h e y e a r 1 9 8 5 . A t t h e r a t e o f 

g r o w t h o f t r a f f i c d e m a n d w h i c h h a s c o n t i n u e d s i n c e t h e e n d o f 

W o r l d W a r I I , i t m a y b e c o n f i d e n t l y p r o j e c t e d t h a t , w e l l b e f o r e 

1 9 8 5 , t r a f f i c d e m a n d a t L o c k s N o . 2 6 w i l l b e v e r y g r e a t l y i n

- 1 7 -

5 4- 2 3 9 0 - 7 5 - 12
1 7 2.

e x c e s s o f p r a c t i c a l c a p a c i t y a n d p r o b a b l y e v e n o f p h y s i c a l 

c a p a c i t y . L o s s e s t o t h e s h i p p i n g a n d r e c e i v i n g c o m m u n i t i e s a r e 

t h e r e f o r e i n e v i t a b l e , e v e n a s s u m i n g p r o m p t i n i t i a t i o n a n d 

e x p e d i t i o u s c o n s t r u c t i o n p r o g r e s s . A d e l a y i n t h e b e g i n n i n g o f 

c o n s t r u c t i o n w h i c h w o u l d d e f e r c o m p l e t i o n t o a l a t e r y e a r w o u l d 

h a v e t h e e f f e c t o f p r o l o n g i n g t h e s e l o s s e s f o r a c o r r e s p o n d i n g 

p e r i o d a f t e r 1 9 8 5 ;

( 15 ) A s i l l u s t r a t i v e o f t h e c o m m u n i t y i n t e r e s t s i n v o l v e d , 

t h e C o r p s o f E n g i n e e r s r e p o r t s t h a t i n 1 9 7 2 o v e r 7 9 4 m i l l i o n 

b u s h e l s o f f a r m c r o p s m o v e d d o w n s t r e a m t h r o u g h L o c k s N o . 2 6.

T h e s e c r o p s h a d a f a r m v a l u e , a c c o r d i n g t o r e p o r t s o f t h e U . S . 

D e p a r t m e n t o f A g r i c u l t u r e , o f a b o u t $ 1 . 4 b i l l i o n . ’ O n i n f o r m a ­

t i o n a n d b e l i e f , a f f i a n t f u r t h e r c i t e s t h e g r o w i n g t o n n a g e s o f 

l o w s u l p h u r f u e l o i l m o v e d u p b o u n d v i a L o c k s N o . 2 6 f o r a i r 

p o l l u t i o n a b a t e m e n t i n t h e C h i c a g o a n d o t h e r u p s t r e a m a r e a s a n d 

t h e p r e v i o u s l y c i t e d p r o j e c t e d m o v e m e n t s o f l o w s u l p h u r w e s t e r n 

c o a l . F a r m f e r t i l i z e r s a n d o t h e r c h e m i c a l s u p b o u n d t h r o u g h 

L o c k s N o . 2 6 w i l l b e s i m i l a r l y a f f e c t e d . T h e C h i c a g o D i s t r i c t 

s h i p s l a r g e t o n n a g e s o f f i n i s h e d s t e e l d o w n s t r e a m t o G u l f C o a s t 

a n d o t h e r s o u t h e r n m a r k e t s v i a L o c k s N o . 2 6 i n c o m p e t i t i o n 

p r i n c i p a l l y w i t h i m p o r t e d s t e e l ;

( 16 ) O n t h e b a s i s o f t h e e v i d e n c e c i t e d , t h e r e f o r e , 

a f f i a n t s t a t e s a s h i s p r o f e s s i o n a l o p i n i o n t h a t , w i t h r e s p e c t t o 

t h e r e p l a c e m e n t s t r u c t u r e p r o j e c t e d t o r e p l a c e L o c k s a n d D a m 

N o . 2 6 o n t h e M i s s i s s i p p i R i v e r , t h e p r o m p t i n i t i a t i o n o f 

c o n s t r u c t i o n i s l a c k i n g i n p r o s p e c t o f i m p a r t i n g s u b s t a n t i a l

- 1 8 -
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a v o i d a b l e d e l a y w o u l d e n t a i l h i g h l y d e m o n s t r a b l e a n d s u b s t a n t i a l 

i n j u r y t o t h e m a n y p o p u l o u s a n d g e o g r a p h i c a l l y e x t e n s i v e 

c o m m u n i t i e s a n d i n t e r e s t s r e l i a n t o n t h e p r o j e c t e d f a c i l i t y f o r 

e c o n o m i c a l a c c e s s t o m a r k e t s a n d e s s e n t i a l f u e l s a n d m a t e r i a l s . 

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e st i n s u b m itti n g a c o m me nt w it h r e s p e ct t o t h e l e tt e r 

o f Mr. J o se p h D. Fe e n e y of J ul y 3 t o S e n at o r G ra ve l a n d 

t o my a ffir m ati v e re s p o n s e, I e n cl o s e c o m me nt h e re w it h.

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c o u rt e si e s.

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R E; L E T T E R O F J O S E P H D, F E E N E Y, G E N E R AL C O U N S E L, W E ST E R N R AI L R O A D A S S O CI A TI O N

D A T E D J U L Y 3, 1 9 7 5

T O s e n a t o r m i k e g r a v e l , c h a i r m a n , s u b c o m m i t t e e o n w a t e r r e s o u r c e s

C O M MI T T E E O N P U B LI C W O R K S, U NI T E D S T A T E S S E N A T E

I a m v e r y g r a t e f u l t o t h e s t a f f o f t h e S u b c o m mitt e e o n W at e r R e s o ur c e s 

f o r t h i s o p p o rt u n it y t o c o m m e nt o n M r. F e e n e y' s l e t t e r . Hi s l e t t e r p e rf o r m s 

a u s e f u l s e r vi c e i n d r a wi n g a tt e n ti o n a g ai n t o t h e s t ri k i n g g r o wt h i n f r e i g h t 

c a r ri a g e b y w a t e r w a y - p a r all el r a il r o a d s c o n c u r r e n tl y w it h t r a f fi c g r o w t h o n 

t h e w at e r w a y s.

M r. F e e n e y a d d r e s s e s hi m s elf t o a n a f fi d a v it w hi c h I s u b m itt e d i n t h e 

c a s e o f A t c hi s o n , T o p e k a a n d S a n t a F e R ail w a y C o., e t a l, v . H o w a r d H. 

C all a w a y, e t a l, o n A u g u st 1 6, 1 9 7 ^. T hi s , o f c o u r s e, i s t h e c a s e i n w hi c h 

2 1 w e st e r n r a il r o a d s a n d c e rt a i n e n vir o n m e nt a l gr o u p s o p p o s e d t h e c o n s tr u c ­

ti o n o f a n a vi g a ti o n f a c ilit y o n t h e M i s si s si p p i R i v e r a s a r e pl a c e m e nt f o r 

t h e p r e s e nt L o c k s a n d D a m N o. 2 6. T h e p l a i n tif f s o bj e ct e d e s p e ci a ll y t o t h e 

c o nt e m pl a t e d p r o vi s i o n o f g r e a tl y e x p a n d e d c a p a cit y .

My a f fi d a v it w a s a d dr e s s e d t o a p a r ti c u l a r c o n t e n ti o n o f t h e r a ilr o a d s . 

T h e y c o nt e n d e d t h a t t h e a d diti o n a l c a p a cit y w o ul d d i v e r t a h u g e v ol u m e o f 

f r e i g h t t r a f fi c fr o m r a il t o w at e r a n d f o r c e a hi g h e r s h a r e o f r a ilr o a d 

fi x e d c o st s u p o n n o n - w at e r w a y c o m m u niti e s o n t h e i r li n e s , i n c u r ri n g f o r 

t h e s e c o m m u niti e s e n or m o u s e c o n o mi c l o s s e s . T h e r a il r o a d a ll e g a ti o n s r e f e r 

al s o t o t h e p o s s i b ilit y t h a t t h i s a n ti ci p a t e d d i v e r si o n w o ul d f o r c e t h e 

r a il r o a d s i n t o b a n k r u pt c y o r o t h e r d e s p e r a t e fi n a n c i a l s t r a it s .
1 7 9

T h e p o i n t o f m y a ffi d a v it w hi c h b e a r s o n t h e s e c o n t e n ti o n s w a s a 

li m it e d o n e, a n d I d o n't b eli e v e t h a t M r. F e e n e y' s l e t t e r i m p air s i t a t 

a ll . I si m pl y m a d e t h e f o ll o w i n g o b s e r v a ti o n s :

1. T h e p r o vi s i o n o f a l o c k a g e f a c ili t y o f g r e a t e r c a p a cit y a t t h e

N o. 2 6 s it e w o ul d n o t s u b s t a n ti a ll y a lt e r t h e r a il- w a t e r c o m p e titi v e r e l a ­

ti o n s hi p s w hi c h h a v e e xi s t e d t h e r e si n c e t h e p r e s e n t i n s t a ll a ti o n w a s c o mpl e t e d i n 1 9 3 8 . T h r o u g h m o st o f t h i s 3 6 - y e a r p e ri o d , t h e e x i s ti n g l o c k s 

h a v e h a d a n a b u n d a n c e o f e x c e s s c a p a cit y . A p a rt fr o m e li m i n a ti n g t h e p r e s e nt 

ti m e - c o n s u mi n g p r o c e s s o f d o u bl e -l o c ki n g f o r s o m e o f t h e t r a n s it s , t h e 

p r oj e c t e d f a c ili t y w o ul d m e r e l y e xt e n d i n t o t h e f u t u r e t h e cir c u m st a n c e 

o f e x c e s s c a p a cit y w hi c h h a s alr e a d y p r e v ail e d f o r a l o n g ti m e .

2. T h e r e f o r e , t h e p ri n c i p a l e ff e c t s o f t h e p r o j e c t o n t r a f fi c g r o wt h

b y r a il a n d w at e r a r e c l e a rl y i n d i c a t e d b y r e l a ti o n s h i p s w hi c h h a v e o b t a i n e d 

i n t h e p a s t.

3. Fr o m 1 9 ^ 6 t o 1 9 7 1, t h e y e a rl y t o n - m il e s o f s h a ll o w - d r a ft w at e r b o r n e 

f r e i g h t c a r ri e d o n t h e M i s si s si p p i R i v e r i n c r e a s e d a b o ut I 0 -f o 1 d , fr o m 8. 2 

bi Ili o n t o 8 1 . 1 b illi o n .

U. D u ri n g t h e s a me p e ri o d , t h e t o n - m il e s o f r e v e n u e f r e i g h t c a r ri e d b y 

t h e f o u r r a il r o a d s w hi c h c o ul d b e i d e n tifi e d a s p ri n c i p a ll y c o m p e ti ti v e 

w it h w at e r c a r ri a g e o n t h e M i s si s si p p i R i v e r a n d c o n n e cti n g w at e r s i n c r e a s e d 

b y 7 6. 2 p e r c e n t. T h e c o rr e s p o n di n g i n c r e a s e f o r a ll o t h e r Cl a s s e s I a n d I I 

r a il r o a d s i n t h e U nit e d S t a t e s w a s o n l y 1 8. 6 p e r c e n t.

5. D u ri n g t h i s p e ri o d , t h e f r e i g h t r e v e n u e o f t h e ri v e r - p a r a ll e l r a il ­

r o a d s i n c r e a s e d b y 1 7 3 p e r c e n t, w hil e t h a t o f a ll o t h e r Cl a s s e s I a n d I I 

r a il r o a d s i n t h e U nit e d S t a t e s r o s e o n l y 9 3- 7 p e r c e n t.

6 . I t i s e vi d e n t fr o m t h e f o r e g oi n g t h a t t h e v ol u m e o f f r e i g h t c a r ri e d 

b y t h e w a t e r - p a r a ll e l r a il r o a d s i n c r e a s e d b y a s u b s t a n ti a ll y g r e a t e r
1 8 0

e r c e nt a g e t h a n t h a t o f o t h e r r a il r o a d s t h r o u g h o u t t h e U nit e d S t a t e s c o n ­

c u r r e n tl y w it h a l a r g e i n c r e a s e i n t h e v ol u m e of c a r ri a g e b y w at e r*

7. T hi s g r o w t h i n r a ilr o a d t r a f fi c m a y b e e x p e ct e d t o c o n ti n u e c o n ­

c u r r e n tl y w it h t h e g r o w t h i n w at e r c a r ri a g e i f t h e p a st a v a il a b ilit y o f 

c a p a cit y a t L o c k s a n d 0 a m N o. 2 6 i s r e s t o r e d . I n it s 1 9 7 2 N ati o n al T r a n s ­

p o rt a ti o n R e p o rt , t h e U. S. D e p art m e nt o f T r a n s p o rt a ti o n p r o j e c t s a n i n c r e a s e 

i n y e a rl y w at e r b o r n e f r e i g h t o f 1 +5 6 b illi o n t o n - m il e s fr o m 1 9 7 0 t o 1 9 9 0 

(i n cl u d i n g d o m e sti c d e e p - d r a ft a s w ell a s s h a ll o w - d r a ft c a r ri a g e ). I n t h e 

s a m e r e p o rt, t h e D OT p r o j e c t s a n i n c r e a s e i n r a il r o a d f r e i g h t fr o m 1 9 7 0

t o 1 9 9 0 o f U 8 3 b illi o n t o n - m il e s , a n e nl a r g e m e nt o f 6 5 p e r c e n t. T h er e 

a p p e ar s e v e r y r e a s o n t o b eli e v e t h a t t h e p a r ti c u l a r r a il r o a d s p a r a ll e l t o 

m aj o r w at e r w a y s w ill s h a r e i n t h i s g r o w t h . Fr o m 1 9 7 0 t o 1 9 7 3, t h e t o n - w nil e s 

o f r e v e n u e f r e i g h t c a r ri e d b y t h e f o u r w a t e r - p a r a ll e l r a il r o a d s c it e d i n my 

a f fi d a v it i n c r e a s e d b y 1 9. 2 p e r c e n t} t o n - m il e s c a r ri e d b y a ll o t h e r Cl a s s I 

r a il r o a d s i n t h e c o u ntr y r o s e b y 1 0. 2 p e r c e n t.

8 . T h e c o n c u rr e n t g r o wt h o f r a il a n d w at e r tr a n s p o rt a ti o n i n t h e p a st 

r e fl e c t s t h e n e e d o f a g r o wi n g n a ti o n al a n d i n t e r n a ti o n a l e c o n o m y f o r a 

ri s i n g v ol u m e o f s e r vi c e b y b ot h m o d e s, a n d t h e r e i s e v e r y p r o s p e ct t h a t 

t h i s n e e d w ill b e a t l e a s t a s u r g e nt i n t h e f u t u r e . T h e r e f o r e , t h e a n xi e ti e s 

e x p r e s s e d b y t h e w e st e r n r a il r o a d s a s t o t h e m a s si v e l o s s o f r a ilr o a d 

t r a f fi c a n d t h e hi g h e r fi x e d - c o s t b ur d e n o n t h e n o n- w at e r w a y c o m m u niti e s

d o n ot a p p e ar t o b e w a rr a n t e d .

M r. F e e n e y' s p ri n c i p a l e r r o r i s hi s b e li e f t h a t I all e g e d , i n t h e 

w or d s o f hi s l e t t e r , " t h a t b a r g e c o m p e ti ti o n r e s u lt s i n p r o s p e r o u s gr o wt h 

o f r a ilr o a d s " . I d o n o t b eli e v e I m a d e a n y s u c h a s s e rti o n . My a ffi d a v it 

n e it h e r s t a t e d n o r i m pli e d t h a t t h e g r o w t h o f e it h e r m o d e c a u s e d t h e gr o wt h
1 8 1

o f t h e o t h e r. I m e r el y n ot e d t h a t t h e t w o w er e c o n c u r r e n t. F u rt h e r m o r e , 

m y a ffi d a v it m a d e n o r e p r e s e n t a ti o n a s t o r a ilr o a d p r o s p e rit y . I c o n fi n e d 

m y s elf t o t h e s u bj e ct o f f r e i g h t v ol u m e. M r. F e e n e y fi n d s m e s a yi n g m o r e

t h a n I d i d .

A d m it t e dl y , i n s o m e q u a rt e r s i t h a s b e e n ar g u e d c o n vi n ci n gl y t h a t 

g r o wt h i n w at e r t r a n s p o rt a ti o n s ti m u l a t e s i n d u s t ri a l a n d o t h e r e c o n o mi c 

d e v el o p m e nt i n ri v e r v a ll e y s , g e n e r a ti n g a n e nl a r g e d v ol u m e o f r a ilr o a d 

f r e i g h t. T h e w at e r- b a s e d P it t s b u r g h s t e el i n d u s tr y h a s b e e n c it e d a s o n e 

ill u s t r a ti o n a n d t h e d e v el o p m e nt al s ti m ul u s o f 1 o w - c o st e l e c t ri c e n e r g y 

b a s e d o n w at e r b o r n e f u e l s a s a n o t h e r. I t i s c o nt e n d e d t h a t w a t e r si d e p l a n t s , 

b ri n g i n g i n b ul k r a w m a t e ri a l s a n d f u e l s b y w a t e r, al s o s hi p a n d r e c ei v e 

l a r g e v ol u m e s o f c o m p o n e nt s a n d f a b ri c a t e d p r o d u ct s b y r a il a n d t r u c k .

I n t h i s w a y , i t i s h el d , w at e r tr a n s p o rt a ti o n s ti m ul a t e s i n d u s t ri a l d e v el o p ­

m e nt a n d c o n s e q u e nt e x p a n si o n i n t r a f fi c b y l a n d m o d e s. B ut, t h i s i s a n 

ar g u m e nt f o r a n ot h e r d a y.

M r. F e e n e y al s o s t a t e s t h a t, f o r s o m e y e a r s , m y d at a f o r " A ll Ot h e r 

R ail r o a d s " a r e f o r o n l y Cl a s s I r a ilr o a d s a n d t h a t, f o r o t h e r y e a r s, t h e y 

a r e f o r Cl a s s e s I a n d I I o r Cl a s s e s I , I I , a n d I I I . I f s o, i t i s o f l i t t l e 

i m p o rt a n c e . I n 1 9 7 2 (t h e l a t e s t y e a r o f m y d a t a ), Cl a s s I I r a il r o a d s 

c a r ri e d o nl y 7/ 1 0 o f o n e p e r c e n t o f t h e t o t a l t o n - m il e s o f f r e i g h t h a ul e d 

b y Cl a s s e s I a n d I I c o m bi n e d. ( C l a s s I I r a il r o a d s a r e t h o s e w it h a n n u al 

o p e r a ti n g r e v e n u e s u n d er $ 5 m illi o n . ) O n a s p r e a d b e t w e e n a 7 6. 2 p e r c e nt 

i n c r e a s e f o r t h e W a t e r - p a r a ll e l li n e s a n d o n l y 1 8. 6 p e r c e n t f o r t h e o t h e r s , 

t h e f r a c ti o n o f o n e p e r c e nt m a k e s n o s i g n ifi c a n t d iff e r e n c e .

M r. F e e n e y al s o b eli e v e s t h a t I f a il e d t o all o w f o r m e r g e r s . I c a r e ­

f u ll y s t u di e d t h e " M e r g e r S c o r e b o a r d " r e p o rt s o f t h e A s s o ci a ti o n o f A m eri c a n
1 8 2

ail r o a d s a n d i n c o r p o r a t e d r e p o rt e d m e r g er s i n t o m y d a t a . I f I o v e rl o o k e d 

o n e o r m or e, t h i s c o ul d m a k e a s i g n ifi c a n t d iff e r e n c e . T o c h e c k t h i s , h o we v e r, I h a v e j u s t r e vi e w e d m e r g er s o f t h e a ff e c t e d li n e s si n c e 1 9 5 5 w it h 

t h e f oll o w i n g r e s u lt s .

Gr o wt h i n F r ei g h t C a rri e d a n d i n F r e i g h t R e v e n u e

R i v e r - P a r a ll e l R ail r o a d s C o m p ar e d Wit h A ll O t h e r R ail r o a d s , U, S. A.

1 9 5 5

1 9 7 1

1 9 7 2

T o n - M il e s C a rri e d F r ei g h t R e v e n u e

Ri v e r A ll Ot h e r Ri v e r A1 1 O t h e r

P a r a l 1 el R ai 1 r o a d s P a r a l 1 el R ai 1r o a d s

Li n e s* U. S. A. Li n e s* U. S. A.

1 0 0. 0 ( 1 0 n o n - 1 0 0. 0 1 0 0. 0 ( 1 0 n o n - 1 0 0. 0

m e r g e d 

r a i 1 r o a d s)

m e r g e d 

r a i 1 r o a d s)

1 5 0. 9 ( 5 m e r g e d 

r a i 1 r o a d s)

1 1 5. 1

1 8 0. 0 ( 4 m e r g e d 

r a il r o a d s)

1 M +. O

* " R i v e r P a r a ll e l Li n e s " ( a s o f 1 9 7 5 ) s Illi n o i s C e ntr al G ulf ; L o u i s v ill e 

a n d N a s h vill e ; M i s s o u ri P a c ifi c ; S t. L o ui s - S a n F r a n ci s c o .

S O U R C E: I n t e r s t a t e C o m m er c e C o m mi s si o n .

F r a n kl y , I d o n't s e e t h a t M r. F e e n e y h a s a p o i n t i n t h e a b s e n c e o f a 

s h o wi n g o f w h at all e g e d m e r g er s w er e o m itt e d a n d w h at d if f e r e n c e t h e y w o ul d 

m a k e i n t h e r e s u lt s .

F i n a ll y , M r. F e e n e y c riti c i z e s m y s e l e c ti o n o f b a r g e - c o m p e ti ti v e r a il ­

r o a d s. T h e s e l e c ti o n i s a d i f fi c u lt o n e. M o s t o f t h e m aj o r r a il r o a d s i n 

t h e M i s si s si p p i B a si n a n d e a st w a r d i n t h e c o u n tr y o p e r a t e s o m e tr a c k a g e 

w hi c h p a r a ll e l s o n e o r m o r e w at e r w a y s e g m e nt s. B ut, f o r t h e m a j o rit y o f 

t h e m , t h e w a t e r - p a r a ll e l tr a c k a g e i s a s m all o r li m it e d p o rti o n . T h e I n t e r ­

s t a t e C o m m er c e C o m mi s si o n r e p o rt s f r e i g h t d at a b y r a ilr o a d c o m p a ni e s, a n d 

n ot b y tr a c k a g e s e g m e nt s. F or e a c h r a ilr o a d , t h e r e f o r e , t h e d at a a s t o
1 8

a t e r - p a r a ll e l f r e i g h t i s m e r g e d w it h t h e l a r g e p o rti o n w hi c h i s n ot w a t e r - 

p a r a ll e l, a n d t h e t w o c a n n ot b e di s e n t a n gl e d .

T h e r e f o r e , I s el e c t e d m aj o r r a il r o a d s m o st o f w h o s e tr a c k a g e i s r e a s o n ­

a bl y p a r a ll e l t o t h o s e w at e r w a y s c a r r yi n g t h e g r e a t e r p o rti o n o f i n l a n d 

w at e r b o r n e f r e i g h t. T hi s m e a n s, o f c o u r s e, t h e M i s si s si p p i R i v e r, it s t ri b u ­

t a ri e s , a n d t h e G ulf I n t r a c o a s t a l. T hi s s y st e m c a r ri e d i n 1 9 7 3 o v e r 9 3 

p e r c e nt o f a ll t h e t o n - m il e s o f s h a ll o w - d r a ft w at e r b o r n e f r e i g h t i n t h e

U nit e d S t a t e s .

M r. F e e n e y c it e s t h e R o c k I sl a n d a n d t h e P e n n - C e ntr al a s r a il r o a d s 

w hi c h h e b eli e v e s t o b e d i s ti n c ti v e l y " b a r g e - c o m p e titi v e ". I s h o ul d c o n si d e r 

t h e s e a m o n g t h e l e a s t d i s ti n c ti v e l y b a r g e - c o m p e ti ti v e i n t h e c o u n tr y . Al m o st 

e x a c tl y 5 0 p e r c e nt o f t h e li n e s o f t h e P e n n - C e ntr al a r e i n t h e M i d dl e A tl a n ti c 

s t a t e s , N e w E n gl a n d, a n d C a n a d a, a n d m o st o f t h e r e m ai n d e r a r e e a st- w e st 

r o u t e s , o n e m ai n li n e f o ll o w i n g t h e s h o r e s o f t h e G r e at L a k e s a n d o t h e r s n o 

cl o s e r t o t h e O hi o Ri v e r t h a n C ol u m b u s a n d I n d i a n a p o li s . A n u m b er o f n o rt h - 

s o ut h b r a n c h e s d o c o n n e ct w it h O hi o R i v e r p o rt s , b ut n o n e, h o w e v e r, a r e cl o s e l y 

p a r a ll e l t o t h i s ri v e r . T h e P e n n - C e ntr al h a s n o m ai n li n e s i n Illi n o i s 

p a r a ll e l t o t h e Illi n o i s R i v e r a n d t h e o n l y li n e p a r a ll e l t o t h e M i s si s si p p i 

f oll o w s t h e e a st e r n b o u n d a r y o f t h e s t a t e fr o m C hi c a g o t o C air o , m o st o f i t 

w ell o v e r 1 0 0 m il e s fr o m t h e M i s s i s s i p p i.

A s f o r t h e R o c k I sl a n d , U 9 p e r c e nt o f it s li n e s a r e i n ar e a s w e st o f 

t h e M i s s o u ri a n d A r k a n s a s R i v e r s , a n d m o st o f t h e r e m ai n d e r a r e r o u ti n g s 

fr o m t h e T wi n C iti e s a n d C hi c a g o s o u t h w e s t e rl y t h r o u g h c e n t r a l I o w a a n d 

n o rt h w e st e r n M i s s o u ri, e xt e n di n g t o D e n v e r; S a nt a R o s a, N e w M e xi c o; a n d 

vi a O kl a h o m a C it y t o G al v e st o n. T h e R o c k I sl a n d i s a n yt h i n g b ut a ri v e r 

v a ll e y r a i 1 r o a d .
1 8 4

A s f o r t h e M - K - T , w hi c h M r. F e e n e y al s o c it e s a s w a t e r - c o m p e titi v e , 

it s m ai n li n e p a r a ll e l t o t h e M i s si s si p p i r u n s s o ut h fr o m K a n s a s C it y , 

vi a T ul s a a n d D a ll a s , t o S a n A nt o ni o a n d G al v e st o n, t o s o m e e x t e n t, I 

s u s p e ct, c o m p e titi v e w it h b a r gi n g o n t h e M i s s i s s i p p i, alt h o u g h h u n dr e d s 

o f m il e s fr o m i t . H a d I i n cl u d e d t h e M - K - T , c riti c s s u c h a s M r. F e e n e y 

w o ul d al m o st s u r el y h a v e ar g u e d t h a t I s h o ul d h a v e l e f t i t o u t. T o n - m il e s 

c a r ri e d b y t h e M- K- T i n c r e a s e d b y 2 2 p e r c e n t fr o m 1 9 7 0 t o 1 9 7 3 -

I n s u m, I b eli e v e m y c o n cl u si o n st a n d s. D u ri n g t h e p o st- w a r p e ri o d , 

t h e v ol u m e o f f r e i g h t a n d o f f r e i g h t r e v e n u e o f t h o s e r a il r o a d s w hi c h m a y 

b e i d e n tifi e d a s d i s ti n c ti v e l y w a t e r - c o m p e titi v e w e n t u p b y m u c h bi g g e r 

p e r c e nt a g e s t h a n t h a t o f a ll o t h e r r a il r o a d s i n t h e c o u n tr y , c o n c u r r e n tl y 

w it h a l a r g e i n c r e a s e i n t h e v ol u m e o f w at e r b o r n e f r e i g h t, a n d t h i s c o n c u rr e n t g r o wt h m a y b e e x p e ct e d i n t h e f u t u r e i f a d e q u at e c a p a cit y i s p r o vi d e d 

a t L o c k s a n d D a m N o. 2 6. Me c a n pi c k o v e r t h e fi g u r e s a ll w e li k e , b ut 

w e’ l l s t ill c o m e o u t w it h t h i s c o n cl u si o n . O n t h i s s c o r e , t h e i n l a n d 

c o m m u niti e s, n o t s e r v e d b y w at e r t r a n s p o rt a ti o n , h a v e n o t h i n g t o w o rr y 

a b o ut. N e it h e r, I b e li e v e , h a v e t h e r a ilr o a d s .
1 8 5

Se nat or r a v e . O ur ne xt wit ness is Mr. J. C. La ne y.

Pleased t o meet y o u, Mr. La ne y.

S T A T E M E N T O F J. C. L A N E Y, B R O T H E R H O O D O F L O C O M O TI V E 

E N GI N E E R S

Mr. L a n e y . Mr. C hair ma n a n d me m bers of t he s u bc o m mittee, 

t ha n k y o u f or t he o p p ort u nit y t o testif y a b o ut t he Ar m y C or ps of 

E n gi neers’ i nla n d na vi gati o n pr o gra m.

I a m ge neral c hair ma n of t he Br ot her h o o d of L oc o moti ve E n gi neers 

re prese nti n g t he e n gi neers o n t he L o uis ville & Nas h ville Railr oa d. 

O ur or ga nizati o n is ass ociate d wit h e n gi neers o n ma n y ot her railr oa ds 

t hat w o ul d be a d versel y affecte d b y t he pr o p ose d i nla n d water wa y 

s yste m. T he railr oa ds ha ve hist oricall y o perate d u n der t he free 

e nter prise s yste m a n d as a res ult ha ve c o ntri b ute d greatl y t o t he 

gr o wt h a n d pr os perit y of o ur gre at c o u ntr y. At t he prese nt ti me, t he 

railr oa d i n d ustr y has t o c o m pete wit h t he tr uc ks w h o are f ur nis he d 

hi g h wa ys t o o perate o ver at a tre me n d o us e x pense t o t he G o ver nme nt. We ha ve t o c o m pete wit h t he airli nes w h o are f ur nis he d air p orts 

a n d are gre atl y s u bsi dize d b y t he G o ver n me nt. We ha ve t o c o m pete 

wit h t he bar ge li nes w hic h o perate o ver water wa ys a n d l oc ks mai ntai ne d b y t he G o ver n me nt.

A lar ge pa rt of t he railr oa d i n d ustr y i n t he U nite d States is n o w i n 

ba n kr u ptc y. A lar ge part of t he railr oa d i n d ustr y is i n critical fi na ncial 

c o n diti o n a n d has deferre d mai nte na nce a n d u p kee p o n t h e trac ks a n d 

e q ui p me nt f or s o l o n g t hat ma n y railr oa ds are hea de d f or ba n kr u ptc y 

if s o met hi n g is n ot d o ne t o c ha n ge t he tra ns p ortati o n p olic y of o ur 

Fe deral G o ver n me nt. Certai nl y, we d o n’t nee d a p olic y w here t he 

Fe deral G o ver n me nt s u bsi dizes o ne se g me nt of t he tra ns p ortati o n 

i n d ustr y t o s uc h a n e xte nt t hat it kills a n ot her lar ge, i m p o rta nt part 

of o ur tra ns p ortati o n i n d ustr y t hat has hist oricall y pai d n ot o nl y 

its o w n wa y, b ut has pai d ta xes s ufficie nt t o ta ke care of ot h er tra n sp ortati o n s yste ms w hic h ha ve bee n s u bsi dize d wit h ma n y billi o ns of 

d ollars i n ta xes.

If a s u bsta ntial a m o u nt of b usi ness is di verte d fr o m t he railr oa ds t o 

t he pr o p osed i nla n d water wa y, it c o ul d ver y well ba n k r u pt t he 

railr oa ds beca use t he y are o perati n g o n s uc h a cl ose mar gi n of pr ofit 

a n d, d ue t o fi xe d c osts, w he n b usi ness is l ost o n t he railr oa d, c osts 

ca n n ot be re d uce d i n pr o p orti o n, a n d ba n kr u ptc y w o ul d t he n be 

i ne vita ble o n ma n y r oa ds.

It is esti mate d t hat o ver 1 0 0, 0 00 railr oa d e m pl oyees w o ul d be 

a d versel y affected b y t he pr o p osed i nla n d na vi gati o n pr o gra m. I n 

a d diti o n, i n e xcess of 1, 00 0,0 0 0 retire d railr oa d e m pl oyees a n d t heir 

de pe n de nts c o ul d be a d versel y affected i n t hat, if e n o u g h railr oa ds 

fail, t he railr oa d retire me nt s yste m mi g ht, als o. fail.

N o w, i n c o ncl usi on, t he railr oa d i n d ustr y i n t h e U nite d State s is i n 

critical fi na ncial c o n diti o n. Ma n y pla ns ha ve a n d will be s u b mitte d t o 

C o n gress i n t he ne xt fe w m o nt hs t o deal wit h t he railr oa d crisis. If a 

s ol uti o n is f o u n d, it is n ot g oi ng t o be eas y a n d t o a d d t he a d diti o nal 

pr o ble m w hich w o ul d res ult fr o m di versi o n of b usi ness as pr o p ose d b y 

t he i nla n d water wa y s yste m w o uld certai nl y be t he stra w t hat br o ke 

t he ca mel’s bac k. We res pectf ull y re q uest t hat if a n y le gislati o n is 

c o nsidere d t o i m ple me nt t he Ar m y C or ps’ i nla n d water wa y s yste m, 

s uc h le gislati o n s h o ul d be referre d t o t he a p pr o priate c o m mittee wit h 

j uris dicti o n t o de vel o p a c o here nt nati o nal tra ns p ortati o n p olicy.

T ha n k y o u, Mr. C hair ma n.

1 8 7

Se nat or G r a v e l . Mr. Br oc k, t hi s is all y o ur railr o a d s yste m ?

Mr. B r o c k . Yes, sir, t h at’s j u st t he Illi n ois Ce ntral G ulf. All t he 

fi ne li nes are t he li nes of t h e Illi n ois Ce ntr al G ulf rea c hi n g o ut t o S o ut h 

Da k ota, N e bras ka, I o wa, Mi n n es ota, Wisc o nsi n, a n d all t he wa y d o w n 

t hr o u g h t he St ate of Mississi p pi. It d oes n ot s h o w t he Te n n esse eT o m bi g b ee. T he Te n nes see- T o m bi g be e —if y o u see Pa d u ca h ri g ht 

i n t he mi d dle of t h at ma p —t he Te n ness ee- T o m bi g be e, I u n de rst a n d, 

will c o me fr o m t here t o M o bile dir ect b y re v ersi n g t he fl o w of t he 

Te n ness ee Ri v er.

Se nat or G r a v e l . H o w d oes t hi s c o m pare i n size t o ot he r rail r oa d s?

Mr. B r o c k . Yo u me a n------

Se nat or G r a v e l . T h e Illi n ois Ce ntr al G ulf Railr o a d is w hat------

Mr. F e e n e y . W hat’s t he size of y o ur rail r oa d, Mr. Br oc k, i n c o mparis o n wit h ot he rs?

Mr. B r o c k . Well, t h er e’s a b o ut 2 0 6, 0 0 0 miles of railr o a d i n t he 

U nite d St ate s. T h e I C G mai nli ne milea g e is 9, 6 2 6. T h e t otal milea ge 

of t he Illi n ois Ce ntr al i ncl u di n g all tra c ks is 1 3, 0 0 0. N o w, i n t hi s are a 

t here are a b o ut 2 5 railr o a ds t h at feel t he pre ss ure of t he G o ver nm e nt’s s u b si d y f or o ur c o m petit or s. T h e y are i m p o rt a nt railr oa ds. 

O ne of t he m is i n recei ver s hi p. Se v eral ot h ers are o n t he b or der. 

T h e y ’re o p erati n g at t he m o me nt, c o m par e d wit h last y ear o n carl oa di n gs, 2 0 pe rce nt less. T h e y ’re o p erati n g wit h 2 0 pe rce nt less carl oa di n gs 

t h a n a ye ar a g o.

We, wit h t he Illi n ois Ce ntral G ul f Railr o a d, are ha n dli n g 1, 0 0 0 

l oa d s per da y less t h a n t he first 1 3 5 da y s t his ye ar c o m par e d wit h 

t he first 1 3 5 da ys last yea r.

Se nat or G r a v e l . D y o u attri b ut e all t h at t o t he w ate r w a y s yste m 

or t he ge ne ral ec o n o mic sl u m p of t he Nati o n?

Mr. F e e n e y . I t he dr o p off d ue t o t he ------

Mr. B r o c k . Dr o p i n t he ec o n o m y. Dr o p i n t he ec o n o m y.

Se nat or G r a v e l . I ha ve s o me g o o d ne ws f or y o u i n cl osi n g. C o n gre ss 

is c u rre ntl y w or ki n g o n a mea s ur e w hic h w o ul d gr a nt a s u b si d y t o 

t he rail r oa ds. T h e C o m mer ce C o m m itte e has a p p r o v e d a bill, 

s p o ns or e d b y P u blic W or ks C o m mitte e C h air ma n Se nat or Je n ni n gs 

Ra n d ol p h, t o pr o vi de $ 7 0 0 milli o n f or t he i m pr o ve me nt of rail r oa ds, 

r oa d be ds, a n d facilities. H o pef ull y t hi s mea s ure will be pass e d b y 

t he C o n gres s i n t he ne ar f ut ur e.

Mr. B r o c k . Well, I t hi n k, Se nat or, we j u st d o n’t ha ve a nati o nal 

tr a n s p ortati o n p olic y i n t hi s c o u ntr y.

Se nat or G r a v e l . I a gree wit h y o u w h ole h earte dl y.

Mr. B r o c k . A n d it ’s e xt re m el y diffic ult. Bit b y bit a n d piece b y 

piece, we’ll deal wit h t hi s s o rt of a pr o ble m, b ut wit h o ut a s o u n d 

nati o nal tra ns p o rtati o n p olic y, we are wa sti n g a l ot of ti me, wasti n g 

a l ot of m o n e y, n ot getti n g t he res ult s t h at y o u a n d t he re st of t he 

A m eric a ns desire a n d are e ntitle d t o. It ’s acc o m plis h e d —it ca n be 

acc o m pli s he d.

Se nat or G r a v e l . I a gree.

Mr. B r o c k . T ha n k y o u.

Se nat or G r a v e l . I t h a n k y o u ve r y m u c h, sir.

Mr. B r o c k . T h a n k y o u, Se nat or.

Se nat or G r a v e l . T h a n k y o u, Mr. La ne y, a n d y o ur gr o u p.

We’ll n o w recess f or a b o ut 5 mi n utes.

5 4 - 2 3 9 0 - 7 5 - 13
1 8

T E R R E C E S S

Se nat or G r a v e l . Ge ntle me n, I h o pe t h at i n t he i nt ere sts of ti m e 

y o u will be willi n g t o s u m marize y o ur state m e nts. We’ll ta k e y o ur 

e ntire state m e nts f or t he rec or d.

S T A T E M E N T O F MI L T O N B A R S C H D O R F, P O R T DI R E C T O R, 

G R E E N V I L L E, MI S S.

Mr. B a r s c h d o r f . Mr. C h air ma n, m y na m e is Milt o n Barsc h d o rf. 

I a m t he p o rt dir ect or of t he P o rt of Gree n ville, Miss.

I wa nt t o t h a n k y o u f or t hi s o p p o rt u nit y t o a p pe ar bef ore y o u. 

It’s de e pl y a p p reciat e d.

M y c o m me nts are bei n g ma d e n ot o nl y i n be h alf of t he P o rt of 

Gree n vill e, b u t als o i n be half of t he I nla n d Ri v ers P o rts a n d Te r ­

mi n als, I nc., a n or g a ni zati o n c o veri n g t he na vi ga ble ri ve rs of o ur 

i nla n d water wa ys s yste m ser vi n g dir ectl y s o me 19 St ate s wit h t he 

m o st hi g hl y pr o d u cti ve a gric ult ural re gi o ns a n d t he m o st hi g hl y 

i n d ustrialize d secti o n s of o ur Nati o n.

It has bee n o nl y wit hi n t he pa st 4 or 5 ye ars t h at t he i nl a n d ri v er 

p o rts ha v e e mer ge d fr o m t he stat u s of strictl y d o m estic car g o dis ­

tri b uti o n p oi nt s t o f ull-fle d ge d part n ers i n t he dir ect e x p ort-i m p ort 

tra de calli n g f or esse ntiall y t he sa m e va riet y of s pecial ser vic es i n ­

cl u di n g frei g ht f or w ar di n g, c ust o m s, a n d s pecial car g o ha n dli n g 

heret of ore perf or m e d s olel y b y t he c oa stal p o rts.

T he se maj or c ha n ges ha v e bee n br o u g ht a b o ut b y t he de v el o p m e nt 

of s uc h i n n o v ati ve s hi p pi n g tec h ni q ues as t he Las h, Sea be e a n d Mi ni 

S hi p c o n ce pt s a n d t he e ntire s pe ctr u m of c o ntai n eriz ati o n, all of w hic h 

are ver y m uc h i n t h ei r i nfa nc y wit h gre at p ote ntial f or f u rt h er effi ­

cie ncies a n d gre ate r sa vi n gs t o t he s hi p p er as well as i m p r o vi n g t he 

c o m petiti v e p ositi o n of o ur Nati o n i n t he tra de ma r k ets of t he w orl d.

T nis tre n d ha s f urt h er e n h a nce d t he ri v er p o rts ’ p ositi o n as a f ocal 

p oi nt of i nt erc ha n ge a m o n g t he vari o u s m o d es of tra ns p o rtati o n 

w here ma xi m u m efficie nc y de pe n ds u p o n f ull c o o perati o n of all m o de s 

wit h i nter m o dalit y as a g oal i n de vel o pi n g e q ui p m e nt, ha n dli n g 

tec h ni q u es, a n d a d mi nistrati v e pr oc e d ures w hic h are rea dil y i nter ­

c ha n gea ble i n b ot h t h e d o m estic a n d e x p ort -i m p ort tra d e.

I n t his ne w era of ri v er p o rt de v el o p me nt, it has bec o m e glari n gl y 

a p pa re nt t h at ma n y of t he o ut m o d e d wa ys of d oi n g t hi n gs m ust be 

re vise d a n d c orr ecte d as ra pi dl y as p ossi ble if we are t o realiz e ma xi ­

m u m be n efits fr o m t he efficie ncies ma d e p ossi ble wit hi n t he w or ki n gs 

of o ur tr a n s p ortati o n s yste m.

It is, als o, glari n gl y a p pare nt t h at t he c o nti n ue d he alt h y gr o wt h of 

t he i nla n d water wa y tra ns p o rtati o n s yste m is t hr eate n e d t o be 

sc uttle d b y t h os e w h o see k s o me f or m of user c har g es w h et h er i n t he 

f or m of dir ect asse ss m e nts per t o n- mile or t he m ore s u btle a p p r oa c h 

of a n a d d e d ta x o n f uel, as t he pa n ace a f or c uri n g t he fi na n cial ills 

of o ur c o u ntr y ’s railr o a ds b y ca usi n g a di ve rsi o n of water b or ne car g o 

t o t he railr oa d s a n d at t he sa me ti me c orrecti n g w h at a p p ear s t o be 

a n u nj u st use of t he ta x pa y ers m o n e y i n de vel o pi n g a n d mai nt ai ni n g 

t he i nla n d wat er w a ys.

A n u m b er of st u die s are a vaila bl e w hic h e v al u ate t he si g nific a nc es 

of t he ri v er p orts a n d ter mi nal s i n sti m ulati n g t he ec o n o mies of t h o 

l ocalities a n d area s t he y ser ve.
1 8 9

I als o we nt i nt o det ail o n t his. I ’ll s ki p it, b u t we are usi n g i n o u r 

pre se ntati o n a n e x a m pl e of L o uis ville, K y., w hic h we t hi n k is pr o b a bl y 

a b o ut a vera ge. We’re n ot l o o ki n g a t C hica g o, Pitts b u r g h, Mi n ne a p olis, 

St. Pa ul, St. L o uis. We’re l o o ki n g at a b o ut 5 0 0, 0 0 0 p o p ulati o n. T h e 

st u d y was rec e ntl y ma d e b y t he Ur ba n St u dies Ce nt er at t he U niversit y of L o uis ville. T h e y s h o w t h at t he water w a y rel ate d i n d u str y 

re p res e nt s o ver $ 5 8 8 milli o n i n wa ges a n d salaries f or t he e q ui v ale nt 

of $ 6 0 i n wa ges a n d salaries f or eac h t o n of w ater b or ne car g o s hi p pe d 

t hr o u g h t h at p o rt i n 1 9 7 3.

S o me i de a of t he ec o n o mic i m pa ct of t he water b or ne m o ve m e nt s 

o ver t he e ntire Missis si p pi Ri ver a n d tri b uta rie s s vste m ca n be 

reali ze d b y a p pl yi n g t hi s $ 6 0 i n wa ges a n d salaries t o t he 3 1 7, 5 9 6, 6 M 

t o ns carrie d i n 1 9 73 w hic h a m o u nts t o o ver $ 1 9 billi o n i n wa ges a n d 

salari es, w hic h is t he g ut s of o ur ec o n o m y.

Fr o m t he best i nf or m ati o n a vaila ble fr o m t he C or ps of E n gi n eer s, 

t he t ot al a m o u nt of e x p e n dit ur es o n t hi s e ntire Mississi p pi Ri ver a n d 

tri b utaries s yste m si nce t he y ass u me d t hi s res p o nsi bilit y i n 1 7 8 9 was 

$ 8. 1 billi o n t hr o u g h 1 9 7 3, a n d I t hi n k t h at y o u ca n see t h at t hi s is 

a b o ut $ 1 0 0 milli o n t o ge n erate a n ec o n o mic i m pa ct of $ 1 9 billi o n i n 

wa ges a n d salaries — or a n i n ve st m e nt of o ur ta x pa yers’ m o ne y w hic h 

ret ur ne d $ 1 9 0 f or eac h $ 1 i n v este d.

A n d yet, t here are t h os e w h o w o ul d destr o y t his hi g hl y pr o d ucti v e 

use of t he ta x pa yers’ d oll ar b y ta xi n g t he wat er w a ys t o retrie ve s o me 

of t he mai nt e n a n ce e x pe nse w hile at t he sa me ti me cre ati n g a d oll ar 

l oss t o t he ta x pa yer of m uc h gr eater si g nific a nce i n t he f or m of l ost 

j o b s a n d wa ges. A n a rea of o ur e c o n o m y t h at certai nl y nee ds n o f urt h er 

s h ot i n t he ar m t o cre ate m ore u n e m pl o y m e nt.

Relat e d, als o, t o t his false pre mise b y ta ki n g t he water carriers a n d 

ta xi n g t he m — I ’ m s orr y. I ’ m tr yi n g t o rea d fast, sir, t o get t hr o u g h 

wit h t his beca use I t hi n k it ’s i m p o rta nt.

Se nat or G r a v e l . Ma y be if y o u c o ul d j u st hit t h e p oi nt s y o u wa nt, 

t he hi g h p oi nts.

Mr. B a r s c h d o r f . All ri g ht.

Se nat or G r a v e l . We c o ul d sa v e a little ti me.

Mr. B a r s c h d o r f . All ri g ht, we’ll d o t h at, sir.

T h e pre mise t h at ta xi n g t he w ate r c arri ers w o ul d b e ne fit o ur Nati o n 

is a n e q u all y false pre s u m pti o n f or t hi s reas o n. T h e late st i nf o r m ati o n 

t h at was pre par e d b y t he rese arc h staff of t he A m eric a n Tr uc ki n g 

Ass o ciati o n f or t he ye ar 1 9 73 i n dicates t h at: Perce nt of t o n - mile s — 

railr oa d s, 3 8. 8 0; m ot or carriers, 2 2. 7 8; i nl a n d water w a ys, 1 5. 3 6; 

a n d pi peli nes, 2 2. 8 7. T h e s hare of t he t ot al tra ns p o rtati o n re v e n ue s — 

railr oa d s, 3 7. 4 8; m ot or carriers, 5 5. 3 5; a n d li ste n t o t his o ne —f or i nl a n d 

water w a ys, 1. 2 6 p erc e nt of t he t ot al tra ns p o rtati o n re v e n u es.

N o w here we see t he railr oa ds wit h 3 8. 8 0 perce nt of t he N ati o n’s 

car g o a n d 3 7. 4 8 perce nt of t he tra ns p o rtati o n re v e n u es bei n g sa v e d 

fr o m f urt h er fi na n cial r ui n b y ca pt u ri n g a p orti o n of t he 1. 2 6 perce nt 

re ve n ue s g oi n g t o t he water c arrie rs, a n d I s u b mit t hi s t o be al m ost i n 

t he real m of bei n g ri dic ul o us.

T o ass u me t h at t hi s 1 per ce nt a d d e d t o t he 3 7. 4 8 perce nt alr ea d y 

reali ze d is g oi n g t o ha v e a n y si g nifica nt effect o n t he state of t he r ail ­

r oa ds is o b vi o u sl y wit h o ut f o u n dati o n.

Als o wit h o ut f o u n d ati o n, is t he ass ura nce t h at t he 1 pe rc e nt a d d e d 

re v e n u e w o ul d be use d m ore j u dici o usl y i n s o u n d ma na ge me nt pr ac ­

tices w hic h w o ul d ha v e a far gr eater i m pa ct o n i m p r o vi n g t heir 

det eri orati n g fi na n cial p ositi o n.
1 9 0

Wi t h C o n gr ess a b o ut t o s u bsi dize t he railr o a ds wit h billi o ns of 

t he t a x pa yers’ d oll ars we will be a ss u mi n g t he lia bilities of t h e defe rre d 

mai nt e na nce a n d b ette r m e nt acc o u nti n g pr o ce d ure s per mitt e d b y t he 

rail r oa ds o ver t he yea rs a n d n o w c o mi n g h o me t o r o ost.

S urel y t he lea d ers hi p asse m ble d i n o ur Ca pit ol m ust rec o g nize t he 

tr u e nat ur e a n d c o nse q ue n ces of t his ill-c o nc ei ve d pla n of u ser c har ges 

o n t he water w a ys o w ne d b y o ur ta x pa y ers a n d ret ur ni n g s u bsta ntial 

di vi de n ds ma n y ti mes o ver i n t he f or m of gr eat er efficie ncies a n d ec o no mies i n tra ns p o rtati o n.

A n ot h er ite m of vit al c o nc er n t o us a n d o ne w hic h has a maj or 

i m pa ct u p o n t he i nl a n d ri ve rs na vi gati o n pr o gra m a n d als o u p o n t h e 

he alt h y gr o wt h a n d efficie nc y of o ur Nati o n’s tra ns p o rtati o n s yste m 

is t h at w hic h deals wit h t he rat e str uct ur e a n d rate re g ulati o n. T his 

ha s n ot bee n br o u g ht o ut t o m y k n o wl e d ge s o far.

It ’s q uite o b vi o us t h at t he m ost hi g hl y de vel o pe d a n d efficie nt 

water wa y, tr u c k, or rail r oa d c o m ple x is desti ne d t o g o i nt o t he re d 

if t he rat e str uct ur es are n ot c o n d u ci ve t o ge n erati n g b usi ne ss o v er 

a n d t hr o u g h t he facilit y. It bec o mes pa ra m o u nt t h at t he s y ste ms of 

rate a p plicati o n b e caref ull y e xa mi ne d a n d m o nit o re d o n a c o nti n ui n g 

basi s a n d t he rat e m a ki n g pr ocess left fle xi ble f or ti mel y re g ulati o n 

a n d a dj ust m e nt t o me et t he nee d s of c ha n gi n g gr o wt h patte r n s a n d 

i m p r o v e d ha n dli n g a n d s hi p pi n g tec h ni q u es.

A n y c o m pre h e nsi v e i n v esti gati o n of t he i nl a n d ri v er na vi g ati o n 

s yste m a n d its r ole i n t he n ati o n al patte r n of tra ns p o rtati o n is me a ni n gless wit h o ut i ncl u di n g a n a nal y sis of t he rate patte r n s a n d t he 

de gre es t o w hic h t hes e patte r n s are affecti n g t he c o m petiti o n a m o n g 

m o d es a n d t he de gree t o w hic h t hese patte r n s are s u bje ct t o ti m el y 

a dj u st m e nt t o me et c ha n gi n g c o n diti o n s.

A case i n p oi nt is t he rate str uct ur e de vis e d b y t he railr o a ds i n 

c olla b orati o n wit h t h e c oastal p orts d uri n g t he 1 9 3 0’s, d uri n g t he 

hei g ht of t he de pre ssi o n o ver 4 0 yea rs a g o, f or t he s hi p m e nt of car g o 

t o t he c oa stal p orts f or e x p ort.

T h e mi dc o nti n e nt of t he U nite d St ate s was ver y cle verl y di vi de d 

i nt o tra de area s t o acc o m m o dat e t he railr o a d s’ s hi p pi n g patte r n s wit h 

eac h are a assi g n e d a rate str uct ure a p plica ble t o rel ate d area s of 

c oa stal p orts. A s o-calle d e q u aliz ati o n ot rat es desi g ne d t o kee p t he 

e x p ort-i m p ort tra de c o m petiti v e a m o n g t he c oa stal p orts a n d, at t he 

sa me ti m e, c reate a patt er n of de pres se d rail r ate s f or e x p o rts, i ncl u di n g 

s uc h a d diti o nal prefer e ntial tre at m e nt as a bs or pti o n of w harfa g e 

c har ges a n d gre ate r free ti me o n rail cars a n d s o o n.

All t hi s was fi ne 4 0 yea rs a g o. T he pla n a p p eale d t o t he c oastal 

p o rts beca u se it ga ve a n artificial str uct ur e ass uri n g t h at s uc h p o rts 

as Ne w Orlea ns, M o bile, H o ust o n, a n d ot h ers w o ul d recei v e car g o 

at t he sa me rail rate re ga r dle ss of t he differe nces i n dist a nce. T he 

pla n o b vi o usl y a p pe ale d t o t he railr oa d s si nce it cre ate d f or t he m a 

gre ate r de pre sse d rate str uct ure a n d ot h er s peci al c o n si derati o ns f or 

e n h a nci n g s hi p me nts b y rail f or e x p o rt. T h e I nte rstate C o m merc e 

C o m missi o n, i m pre sse d b y t his a gre e me nt bet we e n t he rail r oa ds a n d 

t he c oa stal p orts, a n d i n t he a bse nc e of a n y a p p reci a bl e o p p o siti o n, 

a p p r o v e d t he pla n.

T hi s all h a p p e ne d at a ti me p ri or t o t he a d ve nt of a hi g hl y c o m petiti ve t o w b o at i n d ust r y ser vi n g t he i nla n d ri vers a n d at a ti me w he n 

all of t hi s Nati o n’s e x p orts were f u n nele d t hr o u g h t he c oa stal p orts.
1 9 1

T here was n o St. La wre nce Sea way o utlet f or t he e x p ort tra de n or 

were a n y of t he p orts of t he vast i nla n d water wa ys s yste m i n v ol ve d 

i n direct e x p ort s hi p me nts.

T o da y, h o we ver, wit h t he dra matic c ha n ges t h at ha ve ta ke n place 

t hr o u g h o ut t he e ntire tra ns p ort ati o n s pectr u m, t his s peciall y de vise d 

e x p ort rail rate str uct ure fa v ori n g t he railr oa ds a n d t he c oastal 

p orts o nl y, has bec o me a n u nfair c o m petiti ve practice c o m pletel y 

o ut m o de d a n d hi g hl y discri mi nat or y.

Wit h t he o pe ni n g of t he St. La wre nce Sea wa y a n d t he de vel o pme nt of ne w a n d m ore efficie nt tra ns p ortati o n tec h ni q ues s uc h as 

c o ntai nerizati o n, Las h, Sea bee, a n d Mi ni S hi ps, t he p orts t hr o u g h o ut 

o ur vast net w or k of i nla n d water wa ys a n d t he Great La kes s yste m 

ha ve bec o me i n v ol ve d i n t he direct e x p ort tra de as fe derall y desi gnate d p orts of e ntr y perf or mi n g e xactl y t he sa me ki n d of ser vices 

f or t he s hi p per as d o t he c oastal p orts.

N o w, re gar dless of t his de vel o p me nt, t he railr oa ds ha ve a da ma ntl y 

cl u n g t o t his arc haic patter n of prefere ntial e x p ort rates, a n d u n dersta n da bl y s o, ha ve ref use d t o rec o gnize t he e mer ge nce of t he i nla n d 

a n d Great La kes p orts as e x p ort o utlets wit h e q ual j ustificati o n f or 

t he sa me s pecial treat m e nt acc or de d t o c oastal p orts. As a res ult, all 

rail s hi p me nts, e x p ort as well as d o mestic, m o ve t o t he i nla n d p orts at 

d o mestic rates o nl y wit h n o disti ncti o n bet wee n t he e x p ort a n d 

d o mestic s hi p me nt.

N o w, let me j ust gi ve y o u s o me differences here bet wee n t he e x p ort 

a n d d o mestic rates a n d s h o w y o u h o w t he y w or k.

A s hi p per i n C hicag o, if he’s g oi ng t o se n d s o me i m ple me nts, sa y, 

a gric ult ure i m ple me nts, t o Ne w Orlea ns, he’ll pa y $ 4 5. 4 0 if t he article 

m o ves b y d o mestic. If it m o ves b y e x p ort, it ’s $ 3 5. 2 0 a t o n — or a 

2 9 perce nt difference.

A gain, sa y, if Militar y, Ka ns. se n ds s o me met ha n ol t o Ne w 

Orlea ns —$ 3 3. 2 0 o n a d o mestic rate, a n d $ 1 8. 6 0 if it’s g oi ng e x p ort — 

a 7 9 perce nt differe nce.

T his is s o me w hat t he s pectr u m of h o w t hese c har ges a m o n g c o mm o dities w or k, b ut ne vert heless a n y w here fr o m 2 9 perce nt t o 7 9 perce nt less t ha n t he d o mestic.

N o s uc h re d ucti o n rates f or e x p ort a p plies t o t he Nati o n’s i nla n d 

ri ver p orts e ve n t h o u g h t he y n o w perf or m e xactl y t he sa me ser vice 

i n t he e x p ort-i m p ort tra de.

Here we ha ve i n o ur prese nt s yste m a n arc haic patte r n of rate 

a p plicati o n d o g ge dl y a d here d t o b y t he railr oa ds a n d c o n d o ne d b y 

t he I nt erstate C o m merce C o m missi o n. A d ual prici n g s yste m b y w hic h 

t he sa me pr o d uct m o vi n g o ver t he sa me li ne u n der e xactl y t he sa me 

c o n diti o ns of tra ns p ort is bille d as c osti n g si g nifica ntl y m ore t o m o ve 

if la beled d o mestic t ha n if la bele d f or e x p ort-i m p ort. F urt her m ore, 

t his d ual rate a p plicati o n a p plies o nl y t o certai n p orts a n d n ot t o 

ot hers e ve n t h o u g h e xactl y t he sa me ser vices are a vaila ble.

N o w, t his is perfectl y o b vi o us t hat t he railr oa ds a n d t heir r u n ni n g 

of t heir s yste ms are acce pti n g s u b sta ntial l osses i n t he e x p ort tra de 

a n d ma ki n g it u p b y i ncrease d pr ofits i n t he d o mestic tra de, or, if t he 

e x p ort tra de is c o m pe nsat or y, t he y are gr ossl y o verc har gi n g o n t he 

d o mestic r ates. I n eit her case, t heir d ual prici n g s yste m is o b vi o usl y 

discri mi nat or y a gai nst t he i nla n d p orts, n ot t o me nti o n t he le galit y 

as pects of s uc h a b usi ness practice i n a m o n o p ol y sit uati o n.
1 9 2

We t hin k c orr ecti ve acti o n al o n g t hes e li nes is be y o n d t he r o uti ne, 

l o n g dra g ge d o ut c o m plai nt pr oce d ures, a vaila ble t hr o u g h t he I nte rstate C o m merc e C o m missi o n t h at has bee n trie d, b ut rat h er a m atter 

f or acti o n b y C o n gress t o a me n d pr o visi o n s of t he S hi p pi n g Act a n d 

t he I nterstate C o m merc e Act, a n d t his tactic of r at e ma ni p ulati o n b y 

t he railr oa ds is, als o, pre val e nt i n t he l o n g ha ul vers us s h ort ha ul.

Y o u he ar d t he testi m o n y a m o me nt a g o. I w o ul d li ke t o rea d a 

state m e nt t h at Mr. Ala n B o y d, pre si d e nt of t he Illi n oi s Ce ntr al G ulf 

Railr o a d a n d f or m er Sec ret ar y of t he D e p art m e nt of Tra ns p o rt ati o n, 

i n a state m e nt bef or e t he Nati o n al C o u ncil of P h ysical Di stri b uti o n 

Ma na g e m e nt i n a s peec h he ma d e i n Ne w Y or k, he sai d:

T he f ut ure s uccess st ories i n tra ns p ort ati o n will be b uilt u p o n t o n na g es t h at 

are e x pe nsi ve, s wift, li g ht a n d s h ort. Ei g ht y perc e nt of tra n s p o rtati o n d ollars 

s pe nt g oes i nt o carria g e less t ha n 3 0 0 miles l o n g. Rails m ust re gai n s h o rt ha ul 

traffic. I d o u bt t ha t s uc h c o nce ntrati o n o n hea v y, l o n g, sl o w, l o n g-re ve n ue t o n na g e 

is g oi n g t o si g nifica ntl y i m pr o ve t he pres e nt f ort u nes of t he railr o a d i n d u str y. 

T he s uccess or fail ure of t he i n d u str y will be deter mi ne d i n t he area w here t he 

b ul k of t he m o ne y s pe nt f or tra n s p o rtati o n is s p e nt —t he s h ort- ha ul mar ket.

It is s uc h rate pra ctic es as t hese t h at ha v e a disti n ct bea ri n g o n 

t he fi na ncial via bilit y of all m o des a n d t he res ulti n g c o m petiti v e climate i n w hic h all m u st o perate.

A c o m plet e o ve r ha ul of t his arc h aic a n d o ut m o de d s yst e m of rate ­

ma ki n g a n d patte r n s ha n de d d o w n fr o m t he pa st m u st first be c o rrecte d a n d a dj uste d t o meet t o da y’s nee ds bef ore a n y atte m pt is m a de 

t o c o me t o a decisi o n as t o t he pr o pri et y of ta xi n g o ne m o d e at t he 

e x pe n se of a n ot he r.

Here a gai n, acti o n b y C o n gr ess a p pea rs t o be t he o nl y rec o urse if 

we are t o realiz e ti m el y f ulfill me nt of t hi s w o rt h y g oal.

I n s u m ma r y, i n t hr ee ite m s: T h e dis ast r o u s i m pa ct of user c har ges 

nee d e d f or c or recti n g o ur pre se nt arc hai c s yste m a n d t he de str ucti v e 

effects u p o n t he de v el o p me nt of a n efficie nt tra ns p o rtati o n s yste m as 

a r es ult of t he railr o a d s’ fail ur e t o f ull y c o o per ate i n t he de v el o p m e nt 

of a n i nt er m o d al s yste m ca pa ble of reali zi n g ma xi m u m be n efits a n d 

efficie ncies i n t he t ra n sfe r a n d e xc h a n ge of car g o a m o n g m o des, r o ut e d 

al o n g t he m o st ec o n o mical li nes, a n d wit h m or e str ea mli ne d a d mi nis ­

trati v e pr oc e d ures. Als o, a n esse ntial c o n si de rati o n bef ore asse ssi n g 

t he merits of a dj usti n g t he fi na ncial p ositi o n of o ne m o de a g ai n st 

a n ot h er t hr o u g h selecti ve ta x ati o n.

I t h a n k y o u ver y m uc h a gai n, sir.

Se nat or G r a v e l . I t h o u g ht t h at y o ur st at e m e nt was ver y g o o d. 

Y o u certai nl y de alt wit h t he t otalit y of t h e pict ur e. I belie v e y o u 

ha n dle d t he s u bje ct ver y well, a n d y o u’ ve certai nl y ma d e y o ur c o ntri b uti o n at t hi s hea ri n g t o d a y.

Mr. B a r s c h d o r f . T h a n k y o u.

[ Mr. Ba rsc h d orf ’s c o m plet e st at e m e nt f oll o ws:!
1 9

s s . z e a 3

B O X . 4 4 S

G R E E N V I L L E. M I S SI S SI P PI

S E N A T E S U B- C O M MI T T EE O'! U A T EP. R ES O U R C E S 

H E A RI N G - VI C KS B U R G, M I S SI S S I P PI 1 6 ’ 1 A Y 1 9 7 5

Mr. C h air m a n, C o m lt te e Me m bers, m y na me I s Milt o n B ars c h d orf. I a m t h e P o rt 

D ir e ct o r, P o rt of G r e e n ville , M is sis si p pi.

B ei n g gi ve n t h i s o p p o rt u nit y t o a p p e ar b ef o re y o u i s d ee pl y a p p r e cia te d.

My c o m m e nts are b ei n g ma de n ot o nl y i n b e h alf of t h e P ort o f G r e e n vil le , b ut als o 

i n b e h alf o f t h e I n la n d Ri v er s P o rts a n d T er m i n als, I n c., a n o r g a niz ati o n c o v eri n g t h e 

n a vi g a ble ri v e r s of o u r i n la n d w ate r w a y s s y st e m s er v i n g d ir e c tl y s o me 1 9 S ta te s wit h 

t h e m o st hi g hl y p r o d u cti v e a g ri c u lt u r a l re gi o n s a n d t h e m o st hi g hl y I n d u str ia li z e d 

s e cti o n s of o ur N ati o n.

I t h as be e n o nl y w it hi n t h e p a st f o u r or fi v e y e ars t h at t h e i n la n d ri v e r p o rts 

ha ve e m er g e d fr o m t h e st at u s of s t r i c tl y d o m esti c ca r g o d i stri b u ti o n p oi n ts t o f u ll - 

fl e d g e d p a rt n e r s i n t h e d ir e c t e x p o rt -i m p o rt tr a d e c a lli n g f o r e s s e n ti a ll y t h e sa me v a ri et y 

o f s p e ci al s e r vic e s i n cl u di n g f r ei g h t f o r w ar d i n g, c u st o m s, a n d s p e cia l c a r g o h a n dli n g 

h e r et o f o r e pe rf or m e d s ole l y b y t h e c o a st al p o rts .

T h es e m aj or c h a n ge s ha ve be e n br o u g ht a b o u t b y t h e de vel o p m e nt of s u c h i n n o v ati v e 

s h i p pi n g te c h ni q u e s ns t h e L A S H, S E A BE E a n d MI MI S HI P c o nc e p ts a n d t h e e n ti r e s p ectr u m of 

c o n t ai n e ri z ati o n, a ll of w hic h a r e v er y m uc h i n t h e i r i n fa n c y w it h g r e at p o te n ti a l f o r 

f u rt h e r e f fi c i e n c i e s a n d g r e at e r sa vi n g s t o t h e s hi p p e r as w ell as i m pr o vi n g t h e c o m petiti v e p o sit i o n of o ur N ati o n i n t h e tr a d e m ar ke ts of t h e w orl d.

T his tr e n d h as f u rt h e r e n ha nc e d t h e ri v e r p o rt s ’ p o sit i o n as a f o c al p oi n t of i n t e r ­

c h a n ge a m o n g t h e v ari o u s m o des o f tr a n s p o rt ati o n w h ere ma xi mu m e ffi cie n c y de pe n d s u p o n 

f u ll c o o p e ra ti o n o f a ll m o des w it h l n te r m o d allt y as a g o al i n d e v el o pi n g e q ui p m e n t, h a n dli n g 

te c h ni q u e s, a n d a d m i n is tr ati v e p r o c e d ure s w hic h are r e a dil y i n te rc h a n g e a ble i n b ot h t h e 

d o m es ti c a n d e x p o rt -i m p o rt tr a d e.

I n t h i s ne w e r a of ri v e r p o rt de vel o p m e nt i t ha s bec o me gla ri n g l y a p p are nt t h at ma n y of 

t h e o ut m o de d wa ys o f d oi n g t h i n g s m u st be re vis e d a n d c o rr e cte d as r a pi d l y as p o s si b le i f 

we a re t o r e a li z e ma xi mu m b e n e fits fr o m t h e e f fi c i e n c i e s ma de p o s si b le w it hi n t h e w or ki n g s 

o f o u r tr a n s p o rt ati o n s y st e m .

I t i s als o gla ri n gl y a p p are nt t h a t t h e c o nti n u e d h e alt h y gr o wt h o f t h e i n la n d water wa y 

tr a n s p o rt ati o n s y st e m i s t h re ate n e d t o be s c u tt le d b y t h o se w h o se e k s o me f or m of u s e r 

c h ar g e s w h et h er i n t h e f or m o f d ir e c t a ss es s m e n ts p er t o n- m il e o r t h e m ore s u btl e a p pr oa c h 

o f a n a d de d ta x o n f u e l, as t h e pa na ce a f o r c u ri n g t h e fi n a n cia l i l l s o f o ur c o u ntr y ’ s 

r ailr o a d s b y c a u si n g a di v e r si o n o f w at er b or n e ca r g o t o t h e r ailr o a d s a n d at t h e sa ne ti m e 

c o rr e cti n g w h at a p p ea rs t o be a n u n j u st u s e of t h e ta x p a y ers m o ne y i n d e v el o pi n g a n d mai nta i n i n g t h e I n la n d w at er w a y s.

A n u m ber o f st u die s are a v ail a ble w hi c h e v al u ate t h e si g nif ic a n c e o f t h e ri v e r p o rts 

a n d te r m i n als i n sti m ula ti n g t h e ec o n o m ie s of t h e l o c a liti e s a n d are a s t h e y s e r v e.
1 9 4

Pe r h a p s o ne of t h e n o st r e p r e s e nta ti v e o f t h e se st u die s Is o ne ma de of t h e P ort 

of L o u i s v ill e, K y., b y t h e Ur b a n St u die s C e nte r, U ni v e rs it y o f L o uis vil le , I t c o n cl u d es 

t h at t h e c o m bi ne d d ir e c t a n d I n dir e ct ec o n o mic I m pa ct o n t h e L o uis ville M et r o p olita n 

are a i n te r n s of a n n u al p a y r oll s of w or ke rs d ir e c tl y r el ate d t o w at er tr a n s p o rt ati o n 

t o be o v er $ 5 3 3, 0 0 0, 0 0 0 I n wa p.es a n d s a l a ri e s. T h at' s t h e e q ui v ale nt of $ 6 0 I n wa g es 

a n d s a l a ri e s f o r ea c h t o n of w at er b o r n e ca r g o s h i p pe d t h r o u g h t h e p o rt I n 1 9 7 3.

S o me I d ea o f t h e ec o n o mi c I m p act of t h e w at er b or n e m o ve me nts o ve r t h e e n tir e Mi ssi s si p p i Ri v er a n d tri b u t a ri e s s y st e m ca n be r e ali z e d b y a p pl y i n g t h i s $ 6 0 I n wa g es a n d 

s a l a ri e s t o t h e 3 1 7, 5 9 6, 6 1 4 t o ns c a rrie d I n 1 9 7 3 w hic h a m o u nts t o o ve r $ 1 9 b illi o n i n 

wa g es a n d s a l a ri e s.

Fr o m t h e b e st i n f o r m ati o n a v ail a ble fr o m t h e C or ps of E n gi n ee rs, t h e t o t a l a m o u nt 

o f e x p e n dit u re s o n t h i s e n tir e M is sis si p pi Ri v er a n d tri b u t a ri e s s y st e m si n c e t h e y ass u me d 

t h i s r e s p o n si b ilit y I n 1 7 8 9 was $ 8. 1 b illi o n t h r o u g h 1 9 7 3.

T hi s a m o u nts t o a n a v er a g e a n n u al e x p e n dit u re o f $ 1 0 0, 0 0 0, 0 0 0 t o g e n era te a n ec o n o mic 

I m pa ct of $ 1 9 b illi o n i n wa ges a n d s a l a ri e s - o r a n I n ve st m e n t of o u r ta x p a y ers m o ne y 

w hic h re t u r n e d $ 1 9 0 f o r ea c h $ 1 I n v e ste d.

A nd y et, t h e r e are t h o se w h o w o ul d d e str o y t h i s hi g hl y pr o d u cti v e us e o f t h e ta x p a y er s 

d o ll a r b y ta xi n g t h e w ate r w a y s t o r etrie v e s o me of t h e m ai nt e n a n ce e x pe ns e w hil e at t h e 

sa me ti m e c r e a ti n g a d o ll a r l o s s t o t h e ta x p a y er o f m uc h g r e at e r si g nif ic a n c e i n t h e 

f or m of l o s s I n J o bs a n d w a g es. An are a o f o u r ec o n o m y t h a t c e rt ai n l y ne e d s n o f u rt h e r 

s h ot i n t h e ar m t o c r e ate m ore u ne m pl o y m e nt.

R el at e d als o t o t h i s f al s e pr e m is e t h a t ta xi n g t h e w ate r c a rri e r s w o ul d b e n e fit 

o u r N ati o n b y pa yi n g ba c k t h e water wa y - m ai nte n a n ce c o sts i s t h e e q u all y f al s e pre s u m pti o n 

t h at ta xi n g t h e w ate r c a r ri e r s w o ul d ai d i n b alli n g o ut t h e r ailr o a d s b y vir t u e o f t h e 

t o n na ge t h at w o ul d be l o st b y t h e w at er c a r ri e r s a n d gai n e d b y t h e r ailr o a d s.

I n t h i s r e s p e ct l e t us e xa mi n e t h e bre a k d o w n o f ea c h m o d e's s h ar e of t h e N ati o n's 

tr a n s p o rt ati o n t o n n a g e a n d d o ll a r re ve n u es as p re p ar e d b y t h e re s e arc h s t a f f of t h e 

A m eri ca n Tr uc ki n g A ss o cia ti o n f o r t h e y e a r 1 9 7 3, t h e l a t e s t a v ail a b l e.

Z O F % OF

T O T A L T O N- MI L ES T O T A L T R A N S P O R T A TI O N R E V E N U ES

R ailr o a d s 3 8. 8 0 3 7. 4 8

M ot or C a rrie r s 2 2. 7 8 5 5. 3 5

I n la n d Water w a ys 1 5. 3 6 1. 2 6

Pi p eli n e s 2 2. 8 7 3. 5 9

Air . 1 9 2. 3 2

He re we se e t h e r ailr o a d s wit h 3 3. 8 0 % of t h e N ati o n's ca r g o a n d 3 7. 4 3 % of t h e 

tr a n s p o rta ti o n re v e n ue s b ei n g sa ve d fr o m f u rt h e r fi n a n cia l r ui n b y c a pt u ri n g a p o rti o n 

(a n d h o p ef u ll y a ll ) of t h e 1. 2 6 % re ve n u es g oi n g t o t h e w ate r c a r ri e r s.

T o ass u me t h a t t h i s 1 % a d d e d t o t h e 3 7. 4 8 % alr e a d y r e ali z e d Is g oi n g t o ha ve a n y 

si g n ifi c a n t e f f e c t o n t h e s t a t e of t h e r ailr o a d s Is o b vi o u sl y w it h o ut f o u n d ati o n.

Als o wit h o ut f o u n d ati o n, i s t h e as s u ra n ce t h a t t h e 1 % a d de d re ve n u e w o ul d be us e d 

m ore j u dic i o u sl y i n s o u n d ma na ge me nt p r a cti c e s w hic h w o ul d ha ve a f a r g r e at e r i n p a ct o n
1 95

- 3 -

I m p r o vi n g t h e i r d e t e r i o r a ti n g fi n a n c i a l p o s iti o n .

O ne f u rt h e r c o m m e nt o n t h i s p o i n t. W it h C o n g re s s a b o ut t o s u b si d i z e t h e r a il r o a d s 

w it h b illi o n s o f t h e t a x p a y e r s d o ll a r s we w ill b e a ss u m i n g t h e l i a b i l i t i e s o f t h e 

d e f e r r e d m ai n te n a n c e a n d b ett e r m e n t a c c o u nti n g p r o c e d u r e s p e r m itt e d b y t h e r a il r o a d s o v e r 

t h e y e a r s a n d n o w c o ni n g h o m e t o r o o st.

S u r el y t h e l e a d e r s h i p a s se m ble d i n o u r C a p it o l m u st r e c o g n iz e t h e tr u e n a t u r e a n d 

c o n s e q u e n c e s o f t h i s i l l c o n c ei v e d p la n o f u s e r c h a r g e s o n t h e w ate r w a y s o w n e d b y o u r 

t a x p a y e r s a n d r e t u r n i n g s u b s t a n ti a l d i v i d e n d s ma n y ti m e s o v e r i n t h e f o r m o f g r e a t e r 

e f f i c i e n c i e s a n d e c o n o m ie s i n t r a n s p o rt a ti o n .

A n ot h er It e m o f v i t a l c o n c e r n t o u s a n d o n e w hic h h a s a m aj o r i m p a ct u p o n t h e 

I n la n d ri v e r s n a v i g a ti o n p r o g ra m a n d al s o u p o n t h e h e a lt h y g r o wt h a n d e f fi c i e n c y o f 

o u r n a ti o n's t r a n s p o rt a ti o n s y ste m I s t h a t w hic h d e a l s w it h t h e r a t e s t r u c t u r e a n d 

r a t e r e g u l a ti o n .

I t i s q u it e o b vi o u s t h a t t h e m o st h i g h l y d e v el o p e d a n d e f f i c i e n t w ate r w a y, t r u c k o r 

r a il r o a d c o m pl e x I s d e s ti n e d t o g o i n t o t h e re d I f t h e r a t e s t r u c t u r e s a r e n o t c o n d u ci v e 

t o g e n e r a ti n g b u si n e s s o v e r a n d t h r o u g h t h e f a c i li t y . I t be c o m es p a ra m o u nt, t h e r e f o r e , 

t h a t t h e s y ste m s o f r a t e a p p li c a ti o n be c a r e f u ll y e x a mi n e d a n d m o nit o re d o n a c o n ti n u i n g 

b a s i s a n d t h e r a t e m a ki n g p r o c e s s l e f t fl e x i b l e f o r ti m e l y r e g u l a ti o n a n d a d j u st m e nt t o 

m ee t t h e n e e d s o f c h a n gi n g g r o wt h p a tt e r n s a n d i m pr o ve d h a n d li n g a n d s h i p p i n g t e c h n i q u e s.

A n y c o m p re h e n si v e I n v e s ti g a ti o n o f t h e I nla n d r i v e r n a v i g a ti o n s y ste m a n d i t s r o l e 

i n t h e n a ti o n a l p a tt e r n o f t r a n s p o rt a ti o n i s m e a ni n gle s s w it h o u t i n cl u d i n g a n a n a l y si s 

o f t h e r a t e p a tt e r n s a n d t h e d e g r e e s t o w hic h t h e s e p a tt e r n s a r e a f f e c ti n g t h e c o m p etit i o n 

a m o n g m o de s a n d t h e d e g r e e t o w hic h t h e s e p a tt e r n s a r e s u b j e c t t o ti m el y a dj u st m e nt 

t o m ee t c h a n gi n g c o n d iti o n s.

A c a s e i n p o i n t i s t h e r a t e s t r u c t u r e d e vis e d b y t h e r a il r o a d s i n c o ll a b o r a ti o n 

w it h t h e c o a st a l p o rt s d u ri n g t h e 1 9 3 0's , d u ri n g t h e h e i g h t o f t h e d e p r e s si o n o v e r 4 0 

y e a r s a g o, f o r t h e s hi p m e nt o f c a r g o t o t h e c o a s t a l p o rt s f o r e x p o rt.

T h e m i d - c o n ti n e n t o f t h e U nit e d S t a t e s wa s v e r y c l e v e rl y d i v i d e d i n t o tr a d e a r e a s 

t o a c c o m o d ate t h e r a il r o a d s ’ s h i p p i n g p a tt e r n s w it h e a c h a r e a a s si g n e d a r a t e s t r u c t u r e 

a p p li c a b l e t o r e l a t e d a r e a s o f c o a st a l p o rt s. A s o c a ll e d " e q u ili z a ti o n " o f r a t e s d e si g n e d 

t o k e e p t h e e x p o rt-i m p o rt t r a d e c o m p etit i v e a m o n g t h e c o a s t a l p o rt s a n d, a t t h e sa m e ti m e, 

c r e a t e a p a tt e r n o f d e p r e s s e d r a i l r a t e s f o r e x p o rt s, i n cl u d i n g s u c h a d d iti o n a l p r e f e r e n ­

t i a l tr e a t m e n t a s a b s o r p ti o n o f w h a rf a g e c h a r g e s a n d g r e a t e r f r e e ti m e o n r a i l c a r s b e f o r e 

a s s e s s i n g d e m u rr a g e.

T his a l l w or ke d o ut fi n e 4 0 y e a r s a g o, t h e p l a n a p p e ale d t o t h e c o a s t a l p o rt s si n c e 

i t c r e a t e d a n a r t i f i c i a l s t r u c t u r e a s s u ri n g t h a t s u c h p o rt s a s Ne w O rl e a n s, M o bil e a n d 

H o u st o n w o u l d r e c e i v e e x p o rt c a r g o a t t h e sa m e r a i l r a t e r e g a r d l e s s o f t h e d l f f e r e n c i e s 

i n d i st a n c e o f s hi p m e nt. T he p l a n o b v i o u sl y a p p e ale d t o t h e r a il r o a d s si n c e i t c r e a t e d 

f o r t h e m a g r e a t e r d e p r e s s e d r a t e s t r u c t u r e a n d o t h e r s p e c i a l c o n si d e r a ti o n s f o r e n ­

h a n ci n g s hi p m e nts b y r a i l f o r e x p o rt. T he I n t e r s t a t e C o m mer ce C o m mis si o n, i m p re s s e d b y 

t h i s a g re e m e nt b et w e e n t h e r a il r o a d s a n d t h e c o a st a l p o r t s , a n d i n t h e a b s e n c e o f a n y 

a p p r e c i a b l e o p p o siti o n , a p p r o v e d t h e p l a n.

T his a l l h a p p e n e d a t a ti m e p r i o r t o t h e a d v e nt o f a h i g h l y c o m p etit i v e t o w b o at
1 9 6

I n d u str y s e r v i n g t h e I n la n d ri v e r s a n d a t a ti n e w h e n a l l o f t h i s N a ti o n's e x p o rt s w ere 

f u n n ell e d t h r o u g h t h e c o a st a l p o rt s. T h ere wa s n o S t. L a w re nc e Se a w a y O u tl et f o r t h e 

e x p o rt t r a d e n o r w ere a n y o f t h e p o rt s o f t h e v a st I n la n d w ate r w a y s s y ste m I n v ol v e d 

I n d i r e c t e x p o rt s hi p m e nts .

T o d a y , h o w e v e r, w it h t h e d r a m ati c c h a n g e s t h a t h a v e t a k e n p l a c e t h r o u g h o ut t h e 

e n ti r e t r a n s p o rt a ti o n s p e ctr u m , t h i s s p e c i a ll y d e vis e d e x p o rt r a i l r a t e s t r u c t u r e f a v o ri n g 

t h e r a il r o a d s a n d t h e c o a s t a l p o rt s o n l y, h a s be c o me a m o n ste r o f u n f a i r c o m p eti ti v e 

p r a c ti c e c o m ple te l y o ut m o d e d a n d h i g h l y d i s c ri m i n a t o r y .

U lt h t h e o p e ni n g o f t h e S t. L a w re nc e Se a w a y a n d t h e d e v el o p m e nt o f ne w a n d m o re 

e f f i c i e n t t r a n s p o rt a ti o n te c h n i q u e s s u c h a s C O N T AI N E RI Z A TI O N, L A S H, S E A B E E a n d ‘ U N I S H I P S, 

t h e p o rt s t h r o u g h o ut o u r v a st n et w o r k o f I nla n d w ate r w a y s a n d t h e G re at L a k e s s y ste m h a v e 

bec o m e I n v ol v e d I n t h e d i r e c t e x p o rt tr a d e a s F e d e r a ll y d e si g n at e d P o rts o f E ntr y p e r ­

f o r m i n g e x a c tl y t h e s a n e e x p o rt s e r v i c e s f o r t h e s h i p p e r as d o t h e c o a st a l p o rt s.

N ot w it h st a n d i n g t h e s e d e v el o p m e nts t o p r o vi d e a m or e e f f i c i e n t t r a n s p o rt a ti o n s y ste m 

o f f e ri n g s a v i n g s t o t h e s h i p p e r a n d t h e t a x p a y e r, t h e r a il r o a d s a d a m a ntl y c li n g t o t h i s 

a r c h ai c p a tt e r n o f p r e f e r e n ti a l e x p o rt r a t e s a n d r e f u s e t o r e c o g n iz e t h e e m er g e n ce o f t h e 

I n la n d a n d G re at L a k e s P o rt s a s e x p o rt o u tl e t s w it h e q u al J u s ti f i c a ti o n f o r t h e sa m e 

s p e c i a l tr e at m e n t a c c o r d e d t o c o a st a l p o rt s. As a r e s u lt, a l l r a i l s hi p m e nts , e x p o rt a s 

w ell a s d o m e stic , m o v e t o t h e I n la n d p o rt s a t d o m e sti c r a t e s o nl y w it h n o d i s ti n c ti o n 

b et w e e n t h e e x p o rt a n d d o m e sti c s hi p m e nt.

T he d i f f e r e n c e h et w e e n t h e e x p o rt r a t e s a n d t h e d o m e sti c r a t e s o v e r t h e sa m e r a il r o a d 

fr o m a n d t o t h e sa m e p o i n t s c o v e r a wi d e ra n g e a n d i s q u it e s u b s t a n ti a l r e s u lti n g I n a 

h i g h l y d i s t o r t e d s t r u c t u r e d e si g n e d t o c a p t u r e t h e e x p o rt t r a d e s o l e l y f o r t h e 

c o a st a l p o rt s.

F o r e x a m ple, t h e s h i p p e r i n C hi c a g o w h o h a s a g ri c u lt u r a l i m ple m e nts t o s h i p t o 

Ne w O rle a n s p a y s $ 4 5. 4 0 p e r t o n i f t h e a r t i c l e m o ve s o n t h e " d o m e sti c " r a t e a n d $ 3 5. 2 0 

p e r t o n i f d e sti n e d f o r e x p o rt - a 2 9 % d i f f e r e n c e .

T he s h i p p e r i n M ilit a r y , K a n s a s, w h o w is h e s t o s e n d M et h a n ol t o Ne w O rle a n s p a y s 

$ 3 3. 2 0 p e r t o n o n t h e " d o m e sti c " r a t e a n d o nl y $ 1 8. 6 0 p e r t o n I f g oi n g e x p o rt - a 7 9 % 

d i f f e r e n c e .

Mo s u c h r e d u c ti o n i n r a t e s f o r e x p o rt a p p li e s t o t h e N a ti o n's I n la n d r i v e r p o rt s 

e v e n t h o u g h t h e y n o w p e rf o r m e x a c tl y t h e sa m e s e r v i c e i n t h e e x p o rt-i m p o rt t r a d e .

H er e we h a v e i n o u r p r e s e n t s y ste m a n a r c h a i c p a tt e r n o f r a t e a p p li c a ti o n d o g g e dl y 

a d h e re d t o b y t h e r a il r o a d s a n d c o n d o n e d b y t h e I n t e r s t a t e C o m merc e C o m missi o n * A d u al 

p ri c i n g s y ste m b y w hic h t h e sa m e p r o d u ct m o vi n g o v e r t h e sa m e li n e u n d e r e x a c tl y t h e 

sa m e c o n d iti o n s o f t r a n s p o rt I s b ill e d a s c o sti n g s i g n i f i c a n tl y m o re t o m o v e I f l a b e ll e d 

d o m e sti c t h a n I f l a b e ll e d f o r e x p o rt-i m p o rt. F u rt h e r m o r e, t h i s d u al r a t e a p p li c a ti o n a p p li e s 

o nl y t o c e rt a i n p o rt s a n d n o t t o o t h e r s e v e n t h o u g h e x a c tl y t h e sa m e s e r v i c e s a re a v a il ­

a b l e.

T h e r a il r o a d s a r e e it h e r a c c e p ti n g s u b s t a n ti a l l o s s e s i n t h e e x p o rt t r a d e a n d m a k i n g 

i t u p b y i n c r e a s e d p r o f it s i n t h e d o m e sti c t r a d e , o r, I f t h e e x p o rt t r a d e i s c o m p e n s at o r y 

t h e y a r e g r o s sl y o v e r c h a r g i n g o n t h e d o m e sti c r a t e s . I n e it h e r c a s e , t h e i r d u al p ri c i n g 

s y ste m I s o b v i o u sl y d i s c ri m i n a t o r y a g a i n st t h e I n la n d p o r t s , n o t t o m e n ti o n t h e l e g a lit y 

a s p e c t s o f s u c h a b u si n e s s p r a c ti c e I n a m o n o p ol y s it u a ti o n .
1 9 7

- 5 -

C o rr e cti v e a cti o n ne e d e d t o gi v e ti m el y re me d y t o t h i s l o n g e sta b li s h e d p r a ctic e 

w hic h i s n o w str a n g li n g t h e gr o wt h a n d e f fi cie n c y o f o u r i n la n d ri v e r tr a n s p o rt ati o n 

s y ste n i s be y o n d t h e r o uti n e l o n g dr a g ge d o u t c o m pl ai nt pr d ee d ure s a v ail a ble t h r o u g h t h e 

I n t e r st a t e C o m merce C o m missi o n, b ut r at h e r a m att e r f o r a cti o n b y C o n gr es s t o a me n d 

p r o vis i o n s of t h e S h i p pi n g Act a n d t h e I n t e r st a t e C o m merce A ct.

T hi s t a c ti c of r a t e m a ni p ula ti o n b y t h e r ailr o a d s is als o p r e v ale nt i n t h e l o n g 

h a ul v e rs u s s h o rt h a u l m o v e m e nt s.

Si n ce l o n g h a u l m o ve me nts are m o st e f fi c i e n t b y w ate r, t h e r a ilr o a d s, i n l o w eri n g 

t h e ir r a t e s i n a n e f f o rt t o c a pt u re t h i s tr a d e fr o m t h e w at er c a r ri e r s, m u st ma ke u p t h e 

dif f e r e n c e b y o v er c h ar g i n g o n t h e s h o rt h a ul o r o n t h e r o ute s w h ere t h e r e i s le s s or 

n o c o m p etiti o n. A p r a ctic e w hic h c e rt ai n l y d o es n ot c o ntr i b ute t o t h e o v e r all e ffic ie n c y 

o f a n i n te rr a o d al tr a n s p o rt ati o n s y st e m o r pr o vi d e t h e s hi p p er a n d t h e ta x p a y er t h e b e st 

p o s si b le s e r vic e f o r h is tr a n s p o rt ati o n d o ll a r.

I t I s I n t e r e sti n g t o n ote h ere t h a t Mr. Ala n S. B o y d, P r e si d e n t, I lli n o i s C e ntr al 

G ulf R ail r o a d, f or m er S e c re ta r y o f t h e D e p art m e nt of T r a n s p o rta ti o n, re c o g niz e d t h i s 

p oi n t of mi ni m u m r et u r n t o t h e r ailr o a d s o n t h e l o n g h a u l i n a s p ee c h he ma de b ef o re 

t h e N ati o n al C o u nc il o f P h y si c al D is tr i b u ti o n Ma na g e me nt i n Ne w Y or k. He st a t e d , " T h e 

f ut u r e s u c c e ss st o ri e s i n tr a n s p o rt ati o n w ill be b u ilt u p o n t o n n a g es t h a t a r e e x p e n si v e, 

s w ift, li g h t a n d s h o rt. Ei g ht y p e r c e nt o f tr a n s p o rt ati o n d o ll a r s s p e nt g o es i n t o 

c a rria g e l e s s t h a n 3 0 0 m il es l o n g. R ail s m u st re g ai n s h o rt h a ul t r a f f i c . I d o u bt t h at 

s u c h c o n c e ntr ati o n o n he a v y, l o n g, sl o w , l o w re ve n u e t o n n a g e i s g o i n g t o si g n ifi c a n tl y 

i m pr o v e t h e p r e s e nt f o rt u n e s o f t h e r a ilr o a d i n d u str y. T he s u c c e ss o r f a il u r e o f t h e 

i n d u str y w ill b e de te r m i n e d i n t h e a re a w h ere t h e b ul k o f t h e m o ne y s p e nt f o r tr a n s p o rt a ti o n i s s p e nt - t h e s h o rt h a ul m a r k et. "

I t i s s u c h r at e p r a ctic e s as t h e se t h a t ha ve a d i s ti n c t b e a ri n g o n t h e fi n a n cia l 

v i a b ilit y o f a l l n o de s a n d t h e r e s u lti n g c o m p etiti v e cli m ate i n w hic h a ll m u st o p e r ate .

A c o m pl et e o v er h a u l o f t h i s a r c h aic a n d o ut m o de d s y st e m o f r a t e ma ki n g a n d p att e r n s 

ha n d e d d o w n fr o m t h e p a st m u st f i r s t be c o rr e cte d a n d a dj u ste d t o me et t o da y s ne e d s 

b e f o r e a n y att e m pt i s ma de t o c o me t o a d e cis i o n as t o t h e p r o p rie t y o f ta xi n g o n e m ode 

a t t h e e x pe ns e of a n ot h er.

Here a g ai n , a cti o n b y C o n g re ss a p p e ar s t o be t h e o n l y re c o u rs e i f we are t o r e aliz e 

ti m el y f u lfill m e n t o f t h i s w ort h y g o al.

I n s u m m ar y,t h e n, t h e se a re t h e pri m ar y it e m s we b eli e v e d e s e r v i n g of t h e m ost c a re ­

f u l i n - d e pt h i n v e sti g ati o n a n d u n bi as e d a n al y sis i n o r d e r t o d e v el o p t h e m o st b e n e fi cia l 

a cti o n t o be ta k e n t o i m pr o ve t h e e f fi cie n c y a n d e ff e cti v e n e s s o f o ur N ati o n ’ s tr a n s p o rt a ti o n s y st e m !

1. T he d is a str o u s I m pa ct t h a t u s e r c h ar g e s o r ta x e s o n t h e i n la n d ri v e r s w at er 

c a r ri e r s w o ul d ha ve u p o n t h e ec o n o m y o f a v a st a n d v it a l p r o d u cti v e se g me nt o f o ur 

N ati o n se r v e d b y t h e i n la n d w at er w a y s. An e n or m o us a d v ers e i m pa ct i n wa g es a n d 

s a l a ri e s al o n e of f a r g r e at e r p r o p o rti o n s t h a n t h e pr o p os e d ta x re ve n u e r e aliz e d,

2. T he d ir e ne e d f o r c o rr e cti n g t h e p r e s e nt a r c h aic , o ut m o de d a n d g r o s sl y dis c ri m ­

i n at o r y e x p o rt -i m p o rt r at e str u ct u r e a n d t h e o v er ha ul of t h e p r e s e nt r at e ma ki n g 

s y st e m a n d r e g ula t o r y p r o c e s s w it h a vi e w t o w ar ds m ore fl e x i b l e a n d ti m el y 

r e g u l ati o n t o me et c h a n gi n g gr o wt h p atte r n s a n d i m pr o ve d h a n dli n g a n d s h i p pi n g
1 9 8

6 -

t e c h n i q u e s. T he se a dj u st m e n t s b ei n g n e c e s s a r y i n o r d e r t o a r ri v e a t a c o m m o n 

d e n o m i n at o r b e f o r e s i n g li n g o ut o n e m o de o v e r t h e o t h e r f o r u s e r c h a r g e s 

a n d / o r t a x p u r p o s e s.

3. T h e d i s ti n c ti v e e f f e c t s u p o n t h e d e v el o p m e nt o f a n e f f i c i e n t t r a n s p o rt a ti o n

s y ste m a s a r e s u lt o f t h e r a il r o a d s' f a il u r e t o f u ll y c o o p e r at e i n t h e d e v el o p ­

m e nt o f a n I nte r m o d al s y ste m c a p a b l e o f r e a li z i n g ma xi m u m e f f i c i e n c i e s i n 

t h e t r a n s f e r a n d e x c h a n g e o f c a r g o a m o n g m o d es, r o ute d al o n g t h e m ost e c o n o m ic al 

li n e s , a n d w it h m o re str e a m li n e d a d m i n i st r a ti v e p r o c e d u r e s. Als o a n e s s e n ti a l 

c o n si d e r a ti o n b e f o r e a s s e s si n g t h e m e rits o f a d j u sti n g t h e fi n a n c i a l p o s iti o n 

o f o n e m o de a g a i n st a n o t h e r t h r o u g h s e l e c ti v e t a x a ti o n .

T h a n k y o u, o n c e a g a i n , f o r g i v i n g me t h i s o p p o rt u n it y t o a p p e a r b e f o r e y o u.
1 9 9

Se na t or Gr a v e l . Sir, if y o u c o ul d pr oc ee d at t his ti me.

S T A T E M E N T O F PI E R R E C O R D E L L R E E H, DI R E C T O R, P L A N NI N G 

A N D P O R T D E V E L O P M E N T, P O R T O F N E W O R L E A N S

Mr. R e e h . T h a n k y o u, Se n at or.

M y na m e is Pie rre C or dell Ree h, a n d I a m t he dire ct o r of pla n ni n g 

a n d p o rt de v el o p m e nt of t he P o rt of Ne w Orle a ns.

Mr. E. S. Rei d, o ur g e ner al ma na ger a n d dire ct or, wis hes t o e x pr ess 

his re g rets t h at he was det ai n e d i n Bat o n R o u ge a n d c o ul d n ot be at 

t his ver y i m p o rta nt meeti n g.

T h e P o rt of N e w Orle a ns is t he f ocal p oi nt f or 1 9, 0 0 0 miles of i nla n d 

wat er w a ys t h at m a ke u p t he Mississi p pi Ri ver a n d its tri b utarie s a n d 

t he G ulf I ntra c o astal Water w a y a n d its tri b utaries. T he ref o re, a n y 

i m pacts o n t he via bilit y of t his va st water wa y s yste m is of gr eat 

i m p ort a nc e t o t he c o nti n u e d he alt h a n d well- b ei n g of t he St at e of 

L o uisia n a.

T h e P o rt of Ne w Orle a ns is t he N o. 1 grai n p o rt i n t he w orl d wit h a 

val u e of $ 8. 2 billi o n i n f orei g n tra de i n 1 9 7 4, a n d is t he s ec o n d p o rt i n 

t he Nati o n a n d o ne of t he t o p fi ve p orts i n t he w orl d i n ter ms of its 

1 3 6 milli o n t o n s t h at m o ve d t hr o u g h its are a last yea r. T h e p o rt ha s 

a n ec o n o mic i m pa ct o n t he St at e of L o uisia na of al m ost $ 4 billi o n a 

yea r. T his is e q ui vale nt t o $ 4, 0 0 0 i nc o m e t o eac h fa mil y i n t he St ate.

O ur p ositi o n o n t he c u rre nt o p erati o ns of t he i nl a n d water wa y 

pr o gra m a n d pr o p ose d user c har ge s t her e o n were set f ort h i n Ja n uar y 3 1, 1 9 7 5, letter s t o y o u a n d Se nat or Je n ni n gs Ra n d ol p h, c h air ­

ma n of t he Se nat e P u blic W or ks C o m mitte e, fr o m o ur ass oci ate p o rt 

dir ect or, Mr. H. R. Ha ar, Jr., i n his ca pa cit y as c h air ma n of t he 

b oa r d of t he Nati o nal Water w a ys C o nf ere n ce.

Mr. H aa r w o ul d ha v e desire d t o be here, b u t he is i n It al y at t he 

m o me nt o n p o rt b usi n ess.

I w o ul d li ke t o n o w briefl y hi g hli g ht t he maj or p oi nt s c o ntai ne d i n 

t h at c o m m u nic ati o n.

T h e i nl a n d a n d c oa stal s hall o w dr aft water w a ys tra ns p o rte d o ver 

2 3 2 billi o n t o n- mile s of car g o i n 1 9 7 3 at t he l o we st c ost a n d t he lea st 

c o n s u m pti o n of f uel. O ver 6 0 perce nt of t he water b or ne c o m mer ce 

c o nsists of f uel re q uir e d t o he at a n d li g ht o ur h o m es a n d p o w er o ur 

i n d ustries. T h e U ni ve rsit y of Mi n n es ota W ate r Res o urc es Res ear c h 

Ce nte r ha s j u st p u blis h e d a st u d y s h o wi n g t h at t he d o m esti c car g o 

carrie d o n t he i nla n d water wa ys a m o u nte d t o 1 4 perce nt of o ur 

N ati o n’s i nt er cit y tra ns p o rtati o n.

I m pr o ve d na vi g ati o n a n d water res o urce ma na g e m e nt ha ve sti m ulat e d ec o n o mic gr o wt h a n d i ncr ease d pr o d ucti vit y. I n 1 3 y ear s, al m ost 

$ 4 3 billi o n were i n v est e d i n ne w facilitie s o n t he O hi o Ri v er. Si nce 

1 9 6 0, si x ne w e x p ort grai n ele v at o rs w ere b uilt o n t he l o w er Missis si p pi 

Ri v er. O ne ne w ele vat or is p res e ntl y u n de r c o n str ucti o n, a n d t w o are 

i n t he pla n ni n g sta g e. Bar g es bri n g fr o m t he he art of t he Nati o n 8 5 

pe rce nt of t he grai n e x p orte d.

I m p o siti o n of se g me nt t olls or ot her water w a ys user c har ges will 

i ncre ase t h e c ost of all c o m m o dities pre se ntl y m o v e d b y water. T his 

will i ncr ease t he c ost of ele ctri cit y, b uil di n g material, f uel a n d f o o d 

pr o d u cts, gr eatl y a d di n g t o t he pre se nt i nfl ati o n a n d re d uci n g t he 

N ati o n’s c o m petiti v e p ositi o n i n w orl d tra de. T he se c har ges c o ul d 

res ult i n destr o yi n g t he c o m petiti v e a d va nta ge s of water tra ns p o rta -
2 0 0

ti o n res ulti n g i n t he a b a n d o n m e nt of certai n na vi gati o nal wat er w a ys. 

C o m m o dit y m o ve m e nt s hifte d t o ot h er mea ns of tra ns p o rtati o n will 

res ult i n i ncre ase d usa ge of f uel oil a n d gas oli ne. T h e s hi ft of c o m ­

merc e t o rail a n d r oa d tra ns p o rtati o n will i m pa ct ur ba n a n d r ur al 

p o p ulati o n area s t hr o u g h i ncre ase d c o n ce ntrati o n s of p oll uta nt s a n d 

ca use accelerate d e n vir o n me ntal de g ra dati o n.

I wis h t o t h a n k y o u ver y m uc h, Se n at or, f or gi vi n g me t he o p p or ­

t u nit y of a p p eari n g bef or e y o ur s u b c o m mittee a n d h o pe t h at y o u will 

care f ull y c o nsi der t he si g nific a nt be nefits t h at are n o w accr ui n g t o 

t he Nati o n base d o n o ur c u rre nt wat er w a y p olicies bef ore y o u rec o m ­

me n d a n y c ha n g es i n w h at we belie ve t o be a ver y via ble o pe rati o n.

T h a n k y o u, Se n at or.

Se nat or G r a v e l . T h a n k y o u ver y m uc h, Mr. Ree h, f or t h at ver y 

fi ne state m e nt.

[ Atta c h me nts t o Mr. Re e h’s state m e nt f oll o w:]

a t i o n a l Wa t e r w a y s Co n f e r e n c e , In c .,

W as hi n gt o n, D. C., J a n u a r y 3 1, 1 9 7 6.

H o n. J e n ni n g s Ra n d o l p h

C h ai r m a n, C o m mitt e e o n P u bli c W o r ks,

U. S. S e n at e, W as hi n gt o n, D. C.

e a r Se n a t o r Ra n d o l p h : I n u n c ert ai n ti m es s u c h as t h es e — w h e n t h e N ati o n 

f a c es m a n y criti c al pr o bl e ms a n d l ar g e s e g m e nts of t h e e c o n o m y ar e f alt eri n g — w e 

t hi n k it is w ort h w hil e t o t a k e n ot e of t h os e s yst e ms a n d i nsti t uti o ns w hi c h ar e 

h e alt h y a n d still w or ki n g w ell. I n t h e e c o n o mi c s e ct or, o n e of t h es e is A m eri c a’s 

2 5, 0 0 0- mil e i nl a n d w a t er w a ys s yst e m.

B ar g es a n d t o wi n g v ess els o p er ati n g o n t h e i nl a n d ri v ers a n d i ntr a c o a st al 

w a t er w a ys tr a ns p ort e d o v er 2 3 2 billi o n t o n- mil es of c ar g o d uri n g c al e n d er y e ar 

1 9 7 3. T his a m o u nt e d t o r o u g hl y 11 p er c e n t of t h e N ati o n’s t ot al i nt er cit y fr ei g h t 

tr a n s p o rt ati o n o ut p ut. G o v er n m e nt fi g ur es s h o w t h at d uri n g t h e 1 0- y e ar p eri o d 

fr o m 1 9 6 3 t o 1 9 7 3, t o n- mil es of tr a n s p ort ati o n s er vi c e p erf or m e d b y t his l o w- c ost, 

e n er g y- effi ci e nt m o d e gr e w b y 6 7. 3 p er c e n t. E v e n n o w, m a n y s hi p y ar d s ar e j a m m e d 

wit h o r d ers f or n e w t o w b o ats a n d s p e ci aliz e d b ar g es t o pr o vi d e i n cr e as e d w' at er w a y 

fr ei g h t s er vi c e.

As y o u k n o w, t his p h e n o m e n al n ati o n wi d e st o r y of gr o w t h i n c o m m e r ci al 

tr a ns p ort ati o n o n U. S. ri v e rs a n d w at er w a ys h as b e e n p ar all el e d b y wi d es p r e a d 

e c o n o m i c d e v el o p m e nt a n d e x p a n di n g i n d ustri al j o b o p p o rt u niti es i n v a st r e gi o ns 

s er v e d b y i nl a n d n a vi g ati o n. Li k e wi s e, t h e e c o n o mi c pr o gr ess br o u g ht b y w a t er 

tr a ns p o rt a ti o n h as oft e n b e e n b u t o n e a n cill ar y b e n efit of m ulti pl e- p ur p os e w a t er 

r es o ur c es d e v el o p m e nt pr oj e cts. R a r el y h a v e ri v ers b e e n i m pr o v e d s ol el y f or 

n a vi g ati o n. M or e oft e n, w at er w' a y d e v el o p m e n t h as als o pr o vi d e d s u c h ot h er 

p u bli c b e n efits as fl o o d pr ot e cti o n, m u ni ci p al a n d i n d u stri al w a t er s u p pl y, h y d r oel e c tri c p o w er, irri g ati o n, w at e r-r el at e d r e cr e ati o n, fis h a n d wil dlif e e n h a n c e m e nt, 

b a n k st a bili z ati o n, et c.

T h us, ri v ers h a v e r e p e at e dl y b e e n tr a nsf or m e d fr o m r e gi o n al hi n dr a n c es — 

err ati c, u n c o n tr oll e d str e a ms w hi c h w er e fr e q u e n tl y “ a mil e wi d e e v e r y s pri n g 

b u t o nl y a f o ot d e e p b y s u m m er ” — i nt o c h eris h e d n ati o n al a n d r e gi o n al ass ets. 

T h e c ar ef ul att e nti o n w hi c h C o n gr e ss h as gi v e n t o wis e m a n a g e m e nt of t h e 

N a ti o n’s ri v er s a n d h ar b o rs — p ar ti c ul arl y t hr o u g h t h e eff orts of y o u r C o m mitt e e 

a n d its c o u n t er p art i n t h e H o us e — h as p ai d off i n t h e cr e ati o n of r e vi t aliz e d ri v er 

v all e y s w hi c h ar e s er vi n g t o sti m ul at e tr a d e a n d c o m m er c e, g e n er at e n e w j o bs 

a n d i n c o m es, e nl ar g e t h e l o c al t a x b as e, a n d e n er giz e t h e e ntir e e c o n o m y. M or eo v er, ri v e r n a vi g ati o n h as h el p e d t o e n h a n c e f ar m a n d i n d u stri al o ut p ut, d o m esti c 

f u el s u p pli e s, U. S. e x p o rt tr a d e a n d t h e b al a n c e of p a y m e nts, p o p ul ati o n dis p er s al, 

a n d i m pr o v e m e nt i n t h e q u ali t y of lif e a n d o p p o rt u niti es n o w a v ail a bl e t o citiz e ns 

i n m a n y f or m e rl y l a n d-l o c k e d r e gi o ns of t h e N ati o n’s i nt eri o r.

I nl a n d n a vi g ati o n’s c urr e nt a n d f ut ur e i m p o rt a n c e i n all e vi ati n g A m eri c a’s 

e c o n o mi c a n d e n er g y mis eri es is w ell ill ustr at e d b y t w o f a cts: 1 / A v e r a g e b ar g e 

r at es w er e, as r e c e ntl y as 1 9 7 3, l o w er t h a n t h e c eili n g r at e s of W orl d W ar II, a n d 

2 / W a t er c arri ers h a v e b e e n s h o w n i n r e p e at e d st u di es t o o ut- p e rf or m all ot h er 

s urf a c e fr ei g ht tr a n s p or t ati o n m o d es i n t er ms of s er vi c e r e n d er e d p er u ni t of f u el 

c o ns u m e d.
2 0 1

I n his r e c e n t St at e of t h e U ni o n m ess a g e, Pr esi d e nt F or d o utli n e d his n ati o n al 

e n er g y c o ns er v ati o n pr o gr a m, e x pr ess e d f ait h i n A m eri c a’s c a p a biliti es, a n d e nvisi o n e d “ wit hi n t h e n e xt 1 0 y e a rs” t h e c o n str u cti o n of 2 0 0 m aj or n u cl e a r p o w er 

pl a nt s, 3 0 m aj or n e w oil r efi n eri es, a n d 2 0 m aj o r n e w s y nt h e ti c f u el pl a n ts. Si g ­

nifi c a ntl y, h o w e v er, t h e Pr esi d e nt di d n ot dis c uss t h e m a ssi v e w a t er s u p pli e s a n d 

i n cr e as e d tr a n s p ort ati o n c a p a cit y n e c ess ar y t o u n d ert a k e s o m u c h e n er g y-r el at e d 

d e v el o p m e nt. Wis e a n d pr u d e nt us e of vit al w at er r es o ur c es will pl a y a k e y r ol e 

i n f ut u r e U. S. e n er g y pr o d u cti o n. It s e e ms o b vi o us, t h er ef o r e, t h a t m or e att e nti o n 

m us t b e gi v e n t o m ulti pl e - p ur p os e w at er r es o ur c es pr o gr a m s, i n cl u di n g n a vi g ati o n, 

i n r el ati o n t o n ati o n al e n e r g y g o als.

W a t er w a ys ar e p ar ti c ul arl y i m p ort a nt i n t h e l o w- c ost tr a n s p o rt ati o n of c o al 

t o el e ctri c utiliti es. B ar g es, i n f a ct, m o v e o n e-f o urt h of all t h e c o al mi n e d i n t h e 

U ni t e d St at es. T h e pr esi d e n t of t h e A m eri c a n El e ctri c P o w e r C o m p a n y, Mr. 

G e or g e V. P att e rs o n, r e c e ntl y r ef err e d t o t h e i nl a n d w a t er w a y s, c o al tr a n sp ort ati o n a n d el e ctri c p o w er g e n er ati o n as r e pr es e nti n g a s ort of t hr e e-l e g g e d mil ki n g 

st o ol. R e m o v e a n y o n e of t h e l e gs, h e s ai d, a n d y o u will fi n d t h e i m p or t a n t o n e is 

g o n e. I n a d diti o n t o c o al, b ar g e s t r a n s p o rt e xtr e m el y l a r g e v ol u m e s of cr u d e oil a n d 

p etr ol e u m pr o d u c ts. I n f a ct, f ull y 6 0 p er c e nt of all i nl a n d w at e r b or n e c o m m er c e 

c o nsists of e n er g y s u p pli es.

A m e ri c a’s e n er g y pr o bl e m s ar e, as e v er y o n e k n o ws, b u t a p a rt of t h e d e e p e ni n g 

e c o n o mi c tr o u bl es. I nfl a ti o n is a c o nti n ui n g w or r y. B e c a us e of b ar g eli n es’ l o w 

r at e s i n tr a n s p o rti n g t h e r a w m at e ri als a n d f u els of A m e ri c a’s b asi c i n d u stri e s — 

a n d t h e f a c t t h a t b ar g e r at e s s er v e as a n “ a n c h or” o n t h e r at e s of o v erl a n d 

m o d es — t h e w at er w a ys h a v e h el p e d t o h ol d d o w' n i nfl ati o n t hr o u g h o ut t h e fr ei g ht 

tr a n s p or t ati o n s e ct o r a n d m u c h of t h e o v e r all e c o n o m y as w ell. As a r es ult of t h e 

hi g hl y c o m p eti ti v e n at u r e of b ar g e s er vi c e, s a vi n gs i n w a t er tr a n s p o rt ati o n c osts 

ar e p ass e d o n t o s hi p p ers, w h ol es al ers a n d ulti m at el y t o c o ns u m ers. I n a v e r y r e al 

s e ns e, t h er ef o r e, b ar g e s er vi c e is c o u n t er-i nfl ati o n a r y.

A n ot h er as p e c t of t h e N a ti o n’s e c o n o mi c w o es is w a ni n g pr o d u cti vit y, w hi c h 

is at t h e h e ar t of t h e c urr e nt r e c essi o n. His t or y i n di c a t es, b y n u m er o u s e x a m pl es, 

t h at w at er tr a ns p ort ati o n a n d m ulti pl e p ur p os e w at er r es o ur c es m a n a g e m e nt c a n 

s er v e as m aj o r sti m ul a n ts t o i n cr e as e d pr o d u cti vit y :

B et w e e n 1 9 5 0 a n d 1 9 7 3, c o u nti es b or d e ri n g t h e O hi o Ri v er a n d its n a vi g a bl e 

tri b ut a ri es wit n ess e d t h e i n v est m e nt of $ 4 2. 8 billi o n i n n e w a n d e x p a n d e d pl a nt 

f a cili ti es, cr e ati n g c o u ntl es s t h o us a n ds of n e w j o bs. C o n s e q u e n tl y, t h e O hi o V all e y 

is oft e n r ef e rr e d t o as “ A m eri c a’s R u hr. ”

I n its 4 0 y e ars of e xist e n c e, t h e T e n n e ss e e V all e y A u t h orit y h as us e d a f a rsi g h t e d ri v e r i m pr o v e m e nt pr o gr a m t o s p e ar h e a d t h e c o n v er si o n of a st a g n a nt 

s e cti o n b uilt ar o u n d a s m all f ar m e c o n o m y i nt o a vi b r a n t r e gi o n i n w hi c h o n e- t hir d 

of t h e w o r k f or c e is i n v ol v e d i n m a n uf a ct uri n g.

D e v el o p m e n t of t h e C ol u m bi a- S n a k e Ri v er s yst e m f or p o w e r a n d tr a n sp ort a ti o n, cr e dit e d b y Pr esi d e nt R o o s e v elt wit h wi n ni n g W orl d W ar II b e c a us e 

it s u p pli e d a m pl e el e ctri c p o w er t o s u p p ort c o nstr u cti o n of Li b ert y S hi ps at t h e 

r at e of o n e a d a y, h as sti m ul a t e d a pr o d u c ti v e p e a c e- ti m e i n d u stri al e c o n o m y f or 

t h e P a cifi c N or t h w e st r e gi o n. T h a n ks t o t h e wis e us e of t h e ri v er s, el e c tri c r at es 

i n t h e P a cifi c N ort h w est r e m ai n as t h e l o w est i n t h e U nit e d St at es.

T h e esti m at e d v al u e of d a m a g es pr e v e nt e d i n t h e L o w er Missis si p pi Ri v e r 

V all e y b y F e d er al fl o o d c o ntr ol str u ct ur e s d uri n g t h e 1 9 7 3 fl o o ds w as a p p r o xim a t el y $1 5 billi o n. Wit h o u t e xt e nsi v e l e v e es a n d u pstr e a m r es er v oirs, hi g hl y 

pr o d u c ti v e f ar ml a n ds a n d i n d ust ri al f a cili ti es w o ul d h a v e b e e n i n u n d at e d.

T h u s, it w o ul d cl e a rl y s e e m t h at t h e n ati o n al i nt e r est w o ul d b e b est s er v e d 

b y t h e c o nti n u e d i m pr o v e m e nt a n d e x p a n si o n of F e d er al w at e r r es o ur c es pr o gr a m s, 

i n cl u di n g n a vi g ati o n. Y e t, t h e pri orit y a c c or d e d t h es e pr o gr a ms a p p e ars t o b e 

st e a dil y sli p pi n g. F or e x a m pl e, w e b eli e v e i nl a n d n a vi g ati o n’s v a st p ot e nti al is 

b ei n g i g n or e d, i n l ar g e m e as ur e, p ar ti c ul arl y i n vi e w of its si g nifi c a n c e t o e n er g y 

c o ns er v a ti o n a n d e c o n o mi c st a bilit y.

It is e v e n m or e dist u r bi n g t o l e ar n of pr o p os als t o h a n di c a p t his effi ci e n t a n d 

s o u n d tr a ns p ort ati o n m o d e, e x a c er b ati n g m a n y c urr e nt n ati o n al pr o bl e ms. As 

y o u ar e pr o b a bl y a w ar e, Pr esi d e nt F or d i n mi d - N o v e m b er as k e d C o n gr ess t o 

l e v y “ s e g m e nt t oll s” o n s h all o w - dr a ft w at er tr a n s p o rt ati o n. E a c h t o n of w a t er ­

b or n e c o m m er c e w o ul d b e t a x e d e a c h mil e of t h e w a y o n e a c h of 2 0 w a t er w a y 

s e g m e nts s p e cifi e d i n t h e dr a ft l e gisl ati o n. I n t his m a n n er, t h e Pr esi d e nt’s bill 

w o ul d s e e k t o r e c o v er t ot al n a vi g ati o n- r el a t e d o p er ati o n a n d m ai n t e n a n c e c osts 

fr o m w at er w a y us ers.

Att a c h e d is a t a b ul ati o n s h o wi n g t h e pr o p os al’ s i m p a ct o n b ar g e s hi p m e nts 

o n t h e v ari o us ri v er s e g m e nts. As y o u will n ot e, i m pl e m e nt ati o n of t h e Pr esi d e n t’s 

r e c o m m e n d ati o ns w o ul d al m o st d efi nit el y r es ult i n t h e e a rl y cl os ur e t o c o m m e r ci al
2 0 2

n a v i g ati o n o n a n u m b e r of i m p ort a nt tri b ut a r y w at er w a ys, pr o b a bl y i n cl u di n g 

t h e All e g h e n y, Miss o uri, O u a c hi t a- Bl a c k Ri v er s a n d t h e Will a m ett e Ri v er. O n 

m a n y of t h e l ar g e r ri v ers — s u c h as t h e C ol u m bi a — t h e pr o p os e d t o n- mil e t a x 

w o ul d b e s o st e e p as t o f or c e t h e di v ersi o n of s o m e tr affi c t o ot h er m o d es or els e, 

as w o ul d b e t h e c as e i n m a n y i nst a n c es, t o i n cr e as e t h e c ost of t r a ns p ort ati o n as t o 

aff e ct t h e c o m p e titi v e n ess of w at e r b or n e c o m m o diti es i n t h e m ar k et pl a c e a n d 

t h us eli mi n at e e ntir e m o v e m e nts.

I n r e al t er ms, t h e pr o p os e d t o n- mil e t a x o n a n a v er a g e c o al h a ul o n t h e M o n o n ­

g a h el a Ri v er ( 43 mil es, a c c or di n g t o O hi o V all e y I m p r o v e m e n t Ass o ci ati o n 

esti m at es) w o ul d b e $ 9 8. 0 4 p er 1, 5 0 0-t o n b ar g el o a d. T h u s, t h e t oll o n a t y pi c al 

5, 4 0 0-t o n c o al t o w m o vi n g d o w n ri v er o n t h e M o n o n g a h el a w o ul d a m o u nt t o 

$ 3 5 2. 71. O v er l o n g er dist a n c es, t h e i n cr e as e d c ost of c o al m o v e m e nts w o ul d b e 

still gr e at e r. O. V.I. A. esti m at es t h at t h e c ost of a m aj o r c o al m o v e m e nt s u c h as 

t h at fr o m H u nti n gt o n, W es t Vir gi ni a, u pri v e r t o Cl ai rt o n, P e n n s yl v a ni a, w o ul d 

b e i n cr e as e d b y $ 3, 6 0 0 — a 1 2. 5 p er c e nt b o ost o v er c urr e n t c osts — if t h e Pr esi d e nt’s 

pr o p os al w er e e n a ct e d.

T h e r e ar e, of c o urs e, n u m er o us m aj or w at er b or n e m o v e m e nts i n v ol vi n g c o al, 

f u el oil, g as oli n e, st e el, gr ai n a n d s o y b e a ns, f ertiliz ers, c h e mi c als, b uil di n g m at e ri als, 

a n d ot h e r b asi c f u els, r a w m at eri als a n d b ul k c o m m o diti es dir e ctl y aff e c ti n g t h e 

e c o n o mi c b as e of wi d e r e gi o ns. I m p o siti o n of s e g m e nt t olls or ot h er w a t er w a y 

us er c h ar g es w o ul d o b vi o usl y r es ult i n hi g h er tr a n s p or t ati o n c osts t o m a n uf a ct ur ­

i n g pl a nts, el e ctri c utiliti e s, a n d t h e a gri c ult ur al s e ct o r. T h es e hi g h er s hi p pi n g 

r at es w o ul d, i n t ur n, cr e at e a w h ol e n e w w a v e of i nfl ati o n e m a n ati n g at t h e b asi c 

i n d us tri es w hi c h r el y o n l o w- c ost w at er tr a n s p ort ati o n a n d c o mi n g t o r est i n t h e 

l a p of t h e A m eri c a n c o ns u m er. Als o, w at er w a ys’ r estr ai ni n g i m p a ct o n t h e fr ei g ht 

r at es of c o m p eti n g m o d es w o ul d b e s e v e r el y i m p e d e d, l e a di n g t o hi g h er tr a n s p or t ati o n c osts f or m a n y n o n- w at er b or n e c o m m o diti es a n d f u rt h e r a d di n g t o i nfl ati o n ar y 

pr ess ur es.

Pr esi d e nt F or d’s s e g m e n t t oll r e c o m m e n d ati o n is n ot, of c o urs e, t h e o nl y w at er ­

w a y us er c h ar g e s yst e m a d v a n c e d i n r e c e nt y e ars. T h er e h a v e b e e n pr o p os als 

i n v ol vi n g f u el t a x es at v ari o us l e v els a n d l o c k a g e f e es. U nf ort u n a t el y, all of t h es e 

s c h e m es w o ul d h a v e t h e s a m e p ot e n ti al eff e ct i n v ar yi n g d e gr e es: i n cr e as e d tr a nsp ort ati o n c osts, m o d al s hifts wit hi n t h e tr a n s p or t ati o n s e ct or, hi g h er c o ns u m er 

pri c es, a n d a l ess e n er g y- effi ci e nt fr ei g ht tr a n s p o rt ati o n s yst e m. I n e x pli c a bl y, all 

of t h es e A d mi nistr ati o n r e c o m m e n d a ti o ns h a v e b e e n s e nt t o C o n gr ess wit h o ut t h e 

b e n efit of a n y s yst e m a ti c st u di es of t h eir pr os p e cti v e i m p a ct o n t h e n ati o n al 

e c o n o m y, o n t h e e c o n o mi c h e al t h of p arti c ul a r r e gi o ns of t h e c o u ntr y, o n i nt er ­

r e gi o n al a n d i ntr a -i n d ustr y c o m p etiti v e r el ati o ns hi ps, o n e m pl o y m e nt a n d li v eli ­

h o o ds, o n e n er g y pr o d u c ti o n, c o ns u m pti o n a n d distri b uti o n, or o n p arti c ul ar 

s e ct or s of a gri c ult ur e a n d i n d u str y.

F or e x a m pl e, l ar g e v ol u m es of f ar m cr o ps m o v e fr o m t h e T wi n Citi es ar e a 

d o w n t h e Mississi p pi Ri v er t o N e w Orl e a ns a n d vi ci ni t y f or e x p o rt. B ef or e us er 

c h ar g e s ar e i m p os e d, it s h o ul d b e d et er mi n e d w h a t i m p a ct s u c h c h ar g es w o ul d 

h a v e o n f ar m m ar k eti n gs i n t h e T wi n Citi es ar e a, t h e eff e ct o n f ar m i n c o m e, o n 

gr ai n e x p o rts a n d l a n d v al u e s. A n ot h er m aj or w at er b or n e m o v e m e n t c o nsists of 

O hi o V all e y c o al m o vi n g t o G ulf C o ast utiliti es, w h er e it is c o m p etiti v e wit h f u el 

oil a n d n at u r al g as. A n i m p a ct st u d y w o ul d r e v e al p ot e nti al s hift s i n f u el us a g e, 

c ost t o c o ns u m ers, eff e cts o n t h e c o al i n d ust r y, o n e m pl o y m e nt a n d r e gi o n al 

w ell- b ei n g.

D u ri n g t h e W at er R es o ur c es S u b c o m mitt e e’s o v e rsi g ht h e ari n g s l ast s u m m er, 

t h er e w as s o m e dis c ussi o n str o n gl y s u g g e sti n g t h e s u b c o m mitt e e’ s i nt er est i n t h e 

w a t er w a y us er c h ar g e iss u e. It is e ntir el y p ossi bl e, t h er ef or e, t h at t his m at t er m a y 

c o m e u n d e r st u d y w h e n t h e o v e rsi g ht h e ari n gs r es u m e s h o rtl y. If t h e s u b c o mmitt e e d o es g et i nt o t h e us er c h ar g e q u esti o n — a n d c er t ai nl y it is n ot o ur s u g g e sti o n t h a t t h e s u b c o m mitt e e r efr ai n fr o m d oi n g s o — w e o nl y h o p e t h a t it will 

c o n d u ct its r e vi e w i n a f ull, i m p arti al a n d e x h a usti v e m a n n er. If s u c h a n i n v es tig ati o n is t o b e v ali d a n d m e a ni n gf ul, it s h o ul d c ar e f ull y w ei g h t h e p ot e n ti al 

i m p a cts a n d i m pli c ati o ns of a n y c h a n g e i n est a blis h e d t oll-fr e e w at er w a ys p oli c y, 

p ar ti c ul arl y i n r el ati o n t o c urr e nt n ati o n al e n er g y a n d e c o n o mi c g o als.

C o nsi d eri n g t h e p ot e nti al f or h ar m, w e ur g e t h e s u b c o m mitt e e — if it d e ci d es t o 

e m b a r k o n a n i n q uir y i nt o n a vi g ati o n c ost-s h a ri n g p oli c y — t o t h or o u g hl y a n al yz e 

all t h e c o m pl e x eff e cts of w a t er w a y us er c h ar g es. S u c h a r e vi e w m us t b e c o n d u c t e d 

n ot i n t h e c o nt e xt of t h e o r eti c al e c o n o mi c s b ut r at h er i n t h e ki n d of d e pt h a n d 

wit h t h e d e gr e e of c ar e t h a t t his iss u e d e m a n ds. T oll-fr e e w at er w a ys p oli c y h as, 

w e b eli e v e, s er v e d o ur N ati o n w ell. N a vi g a bl e w at er w a ys h a v e sti m ul at e d t h e 

gr o w t h a n d d e v el o p m e n t of v a st r e gi o ns of t h e i nt eri or U nit e d St at es, a n d billi o ns 

u p o n billi o ns of d oll ar s’ w ort h of pri v at e c a pit al i n v e st m e nt h a v e b e e n pr e di c at e d
2 0 3

u p o n t he c o nti n ue d a vaila bilit y of t h ese na vi g ati o n c ha n nels free of t olls or user 

c har ges.

We are c o nfi de nt t h at t he C o m mittee o n P u blic W or ks, as has al wa ys bee n t he 

case u n de r y o ur lea ders hi p, will gi ve t he m ost caref ul st u d y t o a n y a n d all pr op osals re pres e nti n g a de p art ure fr o m esta blis he d nati o nal water w a ys p olicies 

w h ose s uccess is s o well d oc u me nte d b y A merica n hist or y. W he n s o m uc h of t he 

ec o n o m y is i n dee p tr o u ble, it w o ul d be tra gic i n dee d t o je o par dize o ne sect or 

w hic h re mai ns vi br a nt.

Si ncerel y y o urs,

e r b e r t R. a a r Jr., C h air m an.

o u s t o n Ad a m s , Presi de nt.

o v e m b e r 2 6, 1 9 74.

f f i c e o f t h e W h i t e H o u s e P r e s s Se c r e t a r y

A BI L L T o pr o vi de f or t he i m p ositi o n of water w a y user ta xes a n d f or ot her p ur p oses

Be it e n acte d by t he Se n ate a n d t he H o use of Re prese nt atives of t he U nite d St ates

of A meric a i n C o ngress asse m ble d.

TI T L E I---- W A T E R W A Y U S E R T A X A C T O F 1 97 4

Secti o n 1 0 1. S h ort title, el;.

( a) S h ort Title. — T hi. ;itle ma y be cite d as t he “ W ater wa y User Ta x Act of 

1 9 74”.

( b) A me n d m e nt of 1 95 4 C o de. — E xc e pt as ot h er wise e x pressl y pr o vi de d, w he ne ver i n t his title a n a me n d m e nt or re peal is e x presse d i n ter ms of a n a me n d m e nt 

t o, or re peal of, a s ecti o n or ot he r pr o visi o n, t he refere nce s hall be c o nsi der e d t o be 

ma de t o a secti o n or ot her pr o visi o n of t he I nt er n al Re ve n ue C o de of 1 9 54.

Sec. 1 02. W ater way user t ax.

(a) I m p ositi o n of Ta x. — C h a pte r 3 6 (relati n g t o certai n ot he r e xcise ta xes) is 

a me n de d b y a d di n g at t he be gi n ni n g t here of t he f oll o wi n g ne w s u b c ha pter:

“ S u bc ha pter A — Water wa y User Ta x 

“ Sec. 4 4 5 1. I m p ositi o n of ta x 

“ Sec. 4 4 5 2. Defi niti o ns 

“ Sec. 4 4 5 3. E xe m pti o ns 

“ Sec. 4 4 54. Cr oss refere nce 

“ Sec. 4 4 5 1. I m p ositi o n of t ax.

“ (a) I n Ge neral. — T here is here b y i m p ose d u p o n a n y pers o n w h o tra ns p ort s 

pr o p ert y b y vessel o ver se g me nts of t he i nla n d water w a ys of t he U nite d States 

s pecifie d i n or desi g nate d p urs ua nt t o s u bsecti o n (c) a ta x d eter mi ne d u n d er s u bsecti o n ( b).

“ ( b) A m o u nt of Ta x. —

“ ( 1) C o m p utati o n of Ta x. — T he ta x i m p ose d b y s u bsecti o n (a) s hall be a n 

a m o u nt deter mi ne d b y m ulti pl yi n g —

“ ( A) t he n u m ber of vessel t o n- miles perf or me d b y a tra n s p o rter of pr o p ert y 

wit hi n eac h water wa y se g me nt, b y

“ ( B) t he t o n- mile u nit r ate f or t h e water wa y se g me nt s pecifie d i n or d esi g nate d 

p ur s ua nt t o s u bsecti o n (c).

“ ( 2) T o n- Mile U nit Rat e. — E x ce pt as pr o vi de d i n p ara g ra p h ( 4), t he t o n- mile 

u nit rat e f or a cale n d ar year ( or, i n t he case of 1 97 5, p orti o n of a cale n dar year) 

f or eac h water w a y se g me nt s hall be deter mi ne d b y di vi di n g —

“ ( A) t he p r oject e d t otal na vi gati o n-rel ate d c osts of o perati o n a n d mai nte na n ce 

wit h res pect t o s uc h water w a y se g me nt t o be i nc urre d d uri n g s u c h cale n dar year 

( or p orti o n t here of) b y

“ ( B) t he t ot al vessel t o n- miles pr oje cte d t o be perf or me d wit hi n s uc h wate rwa y s e g me nt d uri n g s uc h cale n d ar year ( or p orti o n t here of).

T he t o n- mile u nit rat e f or eac h cale n dar year ( or p orti o n t here of) s hall be deter ­

mi ne d b y t he Secreta r y of t he Ar m y (after c o ns ultati o n wit h t he Secretar y of 

Tra ns p o rtati o n) a n d s hall be certifie d t o t he Secret ar y of t he Trea s ur y. T he 

Secret ar y of t he Treas ur y s hall p u blis h i n t he Fe deral Re gister t he rat e certifie d 

f or cale n dar year 1 97 5 as s o o n a s p ossi ble aft er t he dat e of e n act me nt of t his secti o n. T here after, t h e Secr etar y of t he Trea s ur y s hall p u blis h i n t he Fe deral Re gist er 

t he rate certifie d f or a c ale n dar year n ot l ate r t ha n Dece m ber 1 of t he prece di n g 

cale n d ar year.

“ ( 3) S pecial R ules. —

5 4 - 2 3 9 0 - 7 5 - 14
( A) F or p ur p oses of p ara g ra p h ( 2)( A) of t his s u bsecti o n, t he pr ojecte d t otal 

na vi g ati o n -relat e d c osts of o perati o n a n d mai nte na n ce wit h res pect t o eac h 

water w a y se g m e nt f or a c ale n da r yea r s hall be base d u p o n a n a ver a ge of s uc h c osts 

i nc urre d i n t h e peri o d of fi ve fiscal y ears ( or s uc h s h orter peri o d as a p orti o n of a 

water w a y se g me nt has bee n o pe ne d t o a n d o perate d f or c o m mercial traffic as a 

c o m mercial water wa y) e n di n g o n J u ne 3 0 of t he year i m me diatel y prece di n g 

s uc h cale n d ar year.

“ ( B) I n a n y case w here a p orti o n of a water w a y se g me nt has bee n o pe ne d t o 

a n d o perate d f or c o m mercial traffic as a c o m mercial water w a y f or less t ha n fi ve 

fiscal years e n di n g o n J u n e 3 0 of t he year i m me diatel y prece di n g t he cale n d ar 

year, t he pr ojecte d t otal na vi gati o n-relate d c osts of o perati o n a n d mai nte na nce 

f or s uc h p orti o n of a water w a y se g me nt s hall be re d uce d, i n deter mi ni n g t he t o nmile u nit rate f or t he se g me nt u n de r para gra p h ( 2) of t his s u bsecti o n, b y t he 

f oll o wi n g perce nt of s uc h t otal:

Fis c al ye ar s of o p er ati o n as a c o m m erci al w ater w ay

5 or m or e................................ N o ne

4............... 2 0

3.......................................................... 4 0

2................................................................... .................... ................................ 6 0

1...................................................................................................................... 8 0

Less t h a n 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 0 0

“ ( 4) C o nti n uati o n of Rat e. — T he t o n- mile u nit r ate deter mi n e d f or a water w a y 

se g me nt wit h res pect t o a c ale n dar y ear s hall re mai n i n f orce a n d effect u ntil s uc h 

ti me as a ne w rat e is c o m p ute d i n acc or da nce wit h t he pr o visi o ns of para g ra p h ( 2) 

a n d p u blis he d b y t he Secreta r y of t h e Treas ur y i n t he Fe deral Re gister.

“ (c) Desi g nati o n of I nla n d Water w a y Se g me nts. — F or p ur p oses of t he ta x 

i m p ose d b y t his secti o n t he i nla n d water wa y s descri be d i n t his s u bsecti o n are 

here b y desi g n ate d water w a y se g me nt s:

Fr o m

n l a n d Wa t e r w a y i n d Se g m e n t

T o

Alle g he n y Ri ver, East Bra d y, Pa _ _ _ _ _ _ _ _ _ _

A pala c hic ola- C hatta h o oc he Ri vers, C ol u m b us, 

Ga.

Ar ka nsa s Ri ver, Cat o osa, O kla.......... ...............

Atla ntic i ntra c oast al water wa y, N orf ol k, Va. _ 

C ol u m bia Ri ver, p oi nt 1 0 miles u pstre a m of 

Pasc o, Was h.

C u m berla n d Ri ver, a p oi nt 8 miles u pstrea m 

fr o m Cart ha ge, Te n n.

Gree n a n d Barre n Ri vers, B o wli n g Gree n, K y _

G ulf i ntra c ostal, Br o w ns ville, Te x _ _ _ _ _ _ _ _ _ _

Illi n ois Calsa g Water w a y, I n dia na Har b or _ _

Ka na w ha Ri ver, Dee p water, W. Va _ _ _ _ _ _ _ _

Ke nt uc k y Ri ver, c o nfl ue nce of n ort h a n d 

mi d dle f or ks.

L o wer Mississi p pi Ri ver, c o nfl ue nce of O hi o 

a n d Mississi p pi Ri vers.

Miss o uri Ri ver, Si o u x Cit y, I o w a.....................

M o bile- T o m bi g bee- W arri or- Blac k W arri or

Ri vers, hea d of na vi gati o n o n M ul berr y a n d 

a n d L oc ust F or ks.

M o n o n ga hela Ri ver, Fair m o nt, W. Va............

O hi o Ri ver, c o nfl ue nce of t he Alle g he n y a n d 

M o n o n ga hela Ri vers.

O uac hita- Bla c k Ri vers, Ca m de n, Ar k _ _ _ _ _ _ _

Te n nessee Ri ver, c o nfl ue nce of H olst o n a n d 

Fre nc h Br oa d Ri vers.

U p p er Mississi p pi Ri ver, Mi n nea p olis, Mi n n. 

Willa m ette Ri ver, E u ge ne, Ore g _ _ _ _ _ _ _ _ _ _ _ _

C o nfl ue nce wit h t he M o n o n gahela Ri ver.

I ntersecti o n wit h g ulf i nt rac oastal water w a y.

C o nfl ue nce wit h t he Mississi p pi 

Ri ver.

Mia mi, Fla.

T he Dalles.

C o nfl ue nce wit h t he O hi o Ri ver.

C o nfl ue nce wit h t he O hi o Ri ver. 

Carra belle, Fla.

C o nfl ue nce wit h t he Mississi p pi 

Ri ver.

C o nfl ue nce wit h t h e O hi o Ri ver. 

C o nfl ue nce wit h t h e O hi o Ri ver. 

Bat o n- R o u g e, La.

C o nfl ue nce wit h t he Mississi p pi 

Ri ver.

Hea d of M o bile Ba y at C hic kasa w Cree k.

C o nfl ue nce wit h t he Alle g he n y 

Ri ver.

C o nfl ue nce wit h t he Mississi p pi 

Ri ver.

C o nfl ue nce wit h t he Mississi p pi 

Ri ver.

C o nfl ue nce wit h t h e O hi o Ri ver.

C o nfl ue nce wit h t h e O hi o Ri ver. 

C o nfl ue nce wit h t he C ol u m bia 

Ri ver.
2 0 5

At a n y ti me afte r 2 4 m o nt hs after t he date of e nact me nt of t his secti o n t he 

Presi d e nt of t he U nite d States ma y, b y re g ulati o n a d d t o, delete fr o m, alter, or 

m o dif y t he i nla n d water w a y se g me nts desi g n ate d i n t his s u bsecti o n.

“ ( d) Lia bilit y f or Ta x. — T he tra n s p o rter of pr o p ert y b y vessel o v er desi g n ate d 

i nla n d water wa y se g me nts s hall be lia ble f or t he ta x i m p ose d b y s u bsecti o n (a). 

“ Sec. 4 4 5 2. Defi niti o ns.

“(a) Vessel. — F or p ur p oses of t his s u bc ha pter, t he ter m “ vessel’’ i ncl u des e ver y 

descri pti o n of wat ercr aft or ot her artificial c o ntri va nc e use d, or ca pa bl e of bei n g 

use d, f or tr a ns p orti n g pr o p ert y b y water. T w o or m ore w ater craft or ot her artificial 

c o ntri v a nces na vi gate d as a u nit s hall be c o nsi dere d t o be a si n gle vessel.

“ ( b) T o n- mile. — F or p ur p oses of t his s u bc ha pter t he ter m “t o n - mile” mea ns 

t he m o ve me nt o ne mile of o ne s h ort t o n of pr o pe rt y.

“ Sec. 4 4^ 3. Exe m pti o ns.

“ N o ta x s hall be i m p ose d u n der se cti o n 4 4 51 i n r es pect of:

“ (a) A n y vessel o perate d b y t he U nite d Stat es C oast G uar d; or

“( b) A n y vessel o per ate d b y t he Secretar y of t he Ar m y w hile e n ga ge d i n t he 

c o nstr u cti o n, o perati o n, mai nte na nce, or pr ote cti o n of t he water w a ys of t he 

U nite d State s.

“ Sec. 4 4 5 4- Cr oss refere nce.

“ F or pe nalties a n d ot her ge neral a n d a d mi nistrati ve pr o visi o ns a p plica ble t o 

t his s u bc ha pt er, see s u btitle F.”

( b) Clerical A me n d me nts, etc. — T he ta ble of s u bc ha pte rs f or c ha pte r 3 6 of 

s u btitle D is a me n de d b y a d di n g at t he be gi n ni n g t here of t he f oll o wi n g ne w 

s u bc ha pt er: “ S u bc h a pter A. Water w a y User Ta x”.

Sec. 1 0 3 Effective d ate.

T he a me n d me nts ma de b y t his titl e s hall ta k e effect o n A pril 1, 1 9 75.

T I T L E II---- C H A R G E F O R U S E O F L O C K S W I T H I N T H E I N L A N D W A T E R W A Y S

Sec. 2 0 1. I m p ositi o n of c h ar ge.

T he Secr etar y s hall c har ge a n d c ollect a l oc ka ge fee of $ 1 0. 0 0 f or eac h l oc ka ge 

occ urri n g at a n y l ocati o n wit hi n a n y water wa y se g me nt s pecifie d i n or d esi g nat e d 

p ur s ua nt t o secti o n 4 4 5 1(c) of t he I nt er n al Re ve n ue C o de of 1 9 54 ( 2 6 U. S. C. 

4 4 5 1).

Sec. 2 0 2. Re g ul ati ons.

T he Secretar y is e m p o were d t o ma ke a n d a me n d s uc h re g ulati o ns as he c o nsi ders necessar y t o carr y o ut t he pr o visi o ns of, a n d t o perf or m his p o wers a n d 

d uties u n der, t hi s titl e.

Sec. 2 0 3. Ex pl a n ati o n of ter ms.

As use d i n t his title —

( 1) “ S ecretar y ” mea ns t he Secr etar y of t he Ar m y. H o we ver, w here ver i n t his 

title a f u ncti o n, p o wer, or d ut y of t he Secretar y a p plies t o a n y l oc k al o n g t he 

Te n nessee Ri ver, s uc h f u ncti o n, p o wer, or d ut y s hall be dee m e d t o be t h at of t he 

Te n nessee Valle y A ut h orit y.

( 2) “ L oc ka ge” mea ns t he passi n g of a vessel t hr o u g h a l oc k.

( 3) T he ter m “ vess el” i ncl u des e ver y descri pti o n of wat ercr aft or ot her artificial 

c o ntri va nce use d, or ca p a ble of bei n g use d, as a mea ns of tra ns p ort ati o n b y water. 

F or p ur p oses of t his title, t he ter m d oes n ot i ncl u de a n y vessel o perate d (a) b y t he 

U nite d States C oast G uar d; ( b) b y t he Secr etar y w hile e n ga ge d i n t he c o nstr ucti o n, o perati o n, mai nte na n ce, or pr otecti o n of t he water w a ys of t he U nite d Stat es; 

or (c) i n t he tra n s p o rtati o n of pr o p ert y b y water, w het h er or n ot la de n.

Sec. 2 04- A ut h oriz ati o n of a p pr o pri ati o ns.

T here are a ut h o rize d t o be a p p r o priat e d s uc h s u ms as m a y b e necessar y t o c arr y 

o ut t he pr o visi o ns of t his title.

Sec. 2 0 5. Re pe als.

All ot h er Acts or parts of Acts i nc o nsiste nt wit h secti o n 2 01 of t his titl e are 

re peale d.

Sec. 2 0 6. Effective d ates.

Secti o n 2 0 1 of t his title s h all ta k e effect o n A pril 1, 1 9 75. Secti o ns 2 0 2 t hr o u g h 

2 0 5 of t his titl e s hall ta ke effect u p o n t he d ate of e nact me nt of t his title.
2 0 6

I M PA C T O F T O N- MI L E T A X E S O N S H A L L O W- D R A F T W A T E R B O R N E C O M M E R C E R E C O M M E N D E D I N P R E SI D E N T

F O R D’ S P R O P O S E D “ W A T E R W A Y U S E R T A X A C T " S U B MI T T E D T O C O N G R E S S A S D R A F T L E GI S L A TI O N O N N O V. 1 9.

1 9 7 4

S h all o w - dr aft w at er w a y s e g m e nt

s p e cifi e d i n dr a ft l e gi sl ati o n

A v er a g e

a n n u al 0. & M.

e x p e n dit u r e s

fi s c al y e a r A ct u al t o n- mil e s

1 9 7 0- 7 4 c al e n d a r y e ar

(t h o u s a n d s) 1 9 7 3 (t h o u s a n d s)

0. & M. c o st C o st p er mil e

p er t o n - mil e t o m o v e l o a d e d

( milli o n s) 1, 5 0 0-t o n b ar g e

All e g h e n y Ri v er.............................................................

A p al a c hi c ol a- C h att a h o o c h e e.....................................

Ar k a n s a s- V e r di gri s W a t er w a y..................................

Atl a nti c I ntr a c o a st al W at er w a y ( N or f ol k - M i a mi).

C ol u m bi a Ri v er ( P a s c o vi ci nit y — T h e D all e s )....

C u m b erl a n d Ri v er........................................................

Gr e e n a n d B arr e n Ri v er s............................................

G ulf I ntr a c o a st al W a t er w a y.......................................

Illi n oi s C al s a g W at er w a y (I n di a n a H ar b o rMi s si s si p pi Ri v e r)....................................................

K a n a w h a Ri v er..............................................................

K e nt u c k y Ri v er.............................................................

L o w er Mi s si s si p pi Ri v e r ( C a ri o- B at o n R o u g e)....

Mi s s o uri Ri v er...............................................................

M o bil e - T o m bi g b e e- W a rri o r.......................................

M o n o n g a h el a Ri v er......................................................

O hi o Ri v er.......................................................................

O u a c hit a- Bl a c k Ri v er s................................................

T e n n e s s e e Ri v er...........................................................

U p p er Mi s si s si p pi Ri v er ( M i n n e a p oli s- C ai r o )....

Will a m ett e Ri v er...........................................................

$ 9 9 0 8 3, 0 0 0 1 1. 9 1 5 $ 1 7. 8 7

2, 0 2 8 1 2 4, 1 8 9 1 6. 3 3 2 4. 5 0

1 2, 6 5 7 3 3 8, 6 2 4 3 7. 3 8 5 6. 0 7

3, 2 6 5 5 9 1, 4 7 6 5. 5 2 8. 2 8

1 7, 2 2 5 3, 1 8 8, 3 6 4 5. 4 0 8. 1 0

9 1 5 1, 0 5 4, 0 0 0 . 8 6 8 6 1. 3 0

8 5 2 1, 3 9 5, 0 0 0 . 6 1 0 9 . 9 2

5, 2 9 2 7, 9 1 5, 5 6 4 . 6 6 8 6 1. 0 0

4, 7 2 3 7, 8 6 2, 5 4 7 . 6 0 0 7 . 9 0

1, 2 9 4 7 9 6, 0 0 0 1. 6 2 5 2. 4 4

1, 0 8 4 5 2, 3 0 0 2 0. 7 3 3 1. 1 0

7, 9 5 3 5 9, 2 5 6, 2 8 6 . 1 3 4 2 . 2 0

1 2, 3 6 3 8 8 4, 3 6 6 1 3. 9 8 2 0. 9 7

2, 1 0 2 3, 7 2 8, 7 5 0 . 5 6 3 6 . 8 5

2, 2 7 1 1, 4 9 5, 0 0 0 1. 5 1 9 2. 2 8

1 2, 9 8 4 2 9 , 9 4 2, 0 0 0 . 4 3 3 6 . 6 5

1, 6 4 9 1 0 8, 5 5 1 1 5. 2 0 2 2 . 8 0

2, 1 7 1 3, 9 2 8, 0 0 0 . 5 5 2 6 . 8 3

1 0, 0 2 7 2 1, 3 1 4 , 0 2 3 . 4 7 0 4 . 7 1

2, 3 6 9 2 0, 2 2 8 1 1 7. 1 1 1 7 5. 6 7

S o u r c e: N ati o n al W at e r w a y s C o nf er e n c e, I n c.; U. S. Offi c e of M a n a g e m e nt a n d B u d g et, Ar m y C or p s of E n gi n e er s, W a s hi n gt o n, D. C.

Se n at o r G r a v e l . Yo u ma y pr ocee d n o w.

S T A T E M E N T O F E D W A R D K Y L E, C O N S U L T A N T F O R T H E P O R T O F 

M O R G A N CI T Y, L A.

Mr. K y l e T h a n k y o u, Se n at or, f or t he o p p ort u nit y t o a p p ear. 

I’ m E d K yle, c o n s ulta nt f or t he P o rt of M or g a n Cit y Ha r b or a n d 

Ter mi nal Di strict at M or ga n Cit y, La.

Pe r h a p s wit h t he pre o cc u pati o n we ha d wit h o ur o w n va st traffic 

we ha ve d o w n t he re o n o ur i nla n d wat er w a ys a n d o ur fl o o d c o n diti o ns, 

we di d n’t bec o m e a ware of t hi s hea ri n g u ntil a fe w da y s a g o. I ha v e a 

fe w r e m ar k s here a n d w o ul d li ke per mi ssi o n wit hi n 2 wee ks t o s u b mit 

testi m o n y f or t he r ec or d.

Se nat or G r a v e l . I ’ m h eari n g n o o bj ecti o n.

Mr. K y l e . I w o ul d li ke t o j u st c o n de nse o ur t h o u g hts. We’re at t he 

j u n cti o n of t he Ea st- W est G ulf I ntra c o astal Water w a y i n t he n o rt h - 

s o ut h r o ute fr o m Ne w Orlea ns t o t he ol d Mississi p pi Ri v er s yste m. 

I n a d diti o n t o t h at, we’re t he ce nter of t he oilfiel ds i n t he S o ut h t o t he 

G ulf of Me xic o.

O ur f ut ure, b ot h fis hi n g, i n d ustr y, a n d oilfiel ds, de pe n ds o n t he 

wate r wa y s. A n y c o n ce pt of a user ta x w o ul d a d versel y affect o ur 

ec o n o m y at t hi s ti me.

Wit h o ut g oi n g i nt o detail, we feel t h at t he be neficiarie s of t he 

c o u ntr y ’s water b or ne c o m merce, o ne of t he m ost pr o d ucti v e fis hi n g 

i n d ustries left i n t he U nite d States, are t he ver y i n di vi d uals t h at 

c o ns u m e a n yt hi n g. A n y i ncre ase o n t he c ost of wat er b o r ne c o m m erce 

w o ul d ulti m atel y i ncre ase t he c ost of li vi n g f or e ver y o ne.

T h a n k y o u, Se n at or.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

[ Writte n state m e nt f oll o ws:]
2 0 7

a r b o r a n d T e r m i n a l D i s t r i c t

M or g a n City, L a., M ay 1 6, 1 9 7 6.

e n a t o r Gr a v e l G e ntl e m e n, it is a n h o n or t o h a v e a n o p p ort u ni t y t o pr es e nt 

o ur t h o u g hts t o t his W at er R es o u r c es S u b c o m mitt e e. T h e M or g a n Cit y H ar b or 

a n d T er mi n al Dis tri c t is a n a g e n c y of t h e St a t e of L o uisi a n a a n d h as r es p o nsi bilit y f or t h e P ort of M or g a n Ci t y. T his P ort, o n e of t h e b usi est c e nt ers i n t his 

n ati o n’s i nl a n d w at er w a y s yst e ms, is l o c at e d o n t h e E as t- W est G ulf I nt r a c o as t al 

W a t er w a y b et w e e n H o ust o n a n d N e w Orl e a ns wit h n ort h er n r o ut e s t o B at o n 

R o u g e, t h e Mississi p pi Ri v e r S yst e m, a n d p oi nts n ort h a n d s o ut h t o t h e oilfi el ds 

i n S o u t h L o uisi a n a a n d i n t h e G ulf of M e xi c o. T h e i nl a n d w a t er w a ys ar e lif e 

bl o o d of t his c o m m u nit y a n d its p e o pl e as w ell as all of S o u t h L o uisi a n a. O ur 

w ell- b ei n g a n d f ut ur e d e p e n d o n t h e n ati o n’s w a t er w a ys.

T h e c o n c e pt of a us er t a x or a n y ot h er n e w t a x o n w at e r b or n e c o m m e r c e is 

a d v er s e t o o ur e c o n o mi c gr o w t h a n d is at t his ti m e es p e ci all y ill- a d vis e d. As t h e 

f e d er al g o v e r n m e nt m o v es t o pr e v e nt d e e p e ni n g r e c essi o n fr o m sli p pi n g i nt o a f ull 

fl e d g e d d e pr essi o n, it m ust k n o w of t h e sti m ul ati o n t o pr o d u c ti vit y a n d j o b o pp ort u niti e s w hi c h o ur w at e r r es o ur c es c a n a n d d o pr o vi d e. Als o, w h e n t h e c o ns erv ati o n of e n er g y is o n o ur mi n ds, it is e xtr e m el y si g nifi c a nt t h at o ur w a t er w a ys 

s er v e b ot h as a n i n e x p e nsi v e hi g h w a y f or t h e s hi p m e nt of f u els t hr o u g h o ut 

m ost of t h e n ati o n w hil e b ar g e tr affi c its elf is a m o d es t us er of f u els. T h e f u el a n d 

c ost effi ci e n c y of b ar gi n g is w ell k n o w n. T h e pr o p os als t o i n cr e a s e t a x e s o n w at er 

b or n e c o m m e r c e w o ul d h a v e a d v e rs e eff e cts o n o ur i nfl a ti o n - w e ar y e c o n o m y. 

At a ti m e w h e n w e ar e alr e a d y l o a d e d wit h hi g h pri c es, a d di n g n e w t a x e s, w hi c h 

will o b vi o u sl y b e a d d e d t o t h e t a x b ur d e n of e v e r y c o ns u m e r i n t h e n ati o n, w o ul d 

b e c o u nt e r pr o d u cti v e a n d w o ul d a d d t o t h e i nfl ati o n ar y tr e n d.

Tr a ns p ort a ti o n b y w at e r is u ni q u el y s uit e d t o m o v e b ul k c o m m o diti e s s u c h as 

b uil di n g m at eri als, oils a n d f u els, c h e mi c als, a n d a gri c ult u r e pr o d u cts. I n f a ct, 

o ur i n d ust ri es ar e f or c e d t o us e b ar g e tr affi c b e c a u s e of t h e h u g e siz e of t h e oil 

pr o d u cti o n j a c k et s, n o ot h er m e a ns of tr a n s p o rt ati o n is p ossi bl e. T a x es c a n d o 

n ot hi n g b ut a d d t o t h e c osts a n d w h e n c osts m o u nt, s er vi c e d e cr e as es, a n d t h e 

c o ns u mi n g p u bli c p a ys. A n y l ess e ni n g of w at er b or n e fr ei g ht s er vi c e w o ul d r es ul t 

i n a hi g h er n ati o n al fr ei g ht bill w hi c h c o ul d n ot e asil y b e s ust ai n e d u n d er t h e 

pr es e nt e c o n o mi c sit u ati o n. O n e d oll a r will m o v e a t o n of fr ei g ht at l e a st fi v e 

ti m es f urt h er b y w at er t h a n a n y ot h e r m o d e of tr a n s p ort. W a t er tr a n s p or t ati o n 

is als o e n er g y eff e cti v e a n d r e q uir es l ess e n er g y f or e v e r y t o n- mil e t h a n a n y ot h er 

m o d e of tr a n s p ort ati o n.

U nf ort u n a t el y, l a ws ar e s el d o m p erf e ct; r ar el y is o n e c a p a bl e of r e a c hi n g e v e r y 

o c c urr e n c e it s e e ks t o pr e v e n t or e v er y a b us e it is i n t e n d e d t o eli mi n at e. T h e c ost of 

i m pl e m e nti n g a n d s u p e r visi n g t h e c oll e cti o n of a c ost- s h ari n g p oli c y s h o ul d b e 

c ar e f ull y c o nsi d er e d. T h e g o v e r n m e nt al or g a niz ati o n n e c es s ar y t o p erf or m t his 

t as k s h o ul d r e d u c e t h e a nti ci p at e d i n c o m e t o t h e g o v e r n m e nt. T h e “ e n er g yo u t p ut” of a c oll e cti o n s yst e m c o ul d w ell b e gr e at er t h a n t h e i n p u t. I n s h ort, 

w e c a n n ot aff or d t h e hi g h c ost of i m p osi n g a n e w t a x o n w a t er w a y us ers. T h e 

c osts i n e n er g y l ost a n d i n a d d e d i nfl ati o n ar e t o o e x p e n si v e. W e w o ul d l os e m or e 

t h a n w e w o ul d h o p e t o g ai n. T h e b e n efi ci ari es of t his c o u n tr y’s w at er b or n e 

c o m m er c e, o n e of t h e m ost pr o d u c ti v e a n d effi ci e nt i n d us tri es l ef t i n t h e U nit e d 

St at es, ar e e v e r y i n di vi d u al t h at c o ns u m es a n y t hi n g. A n y i n cr e as e i n c osts o n 

w at er b or n e c o m m er c e will ulti m at el y i n cr e a s e t h e c ost of li vi n g f or e v er y o n e. 

R es p e c tf ull y s u b mitt e d,

o r g a n Ci t y Ha r b o r a n d T e r m i n a l Di s t r i c t

Se nat or G r a v e l . Mr. S heffiel d?

S T A T E M E N T O F P A U L R. S H E F FI E L D, P O R T DI R E C T O R, M E M P HI S 

A N D S H E L B Y C O U N T Y P O R T C O M MI S SI O N

Mr. S h e f fi e l d . Yes, sir.

Mr. C hair ma n, I t hi n k we’d be re miss at t his ti me if we di d n ot 

rec o gnize t he fact t hat o ur Mississi p pi Ri ver a n d tri b utaries pr oject 

ha d a birt h da y yester da y, a n d it was 4 7 years ol d. Alt h o u g h we’ve 

o nl y c o m plete d 5 0 perce nt of t he w or k t hat’s t here, t he ot her 5 

perce nt t h at we ha ve, m ost of w hic h is o n t he mai n ste m of t he Mississi p pi Ri ver, is m ost i m p orta nt t o t his valle y here a n d t o its f ut ure.
2 0 8

Als o, o ne of t he m o dificati o ns t o t h at pr oj ect, t he Fl o o d C o ntr ol 

Act of 1 9 4 4, pr o vi de d f or t he 1 2-f o ot c ha n nel, w hic h we still ha v e n ot 

realiz e d. It s bee n me nti o n e d here t hi s m or ni n g, a n d we still nee d t he 

c ha n nel, a n d we still nee d t he c u rre nt st u d y t h at has bee n a ut h o rize d t o det er mi ne t he re q uir e m e nt s f or a m ore m o der n c ha n nel i n t his 

parti c ular area.

M u c h has bee n writte n a n d disc usse d a b o ut t he l oc ks — a n d y o u 

he ar d t he m t his m or ni n g —l oc k a n d da m 2 6 a n d t he Ver milli o n I n ­

d ustrial. We s u p p o rt t hese, a n d we realize i n Me m p his t h at as far as 

o ur f ut ur e is c o nc er ne d t h at we m ust ha ve t h ose if we are t o recei ve 

t he ca r g o a n d be a ble t o s hi p t he ca r g oes t h at we s h o ul d.

We, partic ula rl y, i n Me m p his h a ve be e n blesse d b y o ur C reat or a n d 

t he wis d o m of o ur F o u n di n g Fat h er s i n ta ki n g a d va nta ge of o ur ge ogra p hi cal feat ure s, o ur mil d we at h er a n d o ur nat ur al res o urces, partic ularl y t he Missis si p pi Ri v er. We ha v e w or k e d wit h t he Fe d eral 

G o ver n m e nt t o pr o vi de t he fi nest i nla n d ri ve r p ort i n t hi s Nati o n, 

t he P o rt of Me m p his, t he G ol d e n Gat e wa y t o t he He artla n d of Mi d - 

A me rica. We ha v e see n o ur p ort gr o w fr o m a n a n n ual t o n na g e of 3. 5 

milli o n t o n s i n 1 9 5 2, w he n o ur Pre si d e nt s Isla n d de v el o p m e nt o pe ne d, 

t o 1 0. 4 milli o n t o ns i n 1 9 7 3, o u r lat est y ear of rec or d. A n d I p oi nt o ut 

t h at we’re 7 2 5 miles i nla n d. A t otal of f o ur p u blic ter mi nal s a n d 6 0 

pri vatel y o w ne d ter mi nals ser ve o ur re gi o n. We rec o g nize t he i m p orta n ce of all m o des of tra ns p o rtati o n, a n d t his ha s be e n d o ne i n o ur o w n 

ter mi nal t h at has bee n o w ne d b y t he Me m p his a n d S hel b y C o u nt y 

P o rt C o m missi o n a n d has bee n o pe rate d b y c o ntra ct a n d is a ri verrail-tr uc k ter mi nal. T he se facilities a n d t he c o m pa nies w h o use t he m 

pr o vi de a n esti m ate d 5, 6 0 0 j o bs, wit h a pa yr oll i n e xcess of $ 4 7 milli o n 

a n n uall y. I n d u str y has a n esti m ate d $ 1 0 0 milli o n i n v est me nt i n pla nts 

a n d a n a d diti o nal i n v est me nt of $ 6 milli o n i n real est ate. L ocal i ntere sts, re prese nte d b y l ocal g o v er n m e nts, ha v e a n esti m ate d $ 2 5 

milli o n i n v est me nt i n pr o visi o n of p u blic utiliti es a n d ot he r c o m m o n 

ser vic es. T he Fe d eral G o ver n m e nt has a n esti m ate d $ 2 3 milli o n i nve st m e nt i n pr o visi o n of na vi gati o n c ha n nels a n d fl o o d pr otecti o n 

w or k s. G o o ds a n d ser vi ces, re pr ese nte d b y t he 1 0. 4 milli o n t o n s of 

water b or ne c o m m erce i n 1 9 7 3, pr o vi de a n esti m ate d $ 4 7 5 milli o n t o 

t he re gi o nal ec o n o m y.

I n t h e last 5 ye ars, t he P o rt of Me m p his h as tr ul y bec o m e a n i nt er ­

nati o nal p o rt wit h dir ect access t hr o u g h t he i n n o v ati v e Las h, C o m bi, 

Sea b ee a n d ocea n- g oi n g ba r ge ser vices t o t he p orts of N ort he r n E ur o p e, 

t he U nite d Ki n g d o m, P u ert o Ric o a n d Lati n A me rica. Wit h pr o ­

ject e d gr o wt h of d o m estic bar g e traffic a n d i nt er n ati o n al traffic, 

t he P o rt of Me m p his s h o ul d be ha n dli n g 1 2 milli o n t o ns a n n uall y 

b y 1 9 8 0 a n d 4 5 milli o n t o ns a n n uall y b y t he ye ar 2 0 2 0.

T o da y, we ha v e o ne water fr o nt l ot 4 0 0 feet b y 7 0 0 feet a vaila ble 

t o i n d u str y i n t he Me m p his Ha r b o r. We ha v e ha d a st u d y u n d er w a y 

si nce 1 9 6 4 w he n we ma d e pr oje cti o ns t h at we w o ul d r u n o ut of water ­

fr o nt pr o pert y a vaila ble t o i n d ustr y i n t he mi d- 1 9 7 0 ’s. S h o rtl y, we 

e x p ect t o a p p ear bef ore C o n gress t o re ne w o ur part n ers hi p a n d as k 

t h at y o u a ct i n y o ur tra diti o n al r ole a n d pr o vi de a d diti o nal na vi gati o n 

c ha n nels a n d fl o o d c o ntr ol w or ks s o l ocal i nt ere sts ca n get o n wit h 

t he j o b of pr o vi di n g desira bl e waterfr o nt facilities f or t he pr oject e d 

gr o wt h of water b or n e c o m mer ce i n o ur re gi o n. T h e sa vi n gs alre a d y 

realiz e d i n pre ve nti o n of fl o o d da m a ge a n d tra ns p o rtati o n c osts 

a m pl y testif y t o t he s o u n d n ess of Fe d eral a n d l ocal i n v est me nt. We
2 0 9

ear nes tl y s olicit y o u r fa v ora ble c o n si de rati o n of o ur re q uest t o pr o vi d e 

a d diti o n al water fr o nt pr o pert y t o i n d u str y f or o ur re gi o n.

We, als o, p oi nt o ut t h at i n o ur r ole, w hic h is a p o rt i n w hi c h we 

pr o m ot e n ot o nl y t he water, b ut t he rail a n d t he tr u c k, t h at si nce we 

ha ve o pe ne d i n 1 9 5 2, t h at rail traffic has i ncre ase d si xte e nf ol d fr o m 

o ur i nstallati o n.

We d o o p p os e a ta x per t o n- mile a n d a user ta x, a n d we ur ge c o n ­

ti n ua n ce of t he hist oric al c o o perati ve r oles of t he F e de ral G o ver n m e nt 

a n d t he l ocal i nte rests.

I a p p reci ate t he pri vil e ge t o be wit h t h e s u b c o m mittee t o d a y a n d 

t o ma k e t his state me nt.

Se nat or G r a v e l . T ha n k y o u ver y m uc h.

Mr. S h e f fi e l d . T ha n k y o u all.

[ Mr. S h effiel d’s state m e nt f oll o ws:]
2 1 0

S TA T E M E N T 

O F 

P A U L R. S H E F FI E L D 

P O R T DI R E C T O R

M E M P HI S, T E N N E S S E E 

B E F O R E

T HE U. S. S E N A T E C O M MI T T E E O N P U B LI C W O R KS 

S U B C O M MI T T E E O N W A T E R R E S O U R C ES 

A T

VI C K S B U R G, M I S SI S S I P PI 

O N

F RI D A Y, M A Y 1 6, 1 9 7 5

Mr. C h ai r m a n a n d me m b ers o f t h e U. S. S e n ate S u b c o m m itte e o n W at er 

R e s o u r c e s, m y na m e i s P a ul R. S h e f fi e l d . I a m t h e P o rt D i r e c t o r f o r t h e 

Me m p his a n d S h el b y C o u nt y P o rt C o m mis si o n, M e m p his, T e n n e s s e e.

As a r e p r e s e n t a ti v e o f Me m p his a n d S h el b y C o u nt y , T e n n e s s e e, I 

w el c o m e y o u t o t h e L o we r M i s si s si p p i R i v e r V all e y a n d t r u s t t h a t y o u r 

v i s i t t o t h e h e a rtl a n d o f mi d - A m eri ca w ill p r o v i d e y o u w it h t h e i n f o r m ati o n 

y o u s e e k, t o e n a b l e y o u r c o nti n u e d s u p p o rt o f o u r Fl o o d C o n tr o l a n d 

N a vi g ati o n P r o j e c t s - p r o j e c t s s o v i t a l t o o ur r e g i o n a l a n d n a ti o n a l 

f u t u r e s. As o u r p a s t h a s b ee n ti e d t o t h i s g r e a t r i v e r a n d i t s li n k t o 

s o me 2 5, 0 0 0 m il e s o f n a v i g a b l e i n l a n d a n d i n t e r c o a s t a l w ate r w a y s, s o i s 

o u r f u t u r e . We h a v e b a r e l y be g u n t o s c r a t c h t h e s u r f a c e o f o u r o p p o rt u n iti e s 

a n d p o s s i b i l i t i e s . We h e r e i n t h i s V all e y a r e w ell a w ar e o f y o u r C or p s o f 

E n gi n e e rs o v e r si g h t h e a ri n g s b e f o r e t h i s s u b c o m m itte e i n J u n e o f 1 9 7 4.

We k n o w o f y o u r d e s i r e t o l e a r n e x a c tl y w h at h a s b ee n d o ne a n d w h at i s 

b ei n g d o ne i n t h e d e v el o p m e nt o f w o rt h w hil e a n d r e a l i s t i c w at e r r e s o u r c e 

p r o g ra m s, a n d we w a nt t o a s s i s t y o u i n y o u r u n d e r st a n d i n g o f a c c o m pli s h ­

m e n ts a n d f u t u r e r e q u ir e m e n t s i n t h i s V all e y. I t i s m y u n d e r st a n d i n g 

t h a t t h i s h e a ri n g t o d a y i s p a r t o f a n i n - d e p t h e x a m i n ati o n o f t h e C or ps 

o f E n g i n e e r's i n l a n d n a v i g a ti o n p r o g ra m .

I n t h i s V all e y, t h e M i s si s si p p i R i v e r a n d T ri b u t a ri e s P r o j e c t ( M R § T)
2 1 1

- 2 -

ti e s o u r Fl o o d C o ntr ol a n d N a vi g ati o n P r o j e ct s s o cl o s el y t o g et h e r t h a t, 

at ti m e s, i t i s d i f f i c u lt t o s e p a r at e o ne fr o m t h e o t h e r. U n der t h i s 

P r o j e ct, t h i s V all e y ha s w o r k e d j o i n tl y w it h t h e F e d e ra l G o ver n me nt 

f o r 4 7 y e a r s, as o f y e ste r d a y, t o p r o vi d e f o r c o n tr o l o f fl o o d s a n d 

n a vi g ati o n i m pr o v e m e n ts. We a re pr o u d o f o ur a c c o m pli s h m e n ts, b ut 

h a ste n t o a d d t h a t o u r j o b i s o nl y S0 % c o m ple te. We n e e d t o g et o n 

w it h t h e a ut h o riz e d w or k - m ost o f w hi c h i s i m pr o v e m e nt t o t h e m ai n 

st e m o f t h e M is sis si p p i Ri v er,'

T he Fl o o d C o ntr ol Act o f 1 9 4 4 m o difie d t h e M R5 T p r o j e c t t o p r o vi d e 

f o r a 1 2 f o ot n a vi g ati o n c h a n n el i m pr o v e m e nt a n d ba n k s t a b ili z a ti o n 

pr o g ra m be t w ee n C air o, I lli n o i s a n d B at o n R o u g e, L o uis ia n a. T o d ate 

a d e p e n d a b le 1 2 f o ot c h a n n el ha s n ot be e n p r o vi d e d a n d alr e a d y we ha ve 

ne w a n d i n n o v ati v e e q ui p m e n t t h at c o ul d e f fi c i e n tl y u tili z e t h i s d ee p er 

c h a n n el. We s h o ul d g et o n w it h t h i s w or k. C u rr e ntl y a re q uir e m e nt ha s 

be e n e st a b li s h e d t o f u rt h e r re vie w t h e M R $T p r o j e c t t o d ete r m i n e t h e 

re q uir e m e nt f o r a m ore m o der n c h a n n el be t w ee n C air o, I lli n o i s a n d 

B at o n R o u g e, L o uis ia n a. T his re q uir e m e nt ha s be e n r e c o g niz e d, b ut ha s 

n ot b ee n f u n d e d. I t s h o ul d be f u n d e d n o w s o we ca n d ete r m i n e e q ui p m e n t 

r e q uir e d f o r m ore e f fi c i e n t h a n dli n g o f p r o j e cte d gr o w t h o f w ate r b o r n e

c o m me rce.

M uc h ha s be e n w ritt e n a n d dis c u s s e d a b o ut t h e re pla c e m e nt o f l o c k 

a n d da m 2 6 o n t h e U p per M i s sis si p p i R i v er a t A lt o n, I lli n o i s . I d o 

n ot b eli e v e I ca n a d d m ore t o y o ur u n d e rs ta n di n g o f t h i s s it u a ti o n , 

b ut I d o as k t h a t a ll p o s si b l e e f f o r t be gi v e n t o r e s o l u ti o n o f l e g a l 

p r o ble m s, i f i n f a ct t h e y e x i s t, s o we ca n g et o n w it h t h e re pla c e m e nt
2 1 2

- 3

f t h e ol d , a n ti q u a t e d, u n sa fe st r u c t u r e n o w i n e x is te n c e. We i n t h e 

L o wer V all e y r e a li z e w h at t h e f a il u r e o f t h i s str u c t u r e c o ul d mea n t o 

o u r re gi o n i f A lt o n, Illi n o i s s u d d e nl y bec a m e t h e he a d o f n a vi g ati o n 

c u tt i n g o f f a c c e s s t o t h e u p p er re a c h e s o f t h e M is sis si p pi Ri v er a n d 

t h e I lli n o i s Ri v er.

We i n t h e Me m p his re gi o n ha ve be e n ble s s e d b y o ur C re at o r a n d t h e 

wis d o m o f o ur f o u n di n g f at h e r s i n ta ki n g a d v a n ta g e o f o u r g e o g r a p hic al 

f e at u r e s, mil d w e at h e r a n d n at u r a l r e s o u r c e s - p a rti c u l a rl y t h e 

M is sis si p pi R i v er. We ha ve w o r k e d w it h t h e F e d e ra l G o ver n m e nt t o 

p r o vi d e t h e fi n e s t i n la n d ri v e r p o rt i n t h i s n ati o n - P o rt of Me m p his, 

G ol de n Gat e wa y t o t h e H e a rt la n d o f Mi d - A m eric a. We ha ve se e n o ur p o rt 

gr o w fr o m a n a n n u al t o n n a g e o f 3. S m il li o n t o n s i n 1 9 5 2, w he n o ur 

P r e si d e nts I sl a n d De vel o p m e nt o p e n e d, t o 1 0. 4 m il li o n t o n s i n 1 9 7 3, o ur 

l a t e s t y e a r o f r e c o r d. A t o t a l o f 4 p u b li c te r m i n als a n d 6 0 p ri v a t e l y 

o w ne d te r m i n als s e r v e o u r re gi o n. T he se f a c iliti e s a n d t h e c o m pa ni es 

w h o us e t he m p r o vi d e a n e sti m ate d 5 6 0 0 j o b s, w it h a p a y r o ll i n e x ce ss 

of $ 4 7, 0 0 0, 0 0 0 a n n u all y. I n d u str y h as a n e sti m ate d $ 1 0 0, 0 0 0, 0 0 0 

i n v e st m e nt i n pla nts a n d a n a d d iti o n al i n v e st m e nt o f $ 6, 0 0 0, 0 0 0 i n r e al 

e s t a t e . L oc al i n t e r e s t s, r e p r e s e nte d b y l o c al g o v er n m e n ts, ha ve a n 

e sti m ate d $ 2 5, 0 0 0, 0 0 0 i n v e st m e nt i n p r o v i si o n o f p u bli c u t i l i t i e s a n d 

o t h e r c o m m o n s e r v i c e s. T he F e d e ra l G o ver n me nt ha s a n e sti m ate d $ 2 3, 0 0 0, 0 0 0 

i n v e st m e nt i n p r o v i si o n o f n a vi g ati o n c h a n n els a n d fl o o d p r o t e c ti o n w or ks. 

G o o ds a n d s e r v i c e s, r e p r e s e nte d b y t h e 1 0. 4 m il li o n t o n s o f w ate r b o r n e 

c o m m erce i n 1 9 7 3, p r o vi d e a n e sti m ate d $ 4 7 5, 0 0 0, 0 0 0 t o t h e r e gi o n al 

ec o n o m y. -

I n t h e l a s t fi v e y e a r s, t h e P o rt of Me m p his ha s t r u l y bec o m e a n
2 1 3

- 4 -

i n t e r n a ti o n a l p o rt w it h d i r e c t a c c e s s t h r u t h e i n n o v ati v e L A S H, C O M BI, 

S E A BE E a n d oc ea n g oi n g b ar g e s e r v ic e s t o t h e P o rts o f N o rt h er n E ur o p e, 

t h e U nit e d Ki n g d o m, P u e rt o Ric o a n d L ati n A m eric a. Wit h p r o j e cte d 

gr o w t h o f d o m es ti c b ar g e t r a f f i c a n d i n t e r n a ti o n a l t r a f f i c , t h e P o rt 

of Me m p his s h o ul d be h a n dli n g 1 2, 0 0 0, 0 0 0 t o n s a n n u all y b y 1 9 8 0 a n d 

4 5, 0 0 0, 0 0 0 t o n s a n n u all y b y t h e y e a r 2 0 2 0.

T o da y, we ha ve o n e w at e r f r o n t l o t 4 0 0 f e e t b y 7 0 0 f e et a v ail a b l e 

t o i n d u str y i n t h e Me m p his H ar b or. We ha ve ha d a st u d y u n de r w a y si n c e 

1 9 6 4 w he n we ma de p r o j e c ti o n s t h at we w o ul d r u n o ut o f w at e rfr o n t 

p r o p e rt y a v ail a b l e t o i n d u str y i n t h e mi d 1 9 7 0's. S h o rtl y, we e x p e ct 

t o a p p e ar b e f o re C o n gr es s t o re n e w o u r p a rt n e r s h i p a n d as k t h a t y o u 

a ct i n y o ur t r a d iti o n a l r ole a n d p r o vi d e a d d iti o n a l n a v i g ati o n c h a n n els 

a n d fl o o d c o n tr o l w or ks s o l o c al i n t e r e s t s ca n g et o n wit h t h e j o b o f 

p r o vi d i n g d e sir a b l e w at e r f r o n t f a c iliti e s f o r t h e p r o j e c t e d gr o w t h o f 

w ate r b o r n e c o m m erce i n o u r r e gi o n. T he s a vi n g s alr e a d y r e a li z e d i n 

p r e v e nti o n of fl o o d da ma g e a n d tr a n s p o rt a ti o n c o sts a m pl y t e s ti f y t o 

t h e s o u n d n es s o f F e d e ra l a n d l o c al i n v e st m e nt. We e a r n e stl y s o li c it 

y o u r fa v o ra ble c o n si d e r ati o n o f o u r r e q u e st t o p r o vi d e a d d it i o n al 

w at e rfr o n t p r o p e rt y t o i n d u str y f o r o ur r e gi o n.

I a p p r e cia te t h e p ri v il e g e g r a nte d me b y t h i s s u b-c o m mitte e t o 

a p p ea r b e f o re y o u t o d a y t o s u b mit t h i s sta te m e nt.
2 1

Se nat or G r a v e l . Mr. Giall a nza, se ni or vice pre si de nt of t he Ne w 

Orlea ns Ste a m s hi p Ass ociati o n.

Sir, we ha v e recei ve d y o u r state m e nt i n its e ntir et y f or t he rec or d. 

If y o u ca n s u m marize------

S T A T E M E N T O F S. GI A L L A N Z A, S E NI O R VI C E P R E SI D E N T, N E W 

O R L E A N S S T E A M S HI P A S S O CI A TI O N

Mr. G i a l l a n z a. I will k ee p it brief. I di d n ’t ta ke t he last 5- mi n ut e 

brea k, Se n at or.

Se n at o r G r a v e l . Yes, sir.

Mr. G i a l l a n z a. M y na m e is Sa m Gialla nz a, a n d I a m se ni or vice 

pre si d e nt of t he Ne w Orlea n s Ste a m s hi p Ass ociati o n. We re p res e nt 

t he ocea n carri er, t he ste a ms hi p a ge nt, a n d ste v e d ores o p erati n g i n t he 

p ort area of Ne w Orlea ns.

L o o ki n g at t h at ma p o ver t her e, t he le n gt h of o ur pr o ble m is real 

s h o rt c o m pare d t o t he bi g water w a y s yst e m. O ur gre at c o ncer n is t he 

last 2 1 miles, t he d o or wa y t o t he g ulf, t he S o ut h w est Pass, a n d we 

ca n eit h er get t he car g o i n, or we ca n get it o ut.

I n t he last c o u ple of years, w e’ ve bee n st y mie d t here d ue t o t he s h o al 

pr o bl e m, a n d I t hi n k if we c o ul d get t he pr o per relief, we c o ul d certai nl y gai n m ore fr o m t he gr eat water res o urc e a vaila ble t o t he 

Mississi p pi Valle y.

T h e “i n a bilit y ” a n d I use t h at w or d i n q u otes f or t he C or p s of 

E n gi neers t o mai nt ai n t he passes has restricte d t he use of dee p-sea 

na vi gati o n i n t he p orts of Ne w Orlea ns a n d Bat o n R o u ge. T h e c or ps 

d oes n ot ha v e t he a bilit y beca u se it d oes n ot ha v e t he pr o per t o ols. 

T h e y certai nl y ha v e t he k n o w- h o w.

J u st l o o ki n g bac k o ver se veral years, i n 1 9 73, w hic h was t he first 

of t h e c urre nt fl o o di n g we’ ve ha d o n t he ri ver t his is o u r t hir d ye ar— 

b ut 7 6 perc e nt of t he d a ys of t he ye ar, we ha d r estricti o ns i n t he S o ut hwest Pass, 7 1 per ce nt i n 1 9 74 a n d a gai n t his year, s h oali n g be ga n o n 

Fe br uar y 2 7, a n d we still ha ve a s h oali n g pr o ble m. We still ha v e 

restricti o n s. T hi s m or ni n g we ha v e a rec o m me n d e d dr aft li mite d t o 

3 6 feet e xc e pt o n a lar ger vessel of 1 0 0, 0 0 0 dea d wei g ht t o n s it ’s 

restricte d t o 3 4 feet.

J u st s o y o u will a p preci ate t he i m p act, t he v oi d t h at ’s left i n t he 

vessel d ue t o bei n g u na ble t o l oa d, t o dr aft we ma d e a st u d y of 5 0 

vessels d uri n g t his c urre nt peri o d. T his is 5 0, b ut y o u ca n a p p reciate, 

we ha n dle 6, 0 0 0 eac h yea r d o w n t her e. T hese vessels left be hi n d 

3 5 0, 0 0 0 t o n s of grai n car g o. T he val ua ble car g o is i n e xcess of $ 5 3 

milli o n. T h e i m pa ct of t he p ort be ne fit of t his car g o t o t he p o rt was 

$ 5 milli o n.

If Ne w Orlea ns, w hic h is t he N o. 1 grai n p ort of t he w orl d N o. 1 

i n t he w orl d. We’re N o. 2 i n t he U nite d States. T h e pass e ntra nce t o 

t he ri ve r m ust be dee pe ne d. T he ba dl y det eri orati n g water c o ntr olli n g 

di kes a n d str uct ur es m u st be rest ore d a n d pr o perl y mai ntai ne d.

We rec e ntl y a p p eare d bef ore t he H o us e a n d Se n ate A p pr o pri ati o n s 

S u b c o m mitt ees ur gi n g t h at t he y ma k e s uc h a rec o m me n dati o n t o t he 

C o n gres s.

I ’ d li ke t o tal k a little bit a b o ut t he dre d gi n g i n t he S o ut h w est 

Pas s a n d t he e q ui p me nt we use. S o ut h w est Pas s is us u all y mai ntai n e d b y t he h o p per dr e d ge L a n gfitt, w hic h bel o n gs t o t he c or ps. T he 

L a n gfitt is m ore t h a n 2 5 ye ars ol d, a n d it was state d here t his m or ni n g
2 1 5

b y o ne of t he wit nes ses t h at d u ri n g t he last ye ar fi ve h o p pe r dre d ges 

w or k e d i n t he S o ut h w est Pass. T his is tr ue. T h at’s o n e-t hir d of t he 

c or p s’ fleet.

I n a d diti o n t o t h at, t he y, als o, use d t o assist, t hr ee c utte r h ea d 

dre d g es, s o at o ne ti me t here were ei g ht dre d ges w or ki n g a 2 1- mile 

c ha n nel.

All of t he dre d ges are o ve r 2 5 yea rs. U n f ort u natel y, t h er e’s a 

m o rat ori u m. T h e c or ps ca n’t u p date t he dre d g es. We d o nee d s o me 

ne w e q ui p m e nt. T he e x perie nce d uri n g t he last 3 ye ars has certai nl y 

pr o v e d t he dire nee d f or u p dati n g ne w, m o der n h o p p er-t y p e dre d g es.

We i n i n d u str y are ma ki n g tre me n d o u s i n v est me nts i n i n n o v ati o n s 

of vessels. N ot t o o ma n y ye ars a g o, we we nt t o t he c o ntai ne r vessel. 

T o da y we’re g oi n g t o t he bar ge car rier a n d t he La s h a n d Sea be e. 

T hi s is o nl y nat ural f or Ne w Orle a ns. W e’re at t he e n d of t h at gre at 

water w a y, b ut we ca n n ot l oa d t hes e vessels t o ca p acit y ma n y ti me s 

d uri n g t he ye ar beca u se t he y ca n’t get t he m i n or o ut. T his dist ur bs 

t he w h ole c o n ce pt of bar g e car r yi n g a n d t he c o ntai ne r-t y p e vessel.

Re ce ntl y, A. D. Little C o. c o m plet e d a dre d gi n g st u d y of t he 

w h ole U nite d States, a n d t he y pre dict fr o m 9 t o 1 1 h o p p er-t y p e 

dre d ges will be nee de d f or t he ne xt 1 0 y ear s. We w o ul d certai nl y ur ge 

rec o m me n dati o n s t h at t he i m me diate pla n ni n g a n d desi g n f or t he 

m uc h- ne e de d m o d er n h o p p er-t y p e dre d ge f or t he l o wer Mississi p pi 

Ri v er a n d h o pe t h at c o nst r ucti o n c o ul d be gi n i n fiscal ye ar 1 9 7 7.

I ’ d li ke t o c o m me nt j u st a little bit a b o ut t he i m ple me ntati o n of a 

be n eficiar y- pa y c o n ce pt o n t he i nla n d water w a ys. T h e mai nt ai ni n g of 

t he water w a ys a n d t he use of t he water wa ys is n ot al w a ys a n e x pe ns e 

t o U ncl e Sa m. It certai nl y has bee n be neficial t o a gr eat pa rt of t he 

c o u ntr y. T h e stea ms hi p i n d u str y ’s i m pa ct o n t he ec o n o m y i n Ne w 

Orle a ns is a b o ut $ 4 billi o n a yea r.

T h e reac hes of t he ri v er bet w ee n Ne w Orle a ns a n d Bat o n R o u g e 

are t he o nl y reac hes of t he ri v er t h at c a n acc o m m o dat e t he de e p- dr aft 

vessels. W e’re a d vis e d b y t he de pa rt m e nt of c o m m erce of t he St at e of 

L o uisia na t h at wit hi n t he pa st fe w yea rs, s o me $ 5 billi o n i n ne w i n d ustr y ha s m o v e d i nt o t hes e pa rti c ular reac hes of t he ri ver. Of c o urse, 

t h e y ’ ve br o u g ht al o n g pa yr oll s a n d all t he ot h er i n d ust rie s t h at g o 

al o n g wit h t he c o m ple xes. T h e s u p er p ort, if a n d w he n c o nst r ucte d off 

t he delta will, of c o urse, dra w a d diti o nal refi neries a n d oil c o m pl e xes 

t o t he l o we r Missi ssi p pi.

I n 1 9 7 4, t he ei g ht ele v at ors t h at were i n o pe rati o n bet we e n Bat o n 

R o u g e a n d N e w Orlea ns m o ve d 3 8 milli o n t o ns of g rai n, a n d 3 5 p erc e nt 

of t his gr ai n arri v e d at t he ele vat ors via bar ge s. T h e ec o n o mic be n efit s 

t o t he p o rt are a al o ne was $ 3 billi o n.

I n 1 9 7 4, we ha n dle d j u st o ve r 6, 0 0 0 vessels i n i nter nati o nal tra de, 

a n d t he milli o n s of t o n s of i m p o rt car g o calle d at o ur p o rt. T h e f orei g n 

c o m m erce was res p o nsi ble f or t he dir ect pa y m e nt t hr o u g h t he Ne w 

Orle a ns a n d Bat o n R o u g e c ust o m s i nt o t he U. S. Tr ea s ur y of $ 1 0 7 

milli o n. I n a d diti o n, o ur i n d u str y has a dire ct a n n ual pa y r oll of d oc k 

w or kers al o ne t h at e xcee ds $ 5 0 milli o n.

I n a d diti o n t o t h at, t he p orts h a ve a d mi ni str ati ve st affs, o pe rati o n al 

a n d clerical staffs. We, als o, ge n erate m uc h ot h er e m pl o y m e nt t h at 

deals wit h la n d tra ns p o rtati o n, dra yi n g, frei g ht f or w ar di n g, c ust o m ­

h o use br o k era g e, s hi p c h a n neli n g, la u n d eri n g, s hi p r e pairi n g, a n d ot h er 

ma n y b usi ne sses t h at g o al o n g wit h ser vi ci n g s hi ps.
2 1 6

T hr ee of t he A merica n-fla g o w ner s ma k e t heir h o m es i n Ne w 

Orlea n s, a n d, of c o urse, all of t he h o us e kee pi n g a n d mai nt e na nce f or 

t he ma n y vessels t h at t he y o w n a n d o pe rate are acc o m plis h e d o n t he 

Missi ssi p pi Ri ve r.

We feel t h at t he i m ple m e nt ati o n of t oll a n d user t a xes w o ul d ha v e a 

tre m e n d o us a d verse i m p act u p o n t he ec o n o m y of t he e ntire Mississi p pi 

Valle y re gi o n. Car g o m o vi n g t o o ur f orei g n c ust o mers w o ul d be ec on o mi call y l ure d a wa y fr o m t his nat ur al i nla n d wat er w a y s yste m t o 

esca pe t he a d de d c ost of user ta xe s a n d t olls, lea vi n g ma n y pri vate 

i n d ustries t hr o u g h o ut t he Missis si p pi Valle y, de p e n de nt o n f orei g n 

c o m m erce f or s ur vi val, i n a n o nc o m p etiti ve p ositi o n.

We pref er if t he C o n gres s w o ul d ta k e a m ore ne g ati v e rat h er t ha n 

t he ne g ati v e acti o n, w o ul d ta k e a p ositi ve acti o n, ta k e t he nece ssar y 

ste p s t o i ncre ase o ur f orei g n tra de t hr o u g h se veral pr o p ose d na vi ga ­

ti o nal pr ojects f or o ur area. T he se i ncl u de t he dee p e ni n g of S o ut h w est 

Pass, trie d ee pe ni n g of t he ri ve r c ha n nel fr o m t he g ulf t o Bat o n R o u ge 

t o 5 5 feet a n d t he dee pe ni n g of t he Mississi p pi Ri ve r- g ulf o utlet t o a 

de pt h w hic h will e na bl e t he lar g er vessels n o w afl oat a n d u n d er c o nstr u cti o n t o be ser vic e d. We ur ge t he s u p p o rt of t he s u b c o m mittee f or 

pr oj ects s uc h as t hese w hic h will gr eatl y e n ha nce t he ec o n o mics of 

t he Missis si p pi Valle y a n d all of its nei g h b ors.

We ha v e ha n dle d m ore s hi ps of a 1 0 0, 0 0 0 dea d wei g ht t o ns i n t he 

pa st 6 m o nt hs t h a n we ha v e ha n dle d i n t he p ast 5 years. U n f ort u n atel y, 

we ca n ’t l o a d t he m.

Se n at or, t h a n k y o u. We a p p reciate t he o p p o rt u nit y f or bei n g here 

t o da y.

Se n at or G r a v e l . T h a n k y o u ver y m uc h f or y o u r testi m o n y.

[ Mr. Gi alla nza ’s state m e nt f oll o ws:]
2 1 7

S T A T E M E N T O F T H E

N E W O R L E A N S S T E A M S HI P A S S O CI A TI O N

A T A P U B LI C H E A RI N G O F T H E

S U B C O M MI T T E E O N W A T E R R E S O U R C E S

O F T H E

S E N A T E P U B LI C W O R K S C O M M I T T E E ■

VI C K S B U R G, MI S S I S SI P P I

M A Y 1 6, 1 9 7 5

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2 1 8

M y na me is S. G ia ll a n z a, a n d I a m Se ni or Vi ce Pre si d e n t of t h e Ne w

O rl e a n s St ea m s hi p A s s o ciati o n, w h o se m e m be rs hi p c o m pri se s f o rt y- n i n e

st e a m s h i p o w n ers, o p era t o rs, a g e nts a n d st e v e d o re s i n t h e P o rt of Ne w

O rl e a n s, a s s o cia te d wit h h u n d re ds of s hi p o w ne rs i n i n te r n ati o n al c o m m er ce.

I a m h ere t o da y t o te sti f y i n b e h alf of t h e i m p o rt a n ce of t h e i nla n d w ate rw a y s s y st e m a n d t h e f o rei g n c o m m erc e h a n dle d t hr o u g h t h e P o rt s of Ne w O rl ea n s

a n d Bat o n R o u g e a n d it s ec o n o m ic i m pa ct o n t h e n ati o n al le v el i n ter m s of t h e

U nit e d Sta te s' a bilit y t o re m ai n c o m p etiti v e i n w orl d tr a d e.

W e wis h t o c o m m e nt o n t h e t h re e m atte rs of c o nc er n t o t h e C o m mitt ee a s

w er e c o ntai n e d i n t h e N e w s R el ea se of A pril 9, 1 9 7 5, sc h e d uli n g t h is h e ari n g.

1. M et h o d of re pla ci n g o ut d at e d n a vi g ati o n al str u ct u r e s.

T he P o rts of Ne w O rl ea ns a n d Bat o n R o u ge ar e le a d i n g d e e p - d ra ft 

w orl d p ort s; h o w e v er, t h e i n a bilit y of t h e C or ps of E n gi n ee rs t o m ai nt ai n 

p r o je ct de pt h a s a re s ult of s h o ali n g h a s r e str ic te d w o rl d c o m m erc e m o vi n g

t hr o u g h o u r p o rt s. T he f oll o wi n g d ata, c o m pile d fr o m o u r re c o r d s, r e fl e cts

p eri o d s of s h o ali n g i n t h e P a ss e s d u ri n g re c e nt y e ars :

N u m b er o f Da ys d u ri n g w hi c h t h e P a s s e s w er e L es s t h a n Pr oje ct De pt h

Ye ar 4 0 Fe et at S o u t h w est P a ss

1 9 7 0 2 0 4 D a y s - 5 5. 9 %

1 9 7 1 1 3 9 D a y s - 3 8. 1 %

1 9 7 2 0 D a y s

1 9 7 3 2 7 9 Da ys - 7 6. 4 %

1 9 7 4 2 5 9 D a y s - 7 1. 0 %

1 9 7 5 t o d at e 7 9 D a y s - 5 8. 1 %

3 0 Fe et at S o ut h P a ss

3 1 5 D a y s - 8 6. 3 % 

3 6 3 Da ys - 9 9. 5 % 

3 0 1 Da ys - 8 2. 5 % 

3 6 5 D a y s - 1 0 0 %

3 6 5 D a y s - 1 0 0 %

1 3 6 D a y s - 1 0 0 %
2 1 9

- 2 -

It is al ar mi n g w h e n we st o p t o c o n si d er t h at si n c e M ar c h 1 6, 1 9 7 2, 

m or e t h a n 3- y e ar s a g o, S o ut h P a ss h a s n ot b e e n at it s p r o je ct de pt h of 3 0

f e et.

T h e c u rr e n t s h o ali n g i n S o u t h w est Pas,s vi v i dl y p oi n ts o ut t h e re s ult a nt 

ec o n o m ic i m pa ct - silti n g c a u se d a dra ft li m it ati o n o n Fe br ua r y 2 7, a n d it 

sti ll c o nti n u e s. T he re c o m m e n de d dra ft h a s alr e a d y t h is y ea r b ee n re str ic te d 

t o 3 5 fe et e x ce pt f or v e s s els of m or e t h a n 1 0 0, 0 0 0 d ea d w ei g ht t o n s a n d f or 

t h e s e la r g er v e s s el s, 3 3 fe et - 5 t o 7 fe et be l o w t h e p r o je ct de pt h of 4 0 f e et.

W e ha v e ma de a st u d y of 5 0 of t h e ma n y v e s s els t h at w er e u n a ble t o 

l o a d t h eir f ull c ar g o e s d u ri n g a 6 0- d a y pe ri o d si n c e t h e c u rr e n t si lt ati o n 

b e g a n. T he se v e s s el s, o nl y a fe w of t h e 6, 0 0 0 t h at c all at t h is p ort a n n u all y, 

le ft b e h i n d 3 5 0, 6 7 6 t o n s of f o re i g n - d e sti n e d ca r g o wit h a v al u e of m ore t h a n

$ 5 3, 0 0 0,f ) 0 0. T his t o n n a g e, f o rc e d t o be wit h h el d fr o m f o rei g n c o m m er ce,

de pri v e d t h is are a o f $ 5, 1 0 5, 8 4 2 i n ec o n o m ic b e n efits t o t h e p ort.

T h e P o rt of Ne w O rl e a n s, l o c ate d o n t h e M is sis si p pi Ri ver j u st 9 0

mil es fr o m t h e G ul f, ra n k s a s t h e N o. 1 gr ai n e x p o rti n g p o rt i n t h e w orl d, 

t h e N o. 2 p o rt of t h e U nite d Sta te s, a n d t h e N o. 3 p o rt of t h e w orl d; a n d 

if t h e s e ra n ki n g s ar e t o c o nti n u e, t h e P a ss e ntr a n c e s t o t h e M is sis si p pi 

Ri ver m ust be d e e p e n d e d, a n d t h e ba dl y d ete ri o ra te d w ate r- c o ntr olli n g di k es

a n d str u ct u re s m ust be re st ore d a n d pr o p erl y m ai ntai n e d .

I n b e h alf of t h is p r o je ct, I re c e ntl y a p p ea re d be f o re b ot h t h e H o u se

a n d Se na te P u blic W or ks S u bc o m mitt ee s o n A p p r o priati o ns ur gi n g t h e a p pr o p ri a

ti o n of t h e n e c e s s a r y f u n d s ne e d e d b y t h e C or p s.

5 4- 2 3 9 0 - 7 5 - 15
2 2 0

. 3 

2. T he dre d gi n g p olic y of t he C or ps of E n gi n eers.

1 9 7 5 is t he t hir d c o ns ec uti v e ye ar of seri o us fl o o d st a g es o n t he

M is si ssi p pi Ri ver a n d t he re s u lt a n t deteri orati o n of S o ut h we st P as s.

T he Pa ss is n or m all y mai nt ai n e d b y t he C o r p s' H o p pe r Dre d ge

I A N G FI T T a ss iste d b y c utte r h ea d dre d g es e m pl o y e d u n der c o nt ra ct. I n

re ce nt ye ar s, t h e I A N G FI T T, m ore t ha n 2 5 ye ar s ol d, ha s be e n u n a ble t o

mai nt ai n t he Pa ss e v e n wit h c utte r h ea d dre d g e a s sis ta n c e.

D uri n g 1 9 7 3, t h e C or ps of E n gi n eers, i n a n eff ort t o mai ntai n

S o ut h we st P as s, us e d t hr ee h o p per dre d g es f or a t otal of 2 8 7 da ys; i n

a d diti o n, .f o ur c utte r h ea d dr e d ge s were e m pl o ye d f or a t otal of 7 1 0 da ys.

I n 1 9 7 4, at o n e ti m e, t he C or ps of E n gi n eer s w as usi n g fi v e h o p per 

dre d g es ( o n e-t hi r d of t he e ntire h o p p er dre d ge fl e et). T h ese h o p p ers w or ke d 

f or a t otal of 7 3 1 d a y s. T hr ee g o nt act c utte r h ea d dr e d ge s a ss iste d f or 4 8 8

da ys d uri n g t he ye ar. 

At t he pr es e n t ti m e, t w o h o p per dr e d ge s are w or ki n g i n S o ut h we st 

Pa ss al o n g wit h t w o c utte r h ea d dr e d ge s. Bas e d o n ri v er pr e d icti o n s, it is 

e x pe ct e d t h at t he h o p p er dr e d ge s will w or k a t otal of 3 5 3 da ys wit h 4 3 2 

da ys bei n g w or ke d b y t he c utte r h ea d c o nt ra ct dr e d g es.

T he e x pe rie nc e of t he p as t ye ar s s u p p o rt t h e dir e ne e d f or a d diti o nal 

h o p p er dre d ge c a p a bilitie s. It m ust be n ote d t h at d ue t o t he c o nfi g u rati o n 

of S o ut h we st P a ss, t h e h o p p er-t y pe dre d ge is m ore ef fe cti v e. T his t y p e of 

dre d g e ha s t he n ec es sa r y m o bilit y a n d fle xi bilit y; it ca n a g it at e w he n t he
2 2 1

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i . ■

w at e r v el o cit y i s c a p a bl e of c arr yi n g t h e m at eri al t o s e a, a n d it c a n h a ul 

w h e n t h e s p e e d of t h e w at e r w ill n o t s u p p ort a git ati o n. T h e h o p p er dr e d g e 

i s t h e o nl y t y p e t h at c a n b e u s e d at t h e H e a d of P a s s e s, t h e J e tti e s a n d t h e 

B ar c h a n n el of t h e M i s si s si p pi Ri v e r- G ulf O utl et i n t h at t h e y c a n g e t o ut of

t h e w a y of n a vi g ati o n u si n g t h e c h a n n el.

T h e n e e d of a d diti o n al h o p p er dr e d g e s i s s u p p ort e d b y t h e N ati o n al 

Dr e d gi n g Pr o gr a m St u d y, pr e p a r e d b y A. D. Littl e C o m p a n y, w hi c h pr e di ct s 

t h at 9 t o 1 1 a d diti o n al h o p p er dr e d g e s w ill b e n e e d e d o v er t h e n e xt 1 0 y e ar s

I n t h e i n t e r e st o f i m pr o v e d m ai nt e n a n c e a n d t h e r e d u cti o n of e x p e n s e 

t o t h e C o r p s of E n gi n e er s i n m ai nt ai ni n g S o ut h w e st P a s s, w e r e c o m m e n d 

t h e i m m e di at e pl a n ni n g a n d d e si g n f or a m u c h n e e d e d m o d er n h o p p er dr e d g e

i n F Y 7 6 i n or d e r t h at c o n str u cti o n c a n c o m m e n c e i n F Y 7 7.

3. R e c e nt pr o p o s al c alli n g f o r i m pl e m e n t ati o n of a b e n efi ci a r y - p a y 

c o n c e p t o n t h e i nl a n d w at er w a y s

T h e P ort of N e w O rl e a n s i s str at e gi c all y l o c a t e d at t h e m o ut h of t h e ri c h

M i s si s si p pi V all e y, w hi c h i s t h e t e r mi n u s of t h e m o st e xt e n si v e F e d e r al

W at e r w a y s y st e m a n d i s t h e V all e y' s g a t e w a y t o f o r ei g n c o m m er c e.

It w a s o nl y n at u r al f o r t h e P o rt of N e w O rl e a n s t o b e t h e birt h pl a c e f o r

b ot h t h e 1 A S H a n d S E A B E E c o n c e pt. T hi s u niti n g of t h e ri v e r b ar g e a n d t h e

d e e p- d r a ft o c e a n c a rri e r h a s o nl y t a k e n it s fir s t st e p. It s ulti m at e i m p a ct

w ill b e f a r r e a c hi n g t h r o u g h o ut t h e e ntir e M i s si s si p pi V all e y.
2 2 2

5 -

i .

T h e c o m bi n a ti o n of t h e F e d e r al W at er w a y s y st e m, t h e Ri v e r P o rt, a n d

pri v a t e i n d u str y c o ntri b ut e g r e atl y t o t h e e c o n o m y of t h e ar e a a n d t h e dir e ct

a n d I n dir e ct i n p ut i n t o o u r N ati o n al tr e a s u r y i s tr e m e n d o u s.

At t h e pr e s e nt ti m e, t h e st e a m s hi p i n d u str y' s o v e r all i m p a ct o n t h e

e c o n o m y of N e w O rl e a n s al o n e i s al m o st $ 4, 0 0 0, 0 0 0, 0 0 0. T h e ri v e r

a b o v e N e w O rl e a n s t o B at o n R o u g e c o nti n u e s t o gr o w i n t h e h a n dli n g

of p e tr o c h e mi c al s at t h e m a n y c o m pl e x e s l o c a t e d al o n g it s b a n k s . T h e

L o ui si a n a D e p a rt m e nt of C o m m er c e e s ti m at e s t h at wit hi n t h e p a st f e w

y e ar s $ 5, 0 0 0, 0 0 0, 0 0 0 i n n e w i n d u str y h a s m o v e d i n t o t h e r e a c h e s of 

t h e l o w er ri v e r fr o m B at o n R o u g e t o t h e G ulf. I n a d diti o n, t h e S u p e r p ort, 

w h e n c o n st r u ct e d o ff t h e D elt a, w ill dr a w m a n y a d diti o n al oil r e fi ni n g 

a n d c h e mi c al c o m pl e x e s t o t h e M i s si s si p pi Ri v er.

N e w Orl e a n s i s t h e N o. 1 gr ai n p ort i n t h e n ati o n; t h er e ar e 8 gr ai n 

el e v a t o r s i n t h e p ort ar e a, e x p ofti n g milli o n s o f t o n s of gr ai n t o f o r ei g n

m ar k et s t h r o u g h o ut t h e w o rl d. I n 1 9 7 4, m or e t h a n 3 0, 0 0 0, 0 0 0 t o n s of

gr ai n m o v e d t hr o u g h t h e s e f a ciliti e s , pr o d u ci n g ar e a b e n efit s i n e x c e s s

o f $ 3, 0 0 0, 0 0 0, 0 0 0.

D uri n g 1 9 7 4, m or e t h a n 6, 0 0 0 v e s s el s i n i n t e r n ati o n al tr a d e c all e d at 

o u r p o rt wit h milli o n s of t o n s of i m p o rt c a r g o e s. T h e f o r ei g n c o m m er c e w a s 

r e s p o n si bl e f o r t h e dir e ct p a y m e nt t hr o u g h t h e N e w O rl e a n s a n d B at o n R o u g e 

C u st o m s i n t o t h e U nit e d St at e s Tr e a s u r y of $ 1 0 7, 0 0 0, 0 0 0; t hi s r e pr e s e n t s a n 

i n cr e a s e o f 4 1 % i n t h e p a st 5 y e ar s.
2 2 3

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A part fr o m t h e $ 1 0 7, 0 0 0, 0 0 0 i n C u st o ms c o ll e cti o n s, t he re ar e ma m m ot h

ec o n o m ic be ne fits f or t he Ne w Orlea ns ar ea; f or e x a m pl e, t he Me m ber c o m ­

pa ni es of t h e Ne w Orle a n s Ste a m s hi p A ss ociati o n ha ve a di re ct a n n u al pa yr oll i n e x ce ss of fift y milli o n d olla rs c o veri n g t h e w o r ke rs ac t u all y e n ga ge d

i n t he ha n dli n g of c ar g o es at t he d o c k s.

I n a d diti o n t o t he d o c k w o r k ers, t he re are t he a d mi nistr ati v e, o p er ati o nal,

a n d cl eric al st af fs a s w ell as t he e m pl o y me nt ge ne rate d i n p ort relate d

a cti vitie s, i n cl u di n g, b ut n ot re st ri ct e d t o, all f or ms of i nl a n d tr a n s p orta ­

ti o n, w ar e h o u si n g, dr a yi n g, frei g ht f or wa r di n g, c u st o m h o u se br o k er a g e, 

s hi p c h a n neli n g, la u n de ri n g, i n s p ecti o n se r v ic e s, p e st c o nt r ol, s hi p 

re pairi n g, a n d ot h er s. Ne w Orle a n s is t h e h o me p o rt of t hre e of t he 

lar g e A merica n Fla g s hi p o w ne rs w h ose n or m al v e ss el mai nte n a n ce a n d 

h o us e k ee pi n g is ac c o m plis he d he re. It is n o w esti m at e d t h at a s a re s u lt 

of t he S u p er p ort s o m e 3 5, 0 0 0 ne w j o bs will be cr ea te d, a d di n g a pa yr oll

i n e x ce ss of $ 4 0 0, 0 0 0, 0 0 0 a ye ar.

T he i m ple me ntati o n of t oll a n d u se r ta xe s w o ul d ha ve a tre m e n d o u s

a d ve rs e i m pa ct u p o n t h e ec o n o m y of t he e ntir e M is si ssi p pi Valle y re gi o n. 

Car g o m o vi n g t o o ur f or ei g n c u st o me rs w o ul d be ec o n o m ic all y l ur e d a w a y

fr o m t his nat ural i nla n d water wa y s y ste m t o es ca p e t h e a d de d c o st o f u se r

ta x es a n d t o ll s, lea vi n g ma n y pri v ate i n d u st ri es t hr o u g h o ut t he M is si ssi p pi

Valle y, de pe n d e nt o n f or ei g n c o m m erce f or s u r vi v al, i n a n o nc o m petiti ve

p o siti o n.
2 2 4

7 -

I n c o n cl u si o n, if we l o o k b a c k , we ca n s e e t h at t h e gr o wt h of o u r Fe de ral 

s y st e m of n a v i g a b le w at er w a y s ha s be e n a n e s s e nti al b u il d i n g bl oc k i n t h e 

gr o w t h of o u r c o u ntr y ; it h as pr o v e n t o be a pl u s f or all U nite d Sta te s cit iz e n s, 

e v e n t h o se w h o ha ve n ot e v e n se e n a p ort.

I n o ur o pi ni o n, t h e U nite d Sta te s, a s t h e pri me b e n efi cia r y , m ust a v oi d 

de st r o yi n g t h e d eli c ate ec o n o m ic b ala n ce t h at n o w e x is ts . I n o u r j u d g m e n t, 

t h e i m pl e m e n tati o n of a w at er w a y u se r ta x w o ul d d e st r o y t h at b ala n c e a n d 

w o ul d be d etri m e n tal t o t h e w at er b o r n e c o m m erc e of t h e U nite d Sta te s, t h e 

p o rt ar ea of Ne w O rl e a n s, t h e St at e of L o u isia na a n d t h e e nti re M is sis si p pi 

V alle y.

Rat h er t h a n ta ki n g s u c h n e g ati v e a cti o n, we b eli e v e t h e Fe de ral g o v er nme nt s h o u l d ta k e t h e st e p s n e c e s s a r y t o i n cre a s e o u r f o rei g n tr a d e t h r o u g h 

se v era l pr o p os e d n a vi g ati o n al pr o je cts f or o ur a r e a. T he se i n cl u d e t h e 

d ee p e n i n g of S o ut h w est P a s s, t h e de e p e n i n g of t h e Ri v er C ha n n el fr o m t h e 

G ulf t o Bat o n R o u g e t o 5 5 fe et a n d t h e d ee p e n i n g of t h e M is sis si p pi Ri v erG ulf O utl et t o a d e p t h w hi c h will e n a b le t he la r g er v e s s els n o w afl o at a n d 

u n de r c o ntr ac ti o n t o be se r v ic e d. We ur ge t h e s u p p ort of t h e S u bc o m mitt ee 

f or p r o je cts s u c h a s t h e se w hi c h will g re atl y e n ha nc e t h e ec o n o m ic s of t h e 

M is sis si p pi V alle y a n d all of it s n ei g h b ors.

T h a n k y o u.
22 5

Se n at or G r a v e l . O ur ne xt wit n ess is Mr. Ver n o n Be hr h orst of t he 

L o uisia na C o ast al C o m missi o n.

S T A T E M E N T O F V E R N O N B E H R H O R S T, L O U I SI A N A C O A S T A L 

C O M MI S SI O N

Mr. B e h r h o r s t . T h a n k y o u, Mr. C h air ma n.

M y na m e is V er n o n Be hr h orst, a n d I a m dir ect or of t he L o uisia na 

C oa stal C o m missi o n. We’re d o micile d i n La fa y ett e, La. I ’ m, als o, 

s pea ki n g f or t he L o uisia na I ntra c o astal Sea w a y Ass o ciati o n. Mr. 

C harles Br o uss ar d, w h o is p resi de nt of t hat, sai d t h at h e’ d c o nc ur wit h 

a n y re m ar k s t h at I w o ul d ma k e. Als o, Mr. Lel a n d B o w ma n, w h o is 

c hair m a n f or t he G ulf I ntra c o astal Ca nal S yste m, ha d h o p e d t o be 

here t o d a y, a n d he as ke d me t o sa y a fe w brief re m ar k s o n his be h alf. 

We a gree q uite cl osel y, a n y wa y. He re q uests t h at if t he rec o r d be left 

o pe n f or se ver al wee ks, t h at he ma y s u b mit writte n state m e nts.

Se n at or G r a v e l . T ha t w o ul d n’t pr ese nt a n y pr o ble m at all.

Mr. B e h r h o r s t . Ri g ht. T h a n k y o u, Mr. C h air ma n.

I ’ m ha p p y t h at y o u ’ve ta k e n t he ti m e t o c o me d o w n here a n d l o o k 

at t he sit u ati o n we ha v e. Y o u’ ve see n a l ot of fl o o d w aters. Y o u’ ve 

see n s o me of o ur na vi gati o nal facilities, s o m e of t he pr o ble m s a ss ociate d 

wit h it.

B y aca d e mic trai ni n g, I ’ m a ge o gra p her, a n d t hr o u g h t he ye ars, I ’ ve 

c o me t o fi n d o ut t h at y o u ca n rea d a b o ut a n are a all y o u wa nt a n d y o u 

ca n l o o k at t he ma p s, b ut t o get o ut a n d l o o k at it o n t he gr o u n d — 

s o meti mes it ’s bette r fr o m t he air — y o u get a feel of t he are a a n d 

u n derst a n d t he circ u msta nc es t here, a n d I h o pe t hi s a d d s t o y o ur 

u n der sta n di n g of o ur are a d o w n here.

We ha v e a si milar sit uati o n t h at we ha v e t o deal wit h i n re g ar d t o 

o ur offs h ore oil i n d ust r y a n d deali n g wit h t he i ntrac oa stal m atte r i n 

tr yi n g t o c o n vi nce pe o ple of t he fact t h at we ca n pr o d uce oil d o w n 

t here wit h o ut mas si ve e n vir o n me ntal da m a ge. We bri n g pe o ple d o w n 

t here w h o are t ha n kf ul f or it.

S o, if I ma y ma ke o ne c o m me nt —it ’s reall y n ot a pa rt of t hi s, b u t 

ot h er pe o ple ha ve br o u g ht it u p — a b o ut t hi s ne w C o urt r uli n g o n t he 

C or p s of E n gi n eer s’ re q uir e m e nt s u n der secti o n 404. T his has, of 

c o urs e, br o u g ht a gr eat c o nc er n t o L o uisia na. F o r t he m o st pa rt, 

we’re u n d er c or p s j uri s di cti o n, a n y wa y, beca use of t he defi niti o n of 

hi g h water, a n d I ca n ass ur e y o u C o n gres s will be gi n getti n g, a n d is 

alre a d y g etti n g, ma n y re q u est s fr o m L o uisia na t o clarif y t he sit u ati o n, 

a n d I ur ge y o ur c ollea g ues t o d o s o. Ye ster da y o ur le gislat ure as ke d 

t he C o n g ress t o defi ne t hese ter ms as t he y were use d.

I ha v e m u c h m ore I was g oi n g t o sa y t h at has bee n c o ve re d b y 

ot h er s pea kers, parti c ularl y Ge n eral K oi sc h ’s c o m me nts a b o ut I n tr a ­

c oastal Water wa ys. Cal vi n W atts we nt i nt o s o me det ail, y o u k n o w, o n 

t he I ntra c o astal Water w a y, a n d, als o, Mr. K yl e, w h o was j u st here, 

a n d I j u st w a nt t o c o n c ur o n Mr. K yle’s c o m me nt a b o ut o ur c o nc er ns 

a b o ut t he e c o n o mic i m pact t h at ma y occ u r wit h a n y ha st y i m p ositi o n 

of s o me t y p es of user s c har ge s.

I will get bac k t o t h at i n a m o me nt.

Wit h re g ar d t o t he G ulf I ntra c o astal Water w a y, w h at we are 

c o ncer ne d wit h is o ur Ea st- W est Na vi g ati o n al Pr oject. T h e L o uisia na 

secti o n al o ne carri es a b o ut 6 0 milli o n t o n s a year. M ost of t h at, 

6 0 per ce nt, is e ner g y, m o st of it bei n g petr ole u m pr o d ucts. Relate d 

pr o d ucts acc o u nt f or a n ot he r 1 0 per ce nt. Se ve nt y per ce nt of t his is
2 2 6

e ner g y a n d e ner g y relate d. It ’s t o d a y bec o mi n g a n o bs ol ete wat er w a y, 

a n d ca n n o l o n g er carr y, a n d, as a res ult, f u n ds are bei n g i ncl u de d 

i n t he b u d get t o ree val uat e t his pr oject.

N o w, it d oes r u n m o st of its are a o n t he n ort h er n e d ge of o ur 

mar gi ns, a n d we realiz e t h at a n y ree val uati o n has t o ta k e i nt o c o nsi de rati o n o ur maj or e n vir o n m e nt al c o nc er ns, a n d we rec o g ni ze t his, 

a n d we ha v e t o d o it, a n d we belie ve it ca n be d o ne, a n d, of c o urse, 

we realize t h at t her e are a d de d ec o n o mic e n vir o n me ntal tra de offs 

t h at are i n v ol ve d.

O ur C oa stal C o m missi o n —t his is o ne of o ur ma n y res p o nsi bilities, 

t o w or k wit h t he Fe d eral G o ver n m e nt o n t his. We ha v e alr ea d y 

i nitiate d e n vir o n m e nt al st u dies s o me yea rs a g o, i nci de ntall y — e nvir o n m e ntal st u dies c o n d ucte d b y t he C or ps of E n gi neer s a n d a 

L o uisia n a c oastal are a st u d y, w hic h will gi ve us i nf o r mati o n t h at we 

nee d al o n g t h ose li nes.

Wit h re gar d t o t he I ntra c o ast al Water w a y, let me i nterject o ne 

c o m me nt here i n li ne wit h users c har g es. T h ere are fi ve l oc ks i n t he 

I nt rac oa stal Water w a y. O ne of t he pr o p osals is t o le v y users c har ges 

i n t he f or m of l o c ka ge fees. Well, as f ar as t he na vi gati o n is c o ncer ne d, 

t h e y ’ d li ke t o bl o w u p e ver y o ne of t h ose l oc ks beca us e t h e y ’re eit h er 

t her e as fl o o d c o ntr ol mea s ure s or salt water barriers. T h e y reall y 

d o n ot ser ve na vi gati o n, a n d h o w w o ul d y o u assess users c har g es i n 

t his case?

B ut I w o ul d li ke t o a d d f or t he rec or d c o m me nts I ma y ha v e wit h 

re gar d t o t he Nati o nal C o nfer e nce o n W ate r w hic h was hel d i n 

Wa s hi n gt o n se ver al wee ks a g o. I was as ke d t o be o ne of t he s pe a kers 

o n t he pa nel o n t he r ole of Fe de ral, State, a n d l ocal g o v er n m e nts i n 

water res o ur ces ma n a ge me nt. I rel ucta ntl y t o o k it beca u se I — 

pe o ple sa y I ’ m de v el o p me nt orie nte d, a n d I c o ul d see t h at we w o ul d 

ha ve all s ort s of c o n fr o ntati o ns i n t her e, w hic h we di d n ot. We ha d 

seri o us q ue sti o ns raise d, a n d h o pef ull y, t he y were a ns wer e d, b ut wit h 

re gar d t o tra ns p o rtati o n, t he pa nel I was o n, t he Fe d eral, State, a n d 

l ocal se g m e nt — I ’ m n ot s pea ki n g f or t he ot h er pa nels, j u st m y pa n el; 

n ot w h at ca me o ut i n t he m, b ut i n o ur pa nel. I t hi n k it was t he c o nse ns u s t h at ca m e o ut is t h at, c o ntr ar y t o w h at s o me pe o ple ha ve sai d 

t he c o nse n s us was t h at t her e is a le giti m ate r ole f or t he Fe d eral 

G o ver n m e nt i n s p o n s ori n g na vi gati o n al pr oj ects. N o o ne o n t he 

pa nel q ue sti o ne d t h at, b ut as t o t he de gree, yes, w h at t he r ole s h o ul d 

be wit h t he Fe d eral, St ate a n d l ocal g o ver n m e nt wit h re ga r d t o 

i nt erstat e na vi gati o n al pr o gr a ms. M o st of t h ose are, y o u see, i nterstate. T hi s is t he Fe d eral res p o nsi bilit y t o ha n dle t hese.

N o w, t he q ue sti o n was raise d — a n d I t hi n k a ptl y s o — we t hi n k of 

i nterstate as cr ossi n g State li nes — b u t a n ot h er as p ect of t his is —s h o ul d 

we l o o k at water pr oject s, na vi gati o n, fl o o d c o ntr ol a n d s o f ort h, n ot 

fr o m a ge o g ra p hic p oi nt of vie w b u t s h o ul d we l o o k at it fr o m t he 

sta n d p oi nt of t he fe de ral, St ate a n d l ocal i nt ere sts i n t h ose pr ojects 

beca u se m o st certai nl y t her e are pr ojects wit hi n a St ate t h at we ha ve 

a pri mar y Fe d eral i nter est i n? T hi s s h o ul d be l o o ke d at, rat h er t ha n 

j u st l o o ki n g at a m a p a n d seei n g w here t he y d o lie, w het her t he y cr oss 

St ate li nes or n ot. T his i ncl u de d, b y t he wa y, f or t he be ne fit of t he 

pe o ple here, t h at t he Mississi p pi Ri v er a n d Tri b utaries Fl o o d C o ntr ol 

pr oject, t he c o ns e ns u s was t he br oa d be ne fits fr o m it — m o st certai nl y 

t his m ust re m ai n a Fe d eral res p o n si bilit y.
2 2 7

We di d, h o we ver, ha v e s o me disa gre e m e nt o n t he vali dit y a n d h o w 

users c har ges s h o ul d be i m p o se d, a d mi nistere d, b ut a ver y i m p o rta nt 

t hi n g ca me o ut. T h e c o ns e ns u s w as t h at we are, i n tal ki n g a b o ut users 

c har ges at t he pre se nt ti me, we are p utti n g, i n a se nse, t he ca rt bef ore 

t he h orse. Y o u ma y ha v e see n we p u t o ur bar g es i n fr o nt of o u r t o wb o ats d o w n here, b ut we d o n ’t wa nt t o p ut o ur ca rt bef or e t he h orse.

B ut w h at p ur p ose — h o w will user s c har g es ser v e o ur nati o nal 

o bj ecti ve s w he n t he c o ns e ns u s was we m u st reac h o ur — det er mi ne o ur 

nati o nal o bj ecti ves wit h re g ar d t o: ( 1) T o e ner g y p oli c y; ( 2) t he c o urt 

sai d wit h, of c o urse, t he tra ns p o rtati o n p olic y; a n ot h er t h at was 

br o u g ht u p is o ur a gric ult ural e x p ort p olic y; a n d all of t hi s is i n v ol ve d 

i n tra ns p o rtati o n?

N o w, are we g oi n g t o m o ve c oal as t he E n er g y Act sai d? H o w are 

we g oi n g t o m o ve it ? A n d o nce t hes e are dete r mi ne d, p ossi bl y we h a ve 

t o l o o k at t he m t o g et h er. T h e n t he q ue sti o n of h o w t he c ost is g oi n g 

t o be all oc ate d ca n t he n be m et m ore dire ctl y o n it, rat h er t h a n ri g ht 

n o w j u st sa y: User s c har ges are g o o d; t he y will ser v e a p ur p o se; t he y 

will get t he Fe d eral G o ver n m e nt t o bac k us u p wit h m o ne y.

I ma d e o ne p oi nt m yself i n t here w hic h, u n f ort u natel y, I felt was 

n ot gi ve n seri o u s c o n si de rati o n. Of c o urse, o ur o w n t hi n ki n g, we t hi n k 

is ofte n s u p eri o r t o ot hers’. It mi g ht n ot be w o rt h a n yt hi n g. B ut t he 

e ner g y sit uati o n has ta u g ht us o ne t hi n g — t h at n ot o nl y is e ner g y a 

fi nite res o urce here, b u t w h et h er it be ir o n, al u mi n u m, or a n y ot h er 

mi n eral res o u rce we ha v e a vaila ble t o us i n a fi nit e q u a ntit y — a n d 

a n yt hi n g t h at w o ul d re q uir e us t o j u n k facilities, w h et h er t he y be 

water, railr oa d s, tr uc ks, or a n yt hi n g else, is eati n g i nt o t hi s q u a ntit y 

of fi nit e res o urces t h at we ha v e, a n d we ha v e t o h u s b a n d t he m, n ot 

j u st l o o k at w het her o r n ot it ’s e c o n o micall y t he ri g ht t hi n g t o d o.

S o, t hese are s o me of t he t hi n g s t h at I feel m ust be ta k e n i nt o c o nsi d erati o n i n t he de v el o p m e nt of o ur water res o urce s s yste m. O ur 

pa n el u na ni m o usl y a gree d t h at o ur water res o urce s m u st be ha n dle d 

a n d de vel o pe d. We m ust n ’t a b a n d o n t he pr o gra ms w hic h we ha ve.

A n d i n cl osi n g I w o ul d a d vise — si milar state m e nts ha v e all u d e d t o 

t his. I w o ul d li ke t o call y o u r atte nti o n t o a n e dit orial w hic h a p p eare d 

i n t he Be a u m o nt E nter pri se, w hic h is a Te x as ne w s pa per, da y bef ore 

ye ste r da y. Of c o urse, o ur utiliti es d o w n here are m o vi n g t he c oal as 

well. O ne o ver i n o ur area, G ulf St ate s Utilitie s, w hic h was pre se nt 

at t he gr o u n d bre a ki n g, t he o pe ni n g of t he c o nst r ucti o n of o ne of o ur 

ne w c oal firi n g u nits here last ye ar —t he ori gi n al i nt e nti o n was t o 

bri n g c oal fr o m W y o mi n g b y r ailr oa d, si x 1 0 0-car u nits, 2 4- h o u r-a- da y 

o pe rati o n, a n d it ’s me nti o n e d i n t his e dit ori al p u blicl y. T h e y are 

c o nsi deri n g t he p ossi bilit y of sl ur ri n g pi peli nes t o t he Miss o uriMississi p pi Ri v er s yste m a n d bar gi n g it d o w n, a n d ot h ers are l o o ki n g 

at t he sa me t hi n g — a gai n, a ne w c o n si de rati o n i n o ur water tra ns ­

p o rtati o n, n ot o nl y i ncre ase d use of bar ge s, b ut t he fact t h at sl ur ri n g 

pi peli nes are i n a se nse a f or m of water tra ns p o rtati o n, a n d t he area s 

t o w hic h t his c oal is bei n g br o u g ht are alre a d y water di visi o n area s 

of t he na vi gati o n s yst e m.

S o, t hese s o m e w h at disj oi nte d c o m me nts — I w o ul d li ke t o as k, 

Se n at or, t h at t he y be a d d e d t o w h at t he ot h er pe o pl e ha v e t o sa y, 

a n d I certai nl y a p p reciat e t he o p p o rt u nit y t o ha v e testifie d bef ore 

y o u.

Se nat or G r a v e l . T ha n k y o u ver y m uc h.
2 2 8

We a p p reciat e y o ur c o m m e nts.

A j oi nt st at e m e nt fr o m Fr a n k T. E d war ds, St ate le gislati v e direct or, 

U nite d Tr a n s p ortati o n U ni o n a n d Ja m es B. Ra m se y, le gal c o u nsel, 

U nite d Tr a n s p ortati o n U ni o n, will be i ncl u de d i n t he rec or d at t his 

p oi nt.

[ T he state m e nt f oll o ws:]

t a t e m e n t o f Fr a n k T. Ed w a r ds a n d Ja m e s B. Ra m s e y

T he u n dersi g ne d Fra n k T. E d war d s, State Le gislati ve Direct or of Mississi p pi, 

U nite d Tra ns p ortati o n U ni o n, a n d Ja me s B. Ra mse y, Le gal C o u nsel f or t he 

U nite d Tra ns p ortati o n U ni o n ma ke t he f oll o wi n g st ate m e nt:

We ha ve rea d wit h i nter est t he ne ws release of t he C o m mitt ee o n P u blic W or ks, 

U nit e d Stat es Se nate, date d A pril 9, 1 97 5, a n d t he testi m o n y of ot hers c o ncer ni n g 

t he pr o p ose d e x pa nsi o n of t he U p p er Mississi p pi Ri ver Na vi gati o n S yste m, 

i ncl u di n g L oc ks a n d Da m 2 6 at Alt o n, Illi n ois a n d t he d u pli cate L oc ks Pr oj ect 

o n t h e Illi n ois Water w a y.

T he testi m o n y of T h o mas J. D u g ga n bef ore t he S u bc o m mittee o n A p pr o priati o ns i n Was hi n gt o n o n Ma y 6, 1 9 75 ver y well c o vers o ur se nti me nt i n o p p ositi o n 

t o t he pr oject.

We ca n o nl y a d d t h at i ncrease d p u blic s pe n di n g t o pr o vi de i m pr o ve me nts f or 

bar ge traffic o n t he U p p er Mississi p pi ge nerall y mea ns i ncrease d bar ge traffic o n 

t he L o wer Mississi p pi a n d t hr o u g h t he Stat e of Mississi p pi i n dire ct c o m petiti o n 

wit h t he railr o a ds at great c ost t o t he ta x pa yer s i ncl u di n g railr o a d e m pl o yees 

a n d t hei r fa milies wit h a res ulti n g l oss of j o bs f or Mississi p pia ns.

I n o ur o pi ni o n, t he m o ne y w hic h t he C or ps of E n gi neers pr o p oses t o s pe n d o n 

t hese pr ojects w o ul d be b ett er s p e nt b y Fe deral S u b si d y t o t he railr oa d s t o i m pr o ve 

t hei r p h ysical pla nt, i ncl u di n g trac k i m pr o v e me nts. We k n o w of n o c o m m o ditie s 

ha ule d b y bar ge w hic h are n ot ca pa ble of bei n g tra n s p orte d b y t he railr oa d s, wit h 

t he rare e xce pti o n of e xtre m el y wi de or tall ite ms w hic h w o ul d n ot m eet railr oa d 

cleara nces.

We a gre e wit h t he U nite d State s District C o urt f or t he Dist rict of C ol u m bia 

w hic h has hel d t h at t he C or ps of E n gi neers use of a 1 9 09 re ha bilit ati o n stat ut e 

t o b uil d massi ve ne w str uct ures s uc h as L oc ks a n d Da m 2 6 wit h o ut f or mal 

a ut h orizati o n b y C o n gress vi ol ates t he la w.

r a n k T. Ed w a r d s

St ate Le gisl ative Direct or of Mi ssi ssi p pi,

U nite d Tr a n s p ort ati o n U ni o n,

J ack s o n, Mis s.

a m es B. Ra m s e y

Le g al C o u nsel,

U nite d Tr a n s p ort ati o n U ni o n,

Vicks b urg, Miss.

Se nat or G r a v e l . Let me sa y at t hi s ti m e t h at we will be ha vi n g 

heari n g s u p u ntil t he 1 8t h a n d 2 0t h of J u ne, a n d, of c o urse, t he r ec or d 

will be o pe n f or a n y b o d y t h at wis hes t o s u b mit a state m e nt. S o me of 

y o u w h o ha ve a p p ear e d t o d a y wis h t o file a d diti o nal state me nts, s o 

we will be recei vi n g state m e nts u p u ntil t he cl ose of t he h eari n gs.

T h a n k y o u ver y m uc h, la dies a n d ge ntle m e n. T hes e hea ri n gs are 

a dj o ur ne d.

[ Materi al s u b mitt e d f or t he rec o r d b y Ge n eral K ois c h a n d a d diti o n al state m e nts a n d material f oll o w:]
2 2 9

W A T E R B O R N E C O M M E R C E 

O F T H E U NI T E D S T A T E S

C A L E N D A R Y E A R 1973

P A R T 2

W A T E R W A Y S A N D H A R B O R S

GlI L E C O A S T, MI S SI S SI P PI RI V E R S Y S T E M A N D A N TI L L E S

D E P A R T M E N T O F T H E A R M Y 

C O R P S O F E N GI N E E R S
2 3 0

W A T E R B O R N E C O M M E R C E 

O F T H E U NI T E D S T A T E S

C A L E N D A R Y E A R 1 97 3

P A R T 2

W A T E R W A Y S A N D H A R B O R S

G U L F C O A S T, MI S SI S SI P PI RI V E R S Y S T E M A N D A N TI L L E S

C O M PI L E D U N D E R T H E S U P E R VI SI O N O F 

T H E DI VI SI O N E N GI N E E R, U. S. A R M Y E N GI N E E R DI VI SI O N 

L O W E R MI S SI S SI P PI V A L L E Y, C O R P S O F E N GI N E E R S 

VI C K S B U R G, MI S SI S SI P PI

F o r s al e b y:

Di s tri c t E n gi n e er, U. S. Ar m y E n gi n e er Di s tri c t, N e w Orl e a n s,

P. O. B o x 6 0 2 6 7, N e w Orl e a n s, L o ui si a n a 7 0 1 6 0

Pri c e $ 1. 7 5
C I F I C O C I A N P art Atl a nti c C oa st P art 2 G ulf C oa st. Mi ssi s si p pi Riv er S y st e m a n d A ntill e s P art 3 Gr e at l a k e s P art 4 P a cifi c C oa st. Al as k a a n d H a waii P art 5 W at er b or n e C o m m er c e of t h e U nit e d St at e s ( N ati o n al S u m m ar y) P A R T 5 P A R T 2 A T L A N T I C O C t A N * * * * * * ” vi » c m i s u or m • t I a
C O N T E N T S

Ma p of t h e U n ite d Sta te s s h o w i n g g e o g ra p hic al a r e a s c o v e re d b y e a c h

of t h e fi v e W ate r b o r n e C o m m e rc e S ta ti sti c s p u bli c ati o n s...........................................................

I n tr o d u cti o n...............................................................................................................................................................

E x pla n ati o n of T e r m s f o r Ki n d of T r a f fi c ................................................................................................

C o m m o dit y C la s sif ic ati o n f o r S hi p pi n g S t a ti sti c s.................................................................................

C o m p ara ti v e Sta te m e nt of T ra ff ic o n t h e M is sis si p pi R i v e r fr o m

M i n n ea p oli s, Mi n n., t o t h e M o ut h of t h e P a s s e s, c ale n d ar

y e a rs 1 9 6 4 - 1 9 7 3 ...............................................................................................................................................

C o m p ara ti v e State m e nt of T ra ff ic o n t h e M is sis si p pi R i v er S y ste m,

c ale n d a r y e a rs 1 9 6 4 - 1 9 7 3 ............................................................................................................................

S E C T I O N 1. C o m p a ra ti v e sta te m e nts of c o m m erc e f o r p re c e di n g 

y e a rs a n d t h e d eta il e d fr ei g ht tr a f fi c f o r c ale n d ar y e a r 1 9 7 3 of 

w ate r w a y s a n d h a r b o r s of t h e G ul f C o as t, M is sis si p pi R i v e r

S y ste m a n d A ntill e s, a rr a n g e d b y U. S. A r m y E n gi n e er D i s t ri c t s............................................

Vic k s b ur g, M is s........................................................................................................................................ .

M e m p his, T e n n.............................................................................................................................................

St. L o uis, M o........................................................ .........................................................................................

St. P a ul, Mi n n.................................................................................................................................................

Littl e R o c k, A r k ...........................................................................................................................................

M is s o u ri R i v e r D i v i si o n .........................................................................................................................

N a s h ville, T e n n..............................................................................................................................................

L o uis ville, K y.................................................................................................................................................

H u n ti n g t o n, W. V a.........................................................................................................................................

Pitts b u r g h, P a................................................................................................................................................

O hi o R i v er Di v isi o n . ................................................................................................................................

G ulf I ntr a c o a sta l W a t e r w a y...................................................................................................................

J a c k s o n ville, Fla. ( G ulf C o ast a n d A ntill e s p o rti o n )..................................................................

M o b ile, Ala......................................................................................................................................................

Ne w O rle a n s, L a............................................................................................................................................

G al v e st o n, T e x...............................................................................................................................................

M is sis si p pi R i v e r.........................................................................................................................................

C hic a g o, Ill. (Illi n ois R i v e r )...................................................................................................................

M is sis si p pi R i v e r S y s t e m ......................................................................................................................
2 3 3

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S. 1 9 7 3

P a g e

S E C TI O N 2. Tri p * a n d dr aft * of v e s s el * f o r w at er w a y s a n d

h a r b or * of t h e G ulf C o a st. M is sis si p pi Ri v er S y st e m a n d

A n till e s, ar r a n g e d b y I. S. Ar m y E n g i n ee r D is tr ic t * ..................................................................... 1 4 3

Vic k s b ur g. M is *............................................................................................................................................. 1 4 5

M e m p h is. T e n n............................................................................................................................................... 1 4 6

St. L o uis, M o................................................................................................................................................... 1 4 6

St. P a ul. Mi n n.................................................................................................................................................. 1 4 7

Lit tl e R oc k, Ar k............................................................................................................................................. 1 4 7

M is s o u ri Ri v er D i v i si o n ........................................ 1 4 8

N a s h ville. T e n n............................................................................................................................................... 1 4 9

L o uis ville, K y.................................................................................................................................................. 1 5 0

H u nti n g t o n, W. V a.......................................................................................................................................... 1 5 0

Pitts b u r g h, P a................................................................................................................................................. 1 5 1

O hi o Ri v er D i v i si o n .................................................................................................................................... 1 5 1

G ul f I n tr a c o a st al W a te r w a y.................................................................................................................... 1 5 2

J a c k s o n ville, Fl a. ( G ulf C o a st a n d A n till e s p o r ti o n ).................................. 1 5 4

M o bile, Al a....................................................................................................................................................... 1 5 7

Ne w O rl e a n s, L a............................................................................................................................................ 1 6 2

G al v es t o n, T e x ................................................................................................................................................ 1 6 7

M is sis si p pi Ri v e r.......................................................................................................................................... 1 7 3

C hi c a g o, 111. (Illi n oi s R i v e r )..................................................................................................................... 1 7 6

I n d e x............................................................................................................................................................................ 1 7 7
2 3 4

I N T R O DU C TI O N

his p u bli c ati o n is o n e of a s e ri e s c o nta i n i n g 

st ati sti c s o n t h e w ate r b o r n e c o m m e r c e of t h e 

U nit e d S ta te s d u ri n g t h e c ale n d a r y e a r 1 9 7 3. 

F o u r of t h e s e p u bli c ati o n s p r e s e nt d eta il e d d ata 

o n t h e m o v e m e nts of c o m m o ditie s a n d v e s s e ls 

at t h e p o rts a n d h a r b o r s a n d o n t h e w ate r w a y s 

a n d c a n als of t h e U nite d Sta te s, t h e C o m m o n ­

w e alt h of P u e rt o Ric o, a n d t h e V ir gi n Is la n d s, 

a n d t h e fi ft h c o nta i n s s u m m a r y d ata of t h e c o u n ­

tr y a s a w h ole. T he n u m b ers of t h e p u bli c ati o n s 

a p d t h e a r e a s c o v e re d a r e:

A r e a

P a rt 1. A tl a nti c C o ast

P a rt 2. G ulf C o a st, M is sis si p pi R i v e r S y ste m , 

a n d A ntill e s

P a rt 3. G r e at L a k e s

P a rt 4. P a cific C o a st, A la s k a, a n d H a w aii 

P a rt 5. W ate r b o r n e C o m m e rc e of t h e U nite d 

S ta te s ( N ati o n al S u m m a ri e s)

B ot h t h e f o r ei g n a n d d o m e sti c c o m m e r c e of 

t h e U nite d S ta te s b y w ate r a r e i n cl u d e d. D at a 

o n t h e f o r ei g n c o m m e r c e w e re s u p pli e d t o t h e 

C o r p s of E n gi n e e rs b y t h e B u re a u of t h e C e n ­

s u s; d ata f o r t h e c o m pil ati o n of t h e d o m e sti c 

st ati sti c s w e re c oll e cte d b y t he s e v e r al o ff ic e s 

of t h e C o r p s of E n gi n e e rs , D e p art m e nt of t h e 

A r m y, i n c o m pli a n c e wit h v a ri o u s a cts of C o ng r e s s. T he p ri n ci p al p r o vis i o n g o v er n i n g t h e 

c oll e cti o n of t h e s e d at a i s i n cl u d e d i n t h e R i v er 

a n d H a r b o r A ct of S e pte m b er 2 2, 1 9 2 2:

S e c. 1 1. T h at o w n e r s, a g e n ts, m a s te r s, a n d cle r k s of

v e s s el s a n d o t h e r c r a ft pl yi n g u p o n t h e n a vi g a ble w ate rs

of t h e U ni te d S t a t e s, a n d all i n di vi d u als a n d c o r p o r a ti o n s

e n g a ge d i n t r a n s p o rti n g t h ei r o w n g o o ds u p o n t h e n a vi g a bl e

w a te r s o f t h e U ni te d S t a te s, s h all f u r n is h s u c h st ate m e n ts

r el a ti v e t o v e s s el s, p a s s e n g e r s, fr ei g h t, a n d t o n n a g e a a

m a y be r e q uir e d b y t h e S e c r e t a r y of W a r: P r o vi d e d,

t h at t h is p r o visi o n s h all n ot a p pl y t o t h o se r a fti n g l o g s,

e x ce p t u p o n a dir e c t r e q u es t u p o n t he o w ne r t o f u r n is h

s p e cific i n f o r m ati o n .

T h at e v e r y p e r s o n or p e r s o n s of fe n d i n g a g ai n st t he

p r o visi o n s of t h is se c ti o n s h all, f o r e a c h a n d e v e r y o ffe n s e, be li a ble t o a fi n e of > 1 0 0 or i m p ris o n m e n t n ot e x ­

ce e di n g t w o m o nt h s, t o be e n f o rc e d i n a n y dis tr ic t c o ur t

i n t h e U nite d S t a te s wit hi n w h o se te r rit o ri a l j u ris dic ti o n

s u c h o ff e n se m a y h a ve be e n c o m mitte d.

W hile t h e i n f o r m ati o n a s n o w c oll e cte d a n d 

c o m pil e d is d e si g n e d t o m e et t h e a d m i n i str a ­

ti v e re q uir e m e nts of t h e D e p art m e nt o f t h e 

A r m y i n c o n n e cti o n wit h t h e d uti e s a s si g n e d b y 

C o n g re s s, it als o p r o vi d e s u se f u l d at a f o r ot h er 

g o v er n m e nta l d e p a rt m e nts , c o m m e r cia l a n d 

s hi p pi n g c o n c e r n s, a n d ot h e rs i n te r e ste d i n 

tr a n s p o rta ti o n.

W ate r b o r n e t r a f fi c m o v e m e nts w e re r e p o rt e d 

t o t h e C o r p s o f E n gi n e e rs b y all v e s s el o p e r a t o r s 

of r e c o r d o n p r e s c ri b e d f o r m s a p p r o v e d b y t h e 

O ffic e of M a n a g e m e n t a n d B u d get u n d er t h e F e d ­

e r al R e p o rt s A ct o f 1 9 4 2 f o r t h o s e m o v e m e nts of 

t h eir v e s s e ls w hic h w e re cla s sif ie d a s d o m e sti c 

tr a f fi c; n a m el y, b et w e e n U nite d Sta te s p o rt s, 

c o nti n e nta l a n d n o n c o nti g u o u s, a n d o n t h e i n ­

la n d ri v e r s, c a n als , a n d c o n n e cti n g c h a n n els of

t h e U nite d S ta te s, P u e rt o Ric o, a n d t h e Vir gi n 

I sla n d s, e x cl u di n g t h e P a n a m a C a n al. T h e r e ­

p o rt s w e re g e n e ra ll y s u b m itte d o n t h e b a sis of 

a v e s s el m o v e m e nt c o m plete d i n o n e dir e cti o n 

a n d, f o r m o v e m e nts wit h c a r g o, t h e o ri g i n a n d 

d e sti n ati o n of t h e w ate r tr a n s p o rta ti o n of e a c h 

i n di v i d u al c o m m o dit y. I n c o m pili n g t h e d ata, 

t h e e nti re m o v e m e n t w as i n cl u d e d i n t h e y e a r 

i n w hic h t h e m o v e m e n t w as c o m ple te d e v e n 

t h o u g h t h e s hi p m e nt m a y h a v e o ri gi n ate d i n t h e 

p re c e di n g y e a r, e x c e pt t h at, b e g i n ni n g wit h c a l ­

e n d a r y e a r 1 9 6 1 st ati sti c s, a c u t o ff d ate o f 

2 8 F e b r u a r y w as e sta bli s h e d f o r t h e p r o c e s si n g 

of r e p o rt s fr o m v e s s el o p e r at o r s c o v e ri n g t h e 

p ri o r y e a r’s c o m ple te d m o v e m e nts. H e n ce, 

r e p o rt s of m o v e m e nts c o m ple te d i n 1 9 7 3 b ut 

n o t r e p o rt e d t o t h e C o r p s of E n gi n e e rs u ntil 

a fte r 2 8 F e b r u a r y 1 9 7 4 will be i n cl u d e d i n t h e 

n e x t y e a r’s , 1 9 7 4, st ati sti c s r a t h e r t h a n i n 

t his p u bli c ati o n, w hil e r e p o rt s of m o v e m e nts 

c o m ple te d i n 1 9 7 2 b u t r e p o rt e d t o t h e C o r p s 

a fte r 2 8 F e b r u a r y 1 9 7 3 a r e i n cl u d e d i n t h is 

p u bli c ati o n.

S p o n s o re d b y t h e O ffic e of S ta tis ti c al P oli c y, 

O ffic e of M a n a g e m e n t a n d B u d g et, a u nif o r m 

s y ste m of cla s sif ic ati o n f o r fr ei g ht w as d e v elo p e d wit h c o o p e ra ti o n of all F e d e r al a g e n cie s 

e n g a g e d i n c oll e cti n g a n d c o m pili n g d ata o n 

s h i p pi n g. T his cla s sif ic ati o n, t h e C o m m o dit y 

C la s sif ic ati o n f o r S h i p pi n g S ta tis ti c s, is u se d 

f o r d ata o n t h e f o re i g n a n d d o m e sti c c o m m e r c e 

p r e s e nte d i n t h e s e p u bli c ati o n s, alt h o u g h s o m e 

m i n o r m o dific ati o n s e xis t i n t h e f o re i g n d ata 

w hic h w e re n e c e s sit ate d b y B u re a u of t h e C e n ­

s u s p oli cie s a n d p r o c e d u re s.

T h e d o m e sti c tr a f fi c i n cl u d e s all c o m m e rcia l m o v e m e nts b et w e e n p oi n ts i n t h e U nit e d 

S ta te s, P u e rt o Ric o, a n d t h e V ir gi n Is la n d s. 

T ra ff ic wit h t h e P a n a m a C a n al Z o n e is tr e ate d 

a s f o r ei g n c o m m e r c e. C ar g o m o v e d f o r t h e 

m il it a r y a g e n cie s i n c o m m e r cia l v e s s e ls i s 

re p o rte d a s o r d i n a r y c o m m e r cia l c a r g o; m ili ­

t a r y c a r g o m o v e d i n D e p art m e nt o f D ef e n se 

v e s s e ls is o m itte d fr o m t h e s e st ati sti c s.

All m o v e m e nts b et w e e n t h e U nit e d S ta te s 

a n d f o r ei g n c o u ntr ie s a n d b et w e e n P u e rt o Ric o 

a n d V ir gi n Is la n d s, U. S. A., a n d f o r ei g n c o u n ­

t ri e s a r e cla s sif ie d a s f o re i g n tr a f fi c. T ra d e 

b et w e e n U nite d S ta te s t e r rit o ri e s a n d p o s s e s ­

si o n s, i.e . G u a m , W a k e, A m e ric a n S a m o a, e t c., 

a n d f o r ei g n c o u ntr ie s is e x cl u d e d.

T h e s e d at a a r e f u r n is h e d t o t h e C o r p s of 

E n gi n e e rs b y t h e B u re a u of t h e C e n s u s u n d er a 

w or k i n g a rra n g e m e nt s p o n s o re d b y t h e Offic e 

of S ta ti sti c al P oli c y, O ffic e of M a n a g e m e n t a n d 

B u d g et. T he d ata a r e c o nfi n e d t o m o v e m e nts 

b y ate r, a n d a r e re c o n cil a ble wit h p u bli s h e d 

r e p o rt s o f t h e B u re a u of t h e C e n s u s. S hi p m e nts 

of d o m e sti c m e rc h a n dis e a n d r e - e x p o rts o f f o r ­

ei g n m e rc h a n dis e a r e te r m e d e x p o rts . T he i m ­

p o rt s i n cl u d e i n b o u n d m e rc h a n dis e f o r d ir e ct 

c o n s u m pti o n a n d e ntri e s i n t o c u st o m b o n d e d 

st o ra g e a n d m a n u fa ct u ri n g w a re h o u s e s. I ntr a n ­

sit m e rc h a n dis e, d ef i n e d b y t h e B u re a u of t h e 

C e n s u s a s m e rc h a n dis e c o mi n g i n t o t h e U nite d 

Sta te s fr o m a f o re i g n c o u ntr y a n d s h i p p e d t o a 

f o r ei g n c o u ntr y wit h o ut ha vi n g b ee n e nte re d a s 

a n i m p o rt, i s tr e ate d a s a n i m p o rt ' w he n
2 3 5

VI W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 9 7 3

u nl o a d e d fr o m a v e s s el a n d a s a n e x p o rt w he n 

l o a d e d o n a v e s s el. E x p o rt s hi p m e nts f o r u se 

of t h e U nite d Sta te s A r m e d F o r c e s a b r o a d a r e 

e x cl u d e d fr o m t h e st ati sti c s a s a r e i m p o rt 

s hi p m e nts o n D e p art m e nt o f D efe n se o w ne d a n d 

o p e r ate d v e s s els . F o re i g n tr a d e d ata of t e r ­

rit o ri e s a n d p o s s e s si o n s ot h e r t h a n P u e rt o 

Ric o a n d t h e V ir gi n Is la n d s, w hic h a r e u n d er 

t h e j u ris dic ti o n of t h e D e p a rt m e nt of t h e I n ­

t e ri o r, w e re n ot f u r nis h e d t o t h e C o r p s of 

E n gi n e e rs b y t h e B u re a u of t h e C e n s u s a n d 

a r e e x c l u d e d fr o m t h e st ati sti c s of b ot h 

a g e n cie s.

E x p o rt s hi p m e nts u n d er t h e v a ri o u s f o r ei g n 

ai d p r o g r a m s o n D e p art m e nt of D efe n se o p e rate d v e s s els , eit h e r A m e ric a n Fla g c o m m e rcia l v e s s els u n d er ti m e, v o y a g e, o r s p ac e 

c h a rt e r o r v e s s els o w ne d a n d o p e r ate d b y t h e 

D e p art m e nt of D efe n se , a n d v a ri o u s it e m s 

(l is te d b y t h e C e n s u s) w hic h a ffe ct n ati o n al s e ­

c u rit y a r e n ot p u bli s h e d i n t e r m s of t h e i n divi d u al c o m m o ditie s s h i p p e d. I n ste a d, a l u m p ­

s u m t o n n a g e fi g u re is c o m pil e d a n d a p p e a r s i n 

t h e s e t a ble s a s c o m m o dit y c o d e 9 9 9 9, “ D e p a rtm e nt of D efe n se c o ntr oll e d c a r g o a n d S p ec ial 

C ate g o r y It e m s.”

T h e 1 9 7 3 st ati sti c s o n w ate r b o r n e e x p o rts 

of d o m e sti c a n d f o re i g n m e r c h a n dis e a n d n o nD e p art m e nt of D efe n se s hi p m e nts of S p e cia l 

C ate g o r y c o m m o ditie s r e fl e ct f u ll y c o m pil e d 

d ata f o r s hi p m e nts t o C a n a d a i n di v i d u all y v alue d at $ 2, 0 0 0 a n d o v er c o m bi n e d wit h e s ti ­

m ate d d ata f o r s hi p m e nts v al u e d $ 2 5 1 - 5 1, 9 9 9, 

b a s e d o n a 1 0 - p e rc e nt s a m ple of s u c h s hi p ­

m e nts . F o r c o u ntr ie s ot h e r t h a n C a n a d a, t h e 

e x p o rt st ati sti c s r e fle ct f u ll y c o m pil e d d ata 

f o r s hi p m e nts v al u e d $ 5 0 0 a n d o v er c o m bi n e d 

wit h e sti m ate d d ata f o r s hi p m e nts v al u e d $ 2 5 1 - 

$ 4 9 9, b a s e d o n a 5 0 - p e rc e nt s a m ple of s u c h 

s hi p m e nts. D at a o n e x p o rt s hi p m e nts v al u e d 

u n d er $ 2 5 1 a r e e x cl u d e d fr o m t h is r e p o rt.

I m p o rt st ati sti c s f o r 1 9 7 3 e x cl u d e d ata o n 

s hi p m e nts v al u e d $ 2 5 0 a n d u n d e r r e p o rt e d o n 

b o t h f o r m al a n d i n f o r m al e n tri e s. I n f o r m al 

e n tri e s g e n e ra ll y c o nta i n ite m s v al u e d n ot m o re 

t h a n $ 2 5 0.

F o re i g n tr a d e d ata f u r nis h e d b y C e n s u s a r e 

b a s e d o n r e p o rt s p r o c e s s e d f o r C e n s u s ’ m o nt h l y 

d ata J a n u a r y t h r o u g h D e c e m b e r a n d r e p r e ­

s e nt st ati sti c al y e a r r at h e r t h a n c ale n d a r y e a r 

d ata .

T h e fi g u r e s o n t o n - m il e s a r e c o m p ute d b y 

t h e C o r p s of E n gi n e e rs ; e a c h t o n - m il e fi g u re 

r e fl e c ts o n l y t h e dis ta n c e e a c h t o n of c a r g o, 

f o r ei g n o r d o m e sti c, m o v e d o n t h e w ate r w a y 

d e s c ri b e d i n t h e s e cti o n f o r w hic h t h e fi g u r e is 

r e p o rte d. T he s u m m a r y of t o n - m ile s f o r t h e 

e n tir e U nite d Sta te s c o nta i n e d i n P a rt 5 i n ­

cl u d e s m o v e m e nts o n t h e i n la n d w ate r w a y s a n d 

G r e at L a k e s S y ste m o nl y; c a r g o e s, f o r ei g n a n d 

d o m e sti c, of d e e p - s e a v e s s e ls a r e i n cl u d e d 

o n l y f o r t h at p o rti o n of t h e v o y a g e t h at o c ­

c u r r e d i n i n la n d ri v e r s, c a n als , o r c o n n e cti n g c h a n n els — n eit h e r t h e c a r ri a g e o n t h e 

o c e a n s a n d t h e G ul f of M e x ic o n o r t h e t o n ­

n a g e m o v e d a m o n g t h e t e r rit o ri e s a n d p o s s e s ­

si o n s, • *I n tr a t e r rit o r y T r a ffi c,” a r e ta k e n i nt o 

a c c o u nt.

T ri p s of v e s s els at p o rts a r e r e p o rt e d a s

i n b o u n d, w hic h r e p r e s e n t s t h e n u m b er of e n ­

tr a n c e s o r a r ri v a l s; a n d o u t b o u n d , w hi c h 

r e p r e s e n ts t h e n u m b e r of cl e a r a n c e s o r d e ­

p a rt u r e s. O n t h e w ate r w a y s, t h e n u m b er of 

tri p s si g nif ie s t h e n u m b e r of i n di v i d u al v e s s el 

m o v e m e nts o n t h e w ate r w a y i n e a c h dir e cti o n; 

a si n gle tri p is c o u nte d f o r e a c h v e s s el u si n g 

t h e w ate r w a y i n a c o nti n u o u s dir e cti o n r e g a r d ­

l e s s of t h e n u m b er of st o p s m a d e o n t h e w a te rw a y. T h e n u m b er of tri p s re p o rte d i n cl u d e s 

v e s s e ls e n g a g e d i n f o r ei g n tr a d e, w hic h a r e 

f u r nis h e d b y t h e B u re a u of t h e C e n s u s b a s e d o n 

C u st o m s E ntr a n c e a n d C le a r a n c e f o r m s. C o m ­

ple te i n f o r m ati o n o n t ri p s of v e s s e l s, f e r r y a n d 

o t h e r, n ot re q uir e d t o cl e a r f o r m all y w a s n ot 

f u r nis h e d b y t h e B u re a u of C u st o m s b e g i n ni n g 

wit h d ata f o r t h e y e a r 1 9 6 9.

C u st o m s re g ula ti o n s wit h r e g a r d t o e ntr a n c e 

a n d cle a r a n c e d o n ot p r o vi d e all d ata a s r e ­

q uir e d b y t h e C o r p s of E n gi n e e rs ; w h ere s u p ­

ple m e nta r y i n f o r m ati o n c o u l d b e o btai n e d , 

a dj u st m e nts w e re m a d e b y t h e C o r p s of E n gin e e r s t o r e fle ct t h e tr u e v ol u m e of v e s s el 

m o v e m e nts i n a n d o ut of c h a n n els a n d h a r b o r s 

re p o rte d i n t h e s e p u bli c ati o n s.

E x cl u d e d fr o m t h e s e fi g u r e s a r e U nite d Sta te s 

A r m y a n d N a v y v e s s e l s, s u c h a s A r m y t r a n s ­

p o rts a n d N a v y t a n k e r s e nte ri n g o r cle a ri n g 

wit h o ut c o m m e r cia l c a r g o, a n d f o r ei g n m il it a r y 

a n d n a v al c r a ft.

S o m e d u pli c ati o n m a y e xi st i n t h e n u m b er of 

v e s s el tri p s at p o rts f o r t h o s e A m e ric a n Fla g 

v e s s e ls e n g a gi n g i n b ot h f o r ei g n a n d d o m e sti c 

tr a d e o n t h e s a m e v o y a g e. Si n ce m o v e m e nts 

of v e s s els a n d c a r g o b et w e e n t w o U nit e d Sta te s 

p o rt s a r e r e p o rte d t o t h e C o r p s of E n gi n e e rs , 

a n d e ntr a n c e a n d cl e a r a n c e m u st be o btai n e d 

fr o m C u st o m s at e a c h p o rt of c all w hil e f o re i g n 

c a r g o e s a r e a b o a r d , t h o s e v e s s e ls e n g a g e d i n 

c o m bi n e d f o r ei g n a n d d o m e sti c m o v e m e nts m a y 

b e re p o rte d t w ic e.

D ra ft, i n all c a s e s, is t h e dis ta n c e fr o m w ate r 

le v el t o t h e l o w e st p oi n t of t h e v e s s el u n d e rw ate r a n d is m e a s u r e d w he n t h e v e s s el is c o m ­

ple te l y st o p p e d —eit h e r ti e d t o a d o c k o r at a n ­

c h o r. T h e d r a ft u n d e r w a y — w hil e t h e v e s s el is 

m o vi n g —is d e p e n d e nt o n m a n y f a ct o r s, s u c h a s 

s p ee d of t h e v e s s el a n d d e pt h a n d wi dt h of t h e 

c h a n n el, a n d v a rie s fr o m c h a n n el t o c h a n n el. 

C h a n n el d e p t h of at l e a st 3 f e et m o re t h a n t h e 

d r a ft of a v e s s el at d o c k is r e q uir e d w h ere v e s ­

s els m u st b e o p e r ate d at sl o w s p e e d. C h a n nel 

d e p t h of 5 fe et m o re t h a n t h e d r a ft of a v e s s el 

at d o c k is r e q uir e d i n c h a n n els w h e re v e s s els 

c a n be o p e r ate d at m o r e e ffi cie nt a n d e c o n o m ic al s p e e d s.

I n cl u d e d i n t h e d ata o n n u m b er o f p a s s e n ­

g e r s a r ri vi n g a n d d e p a rt i n g b y w ate r o n t h e 

v a ri o u s w ate r w a y s a n d c h a n n els a n d at t h e 

p o rt s a r e p a s s e n g e r s e n g a g e d i n f o r ei g n tr a v el. 

D at a o n f o re i g n p a s s e n g e r s w e re o bta i n e d fr o m 

t h e I m m i g ra ti o n a n d N at u r ali z ati o n S e r v ic e, 

D e p art m e nt of J u stic e, e x c e pt f o r p a s s e n g e r s 

b et w e e n C a n a d a a n d t h e U nit e d S ta te s i n t h e 

e at L a k e s a n d A la s k a a r e a s. I n t h e s e a r e a s, 

t h e C o r p s of E n gi n e e rs w as a ut h o ri z e d t o o b ­

ta i n t h e re q uir e d i n f o r m ati o n fr o m s o u rc e s 

a v ail a ble t o t h e C o r p s.

F o re i g n d ata o n v a ri o u s c o n n e cti n g c h a n n els

5 4 - 2 3 9 0 - 7 5 - 1 6
2 3 6

I N T R O D U C TI O N VI

h a v i n g n o te r m i n al f a cilit i e s, s u c h a s C a p e C o d 

C a n al, a n d C h e s a p e a k e a n d D ela w are C a n al, 

a r e n ot a v ail a ble fr o m C e n s u s r e c o r d s. H e n ce, 

t h e C o r p s of E n gi n e e rs d e v el o p e d s u c h d ata 

fr o m ca n al r e c o r d s.

S E C T I O N 1 o f t h i s p u bli c ati o n p re s e nts 

c o m p a ra ti v e sta te m e nts of c o m m e r c e f o r p r e ­

ce di n g y e a rs a n d t h e d eta il e d fr ei g ht tr a ffi c 

f o r c ale n d a r y e a r 1 9 7 3 of h a r b o r s a n d w ate rw a y s i n t h e a r e a c o v e re d b y t h is P a rt of t h e 

st ati sti c s s e ri e s. S E C TI O N 2 p r e s e nts d at a 

o n t h e m o v e m e nts of v e s s els at t h e h a r b o rs 

a n d o n t h e w ate r w a y s i n cl u d e d i n t h e fir st 

s e cti o n.

T E R M S F O R KI N D O F T R A F FI C

T he t e r m s a p pli e d t o t h e ki n d s of tr a ffic a s 

f o u n d i n t h e s e p u bli c ati o n s a r e e x pla i n e d a s 

f o ll o w s:

P e rta i n i n g t o P o rt s

I m p o rt s a n d e x p o rt s. — T h e s e t e r m s a p pl y t o 

tr a ffi c b et w e e n t h e U nit e d Sta te s a n d f o re i g n 

p o rt s, i n cl u di n g t h e C a n al Z o n e. T ra ff ic of 

U. S. G r e at L a k e s p o rt s wit h C a n a d a is s u p ­

ple m e nte d b y t h e t e r m “ C a n a dia n ” t o d iff e re nti ate it fr o m o v e r s e a s tr a f fi c.

C o a st w is e r e c ei pt s a n d s hi p m e nts. — T h es e 

t e r m s a p pl y t o d o m e sti c tr a f fi c re c ei v i n g a 

c a rri a g e o v er t h e o c e a n, o r t h e G ul f of M e xic o, 

e. g ., Ne w O rle a n s t o B alt i m o r e, Ne w Y or k t o 

P u ert o Ric o, S a n F r a n cis c o t o H a w aii, or 

P u ert o Ric o t o H a w aii. T ra ff ic b et w e e n G re at 

L a k e s p o rt s a n d s e a c o a st p o rt s, w he n ha vi n g 

a c a rri a g e o v er t h e o c e a n, is als o te r m e d 

“ c o a st w is e.” T he C h e s a p e a k e Ba y a n d P u g et 

S o u n d a r e i n te r n al b o die s of w ate r: t h e r e f o r e, 

tr a ffic c o nfi n e d t o t h e s e a r e a s i s “ i n t e r n al ” 

r at h e r t h a n “ c o a st w is e.”

L a k e wis e r e c ei pt s a n d s hi p m e nt s. — T h es e 

t e r m s a p pl y t o tr a f fi c b et w e e n U nit e d State s 

p o rt s o n t h e G r e at L a k e s S y ste m . T h e G re at 

L a k e s S y ste m is tr e at e d a s a s e p a r at e s y ste m 

r at h e r t h a n a s a p a rt of t h e i n la n d s y ste m .

I n te r n al r e c e i p t s a n d s hi p m e nts. — T h es e 

t e r m s a p pl y t o tr a ffic b et w e e n p o rts o r la n di n g s

w h e re i n t h e e n tir e m o v e m e nt ta k e s p la c e o n i n ­

la n d w ate r w a y s. A l s o te r m e d i n te r n al a r e 

m o v e m e nts i n v ol v i n g c a rri a g e o n b o t h i nla n d 

w ate r w a y s a n d w ate r s of t h e G re at L a k e s: i n ­

la n d m o v e m e nts t h at c r o s s s h o rt str et c h e s of 

o pe n w ate r s w hic h li n k i n la n d s y ste m s; m a ri n e 

p r o d u cts, sa n d a n d g ra v el ta k e n dir e ctl y fr o m 

b e d s of t h e o c e a n s, t h e G ul f of M e xic o a n d i m ­

p o rt a nt a r m s t h ere o f; a n d m o v e m e nts b et w ee n 

o ff s h o re i n sta ll ati o n s a n d i nla n d w ate r w a y s.

L o c al. — M o v e m e n ts of fr ei g ht wit hi n t h e c o n ­

fi n e s of a p o rt w h et h er t h e p o rt ha s o nl y o n e o r 

s e v e r al a r m s o r c h a n n els, e x c e pt c a r - f e r r y a n d 

g e n e ra l f e r r y, a r e te r m e d “ l o c al. ” T h e t e r m 

is als o a p pli e d t o m a ri n e p r o d u cts, sa n d, a n d 

g ra v el ta k e n dir e ctl y fr o m t h e G r e at L a k e s.

I n tr a t e r rit o r y r e c e i p t s a n d s hi p m e nts . — 

T h e s e t e r m s a p pl y t o tr a f fi c b et w e e n p o rt s i n 

P u e rt o Ric o a n d t h e V ir gi n Is la n d s, U. S. A., 

w hic h a r e c o n si d e r e d a s a si n gle u nit.

P e rta i n i n g t o R i v e r s, F e d e r al a n d 

P ri v ate C a n als, C o n n ec ti n g C h a n n el s,

a n d I ntr a c o a sta l W at er w a y s

T he t e r m s “ i m p o rt s,” “ e x p o rts ,” “ c o a stwis e r e c e i p t s, ” “ c o a st w is e s hi p m e nts ,” “ i n ­

t e r n al r e c e i p t s, ” a n d “ i n te r n al s hi p m e nts ” 

a r e u s e d a s at p o rts .

U p b o u n d a n d d o w n b o u n d. — T h e s e t e r m s a r e 

a p pli e d t o m o v e m e nts wit hi n t h e c o n fi n e s of a 

ri v e r, i ntr a c o a st al w ate r w a y, c a n al, o r a s e g ­

m e n t of o n e of t h e s e c h a n n els a s d e s c ri b e d i n 

t h e “ S ec ti o n i n cl u d e d ” f o r e a c h c h a n n el.

I n b o u n d a n d o ut b o u n d. — T ra ff ic m o v i n g fr o m 

o n e w ate r w a y i n t o a n ot h e r is te r m e d “ o utb o u n d” i n t h e c a s e of t h e s hi p pi n g w ate r w a y 

a n d “ i n b o u n d” wit h r e s p e ct t o t h e re c ei v i n g 

w ate r w a y.

T hr o u g h tr a f fi c. — T r a ffic m o v i n g t h r o u g h a 

w ate r w a y t o a n d fr o m p oi n ts o n ot h er w a te rw a y s is te r m e d “ t h r o u g h t r a f fi c. ”

G e n era l T e r m s

F re i g ht r e p o rt e d u n d er t h e t e r m s “ c a r f e r r y ” 

o r “ g e n e ra l f e r r y ” is n ot dir e ctl y i n cl u d e d i n 

t h e p o rt o r c h a n n el t o n n a g e, b u t is s e p a r ate l y 

sta te d a n d ta b ula te d.

C O M M O DI T Y C L A S SI FI C A TI O N F O R S H I P P I N G S T A TI S TI C S

N ot e: T h e c o m m o dit y d es cri pti o n s us e d i n t h e st ati s ­

ti ca l ta bl es i n t his p u blic ati o n are a b br e v iate d f o r m s —t o 

c o ns er ve pri nti n g s p ac e — of t h e f oll o wi n g c o m m o diti es. 

C o de

It e m Na m e

Gr o u p 0 1 — Fa r m P r o d u ct s

0 1 0 1 C ott o n, ra w

0 1 0 2 B arle y a n d r y e

0 1 0 3 C o r n

0 1 0 4 Oats

Ite m Na m e

Gr o u p 0 1 — C o nti n ue d

0 1 0 5 Ri ce

0 1 0 6 S o r g h u m grai n s

0 1 0 7 W he at

0 1 1 1 S o y b ea n s

0 1 1 2 Fl a x se e d

0 1 1 9 Oil se e d s, n ot el se w h er e cl as si fi e d 

0 1 2 1 T o b ac c o, le af 

0 1 2 2 Ha y a n d f o d d er
2 3 7

VIII W A T E R B O R N E C O M M E R C E O F

C O M M O DI T Y

T H E U NI T E D S T A T E S, 1 9 7 3

F O R S H I P PI N G S T A T I S T I C S

It e m N a me

It e m N a me

Gr o u p 0 1 — C o nti n u e d

0 1 2 9 Fie l d c r o p s, n ot els e w h e r e cl a s sif ie d

0 1 J 1 F re e h fr uit s a n d t r e e n u ts. e x ce pt b a n a n a s a n d

pl a nt ai n *

0 1 3 2 B a n a n a e a n d pl a n t ai n e

0 1 3 3 C off e e, g r ee n a n d r o a et e d (i ncl u di n g i n st a n t)

0 1 3 4 C oc o a be a ne

0 1 4 1 F r e e h a n d fr o x e n v e g et a ble e

0 1 5 1 Li v e a ni m als (li v e st o c k ). e x ce pt b o o a ni m ate, c ate,

d o g e. etc.

0 1 6 1 A ni m al e a n d a n i m al pr o d u ct e. n o t ele e w h e re

cl a e elfie d

0 1 9 1 M ie ce ll a n e o u e f a r m pr o d uc te

Gr o u p 0 8 — F o re et Pr o d uc te

0 8 4 1 C r u de r u b b er a n d allie d g u ms

0 8 6 1 F o r e et pr o d uc t *, n ot ele e w h e r e cl a e elfie d

Gr o u p 0 9 - F re e h Fle h a n d Ot he r M ari n e P r o d uc te

0 9 1 1 F re e h fis h, e x ce p t s h ell fi s h

0 9 1 2 S h ell fi s h , e xc e p t pr e p ar e d or p r e se r v e d

0 9 1 3 M e n h a de n

0 9 3 1 M ari n e s h ell s, u n m a n uf ac t u re d

Gr o u p 1 0 — M et allic O re s

1 0 1 1 Ir o n o r e a n d c o n c e n tr at e s

1 0 2 1 C o p p er or e a n d c o n c e n tr ate s

1 0 5 1 B a u x it e a n d ot he r al u mi n u m or es a n d c o n c e n tr ate s

1 0 6 1 M a n g a ne se o r e s a n d c o n c e n tr at e s

1 0 9 1 N o n fe rr o u s m et al o r e s a n d c o n c e n tr ate s, n o t els e *

w h er e cl a s sif ie d

Gr o u p 1 1 — C o al

1 1 2 1 C o al a n d li g n it e

Gr o u p 1 3 — Cr u de P et r o le u m

1 3 1 1 C r u de pe tr ol e u m

Gr o u p 1 4 — N o n m et allic M i n e r a ls, E xc e p t F uels

1 4 1 1 Li m e st o n e fl u x a n d c alc a r e o u s st o n e

1 4 1 2 B uil di n g st o n e, u n w or ke d

1 4 4 2 S a n d, g r a v el a n d c r u s h e d r o c k

1 4 5 1 Cl a y, c e r a m ic a n d r efr a ct o r y m ate ri als

1 4 7 1 P h o s p h a te r o c k

1 4 7 9 N at ur al f e r t i l i s e r m a te ri a ls, n ot els e w h er e

cl a s sif ie d

1 4 9 1 « S alt

1 4 9 2 S u l p h u r, dr y

1 4 9 3 S u l p h u r, li q ui d

1 4 9 4 G y p s u m, cr u d e a n d pl a st e r s

1 4 9 9 N o n m et allic m i n e r als, e x ce pt f u els, n o t e l s e ­

w h er e cl a s sif ie d

Gr o u p 1 9 — Or d n a n ce a n d A c c e s s o rie s

1 9 1 1 O r d n a nc e a n d a c c e s s o ri e s

Gr o u p 2 0 — F o o d a n d Ki n d re d P r o d uc ts

2 0 1 1 M e at, fr e s h, c hille d, or fr o x e n

2 0 1 2 Me at a n d m e a t pr o d u ct s pr e p ar e d or p r e se r v e d .

i n cl u di n g c a n n e d m e a t pr o d uc ts

2 0 1 4 T all o w, a n i m al f a ts a n d oil s

2 0 1 5 A ni m al b y - p r o d u cts, n ot els e w h e r e cl a ss ifie d

2 0 2 1 D ai r y p r o d u ct s, e x ce pt dr ie d mil k a n d c re a m

2 0 2 2 D ri e d mil k a n d c re a m

2 0 3 1 Fis h a n d fi s h p r o d u ct s. I n cl u di n g s h ell fi s h, p r e ­

p a re d or p r e se r v e d

2 0 3 4 V e g et a ble s a n d p r e p a r ati o n s, c a n ne d a n d o t h e r w is e

p re p ar e d a n d p r e se r v e d

2 0 3 9 F r u it s a n d fr uit a n d v e g et a ble j u ic e s, c a n n e d a n d

ot h e r w is e pr e p ar e d or p r e se r v e d

Gr o u p 2 0 — C o n ti n ue d

2 0 4 1 W he a t fl o ur a n d se m oli n a

2 0 4 2 P re p a r e d a n i m al fe e d s

2 0 4 9 G r ai n m ill pr o d u ct s, n ot els e w h e r e cl a s sif ie d

2 0 6 1 S u g a r

2 0 6 2 M ol a ss e s

2 0 8 1 Alc o h oli c b e v er a g es

2 0 9 1 V e g et a ble o il s, all g r a d es ; m ar g a ri n e a n d s h or te ni n g

2 0 9 2 A ni m al oil s a n d f a ts, n ot els e w h e r e cl a s sif ie d, i n ­

cl u d i n g m ari n e

2 0 9 4 G r o c e rie s

2 0 9 5 Ice

2 0 9 9 M is ce ll a n e o u s f o o d pr o d uc ts

Gr o u p 2 1 — T o b ac c o P r o d uc ts

2 1 1 1 T o b a cc o m a n uf a ct u re s

Gr o u p 2 2 — B a si c T e xtile s

2 2 1 1 B a si c te x tile pr o d u ct s, e x ce pt te x tile fi b e rs

2 2 1 2 T e x tile fi b e r s, n ot els e w h e r e cl a s sif ie d

Gr o u p 2 3 — A p p a rel a n d Ot he r Fi n is h e d T e xtile

P r o d u cts, I n cl u di n g K nit

2 3 1 1 A p p ar el a n d ot he r fi nis h e d te x tile pr o d u ct *. I ncl u d i n g k nit

Gr o u p 2 4 — L u m be r a n d W o o d P r o d uc ts

E xc e p t F ur ni t u re

2 4 1 1 L o gs

2 4 1 2 R afte d l o g s

2 4 1 3 F uel w o o d, c h a r c o al, a n d w as te s

2 4 1 4 Ti m b er , p o s ts , p ole s, pili n g, a n d ot he r w o o d i n

t h e r o u g h

2 4 1 5 P ul p w o o d, l o g

2 4 1 6 W o o d c hi p s, st a v e s, m ol di n gs, a n d e x c els i o r

2 4 2 1 L u m b er

2 4 3 1 V e n ee r, pl y w o o d, a n d ot he r w or ke d w o o d

2 4 9 1 W o o d m a n u f a ct u re s, n ot els e w h e r e cl a s sif ie d

Gr o u p 2 5 — F ur ni t u re a n d Fi x t u re s

2 5 1 1 F ur ni t u re a n d fi xt u r es

Gr o u p 2 6 — P ul p, P a p er a n d Alli e d P r o d uc ts

2 6 1 1 P ul p

2 6 2 1 St a n d a r d ne w s p ri nt p a pe r

2 6 3 1 P a p er a n d p a pe r b o a r d

2 6 9 1 P ul p, p a pe r a n d p a pe r b o a r d pr o d u ct s, n ot e l s e ­

er e cl a s sif ie d

Gr o u p 2 7 — Pri n te d M atte r

2 7 1 1 P ri n te d m at te r

Gr o u p 2 8 — C h e mic al s a n d Allie d P r o d uc ts

2 8 1 0 S o di u m h y d r o xi de (c a u stic s o d a)

2 8 1 1 C r u de pr o d uc te fr o m c o al t a r. p etr ole u m, a n d

n at u r al g a s. e x ce pt be n x e n e a n d t ol u e n e

2 8 1 2 D y e s, o r g a n ic pi g m e n t, d y e i n g a n d t a n ni n g

m ate ri a ls

2 8 1 3 Alc o h ol s

2 8 1 6 R a d i o ac ti ve a n d a ss o ci a te d m a te ri a ls, i n cl u di n g

w a st e s

2 8 1 7 Be n x e n e a n d t ol u e n e, c r u d e a n d c o m m e r ci a ll y p u re

2 8 1 8 S u l p h u ri c aci d

2 8 1 9 B a si c c h e m ic als a n d b a * lc c h e m ic al pr o d u ct e. n o t

els e w h e r e cl a s sif ie d

2 8 2 1 P l a stic m a te ri a ls, re ge n e r a te d c ell ul o se a n d s y n ­

t h eti c r s si n s. i n cl u di n g f il m , s h ee ti n g, a n d

l a m i n ate s

2 8 2 2 S y nt h etic r u b b er

2 8 2 3 S y n t h etic ( m a n - m a d e) fi b er

Se e f o ot n ot e at e n d of C o m m o d it y C l a ssific a ti o n.
I NT R O D U C TI O N I X

C O M M O D I T Y C L A S SI F I C A T I O N F O R S H I P PI N G S T A TI S TI C S

It e m N a me It e m N a me

C r o u p 2 8 — C o n ti n ue d

2 8 3 1 Dr u g s ( b i o l o gic al p r o d u ct s, m e d ici n al c h e m ic als.

b ot a n ic al p r o d u c t s a n d p h a r m a c e u t i c a l

p r e p a r a ti o n s)

2 8 4 1 S o a p, d e te r g e n ts, a n d cl e a ni n g pr e p ar ati o n s; p e r ­

f u m es, c o s m e ti c s a n d ot he r t o il e t p re p a r a ti o n s

2 8 5 1 P ai n ts, v a r nis h e s, l a c q u er s, e n a m el s, a n d allie d

pr o d uc ts

2 8 6 1 G u m a n d w o o d c h e m ic als

2 8 7 1 N i t r o g e n o u s c h e m i c a l f e r tili s e r s, e x ce pt

m i x t u re s

2 8 7 2 P o t a s sic c h e m ic al f e r ti li z e r s, e x ce pt mi x t u re s

2 8 7 3 P h o s p h a ti c c h e m ic al f e r tili s e r s, e x ce pt m i x t u re s

2 8 7 6 I n se c ti ci d e s, f u n g i c i d e s , p e s t i c i d e s , a n d

disi n fe ct a n ts

2 8 7 9 F e r tilis e r s a n d f e r ti li s e r m a te ri a ls, n ot els e w h e r e

cl a s sif ie d

2 8 9 1 M is ce ll a n e o u s c h e m ic al pr o d uc ts

Cr o u p 2 9 — Pe tr ole u m a n d C o al P r o d uc ts

2 9 1 1 G a s o li n e, i n cl u di n g n a t u r al g a s o li n e

2 9 1 2 Je t f u el

2 9 1 3 K er os e n e

2 9 1 4 D is till a te f u el oil

2 9 1 5 R esi d u al f u el oil

2 9 1 6 L u bric ati n g oil s a n d g r e a se s

2 9 1 7 N a p ht h a, m i n er al s p ir it s, s ol v e n ts , n ot els e w h e r e

cl a s sif ie d

2 9 1 8 A s p h al t, t a r, a n d pi tc he s

2 9 2 0 C o ke, i n cl u di n g pe tr ole u m c o ke

2 9 2 1 Li q u efie d p etr ole u m g a s e s, c o al g a s e s, n a t u r al

g a s, a n d n a t u r al g a s li q ui ds

2 9 5 1 A s p h alt b u il d i n g m ate ri als

2 9 9 1 P etr ole u m a n d c o al pr o d u ct s, n ot e l s e w h e r e

cl a s sif ie d

Gr o u p 3 0 — R u b b er a n d M is ce ll a n e o u s

P l a stic s P r o d uc ts

3 0 1 1 R u b b er a n d m is c ell a n e o u s pl a st ic s pr o d uc ts

Gr o u p 3 1 — L e a t h er a n d L e a t h er P r o d u ct s

3 1 1 1 L e a t h er a n d le at h er pr o d uc ts

Gr o u p 3 2 —St o n e. Cl a y, G l a s s, a n d

C o n cr et e P r o d uc ts

3 2 1 1 Gl a ss a n d gl a s s pr o d uc ts

3 2 4 1 B u il di n g ce m e n t

3 2 5 1 Str u ct u r a l cl a y pr o d u ct s, i n cl u di n g r e fr a c t o rie s

3 2 7 1 Li m e

3 2 8 1 C ut st o n e a n d st o n e pr o d uc ts

3 2 9 1 M is ce ll a n e o u s n o n m et alli c m i n er al pr o d uc ts

Gr o u p 3 3 — Pri m a r y M et al P r o d uc ts

3 3 1 1 Pi g ir o n

3 3 1 2 Sl a g

3 3 1 3 C o ke (c o a l a n d pe tr ol e u m ), pe tr ole u m pit c h e s a n d

a s p h alt s, a n d n a p ht h a a n d s o l v e n ts

3 3 1 4 Ir o n a n d s t e el i n g ots, a n d ot he r p ri m a r y f o r m s,

i n cl u di n g bl a n ks f o r t u b e a n d pi pe, a n d s p o n ge

ir o n

3 3 1 5 Ir o n a n d s t e el b a r s, r o d s, a n gle s, s h a pe s a n d s e c ­

ti o n s, i n cl u di n g s h ee t pili n g

3 3 1 6 Ir o n a n d s t e el pl a te s a n d s h ee ts

3 3 1 7 Ir o n a n d s t e el pi pe a n d t u b e

3 3 1 8 F e r r o all o y s

3 3 1 9 P ri m a r y ir o n a n d s t e el pr o d u ct s, n ot els e w h e r e

cl a s sif ie d, i n cl u di n g c a sti n g s i n t h e r o u g h

Gr o u p 3 3 — C o n ti n ue d

3 3 2 1 N o n fe rr o u s m e t a l s p ri m ar y s m elt e r pr o d u ct s,

b a si c s h a p e s, w ir e, c a sti n g s a n d f o r g i n g s, e x ce pt

c o p p er, le a d, zi nc a n d al u mi n u m

3 3 2 2 C o p p er a n d c o p p er all o y s, w he t h er or n ot r efi n e d,

u n w o r k e d

3 3 2 3 Le a d a n d zi nc i n cl u d i n g all o y s, u n w o r k e d

3 3 2 4 Al u m i n u m a n d al u mi n u m all o y s, u n w or ke d

Gr o u p 3 4 — F a b ri c a te d Me t al P r o d u cts,

E x ce pt O r d n a nc e, M ac hi n er y, a n d

T r a ns p or t a ti o n E q ui p m e n t

3 4 1 1 F a br ic ate d m et al pr o d u ct s, e x c e p t or d n a n ce,

m ac hi n er y, a n d tr a n s p o rt ati o n e q ui p m e n t

Gr o u p 3 5 — M a c hi n er y, E xc e p t E le c tr ic al

3 5 1 1 M ac hi ne r y, e x ce pt ele c tr ic al

Gr o u p 3 6 — Ele c tr ic al M ac hi n er y,

E q ui p m e nt a n d S u p p lie s

3 6 1 1 E le c tr ic al m ac hi n er y, e q ui p m e n t a n d s u p plie s

Gr o u p 3 7 — Tr a n s p or t a ti o n E q ui p m e n t

3 7 1 1 M ot or v e hic le s, p a rt s a n d e q ui p m e n t

3 7 2 1 Air cr aft a n d p a rt s

3 7 3 1 S hi p s a n d b o at s

3 7 9 1 M is ce ll a n e o u s tr a n s p o rt ati o n e q ui p m e n t

Gr o u p 3 8 —I n st r u m e n ts, P h o t o gr a p hi c a n d

O ptic al G o o ds, W a tc h es a n d Cl o c k s

3 8 1 1 I n st r u m e n ts, p h ot o g r a p h ic a n d o p t i c a l g o o d s,

w at c h es a n d cl o c k s

Gr o u p 3 9 — M is ce ll a n e o u s P r o d uc ts of M a n uf ac t u ri n g

3 9 1 1 M is ce ll a n e o u s pr o d uc ts of m a n uf ac t u ri n g

Gr o u p 4 0 — W aste a n d Sc r a p M ate ri als

4 0 1 1 Ir o n a n d s t e el sc r a p

4 0 1 2 N o n fe rr o u s m et al sc r a p

4 0 2 2 T e xtile w as te, sc r a p, a n d s w ee pi n gs

4 0 2 4 P a p e r w as te a n d sc r a p

4 0 2 9 W aste a n d sc r a p, n ot els e w h e r e cl a s sif ie d

Gr o u p 4 1 — S p ec i al Ite m s

4 1 1 1 W ate r

4 1 1 2 M is ce ll a n e o u s s h i p m e n t s n ot i d e n ti fi a b le b y

c o m m o dit y

4 1 1 3 L C L fr ei g ht

4 1 1 8 M ate ri als u se d i n w at er w a y i m p r o ve m e n t. G o v er nm e nt m ate ri als

9 9 9 9 • * D e p ar t m e n t of D ef e n se c o ntr oll e d c a r g o a n d s p e ­

ci a l c ate g o r y it e m s

* S t a ti st ic s o n s a lt i n t h is p u blic ati o n a r e i n cl u de d

wit h " N o n m et a llic m i n e r als, e x ce pt f u els, n ot els e w h e r e

cl a s sif ie d, " c o m m o d it y c o de 1 4 9 9. t o a v oi d dis cl o s u r e

o f i n di vi d u al c o m p a n y o p er ati o n s.

• * C a r g o es e x p o rt e d o n D e p ar t m e n t of D ef e n se c o n ­

tr oll e d v e s s el s ( ot h er t h a n g o o d s f o r t h e u se of U. S.

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s h i p m e n ts of m ilit a r y c o m p o ne nt it e m s ( a b b re vi at e d S CI)

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2 8 71 NI T R O O E N O U S C H E M F E R TI LI Z E R S.........................

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0 1 33 C O F F E E............................................

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B A S I C T I W T I u l M O O U C T S . . . . . . . . .. . .

T E X T I L E F I B ER S , N E C . . . . . . . . . . . . . . .

A M R A R E L — — — — — . . . . . . . . . . . . .

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M O O D M A N U F A C T UR E S , M E C . . . . . . . . . . . .

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r o t a s s i c c h e m f e r t i l i z e r s . . . . . . .

I N S E CT I C I DE S , D I S I N F E C T A N T S . . . . . .

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M I S C E L L A N E O U S C H E M I C A L R R O O . . . . . .

D I S T I L L A T E F U E L O I L . . . . . . . . . . . . . .

r e s i d u a l f u e l O I L . . . . . . .. . . . . . . . ..

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l e a t h e r a n d l e a t h e r r r o o u c t s . . . . .

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N O N F E R R O U S M E T A LS , N E C . . . . . . . . . . .

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M A N S A N E S E O R E S, C O N C E N T R A T E S.......................

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C O AL * N D Ll O NI T E...............................................

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F E R TI LI Z E R A R D M A T E RI A L S, N E C.

MI S C E L L A N E O U S C Hf Hl C a u F R O O. —

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j e t r o ll.........................................-

K E R O S E N E-------------- - -------- — — ...

DI S TI L L A T E f u e l o i l ....................

R E SI D U A L F U E L OI L........................

L U B RI C ATI N G OI L S A N D G R E A S E S*•

N A F A, R E T R O E U H s o l v e n t s - -

A S F R A T, T A R, a n o FI T C H E S- — -

LI Q U E FI E D G A S E S...........................

F E T R O u h a n d C O AL F R O D, N E CR U B B E R A N O H| S C F L AST I C S F R O O.

g l a s s a n o g l a s s f r o o u c t s . — -.

OI R G c e h e r t ............................

RI S C R O R H E T AL LI C HI N E R A L F R O O.

C O K E, F E T A S F M A L T S, S O L V E N T S —

I R O N A R D S T E E L F RJh a F O» S -

| R O R, S T E E L S H A R E S, EI C S H E E T.

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I R O N A R D S T E E L FI F E a n o T U B EL E A O A R O ZI N C, U R H O R K E O............

A L U MI N U M A N O A LL OT S, U R H O R K E O.

f a b ri c a t e d h e t a l f r o o u c t s - —

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m ot o r v e hi c l e s , f a r t s , e o ui f ..

S HI R S A R D B O A T S-.......................

H| S C T R A N S F O R T A TI O N E O UI F H E R T.

RI S C M A N UF A CT U R E D F R O O U C T S...

I R O N A N D S T E E L S C R A F.................

R O NF E R R O U S E T a l S C R AF.. . . . . .

H A ST E A N O S C R A F, N E C............ - .

C O M M O DI TI E S, N E C.........................

H AT E R H A V I M R R O V1 MF N' - A’ . - . - .

o e f a r t n e r t o f d e f e n s e A N O S CI

2 3, 3 1 0..................

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F O OT A R T H U R, T EI, ( F A R T OF H A T E R M A T)

s e c ti o n i r c l u o e oi Sa bi n e f a s s h a r b o r , « «,, t o n e c m e s ri v e r , a b o u t 2 0 mi l e s , c o n t r o l li n g o e f t mi 3 7 f e e t ; f r o j e c t o e f t mi a o f e e t

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C O H F A R A TI V E s t a t e m e n t OF T Ba F FI C

T E A R T O R S F A S S E N O E R S T E A R T O N S F A S S E N O E R S

2 7, 9 1 3. 9 4 7

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1* 4 4...........................................................................

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F R EI G H T T R A F FI C, 1 9 73

( S H O R T T Q R S)
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W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 9 7 3

P O RT A R T H U R, TI M, ( P A R T OF U AT E R H A YI-- C O N T J N U E D

F RIII M T T R A F FI C* 1 9 7 3 — C O NT I N U E D

( S H O R T T O N S)

R E C EI P T S S HI P M E N T S

2 Bl 7 B E N Z E N E A N O T O L U E N E....................

2 8 19 S A SI C C H E MI C A L S A N O P R O D, N E C2 82 1 P L A STI C M A T E RI AL S.........................

2 8 22 S Y NT H E TI C R U B B E R...........................

2 8 S 1 P AI N T S..............................................

2 8 71 NI T R O O E N O U S C H| H F E R TI LI Z E R S..

2 89 1 MI S C E L L A N E O U S C | C A P R O D---

2 91 1 O A S O kl N E..........................................

2 9 12 J E T F U E L..........................................

2 9 13 K E R O S E N E..........................................

2 9 14 DI S TI L L A T E F U E L OI L....................

2 9 15 R E SI D U A L F U E L OI L........................

2 9 16 L U B RI C ATI N G OI L S A N O Q R E A S E S.,

2 9 17 N A P H T H A, P E T R OL E U M S O L V E N T S...

2 9 18 A S P H A L T, T A R, A N O PI T C H E S........

2 9 28 C O K E, P E T R OL E U M C O K E..................

2 9 91 P E T R OL E U M A N D C O AL P R O D, N E C3 01 1 R U B B E R A N O H| S C P L A STI C S P R O D.

3 21 1 GL A S S A N D GL A S S P R O D U C T S..........

3 29 1 S T R U C T U R A L C L A T P R O D U C T S..........

3 29 1 H| S C N O N MET Al l I C MI N E R A L P R O D.

3 31 1 PI G I R O N.........................................

3 31 3 C O K E, P E T A S P H A L T S, S OL V E NT S..

3 3l 9 I R O N. S T E E L S H A P E S. E X C S H E E T.

3 3 16 I R O N A N O S T E E L P L A T E S, S H E E T S.

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3 7 31 S HI P S A N D B O A T S- —.....................

3 79 1 M| S C T R A N S P O R T A TI O N E O UI P M E N T.

3 81 1 I N S T R, T| H 8. P H O T O. O PT G O O D S.

3 91 1 M|9 C M A N UF A CT U R E D Pr o d u c t s

4 01 1 I R O N A N D S T E E L S C R A P.................

4 0 12 N O NF E R R O U S M ET AL S C R A P.............

4 0 29 H A S T E A N D S C R A P, N E C.............

4 1 12 C O M M O DI TI E S, N E C.........................

9 9 99 D E P A RT M E NT OF D E F E N S E A N O S CI

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( Sh o r t t o n s

H O U ST O N S J R e H A N N S L, ’ « », ( H O U S T O N, M l. )

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O O H Nt O U R D

t o 1 0

9 4 3

2 2

I B

I t

2 1 S A B

1 49 1 0

1 21 2

I. B O B 1 3

2 4 2 

40

1 23

2. 0 2 0

« 09

46

« .........................................: : : : < 20

4 20

2 A3

4 2 P

l. T ll 1. 9 2 0 > 1 7 1 3 2 40

» « > A« A 2. 2 1 2 4 1 3. 9 0 9 9 4 3 B B B 2. 2 2 9 4 A 3, 0 1 7

BL A C K RI V C R. MI S.

T OT AL. 1 0 A R O LI B S .........................

1 1 2 2

u mo w R O

« 3 6 9 l « i 11 I B

0 O H N B O U N0

4 9 A3 1 27

li t t l e r o c k , a r k ., di s t ri c t
3 8 5

W A T E R B O R N E C O M M E R C E O F T H E C NI T E D S T A T E S, 1 9 7 3

MI S S O U RI RI V E R DI VI SI O N
3 8 6

N A S H V I L L E, T E N N., DI S T RI C T

T RI PS A N D D R AFT S OF V E S S EL S
3 8 7

W A T E R B O R N E C O M M E R C E O K T H E U NI T E D S T A T E S, 1 9 7 3

L O U I S V I L L E, K. Y., DI S T RI C T

H U N TI N G T O N, W. V A., DI S T RI C T

T RI PS A N O D R AF T S OF V E S Stl S
3 8 8

PI T T S B U R G H, P A., DI S T RI C T

T RI PS A N D D R AF T S OF V E S S EL S

O HI O RI V E R DI VI SI O N

T RI PS A N O D R AF T S OF Vt S St L S
3 8 9

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 9 7 3

G U L F I N T R A C O A S T A L W A T E R W A Y B E T W E E N A P A L A C H E E

B A Y, F L A., A N D T H E M E XI C A N B O R D E R

T WI TS A N O D WAFT S OF V C S S CL S
3 9 0

G U L F I N T R A C O A S T A L W A T E R W A Y B E T W E E N A P A L A C H E E

B A Y, F L A., A N D T H E M E XI C A N B O R D E R
3 9 1

W A T E R B O R N E C O M M E R C E O E T H E U NI T E D S T A T E S, 1 9 7 3

J A C K S O N V I L L E, F L A., DI S T RI C T
3 9 2

J A C K S O N V I L L E, F L A., DI S T RI C T

TI W S A M D D R AF T S OF V E S S E L S
3 9 3

W A T E R B O R N E C O M M E R C E O F T HE. U N I T E D S T A T E S. 1 97 3

J A C K S O N VI L L E, F L A., DI S T RI C T
3 9 4

M O BI L E, A L A., DI S T RI C T

T RI PS A N O D R AF T S Of V E S S E L S
3 9 5

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S. 1 9 7 3

M O BI L E. A L A., DI S T RI C T

T « M A M O D M AT T S 0 » V C S M L S

5 4 - 2 3 9 0 - 7 5 - 2 6
3 9 6

M O BI L E. A L A.. DI S T RI C T

T m « A N O D R AF T S OF V E S S E L S
3 9 7

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S. 1 97 3

M O BI L E. A L A., DI S T RI C T
3 9 8

M O BI L E, A L A., DI S T RI C T

T R» RS A M O D R AF T S OF Vt S S C Ll

H A R B O R O R W AT E R W A Y

D R AF T ( F EF T>

DI RE CTI O N

t o t a l

DI RE C TI O N

t m m u T OT AL - —It b t i

. . . . 1 “ J * ’

R A M C R II T |* m a R O O R, " 1 0 9.

T OT A L. 7 A R D Ll S S . . . . . . .

9 1

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a r l ftt v cil, M ill, A R D l a

T OT AL. 7 A R D L i t ! ..................... -

WH O O U R D

• 1 1 1

D O M Rt O U R D

• 1 1 1

Rf R DI D O * A «I C M A R Rf L. A L A,

T OT AL, ft A R D Ll BI . . . . . . .

1. 0 0 9

U H B O U. O

D O W Rl O U R D

C O M H E C TI H Q T H E T O H.I O. E E , H!

T Eh h EI S E E > » , « L «, » 0 H I, ,.

T O T. 1, , 1 H0 I E . . .........................

1. 0 0 9 1. A 09

1. 4 0 9

1 07

U R R O WR D

1 1 1 2 1 2 1 1 07

O O W Rl OU R D

1 1 2 2 1 11

R OL F a r d J O R Da r R| V| Rf, H il l,

T OT AL. ( A R D Li s t .........................

1 ,

U Rt O U R O

1 01 2 0 1 0 7

D O W Rl O U R D

1 00 2 97
3 9 9

W A T E R B O R N E C O M M E R C E O E T H E U NI T E D S T A T E S. 1 9 7 3

N E W O R L E A N S, L A., DI S T RI C T
V O U T E M E O O N N E. L A.

T OT AL- - - -

S A* 0 U ll T T H C At L L O U. L A.

M O U M A N A VI G A TI O N C A N A L,

1 1 -

1 1 - - -

1 0 - - -

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l.' O O

3. « 2 7

1. 0 1 9

• a n o L E S S.................

A A N D L E S S- • . -

T OT AL- - - -

•i o wi v e s b e l o w f u l t o n

I. A ll

S. A ll

4 0 0

N E W O R L E A N S, L A., DI S T RI C T

T WI TS A N O O WAFT S OT V E S S EL S

N O R Tl ^ O U N D

N O WTi e O V N D

I . ’ l l I.I T S

l. A S A

1. 1 1 7

1 A. A 0 9

1. 1I A

2. 1 9 *

9, * 0 9

1. 9 9 A

l. * * l

3. 1 1 9

1* 0 1 7

2. 2 9 0 1, 2* A

1. 9 A1

l . ’ l A

I. A U

3, A* S

1. A3 A
4 0 1

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 9 7 3

N E W O R L E A N S, L A., DI S T RI C T

t ai n * a n o D N Arrs or v m k l
4 0 2

N E W O R L E A N S, L A., DI S T RI C T
W A T E R B O R N E C O M M E R C E O f T H E U NI T E D S T A T E S. 1 9 7 3

N E W O R L E A N S, L A.. DI S T RI C T

H U M » « D m a t t , or v c s si l s

H A R B O R 0* W AT E R W A Y Mtt c n o N Ot R C CTl O H

D R AF T < F E< T>

h h i u w a r m s ■ W W W, MA R HA R MS • * “ H A ? T‘

U e

. M M- M A | _ _ _ _ - O W M- T T OT AL . M M- M A ’ O WA O4' T OT AL

a r

tt H A Mt

A^ C A A A A W M M

f r a n k li n Ca n a l * l a

t o t a l . a n o l e s s - - - - - - -

U N B O U N D

S B RT 10

D O- H O u n

1 3 T • •

BL O O D RI V E R S. L A.

T OT AL, a A N O L E S S .........................

u Rt ev N O

RT

9 1

00 M N B0 U N D

RT 9 1

VI N T O N N Atft M A V, L A.

T OT AL, 1 0 A N O L E S S .........................

N O RT H B O U N D

1 I B 1 3

S O UT H B O U N D

1 I t 1 9

L A K E m a U R E R S, L A.

T OT AL. 7 A N O L E S S 10 B R AT

U N B O U N D

1, 0 7 9 J 1, 0 1 3 I B B R AI

O O m n B O N O

l. O T A 2 1. 0 2 9

L A K E R O NT C M A RT R J N, L A.

T OT AL, 1 0 A N O L E S S ......................... 3. 9 3 3 3. 4 1 9

N O RT H B O U N D

B. B B B i 1 0. 3 9 9 3. 0 3 3

S O UT H B O U N D

0. 0 0 3 H O 1 4, 3 9 0
4 0 4

G A L V E S T O N, T E X., DI S T RI C T

T RI PS A N O D R AFT S OF V E S S EL S
4 0 5

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S. 1 97 3

G A L V E S T O N. T E X., DI S T RI C T
4 0 6

G A L V E S T O N, T E X., DI S T R I C T

T WF S A N O D R AF T S OF V E S S EL S
4 0 7

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 97 3

G A L V E S T O N, T E X., DI S T RI C T
4 0 8

G A L V E S T O N, T E X., DI S T RI C T

T WP S A N O D R AF T S OF V E S S E L S
4 0 9

w a t e r b o r n e c o m m e r c e o f T H E U NI T E D S T A T E S, 1 9 7 3

G A L V E S T O N, T E X., DI S T RI C T

r u n a n o m v t s or vt s u u
4 1 0

MI S SI S SI P PI RI V E R

T RI PS A N O D R AF T S OF V E S S E L S
4 1 1

W A T E R B O R N E C O M M E R C E O F T H E U N I T E D S T A T E S, 1 9 7 3

MI S SI S SI P PI RI V E R

5 4 - 2 3 9 0 - 7 5 - 2 7
4 1 2

I S Sl S Si m RI V E R
4 1 3

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S, 1 9 7 3

C HI C A G O, I L L., DI S T RI C T

T WT9 A N O D R AT T5 OT V E S S E L S

H A R B O R O R W AT E R W A Y DI R E C T O R

« > a n . « o 4 u 5 ----

DI RE C TI O N

D R AF T < F T ET> '• — ' I X '

........................

T OT AL

X X I —

******* «., Z L

t o t a l

I L L 11 0II R| Vf R. I L L,

t. » « o

j Rf c O U A D

». oi « ’ • ! } ’ 1 0. 0 2 1. 7 7 2

D O H N O O V R O

0. 0 0 3 1. 0 0 9 tt. 7 0 0

l.l M

" t » 0 2 2 t. < l

J l

1. 1 M < 0 0_ _ _ _ _ _ 1 1 t. » o o

* s

. . . ! •

t *

t o

1 90 _ _ _ _ _ _ _ 9 t o o

. — 2 t o

0 0 9 0

7. 9 0 9 2. 0 Q1

0 0

t » ’ 1 1

t o

t o

t o t a l - . . ............................... K t «.! « • 1 0. 3 2 0 9, 0 1 2 1 7. 0 0 2 01 . . . . . 1 0. 3 9 0 9. 0 3 A 2 7. 0 2 0
4 1 4

I N D E

Al a ba m a Ri v er, A U. —...................... — — —

Ali q ui p p a - R oc h es te r, P a. — - - - - - - - - - - - - - - -

Alle g h e n y Ri v er, P a., I m pr o ve d p o rti o n ------

Alle g h e n y Ri v er, P a., o pe n c h a n nel p o r ti o n --- 2 5, 1 5 1

A mite Ri v er, L a. -------------------------------------------

A n a h u ac C h a n nel, T e x. — . . . . . . . . . . . . . . . . . .

A ncl ot e Ri v er, F l a . — —. . . . . . . . . . . . . --------

A p a l a c h ic ol a B a y, F l a . — - - - - - - - - _ _ _ _ _

A p al a c hic ol a Ri v er, F l a . —

Ar eci b o H ar b o r, P. R.

Ar k a ns as Ri ve r ( M c Clell a n - K er r Ar k a ns as

Ri ve r N a vi g a ti o n S y ste m)------------------.. . .

Atc h a f al a y a Ri v er, L a. — — — — — .

Atc h a f al a y a Ri v er, L a., M or g an Cit y t o

G u lf o f M e xic o -------------------------------------..

2 k, 1 5 1

9 2, 1 6 5

9 6. 1 6 6

5 5, 1 5 5

7 0, 1 6 0

5 7, 1 5 7

5 5, 1 5 6

P a ges

Bl a c k Ri v er, Ar k. a n d L a. — . — — — . 3, 1 U5

Bl a c k Ri v er, Ar k. a n d M o. — . . . . . . . . . 9 * 1 U7

Bl a c k Ri v er, V is . — . . . . . . . . . . . . . . — —. . . — 1 ^7

Bl a c k W a rri o r Ri v er, A l a . — — — -------- — — 6 5, 1 5 9

Bl a c k fl s h B a y o u, Ar k.---------------------------------- — 6, l k 6

Bl a c k w ater Ri v er, F l a . — — — — . 7 0, 1 6 0

Bl o o d Ri v er, L a. — ----. . . . . . . . . . . . . . . . . . . . . 9 2,

Bl u ff Cre e k, M is s. — — — — — — — ------- — — . 7 0, 1 6 0

B oe uf Ri v er, L a.------------------ —-------------------------- 1*, x k 5

B o g ue F all a Ri v er, L a. — — — — — — — 9 2 1 6 5

B o n Sec o ur Ri v er, Al a. — — — — — — - . . . — 7 0, 1 6 O

B o nf o uc a B a y o u, L a. ------------. . . . . . . . . . . . . . . . . . 9 2, 1 6 5

Br ar o a Isl a n d H ar b or, T e x. — — — ---------- . . . — 1 1 1, 1 7 1

B r o w n s v ille, T e x.---------------------------------------------- 1 1 3, 1 7 2

B ar at ari a B a y W ater w a y, L a. — — — — — — — —

B ar kle y C a n al, '"‘u m berl a n d a n d Te n n ess ee

Ri v er s — — — — — — — — — —

B arre n Ri v er, K y. — — — — — — —. . . . . .

B a str o p B a y o u, T e x.- — — — — — — —

B at o n R o u ge, L a. —

B a y o us:

B a st r o p, Te x. — —

Ber n ar d, M is s. — — — — . . . . . . . . . . . . . .

Bi g Pi g e o n, L a. — --------------------------------------

Bl a c k fl s h , A r k.----------------------------------------------

B o nf o uc a, L a. — — — — — — — — — —

C ar li n, L a. —

C as ot te, M is s. — . . . ------- —. . . ----------. . . . . . .

Ce d a r, T e x.--------- — -------------- ---------------------

C hic o, F l a . - . . - . - . . . . . . . . . . . . . . . . . —. . . . . . .

C h o c ol a te, T e x. —

C o de n, A l a .--------------. . . . . . . . . . . . . --------- . . . .

C y pr ess, Te x. a n d L a. — — — — —-------------

Des C a n nes, L a. — — — — — — —

Dic ki ns o n, T e x. — — — — — — . . . . . . .

D o u ble, T e x. —

I Xi pre, L a. —

Fr es h w at er, L a.

G al er e, M is s................................................................

Gr a nd C alll o u, L a. — — . . —--------- - --------

Gr o sse T et e, L a...........- ............... — —--------------- 9 2, 1 6 5

J o h n s o ns, L a. ---------. . . . . . . . . . . . . . . ----------.. . 1 1 5

L a B at r e, A l a .................................- ............................ 7 0, 1 6 0

L a Gr a n ge, F l a . — — — —. . . . . . . . .

L a L o u tr e, L a . -... —. . . . . . . . . . . . — —

L ac o m be, L a. — — — — — — — — — —

L a f o ur c h e, L a............................................................... 7 9, 1 6 2

Le C ar pe, L a. — — 8 l, 1 6 3

L ittle C alll o u, L a.................................................... 8 0, 1 6 3

L ittle Pi ge o n, L a....................................................... 9 2, 1 6 5

7 8, 1 6 2

1 7, 1 U9

2 0, 1 5 0

1 1 5, 1 7 2

1 3 5. 1 7 5

1 1 5, 1 7 2

7 0, 1 6 0

9 2. 1 6 5

6, l k 6

9 2, 1 6 5

8 5, 1 6 k

6 7, 1 5 9

9 9, 1 6 8

6 1, 1 5 8

1 0 k, 1 6 9

7 0, 1 6 0

9 2. 1 6 5

8 9, 1 6 5

1 0 2, 1 6 8

1 1 5, 1 7 2

8 1, 1 6 3

9 2, 1 6 5

8 6, 161.

7 0, 1 6 0

8 1, I 6 3

7 0, 1 6 0

9 2, 1 6 5

9 2, 1 6 5

al c a si e u Ri ve r a n d P as s, L a. — — — —

C al o os a h atc he e Ri v er, F l a.- - - - - - - - - - - - - - - - - - -

C al o os a h atc he e Ri v er t o A nc l o te Ri v er, F l a .,

W ater w a y'

C arli n B a y o u, L a. —

C a rr a b ell e, Fl a. — — — — — — . . . . . . . . . . .

C as ot te B a y o u, M is s.- ---- — — — - ------------------

Ce d ar B a y o u, T e x. — — — — — — — —

Ce d ar Ke ys H ar b or, F l a . — — — — — — — . . . . . .

C h a n nel fr o m N a ple s t o G or d o n P as s a n d

Bi g M arc o P a ss, F l a ... — — . . - --- — - —

C h a n nel t o Ar a ns a s P as s, T e x. — — — —

C h a n nel t o P al a ci o s, T e x.--------- — ------------------

C h a n nel t o P o rt B oli v ar, T e x. — ---- - -------- —

C h a n nel t o V ic t o ri a , T e x. — — — — — — — — —

C h a rl ot te H ar b o r, F l a . — — — — — — . . . . . . .

C h a tt a h o o c h ee Ri v er, G a. a n d F l a .------------ — -

C h att a n o o g a, Te n n. — — — — — — — —

C h ef u nct e Ri v er, L a. — — — — — — —

C hic a g o, I l l ., D is t ri c t.......... ............ — — — —

C hic k as a w Cre e k, A l a . — — — — --------- -----------

C hi c o B a y o u, F l a . — — — — — — — — —

C h o c ol at e B a y o u, T e x. — — — — — — — —

C h ris tl a n st e d H ar b or, S t. C r oi x, V. I .. . . . . . .

C i n ci n n ati, O hi o-................ ...........................................

C l a lr t o n - E ll x a b et h. P a. — — — — — — —

Cl e a r Cre e k, T e x. — — — — — — — — —

Cl e a r w ate r P as s, F l a . — ------------ — . — —

C o de n B a y o u, A l a . —

C o o n o dlt y C l a s sif ic a ti o n ----------------------------------

C o nec u h Ri v er, A l a .--------- - --------------- — . . . . . . . 5 9, 1 5 0

C o os a Ri v er, Al a. a n d G a. — - ............................ — 6 k, 1 5 9

C or p us C h ris ti S hi p C h a n nel, T e x. — — — — 1 0 7, 1 7 0

k k, 1 5 k

8 5, 1 6 k

7 0, 1 6 0

6 7, 1 5 9

9 9, 1 6 8

5 5, 1 5 6

5 5, 1 5 6

1 1 5, 1 7 2

1 1 5, 1 7 2

1 1 5, 1 7 2

1 0 7, 1 7 0

k 3, 1 5 k

5 7, 1 5 7

1 8

9 2, 1 6 5

I k O, 1 7 6

6 k, 1 5 9

6 1, 1 5 8

1 0 k, 1 6 9

5 2, 1 5 5

2 7

2 3

1 0 1, 1 6 8

5 5, 1 5 6

7 0, 1 6 0

M ac o n, L a. <

M a nc h ac, L a. —

P e tit A n se, L a.............................................................

Pl a q ue mi n e B r u le, L a. — ----------- — ----------------

S e g n ett e, L a., W ater w a y------- — — --------. . . . .

S t. M al o, L e.-------------------------------------------------

S t e ele , M is s.................................................................

Te c h e, L a.- —

Te rre b o n n e, L a. —

Ti g re, L a. — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

W a s hi n gt o n, M is s. — ---------. . . . . . . . --------------

W ats o n, F l a .--------. . . . . . . . --------------------- —. . .

Ysc 1 o s k e y, L a. — *

. V»5

9 2. 1 6 5

8 9, 1 6 5

8 5, 1 6 k

9 2, 1 6 5

9 2, 1 6 5

9 2, 1 6 5

k, U»5

8 7, 16J U

8 0, 1 6 3

8 5, 1 6 k

k, l k 5

5 9, 1 5 7

9 2, 1 6 5

T e x.--------------------------------------------------- 9 6, 1 6 7

Ber n ar d B a y o u, M is s. — — — — — — — — — — — 7 0, 1 6 0

Bi g Pi g e o n B a y o u, L a. — 9 2, 1 6 5

Bi g S a n d y Ri v er, K y. a n d W. V a. — — — — — — 2 1, 1 5 0

Bi g S u nfl o w er Ri v er, M is s. ------------------------ — — k, I U5

Bil o xi H ar b o r, M is s............................. 6 8, 1 6 0

C or p us C h ris ti, T e x.-

C r o ss - Fl o rl d a B ar ge C a n al, F l a . — - - - - - - -

C r y st al Ri v er, F l a .------------------------ — -------

C u m berl a n d Ri ve r:

M o ut h t o Mile 5 5 2.............................................

M o ut h t o N a s h ville , T e n n.- — — — — — .

N a s h ville, Te n n................................................

N a s h ville, Te n n., t o Mile 5 5 2 ---------------

C y pre ss B a y o u, Te x. a n d L a. ------------------- --

1 0 9, 1 7 1

5 5. 1 5 6

, 1 5 6

D a u p hi n Isl a n d B a y, A l a. — — — — — — — — 7 0, 1 6 0

Des C a n nes B a y o u, L a.- — — — — — — — — 8 9, 1 6 5

Di c ki n s o n B a y o u, T e x. — — — — — — — 1 0 2, 1 6 8

D o u ble B a y o u. T e x.----------------- --------- . . . . . . . — 1 1 5, 1 7 2

D ul a c B a y o u, L a. — — — - . — — — — — - 8 l, 1 6 3

D u pre B a y o u, L a. ---------------- — —---------------------. 9 2, 1 6 5

E a st P a ss C h a n nel, F l a .------------------------------------ 7 0, 1 6 0

E a st P e a rl Ri v er, M is s. --------- --------- ---- - --------- 7 0, 1 6 0

F k g Jlre, L a., t o G ul f o f Me xic o W ater w a y............ 7 8, 1 6 2

Esc a m bi a B a y, F l a . — --------------------------- -------- — 5 9, 1 5 8

Esc a m bi a Ri v er, F l a .------------------- ------------- — — 5 9, 1 5 8

E v er gl a d es H ar b or, C ollie r C o u nt y, F l a . — — 5 5, 1 5 6
4 1 5

W A T E R B O R N E C O M M E R C E O F T H E U NI T E D S T A T E S. 1 9 7 3

F aj ar d o H ar b or, P. 5 5, 1 5 6

Fli n t M m , G a. — ------------------------------------------- 5 7. 1 5 7

Fl y Cre e k, A l a.------------- — — . 7 0, 1 6 0

P o rt M yers Be a c h, F l a .---- — --------- - - - - --------- 5 5, 1 5 6

Fr a n kli n C a n al, L a.----------------- — 9 2, 1 6 6

Fr ee p o rt H ar b or, T a x.---------------------. . . . . . . . . . . . 1 0 5, 1 7 0

Fre s h w ater B a y o u, L a. ------------- — — —. . . . . . . . 8 6, 16 H

G al or e B a y o u, Nl a a.. . . . . . . . . . . . . . . . . . . . . . . . . . 7 0, 1 6 0

G al v es t o n C h a n n el, T a x. — — — — — — — — — — 1 0 3, 1 6 9

G al ve st o n H ar b o r, T e x. — — — — — — — — — 1 0 3, 1 6 9

G al ve st o n, T a x., D is t ri c t — *, 1 6 7

Gr a n d C alll o u B a y o u, L a.- - —- - - - - - - - - - - - - - - - - 8 l, I 6 3

Gree n Ri v er, K y. -.................................. — --------- ----- 2 0, 1 5 0

G r e e n ville, M is s.- — .................................................... 1 3 1

Gr oss e T ate B a y o u, L a. — — — — — — — 9 2, 1 6 5

O u a y a nes H ar b or, P. R. — 5 5, 1 5 6

G ul f C o u nt y C a n al, F l a ................................................ 5 8, 1 5 7

G ul f I n tr a c o a st al W ater w a y:

A p al a c h ee B a y, F l a ., t o Me xic a n B or der ------- J O, 1 5 2

A p al a c he e B a y t o P a n a a a C it y, Fl a. 3 2, 1 5 2

C or p us C h ris ti, T e x., t o Me xic a n B or der — - Hl, 1 5 3

G al ve st o n t o C or p u a C h rl a tl, T e x.- — — H O, 1 5 3

M is si ss i p pi Ri v er, L a., t o S a bi ne

Ri v er, T e x.---------------------------------------------- — 3 6, 1 5 2

M o bile B a y, A l a ., t o Ne w O rl e a ns, L a. --------- 3 5. 1 5 2

P a na ma Cit y t o Pe ns ac ol a B a y, F l a.- — — 3 3, 1 5 2

Pe ns ac ol a B a y, F l a ., t o M o bile

B a y, A l a.----------------------------------------------------- 3 3, 1 5 2

S a bi ne Ri ve r t o G al v es t o n, T e x.- - - - - - - - - - 3 8, 1 5 2

G ul f I n tr a c o a a t al W ater w a y, M org a n

Cit y- P or t A ll e n R o ute........................... —........... 8 H, 1 6 H

G u lf p or t H ar b or, M is s. — — — — — — — — 6 8, 1 6 0

O u n te r s v llle , A l a . — — — — — — — — — 1 8

H ar b or Is l a n d, T a x. — — — — — — — 1 0 9, 1 7 1

Hele n a, A r k.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 3 1

Hi w ass ee Ri v er, T e n n.- --. . . . . . . . . . . . . . . . . . . . . 1 9. 1 H9

H o m os ass a Ri v er, F l a .---------------- — 5 5. 1 5 6

H o rse s h o e C o v e, F l a.- — — — - —- - - - - — — - 5 5. 1 5 6

Ho u ma n a vi g a ti o n C a n al, L a.- — — — — — — — 8 0, 1 6 3

H o u st o n S hi p C h a n nel, T e x. — — — — — — — — - 9 9. 1 6 8

H u ds o n Ri v er, F l a . — 5 5. 1 5 6

H u nti n g t o n, W. V a.--------------------------------------------- 2 7

H u nti n g t o n, W. V a., D is t ri c t........................... — — 2 1, 1 5 0

Illi n o i s Ri v er, I l l . — ----------------------------------- l * * 0, 1 7 6

I n ner h a r b o r N a v i g ati o n C a n al, L a. — — — — — 7 2, 1 6 2

I n tr a c o a at al W ater w a y, C al o o a a h atc he e

Ri ve r t o A ncl ote Ri v er, F l a . — — — — U H, 1 5 H

I n tr o d u cti o n — — — — — — — — — — — — v

J a c k s o n ville , F l a ., D is t ric t ( G ulf C o ast

a n d A n tille s p o r ti o n ) — ------- L 3, 1 5 H

J e ff e r s o n, T a x., t o S h re ve p o rt, L a.,

W ater w a y.......................................................................... 9 2. 1 6 5

J o h ns F es s, F l a .- — — — — — — — 5 5. 1 5 6

J o h ns o ns B a y o u, L a. — — — — — — 1 1 5, 1 7 2

J or d a n Ri v er, Mi a s. — — — — — — — — — — — — 7 1. 1 6 1

K an a wh a Ri v er, W. V a. —------------------- ---------------- 2 1, 1 5 0

K a ns as C it y, M o....................................... - ..................... 1 2

K a s k a s ki a Ri v er, I l l . — - - - - - - - - - - - - - - - - - - - - - 6, 1 H6

Ke nt uc k y Ri v er, K y. — — — — — — 2 0, 1 5 0

Kls al x me e Ri v er, F l a .................................................... 5 6, 1 5 6

K n o x ville, T e m. l B

l a B atre B a y o u, A l a . — — — — — — 7 0, 1 6 0

l a Gr a n ge B a y o u, F l a . — — - - — — — — 7 0, 1 6 0

L a L o ut re B a y o u, L a.-- — — — — — — — — — 9 ®, 1 6 5

L ac o m be B a y o u, l a . ---------------------------------------- — 9 2, 1 6 5

L af o ur c he B a y o u a n d L a f o ur c h e- J us g>

W ater w a y, L a.--------------------- --------- — -------- 7 9. 1 6 2

L a ke C h a rl es Dee p W ater C h a n nel, l a . — — — 8 6, 1 6 H

L a ke C h a rle s, l a . — — — — — — — — 9 0, 1 6 5

L a ke M s ur e p a s, L a. — — — — — — — — 9 2, 1 6 6

L a ke P o nc h a rt r al n, L a.- — — — — — — — — — 9 3, 1 6 6

L a ke P r o vi de nc e, L a. — — — — — — — — 1 3 1

L a ke W as hi n g t o n, M is s. — — — — — — H, I H5

L' A n g ullle Ri v er, A r k. — — — — — — — 6, 1 H6

Le C ar pe B a y o u, L a. — — — — — — 8 l, I 6 3

L i ttle C alll o u B a y o u, L a. --------------------------------- 8 0, 1 6 3

L i ttle K a na w ha Ri v e r, W. V a.--------------------------- 2 2, 1 5 0

L i ttle M a n atee Ri v e r, F l a . — — — — — 5 6, 1 5 6

L i ttle Pi ge o n B a y o u, L a....................................... — 9 2, 1 6 5

L i ttle Ri v e r, L a.- ---------------- ---------------------------- H, I H5

L i t tl e R o c k, A r k., D is t ri c t..................... — — 9. 1*»7

L i ttle A m fl o w er Ri v e r, M is s.- — — — — *, 1*»5

L o u is vil le , K y. — — — — — — — — — — — — — 2 7

L o u is v il le , K y., D is t ri c t --------------------------------- 2 0, 1 5 0

H, I H5

5 6. 1 5 6

9 2. 1 6 5

1 0 6, I T O

5 0, 1 5 5

M aco n B a y o u, L a. — — — — — — —

M a n atee Ri v er, F l a.--------- — ----------------------------

M a nc h ac B a y o u, L a. — — — — — — — — — —

M at a g or d a S hi p C h a n nel, T e x. — — — —

Ma y a g ue z H ar b or, P. R. — — — — — — — .

M c Clell a n - K er r Ar k a ns as Ri ve r

N srl g atl o n S ys te m —

M e a p hls, Te n n. — — — — — — — — — — — —

M e e hls , Te n n., D is t ri c t - — —- — - - - - - — —

Mer me nt a u Ri v er, L a. ( L o wer se c ti o n ) — — —

Mer me nt a u Ri v er, L a. ( U p per s e c ti o n ) — — 8 9, 1 6 5

Mi n n e a p olis, Mi n n. — — — — — — — —

Mi n n es o t a Ri v er, Mi n n. — — — —-

M is si ss i p pi Ri ve r:

B at o n R o u ge, L a. -------------- ----------------------------- 1 3 5, 1 7 5

B at o n R o u ge, L a., t o Ne w O rl e a ns, L a. — 1 2 5, 1 7 H

5- v*

7. 1 8

M et r o p olit a n S t. L o ui s — — — — — — — 1 > , 1 7 5

Mi n ne a p olis t o M o ut h o f Miss o u ri Ri ve r — — U 9, 1 7 3

Mi n ne a p olis t o M o ut h o f P as se s — — — — 1 1 6, 1 7 3

Miss o u ri Ri ve r t o M o ut h o f O hi o Ri v er — — 1 2 1, 1 7 3

Ne w O rl e a ns, L a. -------------------------------------------- 1 3 7, 1 7 5

Ne w O rl e a n s, L a., t o M o ut h o f P a ss e s- — — 1 2 8, 1 7 U

O hi o Ri v er t o B at o n R o u ge, L a. — - - - - - - - - - 1 2 2, 17**

P as se s o f t h e M is si ss i p pi Ri v er — — — — 1 3 1, 17*»

T r a ffic a t p ri n ci p al p o r ts — — — — — — — 1 3 1

T r a ffic b y y e a r s, t o n s, a n d t o n - s dle s — —- x

M is sis si p pi Rl v er - O ul f O u tl et, L a. — — — — 7 H, 1 6 2

M is si ss i p pi Ri ve r S yst e m:

C os n m dit y d e t a il------- ------------------------------------ l k 2

T r a ffi c b y y e a r s, t o n s, a n d t o n - n ll e s - — - - x

Miss o u ri Ri ve r:

D i v isi o n — — — — — — — — — — — — — 1 0, 1 H8

F o rt Be nt o n t o M o ut h- — - — — — — 1 0, 1 H8

F o rt Be nt o n t o Si o u x Cit y — — — — — — 1 3, 1 U8

K a ns a s C it y, M o.- -------------- — --------- ------------- 1 2

K a ns as Cit y t o M o ut h-------------------------------------- 1 0, 1 H8

O ma ha t o K a ns a s C it y - — — — — — — — — — — — 1 1, 1 H8

Si o u x Cit y t o C ma ha.................. -.......................... — 1 2, 1 U8

M o bile, A l a ., D is t ri c t -------------- - --------------------- 5 7, 1 5 7

M o bile H ar b o r, A l a .------------------------------------------ 6 l, 1 5 8

M o n o g a hel a Ri v e r, P a. a n d W. V a. — — — — 2 3, 1 5 1

M or g an Cit y- P or t Alle n R o ute,

G u lf I n tr a c o a st al W ater w a y —........................... 8 L, l £ L

M o u nt Ver n o n, I n d. — — — — — — — — 2 7

M o ut h o f Y az o o Ri v er, M is s. — — — — 3, I H 5

M us kl n g u x Ri v er, O hi o — — — — — — — 2 2, 1 5 0

N a s h ville , Te n n. 1 6
p m * >

I N E X

f c s h v ill e, T e n n., D is t ri c t...................................... I k, li » 9

N at al b a n y Ri v er, L a. — — — — — . — . 9 2, 1 6 6

N at c h ez, Mi a s. — . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 1

Nee O rl e a ns, L a. ---- --------------- 1 3 7, 1 7 5

Nee O rl e a ns, L a., D i s t r i c t - - - ------------------------- 7 2, 1 6 2

Nee P a ss, F l a .----------------------------------------------------- 5 6, 1 5 6

Nec pi q u e B a y o u, l a . — ----- — ---------------- — — — 8 9, 1 6 5

O hi o Ri ve r------------------------------------------------ 2 6, 1 5 1

O hi o Ri ve r D i v isi o n — — — — — — 2 6, 1 5 1

O keec h o b ee W ater w a y, F l a.- — ------------------------- * »3. 1 5 k

Or a n ge, T e x.----------------------- —----. . . . . . . . . . — . 9 5, 1 6 7

O u ac hit a Ri ve r A b o ve C a m de n, A r k. — — — ------ * ♦, 1*»5

O u ac hit a Ri v er, Ar k. a n d L a.-------------------------- 3. 1*»5

P a n ace a, F l a . — — — — — — — — . . . . . . . . . . . . . . 7 0, 1 6 0

P an a m a Cit y H ar b or, F l a ............................................. 5 8, 1 5 7

P a sc a g o ul a H ar b or, Mi a s. — . . . . . . . 6 6, 1 5 9

P a sc a g o ul a Ri v er, M is s. — . — — —. . . . . . . —. 7 0, 1 6 0

P a ss C h ri sti a n H ar b or, M is s. — — --------- — — - 7 0, l 6 l

P as s M a nc h ac, L a. — — . . . . . . . . . . . . . . . . . . . . 7 7, 1 6 2

P a ss es o f M is si ss i p pi Ri v er...................... — — — 1 3 1. 1 7 k

P e a rl Ri v er, Mis s, a n d L a. ------------------------------- 7 1, 1 6 1

P e n s a c ol a H ar b or, F l a .------------- 6 0, 1 5 8

Pe r di d o P a ss C h a n nel, A l a .- — — — — — 7 1, l 6 l

P e tit A nse B a y o u, L a.--------. . . . . . . . . . . . . --------- 8 5, l 6 k

Pit hl a c h a sc ote e Ri v er, F l a . — — — — — 5 6, 1 5 6

Pitts b u r g h, P a . - - . - - . . . . . . . . . . . . . . —. . . . . . . . . 2 7

Pitts b u r g h, P a.. D is t ric t-------------- — - --------- 2 3, 1 5 1

Pl a q ue ai n e Br ule B a y o u, L a. — ---- — — --------- 9 2, I 6 5

P o nce H ar b or, P. R.------------------------- — _ _ _ _ _ _ _ _ k 9, 1 5 5

P o nc h at o ul a Ri v er, L a. — — — — — — — 9 2, 1 6 6

P o rt A rt h ur, T e x.------------------------------------------------ 9 7, 1 6 7

P o rt I s a b el, T e x.---------------------------------------------- 1 1 2, 1 7 2

P o rt M a n sfiel d, T e x. — - ---------------------------------- 1 1 5, 1 7 2

P o rt o f M et r o p olit a n 8 t. L o u is------------------------ 1 > . 1 7 5

P o rt o f S t. J o e H ar b o r, F l a .------------------------------ 5 8, 1 5 7

Re d Ri ve r Be l o v F ult o n , A r k. — — ---------- — 8 3, 1 6 3

R o c k p ort, T e x................................................................... 1 1 5, 1 7 2

S a bi ne P a ss H ar b or, T e x. — — — — 1 1 5, 1 7 2

S a bl ne - N ec he s W ater w a y, T e x. — — — — — — 9 k, 1 6 7

S a n Ber n ar d Ri v er, T e x.----------------. . . . . . . . . . . . 1 0 5, 1 7 0

S a n J u a n H ar b or, P. R.---------. . . . . . --------- — — U 7, 1 5 k

Se g n et te B a y o u, L a., W ater w a y....................... 9 2, 1 6 5

8 t. Cr oi x Ri v er, Wls. a n d Mi n n. — — —--------- 7, 1 L 7

S t. Fr a n ci s Ri v er, A r k. — --------- — — — — — 6, l k 6

S t. L o uis, M o., D is t ri c t ---------------------------------- 6, l k 6

S t. M al o B a y o u, L a. — — — — — — — . . . . . . . . . . . 9 2, 1 6 5

S t. M ar ks Ri v er, F l a . — ----. . . . . . . . . . . -------- 5 7, 1 5 7

S t. P a ul, Mi n n. — — —. —. —. . . . . . . . . —. . 1 3 1

S t. P a ul, Mi n n., D is t ric t-------------------------- — — 7 , U »7

S t. Pe ter s b ur g H ar b or, F l a . — — ---- . . . . . . . . . U 5, 1 5 k

S t. T h o m as H ar b or, V. J . — — — — —

S t e ele B a y o u, M is s. — ------------. . . . . . --------- ----

St ei n h atc he e Ri v er, F l a . — — — —. . . . . . . . .

O ui ws ar y o f t r a f fi c :

Br a s os Isl a n d H ar b or, T e x. — — — — —

C or p us C h ris ti B a y A re a----- — — — — — — —

Pit ts b u r g h, P a., D is t ric t — — — — — — -

S a bl ne- N ec he s W ater w a y, T e x. — — — —

S u w a n nee Ri v er, Fl a. — — — — — — — — — —

T a mp a H ar b or, F l a .---- — ----------------- ------. . . .

Tec h e B a y o u, L a. — — — — — — — — — — — —

Te n n ess ee Ri v er, Te n n., A l a ., a n d K y.- - — — —

Te n s as Ri v er, L a.- - — — — — — — .

Ter re b o n ne B a y o u, L a. — — — — — —

Te x as Cit y C h a n n el, T e x. — — — — —

T hre e Mile Cre e k, A l a . — — — — — — — —

Ti c kf a w Ri v er, L a.- - — — — — — —

Ti gr e B a y o u, L a. — — — — — — — —

T a m bi g bee Ri v er, A l a . — — — — —

T o m bl g bee Ri v er t o Te n n ess ee Ri v er

W ater w a y- — — — — — — — — — — — —

Tri b ut ar y Arr o y o C ol or a d o, T e x. — — — —

T ri n it y Ri v er, T e x.--------------- --------------------------

T u g a n d L e v ie s F o r k s, K y. a n d W. V a.--------------

U p per W hite Ri v er, Ar k.

Ve r mili o n Ri v e r, L a. — — —. . . . . . . . . . . . . —

Vi c k s b ur g, M is s.- — - - - - - . . . . . . . . . . . . . . . . . . . .

Vic ks b u r g, M is s., D is t ric t —--------- — — —. . .

Vi nt o n W ater w a y, l a . — — — — — — —

W as hi n gt o n B a y o u, M is s. — — — — — — — ---------

W ater w a y C o n n ecti n g t h e T o m bl g bee a n d

Te n n ess ee Ri v er s — — — — — —

W ater w ay fr o m E m pir e, L a., t o O ul f o f

Me xic o — -------- — — — — — - —- — . . . . . . . . .

W ater w ay fr o m I n tr a c o a st al W ater w a y t o

B a y o u D ul ac, L a. — — — ------- — — — —

W ats o n B a y o u, F l a . — — — — — — — . . . . . — . . .

Wee d on Is l a n d, F l a . — — — — . . . . . . — .

W hite Ri v er, A r k. — — — — — — —. . . . . . . . . . . . .

Wlt hl a c o oc he e Ri v er, F l a . — — — — — — — — —

W olf Ri v er, M is s. — .................................. ............ —

W olf Ri v er, T e n n.---------------------------------------------

5 g £ £ £ 5 5 U S 5 5 S 5 5 S S5 5 S S S s S S S m S ss S B £ 5 3

Y az o o i v er, M is s. — — — — — — — — — — — k, 1 U5

Y az o o Ri v er, M is s., M o ut h----------------------------- — 3, 1 U5

Y o u g hl o g he n y Ri v er, P a. ---------- — — — — — — 2 5, 1 5 1

Y scl o s k e y B a y o u, L a.- ---- — ---- — — — — 9 2, 1 6 5
4 1 7

L o wer Mississi p pi Re gi o n

C o m pre he nsive St u d y
4 1 8

T h i s a p p e n d i x i s o n e o f a s e r i e s o f 2 2 d o c u m e n t s c o m p r i s i n g t h e 

c o m p l e t e L o w e r M i s s i s s i p p i R e g i o n C o n p r e h e n s i v e S t u d y . A l i s t o f t h e 

d o c u m e n t s i s s h o w n b e l o w .

M a i n R e p o r t

A p p e n d i x e s

A p p e n d i x

D e s c r i p t i o n A p p e n d i x

D e s c r i p t i o n

H i s t o r y o f S t u d y

M a n d I W a t e r S u p p l y

E c o n o m i c s

W a t e r Q u a l i t y a n d

R e g i o n a l C l i m a t o l o g y ,

P o l l u t i o n

H y d r o l o g y 5 G e o l o g y

H e a l t h A s p e c t s

I n v e n t o r y o f

F a c i l i t i e s

R e c r e a t i o n

F l o o d P r o b l e m s

C o a s t a l a n d E s t u a r i n e 

R e s o u r c e s

L a n d R e s o u r c e s

A r c h e o l o g i c a l a n d

R e l a t e d M i n e r a l

H i s t o r i c a l R e s o u r c e s

R e s o u r c e s

F i s h a n d W i l d l i f e

I r r i g a t i o n

P o w e r

A g r i c u l t u r a l L a n d 

D r a i n a g e

S e d i m e n t a n d E r o s i o n

N a v i g a t i o n

P l a n F o r m u l a t i o n

T h e E n v i r o n m e n t
N A VI G A T I O N

L O W E R MI S SI S SI P PI R E GI O N

C O M P R E H E N SI V E S T U D Y

P R E P A R E D U N D E R T H E S U P E R VI SI O N O F

T H E L O W E R MI S SI S SI P PI R E GI O N C O M P R E H E N SI V E S T U D Y

C O O R DI N A TI N G C O M MI T T E E
4 2 0

T h i s r e p o r t w a s p r e p a r e d a t f i e l d l e v e l b y t h e L o w e r M i s s i s s i p p i 

R e g i o n C o m p r e h e n s i v e S t u d y C o o r d i n a t i n g C o m m i t t e e a n d i s s u b j e c t 

t o r e v i e w b y i n t e r e s t e d F e d e r a l a g e n c i e s a t t h e d e p a r t m e n t a l 

l e v e l , b y G o v e r n o r s o f t h e a f f e c t e d S t a t e s , a n d b y t h e W a t e r R e ­

s o u r c e s C o u n c i l p r i o r t o i t s t r a n s m i t t a l t o t h e P r e s i d e n t o f t h e 

U n i t e d S t a t e s f o r h i s r e v i e w a n d u l t i m a t e t r a n s m i t t a l t o t h e 

C o n g r e s s f o r i t s c o n s i d e r a t i o n .
4 2 1

T A B L E OF C O N T E N TS

AP PE N DI X J 

N A VI G A TI O N

Pa ge N o.

L is t o f F i g u r e s.............................................................................................. x v

List o f T a b l e s .............................................................................................. x v

L is t o f P h ot o g ra p h s...................................................................................... xi x

I N T R O D U C TI O N................................................................................................... 1

P ur p os e ........................................................................................................... 1

S c o p e............................................................................................................... 1

P re se ntati o n .............................................................................................. 1

Ass u m pti o ns a n d C o n str ai n t s.................................................................. 2

R el ati o ns hi p t o Ot h er A p p e n dices ...................................................... 2

R E GI O N A L S U M MAR Y .......................................................................................... 3

D es cri pti o n ................................................................................................... 3

De vel o p me nt . . : ...................................................................................... 4

G e n e r al..................................... . ............................................................. 4

E arl y C o n m e rc e...................................................................................... 4

Re gi o nal Ec o no m y ...................................................................................... 7

E xisti n g N a vi g ati o n I n pr o ve m e nt .......................................................... 9

E xisti n g a n d Pr o s p ec ti v e C o n merce ........................................................ 1 0

V es sels a n d V es sel T ra ff ic .................................................................. 1 6

S h all o w D ra ft ........................................................................................... 1 6

T o w b oats a n d T u gs .............................................................................. 1 6

B a r g e s................................................................................................... 1 6

Bar ge T o w s........................................................................................... 1 8

Ot her C r a f t........................................................................................... 1 8

Dee p D r a f t ............................................................................................... 1 8

G e n e r al................................................................................................... 1 8

Ge ner al Car g o ...................................................................................... 1 8

B ul k C arrie rs ...................................................................................... 2 1

T a n k e rs ................................................................................................... 2 1
4 2 2

T A B L E O F C O N T E N T S ( C o n t )

P a g e N o .

F u t u r e D e v e l o p m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3

S h a l l o w D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3

D e e p D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4

G e n e r a l c a r g o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4

B u l k c a r r i e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6

T a n k e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 7

F u t u r e N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8

W R P A 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5

G e n e r a l D e s c r i p t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5

N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 6

E x i s t i n g C o m m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8

I n l a n d C o m m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8

O c e a n g o i n g C o m m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8

V e s s e l C o m p o s i t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8

F u t u r e N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2

P r o s p e c t i v e C o n i n e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2

N e t N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2

S h a l l o w - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2

D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7

H a r b o r s a n d P o r t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7

W R P A 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9

G e n e r a l D e s c r i p t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9

E x i s t i n g E c o n o m i c D e v e l o p m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9

T r a n s p o r t a t i o n F a c i l i t i e s ( E x c l u d i n g W a t e r w a y s ) . . . . . . . . . . 5 0

R a i l T r a n s p o r t a t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0

H i g h w a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0

A i r l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0

i i
4 2 3

BLE OF C O NTE NTS ( C o nt)

Pa ge No.

Pi p eli n e s.................................................................................... 5 0

E xisti n g a n d A ut h oriz e d Na vi gati o n I m pr o ve ments ...................... 51

G e n er al........................................................................................... 51

S hall o w- Draft C ha n nels .............................................................. 51

Dee p- Draft C ha n nels ..................................................................... 5 2

L o c k s............................................................................................... 5 3

S hall o w- Draft P orts ..................................................................... 5 3

W hite R i v e r................................................................................ 5 3

Mis sissi p pi Ri ver ..................................................................... 5 3

Ne w Ma dri d, Miss o uri .......................................................... 5 3

Ca r ut h er s vill e, Miss o uri ................................................... 5 3

Bl yt he ville, Ar ka nsas .......................................................... 5 3

Osce ola, Ar ka nsas .................................................................. 5 3

Hele na, Ar ka nsas .................................................................. 54

Dee p- Draft P ort s ......................................................................... 54

Na vi gati o n A i d s............................................................................. 54

E xisti n g C o m merce............................................................................. 54

I nla n d Co m merce ............................................................................. 5 4

W hite R i v e r............................................................................. 54

Mi ssis si p pi Ri ver P orts ....................................................... 5 4

Ar ka nsas Ri ver ...................................................................... 5 5

C oast wise Tra de ............................................................................. 5 5

F orei g n Tra de ................................................................................. 5 5

Vessel C o m p ositi o n ......................................................................... 57

F ut ure Nee ds .................................................................................... 6 0

Pr os p ecti v e Co m merce .................................................................. 6 0

G e n er al........................................................................................ 6 0

I nla n d Tr af fic .......................................................................... 6 0

T otal Pr oject e d Co m merce ....................................................... 6 0

Net N ee ds........................................................................................ 6 2

G e n er al........................................................................................ 6 2

iii
4 2 4

T A B L E O F C O N T E N T S ( C o n t )

P a g e N o .

S h a l l o w - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2

D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2

P o r t s a n d H a r b o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2

W R P A 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7

G e n e r a l D e s c r i p t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7

E x i s t i n g E c o n o m i c D e v e l o p m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7

T r a n s p o r t a t i o n F a c i l i t i e s ( E x c l u d i n g W a t e r w a y s ) . . . . . . . . 6 8

R a i l r o a d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8

H i g h w a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8

A i r l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8

P i p e l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8

E x i s t i n g a n d A u t h o r i z e d N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . 6 8

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8

S h a l l o w - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9

O b i o n R i v e r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9

F o r k e d D e e r R i v e r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9

D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

P o r t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

S h a l l o w D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

W i c k l i f f e , K e n t u c k y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

H i c k m a n , K e n t u c k y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

T i p t o n v i l l e , T e n n e s s e e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

M e m p h i s , T e n n e s s e e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1

D e e p D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2

N a v i g a t i o n A i d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2

A u t h o r i z e d N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . . . . . . . . . . . . . . 7 2

E x i s t i n g C o n m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2

i v
4 2 5

T A B L E O F C O N T E N T S ( C o n t )

P a g e N o .

F u t u r e N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

P r o s p e c t i v e C o m n e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

T o t a l P r o j e c t e d C o m n e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

N e t N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5

S h a l l o w - a n d D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . 7 5

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8

P o r t s a n d H a r b o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8

W R P A 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3

G e n e r a l D e s c r i p t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3

E x i s t i n g E c o n o m i c D e v e l o p m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3

T r a n s p o r t a t i o n F a c i l i t i e s ( E x c l u d i n g W a t e r w a y s ) . . . . . . . . 8 4

R a i l r o a d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4

H i g h w a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4

A i r l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4

P i p e l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4

E x i s t i n g N a v i g a t i o n I n p r o v e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5

S h a l l o w - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5

Y a z o o R i v e r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5

B i g S u n f l o w e r R i v e r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 6

O t h e r S t r e a m s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 6

D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

P o r t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

S h a l l o w D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

V i c k s b u r g H a r b o r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

G r e e n v i l l e H a r b o r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7

O t h e r f a c i l i t i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9
4 2 6

T A B L E O F C O N TE N T S ( C o n t)

P a g e N o.

D e e p D r a f t........................................................................................................................ 8 9

N a vi g ati o n A i d s ............................................................................................................. 8 9

A u t h ori z e d N a v i g ati o n I m pr o v e m e nts .................................................................. 9 0

S h all o w - D r a ft C h a n n els ............................................................................................. 9 0

D e e p - D r aft C h a n n els .................................................................................................. 9 0

L o c k s ........................................................................................................................................ 9 0

B a r g e ................................................................................................................................... 9 0

S h i p ........................................................................................................................................ 9 0

P o r t s ........................................................................................................................................ 9 0

E xis ti n g C o m merc e ............................................................................................................. 9 1

G e n e r a l................................................................................................................................... 9 1

Y a z o o Ri v er a n d Y a z o o Ri v e r P o rt s a n d H ar b or s ......................... 9 1

M is sis si p pi Ri v er P o rt s a n d H ar b or s .................................................... 9 1

S u m m ar y o f WRP A 4 W at er b o r n e C o m m e rc e............................................... 9 3

V es s el C o m p osi ti o n ............................................................................................................. 9 3

F ut ur e N e e d s.............................................................................................................................. 9 5

P r o s p ec ti v e C o n m erc e .................................................................................................. 9 5

G e n e r a l.............................................................................................................................. 9 5

I nl a n d T r a ffi c ............................................................................................................. 9 5

F o r ei g n T r a f f i c ........................................................................................................ 9 5

T ot al P r oj e ct e d C o n m er c e.................................................................................. 9 8

N et N e e d s.............................................................................................................................. 9 8

G e n e r a l.............................................................................................................................. 9 8

S h all o w - a n d D e e p - D r aft C h a n n els ............................................................. 9 8

P o rt s a n d H a r b o r s.................................................................................................. 9 8

WRP A 5 .................................................................................................................................................... 1 0 3

G e n e r al D es cri p ti o n ........................................................................................................ 1 0 3

E xis ti n g Ec o n o mic D e v el o p m e nt ....................................................................... 1 0 3

T r a ns p o rt ati o n F a c ili ti e s ( E xl u di n g W at er w a ys) ............................ 1 04

R a il r o a d s........................................................................................................................ 1 04

vi
4 2 7

T A B L E OF C O N T E N TS ( C o nt)

Pa ge N o.

Hi g h w a y s.............................................................................................. 1 0 4

A i rli n e s.............................................................................................. 1 0 4

P i p e li n e s .......................................................................................... 1 0 5

E xi sti n g N a vi g ati o n I m pr o ve me nts ..................................................... 1 0 5

G e n e r a l.................................................................................................. 1 0 5

S h all o w- D ra ft C h a n n els ..................................................................... 1 0 5

De e p- Dr aft C h a n n els .......................................................................... 1 0 6

L o c k s...................................................................................................... 1 0 8

B a r g e .................................................................................................. 1 0 8

S h i p ....................................................................................................... 1 0 8

P o r t s ....................................................................................................... 1 0 9

S hall o w D ra ft .................................................................................. 1 0 9

Pi n e Bl u ff H a r b o r...................................................................... 1 0 9

Ot he r p o rt f a c i l i t i e s .............................................................. 1 0 9

Deep D r a ft.......................................................................................... 1 0 9

N a vi g ati o n A i d s .................................................................................. 1 0 9

A ut h o riz e d N a vi g ati o n I m pr o ve me nts .................................................. 1 0 9

E xisti n g C o m m er ce.................................................................................. H O

G e n e r a l................................................................................................... H O

O ua c hita - Blac k R i v e r s ...................................................................... H O

Ar k a ns as Ri ve r P ort s a n d Har b ors .................................................. 1 1 0

Ve ssel C o m p ositi o n .................................................................................. 1 1 2

S h all o w - D ra ft V es sels ...................................................................... 1 1 2

F ut ure N e e d s............................................................................................... 1 1 2

Pr o s p ec ti v e C o m nerce .......................................................................... 1 1 2

G e n e r a l............................................................................................... H 2

I nla n d T ra ff ic .................................................................................. 1 1 4

T ot al P r o je cte d C o m ne rc e.............................................................. 1 1 4

Net N e e d s............................................................................................... 1 1 4

G e n e r a l.............................................................................................. H 4

v ii

5 4- 2 3 9 0 - 7 5 - 2 8
4 2 8

T A B L E O F C O N T E N T S ( C o n t )

P a g e N o .

S h a l l o w - a n d D e e p - D r a f t C h a n n e l . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 4

P o r t s a n d H a r b o r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 4

W R P A 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 1

G e n e r a l D e s c r i p t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 1

E x i s t i n g E c o n o m i c D e v e l o p m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 1

T r a n s p o r t a t i o n F a c i l i t i e s ( E x c l u d i n g W a t e r w a y s ) . . . . . . . . . . 1 2 2

R a i l r o a d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

H i g h w a y s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

A i r l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

P i p e l i n e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

E x i s t i n g N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

S h a l l o w - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2

D e e p - D r a f t C h a n n e l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

L o c k s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

P o r t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

S h a l l o w D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

L a k e P r o v i d e n c e H a r b o r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

O t h e r p o r t f a c i l i t i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3

D e e p D r a f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

S u m m a r y o f E x i s t i n g N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . . . . 1 2 4

A u t h o r i z e d N a v i g a t i o n I m p r o v e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

E x i s t i n g C o n m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

G e n e r a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

I n l a n d C o n m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

L a k e P r o v i d e n c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4

P r i v a t e T e r m i n a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5

C o a s t w i s e a n d F o r e i g n T r a d e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5

V e s s e l C o m p o s i t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5

F u t u r e N e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5

P r o s p e c t i v e C o m m e r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5

v i i i
4 2 9

B L E OF C O NT E NTS ( C o nt)

Pa ge N o.

G e n e ra l................................................................................................... 1 2 5

I nla n d T ra ff ic .................................................................................. 1 2 7

F o rei g n T ra ff ic .................................................................................. 1 2 7

T ot al P r o je ct e d C o n m e rc e.............................................................. 1 2 7

Net N e e d s................................................................................................... 1 2 7

G e n e r al................................................................................................... 1 2 7

S hall o w - a n d De e p- Draft C h a n n els ............................................. 1 2 7

L o c k s....................................................................................................... 1 2 7

P ort s a n d H a r b o r s.............................................................................. 1 2 7

WRP A 7 ............................................................................................................... 1 3 5

Ge ner al D es cri pti o n .................................................................................. 1 3 5

E xisti n g Ec o n o mic De vel o p me nt .......................................................... 1 3 5

T ra n s p ort ati o n F a ciliti e s ( E x cl u di n g Water w a ys) ..................... 1 3 6

R ail r o a d s............................................................................................... 1 3 6

H i g h w a y s............................................................................................... 1 3 6

A i r l i n e s ............................................................................................... 1 3 6

P i p e li n e s............................................................................................... 1 3 6

E xisti n g N a vi g ati o n I m pr o ve me nts ...................................................... 1 3 6

S h all o w - D ra ft C ha n nels ...................................................................... 1 3 6

De e p- Dr aft C h a n n els .............................................................................. 1 3 7

L o c k s........................................................................................................... 1 3 7

P o r t s ........................................................................................................... 1 3 7

S hall o w D ra ft ....................................................................................... 1 3 7

Dee p D r a f t........................................................................................... 1 3 7

A ut h o riz e d N a vi g ati o n I m pr o ve me nts .................................................. 1 3 7

E xisti n g C o m ne rc e....................................................................................... 1 3 7

G e n e r al....................................................................................................... 1 3 7

Natc h ez, M is si ss i p pi .......................................................................... 1 3 8

P ri v ate T e r m i n als.................................................................................. 1 3 8

Ve ssel C o m p ositi o n .................................................................................. 1 3 8

i x
4 3 0

B L E OF C O NT E NTS ( C o nt)

Pa ge N o.

F ut ure Nee ds .............................................................................................. 1 4 0

Pr os pe cti v e C o m merce .......................................................................... 1 4 0

G e n e r a l.............................................................................................. 1 4 0

Natc h ez, M is si ssi p pi ..................................................................... 1 4 0

P ri v ate Te r mi n als ......................................................................... 1 4 0

S u n mar y of Pr o s p ec ti v e C o m merce ............................................. 1 4 0

Net N e e d s.............................................................................................. 1 4 3

G e n e r a l.............................................................................................. 1 4 3

S hall o w - a n d De e p- Draft C ha n nels ............................................. 1 4 3

L o c k s.................................................................................................. 1 4 3

P ort s a n d H a r b o r s.......................................................................... 1 4 3

WRP A 8 .......................................................................................................... 1 4 7

Ge ner al D es cri pti o n .............................................................................. 1 4 7

E xisti n g Ec o n o mic De vel o p me nt ..................................................... 1 4 7

T ra n s p ort ati o n F a cil it ie s ( E x cl u di n g Water wa ys) ................. 1 4 7

R ail w a y s.............................................................................................. 1 4 7

Hi g h w a y s.............................................................................................. 1 4 8

A i rli n e s.............................................................................................. 1 4 8

P i p e li n e s .......................................................................................... 1 4 8

E xisti n g N a vi g ati o n I m pr o v e me nts ..................................................... 1 4 8

G e n e r a l.................................................................................................. 1 4 8

S h all o w - D ra ft C h a n n els ..................................................................... 1 4 8

P o r t s ...................................................................................................... 1 4 8

Bar ge L o c k s.......................................................................................... 1 4 9

N a vi g ati o n A i d s .................................................................................. 1 4 9

E xisti n g C o m merce .................................................................................. 1 5 3

G e n e r a l.................................................................................................. 1 5 3

I nla n d C o m merce .................................................................................. 1 5 3

G r a i n .................................................................................................. 1 5 3

C o a l...................................................................................................... 1 5 3
4 3 1

T A B L E OF C O N T E N TS ( C o nt)

Pa ge N o.

Petr ole u m a n d R el at e d Pr o d ucts ................................................. 1 5 3

Ir o n a n d S t e e l.................................................................................. 1 5 3

I n d u stria l C he mic als ...................................................................... 1 5 6

O t h e r ................................................................................................... 1 5 6

Ge ner al Car g o .................................................................................. 1 5 6

C o ast wi se Tra de .................................................................................. 1 5 6

F o rei g n Tr a de ...................................................................................... 1 5 6

G r ai n s................................................................................................... 1 5 6

Ir o n a n d S t e e l.................................................................................. 1 5 6

I n d u stria l C h e mi cals ...................................................................... 1 5 6

Al u mi n u m O r e s .................................................................................. 1 5 7

Ge ner al Car g o .................................................................................. 1 5 7

Ve ssel C o m p ositi o n .................................................................................. 1 5 7

F ut ure Nee ds .............................................................................................. 1 5 7

Pr o s p ec ti ve C o m merce .......................................................................... 1 5 7

Net N e e d s.............................................................................................. 1 5 7

WRP A 9 ............................................................................................................... 1 6 7

Ge ner al D es cri pti o n .............................................................................. 1 6 7

E xisti n g Ec o n o mic De vel o p me nt ...................................................... 1 6 7

T ra n s p ort ati o n F a cil it ie s ( E xcl u di n g Water wa ys)..................... 1 6 8

R ail w a y s............................................................................................... 1 6 8

Hi g h w a y s............................................................................................... 1 6 8

A i rli n e s............................................................................................... 1 6 8

P i p e li n e s ........................................................................................... 1 6 8

E xisti n g N a vi g ati o n I m pr o ve me nts ...................................................... 1 6 9

G e n e r a l................................................................................................... 1 6 9

S h all o w- D ra ft C h a n n els ...................................................................... 1 6 9

De e p- Draft C h a n n els .......................................................................... 1 6 9

L o c k s....................................................................................................... 1 7 2

P o r t s ....................................................................................................... 1 7 2

xi
4 3 2

B L E OF C O N T E N TS ( C o nt)

Pa ge N o.

N a vi g ati o n A i d s...................................................................................... 1 7 3

A ut h o riz e d N a vi g ati o n I m pr o ve me nts ................................................. 1 7 3

S h all o w - D ra ft C ha n nels ..................................................................... 1 7 3

De e p- Dr aft C ha n nels .............................................................................. 1 7 3

L o c k s.......................................................................................................... 1 7 3

E xisti n g C o m merce ...................................................................................... 1 7 5

G e n e r al...................................................................................................... 1 7 5

I nla n d C o m ne rc e...................................................................................... 1 7 5

G r a i n ...................................................................................................... 1 7 5

C o a l...................................................................................................... 1 7 5

P etr ole u m .............................................................................................. 1 7 5

Ce me nt, St o n e, Sa n d, a n d A g gre gat e ( CS S A) ............................. 1 7 5

S ul p h u r.................................................................................................. 1 7 5

Ir o n a n d S t e e l .................................................................................. 1 7 8

I n d u str ia l C h e micals ...................................................................... 1 7 8

A g ri c ult u ra l C he mic als .................................................................. 1 7 8

O t h e r...................................................................................................... 1 7 8

Ge ner al Car g o ...................................................................................... 1 7 8

C o ast wi se Tr a de ...................................................................................... 1 7 8

F o rei g n Tra de .......................................................................................... 1 7 9

Ve ssel C o m p ositi o n .................................................................................. 1 7 9

F ut ure Nee ds .............................................................................................. 1 7 9

P r o s p ec ti v e C o m merce .......................................................................... 1 7 9

Net N e e d s.................................................................................................. 1 8 5

S h all o w- D ra ft C h a n n els .................................................................. 1 8 5

De e p- Draft C ha n nels .......................................................................... 1 8 5

L o c k s...................................................................................................... 1 8 5

Har b o rs a n d P o r t s .............................................................................. 1 8 5

WRP A 1 0 .............................................................................................................. 1 8 9

Ge ner al D es cri pti o n .................................................................................. 1 8 9

x ii
4 3 3

B L E OF C O N T E N TS ( C o nt)

Pa ge N o.

E xisti n g Ec o n o mic De vel o p me nt ............................................................ 1 8 9

T ra n s p ort ati o n F a ciliti e s ( E x cl u di n g Water w a y)............................ 1 9 0

R a il w a y s............................................................................................... 1 9 0

H i g h w a y s............................................................................................... 1 9 0

A i r l i n e s ............................................................................................... 1 9 0

P i p e li n e s............................................................................................... 1 9 1

E xisti n g N a vi g ati o n I m pr o ve me nts ...................................................... 1 9 1

G e n e r al....................................................................................................... 1 9 1

S h all o w- D ra ft C h a n n els ...................................................................... 1 9 1

De e p- Dr aft C ha n nels .............................................................................. 1 9 1

L o c k s........................................................................................................... 1 9 2

P ort s ....................................................................................................... 1 9 2

N a vi g ati o n Ai d s ....................................................................................... 1 9 7

A ut h o riz e d N a vi g ati o n I m pr o ve me nts .................................................. 1 9 8

S h all o w- D ra ft C h a n n els ...................................................................... 1 9 8

De e p- Dr aft C h a n n els ............................................................................... 1 9 8

L o c k s........................................................................................................... 2 0 1

P o r t s ........................................................................................................... 2 0 1

E xisti n g C o m merce ....................................................................................... 2 0 1

G e n e r al....................................................................................................... 2 0 1

I nla n d C o m ne rc e....................................................................................... 2 0 1

G r a i n....................................................................................................... 2 0 1

C o a l....................................................................................................... 2 0 1

P etr ole u m ............................................................................................... 2 0 2

Ce me nt, St o n e, Sa n d, a n d A g gre gate ( CS S A) ............................. 2 0 2

S ul p h u r................................................................................................... 2 0 2

Ir o n a n d S t e e l ................................................................................... 2 0 2

I n d u stria l C he mic als ...................................................................... 2 0 2

A g ri c ult u ra l C he mic als .................................................................. 2 0 6

O t h e r....................................................................................................... 2 0 6

x iii
4 3 4

T A B L E O F C O N TE N T S ( C o nt )

P a g e N o.

G e n e r al C ar g o .................................................................................................................. 2 0 6

C o as t wis e Tr a d e .................................................................................................................. 2 0 6

F o r ei g n Tr a d e ........................................................................................................................ 2 0 6

P o rt o f Ne w O rl e a n s........................................................................................................ 2 0 7

V es s el C o m p osi ti o n ............................................................................................................. 2 0 8

F ut ur e N e e ds .............................................................................................................................. 2 0 8

Pr os p ec ti v e C o ni n e r c e.................................................................................................. 2 0 8

N et N e e d s................................................................................................................................... 2 0 8

S h all o w - D r a ft C h a n n els ........................................................................................ 2 0 8

D e e p - D r aft C h a n n els .................................................................................................. 2 0 8

L o c k s......................................................................................................................................... 2 1 8

S h all o w - d r a ft l o c k s ............................................................................................. 2 18

D e e p- dr af t l o c k s .................................................................................................. 2 1 8

H ar b or s a n d P o r t s........................................................................................................ 2 1 8

M E T H O D O L O G Y......................................................................................................................................... 2 21

E xis ti n g W at e r b or n e C o m m erce .................................................................................. 2 21

P r o j e cti o n P ar a m et e rs ........................................................................................................ 2 21

P r o j e cti o n U nit s ................................................................................................................... 2 2 2

N e e d s

........................................................................................................................................ . . 2 2 3

G L O S S A R Y.............................................................................................................................................. 2 2 7

xi v
4 3 5

L I S T O F F I G U R E S

F i g u r e N o .

1 S t u d y A r e a - M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . .

2 W R P A 1 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

3 W R P A 2 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

4 W R P A 3 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

5 W R P A 4 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

6 W R P A S M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

7 W R P A 6 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . . .

8 W R P A 7 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . .

9 W R P A 8 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . .

1 0 W R P A 9 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . .

1 1 W R P A 1 0 M a j o r S t r e a m s a n d N a v i g a b l e W a t e r w a y s . . . . . . . . . .

P a g e N o .

3 3

4 8

6 5

8 1

1 0 1

1 1 9

1 3 3

1 4 6

1 6 5

1 8 8

2 1 9

L I S T O F T A B L E S

N o .

1 R e g i o n a l S u m m a r y , H i s t o r i c a l D a t a - P r i n c i p l e W a t e r w a y

R e a c h e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 R e g i o n a l S u m m a r y , H i s t o r i c a l D a t a - P r i n c i p a l P o r t s . . .

3 R e g i o n a l S u m m a r y , E x i s t i n g W a t e r w a y I m p r o v e m e n t . . . . . . . .

4 P u b l i c P o r t A u t h o r i t i e s L o c a t e d i n S t u d y A r e a - 1 9 7 0 . . .

5 R e g i o n a l S u m m a r y , P r e s e n t a n d P r o s p e c t i v e C o m m e r c e P o r t

T r a f f i c ( T h o u s a n d S h o r t T o n s ) . . . . . . . . . . . . . . . . . . . . . . . . .

6 R e g i o n a l S u n m a r y , P r e s e n t a n d P r o s p e c t i v e C o m m e r c e

W a t e r w a y T r a f f i c ( T h o u s a n d T o n - M i l e s ) . . . . . . . . . . . . . . . . .

7 G e n e r a l C a r g o V e s s e l C h a r a c t e r i s t i c s . . . . . . . . . . . . . . . . . . . . .

8 B u l k C a r r i e r C h a r a c t e r i s t i c s . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P a g e N o .

1 1

1 3

2 1

2 1

1 4

x v
4 3 6

LI S T OF T A B L ES ( C o nt)

. Pa ge N o.

Ta n ker C h a ra cte ri sti c s ....................................................................... 2 3

1 0 D is tri b uti o n of S hi p Si ze s - Ge neral Car g o .............................. 2 4

1 1 D istri b uti o n of S hi p Si ze s - B ul k C a r ri e r s.............................. 2 6

1 2 D istri b uti o n of S hi p Si ze s - T a n k e r s.......................................... 2 7

1 3 Re gi o nal S u m nar y, N a vi g ati o n Nee ds .............................................. 3 1

1 4 E xi sti n g I m pr o ve me nts, M is si ssi p pi Ri v er, C ai r o, I l l., t o

t h e G ulf o f Me xic o, WRP A 1 ......................................................... 3 7

1 5 1 9 7 0 Water b or ne C o m merce, WRP A 1 ( M is si ssi p pi Ri ver) . . . 3 9

1 6 Ve ssel T ri p s, 1 9 7 0, WRP A 1 ............................................................. 4 0

1 7 Ec o n o mic F o re c a st, WRP A 1, I n di ce s of P r o d u cti vit y b y

Maj o r I n d u s t ri e s............................................................................. 4 3

1 8 Pr es e nt a n d Pr o s p ecti v e C o m merce, WRP A 1 ( T o n- Miles x

1 0 ) ...................................................................................................... 4 4

1 9 N a vi g ati o n Nee ds, WRP A 1 ................................................................. 4 5

2 0 Cr u de Oil I m p o rts, Net Nee d s, WRP A 1 ........................................... 4 7

2 1 E xisti n g N a vi g ati o n I m pr o ve me nts, WRP A 2 .................................... 5 1

2 2 1 9 7 0 Water b or n e C o m merce, WRP A 2 ................................................. 5 6

2 3 V es sel T ri p s, 1 9 7 0, WRP A 2 .............................................................. 5 8

2 4 Ec o n o mic F ore c a st, WRP A 2, I n de x o f P r o d u cti vit y b y

Maj or I n d u s t ri e s............................................................................. 5 9

2 5 Pre se nt a n d Pr o s p ec ti v e Wat er b o r ne C o m merce, WRP A 2

( S h all o w D ra ft ) .............................................................................. 6 1

2 6 N a vi g ati o n Nee ds, WRP A 2 ................................................................... 6 3

2 7 E xisti n g N a vi g ati o n I m pr o ve me nts, WRP A 3 ................................... 6 9

x vi
4 3 7

LI S T OF T A B L ES ( C o nt)

N o. Pa ge N o.

2 8 1 9 7 0 Water b or ne C o m nerce, WRP A 3 ( T h o usa n d S h ort T o ns) . . 7 4

2 9 Ec o n o mic F ore ca st, WRP A 3, I n de x of P r o d u cti vit y b y

Maj or I n d u s t ri e s.............................................................................. 7 6

3 0 Pr es e nt a n d Pr o s p ec ti v e Water b or ne C o m nerce, WRP A 3,

S hall o w D ra ft P ort s ( T h o usa n d S h ort T o ns) ......................... 7 7

3 1 N a vi g ati o n Nee ds, WRP A 3 .................................................................. 7 9

3 2 E xisti n g N a vi g ati o n I m p r o ve me nts, WRP A 4 .............................. 8 5

3 3 N a vi g ati o n P r o je cts o n Ot h er Stre a m s, WRP A 4 ......................... 8 6

3 4 1 9 7 0 Water b or ne C o m nerc e, WRP A 4 ( T h o usa n d S h o rt T o n s) . . 9 2

3 5 Ve ssel T ri p s, WRP A 4, 1 9 7 0 .............................................................. 9 4

3 6 Ec o n o mic F ore c a st, WRP A 4, I n de x o f P r o d u cti vit y b y

Maj or I n d u s t ri e s.............................................................................. 9 6

3 7 Pre se nt a n d P r o s p ec ti v e Water b or n e C o m nerce, WRP A 4 . . . 9 7

3 8 N a vi g ati o n Nee ds, WRP A 4 .................................................................. 9 9

3 9 N a vi g ati o n P r o je cts o n T ri b uta r y Stre a m s, WRP A 5 ................. 1 0 5

4 0 E xisti n g N a vi g ati o n I m pr o ve me nts, WRP A 5 ................................. 1 0 7

4 1 1 9 7 0 Water b or ne C o m ner ce, WRP A 5 .................................................. I ll

4 2 V es sel T ri p s, 1 9 7 0, WRP A 5 .............................................................. 1 1 3

4 3 Ec o n o mic F o re c a st, WRP A 5, I n de x o f P r o d u cti vit y b y

Maj o r I n d u s t ri e s.............................................................................. 1 1 5

4 4 Pre se nt a n d Pr o s p ec ti v e Water b or n e C o m nerce, WRP A 5

S hall o w D ra ft .................................................................................. 1 1 6

4 5 N a vi g ati o n Ne e ds, WRP A 5 ................................................................... 1 1 7

4 6 N a vi g ati o n P r o je cts, WRP A 6 ............................................................ 1 2 3

x vii
4 3 8

LI S T OF T A B L ES ( C o nt)

N o. Pa ge N o.

4 7 E xisti n g N a vi g ati o n I m pr o ve me nts, WRP A 6 ................................. 1 24

4 8 1 9 7 0 Water b or n e C o m merce, WRP A 6 ................................................. 1 2 6

4 9 Ec o n o mic F ore c a st, WRP A 6, I n de x of P r o d u cti vit y b y

Maj or I n d u s tri e s.................................................................................. 1 2 8

5 0 Pre se nt a n d Pr os pe cti v e Water b or ne C o m merce, WRP A 6,

S h all o w D ra ft ( T h o usa n d S h ort T o ns) ........................................ 1 2 9

5 1 N a vi g ati o n Nee ds, WRP A 6 ...................................................................... 1 3 1

5 2 1 9 7 0 Water b or n e C o m merce, W RP A 7 ( T h o usa n d S h ort T o ns) . . 1 3 9

5 3 Ec o n o mic F ore c a st, WRP A 7, I n de x o f P r o d u cti vit y b y

Maj o r I n d u s tri e s............................................................................. 1 4 1

5 4 Pre se nt a n d Pr o s p ecti v e Water b or ne C o m merce, WRP A 7

( T h o usa n d S h ort T o ns) ................................................................. 1 4 2

5 5 N a vi g ati o n Nee ds, WRP A 7 ...................................................................... 1 4 4

5 6 E xisti n g N a vi g ati o n I m pr o ve m e nts, WRP A 8 ...................................... 1 5 0

5 7 P ort o f Bat o n R o u ge F a c iliti e s .......................................................... 1 5 2

5 8 1 9 7 0 Water b or n e C o m merce, WRP A 8 ( S h o rt T o n s) ..................... 1 5 4

5 9 Ve ssel T ri p s, 1 9 7 0, WRP A 8 .................................................................. 1 5 9

6 0 Ec o n o mic F ore c a st, WRP A 8, I n di ce s o f P r o d u cti vit y b y

Maj o r I n d u s t ri e s.................................................................................. 1 61

6 1 Pr es e nt a n d Pr os pe cti v e Water b or ne C o m merce, WRP A 8 . . . 1 6 2

6 2 N a vi g ati o n Nee ds, WRP A 8 ...................................................................... 1 6 3

6 3 E xisti n g N a vi g ati o n I m pr o ve m e nts, WRP A 9 ...................................... 1 7 0

6 4 A ut h orize d N a vi g ati o n I m pr o ve me nts, WRP A 9 .............................. 1 7 4

6 5 1 9 7 0 Water b or n e C o m merce, WRP A 9 ...................................................... 1 7 6

6 6 Ve ssel T ri p s, 1 9 7 0, WRP A 9 .................................................................. 1 8 0

x v ii i
4 3 9

LI S T OF T A B L ES ( C o nt)

6 7 Ec o n o mic F o re c a st, WRP A 9, I n di ce s o f P r o d u cti vit y b y

Maj o r I n d u s t ri e s.............................................................................. 1 8 1

6 8 Pre se nt a n d Pr o s p ec ti v e Water b or ne C o n m erce, WRP A 9 . . . 1 8 2

6 9 N a vi g ati o n Ne e ds, WRF A 9 ........................................................... 1 8 6

7 0 E xisti n g N a vi g ati o n I m pr o ve me nts, WRF A 1 0 ...................... 1 9 3

7 1 P o rt of Ne w Orle a n s F a cil it ie s ...................................................... 1 9 6

7 2 A ut h oriz e d N a vi g ati o n I m pr o ve me nts, WRP A 1 0 ..................... 1 9 9

7 3 1 9 7 0 Water b or ne C o m merce, WRP A 1 0 ( T h o usa n d S h ort T o ns) . 2 0 3

7 4 V es sel T ri p s, 1 9 7 0, WRP A 1 0 ................................................... 2 0 9

7 5 Ec o n o mic F o re c a st, WRP A 1 0, I n di ce s o f P r o d u cti vit y b y

Maj o r I n d u s tri e s....................................................................... 2 1 2

7 6 Pre se nt a n d P r o s p ec ti ve Wate r b or ne C o m merce, WRP A 1 0 . . . 2 1 3

7 7 N a vi g ati o n Ne e ds, WRF A 1 0 ....................................................... 2 1 6

7 8 Water b or ne C o m merce C o n m o dit y C la s sif ic ati o n ...................... 2 2 4

P H OT O G R AP HS

T he p h ot o gr a p hs i n cl u d e d i n t h is a p pe n di x wer e f u r n is he d b y:

Pa ge N o.

A. L. Mec hli n g Bar g e Li n es, I n c. 8, 1 7

L y kes Br o s. Ste a m s hi p C o., I n c. 2 0

U. S. Ar m y C or ps o f E n gi ne er s 1 0, 2 2, 3 5, 5 5, 5 7, 7 0, 7 3

8 9, 1 3 0, 1 5 1, 1 5 8, 1 9 5

I n gra m Ocea n S y ste ms, I n c. 2 5

Ne w Orle a n s P o rt C o m missi o n 1 9

xi x
4 4 0

P H O T O G R A P H S ( C o n t)

Pa ge N o

G r e e n v ill e P o rt C o n m is si o n 8 8

U. S. D e p art m e n t o f C o m ne rc e M ariti m e A d m i n i str ati o n 2 9

x x
4 4 1

T R O D U C T I O N

P U RP OS E

T he p ur p o se of t h is a p pe n di x is t o make a br o a d deter mi nati o n of 

t he L o wer Mis sis si p pi Re gi o n's na vi gati o n nee ds f o r t he 50 - y ea r pe ri o d 

197 0-2 02 0, as a nal yze d u n der t w o o bje cti v es - t h at of nati o n al i nc o me 

a n d t h at of re gi o n al de vel o p me nt. T his asse ss me nt w ill p oi nt t o t he 

na vi gati o n pr o ble ms a n d nee ds t h at ca n be e x p ect e d t o ari se d uri n g t he 

50 - y ea r pe ri o d of st u d y. Det er mi nati o n ca n t he n be made of t he pr o per 

means t o s ol ve s uc h pr o ble ms - w het her it be dee per a n d wi der water wa ys, 

ne w or la r g er l oc ks, water wa y e xte nsi o ns, i m pr o ve d ha r b or f a ciliti e s, 

or of fs h or e te r m i n al s.

S C OP E

Hist o ri ca l a n d pr oj ecte d c o n merce e v al u ate d i n t h is st u d y was 

li m ite d o nl y t o t h e wat er b or n e c o m merce m o vin g i n a n d t hr o u g h t he re gi o n. 

T o n nage dat a use d i n t h e a n al ysis were o btai ne d f o r t he bas e ye ar 1970 

fr o m t he De part me nt of t h e Ar m y, C or ps of E n gi neers p u blic ati o n Water b or ne 

C o m merce of t he U nite d State s ( P art 2, 19 70).

P R ES E NT ATI O N

I n or der t o pr o vi d e a p ra cti c al ba si s f o r pl a n f or m ul ati o n, t he 

re gi o n has bee n s u b di vi de d i nt o te n water res o u rc e pla n ni n g ar ea s ( W R P A's) 

T he na vi gati o n nee ds f o r eac h of t he s u b di vi si o ns are pr es e nte d se pa ratel y 

i n t h is a p pe n di x. T he pla n ni n g are as ar e as f oll o ws :

WRP A 1. T he mai n ste m of t h e Mississi p pi Ri v er bel o w t he m o ut h of 

t he O hi o e xt e n di n g t o a n d i ncl u di n g t he le v ees or t o t he t o p ba n k w here 

le v ees d o n ot e xis t.

WRP A 2. T he St. Fra ncis, Lc wer W hite, a n d Ba yo u Meto Ba si n s, 

i ncl u di n g t he Ar ka nsas Ri ver bel o w Pi ne Bl uf f, Ar k a ns as, a n d t he St.

J o h ns- Ne w Ma dri d Fl o o4 <a y ar ea.

WRP A 3. T he ba si ns i n west Ke nt uc k y, west Te n nes see, t he Cair o 

ar ea, a n d e xtre me n o rt h Mis si ssi p pi.

WRP A 4. T he Yazo o Basi n.
4 4 2

P A 5. T he O u ac hit a B a si n, i n cl u di n g t h e L o wer Re d Ri v er b ele x 

H ot W ells, L o uis ia n a.

WRP A 6. T he B o e uf a n d T e n sa s B as i n.

WRP A 7. T he Bi g Bl ac k B asi n a n d b a si n s o f s o ut h w est M is sis si p pi 

st re a m s t h at d r ai n i n t o t h e M is sis si p pi Ri v er.

WRP A 8. T he Bat o n R o u ge a r e a, i n cl u di n g t h e dra i n a g e a re a o f 

st re a m s t h at fl o w i n t o La ke P o ntc h a rtr ai n e x ce pt f o r t h e T c h ef u n ct a 

Ri v er a n d st re a m s t o t h e e a st.

WRP A 9. T he L o uisia n a C o a st al a r e a fr o m t h e e a st li m its o f t h e 

A tc h afa la y a Fl o o d w a y t o t h e Sa bi ne Ri v er.

WRP A 1 0. T he Ne w O rl ea ns a r e a, i n cl u di n g t h e T c h ef u n ct a a re a a n d 

t h e a re a e a st o f t h e Atc h afa la y a Fl o o d wa y.

AS S U MP TI O N S A N D C O N ST R AI N T S

A d ete r m i n ati o n o f t h e i nte r m o d al d i stri b u ti o n s o f e x is ti n g a n d 

f ut u r e c o m mer ce o f t h e re gi o n w o ul d r e fl e c t t h e i d e al sit u a ti o n . H o w e ve r, 

a c o m p ar ati v e r a t e a n al y sis o f a ll tr a n s p o rta ti o n m o des i s n ot c o n si d ere d 

t o be w it hi n t h e sc o p e o f a T y pe I st u d y. T h ere f o re , i t i s ass u m e d t h at 

f ut u re r ate str u ct u r e s w il l be s uc h, t h at w ate r tr a n s p o rta ti o n w ill 

m ai ntai n at l e a st it s p r e s e nt p r o p o rt i o n o f t h e t o t a l c o m merce n o w m o vi n g 

i n t h e L o wer M is sis si p pi Re gi o n.

R E L A TI O N S HI P T O O T H E R A PP E N DI C ES

T he N a vi g ati o n A p pe n di x i s r e la te d t o a ll ot h e r a p p e n dic e s, b ut 

p a rti c u l a rl y wit h A p pe n dic es B, Ec o n o mics, a n d D, I n v e nt o r y o f F a c iliti e s. 

I n f o r m ati o n de vel o pe d i n A p pe n di x B, Ec o n o mics, was us e d i n t h e 

N a v i g ati o n A p pe n di x t o p r o j e ct f ut u r e gr o wt h o f t h e re gi o n wit h r e s p e ct 

t o n a vi g ati o n re q uir e m e nts. A p pe n di x D, I n v e nt o r y o f F a c iliti e s, i s 

d ir e c tl y r e l a t e d t o t h e N a v i g ati o n A p pe n di x as i t pr o vi d es i n f o r m ati o n 

o n p o rt f a c iliti e s al o n g m ost o f t h e m aj or n a vi g a ble water w a y s i n t h e 

re gi o n. T he Pla n F or m ulati o n A p pe n di x p r e s e nts t h e pr o g ra m s t o s a ti s f y 

n a vi g ati o n n e e d s.

4 4 4

G I O N A L S U M M A R Y

DES C RI PTI O N

T he L o wer Mi ssi ssi p pi Re gi o n is a n i nte gr al part of t he gre at 

Mis sissi p pi Ri ver S yste m w hic h drai ns a p pr o xi matel y 4 1 perce nt of t he 

c o nti g u o us U nite d St at es. I n a d diti o n t o drai na g e, t he s yste m pr o vi des 

t he hea rtla n d of t he U nite d States wit h a vast net w ork of s hall o w - dr aft 

na vi g ati o n c ha n n els, meas uri n g s o me 1 2, 00 0 miles i n le n gt h.

T he h ub of t his i nla n d water wa y s yste m is t he mai n ste m o f t he 

Mis sissi p pi Ri ver w hich has it s ori gi n i n Lake It as ca, Mi n nes ota, a n d 

fl o ws i n a s o ut herl y dire cti o n f or o ver 2 30 0 miles t o t he G ulf of Me xic o.

Hist o ri call y, t he ri v er has bee n di vi d e d i nt o t wo se cti o n s, t he 

U pper a n d Lc wer Mi ssis si p pi Ri ver. T he u p per secti o n e xte n ds 1 36 6 miles 

fr o m it s s o urce i n Mi n nes ota t o Cair o, Illi n ois. T he l o wer s ecti o n, 

w hic h tra verse s t he e n tire le n gt h of t he L M1, e xte n ds fr o m t he c o n fl ue nce of t he U p per Missi ssi p pi a n d O hio Ri vers t o t he G ulf of Me xic o, a 

dist a nc e of 9 74 mile s.

I n t he Lc wer Mi ssis si p pi Re gi o n, t he mai n ste m is a n o pen c ha n nel 

d uri n g t he e n tire year a n d is t he mai n na vi gati o n al arter y f or t he 

L o wer Mi ssi ssi p pi Re gi o n's net w or k of na vi gati o n fee der c ha n nels. It is 

mai ntai ne d at a le w- water de pt h of 9 fe et a n d wi dt h of 3 00 feet fr o m 

Cair o, Illi n ois, t o Bat o n R ou ge, L o ui sia na, a dista n ce of 7 20 mile s. 

I m ple me ntati o n of a n a ut h orize d 1 2-f o ot dee p c ha n nel is c urre ntl y u n derwa y o n t his stretc h of t he ri v er. Fro m Bat o n R ou ge t o t he G ulf of 

Mexico, t he Mi ssis si p pi Ri ver is mai ntai n e d as a dee p- water s hi p c ha n nel 

( 4 0-f o ot c o ntr olli n g de pt h), t h us aff or di n g t he i nla n d s yste ms access t o 

i m p orta nt tra nss hi p pi n g p oi nt s, s uc h as Bat o n R ou ge a n d Ne w Orlea n s, 

L o uisia n a, f or pa rtici p ati o n i n w orl d tra de.

A d diti o nal dee p water c ha n nels al o n g t he re gi o n's c oast c o ntri b ute 

t o a lar g e v ol u me of ocea n b o me c o m merce, b ot h f orei g n a nd d o mestic.

An alte r n at e s hi p r o ute is pr o vi de d fr o m Ne w Orlea ns t o t he G ulf of 

Mexico via t he 7 6- mile Mis sissi p pi Ri ver - G ulf O utlet ( MR- GO) ti d e w ater 

c ha n nel ( 3 6- b y- 5 00 fe et ). I n t he s o ut h wester n pa rt of t he re gi o n, t he 

P ort of Lake C harles, l ocate d o n a 4 0- b y- 40 0 f o ot c ha n nel a p pr o xi matel y 

3 5 miles fr o m t he G ulf of Mexico, pr o vi de s t he oil refi ni n g a n d petr oc he mical pla nts i n t he area wit h dee p water access t o t he G ulf of Me xic o.

T he G ulf I ntra c o astal Water wa y ( GI W W), wit h a 1 2-f o ot mi ni mu m de pt h, 

c o mple ments t he Mi ssi ssi p pi Ri ver S yste ms b y pr o vi di n g s hall o w - dra ft 

tr affic access t o all p orts a n d c o n necti n g i nla n d water wa ys bet wee n 

Fl ori da a n d t he Te xas - Mexico b or d er, a t o tal dista n ce o ver 1 10 0 mil es.
4 4 5

T he 3 0 0- mile se g me nt t h at tra ve rse s t he e n tire c o ast al secti o n of t he 

L o wer Mi ssis si p pi Re gi on is t he h ub of t he GI W W. Besi des bei n g t he 

ge o gra p hical ce nt er, it is wit hi n t his se cti o n w here t he GI W W i nte rs ects 

t he Mis sissi p pi Ri ver at Ne w Orlea ns.

Nu mero us access c ha n nels a n d har b ors are mai ntai ne d al o n g t he 

L o uisia na c oast t o ser ve t he e ver-e x pa n di n g off s h o re oil e x pl or ati o n i n 

t he G ulf of Me xic o, as well as t he grc wi ng seaf o o d a n d men ha de n i n d ustri es 

re q uire m e nts. I n a d diti o n t o t he access c ha n nels, a vast net w or k of 

u n der water pi p eli ne s pr o vi de tra ns p ort f o r off s h o re oil t o o ns h ore 

i n st allati o n s.

Nu mero us ot h er s hall o w- dra ft c ha n nels, w hich c o ntri b ute gr eatl y t o 

it s ec o no mic gr o wt h, are l oc ate d wit hi n t he re gi o n. Water ways s uc h as 

t he Ar ka nsas, W olf, Yazo o, a n d Ar ka nsas - Blac k Ri vers pr o vi de access 

n ot o nl y t o s uc h p o rts as Pi ne Bl u ff, Ar ka nsas; Me m phis, Te n nessee; 

Vic ks b ur g, Mi ssi ssi p pi; a n d Mo nr oe, L o uisia n a; b ut c o nve y lar g e q u a ntitie s 

of di ve rse c o m merce t o t he re gi o n's dee p- draft p o rts. Det aile d data o n 

t hese water wa ys are pres e nte d i n t h eir res pecti v e W RP A's.

DE VEL OP ME NT

Ge neral

T he L o wer Mi ssi ssi p pi Re gi on, as well as a lar ge se g me nt of t he 

U nite d St at es, o wes much of it s de vel op me nt t o t he water tra ns p o rtati o n 

aff or de d b y t he Mi ssi ssi p pi Ri ver. T he ri v er has bee n a pa st s o urce of 

c hall e n ge a n d a d ve nt ur e f or man y, i ncl u di n g t he I n dia ns wh o se ttle d 

al o n g it s ba n ks a n d earl y e x pl orers s uc h as Herna n do DeS ot o ( 1 5 4 1),

Pie rre d'I b er ville ( 1 6 6 9), L o uis J o li et a n d Fat her Jac q ues Mar q uette 

( 1 6 7 3), a n d Sie ur La Salle ( 1 6 8 2). T his mi g ht y ri ve r has see n t he pa ssa ge of t he earl y bir c h bar k ca n oes of t he I n dia n s; t he ra ft s, fl at b o at s, 

a n d keel b oat s of t he se ttle rs a n d tra de rs; t he ea rl y si de a n d st e m - 

pa d dle w heel stea m b oats carr yi n g frei g ht a n d pass e n ge rs; a n d t o d a y' s 

m ode m di es el pc were d t o w b oats wit h t h eir m ulti ple t o ws of u p t o 4 0 

bar g es. W hile ocea n- g oi n g ves sels ca n n ot g o a b o ve Mile 2 25 at Bat on 

R ou ge, we ha ve wit n esse d t he ar ri val of t he lar g e bar ge- carr yi n g ocea n 

ves sel w hose s p ecial bar ges ma y well be f o u n d i n t he f ut ure at T ul sa, 

O kla ho ma; St. L o uis, Miss o uri; or u p t he O hio Ri ver.

Earl y C o m nerce

Ne w Orle a ns, f o u n de d i n 1 7 18, s o o n beca me t he pri nci pal o u tlet f or 

t he earl y se ttle rs d ue pri m aril y t o it s l oc ati o n near t he G ulf of Me xic o 

D urin g t he ea rl y ye ars, t he tr a ff ic was c hiefl y o ne- way ( dc wn ri v er) a n d 

arri ve d b y ra ft s, fl at b o at s, a n d ke el b oat s. T hese ves sel s br o u g ht s uc h
4 4 6

ite ms as p or k, be ef, fl o ur, c he ese, s u ga r, c ott o n, a n d w his ke y.

By t he t ur n of t he ni nete e nt h ce nt u r y, t he pr o ble m of t w o- wa y tr a f ­

fi c was s ol v e d. R o bert F ult o n, wit h hi s i ntr o d u cti o n of t he stea m b o at 

" Cler m o nt" i n 1 8 0 7, hel pe d us h er i n a ne w er a i n water tr a n s p ortati o n.

I n 1 8 1 2, t he p o rt of Ne w Orlea ns welco med t he fir st stea m b oat (t h e " Ne w 

Orle a ns") t o pl y t he Mississi p pi Ri v er. Afte r t h is , t he p o rt rec or de d 

2 1 ar ri v al s i n 1 8 1 4, ne arl y 2 00 i n 1 8 2 0, a n d m ore t ha n 1 00 0 i n 1 8 3 5.

By 1 85 0 t h er e were ne arl y 3 50 0 stea m b oat ar ri v al s i n Ne w Orl ea n s. Ot her 

p o rts i n t he re gi o n al s o fl o uris he d d uri n g t h is er a. Lar ge n u mbers of 

"c ott o n " b oats plie d t he Mississi p pi Ri v er, ta ki n g o n car g o at t he p o rts 

of Me m phis, Gre e n ville, Vic ks b ur g, a n d Natc h ez. Pl a ntati o n la n di n gs, 

w hic h li n e d t he ba n ks of t he Yaz o o a n d Red Ri ve rs al s o acc o m mo date d 

lar ge n u mbers of t h es e stea m b o ats; w hile strea ms s uc h as t he Ar ka nsas, 

W hite, O ua c hit a, a n d Talla hatc hi e were utili z e d b y t he s mall pac ket 

b o ats t o bri n g c ott o n a n d ot he r car g o t o mar ket. T he n u mber of ar ri v al s 

at t he se p o rts c o nti n u e d t o i nc re ase u ntil t he 1 8 8 0's , e ve n t h o u g h t he 

Ci vil War ha d ta ke n it s t o ll of t he pac ket fl e et a n d t he railr oa ds ha d 

ma de gr eat st ri d e s i n bec o mi n g t he c h ie f mo de of tr a n s p ortati o n of t he 

n ati o n's fr ei g ht. B ut t he he y da y of stea m b o ati n g o n t he ri v er was o v er, 

a n d t he gla m o ur of s uc h e ve nts as t he fa mo us R o bert E. Lee - Natc hez 

b o at race ( 1 8 7 0) was a t hi n g of t he pa st.

H o we ver, as t h e pac ket tra de de cli n e d, t he t o w b oat i n d u str y, t h o u g h 

s m all, was e mer gi n g as a s o u rce f o r c o nti n u e d tr a n s p ortati o n of fr ei g h t 

b y water. Ne w t o w b oat s s uc h as t he ste r n w he ele r " S pra g ue" ( 1 9 0 2) hel p e d 

t o kee p i n te re st i n water tr a n s p ortati o n ali v e. T his ve ss el o p erate d 

bet wee n L o u is vill e, K y., a n d Ne w Orlea ns w here it se t a rec or d i n 1 90 7 

b y p us hi n g 6 0 c oal bar ges t o ta lli n g 6 7, 3 0 7 t o ns. T o da y, t he 71 ye ar ol d 

cra ft is l oc ate d i n Vic k s b ur g, Mis si ssi p pi, w here it ser ve s as a maj or 

t o u ri st att ra cti o n.

I n te re st b y t he Fe der al g o ver n me nt i n i m pr o vi n g t he water wa ys al s o 

gai n e d i m pet us a ft e r t he t u r n of t he ce nt u r y. By 1 9 2 9, a 9-f o ot 

mi ni mu m de pt h c ha n nel was bei n g mai ntai ne d bet wee n Ne w Orlea ns a n d 

Pitts b u r g, Pe n ns yl va nia; a n d b y 1 9 4 0, a 9- f o ot c ha n n el was bei n g 

mai ntai ne d o n t he U p per M is sis si p pi t o Mi n nea p olis, Mi n n., a n d o n t he 

Illi n ois Ri v er t o C hica g o, Ill i n ois . F u rt h er i n te re st was sti m ulat e d 

b y t h e f or m ati o n of t h e Fe d eral Bar ge Li nes t o de m o nstrate t o pri v at e 

o p er at or s t he p ra cti c a bilit y a n d p r o fi ta bilit y of bar ge o p er ati o n s.

T he c o m bi nati o n of all t he se eff o rt s pr o v e d s u cc es sf ul. Water wa y 

tr a n s p ortati o n s he we d a ste a d y gr o wt h d uri n g t he 1 9 3 0's . T he yea rs 

f oll o wi n g t h e o ut bre a k of W W II pr o d uce d a p he n o me nal gr o wt h w hic h has 

c o nti n u e d t o date. M o de m te w b oats, ra n gi n g fr o m 1, 0 0 0 t o 9, 0 0 0 

h ors e pe w er, ca n be see n p us hi n g fr o m o ne t o as ma ny as 4 0 or 5 0 bar ges 

i n t he Lc wer Mis sis si p pi re gi o n. Ta ble 1 de pi ct s t h is gr o wt h f o r 

se ve ral water wa y rea c he s i n t he re gi o n, a n d ta bl e 2 s h o ws t he gr o wt h f o r 

s o me of t he re gi o n's pri n ci p al p o rt s.
4 4 7

a b le 1 - R e g i o na l S u m mar y 

H i st o ri c a l Data - P ri n ci p al Wat er wa y Re ac hes

Ye ar

Wat er wa y a n d Re ac h 1 9 4 0 1 9 5 0 ' 1 9 6 0 1 9 7 0

( T h o usa n d S h ort T o n s)

MI S S I S SI P PI RI V E R:

M o ut h o f O hi o Ri v er t o b ut 

n ot i n cl u di n g B at o n R o u ge,

La. 7, 0 5 6 2 2, 0 5 8 4 0, 1 5 0 8 5, 8 8 3

Bat o n R o u ge, La. t o b ut 

n ot i n cl u di n g Ne w

O rl e a n s, La. 1 1, 9 5 2 2 7, 6 4 8 5 2, 3 5 5 1 3 1, 6 7 0

Ne w O rl e a n s, La. t o

M o ut h o f M is sis si p pi

Ri v er P a ss es 2 3, 6 1 9 4 2, 3 7 7 7 9, 8 1 3 1 5 7, 5 9 7

GIJ LF I NT R A G O AS T A L W AT E R W A Y:

M is sis si p pi R i v er, La.

( Ne w O rl ea n s) t o

S a bi n e R i v er, Te x.

( E xc l u di n g M or g a n C it y - 

P o rt All e n R o ut e) 8, 0 2 3 2 1, 6 3 8 3 6, 2 6 4 6 5, 1 2 9

T a b le 2 - R e g i o n al S u m mary 

H i st o ri c al D at a - P ri n ci p al P o rt s

Y ea r

P ort 1 9 2 0 1 9 3 0 1 9 4 0 1 9 5 0 1 9 6 0 1 9 7 0

( T h o us a n d S h ort T o n s)

Me m p his, Te n n. 1 2 1 1, 5 0 1 1, 8 4 1 2, 9 3 8 6, 3 3 6 1 0, 0 1 8

Vic k s b ur g, Mis s. 2 8 1 6 3 3 2 4 4 6 1 9 2 6 2, 0 3 6

Bat o n R o u ge, La. 1, 2 0 0 4, 3 9 7 7, 5 0 1 1 2, 0 3 4 2 6, 5 8 6 4 5, 5 3 5

Ne w O rl e a n s, La. 2, 1 3 3 1 2, 7 2 3 1 9, 7 9 6 3 5, 1 2 5 5 6, 6 7 2 1 2 3, 6 7 4

La ke C h a rl e s, La. 6 3 6 1, 0 9 3 4, 2 4 4 1 3, 8 8 4 1 7, 4 3 3 1 7, 6 7 6
4 4 8

GI ON AL E C O N O MY

T he L o wer Mis si ssi p pi re gi o n has e x perie nc e d, al o n g wit h t he 

i m pr ove ment of it s water wa ys a n d m o d er nizati o n of water wa y tr a n s p ortati o n 

e q ui p me nt, a n i n fl u x of i n d ustr y al o n g t he ba n ks of t he Mis sis si p pi Ri v er 

a n d it s tr i b uta ri e s. T his has c o me a b o ut n ot o nl y beca u se of ec o n o mical 

a n d de pe n d a ble bar ge tr a n s p ortati o n b ut al s o bec a use of t he i nc re ase d 

nee d f o r lar g e a m o u nts of fre s h water as a ra w m at erial f o r i n d u str y.

Lar ge tr a cts of la n d ar e bei n g p urc hase d a n d pl a n ts c o nstr u cte d w here 

s uc h a g ri c ult ura l cr o p s as c ott o n a n d s u g arca ne o nce gre w i n a b u n da nce.

I n d u str y i n t h e re gi o n is q u ite di v ers ifie d. Fro m Cair o, Ill i n o i s, 

t o t he G ulf of Me xic o a n d bet wee n Ne w Orle a ns a n d La ke C h arl es, L a., o ne 

mi g ht see petr ole u m re fi n eri e s a n d re late d f a c iliti e s, i n d u st ri al a n d 

a g ri c u lt ural c he mic al pla nts, gr ai n el e v at o rs, pr oc es si n g pl a nts f o r 

f o o d a n d ki n dre d pr o d ucts, s hi p y ar ds, te xti le m ills, ma n ufact urers of 

pa pe r a n d relate d pr o d ucts, p o wer pla nts, ce me nt pla nts, a n d al u mi n u m 

c o n ple xes. I n a d diti o n t o t he a b o ve i n d u st ri e s, t he G ulf I ntr ac oa st al 

Water wa y a n d it s c o n necti n g c ha n n els s u p p ort a si ze a b le fi s hi n g i n d u str y 

a n d s ul p h ur a n d s alt mi ni n g.

T he maj or c o m m o dities (i n v ol u me) m o vi ng o ve r t he Mis sis si p pi Ri v er 

t o a n d fr o m i n d u st ri es wit hi n t he re gi o n, as well as t o pl a nts o utsi de 

t he ar ea, i ncl u d e petr ole u m a n d petr ole u m pr o d ucts, gr ai n a n d grai n 

pr o d ucts, c o al, sa n d a n d gr a v el, ir o n a n d ste el pr o d ucts, mis cell a ne o us 

or es, a n d pa p er a n d pa per pr o d ucts. Maj or pr o d u cts m o vin g o ver t he 

G ulf I n tr ac o astal Water wa y i ncl u d e petr ole u m a n d petr ole u m pr o d ucts, 

i n d u st ri al c he mi cal s, n o n m etallic mi n er al s, a n d u n ma n ufact ure d s h ell s.

T he Mis sis si p pi a n d O hi o Ri ve rs a n d t h eir tri b uta ri e s ha ve ha d a 

tre me n d o us i nfl u e n ce o n t he ec o n o mic gr o wt h of t he Lc wer Mis sis si p pi 

re gi o n i n t he pa st a n d will c o nti n u e t o pr o vi d e s u b st a n ti al i n p ut i n t he 

f ut u re. C urre nt a n d pr o p os e d e x pa nsi o n of hai b or a n d ter mi nal f a cil it i e s 

at p o rt s s uc h as Me mp his, Gre e n ville, Vic ks b ur g, Bat o n R o u ge, La ke C h arles, 

a n d Ne w Orlea ns ar e e x p ect e d t o meet m ost of t he nee ds i m p ose d b y t h is 

gr o wt h. Ne w water wa ys, s uc h as t he Ar ka nsas a n d t he a ut h o riz e d Red a n d 

Yaz o o Ri vers, w ill al s o hel p s u p p ort t he re gi o n's gr o wt h.

Ne w c o n ce pt s of i nter m o d al water tr a n s p or tati o n are n o w bec o mi n g 

visi b le o n o ur i nl a n d w at er s. T hese ne w Las h a n d Sea bee bar ges a n d t he 

s mall self - p r o p elle d mi ni s hi p, will c o m bi ne wit h t he c o nsta ntl y gr o wi n g 

fl e ets of c o n ve nti o nal bar ges a n d t o w b oats t o meet i n d u st r y's nee ds f o r 

eff ic ie nt l o w -c o st water tr a n s p or tati o n. Gia nt s u p ert a n kers ca n s o o n be 

e x pe cte d t o o p er ate i n t he offs h or e water s of t h e re gi o n. Gr o wi n g 

de ma n d b y l o cal i n te re st s al o n g t he c o ast f o r a s u p er p ort i n t he G ulf of 

Me xic o is bei n g f elt si n ce t he n ati o n's f u el nee ds ha ve bee n pr oj ecte d 

t o e xcee d t he d o me stic oil res er v es i n t h e ne ar f ut u re. Rece nt st u d ie s 

b y t he State of L o uisi a na a n d a gr o u p of oil c o m pa nies ha ve fa v ore d
4 4 9
l o ati n g a s u p er p o rt w it hi n t h e L o wer M is sis si p pi r e g i o n's o ff s h o re 

re a n e ar t h e M is sis si p pi Ri v er. S uc h a f a c ilit y , c o ul d c r e ate t h e 

ne e d f o r e x pa nsi o n o f t h e r e g i o n's p et r o le u m i n d u str y, f u rt h e r sti m ula ­

ti n g t h e ec o n o m y o f t h e a r e a.

E XI S TI N G N A VI G A TI O N I MP R O V E ME N T

P re si d e nt Ja m es M o nr oe si g n e d t h e Act o f 3 0 A p ril 1 8 2 4 t h at a u t h o rize d t h e C o r ps o f E n gi n ee rs t o u n d erta k e t h e i r f i r s t C i v il W or ks pr o g ra m - 

t h e i m pr o ve me nt o f st re a m s f o r n a vi g ati o n. S h o rt l y t h e r e a ft e r, w or k be ga n 

i n t h e L o wer M is sis si p pi r e gi o n. T h at w or k c o n sis te d o f re m o vi n g s n a g s 

a n d o b str u cti o n s fr o m t h e M is sis si p pi Ri v er. Si n c e t h a t ti m e t h e C or ps 

o f E n gi n ee rs ha s c o n str u cte d n e a rl y 2 0, 0 0 0 m il e s o f i n la n d a n d i n t r a ­

c o a sta l w at er wa ys i n t h e U nit e d S t ate s. T he L o wer M is sis si p pi re gi o n ha s 

n e a rl y 3 0 0 0 mil e s o f t h e s e a cti v el y us e d s h all e w - d r a ft w at er w a y s, m o st 

o f w hic h pr o vi d e a mi ni m u m d e pt h o f 9 f e et. T he G ulf I n tr a c o a sta l 

Wate r wa y pr o vi d e s a mi ni m u m o f 1 2 f e et. I n a d diti o n t o t h e s h all o w - d r a ft 

w at er w a y s, t h e re gi o n p r o vi d e s n e a rl y 5 0 0 mil e s o f d e e p - d r a ft c h a n n els, 

pre d o mi n at el y 4 0 -f o ot mi ni m u m c h a n nel d e pt h s. T a b le 3 s h o ws t h e mil es 

o f a cti v el y m ai n tai n e d s h all o w - a n d d e e p - d r a ft water w a y s b y W RP A.

T a b le 3 

E xis ti n g I

- R e gi o nal S u n m ar y

Water wa y I m p r o v e me nt

WRP A

Water wa y

S h all o w D ra ft Dee p D ra ft

( M il es ) ( M ile s)

T ota l

( M ile s)

7 2 0

2 7 1 V

9 9 1

3 2 8 3 2 8

1 8 9 1 8 9

3 5 1 3 5 1

2 7 3 2 7 3

7 0 5 1 0 0 8 0 5

1 0 4 0 0 8 1 4 8 1

T ota l 2, 9 6 6 4 5 2 3, 4 1 8

I n cl u d e s 2 2 a n d 1 5 m il e s, r e s p e cti v el y, w it hi n S o u t h w est Pa ss a n d 

S o ut h P a ss , a n d t h e i r b ar c h a n n els.

1/
4 5 1

T he ra pi d gr o wt h o f w ate r b or n e c o m merce h as be e n ac c o m p a nie d b y t h e 

c o n str u cti o n o f ma n y ne w p o rts a n d te r m i n als , b ot h p u bli c a n d p ri v at e, 

as w ell as e x p a n si o n o f o l d e r p o rts al o n g t h e ri v e r s a n d w at er wa ys i n 

t h e re gi o n. I n 1 9 7 0, Ne w O rl e a n s ra n k e d as t h e se c o n d p o rt f o r t o t a l 

w at er b or n e c o n me rce h a n dle d i n t h e U nite d S t a t e s, w hil e Bat o n R o u ge was 

s e v e nt h , La ke C h arl e s was t w e n ti et h , a n d Me m p his ra n k e d t h i r t y - f i r s t. 

F u rt h e r e v i d e n ce o f t h i s gr o wt h ca n be se e n b y t h e gr o w i n g n u m ber o f 

p u bli c p o rt a u t h o riti e s s a n cti o n e d b y t h e st a t e s i n t h e L o wer M is sis si p pi 

Re gi o n. T a b le 4 p r e s e nts t h e 1 9 7 0 li s ti n g o f t h e s e a u t h o riti e s.

E XI S TI N G 5 P R O SP E C TI V E C O M ME R CE

T he t o t a l w at er b or n e c o m m erce m o ve d o v er t h e w at er w a y s i n t h e 

U nit e d S t ate s i n 1 9 7 0 a m o u nte d t o 1, 5 3 1. 7 m il li o n t o n s, o f w hi c h 5 8 1 

m il li o n t o n s we re li s t e d as f o r ei g n c o m m erce a n d 9 5 0. 7 m il li o n t o n s 

w er e c r e d it e d t o d o m esti c m o ve m e nt s. T he 1 9 7 0 re c o r d s f o r 9 s ele cte d 

p o rt s i n t h e L o wer M is sis si p pi Re gi o n re v e al t h at o v er 1 3 p e rc e nt o f 

t h e U. S. t o t a l w at er b or n e c o m m erce was h a n dle d t h r o u g h t h e s e p o rts 

( 2 0 3. 8 ) m il li o n t o n s ). C o lle cti v el y, t h e s e 9 p o rts h a n dle d 8 p e rc e nt 

o f t h e f o re i g n c o m merce a n d 1 6 p e rc e nt o f t h e U. S. d o m esti c c o n me rce 

( 4 8. 1 a n d 1 5 5. 7 m il li o n t o n s, r e s p e cti v el y ). T he e x i sti n g a n d p r oje cte d 

c o m m erce f o r a ll p o rts i n t h e re gi o n a r e s h o w n b y W RP A’s f o r b ot h 

Pr o g ra m s A a n d B i n ta b le 5. T he p o rt t r a f f i c i s br o ke n d o w n i n t o 

i n la n d, c o a st w is e, a n d f o re i g n c o m mer ce.

A re c o r d t o t a l o f 3 1 8. 6 b illi o n t o n - m il e s o f t r a f f i c m o ve d o v er t h e 

i n la n d water w a y s i n 1 9 7 0. T he w at er w a y s i n t h e L o wer M is sis si p pi Re gi o n 

ac c o u nte d f o r 8 3. 7 6 b illi o n t o n - m il e s o r 2 6. 3 p e rc e nt o f t h e U. S. t o t a l. 

T he e x i sti n g t o n - m il e s c a r ri e d b y ea c h W RP A a re s h o w n f o r b ot h s h all o w - 

a n d d e e p - d r a ft t r a f f i c , a n d f o r Pr o g ra m s A a n d B, i n t a b l e 6.

Dre d gi n g i n t h e M is sis si p pi Ri v er.

1 0
4 5 2

Ta ble 4 - P u blic P ort A ut h o ritie s L ocate d i n St u d y Area - 1 9 70

State of L o uisia na

A b be ville Har b or a n d Ter mi n al D istric t 

A v o yelle s Pa ris h P ort C o m missi on 

Bat o n R ou ge P ort C o m missi o n 

Ca d d o- B o ssier Paris he s P ort C o m missi o n 

C ol u m bia P ort C o m missi o n 

C o nc or dia P ort C o m missi o n 

Delca m bre P ort C o m missi o n 

East Ca mer on P o rt, Har b or a n d 

Ter mi n al District

Gra nt Pa ris h P ort C o m missi o n

Gr eater Pla q ue mi nes Paris h P o rt A ut h o rit y

Je ff er s o n P ort C o m missi o n

J o n es ville P ort C o m missi o n 

Kr otz S pri n gs P ort C o m missi o n 

La fa yette Har b or § Ter mi nal D istric t 

Laf o urc he P ort C o m missi o n 

La ke C ha rles Har b or a n d Ter mi nal Distric t 

La ke Pr o vi de nc e P ort C o m missi o n 

Li vi n gst o n- Ta n gi p a h oa Pa ris he s P ort 

C o m missi on

Ma dis o n Paris h P ort C o n missi o n 

M ore h o use P o rt, Har b or a n d Ter mi nal 

D istric t

M or ga n Cit y Har b or a n d Ter mi nal D istric t 

Ne w I b eria P ort C o m missi o n 

P oi nt e C o upee P o rt, Har b or a n d Ter mi nal 

D istric t

P ort of Ne w Orlea ns 

Ra pi des Pa ris h P ort C o n missi o n 

Red Ri v er Na vi gati o n D istric t 

St. Ber nar d P o rt, Har b or a n d Ter mi nal 

D istric t

St. Ta m ma ny P ort C o n missi o n 

S o ut h L o uisia n a P ort C o m missi o n 

Te nsas Paris h P ort, Har b or a n d Ter mi nal 

D is tric t

Terre b o n ne P ort C o n missi o n 

U ni o n Paris h P ort, Har b or a n d Ter mi nal 

D is tric t

Vi nt o n Har b or a n d Ter mi nal D istric t 

West Calca sie u P o rt, Har b or a n d 

Ter mi nal D istric t

West Ca mer o n P o rt, Har b or a n d 

Ter mi nal D istric t

A b be ville, L o uisia na 

Si m nes p ort, L o uisia n a

P ort Alle n, L o uisi a na 

S hre v e p o rt, L o uisia na

C ol u m bia, L o uisia na

Vi d alia, L o uisia na

Delca m bre, L o uisia na

Ca mer o n, L o uisia n a 

Ale xa n dria, L o uisi a na 

Pla q ue mi nes Pa ri s h, L o uisia na 

Har ve y, L o uisia na 

J o n es ville, L o uisi a na 

Kr otz S p ri n gs, L o uisia na 

La fa yette, L o uisia na 

Galli a n o, L o uisi a na 

La ke C h arles, L o uisia na 

La ke Pr o vi d e nc e, L o uisia na

Al ba n y, L o uisia na 

T all ula h, L o uisi a na

M ore ho use P aris h, L o uisia n a 

Ber wic k, L o uisia n a 

Ne w I b er ia, L o uisia na

M or ga nza, L o uisia na 

Ne w Urie a n s, L o uisia na 

Al e xa n dria, L o uisia na 

Natc hit o c h es, L o uisia na

C hal mette, L o uisia na 

C o vi n gt o n, L o uisia na 

Ha h n ville, L o uisi a na

Te nsas Pa ri s h, L o uisia n a 

H ou ma, L o uisia na

U ni on Pa ri s h, L o uisi a na 

Vi nt o n, L o uisia na 

S ul p h u r, L o uisi a na 

Ca mer on P aris h, L o uisia na

11
4 5 3

Ta ble 4 - P iili c P ort A ut h oriti e s L o cat e d i n St u d y Area - 1 9 7 0 (c o nt' d )

Sta te of M is si ssi p pi

Clai b o r n e C o u nt y P ort C o m missi o n 

G re e n vill e P o rt C o m missi o n 

Natc hez- A da ms C o u nt y P o rt A ut h o rit y 

Warre n C o u nt y P ort C o m missi o n 

Was hi n gt o n C o u nt y P o rt C o m missi o n 

Vic ks b ur g P o rt C o m missi o n 

Yaz o o C o u nt y P o rt C o m missi o n

P o rt Gi bs o n, M is si ssi p pi 

G re e n ville, M is si ssi p pi 

N atc he z, M is si ssi p pi 

Vic k s b ur g, M is si ssi p pi 

G re e n ville, M is si ssi p pi 

Vic k s b ur g, M is si ssi p pi 

Yaz o o Cit y, M is si ssi p pi

Sta te of Mi ss o uri

N one

Sta te o f Ar ka nsas

Ca mde n P ort A ut h o rit y

El D ora d o P o rt A ut h o rit y

Hel e na P o rt A ut h o rit y

Pi n e B l u ff -J eff ers o n C o u nt y P o rt 

A ut h o rit y

West Me mp his P o rt 5 Har b or C o m missi o n

Ca m de n, Ar k a nsa s 

El D ora d o, Ar k a nsa s 

H ele na, Ar k a nsa s

Pi ne Bl u ff, Ar ka nsas 

West Me m p his, Ar ka nsas

Sta te of Ke nt uc k y

Hic k ma n Ri v er P o rt A ut h o rit y Hic k ma n, Ke nt uc k y

Sta te of Te n n ess ee

Me m p his a n d S hel b y C o u nt y P o rt

C o m nissi o n Me m p his, Te n n ess ee

Me m p his Ri v er fr o n t Har b o r C o m missi o n Me m p his, Te n nes see

1 2
re se nt a n d Pr o s p ec ti v e C o m merce P ort T r a ff ic 

( T h o us a n d S h ort T o ns)

Ta ble 5 - Re gi o nal S u m mar y

T ra ff ic Pr o gra m A Pr o g ra m B

WRP A Cate g or y 1 9 70 T9TK5 25 00 2 0 2 0 O T S 2 00 0 2 0 2 0

l l /

I nla n d

I nla n d 6, 5 0 7 8, 6 0 9 1 5, 8 8 1 2 9, 7 3 4 9, 2 7 4 1 8, 2 6 3 3 4, 9 6 1

I nla n d 1 0, 3 2 1 1 2, 1 9 7 2 3, 7 0 8 4 5, 0 0 7 1 4, 7 7 6 2 9, 2 3 9 5 5, 1 7 2

I nla n d 5, 9 2 2 9, 5 0 8 2 2, 5 3 9 3 7, 2 6 2 1 2, 0 6 2 2 6, 0 6 8 4 3, 9 4 8

F o rei g n 1 1 2 3 3 7 1 2 2 6 4 4

S u bt otal WRP A 4 5, 9 2 9 9, 5 1 9 2 2, 5 6 2 3 7, 2 9 9 1 2, 0 7 4 2 6, 0 9 4 4 3, 9 9 2

I nla n d 9 5 2 2, 2 2 7 3, 7 5 9 6, 7 3 5 2, 4 4 1 4, 3 4 7 7, 9 4 3

I nla n d 2, 3 6 1 3, 6 1 4 4, 7 0 5 8, 1 9 9 3, 9 6 2 5, 4 4 1 9, 6 7 0

I nla n d 8 4 5 1, 7 6 0 5, 2 2 7 7, 2 8 8 1, 9 2 9 6, 0 4 5 8, 5 9 5

F o rei g n 1 4 1 9 1 6 2 2

Si h t o ta l WRP A 7 8 4 7 1, 7 6 4 5, 2 4 1 7, 3 0 7 1, 9 3 4 6, 0 6 1 8, 6 1 7

I nla n d 2 2, 0 1 3 3 0, 2 4 3 5 5, 5 4 0 1 0 9, 4 9 0 3 3, 3 2 3 7 0, 0 2 7 1 4 9, 3 1 4

C o ast wise 9, 5 4 9 1 2, 7 2 3 2 1, 0 3 2 3 8, 4 6 8 1 4, 2 3 6 2 6, 7 5 1 5 2, 7 0 8

F o rei g n 1 3, 9 7 4 1 8, 9 0 3 3 3, 3 0 5 6 1, 4 4 0 2 0, 3 5 0 4 1, 2 1 9 8 3, 5 8 4

S u bt otal WRP A 8 4 5, 5 3 6 6 1, 8 6 9 1 0 9, 8 7 7 2 0 9, 3 9 8 6 7, 9 0 9 1 3 7, 9 9 7 2 8 5, 6 0 6

I nla n d 1 6, 5 1 1 2 3, 3 4 7 4 3. 8 S S 8 6, 1 2 5 2 5, 4 1 5 5 0, 4 5 6 1 0 1, 0 0 1

C o ast wise 3, 4 2 0 4, 5 8 2 8, 4 7 4 1 6, 5 9 2 4, 9 8 6 9, 7 5 3 1 9, 4 6 7

F o rei g n 1, 8 9 3 2, 6 6 4 4, 9 2 7 9, 6 4 7 2, 8 9 9 5, 6 7 0 1 1, 3 1 8

S u bt otal WRP A 9 2 1, 8 2 4 3 0, 5 9 3 5 7, 2 5 6 1 1 2, 3 6 4 3 3, 3 0 0 6 5, 8 7 9 1 3 1, 7 8 6

1 0 I nla n d 6 0, 0 5 2 7 9, 1 8 8 1 3 0, 7 7 0 2 3 1, 8 9 4 8 6, 2 7 6 1 5 7, 7 1 7 3 0 3, 8 4 1

10 C o ast wise 3 1, 4 0 7 4 0, 7 5 2 6 4, 8 1 2 1 1 2, 1 0 1 4 5, 6 8 6 8 0, 0 0 5 1 5 0, 9 9 5

1 0 F o rei g n 3 2, 2 1 5 4 2, 9 6 0 7 2, 8 5 8 1 3 0, 6 7 6 4 5, 3 8 9 8 5, 7 9 7 1 6 7, 8 2 8

S u bt otal WRP A 1 0 1 2 3, 6 7 4 1 6 2, 9 0 0 2 6 8, 4 4 0 4 7 4, 6 7 1 1 7 7, 3 5 1 3 2 3, 5 1 9 6 2 2, 6 6 4

T ot al I nla n d 1 2 5, 4 8 4 1 7 0, 6 9 3 3 0 5, 9 8 4 5 6 1, 7 3 4 1 8 9, 4 5 8 3 6 7, 6 0 3 7 1 4, 4 4 5

T o tal C oa st w ise 4 4, 3 7 6 5 8, 0 5 7 9 4, 3 1 8 1 6 7, 1 6 1 6 4, 9 0 8 1 1 6, 5 0 9 2 2 3, 1 7 0

T o tal F o rei g n 4 8, 0 9 1 6 4, 5 4 2 1 1 1, 1 2 7 2 0 1, 8 1 9 6 8, 6 5 5 1 3 2, 7 2 8 2 6 2, 7 9 6

Re gi o nal T otal 2 1 7, 9 5 1 2 9 3, 2 9 2 5 1 1, 4 2 9 9 3 0, 7 1 4 3 2 3, 0 2 1 6 1 6, 8 4 0 1, 2 0 0, 4 1 1

Data f o r M is si ssi p pi Ri v er p o rt s are i n cl u d e d i n t h e a d ja ce nt W R P A's

1/
4 5 5
4 5 6
4 5 7

V ESS E LS § VESS E L T R AF FI C

S hall o w Dra ft

T o w b oats a n d T u gs

T he gr eat va ri et y of i nla n d water wa ys i n t he st u d y ar ea is 

re fl ec te d i n t h e fl e et of t o w b oats use d. T hese b o at s ra n ge fr o m s mall 

b o ats of a fe w h u n dre d h ors e pc w er w hic h ar e use d wit hi n har b o rs a n d o n 

t h e s m aller str ea m s, u p t o t h e la r g er tc w b o ats of ne arl y 10,00 0 h o rs e ­

p o wer use d t o mo ve t he h u ge bar ge fl e ets o n t he Mis si ssi p pi Ri v er. T hese 

ve ss el s ra n ge i n si ze fr o m ar o u n d 35 fe et l o n g a n d 10 fe et wi de f o r t he 

s m alle st u p t o a b o ut 185 fe et l o n g a n d 60 fe et wi de f o r t h e la r g e st.

Dr aft s ge ne rall y d o n't e xcee d 8-9 fe et f o r t h es e i nla n d tc w b oats.

I n c o nt ra st t o t h e t o w b oats, w hic h ar e desi g n e d t o o p er ate o nl y i n 

i nla n d w at er s, t u g b o ats ar e v e rs atile w or k h o rse s w hic h d oc k a n d u n d oc k 

s hi ps i n o ur ocea n p o rt s, a n d mo ve bar ges a n d w or k ri g s. Lar ger ve rsi o n s 

ar e use d i n dee p sea t o wi n g j o bs. T hese b o ats mo ve t h eir te ws b y p u lli n g 

o n ha w sers, a n d, w hile t he y d o mo ve car g o ba r g es, t h eir maj or te wi n g 

d utie s are i n t he fi el d of e q ui p me nt m o ve me nts, s uc h as dre d ge s, d ar ri c k s, 

oil ri g s a n d t he li k e. T u g b oats re pr es e nt a narr o we r ra n ge of si ze s 

t ha n d o t o w b oat s. T hese ar e, ge ne rall y, fr o m 65 fe et t o 150 fe et i n 

le n gt h, 20 fe et t o 40 fe et wi d e, wit h dra ft s of fr o m 8 t o 15 fe et. 

H orse p o wer ra n ge s fr o m 350 f o r t he s m all er t u g s t o a b o ut 4500 f o r t he 

la r g e st.

B ot h t y p es ha ve e v ol ve d c o n si d era bl y i n t h e are as of ef fi ci e n c y a n d 

sa fet y o ver t he la st 30 ye ar s. Di esel p o wer c o m bi ne d w it h m ore e ff ic ie nt 

pr o p elle rs a n d tra ns missi o n s ha ve d o ne much t o kee p t h e c o st of bar ge 

tr a n s p or tati o n at l o w le v el s, w hile ra di os a n d ra da r ha ve made sa fe 

all- w eat h er se r vic e p o ssi ble f o r a n i n cr ea si n g n u m ber of t h e b o at s.

Bar ges

Bar ges use d i n t h e st u d y ar ea c o nsist of t h re e ge neral t y p es: b ul k 

li q ui d, o pe n h o p per, a n d c o vere d dr y car g o. I n a d diti o n, s o me s hi p p er s 

mai nt ai n fl e ets of hi g hl y s p ecializ e d bar ges desi g n e d t o ca rr y t h eir 

vari o us pr o d ucts, s uc h as ac i d s, I AJ G, li q ui d s ul p h u r, a m mo nia, a n d 

c hl o ri ne. Siz es var y gre atl y, h o we ver, t he t h re e si ze s w hic h pre d o mi ­

nate ar e t h e 35 fe et X 195 fe et X 9 fe et bar ge s a n d t he lar g e li q ui d 

car g o bar ges w hic h are us uall y 50 fe et X 250 fe et X 9 fe et or 50 fe et 

X 290 fe et X 9 fe et. Car g o ca pa citi es f o r t h es e 3 bar ge s are a b o ut 

1500 t o ns, 2200 t o n s a n d 3000 t o ns, re s p ec ti ve l y.

Ot h er f airl y c o m mo n t y p es of bar ges ar e dec k ba r g es, w hic h are 

desi g ne d f o r ca rr y i n g mac hi ner y a n d ve hi cl es, ra il r o a d ca r fl o ats, a n d 

de rric k ba r g es. T he ne west i n n o vati o n i n ba r g es, a n d o ne w hic h h ol d s 

gr eat pr o mise, is t h e bar ge w hic h is s p ec iall y desi g ne d t o be li fte d 

f u ll y l oa de d i nt o a n ocea n g oi n g m ot hers hi p a n d tr a n s p orte d o ve rse as f o r

16
4 5 8

T he M. V. Sara h Eliz a b et h

One of t he m o de m die sel- p o w ere d ve ss el s o p er ati n g o n t he i nl a n d 

water w a ys, a t o w b oat s uc h as t h is w ill p us h 2 5- 3 0 ba r g es.

1 7
4 5 9

off l oa di n g at a f or ei g n p ort fr o m w hich p oi nt t he bar ge a n d it s car g o 

ma y t he n be mo ve d b y t o w t o it s fi nal de sti nati o n, p os si bl y at a ri ve r 

p o rt. T he t wo c urre ntl y use d s yste ms are " Las h" a n d " S ea bee." T hese 

t wo s yste ms fe at u re bar ges w hic h are 6 1 fe et 6 i nc hes X 31 fe et 2 i nc hes 

X 12 feet a n d 9 5 fe et X 3 5 feet X 1 2 fe et, re s p ecti v el y.

Bar ge To ws

Bar ge t o ws var y gr eatl y wit h res pect t o b ot h n u mbers of bar ges a n d 

t h ei r c o n fi g urati o n. T he s maller nat ur al strea ms a n d c ha n nelize d wat erways are s uite d t o t o ws ra n gi n g ge n erall y fr o m o ne t o f o ur bar ges i n 

ta n de m, w hile t he Mi ssi ssi p pi Ri ver t hr o u g h t o ws ma y c o nsi st of as ma ny 

as 50 b ar g es. More efficie nt mo ve me nt of s uc h lar ge m ulti- b ar g e t o ws is 

ma de p os si ble b y t he de velo p ment of t he i nte g rate d te w. T hese te ws 

c o n sist of ma ny b ar ges desi g ne d t o be use d as a u n it. T he lea d bar ges 

ha ve be ws w hic h are ra ke d i n t he c o n ve nti o nal ma n ner, w hile t he st e m s 

are s q uare. T he re mai ni n g bar ges are s q uare at b ot h e n ds, t h u s, when 

las he d t o g et h er, t he c o mbi ne d u n der water h ull s ha pe rese m bles t h at of 

a si n gle lar g e ve ssel. T his eli mi nat es t he dra g cre ate d b y ma ny w ater ­

brea ki n g ra kes i n t he mi d dle of t he t o w.

Ot her Craft

I n a d diti o n t o t he bar ge t o w tr a ffic , t he re are f o ur ot h er si g nific a nt 

t y pes of s hallc w- dra ft c o m mercial ves sel s o pe rati n g i n t he re gi o n. T hese 

are fis hi n g b o ats, oil fi el d cre w b oat s a n d s u p pl y b o ats, a n d offs h ore 

c o n str u cti o n a n d drilli n g ve ssels. T hese ve ssels are see n pri ma ril y i n 

t he W RP A's 8, 9, a n d 10 a n d i n t he s o ut he r n reac hes of WRP A 1, near t he 

pr o li fi c oil a n d fis h pr o d uci n g areas al o n g t he G ulf of Me xic o.

Deep Draft

Ge neral

TTTe st u d y re gi o n c o nt ai ns t hr ee dee p water p o rt s, t he P ort s of Bat o n 

R ou ge, Lake C harles, a n d Ne w Orlea ns, w hich b y vi rt ue of t h eir a p pr oac h 

de pt h s, f a cilitie s, a n d a n n ual car g o es, ma y be c o nsi d ere d maj or w orl d 

p o rts. C o nse q ue ntl y, t he ra n ge of ves sel siz es a n d t y pes calli n g i n t he 

re gi o n are re pr es e ntati ve of t he w orl d fl e et, e xcl u di n g, of c o ur se, t he 

ma m mot h ta n k ers w hic h are n ot str ic tl y p ort ori e nte d.

Ge neral Carg o

Ge neral car g o ves sel s calli n g at re gi o n al p orts ra n ge fr o m a b o ut 

4 50 t o 6 00 fe et i n le n gt h, wit h bea ms of fr o m 6 0 t o 8 5 fe et. L oa ded 

dr afts var y fr o m 2 5 t o 35 fe et, us uall y. T hese ol de r, m ore tr a d iti o na l 

car g o li n er s, h o we ver, are bei n g s u p pl a nte d at a n i ncrea si n g rate b y 

c o ntai n er s hi p s a n d, t o a le ss er de gre e, b y li g hte r carr yi n g ves sel s s uc h 

as t he " Las h" a n d " Sea b ee."

C o ntai ner s hi p s var y i n le n gt h fr o m a b o ut 6 50 fe et t o 1 00 0 fe et, 

wit h bea ms ra n gi n g fr o m 9 0 fe et t o 1 10 fe et. F ull l oa d dr afts ma y be u p t o

18

5 4- 2 3 9 0 - 7 5 - 3 0


4 6 2

4 3 fe et. Re s pe cti v e di me nsi o ns f o r t he " Las h" ar e 8 14 fe et X 1 00 fe et 

X 3 5 fe et a n d f o r t he " Se a be e", 8 7 5 fe et X 1 06 fe et X 36 fe et. Ta ble 7 

pr es e nts s o me of t he pr i n ci pa l c h ara cte ri stic s of t he se ve ss el s.

Ta ble 7 - Ge neral Car g o Ves sel C ha ra ct eristi cs

Dea d wei g ht t o n na g e

Le n gt h

fe et

Bea m

fe et

Dra ft ( L oa ded) 

fe et

S pee d

k n ots

8, 7 5 0 ( Ge ne ral Car go) 4 56 6 7 2 6. 5 1 5. 5

1 1, 3 0 0 ( Ge neral Car g o) 4 94 6 9 2 9. 5 1 8. 0

1 4, 6 0 0 ( Ge ne ral Car go) 5 40 7 6 3 1. 5 2 0. 0

2 1, 0 0 0 ( Ge ne ral Car g o) 6 0 5 8 2 3 4. 0 2 0. 0

1 5, 6 0 0 ( C o ntai ner) 6 6 9 9 0 3 3 2 3. 0

1 9, 3 0 0 ( C o ntai ner) 7 19 9 5 34 2 3. 0

2 6, 3 0 0 ( C o ntai ner) 8 19 1 05 3 7 2 6. 0

4 8, 5 0 0 ( C o ntai ner) 9 5 0 1 06 4 2. 5 2 7. 0

4 3, 5 0 0 ( Las h) 8 14 1 00 3 5 2 3. 0

3 3, 3 5 0 ( Sea Bee) 8 75 1 06 36 2 1. 0

B ul k C ar ri er s

Dr y b ul k c a rr ie rs f air l y re pr es e n tati ve of t he w orl d fle et c all 

re g u la rl y at t h e ma ny gr ai n el e v at or s a n d ot he r b ul k ha n dli n g f a cil it i e s 

i n t he Re gi o n, alt h o u g h s o me of t he ver y la r g es t ar e e xcl u de d d ue t o 

d ra ft li m it ati o n s. Ta ble 8 s h o ws pr i n ci p al c h ara cte ri stic s of b ul k 

c a rr ie rs usi n g Re gi o nal p orts.

Ta ble 8 - B ul k C ar ri er C ha ra ct eristi cs

Dea d wei ght t o n na ge

Le n gt h

fe et

Bea m

fe et

Dra ft ( L oa ded) 

fe et

S pee d

k n ots

2 6, 0 0 0 6 0 5 7 8 34 1 6. 5

3 5, 0 0 0 6 6 0 9 0 3 5. 5 1 6. 5

6 0, 0 0 0 7 75 1 05 4 0. 5 1 6. 5

8 0, 0 0 0 8 20 1 22 4 3. 0 1 6. 5

1 0 0, 0 0 0 8 91 1 28 4 7. 0 1 6. 0

1 7 5, 0 0 0 1, 0 2 5 1 48 5 6. 0 1 6. 0

Ta n kers

T he t h re e maj or dee p w ater p o rt s i n t he Re gi o n ar e al s o maj or ce nt er s

2 1

4 6 4

of c he mic al, pet r oc he mi cal, a n d petr ole u m re fi ni n g a cti vit y, t h us, t he 

fl e et of ta n ke r ve ss el s ca lli n g at Re gi o n al p o rt s is b ot h lar g e a n d va rie d 

as t o si z e. T he s m alle st ar e t he o b s ol esc e nt T- 2 t y p es w hic h ar e bei n g 

ra pi dl y re plac e d b y ne wer ve ss el s, w hile t h e la r g est w hic h has ca ll e d 

is t he 1 6 7, 0 0 0 dea d wei g ht t o n ( D WT) b ul k/ oil c a rr ie r " F ur ness Bri d g e." 

Ta ble 9 pr es e nts s o me t y pic al ve ss els wit hi n t h is ra n ge a n d t h eir c h ar ­

a cte ri sti c s.

Ta bl e 9 - Ta n ker C ha ra ct eristi cs

Dea d weig ht t o n na ge

Le n gt h

fe et

Bea m

fe et

Dr aft ( L oa de d)

fe et

S pee d

k n ots

1 6, 9 0 0 5 23 6 8 3 0. 5 1 4. 5

2 5, 0 0 0 5 85 8 0 3 2. 0 1 4. 5

3 7, 0 0 0 6 60 9 0 3 5. 5 1 6. 5

4 7, 0 0 0 7 36 9 9 3 8. 0 1 6. 5

6 0, 0 0 0 7 75 1 05 4 0. 5 1 6. 5

7 0, 0 0 0 8 00 1 16 4 2. 0 1 6. 5

8 0, 0 0 0 8 20 1 22 4 3. 0 1 6. 5

9 0, 0 0 0 8 70 1 22 4 5. 0 1 6. 5

1 0 0, 0 0 0 8 91 1 28 4 7. 0 1 6. 5

2 2 5, 0 0 0 1, 0 9 0 1 60 6 4. 0 1 6. 0

F ut ure De vel o p me nts

Ge neral

S hall o w- a n d de e p - d ra ft s hi p pi n g ha ve see n ra pi d a n d dra matic 

de vel o p me nts i n t he la st se ve ral ye ar s. T his is e x p ect e d t o be tr u e of 

t he f ore se ea ble f ut u re. W hile it is n ot p o ssi ble t o pr e dict wit h e x actnes s t he de tail e d e xte nt of s uc h c ha n ges, t he ge neral dir ec ti o n of 

f ut ure tre n d s ca n be o u tli ne d.

S hall o w Dra ft

S h all o w - dr aft tr a n s p ortati o n i n t he f ut u re w ill b e n efit i n cr ea si n gl y 

fr o m tec h n ol o gic al a d va nces i n t he are as of sa fet y, na vi g ati o n a n d ma neuveri n g ai ds, a n d c o nstr u cti o n tec h ni q u es. Si nc e, t o a lar g e e x te nt, t o w 

a n d bar ge si ze s ar e a f u ncti o n of water wa y di m e nsi o ns, it is e x pe cte d 

t h at si ze i n cr ea se s will be m o d erate, t h o u g h maj or gr o wt h ca n be e x p ect e d 

i n a b s ol ut e n u m bers of bar ge s a n d i n vari o us t y p es of s p ecializ e d ba r g es. 

One n ota ble e x ce pti o n will be de e p - d raft ocea n g oi n g t u g - ba r ge c o m bi nati o ns 

w hic h will li k el y a d va nce t o si ze s c o m par a ble t o t o da y' s s mall a n d medi u m 

ta n k er s.

T he ec o n o mies i n he re nt i n s uc h i nte r m o dal tec h ni q ue s as " Las h" a n d 

" Sea bee" will be re fl ec te d i n va st fl e ets of bar ges desi g ne d t o o p erate 

wit hi n s uc h s yst e ms.

2 3
4 6 5

Dee p Dra ft

I n cr ea si n g w orl d ocea n b o m e tr a d e will c o nti n u e t o pr o vi d e i m pet us 

f o r maj or i n vest me nt a n d a d va nce me nt i n t he ar ea of de e p - d ra ft s hi p pi n g 

m o des. S hi p s of all t y p es will c o nti n u e t o i n cr ea se i n b ot h si ze a n d 

n u m bers i n t he ne ar ter m, sl o wi n g s o me w hat as t he i m pact of s uc h i nc rea se d 

t o n na ge ca pa citi es is f elt. E ven as t he ma xi mu m si ze m oves t o war d 

sta bil it y, h o we ver, c o nti n u e d re pl ace m e nt of ol d er, s m all er s hi p s b y 

la r g er ve ss el s will re s u lt i n t he a vera g e si ze c o nti n ui n g t o i n cr ea se.

Ge neral car g o. As i n t h e re ce nt p as t, ge neral car g o c a rr ie rs will 

c o nti n u e t o s ho w ra pi d a n d dra matic c ha n ges. Hea vier i n ve st me nt i n 

s p ecial p o rt f a cil it i e s t o s u p p ort fa ste r car g o ha n dli n g a n d i nte r m o dal 

s hi p me nt met h o ds will be wi d es p rea d. I n a d diti o n t o t h e pr e vi o u sl y 

me nti o ne d " Las h" a n d " Sea b ee" s yste m s, ot he r u niti ze d- ca r g o m o vers will 

de v el o p. One s uc h c u rr e n tl y e x isti n g t y pe, t he " R oll- o n, R oll - o ff," 

will li k el y mo ve t o a str o n g p o siti o n i n ce rt ai n s p eciali ze d a p plic ati o ns. 

E fficie nc ie s i n h ere nt i n s uc h met h o ds will ulti m at el y re s ult i n t he 

de mise of much of t he tr a diti o n al bre a k- b ul k a n d " Tra m p stea mer " fle et, 

as o b s olete s hi ps ar e re ti re d a n d re plac e d b y u n itiz e d car g o m o vers.

Ot h er i m pr o ve me nts a n d i n n o v ati o n s i n b uil di n g te c h ni q u es, pr o p ulsi o n 

met h o d s, ma ne u veri n g ai ds a n d a ut o mate d c o nt r ols will c o nti n u e t o make 

t h e Ge neral Car g o fi el d t h e m ost "te c h n ol o g y i nte nsi v e" i n de e p - d ra ft 

s hi p pi n g. Ta ble 1 0 pr es e nts t h e pr oj ecte d c o m p ositi o n of t h e f ut u re 

w orl d fle et of ge n eral car g o ve ss el s.

Ta bl e 1 0 - Distri b uti o n of S hi p Si zes - Ge ne ral Ca r g o ^ 

— — — — — — — — — y

e a r

La r ge st Ge neral 

Car g o Ves sel i n 

W orl d Fl eet

A vera ge Ge ner al 

Car g o Ves sel i n 

W orl d Fl eet 

L o wer 25 % of S hi ps 

2 5- 50 % of S hi ps 

5 0- 70 % of S hi ps 

7 0- 80 % of S hi ps

1 97 0 1 98 0

D Wt(l O O O) n wT(i oo o)'

2 5. 7 2 3 3. 6 9

8. 0 9 8. 5 9

0- 4. 6 7 0- 4. 9 6

4. 6 7- 9. 0 7 4. 9 6- 9. 4 6

9. 0 7- 1 1. 1 0 9. 4 6- 1 1. 7 8

1 1. 1 0- 1 1. 9 3 1 1. 7 8- 1 2. 6 7

2 00 0 2 02 0

D W T(1 00 0) D WT( 10 00)

5 0. 0 0 5 0. 0 0

9. 7 0 1 0. 0 0

0- 5. 6 1 0- 6. 3 2

5. 6 1- 1 0. 8 8 6. 3 2- 1 2. 2 7

1 0. 8 8- 1 3. 3 1 1 2. 2 7- 1 5. 0 1

1 3. 3 1- 1 4. 3 1 1 5. 0 1- 1 6. 1 4

2 4
4 6 6
4 6 7

Ta ble 1 0 - D istri b uti o n o f S hi p Siz es - Ge n eral Ca r g o!/ (c o nt' d)

8 0-9 0 % o f S hi ps

9 0- 95 % o f S hi ps

9 5- 1 00 % o f S hi ps

Year

1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

E OT( 1 0 0 0)

1 1. 9 3- 1 2. 8 5

1 2. 8 5- 1 3. 7 3

1 3. 7 3- 2 4. 7 2

D O T( 1 0 0 0)

1 2. 6 7 - 1 3. 6 4

1 3. 6 4- 1 4. 5 7

1 4. 5 7 - 2 5. 7 2

P OT( 1 0 0 0)

1 4. 3 1 - 1 5. 4 1

1 5. 4 1 - 1 6. 4 6

1 6. 4 6- 5 0. 0 0

D O T( 1 0 0 0)

1 6. 1 4 - 1 7. 3 8

1 7. 3 8- 1 8. 5 6

1 8. 5 6- 5 0. 0 0

B ul k c a rrie r s. I n cr ea si n g w o rl d tr a d e i n g ra i n s, o re s, a n d ot h er

dr y b ul k c o n m o diti es w ill c o nti n ue t o s p ur t h e gr o wt h o f b ul k c a rrie r s. 

As s h o w n i n t h e f oll o wi n g ta b l e, t h e u p per siz e li m it is e x pe ct e d t o be 

a b o ut 4 0 0, 0 0 0 D O T, wit h S O pe rc e n t o f t h e 2 0 2 0 fl e et re m ai ni n g i n t h e 

r ela ti v el y s m all, u n der 3 5, 0 0 0 D OT cla s s. Ot h er c ha n ge s t o be see n i n 

t h i s cla s s o f v es se ls w ill be i n t h e ar ea s of a ut o m ate d s h i p c o ntr ol t o 

re d uc e cre w siz e s a n d i n s h or e si d e a n d s hi p b o ar d l o a di n g- u n l o a di n g 

e q ui p m e nt.

Ta ble 1 1 - D istri b uti o n o f S hi p Siz es - B ul k C a rrie r s !/

Year 

1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

P OT( 1 0 0 0) D O T(l O O O) D O T(I O O O) D O T( 10 0 0)

L ar ge st B ul k C arrie r

i n W orl d Fle et 1 7 0. 0 0 2 2 4. 0 0 4 0 0. 0 0 4 0 0. 0 0

A ver a ge B ul k C arrie r 

i n W orl d Fle et 1 6. 2 0 2 1. 0 3 3 0. 5 2 3 9. 8 4

L o wer 25 % o f S hi ps 0- 5. 7 2 0- 7. 4 1 0- 1 0. 7 6 0- 1 4. 0 4

2 5-5 0 % o f S hi ps 5. 7 2 - 1 3. 0 9 7. 4 1 - 1 6. 9 9 1 0. 7 6- 2 4. 6 4 1 4. 0 4- 3 2 1 1 6

5 0-7 0 % o f S hi ps 1 3. 0 9 - 2 0. 3 7 1 6. 9 9- 2 6. 4 3 2 4. 6 4- 3 8. 3 6 3 2. 1 6 - 5 0. 0 8

7 0-8 0 % o f S hi ps 2 0. 3 7- 2 5. 5 2 2 6. 4 3- 3 3. 1 3 3 8. 3 6- 4 8. 0 8 5 0. 0 8 - 6 2. 7 6

i / S o u r c e: U . S . De pa rt me nt o f C o m merce, Ma riti me A d m i nistr ati o n

( P r o je cti o n s p u blis he d i n Re p ort o f t h e A tl a nti c - P a cific 

I n te r o ce a n ic Ca n al St u d y C o m missi o n date d 1 De ce nte r 1 9 7 0. 

P r o je cti o n s de vel o p e d i n 1 9 6 8.)

2 6
4 6 8

Ta ble 1 - Distri b uti o n of S hi p Siz es - B ul k C arrie rs !/ (c o nt' d )

Year

1 97 0 1 98 0 2 0 00 2 0 20

D OT ( 10 0 0) D O T(1 00 0) D OT( 1 0 0 0) D O T(l0 0 0)

8 0- 90 % of S hi ps 2 5. 5 2- 3 3. 3 6 3 3. 1 3- 4 3. 3 0 4 8. 0 8- 6 2. 8 4 6 2. 7 6- 8 2. 0 4

9 0- 95 % of S hi ps 3 3. 3 6- 4 2. 1 1 4 3. 3 0- 5 9. 5 4 6 2. 8 4- 7 9. 3 2 8 2. 0 4- 1 0 3. 5 6

9 5- 1 00 % of S hi ps 4 2. 1 1- 1 7 0. 0 5 9. 5 4- 2 2 4. 0 7 9. 3 2- 4 0 0. 0 1 0 3. 5 6- 4 0 0. 0

Ta n ker s. T he w orl d ta n ke r fl e et of t he f ut u re is e x p ecte d t o devel o p i nt o t w o ge neral t y pe s; t he lar ge cr u d e oil c a rrie rs of u p t o 

1, 0 0 0, 0 0 0 D OT ca pa cit y, a n d a s m all er cl as s of petr ole u m pr o d uct a n d 

ot he r li q ui d pr o d uct ta n k er s. T he b or der bet wee n t he t w o cl as se s of 

ve ss el s will n ot be cl ea rl y dra w n a n d t h er e will be m uc h i nt erc ha n ge of 

p ur p ose o n eit h er i m n e diate si d e of it. T he lar g e cr u d e c arrie rs w ill, 

of ne ce ssit y, o p er ate bet wee n dee p water offs h or e te r m i n al s, wit h t h eir 

car g oes mo ve d t o a n d fr o m sa me vi a pi peli n es a n d/ o r s m all er ta n k er s, 

t he dra ft s of w hic h will all o w t he m t o c all at c o n ve nti o nal la n dsi de 

har b or s.

Maj or tec h n ol o gic al a d va nces will be see n i n t he ar ea of a ut o mate d 

s hi p c o nt r ols, a n d sa fet y a n d c olli si o n -a v oi d a n ce s yste m s i n t he la r g est 

s hi p s. T he ta bl e bel o w pr es e nts pr oje cte d c o m p ositi o n of t he w orl d 

ta n ke r fle et. It s h o ul d be n ote d t h at b y 2 0 2 0, f u ll y 5 0 per ce nt of t he 

fl e et will be e xcl u de d b y virt u e of d ra ft fr o m m ost maj or p o rt s i n t he 

U. S.

Ta ble 1 2 - Distri b uti o n of S hi p Si ze s - Ta n k ers !/

Year

1 97 0 1 98 0 2 00 0 2 02 0

D OT( 1 0 0 0) D OT fl 0 0 0) D OT ( 10 0 0) D OT( 1 0 0 0)

Lar ge st Ta n ker i n 

W orl d Fl eet 3 2 6. 0 0 7 6 2. 0 0 1, 0 0 0. 0 0 1, 0 0 0. 0 0

A vera ge Ta n ker i n

W orl d Fl eet 2 8. 9 6 4 3. 0 0 6 1. 7 0 7 8. 3 0

S o urce: U. S. De part me nt of C o m merce, Mariti m e A d mi nistrati o n ( Pr o ­

je cti o n s p u bli s h e d i n Re p ort of t he Atl a n ti c- P ac ific I n te roce a ni c Ca nal St u d y C o m nissi o n date d 1 Dece m ber 1 9 7 0. 

Pr oj ecti o ns de vel o pe d i n 1 9 6 8.)

2 7
4 6 9

a b le 1 2 - D i stri b u ti o n o f S hi p Siz e s - T a n k ers V ( c o nt’ d) 

Y ea r 

1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

L o wer 2 5 1 o f S hi ps

D W T( 1 0 00)

0- 1 5. 3 9

D W T'(l M 0 y

0- 2 2. 8 6

D W T( 1 00 0)

0 - 3 2. 8

D O T( 1 0 0 0)

0- 4 1. 6

2 5- 5 0 % o f S h i p s 1 5. 3 9- 2 7. 2 7 2 2. 8 6- 4 0. 5 4 3 2. 8 - 5 8. 1 4 1. 6 - 7 3. 8

5 0- 7 0 % o f S h i p s 2 7. 2 7- 3 6. 9 4 4 0. 5 4- 5 4. 8 6 5 8. 1 - 7 8. 7 7 3. 8 - 9 9. 8

7 0- 8 0 % o f S hi p s 3 6. 9 4- 4 4. 0 9 5 4. 8 6- 6 5. 4 6 7 8. 7 - 9 3. 9 9 9. 8 - 1 1 9. 2

8 0- 9 0 % o f S hi p s 4 4. 0 9- 5 6. 8 8 6 5. 4 6 - 8 4. 4 3 9 3. 9 - 1 2 1. 2 1 1 9. 2 - 1 5 3. 8

9 0- 9 5 % o f S hi ps 5 6. 8 8- 6 9. 0 3 8 4. 4 3- 1 0 2. 4 9 1 2 1. 2 - 1 4 7. 1 1 5 3. 8 - 1 8 6. 6

9 5- 1 0 0 % o f S hi p s 6 9. 0 3- 3 2 6. 0 1 0 2. 4 9- 7 6 2. 0 1 4 7. 1- 1 0 0 0. 0 1 8 6. 6- 1 0 0 0. 0

F U T U R E N E E DS

L o n g ra n g e n a vi g ati o n ne e d s p oi n t t o a n e v e nt u al 1 2 -f o ot i n la n d 

water wa y s y st e m f o r a la r g e se g me nt o f t h e M is sis si p pi a n d O hi o Ri v er 

V all e y s t o r e pla c e t h e st a n d ar d 9 -f o ot d e p t h t h a t, f o r t h e m ost p a rt, 

n o w e x is ts f o r s h all c w - d r a ft t r a f f i c . T his 1 2 -f o ot de pt h ne w p r e ­

v ail s o n s u c h w at er w a y s as t h e G ul f I n tr a c o a sta l Water wa y, s o me o f 

it s f e e d e r s, a n d t h e A tc h afa la y a Ri v er; is a ut h o riz e d f o r t h e Lc wer 

M is sis si p pi Ri v er; a n d p re li m i n a r y st u d ie s ha ve be e n u n d erta k e n o n 

t h e U p per M is sis si p pi, I lli n o i s, a n d O hi o R i v ers. A n i n la n d w ate rwa y s y st e m wit h a 1 2 -f o ot sta n d ar d de pt h w o ul d p er m it g r e ate r 

ec o n o mies o f o p e r ati o n f o r e x is ti n g s h all o w - d r a ft c r a ft a n d all o w 

f o r ne w c o n str u cti o n w hic h c o ul d ta k e f u ll a d v a n ta g e o f t h e g r e at e r 

c h a n ne l d e p t h.

T he p r oje cte d c o m p o siti o n o f oc ea n v e s s els o f t h e w orl d fl e e t, 

as p re vi o u sl y s h o w n i n ta ble s 1 0, 1 1, a n d 1 2, h as c r e ate d a ne e d f o r 

e n la r g e m e n t o f s o me d e e p - d r a ft c h a n n el s i n t h e Lc w er M is sis si p pi 

Re gi o n t o d e p t h s g r e at e r t h a n t h e e x i sti n g 4 0 f e e t, i f p o rts o n 

t h e s e c h a n n el s are t o c o nti n u e as i m p o rt a nt tr a n s s hi p pi n g p oi n ts 

f o r w orl d tr a d e. T h es e l a r g e r c h a n n el s w ill be ne e d e d p ri m a ril y

- S o u rc e: U. S. De part m e nt o f C o m m erce, M ariti m e A d m i n istr ati o n

( P r oje cti o n s p u bli s h e d i n R e p ort o f t h e A tl a n ti c - P a cif i c 

I nte r o c e a nic Ca nal St u d y C oiri nissi o n d ate d 1 De ce m be r 1 9 7 0. 

P r oje cti o n s de vel o pe d i n 1 9 6 8.)

2 8
4 7 0
4 7 1

t o acc o m m odate t he ve ss el s t h at ar e pr oj ecte d t o ca rr y dr y b ul k car g o 

a n d re fi ne d li q ui d pr o d ucts. T hese cate g o ri es ar e ma de u p of c o n m oditi e s s o va rie d i n t h eir ma ke- u p t h at a b ul k l oa di n g f a cil it y i n t h e G ulf 

w o ul d be i m pr actic a ble o n t he gr o u n ds of ec on o my a n d lac k of har m o ni o us 

o p er ati o n s a mo ng a gr eat n u mber of us er s. H o we ver, t he gr o wi n g nee d 

f o r i m p orte d cr u d e petr ole u m i n meeti n g t h e n ati o n's e ner g y de ma n d will 

re q uir e a s u pe r p ort f o r t h e G ulf ar ea t o acc o m m odate t h e s u pe rta n k ers 

t h at will be nee de d t o s ati sf y t h is de ma n d.

As ca n be see n a b o ve, sa ti sf yi n g t h e na vi gati o n nee ds i n t h e re gi o n 

will i n v ol v e m ore t ha n merel y i n s u ri n g t h at t he t h e o re ti c al ma xi mu m 

ca pa cit y of t h e water wa ys will acc o m m o date t h e c o n merce pr oj ecte d t o 

mo ve o ver t he m. T he tec h n ol o gic al a d va nce s i n t h e water tr a n s p ort will 

re q uire c ha n n el e nla r ge m e nts l o n g be f o re t h e p h ysical ca pa cit y of a 

water wa y is rea c he d, i f t he ec o n o mies of sc al e f o r t h is mo de of tr a n s ­

p o rt ati o n ar e t o be re aliz e d.

Ta ble 13 pr es e nts t he t o ta l na vi gati o n nee ds f o r t h e re gi o n 

( Pr o gra ms A a n d B). T he gr o ss nee ds f o r t h e water wa ys ar e pr es e nte d i n 

t o n - mile s u n der t he hea di n g " Ne w C ha n nels" ( dee p a n d s hall o w d r a ft). 

T hese gr o ss nee ds ar e t he t o n - mile s of wat er b or n e c o n merce pr oj ecte d 

f o r t he re gi o n as pr e vi o u sl y s h o w n i n ta ble 6. T he t o n - mile fi g ur es 

s h o w n i n ite m " E xi sti n g S u p pl y" r e fle ct o nl y t he a bilit y of t he e x isti n g 

c ha n nel s t o ca rr y t h e c o m merce as pr oj ecte d; t h e fi g ur es d o n ot re pr e ­

se nt t he ma xi mu m ca pa cit y of t he water wa ys. T hi s e x pl ai n s t h e c ha n ges 

i n e x isti n g s u p pl y o ve r ti me a n d al s o f o r t he t w o pr oj ecti o n pr o gra ms.

I n e x pr es si n g t he nee ds f o r ne w de e p - d ra ft c h a n nels, t h e pr oj ecti o ns 

i n v ol v e pr o d u cts of ne w i n d u st ri e s, n ot n o w m o vi n g b y w at er, t h at w o ul d 

mo ve wit h t h e ne w c ha n nel i n pl ac e. C o n se q u e ntl y, t he e x isti n g s u p pl y 

fi g ur es w o ul d n ot be af fe ct e d b y t h is a d de d i ncre m e nt of pr oj ecte d c o m ­

merce b ut w o ul d re fl e ct o nl y t he a bil it y of t he e x isti n g water wa ys t o 

ca rr y t he pr oj ecte d c o n merce m o vin g o ve r t he m.

As pr e vi o usl y me nti o ne d t he f ut u re na vi gati o n nee ds i n t h e U nite d 

State s, f o r t he m ost p a rt, m ust be s ati sfie d t hr o u g h c ha n nel e nla r g e ­

me nt pr o gra m s. T hese re q uire m e nts f o r t h e Lc wer Mis sis si p pi Re gi o n are 

pr es e nte d u n der t he hea di n g " E xi sti n g F a cilitie s I m pr o ve me nt. " T he 

gr o ss a n d net nee ds s ho wn u n der t h is hea di n g ar e t he sa me (f o r b ot h 

dee p- a n d s h all o w- d ra ft c ha n nels) a n d re pr es e nt t h at p o rti o n of t he 

t o ta l t o n - mile pr oj ecti o ns (s h o wn i n t he ne w c h a n nel- g r os s nee d cate g or y) 

t h at c o ul d be n efit fr o m c ha n n el e nla r ge m e nt w or k.

Na vi g ati o n l oc k nee ds ar e e x pre sse d i n "t o ns" f o r s h all o w- d ra ft 

l oc k s a n d i n " n u m ber of l oc k a ges " f o r de e p - draft l oc ks. T he net nee ds 

were deter mi n e d b y re la ti n g t he pr oj ecte d de ma n d f o r l oc k a ges t o t he 

re s u lt s of rec e nt l oc k ca pa cit y st u d ie s o n t h e l oc ks i n v ol v e d. Here, 

t o o, t he e x isti n g s u p pl y i n di cate s t he a bil it y of t h e e x isti n g l oc ks i n 

t he s yste m t o acc o m m odate t he pr oj ecte d gr o ss nee d s. P ort a n d har b or 

nee ds ar e al s o s h o w n i n t o ns. T he net nee d s were ass u me d t o be e q ual 

t o t he t o ta l pr oj ecte d t o n na g e, le ss t h e esti m ate d rea s o na ble ca pa cit y 

of t he e x isti n g f a cil it i e s a n d a v aila bl e sit e s at t he p orts.

30
4 7 2

4 7 4

FI G U R E 1

S T U D Y A R E A - M A J O R S T R E A M S

A N D N A VI G A B L E W A T E R W A Y S
4 7 5
4 7 6

R P A 1

GE NE R AL DES C RI PTI O N

T he Mi ssi ssi p pi Ri ver, t hir d l o n g est i n t he w orl d, fl o ws fr o m it s 

hea d waters i n Lake Ita sc a, Mi n n., s o ut h ward f or 2340 miles t o t he G ulf 

of Mexico. It s drai na g e basi n i ncl u d es all or pa rts of 31 st at es a n d 

t wo Ca na dia n pr o vi nce s, t otali n g 1,2 45, 000 s q uare mile s. T his ri ve r 

pr o vi des a n all- w at er r o ut e fr o m t he G ulf of Me xic o t o t he Great Lakes 

a n d, t o g et h er wit h it s pri nci pal tri b uta ri e s, t he O hi o, Miss o uri, 

Illi n ois, Ar ka nsas, a n d Te n nessee Ri vers, a n d t he G ulf I ntra c o astal 

Water wa y, c o m prises a n i nla n d na vi gati o n s yste m wit h o ut e q ual i n t he 

w orl d.

WRP A 1 c o nsist s of t he mai n ste m of t he Mis sissi p pi Ri ver bel o w 

t he m outh of t he O hi o Ri ver bet wee n t he mai n ste m le vees or t o t he t o p 

ba nk of t he strea m w here le vees d o n ot e x ist. On t he west ba n k, t hese 

le vees be gi n j u st bel o w Cape Girar de a u, Miss o uri, a n d, e xce pt at 

tri b uta r y strea ms, e xte n d u ni nterr u pte d t o Ve nice, L o uisi a na, j u st 

a b ove t he Hea d of Passes. On t he ea st ba n k le vees e xte n d i nter mitt e ntl y 

fr o m t he vi ci nit y of Hick ma n, Ke nt uc k y, t o a p oi nt j u st a b ove Vic ks b ur g, 

Mi ssi ssi p pi. St arti n g a gai n at Bato n R o uge, L o uisia n a, t he ea st ba nk 

le vee e xte n ds c o nti n u o usl y t o B ohe mia, L o uisi a na, a p pr o xi matel y 45 miles 

a b ove t he Hea d of Passes.

A g ric ult ure, ori gi n all y t he o nl y ec o n o micall y si g ni fic a nt ac ti vit y 

al o n g t he Mi ssis si p pi Ri ver, is bei n g i nc rea si n gl y s u p pla nte d b y 

i n d u strial fa cilitie s attr acte d t o t he ri ve r ba nk b y t he a b u n da nt s u p pl y 

of fres h water, mi neral a n d ot h er nat ur al res o ur ces, a n d b y t he a v aila ­

bilit y of i nla n d a n d ocea n g oi n g tra ns p o rtati o n ser vic es. Areas w here 

t his tre n d is m ost rea dil y o bser v a ble i ncl u d e t he Me mp his Har b or a n d t he 

e ntir e reac h of t he ri ve r bet wee n Bat o n R ou ge a n d Ne w Orlea ns.

Hea d of Passes bar el y re ve ale d at hi g h water.

35
4 7 7

VI GATI ON I MP R O VE ME NTS

T he pre se nt na vi gati o n al st at us of t he Mis sissi p pi Ri ver is t he 

pr o d uct of a gra d ual e v ol uti o n w hic h be ga n wit h C o n g ressi o nall y a ut h or ­

ize d s ur ve ys as earl y as 1820. Vari o us i m pr o ve me nts were ma de s u bse ­

q ue ntl y i n a n atte m pt t o fa cilit ate na vi gati o n o ver s p ecifi c s h o rt 

reac hes a n d t hr o u g h t he m out hs of t he ri ve r. T he fir st tr ul y si g nifi ­

ca nt i m pr o ve me nt of a la sti n g nat ure, h o we ver, was t he esta blis h me nt 

i n 1879 of a sta bl e c ha n nel 30 feet dee p t hr o u g h S o ut h Pass. T he n i n 

1896, C o n gress a ut h oriz e d a na vi gati o n c ha n nel 9 fe et dee p a n d 250 fe et 

wi de at l o w water bet wee n Cair o, Il li n ois, a n d t he Hea d o f Passe s. S u bse q ue nt a ut h o riz ati o n s a n d m o dific ati o n s ha ve e ve nt uate d b ot h i n p orti o n s 

of WRP A 1 a b ove Bat on Ro uge a n d bel o w. Ta ble 14 s ho ws t he e xisti n g 

na vi gati o n i m pro ve me nts.

A d diti o n all y, t he Fl o o d C o ntr ol Act of 22 Dece m ber 1944 a ut h oriz e d 

a 12-f o ot b y 300-f o ot na vi gati o n pr oj ect o n t he Mis sissi p pi Ri ver fr o m 

Cair o, Illi n ois, t o Bato n R ou ge, L o ui sia na. Wor k t o war d attai n me nt of 

t his 12-f o ot c ha n nel has n ot o ffic ia ll y st arte d pe n di n g o utco me of 

st u die s f or si m ila r de pt h c ha n nels o n u pstrea m tri b uta ri es t o t he 

Mis sissi p pi Ri ver. H o wever, 12-f o ot de pt hs i n t he reac h fr o m Cair o t o 

Bat on R ou ge are bei n g ac hie ve d as a be ne fit of pre vi o u sl y f u n de d pr o ­

gra ms of ba n k st a b iliz ati o n a n d dre d gi n g.

T he U. S. C oast G uar d mai ntai ns all ai d s c o nsi d ere d nece ssar y f or 

safe na vi gati o n o n t he Mis sissi p pi Ri ver a n d na vi g a ble tri b ut ar y strea m s. 

U nder rec e nt le gi sl ati o n a ut h o rit y e xists f or t he U. S. C oast G uar d t o 

esta blis h a n d o pe rate Vessel Tr af fi c S yste ms ( V T S), se v eral of w hich 

are i n t he de velo p ment sta g es f o r t he Mi ssis si p pi Re gi o n. T hr ou g h t he 

use of V HF ra di o, a u g me nte d b y s h ore base d ra d ar c o vera ge a n d l o w li g ht 

le v el tele vi si o n o bs er v ati o ns, a ves sel tr a ff ic ce nte r will be a ble t o 

m o nit or, c o m m u nicate wit h a n d a d vi se or c o ntr ol all mari ne tr a ffic 

wit hi n t he area of desi g nat e d s yste m c o vera ge. T his tec h ni q ue has bee n 

use d f or se v eral deca des i n b us y E ur o pea n p o rt s, a n d i n c o nce pt is 

si m ila r t o t he air p ort tr a ff ic c o nt r oll er w hose f u ncti o n is t o m o nit or 

a n d mai ntai n saf et y a mo ng t he air cra ft o pe rati n g wit hi n t he c o n geste d 

tr a ff ic patte r n of a n ai rfiel d. T he VTS c o veri n g t he area fr o m G ulf of 

Me xic o e ntra nce o n t he Mis sissi p pi Ri ver t o Bat o n Ro uge will be gi n i n 

1975. Ot her area s o n t he c o n geste d I ntra -c oa st al water wa ys west of Ne w 

Orlea ns are als o sc he d ule d f or ves sel tr a ff ic s yste ms. I n a d diti o n, 

tr a ff ic se p arati o n sc he mes e m pl o yi n g t he sa me c o nce pt as di vi d e d hi g h ­

ways are e nc o ura ge d w hene ver pr actic a ble f or t he a d ded safet y of na vi ga ­

ti o n.

36
4 7 8

Ta ble 1 4 - E xisti n g I m pr o ve me nts, Mis sis si p pi Ri v er, Cair o, I ll.,

t o t he G ulf of Me xic o, WRP A 1

Reach

De pt h

fe et

Wi dt h

fe et

Le n gt h

mile s Re mar ks

Mo ut h of Oli o Ri v er t o

Bat o n R ou ge 3 00 7 20 Fl o o d C o ntr ol Act of 

1 94 4 a ut h orize d 1 2 

f o ot de pt h i n t h is 

rea c h.

Bat o n R o u ge, La. t o P ort 

of Ne w Orlea ns 4 0 5 00 1 2 8. 6

T hr o ug h P ort of Ne w

Orlea ns 3 5 1, 5 0 0 1 7. 2

T hr o ug h P o rt of Ne w

Orlea ns 4 0 5 00 1 7. 2 R 6 H Act of 2 3 Oct 

1 9 62 a ut h orize d 

c o nstr u cti o n of t h is 

c ha n nel wit hi n t he 

pr e vi o u sl y a ut h orize d 

3 5 fe et X 1 50 0 fe et 

c ha n nel.

P ort of Ne w Orle a ns t o

Head of Pass es 4 0 1, 0 0 0 8 6. 7

Head of Pas ses t o Mile 20 

B. H. P. — vi a S W Pass 4 0 8 00 2 0

S W Pass Bar C ha n nel 4 0 6 0 0 2. 0

Head of Pass es t o Mile 1 3. 5 

B. H. P. — vi a S o ut h Pass 3 0 4 50 1 3. 5

S o ut h Pass Bar C ha n nel 3 0 6 00 1. 5

— B. H. P. Eelc w Hea d of Pass es

3 7
4 7 9

I S TI N G C O WE R C E

Ta ble 1 5 pr es e nts t he 1 97 0 wat er b or ne c o n merce f o r WRP A 1 i n t h re e 

rea c he s: Cair o, Ill i n ois , t o Bat o n R o u ge, L o uisia na; Bat o n R ou ge t o 

Ne w Orlea ns, L o uisia n a; a n d Ne w Orle a ns t o t he Head of Pa sse s.

I nla n d C o m merce

A b o ut 6 0 perc e nt of i nl a n d t o n na ges m oved i n t he WRP A 1 se g me nt of 

t he Mis sis si p pi Ri ve r c o nsist of gr ai n, petr ole u m, a n d i n d u st ri al 

c he mic als. T he gr ai n t o n na g es re pr es e nt d o w nb o un d m o ve ments ( p ri m aril y 

c o m a n d s o y bea ns) fr o m t h e ri c h far m la n d s a djac e nt t o t he U p per 

Mis sis si p pi Ri v er S yste m, de sti n e d f o r tr a n sf er t o gr ai n el e v at or s i n 

t he Bat o n R ou ge - Ne w Orl ea n s, L o uisia n a ar ea. Nearl y all of t h is gr ai n 

is e v e nt u all y e x p ort e d.

T he petr ole u m a n d c he mical t o n n a ges ar e pri n ci p all y c o m prise d of 

re fi ne d petr ole u m pr o d ucts a n d b as ic c he micals ori gi n ati n g at re fi n eri e s 

a n d pr o d ucti o n pl a nts bel o w Bat o n R o u ge, L o uisia n a, a n d o n t h e GI W W west 

of Ne w Orlea ns, L o uisia na.

Ot h er la r g e m ove me nts i ncl u d e dc wn b ou n d c o al, w hic h is b ot h s hi p pe d 

c oa st wise fr o m Ne w Orlea ns a n d t o i nla n d p oi nts o n t he GI W W, a n d, u n der 

t he cat e g or y of " Ot he r," u n b o un d s hi p m e nts of s alt, m olas ses, a n d s u g ar.

Ocea n g oi n g C o n merce

Virt u all y all ocea n g oi n g t o n n a ges s h o w n f o r WRP A 1 c o ns ist of 

f orei g n a n d c oa st wise s hi p m e nts ha n dle d wit hi n t he P o rts of Ne w Orle a ns 

a n d Bat o n R o u ge, L o uisia n a, a n d ar e dis c u sse d i n t he se cti o ns de v ot e d 

t o t h o se t w o p ort s, W RP A's 8 a n d 1 0.

V ESS E L C O MP OSI TI O N

Ta bl e 1 6 s u n m arizes c o m mercial ve ss el m o ve ments o ve r WRP A 1. 

De scri pti o ns of t y pi cal ve ss el s a n d t o w c o m p ositi o n ar e c o ntai ne d i n 

t he Re gi o n al S u m mar y.

3 8
4 8 0

4 8 2
4 8 3

F U T U R E N E E D S

P r o s p e c t i v e C o n n e r c e

W a t e r b o r n e C o m m e r c e i n t h e s e l e c t e d c o m n o d i t y c a t e g o r i e s w a s 

p r o j e c t e d i n a c c o r d a n c e w i t h i n d i c e s o f o u t p u t d e v e l o p e d f o r t h e 

a p p r o p r i a t e m a j o r i n d u s t r y g r o u p s . T h e s e i n d i c e s a r e s h o w n o n t a b l e 1 7 . 

I n g e n e r a l , t h e P r o g r a m A i n d i c e s r e p r e s e n t O B E R S ' f o r e c a s t o f e c o n o m i c 

g r o w t h f o r i n d i v i d u a l W R P A ' s w i t h i n t h e L o w e r M i s s i s s i p p i R e g i o n .

P r o g r a m B i n d i c e s w e r e d e v e l o p e d t o r e f l e c t a r e g i o n a l g r o w t h i n 

e m p l o y m e n t e q u a l t o t h e n a t i o n a l a v e r a g e o f 1 . 4 p e r c e n t ] / . A p p l i c a t i o n 

o f t h e s e i n d i c e s t o t h e b a s e y e a r t o n n a g e s s h o w n p r e v i o u s l y o n t a b l e 1 5 

y i e l d f u t u r e l e v e l s o f c o m m e r c e a s s h o w n i n a g g r e g a t e o n t a b l e 1 8 .

T h e s e l e v e l s a r e d e s i g n a t e d a s t h e g r o s s n e e d s o f t h e a r e a . N o t e t h a t 

t h e p r o j e c t i o n s a r e e x p r e s s e d i n t o n - m i l e s .

E c o n o m i c p a r a m e t e r s f o r t h e i n d u s t r i a l a n d a g r i c u l t u r a l a c t i v i t i e s 

w h i c h a r e s i t u a t e d b e t w e e n t h e l e v e e s i n W R P A 1 h a v e , f o r t h e p u r p o s e s 

o f t h i s s t u d y , b e e n i n c l u d e d i n t h e a d j o i n i n g W R P A ' s .

N e t N e e d s

T a b l e 1 9 s u m m a r i z e s t h e n e t n a v i g a t i o n n e e d s p r o j e c t e d t o a r i s e i n 

W R P A 1 d u r i n g t h e s t u d y p e r i o d .

S h a l l o w - D r a f t C h a n n e l s

T h e r e i s a n e e d f o r i m p r o v e m e n t ( d e e p e n i n g ) o f t h e e x i s t i n g c h a n n e l 

b e t w e e n B a t o n R o u g e , L o u i s i a n a , a n d C a i r o , I l l i n o i s . T h i s i m p r o v e m e n t 

i s r e q u i r e d t o s a t i s f y c u r r e n t a n d p r o j e c t e d s h a l l o w - d r a f t t r a f f i c 

d e m a n d s .

D e e p - D r a f t C h a n n e l s

U n d e r b ot h P r o g r a m A a n d B o b j e c t i v e s , a n e e d f o r i m p r o v e m e n t o f t h e 

d e e p - d r a f t r o u t e f r o m B a t o n R o u g e , L o u i s i a n a , t o t h e G u l f o f M e x i c o w i l l 

a r i s e b y 1 9 8 0 . D e e p e n i n g o f t h e r o u t e f r o m B a t o n R o u g e t o N e w O r l e a n s 

w i l l b e r e q u i r e d w i t h i n t h e e x i s t i n g r i v e r c h a n n e l , w h i l e i m p r o v e m e n t 

o f t h e r e a c h f r o m N e w O r l e a n s t o t h e G u l f c o u l d b e a c c o m p l i s h e d Jby 

d e e p e n i n g e i t h e r t h e r i v e r c h a n n e l o r t h e M R - G O .

I n a d d i t i o n , a s t u d y i s c u r r e n t l y a u t h o r i z e d i n r e s p o n s e t o a 

S e n a t e r e s o l u t i o n a d o p t e d o n 1 9 J u n e 1 9 7 2 , w h i c h d i r e c t s t h e C o r p s o f 

E n g i n e e r s t o s t u d y t h e f e a s i b i l i t y o f a c h a n n e l d e e p e r t h a n 1 2 f e e t 

f r o m C a i r o t o B a t o n R o u g e .

\_/ F u r t h e r d i s c u s s i o n o f t h e s e i n d i c e s a n d t h e i r d e r i v a t i o n s c a n b e 

f o u n d i n A p p e n d i x B , E c o n o m i c s .

4 2
4 8 4

Ta ble 1 7 - Ec o n o mic F o re c a st, WRP A 1 

I n di ce s of P r o d u cti vit y b y Maj o r I n d u st ri e s

C o m mo dit y

(I n d us tr y Gr o u p) Pr o gra m 1 9 67 1 9 6 8 1 9 70 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( A gric ult u re ) -- -- 1 0 0 1 2 7 1 7 3 2 3 7

-- -- 1 0 0 1 27 1 7 3 2 3 7

C oal ( Mi ni n g, N ati o nal) 1 0 0 1 04 n o 1 3 7 2 2 3 3 2 9

1 0 0 1 0 6 1 17 1 7 3 2 4 8 4 3 8

Petr ole u m ( A v era g e,

Mi ni n g § R efi ni n g) 1 0 0 1 1 6 1 2 3 1 6 0 2 4 3 4 0 8

1 0 0 1 1 8 1 3 0 1 8 9 3 2 3 5 8 2

CS S A ( Q uar r yi n g) 1 0 0 1 0 0 1 08 1 4 8 2 7 0 5 04

1 0 0 1 0 2 1 12 1 6 3 3 1 5 6 0 4

S ul p h ur ( Q uar r yi n g)

-- -- 1 0 0 1 0 0 1 0 0 1 0 0

-- -- 1 0 0 1 0 0 1 0 0 1 0 0

Ir o n, Ste el § Al u mi n u m

( Pri ma r y M et als ) 1 0 0 1 0 3 1 0 9 1 41 2 18 3 4 0

1 0 0 1 1 2 1 2 2 1 71 3 11 5 4 0

I n d u stria l C he mic als 

( C h e mi cals $ Allie d

Pr o d ucts) 1 0 0 1 14 1 2 9 2 02 5 0 0 1, 1 9 9

1 0 0 1 14 1 3 5 2 3 9 6 9 6 1, 7 9 2

Ot he r C o m m o dities 

( C h e mi cals 5 Allie d

Pr o d ucts) 1 00 1 1 4 1 2 9 2 0 2 5 0 0 1, 1 9 9

1 0 0 1 14 1 3 5 2 3 9 6 9 6 1, 7 9

is cella ne o u s C o n m oditi e s ( Ot he r Man ufa ct u ri n g) 1 0 0 1 0 5 1 1 6 1 6 9 3 64 7 8 2

1 0 0 1 0 9 1 2 3 1 9 4 4 8 6 1, 1 2 6
4 8 5
4 8 6

4 8 8

L ocal s hi p p ers a n d ot he rs i n are as a djac e nt t o WRP A 1 ha ve e xpr es se d c o nti n u e d i n te re st i n de e p - draft na vi gati o n a b o ve Bat o n R o uge. 

T o t he e xte nt t h at s uc h na vi gati o n c o ul d be pr o vi d e d wit h o ut l oc k s a n d 

da ms, f ut ure de vel o p me nts i n mari ne tr a n s p ortati o n ma y warra nt m ore 

d et aile d st u di es at s o me la te r date.

L oc ks

T here are n o l oc k nee ds pr oj ecte d t o aris e i n WRP A 1 d uri n g t he 

st u d y pe ri o d. U nli k e t he U p per Mississi p pi Ri ver w here da ms a n d l oc k s 

ar e es se nti al t o mai nt ai n c o nsta nt mi ni mu m water de pt hs f o r na vi gati o n, 

t h e Lc wer Mississi p pi Ri ver is a n o pe n ri v er w here a ut h orize d de pt h s 

ca n be mai ntai ne d w he n nec ess ar y b y dre d gi n g a n d tr ai ni n g w or ks.

Har b ors a n d P orts

I n a d diti o n t o t h e ot he r na vi gati o n nee ds i n WRP A 1, a nee d e x ists 

f o r a n offs h or e dee p water p o rt (s u per p ort) t o ha n dle cr u d e oil i m p orts 

wit hi n t he G ulf c o ast are a of t h e Lc wer Mississi p pi Re gi o n. T his nee d, 

e x p res se d i n t o ns, is s h o w n bel o w i n ta bl e 2 0.

Ta ble 2 0 - Cr u de Oil I m p orts, Net Nee ds, WRP A 1

Year T o n nage

1 97 0 2, 2 8 0, 0 0 0

1 98 0 1 3, 8 3 2, 0 0 0

2 0 00 5 5, 3 6 0, 0 0 0

2 02 0 1 5 1, 1 6 4, 0 0 0

4 7
4 8 9

FI G U R E 

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

W R P A-l
4 9 0
4 9 1

R P A 2

GE NE R AL DES C RI PTI O N

Water Res o urces Pla n ni n g Area 2 is l oc ate d i n s o ut he aste r n Miss o uri 

a n d n ort he ast er n Ar ka nsas a n d is c o m prise d of 2 5 c o u nties c o veri n g 

1 6, 7 2 3 s q uare mil es. T he o nl y na vi g a ble strea ms i n t his area are t he 

W hite a n d Ar ka nsas Ri vers. T he W hite Ri ver ri se s i n n ort h west Ar ka nsas, 

fl o ws i n a ge neral n ort h erl y dire cti o n i nt o Miss o uri, t he n 1 00 miles 

ea st erl y t hr o u g h s o ut hea ster n Miss o uri, recr os ses i nt o Ar ka nsas, a nd 

fl o wi n g i n a ge neral ea st erl y dire cti o n e nter s t he Mi ssis si p pi Ri ver 

70 miles bel o w Hele na, Ar ka nsas. T he lc wer 74 miles are i n WRP A 2.

T he Ar ka nsas Ri ver is t he s o ut her n b or d er of WRP A 2. T he Ar ka nsas 

Ri ver Water wa y be gi ns at t he Mi ssis si p pi Ri ver a n d t he m outh of t he 

W hite Ri ver, t he n 10 miles u nstrea m i n t he W hite Ri ver t o t he m out h of 

Wil d G oose Bay o u, t he n 9 miles b y ca nal t o Ar ka nsas P ost o n t he Ar ka nsas 

Ri ver, t he n u pstrea m 6 5 miles t o Pi ne Bl u ff, Ar ka nsas, at l oc k a n d da m 

No. 4 w here it lea ves WRP A 2. At o ne ti me, t he St. Fra ncis a n d L' A n g uille 

Ri vers were na vi g a ble strea ms, h o we ver, mai nte na nce of t hese c ha n nels f or 

na vi gati o n cease d i n 1 9 42. Access t o t he St. Fra ncis Ri ver a b ove a p pr o ximate mile 15 fr o m t he i nla n d water wa ys s yste m has bee n se vere d b y fl o o d 

c o ntr ol i m pr ove me nts. WRP A 2 is ser ve d b y i nla n d har b ors o n t he 

Mis sissi p pi Ri ver at Ne w Ma dri d a n d Ca r ut h er s vill e, Miss o uri, a n d 

Bl yt h e vill e, Osce ola, a n d Hele na, Ar ka nsas.

Of a t otal are a of 2 7, 7 65 s q uare miles drai n e d b y t he W hite Ri ver, 

7, 0 0 0 s q uare miles are i n t he all u vi al valle y of t he Mis sissi p pi Ri ver.

T he all u vi al valle y p orti o n of t he W hite Ri ver basi n is, i n ge n eral, a 

ge ntl y u n d ulati n g plai n 1 50 fe et a b ove mean sea le v el at t he s o ut he r n 

e xtre mit y a n d ri se s t o t he n ort h a n d n ort h w est at a b o ut t w o -t hir ds of 

a f o ot per mile.

I n t his are a t he mean a n n ual te m per at ure is 6 1° wit h killi n g fr osts 

us u all y occ u rri n g bet ween No ve mber a n d A p ril. A verage a n n ual ra i n fa ll is 

4 8 i nc hes wit h ye arl y e xtre mes of 2 3 a n d 70 i nc h es. Hi gh ri ve r sta g es 

ma y us u all y be e x pecte d d uri n g Ja n uar y t o Ma y.

E xisti n g Eco no mic De vel o p me nt

T his ec o no mic pla n ni n g area is c o mp ose d o f ni ne c o u nties i n s o ut heaster n Miss o uri a n d 16 c o u nties i n n ort h ea ste r n Ar ka nsas. T he c o u nties 

i n Miss o uri are: Ir o n, Ma diso n, Wa yne, Sc ott, St o d dar d, Mississi p pi,

Ne w Ma dri d, D u n kli n a n d Pe mis c ott. T he c o u nties i n Ar ka nsas are: Cla y, 

Gree ne, Mi ssi ssi p pi, Crai g hea d, Jac ks o n, P oi n sett, W hite, W o o dr uff, Cr oss, 

St. Fra ncis, L o no ke, Prairie, Mo nr oe, Lee, Ar ka nsas a n d P hilli p s. T he

4 9

5 4 - 2 3 9 0 - 7 5 - 3 2
4 9 2

p o p ul ati o n i n 1 97 0 was 6 2 6, 6 9 0. T he eco no my of WRP A 2 is base d pri maril y 

o n a g ric ult ure. I n 1 9 68, 29 perce nt of t he t otal a g ric ult ural ear ni n gs 

o n t he L o wer Mississi p pi Re gi o n were attri b ut e d t o t his are a. Water 

res o ur ce de vel o p me nt has pla ye d a n i m p orta nt r ole i n e n ha nci n g t he 

a g ric ult u ral p ote ntial of t his WRP A. Si xt y perc e nt of t he p o p ul ati o n is 

cl as si fi e d as r u ral, a n d t he lar ge st cit y has a p o p ul ati o n u n der 3 0, 0 0 0. 

I n d u strial de vel op me nt is ce nter e d i n Miss o uri citie s of C harlest o n 

( 19 70 p o p ul ati o n - 5, 1 3 1), Ne w Ma dri d ( 2 7, 0 5 0), Si kest o n ( 1 4, 6 9 9), a n d 

Ca r ut her s ville ( 7, 3 5 0), a n d t he Ar ka nsas citie s of J o nes b or o ( 2 7, 0 5 0), 

Bl yt h e ville ( 2 4, 7 5 2), F orre st Cit y ( 1 2, 5 2 1), Para g o ul d ( 1 0, 6 3 9), St utt g art 

( 1 0, 4 7 7), Hele na ( 1 0, 4 1 5), a n d Maria n na ( 6, 1 9 6).

T he pri nci pal i n d ustri es i n WRP A 2 are a g ric ult ure, f o o d a n d ki n dr e d 

pr o d ucts. L u mber a n d wo od pr o d ucts i n d ustri es are of maj or i m p orta nce 

i n t his area. S h oe a n d a p parel i n d ustri es are als o n u mer o us i n t his 

WRP A.

Tra ns p ortati o n Fa ciliti es ( E xcl u di n g Water wa ys)

Rail Tra n s p ortati o n

beca use ra il tra ns p o rtati o n rate s are c o m p etiti v e wit h le w water 

tra ns p o rtati o n rate s i n t his area t here is a n i n d uce me nt f or i n d u str y 

t o l oc ate her e. Pre se ntl y f o ur rail wa y li n es are o per ati n g wit h 

e x celle nt c o vera ge i n t his area. T he area is ser ve d b y t he Miss o uriPa cific, St. L o uis- Sa n Fra ncisc o, St. L o uis- S o ut h wester n, a n d t he 

C hica g o- R oc k Isla n d a n d Pa cific Rail wa ys.

Hi gh wa y

Maj or U. S. Hig h ways are I nte rstate 5 5 n ort h, I nte rstate 4 0 west, 

U. S. 6 2 a n d 6 4 west, U. S. 6 3 a n d 6 7 n ort h a n d U. S. 6 0 west. A net w or k 

of st at e a n d c o u nt y r oa ds pr o vi des access t o all a g ric ult u ral are as.

Airli n es

Sc he d uled ai rli n e ser vic es are a v ail a ble at t he J o nes b or o ai r p ort, 

a n d c h arter fli g ht s ca n be arra n ge d t o ma ny of t he t o wns i n t his are a. 

Pi p eli n es

Nat ural gas li n es cr oss WRP A 2 i n all dire cti o n s a n d ori gi n at e i n 

vari o us l oc ati o n s. T here are p oi nts i n t h is area w here bar ges are 

l oa de d fr o m pi p eli ne s f or water tra ns p o rtati o n of refi ne d petr ole u m. 

T here are als o s o me fa cilitie s f or u nl oa di n g petr ole u m fr o m bar ges f or 

la n d tra ns p o rtati o n t hr o u g h pi p eli ne s.

5 0
E XI S TI N G A N D A U T H O RI Z E D N A VI G A TI O N I MP R O V E ME N TS

e n er al

T a b le 2 1 p r e s e nts a s u m mar y o f e x is ti n g n a vi g ati o n i m pr o v e m e nts. 

D eta il e d i n f o r m ati o n ca n be f o u n d i n A p pe n di x D, I n v e nt o r y o f F a c iliti e s.

T a b le 2 1 - E xis ti n g N a vi g ati o n I m pr o v e m e nts, W RP A 2

Water w a ys

De pt h

f e et

Wi dt h

f e et

Le n gt h

mil es Re mar k s

A r k a n sa s Ri v er 2 5 0 mi n. 7 4

W hit e Ri v er 1 2 5

1 9 9 V

5 f e et fr o m A u g u st a t o 

m o ut h, o r 8 f e et at a 

sta g e o f 1 2 f e et o n 

t h e Cla re n d o n ga g e

W hit e Ri v er 4. 5 1 0 0 5 5 4. 5 f e et fr o m Ne w p ort 

t o A u g u st a

P o rt s

H el e n a 4 5 0 4. 6

Ne w Ma dri d 1 5 0 1. 8

O sc e o la 2 5 0 1. 2

Pi n e B l u ff 2 5 0 . 5

S h all o w - D ra ft C ha n n el s

All o f t h e p re s e nt n a vi g ati o n c h a n ne l i m pr o v e m e nts i n W RP A 2 we re 

F e d e ra ll y c o n str u cte d. O ri g i n al a ut h o riz ati o n f o r n a vi g ati o n o n t h e 

W hit e Ri v er pr o vi d e d f o r c h a n n el m ai nt e n a n ce b y s n a g gi n g, d re d gi n g, 

a n d c o ntr a cti o n w or k t o p r o vi d e a c h a n n el 4. 5 f e et de e p b y 1 0 0 f e et 

wi d e bet w ee n t h e m o ut h a n d B a t e s v ill e, A r k a n sa s, a dis ta n c e o f 3 0 0 m il e s, 

u n d er t h e Ri v er a n d H ar b o r Act a p pr o v e d 1 3 J ul y 1 8 9 2. M ai nt e n a n ce was 

dis c o nti n u e d a ft e r Fis c al Y ea r 1 9 5 1 d ue t o n e g li g i b le t r a f f i c ; dre d gi n g 

a n d s n a g gi n g res u m e d i n 1 9 6 2 f o r t h e re ac h bet w ee n A u g usta t o t h e m o ut h. 

T he e x i sti n g p r oje ct was m o difie d i n 1 9 6 8 u n de r t h e a u t h o rit y o f S e cti o n

1 / T he lc w er 1 0 mil e s s e r v e b ot h t h e Ar k a n sa s a n d t h e W hit e Ri v er

p r o j e c t s.
4 9 4

1 97 of t he 1 96 0 Ri ver a n d Har b or Act, as a men de d, t o pr o vi d e a 1 2 5-f o ot 

wi de c ha n nel wit h a mi ni mu m de pt h of 5 fe et a n d a de pt h of 8 fe et at a 

sta ge of 1 2 fe et o n t he Clare n d o n ga ge. T he i nc rea se d di me n si o ns are 

bei n g mai ntai ne d t o A u g usta, at Mile 1 9 9. U n der t he a ut h orit y of t he 

Ri ver a n d Har b or Act of 1 8 9 2, res u m pti o n of mai nte na nce of t he e x isti n g 

pr oj ect o n t he W hite Ri ver fr o m Ne wp ort t o A u g usta, a di st a n ce of 5 5 

mile s, was a p pr o ve d i n Fe br uar y 1 97 0 f o r di me nsi o ns of 4. 5 fe et b y 1 00 

fe et. Pr oj ect mai nte n a nce was res u me d i n 1 9 7 2.

T he Ar ka nsas Ri ver pr oj ect be ga n i n t he 1 9 5 0's t o c o nstr u ct 

na vi gati o n fe at ur es of t he Mc Clella n- Kerr na vi g ati o n s yste m. F o ur l oc ks 

a n d da ms ar e c o m plete d i n WRP A 2, t he y are: N o rrell l oc k a n d da m 

l o cate d o n t he Ar ka nsas P ost Ca nal i n Ar ka nsas C o u nt y at na vi gati o n mile 

1 0. 3; L ock a n d da m N o. 2, t he l oc k is l oc ate d o n t he Ar ka nsas P ost Ca nal 

at na vi gati o n mil e 1 3. 3 a n d t h e da m is l oc ate d o n t he Ar ka nsas Ri ver 

4 0. 5 mil es u pstrea m fr o m t he m o ut h of t he Ar ka nsas Ri v er; L oc k a n d da m 

N o. 3 is l oc ate d o n t he Ar ka nsas Ri v er i n Je ff er s o n a n d L o no ke C o u nties 

at na vi gati o n mile 5 0. 2; L ock a n d da m N o. 4 is l o cate d o n t he Ar ka nsas 

Ri v er i n Je ff er s o n C o u nt y at na vi gati o n mile 6 6. 0. C ha n nel de pt h o n t he 

Ar ka nsa s Ri v er is mai ntai ne d at 9 fe et a n d a mi ni mu m c ha n n el wi dt h of 

2 50 fe et is pr o vi de d f o r. On t he Ar ka nsas P ost Ca n al, c ha n n el wi dt h is 

3 00 fe et.

A pr oj ect f o r i m pr o ve me nt of St. Fra nci s Ri v er f o r na vi gati o n was 

a ut h orize d b y t he Ri ver a n d Har b or Acts of Marc h 3, 1 8 7 1, J u ne 1 4, 1 8 8 0, 

J ul y 5, 1 8 8 4, A u g ust 1 1, 1 8 8 8, a n d J u ne 1 3, 1 9 0 2, t he l att e r a d di n g 

L' A n g uille Ri v er t o t he i m pr o ve me nt. T he ori gi n al pr oje ct f o r L' A n g uille 

Ri v er was a d o pt e d b y t he Ri v er a n d Har b or Act of J u ne 1 8, 1 8 7 8. T he 

ori gi n al pr oj ect f o r Bl ac kfi s h Ba yo u was a ut h orize d b y t h e Ri ve r a n d 

Har b or Act of J u ne 2 5, 1 9 10 (II. D oc. N o. 7 3, 6 1 st C o n g., 1st S es s. ).

T he pr oj ect pr o vi d e d f o r t he re m oval of s na gs i n St. Fra nci s Ri ve r 

fr o m it s m o ut h t o Marke d Tre e, i n L' A n g uille Ri v er fr o m it s m out h t o 

Maria n na, a n d i n Bla c kfis h Ba yo u fr o m it s m out h t o Fifte e n Mile Ba y ou, 

wit h t he o bject of mai nt ai ni n g t he c ha n nels cle ar of s na gs a n d si mil ar 

o b str ucti o ns at t he l o we st na vi g a bl e st a g e.

Mai nte na nce of t h es e t h re e c ha n nels cea se d i n 1 9 4 2, at w hic h ti me 

t h e c o m merce o n t he St. Fra nci s Ri v er was 2 6, 6 4 1 t o ns, w hile t h er e was 

n o c o m merce o n L' A n g uille Ri v er or Bla c kfis h Ba y ou.

Dee p- Draft C ha n nels

T here are n o e x isti n g de e p - d raft c ha n nels wit hi n WRP A 2.

5 2
4 9 5

L o c k

T here are f o ur l oc ks i n WRP A 2 a n d t he y are all l oc ate d o n t he 

Ar ka nsas Ri ver. T here is als o o ne l oc k l ocate d near B at es ville, 

Ar ka nsas, o n t he W hite Ri ver, h o we ver, it is n ot i n WRP A 2. T here is a 

l oc k o n t he St. Fra ncis Ri ver at Mar ked T ree, Ar ka nsas, w hich has bee n 

a ba n do ne d.

S hall o w- D raft P ort s

W hite Ri ver

T here ha ve bee n n o Fe deral i m pro ve me nts at p ort f a cilitie s o n t he 

W hite Ri ver. P orts ha ve bee n de vel o pe d b y l oc al a n d pri v at e i nte re st s 

at maj or t o wns o n t he W hite Ri ver, i ncl u di n g St. C harles, Clare n d o n,

Des Arc, A u g usta, De Valls Bl u ff, a n d Ne wp ort, all i n Ar ka nsas. S p eci fic pr oj ect di me nsi o ns ha ve n ot bee n esta blis h e d, b ut p orts are ge n erall y o perate d a n d mai ntai ne d t o pr o vi de i nterc ha n g e of c o m mo dities bet wee n water a n d la n d.

Mi ssis si p pi Ri ver

Ne w Ma dri d, Miss o uri. D uri n g t he pa st se v eral ye ars, l oc al i nte re st s 

ha ve o perate d a p ort o n t he Mi ssis si p pi Ri ver at Ne w Ma dri d, Miss o uri. A 

Fe deral pr oj ect at Ne w Ma dri d Har b or was a ut h oriz e d b y t he C hie f of 

E n gi neers i n 1 96 8 u n der Secti o n 1 97 of t he Ri ver a n d Har b or Act of 1 9 60, 

as a me nded.

T he pr oj ect pr o vi de s f or dre d gi n g a c ha n nel 9 feet dee p a n d 1 50 fe et 

wi de fr o m t he hea d of Ne w Ma dri d Bar, a b o ut Mile 8 89 A HP, e xte n di n g a 

le n gt h of a b o ut 9, 4 0 0 fe et. T he pr oj ect was c o m plete d i n t he s u m ner of 

1 9 70. T here are t hr ee e xisti n g ter mi nals wit hi n t he hai b or ar ea, a n d 

t he har b or ser ve s a n i n d u strial par k area of a p pr o xi matel y 2 00 acr es.

Ca r ut h er s vill e, Miss o uri. Har b or fa cilitie s o n t he Mi ssis si p pi 

Ri ver at Ca r ut h er s vill e, Miss o uri are o per ate d b y l oc al i nte re st s a n d 

pri v at e e nte r p ri se. T here ha ve bee n n o Fe deral i m pr o ve me nts.

Bl yt h e vill e, Ar ka nsas. L ocal i nte re st s mai ntai n a p ort o n t he 

Mi ssis si p pi Ri ver at Bl yt he ville, Ar ka nsas. T here ha ve bee n n o Fe deral 

pr oje cts at t he Bl yt h e ville p o rt.

Osce ola, Ar ka nsas. T he e xisti n g p ort esta blis he d b y l oc al i nte re st s 

at Osce ola will be e x pan de d b y a Fe deral pr oj ect a ut h oriz e d b y t he C hief 

of E n gi neers i n 1 97 1 u n der Secti o n 1 07 of t he Ri ver a n d Har b or Act of 

1 9 60, as a me nded.

T he a ut h orize d pla n pr o vi de s f o r dre d gi n g a c ha n nel 9 feet dee p a n d 

2 50 fe et wi de f or a le n gt h of a p pr o xi m atel y 6, 5 0 0 fe et. An i n d u stri al 

area of 9 7 acre s will be ser ve d b y t he pr oj ect c ha n nel.

5 3
4 9 6

Hele na, Ar k a ns as. A fe de ral pr oj ec t f o r p o rt de vel o p me nt at Hele na, 

Ar ka nsas, was a ut h orize d b y t he C hief of E n gi neer s i n 1 96 2 u n der Se cti o n 

1 0 7, Ri ver a n d Har b or Act of 1 4 J ul y 1 9 6 0, as a men de d.

T he pr oj ect pr o vi d es f o r mai nte na n ce of t h e acc ess c ha n n el at a de pt h 

of 9 fe et bel o w l o w water, bet wee n Mile s 6 5 9 a n d 6 6 3 A HP, b y dre d gi n g a n d 

e nlar gi n g t h e u pstr ea m 0. 6 mil e t o di me nsi o ns of 9 fe et dee p a n d a p pr o ximatel y 4 5 0 fe et wi de. T he pr oj ect is c o m plet e. T he har b or c ha n nel is 

a p pr o xi mat el y 3, 0 0 0 fe et i n le n gt h, a n d t he e nti re har b or, i ncl u di n g 

4 mil es al o n g t he mai n ri v er w at er fr o n t, ser ve s a n i n d u st ri al p o rt are a 

of a b o ut 5 5 0 ac re s. T here ar e 1 1 ter mi n als wit hi n t he har b o r, t w o of 

w hic h ar e p u blicl y o wne d.

Dee p- Draft P o rts

T here ar e n o de e p - d ra ft p o rts wit hi n WRP A 2.

Na vi gati o n Ai ds

T he U. S. C oast G uar d mai nt ai n s all ne ce ssa r y na vi gati o n ai ds o n 

Fe derall y c o nstr u ct e d pr o je ct s, a n d mar ks haz ar d s t o na vi gati o n.

E XI S TI N G C C M4 E R CE

I nla n d C o m merce

A s u m mar y of e x isti n g wate r b or n e c o n merce i n WRP A 2 b y c o m mo dit y 

gr o u ps is pr es e nte d i n ta bl e 2 2.

W hite Ri ver

A t o ta l of 6 4 2, 8 0 0 t o n s were m oved o n t h e W hite Ri ve r i n 1 9 7 0.

Maj or pr o d ucts m oved were gr ai n s a n d CS S A, a n d maj or p o rt s ha n dl e d 

6 4 5, 9 0 0 t o ns. T he CSS A pr o d ucts w hic h m oved o n t he ri v er were ha n dle d 

t hr o u g h pri v at e te r m i n al s, a n d c o m paris o n of t o n na g e m oved o n t he 

c ha n nel a n d t hr o u g h t h e p o rts i n di cate s t h at s o me m o ve ments ar e fr o m 

p o rt t o p o rt wit hi n t h e c ha n n el of t h e W hite Ri v er.

Mis sis si p pi Ri ve r P o rts

Pri mar y m o ve ments t o a n d fr o m WRP A 2 o n t h e Mississi p pi Ri ver ar e 

CS S A, petr ole u m, a n d gr ai n, a n d t o ta l t o n na ge was 5, 1 7 6, 6 0 0 t o n s i n 1 9 7 0.
4 9 7

Ar ka nsas Ri v er

T otal t o n na g e pa ssi n g t hr o u g h WRP A 2 o n t h e Ar ka nsas Ri v er i n 1 97 0 

was 3, 4 1 8, 5 2 0 t o ns. T he p o rt at D u mas, Ar ka nsas, ha n dle s t o w b oat re f u eli n g 

a n d has f u el gas a n d oil a v aila bl e. T he p o rt at Li n w oo d, Ar ka nsas ha n dle s 

a g ri c ult ura l pr o d ucts. T he Pi ne Bl u ff, Ar ka nsas ha r b or ha n dle s fl e et 

se r vici n g, sa n d, a n d a g ri c ult u ra l pr o d uct s.

C oast wise Tra de

T here is n o c oa st wise tr a d e i n v ol vi n g WRP A 2.

F or ei g n Tra de

T here is n o f o rei g n tr a d e i n v ol vi n g WRP A 2.

S na g re m o val o n t he W hite Ri ver, Ar ka nsas.

5 5
4 9 8
4 9 9

V ESS E L C O MP OSI TI O N

Ta ble 2 3 s u m marizes c o m mercial ve ss el m o ve ments o ver WRP A 2 w at er ­

wa ys. De scri pti o ns of t y pi ca l ve ss el s a n d te w c o m p ositi o ns ar e c o ntai ne d 

i n t he Re gi o nal S u m mar y.

Ves sels usi n g t he W hite Ri v er i n 1 97 0 c o nsiste d of t u gs a n d dr y 

car g o ba r g es, a n d t o ta l c o m bine d ve ss el tr i p s u p b o u n d were 3, 0 7 8; t o ta l 

c o m bine d ve ss el tr i p s d o wn b ou n d were 3, 0 7 5. Te n pe rc e nt of u p b ou n d 

tri p s a n d 1 6 pe rc e nt of de wn b ou n d tr i p s re q uire d dra ft s gre at er t ha n 

t he mi mi nu m 4. 5 fe et pr o vi d e d b y t he e x isti n g pr oj ec t i n t he u p per 

5 5 mil es of t he pr oj ect c ha n nel. T hese m o ve ments occ urr e d d uri n g hi g h 

water seas o ns w he n de pt hs were gre at er t ha n n or m al.

Ves sels usi n g t he Ar ka nsas Ri v er i n 1 9 70 c o nsiste d of t u g s a n d dr y 

car g o ba r g es. T otal c o m bi ned ve ss el tr i p s u p b o u n d were 1 4, 4 6 9; t o ta l 

c o m bine d ve ss el tr i p s d o wn b ou n d were 1 4, 4 7 6.

P o rt f a cil it ie s at Hele n a, Ar ka nsas.

5 7
5 0 0
5 0 1

Ta bl e 2 4 - Ec o n o mic F o re c a st, WRP A 2 

I n d e x o f P r o d u cti vit y b y Maj o r I n d u strie s

C o n m o dit y

(I n d u st r y Gr o u p) Pr o gra m 1 9 7 0 1 9 8 0 2 0 00 2 0 2 0

Gr ai n ( A gri c ult ura l

Pr o d ucti o n) 1 0 0 1 0 9 1 2 8 1 4 7

1 0 0 1 0 9 1 3 8 1 5 7

Petr ole u m ( P etr ole u m

R efi ni n g) 1 0 0 1 5 0 3 1 9 6 2 0

1 0 0 1 64 3 6 9 7 3 2

CSS A ( Q uarr yi n g ) 1 0 0 1 4 0 2 62 4 9 7

1 0 0 1 54 3 0 3 5 8 6

S ul p h ur ( C he mical

Pr o d ucts) 1 0 0 9 8 2 5 3 6 1 5

1 0 0 1 0 7 2 9 3 7 2 5

Ir o n a n d Ste el ( P ri -

mar y M et als ) 1 0 0 1 4 0 2 78 5 1 3

I n d u stria l C he mic als 

( C he mical a n d

1 0 0 1 5 3 3 2 2 6 0 6

A llie d Pr o d ucts) 1 0 0 9 8 2 53 6 1 5

A g ri c ult u ra l C he mic als 

( A g ri c ult u ra l Pr o1 0 0 1 0 7 2 93 7 2 5

d u cti o n) 1 0 0 1 0 9 1 2 8 1 4 7

1 0 0 1 0 9 1 38 1 5 7

Wo od a n d Pa per

( F ore st r y ) 1 0 0 1 4 9 1 8 9 2 1 2

1 0 0 1 8 6 2 64 3 6 0

Ot h er ( C he mic al a n d

A llie d Pr o d ucts) 1 0 0 9 8 2 5 3 6 1 5

1 0 0 1 0 7 2 9 3 7 2 5

Ge ne ral Car g o ( Man ufa ct u ri n g ) 1 0 0 1 5 2 3 8 5 9 1 8

1 0 0 1 6 6 4 6 6 1, 0 8 3

5 9
5 0 2

F UT U RE NEE DS

Pr o s p ecti v e C o m merce

Ge neral

Water b or ne c o m merce i n t he sele ct e d c o m n o dit y cate g o rie s was 

pr oj ecte d i n acc or da n ce wit h i n dice s of o ut p ut de vel o pe d f o r t he 

a p pr o p riate maj or i n d u str y gr o u p s. T hese i n di ce s ar e s h o w n o n ta ble 2 4.

I n ge ne ral, t he Pr o gra m A i n dice s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gr o wt h f o r t he i n di vi d u al W RP A's wit hi n t he L o wer Mis sis si p pi Re gi o n. 

Pr o gra m B i n dice s were de vel o pe d t o re fl e ct a re gi o n al gr o wt h i n 

e n pl o y me nt e q u al t o t he nati o nal a ve ra g e, 1. 4 p erc e nt!/. A p pli cati o n of 

t h es e i n di ce s t o t h e bas e ye ar t o n na g es s h o w n pr e vi o usl y o n ta bl e 22 

yiel d f ut u re le ve ls of c o n merce as s h o w n i n a g g re g ate o n ta ble 2 5 

T hese le vels are de si g nate d as t he gr o ss nee ds of t h e ar ea. N ote t h at 

t he pr oj ecti o ns ar e e x pre sse d i n t o n - mile s f o r t he water wa ys a n d i n 

s h ort t o n s f o r t he p ort s.

Pr oj ecti o ns of f ut ure nee ds f o r t he Ar ka nsas Ri v er were n ot 

de vel o pe d, as t he Ar ka nsas Ri ve r Na vi gati o n Pr oje ct re ce ntl y c o m plet e d 

was pla n ne d a n d c o nstr u ct e d t o meet all nee ds f o r na vi gati o n o n t he 

Ar ka nsas Ri ve r wit hi n t he f or es ee a ble f ut u re.

I nl a n d T ra ffic

Pr oj ecte d t o n - mile s f o r t he W hite Ri v er ar e 4 1 9. 6 milli o n, 6 9 4. 0 

milli o n, a n d 1 1 9 5. 2 milli o n f o r t he ye ar 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti v el y 

F ut ure t o n s f o r maj or p o rt s o n t he W hite Ri v er t o ta l 4. 5 milli o n, 6. 3 

milli o n, a n d 9. 1 milli o n f o r 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti vel y.

Pr oj ecti o ns f o r p o rt s o n t h e Mississi p pi Ri v er w hic h ser ve WRP A 2 t o ta l 

7. 0 milli o n t o ns, 1 3. 6 milli o n t o ns, a n d 2 6. 5 milli o n f or t he yea rs 

1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti vel y.

T otal Pr oj ecte d C o m merce

T otal pr oj ecte d t o n s f o r all p o rts a n d har b o rs i n WRP A 2 i n di cate 

8. 6 milli o n t o n s i n 1 9 8 0, 1 5. 9 milli o n t o n s i n 2 0 0 0, a n d 2 9. 7 milli o n 

i n 2 0 2 0. T he a ver a ge a n n ual gr o wt h ra te of pr o gra m A f o r WRP A 2 is 

3- 1/ 8 pe rc e nt.

Pr o gra m B t o n s were deri v e d as a m ulti ple of Pr o gra m A t o n s a n d 

fa ct or s de vel o pe d i n t he Ec o no mic A p pe n di x. T he y ar e 7. 7 pe rc e nt,

1 4. 9 pe rc e nt, a n d 1 7. 5 pe rc e nt gr eate r t ha n Pr o gra m A i n 1 9 8 0, 2 0 0 0, 

a n d 2 0 2 0, re s p ecti ve l y.

F u rt h er dis c u ssi o n of t h es e i n dice s a n d t h eir de ri vati o ns is 

c o ntai n e d i n A p pe n di x B, Ec o n o mics.

6 0

5 0 4

Net Needs

Ge neral

Na vi gati o n nee ds data ar e s ho wn i n ta bl e 2 6 f o r Pr o gra ms A a n d B.

T he ta bl es i ncl u d e f o r vari o us t y p es of na vi gati o n i n pr o ve m e nt; gr os s 

nee ds f o r eac h ti me pe ri o d, t he nee ds s ati sfi e d b y e x isti n g f a cil it ie s 

at eac h ti me pe ri o d, a n d t he ne t nee ds t h at w ill re q u ir e s o me t y p e of 

na vi gati o n i m pr o ve me nt t o s ati sf y t he m.

S hall o w - Dr aft C ha n nels

T he pr oj ecte d t o n na g e ca n p h ysic all y be m ove d t hr o u g h t he e x isti n g 

water w a ys. H o wever, t o mo ve t he pr oj ecte d t o n na g e m ore eff ic ie ntl y a n d 

ec o n o micall y, it will be nec es sar y t o i m pr o ve e x isti n g c ha n n els t o 

pr o vi d e de pt h s i n WRP A 2 water wa ys c o m para ble t o t h o se t hr o u g h o ut t he 

i nla n d water wa ys s yste m. T o n mile s w hic h w o ul d be be ne fite d f o r Pr o gra ms 

A a n d B ar e s h o w n i n ta ble 2 6.

Dee p- Draft C ha n nels

T here ar e n o na vi gati o n nee ds pr es e ntl y esti m at e d i n WRP A 2 t h at 

w ill re q uire c o nstr u cti o n of de e p - d raft c ha n n els.

L ocks

It is n ot a n ti ci p at e d t h at t h er e will be a nee d f o r i m pr o ve me nt or 

re plac e me nt of t he f o ur l oc ks l oc ate d o n t he Ar ka nsas Ri v er. C o nst r ucti o n 

of l oc ks ma y be c o n si d ere d as o ne alte r n ati v e i n de v el o pi n g nee de d 

s h all o w- d ra ft c ha n n els.

P o rts a n d Har b ors

A nee d f o r p o rt a n d ha r b or de vel o p me nt e x ists i n WRP A 2. Sla c k w ater 

i nl a n d c ha n nels l o cate d o ff ri v er mai nste ms ar e nee de d t o pr o vi d e are as 

f o r l oa di n g a n d u nl o a di n g f a cil it ie s a n d fl e eti n g ar ea s. T he s p oil fr o m 

ha r b or c o nstr u cti o n w ill li k el y be use d f o r i n d u st ri al fill s. T he net 

nee ds ar e s h o w n i n ta ble 2 6, a n d were ass u me d t o e q u al t o t he t o ta l 

pr oj ecte d t o n na g e le ss t he esti m ate d t o n na g e w hic h c o ul d be rea s o n a bl y 

ha n dle d b y t he e x isti n g f a cil it i e s. Net nee ds f o r Pr o gra m A are 

esti m ate d at 7 0 5, 5 0 0 t o n s i n 1 9 8 0, 6, 4 7 8, 9 0 0 t o n s i n 2 0 0 0, a n d 2 0, 2 9 3, 0 0 0 

t o n s i n 2 0 2 0. Net nee ds f o r Pr o gra m B ar e esti m at e d at 1, 0 0 7, 6 0 0 t o ns 

i n 1 9 8 0, 8, 8 3 7, 3 0 0 t o n s i n 2 0 0 0, a n d 2 5, 5 1 0, 5 0 0 t o n s i n 2 0 2 0.

6 2

5 0 6
5 0 7

FI G U R E 3

5 4 - 2 3 9 0 - 7 5 - 3 3

5 0 9

R P A 3

GE NE R AL D ES C RI PTI O N

Water Res o urces Pla n ni n g Area 3 is l o cate d i n s o ut h w este r n Ke nt uc k y, 

wester n Te n n esse e, o ne c o u nt y i n ea st er n Ar ka nsas a n d t w o c o u ntie s i n t he 

n o rt h ea ste r n c o m er of Mis si ssi p pi. T he ar ea is drai ne d b y Ma yfiel d a n d 

O bi on Cree ks i n Ke nt uc k y, O bi o n, F or ke d Deer, Hatc hie, L o osa hat c hi e, a n d 

W olf Ri v ers a n d N o nc o nna h Cree k i n Te n nes see a n d Mis si ssi p pi. T his WRP A 

c o nsists of f o ur c o u ntie s i n s o ut h w este r n Ke nt uc k y, 16 c o u nti es i n we ster n 

Te n n essee, o ne i n ea st er n Ar ka nsas, t w o i n n o rt he aste r n Mis si ssi p pi, a n d 

t w o i n s o ut her n Ill i n ois .

Areas a dja ce nt t o t h e Mississi p pi Ri ver are ge ne rall y fla t a n d 

c o ver e d wit h all u via l de p o sits. T he re st of t he ar ea is c o ver e d wit h 

l oe ss or wi n d bl o wn ori gi n al s oil a n d t he t o p o g ra p h y is r o lli n g. T he 

el e v ati o n i n cr ea se s east wa r d fr o m t he Mis si ssi p pi Ri ver, a n d i n t he 

hi g h er el e v ati o ns, la n d s ha ve ge ne rall y bee n cl ea re d, w hile i n t h e l o wer 

el e v ati o ns, t h er e ar e m ore w o o dla n ds.

I n t h is ar ea t he mea n a n n ual te m per at u re is 61° wit h killi n g fr o st s 

us uall y oc c u rri n g bet wee n N ove mber a n d A pril. A vera ge a n n ual r ai n fa ll 

is 48 i nc h es wit h ye arl y e xtre me s of 23 a n d 70 i nc he s. Hi g h ri v er sta ge s 

ma y us uall y be e x p ect e d d uri n g Ja n uar y t o Ma y.

E xi sti n g Ec o no mic De vel o p me nt

WRP A 3 c o n si st s of 23 c o u ntie s a n d is d o mi nat e d b y t he ec o n o mic 

st r u ct ure of t h e Me m phis Sta n dar d Metr o p olita n S ta ti sti c al Area ( S MS A) 

w hic h f u ncti o ns as a well di v ersifie d ma n uf act uri n g ce nt er a n d a maj or 

distri b uti o n ce nt er f o r w h olesale a n d r eta il tr a d e. T he S MS A b y 

d ef i n iti o n i n cl u de s Critt e n de n C o u nt y, Ar k a ns as, w hic h is i ncl u d e d i n 

t he WRP A. T he c o u ntie s i n Ke nt uck y are : C a rlis le, Gra v es, Hic k man, 

a n d F ult o n. T he c o u ntie s i n Te n nes see are : La ke, O bi o n, Wea kle y, D yer, 

Gi bs o n, C ar oll, La u der dal e, Cr oc kett, Ma dis o n, Hay wo o d, Ti pt o n, S hel b y, 

Fa yette, Har de ma n, Mc Nair y, a n d C h ester. T he c o u ntie s i n Mis sis si p pi 

ar e Ti p pa y a n d Alc or n.

T he p o p ulati o n i n 1970 was 1, 25 8, 00 9. T he ec o n o mic st r u ct u re of 

WRP A 3 is m ore di v ersifie d t ha n a n y ot he r WRP A i n t he L o wer Mis sis si p pi 

Re gi o n. WRP A 3 c o nt ri b ute d t h e la r g e st s h ar e of gr o ss pr o d uct ori gi n ati n g 

i n ma n ufact uri n g i n 196 8, a n d it c o nt ri b u te d 27.5 perc e nt of t he t o ta l 

ear ni n g s ge nerat e d b y ma n ufact uri n g i n t h e re gi o n. Maj or ma n ufa ct uri n g 

i n d us trie s i ncl u d e a p parel a n d ot he r te x ti le s, l u m ber a n d f u nit ure,

67
pa pe r a n d all ie d pr o d ucts a n d f o o d a n d re la te d m ate ri al. I n a d diti o n 

t o m a n uf act uri n g, w h ole sale a n d r e t a il tr a d e ar e i m p o rta nt ec o n o mic 

a cti v iti e s i n t h e i n d u str ia l str u ct u r e.

T ra ns p o rt ati o n F a ciliti e s ( E xcl u di n g Water wa ys)

R ailr oa ds

T he are a is se r v e d b y t h e Illi n o i s C e n tr al - G ul f, M is s o uri - P a cific 

a n d L o uis ville a n d N as h ville, S o ut h er n a n d St. L o ui s a n d Sa n Fra ncis c o 

Rail w a y. A net w or k o f r a il f a c iliti e s pr o vi d es ac ce ss t o a ll ar ea s 

wit hi n t h e WRP A.

Hi g h wa ys

Maj or U. S. Hi g h wa ys ar e I nte r sta te 40, I nte r sta te 55, U. S.

Hi g h wa y 51, 45, 72, 70, 79, a n d 78. A net w or k o f st ate a n d c o u nt y r oa ds 

p ri vi d e s ac ce ss t o a ll a g ri c ult u ra l are a s.

A irli n e s

Sc he d ule d air li n e se r v ic e f o r pa ss e n ge r a n d a ir fr ei g ht is a v ail a ble 

t o a ll p a rt s o f t h e U nite d Sta te s at t h e Me m phis I n te r n ati o n al Air p o rt. 

C ha rt er fli g h t s ca n be ar ra n g e d t o ma ny o f t h e s m all t o w ns t hr o u g h o ut 

t h e s u br e gi o n.

Pi p eli n es

N at ur al gas li n e s cr os s WRP A 3 i n a ll dir e cti o n s a n d o ri gi n ate i n 

va ri o u s l o c ati o n s. T he re ar e f a c iliti e s i n t h is ar ea t o l o a d ba r g es 

fr o m pi p eli n e s f o r w at er tr a n s p o rt ati o n o f re fi n e d petr ole u m. Als o, 

t h ere ar e s o me f a c iliti e s f o r tr a n sfe rri n g petr ole u m fr o m ba r g es t o 

pi p eli n e s f o r la n d tr a n s p o rt ati o n.

E XI S TI N G A N D A U T H O RI ZE D N A VI G A TI O N I MP R O VE N E N TS

Ge n eral

Ta bl e 27 pre se nts a s u n mar y o f e xis ti n g n a v i g ati o n i m pr o ve me nts. 

D et aile d i n f o r m ati o n ca n be f o u n d i n A p pe n di x D, I n ve nt or y of F a cil it ie s.
5 1 1

Ta b le 2 7 - E xisti n g Na vi g ati o n I m pr o ve me nts, WRP A 3

P o rts

De pt h

fe et

wi dt h' —

fe et

Le n gt h

mil es Re mar ks

Hick man Har b or 2 50 1. 1 T ur ni n g ba si n 5 00 fe et 

wi de

W olf Ri ve r * 2 5 0 a n d 

2 00

* 25 0 fe et fr o m m o uth t o 

Keel A ve.

2 00 fe et fr o m Keel A ve. 

t o mil e 3. 0

Me mp his Har b or 

( P re si de nt s Isl a n d)

1 2 3 00

S hall o w - Dr aft C ha n nels

T here ar e n o acti v e na vi gati o n c ha n nels i n WRP A 3. I n pa st ye ar s, 

h o we ver, t h er e was s o me na vi gati o n o n t h e O bi o n a n d F or ke d Deer Ri v ers 

of West Te n n esse e.

O bi o n Ri v er

T he O bi o n Ri v er na vi gati o n pr o je ct was bas e d o n a s ur ve y made i n 

1 8 9 1, a n d was a ut h orize d i n 1 8 9 2. T he pr oj ec t pr o vi d e d f o r a 3-f o ot 

na vi gati o n de pt h at l o w wat er b y means of o pe n-c ha n nel w or k. D uri n g 

t he cale n da r ye ar 1 9 1 0, c o m merce o n t h is stre a m a m o u nted t o 1 8, 6 3 8 

s h ort t o ns, c o nsisti n g al m ost w h oll y of ti m ber pr o d ucts.

T her e is n o c o m mercial na vi gati o n o n t h e O bi o n Ri v er a n d mai nt e na nc e 

of t he na vi gati o n pr oj ect cea se d man y ye ar s a g o.

F or ke d Deer Ri ve r

A na vi gati o n pr oj ect o n F or ke d Deer was a ut h orize d b y t h e Ri ver a n d 

Har b or Act of 2 A u g ust 1 88 2 bas e d o n a re p o rt of a n e xa mi n ati o n of t he 

S o ut h F or k of t he F or ke d Deer, date d 1 6 Dece m ber 1 8 8 0. T he o p er ati o ns 

pr o p o se d were o pe n- c ha n nel w or k, t o mai nt ai n a sa ti sf a ct o r y c ha n nel all 

ye ar. T he pr oj ect was se t asi de bec a us e t h e de si re d re s u lt c o ul d n ot 

be acc o m plis he d b y t he pr o p o se d met h o d. A la te r pr oj ect bas e d o n t he 

pr o visi o n s of t he Act of 3 Marc h 1 8 9 9 pr o vi d es f o r mai nte na n ce of t he 

c ha n n el f o r na vi gati o n b y t h e re m o val of s u rf ac e o b str u cti o ns as 

ne ce ssa r y. T he b ul k of t he c o m nerce u p t o 1 9 12 c o nsiste d of ti m ber 

pr o d ucts. C u rre ntl y t h er e is n o c o m merce o n t he stre a m a n d mai nte na n ce 

of na vi gati o n pr oje ct s has cea se d.

6 9

Dee p- Draft C ha n nels

T here ar e n o de e p - d ra ft c ha n nels wit hi n t he WRP A 3.

L ocks

T here are n o e x isti n g l oc k s i n WRP A 3.

P o rts

S hallc w Dr aft

WRP A 3 is ser ve d b y f o ur maj or p o rt ar ea s o n t he Mis si ssi p pi Ri ver. 

T hey ar e l o cate d at Wic kliff e a n d Hic k man, Ke nt uc k y; Ti pt o n v ille a n d 

Me m phis, Te n n esse e. T he p o rt at Me mp his i ncl u d es f a cil it i e s at West 

Me mp his, Ar ka nsas; W olf Ri ve r Har b or a n d t h e Pr esi d e nts Isla n d 

De vel o p me nt, k no wn as Me m phis Hait o or, Te n n esse e.

Wic kliff e, Ke nt uc k y

A s mall p o rt at Wic kliff e, Ke nt uc k y, wit h e q ui p me nt ha n dli n g a n d 

st o ra ge f a cil it i e s is o p erate d b y l o cal i n te r e st. T here ha ve bee n n o 

Fe d eral i m pr o ve me nts at t h is p o rt.

Hic k ma n, Ke nt uc k y

A Fe d eral pr oj ect at Hick ma n Har b or, Ke nt uc k y, was a ut h orize d b y 

t he C hief of E n gi neers i n 1962 u n der Se cti o n 107, Ri v er a n d Har b or Act 

of 1960, as a me nde d. T he pr oj ect is c o m plete a n d mai ntai ne d at pr oj ect 

di me n si o ns.

T he pr oje ct c o nsists of dre d gi n g a n d mai nt ai ni n g a ha r b or c ha n n el 

250 fe et wi de wit h a de pt h of 9 fe et belc w le w w at er, fr o m t h e mai n 

c ha n nel of t he Mississi p pi Ri v er at Mile 922 A HP. T he ha r b or is a b o ut 

6, 00 0 fe et i n le n gt h wit h t he u p per 600 fe et f or mi n g a t u r ni n g ba si n 

500 fe et wi de. T he pr oj ect ser ve s e x isti n g ter mi nal f a cil it i e s f o r 

ha n dli n g petr ole u n pr o d ucts, sa n d a n d gr a vel a n d gr ai n. T here is , i n 

a d diti o n, a b o ut 0.2 mile of s urfa ce d p iili c m o ori n g a n d la u nc hi n g ar ea. 

T ot al w at er fr o nt i n d u st ri al are a ser ve d is a p pr o xi matel y 130 ac re s. 

Ti pt o n ville, Te n nes see

T he p o rt of ' Ti pt o n ville is o p er ate d b y l o cal i n te re sts. T here ha ve 

bee n n o Fe der al i m pr o ve ments at t h is p ort.

Me m phis, Te n nes see

P ort f a c iliti e s at West Me m phis ar e o n t he mai n c ha n nel of t he 

Mis si ssi p pi Ri v er a n d ar e o p erate d b y pri v at e e n te r p ri se. T he p o rt 

i n W olf Ri ver, Te n n esse e, was a ut h oriz e d b y t he 1958 Fl o o d C o ntr ol Act 

( H o use D oc u me nt N o. 26/72 /1 a n d 4 5/7 4/1).
5 1 4

T he pr oj ec t pr o vi d es a c ha n nel 9 fe et dee p at l o w water fr o m t he 

m o ut h t o mil e 3 (1 5, 84 0 f e et), wit h b ott o m wi dt hs of 250 fe et fr o m t he 

m o ut h t o Keel A ven ue a n d 200 fe et fr o m Keel A ven ue t o mil e 3.0. T here 

ar e t we nt y ter mi n als al o n g t he pr oj ect c ha n nel w hic h occ u p y a p pr o xi m atel y 

130 i n d u st ri al ac re s. O ne ter m i nal is o p erate d b y t he C oast G uar d, t w o 

b y c o nt ra ct c a rri e rs , a n d 17 are pr i v at el y o p erate d.

T he Me mp his Har b or ( P re si d e nts Isla n d) pr oj ec t was a ut h orize d b y 

t he Fl o o d C o ntr ol Act of 24 J ul y 1946. T he pr oj ec t c o nsists of o ff -r i v e r 

har b or c ha n nels 12 fe et b y 300 fe et, t o ta li n g a p pr o xi m atel y 9 mile s, a 

96 0- ac re i n d u st ri al fill o n Pr esi de nt s Isla n d, a n d pr ot ecti o n fr o m 

fl o o di n g f o r a n ar ea of 6, 80 0 acr es f o r i n d u st ri al de vel o p me nt.

T here ar e 20 d oc ks o n t he pr oj ect c h a n nels, i ncl u di n g t w o p u blic 

ter mi n al s. T otal c o m merce mo ve d t hr o u g h t he pr oj ect i n 1970 was 

10,01 8,0 00 t o ns, a n d has bee n i nc re asi n g a n n uall y.

Dee p Draft

T here are n o de e p - d ra ft p o rts i n WRP A 3.

Na vi gati o n Ai ds

T he U. S. C oast G uar d mai ntai ns all ne ce ssa r y ai d s t o na vi gati o n o n 

Fe derall y c o nstr u cte d p r o je cts, a n d mar ks haz ar d s t o na vi gati o n.

A ut h orize d Na vi gati o n I m pr o ve me nts

All a ut h orize d na vi gati o n i m pr o ve me nts i n WRP A 3 ha ve bee n c o m plete d 

a n d are de scri b e d a b o ve as e x isti n g pr o je cts.

E XI S TI N G 00 M4 ER C E

Ge neral

Water b or ne c o m merce ha n dle d t hr o u g h maj or p o rt s i n WRP A 3 a m o u nte d 

t o 10,32 1, 30 0 t o n s i n 1970. Ni n et y- se ve n pe rc e nt of t h is t o n na ge, 

10,01 7, 80 0 te n s, were ha n dle d t hr o u g h t he p o rt at Me mp his. Me m phis is 

cl ea rl y t he maj or distri b uti o n ce nt er f o r t he WRP A 3 a n d e nti re mi d ­

s o ut h ar ea. Pr o d uct s ha n dle d at p o rts ot he r t ha n Me mp his ar e pri m aril y 

l o ca ll y pr o d uce d a g ri c ult u ra l pr o d ucts, wit h a s mall a m ou nt of petr ole u m 

a n d ti m b er pr o d ucts.

T he p o rt at Me mp his ha n dle s a di v er sit y of pr o d ucts. Hist o ri c all y 

t he maj or c o n m o diti es ha ve bee n petr ole u m, gr ai ns, a n d c o al.

72
5 1 5

I n a d diti o n t o its hist o r y as a maj o r distri b uti o n ce nt er f o r b ul k 

pr o d ucts, Me m phis is bec o mi n g a ce nt er f o r pr oc es si n g a n d ma n uf act uri n g, 

a n d m ove me nt of ra w m at erials a n d ma n u fact ure d pr o d ucts ar e bec o mi n g 

m ore i m p orta nt.

" D elt a Q uee n"-a re mi n der of a n ot he r er a o n t h e Mis si ssi p pi.

7 3

5 1 7

F UT U RE NEE DS

Pr os pe cti ve C o m merce

Ge neral

Water b or ne c o m merce i n t he se le ct e d c o m m o dit y cate g o rie s was 

pr oj ecte d i n acc or da nce wit h i n di ce s o f o ut p ut de vel o pe d f o r t h e 

a p pr o p riate maj or i n d u str y gr o u ps. T hese i n di ce s ar e s he wn o n ta ble 29. 

I n ge ne ral, t h e Pr o gra m A i n di ce s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gre wt h f o r t h e i n di vi d u al W RP A's wit hi n t he L o wer Mis sis si p pi Re gi o n. 

Pr o gra m B i n di ce s were de vel o pe d t o r e fl e ct a re gi o nal gr o wt h i n 

e m pl o y me nt e q u al t o t he nati o nal a ve ra g e, 1. 4 p er c e n t! /. A p pli cati o n of 

t h es e i n di ce s t o t he bas e ye ar t o n n a ges s h o w n pr e vi o u sl y o n ta ble 28 

yiel d f ut u re le vels of c o m merce as s he wn i n a g g re g ate o n ta ble 30.

T hese le vels ar e desi g n ate d as t he gr o ss nee ds of t he ar ea. N ote t h at 

t he pr oj ecti o ns ar e e x p res se d i n t o n - mile s f o r t he water wa ys a n d i n 

s h ort t o n s f o r t h e p o rt s.

T otal Pr oj ecte d C o m merce

T otal pr oj ecte d t o n s f o r all p o rt s i n WRP A 3 ar e 12.2 milli o n i n 

198 0, 23.7 milli o n i n 200 0, a n d 45.0 milli o n i n 202 0. T he p o rt at 

Me mp his will c o nti n ue t o ca rr y m ore t ha n 97 pe rc e nt of t he pr oj ecte d 

t o n na ge.

T he a vera ge a n n ual gr o wt h ra te of Pr o gra m A f o r WRP A 3 is 3. 0 pe rc e nt. 

Pr o gra m B t o n s were deri v e d as a m ulti ple of Pr o gra m A t o n s a n d fa ct or s 

de vel o pe d i n t he Ec o n o mics A p pe n di x. T here ar e 21.1 pe rc e nt, 23.3 pe rc e nt, 

a n d 22.5 pe rc e nt gr ea te r t ha n Pr o gra m A i n 19 80, 200 0, a n d 20 20, re s p ec ti ve l y.

Net Nee ds

Ge neral

Na vi gati o n nee ds data ar e s he wn i n ta ble 31 f o r Pr o gra ms A a n d B. 

T he ta bl es i ncl u d e t he gr o ss nee ds f o r eac h ti me pe ri o d, t he nee d s t o be 

s ati sfie d b y e x isti n g f a cil it i e s at eac h ti me pe ri o d, a n d t he net nee ds 

t h at will re q u ir e s o me t y p e of na vi gati o n i m pr o ve me nt t o s ati sf y t he m. 

T he vari o us t y pe na vi gati o n i m pr o ve me nts ar e al s o s h o wn.

S hall o w- a n d Dee p- Draft C ha n nelsT here ar e n o na vi gati o n nee d s pr es e n tl y i d e nti fi e d i n WRP A 3 t h at 

w o uld re q u ir e s hall o w - or de e p - d ra ft c ha n nel t y pe c o nstr u cti o n w or k.

F u rt h er di sc us si o n of t h es e i n di ce s a n d t h eir de ri vati o ns is 

c o ntai ne d i n A p pe n di x B, Ec o n o mics.

1/

75
5 1 8

Ta ble 2 9 - Ec o n o mic F or ec as t, WRP A 3 

I n de x of P r o d u cti vit y b y Maj or I n d u strie s

C o m m o dit y

(I n d u st r y Gr o u p) Pr o gra m 1 9 70 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( A gri c u lt ural

Pr o d ucti o n) 1 0 0 1 1 6 1 3 8 1 6 3

1 0 0 1 1 6 1 4 9 1 7 6

Petr ole u m ( Petr ole u m

R efi ni n g) 1 0 0 1 4 8 3 1 6 6 1 2

1 0 0 1 6 2 3 6 6 7 2 2

CS S A ( Q uar r yi n g) 1 0 0 1 4 1 2 5 0 4 5 9

1 0 0 1 5 5 2 9 0 5 41

S ul p h ur ( C h e mi cals

a n d Allie d Pr o d ucts) 1 0 0 1 8 9 5 2 3 1, 3 3 1

1 0 0 2 07 6 0 5 1, 5 7 0

Ir o n a n d Ste el ( P ri -

mar y M et als ) 1 0 0 1 3 6 2 7 0 5 2 0

I n d u stria l C he micals 

( C h e mi cals a n d

1 0 0 1 4 9 3 1 2 6 1 3

Allie d Pr o d ucts) 1 0 0 1 8 9 5 2 3 1, 3 3 1

A gri c ult u ra l C he mic als 

( A gri c u lt ura l Pr o -

1 0 0 2 07 6 0 5 1, 5 7 0

d u cti o n) 1 0 0 1 1 6 1 3 8 1 6 3

1 0 0 1 1 6 1 4 9 1 7 6

F o re st r y ( F or estr y

Pr o d ucts) 1 0 0 9 8 1 4 7 1 6 6

1 0 0 1 2 2 1 9 6 3 3 5

Ot h er ( C h e mi cals a n d

A llie d Pr o d ucts) 1 0 0 1 8 9 5 2 3 1, 3 3 1

1 0 0 2 07 6 0 5 1, 5 7 0

Ge ne ral Car g o ( Man ufa ct u ri n g ) 1 0 0 1 5 3 3 7 7 8 5 5

1 0 0 1 6 8 4 3 6 1, 0 4 4

7 6
5 1 9
5 2 0

L oc k

T here are n o e x isti n g na vi gati o n l oc k s i n WRP A 3, a n d t h er ef or e, 

n o nee d f o r l oc k re pla ce me nt or c o nstr u cti o n. C o nstr u cti o n of l oc k s 

ma y be c o n si d ere d as o ne alte r n ati v e i n pr o vi di n g c o nsta nt le vel sla c k - 

w ate r p o rt de vel o p me nts off mai n ri v er c ha n nels.

P o rts a n d Har b ors

T here will be a nee d f o r p o rt a n d har b or de vel o p me nt i n WRP A 3. 

Sla c k w ater i nl a n d c ha n nel s l o cate d o ff ri v er mai nste ms ar e nee de d t o 

pr o vi de are as f o r l oa di n g a n d u nl o a di n g f a cil it i e s a n d al s o fl ee ti n g 

ar ea s. T he s p oil fr o m a n y hai b or c o nstr u cti o n ma y be use d f o r 

i n d u st ri al f ill. T he net nee ds are s he w n i n ta bl e 3 1, a n d were ass u me d 

t o be e q ual t o t he t o ta l pr oj ecte d t o n na ge le ss t h e esti m at e d rea s o n a ble 

ca pa cit y of t he e x isti n g f a cil it i e s. Net nee ds f o r Pr o gra m A f o r 1 9 8 0, 

2 0 0 0, a n d 2 02 0 ar e 3 3 2, 1 0 0; 1 1, 7 6 3, 6 0 0; a n d 3 3, 0 2 7, 4 0 0 t o ns, 

re s p ec ti ve l y. F or Pr o gra m B, net nee ds f o r t he sa me t h re e peri o ds are 

2, 9 0 4, 6 0 0; 1 7, 2 7 7, 1 0 0; a n d 4 3, 1 6 8, 2 0 0.

7 8
I t e D e e p - d r a f t C h a n n e l s ( 1 0 T o n - M i l e s ) N e w C h a n n e l s G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d E x i s t i n g F a c i l i t i e s I n p r o v e m e n t G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d S h a l l o w - d r a f t C h a n n e l s ( 1 0 T o n - M i l e s ) N e w C h a n n e l s G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d E x i s t i n g F a c i l i t i e s I m p r o v e m e n t G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d D e e p - d r a f t N a v i g a t i o n s L o c k s ( # S h i p L o c k a g e s ) G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d S h a l l o w - d r a f t N a v i g a t i o n L o c k s ( I O T o n s ) G r o s s N e e d E x i s t i n g S u p p l y N e t N e e d T a b l e 3 1 - N a v i g a t i o n N e e d s , W R P A 3 P r o g r a m A 1 9 7 0 l $ 8 0 r o g r a n P r o g r a m B T 3 S I 5 - - - - - - - - - - - - - - - N O N E N O N E N O N E N O N E N O N E N O N E C n t o N O N E N O N E N O N E N O N E N O N E N O N E

5 2 3

FI G U R E 4

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

W R P A- 3

5 4- 2 3 9 0 - 7 5 - 3 4
5 2 4
5 2 5

W R P A 4

GE NE R AL DES C RI PTI O N

T he Yaz oo Water Res o urce Pla n ni n g Area is i n t he n ort h w est p orti o n 

of t he State of Mississi p pi. T his are a e xte n ds ge n erall y fr o m t he 

C hickasa w Bl uffs s o ut h of Me mp his, Te n n., t o t he Wal n ut Hills at 

Vic ks b ur g, Mi ss., a dista n ce of a b o ut 200 mile s.

T he Yazo o, Talla hatc hie, a n d C ol d water Ri vers f or m t he mai n ste m 

of t he Yaz oo Basi n drai na ge s yste m near t he ea ste r n b o u n dar y of t he 

basi n. I n t he wester n secti o n of t he ba si n, t he Bi g S u nfl o wer Ri ver 

a n d it s tri b uta ri es ( Q ui ver Ri ver, H ush p ucke na Ri ver, B og ue P h ali a, 

a n d Deer Cree k) pr o vi de drai na g e. T he area west of Deer Cree k a n d ea st 

of t he mai n -li ne Mis sissi p pi Ri ver le vee s is drai ne d b y St eele Bay o u.

T hat p orti o n of t he Yaz oo Basi n a b ove Yaz oo Cit y, Mi ss., is ref erre d 

t o as t he Yaz oo Hea d water Area. T he pri n ci pal hil l tri b uta ri es i n t he 

Hea d water Area are t he Littl e Talla hatc hie, Y oco na, C ol d water, a n d 

Yal o b us ha Ri v ers. T he pri n ci pal delta tri b uta ri es i ncl u d e Cassi d y 

Bay ou a n d Tc h ula La ke. T he Hea «i <rater Area c o m prises a n are a of 8,90 0 

s q uare miles-- o ne-f o urt h of w hic h is i n t he all u vi al valle y a n d t hr eef o u rt hs of t he area is i n h ill la n d s.

T he Bi g S u nfl o wer Ri ver's wester n b or d er is t he ea st ba n k mai n -li ne 

le vee of t he Mi ssis si p pi Ri ver a n d is b or der e d o n t he ea st b y t he dr ai n ­

a ge area s of Cassi d y Bay ou, a n d t he Talla hat c hi e a n d Yaz oo Ri v ers. T he 

le n gt h of t he basi n is a b o ut 140 miles i n a n ort h-s o ut h di re cti o n, wit h 

a n a vera ge wi dt h of 30 mile s. T he basi n e xte n ds fr o m t he vi ci nit y of 

Cla r ks dal e, Miss. ( H ull Bra k e), t o t he c o nfl ue nc e of Yaz oo Ri ver a n d 

Ste ele Ba y o u--a b o ut 10 miles n ort h of Vic ks b ur g, Miss. T he t wo maj or 

drai na ge o utlets are Bi g S u nfl o wer Ri ver a n d Ste ele Bay o u.

T he Yaz o o WRP A e x perie nces a ge n erall y mil d cli m ate. War m, h u mi d 

s u m mers a n d m o derate wi nte rs are c h ar ac te ri stic of t he are a. Te mpera ­

t ur es a vera ge a b o ut 63° F. a n n uall y. T he a vera ge a n n ual rai n fa ll is 

52 i nc h es. A gr eater pa rt of t he pr eci pit ati o n occ urs d uri n g t he 

wi nter a n d s p ri n g- -80 perc e nt of t he a n n ual r u n off occ urs d uri n g t his 

peri o d. Fre eze -fre e peri o ds ( gr o wi n g seas o n) a vera ge a b o ut 230 da ys 

f or WRP A 4.

E xisti n g Ec on o mic De vel op me nt

I n 1968, t otal e mpl oy me nt i n WRP A 4 was esti m ate d at 231,00 0 

pers o ns--a n i ncr ease of 9 per ce nt o ver t he n u mber re p orte d i n 1959. 

T ot al ear ni n gs f or t he are a i n 1968 were a p pr o xi matel y $974 milli o n.

83
5 2 6

I n d ust rie s w hic h ma de si g nific a nt c o ntri b uti o ns t o t o tal ear ni n g s 

i ncl u de d a g ric ult ure, 2 7 perc e nt of t otal a n d ma n ufact uri n g, 21 per ce nt. 

Ma n ufact uri n g has bec o me i nc rea si n gl y i n p orta nt t o t he ar ea's eco no my. 

Pri nci pal ma n ufact uri n g i n d u strie s i ncl u d e: c he micals a n d alli e d 

pr o d ucts, f o o d a n d ki n dr e d pr o d ucts, a n d te xtile mill pr o d ucts.

Val ua ble nat ural res o u rces w hich ha ve c o ntri b ute d t o t he e xisti n g 

eco no my i ncl u de: f e rt il e a g ric ult ural la n d s, f o re st s, mi neral de p o sits, 

a n d wil dlif e. Of t he t o ta l are a, 9 2 perce nt is i n a g ric ult ural la n d s-- 

w hich c o nsi sts of 78 perc e nt i n far ms, 20 perc e nt i n f ore st la n d, a nd 

2 perc e nt i n ot h er n o nfar m la n d s. N o n-a gric ult ural la n ds acc o u nt f or 

6 perc e nt of t he t otal (i ncl u de s Fe deral la n d s, ur ba n a n d b uilt - u p 

are as, a n d s mall water ar ea s). T he re mai ni n g 2 perce nt of t he t otal 

are a c o n sists of lar g e water are as. Pri nci pal mi neral res o urces are: 

petr ole u m, sa n d a n d gra vel, nat ural gas, a n d cla ys.

Tra ns p ortati o n F ac ilitie s ( E xcl u di n g Water ways)

Railr oa ds

Rail wa y tra ns p o rtati o n ser vi ce f or WRP A 4 is pr o vi de d b y mai n-li ne 

r o ut es of t he Illi n ois Ce ntral S yste m w hich tra ve rse t he area i n a 

n ort h-s o ut h dire cti o n. Ser vi ce is a de q uate a n d pr o vi d es di re ct r o ute s 

t o Ne w Orlea ns a n d t o p oi nts i n t he n ort h -ce ntr al U nite d St at es. Wit h 

c o n necti o ns at maj or ter mi nals o utsi de t he WRP A, fr ei g ht ca n be mo ve d 

t o ot h er st at es a n d t o all secti o ns of t he Nati o n.

Hig h ways

A net wor k of i n te rstate, Fe deral, a n d St ate hi g h wa ys wit hi n t he 

WRP A offers a de q uate access t o all secti o n s a n d t o ot h er areas of t he 

U nite d St ate s. I nte rstate R o ute 5 5 r u ns i n a n ort h-s o ut h dire cti o n a nd 

is l oc ate d near t he ea ste r n b o u n dar y of WRP A 4. U nite d States R o ute 6 1 

tra ve rse s t he wester n b o u n dar y a n d U nite d States R o ute 8 2 cr os ses t he 

mi d- secti o n fr o m e ast t o west. Ot her Fe deral a n d Stat e hi g h wa ys pr o vi de 

a d diti o n al tra ns p o rtati o n fa cilit y c o vera ge.

Ai rli ne s

Sc he d uled ai rli n e ser vic e is li mite d t o t hr ee ur ba n areas l ocate d 

i n WRP A 4. T hese Mis sissi p pi citie s ( Gr ee n vill e, Cle vela n d, a nd 

Green wo od) are ser vice d b y S o ut her n Airli n es a n d Mi d- C o nti ne nt Ai rli ne s. 

Mo de m air p orts a n d ai rli n es i n t he area of fe r a de q uate tra ns p o rt, 

ai r- fr ei g ht, a n d air c h arter ser vic e t o all secti o ns of t he Nati o n. 

Pi p eli n es

Nat ural gas a n d cr u de oil pi p eli nes cr oss WRP A 4 fr o m t he s o ut h west 

t o t he n ort he ast a n d fr o m west t o ea st. T hese li n es ha ve t h eir ori gi n 

i n ea st Te xas a n d t he c o ast al areas of L o uisia n a.

84
5 2 7

E XI S TI N G N A VI G A TI O N I MP R O V E ME N TS

G e n er al

T a b le 3 2 p r e s e nts a s u n ma r y o f e x i sti n g n a vi g ati o n i m pr o v e m e nts. 

D eta il e d i n f o r m ati o n ca n be f o u n d i n A p pe n di x D, I n v e nt o r y o f F a c iliti e s.

T a b le 3 2 - E xis ti n g N a vi g ati o n I m pr o v e m e nts, W RP A 4

De pt h Wi dt h

Wat er wa y Fe et f e et

Yaz o o Ri v er 4 f t. 5 le s s 

d u ri n g l o w 

w ate r

1 0 0 mi n

P o rt s

G r e e n ville 1 2 2 5 0

Vic ks b u r g 1 2 3 0 0

Le n gt h

m il e s Re mar ks

1 8 9

4. 5 T ur ni n g b a si n 5 0 0 f e et 

wi d e.

2. 8

S h all o w - D ra ft C ha n n el s

Yaz o o Ri v er

T he Ri v er a n d H ar b o r Act o f 3 Marc h 1 8 7 5 a ut h o ri z e d n a vi g ati o n 

i m pr o ve me nts o n t h e Yaz o o Ri v er fr o m it s m o ut h t o t h e j u n cti o n o f t h e 

T all a h atc hie a n d Y al o b us ha Ri v er s b y re m o val o f s n a g s, w re c k s, s u b m er g e d 

l o g s, o v er h a n gi n g t r e e s, a n d ot h e r o b str u cti o n s i n t h e c h a n n el. T he 

m o ut h o f t h e ri v e r, at i t s j u n cti o n w it h t h e M is sis si p pi Ri v er at 

Vic k s b ur g, M is s., was i m pr o v e d u n d er t h e p r o vis i o n s o f t h e Ri v er a n d 

H ar b o r Act o f 1 3 J u l y 1 8 9 2 ( c o n str u cti o n o f Yaz o o Di v ersi o n C a n al).

U n der t h e 1 8 7 5 A ct, n o mi ni m u m c h a n n el de pt h f o r t h e Yaz o o Ri v er 

was s p e cif i e d. T he C o r ps o f E n gi n ee rs c o m pl et e d t h e i n iti a l p h as e o f 

n a vi g ati o n i m pr o ve me nts i n 1 8 8 8 a n d si n c e t h a t ti m e h as m ai n ta i n e d t h e 

c h a n nel t o a li m it e d d e g re e, de pe n d i n g o n t h e de ma n d s f o r n a vi g ati o n. 

Si n ce 1 9 4 1, m ai nt e n a n ce ha s c o n sis te d o f re m o v al o f a r o c k le d g e at 

a p pr o x i m at e mil e 1 8. 0, a mi n or a m o u nt o f dre d gi n g at i s o l at e d l o c ati o n s 

o n t h e l o w er re a c h, a n d ra n d o m cle a ri n g a n d s n a g gi n g.

U n der e x is ti n g c o n diti o n s, t h e f oll c w i n g f a ct o r s li m it n a vi g ati o n 

o n t h e Yaz o o Ri v er:

8 5
5 2 8

Mi ni mu n c ha n n el de pt hs of 9 fe et or gr ea te r ar e a v aila bl e o nl y 

a b o ut 46 perce nt of t h e ti me a n d t h is pe ri o d of ti me is n ot c o nse c uti v e. 

D uri n g l o w- w ater pe ri o d s, c o nt r olli n g de pt h s of 3 t o 4 fe et occ u r o ver 

t h e sa n d ba rs.

N u mer o us s ha r p be n ds r e str ic t m ove me nt of t he s m alle st t o ws ( o ne 

or t w o bar ges a n d a t o w b o at).

T he fi x e d hi g h wa y bri d ge at Belz o ni ( mile 11 6. 1) r e str ic ts tr a f fic 

u pstr ea m fr o m t h at p oi nt d u ri n g hi g h ri v er st a g es.

T he ri v er is na vi ga ble o nl y d uri n g da yli g ht h o ur s d ue t o t he haz ar ds 

e nc o u ntere d o n t he water wa y.

F a cilitie s f o r ha n dli n g wate r b or ne c o m nerce o n t he Yazo o are li mite d. 

Bi g S u nfl o wer Ri ver

Na vi gati o n o n t he Bi g S u nfl o wer Ri ve r is c u rr e ntl y i n ac ti ve. 

O p erati o n a n d mai nte n a nce of t he pr oj ect was a ba n d o ne d u n der a ut h orit y 

of t h e Ri v er a n d Har b or Act of 26 A u g ust 1937. I nit ia l ii qrr o ve me nts t o 

na vi gati o n o n t h is stre a m were a ut h o riz e d u n der t he Ri v er a n d Har b or 

Acts of 1907 a n d 1912. I m pr o ve me nts i ncl u d e d o ne l oc k a n d da m (a t mile 

62.0 - L ittl e Calla o La n di n g) a n d c ha n nel i m pr o ve me nt wit h a mi ni m un 

de pt h of 4- 1/ 2 fe et t o t he hea d of pr oj ect ( mile 17 1.0 - m o ut h of 

H us h p uc kena Ri v er). O p erati o n of t he pr oj ect was fr o m 1918 t o 1937.

Ot h er Strea ms

Na vi gati o n pr oj ects o n ot he r strea m s i n WRP A 4 are i n ac ti v e. T he 

pr o je ct s c o nsist e d of cl ea ri n g a n d s na g gi n g o p er ati o n s o n St eele a n d 

Was hi n gt o n Ba y ou, La ke Was hi n gt o n, Yal o b us ha Ri ver, Talla hatc hi e Ri v er, 

L it tl e Talla hatc hi e Ri ver, a n d C olc k ate r Ri v er (s ee ta ble 3 3).

Ta ble 33 - Na vi gati o n Pr oj ects o n Ot h er Stre a m s, WRP A 4

Hea d of Na vi g ati o n

Strea m L ocati o n Miles a b o ve m out h

Ste el e a n d Was hi n gt o n Ba yo us 

a n d La ke Was hi n gt o n, Miss. Gle n Alla n 61.0

Yal o b us ha Ri ver, Miss. Gre na da 62.9

T alla hatc hi e Ri ver, Miss. M out h of C ol d w ater Ri v er 11 1.1

L it tl e T alla hatc hi e Ri ver, 

Miss. B at es ville

2 9.3 ^

C ol d w ater Ri ver, Miss. Yazo o Pass 40.1

— Via ol d c ha n n el p ri o r t o c o nstr u cti o n of Pa n ola- Q uit ma n Fl o o A/a y.

86
5 2 9

Dee p- Draft C ha n nels

No dee p- d raft c ha n nels e xist i n WRP A 4.

L oc ks

C ur re ntl y, t he re are n o l oc ki n g fa cilitie s i n WRP A 4.

P orts

S h all w Draft

Vic ks b ur g Har b or. T he Vic ks b ur g Har b or pr oj ect, c o m plete d i n 1961, 

was c o n str u cte d u n der a ut h o rit y of t he Fl o o d C o ntr ol Act of 15 May 1928 

a n d u n der a me nd me nts a n d m o dificati o n s of t he Fl o o d C o ntr ol Acts of 

24 J ul y 1946 a n d 3 Se pte m ber 1954. T his pr oj ect pr o vi de d f or c o n str u c ­

ti o n of a har b or c ha n nel a n d a n a p pr oac h na vi gati o n c ha n nel ge n erall y 

al o n g t he n ort h ba n k of Lake Ce nt e n ni al, n ort h w est of Vic ks b ur g, Miss.

T he har b or c ha n nel was c o n str u cte d t o a mi ni mu m de pt h of 12 feet a n d a 

wi dt h of 150 fe et. T he a p pr oach na vi gati o n c ha n nel c o n nects t he har b or 

c ha n nel t o t he e xisti n g Vic ks b ur g Har b or. E xca vate d materi al fr o m 

c o n str u cti o n of t he har b or a n d a p pr oach c ha n nel was use d t o f or m a n 

i n d u stri al fill area a n d f or hi g h wa y a n d rail w a y a p pr oac hes t o t he sit e. 

T he i n d u stri al fill are a, wit h a wi dt h of 1,00 0 fe et a n d le n gt h of 

10,70 0 fe et, c o ntai n s 245 acres a b ove pr oj ect fl o o d hei g ht. T he P ort 

of Vic ks b ur g pr o vi d es c o m plete pi blic ter mi nal a n d ware h o usi n g fa cilitie s 

at t he sit e. I n a d diti o n, pri vate f a cilitie s are i n o perati o n at t he 

i n d u stri al sit e a n d t he near b y Vic ks b ur g Har b or. I n 1970, a p pr o xi matel y 

2,0 00, 000 t o ns of water b or ne c o n merce were ha n dle d b y all fa cilitie s at 

Vic ks b ur g. Maj or c o m mo dities mo ve d b y wat er i ncl u de d: gr ai n s, petr o ­

le u m pr o d ucts, c o n str u cti o n m ate rials, a n d w o od a n d pa per pr o d ucts.

Gre e n ville Har b or. T he har b or pr oj ect at Gr ee n ville, Mi ss., was 

c o n str u cte d u n der a ut h o rit y of t he Fl o o d C o ntr ol Act of 15 May 1928, 

as a me nded b y t he Act of 3 J ul y 1958. T he pr oj ect pr o vi de d f or c o n ­

str u cti o n of a har b or a n d p ort area o n Lake Fer g us o n (a n ol d be nd wa y of 

t he Mi ssi ssi p pi Ri ver) j u st s o ut h west of Gre e n ville, Miss. Wor k 

c o n sist e d of dre d gi n g a har b or a n d t ur ni n g basi n 500 fe et wi de a n d 

10,00 0 fe et l o n g t o a de pt h of 12 fe et at l o west ri ve r sta ge s. T he 

har b or is c o n necte d t o t he Mi ssis si p pi Ri ver b y a 250-f o ot- wi d e c ha n nel 

w hich is als o 12 fe et i n de pt h. T he p o rt are a, c o n str u cte d wit h dre d ge d 

s p oil m at erial, is 1,00 0 feet wi de a n d 5,00 0 fe et i n le n gt h, w hic h f or me d 

a fl o o d-fr ee are a of 115 acr es. T his pr oj ect was c o m plete d i n 1963. 

P u bli c p o rt, ter mi nal, a n d ware h o usi n g f a cil it ie s, l oc ate d at t he u p per 

e n d of t he har b or o n Lake Fer g us o n, were c o n str u cte d b y l oc al i n te re st s. 

E xisti n g pri v at e a n d p u blic fa cilitie s c o nsi st of a pi blic bar ge 

ter mi nal, w harf, fl o ati n g d oc ks, pi peli n e fa cilit y, m o ori n g f a cil it ie s,

87

5 3 1

u nl oa di n g de rri c k s, a n d t he re vet me nt fa cilitie s of t he C orps of 

E n gi neers. I n 1970, all fa cilitie s at Gre e n ville ha n dle d a p pr o xi matel y 

1,7 00, 000 t o ns of water b or ne c o m merce. Maj or c o m mo dities i ncl u de d: 

gr ai n s, c o n str u cti o n m at erials, petr ole u m pr o d ucts, a n d w oo d a n d pa per 

pr o d u cts.

Ot her f a cil it ie s. P u blic ter mi nal a n d ware h o usi n g fa cilitie s are 

l ocate d o n t he J o nest o wn C ut off o n t he Yaz oo Ri ver at Yaz oo Cit y, Miss. 

S p oil fr o m t his c ut off (c o nstr ucte d i n 1957) was use d f or le vee c o n str u c ­

ti o n a n d t o ser ve as a n i n d u stri al fill are a. A ut h ori zati o n of t his 

i m pr o ve me nt, j u st s o ut h west of Yaz oo Cit y, was pr o vi de d b y t he Fl o o d 

C o ntr ol Act of 15 May 1928, as a me nded b y t he Acts of 1936, 1937, 1938, 

1941, 1944, a n d 1946. Pri vate fa cilitie s (l o cate d o n t he Yaz oo Ri ver) 

are l ocate d at Gree n w oo d, Belz o ni, Yaz oo Cit y, S at arti a, a n d near 

Retfcvood, Miss. Maj or c o m mo dities c urre ntl y ha n dle d b y p u blic a n d pri v at e 

fa cilitie s o n t he Yaz oo i ncl u de: c he micals, wo od a n d pa per pr o d ucts, 

gr ai n s, a n d c o n str u cti o n m at erials. A p pr o xi matel y 238,00 0 t o ns mo ve d 

t hr o u g h t hes e p orts i n 1970.

Ot her pri v at el y o wned a n d o per ate d p ort fa cilitie s wit hi n WRP A 4 

are l ocate d near Vic ks b ur g, Ma y ers ville, R ose dale, a n d De nnis La n di n g, 

Miss. Waterb or ne c o m merce s hi p pe d a n d recei v e d b y t hes e fa cilitie s 

is tra ns p ort e d o n t he Mi ssi ssi p pi Ri ver. Pri nci pal c o m mo dities ha n dle d 

i ncl u de: petr ole u m pr o d ucts, st ee l pr o d ucts, sa n d a n d gra vel, hea vy 

mac hi ner y a nd e q ui p me nt, a n d grai n.

Dee p Draft

T here are n o dee p- d raft p ort fa cilitie s i n WRP A 4.

Na vi gati o n Ai ds

T he U. S. C oast G uar d mai ntai ns all neces sar y ai ds t o na vi gati o n o n 

Fe d erall y c o n str u cte d pr oj ects, a n d mar ks hazar ds t o na vi gati o n.

Petr ole u m t o w o n t he Mis sissi p pi Ri ver.

89
5 3 2

A U T H O RI Z E D N A VI G A TI O N I MP R O V E ME N TS

S h all o w - D ra ft C h a n nels

A n a vi g ati o n p r o j e ct f o r t h e Yaz o o Ri v er was a ut h o riz e d i n 19 68 , 

u n d er a ut h o rit y o f t h e Ri v er a n d H ar b o r Act o f 19 68 ( H D 3 4 2 / 9 0 / 2). T he 

p r o j e ct p r o vi d es f o r c o n str u cti o n o f a l o c k a n d da m n e ar Vic k s b ur g, 

M is s., c h a n nel re ali g n m e nt a n d dre d gi n g fr o m Vic ks b u r g ( m il e 1.5 ) t o 

Gre e n w o o d, Mis s, ( m il e 1 6 4.9 ); a d dit i o n o f 6 0 0,0 0 0 a c r e - f e e t o f st o ra g e 

i n t h e e x is ti n g S a r d is R e se r v oir ; a n d r e vis i o n o f r e g ula ti o n sc h e d ule s 

f o r fl o o d c o ntr ol i n t h e e x i sti n g S a r dis , E ni d, a n d Gr e n a d a R e s e r v oir s. 

T his p r oje ct w ill p r o vi d e a n a vi g ati o n c h a n nel ( 9 - f o ot d e p t h a n d 15 0- 

f o ot w i d t h) i n a ll e x ce pt i n fr e q u e nt p eri o d s o f s e v e ra l we e ks d u ra ti o n. 

N a vi g ati o n o n t h e Yaz o o Ri v er w o ul d be a v ail a ble 97 p e r c e nt o f t h e ti m e

D ee p- D ra ft C h a n nels

T h er e a re n o a ut h o ri z e d d e e p - d r a ft c h a n ne l p r o j e cts i n W RP A 4.

L oc ks

Ba r g e

O ne l o c k a n d da m (r e f e r r e d t o i n p ar a g ra p h a b o v e) w o ul d be c o n ­

str u cte d i n c o n n ec ti o n wit h t h e o v e r all Yaz o o n a vi g ati o n p r o j e ct. T hi s 

l o c k a n d da m (8 4 f t b y 60 0 f t) w o ul d be l o c ate d at mil e 4 . 2, j u st 

u p st re a m fr o m t h e e x is ti n g Vic ks b u r g H ar b o r p r o j e c t. T he pr o p os e d l o c k 

w o ul d be o f s u f fi c i e n t si z e t o p er m it t h e u se a n d i n te rc h a n g e o f m o de m 

b ar g e t r a f fi c fr o m c o n n ec ti n g water w a y s a n d all o w t h e e x p ec te d a v er a g e 

t o w t o p a ss i n o n e l o c k a g e.

S hi p

T he re a re n o a ut h o ri z e d l o c k s f o r s h i p s i n WRP A 4.

P o rt s

C u rr e ntl y, t h e r e a r e n o a ut h o riz e d n a vi g ati o n i m pr o v e m e nts f o r 

p o rts i n WRP A 4.

90
5 3 3

E XI S TI N G C O WE R C E

Ge neral

Water b or ne c o m merce i n WRP A 4 c o ns ists of c o m m o dities m o vin g o n 

t he Yazo o a n d Mis sis si p pi Ri vers. T otal tr a ffic is re p o rte d f o r t he 

Yaz o o Ri v er w hile o nl y tr a f fic ori gi n ati n g i n or de sti ne d f o r t he 295 

mil es of Mis sis si p pi Ri ve r ba n k i n WRP A 4 o n t he Mis sis si p pi Ri v er 

is i ncl u d e d. All of t he t hr o u g h tr a f fic o n t he Mis sis si p pi Ri v er is 

re p o rte d i n WRP A 1. T he t o ta l t o n s m ove d i n 1970 were 5. 9 milli o n as 

s h o w n i n ta bl e 34.

Yaz o o Ri v er a n d Yaz o o Ri ve r P o rts a n d Har b ors

T otal t o n na g e re p o rte d o n t h e Yazo o Ri v er i n 1970 was 24 5,7 00.

T hi s re pr es e nts 4 perc e nt of t he t o ta l t o n s i n WRP A 4. A gric ult u ral 

gr ai ns ( p ri m aril y s o y be a ns) a n d a g ri c ult u ra l c he micals acc o u nte d f o r 

86 perc e nt of t he t o ta l Yaz o o t o n na g e. Ot h er c o m m o dities acc o u nti n g f o r 

re la ti v el y s mall per ce nta g es of t he t o ta l t o n na g e i ncl u d e w oo d a n d pa p er, 

CS S A, i n d u st ri al c he mic als, a n d c o al. Grai n s hi p m e nts t o Ne w Orlea ns, 

La., acc o u nte d f or 134,60 0 t o n s w hile m ove me nts of a g ri c ult u ra l c he micals 

t o t he G ulf C oast a n d Ne w Orlea ns, La., acc o u nte d f o r 60,40 0 t o ns. F o ur 

maj or p o rts o n t he Yaz o o Ri v er ha n dle d 97 perc e nt of t he t o n na g e. Yaz o o 

Cit y ha n dle d 49 per ce nt; Gree n wo o d, 22 perc e nt; Belz o ni, 16 perc e nt; a n d 

S ata rtia, 10 pe rc e nt. No f o rei g n tr a f fic was re p orte d o n t he Yazo o 

Ri ver.

Mis sis si p pi Ri v er P o rts a n d Har b ors

Si g ni fi ca nt c o m m o dit y gr o u ps f o r t he Mis sis si p pi Ri v er p o rt s i n 

t h is are a were petr ole u m, CS S A, gr ai n a n d w oo d a n d pa p er. Petr ole u m 

s hi p me nts fr o m Te xas p o rt s a n d Ne w Orlea ns, La., acc o u nte d f o r 42 perce nt 

of t he 5. 7 milli o n t o ta l WRP A 4 Mis sis si p pi Ri v er p ort s' a n d ha r b or s' 

t o n n a ge. CSS A s hi p me nts c o mp osed of sa n d, gr a v el, b u il d i n g m at erial a n d 

water wa y i m pr o ve me nt m at erials acc o u nte d f o r 23 pe rc e nt. Grai n m ove me nts 

c o nsisti n g of c or n, w heat, a n d s o y bea n s t o Ne w Orlea ns, La., a m o u nte d t o 

17 pe rc e nt. Wood a n d pa p er s hi p me nts, c o nsisti n g of l o g m o ve ments fr o m 

vari o us p oi nts al o n g t he Mis si ssi p pi Ri ver, a m o u nte d t o 10 pe rc e nt of 

t he t o ta l. T he re mai ni n g 8 pe rc e nt was distri b ute d a mo ng ir o n a n d ste el, 

i n d u st ri al c he mic als, a g ri c ult ura l c he mic als, ot he r a n d ge n eral car g o. 

F or ei g n tr a f fic re pr es e nts le ss t ha n 1 pe rc e nt of t he t o ta l tr a f fic .

T he t w o maj or Mis sis si p pi Ri v er p ort s, Vic ks b ur g a n d G re e n ville, 

ha n dle d 36 a n d 30 pe rc e nt, re s p ec ti ve l y, of t h e Mis sis si p pi Ri v er t o n na ge 

i n WRP A 4.

Vic ks b ur g mo ve d i n e xc ess of 2 milli o n t o n s i n 197 0. Petr ole u m 

pr o d ucts c o m prise d 32 perc e nt of t h e t o ta l; gr ai n, 24 perc e nt; w oo d a n d

91
5 3 4
pa pe r, 1 5 pe rc e nt; a n d C S S A, 1 2 pe rc e nt. T he re mai ni n g 1 7 pe rc e nt was 

istri b ute d a mo ng ir o n a n d ste el, a g ri c ult ural c he mi cal s, ot he r a n d 

ge neral car g o. Gre e n ville Har b or ha d 1 97 0 m o ve ments of 1. 7 milli o n t o n s 

Petr ole u m pr o d uct m o ve ments acc o u nte d f o r 3 9 pe rc e nt of t he t o ta l;

CS S A, 3 4 pe rc e nt; w oo d a n d pa pe r, 1 1 pe rc e nt; a n d grai n, 1 0 pe rc e nt.

T he re mai ni n g 6 perc e nt was c o m pose d of ir o n a n d ste el, i n d u st ri al 

c he mic als, a g ri c ult ura l c he mi cal s, a n d ge n eral car g o. Pri v at e ter mi nals 

ha n dle d t he re mai ni n g 3 4 pe rc e nt w hic h i ncl u d e d pri m aril y s hi p m e nts of 

petr ole u m, CS S A, a n d gr ai ns.

S u mnar y of WRP A 4 Water b or ne C o m merce

T ne t o ta l c o n merce f o r WRP A 4 i n 1 97 0 was 5. 9 milli o n t o ns. T he 

la r g es t m ove me nt i n v ol ve d pet r ol e u m, 4 0 pe rc e nt of t o ta l. F oll o wi n g 

petr ole u m ar e CS S A, 2 2 pe rc e nt; gr ai n, 1 9 pe rc e nt; a n d w oo d a n d pa p er,

1 0 pe rc e nt. T he re mai ni n g 9 pe rc e nt was c o mp osed of c o al, ir o n a n d 

ste el, i n d u st ri al c he mi cal s, a g ri c ult u ra l c he mi cal s, ot he r a n d ge n eral 

car g o. T he Mis sis si p pi Ri v er p o rt s a n d har b o rs m ove d 9 6 perc e nt of t he 

t o ta l. Vic ks b ur g m oved 3 4 pe rc e nt of t he t o ta l a n d G re e n ville, 2 9 

pe rc e nt, w hile pri v at e ter mi n als acc o u nte d f o r t he re mai n der.

Di re ct f orei g n tr a f fic i n WRP A 4 is a ne w i n n o v ati o n i n s hi p pi n g. 

T he mi ni -s hi p s a n d L AS H bar ge s were re s p o n si ble f o r t h is i ntr o d ucti o n. 

I n 1 9 7 0, Gr ee n vill e i m p ort e d 3 0 8 t o n s of f orei g n g o o ds via t he mi nis hi p s. Vic ks b ur g a n d Gre e n ville e x p ort e d 3, 8 4 1 a n d 3, 2 5 0 t o ns, 

re s p ec ti ve l y. Alt h o u g h ma ny of t he t o n s re p o rte d f o r t h is WRP A ar e 

e x p o rte d, t he y m ust be se nt t o Ne w Orl ea n s or s o me ot he r p o rt b y bar ge 

a n d t he n be tr a n sf er re d t o a n oce a n- g oi n g ve ss el. Wit h t h e mi ni- s hi ps 

a n d tr a n sf er a b le L AS H ba r g es, t h es e c o m m o dities nee d n ot be re h a n dle d 

u ntil t he y reac h t h eir ulti m at e d es ti n ati o n. Pr es e n tl y, t h e f orei g n 

s hi p m e nts c o nsist of wo od a n d pa per, a n d ir o n a n d ste el.

V ESS E L C O MP OSI TI O N

Ta bl e 3 5 s u m n arizes ve ss el m o ve ments wit hi n WRP A 4. D es cri pti o ns 

of t y pi ca l ve ss el s a n d t o w c o m p ositi o n ar e c o ntai ne d i n t h e Re gi o nal 

S u m mar y.

5 3 7

F UT URE NEE DS

Pr os p ecti v e C o nnerce

Ge neral

Water bor ne c o m merce i n t he selecte d c o m mo dit y cat e g o ries was 

pr ojecte d i n acc or da nce wit h i n di ces of o ut p ut de vel o pe d f or t he 

a p pr o priat e maj or i n d ustr y gr o u ps. T hese i n dices are s ho wn o n ta bl e 36. 

I n ge n eral, t he Pr ogra m A i n di ces re p res e nt O B E RS' f or eca st of ec o no mic 

gr o wt h f or t he i n di vi d ual WRP A's wit hi n t he Lc wer Mis sissi p pi Re gi o n. 

Pr ogra m B i n di ces were de vel o pe d t o re fl e ct a re gi o nal gr o wt h i n 

e mpl oy me nt e q ual t o t he nati o n al a vera ge, 1.4 pe rc e nt!/. A p plicati o n 

of t he se i n di ces t o t he base year t o n na ges s he wn pre vi o usl y o n ta bl e 34 

yi el d f ut ure le v els of c o m merce as s he wn i n a g gre gate o n ta ble 37.

T hese le v els are desi g nate d as t he gr oss nee ds of t he are a. N ote t h at 

t he pr ojecti o ns are e x pres se d i n t o n- miles f or t he water wa ys a n d i n s h o rt 

t o ns f or t he p o rts.

I nla n d Tr affic

Pr ojecte d Pr o gra m A t o n- miles f o r t he i nla n d tr a ff ic of t he Yaz oo 

Ri ver f or 1980, 2000, a n d 2020 are 67.2 milli o n, 538.6 milli o n, a n d 

860.9 milli o n, re s p ecti v el y, as s he wn o n ta bl e 37. Pr oj ecte d i nla n d 

t o n na ge f or p orts a n d har b ors of t he Yaz oo Ri ver are 0. 7 milli o n, 5.4 

milli o n, a n d 8.6 milli o n f or 1980, 2000, a n d 2020, res pe cti vel y. T he 

lar g e i ncreas e bet wee n 1980 a n d 2000 is d ue t o t he a ntici pate d 

c o m pleti o n of t he Yaz oo Ri ver na vi gati o n pr oj ect b y 1983. Si milar 

pr ojecte d t o ns f o r t he Mis sissi p pi Ri ver p orts a n d har b or s are 8.8 

milli o n, 17.1 milli o n, a n d 28.6 milli o n f or 1980, 2000, a n d 2020, 

res pe cti vel y.

It is pr ojecte d t h at t he maj orit y of t o ns o n t he Mi ssi ssi p pi Ri ver 

will g o t hr o u g h t he p orts of Vic ks b ur g a n d Gre e n ville. On t he Yaz oo 

Ri ver, t he maj orit y of t o ns will g o t hr o u g h Yaz oo Cit y, Gree n w oo d, a n d 

Belz o ni. T he pri v at e ter mi nals al o n g t he Mi ssis si p pi will c o nti n ue t o 

mai ntai n t h eir relati ve s hare of t he t o ta l t o n s. Pri vate ter mi nal s are 

pri v at el y c wned a n d are n ot o pen t o t he ge neral ptfclic.

F orei g n Tr af fic

Pr o gra m A pr ojecte d f orei g n tr a ffic f or t he p orts a n d har b ors of 

t he Mi ssis si p pi Ri ver are 11, 20 0, 22,80 0, a n d 37,200 t o ns f or 1980,

2000, a n d 2020, res pe cti vel y. T hese pr ojecti o ns were base d o n t he 

t o n na ge t he fir st yea r t he mi ni-s hi p was i ntr o d uce d t o t he are a a n d 

pri o r t o t he i ntr o d ucti o n of t he L AS H bar ges. B ot h of t hese i n n o v ati o ns 

will ha ve a tre me nd o us i m pact o n t he di re ct f orei g n s hi p me nts t o a n d 

fr o m WRP A 4. Si nce q uite a lar g e a mo unt of t he e x p o rts fr o m t his area

T7-------------------------------------------- ;-------------------------------------------------

— F urt her disc ussi o n of t hes e i n dice s a n d t h eir deri vati o ns is 

c o ntai ne d i n A p pe n di x B, " Ec o n o mics."

95
5 3 8

Ta ble 3 6 - Ec o n o mic F ore c a st, WRP A 4 

I n de x o f P r o d u cti vit y b y Maj or I n d u st ri e s

C o m mo dit y

(I n d u st r y Gr o u p) Pr o gra m 1 9 67 1 9 68 1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( S o y bea n s) 1 0 0 1 6 2 2 0 0 2 3 4

1 6 2 2 2 0 2 51

C oal ( N ati o n al C oal

Gr o wt h Rate) 1 0 0 1 0 4 1 0 9 1 4 3 1 9 9 3 2 3

1 5 7 2 3 0 3 8 1

Petr ole u m ( Mi ni n g a n d

R efi ni n g, A vera ge) 1 0 0 9 8 1 1 0 1 7 3 3 3 9 6 5 4

1 9 0 3 9 2 7 7 2

CSS A ( Q uar r yi n g) 1 0 0 1 0 4 1 1 0 1 3 9 2 3 3 4 0 8

1 52 2 6 9 4 81

S ul p h ur ( Hel d C o nsta n t) 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0

1 0 0 1 0 0 1 0 0

Ir o n a n d Ste el

( N ati o n al I 5 S

Gr o wt h Rat e) 1 0 0 1 0 3 1 0 9 1 41 2 18 3 4 0

1 5 5 2 5 2 4 0 1

I n d u stria l C he mic als

( C he mi cal a n d

Allie d Pr o d ucts) 1 0 0 1 0 7 1 2 1 1 9 2 4 6 9 1, 1 2 0

2 11 5 42 1, 3 2 1

A g ri c ult ura l C h e mi cals

( A gric ult u re ) 1 0 0 1 37 1 5 8 1 8 0

1 37 1 6 9 1 9 3

Al u mi n u m ( Pri ma r y Metals ) A 1 0 0 1 4 7 1 5 6 2 04 3 6 1 6 3 7

2 24 4 1 8 7 5 1

Wo od a n d Pa p er ( F or estr y ) A 1 0 0 8 6 1 3 8 1 4 8

1 0 9 1 87 2 6 8

Ot her ( C he mi cal a n d

Allie d Pr o d ucts) 1 0 0 1 0 7 1 2 1 9 2 4 6 9 1, 1 2 0

2 11 5 4 2 1, 3 2 1

Ge ner al Car g o ( Ot her

Ma n ufact uri n g ) 1 0 0 1 0 7 1 2 2 1 9 9 5 2 9 1, 2 9 4

2 1 9 6 1 2 1, 5 2 6

9 6

5 4 0

are de sti n e d f o r f orei g n c o u ntri es vi a Ne w Orlea ns, it is q u ite p o ssi ble 

t he se will sta rt g oi n g dir e ctl y t o f orei g n p o rt s vi a mi ni- s hi ps a n d 

L AS H ba r g es.

T otal Pr oj ecte d C o m merce

T otal pr oj ecte d Pr o gra m A c o n merce f o r WRP A 4 p o rt s a n d har b or s is 

9. 5 milli o n, 2 2. 6 milli o n, a n d 3 7. 3 milli o n t o n s f o r 1 9 8 0, 2 0 0 0, a n d 

2 0 2 0, re s p ecti vel y. T hese t o ta l t o n s re pr es e nt a n a n n ual gr o wt h ra te of 

3. 7 5 pe rc e nt bet wee n 1 9 7 0- 2 0 2 0.

Pr o gra m B pr oj ecti o ns were deri ve d as a m ulti ple of Pr o gra m A t o ns. 

T he fa ct or s a p plie d ar e 9. 6 pe rc e nt, 1 5. 7 pe rc e nt, a n d 1 7. 9 perce nt 

gre at er t ha n Pr o gra m A pr oj ecti o ns i n 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti v el y

Net Needs

Ge neral

Na vi gati o n nee ds data are s ho wn i n ta ble 3 8 f o r Pr o gra ms A a n d B, 

re s p ecti v el y. T he ta bl e i ncl u d es t he gr o ss nee ds f o r eac h pr oj ecte d 

ti me pe ri o d, t he nee ds t o be s ati sfi e d b y pr oje ct s ass u me d t o be 

c o m plete d f o r eac h pr oj ecte d ti me pe ri o d, a n d t he net nee ds w hic h are 

t he nee ds t h at w ill re q uire s o me t y pe of na vi gati o n c o nstr u cti o n w ork 

t o s ati sf y. T he vari o us t y pe na vi gati o n i m pr o ve me nts are al s o s h o wn. 

S hall o w- a n d Dee p- Draft C ha n nels

T here are n o na vi gati o n nee ds pr es e n tl y esti m ate d i n WRP A 4 t h at 

w o uld re q uir e s hall o w - or de e p - d raft c ha n nel t y p e c o nstr u cti o n w or k. 

P o rts a n d Har b ors

A nee d f o r p o rt a n d har b or de vel o p me nt e xists i n WRP A 4. Sla c kwater i nl a n d har b o rs l o cate d off ri v er mai nste ms are nee de d t o pr o vi d e 

are as f o r l oa di n g a n d u nl o a di n g f a cil it i e s a n d al s o fl ee ti n g ar ea s. T he 

s p oil fr o m ha r b or c o nstr u cti o n will li k el y be use d f o r i n d u st ri al f ill. 

T he net nee ds ar e s h o w n i n ta bl e 3 8 f o r Pr o gra ms A a n d B, a n d were 

ass u me d t o be e q ual t o t he t o ta l pr oj ecte d t o n na ge le ss t he t o n na ge 

pr es e ntl y ha n dle d b y e x isti n g f a cil it i e s. No atte m pt was ma de t o 

deter mi ne ca pa cit y of t h e e x isti n g f a cil it i e s. Net nee ds f o r Pr o gra m A 

f o r 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, are 5, 0 8 3, 7 0 0; 1 6, 6 3 2, 7 0 0; a n d 3 1, 3 7 0, 3 0 0 t o n s 

re s p ecti v el y.

9 8


5 4 3

FI G U R E 5
5 4 4
5 4 5

W R P A 5

GE NE R AL D ES C RI PTI O N

T he O u ac hita Water Res o urce Pla n ni n g Area c o nsists of all or p art 

of 3 4 c o u ntie s a n d pa ris he s i n s o ut h- ce nt ral Ar ka nsas a n d n ort h- ce ntr al 

L o uisia na.

T he O ua c hit a Ri v er Basi n e xte n ds ge ne rall y fr o m t he Ar ka nsas Ri v er 

Drai na ge Basi n i n t he n o rt h se cti o n, s o ut he ast war d t o t he west ba n k 

Mississi p pi Ri v er le v ees ne ar t he m o ut h of t he Red Ri v er. It is b o u n de d 

o n t h e west a n d s o ut h we st b y t he Red Ri v er Basi n a n d b o u n de d o n t he ea st 

b y t h e B oe uf- Te n sas Basi n. T he O ua c hit a Ri v er ori gi n at es i n t h e O ua c hit a 

M o u ntai ns ne ar Mena, Ar k. ( P ol k C o u nt y), fle ws east wa r d a b o ut 1 60 miles 

t hr o u g h r u g ge d te rr ai n t o t he vic i n it y of Mal ver n, Ar k., t he n fle w s 

s o ut h west w ar d f o r 2 4 mil es a n d s o ut he ast war d f o r 7 0 mil es t hr o u g h hil l y 

u pla n ds t o Ca mde n, Ar k. ( mile 3 5 1), fl o ws s o ut he ast war d 1 32 mil es t hr o u g h 

wi de b ott o ms i n hil l y te rr ai n , t he n s o ut h w ar d f o r 2 24 mil es t hr o u g h t he 

all u via l vall e y of t he Mis sis si p pi Ri ver, a n d e nte rs Red Ri v er 3 6 mil es 

a b o ve it s m o ut h.

T he O ua c hit a Ri v er is j oi n e d at i nte r v al s t hr o u g h o ut it s e nti re 

le n gt h b y n u mer ous tri b uta r y str ea m s. Pri nci p al tri b uta r y strea ms 

i ncl u d e: Sali n e Ri ver, Ba yo u Bart h ol o me w, L it tl e Mis s o uri Ri v er, Ca dd o 

Ri v er, L it tl e Ri ver, Ba yo u D' Ar b o n ne, Ba y ou De L' O utr e, B oe uf Ri ver, 

Te nsas Ri v er, S mac k o ver Cree k, a n d Moro Cree k.

T he cli mate of t h e O uac hita WRP A is mil d, wit h a n a ver a ge a n n ual 

te m per at ure of 6 5° F. T he fr ee ze -f re e seas o n a ver a ges a b o ut 2 30 da y s.

E xi sti n g Ec o no mic De vel o p me nt

I n 1 9 6 8, t o ta l e m plo y me nt was esti m at e d at 2 7 3, 0 0 0 pers o ns, a n 

i n cr ea se of 1 2. 4 pe rc e nt o ve r t he n u nt oer re p o rte d i n 1 9 5 9. E mpl oy me nt 

i n ma n ufa ct uri n g a n d ot he r i n d u st ri es (e x cl u di n g a g ri c ult u ra l, f o re st r y 

a n d fi s h er ie s a n d mi ni n g) acc o u nts f o r t he m aj o rit y of t he n u n b er of 

pers o ns e m pl o ye d. Ma n u fact uri n g a n d ot he r i n d u st ri es al s o c o nt ri b ute 

9 0 perc e nt of t he t o ta l ea mi n g s ( $ 1. 4 billi o n i n 1 9 68) re p orte d f o r all 

i n d u st ri es. Ea mi n g s s h o w n as a pe rc e nt of t o ta l b y maj or i n d u str y 

gr o u ps i ncl u d e: a g ri c ult ure, f o re st r y a n d fi s h eri e s, a n d mi ni n g, 1 0 

pe rc e nt; ma n uf act uri n g, 2 5 pe rc e nt; a n d ot he r i n d u st ri e s, 6 5 pe rc e nt. 

Pri n ci pal ma n ufact uri n g i n d u st ri es i n WRP A 5 i n cl u de: pa p er a n d allie d 

pr o d u cts, c he micals a n d allie d pr o d ucts, petr ole u m re fi ni n g, f o o d a n d 

ki n dre d pr o d ucts, a n d pri m ar y metal s.

1 0 3
5 4 6

A g ricult ural la n d, e xte nsi v e w o o dla n ds, mi neral de p osits, 

h y dr o ele ctric p o wer, a n d wil dlif e are t he pri nci pal nat ur al 

res o ur ces of t he are a. F ertile la n ds are t he basic res o urc e a n d t his 

res o ur ce has bee n res p o n si bl e f or a str o n g a g ric ult ural orie nte d eco no my. 

F ore str y res o urces are res p o nsi ble f or muc h of t he ar ea's i n d u st ri aliz ati o n. I n s o me se ct or s, f ore str y is t he pri nci pal i n d ustr y. Mi neral 

res o urc es ( petr ole u m, sa n d a n d gra v el, nat ur al gas, a n d ba u xite ), w hic h 

ha ve bee n i m p orta nt t o t he ec on o m y, c o ul d pr o vi de f ut ure de vel o p me nt 

p ote ntials. Lan ds use d f or a g ric ult ural p ur p oses acc o u nt f or 9 5 perce nt 

of t he t otal la n d a n d wat er res o urce s i n WRP A 5. A gric ult ural use c o nsi st s of: la n d i n far ms, 29 perce nt of t o ta l; la n ds i n f o re st s, 6 7 pe rce nt; a n d ot h er n o nfar m use, 4 perc e nt. F o ur perce nt of t he t otal la n d 

a n d wat er res o urc es is i n n o n-a gri c ult ur al use. N o n -a gric ult ural use 

c o nsi sts of Fe deral la n d s, ur ba n a n d b uilt - u p are as, a n d s mall water 

are as. Lar ge water areas acc o u nt f or t he re mai ni n g 1 perc e nt of t he 

t o ta l area.

Tra n s p ortati o n F ac ilitie s ( E xcl u di n g Water ways)

Railr oa ds

F o ur maj or railr oa d li n es, t he Miss o uri Pa cific, St. L o uis a n d 

S o ut h wester n; C hica g o, Rock Isla n d a n d Pa cific; a n d Illi n ois Ce ntr al 

Rail wa y ser ve t he O uac hita Water Res ource Pla n ni n g Area. Dire ct r o uti n gs 

are pr o vi de d t o p oi nts i n t he s o ut h west U nite d State s; t o Ne w Orle a ns,

La.; p oi nt s t o t he n ort h a n d ea st; a n d t o de sti nati o ns i n t he s o ut heaster n U nite d St at es. C o n necti o ns wit h ot h er rail wa y s pr o vi de access 

t o a ny area of t he Nati o n.

Hig h ways

T wo i nte rstate hi g h wa ys cr oss WRP A 5--I- 3 0 i n t he u p per n orti o n a nd 

1- 2 0 i n t he s o ut her n se cti o n. T hese hi g h wa ys pr o vi de access t o t he west 

a n d s o ut h west, t o t he n o rt h ea st, a n d easter n U nite d St at es. Ot her m ode m 

Fe deral a nd State hi g h wa ys tra ve rs e t he area fr o m all dir ecti o ns pr o vi di n g 

tra ns p o rt t o a dj oi ni n g st ate s. Major U nite d States R o utes 7 0, 6 7, 7 9, 

a n d 8 2 cr oss t he u p per a n d mi d dle secti o n a n d U nite d St ate s R o utes 8 0, 

a n d 84 cr oss t he s o ut he r n se cti o n. Nu mero us tr uc k li n es pr o vi de c o m mon, 

c o ntra ct, a n d s pe cializ e d tra ns p o rt.

Ai rli ne s

Sc he d ule d ai rli n e ser vic e is a vaila ble i n H ot S pri n gs, Pi ne Bl u ff, 

Ca mden, a nd El D orad o, Ar k.; Ale xa n dria a n d M onr oe, La. F o ur maj or 

ai rli n es ( Delta, Te xas I nter n ati o nal, S o ut her n, a n d Ce ntral) pr o vi de 

tra ns p o rtati o n f or t he re gi o n wit h c o n necti o ns t o all area s of t he 

U nite d St ate s. Aircar g o ser vic e is als o f ur nis he d b y t he se ai rli n es. 

C harter air ser vic e is a v ail a ble fr o m p ri v ate fir m s. Air p orts are 

m ode m a n d pr o vi de u p-t o- dat e fli g ht ser vic e a n d tr a ff ic c o ntr ol.

104
5 4 7

i p eli n e s

N u mer o us n at u r al g a s, cr u d e o i l, a n d r e fi n e d p r o d u cts p i p eli n e s 

tr a v e r s e W RP A 5 fr o m t h e s o ut h w es t t o t h e n o rt h e a st a n d fr o m s o ut h t o 

n o rt h . T he m aj o ri t y o f t h e s e li n e s o ri g i n at e i n e a st T e x as a n d t h e 

c o a sta l L o uisia n a a r e a s. S o me li n e s o ri g i n at e i n t h e El D or a d o o il a n d 

ga s p r o d u cti o n a re a.

E XI S TI N G N A VI G A TI O N I MP R O V E ME N TS

G e n er al

T a ble 4 0 p r e s e nts a s u m mar y o f e x is ti n g n a vi g ati o n i m pr o v e m e nts. 

D eta il e d i n f o r m ati o n ca n be f o u n d i n A p pe n di x D, I n v e nt o r y o f F a c iliti e s

S h all o w - D ra ft C h a n nels

T he o ri g i n al n a vi g ati o n p r o j e ct o n t h e O u a c h it a- Bla c k R i v ers, w hic h 

pr o vi d e d f o r cle a ri n g a n d s n a g gi n g t h e c h a n nel fr o m A r k a d el p hia, A r k., 

t o t h e m o ut h, was a ut h o ri z e d u n d er p r o vis i o n s o f t h e Ri v er a n d H ar b o r 

Act o f 3 Marc h 1 8 7 1.

I n a d diti o n t o i m pr o ve me nts o n t h e O u a c h it a- Bla c k R i v e rs , t h e 

f o ll o w i n g tri b u t a r y st re a m s i n W RP A 5 ha ve be e n i m pr o ve d i n p a st y e ars 

f o r n a vi g ati o n b y cle a ri n g a n d s n a g gi n g (s ee ta b l e 3 9). N o c o m merce 

i s p r e s e n tl y b ei n g m o ve d o n t h e s e tri b u t a r y st re a m s a n d t h e s e p r o je cts 

a re n o w c o n si d ere d i n a cti v e.

T a b le 3 9 - N a vi g ati o n P r oje cts o n T ri b uta r y Str e a m s, W RP A 5

Date o f l a s t Hea d o f N a vi g ati o n

St re a m i m p r o v e m e nt L o ca ti o n Mil es a b o v e m o ut h

Ba y o u Ba rt h ol o me w,

La. a n d Ar k. 1 8 9 7 B a xte r, Ar k. 1 8 4. 0

S ali n e R i v er, Ar k. 1 9 1 1 T u rtl e Ba r 1 1 7. 0

L ittl e M is s o uri

R i v er, Ar k. 1 8 7 3 Ra wles La n di n g 2 3. 0

Ba y o us D' A r b o n n e a n d 

C o m e y, La. 1 8 9 6 C o b b La n di n g 5 7. 0

1 0 5
5 4 8

T he e x isti n g na vi gati o n pr o je ct, o n t he O ua c hit a- Bl ac k Ri vers, wit h 

6- 1/ 2- f o ot mi ni mu m c ha n nel de pt h i n c o nj u n cti o n wit h si x l oc ks a n d da ms, 

was a ut h o riz e d u n der pr o visi o n s of t he Ri v er a n d Har b or Act of 13 J u ne 

1902. A de tail e d st u d y, c o m plete d i n 190 0, was t he ba si s f o r dete r mi ni n g 

t h e f e a si b ilit y a n d a ut h oriz ati o n of t he na vi gati o n pr oj ect o n t he 

O ua c hit a- Blac k Ri v er fr o m it s m o ut h t o Ca m de n, Ar k., mil e 351. T he 

e x isti n g pr oj ect was c o m plete d i n 1926 e xc e pt f o r c o nstr u cti o n of t he 

Felse nt hal Ca nal. T his na vi gati o n pr oj ect ( w hi c h, w he n c o nstr u cte d, ha d 

o ne of t he le as t c o st s ner mil e f o r ca naliz e d pr oj ec ts i n t he U nite d 

State s) pr o vi de d i n re ce nt ye ars o nl y li m ite d use of t h e water wa y d ue t o 

o ut m ode d f a c iliti e s, li m ite d c ha n n el de vel o p me nt, et c., w hic h pre cl u de d 

eff ic ie nt m ove me nt of t o n na ge a n d retar d e d ec o n o mic de vel o p me nt of t he 

ar ea.

T he Ri v er a n d Har b or Act of 17 Ma y 1950 ( S D /11 7/8 1/1) as m o difie d 

b y t he Act of 14 J ul y 1960 ( S D /11 2/8 6/2) pr o vi d e d f o r t he m o dificati o n 

of t he e x isti n g 6- 1/ 2- f o ot na vi gati o n pr oj ect t o a 9- f o ot pr o je ct. T he 

9 -f o ot pr oj ect (9 -f o ot mini mu m de pt h a n d 10 0- f o ot b ott o m- wi dt h c ha n nel 

wit h f o ur l oc k s a n d da ms) w ill pr o vi de f o r yea r-r o u n d na vi gati o n o n t he 

O ua c hit a- Bl ac k fr o m t he m o ut h t o mile 351 at Ca m de n, Ar k. T his i m pr o ve ­

me nt will i ncl u d e c ha n nel re cti fi c ati o n, c u t o ff s, a n d dre d gi n g of t he 

c ha n nel i n Re d Ri ve r fr o m Ol d Ri v er t o t he m o ut h of t he Blac k Ri v er at 

mil e 35.5, t he nce fr o m t he m o ut h of Blac k Ri v er t o Ca mde n, Ar k., o n t he 

O ua c hit a Ri v er. T he pr oj ect al s o pr o vi des f o r m o difi cati o ns of e x isti n g 

st r u ct ure s as re q uire d a n d t h e rele as e of a d diti o na l fl o ws d uri n g t he 

le w- wate r seas o n fr o m Narr o w, Bla kel y, a n d De Gray m ulti ple- p u r p o se 

re se r v oir s.

T he J o n es vill e L oc k a n d Da m, w hic h is t h e fir st of t he f o u r ne w 

l oc ks i n t h e O ua c hit a- Blac k 9- f o ot na vi g ati o n pr o je ct, was o pe ne d t o 

tr a f fic o n 2 Marc h 1972. T his st r u ct ure ne w pr o vi d es a 9- f o ot sla c k - 

water c ha n nel f o r 107 mil es u p t he O uac hita Ri ver, 69 mil es u p t he 

Te nsas Ri ver, 13 mil es u p L ittl e Ri ve r a n d 32 mil es u p B oe uf Ri v er. 

T he C ol u m bia L ock a n d Da m ( o pe ne d t o c o m mercial tr a f fic o n 4 Ma y 1972) 

pr o vi d es f o r 9- f o ot c ha n n el de pt hs o n t he O ua c hit a t o t he vic i n it y of 

t h e Ar k a ns as- L o uisia na sta te li n e.

T here ar e n o k no wn na vi gati o n i m pr o ve me nts i n t he O uac hita WRP A 

c o nstr u cte d b y l o cal i n te re st s e xc e pt t he ter mi nal a n d tr a n sf er 

f a cil it i e s dis c u sse d i n s u bs e q ue nt par a gr a p h s.

Dee p- Draft C ha n nels

T here are n o e x isti n g de e p - draft c ha n nels wit hi n WRP A 5.

106
Ta e 4 0 - E xisti n g N a vi g ati o n I m p r o v e m e nt s, WRP A 5 Water wa ys De pt h fe Wi dt h Le n gt h mile s Re mar ks fe et O ua c hita - Bla c k Ri v er s 6. 5 1 0 0 3 5 1 9-f o ot c h a n nel c u rr e ntl y u n de r c o n st r u cti o n P ort s Pi ne Bl u ff 4 3 5. 0 De pt h o v er S ill Wi dt h Le n gt h O pe n t o L oc ks fe et fe et fe et N a vi g ati o n Re mar ks # 2 2 1. 3 5 5 2 6 8 1 9 1 2- 1 9 2 4 Re pla ce d b y J o n e s ville L oc k # 3 2 1. 3 5 5 2 6 8 1 9 1 2- 1 9 2 4 Re pla ce d b y C ol u m bia L oc k # 4 1 5. 4 5 5 2 6 8 1 9 1 2- 1 9 2 4 Re pla ce d b y C ol u m bia L oc k # 5 1 3. 5 5 5 2 6 8 1 9 1 2- 1 9 2 4 Re pla ce d b y C ol u m bia L oc k # 6 1 3. 8 5 5 2 6 8 1 9 1 2- 1 9 2 4 T o be re pla ce d b y F els e nt h al L oc k C o n st r u cti o n sc he d ule d t o be gi n 1 9 7 3 # 8 1 6. 0 5 5 2 6 8 1 9 1 2- 1 9 2 4 T o be re pla ce d b y C ali o n L oc k C o n st r u cti o n d at e n o t sc he d ule d C ol u m bia 1 8. 0 8 4 6 0 0 1 9 7 2 J o n e s ville 1 8. 0 8 4 6 0 0 1 9 7 2
5 5 0

L oc ks

Bar ge

s n ote d a b o ve, si x l oc k s a n d da ms ( N os. 2, 3, 4, 5, 6, a n d 8) 

were c o nstr u cte d o n t he O ua c hita - Blac k Ri vers as a n i nte gr al pa rt of 

t h e 6- 1/ 2- f o ot na vi gati o n p r o je ct, a ut h o riz e d u n der pr o visi o n s of t he 

Ri ver a n d Har b or Act of 1 3 J u ne 1 9 0 2. T hese l oc k s were o pe ne d t o na vi ­

gati o n bet wee n 1 91 2 a n d 1 9 2 4. T he l oc ks, w hic h meas ure 5 5 ft b y 2 68 ft, 

were of m o vable st e el a n d w oo d wic k ets o n a c o ncret e bas e w hic h pe rmitte d t he l o weri n g of t h e da ms d uri n g hi g h- w ate r seas o ns t o all o w f o r 

o pe n ri v er na vi gati o n.

T he f o ur ne w l oc ks a n d da ms, w hic h meas ure 8 4 ft b y 6 00 ft, will 

re pla ce e x isti n g l oc k s a n d da ms N os. 2, 3, 4, 5, 6, a n d 8. T hese f o ur 

l oc ki n g f a cil it i e s, a ut h orize d u n der t he Ri ver a n d Har b or Acts of 1 95 0 

a n d 1 9 6 0, are a n i nte gr al p art of t he 9- f o ot na vi gati o n pr o je ct. T hese 

st r u ct ur es will be l oc ate d o n t he O uac hita- Blac k Ri ve rs ne ar J o n es ville, 

La., C ol u m bia, La., Cali o n, Ar k., a n d F el se nt hal, Ar k. T hey ar e of 

s u ffic ie nt si ze t o per mit t he use a n d i nt erc ha n ge of m o de m bar g e tr a f ­

fi c fr o m c o n necti n g water wa ys a n d per mit t he a vera ge t o w t o pass i n o ne 

l oc k a ge. T h us, w he n o p erate d wit h t he 9- f o ot c ha n n el i m pr o ve me nts a n d 

fl o w rele as es fr o m u pstrea m re se r v oir s, t h es e ne w l oc k s a n d da ms will 

pr o vi de f o r ma xi mu m ef fi ci e n c y of car g o m ove me nt b y water. C o n str u cti o n of t he l oc ks a n d da ms at J o ne s ville a n d C ol u m bia, La., is c o m plete, 

t h u s pr o vi di n g a 9- f o ot sla c k - w ate r c ha n n el t o t he Ar k a ns as- L o uisia na 

li n e. Felse nt h al L oc k a n d Da m is sc he d ule d f o r c o m pleti o n i n 1 9 7 6. No 

c o m pleti o n date has bee n se t f o r t he Cali o n L oc k a n d Da m.

I n c o n necti o n wit h t he e x isti n g O ua c hit a- Blac k na vi gati o n s yste m, 

all bar g e tr a ffic mist pass t hr o u g h a n ot he r l oc k l o cate d i n Ol d Ri ver 

( bet wee n Mississi p pi Ri ve r a n d j u ncti o n of t he Red a n d Atc haf ala y a 

Ri ve rs) t o gai n acc ess t o t he O ua c hita - Blac k water wa y. T his Ol d Ri ver 

l oc k ( w hich meas ures 7 5 ft b y 1, 2 0 0 ft ) is a pa rt of a n o v er all pr oj ect 

a ut h o riz e d b y P u blic La w N o. 7 8 0, 8 3r d C o n gress, 3 Se pte m ber 1 9 5 4, a n d 

was a m o dificati o n of t he Fl o o d C o ntr ol Act of 1 5 Ma y 1 9 2 8. T he Ol d 

Ri ve r L oc k a n d Da m (i n WRP A 9) was a pa rt of se ve ral i m pr o ve me nts o n 

a n d near Ol d Ri ver w hic h are t o pr o vi de f o r c o nt r ol of fl o ws fr o m t he 

Mississi p pi Ri ver t o t he At c ha fala ya Ri ver a n d Basi ns. T he l oc k was 

o pe ne d t o na vi gati o n o n 1 5 Marc h 1 9 6 3.

T here are n o l oc ki n g f a cil it i e s o n ot he r strea ms of WRP A 5.

S hi p

T here ar e n o l oc ki n g f a cil it i e s f or s hi ps i n WRP A 5.

1 08
5 5 1

P orts

S hall o w Draft

I n 1 9 7 0, t h e t o t al w at er b o r n e t o n na g e ha n dle d b y a ll p ri v ate a n d 

p u blic p ort f a c iliti e s wit hi n WRP A S a m o u nte d t o a p pr o xi m at el y 9 5 1, 8 0 0 

t o n s. Wat er b or ne c o m ner ce m o ve me nts o n t h e O ua c hita - Blac k water wa y 

s yste m acc o u nte d f o r t h e maj or p o rti o n ( 6 4 pe rc e n t) o f a ll t o n na ge s 

re p ort e d f o r t h is WRP A. T he re m ai ni n g 3 6 pe rc e n t ( 3 4 6, 3 0 0 t o ns ) was 

ha n dle d t hr o u g h t h e p u bli c a n d p ri v ate f a c iliti e s at Pi ne Bl u ff P o rt, 

J e ff e rs o n C o u nt y, Ar k. Maj o r c o m m o dities c u rr e ntl y bei n g s hi p pe d via 

w ate r b or ne c o m nerce i n WRP A 5 i n cl u d e: grai n s a n d ot h e r a g ri c ult u ra l 

pr o d u ct s; st o n e, sa n d, a n d g ra v el; ir o n a n d st e el; c o al; petr ole u m 

pr o d uc ts; c h e m ic als; a n d l u m ber a n d w o o d pr o d u ct s.

Pi n e Bl u ff H ar b o r. Pi ne Bl u ff is t h e fi r s t p ort cit y re ac he d b y 

n a v i g ati o n o n t h e Ar k a ns as Ri v er. T he f a c ilit y is l o c ate d o n a n 

a ba n d o ne d ri v e r c h a n nel a p pr o xi m at el y 7 2 ri v e r mile s u p str ea m fr o m t h e 

c o nfl u e n ce of t h e Ar k a nsa s a n d M is si ssi p pi Ri v er s. T he 3 7 2- ac re p ort 

s it e , w hic h is c o m pri se d o f t h e p u blic te r m i n al ar ea a n d t h e ha r b or 

i n d u str ia l d i s tri c t, was c o n st r u cte d b y l o c al i n te r e sts i n 1 9 6 9. T he 

are a was h y d ra uli c all y fill e d t o a fl o o d -f re e ele v ati o n. Dre d gi n g 

cre ate d a c ha n n el de pt h o f a b o ut 4 3 fe et ( 5 mile s o f t h e h ar b o r c h a n nel 

is n a vi g a ble ). P u blic te r m i n al a n d tr a n s f e r f a c iliti e s i n cl u d e: 

c o m plet e o n- a n d o ff -l o a di n g e q ui p m e nt f o r b ar ge, r a il, a n d tr u c k s; 

w h arf a n d m o ori n g f a c iliti e s ; a n d st o ra g e f o r va ri o u s pr o d u ct s. T he 

te r m i n al is a dja ce nt t o ot h e r tr a n s p o rt ati o n f a c iliti e s a n d t h e cit y o f 

Pi ne Bl u ff. P ri v ate f a c iliti e s ar e als o c o n st r u ct e d o n t h e ha r b or 

i n d u str ia l ar ea.

Ot he r p o rt f a c iliti e s. P ri v ate l y o w ne d p ort f a c iliti e s o n t h e 

O ua c hita - Blac k Ri vers ar e l o c ate d at Ca m den, C ali o n, C ha m pa g n olle, a n d 

M or o Ba y, A r k.; Ste rli n gt o n, M o nr oe, R il la , Ri v ert o n, C ol u m bia, J o n es ­

v ill e , a n d Ac me, La.

Dee p Dra ft

T h ere ar e n o d e e p - d ra ft p o rt f a c iliti e s i n WRP A 5.

N a vi g ati o n Ai ds

T he U. S. C o ast G uar d m ai nt ai ns a ll ne ce ss ar y ai d s t o n a v i g ati o n o n 

F e d er all y c o n st r u ct e d p r oje cts , a n d mar ks ha za r d s t o n a vi g ati o n.

A U T H O RI ZE D N A VI G A TI O N I NF R O V BE NT S

T h ere ar e n o a ut h ori ze d n a v i g ati o n i n p r o v e m e nt s i n WRP A 5 o n w hic h 

c o n st r u cti o n has n ot bee n i n iti a t e d. T he a u t h ori ze d 9 -f o ot n a v i g ati o n 

p r o je ct o n t h e O u ac hita- Blac k Ri ve rs is u n der c o n st r u cti o n wit h t w o o f 

t h e f o ur l o c k s a n d da ms n o w c o m pl ete.

1 0 9
5 5 2

I STI N G C O M MERCE

Ge neral

A s u m mary of e xisti n g c o n merce b y c o mn o dity gr o u ps is prese nte d i n 

ta bl e 41 f or WRP A 5. T otal water b or ne c o n merce a mo u nte d t o 951,8 00 t o n s. 

Maj or p orts o n t he O uac hita- Blac k Ri vers ha n dle d 562,20 0 t o ns a n d t he 

Pi ne Bl uff P ort o n t he Ar ka nsas Ri ver ha n dle d 307,4 00 t o n s. S mall 

pri v at e ter mi nals ha n dle d t he re mai ni n g 82,200 t o n s.

O uac hita- Blac k Ri vers

Major c o m n o dities m ovi ng o n t he O uac hita- Blac k Ri vers were i n d u strial 

c he micals, 39 perce nt; petr ole u m, 24 perce nt; wo od a n d pa per, 17 perce nt; 

a n d grai n, 12 per ce nt. T he re mai ni n g 8 perce nt was c o m posed of CSS A 

a n d ge neral car g o.

T he maj or p orts o n t he O uac hita- Blac k c o ntri b ute d 93 perc e nt of t he 

t o ns re p orte d i n 1970. Ste rli n gt o n ha d t he lar g est c o ntri b uti o n wit h 

36 perce nt of t he ri ve r t o ns eit h er e nt eri n g or lea vi n g t his p ort.

Mo nr oe ha d 23 perce nt; Cali o n, 17 perce nt ; J o ne s vill e, 12 perce nt; a nd 

C ol u m bia, 5 per ce nt. St erli n gt o n ha n dle d pri ma ril y i n d u stri al c he micals; 

M onr oe, petr ole u m; Cali o n, wo od a n d pa per; J o ne s vill e, gr ai n, petr ole u n, 

a n d CSS A; a n d C ol u m bia, petr ole u m a n d i n d u stri al c he mical s.

Ar ka nsas Ri ver P orts a n d Har b ors

Pri nci p al c o m n o dities ha n dle d t hr o u g h t he Pi ne Bl u ff P ort are a were 

c he micals, 33 perce nt; sa n d a n d gra v el, 42 perc e nt; a n d ir o n a n d st ee l,

2 per ce nt. Pri vat e ter mi nal s l ocate d wit hi n WRP A 5 a n d ea st of Pi ne 

Bl u ff, Ar k., ha n dle d 38,92 6 t o n s, 89 perce nt of w hic h was grai n.

No f orei g n tr a ff ic was re p orte d i n WRP A 5 f or 1970.

110
I l l
5 5 4

SS E L C O MP OSI TI O N

S hall o w - Dr aft Ves sel s

Ta ble 4 2 s u m n arizes c o n m ercial ve ss el m o ve ments i n WRP A 5 f o r 1 9 7 0.

T he ve ss el s o n t h e O ua c hita - Blac k Ri v ers i n 1 97 0 c o nsist e d of t u gs, 

li q ui d a n d dr y car g o ba r g es, a n e xc ursi o n b o at i n t he M o nr oe, La., ar ea, 

a n d a sc h o ol b oat f o r fe rr yi n g sc h o ol c hil d re n acr o ss t he ri v er at 

J o n es ville, La. T otal c o m bi ned ve ss el tr i p s u p b o un d were 1, 0 5 1; t o ta l 

c o m bine d ve ss el tr i p s d o w nb o un d were 1, 0 5 4.

T hi rt y- ei g h t perc e nt of t he ve ss el tr i p s o n t he O uac hita- Blac k 

Ri vers was sc h o ol fe rr y or e xc ursi o n b o ats re q uiri n g 3 fe et or le ss 

d ra ft. Bar ge tr i p s c o nsist e d of 5 0 perce nt li q u i d a n d 5 0 perc e nt dr y 

car g o.

Ni netee n perc e nt of t he u p b ou n d tri p s a n d 2 7 perc e nt of t he d o w nb o u n d tr i p s re q uire d dra ft s gr eate r t ha n 6- 1/ 2 fe et n o w mai ntai ne d o n 

t he ri v er. F u rt h er de sc ri pti o ns of ve ss el s a n d t o w c o m p ositi o n are 

c o ntai n e d i n t he Re gi o nal S u m mar y.

F UT U RE NEE DS

Pr o s pe cti ve C o m merce

Ge neral

Water b or ne c o m merce i n t he sele ct e d c o m n o dit y cate g o rie s was 

pr oj ecte d i n acc or d a nce wit h i n dice s of o ut p ut de vel o pe d f o r t he 

a p pr o p riate maj or i n d u str y gr o u p s. T hese i n di ce s ar e s ho wn o n ta bl e 4 3. 

I n ge ne ral, t he Pr o gra m A i n dice s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gr o wt h f o r t he i n di vi d u al W RP A's wit hi n t he L o wer Mississi p pi Re gi o n. 

Pr o gra m B i n dice s were de vel o pe d t o re fl e ct a re gi o n al gr o wt h i n 

e m pl o y me nt e q ual t o t he nati o nal a ve ra g e, 1. 4 pe rc e nt!./. A p pli cati o n of 

t h es e i n dice s t o t he bas e ye ar t o n na ges s h o w n pr e vi o usl y o n ta ble 4 1 

yiel d f ut ure le vels of c o m merce as s ho wn i n a g g re g ate o n ta bl e 4 4.

T hese le vels are de si g nate d as t he gr os s nee ds of t he ar ea. N ote t h at 

t he pr oj ecti o ns ar e e x pre sse d i n t o n - mile s f o r t he water wa ys a n d i n 

s h ort t o n s f o r t he p ort s.

F u rt h er di sc us si o n of t h es e i n dice s a n d t h eir de ri vati o ns is 

c o ntai n e d i n A p pe n di x B, Ec o n o mics.

1 12
Si - O 6t Z- » S Ta b le 4 2 - Ves sel T ri ps, 1 9 7 0, WRP A 5 _ _ _ _ _ _ U p bo u nd Tri ps _ _ _ _ _ _ _ _ _ _ S el f- Pr o pell e d N o n-s elf Pr o- Ve ssels p elle d Ve ssels Pa sse n ge r T o w boat Water wa y Dr y Car g o or Dr y T u g b oat Car g o _ _ _ _ _ _ D o w nb ou nd Tri ps Self- P r o pelle d N o n-s elf Pr o- Ve ssels p elle d Ve ssels Pas se n ger T o wb oat Ta n ker T otal Dr y Car g o or Dr y T u g b oat Car g o Ta n ker T otal O ua c hita- Blac k Ri ve rs, Ar k. a n d La. 4 04 2 2 4 2 1 1 2 12 1, 0 5 1 4 04 2 2 5 2 12 2 1 3 1, 0 5 4
I nla n d Tra ffic

Pr oje cte d t o n - mile s f o r t he O u ac hita- Blac k Ri v ers ar e 2 0 9. 9 

milli o n, 3 7 9. 2 milli o n, a n d 7 1 9. 6 milli o n f o r t h e yea rs 1 9 8 0, 2 0 0 0, a n d 

2 0 2 0, re s p ecti ve l y. F ut ure t o n s f o r t he maj or p o rt s of t he O u ac hita- Blac k 

Ri vers were pr oj ecte d at 1. 6 milli o n, 2. 8 milli o n, a n d 5. 4 milli o n f o r 

1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti v el y. Pr oj ecti o ns f o r t he Pi ne Bl uff P o rt 

a n d ot he r WRP A 5 Ar ka nsas Ri ver ter mi n als were esti m ate d t o be 6 5 1, 2 0 0, 

9 1 2, 7 0 0, a n d 1, 3 3 4, 8 0 0 t o n s f o r 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti v el y.

T otal Pr oj ecte d C o m merce

T otal pr oj ecte d t o n s f o r all p o rt s a n d har b o rs i n WRP A 5 were 

2. 2 milli o n, 3. 8 milli o n, a n d 6. 7 milli o n f o r 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, 

re s p ecti v el y. T he a ver a ge a n n ual gr o wt h ra te of Pr o gra m A f o r WRP A 5 

is 4 pe rc e nt.

Pr o gra m B t o n s were deri ve d as a m ulti ple of Pr o gra m A t o ns a n d 

fa ct or s de vel o pe d i n t he Ec on o mic A p pe n di x B. T he y are 9. 6 pe rc e nt,

1 5. 7 pe rc e nt, a n d 1 7. 9 perc e nt gr ea te r t ha n Pr o gra m A i n 1 9 8 0, 2 0 0 0, 

a n d 2 0 2 0, re s p ecti ve l y.

Net Nee ds

Ge neral

Na vi gati o n nee ds data are s ho wn i n ta ble 4 5 f o r Pr o gra ms A a n d B.

T he ta bl e i ncl u d es t he gr o ss nee ds t o be s ati sfi e d f o r eac h pr oj ecte d 

ti me pe ri o d, t he nee ds t o be s ati sif ie d b y pr o je ct s ass u me d t o be 

c o m plete d f o r eac h pr oj ecte d ti me pe ri o d, a n d t he net nee ds w hic h ar e 

t he nee ds t h at w ill re q uir e s o me t y pe of na vi gati o n c o nstr u cti o n w ork 

t o sa ti sf y. T he va ri o us t y pe na vi gati o n i m pr o ve me nts ar e al s o s h o w n. 

S hall o w- a n d Dee p- Draft C ha n nels

T here ar e n o na vi gati o n nee ds pr es e n tl y esti m ate d i n WRP A 5 t h at 

w o uld re q uire s hall o w- or de e p - d raft c ha n nel t y pe c o nstr u cti o n w or k.

P o rts a n d Hai b ors

A nee d f o r p o rt a n d har b o r de vel o p me nt e xists i n WRP A 5. Slac k water 

i nl a n d c ha n nels l o cate d o ff ri v er mai nste ms ar e nee de d t o pr o vi d e are as 

f o r l oa di n g a n d u nl oa di n g f a cil it ie s a n d al s o fl ee ti n g ar ea s. T he s p oil 

fr o m h ar b or c o nstr u cti o n w ill li k el y be use d f o r i n d u st ri al f ill. T he 

net nee ds ar e s he wn i n ta ble 4 5 f o r Pr o gra ms A a n d B, a n d were asst me d 

t o be e q ual t o t he t o ta l pr oj ecte d t o n na g e le ss t h e t o n na ge pr es e n tl y 

ha n dle d b y e x isti n g f a c iliti e s. No atte n p t was made t o deter mi ne 

ca pa cit y of t he e x isti n g f a cil it i e s. Net nee ds f o r Pr o gra m A f o r 1 9 8 0, 

2 0 0 0, a n d 2 0 20 ar e 1, 2 7 4, 7 0 0; 2, 8 0 6, 7 0 0, a n d 5, 7 8 2, 9 0 0 t o ns, re s p ecti ve l y. 

Pr o gra m B nee ds were calc ul at e d si mil arl y t o t h e Pr o gra m B l oc k nee ds.
5 5 7 |

Ta ble 4 3 - Ec o n o mic F o re c a st, WRP A 5 

I n de x of P r o d u cti vit y b y Maj o r I n d u strie s

C o m m o dit y"

(I n d us tr y Gr o u p) Pr o gra m 1 9 6 7 1 9 6 8 1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( Wei g hte d A vera ge) 1 0 0 2 4 9 3 0 6 3 5 7

2 4 9 3 2 9 3 8 3

C oal ( N ati o nal C oal

Gr o wt h Rat e) 1 0 0 1 04 1 0 9 1 4 3 1 9 9 3 2 3

1 5 7 2 3 0 3 81

Petr ole u m ( Mi ni n g a n d

R efi ni n g, A ver a ge) 1 0 0 1 1 2 1 2 0 1 6 0 2 5 6 4 4 4

1 7 6 2 9 6 5 24

CSS A ( Q uarr yi n g ) 1 0 0 9 4 9 8 1 2 0 1 7 4 2 6 2

1 3 2 2 0 1 3 0 9

S ul p h ur ( Hel d C o nsta nt) 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0

1 0 0 1 0 0 1 0 0

Ir o n a n d Ste el ( N ati o n al

I 5 S Gr o wt h Rate) 1 0 0 1 0 3 1 0 9 1 41 2 1 8 3 4 0

1 5 5 2 5 2 4 0 1

I n d u stria l C he mic als

( C he mical a n d

Allie d Pr o d ucts) 1 0 0 1 1 4 1 2 6 1 8 8 4 3 7 9 9 9

2 0 6 5 0 5 1, 1 7 8

A g ri c ult u ra l C he mic als

( A gric ult u re ) 1 0 0 1 4 2 2 1 3 2 1 8

1 4 2 2 2 9 2 3 4

Al u mi n u m ( Pri m ar y M etals) 1 0 0 1 2 0 1 3 3 1 9 6 3 8 0 6 9 9

2 1 5 4 3 9 8 2 4

Wo od a n d Pa per ( F or estr y) 1 0 0 1 4 2 1 7 9 1 9 7

1 4 6 1 8 5 2 1 1

Ot her ( C he mical a n d

Allie d Pr o d ucts) 1 0 0 1 1 4 1 2 6 1 8 8 4 3 7 9 9 9

2 0 6 5 0 5 1, 1 7 8

Ge ner al Car g o ( Ot her

Ma n u fa ct u ri n g) 1 0 0 1 0 3 1 17 1 8 6 4 4 2 9 9 8

2 0 3 5 1 1 1, 1 7 7

1 1 5


5 6 0
5 6 1

* tfi MI S SI S SI P PI R E GI O N 

C O M P R E H E N SI V E S T U O Y

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

• P P A- 5

F I G U R E 6
5 6 2
5 6 3

R P A 6

G E N E R AL D E S C RI P TI O N

Water Res o ur ce Pla n ni n g Area 6 c o ns ists of all or p ar t of 1 0 c o u ntie s 

a n d pa ri s h es i n Ar ka nsas a n d L o uisia n a ot h er wise k no wn as t h e B oe ufTe nsas Basi n.

T he drai na ge ba si n s of t he B oe uf a n d Te nsas Ri v ers a n d Ba yo u Mac on 

ar e c o nti g u o us a n d e m brace t h at p art of t he all u via l valle y west of t he 

Mis sis si p pi Ri ver, w hic h is s o ut h of t h e Ar ka nsa s Ri v er le v ee (s o ut h 

ba n k), a n d ea st of t he O ua c hit a Ri v er Basi n bet wee n Pi ne Bl u ff, Ar k., 

a n d Ha rris o n b ur g, La. T he ba si n has a n o v er all le n gt h of a b o ut 1 90 mil es 

i n a ge ne rall y n o rt h -s o ut h di re cti o n a n d a ver a ges a b o ut 3 0 mil es i n wi dt h.

Strea ms w hic h are tri b uta r y t o t he B oe uf a n d Te nsas Ri v ers a n d 

Ba yo u Maco n i n cl u de: Bi g a n d C ole wa Cre e ks, Ba yo u La F o urc he, Bi g Ba y ou, 

Flesc h ma ns Ba y o u, Ca ne y Ba y ou, a n d R us h Ba y ou.

WRP A 6 e x p eri e nc es weat her c o n diti o n s w hic h ar e mil d - wit h a n 

a vera ge a n n ual te m per at ure of 6 5° F. T he a ver a ge fr o st -f re e pe ri o d is 

2 30 da ys. R ai nf all i n t he ar ea is u nif o r m, wit h a n a ver a ge a n n ual a m ou nt 

of 5 2 i nc he s. Heav y wi nter a n d s p ri n g rai n s ar e c h a ra cte ri stic.

E xisti n g Ec o no mic De vel o p me nt

T otal e n ^pl oy me nt was esti m ate d at 5 4, 0 0 0 i n 1 9 6 8. T his a m ou nt di d 

n ot c ha n ge si g nific a ntl y i n t h e p ri o r 1 0 ye ar s. I n 1 9 6 8, ea r ni n g s fr o m 

all i n d u st ri es were a p pr o xi mat el y $ 29 1 milli o n. Ear ni n gs c o nt ri b ute d b y 

t he a g ri c ult ura l se ct or, w hic h c o nti n u es t o be a n i m p orta nt se g me nt of 

t he t o ta l ec o n o m y, a m o unte d t o 3 6 pe rc e nt of t o ta l ear ni n g s f o r all 

i n d u st ri e s. Ma n u fact uri n g c o nt ri b ute d o nl y 1 2 pe rc e nt of t o ta l ea r ni n gs. 

S p ecific i n d us trie s i n t he ma n ufa ct uri n g se ct or c o nt ri b ute d littl e t o 

t o ta l ea r ni n gs.

T he f e rtil e d elta s oil, w hic h is well s u it e d f o r a gri c ult ura l pr od u cti o n, is t he m ost val ua ble res o urce of WRP A 6. C u rr e ntl y, 9 4 perc e nt 

of t he t o ta l la n d a n d water ar ea is i n a g ri c ult u ra l us e. La n ds i n 

a g ri c ult ura l use c o nsist of 6 0 perc e nt i n far m s, 3 0 perc e nt i n f o re st 

la n ds, a n d 1 0 pe rc e nt i n ot he r n o nfar m la n d. La nds use d f o r n o n- a g ric u lt ural p ur p oses ( 3 perc e nt of t o ta l) a n d lar g e water are as ( 3 perc e nt) 

acc o u nt f o r t he re mai n der of t h e t o ta l la n d a n d water re s o ur ce s. Mi ner al 

re s o ur ce s, f o u n d mai nl y i n t he s o ut h er n se cti o n of t h is WRP A, i ncl u d e 

petr ole u m a n d na t u ral gas.

1 21
5 6 4

ra n s p ort ati o n F a cil it ie s ( E xcl u di n g Water wa ys)

R ailr o a d s

A de q uat e s er v ic e is pr o vi d e d WRP A 6 b y t w o maj or ra il r o a d s ( M is s o uri 

P a cific a n d Illi n o i s C e ntr al). T hes e li n e s cr os s t h e ar ea fr o m n ort h t o 

s o ut h a n d e a st t o w est, re s p e cti v el y. R o uti n g s are a v ail a ble t o pr o vi d e 

tr a n s p o rt t o a dj oi n i n g sta te s a n d c o n n ecti o ns t o a ll se cti o n s o f t h e 

N ati o n.

Hi g h wa ys

A net w or k of hi g h w a y s- -i nte rs ta te, F e d er al, a n d State -- p r o vi d e 

a d e q uate tr a n s p o rt t o a d j oi ni n g tr a d e ar ea s a n d t o a ll p oi nts i n t h e 

U nite d Sta te s. I nte r sta te 20 cr o ss es t h e lc w er se cti o n o f WRP A 6 a n d 

U nite d Sta te s R o utes 80, 65, 82, 84, a n d maj or Sta te hi g h w a ys pr o vi d e 

a d diti o n al a cc es s. N u mer o us tr a n s p o rt c a rrie r s pr o vi d e se r v ic e t h r o u g h ­

o ut t h e are a.

A irli n e s

Sc he d ule d a irli n e se r v ic e is n o t a v ail a ble i n WRP A 6. T h ere ar e 

a n u m ber o f s m all air p o rt s i n t h e maj or ur ba n ar ea s w hic h pr o vi d e l o c al 

se r v ic e.

Pi p eli n es

N at ur al gas a n d cr u de o il pi p eli n e s cr os s t h e ar ea fr o m t h e s o ut h ­

we st t o t h e n o rt h e a st. All o f t h es e li n e s o ri gi n ate i n Ea st Te xas a n d 

t h e L o ui si a n a c o a st al ar ea.

E XI S TI N G N A VI G A TI O N I MP R O VE ME NTS

S h allc w- D ra ft C ha n nels

T he re are n o a cti v e na vi g ati o n p r o je cts i n WRP A 6. I n t h e la te 

t w e ntie s a n d m i d -t h ir ti e s, t h re e str ea m s were i m pr o ve d f o r n a v i g ati o n 

(s e e ta ble 4 6). H o we ver, e x ce pt f o r li m it e d us e b y c o m n ercial fis her m e n 

a n d s m all ple a s u re c r a ft, li tt l e n a v i g ati o n e xis ts o n a n y o f t h e w at er ­

wa ys i n t h e are a. N a vi g ati o n i m pr o v e me nts c o n si st e d o f cle a ri n g a n d 

s n a g gi n g.

122
5 6 5

Ta ble 4 6 - Na vi g ati o n P r o je ct s, WRP A 6

Strea m

Li mits of Pr oj ect

Mile t o Mile

Hea d of Last ye ar of

Na vi g ati o n Pr oj ect Mai nte na nce

Te nsas Ri ver, La. 1 3 7. 8 Te n dal, La. 1 9 35

Ba yo u Mac on, La. 1 1 1. 6 Fl o y d La n di n g 1 92 9

B oe uf Ri ver, La. 1 6 6. 0 Wallac e La n di n g 1 9 35

Dee p- Draft C ha n nels

No de e p - d ra ft c ha n nels e xist i n WRP A 6.

L oc ks

T here ar e n o l oc ki n g f a cil it i e s o n stre a m s wit hi n WRP A 6.

P o rts

S hall o w Dr aft

La ke Pr o vi de n ce Har b or. E xi sti n g p o rt a n d har b or i m pr o ve me nts, 

l o cate d 3 mil es s o ut h of La ke Pr o vi d e nc e, La., were a ut h orize d u n der 

pr o visi o n s of t h e Ri v er a n d Har b or Act of 1 9 6 0. I m pr o ve ments i ncl u d e d 

dre d gi n g of a har b or c ha n nel a n d t ur ni n g ba si n i n t he l o wer p art of 

Haga man C h ute (a n ol d be n d wa y c ha n nel) o n t he Mis sis si p pi Ri ver. T he 

har b o r c ha n nel is 0. 7 mile i n le n gt h, 1 50 fe et wi d e, a n d has a pr o je ct 

de pt h of 9 fe et. T he ol d c ha n n el was wi de ne d t o 4 0 0 fe et i n fr o nt (a n d 

u pstrea m) of t h e p o rt ar ea f o r a di st a n ce of a b o ut 8 00 fe et t o pr o vi d e 

f o r t he t ur ni n g ba si n. L ocal i n te re st s were re q uire d t o c o nstr u ct 

retai ni n g di k es t o pr o vi d e a di s p os al ar ea f o r e xc a vati o n m at erial fr o m 

t he har b or i m pr o ve me nts. T he re s u lti n g f ill ar ea pr o vi d es s pac e f o r t he 

e x isti n g p o rt st r u ct ure s a n d e q ui p me nt ( p t h li c a n d p ri v at e). Maj or 

c o n m o diti es ha n dle d b y t h e p o rt i ncl u d e: gr ai n, li m e, a n d sa n d a n d 

gr a v el. I n 1 9 7 0, t o ta l t o n na g e ha n dle d a m o u nte d t o a p pr o xi matel y 

4 4 6, 8 0 0 t o ns.

Ot h er p o rt f a c iliti e s. I n WRP A 6, t h er e ar e 1 9 pri va te p o rt 

f a cil it i e s l o cate d o n t he Mis sis si p pi Ri ver bet wee n Vi d alia, La., a n d 

De S ot o La n di n g, Ar k. I n L o uisia n a, pri v at e f a cil it i e s ar e l o cate d at 

or ne ar Vi d alia, Ca ne bra ke, Ne w ellt o n, D elta, O me ga, Als ati a, a n d La ke

1 2 3
r o vi d e n ce . F a c iliti e s i n A r k a n sa s a re l o c ate d n e a r E u d or a, La k e V il la g e, 

r k a n sa s C it y, a n d at De S ot o La n di n g. P ri n ci p al c o m m o diti es h a n dle d 

i n cl u d e: g ra i n s ( 4 7 p e rc e nt o f t h e t o t a l n u m ber o f p ri v at e p o rts h a n dle 

g r ai n s ), p et r o le u m p r o d u cts, a n d sa n d a n d g r a v el. T wo o f t h e f a c iliti e s 

( mat c a sti n g u se d f o r ri v e r re vet m e n t w or k ) a r e o p e ra te d b y t h e C or ps 

o f E n gi n e er s. O ne p ri v at e f a c ilit y pr o vi d es b ar g e s e r vic e f o r w at er b or n e 

c o m m erce o n t h e ri v e r.

Dee p D ra ft

T h er e a re n o d e e p - d r a ft p o rts i n WRP A 6.

S u m mar y o f E xis ti n g N a v i g ati o n I n pr o v e m e nts

A s u m mar y o f e x is ti n g n a vi g ati o n i m pr o ve m e nt s i s s h o w n i n ta b l e 4 7.

T a b le 4 7 - E xis ti n g N a v i g ati o n I m pr o v e m e nts, WRP A 6 

De pt h Wi dt h Le n gt h

P o rt s f e et f e et mil e s Re mar ks

La ke Pr o v i d e n ce 9 1 5 0 0. 7 T ur ni n g b a si n 4 0 0' x 

8 0 0'

A U T H O RI Z E D N A VI G A TI O N I MP R O V E ME N TS

T he re a re n o a ut h o ri z e d n a vi g ati o n i m pr o ve me nts i n W RP A 6.

E XI S TI N G C O M ME R CE

G e n er al

I n WRP A 6, t h e r e a re a p pr o xi m at el y 3 1 0 m il e s o f M is sis si p pi Ri v er 

b a n k. I n t h i s d is ta n c e, t h e r e a re n u m er o u s p ri v at e te r m i n als a n d o ne 

p u bli c te r m i n al, La ke P r o vi d e n ce , La. A t o t a l o f 2. 3 m il li o n t o n s was 

h a n dle d i n WRP A 6 i n 1 9 7 0. A s u m mar y o f e x is ti n g c o r m er ce b y c o m m o dit y 

t y p e i s p re se nte d i n t a b l e 4 8.

I n la n d C o m merce

La ke Pr o vi de nc e

I n 1 9 7 0, La ke Pr o vi d e n ce m o ve d 4 4 6, 8 0 0 t o n s w hi c h ac c o u nte d f o r 

1 9 p e rc e nt o f t h e w ate r b or n e c oi m er ce m o ve d. F o rt y -s e v e n p e rc e nt o f t h e 

c o m merce a t La ke Pr o v i d e n ce was g r ai n . C o m was s h i p p e d i n fr o m t h e
5 6 7

u p per Mis sis si p pi ar ea a n d s o y bea ns were s hi p pe d o ut t o Ne w Orlea ns. 

F o rt y -f o ur perc e nt was c o mp ose d of CSS A i n t he f or m of l o cal sa n d a n d 

gr a v el. Ei g ht pe rc e nt, cla ss ifie d as ot he r, was li me br o u g ht t o t he 

p u blic ter mi n al. T he re mai ni n g 1 pe rc e nt i ncl u d e d s mall s hi p m e nts of 

ir o n a n d ste el, i n d u st ri al c he mic als, w oo d a n d pa p er, a n d ge neral car g o. 

Pri v at e Ter mi nals

T otal pr i v at e ter mi nal s hi p m e nts i n WRP A 6 were 1. 9 milli o n t o n s 

i n 1 9 7 0. T his was 8 1 perc e nt of t he t o ta l s hi p me nts. Acc o u nti n g f o r 

t he m ost t o n s m ove d was petr ole u m wit h 5 6 pe rc e nt; ne xt was C S S A, 2 3 

pe rc e nt; gr ai n, 1 6 pe rc e nt; a n d w oo d a n d pa per, 4 pe rc e nt. T he re mai ni n g 

1 perc e nt i ncl u d e d i n d u st ri al c he mi cal s, ot he r a n d ge n eral car g o.

C oast wise a n d F or ei g n Tra de

T here were n o f orei g n or c oa st wise tr a f fic re p orte d i n WRP A 6 i n

1 9 7 0.

VESS E L C O MP OSI TI O N

No ve ss el c o m p ositi o n is s h o w n f o r WRP A 6 si n ce it is i ncl u d e d i n 

t h e ve ss el c o m p ositi o n a n al ysis of WRP A 1.

F UT U RE NEE DS

Pr os pe cti ve C o m merce

Ge neral

Water b or ne c o m merce i n t he se le ct e d c o m m o dit y cate g o rie s was 

pr oj ecte d i n acc or da nce wit h i n di ce s of o ut p ut de vel o pe d f o r t he 

a p pr o p riate maj or i n d ustr y gr o u ps. T hese i n di ce s are s h o w n o n ta ble 4 9. 

I n ge ne ral, t he Pr o gra m A i n di ce s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gr o wt h f o r t he i n di vi d u al W RP A's wit hi n t he L o wer M is sis si p pi Re gi o n. 

Pr o gra m B i n di ce s were de vel o pe d t o r e fl e ct a re gi o n al gr o wt h i n 

e m plo y me nt e q u al t o t h e nati o nal a v era ge, 1. 4 p er c e n t!/. A p pli cati o n of 

t h es e i n di ce s t o t h e bas e ye ar t o n n a ges s h o wn pr e vi o usl y o n ta ble 4 8 

yiel d f ut ure le vels of c o m merce as s h o w n i n a g g re g ate o n ta bl e 5 0.

T hese le vels ar e de si g nate d as t he gr o ss nee ds of t he ar ea. N ote t h at 

t h e pr oj ecti o ns are e x p res se d i n t o n - mile s f o r t he water wa ys a n d i n 

s h ort t o n s f o r t he p o rt s.

F u rt h er di sc us si o n of t h es e i n di ce s a n d t h eir de ri vati o ns is 

c o ntai ne d i n A p pe n di x B, Ec o n o mics.

1 2 5

5 6 9

I nla n d T ra ffic

O nl y i nl a n d tr a f fic is pr oj ecte d f o r WRP A 6. La ke Pr o vi de n ce Har b or 

is pr oj ecte d t o gr o w at a n a ver a ge a n n ual gr o wt h ra te of 2 pe rc e nt. T he 

pri v at e ter mi n al s ar e pr oj ecte d t o gr o w at a n a vera ge a n n ual gr o wt h ra te 

of 2. 3 pe rc e nt.

T he i n sta ll ati o n of t w o ne w p u blic ter mi n als b y 1 9 80 will i nc re as e 

t he t o n s 1 4 perc e nt i n WRP A 6 i n 1 9 8 0, 1 5 pe rc e nt i n 2 0 0 0, a n d 1 3 pe rc e nt 

i n 2 0 2 0.

F orei g n T ra ffic

No f orei g n tr a f fic is pr oj ecte d i n WRP A 6. It is p os si ble, h o we ver, 

t hat, wit h t he i ntr o d ucti o n a n d a p pare nt s uc ces s of t he L AS H bar ges a n d 

mi ni -s hi p s i n t h is are a ( o n t h e o p p o sit e si de of t h e ri ve r) t h at WRP A 6 

c o ul d be gi n t o ha ve dir e ct f o rei g n s hi p me nts.

T otal Pr oj ecte d Co m merce

T otal pr oj ecte d c o m merce f o r WRP A 6 is pr oj ecte d t o be 3. 6 milli o n 

t o ns, 4. 7 milli o n t o ns, a n d 8. 2 milli o n t o n s i n 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, 

re s p ecti ve l y. T hi s is a n a n n ual gr o wt h ra te of 2. 5 perc e nt f o r Pr o gra m A.

Pr o gra m B t o n s were deri v e d as a m ulti ple of Pr o gra m A t o n s a n d 

fa ct or s de vel o pe d i n t he Ec o no mic A p pe n di x. T hey ar e 9. 6 pe rc e nt, 1 5. 7 

pe rc e nt, a n d 1 7. 9 perc e nt gr ea te r t ha n Pr o gra m A i n 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, 

re s p ecti ve l y.

Net Nee ds

Ge neral

Na vi gati o n nee ds data ar e s h o w n i n ta ble 5 1 f o r Pr o gra ms A a n d B. 

T he ta ble i ncl u d es t he gr o ss nee d s f o r eac h pr oj ecte d ti me pe ri o d, t he 

nee ds t o be s ati sfi e d b y pr oj ec ts ass u me d t o be c o m pl ete f o r eac h 

pr oj ecte d ti me pe ri o d, a n d t he net nee ds w hic h ar e t he nee ds t h at will 

re q uire s o me t y p e of na vi gati o n c o nstr ucti o n t o s ati sf y . T he vari o us 

t y pe na vi gati o n i m pr o ve ments ar e al s o s h o wn.

S hall o w- a n d Dee p- D raft C ha n nels

T here ar e n o na vi gati o n nee d s pr es e n tl y esti m ate d i n WRP A 6 t h at 

w o ul d re q uir e s hall o w - or de e p - d ra ft c ha n nel t y p e c o nstr ucti o n w or k. 

L ocks

T here ar e n o na vi gati o n nee ds pr es e n tl y esti m ate d i n WRP A 6 t h at 

w o ul d re q u ir e l oc k c o nstr u cti o n.

P o rts a n d Har b or s

A nee d f o r p o rt a n d har b or de vel o p m e nt e xists i n WRP A 6. Sla c kwat er i nl a n d har b o rs l o cate d o ff ri v er mai nste ms ar e nee de d t o pr o vi de 

ar ea s f o r l oa di n g a n d u nl o a di n g f a c iliti e s a n d al s o fl e eti n g ar ea s. T he

1 27
5 7 0

Ta ble 4 9 - Ec o n o mic F ore ca st, WRP A 6 

I n de x o f P r o d u cti vit y b y Maj or I n d u st ri e s

C o m m o dit y

(I n d ustr y Gr o u p) Pr o gra m 1 9 67 1 9 68 1 9 70 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( A gric ult u re ) 1 0 0 1 7 0 1 9 7 2 3 3

1 7 0 2 1 2 2 5 0

C oal ( N ati o nal C oal

Gr o wt h Rate) 1 0 0 1 04 1 0 9 1 4 3 1 9 9 3 2 3

1 57 2 3 0 3 81

Pet r ol e u m ( Mi ni n g a n d

R efi ni n g, A ver a ge) 1 0 0 1 1 6 1 2 2 1 54 2 3 2 3 8 8

1 6 9 2 6 8 4 5 8

CSS A ( Q uarr yi n g ) 1 0 0 1 0 2 1 0 5 1 21 1 2 0 1 6 0

1 3 3 1 3 9 1 8 9

S ul p h u r ( Hel d C o n sta nt) 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0

1 0 0 1 0 0 1 00

Ir o n a n d Ste el ( N ati o n al

I 5 S Gr o wt h Rat e) 1 0 0 1 0 3 1 0 9 1 41 2 18 3 4 0

1 5 5 2 5 2 4 01

I n d u stria l C he mic als

( C he mi cal a n d

Allie d Pr o d ucts) 1 0 0 1 14 1 31 2 1 8 6 0 2 1, 5 1 9

2 3 9 6 9 6 1, 7 9 2

A g ri c ult ura l C h e mi cals

( A gric ult u re ) 1 0 0 1 7 0 1 97 2 3 3

1 7 0 2 1 2 2 5 0

Al u mi n u m ( Pri ma r y Metal s) 1 0 0 1 0 3 1 0 9 1 41 2 18 3 4 0

1 55 2 5 2 4 0 1

Wo od a n d Pa per ( F or estr y) 1 0 0 9 3 1 2 9 1 3 9

9 8 1 4 0 1 87

Ot her ( C he mical a n d

Allie d Pr o d ucts) 1 0 0 1 1 4 1 31 2 18 6 0 2 1, 5 1 9

2 3 9 6 9 6 1, 7 9 2

Ge n eral Car g o ( Ot her

M a n ufa ct u ri n g) 1 0 0 1 0 0 1 1 1 1 6 8 3 7 2 8 0 5

1 8 5 4 3 0 9 4 9

1 2 8
5 4 - 2 3 9 0 - 7 5 - 3 7
5 7 2

s p il fr o m h ar b or c o nstr u cti o n will li k el y be use d f o r i n d u st ri al f ill. 

T he net nee ds are s h o w n i n ta bl e 5 1 f o r Pr o gra ms A a n d B, a n d were 

ass u me d t o be e q ual t o t he t o ta l pr oj ecte d t o n na ge le ss t he t o n na ge 

pr es e ntl y ha n dle d b y e x isti n g f a cil it i e s. No atte m pt was ma de t o 

deter mi n e ca pa cit y of t h e e x isti n g f a cil it i e s. Net nee ds f o r Pr o gra m A 

f o r 1 9 8 0, 2 0 0 0, a n d 2 0 20 ar e 1, 2 5 3, 5 0 0, 2, 3 4 3, 9 0 0, a n d 5, 8 3 8, 0 0 0 t o ns, 

re s p ecti ve l y. Pr o gra m B nee ds were calc ul at e d si mil ar t o Pr o gra m B 

pr oj ecte d c o n merce.

F o rt y - ni ne bar ge t o w u p b ou n d o n t h e Mis sis si p pi Ri v er.

1 30

5 7 4
5 7 5

L O W E R MI S SI S SI P PI R E GI O N 

C O M P R E H E N SI V E S T U D Y

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

W R P A- e

I G U R E 7
5 7 6
5 7 7

W R P A 7

GE NE R AL DES C RI PTI O N

All or pa rt of 1 7 c o u nties i n ce ntr al a n d s o ut h wester n Mississi p pi-- 

w hic h are wit hi n or a djac e nt t o t he Bi g Blac k, H o m oc hitt o, a n d B uffal o 

Ri vers, a n d Bay ou Piei Te drai na ge basi ns--c o m pris e WRP A 7.

T he Bi g Blac k Ri ver Basi n is 1 55 miles i n le n gt h a n d a vera ges 

a b o ut 22 miles i n wi dt h, c o nstit uti n g a l o n g narr o w basi n wit h a drai na g e 

are a of 3, 3 0 0 s q uare mile s. T he te rr ai n a n d c o nfi g u rati o n of t he basi n 

is s uc h t h at n o a p pr ecia ble a mo unt of t he t o tal drai na ge area is c o ntr oll e d 

b y a ny si n gle tri b ut ar y. Nu mero us s mall tri b uta ri e s, fe w of w hich are 

o ver 20 miles i n le n gt h, t h or o u g hl y di ss ect b ot h t he easter n a n d we ster n 

mar gi ns of t he ba si n. T hese tri b uta ri es ha ve t h eir s o urce i n t he hil l 

secti o ns a n d carr y a ra pi d r u n off fr o m drai na ge areas w hic h var y c o nsi dera bl y i n si ze.

T he s o ut h west Mis sissi p pi drai na ge basi n c o nt ai ns t hr ee maj or 

stre a m s--t he B uffal o a n d H o m oc hitt o Ri v ers, a nd Bay ou Pi er re. T o pogra p hical c h ar acte ri stic s of t his are a are si m ila r t o t he Bi g Blac k 

Basi n. T he s o ut h west basi n is b o u nde d o n t he n ort h b y t he Bi g Blac k 

Basi n, o n t he east a n d s o ut h b y t he Pearl Ri ver Basi n, a n d o n t he west 

b y t he Mis sissi p pi Ri ver. Most of t he drai na ge ori gi n ate s fr o m t he 

" hill are a," wit h s mall st ri ps of fl at la n d al o n g t he Mi ssis si p pi w hic h 

are m ostl y s wa mp are as. Ot her mi n or tri b uta ri e s i n t he basi n are 

Was ho ut Ba yo u, St. Cat heri n e Cree k, C otes Cree k, a n d Do wd Cree k.

Water Res o urce Pla n ni n g Area 7 e x perie nce s a mil d cli m ate wit h a n 

a vera ge a n n ual te m perat ure of 6 5° F. Fre eze -fre e peri o d ( gr o wi ng 

seas o n) a vera ge 2 70 da ys. Rai nf all t hr o u g h o ut t he area is hea v y, ra n gi n g 

fr o m 5 5 t o 6 0 i nc hes a n n uall y a n d occ urs m ostl y d uri n g t he s pri n g m o nt hs.

E xi sti n g Ec on o mic De vel op me nt

T otal e mpl oy me nt i n t he area was a p pr o xi matel y 5 8, 0 00 i n 1 9 6 8. T his 

n u m ber re pr ese nte d a n i ncr ease of 15 perc e nt o ver t he n ur b er re p orte d i n 

1 95 9. Ear ni n gs f or all area i n d ustri es i n 1 96 8 were $ 24 6 milli o n. Pa per 

a n d alli e d pr o d ucts, a g ric ult ural a cti vitie s, ci vili a n g o ver n me nt, re ta il 

a n d w h olesale tra de, ser vice s, a n d f o o d a n d ki n dr e d pr o d uct s are pri n ci pal 

i n d ustri es of t his WRP A a n d pr o vi de t he maj or s o urce of i nc o me. Ear ni n gs 

c o ntri b ute d b y maj or i n d u str y gr o u ps i ncl u d e: a g ric ult ure (i ncl u de s 

f o re str y, fi s h erie s, a nd mi ni n g), 1 8 perc e nt of t o ta l; ma n ufact uri n g,

3 3 per ce nt; a n d ot h er i n d u stri es, 49 perce nt. Pri nci pal c o ntri b ut or s 

i n ma n ufact uri n g are: pa per a n d allie d pr o d ucts, 6 perc e nt of t o tal 

ear ni n gs; a n d f o o d a n d ki n dre d pr o d ucts, 2 per ce nt.

1 35
5 7 8

Va l uable a g ri c ult u ra l la n ds ar e t h e p ri n ci p al re s o ur ce a n d ha s bee n 

b a sic t o t h e a r e a's ec o n o mic de v el o p m e nt. A gri c u lt ure c o nti n ue s t o be a 

maj or se g me nt of t h e ec o n o m y. Ni n et y- f o ur pe rc e n t of t h e t o t al la n d a n d 

w at er ar ea i n WRP A 7 is i n a g ri c ult u ra l us e. Fif t y -e i g ht pe rc e nt o f t h e 

la n d i n a g ri c ult u ra l use is i n far ms a n d 42 pe rc e n t is i n f o r e sts .

Ti m b er re s o ur ce s ha v e be e n la r g el y re s p o n si bl e f o r i n d u str ia l gr o wt h, 

p a rti c ula rl y i n t h e s o ut h w est p orti o n of t h e WRP A. T he H o m oc hitt o 

N ati o nal F o re st oc c u pi es a la r g e p orti o n o f t h e s o ut h w est are a. N o na g ri c ult u ra l us e, w hic h c o n si st s of F e d er all y o w ned la n d s, ur b a n a n d 

b uilt- u p are a s, a n d s m all w at er ar ea s acc o u nt f o r 5 p er ce nt of t h e t o t al 

are a. Lar g e w at er ar ea s c o n stit u te t h e re m ai ni n g 1 pe rc e n t of t h e t o t a l.

T ra n s p ort ati o n F a cil it ie s ( E xcl u di n g Water w a ys)

R ailr oa ds

T wo maj or rail w a y s (Illi n o i s C e ntral a n d F ri sc o) pr o vi d e fr ei g ht 

tr a n s p o rt ati o n i n t o a n d o ut o f WRP A 7. Wit h t h e rail w a y se r v ic e 

a v ail a ble, s hi p m e nt s or re c ei p ts of car g o ca n be ma de fr o m a d j oi ni n g 

st ate s a n d ot h er p oi nts i n t h e Nati o n.

Hi g h wa ys

A net w or k of n u mer o us i n t e r st ate , F e d er al, S ta te , a n d ot h er r oa ds 

pr o vi d e tr a n s p o rt ati o n t o a n y ar ea wit h i n a n d o utsi d e t h e WRP A. N u mer o us 

tr u c k li n e s pr o vi d e ca n n o n, c o ntr a ct, a n d s p e cia li z e d tr a n s p o rt.

A irli n e s

Sc h e d ule d air li n e s er v ic e i n t h e Bi g Blac k WRP A is li m it e d. Natc h ez, 

M is s., (i n t h e s o ut h we st dr ai na ge b as i n) is t h e o nl y l o c ati o n wit hi n t h e 

ar ea w here sc he d ule d a ir tr a n s p o rt ati o n a n d fr ei g ht se r v ic e is a v ail a ble. 

S o ut h er n Airli n e s pr o vi d es t h is se r v ic e f o r Natc h ez.

Pi p eli n e s

N at ur al gas li n e s cr os s WRP A 7 fr o m t h e s o ut h w est t o t h e n ort h ea st 

a n d i n a n ea st - w est dir e cti o n n ea r t h e c e nte r o f t h e are a. T hese li n e s 

o ri gi n ate i n e a st Te xas a n d t h e L o ui sia na c o a st al re gi o n s.

E XI S TI N G N A VI G A TI O N I MP R O VE ME NTS

S h all o w- D ra ft C ha n nels

T he re ar e n o a cti v e n a v i g ati o n p r o je cts i n WRP A 7. H o we ver, i n 

18 81, a p r o je ct was a d o pte d w hic h pr o vi d e d f o r hi g h- w at er n a v i g ati o n t o 

C o x's Fe rr y o n t h e Bi g Bla c k Ri v er ( mile 10 2) b y re m o val o f wr ec ks, 

s n a g s, e t c., fr o m t h e c h a n nel. S na g gi n g o p er ati o n s were be g u n i n 1884 

a n d s us pe n de d i n 18 94, pe n di n g re m o val of l o w, fi x e d b ri d g e s. L ocal 

i n te r e sts de ci d e d t h e bri d g es wer e of m ore val u e t h a n n a v i g ati o n a n d t h e 

n a v i g ati o n i m pr o v e me nts were dis c o nti n ue d.

136
5 7 9

De e p - Draft C h a n n els

No d ee p- d ra ft c h a n nels e xis t i n WRP A 7.

L oc ks

T he re ar e n o n a v i g ati o n l o c k s i n WRP A 7.

P ort s

S hall o w Dra ft

L ocal i n te r e sts at N atc he z, M is s., ha ve c o n st r u ct e d a p o rt f a c ilit y 

j u st s o ut h o f Nat c he z o n t h e 9 - f o ot dee p M is si ssi p pi Ri ve r c h a n nel. T his 

p o rt pr o v i d es p u bli c te r m i n al f a c iliti e s f o r s hi p p er s o f w ate r b or ne c o mmerce i n t h e ar e a. T he C or ps o f E n gi ne er s has c o n st r u ct e d a le ve e wit h 

fl o o d g at e a n d p u m pi n g pla nt t o pr o vi d e p r o te cti o n f o r t h e Natc h ez P o rt 

Area fr o m t h e M is si ssi p pi Ri ve r p r o je ct fl o o d. T he Natc h ez P ort Area 

p r o je ct was a u t h or iz e d u n der S ec ti o n 205 o f t h e Fl o o d C o ntr ol Act of 

30 J u n e 19 4 8- -c o n st r u cti o n was c o m plet e d i n 19 68.

Maj o r c o m m o dities c u rr e ntl y ha n dle d b y t h e p u bli c te r m i n al a n d 

p ri v ate f a c iliti e s at Nat c he z c o n si st o f a g ri c ult u ra l pr o d uc ts ( g r ai n), 

c o n st r u cti o n m ate ri als, a n d w o o d a n d pa pe r pr o d u ct s. I n 19 70, water b o r n e 

c o m merce s hi p m e nts re p ort e d f o r t h e Natc h ez ar ea a m o u nte d t o 4 8 7,6 00 t o ns. 

Deep D ra ft

T h ere are n o d e e p - d ra ft p o rt s i n WRP A 7.

A U T H O RI ZE D N A VI G A TI O N I MP R O VE ME NTS

T h ere are n o a u t h oriz e d n a v i g ati o n i m pr o ve me nts i n WRP A 7.

E XI S TI N G C O N ME R CE

Ge ner al

Water b or n e c o n merce i n WRP A 7 c o n si st e d s o le l y o f t r a f fi c m o vi n g o n 

t h e M is si ssi p pi Ri ver eit h e r d e sti n e d f o r or o ri gi n ati n g at Natc h ez, 

M is s., t h e o nl y maj or p o rt. T he r e st o f t h e p o rt s ar e s m all p ri v ate 

te r m i n als. I n WRP A 7, t h ere are a p pr o xi m at el y 115 mile s o f M is si ssi p pi 

Ri ve r ba n k.

A s u m mar y of e xis ti n g c o n merce f o r WRP A 7 is pre se nte d i n ta ble 52. 

T ot al t o ns ha n dle d i n 197 0 were 8 4 6, 50 0 t o n s. Si xt y - n i n e p er ce nt o f t h e 

t o n na ge was c o m p ose d o f CS S A; 20 p erc e nt, w o od a n d pa pe r; a n d 6 p erc e nt, 

137
5 8 0

gr ai n. T he re mai ni n g 5 perc e nt is c o mp ose d of petr ole u m, ir o n a n d ste el, 

i n d u st ri al c he mic als, " ot h er " a n d ge n eral car g o.

Natc h ez, Mis sis si p pi

A t o ta l of 4 8 9, 2 0 0 t o n s were ha n dle d i n Natc hez i n 1 9 7 0. T he 

Natc hez P u bli c Ter mi nal ha n dle d 1 6 8, 3 7 9 t o n s or 3 4 perc e nt of t he t o ta l 

Natc h ez, Miss., t o n n a ge. T he p u bli c ter mi nal is l oc ate d o n t he 

Mississi p pi Ri v er wit h o ut pr ot ecti o n of a har b or. Of t h is t o ta l, 4 8 7, 6 0 0 

t o n s were i nla n d a n d 1, 6 0 0 t o ns were f orei g n tr a f fic . Natc h ez, Miss., 

mo ve d 5 8 perce nt of t he t o n s ha n dl e d i n WRP A 7.

I nl a n d tr a f fic f o r Natc h ez, Miss., was pri m aril y CSS A a n d w oo d a n d 

pa pe r wit h 2 3 9, 0 0 0 a n d 1 5 9, 9 0 0 t o ns, re s p ecti vel y. T hese t w o c o m m o dities 

c o m prise 8 2 perc e nt of t he t o ta l tr a ffic . T he re mai ni n g 1 8 per ce nt 

c o nsists of t he f oll o wi n g mi n or c o n m o dit y gr o u p s: gr ai n, petr ole u m, ir o n 

a n d ste el, i n d u st ri al c he mic als, a n d ge n eral car g o. CSS A (c o n cr ete, sa n d, 

s h ell s, a g gr e g ate s, a n d water wa y i m pr ove ment m at erials) c o m m o dities were 

s hi p pe d fr o m vari o us p oi nts al o n g t h e Mis sis si p pi Ri v er. M ove me nts of 

w oo d a n d pa per were fr o m l oc al pic k u p p oi nts al o n g t h e Mississi p pi Ri v er, 

w hile gr ai n s hi p m e nts ( p ri m aril y c o m) ori gi n at e d i n t h e U p per Mis sis si p pi 

Re gi o n. F orei g n tr a f fic was c o mp ose d t o ta ll y of s hi p m e nts of w oo d a n d 

pa p er.

Pri v at e Ter mi nals

A t o ta l of 3 5 7, 3 0 0 t o n s were ha n dle d b y pri v at e ter mi nals i n 

WRP A 7. Ni n et y -si x pe rc e nt of t he se t o n s were CS S A, 3 perc e nt w oo d a n d 

pa p er, a n d le ss t ha n 1 pe rc e nt " o t h er."

No f orei g n tr a f fic was re p orte d f o r t he pri v at e te r mi n al s.

V ESS E L C O MP OSI TI O N

No ve ss el c o m p ositi o n is s ho wn f o r WRP A 7 si n ce it is i ncl u d e d i n 

t he ve ss el c o m p ositi o n a n al ysis of WRP A 1.

1 38

5 8 2

T U RE NEE DS

Pr o s pe cti ve C o m merce

Ge neral

Water b or ne c o m merce i n t he sele ct e d c o m m o dit y cate g o rie s was 

pr oj ecte d i n acc or da n ce wit h i n dice s of o ut p ut de vel o pe d f o r t he 

a p pr o p riate maj or i n d u str y gr o u p s. T hese i n di ce s are s ho wn o n ta ble 5 3.

I n ge ne ral, t he Pr o gra m A i n dice s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gr o wt h f o r t he i n di vi d u al W RP A's wit hi n t he L o wer M ississi p pi Re gi o n. 

Pr o gra m B i n di ce s were de vel o pe d t o re fl e ct a re gi o nal gr o wt h i n 

e m pl o y me nt e q u al t o t h e nati o nal a ve ra g e, 1. 4 pe rc e nt ^/. A p pli cati o n of 

t he se i n dice s t o t he bas e yea r t o n na ges s h o w n pr e vi o u sl y o n ta bl e 5 2. 

yiel d f ut ure le ve ls of c o m merce as s h o w n i n a g g re g ate o n ta bl e 5 4.

T hese le vels are de si g nate d as t he gr os s nee ds o f t he ar ea. N ote t h at 

t he pr oj ecti o ns are e x p res se d i n t o n - mile s f o r t h e water wa ys a n d i n 

s h ort t o n s f o r t h e p ort s.

Natc h ez, Mis sis si p pi

Pr o gra m A pr os pe cti v e c o m merce f o r Nat c he z, Mis si ssi p pi, i n 1 9 8 0, 

2 0 0 0, a n d 2 02 0 is 1. 3 milli o n t o ns, 4. 4 milli o n t o ns, a n d 5. 7 milli o n 

t o ns, re s p ecti ve l y. T his re pr es e nts a n a vera ge a n n ual c o mp ou nd gr o wt h 

rate of 5. 0 pe rc e nt bet wee n 1 9 7 0- 2 0 2 0.

T he f orei g n tr a f fic pr oj ecte d f o r Natc hez, Mis si ssi p pi, is 4, 2 0 0 t o n s 

i n 1 9 8 0, 1 4, 3 0 0 t o n s i n 2 0 0 0, a n d 1 8, 6 0 0 t o n s i n 2 0 2 0. T he bas e ye ar 

pr oj ecti o n fi g u re c o nsiste d of o ne mi ni-s hi p l oa d of l o g s. It is f elt 

t h at t h es e pr oj ecti o n s of dir ec t f orei g n t o n n a ge ar e u n de rstat e d beca use 

of m ore fre q u e nt m ove me nt b y L AS H bar ges a n d mi ni- s hi ps si n ce 1 9 7 0.

Pri v at e Ter mi nals

T he pr oj ecte d pri v at e ter mi nal t o n na g e is 4 8 0, 1 0 0 t o ns, 8 7 0, 0 0 0 t o ns, 

a n d 1, 6 3 2, 4 0 0 te n s f o r 1 9 8 0, 2 0 0 0, a n d 2 0 2 0, re s p ecti ve l y. T his is a n 

a vera g e a n n ual c o mp o un d gr o wt h rate of 3. 1 pe rc e nt bet wee n 1 9 7 0- 2 0 2 0. 

S u n marv of Pr os pe cti ve Co m merce

t n e t o ta l pr os pe cti v e wate r b or n e c o n merce f o r WRP A 7 is s u m marized 

i n ta bl e 5 4. Pr o gra m A pr oj ecti o ns f o r 1 9 8 0, 2 0 0 0, a n d 2 02 0 are 1. 8 

milli o n t o ns, 5. 2 milli o n t o ns, a n d 7. 3 milli o n t o ns, re s p ecti vel y. T he 

t o ta l t o n na ge a vera ge a n n ual gr o wt h rate is 4. 4 pe rc e nt.

Pr o gra m B t o n n a ges were deri ve d as a m ulti p le of Pr o gra m A t o n na ges 

a n d fa ct or s de vel o pe d i n t he Ec o no mics A p pe n di x. T hey are 9. 6 pe rc e nt, 

1 5. 7 pe rc e nt, a n d 1 7. 9 perc e nt gr ea te r t ha n Pr o gra m A i n 1 9 8 0, 2 0 0 0, a n d 

2 0 2 0, re s p ecti ve l y.

F u rt h er di sc us si o n of t he se i n di ce s a n d t h eir de ri v ati o ns is 

c o ntai ne d i n A p pe n di x B, Ec o n o mics.

1 40
5 8 3

Ta ble 5 3 - Ec o n o mic F ore ca st, WRP A 7 

I n de x of P r o d u cti vit y b y Maj or I n d u strie s

C o n m o dit y"

(I n d u st r y Gr o u p) Pr o gra m 1 9 6 7 1 9 68 1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

Gr ai n ( S o y bea n s) 1 0 0 1 9 4 2 3 9 2 8 0

1 94 2 5 6 3 0 0

C oal ( N ati o nal C oal

Gr o wt h Rat e) 1 0 0 1 04 1 0 9 1 4 3 1 9 9 3 2 3

1 5 7 2 3 0 3 8 1

Pet r ol e u m ( Mi ni n g a n d

R efi ni n g, A ver a ge) 1 0 0 1 2 6 1 3 4 1 7 6 3 3 8 7 0 9

1 94 3 9 2 8 3 6

CSS A ( Q uar r yi n g) 1 0 0 1 0 2 1 1 0 1 4 9 2 7 2 5 1 2

1 6 3 3 1 5 6 0 4

S ul p h ur ( Hel d C o nsta nt) 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0

1 0 0 1 0 0 1 00

Ir o n a n d Ste el ( N ati o n al

I 5 S Gr o wt h Rat e) 1 0 0 1 1 4 1 0 9 1 41 2 1 8 3 4 0

1 5 5 2 5 2 4 0 1

I n d u stria l C he micals

( C he mical a n d

Allie d Pr o d ucts) 1 0 0 9 9 1 1 3 1 8 2 4 2 4 9 6 5

2 0 0 4 9 0 1, 1 3 8

A gri c ult u ra l C he mic als

( A gric ult u re ) 1 0 0 1 4 7 1 8 2 2 21

1 4 7 1 9 6 2 37

Al u mi n u m ( Pri ma r y M etals) 1 0 0 1 0 3 1 0 9 1 41 2 1 8 3 4 0

1 5 5 2 5 2 4 01

Wo od a n d Pa per ( F ore st r y ) 1 0 0 8 4 1 2 6 1 4 3

1 1 0 1 5 8 1 9 0

Ot he r ( C he mical a n d

Allie d Pr o d ucts) 1 0 0 9 9 1 1 3 1 8 2 4 2 4 9 6 5

2 0 0 4 9 0 1, 1 3 8

Ge ner al Car g o ( Ot her

Ma n ufact uri n g ) 1 0 0 1 0 7 1 2 2 1 9 5 4 6 3 1, 0 4 7

2 14 5 3 6 1, 2 3 5

1 41

5 8 5

Net Nee d

Ge neral

Na vi gati o n nee ds data ar e s h o w n i n ta ble 55 f o r Pr o gra ms A a n d B. 

T he ta bl e i ncl u d es t he gr os s nee ds f o r eac h pr oj ecte d ti me pe ri o d, t he 

nee ds t o be s ati sfie d b y pr oj ects ass u me d t o be c o m plete d f o r eac h 

pr oj ecte d ti me pe ri o d, a n d t he net nee ds w hic h are t he nee ds t h at 

will re q uir e s o me t y p e of na vi gati o n c o nstr u cti o n w or k t o s ati sf y. T he 

vari o us t y p e na vi gati o n i m pr o ve ments ar e al s o s h o wn.

S hall o w- a n d Dee p- D raft C ha n nels

T here ar e n o na vi gati o n nee ds pr es e n tl y esti m ate d i n WRP A 7 t h at 

w o uld re q uir e s hall o w - or de e p - d ra ft c ha n nel t y p e c o nstr ucti o n w or k.

L ocks

T here are n o na vi gati o n nee ds i n WRP A 7 t h at w o ul d re q uir e l oc k 

c o nstr u cti o n.

P o rts a n d Har b ors

A nee d f o r p o rt a n d har b or de vel o p me nt e x ists i n WRP A 7. A sla c k - 

water i nla n d har b or l o cate d o ff t h e Mis sis si p pi Ri v er mai n c ha n n el is 

nee de d t o pr o vi d e ar ea f o r p u blic p o rt ter mi nal f a cil it i e s a n d al s o 

fl e eti n g ar ea s. T he s p oil fr o m ha r b or c o nstr u cti o n will li k el y be use d 

f o r i n d u st ri al f ill. T he net nee ds ar e s h o w n i n Ta ble 55 f o r Pr o gra ms 

A a n d B, a n d were ass u me d t o be e q u al t o t h e t o ta l pr oj ecte d t o n na g e 

le ss t he t o n na ge pr es e ntl y ha n dle d b y e x isti n g f a cil it i e s. No atte m pt 

was made t o dete r mi ne ca pa cit y of t h e e x isti n g f a c iliti e s. Net nee ds 

f o r Pr o gra m A f o r 198 0, 200 0, a n d 2020 ar e 91 7,3 00 t o n s, 4, 39 4, 70 0 t o ns, 

a n d 6, 45 9, 70 0 t o ns, re s p ecti vel y. Pr o gra m B nee ds were deri v e d as a 

m ulti ple of Pr o gra m A nee ds a n d fa ct or s de vel o pe d i n t he Ec o n o mics 

A p pe n di x. . T hey are 9. 6 pe rc e nt, 15.7 pe rc e n t, a n d 17.9 pe rc e nt gre at er 

t ha n Pr o gra m A i n 198 0, 200 0, a n d 20 20, re s p ec ti ve l y.

143

5 4 - 2 3 9 0 - 7 5 - 3 8


5 9 0

R P A 8

GE NE R AL D ES C RI PTI O N

WRP A 8 is c o m prise d of all or p arts of 1 3 e a st -c e ntr al L o uisia na 

pa ris he s a n d fi ve s o ut h- we ste r n Mississi p pi c o u ntie s. T otal la n d are a 

is 5, 7 0 5 s q u are mile s, w hic h is 6 perc e nt of t he st u d y ar ea. A b out 

1 2 perc e nt of t he WRP A 8 la n d ar ea li e s west of t he Mis sis si p pi Ri v er. 

Half of t he WRP A is i n t he all u via l pl ai n of t h at ri v e r, w hile t he 

n o rt h- ea st er n t h ir d is c o m pris e d of ge ntl y r o lli n g h ill s. O ver 6 0 pe rce nt of WRP A 8 c o nsists of f o re st e d are as wit h t he re mai n der ma de u p 

of pa st ur e a n d cr o pla n d ( 2 0 p er c e n t), a n d ot he r la n d s ( 2 0 p erc e nt).

T he war m waters of t h e G ulf of Me xic o a n d t he pr e v aili n g s o ut he rl y 

wi n ds c o n bi n e t o pr o vi d e a ge ne rall y mil d cli mate wit h te m per at u res 

sel d o m ri si n g a b o ve 9 5° F. or fa lli n g bel o w 4 0° F. ye ar r o u n d. A n nual 

ra i n fa ll a vera ges a b o ut 6 0 i nc he s.

E xi sti n g Ec o no mic De velo p me nt

T he t w o ec o n o mic fa ct or s of pri me i m p orta n ce t o WRP A 8 ar e t he 

petr oc he mical a n d ba si c met als i n d u st ri es l oc ate d i n t he Bat o n R ou ge 

ar ea a n d al o n g t he Mississi p pi Ri ver, a n d, se c o n d aril y, a g ri c u lt ural 

a n d ti m ber pr o d ucti o n w hic h are ge ne rall y c o nfi ne d t o t h e n o rt h- ea st er n 

t w o-t hir d s of t h e ar ea.

Nat ur al res o urce s of i m p orta nce f o u n d i n WRP A 8 i ncl u d e cr u de p et r o ­

le u m, na t u ral ga s, sa n d a n d gr a v el, s alt, a n d c o m mercial f o re st s. WRP A 8 

c o nt ai n s or has i m me diate acce ss t o a de q u ate gr o u n d a n d s u rf ac e water 

re s o ur ce s. M ost i m p orta nt t o t he ar ea is t he Mis sis si p pi Ri v er ( WRP A 1) 

w hic h pr o vi d es a lar ge s u p pl y of fre s h water t o t he i n d u st ri es al o n g it s 

ba n ks as well as a de e p - d raft na vi gati o nal o utl et t o t he G ulf of Me xic o.

T he p o p ulati o n of WRP A 8 has gr o w n fr o m 2 9 7, 7 5 5 i n 1 94 0 t o 5 4 6, 9 8 4 

i n 1 9 7 0, a n i nc re ase of o ver 8 3 pe rc e nt. D uri n g t h is sa me pe ri o d, ur ba n 

p o p ulati o n i nc rea se d fr o m 2 0 pe rc e nt t o a b o ut 5 8 pe rc e nt of t he t o ta l, 

m ost of w hic h ca n be cr e d it e d t o Ea st Bat o n R ou ge Pa ri s h. T hi s p aris h, 

w hic h c o ntai ns t he Cit y of Bat o n R o u ge, i nc rea se d fr o m 8 8, 4 1 5 pers o ns i n 

1 94 0 t o 2 8 5, 1 6 7 i n 1 9 7 0.

Tr a n s p ortati o n F a cilitie s ( E xcl u di n g Water wa ys)

Rail wa ys

Rail wa y se r vic e i n WRP A 8 is pr o vi de d b y f o u r li n e s, t h e Illi n ois 

Ce ntr al Railr oa d, t he Mis s o uri P ac ific Railr o a d C o m pa n y, t he L o uisia na

1 47
5 9 1

a n d A r k a n sa s Rail w a y C o m pa n y, a n d t h e Te xa s a n d P a cif i c Rail w a y C o m pa n y. 

All e x ce pt t h e Te xa s a n d P a cif i c p a ss t h r o u g h Bat o n R o u g e.

Hi g h wa y s

P A 8 i s se r v e d b y n u m er o us l o c a l, s t a t e , a n d F e d era l r o a d s a n d 

hi g h w a y s. M aj or a m o n g t h e s e a re U. S. Hi g h wa ys 5 1, 6 1, a n d 1 9 0, a n d 

I n t e r s t a t e Hi g h wa ys 1 0, 1 2, a n d 5 5. A ll p a ss t h r o u g h o r n e a r Bat o n 

R o u ge, e x ce pt U. S. 5 1 a n d 1- 5 5, w hic h a r e cl o s el y p a r a ll e l a n d r u n 

N ort h - S o ut h t h r o u g h Ha m mo n d, L o uisia n a, a n d Mc C o mb, M is sis si p pi.

A ir li n e s

M aj or c o m m ercial a i r s e r vic e i n W RP A 8 i s li m it e d t o o n e f a c ilit y 

l o c ate d i n t h e C it y o f Bat o n R o u ge. T his fi e l d i s e q ui p p e d t o h a n dle 

p a ss e n g er a n d f r ei g h t a i r c r a ft u p t o a n d i n cl u di n g t h e s m all e r j e t s . 

Pi p eli n e s

S e v era l o il a n d gas p i p eli n e s o ri g i n at e i n t h e p o rti o n o f W RP A 8 

w est o f t h e M is sis si p pi Ri v er. A f a r g r e at e r n u n b er o f li n e s tr a v e r s e 

t h e a r e a, g e n e r all y b o u n d f o r t h e N ort h a n d N o rt h e a st er n a re a s o f t h e 

U nit e d S t a t e s. T he se m aj or li n e s ra n g e i n dia m ete r fr o m a b o u t 1 0 i n c h e s 

t o 3 6 i n c h e s.

E XIS TI N G N A VI G A TI O N I MP R O V E ME N TS

G e n er al

T a b le 5 6 l i s t s a ll e x is ti n g n a vi g ati o n f a c iliti e s w it hi n W RP A 8. 

D eta il e d i n f o r m ati o n ma y be f o u n d i n A p pe n di x D, I n v e nt o r y o f F a c iliti e s

S h all o w - D ra ft C ha n n el s

T he GI W W, M or ga n Cit y t o P o rt All e n A lt e r n ate R o u te, B at o n R o u ge 

H ar b o r Ba r g e C ha n n el, a n d Bi g a n d L ittl e Pi ge o n Ba y o us a r e t h e o nl y 

c o m m er ci all y si g n ifi c a n t c h a n n els w it hi n W RP A 8. T he re m ai ni n g c h a n n els 

i n t h i s W RP A e a st o f t h e M is sis si p pi R i v er, alt h o u g h r e p o rti n g l i t t l e 

o r n o b ar g e t r a f f i c , a re h e a vil y u tili z e d b y r e c r e ati o n al c r a ft a n d, 

t o g et h e r wit h La ke Ma ure pas a n d t h e c o n n e cti n g La ke P o ntc h a rtr ai n 

l o c ate d i n W RP A 1 0, p r o vi d e m o st o f W RP A 8 w it h ma n y a r e a s s u it e d t o 

a n y w ate r s p o rt. Ba y o u G r o ss e T ete , l o c ate d w est o f t h e M is sis si p pi 

Ri v er, a ff o r d s b ot h r e c r e ati o n al a n d c o m m er ci al fis hi n g.

P o rts

T he P o rt o f Bat o n R o u ge, L o uis ia n a, w hi c h ra n k s se v e nt h i n t h e 

U nite d S t ate s ( 1 9 7 0), i s t h e o nl y m aj or p o rt l o c ate d i n W RP A 8. It 

c o m pri se s b ot h ba n k s o f t h e M is sis si p pi Ri v er fr o m a b o u t Mile 1 6 8. 3

1 4 8
5 9 2

a b ove Hea d of Passes t o a b o ut Mile 255.2 a b ove Hea d of Passe s, a n d 

i ncl u de s t he Bat on R ou ge Har b or ( D e vil's S wa mp) Bar ge C ha n nel.

T he p ort is at t he s o ut her n ter mi n us of t he e xisti n g 9 -f o ot c ha n nel 

(12-f o ot a ut h oriz e d) a n d at t he hea d of t he dee p- d raft c ha n nel of t he 

Mis sissi p pi Ri ver. T he p ort is als o ser ve d b y a di re ct c o n necti o n wit h 

t he G ulf I ntra c o astal Water wa y via t he P ort Alle n L oc k a n d t he G ulf 

I ntra c o ast al Water wa y Alt er n ate R o ute w hich e xte n ds fr o m Morgan Cit y, 

L o uisia na t o P ort Alle n, L o uisia na.

Fift y-t w o pie rs, w har ves, a n d d ocks are l ocate d i n t he P ort of 

Bat on R ou ge. T hirt y-t w o of t hese waterf r o nt fa cilitie s are o n t he le ft 

ba n k, 17 are o n t he ri g ht ba n k of t he Mis sissi p pi Ri ver, e xte n di n g fr o m 

a b o ut Mile 169.3 t o Mile 234.3 a b ove Hea d of Pas ses, a n d t hr ee are o n 

t he Bato n Ro uge Har b or ( D e vil's S wa mp) Bar ge C ha n nel.

Ta ble 57 s u m marizes t he pi er s, w har ves, a n d d oc ks at t he p ort b y 

pri mar y p ur p ose f or w hic h use d or t y pe of ser vic e off ere d.

F o ur c o mpa nies o per ate ware ho uses i n t he p ort are a wit h a t otal 

ca p acit y of 629,000 s q uare fe et of dr y st ora g e s pace. T hese ware ho uses 

are use d f or st o ri n g ge neral merc ha n dise, ha ve railr oa d c o n n ecti o n s, a n d 

are ea sil y ac ce ssi ble t o a rt eri al hi g h ways. Di versifie d ha n dli n g e q ui p ­

me nt is mai ntai ne d b y t he o pe rat ors, a n d s p ecial ser vic es are pr o vi de d 

i ncl u di n g pac ki n g a n d cr ati n g, f or war di n g, p o ol car di st ri b u ti o n, ca r ­

l oa di n g, wei g hi n g, sta m pi n g, a nd mar ki n g. I n a d diti o n, t he Great er 

Bat on Ro uge P ort C o m missi o n has o pen area s w hic h are a v ail a ble f or 

st ora ge of water b or ne car g o n ot re q uiri n g pr otecti o n fr o m t he weat her.

WRP A 8 als o c o nt ai ns se v eral s mall p orts w hich ha ve le g all y c o nsti ­

t ut e d hai b or a n d ter mi nal a ut h oriti es. T hese p orts are li st e d i n t he 

Re gi o nal S u m mary.

Barge L oc k?

P ort Alle n a n d Bay ou S orrel L oc ks are b ot h l oc ate d o n t he Morgan 

Cit y t o P ort Alle n Alter nat e R o ute. Tire P ort Alle n L oc k ser ve s as t he 

c o n necti o n t o t he Mi ssis si p pi Ri ver w hile Bay ou S orrel L oc k per mits 

na vi gati o n t hr o u g h t he East Atc hafala y a Basi n Pr otecti o n Le vee.

Na vi gati o n Ai ds

T he U. S. C oast G uar d mai ntai ns all nece ssar y na vi gati o n ai ds o n 

Fe d erall y c o n str u cte d c ha n nels a n d har b ors, a n d mar ks hazar ds t o 

na vi gati o n.

149
5 9 3

Ta ble 5 6 - E xisti n g Na vi gati o n I nr r o v e m e nt si ^, WRP A 8 

De pt h Wi dt h Le n gt h

S hall o w- Dr aft C ha n nels Te e F Feet miles Re mar ks/ Secti o n I ncl u de d ^-'

A mite Ri ver a n d Ba yo u Ma nc hac, La. 6 0 4 4 La ke Ma ure pas t o L o uisia na 6

Ar ka ns as, R R Bri d ge at Mi. 8 of

Ba yo u Ma nc hac. C ha n nel di me nsi o n 

a p pl y o nl y t o Miles 0- 3 1 wit h s na ggi n g f o r re mai n der of pr oj ect le n gt h.

Bat o n R ou ge Har b or ( D e vil' s S wa mp) 1 2 3 00 2. 5 Fro m Mississi p pi Ri v er 8 Mile 2 34

A HP ge nerall y n ort h war d f o r 2. 5 mile s, 

a n a d diti o nal 2. 5 mile s is a ut h orize d t o be c o nstr u ct e d w he n p o rt 

de vel o p me nt wa rra nts.

Bay o u Cr osse Tete, La. 6 0 1 0. 3 Ori gi nal pr oj ect fr o m I n dia n Vill a g e, 

La., t o Mi. 1 0. 3, Mi. 0 t o Mi. 2 is 

n o w pa rt of M or gan Cit y - P ort All e n 

Alter n at e R o ute.

4 0 1 8. 7 Fro m Mi. 1 0. 3 of Ba yo u Gr osse Tet e 

t o Mi. 2 9.

Bi g Pi ge o n a n d

Littl e Pi ge o n Ba y o us, La. 2 7 Pr oje ct pr o vi de d f o r re m o val of o bst r u cti o n s fr o m t he e nti re le n gt h of 

b ot h ba y o us.

G ulf I ntr ac oa st al Water wa yM or gan Cit y t o P ort Alle n

Alte r n at e R o ute 12 1 2S 6 4. 1 Fro m GI W W Mi. 9 5. 5 WHL t o Mississi p pi 

Ri v er Mi. 2 2 7. 6 A HP.

Pass Ma nc hac, La. •• •" Fro m I.a ke Ma urepas t o La ke P o ntc hartr ai n , Pr oj ect pr o vi d es f o r re m o val 

of s na gs a n d l o gs o nl y.

Ta n gi pa h oa Ri ve r, La. 1 00 5 3. 5 Fro m M out h t o Mi. 5 3. 5. C ha n nel 

di me nsi o ns a p pl y t o b ar c ha n nel o nl y. 

Re mai n der of pr oj ec t pr o vi d es o nl y 

f o r re m o val of s na gs a n d o b str u cti o ns

Tic kfa w, Nat al ba n y, P o ntc h at o ula,

a n d Bl o o d Ri ver, La. 4 5. 5 Pr oj ect pr o vi d es f o r t he re m o val of 

o b str u cti o ns i n t he Tic kfa w Ri v er,

Mi. 0 t o 2 6 i n t he Natal ba n y Ri v er 

fr o m Mi. 0 t o 1 0, i n t he P o ntc h at o ula 

Ri v er fr o m Mi. 0 t o 5. S, a n d i n t he 

Bl o o d Ri v er fr o m Mi. 0 t o 4.

p ------------------------------------------------------------ 

- Detaile d i nf or m ati o n o n e x isti n g f a cil it ie s ma y be f o u n d i n A p pe n di x D, I n v e nt or y of 

F a cilitie s.

- P oi nt s o n Mississi p pi Ri ver ar e e x p res se d as mile s a b o ve t he Hea d of Pass es ( A H P); P oi nt s 

o n t he GI W W ar e e x p res se d as mile s ea st or west of Har ve y L oc k i n Ne w Orle a ns ( OI L, W1 L).

1 5 0
Ta ble 5 6 - E xisti n g N a vi g ati o n I n pr o ve m e n ts ^, WRP A 8 (c o nt' d)

P o rts

ort of Bat o n R o u ge

be pt h Wi dt h Le n gt h 

f e et mile s Re ma r k s/ S ecti o n I n cl u d e d ^

4 0 5 0 0

 6 S B ot h ba n ks o f M is si ss i p pi Ri v er fr o m

Mi. 1 6 8 A HP t o Mi. 2 3 3 A HP

1 2 3 0 0 2 0 B ot h ba n ks o f M is si ssi p pi Ri v er fr o m

Mi. 2 3 3 A HP t o 2 5 3 A HP. Al s o i n ­

cl u d es 2. 5- mil e ba r g e ca nal [ Bat o n 

R o u ge Ha r b o r ( D e vil's S wa mp) }. Deta il e d i n f o r m ati o n ca n be f o u n d i n 

A p pe n di x V, I n ve nt or y of F a cili tie s.

L oc ks

Wi dt h

Feet

ba y o u S orr el L oc k

5 6

P ort Alle n L ock 8 4

Le n gt h De pt h o v er S il l

fe et fe et

7 9 7 1 4

1, 2 0 2 1 3. 7 5

Re ma r k s/ S ecti o n I n cl u d e d ^ 

O pe ne d t o N a vi g ati o n 1 9 S2 

O pe ne d t o N a vi g ati o n 1 9 61

Bat o n R o u ge H ar b o r.
5 9 5

Ta ble 5 7 - P o rt of Bat o n R ou ge F a cilitie s

Pri mar y P ur p ose f o r w hic h Use d N u m ber

Car g o ha n dli n g:

Ba u xite a n d al u mi n a...................................................................... 3

B ul k s a lt, c hl o ri ne, a n d li q ui d ca us ti c s o da .................... 1

Ge ne ral car g o:

By bar ge .................................................................................. 1

F or ei g n a n d d o me stic ........................................................... 2

Gr ai n, m olas ses, be nz e ne, a n d m uriatic aci d ( o ne ea c h ). . 4

Li q ui d a m m onia .............................................................................. 3

Petr ole u m pr o d ucts, cr u de o il, petr o c h e micals, a n d

C h e m ic als.............................................................................. 1 4

P h o s p h ate, fl o u rs pa r, dr y a n d li q ui d s ul p h u r, li q u i d

f e rtili z e r, a m mo nia, a n d c he mic als .............................. 1

S h e ll.................................................................................................. 8

S ul p h uri c aci d a n d li q u i d s ul p h ur .......................................... 2

La n di n g f o r pa sse n g er a n d ve hi c ula r f e rr ie s ............................... 4

Mari ne se r vic es a n d re pair s:

Ha n dli n g b o at st or es a n d mari ne s u p plie s ............................ 2

M o ori n g .............................................................................................. 2

M o ori n g i n c o n necti o n wit h mari ne re pa ir s a n d o utf itti n g. 3

U n use d f a cil it i e s at ti me o f s ur v e y .................................................. 2

T OT AL . . . . 5 2

1 5 2
5 9 6

E XI STI N G C O M ME RCE

Ge neral

T he 1970 wate r b or n e c o m merce f o r WRP A 8 is s ho wn b y c o n m o dit y ca te ­

g o rie s i n ta ble 58. Petr ole u m pr o d ucts a n d I n d u st ri al c he micals c o m prise 

t he m aj o rit y of m o ve me nts. I n a d diti o n, t he P ort of Bat o n R ou ge ha n dle s 

la r g e a m o unts of gr ai ns, ir o n a n d ste el, a n d al u mi n u m or es.

I nla n d Co m merce

C o n mo dit y cate g o rie s i n v ol vi n g si g nific a n t i nl a n d t o n n a ges f o r 

WRP A 8 ar e dis c u sse d bel o w.

Grai n

Water wa ys wit hi n WRP A 8 s u p p ort littl e si g nific a n t i nla n d gr ai n 

tr a f fic . T he P ort of Bat o n R o u ge, h o we ver, ha n dle d s h all o w- d ra ft 

t o n na ges i n e xc ess of 2, 00 0, 00 0 t o n s i n 1970. T his gr ai n, al m ost 

e nti re l y c o m a n d s o y b ea ns, is ne arl y all e x p orte d.

C oal

T he m aj o rit y of WRP A 8 m o ve ments i n t h is cat e g o r y c o nsist of 

t hr o u g h te ws of c oal s o ut h b o u n d f o r Te xas o n t he M or gan Cit y - P ort Alle n 

Alte r n at e R o ute, a n d i m p ort-e x p o rt t o n na ges of c o k e, as p h alt, a n d 

re late d s ol v e nts ha n dle d at t he P ort of Bat o n R o uge.

Petr ole u m a n d Rel ate d Pr o d ucts

Cr u de petr ole u m a n d re fi ne d pr o d ucts c o m prise 44 pe rc e nt of all 

water wa y m o ve ments i n WRP A 8 a n d 45 pe rc e nt of i nl a n d t o n na ges ha n dle d 

at t h e P o rt of Bat o n R o u ge. As s h o w n i n ta bl e 58, ne arl y a ll of t he 

WRP A 8 water wa y m ove me nts of petr ole u m ori gi n at e o n t he M or gan Cit yP ort Alle n Alte r n at e R o ute. I n t he mai n, t he se m ove me nts re pr es e nt 

cr u de oil w hic h is pr o d uce d wit hi n t he Atc haf ala ya Basi n a n d t he n 

mo ve d b y bar ge t o re fi n er ie s i n t he Bat o n R ou ge are a a n d els e w here, 

a n d re fi ne d petr ole u m pr o d ucts m o vin g i n t hr o u g h t o ws fr o m re fi n er ie s 

i n Te xas a n d S o ut h west L o uisia na t o p oi nts o n t he Mis sis si p pi Ri v er 

S yste m. A b o ut 65 per ce nt of t he i nl a n d petr ole u m t o n na g es ha n dle d at 

Bat o n R o uge c o nsist of s h all o w- d ra ft re cei pts a n d s hi p m e nts of cr u de 

oil a n d re fi ne d ga s oli n e. T he re mai n der c o m prises b ot h re ce i pts a n d 

s hi p m e nts of t he vari o u s ot he r re fi ne d oil pr o d u cts.

Ir o n a n d St eel

Ir o n a n d ma n ganese ore s re pr es e nt t he b ul k of i nl a n d t o n na ges 

wit hi n t h is c o m m o dit y gr o u pi n g ha n dle d at t he P ort of Bat o n R o u ge. T he 

m o ve ments c o nsist ge ne rall y of f orei g n ore i m p orts bei n g bar ge d t o 

i nla n d f o u n dries.

153
5 9 7

5 9 9

I n d u st ri al C he micals

Water wa y m ove me nts of i n d u st ri al c he micals i n WRP A 8 c o ns ist pr e ­

d o mi n a ntl y of n ort h b o u n d t hr o u g h-t o ws o n t he M or gan Cit y- P ort Alle n 

Alte r n at e R o ute. T hese m ove me nts ge ne rall y ori gi n at e at t h e n u mer o us 

c he mical a n d petr oc h e mi cal pl a n ts l o cate d o n t he L o uisia n a a n d Te xas 

G ulf c o a st, a n d ar e de sti ne d f o r p oi nts o n t he u p per Mis sis si p pi Ri ve r 

s yste m or f o r e x p o rt.

I nla n d m o ve ments of i n d u st ri al c he micals pe rt ai ni n g t o t he P o rt of 

Bat o n R o uge ar e lar ge s hi p m e nts ori gi n ati n g at t he lar g e c he mic al pl a n ts 

l o cate d t h er e.

Ot her

T his cat e g or y is c o m pris e d al m o st e nti re l y of s alt m o vi n g i n t hr o u g h 

te ws o n t h e M or gan Cit y- P o rt Alle n Alte r n at e R o ute a n d de sti n e d f o r 

p oi nts o n t he u p per Mississi p pi Ri v er S yste m.

Ge neral Car g o

I nla n d t o n na ges of si g n ific a n ce u n der t h is cat e g or y ar e u n s p ecifi e d 

gr ai n mill pr o d ucts, n o n ferr o us or es, a n d b uil di n g ce me nt.

C oast wise Tra de

O ver 85 pe rc e nt of 1970 c o ast wi se tr a f fi c ha n dle d t hr o u g h Bat o n 

R ou ge p o rt f a cil it i e s c o nsist e d of petr ole u m s hi p me nts. D is ti ll ate 

f u el oil a n d cr u de petr ole u m f or me d t he b ul k of t h es e s hi p m e nts a n d 

t o get h er c o m pris e d ne arl y 60 pe rc e nt of all c oa st wise tr a f fic fr o m t h is 

p o rt.

F or ei g n Tra de

T he maj or ite m s of f orei g n c o m merce s hi p pe d a n d rec ei v e d at Bat o n 

R ou ge ar e gr ai n s, ir o n a n d ste el, i n d u st ri al c he mi cal s, al u min u m ore s, 

a n d ge neral car g o ite m s. T hese ar e di sc us se d bel o w.

Grai n s

F orei g n gr ai n tr a f fic at t he p o rt c o ns ists e nti re l y of e x p o rts of 

w hic h c o m a n d s o y bea ns acc o u nt f o r ne arl y 95 pe rc e nt.

Ir o n a n d St eel

Ei^it y-t h re e perc e nt of t he f o rei g n tr a d e at Bat o n R ou ge c o ver e d 

b y t h is gr o u pi n g c o nsists of i m p orte d ir o n a n d ma n ganese or es de sti n e d 

f o r s hall o w dra ft a n d r ail s hi p m e nt t o i nla n d f o u n dries.

I n d u st ri al C he micals

E x p orts of u n cl as si fi e d ba si c c he mical pr o d u cts acc o u nt f o r 97 

perc e nt of t he tr a d e u n der t h is cate g or y.

156
6 0 0

Al u mi n u m Ores

T he 1 97 0 de e p - d raft m o ve ments of al u min u m ore s were c o m prise d 

e nti re l y of i m p orte d ba u x it e, a m o u nti n g t o ne arl y 4. 5 milli o n t o ns.

T hese s hi p me nts were de sti n e d f o r t hre e f a cil it ie s i n a n d ar o u n d Bat o n 

R ou ge w here ba u xite is c o n verte d i nt o al u mi n a.

T he al u mi na is t he n rail e d a n d/ or bar g e d t o pri ma r y al u mi n u m 

f a cil it i e s i n t he Ne w Orle a ns are a a n d else w h ere.

Ge ner al Car g o

U n der t h is cat e g o r y t he d o mi na nt a rti cle s ar e i m p ort e d u n cl as si fi e d 

n o n-fer r o us ore s a n d e x p ort e d u n cl as si fi e d gr ai n mill pr o d u cts.

V ESS E L C O MP OSI TI O N

C o m mercial ve ss el m o ve ments o ver WRP A 8 water wa ys a n d t hr o u g h t he 

P o rt of Bat o n R ou ge ar c s u m marized i n ta bl e 5 9. De scri pti o ns of t y pical ve ss el s ar e c o ntai n e d i n t h e Re gi o nal S u m nar y.

F UT U RE NEE DS

Pr os pe cti ve Co m merce

Water b or ne C o m merce i n t he sele ct e d c o m m o dit y cate g o rie s was pr oje ct e d i n acc or da nce wit h i n di ce s of o ut p ut de vel o pe d f o r t he a p pr op ri ate maj or i n d ustr y gr o u ps. T hese i n dice s ar e s h o w n o n ta bl e 6 0. I n 

ge ne ral, t he Pr o gra m A i n di ce s re pr es e nt O BF. RS' f o re ca st of ec o n o mic 

gr o wt h f or t he i n di vi d u al W RP A's wit hi n t he L o wer Mis sis si p pi Re gi o n. 

Pr o gra m B i n dice s were de vel o pe d t o re fl e ct a re gi o n al gr o wt h i n e m pl o yment e q ual t o t he nati o nal a v era ge, 1. 4 p e r c e nts. A p pli cati o n of t he se 

i n di ce s t o t h e base ye ar t o n na ges s ho wn pr e vi o usl y o n ta ble 5 8 yi el d 

f ut u re le vels of c o m merce as s ho wn i n a g g re g ate o n ta ble 6 1. T hese 

le vels are de si g nat e d as t he gr o ss nee ds of t h e ar ea. N ote t h at t he 

pr oj ecti o ns are e x p res se d i n t o n - mile s f o r t he water wa ys a n d i n s h ort 

t o n s f o r t he P ort of Bat o n R o uge.

Net Needs

Na vi gati o n nee ds pr oj ecte d t o ar is e i n WRP A 8 d uri n g t he st u d y 

pe ri o d are s he w n o n ta ble 6 2. As st at e d pr e vi o usl y, t h e GI W W, Mor ga n 

Cit y- P ort Alle n Alte r n at e R o ut e, Bat o n R ou ge Har b or Bar ge C ha n n el, a n d 

Bi g a n d L ittl e Pi ge o n Ba yo us ar e t he o nl y c ha n nels i n WRP A 8 ca rr yi n g

F u rt h er di sc us si o n of t h es e i n dice s a n d t h eir de ri va ti o n s is c o ntai n e d 

i n A p pe ndi x B, Ec o n o mics.

1 57
6 0 1

si g nific a n t c o nr oerci al t o n na g es. Bi g a n d L ittl e Pi ge o n Ba y o us, a n d t he 

Bat o n R ou ge Har b or C ha n nel are c o n si d ere d t o be a de q uate i n ter ms of 

pr oj ecte d Pr o gra m A a n d B gr o ss nee ds. T he e x isti n g ca pa cit y of t he 

M or gan Cit y- P ort Alle n Alte r n at e R o ute is deter mi n e d b y t he Ba y ou 

S o rrel a n d P o rt Alle n L oc ks. It is pr oj ecte d t h at u n der Pr o gra m A 

c rit e ria , t h e ca pa cit y of t h es e l oc k s w ill be e xcee d e d b y 5. 7 milli o n 

t o n s a n d 6 2. 4 milli o n t o n s i n t he ye ar s 2 00 0 a n d 2 0 2 0, re s p ecti ve l y.

T he c orres p o n di n g s h o rt fa ll i n ca pa cit y u n d er Pr o gra m B pr oj ecti o ns will 

be 1 1. 8 milli o n t o n s a n d 7 8. 9 milli o n t o ns.

T he re mai ni n g na vi g a bl e f a cil it i e s i n WRP A 8 al m o st e x cl usi v el y 

ser ve re cr ea ti o n al nee ds. T hese ar e dis c u ss e d se pa ratel y i n A p pe n di x N, 

Re cre ati o n.

To w e nte ri n g P ort Alle n L ock fr o m Mississi p pi Ri v er.

1 5 8
ble 5 9 - V ess el T ri p s, 1 9 7 0, WRP A 8 l o w- D raft Water wa y A mite Ri ve r a n d Ba y o u Ma nc hac, La. Bat o n R o u ge Ha r b o r ( D e vil's S wa mp) Ba y o u Gr o sse T et e, La. Bi g Pi g o n a n d L ittl e Pi ge o n Ba y o u s, La. I n b o u n d/ U p b o u n d/ East b o u n d/ N ort h h o u n d O ut b o u n d/ D o w n h o u n d/ West b o ui d/ S o ut h b o u n d S elf - P r o p ell e d v e ss els >J o n - S elf - Pr o p ell e d V es sels S elf - P r o p ell e d V es sels N o n - S el f- Pr o pe ll e? V es sels Pa ss e n ge r Y o b oa t Pa ss e n ge r T o ut oat o r Dr y Car g o Ta n ker T u g b o at Dr y Car g o Ta n ker T ot al Dr y Car g o Ta n ker T u g b oat Dr y Car g o Ta n ker T otal N o Ve ss el Tri ps Re p ort e d I n cl u d e d i n P o rt o f Bat o n R o u ge 2 0 6 1 9 3 4 2 5 2 0 3 1 9 3 4 1 9 G ulf I n tr a c o a sta l Water wa y- M or ga n Cit y t o P o rt Alle n Alt er n ate R o ute 3, 1 8 3 2, 8 8 7 5, 8 0 6 1 1, 9 0 3 3, 1 7 8 2, 8 8 7 5, 8 0 5 1 1, 8 9 2 Pa ss Ma nc hac, La. No V ess el Tri p s Re p orte d Ta n gi pa h oa Ri v er, La. Tic kfa w, N atal­ ba n y, P o ntc ha- t o ula, a n d Bl o o d Ri v er s, La. T otal N o V ess el Tri ps Re p ort e d 3, 4 2 3 2, 9 6 7 6, 0 0 0 1 2, 4 1 9 2 4 3, 4 1 5 2, 9 6 4 5, 9 9 8 1 2, 4 0 1
5 4- 2 3 9 0 - 7 5 - 3 9
6 0 4

Ta ble 6 0 - Ec o n o mic F ore ca st, WRP A 8 

I n di ce s of P r o d u cti vit y b y Maj or I n d u st ri e s

C o m mo dit y

(I n d ust y Gr o u p) Pr o gra m 1 9 6 7 1 9 68 1 9 69 1 9 70 1 9 80 2 0 0 0 2 0 2 0

Gr ai n ( A gric ult u re ) 1 0 0 1 32 1 66 2 0 6

-- -- -- 1 00 1 3 2 1 7 8 2 2 1

C oal ( Mi ni n g, N ati o nal) 1 0 0 9 9 1 0 5 1 09 1 3 7 2 2 3 3 2 9

1 0 0 9 9 1 05 1 09 1 3 7 2 2 3 3 2 9

Petr ole u m ( Mi ni n g 8

R efi ni n g A vera g e) 1 00 1 1 3 1 16 1 1 9 1 5 2 2 1 8 3 5 8

1 0 0 1 1 3 1 1 7 1 21 1 6 6 2 5 3 4 2 2

CS S A ( Q uar r yi n g) 1 0 0 8 4 1 01 1 0 2 1 0 9 1 76 3 01

1 0 0 8 4 1 0 3 1 0 5 1 2 0 2 0 4 3 5 5

S ulf u r ( Q uar r yi n g) 1 00 1 00 1 00 1 0 0 1 0 0 1 00 1 0 0

1 0 0 1 00 1 00 1 0 0 1 0 0 1 00 1 0 0

Ir o n 8 Ste el,

Al u mi n u m Ores

( Pri ma r y Metal s) 1 00 1 7 8 1 8 4 1 9 2 2 7 5 4 9 6 8 5 2

1 0 0 1 7 8 1 86 1 9 6 3 0 2 5 7 4 1, 0 0 5

I n d u stria l C he micals 

( C h e mi cals § Allie d

Pr o d ucts) 1 0 0 1 17 1 2 3 1 3 3 2 2 0 6 3 1 1, 6 1 1

1 0 0 1 17 1 24 1 3 5 2 4 1 7 30 1, 9 0 0

A g ri c ult u ra l C he micals

( A gr ic ult u re ) -- -- -- 1 0 0 1 3 2 1 66 2 0 6

1 0 0 1 3 2 1 7 8 2 2 1

Ot h er C o n m o dities 

( C he mical 5 Allie d

Pr o d ucts) 1 0 0 1 1 7 1 2 3 1 3 2 2 2 0 6 3 1 1, 6 1 1

1 0 0 1 1 7 1 24 1 3 3 2 4 1 7 30 1, 9 0 0

Misc ella ne o u s Co m mod it ie s ( Ot he r

Ma n uf act uri n g ) 1 0 0 1 05 1 1 1 1 1 7 1 8 3 4 4 1 1, 0 1 7

1 0 0 1 05 1 1 1 1 1 9 2 0 1 5 1 0 1, 1 9 9

1 6 1

Ite m p- d ra ft C h a n nels (I O T o n- Mile s) Ne w C h a n nels Gr oss Nee d E xisti n g S u p pl y Net Nee d E xisti n g F a c iliti e s I m pr o ve me nt Gr os s Nee d E xisti n g S u p pl y Net Nee d S h all o w - d ra ft C h a n nels ( 1 0 T o n- Mile s) Ne w C h a n nels Gr oss Nee d E xisti n g S u p pl y Net Nee d E xisti n g F a c iliti e s I m pr o ve me nt Gr oss Nee d E xisti n g S u p pl y Net Nee d D ee p- d ra ft N a v i g ati o ns L oc ks ( * S hi p L o c ka ges ) Gr os s Nee d E xisti n g S u p pl y Net Nee d S h all o w - d ra ft N a vi g ati o n L oc ks ( 1 0 T o ns) Gr os s Nee d E xisti n g S u p pl y Net Nee d Ta bl e 6 2 - N a v i g ati o n Ne e d s, WRP A 8 Pr o gra m A ~ — — — — — — p a m B 1 9 7 0 T 9 S 0 o o o 2 07 0' W --------- » ----------- 2 W N O NE N O NE N O NE N O NE N O NE N O NE N O NE N O NE N O NE N O NE 1 6. 4 2 4. 9 S O. 7 1 0 7. 4 2 6. 8 5 6. 8 1 2 3. 9 1 6. 4 2 4. 9 4 S. 0 4 5. 0 2 6. 8 4 5. 0 4 5. 0 5. 7 6 2. 4 1 1. 8 7 8. 9

6 0 8

«» »* ( >

l EC O O

«| O R O L O OC H B O Uft O A R Y

------------- S T A T E B O U N D A R Y

------------- P A RI S H O R C O U R T V B O V U O A R Y

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

FI G U R E 9
6 0 9
6 1 0

R P A 9

GE NE R AL D ES C RI PTI O N

WRP A 9, w hic h re pr es e nts 1 3 pe rc e nt of t h e st u d y ar ea, c o n pris es 

all or p o rti o n s of 2 1 s o ut h we ster n a n d s o ut h- ce nt ral L o uisia na pa ri s h es. 

T otal ar ea a m o u nts t o 1 3, 2 9 6 s q u are mile s. T his WRP A ra n ges fr o m t he 

Sa bi n e Ri ve r waters he d nea r t he Te xas Stateli n e east war d t o t he Ea st 

Atc haf ala ya Basi n Pr ot ecti o n Le vee, a n d s o ut h fr o m t he Red Ri v er Basi n 

i n t he are a of Al e xa n dria, L o uisia n a, t o t he G ulf of Me xic o. A b o ut 3 0 

perce nt of t h e t o ta l la n d are a i n t he sta te of L o uisia na is c o ntai ne d 

i n WRP A 9. T he t o p o gra p h y va rie s fr o m c o astal mars hes i n t he s o ut h 

t hr o u g h ce ntr al pl ai ns w hic h fi n all y ri s e t o r o lli n g w o ode d h ill s i n t he 

n o rt h er n p art of t he ar ea.

T he siitr o pic al latit u d es a n d t he war m G ulf of Me xico ar e t h e maj or 

det er mi na nts of l o cal cli m ate, w hic h is c h ar acte ri ze d b y h ot s u m mers a n d 

mil d wi nte rs. A vera ge m o nt hl y te m per at ures ra n ge fr o m 8 2° F. i n A u g ust 

t o 5 4° F. i n Ja n uar y. N or mal a n n ual p re ci p it ati o n is a b o ut 3 8 i nc he s.

E xisti n g Ec o no mic De vel o p me nt

WRP A 9 e nj o ys a di v ersifie d ec on o my bas e d o n petr ole u m e x pl or ati o n, pr o d ucti o n a n d re fi ni n g s alt a n d s ul p h ur mi ni n g, ti n b er, c he mical 

ma n uf act uri n g, c o m mercial fi s h i n g, a n d a g ri c u lt ure.

T hese a cti vitie s re fl e ct t he ri c h res o u rce bas e of WRP A 9. Oil a n d 

gas fi el d s ar e l o cate d t hr o u g h o ut t h e ar ea, a n d of fs h o re. S ul p h ur 

de p o sit s are f o u n d i n Calca sie u Pa ri s h, w hile e xte nsi v e s alt de p o sit s 

e x ist i n t he s o ut he r n p o rti o n s of t he WRP A. T he val u e of all mi n erals 

pr o d uce d i n WRP A 9 f o r 1 96 9 c o m pris e d a t h ir d of t he $ 4. 7 billi o n 

L o uisia na t o ta l. C o m mercial f o re st s c o ve re d a b o ut 4 1 perc e nt of t he 

t o ta l WRP A 9 la n d ar ea i n 1 9 7 0. Ri ce, s u garca ne, a n d s o y bea ns re pr es e nt 

t he m ost i m p orta nt cr o ps i n t he ar ea, a n d, t o ge t h er wit h ha y, c ott o n, 

a n d c o m, ha ve c o m pris e d o ver 9 5 pe rc e nt of re ce nt ha r v ests. I n a d diti o n, 

t h o se la r g er t o w ns a n d citie s i n t he s o ut he r n p art of t h e ar ea w hic h 

ha ve acc ess t o t he c o m mercial water wa ys ha ve de vel o pe d a si za bl e tr a n s p or ­

ta ti o n se r vic e i n d u str y.

T otal p o p ulati o n i n WRP A 9 has i nc re as e d 6 0. 7 perc e nt si n ce 1 94 0 

t o 7 4 8, 4 3 3 i n 1 9 7 0. I n cr ea si n g i n d u st ri ali z ati o n of WRP A 9 has bee n 

re fl ec te d i n t he gr o wt h of ur ba n p o p ulati o n, w hic h has i nc re as e d fr o m 

3 0 perc e nt i n 1 94 0 t o 5 7 perc e nt i n 1 9 7 0. Maj or p o p ulati o n ce nt er s 

wit hi n t he ar ea i ncl u d e La ke C h arles, L af a y ette, a n d Ale xa n dri a. 1 97 0 

p o p ulati o n s f o r t he La ke dia ri es a n d t he La fa yette S N B A's were 1 4 5, 4 1 5 

a n d 1 0 9, 7 1 6, re s p ec ti ve l y, w hile t he 1 97 0 p o p ulati o n of Ale xa n dria was 

4 1, 5 5 7.

1 6 7
6 1 1

Tr a n s p ortati o n F a cilitie s ( E xcl u di n g Water wa ys)

Rail wa ys

N u mer ous rail wa ys ser ve WRP A 9. T he m ore i m p orta nt li n es a mo ng 

t he m ar e t he S o ut her n P acific C o m pa n y, t he Ka nsas Cit y S o ut her n Li n es, 

t he Mi ss o uri P acific Railr o a d C o m pa n y, a n d t he Te xas a n d P acific Rail wa y 

C o m pa n y.

Hi g h wa ys

WRP A 9 is tr a v er se d b y man y l o c al, sta te , a n d fe de ral hi g h wa ys. A 

li sti n g of t h o se of maj or i m p orta nce is as f oll o w s:

U. S. Hi gh way 7 1 - A dj oi ni n g U. S. Hi gh wa y 1 9 0, U. S. Hi gh way 7 1 c uts 

t hr o u g h t he n o rt he ast c o m er of WRP A 9 r u n ni n g i n a 

n o rt h we ste rl y dir ec ti o n.

U. S. Hi gh way 9 0 - U. S. Hi gh way 9 0 r u n s i n a n ea st- w est dir ec ti o n fr o m 

Te xas t hr o u g h La ke C ha rles a n d i nt o La fa yette w here 

it c ha n ges t o a s o ut he aste rl y dir ec ti o n pa ssi n g 

t hr o u g h M or ga n Cit y.

U. S. Hi g h wa y 1 67 Be gi n ni n g i n L af a y ette, U. S. Hi gh way 1 67 r u ns i n 

a n o rt he rl y dir e cti o n.

U. S. Hi gh way 1 71 - L ocate d i n t he we ster n p o rti o n of WRP A 9, U. S.

Hi gh wa y 1 71 r u ns i n a n o rt he rl y dir ec ti o n o ut of 

La ke C h arl es.

U. S. Hi g h wa y 1 9 0 - Pas si n g i n a n ea st- w est dir ec ti o n i n WRP A 9, U. S. 

Hi gh wa y 1 90 pa ss es t hr o u g h O pel o usas.

I n te rs ta te 1 0 - R u n nin g i n a n ea st- w est dir e cti o n, I n te rs ta te 1 0

pas ses t hr o u g h La ke C ha rles a n d La fa yette a n d 

p ara ll els U. S. Hi gh way 9 0 bet wee n t h es e citi e s.

Airli n es

T here ar e t h re e c o m mercial air p o rt s l oc ate d i n WRP A 9, o ne i n La ke

C h arl es, o ne i n La fa yette, a n d o ne i n L ee s ville. T he La ke C h arl es a n d 

La fa yette fi el d s ar e e q ui p pe d t o ha n dle n ati o n all y o p er ati n g c o n m ercial 

je t air c r a ft, w hile t he L ee s vill e f a cil it y is li m ite d t o c o n mer cial 

pr o p elle r air c r a ft.

Pi peli n es

WRP A 9 c o nt ai ns a n el a b or at e net w or k of o ns h ore a n d a djac e nt o ffs h or e oil a n d gas pi pe li ne s. T hese li n e s ra n ge i n si ze fr o m s mall 2-i nc h 

dia met er l o cal li n es u p t o t he la r g e 3 6 -i nc h maj or i n te rs ta te tra ns missi o n 

li n e s.

1 68
6 1 2

E XI S TI N G N A VI G A TI O N I MP R O V E ME N TS

G e n er al

T a b le 6 3 c o nta i n s a li s ti n g a n d b ri e f d e s c ri p ti o n o f e x is ti n g 

n a vi g ati o n i m pr o ve me nts w it hi n W RP A 9. D eta il e d i n f o r m ati o n ma y be 

f o u n d i n A p pe n di x D, I n v e nt o r y o f F a c iliti e s.

S h all o w - D ra ft C h a n nels

T he d o mi na nt n a vi g ati o n f e at u r e o f W RP A 9 i s t h e G ulf I n tr a c o a sta l 

Water w a y. T o g et h er wit h it s tri b u t a r y c h a n n els, i t p r o vi d e s t h e s o ut h er n 

h a lf o f WRP A 9 wit h a w ell - d e v el o p e d s h all c w - d r a ft tr a n s p o rta ti o n s y st e m 

v it a l t o t h e m i n eral re s o u rc e o rie nte d p o rti o n o f t h e a re a ec o n o m y. 

P et r ole u m a n d it s pr o d u cts c o m pris e t h e b ul k o f t h e t o n n a g e m o ve m e nts 

o v er t h e GI W W mai n st e m as w ell as m ost o f t h e re m ai ni n g W RP A 9 w ate rwa ys. N ot a b le e x c e pti o n s a re : Ba y o u s P e tit A n se, T i g r e, a n d C a rli n 

o v er w hic h b ul k s a lt m o ve m e nts pre d o mi n at e; a n d t h e Atc h afa la y a Ri v er 

bele w M or ga n C it y, a n d Fre s h w at er Ba y o u o n w hic h m ari n e s h e ll s c o n p ri se 

t h e m aj o ri t y o f t o n n a g e m o ve m e nt s.

I n a d diti o n t o t h e a b o ve c o m m ercial c h a n n els, t h e r e e x i st s w it hi n 

t h e c o a sta l m ar s h es o f W RP A 9 a la b y ri n t h i n e net w or k o f p i p eli n e a n d 

d ra i n a g e c a n als w hic h a r e h e a vil y us e d b y r e c r e ati o n al c r a ft a n d i n la n d 

fi s h er m e n a n d, t o a l e s s e r d e g re e, b y o il e x pl o r ati o n a n d s e r vic e c r a ft.

D ee p- D ra ft C ha n n el s

T he C alc a sie u Ri v er a n d Pa ss pr o vi d e a 4 0 X 4 0 0 f o ot d e e p - d ra ft 

n a vi g ati o n c h a n nel fr o m t h e G ul f o f Me xic o t o p u bli c w ha r v es l o c ate d i n 

t h e c it y o f La ke C h a rl e s, L o uisia n a, a dis ta n c e o f a b o u t 3 4 m il e s. T he 

d e e p - d ra ft c h a n nel e xte n d s a n a d dit i o n al 2 mil e s u p st re a m at di m e n si o n s 

o f 3 5 f e et X 2 5 0 f e et a n d te r m i n ate s i n a 3 5-f o ot X 7 5 0-f o ot X 1 0 0 0 -f o ot 

t u r ni n g b a si n . I n a d dit i o n, t h i s mai n c h a n nel i s i n te r s e ct e d b y t w o 

s h o rt c o n n ec ti n g c h a n n els, D e vil ’s El b o w I n d u stri al Ca nal at mil e 2 2. 5, 

a n d C o o n I sla n d C h a n nel ( 3 0 f e et X 1 0 0 f e et) at mil e 3 2. 2.

T he Atc h af ala y a Ri v er bel o w M or ga n C it y, L o uis ia n a, i s a ut h o ri z e d at 

di m e n si o n s o f 2 0 f e et X 2 0 0 f e et a cr o ss A tc h afa la y a Ba y t o t h e 2 0 -f o ot 

c o nt o u r i n t h e G ulf o f Me xic o. T he p o rti o n o f t h e c h a n ne l i n t h e ba y, 

he w e v er, i s o nl y dr e d ge d t o 1 8 f e et X 2 0 0 f e et a n d bet w ee n dre d gi n g s 

s i l t s t o di m e n si o n s as s m all as 1 2 f e et X 1 4 0 f e et. T he re m ai n d er o f 

t h e c h a n nel i s s elf - m ai n ta i n i n g at g r e ate r t h a n a ut h o ri z e d di m e n si o n s.

1 6 9
6 1 3

Ta ble 6 3 - E xisti n g N a vi g ati o n I n p r o v e a e nts ^, WRP A 9

S hall o w- D raft C h a n n els

De pt h Wi dt h Le n gt h

mile s

Re m ar k s/ S ecti o n I n cl u d e d - ^

fe et Feet

Atc ha fala ya Ri v er, M or ga n

Cit y t o Ol d Ri v er, La. 1 2 1 2 S 1 2 1 ■ Ol d Ri v er L oc k at M is si ss i p pi Ri v er t o 

M or ga n C it y, La.

Ba y o us P eti t A nse, Ti g re, 

a n d C arl i n , La. 8 0 1 4 Ba y o u P eti t A nse fr o m G ul f I n tr a c o a sta l 

Water wa y ( Mi. 1 4 5. 7 W HL) t o he a d o f A ver y 

Is la n d, La. Ba y o u C arli n fr o m m o ut h t o 

J eff ers o n Is la n d, La.

Ba y o u Pla q ue mi ne Br ule 6 0 1 9 Fr o m it s ji n cti o n wit h Ba y o u De Ca n nes t o 

Cr o wle y, La.

Ba y o u Tec h e 8 0

S O

S O

5 7

T 3 7

M o ut h t o Mi. 5 0 n ea r Ne w I b e ria , La.

C al ca si e u Ri ve r N ot 4 9

S p ec ifie d

Fr o m La ke C h arle s, Mi. 3 7, t o P hilli p s 

B l u ff, L a., Mi. 8 5. 9; n o n- na vi ga bl e 

a b o v e Mi. 6 0.

F ra n kli n Ca n al 4 0 Fr o m GI W W ( Mi. 1 2 1 MI L) t o F ra n kli n, La.

Fr es h w at er Ba y o u 1 2 1 2 S 2 0 GI W W ( Mi. 1 6 1. 2 MI L) t o G ul f o f Me xi c o.

G ulf I n tr a c o a sta l Water wa y 1 2 1 2 S 1 7 1 Fr o m Atc ha fala ya Ri v er, L a., ( GI W W Mi.

9 5. 5 MI L) t o Sa bi n e Ri v er, Te xa s ( Mi. 2 6 6 

MI L).

Mer me nta u Ri v er, La. 

( Gl W W- Sc h o o ner Ba y o u Se cti o n)

3/

3/

3/

3/

3 5

4 5

Mer me nta u Ri ve r at t h e GI W W t o t h e G ulf 

o f Me xic o.

Mer me nta u Ri v er at t h e GI W W t o t h e GI W W 

i n t h e vic i n it y o f V er mili o n L oc k via

Gra n d a n d W hite La ke s a n d Sc h o o ne r Ba y o u.

Mer me nta u Ri v er, Ba y o us 

Nez pi q ue 6 Des Ca n nes 1 2

1 2

1 0 0

1 0 0

1 0 0

3 3

2 5

5 7

Mer me nt a u Ri v er fr o m it s j u n cti o n wit h

GI W W ( Mi. 2 0 2. 2 W HL) Mer m e nta u, L a.; Ba y o u 

Nez pi q u e fr o m it s m o ut h t o Mi. 2 5; Ba y o u 

Des Ca n nes fr o m it s m o ut h t o Mi. 9.

V er mili o n Ri ve r 8 0 5 1 V er mili o n Ba y t o L a fa y ett e, L a.; V er mili o n 

Ri ve r i n te r s e cts GI W W at Mi. 1 5 9 MI L.

De e p- Dr aft C ha n nels

Atc ha fala y a Ri v er, M or ga n

Cit y t o G ulf o f Me xic o 2 0 2 0 0 3 8 Fr o m M or ga n Cit y, La. t o 2 0 -f o ot c o nt o u rs 

i n G ul f; d ue t o s h o ali n g t h e c o ntr olli n g 

de pt h is 1 1 fe et o v er p a r; Ba y C h a n nel,

1 4 f e et; E xis ti n g p r oje ct d e p t h, 2 0 f e et.

- D et ail e d i nf o r m ati o n o n e xis ti n g f a c iliti e s ma y be f o w d i n A p pe n di x D, I n ve nt or y o f 

F a ciliti e s.

— P oi nts o n M is si ss i p pi Ri ve r ar e e x pr es se d as mile s a b o v e t h e Hea d o f P as se s ( A H P); P oi nts o n 

t h e GI W W are e x pr es se d as mile s e a st o r w est o f Har v e y L oc k i n Ne w O rle a n s ( E H L, MI L).

P r o je ct pr o vi d es f o r a c h a n nel cr o ss s e cti o n o f 3, 0 0 0 s q ua re fe et bel e w mea n le w g ulf, 

e x ce pt f o r s h ort se cti o n s o f 6 f e et X 6 0 f e e t, a n d 5 f e et X 4 0 f e et.

1 7 0
6 1 4

Ta ble 6 3 - E xisti n g Na vi gati o n I m pr o ve me nts- ^, WRP A 9 (c o nt’ d)

Dee p- Draft C ha n nels

Dept h

fe et Feet

Le n gt h

miles Re mar ks/ Sect i o n I n cl u d e d ^

Cal casie u Ri ver 6 Pa ss, La. 4 0 4 00 5 8 Fr o m Lake dia ri e s, La., t o 4 2-f o ot c o nt o ur 

i n G ulf of Me xic o.

D e vil' s El b o w, La. 3 5 3 00 T he c ha n nel c o n nects wit h Calca sie u Ri ver 

( Mi. 2 2. 5) at it s i nte rs ec ti o n wit h t he 

GI W W ( Mi. 2 4 1. 2).

C oo n Isla n d, La. 30 1 00 1. 5 T he c ha n nel is l oc at e d 1. 5 miles d o wnstre a m fr o m La ke C harles at Mi. 3 2. 2, 

ri g ht desc e n di n g ba n k of Calca sie u Ri v er.

P orts

Lake C h arl es, La. 4 0 4 00 20 T he p o rt of La ke C harles i ncl u d es pa rt of 

Calca sie u Ri v er a n d Pa ss, D e vil' s El b o w, 

a n d C oo n Isl a n d C ha n nels. Pri n ci pal 

watei b o m e c o m merce ha n dl e d at p o rt are 

cr u de petr o le u n, petr ole u m pr o d u cts, 

c he mic als, ri c e, a n d u n ma n ufact ure d mari ne 

s h ell. Detaile d i nf o r mati o n o n fa cil it ie s 

ca n be f o u n d i n E xisti n g F a cilitie s Re p ort.

M or gan Cit y, La. 20 2 00 Te c h ni call y, M or gan Cit y ca n be cla ss ifie d

as a p o rt si n ce t he e xisti n g pr oj ect c alls 

f o r 2 0-f o ot de pt h. Pri n ci pal c o n m o dities 

m ovi n g t hr o u g h t he p o rt are u n ma n ufact ure d 

s h ell s, petr ole u n, a n d mis cell a ne o us e q ui pment f o r fa bric ati o n a n d re pairs of lar g e 

mari ne st r u ct ure s f o r off s h or e oil i n d ustr y,

L ocks

De pth o ver Sill

fe et

Widt h

Feet

Le n gt h

fe et Re mar ks/ Secti o n

I n cl u d e d ^

Cal casie u L oc k 1 3 7 5 1, 2 0 6 O pene d t o Na vi gati o n i n 1 95 0

Ver mili o n L oc k 1 1. 3 56 1, 1 8 2 O pene d t o Na vi gati o n i n 1 93 3

Fres h wat er Bay ou 

L oc k 16 84 6 0 0 O pene d t o Na vi gati o n i n 1 96 8

Ol d Ri v er L oc k 1 3 7 5 1, 2 0 0 O pene d t o Na vi gati o n i n 1 96 3

1/ Detaile d i nf o r m ati o n o n e x isti n g fa cil it ie s ma y be f o ui d i n A p pen di x D, I n ve nt or y of 

F a cilitie s.

2/ P oi nts a n Mississi p pi Ri ver are e x presse d as mil es a b o ve t he Hea d of Pass es ( A H P); P oi nt s o n 

t he GI W W ar e e x p ress e d as mil es ea st or west of Har ve y L ock i n Ne w Orlea ns ( E H L, MI L).

1 7 1
6 1 5

L o c k

T here are f o ur s hall o w- dra ft l oc ks l oc ate d i n WRP A 9. T he y are t he 

Calc asie u, Ver mili o n, Fres h water Ba yo u, a n d Ol d Ri ver L oc ks. Calc asie u 

a n d Ver mili o n L oc ks, l oc ate d o n t he GI W W at Miles 162.7 V a n d 13 8.4 V 

re s p ecti v el y, f u ncti o n pri maril y t o pre v e nt sa lt water i ntr u si o n i nt o 

t he Mer me nta u Ri ver Basi n. Si mila rl y, Fres h water Bay ou L oc k ser v es t o 

pre ve nt s alt wate r i nt r usi o n i nt o t he mars hes l oc ate d a dja ce nt t o t he 

c ha n nel a b ove t he l oc k.

T he Ol d Ri ver L ock, l oc ate d nea r Mis sissi p pi Ri ver Mile 304 A HP, 

ser ve s as t he c o n necti o n bet wee n t h at ri ve r a n d t he Atc hafala ya a n d 

Re d Ri ver s.

P ort s

T he pri n ci p al dee p water p ort i n WRP A 9 is t he P ort of Lake C ha rles, 

L o uisia na. I n 1970 t his p ort ra n ke d t we ntiet h i n t he U nite d St ate s i n 

ter ms of t o n na ge ha n dle d. T he waterfr o nt li m its at t he p ort i ncl u d e 

b ot h si d es of t he Calca sie u Ri ver n ort h war d fr o m t he Calcasie u- Ca mer o n 

Pari s h li n e t o t he p u blic w har ves o p p o site Cl o one y Isl a n d, a dista n ce 

of a b o ut 15 miles, a n d a b ove t he p u blic w har ves f o r a n a d diti o n al 11.5 

mile s. T he p ort fa cilitie s i ncl u d e a b o ut si x t y p u blic a n d pri v ate 

w harves l oc ate d o n t he mai n c ha n nel, o n t he i n d u stri al ca nal at De vil's 

El bo w, a n d o n t he Coo n Isla n d C ha n nel. T we nt y- o ne of t he se w har ves are 

desi g ne d t o ha n dle petr ole u m a n d petr oc he mical pr o d ucts. A d diti o n all y, 

t he Lake C harles Har b or a n d Ter mi nal District o per ates 22 p u blic 

ware h o uses wit h a t o tal of 427,2 00 s q uare feet of s pace pl us 115,0 00 

s q uare fe et of o pe n st o ra g e. Morgan Cit y, alt h o u g h tec h nicall y a dee pdr aft p ort b y virt u e of it s a ut h oriz e d 20 -f o ot X 200 -f o ot c ha n n el, 

act uall y s u p p orts o nl y mi n or f or ei g n a n d c oast wise tr a d e, c o nsisti n g 

pri ma ril y of lar g e offs h or e oil fi el d pr o d u cti o n a n d c o nst r ucti o n e q ui p ­

ment w hic h is b uilt a n d ser vic e d i n t he are a.

It s cl o se pr o xi mit y t o off s h o re oil a cti vitie s a n d mari ne s h ell 

de p o sit s, c o n bi ne d wit h it s l oc ati o n o n t he GI W W d oes, h o we ver, gi ve 

ri se t o c o n si de ra ble s hall o w- dra ft m o ve ments, as s he wn o n ta bl e 68.

I n a d diti o n t o t he a b ove t wo p o rt s, t he re are a n u mber of s maller 

s p ecialize d p orts t hr o u g h o ut WRP A 9. T h ose w hic h ha ve le gall y c o nsti ­

t ut e d har b or a n d ter mi nal a ut h oriti es are s ho wn i n t he re gi o n al s u m mar y.

-J Milea ge west of Harve y L oc k.

172
6 1 6

vi g ati o n Ai ds

T he U. S. C oa st G u ar d m ai n ta i n s a ll n e c e ss ar y ai d s t o n a vi g ati o n 

o n F e d e ra ll y c o n str u cte d c h a n n els, a n d mar k s h a za r d s t o n a vi g ati o n.

A U T H O RI Z E D N A VI G A TI O N I MP R O V E ME N TS

N a vi g ati o n i m pr o ve me nts a ut h o ri z e d f o r F e d era l c o n str u cti o n w it hi n 

W RP A 9 a r e s h o w n o n ta b l e 6 4.

S h all o w - D ra ft C h a n nels

T he Ri v er a n d H ar b o r Act o f 19 62 a ut h o ri z e d t h e e n la r g e m e n t o f t h e 

e x is ti n g 12 f e et X 12 5 f e et GI W W bet w ee n Ne w O rl e a n s, L o uis ia n a, a n d t h e 

H o ust o n S hi p C ha n n el. T he di m e n si o n s s p e cif ie d f o r t h e s e cti o n t r a ­

v e rs i n g W RP A 9 a re 16 f e et X 20 0 f e e t. T he Ri v er a n d H ar b o r Act o f 

19 65 a ut h o ri z e d s e v e ra l c u t o ff s o f di m e n si o n s 12 f e et X 12 5 f e et i n t h e 

Mer me nta u Ri v er a b o ve La ke A rt h ur a n d i n Ba y o u s Ne z pi q ue a n d Des Ca n n es, 

a n d a ut h o ri z e d re pla ce m e n t o f t h e hi g h w a y b ri d g e o v er t h e Mer me nta u 

Ri v er a t t h e c it y o f La ke A rt h u r.

D ee p- D ra ft C h a n nels

T he p re vi o u sl y m e nti o ne d i n d u stri a l ca n al l o c ate d a t t h e D e vil's 

El b o w l o o p o f t h e C alc a sie u Ri v er belc w La ke C h a rl e s, L o uis ia n a, was 

a ut h o ri z e d f o r e nla r g e m e nt b y t h e Fl o o d C o n tr ol Act o f 19 65 . T he 

e x is ti n g c a n al w ill be e nla r g e d t o t h e sa me di m e n si o n s as t h e C alc a sie u 

Ri v er mai n c h a n n el, 40 f e et X 40 0 f e e t, a n d w ill be sli g h tl y le n gt h e n e d. 

I n a d d it i o n, a 4 0 -f o ot X 1 0 0 0 -f o ot X 1 0 0 0-f o ot t u r ni n g b a si n w ill be 

c o n str u cte d at t h e la n d w ar d e n d o f t h e c h a n n el.

L oc ks

Re pla ce me nt o f t h e V er mili o n L oc k was a p pr o v e d b y t h e S e c re ta r y 

o f t h e Ar m y i n May 19 67, u n d er a ut h o rit y gra nte d i n t h e Ri v er a n d 

H ar b o r Act o f 19 09. T Tie ne w l o c k w ill be l o c ate d n e ar t h e e x is ti n g o n e. 

C u rr e ntl y a ut h o ri z e d di m e n si o n s f o r t h e re pl ac e m e nt l o c k a re 75 f e et X 

12 00 f e et wit h a s i l l ele v ati o n o f -1 5 f e et mea n l o w g u lf .

17 3

6 1 8

I S TI N G C O M^. R C E

Ge ner al

1970 wat er b or n e c o n merce f o r WRP A 9 water wa ys is s ho wn b y c o m m o dit y 

cate g o rie s o n ta bl e 65. T hese m o ve ments ar e dis c u sse d i n di vi d u all y i n 

s ucc ee di n g par a gra p hs.

I nl a n d C o m merce

Grai n

T he o nl y si g nific a n t s h all o w- d ra ft gr ai n m ove me nts i n WRP A 9 

c o nsist pri m aril y of n ort h b o u n d s o y bea ns o n t he Atc haf ala ya Ri v er a n d 

west b o u n d t hr o u g h m ove me nts of fee d gr ai n s o ve r t he GI W W de sti n e d f o r 

Te xas.

C oal

S h all o w - draft c oal m ove me nts wit hi n WRP A 9 are c o nfi ne d t o w est ­

b o u n d t hr o u g h te ws o n t he GI W W de sti ne d f o r st ea m -ele ct ri c ge ne rati n g 

pl a nts i n Te xas. T hese m ove me nts or i gi n at e al m ost e x cl usi v el y o n t he 

O hi o Ri ve r S yste m a n d reac h t he GI W W vi a t h e Mississi p pi Ri v er a n d t he 

M or gan Cit y - P o rt Alle n Alte r n at e r o ut e.

Petr ole u m

Cr u de petr ole u m a n d re fi ne d pr o d u cts acc o u nt f o r 66 perc e nt of all 

t o n na ge m o vi ng o n WRP A 9 water wa ys i n 197 0. Mo ve me nts u n der t h is ca te ­

g or y c o nsist e d mai nl y of cr u de petr ole u m west b o u n d t o re fi n eri e s i n 

Te xas a n d s o ut h w est er n L o uisia n a, a n d east b o u n d m ove me nts of re fi ne d 

pr o d ucts, p ri n ci p all y gas oli ne a n d re si d u al f u el oil.

T his p atte r n of m ove me nts is a f u ncti o n of t he distri b uti o n of 

re fi n er ie s a n d oil fie l d s i n t he G ulf C oast ar ea a n d is e x p ecte d t o 

o btai n wit h littl e c ha n ge f o r t he e nti re st u d y pe ri o d.

Ce ment, St o ne, Sa n d, a n d A g gre gat e ( CS S A)

As s he wn o n ta ble 65, t he GI W W, t he L o wer At c ha fal a ya Ri ver, a n d 

t he Calca sie u Ri v er s u p p ort t he pre p o n d era n ce of WRP A 9 m o ve ments i n 

t h is cate g or y. T he lar g e maj orit y of t h es e m ove me nts ar e c o m pri se d of 

u n ma n uf act ure d mari ne s h ells w hic h or i gi n at e at re ef s l oc ate d S o ut h 

of M or gan Cit y i n t h e Atc haf ala ya Ba y, a n d i n La ke P o nt c h artrai n ne ar 

Ne w Orlea ns. T hese s h ell s fi n d a va ri et y of uses i ncl u di n g r oa d 

c o nstr u cti o n a n d mai nte n a nce, oil fie l d c o nstr ucti o n, a n d as ra w m at erial 

f o r t he pr o d u cti o n of P o rtl a n d ce me nt. Als o i ncl u d e d i n t he CSS A 

cat e g o r y ar e s m all er a m o unts of b u il d i n g ce me nt, sa n d, a n d gra vel use d 

i n ge n eral c o nstr ucti o n.

S ul p h ur

Virt u all y all WRP A 9 m ove me nts of s ul p h u r c o nsist of b ul k li q ui d

175
5 4- 2 3 9 0 - 7 5

6 2 1

s hi p m e nts o n t h e GI W W, ori gi n ati n g i n t he vic i n it y of Lar ose, L o uisia n a, 

a n d de sti n e d f o r t h e Bea u m o nt, Te xa s, ar ea.

Ir o n a n d St eel

O ver 90 perc e nt of ir o n a n d ste el i m pr o ve me nts wit hi n WRP A 9 occ u r 

o n t he GI W W. Pri m aril y, t h es e m ove me nts ar e petr ole u m -r el at e d m at erials, 

s uc h as d ril l pi p e a n d ca si n g, a n d pi peli n e t u bi n g, ori gi n ati n g o n t he 

O hi o Ri v er a n d Great La kes S yste ms a n d de sti n e d f o r p o rt s or oil fi el d 

s u p pl y de p ots l o cate d o n t h e L o uisia n a a n d Te xas se cti o n of t he GI W W. 

I n d u st ri al C he micals

M ove me nts u n der t h is cate g or y c o nsist i n t he mai n of b asic c he mi ­

c als, be nz e ne, t ol u e n e, al c o h o ls, a n d ca us ti c s o da east b o u n d o n t he 

GI W W i n t hr o u g h t o rs fr o m c he mical a n d petr oc he mical pr o d u cti o n f a c ili ­

ti e s i n s o ut h west L o uisi a na a n d ea st er n Te xas. M ost of t h is t o n na ge 

e nte rs t he Mis sis si p pi Ri v er at Bat o n R ou ge vi a t he M C- P A R o ute a n d is 

eit h e r m ove d u p ri v er or e x p orte d fr o m t h at p o i nt.

A gric ult u ral Qie mic als

A gric ult u ral c he mic al t o n n a ges ar e ma de u p of vari o us t y p es of 

f e rti li z e r s m o vin g i n t hr o u g h t o s o n t h e GI W W. T hese m o ve ments are 

pre d o mi na ntl y bet wee n p oi nts o n t he Te xas G ulf c o ast a n d p oi nts o n t he 

U p per Mis si ssi p pi a n d O hi o Ri ve rs.

Ot h er

M ove me nts u n der t h is hea di n g o n WRP A 9 water wa ys c o nsist al m o st 

e x cl usi v el y of b ul k s alt ori gi n ati n g at mi nes l o cate d o n Ba yo us P etit 

A nse a n d C arli n, a n d ne ar t he GI W W bet wee n mil es 100 a n d 140 West of 

Har ve y L oc k. T his s alt m oves t o p oi nts o n t h e Mis si ssi p pi Ri v er S yste m 

a n d t h e GI W W ea st of Ne w Orlea ns.

Ge neral Car g o

Si g ni fi ca nt ge n eral car g o t o n n a ges m o vin g wit hi n WRP A 9 i ncl u d e 

s hi p m e nts of s uc h ite ms as mi scella ne o u s ma n u fact ur e d g o o d s, pref or m e d 

c o nc rete pr o d ucts, scra p metal, d rilli n g w at er, water wa y i m pr o ve me nt 

m at erials, a n d pa pe r pr o d ucts.

C oast wise Tra de

As see n i n ta ble 65 , t he o nl y si g nific a nt c oa st wise tr a f fic i n ­

v ol vi n g WRP A 9 is c o m pris e d of petr ole u m a n d c he mic al t o n n a ges bei n g 

s hi p pe d fr o m La ke C ha rles t o t he East a n d West c o asts of t h e U nite d 

State s. T hese t w o cate g o rie s acc o u nte d f o r o ve r 98 pe rc e nt of 1970 

c oa st wise m o ve ments i n WRP A 9. A b o ut 30 pe rc e nt of t he petr ole u m 

s hi p m e nts c o nsist of cr u de oil wit h t he re mai ni n g 70 pe rc e nt ma de u p 

of t he vari o us re fi ne d pr o d ucts, p ri n ci p all y ga s oli n e. T he b ul k of 

t he c he mical m o ve ments ar e re pr es e nte d b y s hi p m e nts of s o du m h y dr o xi d e 

(c a u stic s o d a).

178
6 2 2

F ore i g n Tra de

T he b ul k of t he f orei g n tr a d e c o n d u cte d i n WRP A 9 is c o m pri se d of 

e x p ort s u n der t h e cate g o rie s of gr ai n, c o al, a n d i n d u st ri al c he micals 

s hi p pe d fr o m t he P o rt of Lake C h arl es.

Virt u all y all of t he gr ai n e x p o rts ar e re pr es e nte d b y ri c e. T o nna ge e x p orte d i n t h e " C oal" cate g or y is c o m pris e d e x cl usi v el y of 

calci n e d c o ke, w hile t h e i n d u st ri al c he mic al s hi p me nts c o nsist mai nl y 

of u n cl as si fi e d ba si c c he mic als. Ot h er si g nific a nt m o ve ments i ncl u d e 

e x p orte d pa per, re si d u al f u el o il, a n d l u br ic a n ts, a n d i m p orte d n o nmetal li e mi n er als. I n a d diti o n t o t he a b o ve c o m nerce i n v ol vi n g La ke 

C h arl es, a s mall a m ou nt of f or ei g n c o m merce is s u p p orte d b y t he P ort of 

M or gan Cit y. T his tr a d e is c o m prise d pri m aril y of i m p ort e d fi s h a n d 

s h ell fi s h , a n d e x p orte d ir o n a n d st e el a rti cle s.

V ESS E L C O MP OSI TI O N

Ta ble 6 6 s u m marizes c o m n ercial ve ss el m ove me nts o ver WRP A 9 w at er ­

wa ys. De scri pti o ns of t y pi ca l ve ss el s a n d te w c o m p ositi o n are c o ntai ne d 

i n t he Re gi o n al S u m mar y.

F UT U RE NE E DS

Pr o s pe cti ve C o m merce

Water b or ne c o m merce i n t he sele ct e d c o m mo dit y cate g o rie s was 

pr oj ecte d i n acc or da nce wit h i n dice s of o ut p ut de vel o pe d f o r t he a p pr op ri ate maj or i n d u str y gr o u ps. T hese i n di ce s ar e s he wn o n ta ble 6 7. I n 

ge ne ral, t he Pr o gra m A i n di ce s re pr es e nt O B E RS' f o re ca st of ec o n o mic 

gr o wt h f o r t he i n di vi d u al W RP A's wit hi n t he L o wer Mis sis si p pi Re gi o n. 

Pr o gra m B i n dice s were de vel o pe d t o re fl e ct a re gi o n al gr o wt h i n e m pl o yme nt e q u al t o t he nati o nal a ve ra g e, 1. 4 pe rc e nt!./. A p pli cati o n of t h es e 

i n dice s t o t he bas e ye ar t o n na g es s h o w n pr e vi o usl y o n ta bl e 6 5 yiel d 

f ut ure le vels of c o m merce as s he w n i n a g g re g ate o n ta ble 6 8.

T hese le ve ls are de si g nate d as t he gr os s nee ds of t h e ar ea. N ote t h at 

t he pr oj ecti o ns ar e e x p res se d i n t o n - mile s f o r t he water wa ys a n d i n 

s h ort t o n s f o r t h e p ort s.

--------------------------------------------------------------------------------------------------------

— F u rt h er di sc us si o n of t h es e i n dice s a n d t h eir de ri vati o ns is c o ntai ne d 

i n A p pe n di x B, Ec o n o mics.

1 79

6 2 4

a b le 6 7 - Ec o n o mic F o r e c a st, W RP A 9 

I n dic e s o f P r o d u cti vit y b y M aj or I n d u str ie s

C o n m o dit y

(I n d u str y Gr o u p) Pr o g ra m 1 9 6 7 1 9 6 8 1 9 6 9 1 9 7 0 1 9 8 0 2 0 0 0 2 0 2 0

G rai n ( A g ri c ult u re ) -- 1 0 0 1 0 2 1 0 4 1 2 9 1 5 6 1 7 9

-- 1 0 0 1 0 2 1 0 4 1 2 9 1 6 8 1 9 2

C o al ( Mi ni n g, N ati o n al) 1 0 0 1 0 4 1 0 6 1 0 9 1 4 3 1 9 9 3 2 3

1 0 0 1 0 4 1 0 6 1 0 9 1 4 3 1 9 9 3 2 3

P et r ole u m ( Mi ni n g 8

R efi ni n g, A v era ge) 1 0 0 1 2 2 1 2 6 1 3 0 1 8 2 3 1 1 5 6 9

1 0 0 1 2 2 1 2 6 1 3 2 1 9 9 3 6 0 6 7 1

C SS A ( Q ua rr yi n g ) 1 0 0 1 0 5 1 0 8 1 1 2 1 6 3 3 1 7 6 1 8

1 0 0 1 0 5 1 0 9 1 1 4 1 7 9 3 6 7 7 2 9

S ul p h ur ( Q ua rr yi n g ) 1 0 0 1 0 5 1 0 8 1 1 2 1 6 3 3 1 7 6 1 8

1 0 0 1 0 5 1 0 9 1 1 4 1 7 9 3 6 7 7 2 9

Ir o n 5 Ste el

( P ri m ar y M et al s) 1 0 0 1 0 3 1 0 5 1 0 8 1 4 1 2 1 8 3 4 0

1 0 0 1 0 3 1 0 5 1 0 8 1 4 1 2 1 8 3 4 0

I n d u stri al C h e mic al s 

( C he mic al s § A ll ie d

Pr o d u ct s) 1 0 0 1 1 0 1 1 6 1 2 2 2 0 3 5 0 1 1, 1 9 8

1 0 0 n o 1 1 7 1 2 4 2 2 3 5 7 9 1, 4 1 3

ric ult u r al C h e micals

( A g ri c ult u re ) -- 1 0 0 1 0 2 1 0 4 1 2 9 1 5 6 1 7 9

-- 1 0 0 1 0 2 1 0 4 1 2 9 1 6 8 1 9 2

Ot h er C o m n o dities 

( C he mic als 5 A llie d

Pr o d u ct s) 1 0 0 n o 1 1 6 1 2 2 2 0 3 5 0 1 1, 1 9 8

1 0 0 n o 1 1 7 1 2 4 2 2 3 5 7 9 1, 4 1 3

M is c ell a n e o u s C o m mo diti e s ( O t h er Ma n uf a ct u ri n g ) -- 1 0 0 1 0 6 1 1 2 1 9 5 4 8 1 1, 1 0 0

-- 1 0 0 1 0 6 1 1 3 2 1 4 5 5 6 1, 2 9 7

1 8 1

6 2 6
W at er w a or P o rt of L a k e C h arl e s P o rt of M or g an Cit y P o rt of L a k e C h arl e s P o rt of M or g a n Cit y P o rt of L a k e C h arl e s P o rt of M or g a n Cit y T O T AL T a bl e 6 8 - Pr es e n t a n d Pr os p e cti v e W at er b or n e C o n m erc e, WRP A 9 (c o n t' d ) — 1 0 7 0 — C o n m erc e Pr o gr a m A T O 7 0 0 0 7 0 7 0 " Pr o gr a m B ------ 7 0 0 0 " 7 07 1 7 C o ast wi s e 3, 4 1 9 4, 5 8 0 8, 4 7 0 1 6, 5 8 5 4, 9 8 4 9, 7 4 9 1 9, 4 5 8 F o r ei g n 1, 8 8 5 2, 6 5 2 4, 9 0 4 9, 6 0 2 2, 8 8 6 5, 6 4 4 1 1, 2 6 5 T o t al 1 7, 6 7 7 2 4, 1 0 7 4 4, 5 7 9 8 7, 2 9 0 2 6, 2 3 3 5 1, 3 0 9 1 0 2, 4 0 9 4, 1 4 7 6, 4 8 6 1 2, 6 7 7 2 5, 0 7 4 7, 0 6 7 1 4, 5 7 0 2 9, 3 7 7 2 1, 8 2 4 3 0, 5 9 3 5 7, 2 5 6 1 1 2, 3 6 4 3 3, 3 0 0 6 5, 8 7 9 1 3 1, 7 8 6
Net Nee d

Ta ble 6 9 s u m marizes t he net na vi gati o n ne e d s.r e q uire d t o s u p p ort 

t he WRP A c o n merce pr oj ecte d u n der Pr o gra m A a n d B o b je cti v es.

S hall o w - Dr aft C ha n nels

As s h o w n i n t he ta ble, i m pr o ve me nt of e x isti n g c ha n nel s w ill be 

re q uire d be gi n ni n g i n 1 98 0 u n der b ot h pr o gra m s. I n a d diti o n, ne w 

c ha n nel c o nstr u cti o n will be re q uire d b y t he ye ar 2 00 0 t o s ati sf y net 

nee ds.

Dee p- Draft C ha n nels

No ne w dee p c ha n nel c o nstr u cti o n will be re q uir e d i n WRP A 9 u n der 

eit h e r pr o gra m u ntil 2 0 2 0. C o nti n ue d gr o wt h i n t he P o rt of La ke C h arl es, 

h o we ver, will gi ve ri s e t o net nee ds i n i m pr o ve me nts t o e x isti n g c ha n n els 

at t h at p o rt as ea rl y as 1 9 8 0.

L ocks

By 1 9 8 0, pr oj ecte d c o m merce o ve r t he G1 W W u n der b ot h Pr o gra ms A 

a n d B will e xcee d e x isti n g s h all o w - d ra ft l oc k ca pa citi es i n WRP A 9.

T he a m ou nt of t he nee de d a d diti o nal ca pa cit y i n t he yea rs 1 9 8 0, 2 0 0 0, 

a n d 2 0 20 w ill be 1, 0 0 0, 0 0 0 t o ns, 5 8, 7 0 0, 0 0 0 t o ns, a n d 1 8 1, 4 0 0, 0 0 0 t o ns, 

re s p ec ti ve l y, u n der Pr o gra m A c rit e ria , a n d 5, 9 0 0, 0 0 0 t o ns, 7 7, 4 0 0, 0 0 0 

t o ns, a n d 2 2 3, 9 0 0, 0 0 0 t o n s u n d er Pr o gra m B.

Har b ors a n d P o rts

T here ar e n o net har b o r or p o rt nee ds pr oj ecte d t o occ ur i n WRP A 9 

d uri n g t he st u d y peri o d.
Ite m p- d ra ft C h a n nels ( 1 0 ^ T o n- M ile s) Ne w C h a n nels Gr os s Nee d E xis ti n g S u p pl y Net Nee d E xisti n g F a c iliti e s I m pr o ve me nt Gr os s Nee d E xisti n g S u p pl y Net Nee d S h all o w - d ra ft C h a n nels ( 1 0 T o n- M ile s) Ne w C h a n nels Gr os s Nee d E xisti n g S u p pl y Net Nee d E xisti n g F a c iliti e s I m pr o ve me nt Gr oss Nee d E xisti n g S u p pl y Net Nee d D ee p- d ra ft N a v i g ati o ns L oc ks ( # S hi p L o c ka ges ) Gr os s Nee d E xisti n g S u p pl y Net Nee d S h all o w - d ra ft N a v i g ati o n L oc ks ( 1 0 T o n s) Gr oss Nee d E xisti n g S u p pl y Net Nee d T a ble 6 9 - N a vi g ati o n Ne e d s, WRP A 9 Pr o g ra m A Pr o gra m B 1 9 7 0 l W S 27) 00 2 02 0 T W ------ 2 0 0 0 ~ 2 U 2 0----- 1 7 2. 2 2 3 6. 4 4 3 8. 7 2, 1 1 0. 4 2 5 7. 4 5 0 5. 0 2, 4 7 4. 5 1 7 2. 2 2 3 6. 4 4 3 8. 7 8 6 0. 4 2 5 7. 4 5 0 5. 0 1, 0 0 9. 5 1, 2 5 0. 0 1, 4 6 5. 0 1. 6 4 3 7. 7 8 5 8. 5 1. 9 5 0 3. 9 1, 0 0 7. 2 1. 6 4 3 7. 7 8 5 8. 5 1. 9 5 0 3. 9 1, 0 0 7. 2 , 4 8 5. 6 1 2, 3 3 8. 2 2 3, 4 3 3. 1 4 6, 4 5 2. 8 1 3, 4 2 5. 9 2 8, 5 3 0. 7 5 4, 4 2 5. 3 , 4 8 5. 6 1 2, 3 3 8. 2 2 3, 2 7 2. 3 4 6, 1 3 1. 4 1 3, 4 2 5. 9 2 8, 3 4 7. 5 5 4, 0 5 2. 2 1 6 0. 8 3 2 1. 4 1 8 3. 2 3 7 3. 1 8 8. 6 2 1, 0 3 4. 7 4 1, 5 7 5. 9 9 6. 7 2 5, 7 6 9. 9 4 6, 7 0 2. 0 8 8. 6 2 1, 0 3 4. 7 4 1, 5 7 5. 9 9 6. 7 2 5, 7 6 9. 9 4 6, 7 0 2. 0 N O NE N O NE 4 5. 8 6 7. 8 1 2 5. 5 2 4 8. 2 7 2. 7 1 4 4. 2 2 9 0. 7 6 6. 8 6 6. 8 6 6. 8 6 6. 8 6 6. 8 1. 0 5 8. 7 1 8 1. 4 5. 9 7 7. 4 2 2 3. 9

6 3

» : » “ S S) $ S ° P t R E C K O N

C O u’ P E H E N Sl V E S T U D Y

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

• R A - 9

F i G U » E , 0
6 3 2

1 0
6 3 3

R P A 1 0

GE NE R AL D ES C RI PTI O N

WRP A 10 is made u p of all or p ar ts of 17 pa ris he s i n e xtre me 

s o ut h ea ste r n L o uisia n a. It re pr es e nts a b o ut 8 perc e nt of t he st u d y 

are a a n d c o v ers 7,-729 s q u are miles. A b o ut 20 pe rc e nt of t he t o ta l 

L o uisia na la n d ar ea is c o ntai ne d wit hi n t h is WRP A. T he Mis sis si p pi 

Ri v er di vi de s WRP A 10 i nt o t w o p art s, wit h a b o ut t w o-t hir d s of t he are a 

l yi n g s o ut h of t he ri v er. La n d wit hi n WRP A 10 ca n be cate g o riz e d 

t o p o gr a p hi call y i nt o 3 dis ti n ct re gi o n s, t h e all u via l ri d ge s a djac e nt 

t o t h e Mis sis si p pi Ri ver, t he va st s wa mps a n d mars hes al o n g t he c o ast, 

a n d t h e w o ode d h ill s n o rt h of La ke P o nt c h artr ai n. T he s wa nps a n d 

mars hla n ds c o m pri se t h e gr eate st p o rti o n of WRP A 10, w hile m ost of t he 

c o m mercial de vel o p me nt a n d p o p ulati o n is c o nc e ntrate d al o n g t he all u via l 

ri d g es, w hic h e xt e n d f o r as much as 5 miles fr o m eac h ri v er ba n k.

WRP A 10 has a war m, h u mi d cli mate t y pic al of t he ce nt ral c o ast of 

t he G ulf of Me xic o. Mil d wi nte rs a n d h ot s u m mers p re v ail, wit h a ver a ge 

te m per at ures ra n gi n g fr o m 55 de gr ees F. i n Ja n uar y t o 83 de gr ees F. i n 

J u l y. N or mal a vera g e a n n ual ra i n fa ll a m o u nts t o a b o ut 60 i nc he s.

E xisti n g Ec o no mic De vel o p me nt

Ec on o mic a cti vit y i n WRP A 10 is c o nc e ntrate d i n t h re e pri me are as: 

Mi ner al pr o d ucti o n, petr oc he mical ma n uf act uri n g, a n d t he a cti vit ie s 

ce nte re d i n t he P o rt of Ne w Orlea ns. T otal val ue of mi n eral pr o d ucti o n 

i n WRP A 10 ( p ri m aril y oil a n d g a s), re pr es e nts o v er 50 perc e nt of t he 

sta te t o ta l. I n a d diti o n t o t he n u mero us c o astal a n d offs h or e oil a n d 

gas fi el d s i n t h e ar ea, ot he r mi n erals of c o m mercial i m p orta nc e i ncl u d e 

s alt, s ul p h ur, sa n d a n d gr a v el, a n d mari n e s h ell.

T he pre se n ce of t h es e mi n erals c o m bi ne d wit h t he Mis sis si p pi Ri v er 

as a s o urce of c o oli n g a n d pr o ces s water has att ra cte d a va st c o m ple x 

of c he mical a n d petr oc he mical pl a nts t o t h e ba n ks of t he ri v er bet wee n 

Ne w Orle a ns a n d Bat o n R o u ge. T otal val ue of s uc h i n ve st m e nts wit hi n 

WRP A 10 has a m o u nte d t o a b o ut $1.5 billi o n si nc e 194 6.

T he P ort of Ne w Orlea ns, w hic h ra n ks sec o n d i n t he nati o n, ha n dle d 

o ver 123 milli o n t o n s of c o m merce i n 1970 w hic h pr o d uce d a b o ut a h alf 

billi o n d o ll ar s i n dir e ct re ve n ues. A p pr o xi mat el y 50 perc e nt of t h is 

c o m merce was c o m prise d of mi n erals a n d c he mi cal s. A gric ult u re, alt h o u g h 

of de cli ni n g ec o n o mic i m p orta n ce, s till acc o u nts f o r a b o ut 14 pe rc e nt of 

la n d usa ge wit hi n WRP A 10. A b out 40 pe rc e nt of t he a g ri c ult ura l la n d s 

ar e de v ot e d t o cr o p s, wit h t he re mai n der c o m prise d pri n ci p all y of far m 

f o re st s a n d pa st ur e.

189
6 3 4

d d iti o n all y, t he c o astal a n d of fs h or e are as of WRP A 10 s u p p ort o ne 

of t he n ati o n's la r g e st i n d u st ri al a n d f o o d fi s h eri e s. I m p orta nt s p ecies 

i ncl u d e me n ha de n, s hri m p, o y st er s, fl o u n de r, dr u m, a n d wea kfis h.

T he maj or p o p ulati o n ce nt er wit hi n WRP A 10 is t he Ne w Orlea ns S MS A, 

w hic h c o m prise s 80 pe rc e nt of t he WRP A 10 p o p ulati o n. T otal ur ba n 

p o p ulati o n wit hi n WRP A 10 has i nc re ase d fr o m 73 pe rc e nt i n 1940 t o 83 

perce nt i n 197 0, re fl e cti n g t he i n cr ea se d i n d u st ri al a cti vit y i n t he 

are a.

Tra ns p o rtati o n F a cilitie s ( E xcl u di n g Water wa ys)

Rail wa ys

Rail wa y se r vic es i n WRP A 10 ar e pr o vi d e d b y t he L o uis ville a n d 

Na s h ville Railr oa d, t h e S o ut her n Rail wa y S yste m, t he Illi n ois Ce ntr al 

Railr oa d, t h e Mis s o uri P ac ific Railr o a d C o n pa n y, t h e Te xas a n d P ac ific 

Rail wa y C o m pa n y, a n d t h e S o ut h er n P ac ific C o m pa n y.

Hi gh ways

WRP A 10 is tr a v er se d b y n u mer o us l o c al, sta te , a n d U. S., a n d 

I n te rs ta te hi g h wa y s. A li sti n g of t h o se of maj or i m p orta nce is as 

f oll o w s:

U. S. Hi gh way 51 - T his hi g h wa y r u ns i n a n o rt h -s o ut h dir ec ti o n pr o ­

vi di n g t he c o n necti o n bet wee n I n te rs ta te 10 i n 

WRP A 10 a n d I n te rs ta te 55 i n WRP A 8.

U. S. Hi gh way 60 - R u n nin g i n a n o rt h w esterl y dir e cti o n, t h is hi g h ­

way is c u rr e ntl y t h e mai n arte r y bet wee n Ne w Orle a ns 

a n d Bat o n R o uge.

U. S. Hi gh way 90 - R u n ni n g i n a n o rt he aste rl y dir ec ti o n, t h is hi g h wa y 

pas ses t hr o u g h Ne w Orle a ns lea di n g i nt o t he c o astal 

mars hes of L o uisia na.

U. S. Hi gh way 190

I n te rs ta te 10

I n te rs ta te 12

On t he n ort h er n si de of La ke P o ntc ha rtrai n, U. S. 

Hi gh way 190 r o u g hl y p ara ll els t h e s h or eli n e.

- P ar alleli n g U. S. Hi gh way 61, 

t hr o u g h Ne w Orlea ns.

- C u rre ntl y u n der c o nstr u cti o n, 

p ara ll els U. S. Hi gh way 190.

I n te rs ta te 10 pa sse s

I n te rs ta te 12 r o u g hl y

Airli n es

WRP A 10 is ser ve d b y M oisa nt I nte r n ati o na l Air p ort l oc ate d j u st 

west of Ne w Orle a ns i n t he t o w n of Ke n ner. T his fi el d is e q ui p pe d t o 

ha n dle all na ti o n all y a n d i nte r n ati o n all y o p er ati n g air c ra ft n o w i n

190
6 3 5

r v ic e. I n a d diti o n, st u die s ar e p re s e ntl y u n der w a y re ga r di n g e x p a nsi o n o f t h is f a c ilit y o r c o n st r u cti o n o f a ne w fie l d i n or d er t o acc o mm o date a nti ci p ate d a d v a nc e me nts i n f u t u re c o m mercial air c r a ft.

Pi p eli n es

Wit hi n WRP A 1 0 are a la r g e n u m ber of o il a n d gas pi p eli n e s, wit h 

si z e s ra n gi n g wi del y fr o m s m all l o c al c oll e cti o n li n e s of 4-i n c h dia mete r or has u p t o la r g e i n t e r st ate tr a n s m is si o n li n e s o f 3 0 -i n c h dia m ­

ete r.

E XI S TI N G N A VI G A TI O N I MP R O VE ME NTS

Ge ner al

Ta ble 7 0 p re se nts a li s t a n d b rie f d e s c ri pti o n o f e xis ti n g na vi ga ­

ti o n fe at u re s wit hi n WRP A 1 0. D et aile d i n f o r m ati o n may be f o u n d i n 

A p pe n di x D, I n ve nt or y o f F a ciliti e s.

S h all o w- D ra ft C ha n nels

As is t h e ca se i n WRP A 9, t h e G ulf I n tr a c o a sta l Water wa y is t h e 

maj or c o m p o ne nt i n t h e s h all o w - d ra ft n a vi g ati o n net w o r k l o ca te d wit hi n 

WRP A 1 0. Ma ny of t h e c h a n nels ar e ra t h e r s m all di m e n si o n all y d ue t o 

t h e fa ct t h at t h e y pr e d o m i n at el y se r v e c r a ft ot h er t h a n b ar g es, s uc h as 

fi s h i n g b o ats, o il fie l d cre w b o ats, a n d re c re ati o n al c r a ft, b y pr o ­

vi di n g ac ce ss f o r t h es e b o at s t o t h e G ulf o f Me xic o. Mi n er al s, p a rti c ­

ula rl y petr ole u m, c o n sti t u te t h e m aj orit y o f m o ve me nts f o r m ost WRP A 1 0 

water wa ys, re fle cti n g t h e n at u ra l re s o ur ce o ri e nte d ec o n o my o f t h e ar ea

I n a d diti o n t o t h e c o n m er cial water wa ys, WRP A 1 0 als o e nj o ys a n 

i n tri c ate s yste m of pi p eli n e a n d dr ai na ge c a n als, ma n y o f w hic h s u p p ort 

a c o ns i d er a b le a m o u nt o f tr a f fi c b y c o m m ercial fi s hi n g a n d re c re ati o n al 

c r a ft.

De e p- Draft C h a n n els

T he I n ne r Har b or N a vi g ati o n (I n d u str ia l) Ca n al e xte n d s fr o m t h e 

M is si ssi p pi Ri ver at a p oi n t 9 2. 6 mile s A. H. P. a cr o ss t h e cit y of Ne w 

Orle a n s t o La ke P o ntc h art ra i n, a dista n c e of 5. 5 m il e s. A l oc k is 

l o ca te d 2, 0 0 0 fe et fr o m t h e ri v e r e n d a n d o pe rate d, t o ll fr e e, o n a 

2 4- h o ur b a sis. A t u r n i n g b a si n, 1, 0 0 0 fe et s q ua re b y 3 0 fe et de e p, is 

1. 5 mile s fr o m t h e ri v e r a n d i m me diatel y s o ut h of t h e Fl o ri d a A ve n ue 

Bri d ge. T he p orti o n of t h i s ca nal bet w ee n t h e I n tr a c o a sta l Water wa y 

a n d t h e M is si ssi p pi Ri v er, i n cl u d i n g t h e l o c k a n d t w o b ri d g e s, is o p er ­

ate d b y t h e U. S. Ar m y C or ps of E n g i n ee rs. A t h ir d bri d g e i n t h is re ac h 

is o p er at e d b y t h e L o ui si a n a Sta te De p art m e nt o f Hi g h w a ys.

1 9 1

5 4 - 2 3 9 0 - 7 5 - 4 1
6 3 6

T h e M i s s i s s i p p i R i v e r - G u l f O u t l e t ( M R - G O ) a f f o r d s a t i d e w a t e r 

o u t l e t t o t h e G u l f t h a t i s a b o u t 3 7 m i l e s s h o r t e r t h a n t h e M i s s i s s i p p i 

R i v e r r o u t e . T h e p r o j e c t c o n s i s t s o f a s h i p c h a n n e l 3 6 f e e t d e e p a n d 

5 0 0 f e e t w i d e e x t e n d i n g a p p r o x i m a t e l y 7 6 m i l e s i n a l a n d a n d w a t e r c u t 

f r o m t h e j u n c t i o n o f t h e I n n e r H a r b o r N a v i g a t i o n C a n a l ( I H N C ) a n d t h e 

G u l f I n t r a c o a s t a l W a t e r w a y ( G I W W ) i n N e w O r l e a n s t o t h e - 3 8 - f o o t c o n t o u r 

i n t h e G u l f . J e t t i e s f o r t h e r e d u c t i o n o f s h o a l i n g , a t u r n i n g b a s i n , 

a n d a l o c k a n d c o n n e c t i n g c h a n n e l w i t h t h e M i s s i s s i p p i R i v e r a r e s a l i e n t 

f e a t u r e s o f t h e p r o j e c t .

L o c k s

T a b l e 7 0 c o n t a i n s a l i s t o f t h e l o c k s w i t h i n W R P A 1 0. A l l b u t t h e 

I H N C l o c k s a r e l i m i t e d t o s h a l l o w - d r a f t v e s s e l s .

T h e I H N C l o c k s e r v e s a s a l i n k f o r s m a l l e r s i z e d o c e a n g o i n g v e s ­

s e l s m o v i n g b e t w e e n t h e M i s s i s s i p p i R i v e r a n d t h e I H N C , t h e G I W W E a s t 

o f N e w O r l e a n s a n d t h e M i s s i s s i p p i R i v e r .

T h e A l g i e r s a n d H a r v e y L o c k s p r o v i d e t h e c o n n e c t i o n b e t w e e n t h e 

M i s s i s s i p p i R i v e r a t N e w O r l e a n s a n d t h e G I W W W e s t o f N e w O r l e a n s .

T h e B a y o u B o e u f L o c k o n t h e G I W W ( M i l e 9 3 W H L ) p r o v i d e s n a v i g a t i o n 

t h r o u g h t h e l e v e e s y s t e m w h i c h p r o t e c t s a r e a s e a s t o f M o r g a n C i t y , 

L o u i s i a n a , f r o m A t c h a f a l a y a R i v e r f l o o d w a t e r s .

O s t r i c a L o c k a n d E m p i r e L o c k , b o t h o p e r a t e d b y t h e S t a t e o f L o u i ­

s i a n a , a r e l o c a t e d b e t w e e n t h e H e a d o f P a s s e s a n d t h e l o w e r p o r t l i m i t s 

o f N e w O r l e a n s . T h e s e t w o s m a l l l o c k s p r o v i d e p a s s a g e f o r c r e w b o a t s , 

f i s h i n g b o a t s , s m a l l b a r g e s , a n d r e c r e a t i o n a l c r a f t . O s t r i c a L o c k 

( M i l e 2 5 . 2 A H P ) i s o n t h e l e f t d e s c e n d i n g b a n k a n d c o n n e c t s w i t h B r e t o n 

S o u n d , w h i l e E m p i r e L o c k ( M i l e 2 9 . 5 A H P ) o n t h e r i g h t b a n k , c o n n e c t s 

w i t h t h e G u l f o f M e x i c o v i a t h e E m p i r e W a t e r w a y .

P o r t s

T h e P o r t o f N e w O r l e a n s i s t h e m a j o r d e e p - d r a f t p o r t f a c i l i t y i n 

W R P A 1 0. T h e p o r t i s l o c a t e d o n b o t h b a n k s o f t h e M i s s i s s i p p i R i v e r 

i n t h e s o u t h e a s t e r n p a r t o f t h e S t a t e o f L o u i s i a n a . T h e l o w e r l i m i t 

o f t h e p o r t i s a p p r o x i m a t e l y 8 1 m i l e s a b o v e H e a d o f P a s s e s ( A H P ) . T h e 

u p p e r l i m i t s o n t h e l e f t a n d r i g h t d e s c e n d i n g b a n k s a r e 1 0 4 a n d 1 1 5 

m i l e s , r e s p e c t i v e l y , a b o v e H e a d o f P a s s e s . T h e d i s t a n c e f r o m t h e H e a d 

o f P a s s e s t o t h e G u l f o f M e x i c o i s 2 0 m i l e s v i a S o u t h w e s t P a s s a n d 1 3 

m i l e s v i a S o u t h P a s s . I n g e n e r a l , w i t h t h e e x c e p t i o n o f t h e s m a l l 

c o m n u n i t y o f A l g i e r s o n t h e o p p o s i t e b a n k o f t h e r i v e r , t h e c i t y o f 

N e w O r l e a n s i s b o u n d e d o n t h e s o u t h b y t h e M i s s i s s i p p i R i v e r . L a k e

1 9 2
6 3 7

Ta ble 7 0 - E xisti n g N a vi g ati o n Ia yr o v e n e n ts - ^, WRP A 1 0

S h all o w- D raft C ha n nels

De pt h r a t h

fe et

Le n gt h

mile s

Re ma r ks/ Se ct i o n I n cl u d e d ^

fe et

B ara ta ri a Ba y Water w a y, La. 1 2 1 2 5 4 1. 2 Fr o m GI W W Mi. I S WHL t o G ulf o f Me xic o 

wit h si d e c h a n nel t o Gra n d I s l e, La.

Ba y o u B o nf o uc a, La. 1 0 6 0 9. 3 Fr o m Ba y o u B o nf o uc a at S li d e ll, La. t o 

t h e - 1 0-f o ot c o nt o ur o f La ke P o nt c h ar ­

tr a i n .

Ba y o u D u p re, La. 8 0 7. 3 Fr o m V i o le t, La. t o - 6 -f o ot c o nt o u r i n 

La ke B or g ne. Wi dt h 1 0 0 f e et i n La ke; 

6-f o ot X 1 0 0- f o ot X 2 0 0- f o ot t u r n i n g 

b a si n i n V i o le t.

Ba y o u Lac o n b e, La. 6 0 8. 2 C ha n nel t hr o u g h b a r i n La ke P o ntc h art ra i n 

o n l y. Re m ai n de r o f p r oje ct pr o vi d es 

o nl y s n a g a n d tr e e re m o v al t o Mile 8. 2 

at Lac o n be, La.

Ba y o u Laf o u rc h e

1 2

6 0

1 0 0

125

1 8

1 4

Z T

GI W W Mi. 3 S MI L t o Ya n kee C a n al.

Ya n kee Ca nal t o vic i n it y o f L e e ville, La. 

L e e ville, La. t o G ul f o f Me xi c o.

Ba y o us La L o utr e,

St. Mal o, a n d

Y scl o s k e y, La.

3 0

4 0

4 0

4 0

0. 2 5

6. 3

I S

28,55

H o pe dale, La. t o j u n cti o n o f Ba y o us 

La L o utre 6 St. Mal o.

Bar C h a n nel, La ke B or g n e at S h ell Beac h 

Ba y o u S t. Mal o, La ke B or g n e t o Ba y o u 

La L o utr e.

Ba y o u La L o utr e, El oi Ba y t o Ba y o u St. 

Mal o.

Ba y o u S e g n ette Water wa y, La. 6 0 1 2. 2 Fr o m C o n pa n y Ca n al at West we g o, La. t o 

GI W W, Mi. 1 5 W HL.

Ba y o u Te rre b o n n e, La. 6 N ot 2 4. 1

S p e cifie d

Fr o m B us h Ca nal ( Mi. 1 2. 9) t o H o u na, La.

C h ef u ncte Ri ve r a n d B o g ue F ali a, 

La. 1 0 1 2 5 3. 5

8 N ot 1 1. 5

S p e cifie d 1 5. 0

La ke P o nt d ia rt ra i n t o vic i n it y of 

M a d is o n v ille, La.

Gra n d Ba y o u P as s, La. 6 0 . 5 Bar C ha n nel o n l y.

G ulf I ntr a c o a sta l Water wa y: 

M is si ss i p pi Ri v er t o

La ke B or g n e Li g ht 2 9 1 2 1 5 0 3 3 T his s e cti o n als o i n cl u d es a n alt e r n at e

9 - f o ot X 1 0 0- f o ot r o ute t hr o u g h La ke 

P o ntc h art ra i n.

M is si ss i p pi Ri v er t o 

Atc ha fala y a Ri v er 1 2 1 2 5 9 5. 5

1 2 8. S

1 9 3
6 3 8

Ta ble 7 0 - E xisti n g N a vi g ati o n I m pr o v e m e nts ^, WRP A 1 0 (c o nt' d )

S h all o w - p ra ft C ha n nels

De pt h

fe et

' Wi dt h

fe et

le n gt h

miles Re m ar k s/ S ecti o n I n cl u d e d ^

H ou ma N a vi g ati o n C a n al, La. I S I S O 3 6. 6 Fr a n H o u ma, La. t o Terre b o n ne Ba y.

L ittl e C aill o u Ba y o u, La. 4 0 2 0 L ittl e C aill o u Ba y o u fr o m Ba y o u T e rr eb o n ne t o R o bi ns o n C a n al.

Mic h o u d C a n al, La. 1 8 - S O 8 0 0 l. S N o n - p r oje ct c h a n ne l, at p re s e nt. A ut h ori z e d f o r e nla r g e m e nt.

Water wa y fr o m E m pire, La. t o 

t h e G ul f o f Me xic o 8 0 1 0 Fr a n E m pir e, La. t o - 9 -f o ot c o nt o u r i n 

t h e G ul f o f Me xi c o.

Water wa y fr o m I n tr a c o a sta l 

Water wa y t o Ba y o u D ulac, 

La. 1 0

4 0

4 5

14 Ba y o u ( Xilac t o vic i n it y of H o u na, La.

GI W W, Mile 5 9 MI L t o H oi ma N a vi g ati o n 

Ca nal.

De e p- D raft C ha n nels

I n ne r Ha r b or N a vi gati o n 

Ca n al (I H N C) 3 2 3 0 0 S. 5 Fr o m M is si ss i p pi Ri v er t o La ke P o ntc ha rr 

tr a i n .

M is si ss i p pi Ri ve r - G ulf 

O utl et, La. 3 6 S O O 7 S. 4 Fr o m I H N C t o t h e - 3 8 -f o ot c o nt o u r i n 

t h e G ul f o f Me xic o.

P o rts

P o rt of Ne w O rl ea ns, La. 4 0 1, 0 0 0 1 4 7 B ot h ba n ks o f t h e M is si ssi p pi Ri ve r 

fr o m Mile 1 2 7 a b o ve hea d of Pa sse s t o 

M o ut h o f P as se s.

3 2

3 6

1 2

3 0 0

S O O

1 2 S

S. S

S. S

Fr o m M is si ss i p pi Ri v er t o La ke P o nt c h ar - 

tr ai n .

Fr o m I H N C t o Ba y o u Bie n ve n ue.

GI W W fr o m Mile 0 t o Mile S. S MI L.

De pt h o v er S ill Wi dt h Le n gt h

Feet

Re ma r ks/ Se ct i o n I n cl u d e d ^ L oc ks fe et fe et

Al gie rs L oc k 1 3 7 5 8 0 0 O pe ne d t o N a vi g ati o n i n 1 9 5 6

Ba y o u B oe uf 1 3 7 5 1 1 56 O pe ne d t o N a vi g ati o n i n 1 9 S4

E m pir e L oc k 1 0 4 0 2 0 0 O pe ne d t o N a vi g ati o n i n 1 9 48

Har v e y L oc k 1 2 7 5 4 2 S O pe ne d t o N a vi g ati o n i n 1 9 3 4

I n ne r Ha r b or Na vi gati o n 

Ca n al L oc k (I H N C) 3 1. S 7 5 6 4 0 O pe ne d t o N a vi g ati o n i n 1 9 2 3

O st ri c a L oc k 1 0 4 0 2 5 0 O pe ne d t o N a vi g ati o n i n 1 9 5 2

1/ D et ail e d i n f o r m atiai o n e xis ti n g p r o je cts may be f o u n d i n A p pe n di x D, I n ve nt or y o f F a cili tie s. 

2 / P oi nts c n t h e GI W W ar e e x pr es se d as mi le s e a st or we st of Har ve y L oc k i n Ne w Orlea ns

1 9 4

6 4 0

P o n t c h a r t r a i n a n d t h e R i g o l e t s , a c o n n e c t i n g l i n k b e t w e e n L a k e 

P o n t c h a r t r a i n a n d L a k e B o r g n e , a r e t h e n o r t h e r n b o u n d a r y . T h e I n n e r 

H a r b o r N a v i g a t i o n ( I n d u s t r i a l ) C a n a l i n t h e c i t y o f N e w O r l e a n s c o n n e c t s 

t h e M i s s i s s i p p i R i v e r w i t h L a k e P o n t c h a r t r a i n , t h e M i s s i s s i p p i R i v e r 

G u l f Q j t l e t a n d t h e G u l f I n t r a c o a s t a l W a t e r w a y e a s t o f N e w O r l e a n s .

L i m i t s o f t h e p o r t e n c o m p a s s a l l o f t h e p a r i s h o f O r l e a n s a n d t h e 

r i v e r f r o n t a g e o f t h e p a r i s h e s o f J e f f e r s o n a n d S t . B e r n a r d . T h i s 

i n c l u d e s t h e t o w n s a n d c o m m u n i t i e s o f K e n n e r , H a r a h a n , S o u t h p o r t , A r a b i , 

C h a l m e t t e , M e r a u x , a n d V i o l e t o n t h e l e f t b a n k ; a n d A v o n d a l e , B r i d g e 

C i t y , W e s t w e g o , M a r r e r o , H a r v e y , G r e t n a , a n d A l g i e r s o n t h e r i g h t b a n k . 

T h e f r o n t a g e f o r d e e p w a t e r v e s s e l s w i t h i n t h e p o r t l i m i t s i n c l u d e s 

a p p r o x i m a t e l y 5 7 m i l e s a l o n g t h e r i v e r b a n k s , 1 1 m i l e s o n t h e I n n e r H a r b o r 

N a v i g a t i o n ( I n d u s t r i a l ) C a n a l , a n d a p p r o x i m a t e l y 7 8 m i l e s o n t h e 

' M i s s i s s i p p i R i v e r - G u l f O u t l e t .

I V © h u n d r e d a n d n i n e t y - f i v e p i e r s , w h a r v e s , a n d d o c k s a r e c o n t a i n e d 

w i t h i n t h e P o r t o f N e w O r l e a n s . T h e s e a r e c a t e g o r i z e d b y u s e i n t a b l e 7 1 

b e l o w :

T a b l e 7 1 - P o r t o f N e w O r l e a n s F a c i l i t i e s

P r i m a r y P u r p o s e f o r W h i c h U s e d N u m b e r

C a r g o h a n d l i n g :

B a r i t e a n d d r i l l i n g m u d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0

B u l k c e m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

C o n c r e t e p r o d u c t s ( p r e s t r e s s e d ) . . . . . . . . . . . . . . . . . . . . . . . . . 3

D r y b u l k c o m m o d i t i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

F o r e i g n a u t o m o b i l e s a n d r o c k e t s t a g e s . . . . . . . . . . . . . . . . . . . 2

G e n e r a l c a r g o - i n f o r e i g n a n d d o m e s t i c t r a d e s . . . . . . . . 4 2

G r a i n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

G y p s u m r o c k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

L i q u i d h y d r o g e n a n d l i q u i d o x y g e n ( o n e e a c h ) . . . . . . . . . . 2

L u m b e r a n d b a n a n a s ( o n e e a c h ) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

M a r i n e c o n s t r u c t i o n m a t e r i a l s , s u p p l i e s , a n d

e q u i p m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4

M o l a s s e s , a l c o h o l , a n d c h e m i c a l s . . . . . . . . . . . . . . . . . . . . . . . 6

O i l w e l l d r i l l i n g e q u i p m e n t , s u p p l i e s , a n d s e r v i c e . . . 3 0

P e t r o l e u m p r o d u c t s , c r u d e o i l , p e t r o c h e m i c a l s ,

c h e m i c a l s , p h o s p h o r i c a c i d , s o d i u m s u l f i d e , a n d

s o y b e a n , f i s h , v e g e t a b l e , a n d t u n g o i l s . . . . . . . . . . . . . . . . 3 2

S a n d , g r a v e l , a n d s h e l l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5

S c r a p m e t a l , b o i l e r s l a g , a n d f e r t i l i z e r ( o n e e a c h ) 

S e a f o o d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

S t e e l a n d s t e e l p r o d u c t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

S u g a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

L a n d i n g f o r p a s s e n g e r a n d v e h i c u l a r f e r r i e s . . . . . . . . . . . . . . . . . . 6

1 9 6
6 4 1

Ta ble 1 - P ort of Ne w Orlea ns F ac ilitie s (c o nt' d)

Pri mar y P ur p ose f or Whic h Use d Nu mber

La n din g f o r s hi p ser vic e b o at s, cre ws, a n d

passe n gers fr o m ve ssels at a nc h or i n har b or ..........................

Mari ne ser vic es a n d re pairs:

F ueli n g t u gs a n d t o w b oats a n d ot h er t y pes of

s mall v e s s els ......................................................................... 

M o ori n g................................................... • ................................ 4 5

M oori ng i n c o n necti o n wit h mari ne re pair s,

c o n ver si o n, a n d o utfitti n g ............................................... 4 8

U nused fa cilitie s at ti me of s u r v e y........................................... 1

T O T A L...................... 2 95

T hirt y c o mpa nies i n t he p ort are a o perate ware h o uses ha vi n g a t otal 

of 3, 0 1 2, 4 5 0 s q uare feet of dr y st or a ge s pace a n d 3, 7 2 0, 0 0 0 c u bic feet 

of c o oler a n d fre ez er s pace; all b ut t wo of t he ware h o uses ha ve railr oa d 

c o n n ecti o n s, a n d all are ea sil y acc essi bl e t o art eri al hi g h ways.

I n a d diti o n t o t he l o n g- a n d s h o rt-t er m c o vere d st ora g e fa cilitie s 

f or water b or ne car g o, t he re are 11 l oc ati o n s, w hich pr o vi de a t otal of 

2 9. 1 acr es, i m pr o ve d a n d a v ail a ble f or o pen p v bli c st ora g e.

T wo wat erfr o nt grai n el e v at or s, wit h a t o tal ca p acit y of 1 1, 3 8 7, 0 0 0 

b us hel s, ser ve t he p ort a n d are use d pri maril y f or t he mo ve me nt of 

e x p ort grai n recei ve d b y bar ge a n d r ail. Eac h el e v at or is s u p p orte d b y 

a dj oi ni n g ra il yar ds a n d has ele ct ri ca ll y dri ve n b elt c o n ve y ors i n o verhea d gall erie s e xte n di n g fr o m ele vat or s t o d oc ksi d e.

I n a d diti o n t o t he P ort of Ne w Orlea ns, t he re are se v eral s maller 

p o rts wit hi n WRP A 10 w hich ha ve le g all y c o nstit ut e d har b or a n d ter mi nal 

a ut h oritie s. A li st of t he se is c o ntai ne d i n t he re gi o nal s u m mary.

Na vi gati o n Ai ds

T he U. S. C oast G uar d mai ntai ns all neces sar y na vi gati o n ai ds o n 

Fe d erall y c o n str u cte d c ha n nels a n d har b or s, a n d mar ks hazar ds t o 

na vi gati o n.

1 97
6 4 2

T H O RI Z E D N A VI G A TI O N I MP R O V E ME N TS

N a vi g ati o n i m pr o ve me nts a ut h o ri z e d f o r F e d era l c o n str u cti o n w it hi n 

WRP A 1 0 are s h o w n o n t a b l e 7 2.

S h all o w - D ra ft C h a n nels

T he e x is ti n g p r o j e ct f o r Ba y o u L af o u rc he was m o difie d b y t h e Ri v er 

a n d H ar b o r Act o f 1 9 6 0 t o pr o vi d e: a c h a n ne l 9 f e et de e p b y 1 0 0 f e et 

wi de fr o m G ol de n Mea d o w, L o uisia n a, t o L e e v il l e, L o uisia n a; (c o m pl et e d ) 

a c h a n nel 1 2 f e et de e p b y 1 2 5 f e et wi de fr o m t h e GI W W Mile 3 7. 2 g e n e r all y 

p a r a ll e l t o t h e e x is ti n g ba y o u, e xte n di n g t o Ba y o u La f o ur c h e bel o w 

L e e ville a n d t h e n c e t o t h e G ul f o f Me xic o; a n d a 1 2-f o ot b y 1 2 5- f o ot 

c h a n nel fr o m L e e vil le ea st w ar d t o Ba y o u Gi g ar d i n t h e v i c i n it y o f 

Gra n d I sl e , L o uisia n a.

T he Ri v er a n d H ar b o r Act o f 1 9 6 2 a ut h o ri z e d e n la r g e m e n t o f t h e 

e x is ti n g 1 2 f e et X 1 2 5 f e et GI W W bet w ee n Ne w O rl ea n s a n d t h e A tc h afa la y a 

Ri v er t o di m e n si o n s o f 1 6 f e et X 1 5 0 f e et.

T he Ri v er a n d H ar b o r Act o f 1 9 6 8 pr o vi d e d f o r a d dit i o n al o u tle t s 

fr o m t h e M is sis si p pi Ri v er at V e n ic e, L o uis ia n a, t o s h o rt e n t h e dis ta n c e 

fr o m Bret o n S o u n d e a st o f t h e ri v e r t o t h a t a re a o f t h e G ul f o f Me xic o 

West o f t h e ri v e r. T h es e o u tle t s w ill be p r o vi d e d b y e n la r g e m e n t o f 

t h e e x is ti n g c h a n n el s o f B a pti ste C o lle tte Ba y o u a n d G ra n d - Ti g re Pa ss 

t o di m e n si o n s o f 1 4 f e et b y 1 5 0 f e e t, wit h e ntr a n c e c h a n n el s o f 1 6 f e et 

X 2 5 0 f e et.

D ee p- D ra ft C h a n nels

T he A tc h afa la y a Ri v er- B a y o u C h e ne, B oe uf, a n d Bla c k p r oje ct w ill 

pr o vi d e a 2 0-f o ot de e p b y 4 0 0-f o ot wi de c h a n ne l fr o m i n d u stri a l are a s 

e a st o f M or ga n C it y, L o uisia n a, t o t h e G ul f o f Me xic o via e x is ti n g ba y o us 

a n d t h e l o w er A tc h afa la y a Ri v er. T he pri m ar y p ur p o se o f t h i s p r oje ct is 

t o pr o vi d e a n e f fi c i e n t met h o d o f tr a n s p o rta ti o n f o r la r g e p ric e s of 

m o bile o ff s h o re o il fi e l d e q ui p m e nt fr o m t h e i r b a se s o r c o n str u cti o n 

s it e s t o p oi n ts i n t h e G ulf o f Me xic o a n d els e w h ere.

E nlar g e m e nt o f t h e e x i sti n g Mic h o u d C a n al, l o c ate d i n e a ste r n 

Ne w O rl e a n s, was a ut h o ri z e d b y t h e Ri v er a n d H ar b o r Act o f 1 9 6 8. T he 

pla n o f i m p r o v e m e nt c a ll s f o r e nla r g i n g t h e c a n al fr o m t h e i n d u stri a l 

s it e s at it s he a d t o t h e GI W W a n d t h e n ce t o t h e i n te r s e cti o n o f t h e 

GI W W a n d t h e M R- G O. C h a n nel di m e n si o n s, as s h o w n o n ta b le 7 2, w ill be 

3 6 f e et X 2 5 0 f e e t, a n d w ill i n cl u d e a 3 6-f o ot X 8 0 0-f o ot X 8 0 0 -f o ot 

t u r ni n g b a si n at t h e he a d o f t h e c a n al.

1 9 8
1 9 9
6 4 4
6 4 5

L oc ks

T he Ri v er a n d Hai b o r Act of 29 Marc h 19 56, w hic h a ut h orize d t he 

c o nstr u cti o n of t he Mis sis si p pi Ri v er - G ulf O utlet, al s o a ut h orize d 

c o nstr u cti o n, w he n ec o n o mic all y j u sti fie d, of a ne w s hi p l oc k a n d 

c o n necti n g c ha n nel t o ser ve as a n a d diti o nal li n k bet wee n t he MR- GO 

a n d as a re pla ce m e nt f o r t he o b s oles ce nt I H N C l oc k w hic h pr es e n tl y is 

t he o nl y c o n necti o n bet wee n t he Mis sis si p pi Ri v er a n d t he M R- G O, t h e 

GI W W ea st of Ne w Orlea ns, a n d La ke P o ntc ha rtrai n. Te nt ati v e ali g n e me nt 

f o r t he ne w c ha n n el e xte n ds fr o m t he Mis sis si p pi Ri v er j u st s o ut h of 

Vi olet, L o uisia n a ( Mil e 83 A HP) t o t he MI- G O at Mile 54.

P o rts

T he B oar d of C o m missi o ners of t h e P o rt of Ne w Orlea ns ha ve de vel o pe d 

e xte n si v e pla ns w hic h c all f o r t he m ove me nt of m ost of t he p o rt s' f a c il ­

it i e s fr o m t h e Mis si ssi p pi Ri ver t o t he MR- GO ti d e w at er c ha n nel ge ne rall y 

i n t he vic i n it y of its i nte rs ec ti o n wit h t he I H N C a n d east wa r d f o r a b o ut 

5 mile s t o t h e 1-41 0 hi g h le vel bri d ge. T he pr o p ose d ne w f a cil it i e s ar e 

t o i ncl u d e c o nt ai ne r a n d bre a k b ul k car g o te r m i n al s, ste el te r m i n al s,

L AS H - a n d Sea Bee - t y pe bar ge c a rr ie r te r m i n al s, a b ul k car g o f a cil it y 

(alre a d y c o ns tr uc te d), a n d li g ht a n d hea v y i n d u st ri al sit e s.

E XI S TI N G O O ME R CF.

Ge neral

Water b or ne c o m merce rec or d e d f o r WRP A 10 water wa ys d uri n g 1970 is 

s he w n b y c o n m o diti es o n ta bl e 73 . I n di vi d u al c o n m o dit y m o ve ments are 

dis c u sse d i n t he f oll o wi n g par a gra p hs.

I nl a n d C o n merce

Grai n

As s h o w n o n t he ta ble, ne arl y all s h all o w- d ra ft gr ai n m o ve ments i n 

WRP A 10 i n v ol v e t he GI W W ea st of Ne w Orlea ns. T hese s hi p m e nts c o ns ist 

al m ost e nti re l y of c o m a n d s o y bea ns m o vi n g fr o m t he O hi o a n d U p per 

Mississi p pi Ri v er S yste ms t o gr ai n el e v at or s i n Pas ca g o ul a, Mis si ssi p pi, 

a n d M o bil e, Ala ba ma, f o r e ve nt u al e x p o rt or c oa st wise s hi p m e nt.

C oal

WRP A 10 i nl a n d c oal m o ve ments ar e c o n q prise d pre d o mi na ntl y of s hi p ­

me nts fr o m p oi nts o n t he O hi o Ri v er t o st ea m -ele ct ri c ge ne rati n g pl a n ts 

i n Bil o xi, Mis si ssi p pi, a n d al o n g t h e Fl ori d a G ulf C oast bet wee n 

Pe n sac ola a n d Pa na ma Cit y.

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Petr ole u m

A b o ut 75 perc e nt of s hallc w- dra ft petr ole u m mo ve me nts i n WRP A 10 

ta ke plac e i n t he p orti o n of t he area west of t he Mis sissi p pi Ri ver.

T hese m ove ments c o nsist ge n erall y of: cr u de oil m ovi ng fr o m st ora g e a n d 

gat h eri n g fa cilitie s l ocate d o n t he vari o us water wa ys t o t he GI W W f or 

ulti mate s hi p me nt t o refi n erie s l oc ate d i n wester n L o uisia na a n d i n 

Te xas a n d; refi ne d pr o d ucts (c hi efl y gas oli n e) m ovi ng ea st fr o m t hese 

re fi n erie s t o p o p ul ati o n ce nters ser ve d b y t he Mis sissi p pi Ri ver a n d 

c o nti g u o us water wa ys.

T he b ul k of s halle w - dr aft petr ole u m m ove me nts i n t h at pa rt of 

WRP A 10 ea st of t he Mis sissi p pi Ri ver is ma de u p of refi ne d pr o d ucts, 

pri n ci pall y ga s oli ne, m ovi ng fr o m re fi ne ri es i n Ne w Orlea ns a nd 

Pasca g o ula, Mississi p pi, t o ter mi nal s east war d al o n g t he GI W W.

Ce ment, St o ne, Sa n d, a n d A g gre gate ( CS S A)

W hile it i ncl u des ce me nt, sa n d, a n d gr a v el, t his cate g or y of mo ve ­

me nts i n WRP A 10 c o n sists mai nl y of u n ma n ufact ure d mari ne s h ells w hic h 

are use d i n r oa d c o n str u cti o n a n d mai nte na nce, oil fi el d c o n str ucti o n, 

a n d as a ra w materi al i n t he pr o d ucti o n of ce ment. As is refle ct e d i n 

ta bl e 73, Lake P o ntc h artr ai n is o ne of L o uisia na's maj or pr o d ucers of 

mari ne s h ell. After bei n g dre d ge d fr o m t he La ke, t he s h ell is mo ve d 

t o st or a ge yar ds i n t he Ne w Orlea ns are a b y wa y of t he I HN C f or e ve nt ual 

res hi p me nt b y tr uc k a n d bar ge t o fi nal use p oi nts t hr o u g h o ut t he 

s urr o u n di n g c o ast al area.

S ul p h ur

S ul f ur m ove ments i n WRP A 10 ge n erall y ori gi n at e at pi p eli ne ter mi nals 

l ocate d near Bay ou Laf o urc he a n d t he Ba rat ari a Ba y Water wa y a n d desti ne d 

f or lar g e st ora g e a n d pr oces si n g f a cilitie s o n t he Mis sissi p pi Ri ver 

s o ut h of Ne w Orlea ns. Fr o m here, t he s ulf ur is f urt h er s hi p pe d b y bar ge 

t o i nla n d de sti nati o ns o n t he GI W W a n d t he Mis sissi p pi Ri ver a n d b y 

dee p- draft ve ssels t o f orei g n a n d d o mestic p o rts.

Ir o n a n d Ste el

T he b ul k of t he WRP A 10 mo ve me nts u n der t his cate g or y are c o m prise d 

of: st eel pi pe a n d t u bi n g use d i n drilli n g oil wells a n d f or pi p eli nes ; 

pl ate s a n d s he ets use d i n s hi p a n d b o at b uil di n g, a n d ot h er c o n str u cti o n; 

a n d, ores a n d fer r o all o y s.

I n d u strial C he micals

Si g nifi ca nt i nla n d mo ve me nts of i n d u stri al c he micals wit hi n WRP A 10 

are c o nfi ne d t o t he GI W W. I n t he mai n, t hes e mo ve me nts ori gi n ate at 

c he mical a n d petr oc he mical pla nts i n s o ut h wester n L o uisia na a n d i n 

Te xas, a n d are desti ne d f or p oi nts ser ve d b y t he Mis sissi p pi Ri ver. I n 

a d diti o n, s m alle r a mo u nts move fr o m t he Mis sissi p pi a n d Ala ba ma G ulf 

C oast west war d t o t he Mis sissi p pi Ri ver via t he GI W W a n d t he I H N C. 

Pri nci pal t y pes of c he micals i n v ol ve d i n t he se mo ve me nts are s o di u n 

h y dr o xi de, alc o h ols, s ol ve nts, a n d u n cl as sifie d ba sic c he micals.

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gr ic ult u ral C he micals

All s h all o w- d raft m o ve ments of A gric ult u ral c he mical s i n WRP A 10 

ar e c o nfi ne d t o t he GI W W, t h e M R- G O, a n d t he I H N C. T he y c o nsist of b ul k 

c he mical f e rti li z e r s hi p m e nts m o vin g fr o m pr o d u cti o n p oi nts west of 

WRP A 10 t hr o u g h t he P o rt of Ne w Orlea ns, a n d s hi p m e nts m o vin g fr o m Ne w 

Orle a ns t o p oi nts ea st a n d west o n t he GI W W.

Ot h er

t he pri n ci pa l c o m mo dit y m o vi ng i n WRP A 10 u n der t h is hea di n g is 

b ul k s alt w hic h ori gi n at es at mi nes ne ar t he GI W W west of WRP A 10 a n d 

is de sti ne d f o r p oi nts o n t h e Mississi p pi a n d O hi o Ri v ers a n d o n t he 

GI W W ea st of Ne w Orlea ns.

Ge neral Car g o

Ge neral car g o t o n na ges i ncl u d e pri n ci p all y mis cella n e o u s ma n ufac ­

t u re d g o o ds, w oo d p ul p, d rilli n g water, d rilli n g m ud, mis cell a ne o us 

n o n- m etalli c mi ne ral s, f o o d a n d i n d u st ri al fi s h, a n d ot he r mis cell a ne o us 

b ul k c o n m o diti es.

C oast wise Tra de

T he I H N C a n d t he MR- GO b ot h s u p p ort a s mall a m ou nt of c oa st wise 

s hi p me nts. I n 197 0, t he b ul k of t he se s hi p me nts o n t h e I H N C were c o m ­

pri se d of n o n metal li e mi n eral re cei pts pl u s t hr o u g h m o ve ments of c o m, 

fr o ze n meat, al c o h olic be vera g es, a n d u n cl as si fi e d c o m m o dities. T hese 

I H N C t hr o u g h m o ve me nts, c o m bi ned wit h al u mi n u m or es, s u ga r, a n d f e rti ­

li z e rs al s o c o m prise d t h e m aj orit y of c o m merce o v er t h e a dj oi ni n g 

MR- G O f o r t h at ye ar.

F orei g n Tra de

As wit h c oa st wise tr a f fi c, f or ei g n tr a f fic o ver WRP A 10 water wa ys 

is li m ite d t o t he I H N C a n d t h e M R- G O. A b o ut 75 pe rc e nt of t he 1970 

f o rei g n c o m merce o n t h e I HN C was c o m prise d of c o n m o diti es u n der t he 

hea di n g of Ir o n a n d Ste el, Ot h er a n d Ge neral Car g o. Ir o n a n d St eel 

m o ve ments c o nsist e d mai nl y of scra p fr o m a s hi p- b re a k er l o cate d o n t he 

ca nal, w hile pri n ci pa l c o n m o diti es u n der " Ot he r” a n d " Ge n eral Car g o" 

were n o n m etallic mi n er al s, c o ff ee, cr u de r u b b er, s u ga r, ve geta ble oil, 

a n d pa p er pr o d ucts.

On t he M R- G O, t h re e ca te g o ri es, C oal, Ir o n a n d Ste el, a n d Ot her 

c o m pri se d o ver 60 pe rc e nt of t h e 1970 t o ta l. U n der C oal, a b o ut a t h ir d 

of t h e t o n na ge was re pr es e nte d b y e x p ort s of b ul k c oal a n d li g nit e 

w hile t he re mai ni n g t w o-t hir d s was ma de u p of c o ke a n d petr ole u m 

as p h alt e x p o rts. O ver h alf of t he Ir o n a n d Ste el m o ve ments were t he 

e x p o rts of scra p me nti o ne d a b o ve o n t he I H N C, wit h t he re st bei n g c o mpri se d of i m p orte d ma n ga nese or e, fe rr o all o ys, a n d ir o n a n d st e el

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pri m ar y f or ms. Si g ni fi ca nt t o n n a ges m ove d u n der t he " Ot her ” cla s sif ic a ­

ti o n were i m p ort e d s u g ar a n d t hr o u g h m ove me nts of n o n m etalli c mi ne rals.

T he re mai ni n g 40 pe rc e nt of t he MR- GO tr a f fic is made u p pri n ci p all y 

of i n d u st ri al a n d a g ri c ult u ra l c he mi cal s, a n d i m p ort e d al u min u m or es.

P o rt of Ne w Orlea ns

Ta ble 73 s h o ws c o m mercial sta ti stic s f o r t he P o rt of Ne w Orlea ns 

d uri n g 1970. F or t he p ur p os es of t h es e st a ti sti c s, t h e P o rt is c o nsi ­

dere d t o c o m prise b ot h ba n ks of t he Mis sis si p pi Ri v er fr o m Mile 127 A HP 

t o t he m o ut h of t he pa ss es, t h e I H N C, 7 mil es of t he M R- G O, a n d t he 

Har ve y Ca nal.

O ver h alf of t h es e t o n n a ges re pr es e nt m ove me nts of b ul k c o m n o diti es 

pri n ci p all y gr ai n, c o al, a n d cr u de a n d re fi ne d petr ole u m pr o d ucts. Grai n 

m o ve ments ar e c o m prise d mai nl y of c o m a n d s o y bea n e x p o rts fr o m t he 

se ve n bar ge el e v at or s i n t h e p o rt ar ea. M ost of t he c o al s he wn o n t he 

ta ble is m ove d c oa st wise fr o m a tr a n sf e r yar d s o ut h of Ne w Orle a ns t o 

Fl ori d a b y ocea n g oi n g bar ge. A b o ut 65 pe rc e nt of t h e petr ole u m 

t o n na ge c o nsists of cr u d e o il, m ost of w hic h is s hi p pe d c oa st wise fr o m 

st or a g e ter mi nals i n t he p o rt ar ea. T he b ul k of t he re mai ni n g p et r o ­

le u m m o ve ments is made u p of c oa st wise a n d i nl a n d s hi p m e nts of re fi ne d 

pr o d u cts ( p ri n ci p all y ga s oli n e) fr o m t he ma ny re fi n eri e s l o cate d al o n g 

t he Mis sis si p pi Ri v er.

Si g ni fi ca nt q u a n titi es of ir o n a n d ste el al s o mo ve i n t he P o rt of 

Ne w Orlea ns. I n 197 0, t he t h re e la r g es t m ove me nts were i m p orte d plate s 

a n d s h ee ts, e x p ort e d pri m ar y f or ms, a n d e x p ort e d sc ra p. T he lar g e 

s ul p h ur t o n na ges s h o w n o n t h e ta ble ar e c o m pri se d of i nla n d a n d c o ast ­

wise s hi p m e nts a n d e x p o rts ori gi n ati n g at a la r g e s ul p h u r mi ni n g a n d 

st o ra ge c o m ple x o n t he Mis si ssi p pi Ri v er s o ut h of t he P ort. CSS A 

m o ve ments mai nl y re pr es e nt tr a n sf ers of l o ca ll y pr o d u ce d mari n e s h ell 

fr o m La ke P o nt c h artrai n. T he i n d u st ri al a n d a g ri c ult u ra l c he mical m ove ­

me nts ar e a re fl ec ti o n of t he pr e vi o usl y me nti o ne d c he mical a n d p et r o ­

c he mi cal pl a n ts l o cate d bet wee n Ne w Orl ea n s a n d Bat o n R o uge a n d ne ar 

t he M R- G O. T he al u mi n u m m o ve ments s he wn f o r t he p o rt ar e c o m pri se d 

mai nl y of i m p orte d al u mi na w hic h is tra ns s hi p p e d b y bar ge t o i nla n d 

al u mi nu m pr o d ucti o n f a cil it i e s. Of t he c o m m o dit y m o ve ments i ncl u d e d 

u n d er " Ot her " virt u all y all were c o m pri se d of s u ga r, m olas ses, a n d 

n o n m etalli c mi n eral t o n na g es, p ri n ci p all y i m p orts. I n 197 0, t he la r g e st 

m o ve ments u n d er " Ge neral Car g o" c o nsiste d of i m p orte d ba na nas a n d 

c o ff ee, a n d e x p ort e d gr ai n mill pr o d ucts, ve geta ble o il, p ul p, a n d pa p er, 

a n d mac hi ner y. T hese ite ms re pr es e nt a b o ut 50 perc e nt of 1970 Ge ner al 

Car g o c o m nerce. T he re mai n der was made u p of a gr eat v ar iet y of bre a kb ul k car g o m o ve me nts.

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SS E L C O MP OSI TI O N

C o n mercial ve ss el m ove me nts o ver WRP A 10 water wa ys ar e s u m marize d 

o n ta bl e 74. De scri pti o n of t y pi ca l ve ss el s a n d t o w c o m p ositi o n are 

c o ntai ne d i n t he re gi o n al s u m mary.

F UT U RE NE E DS

Pr os pe cti ve C o m merce

Water b or ne C o n merce i n t he sele ct e d c o m m o dit y cate g o rie s was pr o ­

je ct e d i n acc or d a nce wit h i n di ce s of o ut p ut de vel o pe d f o r t he a p pr o p riate 

maj or i n d u str y gr o u ps. T hese i n di ce s are s ho wn o n ta ble 75. I n ge ne ral, 

t he Pr o gra m A i n dice s re pr es e nt O B E RS’ f o re ca st of ec o n o mic gr o wt h f or 

t h e i n di vi d u al W RP A's wit hi n t h e L o wer Mississi p pi Re gi o n. Pr o gra m B 

i n dice s were de vel o pe d t o re fl e ct a re gi o n al gr o wt h i n e m pl o y me nt e q ual 

t o t he nati o nal a ve ra g e, 1. 4 p er c e n t! /. A p pli cati o n of t h es e i n di ce s t o 

t he bas e ye ar t o n na g es s h o w n pr e vi o usl y o n ta bl e 73 yi el d f ut u re le vels 

of c o n merce as s he wn i n a g g re g ate o n ta bl e 76. T hese le ve ls ar e 

de si g nate d as t he gr o ss nee ds of t he ar ea. N ote t h at t h e pr oj ecti o ns 

ar e e x p res se d i n t o n - mile s f o r t he water wa ys a n d i n s h ort t o n s f o r t he 

P o rt of Ne w Orl ea n s.

Net Nee ds

Ta ble 77 s u m marizes t he net na vi gati o n nee ds re q uire d t o s u p p ort 

c o m merce pr oj ecte d f o r WRP A 10 u n der Pr o gra m A a n d B o bj ec ti ve s. 

S hall o w - Dr aft C ha n nels

No ne w s h all o w- draft c ha n nel c o nstr u cti o n will be re q uire d d uri n g 

t he st u d y peri o d f o r WRP A 10. C o n merce pr oj ecte d f o r t h e GI W W a n d 

c o nti g u o us water w a ys, h o we ver, w ill pr o d uce net nee ds f o r i m pr o ve ments 

of e x isti n g c ha n nels as ea rl y as 198 0. T heses nee ds w ill i n v ol v e t he 

mai n ste m b y t he ye ar 200 0. A d diti o n all y, t he fi s hi n g a n d petr ole u m 

i n d u st ri es ser v e d fr o m bas es o n t h e MR- GO a n d t he Mis si ssi p pi Ri ve r 

belc w t h e P ort of Ne w Orle a ns will ge n erate net nee ds f o r e nlar ge m e nt of 

e x isti n g c ha n nels b y 198 0. Mari ne s h ell yar ds a n d b o at b u il d i n g a cti vi ­

ti e s l o cate d ne ar t he n o rt h s h o re of La ke P o nt c h artrai n will pr o d uce a 

nee d f o r c ha n nel e nlar ge me nt b y t he ye ar 2000.

Dee p- Draft C ha n nels

No ne w de e p - d ra ft c ha n nels w ill be re q uir e d i n WRP A 10 d uri n g t he 

st u d y pe ri o d. I n d u st ri al a cti vit y i n are as ea st of M or ga n Cit y,

F u rt h er di sc us si o n of t h es e i n di ce s a n d t h eir de ri vati o ns is c o ntai n e d 

i n A p pe n di x B, Ec o no mics

1 7

208



6 5 6

Ta ble 7 5 - Ec o n o mic F ore c a st, WRP A 1 0 

I n di ce s o f P r o d u cti vit y b y Maj or I n d u st ri e s

C o m mo dit y

(I n d u st r y Gr o u p) Pr o gra m 1 9 6 7 1 9 6 8 1 9 69 1 9 70 1 9 80 2 0 0 0 2 0 2 0

1 9 7

2 1 2

Gr ai n ( A gric ult u re )

1 00

1 0 0

1 4 5

1 4 5

1 7 2

1 8 5

C oal ( Mi ni n g, N ati o nal) 1 00 1 0 4 1 06 1 09 1 4 3 1 99 3 2 3

1 0 0 1 0 4 1 06 1 09 1 4 3 1 99 3 2 3

Petr ole u m ( Mi ni n g §

R efi ni n g, A vera ge) 1 00 1 2 1 1 2 5 1 30 1 7 8 2 8 6 5 0 3

1 0 0 1 21 1 26 1 32 1 9 4 3 30 5 9 4

CSS A ( Q u arr yi n g) 1 00 1 1 0 1 1 4 1 1 8 1 6 3 3 1 6 6 2 2

1 00 n o 1 14 1 20 1 79 3 65 7 3 4

S ulf ur ( Q uarr yi n g ) 1 00 1 00 1 0 0 1 00 1 00 1 00 1 0 0

1 00 1 0 0 1 0 0 1 00 1 00 1 00 1 0 0

Ir o n § Ste el

( Pri ma r y M etals) 1 0 0 9 7 1 04 1 0 7 1 31 2 0 5 3 3 2

1 00 9 7 1 06 n o 1 4 4 2 4 7 3 8 0

I n d u stria l C he micals 

( C h e mi cals § Allie d

Pr o d ucts) 1 00 1 1 8 1 2 5 1 3 4 2 2 8 6 7 7 1, 7 7 1

1 00 1 1 8 1 26 1 3 8 2 5 0 7 8 3 2, 0 8 9

A g ri c ult u ra l C he mic als

( A gric ult u re ) -- -- -- 1 0 0 1 45 1 7 2 1 9 7

•• -- 1 0 0 1 4 5 1 8 5 2 1 2

Ot he r C o m m o ditie s 

( C h e mic als 5 Allie d

Pr o d ucts) 1 00 1 1 8 1 2 5 1 3 4 2 2 8 6 7 7 1, 7 7 1

1 00 1 1 8 1 2 6 1 3 8 2 5 0 7 8 3 2, 0 8 9

Misc ell a n e o us Co m mo diti e s ( Ot h er Ma nufa ct uri n g) 1 00 1 0 8 1 1 2 1 1 7 1 7 2 3 7 4 8 0 5

1 00 1 0 8 1 1 3 1 2 0 1 8 9 4 3 3 9 4 9

2 1 2

6 5 8



6 6 2

L o uis ia n a, hc we ver, will ge n er ate a nee d f o r e nlar ge me nt of e x isti n g 

de e p - draft water wa ys b y 198 0. I n a d diti o n, de e p - d ra ft t o n na g es pr oj ecte d 

f o r p oi nt s o n t he Mis si ssi p pi Ri ver bel o w Bat o n R o uge will cr eate a nee d 

f o r e nlar ge me nt of t h e e x isti n g acce ss r o ute t o t he G ulf of Me xic o.

T hese net nee ds ar e pr es e nte d i n t he WRP A 1 se cti o n. F ut ure st u die s, 

h o we ver, ma y i n di cate t h at t he p o rti o n of t h e r o ute bel o w Ne w Orlea n s 

ma y be m ore a d v a nta ge o u sl y l oc ate d i n t he M R- G O. I n t h is ca se, t h at 

pa rt of t he nee ds pr o p orti o nal t o t he le n gt h of t he r o ute vi a t he MR- GO 

w o ul d be assi g n e d t o WRP A 10.

L ocks

S h all c w - dr aft l o c k s. T here c u rr e ntl y e x ists a nee d f o r a s hall o wdra ft c o n n ecti o n bet wee n t he GI W W ea st of Ne w Orlea ns a n d t he Mississi p pi 

Ri v er. I n a d diti o n, t he t o n na ges pr oj ecte d f o r t he GI W W west of t he 

Mis sis si p pi Ri ve r will ge nerat e a nee d f o r re pla ce m e nt a n d / or re h a bili ­

ta ti o n of l oc ks al o n g t he WRP A 10 se cti o n of t h at water wa y be gi n ni n g i n 

t he ye ar 2000.

Dee p- draft l o c k s. I n cr ea se s i n t he si ze s of s hi ps c o m bine d wit h 

pla n ne d p o rt de vel o p me nt al o n g t he I HN C has cr eate d a n e x isti n g nee d f o r 

a de e p - draft l oc k c o n necti n g t he MR- GO a n d t he Mis sis si p pi Ri v er.

Har b ors a n d P orts

I Tiere are n o net har b or or p o rt nee ds pr oj ecte d t o de vel o p i n WRP A 

10 wit hi n t he st u d y pe ri o d.

218
6 6 3

L O W E R MI S SI S SI P PI R E GI O N 

C O M P R E H E N SI V E S T U D Y

M A J O R S T R E A M S A N D

N A VI G A B L E W A T E R W A Y S

W R P A- 1 0

F I G U R E I t
6 6 4
6 6 5

T H O D O L O G Y

E XI S TI N G W AT E R B O R NE C O M ME R CE

A c o m pa rati ve r a t e a n al y sis o f a ll m o des o f tr a n s p o rta ti o n c o m peti n g 

f o r a r e gi o n's c o m mer ce i s be y o n d t h e sc o p e o f a T y pe I st u d y ; t h e r e f o r e, 

t h i s st u d y was li m it e d t o a n a n al y sis o f t h e w at er b or n e c o m ner ce m o vi n g 

i n a n d o u t o f t h e r e gi o n. T he 19 70 t r a f f i c se r v e d as t h e b as e y e a r fr o m 

w hic h t o p r o j e ct t h e 5 0 - y e a r gr o wt h (1 9 7 0 -2 0 2 0) o f w at er b or n e c o m ner ce 

f o r ea c h o f t h e te n w ate r re s o u rc e pla n ni n g a re a s ( W R P A) w it hi n t h e 

re gi o n.

T he 19 70 t o n n a g es we re c ate g o ri z e d i n t o 10 t o 12 c o m m o dit y g r o u pi n g s, 

de pe n d i n g o n t h e c o m n o dit y v ol u me m o vi n g o v er t h e p a rti c u l a r w at er w a y.

T he c o m n o dit y gr o u pi n g s u se d a re s he w n belc w :

(1 ) G rai n (7 ) I n d u stri al C h e mic al s

(2 ) C o al (8 ) A g ri c ult u re C h e m ic al s

(3 ) P et r ole u m . (9 ) Al u mi n u m

(4 ) Ce me nt, st o n e, sa n d, a n d gra v el ( C S S A) (1 0) W oo d a n d p a p er

(5 ) S ul p h ur (1 1) Ot h er

(6 ) Ir o n 5 S te el (1 2) G e n er al Ca r g o

T he C o m n o dit y C l a s sifi c ati o n f o r S hi p pi n g S t a ti s ti c s de vel o pe d b y t h e 

O ffic e o f S t a ti s ti c a l P oli c y, O ff ic e o f Ma na ge me nt a n d B u d get, was us e d 

wit h s o me m o dif ic ati o n s, f o r c ate g o riz i n g i n di v i d u al c o m m o diti es u n de r 

t h e s ele cte d g r o u pi n g s. T he c o m n o dit y c l a s sifi c a ti o n s a r e s he w n i n 

t a b l e 78.

P R OJ E C TI O N P A R A ME T E RS

F ut u re gr o wt h i n d ic at o r s we re d e v el o p e d i n t h e A p pe n di x B, Ec o n o m ic s, 

f o r ea c h W RP A. A p p ra is al o f t h e r e g i o n's gr e w t h was a p pr oa c h e d fr o m 

b ot h t h e p oi n t o f N ati o n al I nc o m e e ffi cie n c y ( P r o gr a m A) a n d t h at o f 

R e g i o na l De vel o p me nt ( P r o gr a m B ). " O B E R S" i n dic e s o f o ut p ut b y i n d u str y 

t y p e we re s el e cte d t o p r o vi d e t h e f a ct o r s f o r p r o j e cti n g m o st o f t h e 

w at er b or n e c o m merce u n d er t h e Pr o gra m A a p p r ai s al. I n dic e s we re c o n ­

str u cte d b y O B E R S f o r ea c h i n di v i d u al WRP A i n t h e Lc w er M is sis si p pi 

R e gi o n, as w ell as a v er a g e gr e w t h f a ct o r s f o r t h e n ati o n.

Pr o gra m B i s b a se d o n a f o r e c a st d e v el o p e d i n t h e A p pe n di x B, 

Ec o n o mics, f o r t h e f ut u r e ec o n o m y o f t h e L o wer M is sis si p pi R e gi o n. 

E s s e n tia ll y , i t i s b a se d o n t h e a ss u n pti o n t h at t h e re gi o n w ill gre w 

ec o n o mic all y a t t h e sa me r a t e as t h at p r oje cte d f o r t h e n ati o n b y t h e 

W ate r R es o u rc es C o u n cil. R ati o n ale f o r t h e de vel o p m e nt o f Pr o gra m B 

f a ct o r s ca n be f o u n d i n t h e Ec o n o mics A p pe n di x.

221
6 6 6

C o mo dit y mo ve me nts wit hi n eac h WRP A were e xa mi ne d as t o t h eir 

ori gi n s a n d de sti nati o ns bef o re assi g ni n g a n ec on o mic i n dic at or t o t he 

c o m mo dit y gr o u pi n g. If a p arti c u la r c o m mo dit y gr o u pi n g was ma de u p 

m ostl y of t hr o u g h m ove me nts fr o m se v eral areas o utsi de of t he L o wer 

Mi ssis si p pi Re gi o n, a n " O BE RS" i n de x f or t he nati o n was use d f or b ot h 

Pr ogra m A a n d B rat h er t ha n o ne f or t he pa rtic ul ar WRP A. I n s o me 

i nst a nc es t he pr ojecte d gr o wt h patte r n s f or ot he r areas were assi g n e d 

w here t h at pr ojecte d t o n na ge w o uld e xe rt si g nifi ca nt i nfl ue nc e o n t he 

Water bor ne Co m merce i n t he L o wer Mis sissi p pi Re gi on. An e xa mple of t his 

w oul d be t he pr ojecte d grai n mo ve me nts t hr o u g h L oc k 26 i n t he U p per 

Mi ssis si p pi Ri ver Basi n desti ne d f or G ulf p orts.

A n ot her de part ure fr o m t he use of i n dic es of o ut p ut b y i n d ustr y 

t y pe f or pr ojecti o ns was i n t he s ul n h ur c o m mo dit y gr o u pi n g. I n t his 

a nal ysis s ul p h ur mo ve me nts are pr ojecte d t o re mai n c o nsta nt t hr o u g h o ut 

t he st u d y peri o d. B ot h t he U nite d St ate s a nd w orl d wi de i n v e nt ori es 

are hi g h, a n d t he acc u m ulati o n of st oc k s are e x pecte d t o i nc rea se e ve n 

m ore. Acc or di n g t o Res o urces F or t he F ut ure, I n c., t he e n d is n ot i n 

si g ht. I n it s p u bli cati o n, Res o urces, So me Hi g hli g ht s of 1970, t he 

a rtic le st at e d, "...

By 1970, pr o d ucti o n of 'rec o ver e d' s ulf u r (t h at is, s ul p h ur 

o btai ne d as a b y- pr o d uct of nat ural gas e xtra cti o n, oil 

re fi ni n g, etc.) e xcee de d Frasc h s ul p h ur f or t he fir st 

ti me. Gi ve n t he Ca na dia n p ote ntial al o ne, a n d t he 

i n e v it a b ilit y of s ul p h ur pr o d ucti o n if t he gas is t o 

be s ol d, it is dif fi c ult t o see w hat c o ul d re v erse t he 

tre n d. M oreo ver, it is e x pecte d t hat i n t he m ore 

di st a nt f ut ure f ulf ur s u p plies ca n be rec o vere d fr o m 

a t o tall y ne w s o urce: e xtra cti o n - bef o re or d uri n g 

c oir b usti o n - fr o m f o ssil f u el s, s o t h at t h eir use will 

c o ntri b ute les s t o air p oll uti o n. T hese s u p plie s c o ul d 

e ve nt u all y o ut pace all ot h er s o urces of s u p pl y."

P R OJ E CTI O N U NI TS

T he 1970 base year c o m mo dit y gr o u ps f or eac h water wa y or p ort 

wit hi n a WRP A are pres e nte d i n s h o rt t o n s. I n pr ojecti n g t he f ut ure 

c o mnerce f o r t he i n di vi d ual water wa ys, t he t o n na ge pr ojecti o ns ha ve bee n 

c o n verte d t o a t o n- mile ba sis t o a v oi d misre pr ese ntati o n of t he t o n na ge 

fi g ure s w he n s u m mi ng u p t he t o tal c o m merce f or eac h WRP A or re gi o n. T he 

1970 a vera ge le n gt h of ha ul f or all c o m mo dities m ovi ng o ver t he i n di vi ­

d ual water wa ys was a p plie d t o t he pr ojecte d t o n na ge fi g ure s f or eac h 

water wa y t o deri v e t he t o n- mile pr oje cti o n s.

222
6 6 7

E DS

All a v aila bl e s ur v e y re p o rts were i n ve nt orie d as a n ai d i n d et er ­

mi ni n g pr es e nt a n d f ut ure nee ds f o r t he ha r b or s, p o rt s, a n d water wa ys 

i n t he re gi o n. L ock re pla ce me nt nee ds were deter mi n e d b y re la ti n g t he 

pr oj ecte d t o n na g es t o re ce nt l oc k ca pa cit y st u d ie s o n e x isti n g st r u ct ure s 

i n t he s yste m. T he st u d y i n v ol ve d t he a p plic ati o n of t he q ue u ei n g 

t he or y w hic h pr o vi d es t h e mea ns of re la ti n g t o n na ge a n d w aiti n g ti me t o 

ot he r fa ct or s s uc h as te w c o nfi g ur ati o n, e q ui p me nt siz e, water wa y 

c h ara cte ri stic s, a n d l oc k a ge ti m e.

T he gr o ss nee d f o r t he c o m bi ned water wa ys i n eac h WRP A ar e s h o w n 

i n t he Needs Ta bl es u n der t h e hea di n g " Ne w C ha n nels," dee p- a n d s hall o w - 

d ra ft. T hese t o n - mile nee ds are t he pr oj ecte d c o n merce e x p ect e d t o 

mo ve o yer t he e x isti n g water w a ys. I ncl u de d is a n i ncre me nt of c o m merce 

t h at will re q uir e c o nstr u cti o n of ne w water wa ys i n or de r t o mo ve vi a 

t h at mo de of tr a n s p ort ati o n. T he net nee ds u n der " Ne w C ha n nels" 

i d e n tif y t h at i ncre me nt of c o m merce. T he t o n - mile fi g ur es s h o w n i n 

" E xisti n g S u p pl y" de n ote t he a bilit y of t h e e x isti n g water wa ys t o mo ve 

t he c o m merce pr oj ecte d f o r t h o se water w a ys.

L on g ra n ge water nee ds p oi nt t o t he e ve nt u al e nlar ge me nt of ma ny 

of t he e x isti n g c ha n nel s wit h t h e re gi o n. T his w o ul d per mit dee per 

l oa di n g of e x isti n g e q ui p me nt a n d f ut u re e nlar ge m e nt of bar ge si ze s t o 

ta k e a d va nta ge of t he ec o n o mies of sc al e. T hese nee ds are pr es e nte d 

i n t he ta bl es u n d er t h e hea di n g of " E xi sti n g F a cilitie s I m pr o ve me nt," 

dee p- a n d s h all o w - d ra ft. B ot h t he gr o ss a n d net nee ds s h o w n u n der t h is 

hea di n g re pr es e nt t h at p o rti o n of t he t o ta l t o n - mile s s h o w n i n t he ne w 

c ha n n el cat e g or y t h at c o ul d be ne fit fr o m e nlar ge m e nt of t he e x isti n g 

c ha n nels.

223

5 4 - 2 3 9 0 - 2 5 - 4 3
6 6 8

Ta ble 7 8 - Water b or ne C o n merce C o nr n o dit y C la s sific ati o n

Grai n

0 1 0 2 - Ba rle y a n d R ye

0 1 0 3 - C o m

0 1 0 4 - Oat s

0 1 0 5 - Ric e

0 1 0 7 - W heat

0 1 1 1 - S o y bea ns

C oal

1 1 2 1 - C oal a n d Li g nit e 

3 3 1 3 - C o ke

Petr ole u m a n d Petr ole u m Pr o d ucts

1 3 1 1

2 9 1 1

2 9 1 2

2 9 1 3

2 9 1 4

2 9 1 5

2 9 1 6

2 9 1 7

2 9 1 8 

2 9 21

Cr u de Petr ole u m 

Ga s oli n e 

J et F uel 

Ker o se ne

D is til la t e F u el Oil 

Re si d ual F u el Oil 

L u b ri cati n g o il s 5 gr ea se s

Na pt h a, mi n er al s p i rit s, s ol v e n ts 

A s p ha lt, t a r, pit c h e s A h m u nu m

Li q u efie d Petr ole u m ga se s, 

c o al, ga se s, n at u ra l ga s, 

a n d n at u ra l gas li q ui d s 

Petr ole u m 5 c o al pr o d u ct s, n ot 

els e w he re cla s sif ie d

2 9 9 1 -

CS S A

0 9 3 1 - Mari ne S h ell s, u n m a n u fact ur e d

1 4 1 1 - Li m est o n e

1 4 1 2 - B uil di n g st o n e

1 4 4 2 - Sa n d, g ra v el, cr us he d r oc k 

3 2 4 1 - B uil di n g ce me nt

S ul p h ur

1 4 9 2 - S ul p h u r, dr y

1 4 9 3 - S ul p h u r, li q ui d 

Ir o n a n d Ste el

1 0 1 1 - Ir o n or e a n d c o nc e n tr at es 

1 0 6 1 - Ma n ga nese or es a n d c o nc e ntr ate s

I n d u stria l C he micals

2 8 1 0 - S o di u m H y dr o xi d e

2 8 1 1 - Cr u de pr o d ucts

2 8 1 3 - Al c o h ols

2 8 1 8 - S u l p h u ri c Aci d

2 8 1 9 - Ba sic c h e m ic al s, n ot els e ­

w here cla s sif ie d 

2 8 2 1 - P la sti c m ate ri als, etc . 

2 8 5 1 P ai n ts, v ar n is h e s, etc . 

2 8 7 6 - I n s e cti ci d e s, etc .

2 8 9 1 - Misc ella ne o u pr o d ucts

A g ri c ult u ra l C he mic als

1 4 71

1 4 79

2 8 7 1

2 8 7 2

2 8 7 3 

2 8 7 9

P h os p hate R ock 

Nat. F e rtili z e r M at erials 

Nitr o g e n o u s f e rtili z e r 

P ota ss ic f e rtili z e r 

S u per p h os p h ate 

F e rtili z e r s, n ot els e w he re 

cla s sif ie d

1 0 5 1 - Al u mi n u m Ore s, C o n ce ntrate s 

3 3 2 4 - Al u mi n u m all o y s, u n w or ke d

Wo od a n d Pa per 

2 4 1 1 - L o gs

2 4 1 2 - R afte d L o gs

2 4 1 3 - F uel w o o d, c h ar c o al, a n d

w astes

2 4 1 4 - Ti n ke r, p o sts, p ole s, pil i n g

a n d ot h er w o o d i n t h e 

r o u g h

2 4 1 5 - P ul p w o o d, l o g

2 4 1 6 - Wo od c hi p s, st a v e s, m ol di n g s,

a n d e x c els i o r 

2 4 2 1 - L u n b er

2 4 31 - Ve ne er, pl y w o o d, a n d ot h er 

w or ke d w o od

2 4 91 - Wo od m a n uf act ure s, n ot

el se w h er e cla s sif ie d

2 6 11 - P ul p

2 6 21 - St a n da r d ne w s p ri nt pa pe r 

2 6 3 1 - Pa per a n d pa pe r b oa r d

2 2 4
6 6 9

Ta ble 7 8- Watei b o me C o n merce C o m mo dit y Cla ss ific ati o n (c o n t’ d)

Ir o n a n d St eel 

3 31 1 - Pi g Ir o n

3 3 14 - Ir o n a n d Ste el i n g ots § f or ms

3 3 15 - I 5 S Bar s, r o ds, a n gl es, et c.

3 3 16 - 1 5 S Pl at es 8 s h eets

3 3 17 - I § S Pi pe a n d ti b e

3 3 18 - Ferr o all o ys

3 3 19 - I § S Pr o d ucts, n ot else w here

cla ss ifie d 

4 0 11 - I 8 S Scra p

Wo od a n d Pa per

2 69 1 - P ul p, pa p er a n d pa pe r b oar d 

pr o d ucts, n ot else w he re 

cla s sifie d

Ot h er

1 49 9 - N o n met alli c mi n erals e xc e pt 

f u el s, n ot else w here 

cla s sifie d

2 06 1 - S u gar

2 06 2 - M olasses 

3 27 1 - Li me 

3 31 2 - Sla g

Ge neral Car g o

All re mai ni n g 4- d i g it cate g o rie s

2 25

6 7 1

G L O S S A R Y

Barge - A flat- b ott o me d ve ssel, us u all y n o n- sel f pr o pelle d, use d c hiefl y 

o n i nla n d water wa ys f or t he tra ns p o rt of c o n m o dities.

Brea k- B ul k Car go - All n o n- b ul k car g o l oa de d or u nl oa de d b y p ort cra ne 

or s hi p b oar d gear.

B ul k Frei g ht - Basic c o n m o dities i n t h eir ra w or se mi- pr o cesse d f or m, 

t h at are n ot sac ke d, b o xe d, b u n dle d, or ot her wise asse m ble d, b ut w hic h 

are ca rrie d l o ose i n ves sels of tra ns p o rt.

Ca nal - An a rti fic ia l waterc o urse f o r na vi gati o n.

Carg o - T he la di n g of a ve ssel, ra il c ar, or ve hicl e.

Ca rri er - An i n di vi d u al, pa rt n ers hi p, or c or p orati o n e n ga ge d i n t he 

b usi n ess of tra ns p o rti n g g o o ds.

Co m mon ca rrie r - A tra ns p o rtati o n li n e e n ga ge d i n t he b usi nes s of 

tra ns p o rti n g pers o ns or g o ods f or c o m pe nsati o n a n d pr o vi di n g 

ser vic es f or all s hi p pers i m pa rti all y.

C o ntr act ca rrie r - T h ose f o r- hi re ca rrie rs w hic h d o n ot h ol d 

t he msel ves rea d y t o ser ve t he ge neral p u blic b ut i nstea d ser v e 

o ne or a fe w s hi p p ers u n der s p ecific c o ntr acts; n ot s u bject t o 

re g ulati o ns as t o p u bli cati o n of rate s.

C oast wise Ser vi ce - C o nsi dere d t o be mo ve me nt b y w ater t o a n d fr o m 

p oi nts o n t he At hi ntic C oast, G ulf C oast, or Pa cific C oast, als o 

i ncl u d es ser vic e bet wee n U. S. seac oast p orts a n d P uret o Ric o, Vir gi n 

Isl a n d s, Ha waii, a n d Great Lake p o rt s.

C o m mo dit y - An y article of c o n merce or tra de t h at ca n be tra ns p ort e d 

a n d has ec o no mic val ue.

C o ntai ner - A n yt hi n g i n w hic h artic le s are pac ke d; s p ecific all y a lar g e 

metal rec e ptacle w hic h ma y be tra ns fe rr e d re a dil y fr o m o ne ve hicle t o 

a n ot her, a n d s p ecific all y desi g ne d t o fa cilit ate c o or di n ati o n a n d 

tra ns p o rtati o n of c o n m o dities.

CSS A - C on mo dit y gr o u pi n g t h at i ncl u des ce me nt, st o ne, sa n d, s h ell, 

a n da g g re gate.

Dee p Draft - Vessels ha vi n g ma xi mu m dr afts i n e xcess of 1 8 fe et; als o 

na vi gati o n c ha n nels desi g ne d t o acco m m odate s uc h ve ssels.

2 27
D o mestic S hi p pi n g - C o m posed of c o ast wise, i n te rc o as tal, Great La kes, 

a n d i nla n d water tr a n s p ortati o n. Als o i ncl u d es P ue rt o Ric o a n d t he 

Vi r gi n Isla n d s.

Dr aft ( V ess el) - T he n u n ber of fe et or i nc he s bel o w t he water li n e t h at 

a ve ss el is s u b mer ge d.

E xisti n g S u p pl y - I d e n ti fi es t he a bilit y of t he e x isti n g f a cil it i e s 

( water wa ys, l oc ks, e t c.) , i n t o n - mile s or t o ns, t o acc o m mo date t he 

pr oj ecte d c o m merce f or eac h pe ri o d. It d oes n ot re fl e ct t he ma xi mu m 

ca pa citi es of t he f a cil it i e s.

E x p orts -I m p orts - T hese ter ms a p pl y t o tr a f fic bet wee n t he U nite d St at es 

a n d f orei g n p ort s, i ncl u di n g t he Pa na ma Ca nal Z o ne.

F l o ti ll a To w - A st ri n g of 20-4 0 ba r g es, t hre e t o si x a b re ast.

Fr ei g ht - Merc ha n dise ha ule d b y tr a n s p or tati o n li n e s.

Har b or - A p o rt or ha ve n w here ve ss el s a nc h or; pa rt of a b o d y of water 

pr ot ecte d a n d dee p e n o ug h t o f u r nis h sa fe a nc h ora ge.

I n b o u n d- O ut b o u n d Tra ffic - T ra ffic m o vin g fr o m o ne water wa y i nt o a n ot he r 

is ter me d o ut b o u n d i n t he cas e of t he s hi p pi n g water wa y a n d i n b o u n d wit h 

re s p ect t o t h e re cei vi n g water wa y.

I nl a n d Water wa y Na vi gati o n - Use of na vi g a bl e ri ve rs a n d ca n al's, i ncl u di n g 

t he i n tr a c o as tal water wa ys, f o r m ove me nt of c o m m o dities.

I nte gr at e d To w - An asse m bl y of se ve ral bar ges desi g ne d i n s uc h a way 

t h at t he u n d er w ater s ha pe ta k es o n t he a p pea ra nce of a si n g le ve ssel 

(l ea d bar ge has eas y ra ke a n d s q u are st e m ; mi d dle bar ges s q u are at 

b ot h e n ds; e n d bar ge has s q u are b o w a n d s h ort ra ke o n ste m ).

I nte rc oa st al Water wa y Tr a n s p ortati o n - E m braces all m ove me nts w hic h 

i n v ol ve tr a n sit bet wee n t). S. c o asts.

I nte r n al Rec ei pts a n d S hi p me nts - T hese ter ms a p pl y t o tr a f fic bet wee n 

p o rts or la n di n gs w herei n t h e e nti re m ove me nt ta k es pla ce o n i nla n d 

water w a ys.

I ntr ac oa st al - Bei n g wit hi n a n d cl os e t o t h e c oa st or bel o n gi n g t o t he 

i nl a n d water s ne ar t he c o ast.

K n ot - T he na utic al mile (6,0 76 fe et) ; o ne na utic al mil e/ h o ur.
6 7 3

La s h S hi p ( Li g ht er A board S hi p) - A car g o ves sel desi g ne d pri ma ril y t o 

carr y 4 0-8 0 l oa de d li g ht er s ( bar ges) fr o m p ort t o p o rt; has a tra veli n g 

ga ntr y cra ne f or h oisti n g li g ht er s o ut of water a n d st o ri n g a b oar d 

s hi p. Barge di me nsi o ns are ge n erall y 6 1 feet i n le n gt h a n d 31 fe et 

i n wi dt h. Als o acco m m odates c o ntai ner s.

L ocal Tr af fic - Mo ve me nts of frei g ht wit hi n t he c o nfi n es of a p ort 

w het her t he p ort has o nl y o ne or se v eral ar ms or c ha n nels.

L oc k - An i ncl os ure wit h gates at eac h e n d use d i n raisi n g or l o weri n g 

ves sels as t he y pass fr o m le v el t o le v el.

Mi ni S hi p - A s mall car g o s hi p ( 2 15 fe et X 5 0 feet X 1 6 fe et ). Ca pa ble 

of calli n g at i nla n d p orts w here mini mu n c ha n nel de pt hs of 9 feet are 

pr o vi de d; has self-l o a di n g a n d u nl oa di n g ca pa biliti es.

Na uti cal Mile - Any of vari o u s u nits of dista n ce use d f or sea a n d air 

na vi gati o n base d o n t he le n gt h of a mi n ute of arc of a gr eater ci rcle 

of t he eart h *. U. S. no w officiall y uses 6, 0 7 6. 1 1 6 feet (i nter n ati o nal 

a gree me nt). Britai n uses 6, 0 8 0 feet as t he u nit.

P ort - A har b or t o wn or cit y w here ve ssels ma y ta ke o n or disc h ar ge car g o; 

ha ve n w here ves sel s ma y a nc h or or m oor.

Pri vat e Ca rri er - An y pers o n ot h er t ha n a c o mn on or c o ntra ct ca rrie r who 

tra ns p ort s c oi mierce or pr o p ert y of w hich s uc h part y is t he c w ner, when 

s uc h tra ns p o rtati o n is i n t he f urt hera nce of a n y c o m mercial e nter p ris e.

Pr ogra m A - Ec on o mic pr ojecti o ns ma de t o i d e ntif y na vi gati o n nee ds base d 

o n nati o nal i nco me o bj ecti ve para m eters.

Pr ogra m B - Eco no mic pr ojecti o ns ma de t o i d e ntif y na vi gati o n nee ds base d 

o n re gi o nal acc ele rat e d de vel o p me nt para m eters.

Ro- Ro S hi p ( R oll- O n/ R oll- Off) - A car g o ves sel desi g ne d t o per mit car g o 

tr ail e rs wit h w heels a n d ot h er ve hicle s t o be dri ve n a b oar d s hi p 

rat h er t ha n bei n g h oist e d a b oar d t he ve ssel.

Sea bee S hi p - A car g o ves sel desi g ne d pri ma ril y t o carr y 3 8 l oa de d 

li g ht er s ( bar ges) fr o m p ort t o p o rt; has a st e m ele vat or f o r li fti n g 

bar ges o ut of water a n d st o ri n g a b oar d s hi p. Bar ge di me nsi ons are 

9 7. 5 feet i n le n gt h a n d 3 5. 0 feet i n wi dt h. Als o acco m m odates c o ntai ner s.

S hall o w Draft - Vessels ha vi n g a ma xi mu m dr aft of 18 fe et or le ss; als o 

na vi gati o n c ha n nels desi g ne d t o acc o m o date s uc h v es sels.

T hro u gh Tr af fic - Tr affic m ovi ng t hr o u g h a water wa y t o a n d fr o m p oi nts 

o n ot h er water wa ys, 

l ----------------------------------------

Val ues dif fe r beca use t he eart h is n ot a tr u e s p her e.

2 29
6 7 4

I o n- Mi le - A sta ti stic al ter m de fi n e d as o ne t o n of fr ei g ht ca rrie d o ne 

sta t u te mile or it s e q ui vale nt, i. e ., o n e- half t o n ca rrie d 2 st at u e 

miles.

T o n nage - N u m ber of l o n g or s h ort t o n s of fr ei g h t ha n dle d.

Car g o t o n na ge - T o ns of wei g ht or meas ure me nt t o n s of s pa ce; wit hi n 

U. S. t he wei g ht meas ure me nt = 2, 0 0 0 p o u n ds (s h o rt or net t o n); 

else w he re us uall y 2, 2 4 0 p o u n ds (l o n g or gr os s t o n).; meas ure me nt 

t o n is us uall y 4 0 c u bic fe et.

Dea d wei g ht t o n na ge - T he n u n b er of l o n g t o ns ( 2, 2 4 0 p o u n ds) of car g o, 

st o re s, b u n k er f u el, a n d cre w ca rrie d b y a s hi p w he n l oa d e d t o he r 

ma xi mu m s u n mer l o a dli n e.

Dis plac e me nt t o n na ge - T he wei g ht i n l o n g t o n s ( 2, 2 4 0 p o u n ds) of 

water di s plac e d b y t he s hi p w he n af l o at; "li g ht" dis plac e me nt is 

t he wei g ht wit h o ut f u el, pa ss e n ge rs, a n d car g o.

Gr oss t o n ( v es sel) - A p plies t o t h e v ol u me of t he ve ssel it s e lf a n d 

n ot t o it s car g o ca rr yi n g ca pa cit y b y wei g ht. It is deter mi n e d b y 

di vi di n g b y 1 00 t he c o nt e nts, i n ci bi c fe et, of t he ve ss el s cl o se di n s p ac es. A ve ss el t o n is 1 00 c u bic fe et; re gis te r t o n.

Gr oss t o n ( wei g ht) - 2, 2 4 0 p o u n ds; l o n g t o n.

L on g t o n - 2, 2 4 0 p o u n ds; gr o ss t o n.

Meas ure me nt t o n - 4 0 ci bi c fe et.

Metric t o n - 2, 2 0 4. 6 p o u n ds.

Net t o n - 2, 0 0 0 p o u n ds; s h ort t o n.

Net t o n na ge ( v ess el) - A ve ss el s gr o ss t o n na ge mi n us de d ucti o n s f or 

s pa ce occ u pie d b y acc o m m o dati o ns f o r cre w, mac hi ner y f o r na vi gati o n, 

t he e n gi ne r o o ms, a n d f u el. It re pr es e nts t he s pa ce a v aila bl e f or 

t h e acc o n m o dati o n of pas se n gers a n d t he st o wa ge of car g o.

R e giste r t o n - 1 00 c u bic fe et; gr o ss t o n ( v es sel).

S h ort t o n - 2, 0 0 0 p o u n ds; net t o n.

Ves sel t o n - 1 00 ci bic fe et; gr o ss t o n ( v es sel).

Tc w boat - A c o m pact s h all o w- d ra ft ve ss el wit h s q u are b o w a n d t o wi n g k nees 

f o r p us hi n g te ws of bar ges o n i nla n d water w a ys, ha vi n g a n al m o st fla t 

b ott o m, a n d us uall y, c o n ve nti o nal d o ors a n d wi n d o ws.

2 30
6 7 5

Tr af fic - Passe n gers or car g o carri e d b y tra ns p o rtati o n; t he mo ve me nt 

of ves sels or e q ui p me nt o ve r,t h e water wa ys.

Tr affic De nsit y - T he a mo unt of tr a ff ic ha n dle d per mile wit hi n a gi ve n 

re gi o n.

WRP A - Water res o u rce pla n ni n g area s u b di visi o ns ( 1 0) of t he L o wer 

Mis sissi p pi Re gi o n.

231

B H
6 7 6

W A T E E
6 7 7

A T E M E N T B Y G L O V E R W I L KI N S, A D M I N I S T R A T O R 

O F T H E T E N N E S S E E - T O M B I G B E E W A T E R W A Y D E V E L O P M E N T A U T H O RI T Y 

B E F O R E T H E W A T E R R E S O U R C E S S U B C O M M I T T E E 

VI C K S B U R G , M I S SI S S I P PI 

M A Y 1 6, 1 9 7 5

T h a n k y o u, M r. C h air m a n:

M y n a m e is G l o v e r W il ki n s, A d m i n is tr at o r of t h e T e n n e s s e e - T o m bi g b e e 

W ate r w a y D e v el o p m e nt A ut h o ri t y , w it h h e a d q u a rt e r s i n C ol u m b u s, M is sis si p p i.

T h e o r g a n iz ati o n I r e p r e s e n t is a n i n t e r st a t e c o m p a ct c r e at e d i n 1 9 5 8 t o 

p r o m ote d e v el o p m e nt of t h e T e n n e s s e e - T o m bi g b e e W ate r w a y. T his c o m p a ct w a s 

r ati fie d b y C o n g r e s s a n d is re c o g niz e d b y t h e D e p a rt m e nt of H o u si n g a n d U r b a n 

D e v el o p m e nt a s a le g al e ntit y f o r re gi o n al pla n ni n g c o o r d i n ati o n.

M e m b e rs of t h is c o m p a ct a r e t h e S ta te s o f A la b a m a, F l o ri d a, K e nt u c k y, 

M is sis si p p i a n d T e n n e s s e e. O t h e r sta t e s a r e c u r r e n tl y e x p r e s si n g a n i n t e r e st i n 

b e c o m i n g a m e m b e r o f t h is c o m p a ct.

T h e T e n n e s s e e - T o m bi g b e e W ate r w a y is a 2 0 0 y e a r ol d d r e a m t h at i s n o w 

ra pi d l y b e c o m i n g r e a lit y. It w a s fi r st c o n c ei v e d b y t h e e a rl y S p a nis h a n d F r e n c h 

e x p l o r e r s w h o n oti c e d t h e r ela ti v el y l o w di v i d e b et w e e n t h e t w o ri v e r b a si n s, a n d w as 

r e c o m m e n d e d t o Ki n g L o uis X V a b o ut 1 7 6 0.

T h e fi r s t le g is la ti v e a cti o n c a m e i n 1 8 1 0 w h e n a g r o u p of K n o x C o u nt y 

r e si d e n t s, n e e di n g a b e tt e r w a y t o g et t h eir w a r e s t o m a r k et, p eti ti o n e d C o n g r e s s t o 

b uil d t h e w ate r w a y.

A s t h e c o u ntr y g re w , a n d b u si n e s s, i n d u str y a n d a g ri c u lt u r e e x p a n d e d, 

t h e n e e d f o r t h e c o n n e cti n g li n k a ff o r d e d b y t h e T e n n e s s e e - T o m bi g b e e g re w i n i m p o rta n c e 

a n d p ri o rit y . U n d e r c o n str u cti o n si n c e D e c e m b e r of 1 9 7 2, t h e b e n e fit s of t h e

T e n n e s s e e - T o m bi g b e e a r e a c c r ui n g d ail y, a n d i n t h e s e ti m e s of r a m p a nt i n fl ati o n, 

s pir ali n g u n e m pl o y m e nt a n d e n e r g y c ri s e s, t h e T e n n - T o m is a p r o je ct w h o se ti m e h a s 

c o m e.

T he 2 5 3 - m ile , i c e - f r e e, sl a c k - w a t e r r o ute w ill c o n n e ct t h e T e n n e s s e e R i v e r 

w it h t h e alr e a d y n a vi g a ble T o m bi g b e e - B la c k W a r ri o r S y ste m a n d w ill ti e t o g et h e r i n o n e 

v a st 1 6, 0 0 0 m il e i n la n d w ate r w a y s y ste m t h e f o ll o wi n g R i v e r s: T e n n e s s e e, C u m b e rla n d, 

O hi o, Ill i n ois , M o n o n g a h ela, A ll e g h e n y, T o m bi g b e c, W a r ri o r, C o o s a, A la b a m a 

C h att a h o o c hie , A p p ala c hic ola a n d F li n t. It w il l re d u c e t h e dis ta n c e fr o m m a n y i n la n d 

p o rts t o t h e S o ut h e a st e r n G ulf a n d t h e P o rt of M o bil e b y a s m u c h a s 8 0 0 m il e s a n d w ill 

m a k e m a n y S o ut h e a st e r n citi e s a p p r o xi m ate l y 1, 0 0 0 m il e s cl o s e r t o t h e n ati o n's 

h e a rtl a n d. T he c o m p r e h e n si v e ri v e r s y ste m e xte n d s fr o m t h e S o ut h e a ste r n G ulf t o 

t h e G re at L a k e sa n d fr o m T uls a, O kla h o m a t o P it ts b u r g h, P e n n s yl v a nia . It h a s b e e n 

e sti m ate d t h at s h o rt e r h a uls a n d r e d u c e d s hi p pi n g ti m e s w ill c ut tr a n s p o rt ati o n c o sts 

5 0 - 7 5 % .
6 7 8

T his , of c o u r s e, m e a n s t h at p r o d u c e r s, s hi p p e r s a n d c o n s u m e r s w ill 

e n j o y m il li o n s of d o ll a r s a y e a r i n s a vi n g s fr o m l o w e re d tr a n s p o rta ti o n c o sts .

I n w h at s p e cif ic a r e a s w ill t h e T e n n e s s e e - T o m bi g b e e h el p s ol v e s o m e of t h e 

n ati o n's t h o r n i e st p r o ble m s ?

B y i n h e r e nt n at u r e a n d t h e la w s of p h y sic s, s h all o w - d r a ft b a r g e tr a n s p o rta ti o n 

ta k e s l e s s e n e r g y a n d e ff o rt a n d is , t h e r e f o r e, c h e a p e r t h a n a n y ki n d of la n d tr a n s p o rta ti o n. 

T h e b e st e x a m ple is c e nt u rie s ol d. A y o k e o f o x e n o r a m ule c o ul d p ull s e v e r al t o n s of 

c a r g o o n a w ate r w a y, b ut o n l y a fe w h u n d re d p o u n ds o n la n d.

T o p ut t h is i n t o p r o p e r p e r s p e cti v e, a 2 0, 0 0 0 t o n b a r g e t o w m o vi n g al o n g a 

w ate r w a y c a n c a r r y a s m u c h t o n n a g e a s 4 0 0 ra il w a y c a r s o r 1, 0 0 0 tr u c k s a t o n e t h ir d 

t h e c o sts of t h e s e ot h e r tr a n s p o rta ti o n m o d e s.

A 1 9 7 0 st u d y b y t h e R a n d C o r p o r ati o n p r o v e s c o n cl u si v el y t h at w ate r w a y 

tr a n s p o rta ti o n is , b y f a r, t h e l e a st e n e r g y -i n te n si v e of a ll tr a n s p o rta ti o n m o d e s. O nl y 

5 0 0 B T U s a r e r e q u ir e d t o p r o d u c e o ne t o n m il e of s e r v ic e b y w ate r. It ta k e s 7 5 0 b y 

r ail, 2, 4 0 0 b y tr u c k a n d 6 3, 0 0 0 B T U s b y a i r t o p r o vi d e t h e s a m e s e r v i c e.

F r o m a n e c o n o m ic sta n d p oi n t, t h e st u d y re v e ale d t h at o n e d o ll a r i n 1 9 7 0 

w o u l d m o v e a t o n o f fr ei g ht fi v e m il e s b y a i r, 1 5 m il e s b y tr u c k, 1 8 0 m il e s b y r a il 

a n d 3 3 0 b y w ate r.

I n fl ati o n h a s n ot a ff e cte d w ate r w a y tr a n s p o rta ti o n c o sts a s s e ri o u sl y a s ot h e r 

m o d e s. W ate r w a y tr a n s p o rta ti o n is n ot a s s u bje ct t o la b o r c o sts a n d u s e s l e s s f u el 

a n d e n e r g y, s o t h e s p e cta c u la r ri s e i n f u el c o sts h a s n ot h u rt w ate r w a y o p e r ati o n s a s 

m u c h a s la n d o p e r ati o n s.

T o s u b sta nti ate o u r c o nte nti o n t h at t h e T e n n e s s e e - T o m bi g b e e w ill s a v e 

b u si n e s s a n d i n d u str y v a st a m o u nts of tr a n s p o rta ti o n d o ll a r s, a c o p y of a l e tt e r fr o m 

t h e vic e p r e si d e n t a n d g e n e r al m a n a g e r of R e v e re C o p p er a n d B r a s s C o., S c ott s b o r o , 

A la b a m a, is att a c h e d t o t h is sta t e m e n t. T his c o m p a n y al o n e w o ul d r e ali z e m illi o n s 

o f d o ll a r s i n s a vi n g s o n ce t h e T c n n - T o m i s i n o p e ra ti o n,

F u rt h e r, i n ai d i n g t h e e n e r g y c ri s i s, t h e T e n n e s s e e - T o m bi g b e e w ill o p e n 

u p v a st c o al d e p o sit s i n A la b a m a a n d M is sis si p p i w hic h h a v e n ot b e e n uti li z e d b e c a u s e 

tr a n s p o rta ti o n c o sts w e re p r o hi b it i v e. T h e T e n n - T o m w ill p r o vi d e t h is n e e d e d a rt e r y 

of c o m m e r c e w it h l o w -c o st w ate r tr a n s p o rta ti o n. U ti li z ati o n of t h e s e c o al d e p o sit s 

c o ul d g o a l o n g w a y t o w ar d h el p i n g t h is n ati o n's e n e r g y s h o rta g e.

A ls o, t h e Sta te s of A la b a m a, M is sis si p pi a n d T e n n e s s e e a r e w o r k i n g t o g et h e r 

i n a c o m p a ct t o d e v el o p a s u p e r p o rt off t h e A la b a m a - M is sis si p pi c o a st. T his s u p e r p o rt 

w o u l d u nl o a d t h e gia nt oil ta n k e r s w hic h a r e t o o bi g t o e n te r si n gle G ulf o r A tl a nti c 

p o rt.
6 7 9

- 3 -

B a r g e tr a i n s c o ul d c a r r y o il a n d ot h e r p r o d u cts fr o m f o r ei g n c o u ntr ie s 

a s w ell a s p r o d u cts fr o m s o ut h e r n f a r m s, f o r e st s, m i n e s, f a ct o rie s a n d b u si n e s s e s 

via t h e s h o rt e r, sl a c k - w a t e r r o ute of t h e T e n n e s s e e - T o m bi g b e e t o t h e n ati o n's 

h e a rtl a n d. T he y c o ul d t h e n r e t u r n c a r r y i n g t h e p r o d u cts of m i d w e ste r n f a r m s a n d 

i n d u stri al c e n t e r s s u c h a s M i n n e a p oli s, C hic a g o, D etr o it, St. L o uis, C i n ci n n ati,

L o uis ville a n d P it ts b u r g h, ta ki n g a d v a nta g e o f t h e s w if t c u r r e n t of t h e M is sis si p p i 

R i v e r. T his w o u l d sti m u la te f o r ei g n tr a d e a n d h el p o u r b ala n c e of p a y m e nts.

O il fr o m t h e G ulf C o a st, p h o s p h ate s fr o m F l o ri d a, c o al, ti m b e r, c ott o n, 

s o y b e a n s, e t c ., fr o m A la b a m a, M is sis si p pi a n d T e n n e s s e e w o u l d m o v e i n t o t h e 

M i d w es t at c h e a p e r p ri c e s a n d r et u r n w it h g r ai n , st e e l a n d ot h e r p r o d u cts t o t h e 

S o ut h e a st o r f o r e x p o rt t o f o r ei g n c o u n tr ie s.

A la b a m a G o v e r n o r G e o r g e W all a c e, c h air m a n o f t h e fi v e - st at e T e n n e s s e e - 

T o m bi g b ee W ate r w a y D e v el o p m e nt A ut h o ri t y , o n A p ril 2 8 t ol d t h e H o u se A p p r o p ria ti o n s 

P u bli c W o r k s S u b c o m m itte e t h at t h e T e n n - T o m c a n b e a vit al f o r c e i n p r o d u ci n g j o b s 

t o fi g ht u n e m pl o y m e nt.

W hil e t h o u s a n d s of j o b s h a v e b e e n a n d w il l b e c r e at e d d u ri n g c o n str u cti o n

of t h e W ate r w a y — - a s m a n y a s 3, 0 0 0 e v e nt u all y ---- t h is n u m b e r of j o b s is i n fi n it e si m al

c o m p a re d t o t h e b e n e fit s t h at w ill a c c r u e o n c e t h e p r o j e ct is c o m ple te d.

Q u oti n g fr o m G o v e r n o r W alla c e's sta t e m e nt: " St u die s h a v e p r o je cte d t h at 

2 8, 0 0 0 n e w j o b s w ill be c r e at e d d u ri n g t h e n e xt fe w y e a r s a s t h e r e s u lt of t h e T e n n - 

T o m . W e b eli e v e t h o s e p r oje cti o n s t o be c o n s e r v ati v e b e c a u s e t h e s a m e st u d y p r e dic te d 

t h at $ 2. 6 billi o n i n ne w i n d u str y w o u l d l o c ate d u ri n g t h e n e xt 5 0 y e a r s. B ut alr e a d y, 

j u st i n t h e p a st t h r e e y e a r s, w e h a v e h a d i n e x c e s s of $ 1 billi o n i n ne w i n d u str y a n n o u n ce d 

al o n g t h e w ate r w a y r o u t e. "

St u die s als o s h o w t h at t h e T e n n - T o m a r e a w il l be g r o w i n g m u c h f a st e r t h a n 

t h e n ati o n al a v e r a g e i n p o p ula ti o n, p e r c a pit a i n c o m e, e m pl o y m e nt a n d m a n u fa ct u ri n g 

e a r ni n g s. T h e s e fi g u r e s a r e n ot fr o m o u r st u d ie s, b ut b y t h e U. S. D e p a rt m e nt of 

C o m m e r c e. I n d u str y is m o vi n g s o ut h a n d d e v el o p m e nt of t h e S o ut h b y s u c h p r o je cts a s 

t h e T e n n - T o m i s ste m m i n g t h e o u t- m i g r ati o n fr o m t h e S o ut h e a st t o m etr o p oli t a n a r e a s 

i n t h e N o rt h e r n a n d E a st e r n s e cti o n s o f o u r c o u ntr y. D e v el o p m e nt s u c h a s T e n n - T o m 

w ill h el p t o e a s e t h e n ati o n's p o p ula ti o n d is tr i b u ti o n p r o ble m s a n d t h e m i s e ri e s of u r b a n 

s p r a w l.

W e a r e als o p r o u d of t h e fa ct t h at T e n n - T o m is t h e fi r st w ate r w a y b uilt 

u n d e r t h e N ati o n al E n vir o n m e nta l P oli c y A ct. A n e a rl y s uit s e e ki n g t o h alt c o n str u cti o n 

w a s " d i s m i s s e d w it h p r ej u dic e " i n f e d e r al d i s t ri c t c o u rt, m e a ni n g t h at it c a n n ot be file d 

a g ai n . T he Fif t h C ir c u it C o u rt of A p p e als i n Ne w O rle a n s u p h el d t h e fi n di n g s. It w a s 

n ot a p p e ale d t o t h e S u p r e m e C o u rt, a n d ti m e h a s r u n o ut.

Y e s, t h e r e w ill be s o m e a d v e r s e e n vir o n m e nta l e ff e cts d u ri n g c o n str u cti o n. 

B ut o n c e t h e w ate r w a y i s c o m ple te d, it w il l c r e at e a r e c r e ati o n p a r a d is e i n a r e a s t h at 

a r e n o w la n dl o c k e d a n d sta r v e d f o r w ate r r e s o u r c e r e c r e ati o n s u c h a s s w i m m i n g, fi s h i n g, 

b o ati n g, c a m pi n g a n d pic nic ki n g. T h e T e n n - T o m w il l r e s u lt i n f a r m o r e e n vir o n m e nta l 

pl u s s e s t h a n d etri m e n t s.
6 8 0

W e h a v e le d t h e w a y i n s u g g e sti n g a n d m a ki n g m a n y c h a n g e s t o e n h a n c e 

t h e e n vir o n m e nta l q u alit y of t h e T e n n - T o m . W e sta n d re a d y n o w t o w o r k w it h a n y o n e 

i n t e r e st e d t o i n s u r e t h at t h e T e n n - T o m w ill b e a m o d el w ate r w a y i n a ll r e s p e c t s, i n cl u di n g 

e n vir o n m e nta l.

Fi n all y, t h is p r o j e ct h a s a n d d o e s e nj o y w i d e, b i p a rti s a n p oli ti c al 

s u p p o rt. T y pic al of o u r s u p p o rt, o n A p ril 2 8 t h is y e a r, w e ha d s o m e 3 0 c o n g r e s s m e n 

fr o m fi v e st at e s, pl u s t h r e e g o v e r n o r s, te sti f y i n g o n o u r b e h alf f o r c o n str u cti o n 

f u n d s d u ri n g fis c al 1 9 7 6 „ M e m b e rs of C o n g r e s s, g o v e r n o r s, sta te le g i sl at o r s a n d, 

m o st i m p o rta ntl y, p e o ple fr o m b ot h m aj o r p a rti e s a n d a ll w al k s o f li f e h a v e re c o g niz e d 

t h e v a st p ote nti al o f t h is w ate r w a y, a n d h a v e, a c c o r di n gl y , s u p p o rt e d t h e T e n n e s s e e - 

T o m bi g b e e.

B e c a u s e o f t h at, w e a r e still o n s c h e d ule f o r c o m ple ti o n i n 1 9 8 1 a n d t w o 

y e a r s a h e a d of t h e o ri g i n al c o n str u cti o n s c h e d ule .

W e h a v e p a s s e d t h e t e st of all t h r e e b r a n c h e s of g o v e r n m e nt. T h e E x e c uti v e, 

b y p utti n g t h e p r o je ct i n t h e b u d g et; t h e l e g is la t u r e b y a ut h o riz i n g a n d a p p r o p ria ti n g 

c o n str u cti o n f u n d s a n d t h e J u d ic i al b y fi n di n g f o r u s i n t h e e n vir o n m e nta l s uit. N o w 

t h e m o st te ste d w ate r w a y i n h i st o r y, w e sta n d r e a d y t o p r o v e o u r w o rt h.

S o w e s u b m it t o t h is dis ti n g uis h e d c o m m it te e a s y n o p sis o f t h e 

T e n n e s s e e - T o m bi g b e e W ate r w a y b e n e fi ts a n d p ote nti al i n t h e si n c e r e h o p e t h at 

t h is c o m m itte e w ill s u p p o rt t h is p r o je ct w he n w e c o m e u n d e r y o u r j u st c o n si d e r ati o n.

W e h o p e, a n d w e e a r n e stl y b eli e v e, t h at i n y o u r w is d o m , k n o wle d g e a n d 

e x p e rie n c e, y o u t o o w ill r e c o g niz e t h e i m p o rta n c e a n d via bil it y of w ate r r e s o u r c e 

d e v el o p m e nt t h r o u g h o ut o u r g r e a t c o u ntr y.

B e c a u s e w e b eli e v e s u c h d e v el o p m e nt m a k e s o u r c o u ntr y str o n g e r.

T ha n k y o u s o m u c h.
6 8 1

S t a t e m e n t F o r T h e 

J o i n t A p p r o p r i a t i o n s C o m m i t t e e 

U . S . H o u s e a n d S e a n t e 

T o B e P r e s e n t e d A p r i l 2 8 , 1 9 7 5

T h e R e v e r e C o p p e r a n d B r a s s C o r p o r a t i o n h a s s t u d i e d t h e T e n n e s s e e - 

T o m b i g b e e W a t e r w a y p r o p o s a l a n d h a s e v a l u a t e d i t ’ s i m p a c t o n t h e 

R e v e r e o p e r a t i o n s . O f t h e v a r i o u s R e v e r e g r o u p s , t h e P r i m a r y 

A l u m i n u m D i v i s i o n w o u l d r e c e i v e t h e g r e a t e s t b e n e f i t f r o m t h e 

p r o p o s e d w a t e r w a y .

T h e P r i m a r y A l u m i n u m D i v i s i o n o f t h e R e v e r e C o p p e r a n d B r a s s 

C o r p o r a t i o n c o n s i s t s o f a n a l u m i n u m r e d u c t i o n p l a n t i n S c o t t s b o r o , 

A l a b a m a , a c a r b o n p l a n t a l s o i n S c o t t s b o r o , a n d a n a l u m i n a p l a n t i n

J a m a i c a .

T h e J a m a i c a n o p e r a t i o n r e f i n e s b a u x i t e i n t o a l u m i n a w h i c h i s 

t r a n s p o r t e d b y s h i p t o t h e G u l f C o a s t . T h e s h i p s a r e u n l o a d e d 

i n t o b a r g e s w h i c h a r e m o v e d u p t h e M i s s i s s i p p i , O h i o a n d T e n n e s s e e 

R i v e r s t o S c o t t s b o r o , A l a b a m a . I n S c o t t s b o r o t h e a l u m i n a i s u s e d 

i n t h e R e d u c t i o n P l a n t a s t h e b a s i c r a w m a t e r i a l t o p r o d u c e p r i m a r y 

a l u m i n u m . A p p r o x i m a t e l y 2 2 0 , 0 0 0 t o n s p e r y e a r o f a l u m i n a i s 

s h i p p e d b y b a r g e i n t o S c o t t s b o r o 

a t

 a n a n n u a l c o s t i n e x c e s s o f o n e 

m i l l i o n d o l l a r s . R e v e r e h a s r e c e n t l y c o m p l e t e d a f e a s i b i l i t y s t u d y 

t o i n c r e a s e t h e c a p a c i t y o f t h e S c o t t s b o r o o p e r a t i o n s w h i c h w o u l d 

t r i p l e t h e a m o u n t o f a l u m i n a u s e d . T h i s w o u l d r e s u l t i n a 

t r a n s p o r t a t i o n c o s t o f m o r e t h a n t h r e e m i l l i o n d o l l a r s p e r y e a r t o 

b a r g e t h e a l u m i n a f r o m t h e G u l f C o a s t t o S c o t t s b o r o . T h e p r o p o s e d 

w a t e r w a y w o u l d g r e a t l y r e d u c e t h e d i s t a n c e b y w a t e r f r o m t h e G u l f 

C o a s t t o S c o t t s b o r o , w h i c h w o u l d r e s u l t i n b e t t e r b a r g e s e r v i c e a t
6 8 2

P a g e 

a m u c h l o w e r c o s t .

I n a d d i t i o n t o t h e p r o d u c t i o n o f p r i m a r y a l u m i n u m , t h e C o r p o r a t i o n 

a l s o p r o d u c e s c a r b o n e l e c t r o d e s ( a n o d e b l o c k s ) a n d f a b r i c a t e d 

a l u m i n u m p r o d u c t s a t S c o t t s b o r o . A l s o , a f e a s i b i l i t y s t u d y t o 

p r o d u c e c a t h o d e b l o c k s f o r i n t e r n a l c o n s u m p t i o n a n d f o r s a l e s i n t o 

t h e i n t e r n a t i o n a l m a r k e t w i l l b e c o m p l e t e d i n t h e n e a r f u t u r e .

T h e s e m a t e r i a l s a r e s o l d t o b o t h d o m e s t i c a n d f o r e i g n c u s t o m e r s . 

R e v e r e i s c u r r e n t l y c o n d u c t i n g a n a c t i v e c a m p a i g n t o i n c r e a s e t h e 

s a l e o f t h e s e p r o d u c t s i n f o r e i g n m a r k e t s a n d t h e p r o p o s e d w a t e r w a y 

w o u l d g r e a t l y a i d R e v e r e i n t h i s e f f o r t .

I n a d d i t i o n t o t h e a l u m i n a m e n t i o n e d e a r l i e r , R e v e r e i m p o r t s m a n y 

r a w m a t e r i a l s , m a c h i n e r y a n d o t h e r s u p p l i e s f r o m E u r o p e a n d o t h e r 

f o r e i g n s o u r c e s . S o m e o f t h i s m a t e r i a l c a n b e s h i p p e d b y b a r g e a n d 

t h e p r o p o s e d w a t e r w a y s w o u l d l o w e r t h e t r a n s p o r t a t i o n c o s t s t o m o v e 

t h e m i n t o S c o t t s b o r o . T h e s e l o w e r c o s t s w o u l d h e l p t o k e e p R e v e r e 

m o r e c o m p e t i t i v e w i t h f o r e i g n p r o d u c e r s .

I n s u m m a r y , t h e R e v e r e C o p p e r a n d B r a s s C o r p o r a t i o n a g r e e s w i t h t h e 

p r o p o s e d T e n n e s s c e - T o m b i g b c e W a t e r w a y a n d b e l i e v e s t h a t i t w i l l h e l p 

t o p r o m o t e a n d d e v e l o p t h e S o u t h e a s t e r n p a r t o f t h e U n i t e d S t a t e s . 

T h e p r o p o s e d w a t e r w a y i s v i t a l t o t h o s e i n d u s t r i e s i n t h e S o u t h e a s t 

w h o h o p e t o c o m p e t e i n a w o r l d w i d e m a r k e t .

R . R e n t s c h

V i c e - P r e s i d e n t a n d G e n e r a l M a n a g e r

P r i m a r y A l u m i n u m D i v i s i o n

R e v e r e C o p p e r a n d B r a s s C o r p o r a t i o n
6 8 3

T A T U S S H E E T

G A I N E S V I L L E L O C K

T h e c o n tr a ct w as a w a r d e d t o G u y H. J a m e s C o n str u cti o n C o m p a n y, 

O kla h o m a C it y, O kl a. , f o r $ 1 8, 5 0 4. 5 7 6 a n d w or k w as st a rt e d i n D e c e m b e r of 1 9 7 2.

T h e l o c k is n o w 6 2 % c o m ple te d a n d is d ue f o r c o m ple ti o n i n A p ril, 1 9 7 6.

G A I N E S V I L L E D A M A N D S PI L L W A Y

T h e c o ntr a ct w as a w a r d e d t o A 1 J o h n s o n C o n str u cti o n C o m p a n y, M i n n e a p oli s

M i n n., f o r $ 1 4, 1 5 1, 9 2 2. W or k st a rt e d o n t h e s pill w a y l a st I a n. 1 7, 1 9 7 4, a n d is n o w

3 9 % c o m ple te d.

T h e p r o je cts c u r r e n tl y e m pl o y o v er 3 0 0 p e o ple.

A L I C E V I L L E DI V E R SI O N C H A N N E L

T h e c o ntr a ct w as a w a r d e d t o B a rc o C o n str u cti o n C o m p a n y, J a c k s o n vil le , 

F l a ., i n t h e a m o u nt of $ 1, 5 3 6, 1 2 0. W or k w as st a rt e d A p ril 1, 1 9 7 4 a n d is 9 9 % c o m ple te .

T h e p r oje ct c all e d f o r e x c a v ati n g a d i v e r si o n c h a n n el 5, 7 0 0 f e et l o n g a n d

re m o vi n g 1. 0 7 4, 0 0 0 c u bic y a r d s of m a t e ri a l s.

Y E L L O W C R E E K

T h e c o n tr a ct w as a w a r d e d t o D u n b ar a n d S ulli v a n, D e a r b o r n, M ic h., f o r

$ 7, 5 9 9, 0 0 0 a n d w or k st a rt e d J ul y 1 5 a ft e r t h e o ff ic ia l g r o u n d b r e a ki n g o n J ul y 8, 1 9 7 4.

T h e c o n tr a ct c all s f o r r e m o vi n g 2, 6 0 5, 0 0 0 c u bic y a r d s of m a t e ri a l s,

i n cl u di n g 4 0 5, 0 0 0 c u bic y a r d s of r o c k, fr o m t h r e e s e p a r at e sit e s i n t h e Y ell o w C re e k

e m b a y m e nt. T h e p r oje ct is a p p r o xi m ate l y fi v e m il e s l o n g a n d r u n s fr o m t h e j u n ct u r e

( M O R E)

5 4- 2 3 9 0 - 7 5 - 4 4
6 8 4

C E 2

S T A T U S S H E E T

of t h e T e n n e s s e e Ri v e r w it h Y ell o w C r e e k t o a p oi n t w it hi n 2 0 0 f e et of Hi g h w a y 2 5.

T h e c o ntr a ct ti m e i a 6 0 0 w o r k i n g d a y s. T h e p r oj e c t n o w e m pl o y s 7 5 a n d

i f 4 4. 6 % c a nfl d e d. T h e y a r e w o r ki n g s e v e n d a y s a w e e k o n t h i s p r oj e c t.

D E M O P O LI S P O O L N A VI G A TI O N C H A N N E L

T h e c o ntr a ct w a s a w a r d e d t o W illi a m s - M c . W illi a m s D r e d gi n g C o m p a n y of 

N e w O rl e a n s. L a ., f o r $ 5 , 7 5 6, 5 7 9.

D e m o p oli s P o ol w o r k i s n o w 6. 0 % c o m pl e t e d.

D e m o p oli s P o ol w o r k i n v ol v e s e x c a v ati n g 4. 5 m illi o n c u bi c y a r d s of m a t e ri a l 

f r o m a 3 6. 3 m il e s e cti o n of t h e ri v e r i n Al a b a m a' s G r e e n e a n d S u m t e r c o u nti e s. P u r p o s 

of t h e w o r k i s t o e a s e b e n d s a n d wi d e n n a r r o w r e a c h e s of t h e ri v e r.

T h e p r oj e ct i s e x p e ct e d t o t a k e t w o y e a r s f o r c o m pl e ti o n.

A L I C E V I L L E L O C K A N D D A M

T h e c o ntr a ct w a s a w a r d e d t o A 1 J o h n s o n C o n str u cti o n C o m p a n y, Mi n n e a p oli s 

M i n n. , f o r $ 4 7, 2 7 4, 2 0 8 o n D e c e m b e r 1 3. G r o u n d B r e a ki n g c e r e m o ni e s w e r e h el d 

F e b r u a r y 1 5 a n d a ct u al cl e a ri n g of t h e a c c e s s r o a d a n d l o c k sit e a r e n o w u n d e r w a y. It 

i s s c h e d ul e d f o r c o m pl e ti o n i n 1 9 7 9.

C O L U M B U S L O C K A N D D A M

T h e c o ntr a ct w a s a w a r d e d o n F e b r u a r y 2 8 t o a t ri o of c o n tr a c t o r s , w o r k i n g

i n a j o i n t v e nt u r e. T h e y a r e t h e A r u n d el C o r p . , B alti m o r e , M D . ; G o r d o n H. B all

C o n str u cti o n C o. , D a n vill e , C alif. ; a n d G u y F. A t k i n s o n C o. , S a n F r a n ci s c o . C alif.

T h e a m o u nt of t h e c o n tr a ct i s $ 4 5, 9 7 2, 3 0 7 a n d w o r k i s s c h e d ul e d t o s t a rt i n l a t e s p ri n g . 

It i s al s o s c h e d ul e d f o r c o m pl e ti o n i n 1 9 7 9.

/ u n n n
6 8 5

G E 3

S T A T U S S H E E T

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i n t h i s c o u n t r y a n d h a s b o u n d l e s s c a p a c i t y t o p r o d u c e 

f o o d a n d f i b e r . H o w e v e r , i n t h e l a s t t h r e e y e a r s i n 

t h e l o w e r d e l t a a r e a t h e r e h a v e b e e n f l o o d c o n d i t i o n s 

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a r e s u l t i n g l o s s r u n n i n g i n t h e m i l l i o n s . I t i s q u i t e 

e v i d e n t t h a t t h e d r a i n a g e s i t u t i o n i s e n t i r e l y i n ­

a d e q u a t e . C o n g r e s s s h o u l d t a k e w h a t e v e r s t e p s t h a t a r e 

n e c e s s a r y t o s e e t h a t t h i s f l o o d i n g s i t u a t i o n i s 

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a r e s o d e s p e r a t e l y n e e d e d b y t h e u n d e r d e v e l o p e d 

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a s b e i n g a l e a d e r , b u t w e w o n d e r i f w e a r e s h o w i n g m u c h 

l e a d e r s h i p b y a l l o w i n g s u c h f l o o d c o n d i t i o n s a s w e 

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T h e G r e e n v i l l e A r e a C h a m b e r o f C o m m e r c e a t i t ' s M a y 1 5 , 

B o a r d M e e t i n g r e - a f f i r m e d i t ' s p o s i t i o n c o n c e r n i n g " u s e r 

c h a r g e s " o n t h e I n l a n d W a t e r w a y s S y s t e m . B e i n g a n 

i n d u s t r i a l c e n t e r l o c a t e d o n t h e M i s s i s s i p p i R i v e r , 

G r e e n v i l l e c e r t a i n l y r e c o g n i z e s t h e b e n f i t s o f l o w c o s t 

w a t e r t r a n s p o r t a t i o n , a n d c a n e a s i l y s e e t h e b e n f i t s 

a c c r u e d n a t i o n w i d e a n d t h e s t i m u l u s l o w c o s t w a t e r 

t r a n s p o r t a t i o n a f f o r d s t o j o b c r e a t i n g i n d u s t r i a l g r o w t h . 

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t h e l o c a l e c o n o m y a s w e l l a s t h e e c o n o m y o f l a r g e r e g i o n a l 

a r e a s t h r o u g h o u t t h i s c o u n t r y . I n a d d i t i o n t o r e h a b i l i ­

t a t i n g m a n y a r e a s t h r o u g h o u t t h i s c o u n t r y , l o w c o s t w a t e r 

t r a n s p o r t a t i o n s e r v e s a s a s t i m u l u s t o t h e l o c a l e c o n o m y . 

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c o u n t r y a g a i n s t f o r e g i n c o m p e t i t i o n . F o r t h e s e r e a s o n t h e 

G r e e n v i l l e A r e a C h a m b e r o f C o m m e r c e r e - a f f i r m s i t ' s 

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t hi s st at e m e nt t o y o ur c o m mitt e e t h at i s s e e ki n g t o u p d at e it s i nf o r m ati o n o n 

t h e p u bli c w or k s a cti viti e s of t h e U. S. C or p s of E n gi n e er s. We b eli e v e t h at 

i t i s n e c e s s ar y f o r t h o s e c o m mitt e e s c h ar g ed wit h t h e r e s p o n si bilit y of o v ers e ei n g t h e a cti viti e s of f e d er al a g e n ci e s t o h av e c o m pl et e i nf or m ati o n o n t h e 

j o b t h e y h av e d on e a nd t h e w or k t h at i s n ee de d t o b e d on e t o c o m pl et e t h eir 

a ut h ori z e d w or k s.

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s o me of t h e i m p ort a n c e of t h e w or k of t h e C or ps.

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T h e M i s s i s s i p p i F a r m B u r e a u F e d e r a t i o n i s a g e n e r a l f a r m o r g a n i z a t i o n 

t h a t c o u n t s o v e r 1 0 0 , 0 0 0 f a r m f a m i l i e s w i t h i n i t s m e m b e r s h i p . I t s m e m b e r s a r e 

v e r y d e e p l y c o n c e r n e d a b o u t r e g u l a t i o n s t h a t h a v e e f f e c t o n t h e e v e r y d a y l i f e 

o f p e o p l e t h r o u g h o u t t h e U n i t e d S t a t e s o f A m e r i c a . A t a t i m e w h e n w e n e e d l e s s 

g o v e r n m e n t , w e f i n d r e g u l a t i o n s t h a t a r e v e r y r e s t r i c t i v e b e i n g i m p l e m e n t e d b y 

m a n y F e d e r a l a g e n c i e s t h a t a r e o u t s i d e t h e a r e a s t h a t t h e C o n g r e s s i n t e n d e d f o r

t h e m t o f u n c t i o n .

Y o u r p r e s e n t c o m m i t t e e h e a r i n g s d e a l w i t h a n a r e a t h a t i s m o s t i m p o r t a n t 

t o t h e p e o p l e o f t h e M i s s i s s i p p i R i v e r V a l l e y a r e a . W h e n w e t h i n k o f t h e U . S.

A r m y C o r p s o f E n g i n e e r s , w e t h i n k o f a n a g e n c y o f t h e F e d e r a l g o v e r n m e n t t h a t 

h a s d o n e a n o u t s t a n d i n g j o b i n m a n a g i n g t h e l a r g e r s t r e a m s o f t h i s n a t i o n f o r 

f l o o d c o n t r o l , n a v i g a t i o n , a n d o t h e r p u r p o s e s . T h e j o b t h e C o r p s h a s d o n e i n 

t h e m a n a g e m e n t o f t h e p o r t s o f t h i s n a t i o n , b o t h i n l a n d a n d c o a s t p o r t s , h a s b e e n 

r e m a r k a b l e a n d t h e C o r p s i s t o b e c o m m e n d e d f o r s e r v i c i n g A m e r i c a i n s u c h a w a y t h a t 

a m a j o r p o r t i o n o f o u r p o p u l a t i o n i s s o w e l l t a k e n c a r e o f .

T h e i n l a n d w a t e r w a y s o f t h i s n a t i o n p l a y a m a j o r p a r t i n t h e t r a n s p o r t ­

i n g o f a g r i c u l t u r a l p r o d u c t s f r o m t h e f a r m t o t h e m a r k e t p l a c e w h e t h e r f o r d o m e s t i c 

o r e x p o r t u s e a n d t o d a y w e a r e r e a p i n g t h e b e n e f i t s o f a p l a n o n l y p a r t c o m p l e t e d . 

T h e C o n g r e s s o f t h e U n i t e d S t a t e s n e e d s t o p u s h t o c o m p l e t i o n t h e p l a n s t h a t w i l l 

e v e n t u a l l y c o n t r o l f l o o d i n g , o f f e r a d d i t i o n a l n a v i g a t i o n p o s s i b i l i t i e s , r e c r e a t i o n ­

a l a r e a s a n d a s o u r c e o f e n e r g y t h r o u g h h y d r o e l e c t r i c p o w e r g e n e r a t i o n . T h i s i s 

o n e a r e a i n w h i c h g o v e r n m e n t c a n b e o f g r e a t v a l u e t o i t s p e o p l e i n p e r f o r m i n g 

a s e r v i c e t h a t t h e y c a n ' t d o t h e m s e l v e s .
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o f t h i s c o u n t r y c o n t i n u e t o b e a t o l l f r e e o p e r a t i o n . T h i s a l l o w s f a r m 

p r o d u c t s t o b e m o v e d b y t h i s m e t h o d a t a m i n i m u m e x p e n s e t o t h e p r o d u c e r .

T h e o p e r a t i o n o f t h e p o r t s b y t h e C o r p s c a n n o t b e b a s e d u p o n p a y m e n t o f 

a u s e r ' s f e e o n t h o s e w h o u s e t h e s e f a c i l i t i e s . W e n e e d t h e s u p p o r t o f 

y o u r c o m m i t t e e o n t h e s e p o i n t s .

A n o t h e r a r e a t h e C o r p s o f E n g i n e e r s f i n d t h e m s e l v e s I n a s a r e s u l t 

o f a c o u r t o r d e r r a t h e r t h e i r o w n c h o o s i n g c a n c r e a t e h a v o c i n t h e r u r a l 

a r e a s o f t h i s n a t i o n . T h e r e g u l a t i o n o f a l l w a t e r s r a t h e r t h a n t h e 

n a v i g a b l e s t r e a m s a p p e a r s t o b e o u t s i d e t h e i n t e n t o f C o n g r e s s . I t w o u l d 

a p p e a r t o u s t h a t t h i s i s l a n d u s e c o n t r o l b y t h e b a c k d o o r m e t h o d . T h i s 

i s a n a r e a t h a t n e e d s t h e i n rn e di a te a t t e n t i o n o f t h e a p p r o p r i a t e c o m m i t t e e s 

o f t h e C o n g r e s s r a t h e r t h a n a c o u r t d e c r e e .

I f t h e f a n n e r s o f t h i s n a t i o n f i n d t h e m s e l v e s s o r e g u l a t e d b y s u c h 

d e c r e e s t h e y c a n o n l y t u r n t o t h e i r e l e c t e d o f f i c i a l s a n d a s k f o r r e l i e f .

T h i s I n c r e a s e s t h e w o r k o f t h o s e p e o p l e a t a t i m e w h e n a l l a r e h a r d p r e s s e d 

t o g e t t h e j o b d o n e .

W e a r e d e l i g h t e d t h a t t h e W a t e r R e s o u r c e s S u b c o m m i t t e e i s l o o k i n g i n t o 

s o m e o f t h e s e a r e a s o f c o n c e r n .

W e a r e d e e p l y a p p r e c i a t i v e o f t h e o p p o r t u n i t y t o p r e s e n t t h i s s t a t e m e n t 

t o t h e c o m m i t t e e .
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ri v e r w hic h b e a r s t h e s a m e n a m e.

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p a rt s of w h at is n o w C a n a d a w e r e r u le d fr o m t h e F r e n c h h e a d q u a rte r s

at t h e M i s si s si p p i G ul f C o a st. T h e fl a g of E n gla n d a n d S p ai n als o fl e w

al o n g o u r ri v e r.

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w a t e r a n d a p ri m a r y m e a n s o f t r a n s p o rt a ti o n .

It w a s al o n g t h is ri v e r i n t h e y e a r 1 7 0 0 t h at d'I b e r v ill e s hi p p e d

t h e fi r s t c o p p e r o r e fr o m t h e L a k e S u p e ri o r a r e a d o w n t h e M i s sis si p p i

t o B il o xi, a n d t h e n tr a n s s h i p p e d it t o F r a n c e.
6 9 4

g e 2

M a y 1 6, 1 9 7 5 

R & H

I a m c o n fi d e nt t h at t h is C o m m it te e w il l b e p r o vi d e d w it h a m ple

st a ti sti c a l d ata o n t h e v ol u m e s of w a t e r - b o r n e tr a f fi c o n t h e ri v e r;

a n d o n t h e e c o n o m ic al v al u e of t h e c r o p l a n d s, h o m e s a n d i n d u strie s

p r o t e cte d b y t h e le v e e s y ste m b ot h o n t h e m ai n ste m a n d t h e

t ri b u t a ri e s of t h e M i s sis si p p i.

O u r A s s o cia ti o n w o u l d li k e t o s p e a k b ri e fl y t o t h e f o ll y o f t h e

r e c e n t b e n e fi ci a r y - - pa y c o n c e pt a d v a n c e d b y t h e N ati o n al W ate r

C o m m is si o n s e v e r a l y e a r s a g o a n d w hic h is n o w b ei n g gi v e n m o r e

att e nti o n t h a n it d e s e r v e s.

We w o ul d li k e t o c all t o t h e att e nti o n o f t h e C o m m itte e t h at n ot

a si n gle m e m b e r of t h at C o m m is si o n w a s a r e si d e n t of a n y of t h e f o rt y -

o n e st a t e s d r ai n e d b y t h e M i s sis si p p i R i v e r.

T h e C h air m a n w a s fr o m N e w Y o r k , t h r e e m e m b e r s w e r e fr o m t h e

W e st C o a st, o n e fr o m t h e R o c k y M o u nta i n st ate of M o nta n a, o n e fr o m t h e

pla i n s of T e x a s a n d o n e fr o m t h e d e s e rt st a t e of A riz o n a. W e d o n ot k n o w

b y w h at p r o vi d e n c e t h is c o m e s t o p a s s, b ut w e h o p e t h at t h e C o m m it te e
6 9 5

g e 3

M a y 1 6, 1 9 7 5 

R & H

w il l ta k e n ote t h at t h e r e w a s n o v oic e o n t h at C o m m is si o n r e p r e s e n ti n g

t h e a r e a s of t h is n ati o n m o st d ir e ctl y a ffe cte d b y t h e ir r e c o m m e n d ati o n s.

W e w o ul d li k e f o r y o u r C o m m itte e t o ta k e n oti c e t h at e v e r y n e w

h o m e, e v e r y ne w p a r ki n g l o t, e v e r y n e w d r ai n a g e dit c h pla c e d i n t h e s e

f o rt y - o n e st a t e s i n c r e a s e s t h e q u a ntit y a n d s p e e d o f r u n o ff fr o m

p r e ci p it ati o n a n d t h at e v e r y d r o p of t h at p r e ci p at ati o n c o m e s d o w n t h is

ri v e r. Y o u c a n sta n d o n t h e V ic k s b u r g b ri d g e a n d w atc h t h e e n ti r e

str e a m fl o w of t h e O hi o, t h e T e n n e s s e e, t h e M i s s o u ri, a n d t h o u s a n d s

o f s m a ll e r ri v e r s, c r e e k s, st r e a m s, all c r o w d e d t o g et h e r o n t h e w a y t o

t h e G ul f.

T his is t h e t h ir d s u c c e s si v e y e a r d u ri n g w hic h t h e le v e e s y ste m

h a s b e e n s e v e r el y ta x e d.

T h e c o n c e pt t h at t h e p e o ple i n t h e M i s si s si p p i D elt a o r t h e cit i z e n s

of Ne w O rle a n s s h o ul d r a i s e a n d str e n g t h e n le v e e s at t h e ir o w n e x p e n s e

t o p r o t e c t t h e m s el v e s fr o m t h e s e a c c e ll e r a t e d str e a m fl o w s is n eit h e r

l o gic al n o r e q uit a ble .
6 9 6

g e 4

M a y 1 6, 1 9 7 5 

R & H

I a m s u r e t h is C o m m itte e w il l c o n si d e r t h e a lt e r n a ti v e s of n ot

c o nti n ui n g t h e p r e s e n t f e d e r al n a vi g ati o n p r o g r a m s a n d t h e p r e s e n t

f e d e r a l s y ste m of fl o o d p r ote cti o n.

I c a n gi v e y o u a t y pic al ill u str a ti o n. J u st s o ut h o f t h is cit y t h e r e

is a st e a m - e l e c t ri c p o w er sta ti o n w it h a c a p a cit y of 1, 3 0 0, 0 0 0 K W.

T his sta ti o n w a s d e si g n e d t o b u r n n a t u r a l g a s, a f u el a b u n d a nt i n t h i s

r e gi o n. H o w e v e r, r e c e n t a cti o n b y t h e F e d e r al P o w e r C o m m is si o n

a b r o g ate d t h e p o w er c o m p a n y's l o n g -t e r m f u el c o n tr a ct s. T his

n e c e s sit at e d c o n v e r si o n of t h e sta ti o n t o a c c o m m o d ate t h e b u r ni n g of

f u el oil.

At f u ll c a p a cit y, t h is sta ti o n c o n s u m e s 4 0, 0 0 0 b a r r e l s of oil

p e r d a y, w hic h is r e c ei v e d b y b a r g e. If eit h e r r a il o r hi g h w a y

d e li v e ri e s h a d t o b e s u b sti t u te d f o r oil d e li v e ri e s, it w o ul d ta k e 1 6 0

h e ate d r a il ta n k c a r s p e r d a y a r ri v i n g , u nl o a di n g a n d r et u r n i n g ; o r a

6 0 0 0 g all o n h e ate d ta n k tr u c k a r ri v i n g a n d u nl o a di n g e v e r y fi v e m i n ute s

a r o u n d t h e cl o c k.
6 9 7

I ^ a g e 5

M a y 1 6, 1 9 7 5 

R & H

O b vi o u sl y, n eit h e r alt e r n ati v e is d e sir a b l e o r f e a si b l e. N eit h e r

t h e r a il o r hi g h w a y s y ste m i n t h is a r e a is a d e q u ate n o r c o ul d t h e e l e c t ri c

uti li t y c u st o m e r s a ff o r d t h e c o st of oil d eli v e r e d b y s u c h a s y ste m .

O ur ple a t o t h e C o m m itte e is t h at y o u m a k e y o u r fi n di n g s - - n ot

n e c e s s a ril y o n t h e e c o n o m ic s of t h e n a r r o w s t ri p of la n d al o n g t h e ri v e r

b a n k, b ut o n t h e f a ct t h at o u r w ate r w a y s a r e g r e a t n at u r a l r e s o u r c e s,

a n d u nle s s p r o p e rl y u ti li z e d, w il l h a v e a g rie v o u s i m p a ct o n t h e e c o n o m y

a n d w ell - b ei n g of o u r e n tir e c o u ntr y, i n cl u di n g N e w Y o r k , t h e W e st C o a st,

M o nta n a, T e x a s a n d A riz o n a.
6 9 8

S T A T E M E N T O F A N D E R S O N - T U L L Y ' C O M P A N Y

 a m M . E . W a r d , a t t o r n e y f o r A n d e r s o n - T u l l y C o m p a n y , 

a t i m b e r p r o d u c t s c o m p a n y , h e a d q u a r t e r e d i n M e m p h i s , T e n n e s s e e , 

w i t h m i l l s i n M e m p h i s a n d V i c k s b u r g , M i s s i s s i p p i . O u r C o m p a n y 

h a s h a d l a r g e e x p e r i e n c e o v e r t h e p a s t 9 0 y e a r s w i t h t h e 

M i s s i s s i p p i R i v e r a n d i t s t r i b u t a r i e s . F r o m t h a t e x p e r i e n c e , i t 

c a n a t t e s t w i t h c o n f i d e n c e t o t h e s p l e n d i d w o r k t h a t t h e M i s s i s s i p p i 

R i v e r C o m m i s s i o n a n d t h e C o r p s o f E n g i n e e r s h a v e d o n e t o w a r d 

c o n t r o l l i n g f l o o d i n g i n t h e M i s s i s s i p p i a l l u v i a l v a l l e y . W h i l e 

i t w i l l n e v e r b e p o s s i b l e t o c o m p l e t e l y h a r n e s s t h e d e s t r u c t i v e 

p o w e r o f t h e R i v e r , t h e C o r p s o f E n g i n e e r s h a s d o n e a m o s t 

e x c e l l e n t j o b i n c o n t r o l l i n g f l o o d s t o t h e g r e a t e s t e x t e n t 

p o s s i b l e a n d i n t h e p r o c e s s h a s c r e a t e d a m a r v e l o u s i n l a n d w a t e r ­

w a y t r a n s p o r t a t i o n s y s t e m . T h e C o r p s i s t o b e c o m m e n d e d .

E v e n t h e b e s t o f p r o j e c t s i n v a r i a b l y h a v e s o m e a d v e r s e 

s i d e e f f e c t s , a n d I w o u l d l i k e t o b r i n g t o y o u r a t t e n t i o n a m a t t e r 

w h i c h i s c a u s i n g o u r C o m p a n y a n d o t h e r t i m b e r o w n e r s i n t h e 

M i s s i s s i p p i a l l u v i a l v a l l e y a v e r y l a r g e a n d u n c a l l e d - f o r d a m a g e .

O u r C o m p a n y o w n s a s u b s t a n t i a l a c r e a g e o f t i m b e r l a n d s 

i n a n d a d j a c e n t t o t h e a l l u v i a l v a l l e y o f t h e M i s s i s s i p p i R i v e r , 

e x t e n d i n g g e n e r a l l y f r o m N e w M a d r i d , M i s s o u r i o n t h e n o r t h t o 

t h e s o u t h l i n e o f t h e S t a t e o f M i s s i s s i p p i o n t h e s o u t h . I n 

r e c e n t y e a r s , o u r C o m p a n y , a l o n g w i t h o t h e r t i m b e r p r o d u c t s c o m p a n i e s 

s i m i l a r l y l o c a t e d , h a s b e e n l o s i n g l a n d o r i s b e i n g f a c e d w i t h t h e 

l o s s o f l a n d t o t h e C o r p s o f E n g i n e e r s a s a r e s u l t o f t h e s o - c a l l e d 

m i t i g a t i o n p r o g r a m c o n t a i n e d i n t h e F i s h a n d W i l d l i f e C o - o r d i n a t i o n 

A c t o f 1 9 5 8 . T h i s c o n t i n u e d t h r e a t o f l o s s o f l a n d p r e s e n t s a 

p r o b l e m o f g r e a t m a g n i t u d e t o a l l c o m p a n i e s e n g a g e d i n t h i s 

b u s i n e s s a s w e l l a s t o i n d i v i d u a l l a n d o w n e r s w h o a r e t r y i n g t o 

p r e s e r v e t h e i r f o r e s t l a n d s .

W i t h o u t g o i n g i n t o t h e m e r i t s o r d e m e r i t s o f t h e 

C o - o r d i n a t i o n A c t , w e f e e l t h a t t h e i m p l e m e n t a t i o n o f t h e m i t i g a t i o n 

p r o c e s s s h o u l d b e c o n d u c t e d w i t h d u e r e g a r d t o t h e r i g h t s o f a l l 

c i t i z e n s , i n c l u d i n g t h e o w n e r s o f t i m b e r l a n d s . T h e c o n g r e s s i o n a l 

p u r p o s e o f t h e A c t w a s t o a u t h o r i z e a p l a n w h i c h h o p e f u l l y w o u l d 

r e s u l t i n m i t i g a t i o n o f w i l d l i f e l o s s r e s u l t i n g f r o m F e d e r a l W a t e r 

R e s o u r c e p r o j e c t s . W h i l e t h e p h i l o s o p h y b e h i n d t h i s p r o g r a m m a y 

b e g o o d , i t s a c t u a l i m p l e m e n t a t i o n b y t h e C o r p s o f E n g i n e e r s a n d 

t h e U n i t e d S t a t e s F i s h a n d W i l d l i f e S e r v i c e h a s b e e n d i s a s t r o u s .

S e l e c t i o n o f l a n d s t o b e a c q u i r e d h a s b e e n l e f t l a r g e l y 

t o t h e d e c i s i o n o f t h e U n i t e d S t a t e s F i s h a n d W i l d l i f e S e r v i c e 

a n d , a l m o s t w i t h o u t e x c e p t i o n , t h a t S e r v i c e h a s r e c o m m e n d e d a n d 

i s r e c o m m e n d i n g t h e a c q u i s i t i o n o f l a n d s o w n e d b y t i m b e r p r o d u c t s 

c o m p a n i e s a n d i n d i v i d u a l s w h i c h a r e a l r e a d y b e i n g u t i l i z e d t o 

t h e o p t i m u m , b o t h f o r t h e g r o w i n g o f t i m b e r , t h e p r o p a g a t i o n
6 9 9

o f w i l d l i f e a n d t h e m a i n t e n a n c e o f a n e x c e l l e n t w i l d l i f e h a b i t a t . 

D u e t o t h e n a t u r e o f t h e f o r e s t i n t h e a l l u v i a l v a l l e y w i t h i t s 

m i x e d h a r d w o o d s p e c i e s , m a i n t e n a n c e o f t i m b e r l a n d s i n a c c o r d a n c e 

w i t h g o o d f o r e s t r y p r a c t i c e s i n v a r i a b l y r e s u l t s i n t h e m a i n t e n a n c e 

o f g o o d w i l d l i f e h a b i t a t . T h e U n i t e d S t a t e s F i s h a n d W i l d l i f e 

S e r v i c e , t h e r e f o r e , t a k e s a n e a s y w a y o u t w h e n i t r e c o m m e n d s 

a c q u i s i t i o n o f l a n d s w h i c h a r e a l r e a d y h o s t t o a n e x c e l l e n t w i l d ­

l i f e i n v e n t o r y . T h e F i s h a n d W i l d l i f e S e r v i c e a l s o t a k e s t h e 

p o s i t i o n , i n w h i c h t h e C o r p s o f E n g i n e e r s c o n c u r s , t h a t t h e e s t a t e 

w h i c h m u s t b e t a k e n i s a f e e s i m p l e e s t a t e , a l t h o u g h t h e s t a t u t e 

i t s e l f i s q u i t e c l e a r t h a t a n e s t a t e l e s s t h a n a f e e s i m p l e 

e s t a t e i s p e r m i t t e d .

T h e e n d r e s u l t o f a l l o f t h i s i s t h e f o l l o w i n g :

1 V a l u a b l e t i m b e r l a n d s a r e b e i n g c o n d e m n e d a n d t a k e n 

o u t o f p r i v a t e o w n e r s h i p a n d p u t i n t o p u b l i c o w n e r s h i p w i t h o u t 

a n y r e s u l t i n g i n c r e a s e i n w i l d l i f e b e n e f i t s b u t a t l a r g e c o s t t o 

t h e t a x p a y e r .

2 . A s u b s t a n t i a l p o r t i o n o f t h e l a n d s i n t h e a l l u v i a l 

v a l l e y a r e u n d e r s o m e s o r t o f h u n t i n g p e r m i t o r l e a s e , e i t h e r

t o i n d i v i d u a l s , c l u b s o r S t a t e G a m e a n d F i s h C o m m i s s i o n s . W h e r e 

l a n d s a r e u n d e r p e r m i t t o p r i v a t e i n d i v i d u a l s o r c l u b s , t h e s e 

s p o r t s m e n w i l l b e d i s p o s s e s s e d . S i n c e t h e l a n d s a r e b e i n g u t i l i z e d 

t o t h e o p t i m u m f o r s p o r t s p u r p o s e s a l r e a d y , t h e r e w i l l b e n o 

i n c r e a s e i n m a n d a y s o f h u n t i n g o r f i s h i n g b y t h i s t r a n s f e r o f 

o w n e r s h i p . T h u s , t h e r e w i l l b e n o " m i t i g a t i o n " .

3 . T h e p r e s e n t S t a t e G a m e a n d F i s h C o m m i s s i o n s a n d 

t h e U n i t e d S t a t e s F i s h a n d W i l d l i f e S e r v i c e d o n o t h a v e t h e f u n d s 

n o r t h e m a n p o w e r t o m a n a g e i n t e n s i v e l y f o r f i s h a n d w i l d l i f e 

e n h a n c e m e n t t h e l a n d s a l r e a d y u n d e r t h e i r j u r i s d i c t i o n , w h e r e a s 

t h o s e l a n d s w h i c h a r e l e a s e d t o h u n t i n g c l u b s a r e u n d e r i n t e n s i v e 

g a m e a n d f i s h m a n a g e m e n t . T h e f i s h a n d g a m e l a w s a r e e n f o r c e d 

m o r e s t r i c t l y b y t h e c l u b s t h a n i s p o s s i b l e b y G a m e a n d F i s h 

C o m m i s s i o n s w i t h t h e i r l i m i t e d p e r s o n n e l . T h e l a n d s a r e u n d e r 

a c t i v e f i r e c o n t r o l p r a c t i c e s b y t h e c l u b s . F o o d i s p l a n t e d f o r 

w i l d l i f e . A l l o f t h e s e s e r v i c e s a r e f u r n i s h e d w i t h o u t c o s t t o 

t h e U n i t e d S t a t e s , t h e v a r i o u s S t a t e s o r t h e i r t a x p a y e r s , w h e r e a s 

t r a n s f e r t o p u b l i c o w n e r s h i p u n d e r t h e m i t i g a t i o n p l a n w i l l 

i n c r e a s e t h e t a x b u r d e n o f a l l c i t i z e n s .

4 . R e m o v a l o f l a n d s f r o m p r i v a t e o w n e r s h i p i n t o p u b l i c 

o w n e r s h i p r e s u l t s i n a l o s s o f t a x r e v e n u e t o t h e l o c a l a n d 

s t a t e t a x i n g a u t h o r i t i e s .

5 . S i n c e m o s t o f t h e s e l a n d s w e r e a c q u i r e d m a n y y e a r s 

a g o , t h e t a x b a s e i s l o w a n d a c q u i s i t i o n a t p r e s e n t d a y v a l u e s 

r e s u l t s i n e x o r b i t a n t t a x l i a b i l i t y . U n l e s s l i k e l a n d c a n b e

5 4 * 2 3 9 O - 7 5 - 4 5
7 0 0

l o c a t e d a n d p u r c h a s e d w i t h i n t h e t i m e f r a m e a l l o w e d b y t h e 

I n t e r n a l R e v e n u e S e r v i c e , t h e t i m b e r o w n e r s f a c e a s u b s t a n t i a l 

i n c o m e t a x b u r d e n .

6 . S o f a r a s t h e t i m b e r i n d u s t r y i s c o n c e r n e d , a c q u i s i t i o n 

o f t i m b e r l a n d s i n t h i s m a n n e r s e r i o u s l y d e p l e t e s i t s i n v e n t o r y , 

f o r c i n g i t t o g o i n t o t h e g e n e r a l m a r k e t f o r p u r c h a s e o f l o g s 

w i t h a t t e n d a n t f i n a n c i a l b u r d e n s . T h e N a t i o n i s f a c i n g a n i n c r e a s e d 

d e m a n d f o r t i m b e r p r o d u c t s w h i l e t h e r e i s a s t e a d y r e m o v a l o f 

t i m b e r l a n d s f r o m t h e m a r k e t b y " m i t i g a t i o n " c o n d e m n a t i o n , t r a n s f e r 

t o w i l d e r n e s s a r e a s , a c q u i s i t i o n o f e a s e m e n t s f o r r o a d s a n d l e v e e s , 

e t c .

T h e C o r p s o f E n g i n e e r s , M e m p h i s D i s t r i c t , i s p r e s e n t l y 

t a k i n g p r e l i m i n a r y s t e p s l o o k i n g t o w a r d t h e f i l i n g o f c o n d e m n a ­

t i o n p r o c e e d i n g s t o c o n d e m n s o m e 1 3 , 5 0 0 a c r e s o f l a n d i n t h e 

S t. F r a n c i s B a s i n P r o j e c t l o c a t e d o n S t u m p y P o i n t i n t h e S t a t e o f 

A r k a n s a s . T h i s h a s a r o u s e d c o n s i d e r a b l e c o n c e r n o n t h e p a r t o f 

m a n y A r k a n s a s r e s i d e n t s a n d l a n d o w n e r s , a n d t h e H o n o r a b l e J o h n 

L . M c C l e l l a n , U n i t e d S t a t e s S e n a t o r , h a s i n t r o d u c e d S e n a t e B i l l 

8 2 1 s e e k i n g t o a l l e v i a t e s o m e w h a t t h e h a r d s h i p s w h i c h w o u l d r e s u l t 

f r o m t h i s p r o p o s e d c o n d e m n a t i o n . A c o p y o f t h i s B i l l a s i n t r o d u c e d 

i s e n c l o s e d . W h i l e t h e B i l l h a s s o m e f e a t u r e s w h i c h t h e t i m b e r 

o w n e r s f e e l a r e u n d e s i r a b l e , i t d o e s t a k e a s t e p i n t h e r i g h t 

d i r e c t i o n i n d i r e c t i n g t h e C o r p s o f E n g i n e e r s t o f i r s t a t t e m p t 

t o n e g o t i a t e w i t h t h e l a n d o w n e r , l o o k i n g t o w a r d p u r c h a s i n g a n 

e n v i r o n m e n t a l e a s e m e n t r a t h e r t h a n t a k i n g t i t l e t o t h e l a n d 

i n f e e . I a m a d v i s e d t h a t i t w i l l b e l a t e s u m m e r o r e a r l y f a l l 

b e f o r e h e a r i n g s c a n c o m m e n c e i n t h e S e n a t e , a n d t h e n o f c o u r s e 

t h e B i l l w i l l h a v e t o g o o v e r t o t h e H o u s e s i d e .

I t i s h o p e d t h a t t h e C o n g r e s s w i l l t a k e a n e w l o o k a t 

t h e w h o l e s u b j e c t o f " m i t i g a t i o n " i n t h e l i g h t o f t h e a b o v e 

p r o b l e m s t o t h e e n d t h a t s o m e e q u i t a b l e s o l u t i o n c a n b e r e a c h e d .

T h e t i m b e r i n d u s t r y a n d t h e l a n d o w n e r s u r g e t h a t a l l c o n d e m n a t i o n 

p r o j e c t s u n d e r t h e m i t i g a t i o n p r o g r a m b e h a l t e d u n t i l s u c h t i m e 

a s C o n g r e s s h a s a n o p p o r t u n i t y t o l o o k i n t o t h i s m a t t e r f u r t h e r 

a n d g i v e p r o p e r c o n s i d e r a t i o n t o t h e p r o b l e m s s o u g h t t o b e c o r r e c t e d 

b y S e n a t o r M c C l e l l a n ’ s B i l l . T h i s B i l l , a s d r a w n , i s l i m i t e d t o 

a f a i r l y s m a l l a r e a a d j o i n i n g t h e M i s s i s s i p p i R i v e r . I t i s h o p e d 

t h a t i t c o u l d b e a m e n d e d t o a p p l y t o a l l w a t e r r e s o u r c e d e v e l o p m e n t 

p r o j e c t s .
7 0 1

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F Kn m' A K V 2 4 (le gis h di vi * da y, F k h r d a r y 2 1), 1 9 75 

Mr. M l e l l a n i ntr o d u ce d t he f oll o wi n g bill; w hic h was rea d t wice n n d 

•• ref err e d t o t he C o m mittee o n P u blic W o r ks

T o preser ve wil dlife ha bitat.

1 Be it e n acte d by t he Se n ate a n d H o use of lle p vese nt a2 tives of t he U nite d St ales of A m eric a i n C o n gr ess asse m ble d,

3 T hat secti o n 4 2 of t he Water Res o urces De vel o p me nt Act

4 of 1 9 7 4 ( 8 8 Stat. 2 3) is here b y a me n de d b y i nserti n g

5 “ (a ) ” after “ S e c . 4 2.” a n d i nserti n g at t he e n d t here of t he

6 f oll o wi n g:

7 • “ ( b) W her e ver t he Secretar y of t he Ar m y, acti n g

8 t hr o u g h t he C hief of E n gi ne ers, has bee n a ut h orize d t o

9 ac q uire title, eit her i n fee si m ple or i n a lesser i nterest, t o a

1 0 s pecifie d n u m ber of acres of la n d i n miti gati o n of l osses or

1 1 da ma ge t o fis h a n d wil dlife res ulti n g fr o m Fe d eral i m pr o veI I
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1 mc nts a n d w here t he miti gati o n la u ds fi nall y desi g nate d f or

2 ac q uisiti o n c o nsist of har d w o o d f oreste d areas of t he l o wer

3 Mississi p pi Ri ver w hic h aff or d g o o d wil dlife ha bitat, he is

4 here b y a ut h orize d a n d directe d t o ac q uire case me nts i n lie u

5 of fee f or pre ser vati o n of fish a n d wil dlife ha bitat w here s uc h

6 ease me nts ca n be ac q uire d at n o mi nal val ue; s uc h a n ease7 me nt will, i nter alia, pr o hi bit cleari n g of t he la n d f or a n y

8 p ur p ose i nc o nsiste nt wit h t he m ai nte na nce of wil dlife ha bitat,

9 b ut t he la n d o w ner ma y har ve st ti m ber o n a selecti ve basis or

1 0 ot her wise ma na ge t he la n d s o as t o pr o vi de f o od a n d ha bit at

1 1 f or wil dlife: Pr ovi de d, T hat, i n t h ose ease me nt areas w here

1 2 t he C hief of E n gi neers deter mi nes t hat it w o ul d be i n t he

1 3 p u blic i nterest, if t he la n d o w ner a grees i n c o nsi derati o n of 

I* a d diti o nal c o m pe nsati o n, t he ease me nt ma y pr o vi de f or p u b1 5

 lie access; w here ease me nts are ac q uire d i n lie u of fee si m ple

1 6

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1 8

 a n d/ o r ease me nts s hall n ot e xcee d t he t otal e x pe n dit ure pre1 9

 vi o usl y a ut h orize d f or ac q uiri n g t he fee. As s o o n as practica2 9

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" t he Secretar y of t he Ar m y s hall tra nsfer j uris dicti o n t here-

“ o ver t o t he Secretar y of t he I nte ri or f or t he p ur p ose of t his 

2 2

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S u b c o m mitt e e o n W at er R e s o u r c e s,

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at

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Ma y 1 6, 1 9 75 

b y

J a c k W. P e p p er, St at e W at er E n gi n e er 

Mi s si s si p pi B o ar d of W at er C o m mi s si o n er s

I a m J a c k W. P e p p er, t h e e x e c uti v e o ffi c e r of M i s si s si p pi' s w at er 

r e s o ur c e s a g e n c y, b ut my a p p e ar a n c e t o d a y 1 s a s c h air m a n of t h e I n t e r s t a t e 

C o nf er e n c e o n W at er Pr o bl e m s, a n or g a ni z ati o n of t h e St at e W at er R e s o ur c e s 

o ffi c i a l s .

T he St at e s h a v e t a k e n a n I n cr e a si n gl y a cti v e r ol e 1 n t h e pl a n ni n g 

a n d d e v el o p m e nt of w at er r e s o ur c e pr o gr a m s a n d pr oj e ct s o v e r a n u mb er of 

y e ar s. T h e St at e s w or k b ot h dir e c tl y a n d I n dir e ctl y wit h g o v er n m e nt al 

a n d n o n- g o v e r n m e nt al s p o n s or s of w at er r e s o ur c e s p r o j e ct s , a n d m u st d e al 

wit h t h e eff e ct s or o ut c o m e s of t h e p r o j e ct s , p o siti v e or n e g a ti v e, b y 

a d a pti n g t h eir o wn pr o gr a m s a n d pr oj e ct s t o f a c ilit a t e a n d s u p p ort t h e 

a c c o m pli s h m e nt s of a p pr o v e d p r oj e ct g o al s.

T h e I n t e r s t a t e C o nf er e n c e o n W at er Pr o bl e m s' E x e c uti v e C o m mitt e e 

sit s a s t h e St a n di n g St at e A d vi s or y C o m mitt e e t o t h e U. S. W at er R e s o ur c e s 

C o u n cil u n d er t er m s of t h e F e d e r al A d vi s or y C o m mitt e e A ct. I C W P 1 s 

c u rr e ntl y u tili z i n g s e v er al t a s k f o r c e s t o a s si s t 1 n t h e d e v el o p m e nt of 

p oli c y p o siti o n s o n s o me of t h e c urr e nt w at er r e s o ur c e s i s s u e s.

I a m s ur e y o ur S u b c o m mitt e e w ill b e i n t e r e st e d 1 n t h e a c ti v iti e s of 

a ll of t h e s e T a s k F o r c e s, a n d we w ill w el c o me a n o p p ort u nit y t o m ak e t h eir 

s e r vi c e s a v ail a bl e t o y o u a n d y o ur s t a ff.
7 0 4

- 2

I w ill li m it t h e b al a n c e of t hi s st at e m e nt t o a c u rr e nt m att er of 

m aj or c o n c er n t o m ost of t h e St at e s. T hi s d e al s wit h t h e utt e r c o nf u si o n 

t h at h as d e v el o p e d a s a r e s ult of t h e r e c e nt d e ci si o n of t h e U. S. Di s tri c t 

C o urt f o r t h e D i s tri c t of C olu m bi a 1 n w hi c h 1t or d er e d t h at t h e l a t e st 

C or p s of E n gi n e er s r e g ul ati o n s w hi c h c o ntr ol t h e di s p o s al of dr e d g e d a nd 

f ill m at eri al i n " n a vi g a bl e w at e r s" b e r e vi s e d a nd e x pa nd ed t o i n cl u d e all 

" w at er s of t h e U nit e d St at e s."

T he St at e p e o pl e fr o m who m I h av e h e ar d ar e u na ni m ou s i n t h eir o pi ni o n s t h at t h e C o urt r uli n g s ar e c o ntr ar y t o t h e i nt e nt of C o ngr e ss o n w h at 

s h o ul d b e t h e d uti e s of t h e C or p s of E n gi n e er s.

T he F e d er al R e gi st er, May 6, 1 9 7 5, c o nt ai n s pr o po s e d r ul e s b y t h e 

C or p s of E n gi n e er s, a s r e q uir e d b y t h e C o urt or d e r, a nd o ur St at e s w ill b e 

s u b mitti n g c o m me nts. U nf ort u n at el y, t h er e i s n o a p p ar e nt r eli e f fr o m t hi s 

c o nf u s e d sit u ati o n, b ec a us e n on e of t h e alt e r n ati v e s a p p e ar t o b e w or k a bl e. 

T he alt e r n ati v e r ec o m me nd ed b y t h e C orp s w ill s till r e q uir e t h e e x p e n dit ur e 

of l ar g e s u ms of b ot h F e d er al a nd St at e f u n d s, wit h lit tl e or n o I m pr o v em ent t o t h e q u alit y of t h e w at er s of o ur N ati o n.

T he i n it i a l r e a cti o n of t h e St at e s wit h w hi c h I h av e h ad c o nt a ct h as 

i n di c at e d t h at t h e y b eli e v e C o n gr e s si o n al a cti o n i s r e q uir e d t o cl a rif y t h e 

sit u ati o n. R e e v al u ati o n of t h e r ol e - o f t h e C or p s of E n gi n e ers i n t h e 

e nf or c e m e nt of w at e r q u alit y ma na ge me nt pr o gr a ms s h o ul d b e i n iti a t e d a s s oo n 

a s p o s si bl e. C o n si d er ati o n s h o ul d b e gi v e n t o d el e g ati n g S e cti o n 4 04 

e nf or c e m e nt t o t h e St at e s 1n a m an n er si m il a r t o ot h er m aj or p er mit pr ogr a m s 

u n d er P. L. 9 2- 5 0 0.

T he d efi niti o n of n a vi g a bl e w at er s w hi c h wa s i n eff e ct at t h e ti m e of 

c o n si d e r ati o n of P. L. 9 2- 5 0 0 wa s n ot t h e d efi niti o n c o nt ai n e d 1 n t h e c u rr e nt 

r ul e. T hi s ne w d efi niti o n r e pr e s e nt s a cl e a r d e p art ur e fr o m pr e vi o u s 

a p pli c ati o n. C o n gr e s si o n al r e e v al u ati o n of a d efi niti o n i s b a dl y n e ed e d.
7 0 5

W a r ri o r - T o m b i ^ b e e D e v el o p m e n t A s s o cia ti o n

£ > e c uf > v e Vi c « P r e si d e n t C h a t e n c * M . Kilt a n

2 0 2 - 2 0 4 Mi m s Bl d g , 5 1 2 Ei g ht e e nt h Str e et N o rt h

Bi r mi n g h a m, Al a b a m a 3 5 2 0 3

P h o ne 2 5 2 8 5 0 7

C h i r r x t n - P r e si d e n t

R. A. P ur y e ar, Jr., C h air m a n

Al a b a m a G as C or p or ati o n

Bir mi n g h a m, Al a b a ma

Vi c e Pr e si d e nt

T h o m a s G. S h ur ett. Pr e si d e nt

W arri or S al e s A Di stri b ut or s of Al a b a m a

T u s c al o o s a. Al a b a m a

S e c r e f a r y - T r e a s or er

M ar vi n R. E n g el. P art n er

E n gel R e alt y C o m p a n y

Bir mi n g h a m, Al a b a m a

M ar c h 3, 1 9 7 5

H o n ora ble Mi ke G r a v el, C h ai r m a n 

S u b c o m mitte e o n W at er R e s o u rc e s 

S e n ate C o m mitt ee o n P u bli c W o r ks 

S e n ate O f fi c e B uil di n g

W a s hi n gt o n, D. C.

D ea r S e n at o r:

We w o u l d li k e t o f i l e f o r t h e r e c o r d o f y o u r s u b c o m m itte e h e a ri n g s a t 

V ic k s b u r g a n d o t h e r p o i n t s t h e e n cl o s e d d o c u m e nt w hi c h i s a f a c t b o o k 

a b o ut t h e d e v el o p m e n t o f t h e W arri o r- T o m bi g b e e R i v e r S y st e m i n Ala ba m a.

Pa ge 3 a n d t h a t s e c ti o n o f t h e b o o k b e gi n ni n g a t t h e b ott o m o f Pa ge 9 

a n d e n di n g o n Pa ge 1 4 gi v e s o m e i n d i c a ti o n o f t h e ec o n o mic i m p a ct o f 

t h e t r a f f i c o n t h i s r i v e r s y ste m w hic h i n 2 5 y e a r s h a s gr o w n fr o m 

a b o ut 2. 5 m illi o n t o n s a n n u all y t o a b o ut 1 5 m illi o n t o n s ( e sti m a t e ) 

i n 1 9 7 4 (s e e Pa ge 1 0 ).

Pa ge 1 1 s h o w s t h e d il a p i d a t e d c o n d iti o n o f m o st o f t h e n a v i g a ti o n 

s t r u c t u r e s o n t h e R i v e r a t t h e ti m e m aj o r e f f o r t s t o h a v e t h e m r e p la c e d 

b e g a n.

W it h t h e r e pla c e m e nt o f t h e B a n k h ea d L o c k (s e e Pa ge 2 4 ), o nl y o n e m aj o r 

p r o j e c t re m ai n s t o be a c c o m pli s h e d. T he B a n k h ea d L o c k r e pla c e m e nt i s 

e x p e cte d t o be i n o p e r a ti o n b y J u l y o r A u g u st o f t h i s y e a r.

T he r e m ai n i n g n a v i g a ti o n s t r u c t u r e w ill be t h e W illi a m Ba c o n O li v e r L oc k 

n e a r T u s c al o o s a w hic h, alt h o u g h p la c e d i n o p e r a ti o n i n 1 9 4 0, i s i n a 

s t a t e o f d e t e ri o r a ti o n a n d i s f a s t be c o mi n g t h e sa m e ki n d o f b o ttl e n e c k 

a s e x i s t s a t t h e o l d B a n k h ea d s t r u c t u r e . A st u d y b y t h e U. S. Ar m y 

C or p s o f E n gi n e e rs t o d ete r m i n e t h e ec o n o mic f e a s i b i lit y o f i t s r e ­

pla c e m e nt i s u n de r w a y a n d i s e x p e cte d t o be c o m ple te d d u ri n g t h e c u r r e n t 

y e a r.
n o ra ble Mi ke G ra v el 

Pa ge 2

M ar c h 3, 1 9 7 5

I f y o u o r a n y o f y o u r s u b c o m m itte e me m b ers h a v e a n y q u e sti o n s a n d y o u w ill 

t r a n s m it t h e m t o u s we w ill re s p o n d t o t h e b e st o f o u r a b i l i t y .

S i n c e r e l y y o u r s,

C. M. K ili a n 

E x e c uti v e Vic e P r e si d e n t

C M K/ br

e n d .

c c: M r. R. A. P u r y e a r, J r.

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W arri o r- T o m bi g b e e D e v el o p m e n t A s s o cia ti o n
7 0 7

W A R R I O R

T O M BI G B E E

W A T E R W A Y

A Great Al a b a m a N at ur al Re s o u rce
7 0 8

E W A R R I O R - T O M B I G B E E W A T E R W A Y

O ne o f Al a b a m a's G r e a t A s s e t s

I s s u e d b y W A R RI O R- T O M BI G B E E D E V E L OP M E N T A S S O CI A TI O N

1 9 1 4 S i x t h A v e., N o., Bir mi n g h a m , A l a .

3 5 2 0 3
Ma p s h o ws l o c a ti o n s o f c o m ple te d m o d e r niz ati o n p r o j e c t s o r t h o s e i n t h e c o u rs e 

f c o n str u c ti o n . B e si d e s t h o s e s h o w n, da ms f o r fl o o d c o n tr o l a n d l o w fl o w 

a u g m e nta ti o n a n d o t h e r p u r p o s e s a r e p r o p o s e d f o r t h e M ul b er r y a n d L o c u st F or k s
7 1 0

T HE F UT U R E O F A L A B A M A' S 

W A R RI O R- T O M BI G B E E W AT E R W A Y

Wit h t h e c o m ple ti o n o f H olt L o c k a n d Da m, t h e re pla c e m e nt o f t h e o ut m o d e d 

ta n d e m l i f t l o c k a t B a n k h ea d ( n o w u n d er c o n st r u c ti o n ), t h e wi d e ni n g of 

O li v e r L o c k a n d Da m ( st u d i e s f o r re pla c e m e nt u n d e r w a y ), a n d t h e e li m i n ati o n 

o f s o me ti g h t be n d s i n t h e W a rri o r a n d T o m bi g b ee R i v e r s, a s e ri e s o f 1 7 da ms 

a n d l o c k s w ill ha ve be e n r e p la c e d w it h si x m o de r n s t r u c t u r e s. T h us, t h e 

s u b s t a n ti a l se g m e n ts o f t h e t r a n s p o rt a ti o n o b j e c ti v e s of t h e W a rri o rT o m bi g b ee D e v el o p m e nt A s s o cia ti o n w ill ha ve be e n met w it h i n t h e n e xt 

fe w y e a r s.

W hat t h e n re m ai n s t o be d o n e ? W hile p h y si c a ll y , t h e re pla c e m e nt o f t h e o u tm o d e d l o c k s a n d da ms a n d t h e str a i g h t e n i n g o f t h e ri v e r c h a n n el r e p r e s e n t 

a b o ut 8 0 p e r c e nt o f t h e c o m ple te m o d e r n iz ati o n o f t h e W ar ri or- T o m bi g b ee 

R i v e rs ( A la .) f o r n a v i g a ti o n , t h e re m ai n i n g 2 0 p e r c e nt f o r o t h e r p u r p o s e s 

i s , i n t h e o pi n i o n o f c o m p ete nt o b s e r v e r s, a s i m p o rta nt a s t h a t alr e a d y 

a c c o m pli s h e d.

M ulti p u r p o s e Da ms f o r Fl o o d C o ntr ol a n d L o w Fl o w A u g m e n tati o n

B ef o re t h e d e v el o p m e n t o f t h e W ar ri or- T o m bi g b ee S y st e m ca n be s ai d t o be 

c o m ple te d, m ulti p u r p o s e da m s m ust be b u ilt o n t h e h e a d w ate rs - s p e c i fi c a ll y 

o n t h e M ul b er r y a n d L o c u st F or k s o f t h e W arr i o r R i v e r. W it h o ut t h e e f f e c ti v e 

fl o o d c o n tr o l a n d t h e a u g m e nta ti o n o f l o w fl o w s d u ri n g d r y p e ri o d s t h e y c o ul d 

p r o v i d e, f u t u r e i n d u s t ri a l d e v el o p m e n t al o n g t h i s w at er w a y w ill be s h a r pl y 

li m it e d . La p d ot h e r w is e s u it a b l e f o r i n d u str y i s n o w a v oi d e d b e c a u s e of 

s e ri o u s fl o o d s e v e r y fe w y e a r s. N o i n d u str y w a nts t o l o c a t e o n la n d s u b je ct 

t o fl o o d i n g. E li m i n ati o n o f t h e fl o o d t h r e a t w ill r e s u lt i n ma n y d e sir a b l e 

i n d u s t ri a l l o c a ti o n s al o n g t h e W ar ri or- T o m bi g b e e a n d M o b il e R i v e r s.

T he sa me st r u c t u r e s w hic h s e r v e a s a me a n s f o r fl o o d c o n tr o l d u ri n g p e ri o d s 

o f h ea v y r a i n f a ll c a n, d u ri n g t h e w ee ks a n d m o nt h s o f l o w r a i n f a ll, r e l e a s e t h e 

w ate r i m p o u n de d d u ri n g t h o s e p e ri o d s. Ma n y l o c a ti o n s al o n g t h e s e w at er w a y s 

t h u s w ill bec o m e i n v iti n g t o w ate r - u si n g i n d u s t ri e s w h o, u n d e r sta n d a b l y , a v oi d 

l o c a ti o n s w h e re , d u e t o e r r a ti c str e a m fl o w s d u ri n g p e ri o d s o f l i t t l e r a i n f a ll, 

t h e r e w o ul d n ot be e n o u g h w ate r f o r t h e i r n e e d s.

T he se s t r u c t u r e s a l s o ca n f u rt h e r i m pr o v e t h e n a v i g a b ilit y o f t h e ri v e r o v er 

i t s 4 5 0 - m il e s t r e t c h a n d p r o vi d e s o me p o we r g e n e r ati o n. T h e y al s o w ill o f f e r 

b r o a d a d d iti o n a l r e c r e a ti o n a l o p p o rt u n iti e s.

T he re m ai n i n g p a g e s o f t h i s b o o k d e s c ri b e i n s o me d e t a il w hat ha s b e e n, a n d 

w ha t i s t o b e, a c c o m pli s h e d. I m pr o v e m e nts ma d e t h u s f a r a r e i m p r e s si v e, b ut 

t h e i r f u ll b e n e fit s w ill be r e a li z e d o nl y a f t e r t h e h e a d w ate rs s t r u c t u r e s

a r e b u ilt.

- 3 -
W A T E R- - A L A B A M A'S G R E A T E S T A S S E T

A m o n g Ala b a m a' s g r e at n a t u r a l a s s e t s , p e r h a p s t h e g r e a t e s t i s w a t e r.... B u t 

w ate r a s s e t s, u n d e v el o p e d, o r u n s u it a b l e f o r v a ri o u s n e e d s, a r e o f mi ni m al 

v al u e. W ate r, u n c o n tr o ll e d , c a n be a l i a b i l i t y .

T his p r e s e n t a ti o n t e l l s o f s o me o f t h e i m pr o v e m e n ts o n t h e W a rr i o r a n d 

T o m bi g b ee R i v e r s. I t d e s c ri b e s o t h e r d e v el o p m e nts s o r e l y n ee d e d i f t h e f u ll 

p o t e n ti a l o f t h e s e g r e a t Al a b a m a ri v e r s i s t o be r e a li z e d .

T he f o ll o w i n g c o m p ri s e t h e W ar ri or- T o m bi g b e e W at er wa y S y st e m i n Ala ba m a:

W arr i o r Ri v er B a si n . T he W a rr i o r Ri v e r B a si n , c o v e ri n g 6, 2 7 4 s q u a re m il e s, 

i s e x c e e d e d i n a r e a o nl y b y t h e T e n n e ss e e Ri v e r B a si n . I t i s d r ai n e d b y 4 3 8 

m il e s o f ri v e r s ( L o c u st F o r k , M ul b err y F o r k , N ort h R i v e r, Si p s e y F or k a n d 

W a rr i o r R i v e r) a n d 1, 2 5 2 m il e s o f c r e e k s. T he b a si n c o n ta i n s se v e n m aj or 

i m p o u n d m e nts, ( B a n k h ea d, B a y vi e w , D e m o p oli s, H olt, I n l a n d, Le wis S m it h,

O li v e r a n d W arr i o r L a k e s) w it h a t o t a l a r e a o f 4 7, 0 4 5 a c r e s.

U p p er T o m bi g b ee Ri v e r B a si n . T he U p p er T o m bi g be e R i v e r B a si n i n Al a b a m a 

c o v e r s 7 6 4 s q u are m il e s a n d i s d r ai n e d b y 2 3 1 m il e s o f ri v e r s ( B u tt a h atc h e e, 

Si p s e y a n d T o m bi g b ee ) a n d 7 5 4 m il e s o f c r e e k s. P a rt o f D e m o p olis La ke i s 

l o c at e d o n t h e T o m bi g be e R i v e r i n t h e l o w er r e a c h e s o f t h e b a si n . T he f i r s t 

t w o s t r u c t u r e s o f t h e w i d el y h e r al d e d T e n n e ss e e- T o m bi g b e e p r o j e c t w ill be 

l o c ate d o n t h i s re a c h o f t h e T o m bi g b ee i n Ala ba m a.

L o wer T o m bi g b ee R i v e r B a si n . T he L o we r T o m bi g b ee R i v e r i s t h a t p o rti o n o f 

t h e T o m bi g be e R i v e r fr o m i t s j u n c ti o n w it h t h e W a rr i o r Ri v e r t o i t s j u n cti o n 

w it h t h e Al a b a m a R i v e r. A p p r o xi m ate l y 3, 9 1 7 s q u a re m il e s a r e c o nta i n e d i n 

t h e b a si n w hi c h i s d r ai n e d b y 1 6 9 m il e s o f t h e T o m bi g b ee R i v e r a n d 8 0 5 m il e s 

o f c r e e k. J a c k s o n L a k e, w it h a n a r e a o f 8, 8 0 0 a c r e s, li e s e n ti r e l y w it hi n 

t h e b a si n ; a n d a n o t h e r, D e m o p olis L a k e, w it h a n a r e a o f 1 0, 0 0 0 a c r e s, i s p a rtl y 

w it h i n t h e b a si n. N at u r al la k e s a r e n u m er o u s i n t h e fl o o d p l a i n o f t h e l o w er 

p a rt o f t h e r i v e r. T he b a si n i s s p a r s e l y s e ttl e d , a n d t h e r e a r e n o la r g e 

c iti e s w it h i n i t s b o u n d a rie s. T he v a st ti m b e r r e s o u r c e s ha ve a tt r a c t e d t h e 

p ul p a n d p a p e r i n d u str y , a n d t h e M cI nt o s h s a lt d o me h a s p r o vi d e d a b a sic ra w 

m a t e ri a l f o r c h e m ic al p l a n t s.

M o bil e R i v e r a n d M o b il e Ba y B a si n . T he M o b il e R i v e r B a si n b e gi n s a t t h e 

j u n cti o n o f t h e Al a b a m a a n d T o m bi g b ee R i v e rs a n d t e r m i n at e s w it h M o b ile Ba y.

T he M o bil e Ba y a r e a i n cl u d e s M i s si s si p p i S o u n d, O y ste r Ba y a n d Wee ks Ba y, 

w it h str e a m s t ri b u t a r y t o t h e m . T he d r ai n a g e a r e a c o v e r s 2, 0 5 9 s q u a re m il e s, 

d r ai n e d b y 1 4 2 m il e s o f ri v e r s ( B o n S e c o u r, D o g, F is h, F o w l, M a g n oli a, M i d dle, 

M o bil e, R a ft, S p a nis h a n d Te ns a w ) a n d 3 5 7 m il e s o f c r e e k s. Of 3 6 2, 0 0 0 a c r e s 

o f s a lt w ate r w it h i n Al a b a m a b o u n d a rie s, M o b il e Ba y c o v e r s 2 5 2, 0 0 0 a c r e s.

O t h e r m aj o r ri v e r s y st e m s i n Ala ba m a, o r a t i t s b o u n d a r y , a r e t h e T e n n e s s e e, 

t h e C o o sa - A la ba m a a n d t h e C h att a h o o c h e e.
7 1 2

A L A B A M A' S E C O N O MI C H E A R T

A dj o i n i n g t h e W arri o r- T o m bi g b e e W ate r w a y a r e 1 6 o f Ala b a m a' s 6 7 c o u n ti e s. 

I n cl u di n g t h e m ost p o p ul o u s a n d hi g h l y d e v el o p e d a r e a s of t h e S t a t e, 

t h e s e c o u n ti e s c o m p ri s e a b o ut 3 0 p e r c e nt o f Ala b a m a' s la n d a r e a. F o u n d 

i n t he m a r e a p p r o xi m ate l y 4 0 p e r c e nt o f Ala b a m a's m a n u fa ct u ri n g e s t a b li s h 

m e nts, n e a rl y 4 4 p e r c e nt o f it s i n d u s t ri a l w o r k e rs a n d m o re t h a n 5 0 p e r 

c e nt o f i t s i n d u s t ri a l p a y r o ll s.

At t h e W arr i o r- T o m bi g b e e' s m o ut h i s t h e P o rt o f M o bil e, ra n ki n g a m o n g t h e 

n a ti o n's 1 0 m o re i m p o rta nt d ee p w ate r h a r b o r s, h a n dli n g m o re t h a n 

2 3 m illi o n t o n s o f c o m me rce p e r y e a r. T he m o d er n st o r a g e a n d h a n dli n g 

f a c i l i t i e s i n cl u d e a b o ut m il e s o f p i e r s a n d w a re h o u se s, m o de r n b e rt h s 

t o ac c o m m o d at e 2 5 o c e a n - g oi n g v e s s e l s, r a i l, tr u c k a n d b ar g e c o n n e cti o n s, 

a c ol d st o r a g e p l a n t, g r ai n e l e v a t o r a n d a b ul k h a n dli n g p l a n t.

T o ac c o m m o d at e M o bil e's gr o wi n g v ol u m e o f e x p o rt- i m p o rt t r a f f i c , t h e 

p r e s e n t 4 0 - f t. s hi p c h a n n el i s t o be d e e p e n e d t o 4 2 f e e t.

T he hi g h l y d e v el o p e d a n d e x p a n di n g ec o n o m y o f t h e M o b ile a r e a i n cl u d e s 

m aj o r p a p e r m a n u f a ct u ri n g, l u m b er, al u m i n a r e fi n i n g , c h e m ic al, c e m e nt, 

ir o n , p etr ole u m r e fi n i n g a n d dr y d o c k a n d s hi p r e p a i r o p e r a ti o n s. T he 

a r e a al o n g t h e W at er wa y i m m e diatel y n o rt h o f M o b il e h a s le d Ala ba m a i n 

c h e m ic al d e v el o p m e nt. Als o o f gr o wi n g ec o n o m ic si g n ifi c a n c e al o n g t h i s 

re a c h o f t h e W ate r w a y i s t h e p r o d u cti o n o f c r u d e p etr ole u m .

T he C h at o m -J ac k s o n- G r o v e H ill- B u tl e r d i s t r i c t i s i m p o rt a nt i n q u a rr y i n g, 

l u m b er, o il f i e l d , p a p e r a n d t e x til e o p e r a ti o n s. At N a h e o la - M yrtle w o o d 

i s a m aj o r p ul p a n d p a p e r m ill e x p a n d e d f o u r ti m e s si n c e e st a b li s h e d t h e r e 

D e m o p oli s, a b o ut mi d wa y o n t h e W ar ri or- T o m bi g b e e be t w ee n M o b ile a n d 

P o rt Bir m i n g h a m , h a s a m u lti- m illi o n d o ll a r p a p e r p r o d u cts p l a n t a s w ell 

a s l u m be r m a n u f a ct u ri n g, t e x til e , ce m e nt a n d c h e m ic al p l a n t s. I nla n d d o c k 

f a c iliti e s t h e r e ma ke i t t h e s hi p pi n g c e n t e r f o r t h e la r g e s o y b ea n c r o p i n 

t h i s a r e a o f Ala ba m a. I m p o rt a nt t o t h e ec o n o m y o f t h e Ll v i n g st o n - E uta w - 

G re e n s b o r o a r e a a r e l o g gi n g, l u m b er, p o u ltr y a n d d a ir y i n d u s t ri e s.

I n d u s t ri a l o p e r ati o n s a t T u s c al o o s a - H olt i n cl u d e t h e p r o d u cti o n o f a u t o ­

m o bil e a n d t r u c k ti r e s a n d t u b e s; a s p h a lt a n d o t h e r p etr ole u m p r o d u cts ; 

c h e m ic als ; p a p e r a n d p a p e r p r o d u cts ; m e n's s p o rts w e a r; s o il pi p e a n d f i t ­

ti n g s ; c o ke a n d c o ke b y - p r o d u cts ; a n d m i n i n g.

- 5 -
7 1 3

T h e p a p e r i n d u s t r y i s a m o n g t h e 

m o r e i m p o r t a n t u s e r s o f w a t e r i n 

t h e m a n u f a c t u r i n g p r o c e s s .

A b o v e : G u l f S t a t e s P a p e r C o r p . ' s 

p l a n t a t D e m o p o l i s .

R i g h t : A p a p e r b o a r d m a c h i n e .

B e l o w : t h e N a h e o l a P l a n t o f 

A m e r i c a n C a n C o m p a n y

- 6 -
7 1 4

T E R- RE L A T E D A N D O T H E R I N D U S T RI E S A N D F A CI LI TI E S 

AL O N G T HE W A R RI O R- T O M BI G B EE- M O BI L E RI V E R S YS T E M

( T he ma n y u s e rs of w at er tr a n s p o rta ti o n l o c ate d i n Bir mi n g h a m a n d ot h er ne ar b y 

o f f - ri v e r a re a s are n ot li s t e d . )

C O R D O V A-J A S P E R 

V ulca n A s p ha lt C o m pan y 

I n la n d Sta te D oc k 

Ala ba m a P o wer C o m pan y

G or ga s Ste a m G e n er ati n g P la nts , G or ga s 

Le wis M. S mit h H y d r o le ctric P la nt, J a s p er

P O R T BI R MI N G H A M- F AI RFI E L D 

U. S. Ste el C o r p o ra ti o n, S o ut h 

Se nt e 1 1 Oil C o m pa n y

S i n cl air Oil R efi ni n g C o mpa ny 

M ill Ri d ge C o al C o m pan y 

W ar ri or & G ul f N a v i g ati o n C o mpa n y 

T ri a n gle Oil C o mpa n y 

G ul f Oil C o m pa n y 

C he vr o n A s p halt C o m pan y 

H u nt Oil C o m pan y 

N a s h ville Ri d ge C o m pan y 

A m eric a n Mi n er al S p i rit s C o.

Ala ba ma B y- Pr o d ucts C o r p ., Ma xi ne Mi ne s 

Mi ne s of Pe a b o d y C o al C o mpa n y 

Os b or ne Tr u c ki n g C o m pa n y

T US C A L O OS A- H O L T 

R ei c h h ol d C he mic al s, I n c.

W ar ri or A s p ha lt C o m pan y 

E m pire C o ke C o m pan y 

C e ntr al F o u n d r y

G ulf S ta te s Pa pe r C o r p.

U. S. Ar my C o r ps of E n g i n ee rs 

Mac hi ne S h o p a n d B o at Yar d 

Fi n dla y T o wi n g C o.

S e nte ll Oil C o m pan y 

P ar k er T o wi n g C o.

M ille r Oil C o mpa n y

M ol as se s Ri v er T er m i n al s, I n c.

C a rt er C oal C o m pan y

B. F. G o o d ric h C o m pan y

S o ut h er n Pi ne C h e mical C o., I n c.

D E M OP OLIS- M O U N D VI L L E

C e ntr ala F ar m er s' C o- o p ( f e rtili z e r ) 

De m o p olis Hi c k or y M ill 

W ar ri o r B ox C o m pa n y

Ala. P o wer C o. Stea m G e n er ati n g Pla nt

L o ne Sta r Ce me nt C o.

We b b's C ott o n Ware h o us e 

I n la n d Sta te D oc k 

Mare n g o C o nc rete P r o d u ct s C o. 

B or d e n C he mic al C o.

G ulf S ta te s Pa pe r C o r p. 

Pie rs o n Oil C o.

M ille r L u m ber C o.

B U T L E R

A m eric a n Ca n C o., Ma rat h o n Di v.

J A C KS O N

M. W. S mit h L u m ber C o. 

Mc C or q u o dale B r o t h er s L b r. C o. 

Ja c k s o n Sa w M ill C o.

A llie d Pa pe r C o r p.

I n la n d Sta te D oc k 

D u mas B r o t h er s Mf g. C o.

W. T. R a tlif f C o m pan y 

Ja c k s o n Sa n d & Gra vel C o m pan y 

Mc Kee C o n st r u cti o n C o.

A. E. C. Ste a m g e n era ti n g Pla nt

M O BI LE

Gei g y C h e mical C o.

M at hi es o n C he mic al C o.

M o bile Ri v er Sa w M ill C o.

Ba rr y a n d C hic k asa w Stea m 

Pla nts of Ala. P o wer C o. 

S ta u ffe r C he mic al C o.

Hal b y C h e mical C o.

C o rta ul d's N ort h A m erica, I n c. 

S h ell C h e mical C o r p. 

I nte r n ati o n al Pa pe r C o.

S c ott Pa pe r C o.

Be mis C o mpa n y 

Al u mi n u m C o. of A m eric a 

I d e al Ce me nt C o.

U ni o n C ar bi de C o r p.

Dia m o n d S ha m r oc k C h e mical C o. 

A m erica n C ya na mi d C o.

N ati o n al G y ps u m C o.

C o nti n e nta l M ot ors 

Ala ba ma R efi ni n g C o.

Mc Wa ne C ast Ir o n Pi pe C o.

- 7 -
7 1 5

l a r g e s t r i p m i n i n g o p e r a ­

ti o n o n t h e W a rr i o r R i v e r i s 

t h a t o f P ea b o d y C o al C o m pa n y 

d o w n ri v e r fr o m P o rt Bir mi n gha m. T he e n ti r e o ut p ut o f 

t h i s m i n e, a m o u nti n g t o ma n y 

h u n d re d s o f t h o u s a n d s o f t o n s 

a n n u all y, i s s hi p p e d v i a b a r g e. 

T he s t ri p p i n g s h o v el a t ri g h t 

ca n m o ve 7 5 c u bic y a r d s o f 

o v e r b u r d e n a t a b it e . T he 

c o al s h o v el bel o w h a s a 2 5 

c u bic y a r d c a p a cit y a n d ca n 

l o a d t h e 1 2 5 -t o n tr u c k se e n 

i n t h e p i c t u r e i n m i n ute s.

T he t r u c k h a s a c a p a cit y o f 

m o re t h a n m ost r a i l f r e i g h t 

c a r s .

- 8 -

5 4 - 2 3 9 0 - 7 5 - 4 6
T he a s p e r- C o r d o v a a r e a h a s m i n i n g; p o u ltr y p r o c e s si n g ; l u m b er, s t e e l 

b ri c a ti n g : m e n's s h i r t s ; t i l e ; a s p h a lt; f u r n it u r e a n d s p o rti n g g o o d s ma n uf a c t u ri n g a m o n g i t s i n d u s t ri e s.

I n t h e B ir m i n g h a m - F air fi e I d - B e ss e m er d i s t r i c t a r e g r e at s t e e l m ill s a n d 

m o re t h a n 1 4 0 p l a n t s t h a t ma ke a n d f a b ri c a t e a wi d e ra n g e o f ir o n a n d s t e e l 

p r o d u ct s. T h er e a re 7 0 0 d i v e r s i fi e d m a n u fa ct u ri n g p l a n t s, p r o d u ci n g a b o ut 

3, 0 0 0 p r o d u ct s. N o n -f ar m e m pl o y m e nt i s i n e x c e s s o f 2 6 0, 0 0 0. L o c ate d 

o n t h e L o c u st F o r k , a b o ut 2 5 m il e s w e st o f Bir m i n g h a m, i s t h e m aj o r b ar g e 

te r m i n al o f P o rt Bi r m i n g h a m. L i n ki n g P o rt Bir m i n g h a m w it h t h e d i s t r i c t' s 

i n d u s t ri e s a r e a c o m m on c a r r i e r r a il r o a d a n d a hi g h w a y n et w o r k . N ea r b y 

a r e l a r g e m i n i n g o p e r a ti o n s.

At C ull m a n a r e l u m b er, f u r n it u r e , p o u lt r y , d a ir y a n d f o o d - c a n ni n g i n d u s t ri e s. 

T he F a y e tt e, D o u bl e S p ri n g s a n d O ne o n ta a r e a s pr o d u c e t e x til e g o o d s, l u m b er, 

ce m e nt a n d cla y p r o d u cts , f u r n it u r e , p o u ltr y a n d o t h e r c o m m o ditie s. T his 

re a c h o f t h e W arr i o r R i v e r i s n ot n a v i g a b l e.

T he c o n c e n tr ati o n of ec o n o m ic a c ti v it y al o n g t h e W ar ri or- T o m bi g b e e i s n ot a 

c o i n ci d e n c e. I t i s i n d i c a ti v e o f t h e p o w e rf ul b e n e fi c i a l i n fl u e n c e w hi c h 

w ate r, i n cl u d i n g t r a n s p o rt a ti o n , e x e r t s. C o nti n u e d m o d e r n iz ati o n o f t h e 

W ate r w a y f u rt h e r e n h a n c e s it s a tt r a c ti o n f o r c o m merce a n d i n d u str y , a n d u nl o c k s 

i t s p o t e n ti a l f o r t h e c r e a ti o n o f ne w J o b s a n d ne w o p p o rt u n iti e s f o r a l l t y p e s 

o f b u si n e s s i n t h e a r e a.

P U R P O S E O F W A R RI O R- T O M BI G B E E D E VE L O P M E NT 

A S S O CI A TI O N

W arri o r- T o m bi g b e e D e v el o p m e nt A s s o ci ati o n, o r g a niz e d i n 1 9 5 1, be g a n it s 

w or k i n 1 9 5 2. I t s p u r p o se w as, a n d i s , t h e f u ll d e v el o p m e n t o f t h e W a rri o rT o m bi g b ee W at er wa y w hi c h I n cl u d e s t h e M o b il e Ri v e r a n d M o bile Ba y f o r 

n a v i g a ti o n, fl o o d c o n t r o l, w ate r s u p pl y , r e c r e a ti o n , p o ll u ti o n a b ate m e nt, 

p o w er g e n e r ati o n a n d o t h e r b e n e fit s a n d f u rt h e r i m pr o v e m e nt o f t h e M o b ile 

S hi p C h a n n el.

A ll o f t h e s e p u r p o s e s a r e i n t e r d e p e n d e n t; t h e ac c o m pli s h m e nt o f o n e s u p ple ­

m e n ts t h e o t h e r.

H is t o r y o f D e v el o p m e nt

C o n gre ss f i r s t a p pr o v e d t h e i m pr o v e m e nt o f t h e W arri o r- T o m bi g b e e i n 1 8 7 1, 

w he n i t p r o vi d e d f u n d s f o r a 3 - f t. c h a n n el fr o m M o b ile t o D e m o p oli s. C a n ali z a ti o n o f t h e w at er w a y t o p r o vi d e a 6 - f t. c h a n n el fr o m m o ut h t o h e a d w ate rs 

g ot u n de r w a y i n 1 8 8 8. T he l a s t o f a s e ri e s o f da ms a n d 1 7 l o c k s t o ma ke 

t h i s p o s si b l e wa s c o m plete d b y 1 9 1 5 - a p e ri o d o f 2 7 y e a r s. T he c h a n n el was 

c o n v e rte d t o 8 - f t. i m m e dia te l y f o ll o w i n g W orl d War I, a n d t o 9 - f t. i n t h e 

l a t e 1 9 3 0's . I n t h e m ai n, t h e s e c o n v e r si o n m et h o ds w er e m a k e s h if t. F u n d s 

w er e n ot p r o vi d e d f o r a d e q u ate m ai n te n a n c e s o b y t h e l a t e 1 9 4 0's a l l b ut o ne 

o f t h e l o c k s a n d da m s, b u ilt b et w ee n 1 8 7 1 a n d 1 9 1 5, w er e o b s o le t e a n d i n ba d 

r e p a i r a n d h a z a r d o u s. Wit h a n e r r a ti c fl o w - - t o o m uc h w ate r a t ti m e s a n d 

t o o l i t t l e a t o t h e r s - - i t se e m e d t h a t o n e of Ala b a m a' s g r e at n a t u r a l r e s o u r c e s 

w o ul d r e v e rt t o a str e a m o f li m it e d u s e.
7 1 7

W ate r w a y m o d e r niz ati o n h a s b ee n w h oll y j u s ti f i e d a n d e c o n o m ic all y s o u n d.

Ea c h p r o j e c t r e t u r n s m o re i n d o ll a r b e n e fit s a n n u all y t h a n it s y e a rl y c h a r g e s 

f o r c o n str u c ti o n , m ai n te n a n c e, o p e r a ti o n , a m o rti z ati o n a n d I n t e r e s t. B e n e fits 

r e s u lti n g fr o m i m pr o v e m e nt i n n a v i g ati o n a r e b a s e d o n e x i sti n g c o m me rce pl u s 

o nl y f o r e s e e a b l e t o n n a g e, a n d d o n ot i n cl u d e a n y all o w a n c e f o r l o n g ra n g e 

t r a f f i c i n c r e a s e s r e s u lti n g fr o m ne w i n d u s t ri a l d e v el o p m e nt.

T r a f fi c Tre n d

O ne o f t h e o l d e r a u t h o ri z e d f e d e r a l n a v i g ati o n p r o j e c t s i n t h e U nit e d S t a t e s, 

t h e 4 5 0 - m il e W ar ri or- T o m bi g b e e W at er w a y, a f a st- g r o w i n g a n d b u s y b ar g e 

c h a n n el, i s a s i g n i fi c a n t li n k i n t h e t r a n s p o rt a ti o n n et w o r k i n Ala ba m a.

W he n i t s o ri g i n a l s y st e m o f l o c k s a n d da m s was c o m ple te d i n 1 9 1 5, i t c a r ri e d 

4 0 7, 0 0 0 t o n s o f f r e i g h t. B y 1 9 2 4, a n n u al m o v e m e nts w er e a l i t t l e m o re t h a n 

1, 0 0 0, 0 0 0 t o n s. I n 1 9 5 2, t h e y e a r W arri o r- T o m bi g b e e D e v el o p m e nt A s s o cia ­

ti o n be ca me a c ti v e , t r a f f i c s t i l l wa s o nl y 2\ m illi o n t o n s. E sti m ate s at 

t h e ti m e s u g g e ste d a p o t e n ti a l o f fi v e m illi o n t o n s a n n u all y . T r a f fi c alr e a d y 

h a s I n c r e a s e d f a r be y o n d t h a t. L o n g ra n g e p r o s p e cts a r e f o r c o nti n u e d s u b ­

s t a n ti a l g r o w t h . A n n ual t o n n a g e s tr a n s p o rt e d a r e gi v e n i n t h e t a b l e w hi c h 

f o ll o w s:

Y ea r T o n n a g e Y ea r T o n n a g e

1 9 1 5 4 0 7. 2 4 5 1 9 5 7

4 , 8 7 3 , 9 9 1 / / Z i'/ / ^ / Z 

5 , 6 6 6 , 2 0 3 / ^ 7 - / / , 

5, 7 5 6, 2 2 7

1 9 2 0 5 9 9, 5 2 2 1 9 5 8

1 9 2 5 1, 3 8 3, 7 1 2 1 9 5 9

1 9 3 0 1, 5 8 1, 9 4 7 1 9 6 0 5, 8 0 4, 1 0 7

1 9 3 5 1, 1 3 1, 3 6 b 1 9 6 1 6, 0 3 1, 2 5 5

1 9 4 0 1, 8 9 0, 3 9 9 1 9 6 2 6, 1 6 7, 6 8 1

1 9 4 5 1, 4 9 2, 4 9 6 1 9 6 3 6, 5 5 9, 8 5 4

1 9 5 0 2, 6 0 2, 6 2 3 1 9 6 4 7, 3 9 1, 4 9 9

1 9 5 1 2, 7 1 2, 8 9 1 1 9 6 5 7, 7 9 6, 3 9 1

1 9 5 2 2, 5 5 3, 7 5 4 1 9 6 6 8, 1 8 1, 3 2 1

1 9 5 3 2, 8 5 7, 2 1 7 1 9 6 7 8, 7 0 6, 3 7 4

1 9 5 4 3, 0 1 9, 0 7 7 1 9 6 8 8, 9 2 1, 4 3 0

1 9 5 5 4, 2 2 1, 1 3 9 1 9 6 9 1 0, 5 8 7, 4 2 3

1 9 5 6 4, 4 0 9, 2 4 0

/ ? * >

P ri n c i p a ll y b ul k m a t e ri a l s m o ve b y w ate r b ut b e n e fit s c o me t o r a il r o a d s , 

hi g h w a y t r a n s p o rt c o m p a n ie s a n d a i r li n e s t h r o u g h t h e t r a n s p o rt a ti o n o f fi n i s h e d 

g o o d s t o o r fr o m t h e ne w o r e x p a n d e d i n d u s t ri e s a n d o t h e r t y p e s o f b u si n e s s

s e r v e d b y t h e m . F i n is h e d p r o d u cts m o ve a t h i g h e r r a t e s t h a n f o r b ul k 

c o m m o dit i e s .

- 1 0 -
7 1 8

M ost f t h e n a vi g a ti o n d a ms o n t h e W ar ri o r a n d T o m bi g b ee Ri v er s i n Al a b a m a

we re i n t h i s s t a t e o f d e t e ri o r a ti o n a t t h e ti m e W ar ri o r- T o m bi g be e D e v el o p ­

me nt A s s o ci a ti o n, i n 1 9 5 2, be g a n i t s e f f o r t s t o w ar d h a vi n g t he m r e pl a c e d.

I n st e a d o f 1 7 l o c k s a n d d a m s, w hi c h h a d t o be tr a v e r s e d o n a t ri p fr o m

M o bile t o P or t Bir mi n g h a m, t h e r e ar e n o w o nl y 6. ( P ic t u r e s o n p a ge s 2 1- 2 5)

- 1 1 -
C A R RI E R O F M AS S P R OP O R TI O N S

ri m ar y ec o n o m ic v al u e o f t h e W arri o r- T o m bi g b e e W ate r w a y i s i t s c a p a cit y 

f o r e f f i c i e n t, fl e x i b l e , l o w -c o st t r a n s p o rt a ti o n f o r t h e m o ve me nt o f b ul k 

c o m m o ditie s i n l a r g e v ol u m e a n d f o r h e a v y fi n i s h e d a n d s e m i- fi n i s h e d g o o d s, 

f u e l s, p etr ole u m , g e n e r al p a c k a g e d f r e i g h t a n d b a si c ra w m a t e ri a l s.

L o we r t r a n s p o rt a ti o n c o st s o f c o m m o ditie s m o v e d b y b a r g e b e n e fit a l l c l a s s e s 

o f m a k er s a n d u s e r s o f t h e ma n y fi n i s h e d p r o d u cts ma de fr o m t h e ra w m a t e ri a l s 

a n d s e m i- fi n i s h e d g o o d s w hic h r e p r e s e n t t h e m aj o r p o rti o n o f t h e W a rri o rT o m bi g be e t r a f f i c .

T he ec o n o m y o f w ate r t r a n s p o rt a ti o n i s d e m o n str ate d i n t h e f oll o w i n g c o m p ari s o n s

W at er t r a n s p o rt a ti o n h a s n o e q u al i n s h e e r e f fi c i e n c y . A si n g l e t o w b o at 

d e v el o pi n g 6, 0 0 0 h o rs e p o w er c a n p u s h b a r g e s c o n ta i n i n g a s m uc h a s 5 0, 0 0 0 t o n s. 

T h a t's b e tt e r t h a n e i g h t t o n s p e r h o r s e p o w e r. B y c o n t r a s t, a m o d er n D ie s el 

l o c o m oti v e o f t h e sa me h ors e p o w er h a u ls o nl y a b o ut 6, 0 0 0 t o n s - o r o nl y 

a b o ut o n e t o n p e r h o rs e p o w e r. T o d a y's l a r g e r hi g h w a y tr u c k s o f a b o ut 3 0 0 

h o rs e p o w er ca n h a u l, a t m o st, a b o ut t h i r t y - t h r e e t o n s o f f r e i g h t - o n e - ele v e nt h 

t o n p e r h o r s e p o w e r.

T o h a ul t h e 5 0, 0 0 0 -t o n p a yl o a d o f a r i v e r t o w, i t w o ul d ta k e e i g h t a n d o n e -t h ir d 

t r a i n s , e a c h c o n si sti n g o f o n e h u n d re d a n d t w e nt y c a r s - o r 1, 0 0 0 r a il c a r s .

T he p a yl o a d o f t h e sa m e ri v e r t o w w o u l d r e q u ir e m o re t h a n 1, 5 0 0 o f t h e l a r g e st 

tr u c k s o n t h e hi g h w a y !

T he s h i p p e r p a y s a p p r o xi m ate l y 3/ 1 0 o f o n e c e n t t o m o ve o n e t o n o n e m il e v i a 

w ate r; 1 - 1 / 2 c e n t s b y r a i l, a n d 6 - 1 / 2 c e n t s b y hi g h w a y.

C O M ME R C E - T H E E C O N O M Y' S LI F E B L O O D

A m o ng t h e p ri n c i p a l c a r g o e s o n t h e W arri o r- T o m bi g b e e Ri v e r a r e li m e st o n e, 

ir o n a n d o t h e r o r e, s a n d, g r a v e l, c r u s h e d r o c k, ir o n a n d s t e e l p r o d u c t s, c o al, 

c r u d e p etr ole u m , p etr ole u m p r o d u ct s, c l a y s, p u l p w o o d, s h e ll, m o la s s e s, l o g s, 

c e m e n t, s u l p h u r, p i g ir o n a n d c h e m ic als .

A n e s s e n ti a l b a si x m a t e ri a l, c r u d e p etr ole u m , i s b a r g e d t o c o n v e r si o n a n d d i s ­

t ri b u ti o n p l a n t s o n t h e W arr i o r- T o m bi g b e e. T h es e p l a n t s p r o d u c e o r d i s t ri b u t e 

g a s o li n e, n a p ht h a, s o l v e n t s, D ie s el a n d t r a c t o r f u e l, p a vi n g a n d r o o fi n g a s p h a lt 

a n d j e t f u e l.

M il li o n s o f g a ll o n s o f g a s o li n e a r e m o ve d b y b a r g e a n n u all y fr o m c o a st a l 

r e f i n e r i e s i n T e x as a n d L o uis ia n a t h r o u g h t h e G ulf I n t r a c o a st a l W at er w a y a n d 

u p t h e W a rri o r- l o m bi g b e e t o b a r g e t e r m i n al s a n d st o r a g e ta n k fa r m s.
7 2 0

s p h alt u se d f o r p a vi n g i s m o v e d fr o m M o b ile t o T u s c al o o s a, P o rt Bi r mi n g h a m 

a n d C or d o va b y b a r g e s w it h c a p a c iti e s o f u p t o 4 2 0, 0 0 0 g a ll o n s. W hen m o ve d 

a s a s p h a lt c e m e nt, t h i s c o m m o dit y i s h e ate d t o te m p e r at u r e s o f a b o ut 3 6 0- 

d e g re e s F ., s o t h a t i t c a n be p u m p e d i n t o t h e b a r g e s. Si n c e i t c o ols a n d 

h a r d e n s e n r o u t e, a s p h a lt ce m e nt m ust be r e h e at e d at i t s d e sti n a ti o n b e f o re 

i t ca n be p u m p e d fr o m t h e b a r g e s i n t o st o r a g e t h a n k s. T his h e at is a p pli e d 

b y c i r c u l a ti n g st e a m t h r o u g h a s e ri e s o f c o il s b u ilt i n t o t h e b ott o m o f t h e 

b a r g e s. H eat a l s o i s r e q u ir e d , b ut i n s m alle r a m o u nts, i n l o a di n g a n d u nl o a di n g c ut b a c k a s p h a lt, a m i x t u r e o f a s p h a lt a n d k e r o s e n e o r n a p ht h a.

B u n k er C o i l, a n i m p o rta nt i n d u s t ri a l f u e l, i s b a r g e d p ri n c i p a ll y fr o m 

p o i n ts i n L o uis ia n a v i a t h e G ulf I n t r a c o a st a l W at er w a y. Li k e s o me t y p e s of 

a s p h alt a n d o t h e r h ea v y p etr ole u m p r o d u cts , b u n k er C o il m ust be h e ate d b e ­

f o r e i t ca n be p u m pe d i n t o a n d o ut o f b a r g e s. N ea r P o rt Bir m i n g h a m a r e b a r g e 

d o c k s, st o r a g e ta n k s a n d o t h e r f a c i l i t i e s t o r e c ei v e b u n k er C.

A b o ut 1 0, 0 0 0, 0 0 0 g all o n s o f b ul k l u b ri c a ti n g o il fr o m Te xa s m o ve v i a s p e c i a l 

b a r g e t o a c a n ni n g p l a n t n e a r P o rt Bir m i n g h a m , H e re , t h e o il i s p ut i n t o 

c a n s a n d dr u ms a n d d i s t ri b u t e d .

A m aj or d o w n b o u n d m o ve m e nt fr o m t h e v i c i n it y o f P o rt Bir m i n g h a m i s c o al 

f o r s h i p m e nt o v e r s e a s a n d f o r st ea m e l e c t r i c g e n e r ati o n.

T he f i r s t c o al t o w i n t h e W arri o r- T o m bi g b e e' s h i s t o r y s t a r t e d d o w n ri v e r o n 

J a n u a r y 1 2, 1 8 9 6, a n d re a c h e d M o bile 1 8 d a y s l a t e r. Al o n g it s j o u r n e y, i t 

wa s g r e ete d b y o v ati o n s a n d t o w n m e eti n g s f o r i t was a n o me n o f ne w p r o s p e rit y 

f o r t h e W ar ri or- T o m bi g b e e V all e y ( T o d a y a o n e- w a y t r i p ta k e s o nl y 3 ^ da ys 

o r l e s s . )

A dj o i n i n g t h e W at er w a y's u p p e r r e a c h e s i s t h e W arr i o r C oa l F ie l d w it h 

r e s e r v e s o f m ore t h a n 5 b illi o n t o n s. T his f i e l d , b y f a r t h e m ost i m p o rta nt 

o f t h e t h r e e fi e l d s i n Ala ba m a, h a s t h e u ni q u e a n d h i g h l y v al u a b le a s s e t o f 

b ei n g t h e o nl y bit u m i n o u s c o al fi e l d i n t h e e a st e r n U nit e d S t a t e s l o c ate d o n a 

n a vi g a ble w at er w a y l e s s t h a n 4 0 0 m il e s fr o m ti d e w a t e r. T he tr a n s p o rt a ti o n 

ec o n o mie s a f f o r d e d b y t h e W ar ri or- T o m bi g b e e W at er w a y, c o u ple d w it h 

m o de r n m i n i n g te c h n ol o g y, ha ve e xte n d e d t h e f u t u r e f o r Ala b a m a' s c o m m er ci al 

c o al i n d u str y . C oal b a r g e d d o w n t h e W ar ri or- T o m bi g b e e i s u se d p ri n c i p a ll y 

i n e l e c t r i c p o we r p l a n t s. M uc h g o es t o f o r ei g n c o u n tri e s v i a t h e P o rt o f 

M o bil e. C o ke a n d ma n y c o al c h e m ic als a r e pr o d u c e d fr o m c o al fr o m mi n es i n 

t h e W arr i o r B a si n .

- 1 3 -
7 2 1

I m ort e d t h r o u g h M o b il e f o r u se b y b a si c i n d u str y a r e hi g h g ra d e s o f ir o n 

o re fr o m A f ri c a, L a b ra d o r, V e n e z u ela , C hil e a n d P e r u . U nl oa de d fr o m 

o c e a n - g oi n g v e s s e l s a t a m o d er n b ul k h a n dli n g p l a n t a t M o bil e, t h e o re i s 

tr a n s f e r r e d t o b a r g e s f o r u p str e a m d e sti n a ti o n s. Li m e st o n e i s b a r g e d fr o m 

a q u a rr y i n t h e l o w er r e a c h e s o f t h e W ate r w a y t o ce m e nt m a n u fa ct u ri n g p l a n t s 

o n t h e G ulf C o a st.

I n a d d iti o n t o b ei n g a n a v e n u e f o r t h e l o w -c o st m o ve m e nt of ma n y b a sic ra w 

m a t e ri a l s a n d f u e l s e s s e n ti a l f o r m o d er n li v i n g , t h e W ar ri or- T o m bi g b e e i s a n 

i m p o rta nt f a c t o r i n e xte n di n g t h e m a r k ets o f i n d u s t ri e s n e a r i t . T i n p la te 

i s b a r g e d t o M o b ile f o r e x p o rt t o f r u it a n d f o o d c a n ni n g p l a n t s i n t h e 

H a w aiia n I sla n d s a n d els e w h e r e. T i n p la te a l s o g o es b y i n la n d w at er w a y t o 

d o m e st ic p l a n t s f o r t h e p a c k a gi n g o f f o o d, b e v e r a g e s, o il a n d ma n y o t h e r 

c o m m o ditie s.

O ut b o u n d ir o n a n d s t e e l s hi p m e nts o n t h e W ate r w a y c o n si st o f c a s t ir o n p i p e, 

s t r u c t u r a l s t e e l f o r t h e c o n str u c ti o n o f b ri d g e s, b u il d i n g s a n d fl o a ti n g e q ui p ­

m e nt; s t e e l s h e et f o r d o m e sti c a n d f o r ei g n d e s ti n a ti o n s ; s t e e l p l a t e f o r s h i p ­

b u il d i n g a n d pi p e f a b ri c a ti n g a n d o t h e r m is c ell a n e o u s ir o n a n d s t e e l p r o d u cts .

A m o n g o t h e r c o m m o ditie s m o vi n g o n t h e W arri o r- T o m bi g b e e Ri v e r a r e s u g a r; 

l o g s a n d p ul p w o o d t o p a p e r p r o d u ci n g p l a n t s a n d l u m be r m ill s ; m ola s s e s f o r 

t h e m a n u fa ct u re o f li v e s t o c k f e e d; sa n d a n d g r a v el f o r r o a d s a n d ot h e r c o ns t r u c ti o n ; o y st e r s h e ll f o r t h e c h e m ic al a n d ce m e nt i n d u s t ri e s ; h ot c a u sti c 

s o d a; s y n t h e ti c r u b b e r; i n d u s t r i a l c h e m ic als a n d s c r a p m e t a l s. Wit h t h e c o m pl eti o n o f a s m elt i n g p l a n t i n t h e T h e o d ore a r e a o f M o bil e, u tili z i n g A fr ic a n 

o r e, a l a r g e t o n n a g e o f ir o n i n g ot a l s o w ill m o ve o n t h e W arri o r- T o m bi g b e e 

R i v e r.

- 1 4 -
7 2 2

N G U S E D F O R N A VI G A TI O N

T he W arri o r- T o m bi g b e e W ate r w a y i s a n h i s t o r i c a rt e r y o f c o m m u n ic ati o n 

a n d c o m m er ce. E a rl y s e ttl e r s u se d i t e x t e n si v e l y t o t r a n s p o rt p a s s e n g e r s 

a n d f r e i g h t. I n 1 8 1 8, t h e S t. Ste p h e n s Ste a m b o at C o m pa n y was f o r m e d. I t 

was f o ll o w e d i n 1 8 2 0, b y t h e Ste a m b o at C o m pa n y o f Al a b a m a a n d i n 1 8 2 1, b y 

t h e M o b ile Ste a m b o at C o m pa n y. P a d dle w h e el v e s s e l s pla c e d i n s e r v i c e b y 

t h e s e c o m pa nie s b e g a n t o r e p la c e t h e r a f t s a n d fl a t b o a t s w hi c h ha d be e n 

u se d w i d el y .

E ve n w it h st e a m p o w er, t r a v e l was sl o w. I t t o o k ste a m b o ats 2 t o 3 we e k s 

t o g o fr o m M o b il e t o D e m o p oli s, a d i st a n c e o f 2 2 0 m il e s. T r a f fi c a s f a r 

a s T u s c al o o s a was li m it e d t o 6 t o 9 m o n t h s o f t h e y e a r. I n g e n e r al, t h e 

e a rl y ste a m e rs o p e r ate d u p t o t h e F a ll L i n e. R o u g hl y s p e a ki n g, t h e F a ll 

Li n e i s a t t h e l o w er e n d o f t h e w a t e r f a ll s a n d r o c k y s h o als w he re str e a m s 

f a ll t h e m ost i n t h e s h o rt e st d i st a n c e. T his li n e c r o s s e s t h e W arr i o r 

R i v e r a s h o rt d i st a n c e bel o w T u s c al o o s a. ( I t c r o s s e s t h e C o os a n e a r Wet u m p ka 

a n d t h e C h att a h o o c h e e n e a r C ol u m b u s, G e o r g ia .) I n t h o s e d a y s, t h e ri v e r s 

w er e n a vi g a ble a l s o a b o v e t h e F a ll Li n e b y s h all o w d r a ft v e s s e l s b ut t h e 

F a ll Li n e r e p r e s e n t e d a t r a n s p o rt a ti o n b a r ri e r w hi c h di v i d e d t h e S t a t e i n t o 

t w o s e c ti o n s. T he C o a sta l P la i n a r e a re a p e d t h e f u ll b e n e fit o f t h e n a v ig a ble w ate r w a y s - - a n d d e v el o p e d f a s t e r. T h os e a r e a s a b o v e t h e F a ll Li n e 

d e v el o p e d m o re sl o w l y , b ut f o st e r e d e n o u g h t r a f f i c t o ke e p fl a t b o a t o p e r a ­

ti o n a li v e a c r o s s t h e F a ll L i n e.

T his was s t r i c t l y o n e- w a y t r a f f i c . F l a t b o a ti n g was a ri s k y o p e r a ti o n. Of 

e v e r y 1 0 b o ats s t a r ti n g o n t h e u p p er W a rr i o r R i v e r, o nl y 7 o r 8 s u c c e e d e d i n 

r e a c hi n g t h e l o w er ri v e r a t T u s c al o o s a. A fte r tr a v e r si n g t h e F a ll Li n e 

a n d r e a c hi n g t h e i r d e sti n a ti o n d o w n ri v e r a n d dis p o si n g o f t h e i r c a r g o e s, 

t h e fl a t b o a t s t h e m s el v e s w er e k n oc ke d d o w n a n d s o l d f o r l u m b er.

M o st p e rs o n s d o n't k n o w t h a t D e m o p olis o n ce wa s a ste a m b o at c e n t e r. T he 

"J a m es T. S t a p l e s " wa s t h e l a s t st ea m p a c k et b o at t o o p e r ate o n t h e R i v e r.

I t , a n d 2 6 li v e s , w er e l o s t w he n o n e o f i t s 3 b o il e r s e x pl o d e d.

F or a b o ut 5 0 y e a r s a f t e r Ala ba m a be ca me a s t a t e , t h e ri v e r s ha d al m o st a 

m o n o p ol y o n t r a n s p o rt a ti o n . I t was a b o ut 1 8 7 0 b e f o r e t h e r a il r o a d m il e a g e 

i n t h e s t a t e e q u all e d t h e m o re t h a n 1, 5 0 0 m il e s o f ri v e r s n a vi g a ble b y s o me 

ki n d o f c r a f t o r o t h e r. T he fi e r c e c o m p eti ti o n b et w ee n w ate r t r a n s p o rt a ti o n 

a n d r a il r o a d s g ot g oi n g i n e a r n e st i n 1 9 0 0 w he n r a il r o a d tr a c k a g d ha d i n ­

c r e a s e d t o a b o ut 6, 0 0 0 m il e s. R ail r o a d e q ui p m e nt ha d be e n i m pr o v e d. T he 

l i t t l e p a c k et b o ats c o u l d n't c o m p ete. W he n t h e S t a t e Hi g h w a y D e p art m e n t was 

e st a b li s h e d i n 1 9 1 1 t o p r o vi d e a ll- w e a t h e r r o a d s, t h e i r e n d was f o r e t o l d .

D uri n g t h i s p e ri o d, a m aj o r c h a n ge t o o k p l a c e; t h e t o w b o at ma de i t s a p p e a ra n c e. 

I t c a r ri e d n o c a r g o b ut si m pl y was a p o w er u n it c a p a ble o f p r o p e lli n g a 

n u m b er o f b a r g e s. Ea c h b ar g e c o ul d c a r r y a s m uc h o r m or e t h a n o n e ol d 

p a c k et b o st.

- 1 5 -
7 2 3

A b O V e:

 t a c i U tii: TM

1 1 a t P t

* 

B i n i n h a m s h o w i n

8 s o me of t he l o a di n g

A b o ve: A b ar ge l o a d of c a st ir o n pi pe

o ut of Bir mi n g ha m de sti ne d f or

f o rei g n de li v er y.

At le ft: S p eci al t y pe oil b ar ge o n t he

W arri or Ri ver de sti ne d f or a n as p h al t

pr o d ucts pl a nt u pstre a m.

- 1 6-
7 2 4

P R E S E N T L A R G E T O W

1 1 W a rri o r t y p e b or g e* ( 2 5* b y 1 4 0 ) a n d t o w b o at. C a p o c*

it y of e a c h b ar g e — 5 5 0 f o nt. C a p a cit y of t o w — 6 0 5 0 t o n*.

2 8 0' C L E A R L E N G T H

A T O L D L O C K S

C a p a cit y — 4 W a rri o r t y p e b ar g e* —

2 2 0 0 t o n* p er l o c k o g e. Ti m e r e q uir e d

p er l o c k o g e — 5 0 mi n ut e *. T ot al ti m e

f ar t o w t o cl e ar l o c k — 2 hr*. 3 0 mi n.

A T N E W L O C K S

C a p a cit y p er l o c k a g e — 1 5 W or ri or t y p e b or g e* — 8 2 5 0

t o n* or 8 St a n d ar d 3 5' b y 1 9 5' b or g e* — 9 6 0 0 t o n*.

Ti m e r e q uir e d f or t o w t o cl e or l o c k — 2 0 t o 3 0 mi n ut e*.

N u me r o u s b ar g e a n d t o w b o at li n e s t o d a y p r o vi d e c o m plete t o wi n g s e r v i c e o n 

t h e W arri o r- T o m bi g b e e. T h e y o p e r ate sc re w p r o p e ll e r D ie s el t o w b o ats a n d 

d e e p - d r a ft s t e e l b a r g e s.

W i d el y u s e d o n t h e W ate r w a y t o m o ve d r y b ul k c a r g o e s a n d p a c k a g e d f r e i g h t 

i s t h e " W a r ri o r-t y p e " b a r g e. I t i s 2 5 f t. wi d e b y 1 4 0 f t. l o n g a n d h a s a 

c a p a cit y o f 5 5 0 t o n s. A t y p i c a l t o w c o n si s t s o f 7 t o 1 1 o f t h e s e b a r g e s 

a n d a t o w b o at o f 1, 1 0 0 

t 0

 1, 3 0 0 h o rs e p o w e r. B ec a u se o f t h e i r sta n d a r d d e ­

si g n a n d u nif o r m di m e n si o n s, t h e s e b a r g e s a r e r e a d il y a ss e m ble d i n t o 

v e r s a til e , e f f i c i e n t t o wi n g u n it s f o r c a r g o e s o f v a r yi n g w ei g hts .

A n ele v e n - b a r g e t o w i s f o r m e d t h r e e b a r g e s wi d e a n d f o u r b a r g e s l o n g.

Si n c e t h e t o w b o at i s o f t h e sa m e a p p r o xi m ate si z e a s t h e b a r g e s, i t i s pla c e d 

i n t h e s p a c e b et w ee n t h e t w o s t e r n b a r g e s. I n a s e v e n - b a r g e t o w, t h e b a r g e s 

a r e pla c e d t w o a b r e a st w it h f o u r b a r g e s o n o n e si d e a n d t h r e e b a r g e s a n d t h e 

t o w b o at o n t h e o p p o sit e si d e.

Als o m o vi n g d r y b ul k c o m m o ditie s a r e "j u m b o " b a r g e s w hi c h ha ve a n a v era g e 

c a p a c it y o f 2, 0 0 0 t o n s e a c h. T h es e b a r g e s a r e a b o ut 2 1 5 f t. l o n g a n d 5 0 f t. 

wi d e a n d i n ma n y c a s e s a r e str e a m li n e d f o r g r e a t e r t o wi n g s p e e d a n d e f fi c i e n c y

Cr u de o i l, g a s o li n e, a s p h a lt a n d s i m il a r li q u i d c a r g o e s a r e tr a n s p o rt e d i n 

t o w s o f o n e, t w o o r t h r e e ta n k b a r g e s w it h c a p a c iti e s o f m o re t h a n 4 0 0, 0 0 0 

g all o n s e a c h. E s p e ci all y d e si g n e d f o r s e r v i c e o n t h e W ar ri or- T o m bi g b e e i s 

t h e i n t e g r a t e d t o w f o r t h e m o ve me nt o f b u n k er C o i l. T hi s t o w, c o n si sti n g 

o f 1, 0 0 0 h o rs e p o w er t o w b o at a n d t w o str e a m li n e d b a r g e s w it h a c a p a cit y 

a p p r o xi m ate l y 4, 0 0 0 t o n s h a s a g r e a t e r s p e e d t h a n t h e o r d i n a r y t o w.

S o me c o i m o d it ie s s h i p p e d b y w ate r r e q u ir e s p e c i a l t o wi n g e q ui p m e nt. O ne e xa m pl e i s h ot c a u sti c s o da w hi c h m o ve s t o c h e m ic al a n d ra y o n p l a n t s. B ar ge s 

h a u li n g t h i s c o m n o dit y c a r r y 1, 7 0 0 t o 2, 4 0 0 t o n s o f c o r r o si v e li q u i d a t hi g h

- 1 7 -
7 2 5

te p e r at u r e s o v er l o n g d i s t a n c e s. S o e f f i c i e n t i s t h e i n s u l a ti o n o f t h e s e b a r g e s 

t h a t t h e l o s s o f te m p e r at u r e w hic h o c c u r s i n t r i p s o f 1, 0 0 0 m il e s i s s li g h t. L o gs 

a n d p ul p w o o d a r e b a r g e d i n l a r g e q u a n titi e s e s p e c i a ll y i n t h e l o w er W a rri o rT o m bi g be e V all e y. Ma n y t o n s o f l o g s a r e a l s o r a ft e d t o t h e i r d e sti n a ti o n .

A n y ec o n o m ic gr o wt h i n a n y p a rt o f t h e S t at e h el p s g e n e r at e i n d i r e c t, o r w hat is 

r e f e r r e d t o b y s o me a s " s p ill o v e r" o r " s p i n o f f " b e n e f it s, f o r a r e a s n ot d i r e c tl y 

b e n e f i t t e d .

A n e x a m pl e o f t h e m a n ne r i n w hic h i m pr o v e m e nt o f w ate r w a y s a n d e sta b li s h m e n t of 

f a c i l i t i e s i s b e n e f i c i a l, i s s e e n i n t h e 1 0 -c o u nt y a r e a a r o u n d D e m o p oli s.

B ef ore t h e I n la n d D oc k w it h i t s w ar e h o u se f a c i l i t i e s wa s e st a b li s h e d t h e r e , t h e 

gr o wi n g o f s o y b ea n s a s a n i m p o rta nt a g ri c u lt u r a l p r o d u ct w it h i n t h a t a r e a was 

v e r y li m it e d . T he e st a b li s h m e n t o f t h e w are h o u se f a c i l i t i e s h a s gi v e n i m p et u s 

t o t h e p r o d u cti o n o f s o y b e a y s — a n a g ri c u lt u r a l p r o d u ct i m p o rta nt t o i n d u str y. 

T he a c r e a g e d e v ote d t o s o y b e a n s p r o m is e s t o i n c r e a s e i n f u t u r e y e a r s. P r o vi d ­

i n g t h e w ar e h o us e f a c i l i t i e s a n d a n i m pr o v e d w at er w a y w er e t h e c a t a l y s t s w hi c h 

sti m u la te d t h i s g r o w t h. T he se f a c i l i t i e s w o ul d n ot h a v e be e n b u ilt o n a n u ni m pr o v e d str e a m .

Y E A RS O F P R O G R ES S

Tr e m e n d o us p r o g r e s s h a s b e e n ma de si n c e W arri o r- T o m bi g b e e D e v el o p m e nt A s s o cia ti o n 

be ga n (i n 1 9 5 2 ) i t s w or k o f s ti m u l a ti n g t h e i m pr o v e m e nt o f t h e W at er w a y. O n 

a ri v e r le n gt h t r i p t h e n, i t w o ul d ha v e b e e n n e c e s s a r y t o tr a v e r s e 1 7 l o c k s.

W he n t h e o ut m o d e d d o u b l e -li f t l o c k s a t B a n k h ea d Da m a r e r e p la c e d w it h a si n g l e 

h i g h - l i f t l o c k, t h e r e w ill be o nl y s i x .

B ef o re t h e i m pr o v e m e n ts d e s c ri b e d i n t h i s b o o k, j u s t a s m all t o w w o ul d ha ve 

s p e nt n e a rl y 1 2 5 h o u rs j u s t g oi n g t h r o u g h t h e 1 7 l o c k s d u ri n g t h e r o u n d t r i p 

b et w ee n Bir m i n g h a m a n d M o bil e. W it h ’t h e ne w f a c i l i t i e s , l o c k a g e ti m e w ill ha ve 

be e n re d u c e d fr o m 1 2 5 h o u rs t o 6 t o 8 h o u rs f o r t h e r o u n d t r i p — a s a vi n g o f 

fi v e w h ole d a y s i n l o c ki n g ti m e al o n e )

M ai n ta i n e d b y t h e C or ps o f E n g i n e e r s, U. S. Ar m y, t h e W ate r w a y's n a v i g ati o n 

c h a n n el i s 9 f t. o r m o re d e e p. I t s mi ni m u m w i d t h i s 2 0 0 f t. w he re p r a c ti c a l.

I t e xte n d s 4 5 0 m il e s fr o m M o bil e t o p o i n t s o n t h e W arr i o r- T o m bi g b e e' s m ai n h e a d ­

w ate r t r i b u t a r i e s — t h e L o c u st, M ul b err y a n d Si p s e y F or k s - - i n n o rt h c e n t r a l 

Ala ba m a. A m o ng t h e l a r g e r a r e a s s e r v e d a r e t h o s e ar o u n d M o bil e, D e m o p olis, 

T u s c al o o s a, Bir m i n g h a m , C or d o va a n d J a s p e r.

T he W ar ri or- T o m bi g b e e W at er w a y c o m bi n es w it h t h e Al a b a m a R i v e r t o f o r m t h e 

M o b il e R i v e r, w hi c h c o n n e cts w it h t w o o t h e r m aj o r w ate r hi g h w a y s; t h e M o bile 

S hi p C ha n ne l a n d t h e G ulf I n t r a c o a s t a l W at er w a y.

- 1 8 -
T h e G u l f I n t r a c o a s t a l W a t e r w a y i s a m o d e r n b a r g e c h a n n e l w i t h a d e p t h o f

1 0 f e e t o r m o r e . I t s m a i n r o u t e r e a c h e s 1 , 1 1 6 m i l e s f r o m S t . M a r k s R i v e r

n e a r C a r a b e l l e , F l o r i d a , t o t h e M e x i c a n B o r d e r a t B r o w n s v i l l e , T e x a s .

A t N e w O r l e a n s , i t i n t e r s e c t s t h e 2 , 3 5 0 - m i l e M i s s i s s i p p i R i v e r .

T h e s e w a t e r a r t e r i e s i n t e r c o n n e c t e d w i t h t h e W a r r i o r - T o m b l g b e e W a t e r w a y

v i a t h e P o r t o f M o b i l e , p r o v i d e A l a b a m a a c c e s s t o r i c h f o r e i g n a n d

d o m e s t i c m a r k e t s a n d v a l u a b l e s o u r c e s o f e s s e n t i a l r a w m a t e r i a l s .

S e e m a p b e l o w .

I n t r a c o a s t a l W a t e r w a y
7 2 7

W DI M E N SI O NS F O R M O D E R N T R A NS P O R T A TI O N

T he m o d e r n iz ati o n o f t h e W arri o r- T o m bl g b e e W at er wa y g e a r s i t t o t h e e v e r - 

i n c r e a si n g t r a n s p o rt a ti o n a n d o t h e r n e e d s c r e at e d b y ste a d y i n d u s t ri a l e x p a n si o n 

i n Al a b a m a a n d i n t h e S o ut h . I n a d d iti o n t o w ate r t r a n s p o rt a ti o n b e n e fit s, t h e 

i m pr o v e d f a c i l i t i e s p r o vi d e li m it e d fl o o d c o n t r o l. P o ols b e hi n d t h e ne w da ms 

p r o vi d e w h ole s o me r e c r e a ti o n f o r t h e fis h e r m a n, t h e b o ati n g e n t h u s i a s t, t h e w ate r 

s k i e r a n d t h e n at u r e l o v e r. W at er i s ma de a v a il a b l e i n q u a n titi e s f o r d o m e stic 

a n d i n d u s t ri a l u s e s i n cl u d i n g h y d r o e l e c t ri c p o we r g e n e r ati o n.

F o u r ne w hi g h da ms w it h l o c k s 6 0 0 f t. l o n g x 1 0 0 f t. wi d e ha ve be e n b u ilt t o 

gi v e t h e W ate r w a y f a c i l i t i e s m o d er n di m e n si o n s.

S t r u c t u r e , L o c ati o n a n d D at e O p e n e d 

t o N a vi g ati o n

H olt L oc k a n d Da m W a rr i o r L o c k a n d Da m

Bla c k W arr i o r R i v e r Bla c k W a rri o r,

n e a r T u s c al o o s a - o pe n e d i n 1 9 6 6 n e a r E uta w, A la. - o p e n e d i n 1 9 5 7

J a c k s o n L oc k a n d Da m D e m o p olis L o c k a n d Da m

T o m bi g b ee Ri v e r T o m bi g b ee Ri v e r

n e a r C o f f e y v ill e, A la. - o p e n e d i n 1 9 6 0 a t D e m o p olis - o p e n e d i n 1 9 5 4

W illi a m Ba c o n O li v e r L o c k a n d Da m a t T u s c al o o s a, c o m ple te d i n 1 9 4 0, a n d Ba n kh e a d L o c k a n d Da m, 1 9 m il e s u p str e a m fr o m H olt L o c k a n d Da m, a r e s t i l l i n 

o p e r a ti o n . A re pla c e m e nt l o c k i s b ei n g b u ilt a t B a n k h ea d.

- 2 0 -
7 2 8

D E M O P O LI S L O C K A N D D A M (a b o v e ), t h e f i r s t o f m o d er n n a v i g ati o n st r u c t u r e s 

b u ilt o n t h e W ate r w a y si n c e 1 9 4 0, wa s o p e n e d t o t r a f f i c i n A u g u st, 1 9 5 4, 

a s a re pla c e m e nt f o r ol d L o c k s a n d Da ms 4, 5, 6 a n d 7. L o c ate d j u s t bel o w 

t h e c o n fl u e n c e o f t h e W arr i o r a n d T o m bi g be e R i v e r s, i t c o n si st s o f a 6 0 0 - ft. 

b y 1 1 0 f t. l o c k w it h a 4 0 - f t. l i f t , a c o n c r et e - g r a v it y s p il l w a y 1, 4 8 5 f t. 

l o n g a n d a n e a rt h di k e 4, 5 0 0 f t . l o n g o n t h e ri g h t b a n k. B e hi n d t h e ne w 

s t r u c t u r e i s a d ee p w ate r p o ol a p p r o xi m ate l y 5 0 m il e s l o n g.

A b o ut 5 0 m il e s u p str e a m fr o m D e m o p olis L o c k a n d Da m, n e a r E uta w a n d 

G re e n s b o r o , i s W A R RI O R L O C K A N D D A M, t h e se c o n d m o de r n n a v i g ati o n s t r u c t u r e 

t o be c o n str u ct e d o n t h e W at er w a y. I t r e p l a c e s ol d L o c k s a n d Da ms 8 a n d 

9. I t c o n si s t s o f a da m a c r o s s t h e W at er wa y j u s t a b o v e a h o rs e s h o e be n d 

( a t l e f t i n p i c t u r e ) a n d a l o c k i n a c u t o f f c a n al ( a t ri g h t i n p i c t u r e ) 

a c r o s s t h e c u r v e o f t h e b e n d. T he p r o j e c t i n cl u d e s a c o m pa ct e d e a r t h - f i l l 

da m a n d a g ate d c o n c r ete s p il l w a y c o n tr o ll e d b y si x v e r t i c a l - l i f t g a t e s.

T he c u t o f f c a n a l, e f f e c ti n g a s a vi n g t o n a v i g ati o n o f a b o ut fi v e m il e s, 

i s 2 4 0 - ft. w i d e, 1 2 - ft. d ee p a n d a p p r o xi m ate l y o n e m il e l o n g. T he l o c k, 

l o c ate d a b o ut 3/ 4 m il e s o u t h e a st o f t h e da m, h a s c l e a r i n si d e di m e n si o n s 

o f 6 0 0 f t. x 1 1 0 f t . a n d a ma xi m u m l i f t o f 2 2 f t.

- 2 1 -
J AC K S O N L O C K A N D D A M i n t h e l o w er r e a c h e s o f t h e T o m bi g b ee, i s 1 1 0 ri v e r 

il e s a b o v e M o b il e n e a r C o f f e y v ill e a n d a p p r o xi m ate l y 2 3 m il e s n o rt h w e st of 

J a c k s o n. I t i s 9 8 m il e s d o w n st re a m fr o m D e m o p olis L oc k a n d Da m. I t r e ­

p l a c e s ol d L o c k s a n d Da ms 1, 2 a n d 3. As p a rt o f t h e p r o j e c t, a c u t o f f c a n al 

9 f t. d ee p a n d 4, 8 0 0 f t. l o n g wa s d re d g e d b et w ee n M il e 1 0 0 a n d Mil e 1 0 4 

b y - p a s si n g L o c k a n d Da m 1, a n d s a vi n g a b o ut f o u r m il e s o f r i v e r t r a v e l.

T he J a c k s o n L o c k , b u ilt i n t h e ri g h t b a n k, i s 1 1 0 -f t. x 6 0 0 f t. l o n g w it h 

a l i f t o f 3 4 f t . A dja c e nt t o t h e l o c k i s a g ate d s p il l w a y 5 3 6 - ft. l o n g 

c o n t r o ll e d b y e i g h t g a t e s. L e ft o f t h e g ate d s pil l w a y i s a fi x e d c r e s t, c o n c r ete 

g r a v it y s p il l w a y e xte n di n g 6 4 0 - ft. t o t h e l e f t b a n k.
7 3 0

H O L T L O C K A N D D A M, a b o ut si x m il e s u p str e a m fr o m T u s c al o o s a, Ala ba m a, 

i s t h e n e w es t o f t h e s t r u c t u r e s. C o m pl et e d i n 1 9 6 8, w it h a l i f t o f 6 3. 6 f t . , 

i t r e p l a c e s L o c k s a n d Da ms 1 3, 1 4, 1 5 a n d 1 6 w hi c h w er e l o c at e d i n t h e 

re a c h o f t h e W at er wa y u p str e a m fr o m O li v e r L o c k a n d Da m (s e e b el o w ).

T h eir l o c k c h a m be rs w er e t o t a ll y i n a d e q u ate ; t h e y w er e o nl y 5 2 f t . wi d e 

a n d v a rie d i n l e n g t h fr o m 2 8 2. 1 f t. a t L o c k s 1 4 a n d 1 5, t o 2 8 5. 5 f t . a t 

L oc ks 1 3 a n d 1 6. A l a r g e t o w r e q u ir e d a b o ut 2 1 h o u rs p e r r o u n d t r i p t o 

l o c k t h r o u g h t h e s e f o u r s m all, o b s o le t e s t r u c t u r e s. L oc ka ge a t t h i s p oi n t 

f o r a l l t y p e s a n d si z e s o f t o w s n o w i s a c c o m pli s h e d i n a p p r o xi m ate l y 3 0 

m i n ute s. T he m ai n f e at u r e s o f t h e l o c k a n d da m a r e a l a r g e h i g h - li f t l o c k 

o n t h e l e f t ba n k a n d a c o n c r et e g r a v it y s p il l w a y c o n t r o ll e d b y 1 4 i n d i v i d ­

u a ll y o p e r ate d t a i n t e r g ate s a c r o s s t h e ri v e r c h a n n el. T he Ala ba m a 

P o we r C o m pa n y's p o w er h o u se i s o n t h e ri g h t b a n k. T he s t r u c t u r e i s 1 8 ^ 

m il e s d o w nstr ea m fr o m J o h n H o lli s Ba n k he a d L o c k a n d Da m.

T he " n e w e st" o f t h e ol d s t r u c t u r e s, t h e WI L LI A M B A C O N O LI V E R L O C K A N D D A M 

(a b o v e) a t T u s c al o o s a, n o w w ell p a st t h e m i d p oi n t o f i t s ec o n o m ic " li f e " o f 

5 0 y e a r s, wa s o p e n e d t o n a v i g ati o n i n 1 9 4 0. T he l o c k c h a m be r - 9 5 f t. wi d e 

b y 4 6 0 f t. l o n g - was a t t h e ti m e o f c o n str u cti o n t h o u g ht t o be a d e q u ate f o r 

f u t u r e n e e d s. H o w e v er, t h e c h a n g e i n b a r g e d e si g n t o p e r m it e ac h b ar g e t o 

c a r r y g r e a t e r l o a d s, a n d t h e i n c r e a s e i n t r a f f i c , s u g g e st t h a t t h e si z e o f t h i s 

l o c k be i n c r e a s e d t o t h e sta n d a r d di m e n si o n o f 1 1 0 f t. b y 6 0 0 f t.

- 2 3 -
7 3

J OH N H O L LI S B A N K H E A D L O C K A N D D A M i s o n e o f t h e o l d e r s t r u c t u r e s, t h e f a rt h e s t 

u p str e a m . I t i s t h e o n e c o m ple te d i n 1 9 1 5 a n d k n o w n b y o l d ti m e r s a s L o c k 1 7.

T he l i f t o f t h e t w o - sta g e l o c k i s 7 2 f t. - - t h e h i g h e st o n t h e W at er w a y. T he 

s t r u c t u r e h a s u n d er g o n e ma n y f a c e - li f ti n g s . G ate s w er e i n s t a ll e d i n 1 9 3 7 t o 

e xte n d t h e 9 - f t. c h a n n el f a rt h e r i n t o J e f f e r s o n a n d W al ke r C o u nti e s. T he s h o rt, 

n arr o w l o c k s, 2 8 5. 5 f t . l o n g a n d o nl y 5 2 f t . w i d e, a r e i n ta n d e m - - t h a t i s a t t w o 

l e v e l s - - r e q u iri n g t w o l o c ki n g o p e r a ti o n s i n st e a d o f o n e. T o ws m ust be d i s ­

a ss e m ble d i n t o s m all s e c ti o n s t o e n t e r. M uc h ti m e a l s o i s l o s t a s c o n g e sti o n 

d e v el o p s u p str e a m a n d d o w nstr ea m a s a c o n s e q u e n c e. D el a y s o f h a l f a da y a n d 

l o n g e r a r e n ot u n c o n m o n.

R e p la ce m e n t b y t h e U. S. Ar m y C or ps o f E n gi n e e rs o f t h i s f a c ilit y w it h a si n g l e 

l i f t s t r u c t u r e 1 1 0 f t. wi d e b y 6 0 0 f t . l o n g i s u n d er w a y . T h u s, a n ot h e r m aj o r 

o b j e c ti v e i n t h e w o r k o f t h e W arri o r- T o m bi g b e e D e v el o p m e nt A s s o cia ti o n i s o n t h e 

wa y t o r e a li z a ti o n . T he l o c k w all s a n d g ate m ec ha ni s m s o f t h e o l d l o c k a r e i n a n 

a d v a n c e d s t a t e o f d e t e ri o r a ti o n . T he ne w l o c k i s s c h e d ule d f o r c o m ple ti o n l a t e 

i n 1 9 7 4.

- 2 4 -

5 4 - 2 3 9 0 - 7 5 - 4 7
7 3 2

P OW E R P R O D U C TI O N O N T H E W A R RI O R- T O M BI G B E EM O BI L E RI V E R S Y S T E M

T h e re a r e e i g h t p o w er g e n e r a ti n g f a c i l i t i e s o n t h e W a rri o r- T o m bi g b e e - 

M o bil e W ate r w a y s s y st e m - 5 ste a m a n d 3 h y d r o. Ala b a m a P o w er C o m p a n y's 

ste a m p l a n t s - B a rr y a n d C hic k a s a w n e a r M o bil e; t h e G re e n e C o u nt y p l a n t 

n e a r D e m o p oli s; a n d t h e G o r g a s ste a m g e n e r a ti n g c o m ple x n e a r C o r d o v a a n d 

J a s p e r i n W al k er C o u nt y h a v e a c o m bi n e d g e n e r a ti n g c a p a c it y o f o v e r t w o 

m illi o n k il o w a tt s ! T h e Ala b a m a E l e c t r i c C o o p e r a ti v e h a s a 6 4, 0 0 0 k il o w a tt 

ste a m g e n e r a ti n g p l a n t a t J a c k s o n , A la b a m a. A n i m p o rt a n t f a c t o r i n t h e 

l o c a ti o n o f ste a m g e n e r a ti n g p l a n t s i s t h e a v a i l a b i l i t y o f l o w c o s t f u e l. 

Y e a r-r o u n d n a v i g a ti o n o v e r t h e 4 5 0 - m il e s t r e t c h o f t h e W a rri o r- T o m bi g b e e - 

M o bil e R i v e r m a k es p o s s i b l e t h e d e li v e r y v i a w at e r o f t h e m illi o n s o f t o n s 

o f Ala b a m a c o a l r e q u i r e d a n n u a ll y b y t h e s e g e n e r a ti n g p l a n t s a t a c o s t t o 

h e l p ma ke l o w e l e c t r i c r a t e s p o s s i b l e .

- 2 5 -
7 3 3

d r o ele ctric p l a n t s ha ve b e e n b u ilt b y Al a b a m a P o we r C o m p a n y a s i n t e g r a l 

p a rt s o f t h e H olt a n d B a n k h ea d Da ms o n t h e W a rr i o r R i v e r. T he f e d e r al 

g o ve r n m e n t o w ns a n d o p e r at e s t h e da ms a n d l o c k s. T he P o we r C o m pa n y o w ns 

a n d o p e r at e s t h e p o we r p l a n t s. T h es e p l a n t s ha ve a c o m bi ne d g e n e r ati n g 

c a p a c it y o f 8 5, 1 2 5 k il o w a tt s.

O ne o f t h e m o re i m p o rta nt ( p e r h a p s t h e m ost i m p o rta nt) s t r u c t u r e s b u ilt i n 

Al a b a m a i n r e c e n t y e a r s i s t h e 7 8, 7 5 0 k il o w a tt Le wis S mit h Da m o f Ala ba m a 

P o we r C o m pa n y o n t h e Si p s e y F or k o f t h e W a rri o r R i v e r. T his 3 0 0 f t. hi g h 

s t r u c t u r e , o p e r ati n g p ri m a ril y a s a p o w er g e n e r ati n g p l a n t, c r e a t e s a 3 3 - 1 / 2 

s q u a re m il e r e s e r v o i r.

T he r u n - o f f fr o m t h e w ate r s h e d i s c a u g ht d u ri n g s e a s o n s o f he a v y r a i n f a ll, 

t h u s g r e a tl y di m i n is hi n g fl o o d c r e s t s i n t h e m ai n ri v e r d o w n st re a m . T his 

st o r a g e o f w ate r a l s o m a k es i t s r e l e a s e p o s si b l e d u ri n g p e ri o d s o f d r o u g ht 

t o p r o vi d e mi ni m u m fl o w s n e c e s s a r y f o r y e a r-r o u n d n a v i g ati o n a n d t o le s s e n

t h e d o w n st re a m st a g n ati o n p r o ble m s w hic h r e s u lt d u ri n g p e ri o d s o f l o w fl o w. 

T he i m p o u n d m e nt al s o ma ke s a v a il a b l e a p l e n ti f u l s u p pl y o f c o ol i n d u s t ri a l 

w ate r f o r t h e Bir m i n g h a m a r e a. S mit h La ke h a s bec o m e o n e o f t h e p ri n c i p a l 

r e c r e a ti o n a r e a s i n Ala ba m a.

- 2 6 -
AT O F T HE F U T U R E?

a v i n g r e a d t h u s f a r, y o u w ill a g re e t h a t m uc h h a s b ee n a c c o m pli s h e d i n 

t h e d e v el o p m e n t o f t h e W arri o r- T o m bi g b e e- M o bil e Ri v e r S y st e m . M uc h y e t, 

h o w e v er, n e e d s t o be d o n e. A ll o f t h e o ut m o d e d l o c k s a n d da ms ha ve be e n 

r e p la c e d w it h m o d er n s t r u c t u r e s e x c e pt t h e ta n d e m l o c k a t Ba n k he a d Da m 

a n d t h e u n d e r siz e d W illi a m Bac o n O li v e r L o c k a t T u s c al o o s a. Ba n k he a d Da m 

h a s b ee n r e h a b ilit a t e d . A m o de r n l o c k t o r e p la c e t h e o b s ole t e s m all 

ta n d e m l o c k s a t B a n k h ea d i s u n d er c o n str u c ti o n .

H ea d w at er s D e v el o p m e nt

Alt h o u g h Al a b a m a P o we r C o m pa n y's Le wis S mit h Da m o n t h e Si p s e y F or k 

o f t h e W arr i o r Ri v e r p r o vi d e s a n i m p o rta nt d e g re e o f fl o o d c o n tr o l a n d l o w 

fl o w a u g m e nta ti o n, o nl y a b o ut 2 5 7. o f r u n o f f fr o m t h e w ate rs h e d o f t h e 

W arri o r B as i n d r ai n s i n t o t h e Si p s e y F o r k . A b o ut 4 0 7. d r ai n s i n t o t h e o t h e r 

t w o f o r k s - t h e M ul b err y a n d L o c u st F o r k s. I m p o u n d m e nts o n t h e s e t w o f o r k s, 

t h e r e f o r e , a r e e s s e n ti a l t o p r o vi d e p ri n c i p a ll y fl o o d c o n tr o l a n d l o w fl o w 

a u g m e nta ti o n. H y d r o ele ctric p o we r g e n e r ati o n, r e c r e a ti o n , fi s h a n d w il d li f e 

p r e s e r v ati o n a n d e n vir o n m e nta l i m pr o v e m e n ts c o ul d be a m o n g o t h e r b e n e fit s. 

Da ms o n t h e L o c u st a n d M ul b er r y F or k s w o ul d p r o vi d e i m p o u n d m e nt f o r m uc h 

o f t h e a b u n d a nt a n n u al r a i n f a ll o n t h e W a rri o r w ate r s h e d ( 5 3 i n c h e s a n n u all y )

P ri n c i p a l h e a d w ate r t r i b u t a r i e s o f t h e W a rri o r R i v e r a r e t h e L o c u st, M ulb e rr y a n d Si p s e y F o r k s. T he L o c u st F or k r i s e s i n Bl o u nt C o u nt y a n d fl o w s 

s o u t h w e ste rl y . T he M ul b err y F o r k ri s e s i n C ull m a n a n d Bl o u nt C o u nti e s, 

fl o w s s o u t h w e ste rl y u n til j o i n e d b y t h e Si p s e y F o r k , t h e n c e s o u t h e rl y f o r 

4 6 m il e s t o j o i n t h e L o c u st F or k a n d f o r m t h e W a rri o r Ri v e r 2 0 m il e s w e st 

o f Bir mi n g h a m . T he Si p s e y F or k ri s e s i n W i n st o n, La wre nc e a n d C ull m a n 

C o u nti e s a n d fl o w s s o u t h e a st e rl y u n til i t j o i n s t h e M ul b er r y F or k n e a r 

Si p s e y i n W al ke r C o u nt y.

T he r e p o rt s o f t h e U. S. Ar m y C or ps o f E n gi n e e rs ac k n o w le d g e t h e n e e d o f 

m u lt i- p u r p o s e da m s a n d r e s e r v o i r s o n t h e s e h e a d w ate rs t o p e r m it t h e 

st o r a g e o f w ate r d u ri n g p e ri o d s o f h e a v y r a i n f a ll f o r s y ste m ati c r e l e a s e 

d u ri n g p e ri o d s o f l i t t l e o r n o r a i n f a ll. Wit h t h e m o d e r n iz ati o n o f t h e W at er 

wa y d o w nstr ea m a n d t h e c o nti n ui n g i n c r e a s e o f t h e w ate r b o r n e c o m m er ce, t h e 

ne e d be c o m es i n c r e a si n g l y m o re p r e s si n g f o r t h e st o r a g e o f w ate r u p str e a m 

t o s u p ple m e nt t h e r i v e r' s n a t u r a l fl o w i n d r y s e a s o n s. M ore a n d m o re w ate r 

i s b ei n g u s e d f o r l o c k a g e s. T he c o n str u cti o n o f 6 0 0 - ft. b y 1 1 0 - ft. hi g h 

l i f t l o c k s g r e a tl y i n c r e a s e s t h e a m o u nt o f w ate r n e c e s s a r y f o r e ac h l o c k 

o p e r a ti o n. W it h o ut a d e q u ate h e a d w ate r st o r a g e a n d a s t a b ili z e d fl o w , l o c k 

o p e r ati o n c o ul d be li m it e d w it h r e s u lt a n t w i d e s p r e a d ec o n o m ic l o s s e s t o 

t h e a r e a s e r v e d b y t h e W at er wa y.

A st a b l e fl o w w ill g r e a tl y a s s i s t i n p o ll u ti o n c o n t r o l; w ill p r o vi d e a s o u rc e 

o f a d d iti o n a l w ate r s u p p li e s f o r d o m e st ic a n d i n d u s t ri a l u s e; a n d w ill ma ke 

p o s si b l e s u b s t a n ti a l e l e c t r i c e n er g y g e n e r ati o n. ( W at er n e e d s i n t h e Bir mi n g h 

a r e a al o n e a r e e x p e cte d t o d o u ble w it h i n s e v e r a l d e c a d e s.)
7 3 5

si d e s t h e ec o n o m ic b e n e f it s, v i r t u a ll y u n li m it e d o ut d o o r r e c r e a ti o n a l 

o p p o rt u n iti e s w ill be o f f e r e d b y t h e i r d e v el o p m e nt. T he W ate r w a y's h e a d w ate rs 

a r e r e a d il y a c c e s si b l e t o m o re t h a n 8 0 0, 0 0 0 p e o ple r e si d i n g w it h i n a 5 0- m il e 

r a d i u s. T h u s, t h e r e a r e c o m p elli n g re a s o n s w h y t h e s e h e a d w ate rs da ms a r e 

a m o n g t h e m aj o r re m ai n i n g o b j e c ti v e s o f t h e W arri o r- T o m bi g b e e D e v el o p m e nt 

A s s o cia ti o n.

O t h e r N e c e s sa r y I m pr o v e m e nts

O t h e r n e c e s s a r y i m pr o v e m e n ts a r e: i n c r e a si n g t h e w i d t h o f t h e W illi a m Bac o n 

O li v e r L o c k fr o m t h e p r e s e n t 9 5 - ft. w i d t h t o t h e 1 1 0 - ft. sta n d a r d w i d t h a n d 

6 0 0 - ft. sta n d a r d l e n g t h ; c h a n n el i m pr o ve m e n ts t o e li m i n a t e s o me o f t h e s h a r p e r 

b e n d s i n t h e r i v e r; t h e c o n str u c ti o n o f a l o w da m a n d l o c k d o w n st re a m fr o m 

J a c k s o n L o c k a n d Da m t o e li m i n a t e pr o ble m s w hi c h d e v el o p t h e r e a t c e rt a i n 

st a g e s o f t h e ri v e r ; a n d t h e d e e p e ni n g o f t h e M o b il e S hi p C h a n n el t o 4 2 f t. s o 

t h a t l a r g e o c e a n - g oi n g f r e i g h t e r s c a n c o me i n t o t h e P o rt o f M o b il e f u ll y la d e n: 

a n d t h e d e v el o p m e n t o f a d e e p a n c h o ra g e n e a r t h e P o rt o f M o b ile a r e a.

T o b ri n g a b o ut t h e c o m ple ti o n o f t h e f u ll d e v el o p m e n t o f t h e W ar ri o r- T o m bi g b e eM o b ile R i v e r S y st e m r e q u ir e s t h e i n t e r e s t a n d s u p p o rt o f e v e r y c iti z e n a n d

o r g a n i z a ti o n i n t e r e s t e d i n t h e c o n ti n u i n g ec o n o m ic d e v el o p m e n t o f Ala ba m a.

W A T E R W A Y I MP R O VE ME NT S B E N E FI T 

E V E R Y B O D Y

I m pr o v e m e nt o f t h e n a ti o n's s e a p o rt s, O re at L a k es S y st e m, i n t r a c o a s t a l 

c h a n n els a n d i n la n d w ate r w a y s i s i m p o rta nt t o e v e r y A m eri c a n. T he 2 2 l a r g e st 

m etr o p o lit a n c e n t e r s o f t h e U nit e d S t a t e s a r e l o c ate d o n i m pr o v e d w ate r c o u r s e s. 

A p p r o xi m ate l y t w o -t h ir d s o f t h e n a ti o n's p o p u la ti o n li v e s i n c o u n ti e s a t l e a st 

h a l f o f w h o se la n d a r e a i s n ot m o re t h a n 5 0 m il e s fr o m n a vi g a ble w ate r w a y s.

V i rt u a ll y e v e r y m aj o r c it y , m o st i n d u s t ri e s a n d a l l n a v al, s h i p b u il d i n g a n d 

s h i p r e p a i r y a r d s a r e s e r v e d b y w ate r w a y s. A v e r y g r e a t p a rt o f A m e ri c a's 

ec o n o m y a n d a l l o f i t s n a ti o n a l d e f e n s e a r e li n k e d t o t h e s e c h a n n els . W at er ­

wa ys a r e a l s o a n i n d is p e n s a b le c o m pl e m e nt t o a l l o t h e r ki n d s o f t r a n s p o rt a ti o n .

I m pr o v e d h a r b o r s a n d c h a n n els , p r o p e rl y m ai n ta i n e d, a r e v i t a l. Y et, t h e r e i s 

p r o b a bl y n o o t h e r l e g i s l a ti o n o n t h e A m eric a n s c e n e l e s s u n d e r st o o d, o r m or e 

m is u n d e r st o o d, b y t h e p u b li c t h a n t h a t o f w at er w a y d e v el o p m e nt.

W at er w a y i m pr o v e m e nt p r o j e c t s a r e n ot i n iti a t e d b y me n i n p u b li c o f fi c e o r b y 

t h e C or ps o f E n gi n e e r s. T h e y m u st be o ri g i n a t e d b y l o c a l i n t e r e s t s . C iti z e n s 

w h o r e c o g niz e a n d a p p r e ci at e t h e n e e d f o r a p a rti c u l a r p r o j e c t a s k t h e i r 

U nit e d S t a t e s s e n at o r s a n d r e p r e s e n t a ti v e s t o r e q u e st a n o f f i c i a l st u d y. I f 

t h e s e n at o r s a n d c o n gre ss m e n r e p r e s e n ti n g t h e a r e a b eli e v e t h e p r o p o s e d i m pr o v em e nt t o ha ve m e rit, t h e y a s k t h e C o m mitte es o n P u bli c W or ks o f t h e S e n ate a n d 

t h e H o use o f R e p r e s e n ta ti v e s t o a u t h o ri z e t h e U. S. Ar m y C or p s o f E n gi n e e rs t o 

i n v e sti g a t e a n d r e p o rt i t s fi n d i n g s. I f t h e p r o j e c t h a s b e e n p r e v i o u sl y st u d i e d , 

t h e C o n m itte e ma y, b y R e s o l u ti o n, a s k t h e C or ps t o re vie w t h e e a r li e r r e p o rt s t o 

d ete r m i n e t h e ec o n o m ic f e a s i b ilit y o f b u il d i n g t h e p r o j e c t a t a s p e c i fi c ti m e.

A st u d y s o a u t h o riz e d i s r e f e r r e d b y t h e C hie f o f E n gi n e e rs t o t h e a p p r o p ri at e 

D i v is i o n E n gi n e e r w h o, i n t u r n , a s si g n s i t t o t h e D i s t ri c t E n gi n e e r w h ose j u r i s ­

d i c ti o n c o v e r s t h e a r e a i n w hic h t h e p r o p o s e d p r o j e c t i s l o c a t e d . F or p r o j e c t s i n 

t h e W ar ri or- T o m bi g b e e a r e a, t h i s w o ul d be t h e M o bil e D i s t ri c t o f t h e C or p s of 

E n g i n e e r s.

- 2 8 -
7 3 6

 t h e p r o j e c t h a s n ot b e e n I n v e sti g a t e d b e f o r e, t h e a u t h o ri z a ti o n f o r 

a p r eli m i n a r y e x a m i n ati o n a n d s u r v e y m ust be i n cl u d e d i n a R i v e rs a n d 

H ar b ors a u t h o ri z a ti o n a c t. T h es e a u t h o ri z a ti o n a c t s a r e p a s s e d b y C o n gr es s 

fr o m ti m e t o ti m e a n d i n cl u d e pr o p o s e d p r o j e c t s i n v a ri o u s s e c ti o n s o f t h e 

C o u ntr y. A fte r b ei n g a u t h o ri z e d, a s si g n m e nt o f t h e p r eli m i n a r y e x a m i n ati o n 

a n d s u r v e y i s ma de i n t h e sa me m a n ne r a s i n t h e c a s e of a re vie w o f a 

p r e vi o u s r e p o rt.

I n m a ki n g h i s p r eli m i n a r y e x a m i n ati o n, t h e U. S. Ar m y C or ps o f E n gi n e e rs 

D i s t ri c t E n gi n e e r h ol d s p u b li c h e a ri n g s a n d m a k es g e n e r al ec o n o m ic a n d 

e n g i n e e ri n g i n v e sti g a ti o n s t o d e ci d e i f a s u r v e y i s w a rr a nte d. I f t h e 

D i s t ri c t E n gi n e e r s u b m it s a f a v o r a ble r e p o rt b a se d o n h i s p r eli m i n a r y 

e x a m i n ati o n, a n d t h e a p p r o p ri a t e D i v is i o n E n gi n e e r a n d t h e B o ar d o f E n gi n e e rs 

f o r R i v e rs a n d H ar b ors i n W as hi n gt o n, D. C ., c o n c u r i n h i s fi n d i n g s, t h e 

C hie f of E n gi n e e rs w ill a u t h o ri z e a d e t a il e d s u r v e y. I n m a ki n g t h i s s u r v e y, 

t h e D i s t ri c t E n gi n e e r d e ci d e s o n t h e m ost f e a si b l e pla n f o r t h e i m pr o ve m e n t, 

e sti m at e s c o st a n d c o m pil e s t h e p u b li c b e n e fit s t o a c c r u e fr o m t h e p r o j e c t.

F or a f a v o r a ble s u r v e y r e p o rt t o be s u b m it te d, a n n u al b e n e fit s, i n te r m s o f 

d o ll a r s , m ust e x ce e d t h e a n n u al c h a r g e s i n d o ll a r s.

T he s u r v e y r e p o rt m ust t h e n be a p pr o v e d b y t h e D i v is i o n E n gi n e e r b e f o re 

g oi n g t o t h e B o ar d o f E n gi n e e rs f o r R i v e rs a n d H ar b o rs f o r fi n a l a p p r o v al.

I f t h e B oa r d a p p r o v e s i t , t h e r e p o rt i s s e nt t o t h e C hie f o f E n gi n e e rs w h o 

s u b m it s i t t o t h e g o v e r n o r o f t h e s t a t e c o n c e r n e d a n d t o i n t e r e s t e d f e d e r al 

a g e n cie s f o r t h e i r vie w s a n d c o m m e nts.

N e xt, t h e s u r v e y r e p o rt i s f o r w ar d e d b y t h e C hie f o f E n gi n e e rs t o t h e 

S e c r eta r y o f t h e Ar m y. A fte r h i s c o n c u rr e n c e t h a t t h e p r o j e c t is n e e d e d, 

i t be c o m es e li g i b l e f o r fi n a n ci n g a n d i n cl u si o n i n a n a p p r o p ri a ti o n s b i l l.

Ma n y m o nt h s, a n d o ft e n y e a r s, ela p s e be t w ee n t h e ti m e t h e p r o j e c t i s f i r s t

p r o p o s e d a n d c o n str u cti o n i s s t a r t e d .

F u n d s f o r w at er w a y i m pr o v e m e nt p r o j e c t s a r e a p p r o p ri at e d b y C o n gre ss o n a 

y e a r -t o - y e a r b a si s. Ea c h y e a r, t h e C or ps o f E n gi n e e rs m ust a p p e a r b e f o re 

t h e H o use a n d S e n ate A p p r o p ri ati o n s C o m mitt ee s a n d j u s ti f y e v e r y d o ll a r r e ­

q u e ste d f o r e x p e n dit u r e o v er t h e n e xt 1 2 m o nt h s. I n s o me i n sta n c e s l o c al 

fi n a n c i a l p a rti c i p a ti o n i s c a ll e d f o r. I n t h i s wa y,. p r o j e c t s a r e u n d er 

C o n g re s si o n al s c r u ti n y u n til c o m ple ti o n. M o ne y t h u s s p e nt is n ot e xtr a v a g a n c e. 

I t i s m o ne y s p e nt p r o p e rl y a n d w i s el y . I t i s n ot a gi v e -a w a y. It i s tr u e 

ec o n o m y - - ec o n o m y t h a t c r e a t e s ne w w e alt h. I t i s a n i n v e st m e nt i n n a ti o n a l 

gr o wt h a n d n a ti o n a l s e c u rit y . I t i s a n i n v e st m e nt i n t h e b u il d i n g o f a n 

e v e n str o n g e r a n d m o re p r o d u cti v e n ati o n.

- 2 9 -
7 3 7

* * * * * * * *

N o ne o f t h e c o m ple te d p r o j e c t s d e s c ri b e d i n t h e f o r e g oi n g p a g e s " j u s t 

h a p p e n e d ". T h e y h a p p e n e d b e c a u s e W arri o r- T o m bi g b e e D e v el o p m e nt A s s o ci ati o n 

s e r v e d t o re m i n d, c o n ti n u o u sl y, t h a t t h e p r o j e c t s n ot o nl y w er e d e s i r a b l e , 

b ut a l s o n e c e s s a r y. N o ne o f t h e p r o j e c t s y et t o be b u ilt w ill " j u s t h a p p e n ". 

T h e y w ill c o me a b o ut o nl y t h r o u g h s u st a i n e d t e lli n g o f t h e n ee d a n d t h e 

b e n e fit s t o be d e ri v e d fr o m t h e c o m ple te d e v el o p m e nt o f t h e W arri o r- T o m bi g b ee 

R i v e r S y st e m. W ar ri or- T o m bi g b ee D e v el o p m e n t A s s o ci ati o n i s d e v ote d t o t h e 

a c hie v e m e nt o f t h i s g o al. I t s m e m b er s h i p r e f l e c t s a b r o a d s p e ctr u m o f 

p u b li c i n t e r e s t. I n cl u d e d a r e p r o f e s si o n a l m e n, m e r c h a nts , f a r m e r s, s m all 

a n d la r g e i n d u s t r i e s, u t i l i t i e s , b a n k s a n d o t h e r s. I t m e rit s y o u r s u p p o rt 

a l s o . F or d e t a il s i n q u ir e o f W arr i o r- T o m bi g b e e D e v el o p m e nt A s s o ci ati o n,

1 9 1 4 S i xt h A ve n u e, N o rt h, Bir mi n g h a m , Ala ba m a, 3 5 2 0 3.

* * * * * * * * * *

- 3 0 -
I C T H A S J W F K W H T M C T MI C O M A Af TT Ce WI L L < ) A v T H O Air t r m f 9 * » l V or V M Ci Hfft A S T O T W A T ft C L O K B T O T MI S O U T H A TL A NTI C S mS Ma C H Ol Mlf W M A< e A S O O V B Y 1 WI LL A LJ- C M T MC »(* O A T r » M O OI Lf P WT BI CT / K # ? w e wi u r t e r A r e A M I B A< N< C W< M A . A CT O M O Mt C 1 S U M V S Y t S C O M O A C S S M A N P U B LI C W O O K S C O M M I T T | l - - r r v O L* « o o < s a w w r T T t e- c wir or m c t w s o n mi o N C N Oi Mc e w oi sr Rl CT C H AI N n w W H A T A B C T O W* VII W S T l o c a l M wit c sr b m t m c t i w a j w c h H i m c u a b a m t A ll r u a w « H r o rr < u. I C T B Tt F OB I M Il A W C M A H o u s e t » V T* < H A W B Op « u I N CI U DI N G L O C A L P R OJ E C T m s st o B Y M O U Sf o r L O C AL P B O J C C T I M C L U OI O « M O C A A « T » C H T O F 1 M| A R M Y O YI L W 0 4 K S A P P R O P RI A TI O N BI L L P A S S C O B Y M O U S C SI N A T I, < B Y Qf Vl Sl O w < M 6l M C < W f l a w s , s r c o n c A n o w s e e w f e wri wi M B C S TI M A TI o r C O S T P W C P A P Y O I M T K o r n c c o rr M c c m s t mi c t e m c i m k m i n vi t a ti o n s r o e a b c m a m p u b li c • W*I U D T O AL L P W O S PI CTI V* Bi O O C M S Y O U A B C T MI C O MT B A CT Q W Ql ST At CT I WI W BI W A RI V E R A N D H A R B O R P R O J E C T H O W A P R O J E C T I S C O N C EI V E D, S T U DI E D, A U T H O RI Z E D A N D C O N S T R U C T E D
7 3 9
7 4 0

M u c h of t h e c o m m e rc e u p a n d d o w n t h e W ar -

ri o r- T o m bi g b e e Ri v er S y st e m cle a r s t h r o u g h

Al a b a m a St at e D oc k s, M o b il e, pic t u re d h e r e,

a m o n g t h e te n l a r g e st i n t h e n a ti o n.
7 4 1

S T A T E M E N T O F:

A. T. W E A V E R 

M A N A G E R O F D I S T R I B U T I O N

FI R S T M I S S I N C 

P . 0 . B O X 3 2 8 

F O R T M A DI S O N, I A .

R E: L O C K & D A M 2 6 ( A L T O N, I L L . ) 

W A T E R W A Y U S E R C H A R G E S

T O:

U . S . S E N A T E 

P U B LI C W O R K S C O M MI T T E E 

S U B- C O M M I T T E E O N W A T E R R E S O U R C E S 

" O V E R SI G H T" H E A R I N G S O N I N L A N D N A VI G A TI O N S Y S T E M

S E N A T O R MI K E G R A V E L, C H AI R M A N
7 4 2

 I N T R O D U C T I O N

M y n a m e i s A . T . W e a v e r . I a m M a n a g e r o f D i s t r i b u t i o n , 

F i r s t M i s s I n c , P . 0 . B o x 3 2 8 , F t. M a d i s o n , I o w a 5 2 6 2 7 . M y 

e m p l o y e r i s a w h o l l y o w n e d s u b s i d i a r y o f F i r s t M i s s i s s i p p i 

C o r p o r a t i o n , P . 0 . B o x 1 2 4 9 , J a c k s o n , M i s s i s s i p p i , 3 9 2 0 5 . 

F i r s t M i s s i s a m a n u f a c t u r e r a n d m a r k e t e r o f a n h y d r o u s a m m o n i a 

a n d d i a m m o n i u m p h o s p h a t e b o t h o f w h i c h a r e f e r t i l i z e r m a t e r i a l s 

u t i l i z e d i n t h e a g r i c u l t u r a l s e c t o r o f t h e e c o n o m y . T h i s 

w r i t t e n s t a t e m e n t i s b e i n g s u b m i t t e d t o t h i s S u b - C o m m i t t e e f o r 

c o n s i d e r a t i o n o f t h e i s s u e s a n d / o r p e n d i n g l e g i s l a t i o n a f f e c t i n g 

L o c k a n d D a m 2 6 ( A l t o n , I l l . ) a n d w a t e r w a y u s e r c h a r g e s .

T h e p r o d u c t i o n f a c i l i t i e s o f F i r s t M i s s a r e l o c a t e d a t F t .

M a d i s o n , I o w a a n d t h e m a r k e t i n g o f o u r p r o d u c t s i s h a n d l e d 

t h r o u g h c o m p a n y o w n e d r e t a i l f a r m c e n t e r s , i n d e p e n d e n t d e a l e r s 

a n d n a t i o n a l a c c o u n t s . T h e p r e d o m i n a n c e o f o u r p r o d u c t i o n 

m o v e s t o t h e a f o r e m e n t i o n e d o u t l e t s i n I l l i n o i s , I o w a , a n d 

M i s s o u r i w i t h a d d i t i o n a l t o n n a g e m o v i n g t o a t w e l v e s t a t e 

M i d w e s t e r n a r e a . O u r c o m p a n y , a n d t h e i n d u s t r y w i t h w h i c h w e 

a r e a s s o c i a t e d , s u p p l i e s e s s e n t i a l p l a n t n u t r i e n t m a t e r i a l s t o

t h e n a t i o n ’ s f a r m e r s . T h e s e m a t e r i a l s s e r v e t o e n h a n c e t h e 

f a r m e r ’ s c r o p y i e l d s a n d r e s u l t i n g f o o d s u p p l y w h i c h i s o f 

p r i m e i m p o r t a n c e n o t o n l y t o t h e p o p u l a t i o n o f t h e U n i t e d S t a t e s

b u t a l s o t o t h e r e m a i n d e r o f t h e w o r l d .
7 4 3

I I. L O C K & D A M 2 6 ( A L T O N , I L L . ) ’

T h e m a j o r i t y o f t h e M i s s i s s i p p i R i v e r t r a f f i c w i t h w h i c h 

w e a r e c o n c e r n e d i n v o l v e s p h o s p h a t e r o c k s h i p m e n t s w h i c h o r i g i n a t e 

f o r t h e m o s t p a r t , i n F l o r i d a a n d m o v e u p t h e M i s s i s s i p p i i n 

s t a n d a r d ( 1 9 5 * x 3 5 ' ) r i v e r b a r g e s t o F t . M a d i s o n . P h o s p h a t e 

r o c k i s a p r i m e r a w m a t e r i a l i n t h e p r o d u c t i o n o f d i a m m o n i u m

p h o s p h a t e m e n t i o n e d a b o v e . A l l t h i s t r a f f i c m u s t , o f c o u r s e , 

p a s s t h r o u g h L o c k 2 6 .

A t t h e o u t s e t , w e c o n s i d e r i t e s s e n t i a l t h a t L o c k a n d D a m 

2 6 b e r e c o n s t r u c t e d a n d / o r r e p l a c e d i n o r d e r t h a t t h e a l r e a d y 

s u b s t a n t i a l v o l u m e s o f r i v e r t r a f f i c c a n m o v e t o p o i n t s o n t h e 

U p p e r M i s s i s s i p p i . F a i l u r e o r c o l l a p s e o f t h e p r e s e n t s t r u c t u r e 

w o u l d t o t a l l y e l i m i n a t e a l l t r a f f i c i n t h i s a r e a a n d t h u s i m p e r i a l 

b o t h t h e M i d w e s t e r n a g r i c u l t u r a l a n d i n d u s t r i a l e c o n o m y w h i c h 

i s s o h e a v i l y d e p e n d e n t o n w a t e r t r a n s p o r t a t i o n .

T h e r e w o u l d a p p e a r t o b e l i t t l e d o u b t t h a t p r o p o s e d w o r k o n 

L o c k 2 6 h a s b e e n a p p r o v e d o r a u t h o r i z e d b y C o n g r e s s i n a s m u c h a s 

t h e n e c e s s a r y a p p r o p r i a t i o n s f o r t h e w o r k h a v e b e e n m a d e . A n y 

p o s s i b l e c o n c e r n b y a n y p e r s o n , o r g a n i z a t i o n , e t c . c o u l d w e l l b e 

e l i m i n a t e d b y s p e c i f i c l e g i s l a t i v e a p p r o v a l f o r t h e e s t i m a t e d 

$ 4 0 0 m i l l i o n d o l l a r p r o j e c t . W e f e e l t h e p r e s e n t i n j u n c t i o n 

g r a n t e d b y t h e c o u r t s a g a i n s t f u r t h e r w o r k b y t h e C o r p o f E n g i n e e r
7 4 4

3 -

o n t h i s p r o j e c t m u s t b e c o n s i d e r e d a s n o t h i n g o t h e r t h a n a n a t t e m p t 

b y t h e 2 1 M i d w e s t e r n r a i l r o a d s a n d e n v i r o n m e n t a l g r o u p s i n v o l v e d 

a s a m e a n s o f t e m p o r a r i l y , a n d p e r h a p s p e r m a n e n t l y , d i s r u p t i n g t h e 

e c o n o m i c g r o w t h i n t h e u p p e r r e g i o n s o f t h e c o u n t r y .

D e l a y s a t L o c k 2 6 a r e b e c o m i n g m o r e f r e q u e n t a n d c o s t l y 

w i t h t h e p a s s a g e o f t i m e . T h e b a r g e l i n e c u r r e n t l y h a n d l i n g 

o u r p h o s p h a t e r o c k e x p e r i e n c e d a n a v e r a g e o f s e v e n h o u r s d e l a y 

( l o s t t i m e ) p e r l o c k a g e , e a c h w a y , a t L o c k 2 6 i n 1 9 7 4 . T h i s 

r e s u l t e d i n e s t i m a t e d t o t a l c o s t s o f $ 3 1 0 , 0 0 0 . W h e n c o n s i d e r a t i o n 

i s g i v e n t o a l l b a r g e l i n e s o p e r a t i n g t h r o u g h L o c k 2 6 , a d d e d 

c o s t s d u e t o d e l a y s c o u l d b e e x o r b i t a n t .

I t w o u l d b e a f u t i l e e f f o r t o n t h e p a r t o f t h e r a i l r o a d s 

t o a t t e m p t t o h a n d l e p o t e n t i a l r i v e r t r a f f i c f o r f e i t e d b y t h e 

b a r g e l i n e s r e s u l t i n g f r o m t h e u l t i m a t e f a i l u r e o f L o c k 2 6.

E v e n i f t h e r a i l r o a d s d i d h a v e a l t e r n a t e c a p a b i l i t i e s , c o n v e r s i o n 

f o r r a w m a t e r i a l d e l i v e r i e s a t o u r p l a n t w o u l d c o s t i n e x c e s s o f 

o n e m i l l i o n d o l l a r s . T h e c o n s u m e r w o u l d u l t i m a t e l y p a y t h i s c o s t 

a n d a l l o t h e r a d d e d c o s t s o f a l l i n d u s t r i e s a f f e c t e d .

T h e r e h a s b e e n c o n c e r n , p r i m a r i l y a m o n g t h e a f o r e m e n t i o n e d 

r a i l r o a d s a n d e n v i r o n m e n t a l g r o u p s , t h a t d e e p e n i n g t h e r i v e r c h a n n e l 

f r o m t h e p r e s e n t n i n e f o o t d e p t h t o t w e l v e f o o t w i l l b e t h e f i r s t 

s t e p i n a l o n g r a n g e p r o g r a m o f t r a n s f o r m i n g t h e e n t i r e M i s s i s s i p p i
7 4 5

- 4 -

R i v e r i n t o a t w e l v e f o o t w a t e r w a y . T h i s l o g i c a n d t h i n k i n g i s 

t o t a l l y d i s t o r t e d . I t i s o u r o p i n i o n a n d f i r m b e l i e f t h a t a 

t w e l v e f o o t c h a n n e l i n a n d a r o u n d L o c k 2 6 i s p r o p o s e d a n d / o r 

n e c e s s a r y f o r p u r p o s e s o f s a f e t y a n d n o t f o r g r e a t e r n a v i g a t i o n a l 

f l e x i b i l i t y . E s s e n t i a l l y , a s w e u n d e r s t a n d t h e i s s u e , a t w e l v e 

f o o t c h a n n e l w i l l p e r m i t i c e t o p a s s t h r o u g h t h e L o c k m o r e 

e a s i l y d u r i n g t h e c o l d w i n t e r m o n t h s . T h i s w i l l p r e v e n t p o s s i b l e 

d a m a g e t o b o t h b a r g e s a n d t o w i n g v e s s e l s .

P e r h a p s t h e m a j o r r e a s o n f o r r e f u t i n g t h e t w e l v e f o o t c h a n n e l 

a r g u m e n t i s t h a t a l l b a r g e s a n d b a r g i n g e q u i p m e n t t o d a y a r e 

d e s i g n e d f o r o p e r a t i o n i n a n i n e f o o t c h a n n e l . C o n v e r s i o n o f 

t h e b a r g i n g i n d u s t r y t o o p e r a t e o n a t w e l v e f o o t c h a n n e l w o u l d 

n e c e s s i t a t e a m a s s i v e i n v e s t m e n t b y t h e i n d u s t r y . T h i s i n v e s t ­

m e n t w o u l d b e i n s u r m o u n t a b l e i f n o t i m p o s s i b l e t o a c h i e v e . W e 

d o n o t b e l i e v e t h e b a r g e i n d u s t r y i s c a p a b l e o f a n d / o r w i l l i n g 

( o r e v e n i n t e r e s t e d ) t o c o m m i t s u c h a n i n v e s t m e n t .

I I I . U S E R C H A R G E S

L e g i s l a t i v e p r o p o s a l s h a v e b e e n b r o u g h t f o r t h , a s a l l o f 

y o u a r e a w a r e , o n m a n y o c c a s i o n s d u r i n g p a s t y e a r s . T h e W a t e r w a y 

U s e r T a x A c t o f 1 9 7 4 , w h i c h w e f e e l w a s c o r r e c t l y i g n o r e d b y

t h e 9 3 r d C o n g r e s s , p r o p o s e d a t a x o n t w e n t y s e p a r a t e s e g m e n t s 

o f t h e i n l a n d w a t e r w a y s s y s t e m . T h i s w a s p r e s u m a b l y p r o p o s e d i n
7 4 6

- 5 -

a n e f f o r t t o o b t a i n r e v e n u e i n t h e a m o u n t o f $ 1 0 0 m i l l i o n d o l l a r s 

p e r y e a r t o c o v e r a n t i c i p a t e d o p e r a t i o n a l a n d m a i n t e n a n c e e x p e n s e s .

B a s e d o n t h e f o r m u l a f o r c o m p u t a t i o n o f t h e p r o p o s e d u s e r c h a r g e s ,

a c l o s u r e o f c e r t a i n s e g m e n t s w o u l d h a v e b e e n c e r t a i n .

A t t h e p r e s e n t t i m e w e k n o w o f n o l e g i s l a t i v e p r o p o s a l u n d e r

c o n s i d e r a t i o n b y C o n g r e s s a l t h o u g h a l t e r n a t i v e s t o t h e s e g m e n t e d

t o l l a p p r o a c h h a v e b e e n d i s c u s s e d i n v a r i o u s i n d u s t r y p e r i o d i c a l s 

a s h a v i n g t h e s u p p o r t o f t h e F o r d A d m i n i s t r a t i o n . O n e s u c h 

a l t e r n a t i v e , t h e f o u r c e n t p e r g a l l o n f u e l t a x , w o u l d c o s t m y 

e m p l o y e r a n a d d i t i o n a l $ 1 0 0 , 0 0 0 p e r y e a r i n d i r e c t a d d e d

e x p e n d i t u r e s .

A s a n i n d u s t r y r e l y i n g o n l o w c o s t w a t e r t r a n s p o r t a t i o n , 

w e a r e t o t a l l y o p p o s e d t o a n y f o r m o f w a t e r w a y u s e r c h a r g e .

H i s t o r i c a l l y w a t e r w a y i m p r o v e m e n t s f o r t h e b e n e f i t o f t h e g e n e r a l

p u b l i c h a v e b e e n m a d e s i n c e 1 8 2 4 . T h i s h a s r e s u l t e d i n n u m e r o u s

s o c i a l g a i n s s u c h a s n a t i o n a l d e f e n s e , f l o o d c o n t r o l , e t c . , a s

w e l l a s i n d i r e c t e c o n o m i c b e n e f i t s t o i n d u s t r i e s , m u n i c i p a l i t i e s 

a n d r e g i o n s w h i c h w e r e l u r e d i n t o a n d / o r d e v e l o p e d b e c a u s e o f 

w a t e r t r a n s p o r t a t i o n . P u b l i c p r o v i s i o n o f e f f i c i e n t n a v i g a b l e 

w a t e r w a y s h a s h i s t o r i c a l l y l e d t o t h e d e v e l o p m e n t o f o r i n c r e a s e

i n c o m m e r c i a l a c t i v i t y . W i t h r e s p e c t t o t h e m o v e m e n t o f b u l k

c o m m o d i t i e s , w h i c h a r e e x e m p t f r o m e c o n o m i c r e g u l a t i o n , l o w c o s t 

w a t e r t r a n s p o r t a t i o n h a s m a d e m o n o p o l y o n t h e w a t e r w a y s b y a
7 4 7

- 6 -

s p e c i f i c b a r g i n g c o m p a n y t o t a l l y i m p o s s i b l e . T h u s p u b l i c l y f i n a n c e d 

w a t e r w a y s h a v e f o s t e r e d i n t e n s e c o m p e t i t i o n i n t h e b a r g e i n d u s t r y .

I m p o s i t i o n o f u s e r c h a r g e s o f a n y n a t u r e w o u l d h a v e t h e

f u r t h e r e f f e c t o f r e q u i r i n g c e r t a i n s e g m e n t s o f t h e p u b l i c t o b e 

d o u b l e c h a r g e d f o r w a t e r w a y i m p r o v e m e n t s ( o n e t i m e a s a t a x p a y e r

a n d t h e n a g a i n a s a f i n a l c o n s u m e r ) .

W i t h t h e c u r r e n t e n e r g y c r i s i s o f v a r y i n g d e g r e e s o f 

s e v e r i t y , u s e r c h a r g e s w o u l d t e n d t o d r i v e w a t e r t r a n s p o r t a t i o n 

c o s t s t o h i g h e r l e v e l s a n d w o u l d u l t i m a t e l y h i n d e r a n d / o r r e s t r i c t

t h e u s e o f w a t e r c a r r i e r s w h i c h a r e t h e m o s t e f f i c i e n t m o d e

r e l a t i v e t o f u e l c o n s u m p t i o n . A l o n g w i t h t h e q u e s t i o n o f f u e l 

e f f i c i e n c y i s t h e i n f l a t i o n a r y i m p a c t w h i c h u s e r c h a r g e s w o u l d 

c e r t a i n l y b r i n g f o r t h . H i g h e r w a t e r f r e i g h t c o s t s w o u l d r e s u l t

a n d w o u l d l e a d t o o r p e r m i t h i g h e r r a t e s b y c o m p e t i t i v e m o d e s

s u c h a s t h e r a i l r o a d s o n f u t u r e m o v e m e n t s .

I n t h e f i n a l a n a l y s i s p e r h a p s t h e m o s t d e f i n i t i v e a r g u m e n t 

a g a i n s t u s e r c h a r g e s i s t h e f a c t t h a t r a w m a t e r i a l s u p p l i e s a n d 

t h e m o v e m e n t o f o u t b o u n d f i n i s h e d g o o d s t o a n d f r o m U p p e r 

M i s s i s s i p p i p o i n t s w o u l d b e d i s r u p t e d a n d w i t h r e s p e c t t o 

a g r i c u l t u r a l s u p p l i e s , s u c h a s f e r t i l i z e r , w o u l d i n c r e a s e t h e c o s t

t o t h e f a r m e r a c c o r d i n g l y . I n d u s t r i e s s u c h a s o u r s e l v e s a s w e l l 

a s c o u n t l e s s o t h e r s i n t h e p a s t h a v e c o n s t r u c t e d p l a n t s a t s i t e s

54-239 o - 75 - 48
7 4 8

o n t h e m aj or i n la n d w at er w a y s u n d er t h e s y st e m o f t o l l fr e e 

n a v i g ati o n. E s s e n ti a ll y a n y f u t u r e i m p o sit i o n o f u s e r c h a r g e s o n 

t h e i n la n d w ate r w a y s w o ul d be s y n o n y m o u s w it h b re a ki n g f a it h w it h

i n d u s tri e s s o l o c at e d.

We a r e h o p e f ul t h e S u b- C o m mitt ee o n W at er R es o urc e s w ill 

gi v e d u e c o n si d e r ati o n t o o u r vie w s a n d w ill ( 1) a c t fa v o r a bl y 

o n l e g i s l a ti v e o r o t h e r me a ns t o b ri n g f o rt h n e c e s s a r y c o n str u c ­

ti o n w o r k i n o r d e r t o tr a n sf o r m L o c k & Da m 2 6 i n t o a n a d e q u ate 

c o n dit i o n t o m eet b ot h p r e s e n t a n d f u t u r e t r a f f i c de m a n ds a n d 

( 2) w ill rec o m m e n d n o i m p o sit i o n o f a n y t y p e o f u s e r c h a r g e o n 

o u r i n la n d w ate r w a y s.

R e s p e ctf ull y s u b m itte d

FI R S T MI S S I N C

ftr T. Wea ver

M a n a g er o f D i stri b u ti o n

A T W:js
7 4 9

e w r l e a n s , 

Se nat or M i k e Gr a v e l

C h air m a n, S u bc o m mitt ee o n W ater Res o urces,

Se n ate P u blic W orts C o m mittee, W as hi n gt o n, D. C.

e a r Si r : T he L o uisia na S hi p b uil di n g a n d Re p air A ss ociati o n re pre se nti n g 3 1 

me m bers of t he i n d u str y of t he State wit h a p pr o xi mat el y 2 0, 0 0 0 e m pl o yees has 

a d o pte d a n d res pectf ull y desires t o ma ke k n o w n t o y o u a n d t he c o m mittee t he 

f oll o wi n g p o siti o n. “ We n ote wit h c o ncer n t he eff orts of i ntere st h ostile t o water 

tra ns p ort ati o n t o sec ure t he i m p ositi o n of t olls or user c har ge s o n o ur i nla n d w aterwa ys. We reject pr o p osals of G o v er n m e nt a ge ncies w hic h w o ul d a br o gate t he 

Fe deral G o v er n m e nt’s hist orical res p o nsi bilities i n p u blic w or ks. We c o n de m n 

all s uc h eff orts as bei n g i ni mical t o t he ec o n o mic well- bei n g of t h e Nati o n, a n d we 

ple d ge o ur c o nti n ue d o p p ositi o n.”

o h n D. M u b bi n

Presi de nt.

[ W he re u p o n t he s u b c o m mittee recesse d t o rec o n v e ne T h urs da y, 

J u ne 1 9, 1 9 7 5.]

C O R P S O F E N GI N E E R S O V E R SI G H T H E A RI N G S — 1 9 7 5

T H U R S D A Y, J U N E 1 9, 1 9 7 5

U. S. S e n a t e

o m mi t t e e o n Pu b li c Wo r k s , 

u b c o m mi t t e e o n Wa t e r Re s o u r c e s

Was hi n gt o n, D. C.

T h e s u b c o m mittee m et at 10:10 a. m., p u rs u a nt t o recess, i n r o o m 

42 00, Dir kse n Se nat e Office B uil di n g, H o n. Mi k e Gra vel (c h air ma n) 

presi di n g.

Pre se nt : Se nat ors Gra vel, Staff or d, a n d D o m e nici.

O P E NI N G S T A T E M E N T O F H O N. MI K E G R A V E L, U. S. S E N A T O R F R O M 

T H E S T A T E O F A L A S K A

Se nat or G r a v e l . T h e hea ri n g s will c o me t o or de r.

T o da v we r es u m e hea ri n g s be g u n last m o nt h o n t he na vi gati o n pr o ­

gra m of t he Ar m y C or ps of E n gi neers.

T h e o pe ni n g hea ri n g of t hi s series w as hel d o n M a y 9. O n t h at date, 

t he s u bc o m mittee re cei v e d testi m o n y fr o m M aj. Ge n. J o h n W. M orris, 

Direct or of Ci vil W or ks.

Ge n eral M orris pr o vi d e d us wit h a det ail e d des cri pti o n of t he 

hist or y, pre se nt sc o pe, a n d pr ojecte d f ut u re of t he n a vi gati o n pr o gra m. 

He als o disc uss e d t he p r o ble m s t he c or ps h as e nc o u nte re d i n a reas s u c h 

as mai nt e na nce dre d gi n g, e q ui p me nt s h orta g es, a n d c o m plia n ce wit h 

e n vir o n m e nt al re q uir e m e nt s.

O n M a y 14, t he s u b c o m mitte e be ga n a 4 - d a y i n v esti gati o n t o u r of a 

lar ge p orti o n of o ur water wa y s yste m. We o verfle w pa rts of t he M o n o na hel a, O hi o, Missi ssi p pi, a n d At c ha fal a ya Ri v ers a n d t he G ulf 

ntr ac oa stal Water w a y.

We c o n d ucte d o nsite i ns p ecti o n s of l oc ks a n d da m s, i ncl u di n g t h os e 

i n o pe rati o n, t h ose bei n g c o n str u cte d, a n d t h os e i n nee d of re place me nt. 

We t o u re d t he Water wa ys E x peri m e nt Stati o n of t he C or ps of E n gi ­

neers i n Vic ks b ur g, Miss.

I n t he c o urse of t he i n v esti gati o n t o u r, we hel d a 1- d a y hea ri n g i n 

Vic k s b ur g. T h ere testi m o n y was recei v e d fr o m o ve r 20 wit ne sses 

re p res e nti n g a wi de s pe ctr u m of i nt ere sts. We hea r d fr o m St ate a n d 

l ocal officials, t he C or ps of E n gi nee rs, t he water wa y car rier i n d ustr y, 

railr oa d i nte rests, a n d e n vir o n m e nt ali sts. T h e Vic k s b ur g hea ri n g was a 

val ua ble a d diti o n t o t he s u b c o m mitte e’s gr o wi n g rec or d o n t he n a vi ga ­

ti o n pr o gra m.

T his series of heari n g s res u mes wit h sessi o ns t o da y a n d t o m orr o w, 

a n d will c o ncl u de o n We d ne s da y, Oct o ber 8. F o r t h os e desiri n g t o 

s u b m it testi m o n y, t he hea ri n g rec o r d will re m ai n o pe n u ntil J ul y 15. 

(751)
7 5

Wit ne sses t o d a y are re prese nti n g t he ec o n o mic are n a, t he dre d gi n g 

i n d ust r y, p ort i nt ere sts, a n d e n vir o n me ntalist s. We will be gi n wit h a n 

ec o n o mi c a nal ysis of t he met h o d use d i n c o m p utati o n of t he be n efit 

c ost rati o f or na vi g ati o n pr oje cts.

Bef ore calli n g f ort h o ur first wit ness, I w o ul d li ke t o welc o me m y 

c ollea g ue, t he r a n ki n g me m be r o n t his s u bc o m mittee, Se n at or D o me nici.

Se n at or, if y o u ha v e a n y c o m me nts at t his ti m e?

O P E N I N G S T A T E M E N T O F H O N. P E T E V. D O M E NI CI, U. S. S E N A T O R 

F R O M T H E S T A T E O F N E W M E XI C O

Se nat or D o m e ni ci . T h a n k y o u ver y m uc h, Mr. C hair m a n.

I first wa nt t o o nce a gai n i n di cate t o y o u t h at m y a bse nc e o n y o ur 

o versi g ht heari n gs t h at y o u ha ve alre a d y c o n d ucte d s h o ul d be n o 

i n dic ati o n t h at I a m n ot seri o usl y i nte reste d i n t he pr o bl e m. It was 

i m p ossi bl e f or me t o be wit h y o u. I d o i nte n d t o partici pate as m uc h 

as p ossi ble i n t he re mai ni n g heari n gs. I a m please d t o j oi n y o u i n 

o pe ni n g t his p u blic r o u n d of na vi gati o nal o versi g ht heari n gs t o d a y.

We are a ware of t h e fact t h at t hese heari n gs s h o ul d pr o vi de t he 

s u b c o m mittee wit h t he i nf or mati o n we nee d t o ass ure t he de vel o p ­

me nt of t he i nla n d wat er w a y pr o gra m a n d ma k e it effecti ve t o a ma xi ­

m u m e xt e nt.

I n t his st u d y, as y o u are a ware, we are c o nfr o nt e d wit h ma n y 

iss ues a n d q uesti o ns. We m u st c o nsi d er, f or e xa m pl e, will a nee d 

e xist f or Fe d eral c ost-s hari n g s yste m o n w hic h a ta x pa y er pa y s? Will 

t his s u bsi d y rest ore tra ns p ortati o n, a n d is it i n t he nati o nal i nt ere st? 

We m u st j u d g e w h et h er t he pre se nt met h o d of c o m p uti n g be nefit s, 

base d o n sa vi n gs t o s hi p p ers, is fair a n d realistic, or is t here s o me 

bette r wa y of mea s uri n g t hat.

Little eff ort has bee n ma de t o fit water wa y a n d wat er w a y p olic y 

i nt o a l o n g-ra n ge nati o n al tra ns p o rtati o n p olic y. O ur decisi o n s o n 

ne w wat er w a y pr ojects are ma d e i n a vac u u m i n d e pe n de nt of t he 

relati o n s hi p t o m o d es of tra ns p ort ati o n. If t his is s o, h o w ca n t hese 

decisi o ns be ma de o n a br o a der basi s? We are all a ware t he c or ps has 

s pe nt $10 7 milli o n u n d er t he 1909 Act t o re pla ce a n d rest ore na vi ga ­

ti o nal w or ks. We m ust e xa mi ne w h et h er or n ot t his re pl ace me nt 

a ut h o rit y is t o o br o a d a n d s h o ul d t he C o n gr ess re peal or m o dif y t he 

1909 Act.

Ar m y Se cretar y Calla w a y, i n a letter t o o ur c hair ma n of t he f ull 

c o m mittee o n Ja n u ar y 23, as ke d f or c o n gre ssi o nal reaffir m ati o n or 

clarificati o n of t his a ut h o rit y.

T he q uesti o n is: H o w s h o ul d we res p o n d ? I rec o g nize t h at t he c or ps 

has falle n be hi n d i n m u c h of its nec essa r y dre d gi n g w or k. We m u st 

st u d y t his pr o ble m als o a n d see k t o deter mi ne if dre d gi n g s h o ul d be 

ste p pe d u p or if g ui deli nes are t o o restricti v e.

Mr. C h air m a n, t hese are b ut s o me of t he ma n y Iss ues a n d a fe w 

of t he area s a n d i nt ere sts we s h o ul d a n d certai nl y will, u n d er y o u r 

lea de rs hi p, c o ver t o d a y a n d i n f ut ure heari n gs.

T he h eari n g s, i n a d diti o n t o t hese, will s u g ge st ma n y ot h er q uesti o n s 

a n d per ha p s ma n y ot h er a ns wers. S o I l o o k f or w ar d t o e x pl ori n g t hese 

areas wit h y o u i n t he e n s ui n g da ys.

Se n at or G r a v e l . Se nat or D o m e nici, I welc o me y o u r partici pati o n. 

Y o u are t he har de st w or ki n g me m ber we ha v e o n t he P u blic W or ks 

C o m mitt ee. I well k n o w t he diffic ult y of tr yi n g t o be t w o places at 

o nce.
7 5 3

Se n at o r D o m e ni ci . I a m g oi n g t o g o ne xt d o or a n d pr o vi de t he 

Ec o n o mic De vel o p m e nt S u b c o m mitt ee wit h a q u or u m. T h e n I will 

ret ur n.

Se n at or G r a v e l . Ver y g o o d.

Bef ore I call t he first wit ness, I w o ul d li ke t o ac k n o wle d ge a st at eme nt fr o m H o n. E d wi n E d w ar ds, G o v er n o r of L o ui sia na. His st at eme nt will be i ncl u de d at t his p oi nt i n t he rec or d.

[ T he state m e nt f oll o ws:]
7 5 4

jstf oie uf ^ m rts ut mt

E X E C U T I V E D E P A R T M E N T

d w i n E d w a r d s

o v e r n o r

T U a t c m ^ kn i j j r 

J u n e 1 2 , 1 9 7 5

H o n o r a b l e M i k e G r a v e l

S e n a t o r , S t a t e o f A l a s k a

C h a i r m a n , S u b c o m m i t t e e o n W a t e r R e s o u r c e s

S e n a t e P u b l i c W o r k s C o m m i t t e e

4 2 0 4 D i r k s e n B u i l d i n g

W a s h i n g t o n , D . C . 2 0 5 1 0

D e a r S e n a t o r G r a v e l :

A s G o v e r n o r o f t h e S t a t e o f L o u i s i a n a , I h a v e a n o u t s t a n d i n g 

o b l i g a t i o n t o s u b m i t a s t a t e m e n t f o r c o n s i d e r a t i o n o f y o u r W a t e r 

R e s o u r c e s S u b c o m m i t t e e i n s e s s i o n s s c h e d u l e d f o r J u n e 1 9 , 2 0, a n d 

2 3, 1 9 7 5 . I t i s m y u n d e r s t a n d i n g t h a t w a t e r w a y t o l l s a n d u s e r 

c h a r g e s w i l l l i k e l y b e p r o m i n e n t f e a t u r e s o f t h e S u b c o m m i t t e e ’ s 

c o n s i d e r a t i o n s i n t h e f o r t h c o m i n g s e s s i o n s . S i n c e w a t e r w a y s a n d 

t h e i r m u l t i p l e u s e s a r e t h e b a s i s o f t h e h i s t o r y , d e v e l o p m e n t , 

a n d e x i s t e n c e o f t h e S t a t e o f L o u i s i a n a , I w o u l d b e a v o i d i n g 

r e s p o n s i b i l i t i e s p l a c e d u p o n m e b y t h e c i t i z e n s o f L o u i s i a n a i n 

e l e c t i n g m y G o v e r n o r i f I d i d n o t e x p r e s s t o y o u g e n t l e m e n a n d t h e 

C o n g r e s s t h e t r e m e n d o u s v a l u e o f t h e p r e s e n t w a t e r w a y s y s t e m w h i c h 

s e r v e s t h e N a t i o n s o w e l l .

R e f e r e n c e m u s t b e m a d e t o t h e f i n a l r e p o r t o f t h e N a t i o n a l 

W a t e r C o m m i s s i o n i s s u e d J u n e 1 4 , 1 9 7 3 . I n c l u d e d i n t h e 2 3 2 s p e c i f i c 

r e c o m m e n d a t i o n s w a s t h e e s t a b l i s h m e n t o f a w a t e r w a y t o l l a n d u s e r 

c h a r g e t o p r o v i d e a s o u r c e o f r e v e n u e f o r c o n s t r u c t i o n , o p e r a t i o n , 

a n d m a i n t e n a n c e o f t h i s N a t i o n ' s n e t w o r k o f c o m m e r c i a l n a v i g a t i o n 

c h a n n e l s . T h e p r i n c i p l e a d v o c a t e d i n t h i s r e c o m m e n d a t i o n i s t h a t 

i d e n t i f i a b l e b e n e f i c i a r i e s o f t h e n a v i g a t i o n p r o j e c t s w o u l d b e 

r e q u i r e d t o p a y f u l l c o s t s o f t h e f a c i l i t y . S u c h a p r o p o s a l , i f 

i m p l e m e n t e d , w o u l d h a l t t h e p r o g r e s s i v e a n d d y n a m i c d e v e l o p m e n t 

e n j o y e d b y t h e S t a t e o f . L o u i s i a n a p a r t i c u l a r l y o v e r t h e p a s t 2 5 y e a r s 

a n d w o u l d h a v e a g r o w i n g e f f e c t o f r e d u c i n g t h e l e v e l o f a c t i v i t i e s 

f o r i n d u s t r y , b u s i n e s s , a g r i c u l t u r e , a n d d e v e l o p m e n t o f n a t u r a l 

r e s o u r c e s . T h e s e e f f e c t s w o u l d b e d r a s t i c a l l y d e t r i m e n t a l a n d 

p e r m a n e n t u n d e r a s y s t e m o f w a t e r w a y t o l l s a n d u s e r c h a r g e s . 

U n e m p l o y m e n t w o u l d b e g e n e r a t e d i n s t a g g e r i n g a m o u n t s a n d w o u l d b e 

t h e r u l e r a t h e r t h a n t h e e x c e p t i o n .
7 5 5

H o n o r a b l e M i k e G r a v e l 

S e n a t o r , S t a t e o f A l a s k a

C h a i r m a n , S u b c o m m i t t e e o n W a t e r R e s o u r c e s 

S e n a t e P u b l i c W o r k s 

W a s h i n g t o n , D . C .

J u n e 1 2, 1 9 7 5 

P a g e T w o

I a m s t a r t l e d b y t h e f a c t t h a t t h e C o n g r e s s o f t h e U n i t e d 

S t a t e s i s c o n s i d e r i n g i m p l e m e n t a t i o n o f s u c h m e a s u r e s . I t a p p e a r s 

t h a t n u m e r o u s r e f e r e n c e s a n d s o u r c e s o f d a t a a l o n g w i t h v o l u m e s o f 

t e s t i m o n y p r e v i o u s l y s u b m i t t e d h a s b e e n c o m p l e t e l y i g n o r e d . M a n y 

p u b l i c a t i o n s a r e r e g u l a r l y p r o d u c e d b y G o v e r n m e n t a n d p r i v a t e 

s o u r c e s a c c o u n t i n g f o r m o s t c o m m e r c i a l n a v i g a t i o n a c t i v i t i e s a n d 

c o v e r i n g a l l d e v e l o p e d n a v i g a t i o n p r o j e c t s i n t h i s c o u n t r y . O n 

n u m e r o u s i n s t a n c e s , w r i t t e n t e s t i m o n y h a s b e e n s u b m i t t e d t o t h e 

N a t i o n a l W a t e r C o m m i s s i o n , W a t e r R e s o u r c e s C o u n c i l , a n d t h i s S u b ­

c o m m i t t e e g i v i n g d e t a i l e d a c c o u n t s o f t h e n e c e s s i t i e s , p r o b l e m s 

a n d b e n e f i t s o f a w a t e r w a y s y s t e m i n t h e U n i t e d S t a t e s w i t h o u t 

w a t e r w a y t o l l s a n d u s e r c h a r g e s . I n s p i t e o f t h e e x t e n s i v e i n f o r ­

m a t i o n p u b l i s h e d a n d s u b m i t t e d w h i c h d o c u m e n t s t h e s u c c e s s o f 

t r a d i t i o n a l w a t e r w a y s p o l i c y , t h e n a r r o w v i e w o f t h e N a t i o n a l W a t e r 

C o m m i s s i o n i s s t i l l b e i n g c o n s i d e r e d , c a l l i n g f o r s o - c a l l e d d i r e c t 

b e n e f i c i a r i e s t o b e t a x e d f o r t h e f u l l c o s t o f w a t e r w a y i m p r o v e m e n t s 

I t a p p e a r s t h a t s t r o n g p r e c o n c e p t i o n s h a v e e n d u r e d a n d h a v e n o t 

b e c o m e c o n f u s e d b y f a c t s . A n d , t o m y k n o w l e d g e , t h e W a t e r R e s o u r c e s 

C o u n c i l h a s n e v e r p u b l i s h e d i n - d e p t h i n f o r m a t i o n r e g a r d i n g t h e 

l i k e l y e f f e c t t h a t s u c h t o l l s a n d c h a r g e s w o u l d h a v e o n i n d u s t r i a l 

d e v e l o p m e n t i n A m e r i c a a n d a n y c o m p a n i o n r e s u l t s o f w i d e s p r e a d 

u n e m p l o y m e n t .

P r o p o n e n t s o f t h e p r o p o s e d w a t e r w a y t o l l s a n d u s e r c h a r g e s 

l a r g e l y h a v e a c c e p t e d t h e e r r o n e o u s v i e w t h a t w a t e r w a y s i n t h e 

U n i t e d S t a t e s a r e o n e - h u n d r e d p e r c e n t F e d e r a l l y f u n d e d . T h i s i s 

n o t t r u e a t a l l ! F e d e r a l a p p r o p r i a t i o n s f o r c o m p l e t i o n o f w a t e r ­

w a y p r o j e c t s f r e q u e n t l y a m o u n t t o f i f t y p e r c e n t o r l e s s o f t h e 

o v e r a l l c o s t s , o c c a s i o n a l l y a b o u t s e v e n t y - f i v e p e r c e n t , a n d v e r y 

s e l d o m n i n e t y p e r c e n t o r m o r e . I n s o m e f e w i n s t a n c e s , w a t e r w a y 

c o s t s a r e c o n s t r u c t e d b y o n e - h u n d r e d p e r c e n t F e d e r a l f u n d s , w h e r e 

n o r i g h t s - o f - w a y a c q u i s i t i o n s w e r e n e c e s s a r y , w h e r e n o u t i l i t i e s , 

h i g h w a y s o r r e l o c a t i o n n e e d s w e r e c o n f l i c t i n g , w h e r e n o s p o i l 

d i s p o s a l a r e a s a n d w o r k - w e r e n e c e s s a r y , a n d w h e r e n u m e r o u s l o c a l 

r e q u i r e m e n t s w e r e r e m o v e d . O t h e r a d d e d l o c a l i n t e r e s t c o s t s o f 

a n y w a t e r w a y a f t e r i t s i n i t i a l c o n s t r u c t i o n i n v o l v e p r o v i d i n g 

d o c k s , w h a r v e s , w a r e h o u s e s , t e r m i n a l f a c i l i t i e s , i n d u s t r i a l p a r k s , 

a c c e s s r o a d s , r a i l a n d t r u c k c o n n e c t i o n s , a n d s e r v i c e s f o r p o l i c e , 

f i r e , w a t e r a n d s a n i t a r y f a c i l i t i e s . T h e s e e l e m e n t s a r e p r o ­

v i d e d l a r g e l y a t t h e c o s t o f S t a t e , l o c a l , a n d p r i v a t e e f f o r t s 

a n d p r o b a b l y c o u l d h a v e s o m e m i n o r a m o u n t o f F e d e r a l d o l l a r s 

i n v o l v e d i n t h e p r o c e s s .
7 5 6

H o n o r a b l e M i k e G r a v e l

S e n a t o r , S t a t e o f A l a s k a

C h a i r m a n , S u b c o m m i t t e e o n W a t e r R e s o u r c e s

S e n a t e P u b l i c W o r k s

W a s h i n g t o n , D . C .

J u n e 1 2, 1 9 7 5

P a g e T h r e e

U s e r c h a r g e s a r e g e n e r a l l y u n d e r s t o o d t o c a l l f o r a r e c o v e r y 

o f t h e c o s t o f a G o v e r n m e n t s e r v i c e f r o m t h o s e w h o b e n e f i t b y 

u s i n g i t . T h e u s e r c h a r g e c o n c e p t i m p l i e s t h a t t h e u s e r i s t h e 

o n e w h o r e a p s t h e b e n e f i t , w h i c h m e a n s t h a t t h e d i r e c t u s e r a n d 

b e n e f i c i a r y a r e t h e s a m e p e r s o n . S u c h a c o n c e p t i s n o t t r u e o r 

e v e n r e m o t e l y a s s o c i a t e d w i t h b e n e f i t s d e r i v e d f r o m w a t e r w a y 

u s e s . I n t h e c a s e o f s e r v i c e s a n d p r o d u c t s p r o d u c e d i n a s s o c i a t i o n 

w i t h t h e u s e o f a w a t e r w a y , b e n e f i t s a r e d i s t r i b u t e d t o n o n - u s e r s 

o f w a t e r w a y s o n b r o a d , r e g i o n a l a n d n a t i o n a l s c a l e s . T h e s e 

b e n e f i t s a r e d i f f u s e d t h r o u g h o u t t h e p o p u l a t i o n t o p a r t i c u l a r 

i n d i v i d u a l s w h e r e b e n e f i t s c a n n o t b e s p e c i f i c a l l y i d e n t i f i e d o r 

m e a s u r e d . T h e l o w e r c o s t o f w a t e r t r a n s p o r t a t i o n i s a m a j o r 

c o n t r i b u t o r t o a l l o w i n g l o w e r c o s t s o f p r o d u c t s a n d c o m m o d i t i e s 

p l a c e d o n t h e c o n s u m e r m a r k e t a n d s o l d n a t i o n a l l y . T h e p o w e r 

g e n e r a t i n g i n d u s t r y i s d e p e n d e n t u p o n w a t e r w a y s h i p m e n t o f f u e l s 

t o m a i n t a i n l o w e r r a t e s f o r p r i v a t e , p u b l i c , a n d i n d u s t r i a l u s e s . 

W a t e r w a y t r a n s p o r t a t i c n o f a g r i c u l t u r a l p r o d u c t s h a s a d e f i n i t e 

i m p a c t o n t h e f i n a l c o s t o f f a r m c r o p s o f f e r e d t o t h e A m e r i c a n p u b ­

l i c a n d f o r e i g n m a r k e t s . T r a n s p o r t a t i o n s a v i n g s a f f e c t s p r i c e s o f 

p r o d u c t s f i n a l l y d e l i v e r e d t o c u s t o m e r s .

T h e v e r y f o u n d a t i o n o f t h e e c o n o m y f o r t h e S t a t e o f L o u i s i a n a 

t o d a y i s d o m i n a t e d b y m a j o r i n d u s t r i e s a n d t h e i r d e v e l o p m e n t s 

w h i c h a r e l o c a t e d e x t e n s i v e l y t h r o u g h o u t t h e S t a t e a l o n g e s t a b l i s h e d , 

i m p r o v e d , a n d m a i n t a i n e d w a t e r w a y s . W e h a v e o v e r s i x b i l l i o n 

d o l l a r s i n v e s t e d b y m a j o r i n d u s t r y o n t h e M i s s i s s i p p i R i v e r a l o n e 

b e l o w B a t o n R o u g e . L o u i s i a n a i s f o r t u n a t e t o b e b l e s s e d w i t h m o r e 

t h a n 7 , 5 0 0 m i l e s o f n a v i g a b l e c h a n n e l s w h i c h c o n t r i b u t e d a i l y t o 

t h e e c o n o m i c i m p r o v e m e n t o f o u r S t a t e a n d t h e w e l f a r e o f t h i s N a t i o n . 

O u r S t a t e h a s a t h r i v i n g w a t e r w a y b u s i n e s s , c o n t a i n i n g t h e N a t i o n ' s 

s e c o n d , s i x t h , a n d t w e n t y - f o u r t h l a r g e s t p o r t s - - N e w O r l e a n s , B a t o n 

R o u g e , a n d L a k e C h a r l e s , r e s p e c t i v e l y . P o r t a c t i v i t i e s c o m p r i s e 

t h e S t a t e ' s s i n g l e l a r g e s t c o m m e r c i a l e n t e r p r i s e . W e m u s t d o 

e v e r y t h i n g p o s s i b l e a s a S t a t e a n d N a t i o n t o s u p p o r t t h e s e e n d e a v o r s 

r a t h e r t h a n s u r p r e s s . L o u i s i a n a c a n n o t a c c e p t t h e c o n c e p t o f 

w a t e r w a y t o l l s a n d u s e r c h a r g e s a s p r o p o s e d .

A n o t h e r m a t t e r o f e q u a l i m p o r t a n c e t o L o u i s i a n a i s t h e 

p r o p o s a l f o r c o s t s o f f l o o d c o n t r o l p r o j e c t s t o b e r e c o v e r e d f r o m 

d i r e c t b e n e f i c i a r i e s . A s i n g l e p o l i c y o f " b e n e f i c i a r y p a y a l l " 

c a n n o t l o g i c a l l y o r a r b i t r a r i l y b e u n i f o r m l y r e q u i r e d o f a l l S t a t e s
7 5 7

H o n o r a b l e M i k e G r a v e l 

S e n a t o r , S t a t e o f A l a s k a

C h a i r m a n , S u b c o m m i t t e e o n W a t e r R e s o u r c e s 

S e n a t e P u b l i c W o r k s 

W a s h i n g t o n , D . C .

J u n e 1 2 , 1 9 7 5 

P a g e F o u r

a n d m a j o r r i v e r b a s i n s . T h e S t a t e o f L o u i s i a n a i s a n o u t s t a n d i n g 

e x a m p l e o f a u n i q u e a r e a t h a t s h o u l d b e e x c e p t e d . O n e - t h i r d o f 

t h e s t a t e i s o c c u p i e d b y m a j o r r i v e r s a n d t h e i r a l l u v i a l f l o o d 

p l a i n s . I n t h i s s a m e o n e - t h i r d a r e a , s e v e n t y - e i g h t p e r c e n t o f 

o u r p o p u l a t i o n l i v e a n d w o r k , m o r e t h a n e i g h t y p e r c e n t o f t h e 

d i s p o s a b l e i n c o m e i s f o u n d , p r a c t i c a l l y a l l m a j o r i n d u s t r y i s 

l o c a t e d , a b o u t s i x t y p e r c e n t o f t h e s t a t e ' s a g r i c u l t u r a l p r o d u c t s 

a r e g r o w n , m o s t o f o u r i n t e r s t a t e , s t a t e a n d l o c a l h i g h w a y s 

a l o n g w i t h t r a n s c o n t i n e n t a l p i p e l i n e s a n d u t i l i t i e s t r a v e r s e 

t h e a r e a , a n d a v a s t m a j o r i t y o f v a l u a b l e n a t u r a l r e s o u r c e s a r e 

c o n t a i n e d . L o u i s i a n a i s o n t h e l o w e r e n d o f m a j o r r i v e r b a s i n s 

o r i g i n a t i n g i n o t h e r r e g i o n s o f t h e U n i t e d S t a t e s a n d e v e n i n 

C a n a d a d r a i n i n g f o r t y - o n e p e r c e n t o f t h e N a t i o n . M a j o r f l o o d 

c o n t r o l i n L o u i s i a n a h a s b e e n h i s t o r i c a l l y a n d c o r r e c t l y r e c o g n i z e d 

a s a n a t i o n a l r e s p o n s i b i l i t y .

E x t e n s i v e a c t i v i t i e s i n L o u i s i a n a o f n a t i o n a l i n t e r e s t 

i n c l u d e p e t r o l e u m m i n i n g a n d r e f i n i n g , a g r i c u l t u r e p r o d u c t s , f e r ­

t i l i z e r m a n u f a c t u r i n g , a l u m i n u m i n d u s t r y , i n t e r n a t i o n a l s h i p m e n t 

o f g o o d s , .a nd o t h e r s . T h e s e s e r v i c e s c a n n o t c o n t i n u e w i t h o u t 

m a j o r f l o o d c o n t r o l i m p r o v e m e n t s a n d m a i n t e n a n c e , t h e c o s t s o f 

w h i c h a r e p r o h i b i t i v e t o a l o c a l a n d / o r s t a t e g o v e r n m e n t . O n l y 

t h e F e d e r a l g o v e r n m e n t h a s t h e s y s t e m , f u n d i n g c a p a b i l i t y a n d 

s h e e r p o w e r t o c a r r y o u t s u c h a m i s s i o n i n m e e t i n g n a t i o n a l 

r e s p o n s i b i l i t i e s .

W e i n L o u i s i a n a a r e p l e a s e d t h a t c o n s i d e r a t i o n o f t h e s e p r o ­

p o s a l s i s b y t h e W a t e r R e s o u r c e s S u b c o m m i t t e e o f t h e S e n a t e P u b l i c 

W o r k s C o m m i t t e e , a s w e k n o w t h i s C o m m i t t e e t o h a v e a r e c o r d o f s o u n d 

a n d r e s p o n s i v e a c t i o n s . D e l e g a t e s f r o m t h e S t a t e o f L o u i s i a n a h a v e 

a p p e a r e d b e f o r e P u b l i c W o r k s C o m m i t t e e s m a n y t i m e s ; a n d w e f e e l 

f u l l c o n s i d e r a t i o n h a s b e e n g i v e n f o r a l l o f o u r r e q u e s t s a n d 

r e c o m m e n d a t i o n s . T h e r e f o r e , i n y o u r e f f o r t s t o d e t e r m i n e a n d 

i m p l e m e n t a p r a c t i c a l n a t i o n a l w a t e r p o l i c y , I u r g e y o u t o r e j e c t 

t h e p r o p o s a l s f o r w a t e r w a y t o l l s a n d u s e r c h a r g e s , a n d f o r d i r e c t 

b e n e f i c i a r i e s p a y a l l f o r f l o o d c o n t r o l p r o j e c t s .

I w i l l a p p r e c i a t e c o n s i d e r a t i o n o f m y c o m m e n t s a n d r e c o m m e n d a ­

t i o n s b y y o u r S u b c o m m i t t e e .

S i n c e r e l y y o u r s ,
7 5 8

Se n at o r Gr a v e l . O ur first wit nes s t his m or ni n g is Dr. Ma r vi n 

Barl o o n. D oct or, w o ul d y o u please c o me f or w ar d a n d ta k e y o u r 

p ositi o n bef ore t he micr o p h o ne a n d w o ul d y o u g o a he a d a n d pr oce e d 

as is m ost c o mf orta ble t o y o u?

S T A T E M E N T O F M A R V I N J. B A R L O O N, P R O F E S S O R, D E P A R T M E N T

O F E C O N O MI C S, C A S E W E S T E R N R E S E R V E U N I V E R SI T Y, C L E V E ­

L A N D, O HI O

Mr. B a r l o o n . T h a n k y o u, Mr. C h air m a n. M y na m e is Ma r vi n 

J. Barl o o n. I a m Ca rlt o n pr ofess or of ec o n o mics at Case We ster n 

Rese r ve U ni versit y i n Cle v ela n d, O hi o. I t ha n k y o u, Mr. C hair m a n, 

f or a d dre ssi n g me as d oct or, b ut I a m of t he ol d sc h o ol of c olle ge 

pr ofes s ors a n d o ne of t h ose w h o ne ve r g ot a d o ct o r’s de gree. S o I 

ca n be calle d pr ofe ss or or mister.

Se n at or G r a v e l . We will call y o u pr ofess or.

Mr. B a r l o o n . I file d wit h t he c o m mitt ee staff a pre par e d state me nt, 

i ncl u di n g s o me recital of m y cre d e ntials. Mr. C h air m a n, I nee d n ot 

ta k e t he ti me n o w, if t ha t is y o ur pleas ure, t o re p eat t h ose.

Se n at or G r a v e l . Pl ease.

Mr. B a r l o o n . I n m y pre p are d state m e nt I ma k e a n u m b er of 

ce ntral p oi nts a n d per ha p s I w o ul d use m y ti me best if I dre w y o ur 

att e nti o n t o w h at s o me of t hese ke y p oi nts are t o facilitate t he refe re nce t o t he pre par e d state m e nt.

T h e j ustific ati o n of na vi gati o n pr ojects at t he pre se nt ti me rest s 

pri n ci pall y o n t he be ne fit-c ost rati o, as y o u k n o w. T he be ne fit-c ost 

rati o is e ntirel y s o u n d i n p urel y ec o n o mic ter ms if o ne is i nte reste d 

o nl y i n t he c o n ce pt of nati o n al ec o n o mic efficie nc y, t h at is i n t he 

ma xi miz ati o n of t he real gr oss nati o nal pr o d uct.

H o we ver, it g oes n o f urt h er t ha n t h at, a n d t o a n u m b er of critical 

iss ues n o w occ u p yi n g a hi g h pri orit y o n t he nati o n al a ge n da, t he 

be ne fit-c ost rati o, certai nl y t he ec o n o mic efficie nc y s yst e m of a n alysis, is t ot all y bli n d.

T he ec o n o mic efficie nc y a p pr oac h ass u m es n o i nflati o n. It ass u me s 

n o s u b sta nti al a m o u nt of u ne m pl o y m e nt i n t he c o u ntr y. It is c o m ­

pletel y i n differ e nt t o w h et h er a d ollar of c o st or be ne fit is s p e nt a br oa d 

o n Per sia n G ulf oil or d o m estic all y o n We st Vir gi nia c oa h It is c o m ­

pletel y i n differ e nt as t o w het her or n ot a n e x p e n dit ur e g oes t o a hi g h 

mc o me Las Ve gas g a m bler or a l o w i n c o me Te n n esse e f ar m er.

I n ot h er w or ds, Mr. C hair m a n, t he ec o n o mic efficie nc y crit eri o n 

w hic h d o mi nates t he be nefit-c o st rati o rests strictl y u p o n t he val u es 

of t he ma r ket pla ce a n d w h at i n di vi d ual pe o pl e are willi n g t o pa y f or 

partic ula r ser vices a n d pr o d ucts. It is t h u s c o m plet el y bli n d t o basic 

iss ues of p u blic p olic y w hic h are ver y hi g h o n o ur nati o n al pri o ritie s 

at t h e p res e nt ti me.

Se n at or G r a v e l . Pr ofes s or, w o ul d it dist ur b y o u if I i nterr u pt as 

y o u g o al o n g?

Mr. B a r l o o n . I w o ul d be ver y gla d t o ha v e y o u d o s o.

Se nat or G r a v e l . W o ul d y o u defi ne f or me ec o n o mic efficie nc y? I 

t hi n k y o u are gi vi n g a real br oa d c o nc e pt.

Mr. B a r l o o n . Ec o n o mic efficie nc y is a n a nal ysi s w hic h e val uates 

t he a p plicati o n of li mite d res o ur ces a vaila ble t o a s ociet y t o t he vir ­

t uall y u nli mit e d nee d s a n d desires of t he p o p ulati o n a n d w hic h see ks
75

t o all oc ate t h os e res o urces i n a ma n n er t o ac hie ve t he ma xi m u m 

gratificati o n.

C o n s u m er gratifi cati o n is me as u re d b y a c o n ce pt calle d mar gi nal 

utilit y, w hic h me a ns t he satisfa cti o n a c o n s u m er get s o ut of t he last 

a d de d u nit of a pr o d u ct w hic h he p ur c ha ses, a n d t he li mite d s u p pl y of 

t he res o u rces is me as ure d b y mar gi nal c ost, w hic h is t he c ost of t he 

last a d d e d u nit of t he pr o d u ct pr o d uc e d fr o m t h at res o urce.

It is a n eff ort t o e q uate mar gi nal utilit y a n d mar gi nal c ost i n s uc h a 

wa y as t o get o pti m u m gratifi cati o n. F o r e xa m ple, if s ociet y has m ore 

mil k t h a n pe o ple reall y wa nt i n ter ms of t heir taste, t he s u bjecti v e 

gratific ati o n f or t hi s parti c ular be v era g e, b u t n ot q uite e n o u g h w his k y 

bala nci n g t he c ost of w his k y a g ai n st t he c ost of mil k, a n d if t he differ ­

e ntial c ost of w hi s k y is less t h a n t he c ost of mil k, rel ati ve t o t he 

plea s ure it gi ves, s ociet y, i n t he c o m petiti v e ma r k et, will tra nsfer 

res o urces fr o m t he pr o d ucti o n of mil k t o t he p r o d u cti o n of w his k y.

I nitiall y, t he t w o be ve ra ge s are pr o d uc e d fr o m basicall y si milar 

a gric ult ur al res o urces. T hat is t he c o n ce pt of ec o n o mic efficie nc y. If 

t he pe o ple wa nt w his k y i nstea d of m ore mil k, t h at is fi ne. If t hi s is b a d 

f or t heir he alt h, t h at is a m atte r t o w hic h ec o n o mic efficie nc y is c o m ­

pletel y i n differe nt.

Se nat or G r a v e l . Ho w br o a d a fiel d is it ? W h e n y o u tal k a b o ut 

ec o n o mic efficie nc y, y o u ha v e a fairl y nar r o w fiel d s pe ctr u m t h at y o u 

are deali n g wit h. If y o u are deali n g wit h a da m, a h y d r o pr oject, t he 

are a of ec o n o mic efficie nc y is fairl y s mall t o t h at i m me diate ec o n o mic 

area. S o y o u d o n’t get a tr u e pr o d uct c h oice, e xc e pt as t he y c o nc er n 

t h at i m me diate area.

T h e reas o n w h y I as k is t h at I h a v e bee n c o ncer ne d o ver t he n arr o w ­

ness of t he d ecisi o ns ma d e rel ati ve t o t he be n efit- c ost rati o. T h e y h a ve 

bee n t o o narr o w. We ha v e e xa m ples i n Ala s ka w here i n p oi nt- of -fa ct it 

is u nec o n o mic t o d o s o m et hi n g, b ut aft er it is d o ne, it t h e n bec o m es 

ec o n o mi c bec a use ot h er f orces c o me i nt o pla y.

Mr. B a r l o o n . Yes. A n d, of c o urse, t he str u ct ur e of p r o d ucti o n a n d 

t he l o gistics of i n d ustr y a d a pt t o t he a v ail a bilit y of a ne w facilit y t o a 

de gre e w hic h is c o m m o nl y u n p re dict a bl e.

S o m eti m es t o a ver y lar ge ae gree, s o m eti m es t o a l o w de gre e. Wit h 

re g ar d t o t he bea ri n g of ec o n o mic efficie n c y o n na vi g ati o n i m pr o ve ­

me nts, I t hi n k of o ne ill ustrati o n. T h e m o ve m e nt of fi nis h e d steel 

fr o m t he Pitts b u r g h a n d O hi o Valle y di strict a n d fr o m t h e C hic a g o 

di strict t o d o me stic g ulf c oa st m ar kets b y water — 1. 5 milli o n t o n s m 

19 73 wit h a val ue of a b o ut $ 3 7 5 milli o n —is ill ustrati v e.

T h e alt er nati v e railr o a d tra ns p o rtati o n fr o m t h os e di stricts t o t he 

g ulf c oa st w o ul d re p res e nt a tra ns p o rtati o n c ost t h at is a b o ut t wice 

as hi g h or m ore.

U n der ec o n o mic efficie nc y, we w o ul d sa y t h at it is a m atte r of 

i n differe n ce if t he g ulf c oa st steel c o n s u m er b u y s Ja pa ne se a n d C o m ­

m o n M ar ket steel. It ma y be t h at t h e res o urce s a p plie d t o water 

tr a n s p ortati o n, i ncl u di n g t he p u blic o utla ys as well as t h os e of t he 

pri vate carrier s, are e xcessi v e f or t he pric e of t h e steel o n t he g ulf 

c oast. We mi g ht sa y i n ter ms i n ec o n o mic efficie nc y, it w o ul d be 

bette r f or t hi s milli o n- pl us t o n s of ste el f or g ulf c o ast c o n s u m ers t o be 

p urc h ase d a br oa d, i n ter ms of ec o n o mic effici e nc y.

Bal a nci n g a gai n t he alt er nati v e c ost of res o u rces t o ma ke steel, 

steel fr o m Ja pa n deli vere d at H o ust o n ma y be l o wer c ost i n ter ms of 

U. S. res o urce s t h a n t he c ost of steel fr o m t he d o m estic i n d ustr y.
7 6 0

ut t hi s c o m plet el y i g n ores t he pr o ble m of t he bala nce of pa y ­

me nts, n o w a seri o us pr o bl e m beca u se of t he pr o s pe ct a n d t he e xi st ­

e nce of ver y lar g e i m p orts of f uel fr o m t he Persia n G ulf a n d ot he r 

O P E C s o urce s. S o t he c o n ce pt of ec o n o mic efficie nc y a p plie s h ere, b ut 

it ma y mis dir ect nati o nal p olic y i n ter ms of t he real nati o n al sit uati o n.

A gai n, i n t he case of far mi n g, a ver y lar ge perc e nt a ge of t he t ot al 

u p per Missi ssi p pi basi n far m cr o p ma r keti n gs — s o m et hi n g well o ver 

30 per ce nt —a re m o ve d b y wat er t o t he g ulf c oa st f or e x p ort. We 

mi g ht sa y t h at i n ter ms of ec o n o mic efficie nc y it w o ul d be bette r f or 

s o me of t h ose far m ers, t he mar gi nal far m ers, i n t he Da k otas a n d 

Mi n ne s ot a a n d Wisc o nsi n, f or e xa m ple, t o gi ve u p far mi n g a n d m o ve 

t o t he cit y. T h e y ma y be usi n g t o o m uc h res o urce s t o m o ve t his 

grai n t o t he g ulf i n t he sa m e m a g nit u de as at pr ese nt

T ha t w o ul d be t he ec o n o mic efficie nc y decisi o n. B ut t he nati o nal 

p olic y decisi o n w o ul d ha v e t o rec o g nize t h at t he va st mi grati o n of 

r ur al pe o pl e i nt o o ur citie s o ver t he pa st 25 ye ars has ge n erate d a n 

e n or m o us crisis i n t he i n n er cities, a n d nati o nal p olic y w o ul d see m t o 

call f or s o me reta r d ati o n of t his mi grati o n a n d f or t he e x p a nsi o n of 

o p p o rt u nit y i n r ur al area s, s o as t o re d uce t h e pre ss ures u p o n t he 

i n n er cities of mi gr ati o n s o l ar ge a n d s o r a pi d.

B ut ec o n o mic efficie nc y w o ul d ta k e n o acc o u nt of t he s ocial dis ­

r u pti o n s i n o ur i n n er citie s res ulti n g fr o m t hes e h u ge mi grati o ns.

T he se are ill u str ati o n s of t he wa y i n w hic h ec o n o mic efficie nc y is a 

perfectl y l o gical, per fectl y reas o na ble, str uct ure of i deas, ft is i nter ­

nall y c o n sist e nt.

It has a bea utif ul i nt e grit y. B ut it d oes disr e gar d parti c ular n ati o n al 

p olic y o bj ecti ves w hic h press u p o n us at t he pre se nt ti me.

T his is m uc h of m y t he m e, Mr. C h air ma n. O ne ot h er p oi nt w hic h I 

see k t o e m p hasi ze i n m y pre p are d st at e m e nt is t h at t he be n efit- c ost 

rati o as it has bee n use d i n rec e nt ye ars is getti n g s o m e w hat m or e 

restricti v e. T h e sc o pe of be nefits a n d c ost t o be ta k e n i nt o acc o u nt 

te n ds t o w ar ds f urt h er narr o wi n g.

T h e i nt ere st dis c o u nt fact or, w hic h te n ds t o be restricti v e i n effect, 

has bee n raise d t o a hi g her per ce nt a ge a n d t he pres s ure s are ver y 

str o n g t o raise it still f u rt h er t o a m uc h hi g her perc e nta ge.

T hi s tre n d w o ul d be u n derst a n da ble a nti desira bl e, I a m s ure, if we 

ha d a sit uati o n w here we were e xtra va ga nt, w her e we ha d a gre atl y 

e x pa n de d Fe d eral o utla y o n na vi gati o n a n d we are g oi n g t o o far.

f n fact, h o we ver, t he act ual tre n d is q uit e t he c o ntr ar y. I pre se nt i n 

m y state m e nt t he pict ur e of t he gr o wt h i n t he gr oss nati o n al pr o d uct 

fr o m 1964 t o 1974 of 42.2 per ce nt i n c o nsta nt d oll ars, ta ki n g o ut t he 

effect of i nflati o n.

T h e gr o wt h i n d o m esti c water tra ns p o rtati o n was c o m par a bl e a n d 

pr o ba bl y of hi g h er per ce nta g e t h a n t h at. B ut Fe der al o utla ys o n ne w 

w or k o n i nla n d na vi gati o n pr o g ra m s, a n d c oa stal har b o rs i ncl u de d, i n 

c o nsta nt d olla rs, we nt d o w n b y 49.8 per ce nt, j u st a b o ut o ne- h alf. I n 

ot he r w or ds, Mr. C h air ma n, o ver t he pa st 10 y ear s t he act ual p h ysical 

c o nst r ucti o n of na vi gati o n a n d har b o r i m pr o ve me nt i n t hi s c o u ntr y 

ha s bee n c ut a b o ut 50 perce nt i n ter m s of p h y sical q u a ntit y.

Se nat or G r a v e l . W hat is t he ti me fra me ? Fift y yea rs, v o u sa y ?

Mr. B a r l o o n . T e n yea rs. I n 10 y ear s it has bee n c ut a b o ut 50 per ­

ce nt. S o w h at I a m sa yi n g is t his: T h e pr o gra m t o w ar d s restricti v e 

sta n d ar ds is i n t he dire cti o n of sl o wi n g d o w n e ve n m ore w h at is 

alr ea d y a ver y m uc h ret ar de d pr o g ra m a n d s h o ul d n ot be vie we d as
7 6

o ne of sl o wi n g d o w n a pr o g ra m w hic h has bee n c o nsta nt i n ma g nit u de 

n or, i n de e d, o ne w hic h has bee n e x p a n d e d. It is o ne w hic h has bee n 

di mi nis hi n g.

T his c o ncl usi o n w o ul d s h o w u p if I were t o i ncl u de data c o m pari n g 

e x p e n dit ur es o n n a vi gati o n wit h gr oss nati o nal pr o d u ct or m o stl y a n y 

ot h er mea s ure. It, i n fact, is a ver y s u bsta ntiall y decli ni n g pr o gra m.

Se nat or G r a v e l . J u st o n t h at p oi nt t here, t he fi g ures are ver y 

re ve ali n g, b u t I j u st w o n d ere d, if y o u ta k e a n art er y, a ri v er, y o u ca n 

d o s o m uc h t o it i n or d er t o ma ke it a usef ul i n str u m e nt of ec o n o mic 

acti vit y. Y o u ca n p u t s o m uc h ca pit al i nt o it.

T h e n aft er a p oi nt y o u c o nti n u e t o get t he be nefits of t h at ec o n o mic 

acti vit y, w hic h is reali ze d i n gr oss nati o n al pr o d u ct. B ut y o u nee d 

n ot c o nti n u e at t he sa m e rate of ca pital i n v est me nt beca use o nce y o u 

ha v e t he water fl o wi n g t he wa y y o u wa nt it t o fl o w, o nce y o u ha v e g ot 

fl o o d c o ntr ol t he wa y y o u wa nt it, t he n o b vi o usl y y o ur c ur ve w o ul d 

be n d d o w n as t o t he a m o u nt of ca pital y o u p ut i nt o it bec a use it is 

j u st a q ue sti o n of ref u r bis hi n g as y o u g o al o n g.

T h e n y o u ha v e t he i ncre ase d use of t hi s ca pital as set w hi c h is n o w 

a vaila ble t o y o u. W o ul d t h at n ot te n d t o miti g ate t he p oi nt y o u are 

ma ki n g?

Mr. B a r l o o n . It s urel y w o ul d, Mr. C h air ma n. T h e ca n aliz ati o n of 

t he O hi o Ri v er was c o m plete d i n 1929. N ot hi n g f urt her was d o ne a n d 

I t hi n k n ot hi n g reall y nee de d t o be d o ne o n it o n a maj or scale u ntil 

t he mi d dle 195 0’s. Well, t here was s o me c o nst r ucti o n m t he 19 30 ’s, 

rec o nstr u cti o n of s o me of t he facilities.

Y o u are q uite ri g ht. O nce a pr o gra m is c o m plet e d, it is c o m plete d. 

A n d we d o see q uite a n u m b er of ver y e xtra va ga nt pr oject pr o p osals. 

I ha v e see n pr o gra m s f or rec a naliz ati o n of t he Bi g Sa n d y Ri v er. I 

t hi n k t he be n efit-c o st rati o was esti m ate d at a b o ut 0.6 t o 1. I k n o w of 

o ne pa rt of t he c o u ntr y w here t he y are ver y e nt h u sia stic a b o ut b uil d ­

i n g a water wa y fr o m Mi n nea p olis t o D ul ut h, Mi n n es ota. S o y o u 

e nc o u nte r all ki n ds of pr oje cts.

I a m n ot a d v ocati n g t h at e v er yt hi n g be p us h e d a h ea d i n t h at 

ma n ner. At t he sa me ti me, t here are a n u m b er of rat h er seri o us b ottl e ­

nec k s i n t he s yste m, a n d re plac e m e nt or m o der niz ati o n of t hes e has 

bee n s o me w h at ret ar d e d.

T he pr o ble m at L oc k a n d Da m N o. 26 o n t he Missi ssi p pi is n ot 

o ne of a Fe d eral p olic y. It is o ne of t he liti gati o n n o w i n pr oce ss. T h e 

I n n er Ha r b or Na vi g ati o n Ca n al i n Ne w Orle a ns is a ver y seri o u s 

b ottle n ec k. It is partic ula rl y seri o us beca use s uc h a lar g e v ol u m e of 

O hi o ba si n c oal has t o m o ve t o t he easter n g ulf c oa st t hr o u g h t h at 

facilit y.

W hat I a m sa yi n g, Mr. C h air ma n, I certai nl y a gree wit h y o u i n 

pri nci ple a n d I a m l o o ki n g a t pa rti c ular pr oject s, t he re plac e m e nt a n d 

m o der nizati o n of w hic h n o w w o ul d see m t o be ver y, ve r y ur g e nt, as 

L oc k a n d Da m N o. 26.

T h e O hi o Ri v er na vi gati o n facilit y at Galli p olis, O hi o, a n d se veral 

o n t he M o n o n ga h ela Ri v er are clearl y i n a d e q uate t o m o der n de m a n d s.

O ne of t he iss ues raise d, Mr. C h air ma n, wit h re ga r d t o water tra ns ­

p ortati o n, is w h et h er or n ot t he l o w c ost of water tra ns p o rtati o n is 

passe d o n t o c o ns u mer s i n t he f or m of l o wer prices. It is n ote d b y ma n y 

t h at maj or s hi p pe rs o n t he i nla n d water w a ys are bi g c or p o rati o n s, 

a n d it is ass erte d t h at a m o n g t he m price c o m petiti o n is o fte n n ot ver y
7 6 2

acti ve. S o it is s us p ecte d t he sa vi n gs o n water tra ns p o rtati o n d o n’t 

get t hr o u g h t o t he ret ail st ore.

I ta k e u p t hi s q ue sti o n i n m y pre par e d state m e nt. I belie v e it ca n 

be a ns w ere d be st b y l o o ki n g at parti c ular m o ve m e nts a n d pa rti c ular 

i n d ust rie s affecte d a n d at t neir price str uct ur es.

I ca n’t be cate g orical a b o ut it, b ut I t hi n k a lar ge p orti o n of t he 

sa vi n gs of water tra ns p o rtati o n d oes get t o t he c o ns u mer, n ota bl y i n 

t he case of t he f uel a dj u st m e nt cla use of electrical utiliti es c o ntra ct s 

w her e y o u ha v e a rat h er pr o m pt pas si n g t hr o u g h of hi g her tra ns p o r ­

tati o n c ost of f uel i nt o t he electrical utilit y bill of t he h o u se h ol de r.

I ha v e s p o ke n a b o ut hi g h pri orit y nati o nal p olic y area s t o w hic h 

ec o n o mic efficie nc y a n d t he be n efit- c ost rati o are lar gel y i n differ e nt. 

T he se i ncl u de t he s u p pl y of e ner g y, w hic h I deal wit h o n pa ges 11 

t hr o u g h 14 of m y state me nt; t he nee d s of a gric ult ur e rel ate d t o w orl d 

f o o d s u p pl y, pa ge s 15 t o 17; c o n ser vati o n of i n v est me nt, i n w hi c h 

water w a ys tra ns p o rtati o n has m u c h t o offer, o n pa ges 18 a n d 19; 

t he effect o n t he bala nce of pa y me nts, pa ges 2 0 a n d 21; a n d u n e m pl o y ­

me nt o n pa g es 22 a n d 23 of m y stat e m e nt.

Let me sa y, Mr. C h air m a n, t h at I a m n ot sa yi n g t h at e ver y water ­

wa y pr oje ct will ma ke si g ni fica nt c o ntri b uti o n i n all of t hes e fiel ds. 

I d o n’t mea n t h at. W hat I d o mea n is t h at t he partic ula rs of a n y 

pr oject i n t h eir bea ri n g o n s o me o ne or m ore of t hese o bj ecti ves, 

w h et h er it be fa v ora ble or u nf a v ora ble t o t he pr oj ect, s h o ul d, I belie ve 

be f ull y ta k e n i nt o acc o u nt o ut si de of t he ec o n o mi c efficie nc y mea s ure.

I d o n’t wa nt t o a p p ear t o be ma ki n g a bla n k et state m e nt t h at all 

water w a y pr ojects i n v ol ve a n d will c o ntri b ute t o all of t he se o bjecti ve s. 

W hat I a m sa yi n g is t he y s h o ul d be c o nsi dere d i n f ull wei g ht, w h et h er 

fa v ora bl y or u nf a v o ra bl y, t o eac h pr oject.

I ta k e u p t he q ue sti o n of water us er c har ges as a test of willi n g ness 

t o pa y o n pa g e 24. It has bee n pr o p ose d i n t he e val uati o n of pr ojects 

t h at if t here were a user c har ge i n effect, t he n t he be nefi ciaries w o ul d 

be fac e d wit h a q ue sti o n of w het he r or n ot t he y reall y wa nt t o pa y f or 

t he pr oj ect i n t he f or m of t he user c har ge. I c o nsi der t h at q ue sti o n of 

pa ge 24.

M u c h c o nc er n has bee n e x pres se d, q uite u n derst a n da bl y, as t o 

t he effect of water w a ys de v el o p m e nt a n d d o m estic frei g ht tra ns ­

p o rtati o n b y water o n t he railr oa d s. I c o nsi der t his q ue sti o n i n t he 

cl osi n g pa ges of m y state m e nt, Mr. C h air ma n. Partic ula rl y, y o u ma y 

be i nt ere ste d i n n oti n g c h art s 3, 4, a n d 5, w hic h are a p p e n d e d t o t he 

state m e nt.

T h e ce ntral t h o u g ht wit h re ga r d t o t he rail- w ater rel ati o n s hi p is 

t h at t he de m a n d of t he nati o n al ec o n o m y f or frei g ht tra ns p o rtati o n 

u p o n b ot h m o d es is e x p a n d n g ver y, ver y ra pi dl y. Fr o m 197 0 t o 1973, 

t he s hall o w dr aft i nla n d water wa ys traffi c v ol u me i ncr ease d b y 16 

billi o n-t o n miles. Railr oa ds i ncr ease d b y 87 billi o n t o n- mile s, fi ve 

ti m es a s m uc h. B ot h are g oi n g u p e n or m o usl y.

T h e 1972 Nati o n al Tr a n s p ortati o n Re p o rt of t he D e p art m e nt of 

Tr a n s p ortati o n pr oject e d fr o m 1970 t o 1990 a n i ncrease i n t he de m a n d 

f or railr oa d frei g ht tra ns p ortati o n of 65 perc e nt. O ur pr o ble m is n ot 

o ne of parc eli n g o ut a li mit e d de m a n d f or frei g ht tra ns p o rtati o n be ­

t wee n m o de s w hic h ha ve ca p acit y t he y are see ki n g t o utiliz e. It is 

q uite t he c o ntr ar y.

O ur basic tra ns p o rtati o n pr o ble m as it affects railr oa d s a n d water ­

wa ys, Mr. C h air m a n, is t he i ns uffici e nc y of t he ca p acit y of b ot h m o des
7 6 3

t o m o ve t he m o u nti n g v ol u m es of traffic w hic h o ur i n d ust r y, c o m ­

merce, a n d a gric ult ur e nee d t o ha v e m o ve d t o mar kets.

I w o ul d li ke t o e m p ha size, t he n, t h at t her e is n o q ue sti o n here i n 

t he de v el o p me nt of i nla n d wat er w a ys, I belie ve, of da m a gi n g t he 

railr o a ds, a n d cert ai nl y n ot t o a de gree w hic h w o ul d i m pai r railr oa d 

ser vice t o t he p u bli c, b ut rat h er o ne of t he pr o visi o n of a d e q u ate 

ca p acit y f or b ot h m o des. I ha ve n ot e d i n m y state me nt t he ver y s u b ­

sta nti al c o n ser v ati o n of i n v est me nt f u n ds i n v ol ve d i n water w a ys 

de vel o p m e nt, usi n g De pa rt m e nt of Tr a n s p ortati o n a n d C or ps of 

E n gi n eers statistic s. If we ca n c o nser ve t he a m o u nt of i n v est me nt 

f u n d s re q uire d f or t he e x pa n si o n of o ur m ulti- m o dal frei g ht tra ns ­

p ortati o n, it will n ot di mi nis h t he frei g ht carri e d b y railr oa d s. T h eir 

frei g ht v ol u m e will g o u p i n a n y e ve nt. B ut it will, I h o pe, get a 

gre ater ca p acit y f or m o vi n g frei g ht wit h a mi ni m u m drai n u p o n 

scarce i n v est me nt f u n ds.

At t he sa m e ti me, a gre at deal is bei n g acc o m plis he d a n d m ore 

s h o ul d be acc o m plis h e d f or i nte r m o dal m o v e me nts. We ha d t he de ­

vel o p me nt b y a n u m b er of Mi d dle We ster n railr oa d s of grai n a n d 

s o y b ea n ori gi nati o ns, m o ve d b y rail d o w n t o t he Missis si p pi Ri v er 

a n d t he Illi n ois Ri v er f or tra n ss hi p m e nt. T h e C hica g o a n d N ort h ­

wester n, t he Mil w a u ke e Railr oa d, a n d t he T ole d o, Pe oria a n d W est ­

er n, all of t hese ha v e i nstit ute d ne w m o d er niz e d tec h n ol o g y f or railwat er m o v e me nts. T he se are railr oa d s t h at d o n ot reac h t o t he g ulf 

s o t h at t he y certai nl y ha ve n ot hi n g t o l ose a n d, i n a n y case, grai n 

w o ul d ne v er m o ve all-rail t o t he g ulf i n a n y w here ne ar t he v ol u me 

t h at it d oes b y water a n d rail c o m bi ne d at t he pre se nt ti me if it were 

n ot f or t he water w a y facilit y.

T he Miss o uri Pacific Railr oa d a n d Illi n ois Ce ntr al G ulf ha ve l o n g 

m o ve d bit u mi n o us c oal fr o m t he s o ut he r n Illi n ois c oalfiel ds t o t he 

Illi n ois a n d Missis si p pi Ri vers f or tra ns s hi p m e nt t o t he T wi n Cities 

a n d t he C hica g o area.

T he B urli n gt o n N o rt h er n Railr oa d has e nt ere d i nt o l o n g-t er m 

c o ntra cts f or t he m o ve m e nt b y rail of l o w s ulf ur west er n c oal t o t w o 

ter mi nals, o ne i n t he St. L o uis area a n d o ne at Metr o p olis, Ill., o n t he 

O hi o Ri ver. T hi s l o w s ulf ur c oal is t o m o ve b y lar ge u nit trai ns t o 

t hese ter mi nal s a n d be distri b ute d b y ri ve r bar g es t hr o u g h o ut t h e 

Mi d dle West a n d as far as t he Ka n a w ha Ri v er i n West Vir gi nia.

T hi s is a v er y fi ne d e vel o p me nt t h at s h o ul d certai nl y be e nc o ura ge d 

i n w hic h eac h m o d e of tra ns p o rtati o n is utili ze d f or t h at pa rti c ular 

ki n d of ser vice a n d sect or of t he ser vic e w hic h it ca n perf or m be st 

wit h a mi ni m u m drai n u p o n t he li mite d i n v est me nt f u n ds i n t he 

c o u ntr y.

I wa nt t o e m p hasi ze t h at it is a gr oss o ver si m plific ati o n a n d I 

t hi n k a false pict ur e t o re ga r d water w a ys de v el o p m e nt as a m atte r 

pri n ci p all y of ta ki n g traffic a wa y fr o m t he railr oa d s.

T hi s c o ncl u des, Mr. C h air m a n, w h at I ha d i n mi n d sa yi n g. I will 

be ver y gla d t o a ns w er q ue sti o ns y o u or ot h er me m bers of t he c o m ­

mitte e ma y wis h t o as k.

Se nat or G r a v e l . If I ca n p ose o ne q ue sti o n a n d t he n t ur n it o ve r 

t o m y c ollea g ue t o as k a q ue sti o n, o n pa ge 28 of y o ur st at e m e nt y o u 

st at e t h at t he railr o a ds ha v e n ot s uffer e d, as y o u j u st s u m ma riz e d, 

fr o m wat er w a ys c o m petiti o n. Y o u sai d t h at fr o m 1960 t o 197 0 t he 

t o n- mile s of water b or ne frei g ht carrie d o n t he Missis si p pi Ri ve r 

a n d its tri b utaries m ore t h a n d o u ble d, a n d t h at t hi s de v el o p m e nt

5 4 - 2 3 9 0 - 7 5 - 4 9
7 6 4

was acc o m pa nie d b y a rise i n frei g ht carria ge b y t he wate r- parallel 

railr oa ds at a b o ut d o u ble t he rat e of ot h er class 1 railr oa d s i n t he 

c o u ntr y.

I w o ul d li ke t o q u ote y o u a state m e nt fr o m Mr. G. P. Br oc k, 

c hair m a n of t he b oa r d of Illi n ois Ce ntral G ulf Railr o a d, w h o testifie d 

at o ur heari n gs i n Vic ks b ur g o n Ma y 1 6. Mr. Br o c k sai d:

Fr o m 1 94 7 t h r o u g h 1 97 4, t he Fe deral G o ver n m e nt s pe nt $ 4. 3 billi o n i m pr o vi n g 

t he i nla n d water wa ys, a n d t he perce nta ge of i ntercit y frei g ht ha ule d b y bar ges 

i ncrease d fr o m 3. 4 t o 1 0.5 perce nt.

D uri n g t his sa me peri o d, t he railr oa ds s hare of t he frei g ht mar ket dr o p pe d 

fr o m 6 5. 3 p erce nt t o 3 8. 9 per ce nt.

I w o n der if y o u mi g ht c o m me nt o n Mr. Br o c k’s st atistics ?

Mr. B a r l o o n . M y first c o m me nt is: T ha t I a m v er y s us pici o us of his 

fi g ure o n Fe d eral e x p e n dit ur es o n i m p r o v e m e nts of i nla n d wat er w a ys 

bec a use I ha v e rar el y see n a fi g ure o n e x p e n dit ur es o n wat er w a ys 

iss ue d fr o m railr oa d s o urce s t h at was c orre ct a n d precise.

M y sec o n d c o m me nt is t hi s: T he decli ne i n railr o a ds ’ s hare of 

frei g ht is n ot c o ncl u si ve i n a n y de gree as t o t he railr oa d pr o bl e m 

beca use it ma y be a decli ni n g s h are of a va stl y bi g g er t ot al. I t hi n k we 

w o ul d fi n d t h at t he s hare of railr o a d frei g ht i n t he t ot al i nt ercit y 

m o ve m e nt d o m estic all y i n t he last 5 yea rs ma y pr o ba bl y ha v e g o ne 

d o w n, w hile t he act u al frei g ht t he y were ha uli n g we nt u p t o t he 

hi g hest le vels i n hist or y, hi g her e ve n t ha n W orl d W ar I T. S o t he 

s ha re is n ot c o ncl u si ve. It is i n di cati ve b ut n o m ore.

T hir d: I w o ul d li ke t o c o m me nt, Mr. C h air m a n, o n t he ver y 

lar ge a m o u nt of rail r oa d frei g ht w hic h has bee n l ost t o hi g h wa y 

tra ns p o rtati o n. F o r ge n erati o n s, fr o m t heir earliest de vel o p m e nt, 

rail r oa ds ha v e c har ge d o n a val u e of t he ser vic e basis, w hic h me a nt 

t h at o n hi g h val u e d c o m m o dities or o n a n y c o m m o dit y m o ve m e nt 

w hic h w o ul d sta n d a hi g h rat e, a hi g h rat e was c har ge d.

O n c o m m o ditie s t h at w o ul d n ’t m o ve at t he hi g h rat e, a l o wer rat e 

was c har g e d. Wit h t he de v el o p me nt of i nt ercit y tr uc ki n g, be gi n ni n g 

i n t he 1 9 3 0’s, tr uc ks were ver y well s uit e d t o m o ve t his hi g h-rate d 

frei g ht a n d s o t he y zer oe d i n o n t he hi g h-rate d m o v e me nts. F or t his 

reas o n, f or t he pa st 4 0 years, t he tr u c k has ta k e n a wa y fr o m t he 

railr oa d s a ver y lar ge v ol u m e of t he rail r oa ds’ m o st pr ofita bl e traffic.

T h e y ha v e d o ne t his bec a use t h e y ca n c har g e l o w er rates a n d pr o vi d e 

less -t ha n-tr uc kl oa d m o ve m e nt s of vastl y bette r ser vice.

Se nat or D o m e ni ci . D o n’t t he t r uc k ers pa y a t a x f or u si n g t he p u blic 

r oa d wa y ?

M r. B a r l o o n . Yes, sir. T h e tr uc kers pa y a hi g h wa y use ta x.

Se nat or D o m e ni ci . Is n’t it s u bsta ntial ?

Mr. B a r l o o n . It is n ot ver y lar ge c o m pare d t o t heir re ve n ues. I 

ha v e l o o ke d at t he fi g ures.

Se nat or D o m e ni ci . I di d n ’t as k t h at q uesti o n.

Mr. B a r l o o n . I be g y o ur par d o n?

Se nat or D o m e ni ci . I a m tal ki n g a b o ut w h et h er t he y are pa yi n g 

s o me s har e of t he c ost of t he hi g h w a ys, t he y are r u n ni n g o n, t hat are 

p u blic p r o p ert y. T he y are pa yi n g a s u bst a ntial p orti o n of t he e sti m ate d 

c ost of t heir use of t he hi g h wa ys.

Mr. B a r l o o n . Yes; t he y are. I was a d dr essi n g m yself t o t he q uesti o n of w h et h er or n ot water w a y de v el o p me nt, as q u ote d b y t he 

e xe c uti ve of t he Illi n ois Ce ntr al G ulf Railr o a d, has har me d t he 

railr oa d s. O n t h at iss u e, I s h o ul d sa y t h at w hat e ve r har m has c o me t o
76

t he railroa d s b y virt ue of i nte r m o dal c o m petiti o n is vastl y gr eater 

fr o m tr uc ki n g t h a n it is fr o m water carri a ge. T ha t is m y p oi nt.

I a m n ot ma ki n g a n y p oi nt t o d a y i n parti c ular as t o user c har g es. 

Se nat or G r a v e l . Wliat w o ul d be y o ur attit u d e t o w ar d gi vi n g t he 

railr oa d s i nt er m o d al ca p acit y w hic h t he y d o n’t ha v e ri g ht n o w ?

A p par e ntl y t here is s o me la w o n t he b o o ks of s o me d urati o n w hic h 

we nt t o a n a ntitr ust basis w here rail r oa ds ca n’t o w n ot h er m o de s of 

tra ns p o rtati o n beca use t he p ractice has bee n i n t he pa st t o retire ot h ers 

a n d t here b y retire t he c o m petiti o n.

B ut if t he pr o ble m of c o m petiti ve as p ects c o ul d be s ol ve d, w h at 

w o ul d be y o ur c o m me nt as t o de vel o pi n g t he a bilit y or free d o m of all 

m o des of t ra n s p ortati o n ha vi n g t he a bilit y t o o w n i nte r m o dal s yst e m s?

Mr. B a r l o o n . T h e a n xi eties a b o ut t his, Mr. C h air m a n, te n d lar g el y 

t o be hist o rical i n ori gi n as I ha v e rea d o n t he s u bject. It is fear e d t h at 

t he railr o a d w hic h o w ns a water carrier, bea ri n g i n mi n d t h at m ost 

water carria ge is o ut si de t he rat e re g ulati o n, w o ul d use t he water 

carrier o pe rati o n t o u n derc ut rat es a n d destr o y water ca rria g e c o m peti ­

ti o n, w he re u p o n it w o ul d car r y all t he frei g ht o n o ve rla n d rail m o v e ­

me nt. T h at is t he fear.

It is t he ol d “fi g hti n g s hi p” c o n ce pt w here it is t h o u g ht t he rail r oa d 

w o ul d use t he water car rier facilit y merel y t o destr o y t he water w a y. 

T h e water w a ys s yst e m is q uite v ul ner a bl e.

I d o n’t k n o w h o w t his ki n d of t hi n g w o ul d w or k o ut i n pra ctic e. I 

s us pect we ha v e here a q ue sti o n of a n titr ust la w a n d of w her e t he 

b ur de n of pr o of w o ul d lie as t o w h at was g oi n g o n.

It is si g nifica nt, of c o urse, t h at railr o a ds d o o pe rat e tr u c kli ne s i n 

t h ose i nst a nc es w here t he y were o p erati n g tr uc kli n es bef ore t he M ot or 

Carri er Act was passe d i n 1 9 3 5. T h e S o ut h er n Pacific Rail wa y o pe r ­

ates a bi g tr u c ki n g di visi o n. It mi g ht be i nt ere sti n g f or s o m e b o d y t o 

st u d y t h at a n d fi n d o ut w het her it has bee n g o o d or ba d a n d fi n d o ut 

h o w it has w or k e d. I d o n’t k n o w if S o ut h er n Pacific has bee n acc us e d 

of usi n g it t o fi g ht c o m petiti o n or n ot. We d o ha v e e x pe rie nc e t o 

st u d y t his. I t hi n k we c o ul d lear n fr o m t h at.

Se nat or G r a v e l . W hat w o ul d be y o ur c o m me nts o n t he dial o g ue 

t h at is de vel o pi n g wit h res p ect t o user c har ges f or t he na vi g ati o n 

wat er w a ys ? W hat i m pa ct w o ul d t h at ha ve ?

Mr. B a r l o o n . T h e user c har g e q ue sti o n relates t o t w o iss ues, I 

t hi n k. O ne is t h at of discri mi n ati o n. M o st of t he use r c har ge pr o p osals 

a p pl y o nl y t o s hall o w - dra ft vessels a n d n ot t o dee p dr aft. T h ere are 

i n t he i nla n d water w a y s yst e m a b o ut 1, 5 0 0 miles of de e p- dr aft, s hel ­

tere d c ha n nels, us u all y nea r t he c oa st, w hic h are tra ver se d b y b ot h 

dee p- d raft a n d s hall o w - dra ft vessels. F o r e xa m ple, t he Mississi p pi 

Ri v er fr o m t he dee p- d raft P o rt of Bat o n R o u ge t o t he ^ ulf is 233 

miles l o n g. T h e Sac ra m e nt o Ri v er is a s hi p c ha n nel r u n ni n g all t he 

wa y fr o m Sac ra m e nt o a n d St o c kt o n d o w n t o t he Pacific. T h e H u ds o n 

Ri v er is a de e p- dra ft na vi gati o n r o ute fr o m Al b a n y t o l o we r M a n hat ­

ta n, a n d s o f ort h.

Ma n y of t hes e wat er w a ys i n t he A m eric a n i nla n d water wa y s yste m 

carr y- s hall o w - dr aft a n d dee p- d raft o p erati o n s i n t he sa m e str ea m of 

traffic a n d ofte n i n c o m petiti o n wit h eac h ot h er. N o w, t he de e p - draft 

facilitie s are i m pr o ve d a n d mai nt ai n e d mai nl y f or t he be n efit of t he 

dee p- d raft s hi p pi n g a n d n ot t he s hall o w - dra ft.

O ne of t he m ost stri ki n g i ne q uiti es of a user c har ge e xcl u si ve o n 

s hall o w - dr aft o p erati o n s a p plie s t o t he H o ust o n S hi p C ha n nel. H o ust o n
7 6 6

is 52 miles b y wat er i n fr o m t he G ulf of Me xic o. T h ere is a ver y lar ge 

v ol u me of steel fr o m Pitts b ur g h, Pa., t h at m o ves i n s hall o w- draft, 

bar g es d o w n t he O hi o a n d Missi ssi p pi Ri vers, west war d o n t he G ulf 

I nt rac oa stal Water w a y a n d n o rt h t nr o u g h t he H o ust o n S hi p C ha n nel 

i nt o H o ust o n.

T h ere is als o a l ar ge v ol u me of Ja pa n ese a n d E u r o p ea n steel m o vi n g 

i n de e p- dr aft vessels n o rt h i n t he H o ust o n S hi p C ha n nel t o t he sa me 

H o ust o n m ar k ets. U n der a s h all o w- d raft us er c h ar ge, t he b ur d e n of t he 

user c har ge f or use of t h at c ha n nel w o ul d be place d o n s hall o w- d raft 

d o m estic vessel s o nl y.

I c o ul d ill ustrate t his disc ri mi nati o n wit h re ga r d t o m o ve m e nt s of 

grai ns a n d s o y b ea n s fr o m Bat o n R o u ge t o t he g ulf. Y o u w o ul d ha v e 

disc ri mi nati o n a gai nst s hall o w - dr aft c o m m erce i n fa v or of d o m estic 

a n d f orei g n de e p- dra ft c o m merce.

T h at is o ne of t he pr o ble ms of t he user c har ge.

A sec o n d pr o bl e m of t he user c har g e is t his, t h at as t he water 

carrier s a n d affecte d s hi p pi n g i n d u str y see it, it ha s n o u p p er li mit s h o rt 

of t he destr u cti o n of a ver y lar ge p orti o n, if n ot m ost, of t he s hall o w 

dr aft i nla n d wat er b or n e c o m merc e.

We ha v e s ee n pr o p osals s uc h as t he D o yle Re p o rt of 1961 f or c har g es 

w hic h w o ul d ha v e i ncre ase d t he c o st of m o v e me nts i n t he i nla n d water ­

wa ys b y 90 t o 100 per ce nt a n d ter mi nate a v er y la r ge p orti o n of t he m.

We ha ve see n t he pr o p o sal of t he Va n Za n dt- B eall bills of t he earl y 

19 60’s f or u ser c har ge s i n t he ra n ge of 1.5 t o 1.7 mills per t o n- mile. At a 

ti me w he n ma n y s hall o w- dr aft m o ve m e nt s were at 2 mills or less, t his 

w o ul d ha v e bee n a virt ual d o u bli n g of t heir c har ges. S o t he water 

carrier i n d ustr y a n d s hi p per s usi n g it ha ve bee n s h o w ere d wit h t hese 

re p eat e d pr o p osals w hic h c o nte m plate t he eli mi nati o n of t he ser vice o n 

ma n y of t he ri ve r se g m e nts. I d o n’t t hi n k t here is a n y d o u bt t h at 

c har ges of t hese ma g nit u d es w oi d d ter mi nate traffic o n t he Alle ­

g he n y a n d C u m berl a n d a n d ot her ri vers, i ncl u di n g, pr o ba bl y, t he 

Mis s o uri. T he s hi p pers a n d carrier s are fri g hte ne d t o de at h w he n s o me ­

o ne pr o p oses a 2-ce nt-a- gall o n f uel ta x. T h e y see t his 2-c e nt- a- g all o n 

ta x as si m pl y t he first ste p t o w ar ds escalati n g c har ges lea di n g t o t he 

eli mi nati o n of a ver y lar ge p orti o n of e xisti n g i nla n d water wa y c o m ­

merce. N o b o d y yet has e ver defi ne d a n y u p per li mit. It is c o nte m ­

plate d n o w t o li mit t he vessel w hic h w o ul d be s u bjecte d t o a 4-c e nt -agall o n f uel ta x at a dr aft of 15 feet. T his is p ur el y ar bitr ar y. W h y n ot 

14, 12, 18? A n d all li mits w hic h are set are p ur el y ar bitr ar y. W h y 

s h o ul d it b e 4-ce nts- a- g all o n ta x ? W h y n ot 7? It is n ot ar bitr ar y, h o w ­

e ver, t o s pecif y f ull Fe d eral c ost rec o v er y of t he V a n Za n dt- B eall a n d 

D o yle patte r n a n d t his w o ul d be ver y d estr ucti v e t o t he i n d ust r y. T his 

is o ne reas o n y o u get t hi s reacti o n.

Se nat or D o m e ni ci . C o ul d I j u st ma ke a n o b ser vati o n? Y o u sa y 

t he y are scare d t o de at h. T h e railr oa d s i n A me rica are dea d alre a d y, 

half of t he m. T h e y are n ot scar e d t o deat h; t he y are g o ne. T he re has 

bee n tre me n d o us dis cri m i nati o n i n ter m s of t he c o ntr ol a ge ncie s i n t he 

wa y rate s h a ve be e n fi xe d t her e.

Are y o u i m pl yi n g t h at t here is n o wa y t h at t he Nati o n al W ate r 

C o m mis si o n ’s rec o m m e n d ati o n t h at we ha v e a s yste m of rec a pt uri n g 

o p erati o n a n d mai nt ai n c osts c o ul d be i m p o se d wit h o ut bei n g 

dis cri mi nat or y?

Mr. B a r l o o n . Se nat or, I a gree wit h y o u t h at t he sit uati o n of t he 

railr oa d s, t he R oc k Isla n d a n d N o rt h easter n Railr o a ds, is disa str o us.
7 6 7

I d o n’t t hi n k user c har ges o n t he i nla n d water w a ys w o ul d affe ct t he 

pr o ble m of t he tr o u ble d railr o a ds m ore t ha n t he s m alle st de gree, if 

at all.

Se nat or D o m e ni ci . I a m n ot s u g g esti n g it w o ul d.

Mr. B a r l o o n . T h e t ot al val u e i n ter m s of rate s c har ge d a n d 

re ve n ue s per t o n- mile of i nla n d water w a y carrier s, all i nla n d water ­

wa y, s hall o w - dr aft carriers i n t he c o u ntr y, is less t h a n 5 perce nt of 

rail r oa d re ve n ues.

If y o u kill off all i nla n d water wa y tra ns p o rtati o n a n d tra nsf er 

e ver y t o n- mile t o t he rail r oa ds, w hic h w o ul d n ot ha p pe n, y o u w o ul d 

i ncre ase railr o a d re ve n ue s o nl y 5 per ce nt, w hic h is less t h a n t he y 

act uall y we nt u p fr o m 197 2 t o 1973, a n d user c har ges w o ul d n ot 

c o ntri b ute i n a n y si g nifica nt wa y t o t he res ol uti o n of t he pr o ble m s of 

t he ba n k r u pt railr oa d s.

Se nat or D o m e ni ci . Yo u s p o k e of a n ot h er ki n d of dis cri mi nati o n of 

dee p a n d s hall o w. Y o u s p o k e of t h at as if it was a n e xisti n g realit y. 

Is it ?

Mr. B a r l o o n . It is n ot n o w, Se n at or. I was sa yi n g it w o ul d be if 

we ha d a w ate r w a y user c ha r ge e xcl usi vel y o n s hall o w - dr aft na vi g ati o n.

Se nat or D o m e ni c i . W h ere di d y o u get t h at ass u m pti o n ? Y o u are 

telli n g us t h at as if t h at is t he sit uati o n. W hat if t h at d oe s n’t occ u r?

Mr. B a r l o o n . I d o u bt it, Se nat or, beca u se t his h as bee n t he patte r n 

of ma n y user c har ge pr o p osal s.

Se nat or D o m e ni ci . Wa s t h at t he pr o p osal of t he Nati o nal W ate r 

C o m mis si o n ?

Mr. B a r l o o n . It was t he pr o p osal of t he M u elle r re p ort. It was 

e m pl o ye d i n t he re p ort of t he Nati o nal W ate r C o m missi o n i n t h at t he 

C o m mis si o n sai d it was n ot g oi n g t o pass o n t he q u esti o n of user 

c har ges o n de e p- dra ft har b o rs a n d c ha n nels bec a use t h os e i n v ol ve 

f orei g n c o m m erce. S o t he Nati o nal W ate r C o m missi o n di d n ot 

rec o m me n d user c har ges o n de e p- dr aft s hi p pi n g.

I t hi n k, a gai n, we ha v e t o sa y t he Nati o nal W ate r C o m missi o n was 

i n t he patte r n of t he M u eller re p ort a n d als o of t he pr o p os al c urre ntl y 

bei n g a d v a nc e d b y t he D e p art m e nt of Tr a n s p ortati o n f or a 4-c e nt - 

a- gall o n f uel ta x o n vessels of 15-f o ot dr aft or less.

S o w h at I was sa yi n g, Se nat or, is si m pl y if y o u ta k e t he us ual 

pr o p osal s of user c har ges o n s hall o w - dr aft vessel tra ns p o rtati o n, it 

w o ul d ha v e t hi s dis cri mi nat or y effect.

N o w, if we are g oi n g t o tal k a b o ut s o me ot h er user c har ge pr o p osal s 

w hic h w o ul d be o n all na vi g ati o n, f orei g n fla g a n d d o m estic, dee pdr aft a n d s hall o w - dra ft, i n discri mi natel y, m y p oi nt o n dis cri m i nati o n 

w o ul d n ot a p pl y.

Se nat or D o m e ni c i . T h a n k y o u.

Se nat or G r a v e l . C o ul d I j u st p ose o ne q u esti o n ? T h e fi g ures t h at 

y o u a d va n ce d earli er i n dicate d t h at t he gr oss nati o nal pr o d uct has 

bee n u p a b o ut 40 per ce nt a n d t he di mi nis hi n g of Fe d eral water w a y 

i m pr o ve m e nt s has bee n a b o ut 49 per ce nt. If t here were a user c har g e 

or s o me t y p e of fee, we c o ul d e q uate t he dis cri mi nat or y feat ur es t h at 

y o u o utli n e d. I t hi n k t he pr o ble ms are real a n d w o ul d be diffic ult t o 

ha n dle. B ut i n t he hi g h wa y pr o gra m, t he m o n e y o btai ne d t hr o u g h t he 

Tr u st F u n d was use o t o e x p a n d t he hi g h wa y s yste m, t h us be n efitti n g 

t he tr u c ke rs. If t here was a g u ara nte e t h at water wa y user c har g es 

were ret ur n e d t o t he water w a ys, t here w o ul d be a si milar be ne fit.
76

Ra ilr oa ds ha v e n ot ha d t h at ki n d of o p p o rt u nit y s o t he y ha v e 

atr o p hie d. B ut if t his pres s ure were diff use d i n a fas hi o n w here t he 

m o n e y were g u ara nte e d t o g o f or mai nte na n ce, were g u ara nte e d t o g o 

f or e x pa nsi o n w her e it is ne e de d t o i nte g rat e a rail- water s yste m i n t he 

Nati o n, w o ul d n ot t he efficie ncies reali ze d t o t he c o m pa nies offset t he 

c osts i n q ue sti o n fr o m a c o n s u m er p oi nt of vie w or fr o m t he pr o d uct 

p oi nt of vie w ?

Mr. B a r l o o n . I t hi n k, Mr. C h air ma n, t h at t he l o gic is clearl y 

i n t he af fir m ati v e, t h at if y o u ha d a sit uati o n w here y o u c o ul d clearl y 

pre se nt t o t he affecte d i n d ust rie s t he pr o s pe ct of bette r i m pr o ve ­

me nts i n i nl a n d na vi gati o n a n d l o wer frei g ht c ost, wit h t he facilit y 

i n s o me m eas ure self-fi na n ci n g, t he ver y l o gic of it is t h at m o re is b ette r 

t h a n less.

It is s o me w h at h y p ot hetical beca use I ha ve ne v er see n a n y s uc h 

pr o p osal, alt h o u g h I d o n ’t d o u bt o ne w o ul d be p ossi bl e.

Se nat or G r a v e l . I me nti o n e d it o n se veral occasi o ns as a p ossi bilit y 

of ha n dli n g t he pr o ble m a n d als o I me nti o ne d it o n t he basi s of t he 

i nf or m ati o n we ha v e wit h o ur e x pe rie nc e i n t he hi g h wa y T r u st F u n d, 

w hic h has w or k e d ver y a d mira bl y i n t h at re g ar d, ma y be o ver a d ­

mir a bl y. I a p pre ciate y o u r c o m me nts.

Mr. B a r l o o n . I tal k e d a fe w ye ars a g o t o Mr. Viala i n Paris w h o 

was hea d of t he tra de ass ociati o n of t he i nla n d na vi gati o n i n d u str y 

i n Fra nce a n d as he descri be d it t o me, Fr a n ce’s water wa ys were 

det eri orate d t o s uc h a n a p p alli n gl y ba d c o n diti o n t h at t he Fr e n c h 

carriers di d a gree t o a s mall user c har ge t o get s o me i m pr o ve me nt 

p u t i n s o me of t h eir ri ver s.

T h e y ha v e w or k e d i n s maller di m e nsi o ns. T h e di m e nsi o ns of t heir 

l oc ks a n d da m s n o w’ are a b o ut w h at we ha d o n t he O hi o i n o ur c o n ­

str ucti o n pr o gra m i n t he 19 20’s.

S o it was a sit u ati o n w here t he y acc e pt e d user c har ges as a n alte r n a ­

ti ve t o n ot getti n g be y o n d t he sta n d ar ds of T he o d o re R o o se velt, 

s o t o s pea k.

Se nat or G r a v e l . I t hi n k y o u pr o vi de d us wit h a g o o d e xa m ple i n 

t h at re ga r d. I was n’t a war e of t he Fre nc h e x perie n ce. B ut if t hi s were 

t o e v ol ve, w hat y o u are ess e nti all y sa yi n g is, let’s ta ke a b ar g e a n d p u t 

s o m uc h ca pit al bas e d o n t he size of t he bar ge a n d h or se p o wer a n a s o 

o n.

It is v er y li mite d i n tec h n ol o g y si nce we d o n’t ha ve a n y gr eat i n n o ­

vati o n i n t h at f or m of t ra n s p ort ati o n. Y o u ca n’t ma k e a d diti o nal ca pi ­

tal i n v est me nts or, t her ef or e, rea p t he be n efit s fr o m it e xce pt w he n we 

ca n escalate t o t he ne xt ste p f or w ar d, a n d t hi s is w he n g o ver n m e nt 

ma k es t he ca pital i n v est me nt a n d t he y accr ue be nefits. T o hi m it 

ma kes n o be nefits. He has gr eater ca pa cit y o n t he water w a ys. B y 

gr eat er ca pital i n v est me nts, he ca n bec o me m ore efficie nt.

Mr. B a r l o o n . It is a q uesti o n of w het her t he s u m of t h e c har g e pai d 

a n d t he re d u ce d c ost a n d gre ater ca p acit y ma d e p ossi ble b y facilit y s o 

fi na n ce d, w o ul d be less t ha n t he gre at l o ss t o t he c o u ntr y of n ot h a vi n g 

it at all.

Se nat or G r a v e l . Yo u s pea k of g reat l osses. I n otic e d i n y o ur pa p er, 

a n d it was o ne of t he gr eat c o ncl usi o ns we dre w i n o ur fli g ht o ve r t he 

O hi o, t h at o b vi o usl y wit h t he water pr ojects t h at we ha v e b uilt, t he 

Fe d eral G o ver n m e nt has i n v est e d o n t he O hi o Ri v er a siza ble be n efit 

accr ui n g t o t he e ntire N o rt h ea st are a of t he U nite d St ate s t hr o u g h t he 

s u b si di zati o n of f or ms of e ner g y. Y o u me nti o n e d it i n y o ur s u m ma r y. 

T ha t is fi ne.
7 6 9

ha t it mea ns is as pa rt of nati o n al p olic y we a re i nt e nti o nall y or 

u ni nt e nti o nall y esc he wi n g a n a d v a nta g e i n t h at dir ecti o n. S o me pe o ple 

feel it is b ette r t o clea r t he acc o u nt s o we will reall y k n o w w hat is ha ppe ni n g a n d bri n g a b o ut disci pli ne fr o m a n ot h er directi o n. A n d ha vi n g 

s o me e x perie nc e i n e ner g y, I t hi n k t h at it ca n be ver y val ua ble si nce 

we ha v e s o me misc o nce pti o n s i n t hi s c o u ntr y t o d a y.

S o we ha ve t o clear t he acc o u nts a n d t he s o o ner we d o, we will k n o w 

w h at we are pa yi n g f o r it, we will be a littl e m ore realistic.

T h a n k y o u ver y m uc h, Pr ofes s or. I feel y o u ha ve gi ve n us a ver y 

e xcelle nt state m e nt.

Se nat or D o m e ni c i . Are y o u a ware of t he pre se nt esti m ate b v t he 

rail r oa ds t hr o u g h t he a p pr o pri ate Fe d eral a ge nc y as t o t he defe rre d 

mai nt e na nce deficit t h at e xists o n t he rec o r ds of A merica t o d a y?

Mr. B a r l o o n . I ha v e see n ne w s pa per re p ort s, Se n at or. I d o n’t 

recall t he fi g ure.

Se nat or D o m e ni c i . I t hi n k it is pr ett y a cc u rat e i n telli n g y o u it is $ 9 

billi o n.

Mr. B a r l o o n . Yes, sir.

Se n at o r D o m e ni c i . T hat is ver y ger m a ne t o w h at we are tal ki n g 

a b o ut beca u se t h at is t he railr oa d be d s a n d t h at is w’hat carries t he 

frei g ht. We are tal ki n g a b o ut t he water wa ys t h at are n o w’ free as far 

as o p erati o n a n d mai nte na n ce. T h e y ma y n ot be i n g o o d s ha pe. We 

ma y be tal ki n g a b o ut i m pr o vi n g t he m. B ut we are tal ki n g a b o ut i m ­

pr o ve m e nt wit h Fe d eral d olla rs e xcl u si vel y at t his p oi nt.

W hil e $ 9 billi o n deferre d mai nt e na nce f or t he railr oa ds of A me rica 

is o ne of t he ot h er si g nifica nt m o de s of tra ns p o rtati o n, it is a ver y 

real pr o ble m t o o ur c o u ntr y. I n t h at r es pe ct, i n 1 9 7 2, t he D e p art m e nt 

of Tr a n s p ortati o n ma d e a ver y ge ne ral state m e nt i n t hi s re g ar d i n 

w hic h t he y sai d: “ W e ca n ’t prete n d t h at dist orti o n s i n tr a n s p ortati o n 

a n d tra ns p o rtati o n i n v est me nt d ue t o mas si ve p u bli c e x pe n dit ures f or 

hi g h wa y s, a viati o n s yst e ms, wat er w a ys, a n d t he li ke, ha v e n o t bee n 

a s u bsta ntial fact or i n t he decli ne of ot h er m o d es a n d ser vices.”

W o ul d y o u care t o c o m me nt o n t h at state m e nt i n li g ht of t he railr oa d pr o ble m o n w hic h I t hi n k it is t he m o st pre p o n d era nt dist orti o n 

t h at m ust be i nte n de d b y t he D O T state m e nt?

Mr. B a r l o o n . Se n at or, we ca n lear n, I t hi n k, s o m et hi n g of t he 

pr o ble ms of t he railr oa ds b y l o o ki n g at s o me railr oa d s w hic h d o n ot 

na v e pr o ble ms.

Y o u will fi n d t h at t he railr oa ds w hic h are q uite pr ofita ble, s uc h as 

t he Bess e mer a n d La ke Erie, ha ve a ver y hi g h de n sit y of traffic per 

mile. W h ere ver a railr oa d ca n get a hi g h de n sit y of traffic per mile, 

l o n g trai ns a n d fre q u e nt trai n m o ve m e nt s, y o u will get a pr ofita ble 

railr oa d o pe rati o n.

A n d i n t hi s ki n d of m o ve m e nt t he railr oa d s ha v e a n i n h ere nt 

a d va nta ge o ve r all ot h er m o des. T h e y re p res e nt o ne of t he m o st 

m o der n tec h n ol o gi es of tra ns p o rtati o n a n d t here is n o reas o n w h y o ur 

railr o a ds s h o ul d n ot be f ull y pr ofita ble, e xc e pti n g f or o ne t hi n g. 

T h eir li nes were lai d o ut i n t he lat e 1 9t h a n d earl y 2 0t h ce nt uri es 

w he n t here was n o tr uc ki n g. E v er y villa ge ha d t o be ser v e d b y railr o a d.

W he n all t hes e b ra n c h li nes w ere b uilt, t he te c h n ol o g y of railr o a di n g 

at t ha t ti me di d n ot p er m it s u c h l ar ge t o n n a ge i n di vi d u al trai ns.

T h e c o nse q ue nce is, we ha v e a n e n o r m o us s ur pl u s of tra c k a g e i n t h e 

c o u ntr y. T h e c o ns e q ue nce of t he s ur pl u s of t he tra c ka ge is ver y, ver y 

li g ht de nsit y m o v e me nt.
77

If y o u c o nsi d er, f or e xa m pl e, a t y pical I o w a t o w n, of w hic h t here 

are ma n y, i n earl y ti m es t his t o w n s hi p pe d o ut mai nl y grai n a n d li ve 

a ni m als b y rail a n d it recei ve d i n all of t he re q uir e m e nt s of t he life 

of ret ail st ore s of t h at t o w n b y rail.

T o da y, n ot hi n g c o mes i nt o t h at t o w n b y rail, virt uall y. All t he 

c o ns u mer g o o ds c o me i n b y tr u c k beca u se tr u c ki n g has t he nat ural 

a d v a nt a ge a n d deli ver y of s mall l ots of c o n s u m er g o o ds.

T h e rail r oa d d oes car r y o ut a ver y s mall q u a ntit y of g rai n s o n t h at 

bra nc h li ne a n d l oses m o n e y hea vil y d oi n g it.

We ha v e a pict ur e, t heref ore, w here t his o bs olete railr oa d tra c ka ge 

s yst e m is s u bsi dizi n g t h o usa n ds a n d t h o usa n d s of s mall c o m m u nities. 

We ca n’t st o p beca use it w o ul d mea n t he destr u cti o n, or at lea st 

ver y se vere i nj ur y, t o t h ose t h o usa n ds of c o m m u nities if t he rail r oa d 

ser vic e were disc o nti n ue d.

T hi s basi call y is o ur pr o ble m. It is t he pr o ble m of t he tr u c k. It 

d o es n ’t m atter w h et h er t he tr uc ks pa y t heir o w n wa y o n t he hi g h ­

wa y or n ot. T h e tec h n ol o g y of tr u c ki n g is s uc h t h at rail r oa ds j u st 

d o n’t c o m p ete f or a ver y lar ge p orti o n of t he tr uc ki n g s er vice.

I ha v e c hec k e d u p o n t he ti me it ta k es t o get a carl o a d of ste el fr o m 

Cle v ela n d t o Ci n ci n nati. B y rail, it is fr o m 4 t o 6 da ys. Y o u ca n get 

it t her e b y tr u c k i n 6 h o urs. Fr o m Mic hi ga n t o s mall t o w ns i n Te n n es ­

see a less-t ha n-ca rl oa d s hi p m e nt t o o k 35 da y s b y rail. B y tr u c k it is 

3 or 4 da ys.

Water w a ys ha ve n’t d o ne maj or har m t o t he railr o a ds. It is t he 

o bs olesce nce of t he rail r oa d s yst e m t h at was b u ilt f or t he pretr u c ki n g 

era.

Se nat or D o m e ni ci . Yo u are telli n g us t h at t h at state m e nt b y D O T 

as t o t he dist orti o ns t he y sa y are s u bsta ntiall y attri b ut a ble t o s u b ­

si di zati o n of t he ot h ers a n d n ot t he railr oa ds, is n ot tr u e. It is t he 

o bs oles ce nce a n d mis ma na g e m e nt a n d Fe d eral i nterfer e nc e t h at has 

p u t t he railr o a d t o t he dis a d v a nt a ge of n ot bei n g q uite as c o m petiti v e 

as t he reas o n gi ve n b y D O T, or w o ul d y o u q ui b ble wit h t he w or d 

“s u b sta ntial” ?

Mr. B a r l o o n . Se n at or, I w o ul d sa y t his: T h e bi g i nfl ue nce i n t h at 

state m e nt is as I ha v e sai d: hi g h wa y tr uc ki n g.

Se nat or D o m e ni c i . Y o ur a ns w er d oe s n’t tell us a n yt hi n g we d o n’t 

alr ea d y k n o w a b o ut t he pr o ble ms of t he railr o a d. I as ke d y o u w h et h er 

or n ot t his st at e m e nt t h at D O T ma d e wit h refer e nce t o s u bsta ntial 

dist orti o ns i n ot he r m o des of tra ns p o rtati o n is p re dicate d u p o n t he f act 

t h at we ha v e s u b si di ze d a n u m b er of tra ns p o rtati o n m o de s, a n d 

o b vi o usl y n ot t he railr o a ds, was s u bsta ntiall y tr u e or n ot?

Y o u a ns w ere d b y sa yi n g t he railr oa d s are arc haic a n d b o u n d u p i n 

all ki n ds of 1925 pr o ble ms.

I a m as ki n g are y o u, t heref ore, sa yi n g t he D O T state m e nt is n ot 

rel e v a nt t o t he pr o ble ms of t he railr oa d s, or is it ?

Mr. B a r l o o n . I t hi n k t h at it is f or t he m o st pa rt, n ot a ver y c o m ­

plete e x pla nati o n. I t hi n k it falls far s h ort of a n yt hi n g li ke a c o m plete 

e x pla n ati o n.

Se nat or D o m e ni ci . T ha n k y o u, Mr. C h air ma n.

Se nat or G r a v e l . T ha n k y o u vei y m uc h, Pr ofe ss or.

Mr. B a r l o o n . T ha n k y o u, Mr. C h air m a n.

[ Mr. Barl o o n’s state m e nt f oll o ws:]
7 7 1

S ta te m e nt o f M ar vi n J . B arl o o n 

C a rlt o n P r o f e s s o r o f Ec o n o m ic s 

C as e W es te r n R e se r v e U n i v e r sit y, C le v ela n d, O hi o

B e f o re

T H E S U B C O M MI T T E E O N W A T E R R ES O U R C ES

o f

T H E C O M MI T T E E O N P U B LI C W O R KS

U NI T E D S T A T E S S E N AT E

J u n e 1 9, 1 9 7 5

Mr. C hair m a n a n d Me m be rs o f t h e C o m mitte e:

My na m e i s M ar vi n J . B a rl o o n. I a m C a rlt o n P r o f e s s o r o f Ec o n o m ic s a t 

C as e W es te r n R e se r v e U n i v e r sit y i n C le v ela n d, O hi o, i n c h a r g e o f r e s e a r c h 

a n d i n s t r u c ti o n a t t h a t i n s tit u ti o n i n t h e ec o n o m ic s o f t r a n s p o rt a ti o n . I n 

t h i s c a p a c it y , I s u p e r v i s e t h e p r e p a r a ti o n o f d o c t o r a l d i s s e r t a ti o n s a n d h a v e 

p u bli s h e d n u m er o u s a r ti c l e s o n d o m e sti c t r a n s p o rt a ti o n i n p r o f e s si o n a l j o u r n a l s 

a n d g e n e r al r e a d e r s h i p m a g a zi n e s, s u c h a s H a r p e r's M a g azi n e a n d t h e Ne w Y o r k 

Ti m es M a g a zi n e. I h a v e p r e p a r e d s p e c i a l st u d i e s o f t r a n s p o rt a ti o n d e v el o p m e n t 

f o r s t a t e g o v er n m e n ts a n d h a v e a p p e a r e d o n v a ri o u s o c c a si o n s a s a w it n e s s b ef o r e c o m m itte e s o f t h e U nit e d S t a t e s S e n ate a n d t h e H o u se o f R e p r e s e n t ati v e s, 

i n a d d iti o n t o h e a ri n g s o f t h e I n t e r s t a t e C o m m erce C o m mis si o n a n d o t h e r r e g u ­

l a t o r y a g e n ci e s. I h a v e s e r v e d a s c o n s u lt a n t o n t r a n s p o rt a ti o n ec o n o mic s t o 

v a ri o u s c i v i c g r o u p s, tr a d e a s s o c i a ti o n s, a n d p ri v a t e b u si n e s s fir m s. I a m 

li s t e d i n W h o's Wh o i n A m eric a a n d i n A m eric a n Me n a n d W o me n o f S ci e n c e.

I a m a me m b er o f t h e A m eric a n E c o n o mic A s s o ci ati o n a n d o f o t h e r p r o f e s si o n a l

o r g a n i z a ti o n s.
7 7 2

 t h e i n v it a ti o n y o u e xte n d e d me t o a p p e a r b e f o r e y o u t o d a y, y o u a s k e d 

t h a t I d i s c u s s t h e ec o n o m ic b a s i s f o r t h e e v al u ati o n o f n a v i g ati o n p r o j e c t s.

I a m as s u m i n g t h a t y o u r i n t e r e s t i s n ot i n t h e t e c h n i c a liti e s o f e v a l u a ti o n 

b ut r a t h e r i n t h e n a ti o n a l p o li c y o b j e c ti v e s w hi c h s o u n d e v a l u a ti o n s h o ul d 

p r o m ote. T h e p r e s e n t d e cis i o n - m a ki n g m o d el f o r p r o p o se d n a v i g a ti o n p r o j e c t s, 

o f c o u r s e, i s t h e b e n e fit s - c o st a n a l y s i s w hi c h p u r p o rt s t o d ete r m i n e w h et h er 

o f n ot t h e r a ti o o f p r o s p e cti v e p u b li c b e n e fit s o f a p r o j e c t t o t h e p r o j e ct e d 

c o st s w ill b e g r e a t e r t h a n u n it y , t h a t i s , w h et h er o r n ot t h e b e n e fit s pr o m is e 

t o e x ce e d t h e c o s t s. A ll b e n e fit s a n d c o s t s i n t h e r a ti o a r e s t a t e d i n d o ll a r 

a m o u n ts d ete r m i n e d, d i r e c tl y o r i n d i r e c tl y , fr o m g oi n g p ri c e s i n t h e p ri v a t e 

m a r k ets a n d a d j u st e d t o a u nif o r m ti m e b a s i s b y a n i n t e r e s t - d i s c o u n t f a c t o r.

I . DI S R E G A R D B Y T HE B E N E FI T S- C O S T R A TI O O F HI G H- P RI O RI T Y N A TI O N A L O BJ E C TI V E S

P r o p o s e d n a v i g ati o n p r o j e c t s o n t h e U. S. ri v e r s a n d h a r b o r s c a n n ot 

b e p r o p e rl y e v al u at e d w it h o ut t a k i n g i n t o a c c o u nt t h e h a r d r e a l i t i e s o f t h e 

n a ti o n a l s it u a ti o n . I n t h i s r e s p e c t, o u r r e li a n c e o n t h e c o n v e nti o n al b e n e - 

f i t s - c o s t r a ti o h as b ee n s e r v i n g u s b a d l y. T his c o u ntr y i s i n t h e t h r o e s 

o f a v e r y s e v e r e a n d e v i d e n tl y p er m a n e nt c o n s t ri c ti o n i n i t s s u p pl y o f e n e r g y. 

I n c o n si d e r a b l e m e a s u re , b e c a u s e o f t h e e n e r g y s h o rt a g e, o u r ec o n o m y s u f f e r s, 

f o r t h e f i r s t ti m e i n h i s t o r y o n a l a r g e s c a l e, fr o m s e v e r e p ri c e i n f l a ti o n 

ha n d i n h a n d w it h a hi g h l e v e l o f u n e m pl o y m e n t. T he i n a d e q u ate s u p pl y o f 

i n v e st m e nt f u n d s e s s e n ti a l t o r e s t o r a ti o n o f ec o n o m ic h e a lt h a n d re s u m e d 

gr o wt h o n a p e r m a n e ntl y r e s t r i c t e d e n e r g y b a s e i s r e fl e c t e d i n p e r s i s t e n tl y 

hi g h i n t e r e s t r a t e s . T h e s e, i n t u r n , te n d t o p e r p et u at e b ot h t h e i n f l a ti o n 

a n d t h e u n e m pl o y m e n t. We se e m t o be w a r d i n g o f f a m a s si v e a d v e r sit y i n t h e 

i n t e r n a ti o n a l b ala n c e o f pa y m e n ts m ai n l y b y t h e t e n t a ti v e p r o c e s s o f r e c y cli n g 

p e t r o d o ll a r s t o b o rr o w e rs o f d u bi o u s c r e d it st a n d i n g. T h e str e n g t h e n i n g
7 7 3

f A m eri ca n a g ri c u lt u r e, n ota bl y i n r e l ati o n s h i p t o w orl d f o o d d e fic ie n c y, 

a n d t h e r e li e f of d o m esti c p o v e rt y, e s p e ci all y w he n c o n c e ntr ate d i n p a rti c u l a r 

re gi o n s a n d s e ct o r s of t h e p o p ula ti o n, ha ve l o n g be e n p re o c c u p ati o n s of U. S. 

n ati o n al p oli c y.

C o m m ercial n a vi g ati o n o n U. S. ri v e r s a n d h ar b o rs ha s m uc h t o c o ntr i b ute 

t o w ar ds r e li e f o f a n u m ber o f t h e s e pr o ble m s. I t ca n be s h ar pe ne d i n t o a 

m ore e f f e cti v e i n str u m e nt. B ut, t h e b e n e fit s - c o st r a ti o , f o r t h e m o st p a rt, 

te n d s t o dis r e g a r d t h e s e pr o ble m s. T he r a ti o , i n i t s p r e s e nt c o m p o siti o n, 

i s ba se d v er y l a r g el y o n t h e a b str a ct ec o n o mi c c o n ce pt c all e d " n ati o n al 

ec o n o mi c e ffi cie n c y ". T he ec o n o mi c e f fi cie n c y st a n d ar d m ea s u re s ea c h p u bli c 

i n t e r e s t v al u e b y w h at i t w ill s e ll f o r i n t h e m ar ket pla c e a n d dis m is se s 

m o st v al u e s f o r w hic h t h e r e i s n o p ri v at e m ar k et. I n c o r p o ra te d i n t o t h e 

b e n e fits - c o st r a ti o , i t t h u s dis r e g a r d s al m o st i n t h e i r e n tir et y s o me of 

t h e m o st u r g e nt pr o ble m s a n d pr o g ra m s n o w o n t h e n ati o n al a g e n da.

O n t h e ec o n o mi c e f fi cie n c y sta n d a r d, t h e b e n e fit s - c o st a n al y sis as s u m es 

a f u ll e m pl o y m e nt ec o n o m y wit h n o i n fl a ti o n , a n d o n a n y ot h e r a ss u m pti o n, 

i t s fi n di n g s are I n v ali d. T he i m p r o p ri et y t o o ur p r e s e nt sit u a ti o n i s o b vi o u s. 

T he m o st p e r v a si v e d e f e ct of t h e sta n d a r d, h o w e v er, i s t h at i t ta k e s f o r g ra nte d 

t h a t a ll d o lla r s a r e e q u al. L et me p re s e nt s o me h y p ot h eti c al ill u s t r a ti o n s 

o f t h e c o ns e q ue nt dis r e g a r d b y ec o n o mic e f fi cie n c y of s o ci al v al u e s, i nc o m e 

d i st ri b u ti o n , a g ri c u lt u r e, t h e e n er g y s u p pl y , a n d t h e b ala n c e o f pa y m e nts.

T he b e n e fits - c o st r a ti o str u ct u r e d o n ec o n o mic e f fi cie n c y w o ul d w illi n g l y tr a d e 

o f f a q u a rt of mil k t o g et a q u art o f w hi s k y o n t h e p ri n ci p l e t h at t h e w hi s k y

i s w ort h te n ti m es a s m uc h m o ne y a s t h e m il k. T he st a n d ar d w o ul d i n c o r p o r ate
7 7 4

t o t h e e v al u ati o n o f a n a v i g ati o n p r o j e c t t h e b li n d a s s u m pti o n t h a t a d o ll a r

t o a ri c h La s V e g as g a m ble r i s j u s t a s m uc h a p u b li c b e n e fit a s a d o ll a r t o 

a p o o r T e n n e ss e e fa r m e r a n d t h a t a d o ll a r s p e nt o n Ara b g a s o li n e i s n o g r e a t e r 

a c o st t o t h e c o u ntr y t h a n a d o ll a r p ai d t o a W est V ir g i n i a c o al m i n e r.

T h e ec o n o m ic e f fi c i e n c y c r it e r i o n h a s m uc h t o rec o m me n d i t , a n d I d o 

n ot p r o p o s e t h a t i t b e dis p e n s e d w it h. B ut, i t t r e a t s t h e o v e r ri d i n g i s s u e s 

w hic h c o n f r o n t t h e A m eric a n ec o n o m y i n i t s p r e s e n t s it u a ti o n w it h a m i n dle s s 

d i s r e g a r d . I a m a d v o c ati n g, t h e r e f o r e, t h a t t h e s e i s s u e s be i n tr o d u c e d i n 

f u ll m ea s u re i n t o t h e e v a l u a ti o n o f pr o p o se d n a v i g ati o n p r o j e c t s o n o u r ri v e r s 

a n d h a r b o r s a n d t h a t ec o n o m ic e f fi c i e n c y be n o m o re t h a n a n i n fl u e n c e ac c o mp a n yi n g t h e s e l a r g e r c o n s i d e r a ti o n s.

I I . D E C LI N E O F T HE F E D E R A L P R O G R A M O F N A VI G A TI O N D E V E L O P ME NT

I n t h e s t r a i t j a c k e t o f ec o n o m ic e f fi c i e n c y , t h e b e n e fit s - c o s t r a ti o 

i n v it e s a n d h a s i n d u c e d p r o g r e s si v e c u tti n g b a c k i n m o d e r niz ati o n a n d m ai nte n a n c e o f t h e n a v i g ati o n s y ste m . T h e c a t e g o ri e s o f b e n e fit s a n d c o st s a r e 

b ei n g p r o g r e s si v el y n ar r o w e d t o t h o s e w hi c h a r e m or e s t r i c t l y m e a s u re a ble 

i n d e m o n str a ble m ar k et p r i c e s. P r e s s u r e s c o nti n u e f o r a p p li c a ti o n o f i m p li c it 

i n t e r e s t c h a r g e s a g a i n st e a c h p r o j e c t a t r a t e s d ete r m i n e d b y t h e c u r r e n t 

ti g h t m o ne y c o n d iti o n s i n t h e i n v e st m e nt m a r k ets . T h e ec o n o m ic e f fi c i e n c y 

st a n d a r d i n v it e s p r o p o s al s t o j u s t i f y ea c h n a v i g ati o n p r o j e c t w it h e x cl u si v e 

r e f e r e n c e t o w hat i m m e dia te, d i r e c t, a n d i d e n ti fi a b l e b e n e fi c i a ri e s w o ul d 

b e w illi n g t o pa y f o r t h e p r o j e c t i n t h e f o r m o f u s e r c h a r g e s, a c o n c e pt w hi c h 

di s m i s s e s a s i r r e l v a n t m ost o f t h e p u b li c p o li c y c o n c e r n s w hic h I h a v e na me d 

p r e v i o u sl y o n t h e gr o u n d t h a t t h e s e a r e n ot c o m m erc ia ll y s a l e a b l e.
7 7 5

T he pa rsi m o ni o u s a ttit u d e r e fl e ct e d i n t h e s e p r o p o sa ls w o ul d be q uit e

u n d ers ta n d a ble i f t h e r e we re e v i d e n ce t h at f e d e r al e x p e n dit u re s o n n a vi g ati o n we re g ett i n g o ut o f ha n d. Were s u c h e x p e n dit u re s ri si n g i n t o t h e ra n g e 

o f pr es u m a ble e xtr a v a g a n c e, r e s t r a i n t, of c o u rs e, w o ul d be c l e a rl y i n dic ate d. 

B ut, t h e f a ct s a re e x a ctl y t h e c o ntr a r y. O ver t h e p a st te n y e a r s, t h e r e al

n ati o n al pr o d u ct ha s be e n ri si n g a n d t h e de ma n d f o r w ate r tr a n s p o rta ti o n

ha s be e n g oi n g u p w it h i t . B ut, r at h e r t h a n e x pa n d i n g a p p r o p ri ati o n s f o r 

n a vi g ati o n i n pa ce wit h t h e gr o wi n g ec o n o m y, t h e f e d e r al g o ver n me nt ha s be e n 

p r o g r e s si v el y re d u ci n g t he m.

T he te n - y e a r p e ri o d, 1 9 6 4 t o 1 9 7 4, was o n e of v er y s u b st a n ti al ec o n o mic 

gr o w t h i n t h i s c o u ntr y. B ut, d u ri n g t h i s p e ri o d, f e d e r al a p p r o p ri ati o n s f o r

ne w w or k o n ri v e r a n d h ar b o r n a vi g ati o n p r o j e cts u n d er t h e a u s pic e s of t h e

U. S. Ar my C o r p s of E n gi n e er s a ct u all y d e cli n e d b y 1 2 p e r c e nt. T he re c o r d , 

h o w e v er, i s e v e n m ore s t a rtli n g w he n o n e c o n si d ers t h e d r a sti c i n c r e a s e i n

c o n str u cti o n c o sts d u ri n g t h i s p e ri o d. O b vi o u sl y, t h e d e cli n e i n a ct u al 

p h y sic al w or k c o m pl et e d was m uc h m or e t h a n 1 2 p e r c e nt. Re m o vi n g t h e e f f e ct 

of i n fl a ti o n o n re p o rt e d fi g u r e s, t h e Gr o ss N ati o n al P r o d u ct, st ate d i n d o lla r s 

o f c o n sta nt p u rc h a si n g p o we r, i n c r e a s e d fr o m 1 9 6 4 t o 1 9 7 4 b y 4 2. 2 p e r c e nt. 

Me a n w hile f e d e r al a p p r o p ria ti o n s f o r ne w w or k o n n a vi g ati o n, als o st ate d i n 

c o n sta nt d o ll a r s, we nt d o w n b y 4 9. 8 p e rc e nt — a r e d u cti o n b y j u st a b o ut

o n e - h alf se r v i n g a n ati o n al ec o n o m y 4 2. 2 p e rc e nt bi g g e r.

C h art s I a n d I I, a p pe n d e d t o t h i s st ate m e nt, p r e s e nt t h e a ct u al y e a rt o - y e a r re c o r d o f f e d e r al a p p r o p ria ti o n s f o r ne w n a vi g ati o n w or k d uri n g t h e 

p a st te n y e a r s, b ot h i n c u rr e nt d o ll a r s a n d i n d o lla r s of c o n sta nt p urc h a si n g

p o we r.
7 7 6

s u s p e ct, Mr. C h ai r m a n, t h a t y o u r C o m mitte e i s b ei n g d el u g e d i n t h e 

c o u r s e o f t h e s e h e a ri n g s w it h a c o m pl e x m as s o f c o n fli c ti n g p a rti c u l a r s

a s t o p r o j e c t e v al u ati o n — t h e t r a n s p o rt a ti o n c h a r g e s w hi c h s h o ul d be 

u se d i n d ete r m i n i n g f r e i g h t s a v i n g s, t h e m et h o d s of p r o j e c ti n g f u t u r e t r a f f i c 

v ol u m e s, t h e r o l e o f p ri m a r y a s o p p os e d t o s o - c a ll e d se c o n d a r y b e n e f it s, 

t h e p r o p e r c r it e r i o n f o r t h e i n t e r e s t - d i s c o u n t r a t e , a n d t h e li k e .

. I s u s p e c t, a l s o , t h a t m uc h a tt e n ti o n i s b ei n g gi v e n t o p a rti c u l a r 

n a v i g ati o n p r o j e c t s a n d pr o gr a m s — t h e o b s ole s c e n c e of t h e I l li n o i s R i v e r

s y st e m a n d i t s c o n n e cti o n s w it h La ke M ic hi g a n a t C hic a g o, t h e b o ttl e n e c k 

o f t h e I n n e r H ar b or N a vi g ati o n C a n al a t Ne w O rl e a n s, t h e m o u nti n g c o n g e sti o n o f f r e i g h t m o v e m e nts i n t h e M i d dle M i s si s si p p i, a n d s o f o rt h .

W ha te ve r t h e r e s o l u ti o n o f ea c h o f t h e s e i s s u e s, o n e o v e r ri d i n g f a c t 

sta n d s b e f o r e u s. T h e f e d e r a l g o v er n m e n t i s n o w w ell al o n g i n a p r o c e s s 

o f s e m i- w it h d r a w al fr o m i t s l o n g - e st a b li s h e d r o l e i n t h e i m pr o v e m e nt a n d 

m o d e r niz ati o n o f t h e c o u n tr y ’ s ri v e r a n d h a r b o r s y ste m . T h e d ri v e f o r

f u rt h e r c o n s t ri c ti o n i n e v al u ati o n st a n d a r d s i s n ot a m o ve m e nt t o r e t a r d

a s u st ai n e d o r gr o wi n g pr o g ra m. I t i s r a t h e r a m o ve me nt t o gi v e t h e

c o u p de g r a c e t o a n a v i g ati o n pr o g ra m alr e a d y w ell al o n g i n i t s d e c li n e.

As P r o f e s s o r A rt h u r M aa ss o f H ar v ar d U n i v e r sit y s a i d i n h i s sta te m e nt

t o t h e U. S. S e n ate C o m mitte e o n G o ve r n m e nt O p e r ati o n s i n F e b r u a r y , 1 9 7 4 :

" T he n a v i g ati o n s y ste m , f o r e x a m ple, h a s i n m y vie w f a ll e n 

w o e f ull y b e hi n d n a ti o n a l n ee d s i n r e c e n t y e a r s. T he p r e s e n t 

e n er g y c r i s i s i s o nl y a n ill u s t r a ti o n o f t h i s . We p r o b a bl y 

s h o ul d h a v e b e tt e r f a c i l i t i e s f o r t r a n s p o rti n g p etr ole u m 

p r o d u ct s, c o a l, a n d o t h e r c o m m o ditie s o n t h e i n l a n d a n d c o a st a l 

w ate r w a y s. I n a l l li k e li h o o d a d v e r s e e n vir o n m e nta l e f f e c t s 

o f w ate r t r a n s p o rt a ti o n a r e l e s s t h a n t h o s e o f m o vi n g t h e m ate ri a l s b y hi g h w a y a n d t r u c k . Y et t h e n a v i g ati o n pr o gra m h a s n ot 

b ee n e x a m i n e d s e ri o u s l y i n t h i s c o n t e x t. I t h a s be e n i n t h e 

E x e c u ti v e's d o g h o u s e."
7 7 7

T he e r p le xi n g a n d c o n tr o v e r si al t e c h n i c a liti e s of e v al u ati o n a ll 

a d d u p t o a v er y si m pl e p oli c y q u e sti o n: S h o ul d t h e f e d e r al g o ver n me nt 

c o nti n u e t h e p r o c e ss of p r o g r e s si v e wit h dra w al fr o m ri v e r a n d h ar b or 

m o d er n iz ati o n, s h o u l d i t s t a b ili z e t h e pr o g ra m a n d c o nti n u e a t t h e p re s e nt 

re d u ce d p a ce , o r s h o ul d t h e g o ve r n m e nt r et u r n t o a sta n d ar d o f p r o g re s s w hic h 

p r e v ail e d i n e a rli e r y e ars ? O nce t h i s q u e sti o n i s a n s w er e d, ea c h o f t h e

d e t a il s w ill f a ll i n t o it s a p p r o p ria te pla c e.

I I I. N A T U R A L R E S O U R C E R O L E OF B UL K F R EI G H T T R A NS P O R T A TI O N

M ost o f t h e pr o ble m a r e a s r e l a ti n g t o w ate r tr a n s p o rt ati o n ha ve t o d o 

wit h t h e s u p pl y of n at u r al r e s o u r c e s, a n d t h e de ma n d o f a gr o wi n g ec o n o m y

o n t h e n a ti o n's re s o u rc e s w ill be a c e n tr al c o nc er n o f p u bli c p oli c y d uri n g 

t h e c o mi n g g e n e r ati o n. A cc or di n g t o p o p ula ti o n p r o j e cti o n s of t h e U. S.

B u rea u of t h e C e n s u s, a n d as s u mi n g a m o de st gr o w t h r a t e i n G NP o f o n l y 3. 5 

p e rc e nt p er y e a r, t h e G NP o f t h e U nite d S ta te s i n t h e y e ar 2 0 0 0, at 1 9 7 4 

p ri c e l e v e l s, w il l a p pr o xi m at e $ 3, 3 0 0 b illi o n , a n d t h e G NP p er c a p it a w ill be 

a b o ut $ 1 2, 0 0 0 w ort h o f g o o d s a n d s e r v ic e s — cl o s e t o t w ic e t h e p r e s e nt le v el - 

t o be pr o d uc e d e v er y y e ar f o r e v er y p er s o n i n t h e c o u ntr y. T his v i rt u a l d o u bli n g o f t h e r e al i nc o me p er p ers o n f o r a ri si n g p o p ula ti o n d u ri n g t h e n e xt 

2 5 y e ars w ill c a ll f o r a n e n o r m o u s i n c r e a s e i n t h e p h y sic al v ol u me o f m ate ria ls 

a n d f u els e xtr a cte d fr o m t h e la n d a n d tr a n s p o rta te d o v er l o n g dis ta n c e s t o 

m aj or m ar k et s a n d c o ns u mi n g p o p ula ti o n c e n t e r s. C o st s of e x tr a cti o n a n d 

p r e p a r ati o n, p a rti c u l a rl y o f m i n e r als , w ill i n e v it a b l y ri s e .

I n t h e fa ce of t h i s p r o s p e ct, i t i s i m p ort a nt t o gi v e ma xi mu m e n c o ur a g eme nt t o t h o se m o des o f tr a n s p o rta ti o n w hic h p o ss e ss d i s ti n c t a n d i n h e re nt 

a d v a n ta g es f o r n at u r al re s o u rc e a c c e s s a n d d i st ri b u ti o n . T hi s mea n s bi g -
7 7 8

v o l um e b ul k h a ula g e, n ota bl y b y u n it t r a i n s , p i p e li n e s, hi g h -t o n n a g e t a n k e r s, 

a n d b ul k c a r r i e r s , e a c h i n i t s m ost e f f i c i e n t r o l e . I t m ea ns, a l s o , a n d m ost 

e m p h ati c all y, s h a ll o w - d r a ft b ul k h a ula g e o n t h e i n la n d ri v e r s a n d c a n a l s.

T h es e a r e a l l l o w - c o st m o des o f t r a n s p o rt a ti o n . P ri o r t o t h e f u el c r u n c h, 

t h e o ce a n a n d la k e c a r r i e r s w er e m o vi n g c a r g o a t 2 m ill s p e r t o n - m il e o r 

l e s s ; p i p e li n e s a n d b a r g e li n e s a v e r a g e d a b o ut 3 m ill s. H i g h -t o n n a g e u n it 

t r a i n r a t e s v a ri e d fr o m 5 t o 1 0 m ill s. Wit h s h a r p l y ri s i n g f u e l c o s t s, t h e s e 

c h a r g e s a r e a l l hi g h e r n o w, b ut t h e r e l a ti o n s h i p s a r e n ’ t c h a n gi n g m u c h.

I n t h i s c o n t e x t, t h e U. S. i n la n d w ate r w a y s c o n s tit u t e a ki n d o f s u r f a c e 

p i p e li n e s y ste m , b ut m uc h m o re v e r s a til e a n d f l e x i b l e t h a n t h e u n d er g r o u n d 

v a ri e t y . W at er c a r r i e r c h a r g e s a r e o nl y a b o ut o n e -t h ir d t o o n e - h alf t h o s e 

o f t y p i c a l u n it t r a i n r a t e s . I n d i v i d u a l b ul k s h i p m e nts a r e m ea s u re d i n t h e 

t h o u s a n d s of t o n s; s hi p m e nts o f 2 0, 0 0 0 t o n s e a c h a r e n ot u n u s u al. T h e s e r v i c e 

c h a r a c t e r i s ti c s o f ri v e r b a r gi n g a r e s u it a b l e t o a n y b ul k c o m m o dit y w hi c h 

ca n be a ss e m ble d f o r m o ve m e nt i n t h e s e l a r g e t o n n a g e s. C o ntr a r y t o p o p ula r 

s u p p o siti o n, s h a ll o w - d r a ft b a r g e t r a n s p o rt a ti o n i s n ot li m it e d t o l o w - v al u e d 

c o m m o ditie s. T h e e n or m o u s w ate r b o r n e m o v e m e nts o f s u c h hi g h - v al u e d p r o d u cts 

a s g a s o li n e, fi n i s h e d s t e e l, a n d b ul k c h e m ic als t e s ti f y t o t h i s .

B ec a u se o f t h e s e c h a r a c t e r i s ti c s o f r i v e r b a r g i n g, i t i s i n h e r e n tl y 

n a t u r a l r e s o u r c e o ri e n t e d . I n 1 9 7 3 t h e u n p r o c e s s e d p r o d u cts of f o r e s t s, 

fa r m s, a n d mi n es (i n c l u d i n g o il w ell s ) c o n s tit u t e d 6 0 p e r c e nt o f t h e t o t a l 

i n la n d w ate r b o r n e t o n n a g e. P r o d u cts w hi c h ha d u n d er g o n e i n i t i a l p r o c e s si n g, 

s u c h a s g a s o li n e, ir o n a n d s t e e l, a n d b ul k c h e m ic als , c o n s tit u t e d a n o t h e r 

3 2. 7 p e r c e n t. I nla n d w ate r t r a n s p o rt a ti o n t h u s o c c u pie s a p r e e m i n e ntl y 

n a t u r a l r e s o r c e r o l e , l o w er i n i t s c h a r g e s t h a n b ul k c a r ri a g e o n t h e r a i l ­

r o a d s a n d i n c o m p ara bl y m or e v e r s a til e t h a n t h e l o w - c o st p i p e li n e.

5 4 - 2 3 9 O - 7 5 - S O
7 7 9

I V. A T E R T R A NS P O R T A TI O N E C O N O M Y A N D C O NS U ME R P RI C ES

I t i s o fte n a s s e rt e d t h at t h e l o w c o st o f w ate r tr a n s p o rta ti o n d o es 

n ot g et t h r o u g h t o t h e A m eri ca n c o ns u m er, t h at t h e s hi p p e rs b y w ate r a re

m o stl y bi g n o n -c o m p etiti v e c o r p o ra ti o n s, a n d t h at t h e sa vi n g s g o m ai nl y t o li n e 

t h e c o r p o ra te c o f f e r s. E vi de nc e d o es n ot s u p p o rt t h i s s u p p o siti o n.

Ri v er b a r g i n g, of c o u rs e, i s i n h e r e ntl y a s m all b u si n e ss o p e r ati o n, r e ­

q uir i n g r e l a ti v e l y l i t t l e e q uit y c a p it a l, a n d c h a r a cte riz e d b y ea se of e ntr y 

a n d i n te n s e c o m p etiti o n. D u ri n g t h e i n fl a ti o n a r y y e a rs o f t h e 1 9 6 0's w it h t h e 

de ma n d f o r ri v e r b ar g i n g gr o wi n g v er y r a p i d l y, t h e a v er a g e c h ar ge p er t o n - m il e 

o f t h e I C C -r e g ulate d b ar g e li n e s o n t h e M is sis si p pi Ri v er a n d i t s t ri b u t a ri e s 

a ct u all y d e cli n e d b y a b o ut 1 7 p e r c e nt. T hi s h e alt h y tr e n d, of c o u rs e, ha s be e n 

te r m i n ate d b y t h e c u rr e nt hi g h c o st of f u e l, b ut i t le a v e s l i t t l e d o u bt as t o 

t h e i n te n s el y c o m p etiti v e n at u r e of ri v e r tr a n s p o rt a ti o n. U nli k e t h e r a ilr o a d 

o r p i p eli n e c a r ri e r, w hic h ha s e x cl u si v e a c c e s s t o i t s o w n ri g ht- o f- w a y, t h e 

w at er c a r ri e r s m u st c o m p ete wit h ea c h o t h e r, m o stl y o uts i d e o f I C C r e g u la ti o n,

i n t h e sa me st re a m o f t r a f f i c .

T ur ni n g t o s hi p p e r s, la r g e a n d s m all, w h o p atr o niz e t h e s e c a r ri e r s, p a rti ­

c ula r c o m m o dit y m o v e me nts a re w o rt h y of a tt e n ti o n . O ne i s t h e e n o r m o us w ate rb o r n e m o ve me nt of bit u mi n o u s c o al a n d f u el o il t o e l e c t ri c u t il i ti e s . I n r e ­

c e nt m o nt h s, t h e A m eri ca n ne ws pa pe r re a d e r ha s bec o m e a c ute l y c o n sc i o u s of t h e 

e l e c t ri c u tilit y f u el a dj u st m e nt cla u se as a n e x pla n ati o n of his ri si n g e l e c t ri c 

b ill s . T hi s cla u se p r o vi d e s t h at i n c r e a s e s i n t h e c o st of c o al a n d f u el o il 

d eli v e re d at t h e g e n e ra ti n g st a ti o n , i n cl u di n g tr a n s p o rta ti o n c o st, ma y be tr a n s ­

m itte d pr o m ptl y i n t o hi g h er kil o w att - h o u r c h ar g e s t o t h e c o ns u m er. T he re i s 

l i t t l e d o u b t t h at ec o n o m ic al b ul k tr a n s p o rta ti o n b y w at er ha s l o n g e x e r cis e d
7 8 0

i o

e st r a i n t o n h o us e h ol d a n d i n d u stri a l u tilit y b ill s via t h e f u el a dj u st m e nt

cla u se a n d t h at i t w ill c o nti n u e t o d o s o.

I n 1 9 7 3, ri v e r b ar g e s c a rrie d o v er 1. 1 b illi o n b u s h els of far m c r o p s.

T his m o ve me nt re p re s e nte d a far m v al u e of s o me $ 3. 8 b illi o n , a s u b st a n ti al 

p o rti o n of t h e n a ti o n's far m cr o p m ar k eti n g s. T he m ar k eti n g of far m c r o p s, 

tr a d e d as t h e y a r e i n o p e n m ar k ets, i s i nte n s el y c o m p etiti v e, s o t h at a ll t h e 

tr a n s p o rta ti o n sa vi n g s a re tr a n s m it te d i n t o hi g h er i nc o me a t t h e fa r m, a n d, i n 

d o m esti c m ar k eti n g s, i n t o l o w er f o o d c o sts t o t h e c o ns u me r.

Wit h re g ar d t o tr a n s p o rta ti o n o f p et r o le u m p r o d u cts b y w ate r, n ota bl y of 

g a s oli n e a n d f u el oil « t h e m o de o f f e r s p a rti c u l a r a d v a n ta g es t o s m all d i st ri b u ­

t o r s a n d m a r k ete rs, i n cl u di n g far m c o o p e r ati v e s, w h o la c k t h e c o nti n u o u s p o i n tt o - p oi n t v ol u me t o p a rti c i p a t e i n p i p eli n e o p e r ati o n s. F o r t h i s re a s o n, ri v e r 

b ar g i n g ha s o fte n be e n r e f e rr e d t o as "t h e p o or m a n's pi p eli n e ". T h es e s m all 

o p e r at o r s c o ntr i b ute a w h oles o me el e m e nt of vi g o r o u s c o m p etiti o n i n t h e 

m ar k eti n g o f p et r o le u m p r o d u cts, a n d pr o d u ct p ri c e s i n t h e r e gi o n s t h e y se r v e 

r e fl e c t t h i s el e m e nt o f l o w er c h ar g es t o m o t o ri st s, tr u c k e r s, u t il i ti e s , a n d

fa r m ers.

T he st e e l i n d u str y, of c o u rs e, i s als o a bi g water w a y s s hi p p e r. Ste el ha s 

l o n g be e n t h e f a v o rit e w hi p pi n g b o y of w h os e w h o a r e c o nc er ne d a b o ut i n a d e q u ate 

c o m p etiti o n i n A m eri ca n i n d u str y. Y et, t h i s i n d u str y s hi p s h u n d re ds of m il li o n

o f d o lla r s w ort h of fi n is h e d st e el fr o m t h e u p pe r O hi o a n d M is sis si p pi b a si n s 

t o d o m esti c c o ns u m er s o n t h e G ulf C o ast ea c h y e ar (a b o ut 3 7 7 m illi o n d o lla r s 

w ort h i n 1 9 7 3) I n d ir e c t c o m p etiti o n wit h v er y la r g e c o a sta l i m p ort s fr o m Ja pa n 

a n d t h e C o m mo n M ar ket, a cle a r ca se o f d ir e c t p ric e c o m p etiti o n.

Si m il ar o b s e r v ati o n s mi g ht be ma de wit h r e s p e ct t o ot h e r w at er b or n e m o vem e nts, a n d o ne m u st c o n cl u d e t h at t h e i n d ic ati o n s a r e q uit e st r o n g t h at t h e

sa vi n g s o f w at er tr a n s p o rta ti o n a re wi d el y tr a n s m it te d i n t o t h e c o n s u m er m ar k et s.
7 8 1

l i

V . H I G H P R I O R I T Y , W A T E R - R E L A T E D P O L I C Y ‘A R E A S

P e r m i t m e t o t u r n n o w , M r . C h a i r m a n t o t h e p a r t i c u l a r n a t i o n a l p r o b l e m s

w h i c h o c c u p y a h i g h p r i o r i t y i n f e d e r a l p o l i c y a n d t o w h i c h I r e f e r r e d e a r l i e r 

i n t h i s s t a t e m e n t a s r e l a t e d t o w a t e r t r a n s p o r t a t i o n . T h o s e I s h o u l d 

l i k e t o d i s c u s s p a r t i c u l a r l y a r e ( 1 ) e n e r g y s u p p l y , ( 2) a g r i c u l t u r e , ( 3) 

i n v e s t m e n t c o n s e r v a t i o n , ( 4) t h e b a l a n c e o f p a y m e n t s , ( 5 ) p r i c e i n f l a t i o n , 

a n d ( 6 ) u n e m p l o y m e n t . I s h o u l d a l s o l i k e t o c o m m e n t , i f I m a y , o n t h e r e l a ­

t i o n s h i p b e t w e e n r a i l a n d w a t e r t r a n s p o r t a t i o n .

E n e r g y S u p p l y

T h e i n l a n d w a t e r w a y s a n d c o a s t a l a n d l a k e h a r b o r s o f t h e U n i t e d S t a t e s 

p l a y a c r i t i c a l r o l e i n t h e e n e r g y s u p p l y , a n d t h e i r r o l e i s a g r o w i n g o n e . 

B e c a u s e t h e p r i n c i p a l i s s u e s a s t o t h e e v a l u a t i o n o f n a v i g a t i o n p r o j e c t s

r e l a t e t o t h e i n l a n d w a t e r w a y s , h o w e v e r , I s h a l l g i v e p r i n c i p a l a t t e n t i o n 

t o t h i s s e c t o r . O u r i n l a n d w a t e r w a y s p l a y a n i m p o r t a n t r o l e i n t h e n a t i o n a l 

e n e r g y s u p p l y , a n d t h e i r r o l e i s a g r o w i n g o n e . I n 1 9 7 3 , 5 6 . 1 p e r c e n t o f

t h e t o t a l t o n n a g e c a r r i e d i n s h a l l o w - d r a f t d o m e s t i c w a t e r t r a n s p o r t a t i o n 

c o n s i s t e d o f b i t u m i n o u s c o a l , c r u d e o i l , a n d p e t r o l e u m p r o d u c t s . A n a d d i ­

t i o n a l 6 . 2 p e r c e n t c o n s i s t e d o f c h e m i c a l s , p r i n c i p a l l y p e t r o c h e m i c a l p r o d u c t s 

o f t h e U . S . r e f i n i n g i n d u s t r y . I n c o n s i d e r a b l e m e a s u r e , t h e U . S . i n l a n d

w a t e r w a y s c o n s t i t u t e a h i g h - e f f i c i e n c y e n e r g y d i s t r i b u t i o n s y s t e m . T h e y 

t r a n s p o r t t h e s e e n e r g y f o r m s a t a c o s t a n d w i t h a f l e x i b i l i t y n o o t h e r m o d e 

o f t r a n s p o r t a t i o n c a n m a t c h .

L o n g - H a u l W a t e r b o r n e C o a l . A c e n t r a l t h r u s t o f U . S . e n e r g y p o l i c y ,

o f c o u r s e , i s d i r e c t e d a t i n c r e a s e d u s e o f d o m e s t i c c o a l t o m i n i m i z e d e p e n d ­

e n c e o n u n r e l i a b l e f o r e i g n s o u r c e s o f a l t e r n a t i v e f u e l s . W e h a v e e n o u g h
7 8 2

1 2

i g h q u ali t y bit u m i n o u s c o al i n t h i s c o u ntr y t o me et o ur e n er g y ne e d s f o r 

g e n e r ati o n s.

O ne o f t h e d i f fi c u lti e s wit h r e s p e ct t o t h e us e o f c o al, h o w e v er, i s 

hi g h tr a n s p o rta ti o n c o st. I n la n d w ate r tr a n s p o rta ti o n i s g oi n g f a r t o w ar ds 

s o l u ti o n o f t h i s pr o ble m. I n s p it e of t h e e xte n si v e de vel o p m e nt o f u nit 

t r a i n s i n re c e nt y e a r s, t h e N ati o n al C oal A s s o cia ti o n r e p o rt s t h at r ail r o a d 

re ve n u e p er t o n o f c o al c a r ri e d i n 1 9 7 3, a t $ 3. 7 9, was 4 5 p e rc e nt of t h e mi n e 

v al u e. A b o ut 8 0 p e rc e nt o f a ll t h e bit u mi n o u s c o al i n t h e c o u ntr y i s mi n e d 

i n t h e b a si n of t h e O hi o Ri v er a n d i n s o ut h er n I lli n o i s , a n d g ett i n g i t o ut

t o d i st a n t c o n s u mi n g c e nte r s i s a c r iti c a l pr o ble m. Si m il a r o b se r v ati o n s

a p pl y t o w es te r n c o als w hic h a r e i n gr o wi n g de ma n d b ec a u se o f t h e i r l o w s u l p h u r

c o n te n t.

Ri v er b ar g i n g o f f e r s r e a d il y a v ail a ble r e li e f. M ost of t h e e l e c t ri c 

e n er g y pr o d uc e d i n t h e C hica g o a re a a n d s o ut h er n M i n n es ota, i n cl u di n g 

M i n n ea p oli s a n d St. P a ul, i s alr e a d y g e n er at e d b y w ate r b or n e c o al fr o m 

s o ut h er n Illi n o i s a n d t h e O hi o Ri v er B asi n. T he sa me i s tr u e of Me m p his,

T e n n es se e, a n d, i n e v er - g r o wi n g t o n n a g es, i n c o m m u niti es al o n g t h e G ulf

C o a st. T he e l e c t ri c it y s u p pl y of s u c h c iti e s a s M o b ile, Al a ba ma, a n d Ta m pa, 

Fl o ri d a, f o r e x a m pl e, i s d eri v e d i n la r g e a n d gr o wi n g m ea s u re fr o m w at er b or n e

O hi o B asi n c o al br o u g ht d o w n t h e O hi o a n d M is sis si p pi Ri v er s a n d via t h e

G ulf I n tr a c o a sta l Wate r wa y a n d t h e G ulf of Me xic o. T he s h all o w - d r a ft w ate rwa y dis ta n c e fr o m t h e O hi o Ri v er c o al mi ni n g a r e a t o M o bile i s o v er 1, 3 0 0

m il e s.
7 8 3

1 3

at er b o r n e C o al a n d Hi g h- V olt a g e T ra n s m is si o n. T he e n er g y of w at er b or n e 

O hi o B asi n c o al i s pr o vi d e d t o d i st a n t r e gi o n s, n ot o nl y b y l o n g - h a ul w ate r 

c a r ri a g e, b ut als o b y hi g h - v olt a g e tr a n s m is si o n. Be ca us e o f t h e a b u n da nc e 

of c o al i n t h e B as i n, t h e e l e c t ri c u tilit y i n d u str y o n t h e ba n k s of t h e O hi o 

Ri v er a n d i t s n a vi g a ble t ri b u t a ri e s ha s de vel o pe d a c a p a cit y s u b st a n ti a ll y 

i n e x ce ss o f t h e r e gi o n al de m a n d. I n t h e c e n tr al a n d u p pe r O hi o V alle y t h i s 

c a p a cit y a p pr o x i m at e d 1 7, 0 0 0 m e g a w atts i n t h e e a rl y 1 9 7 0 ’ s, i n c o n tr a st t o 

t h e t o t a l pe a k de ma n d of t h e l o a d se r v e d l o c all y of o nl y 5, 0 0 0 m e g a w atts.

T hi s l e f t a c a p a cit y o f 1 2, 0 0 0 m e g a w atts a v ail a b le f o r re m ot e l o a d a r e a s.

M ost o f t h e e l e c t ri c it y g e n era te d fr o m t h i a c a p a cit y i s pr o d uc e d fr o m w ate rb o r n e c o al, b r o u g ht, i n n u me r o u s i n st a n c e s, f o r r e l a ti v e l y l o n g dis ta n c e s 

fr o m B asi n mi ni n g a r e a s.

T he e x ce ss c a p a cit y i s a s s o cia te d w it h a c o m pr e h e n si ve s y st e m o f i n t e r ­

c h a n ge tr a n s m is si o n li n e s e xte n di n g t h r o u g h o ut t h e n o rt h e a st q u a d ra nt of 

t h e U nit e d S t a t e s. O ne la r g e O hi o V all e y u tilit y r e p o rts i n te r c o n n e cti o n s 

wit h 2 3 ot h e r c o m p a nies wit h s e r v i c e a r e a s l y i n g i n 1 0 st a t e s o f t h e N ort h ­

e a st.

O n t h e b a sis o f t h i s l o g i s ti c a l s y st e m , e l e c t ri c p o w er fr o m w at er b or n e 

c o al o n t h e O hi o Ri v er ha s be e n p r o vi d e d t o a v e rt s h o rt a g e s a n d bla c k o uts 

i n n u m er o u s d i st a n t c iti e s , i n cl u di n g, f o r e x a m pl e, Ne w Y or k, C hi ca g o, 

D etr o it, a n d R o a n o ke, V ir gi n ia . T he r e gi o n al i n d u str y t h u s o p e r ate s s o mew h at i n t h e ma n ne r o f a c e n tr al p o w er ba n k, wit h r e s e r v e s a v ail a b l e f o r 

t h e r e li e f o f s h o rt a g e s i n v a ri o u s d i st a n t re gi o n s. T he p o w er ba n k r e s t s, 

i n s u b st a n ti a l m ea s u re, o n t h e w ate r b or n e tr a n s p o rta ti o n of O hi o B asi n c o al.
7 8 4

1 4

L o n g- Ha ul R ail - W at er I n te rc h a n g e. T he p o t e n ti al s of w at er b or n e c o al ai;e

h ei g hte n e d b y t h e gr o wi n g i n te rc h a n g e wit h r a ilr o a d m o v e me nt, p a rti c u l a rl y via 

u n it t r a i n s. T hi s i s n o w ta ki n g pla c e o n a gr o wi n g s c ale i n t h e pr o gr a m m e d 

u nit t r a i n m o ve me nt of l o w s u l p h u r c o als fr o m W y o mi n g a n d ot h e r w e st er n o ri ­

gi n s via t h e B u rli n gt o n N ort h er n R ail r o a d t o b ar g i n g te r m i n als i n t h e St. L o u is

are a a n d o n t h e l o w er O hi o Ri v er. Fr o m t h e s e te r m i n als , t h e c o al i s t o be

ba r g e d t o g e n e ra ti n g st a ti o n s t h r o u g h o ut t h e M is sis si p pi a n d O hi o Ri v er s y st e m s, 

re a c hi n g as f a r as t h e Ka na w ha Ri v er i n West V ir gi n ia . A n ot h er r ail- w ate r 

i n te rc h a n g e w ill h a n dle l o w -s ul p h ur c o al o ri g i n ati n g b y u nit t r a i n o n t h e L o uis ­

v ill e 4 N a s h ville R ail r o a d i n e a ste r n Ke nt u c k y f o r tr a n ss hi p m e nt b y w ate r o n t h e

O hi o Ri v er a b o u t 6 0 m il e s a b o ve L o u is v il le . T h es e te r m i n als a re b ei n g b u ilt f o r

c a p a citie s i n t h e a g g re g ate ra n g e of s o me 1 5 t o 2 0 m illi o n t o n s a y e a r. As a

m ea s ure of m a g nit u d e, t h e l o we r of t h e s e fi g u r e s a p pr o xi m at es t h e 1 9 7 3 t o n n a g e 

of c o al c o ns u me d b y t h e C o m m o n wealt h E di s o n C o m pa n y of C hi ca g o, p r o vi d i n g m o st 

of n o rt h er n Illi n o i s wit h e l e c t ri c e n er g y. W ate r tr a n s p o rta ti o n, wit h a p p r o p ri ­

ate u nit t r a i n li n k a g e s, i s cle a rl y of t h e hi g h e st pr o m is e i n t h e e x pa n d e d u ti ­

li z a ti o n o f bit u mi n o u s c o al as a r e s t r a i n t o n p et r o le u m i m p ort s.

D is tr i b u ti o n of Pe tr ol e u m P r o d u cts. T he d i stri b u ti o n o f g a s oli n e a n d ot h e r

pe tr ole u m p r o d u cts b y U. S. r e fi n e ri e s a n d d i stri b u t o r s via t h e i n la n d water w a y s

i s a n e s s e n ti a l r e s t r a i n t o n f u el c o sts t h r o u g h o ut e xte n si v e re gi o n s o f t h e 

c o u ntr y. I n f a c t, t h e v ol u me o f p r o d u cts s o d i stri b u t e d i s r o u g hl y 3 0 p e rc e nt 

o f t h at m o ve d i n a ll p a rts of t h e U nite d S ta te s b y pr o d u ct p i p eli n e s. As a n ­

ot h e r me as ur e o f m a g nit u de, m ost of t h e g a s oli n e c o ns u me d i n s u c h b a si n st a t e s

as West V ir g i n ia , K e nt u c k y, a n d Te n n es se e a r ri v e s i n t h e s e st a t e s v i a ri v e r b ar g e. 

A n u m b er o f p r o d u cts , s u c h as r e si d u al f u el o il, be ca us e o f i n s u f fi ci e n t fl u ­

i d it y , ca n n ot be m o ve d b y pi p eli n e.
7 8 5

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F u el C o n se r v ati o n I n T r a n s p o rt ati o n. W ate r a n d r a il tr a n s p o rta ti o n a re

b ot h n ota ble f o r l o w c o ns u m pti o n of e n er g y i n t h e tr a n s p o rta ti o n f u n cti o n i t ­

s e l f. Dr. W illia m E. M ooz of t h e R A N D C o r p o ra ti o n, o n t h e b a sis of e xte n si v e 

st u d y, r e p o rts e n er g y c o ns u m pti o n p er t o n - m il e o f f r ei g h t c a r ri e d b y r ailr o a d s 

a t a n a v er a g e of 7 5 0 B t u's. Hi s c o rr e s p o n di n g fi g u r e f o r water wa y c a rria g e i s 

o nl y 5 0 0 B t u's. Ot h er st u d ie s c o nfir m t h i s r e l a ti o n s h i p. H o we ver, wit h r e s p e ct 

t o i n di v i d u al f r ei g h t m o v e me nts b y b o t h m o des, t h e r e a r e ma n y v a ria b le s. S u ffi c e i t t o sa y t h at w ate r tr a n s p o rta ti o n i s pr o b a bl y a m o d er at el y l o w er c o n s u m er 

o f e n er g y t h a n r a il c a rri a g e o n ma n y m o ve m e nt s, a n d t h at t h o se f e at u r e s o f b o t h 

m o des w hic h a re c o n d uci v e t o e n er g y c o n s e r v ati o n s h o ul d be e n c o ur a g e d. L o w f u el 

c o ns u m pti o n p er t o n - m il e o f f r ei g h t c a rrie d b y r a il a n d w at er i s , o f c o u rs e, 

a s s o cia te d wit h a l o w le v el of a i r p o ll u ti o n fr o m e x h a u st e m is si o n s.

I n s u m, i t i s d i f f i c u lt t o se e h o w a r a ti o n al a n d e f f e c ti v e e n er g y p oli c y 

ca n be e f f e ct u ate d i n t h e U nit e d S ta te s w it h o ut e m p h asis o n t h e de vel o p m e nt of 

e f fi c i e n t i n la n d w at er tr a n s p o rta ti o n as a c r iti c a l el e m e n t i n t h i s p oli c y.

A g ric ult u r e

I n la n d w ate r tr a n s p o rta ti o n str e n gt h e n s t h e p o siti o n o f U. S. fa n n ers b ot h 

b y r a i si n g t h e r e aliz e d v al u e o f t h e i r p r o d u cts at t h e far m a n d b y re d u ci n g 

far m c o st s. T hi s c o u ntr y i s a bi g e x p o rte r of far m p r o d u cts, a n d t h e tr a n s p o rt ati o n c o st of m o vi n g g r ai n s a n d s o y b ea ns fr o m i n la n d r e gi o n s, e s p e ci all y fr o m 

t h e U p pe r M is sis si p pi B a si n, t o t h e c o a sts i s a v it a l f a ct o r i n far m I nc o m e.

I n e a rl y 1 9 7 5, t h e c h ar g e f o r s h i p pi n g g r ai n s fr o m c e n tr al Illi n o i s t o t h e G ulf 

C oa st b y w ate r a p pr o x i m at e d 1 2 c e nts p er b u s h el. T he 5 4 -c ar u nit t r a i n r a t e 

fr o m c e n tr al I o wa t o t h e G ulf, a b o u t t h e sa me d i st a n c e, ra n g e d fr o m 2 8. 6 c e nts 

t o 3 0. 6 c e nts p er b u s h el. I n a d dit i o n, l o w -c o st w ate r tr a n s p o rta ti o n h as i n ­

d u ce d t h e i ntr o d u cti o n of l o w -r ate r a ilr o a d i n n o v ati o n s, s u c h as t h e Bi g J o h n 

c ar r ate s o f t h e S o ut he r n Rail w a y a n d t h e R e n t- A - T rai n s y st e m o f t h e Illi n o i s
7 8 6

1 6

C e ntr al G ulf R ail r o a d.

M a g nit u d e of G rai n a n d S o y bea n S hi p m e nts. I n 1 9 7 3, t h e s h all o w - d r a ft I n ­

la n d water wa ys of t h e c o u ntr y c a rrie d o v er 1. 1 b illi o n b u s h els of g ra i n s a n d 

s o y b ea ns fr o m i n la n d o ri g i n s t o c o st al p o rts a n d d o m estic c o n s u mi n g m ar k et s.

Of t h i s t o t a l, 7 4. 7 p e rc e nt c o n sis te d of s hi p m e nts fr o m t h e U p pe r M is sis si p pi 

B asi n ( Illi n o i s, U p p er M is sis si p pi, M is s o u ri, a n d O hi o Ri v er o ri g i n s ). T he 

v al u e o f t h e s e s hi p m e nts a t t h e far m e x ce e d e d $ 2. 6 b illi o n , e q ui v ale nt t o 2 9. 2 

p erc e nt of t h e t o t a l far m cr o p m ar k eti n g s of t h e p ri n ci p al g r ai n pr o d u ci n g 

st a t e s o f t h e U p per B asi n ( Illi n o i s, I o w a, M i n n es ota, a n d W is c o n si n). C o nsi d e ri n g t h e la r g e a d d it i o n al s hi p m e nts via t h e St. La w re n ce Sea wa y a n d t h e i mp o rt a nt p o rti o n o f g r ai n m ar k eti n g s c o ns u me d i n t h e re gi o n i n a ni m al f e e di n g, i t 

i s e vi d e nt t h e pr o b a b l y m o st of t h e far m cr o p s hi p m e nts o ut b o u n d fr o m t h e U p pe r

M is sis si p pi B asi n we re c a rri e d b y w ate r. T he C ol u m bia Ri v er li k e w is e se r v e s as

a n i m p ort a n t o u tl e t f o r far m cr o p s fr o m t h e P a cif i c N ort h w est a n d fr o m i n la n d

o ri g i n s ea st w ar d i n t o M o nta na.

E ff e ct o n P ri c e s a t t h e Far m. M ost of t h e b e n e fit of t h e s e w at er b or n e m o veme nts i s tr a n sl a t e d i n t o hi g h er p ric e s at t h e fa r m. T he i n la n d p ric e of g ra i n s

i s i n fl u e n c e d p ri n ci p all y b y t h e c o a sta l e x p o rt p ri c e mi n us tr a n s p o rta ti o n t o 

t h e c o a st. F u rt h er m ore, t h e b e n e fit s a re dif f u s e d t h r o u g h o ut t h e fa r m i n g 

re gi o n s. Be ca us e g r ai n s a n d s o y b ea ns a re f u n gi b le pr o d u cts tr a d e d c o m p etiti v el y 

i n o pe n m ar k ets, t h e a d v a n ta g e o f hi g h er far m p ric e s is c o m m u nic ate d t o a ll far m s 

i n t h e re gi o n, w he t h er t h e i r p r o d u cts a r e s hi p p e d b y w at er or n ot.

S hi p m e nt of P r o c e ss e d A g ric ult u r al P r o d u cts. I n a d diti o n t o g ra i n s a n d 

s o y b ea n s, t h e i n la n d w at er w a y s c arr y la r g e q u a n ti tie s o f p r o d u cts o f t h e pr o ­

c e ss i n g i n d u strie s of t h e far m re gi o n s, i n cl u di n g la r g e t o n n a g es of ta ll o w , ve ge ­

ta b le o il s , w h eat fl o u r a n d se ml n ola, a n d a v a rie t y of g ra i n m il l p r o d u cts. T he 

p r o c e ss i n g e sta bli s h m e nts are c o m m o nl y s m all p l a n t s, d i stri b u t e d i n t h e s m all er 

t o w n s a n d c iti e s of t h e far m a re a s a n d a n I m p ort a n t s o urc e of l o c al i nc o m e.
7 8 7

1 7

Far m F u els a n d S u p pli e s. W hil e e n ha nc i n g far m i n c o m e, water wa y tr a n s ­

p o rt ati o n li k e w is e e x e r cis e s a f a v o ra ble I n fl u e n c e o n fa r m c o st s. 1 ha ve c o mme nte d p re vi o u sl y o n t h e la r g e w at er b or n e m o v e me nts o f f u el o il, g a s oli n e, a n d 

ot h e r p et r o le u m p r o d u cts. T h es e m o ve m e nts, o f c o u rs e, e x e r cis e r e st r a i n t o n 

t h e c o sts o f tr a c t o r f u el a n d ot h e r e n er g y f or m s w hic h pla y s o i m p ort a nt a r ole 

i n m o der n fa r m i n g.

S p e cia l m e nti o n s h o ul d be ma de o f t h e la r g e v ol u m e o f w at er b or n e m o ve me nt 

i n t o t h e far m re gi o n s of c h e m ic al p r o d u cts, i n cl u di n g i n s e c ti c i d e s, h e r bic i d e s, 

a n d c h e m ic al f e r tili z e r s . P h o s p h ati c f e r tili z e r s o ri g i n at e m ai nl y i n Fl o ri d a 

a n d nit r o g e n o u s f e rtili z e r s as a b y- p r o d u ct o f t h e o il r e fi n i n g a n d n at u r al ga s 

i n d u str y, n ota bl y o n t h e c e n tr al a n d w e st er n G ulf C o as t. T r a n s p o rt ati o n t o t h e 

m aj or fa r m i n g a re a s o f t h e U p p er Mi d dl e West i s t h u s a n i m p ort a nt c o n si d e r ati o n 

i n far m c o st. As a n e xa m ple o f t h e i m p ort a n ce of t h i s m o ve m e nt, i n 1 9 7 3, 2 8. 6 

p e rc e nt of a ll t h e c o m m er ci al f e r tili z e r s c o ns u me d i n t h e s t a t e o f Illi n o i s 

we re i n b o u n d v i a t h e c e n tr al M is sis si p pi Ri v er fr o m s o ut h er n o ri g i n s. A r e ­

l ati o n s h i p of si m il a r i m p ort a n ce o bta i n s i n ot h e r fa r m i n g s t a t e s.

Net Far m I nc o m e a n d t h e R ural Ec o n o m y. T he c o m bi n e d e f f e c t o f hi g h er far m

i nc o m es a n d re d u ce d c o sts ha s a p e r v a si v e i n fl u e n c e i n t h e r e gi o n al ec o n o m y.

Net far m i nc o me i s a g o v er ni n g i n fl u e n c e o n la n d v al u e s. T h es e, i n t u r n, 

c o n stit u t e t h e p ri n ci p al b as e o f m ort g a g e c r e d it a n d t h ere b y o f ba n k d e p o sit s 

t h r o u g h o ut t h e re gi o n s. La n d v al u e s li k e w is e c o n stit u t e m uc h of t h e ta x ba se 

f o r t h e fi n a n ci n g o f s t a t e a n d l o c al p u bli c s e r v i c e s. T he re s p e n di n g o f far m 

i n c o m e, i n i t s e l f, of c o u rs e, i s t h e p ri n ci p al s o urc e o f re ve n u e o f l o c al r e t a il 

w h ole sa le, s e r vic e, a n d p r o f e s si o n al a c ti v iti e s. W ate r tr a n s p o rta ti o n i s t h u s

a p e r v a si v e el e m e nt o f str e n g t h i n t h e a g ri c u lt u r a l ec o n o m y.
7 8 8

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n se r v ati o n of I n v est m e n t F u n d s

T he e v al u ati o n of n a vi g ati o n p r oje cts s h o ul d ta k e ac c o u n t als o of t h e 

b e ari n g of water wa y tr a n s p o rta ti o n o n t h e c o u ntr y ’ s li m it e d s u p p l y of c a p it a l. 

T he U. S. ec o n o m y i s n o w b u r d e n e d b y a s e ri o u s n ati o n wi d e s h o rt a g e o f i n v es t m e n t 

f u n d s w hic h pr o m is es t o p e r si st f o r ma n y y e a r s. A 1 9 7 4 st u d y s p o n s o re d b y t h e 

Ne w Y or k St oc k E xc ha n ge p r o j e cts a s h o rt a g e o f s o me $ 6 5 0 b illi o n i n i n v es t m e n t 

c a p it al o v er t h e n e xt 1 0 y e a r s. P r o fe s s o r Pa ul Mc Cra c ke n, f o r m erl y C h air ma n of 

t h e C o u ncil o f Ec o n o mic A d vis ors, a tt ri b u t e s p e r si st e n t u ne m pl o y m e nt i n c o nsi d e r a ble m ea s ure t o i n s u f fi ci e n t c a p a cit y i n ke y i n d u strie s i n w hi c h b ac kl o g s

o f u n fill e d o r d e rs ha ve c o nti n u e d o n t h e b o o k s f o r l o n g p eri o d s w hil e ma n y 

t h o u sa n d s o f e m pl o y ee s we re o u t of w or k.

I n ve st m e n t E ff ic ie n c y o f W at er- B as e d Pla nt L o ca ti o n

I t i s of c r iti c a l i m p o rt a n ce t h at A m eri ca n i n d u str y ma ke t h e m o st e f fi c i e n t 

u se o f t h e li m it e d c a p it a l a v ail a b l e, a n d o pti m u m pla nt l o c ati o n i s c e rt ai n l y a 

ke y el e m e nt i n e f fi cie n c y. T he A m eri ca n Water w a ys O p era t o rs, I n c., r e p o rts a 

t o t a l of 9, 0 3 4 p l a n t s c o n str u cte d at w ate rs i d e l o c ati o n s i n t h e U nit e d S ta te s 

fr o m 1 9 5 2 t h r o u g h 1 9 7 3, r e p re s e nti n g a n e sti m ate d c a p it al i n v es t m e n t o f $ 1 4 9. 3 

b illi o n . A v er y la r g e n u m b er o f t h e s e w ate rs i d e pla nts are s o l o c ate d be ca us e 

w at er tr a n s p o rta ti o n i s a c r iti c a l f a ct o r i n t h e l o g i sti c s of p a rti c u l a r i n ­

d u stri e s.

O ne t h i n k s, f o r e x a m pl e, o f t h e la r g e c h e m ic al c o m ple x of t h e U p p er O hi o 

a n d Ka na w ha Ri v er v all e y s, de pe n d e nt o n w at er b or n e fe e d st o c k s fr o m t h e G ulf 

C oa st a n d fr o m t h e i n t e ri o r r e fi n i n g i n d u str y. S u re l y, als o, t h e ve r y la r g e 

s t e e l i n d u str y of t h e O hi o V all e y, I n cl u di n g t h e Pit ts b u r g h D i s t ri c t, i s f o u n de d 

m ai nl y o n t h e l o g i s ti c s o f m eta ll u r g ic al a n d st ea m c o al, m o stl y w ate r b o r n e, c o mbi ne d wit h i n b o u n d la k e ir o n o re s re c ei v e d b y h i g h - e ffic ie n c y, la r g e t o n n a g e

r ail r o a d t r a i n s, a n d c o m bi n e d, a l s o, wit h s hi p m e nt o f fi n is h e d s t e e l t o w este r n
7 8 9

1 9

a n d G ulf C oa st m ar k et s b y ri v e r b a r g e s. T hi s l o g i s ti c a l str u c t u r e i s of t h e 

e ss e n ce of t h e i n d u str y's e f fi cie n c y. Si m il a r ill u s t r a ti o n s c o ul d be dra w n 

fr o m ot h e r i n d u stri e s, i n cl u di n g o il r e fi n i n g, e l e c t ri c p o w er, far m m ar k eti n g,

al u mi n u m r e d u cti o n, a n d v a ri o u s o t h e r s.

I n v est m e n t C o n se r v ati o n i n Water C arr ia g e

B ut, i t i s n ot o n l y t h r o u g h it s c o ntr i b uti o n t o i n d u stri a l l o g i s ti c s t h at 

w ate r tr a n s p o rta ti o n c o n se r v e s p r o d u cti v e i n v es t m e nt. T ra n s p o rt ati o n b y w at er 

a c h ie v e s s u b st a n ti a l i n v es t m e n t s a vi n g i n t h e tr a n s p o rta ti o n f u n cti o n it s e l f.

I n it s 1 9 7 2 N ati o n al T ra n s p o rt ati o n R e p o rt, t h e U. S. D e p art m e nt of T ra n s p ort ati o n p r o j e cts a n i n cre m e nta l c a p it a l re q uir e m e nt of U. S. r ail r o a d s t o 1 9 8 0 o f 

a b o u t $ 3 2. 3 0 f o r ea c h 1, 0 0 0 t o n - m il e s of r ail r o a d f r ei g h t p r oje cte d f o r t h at 

y e ar. T his le a v e s o u t of ac c o u nt p u bli c f u n d s f o r r a ilr o a d a s si st a n c e a n d s u bsi d i z a ti o n. B y c o n tr a st, t h e c o rr e s p o n di n g fi g u r e f o r w ate r c a rria g e i s o n l y 

$ 6. 8 4, i n cl u di n g n o t o nl y p ri v at e i n v es t m e nt b y t h e c a r ri e r s, b ut als o a ll 

p u bli c i n v es t m e nt i n ri v e r a n d h ar b o r i m pr o v e m e nts. T hi s fi v e - f o l d a d va nt a g e of 

w at er c a rri a g e i n c a p it al c o n s e r v ati o n s u r el y c o u n se ls a hi g h p ri o rit y i n w at er 

tr a n s p o rta ti o n de vel o p m e nt.

C o n c u rr e n t R ail a n d Water wa y Gr o wt h

I a m n ot b y a n y mea n s s u g g e sti n g t h e tr a n s f e r o f a n y p r e s e nt r a ilr o a d b u sin e ss t o t h e w at er w a y s. Wit h t h e ma xi m u m f e a si b l e e n la r g e m e n t o f w ate r tr a n s p o rt a ti o n , o u r r ail r o a d s w ill s t i l l be c o n fr o nte d b y m o u nti n g de m a n ds w hic h w ill 

cr o w d t h e i r c a p a b iliti e s. I n t h e r e p o rt c it e d, t h e U. S. De pa rt m e nt o f Tra n s p or 

t a ti o n p r oje cte d f o r t h e 2 0 y e ars e n di n g i n 1 9 9 0 a 6 5 p e rc e nt i n c r e a s e i n de ma n d 

f o r r ail r o a d f r ei g h t c a rri a g e. It i s d o u btf ul, i n d e e d, i f t h e r ail r o a d s w ill be 

a ble t o m o d er ni ze a n d e x pa n d o n s o e n o r m o us a s c ale . I n c a rr yi n g a m o d er at el y 

e nla r g e d s h a re of t h e i n cre m e nta l t r a f f i c , e x pa n d e d tr a n s p o rt ati o n b y w at er
7 9 0

2 0

pr o m is es t o m o d er at e t h e c a p it al s h o rt a g e c ri s i s of t h e r ail r o a d s i n a ma n ner 

e n tir e l y ha r m o ni o us wit h r ail r o a d gr o wt h a n d p r o s p e rit y.

I n t e r n ati o n al B al a n ce of Pa y me nts

T he pr o ble m of t h e i n te r n ati o n al b ala n c e of pa y me nts i s p a rti c u l a rl y s e ri ­

o u s, o f c o u rs e, be ca us e of t h e s h ar p i n c r e a s e i n p ric e s of i m p o rt e d o il. 

S h all o w - d ra ft d o m estic w ate r tr a n s p o rta ti o n i s a n i m p ort a n t c o n tr i b u t o r t o r e li e f. 

I ha ve d e s c ri b e d e a rli e r i n t h i s st ate m e nt t h e la r g e a n d gr o wi n g m o ve me nt of d om e sti c bit u mi n o u s c o al c a r ri e d b y w ate r t o c o n s u mi n g c e nte r s d i st a n t fr o m t h e 

c o al fi e l d s as a n a lt e r n a ti v e t o f u els s u bje ct t o i m p ort. O ne i m p ort a nt f a ct o r 

i n t h e a d v er se b ala n ce of pa y m e nts ha s be e n t h e gr o wi n g i m p o rt ati o n of p et r ole u m 

pr o d u cts at c o n si d era bl y hi g h er p ric e s t h at t h e a lt e r n a ti v e o f i m p o rt e d cr u d e.

T he cle a r c o r r e cti v e, of c o u rs e, li e s i n a st re n gt h e n e d a n d e nla r g e d d o m estic 

r e fi n i n g i n d u str y. T he e ffic ie n c y of t h i s i n d u str y t h r o u g h o ut t h e M is sis si p pi 

Ri v er B asi n a n d o n t h e G ulf C oa st r e st s d ir e c tl y o n t h e p r e vi o u sl y d e sc ri b e d 

d i stri b u ti o n of p r o d u cts b y s h all o w - d r a ft b ar g e s. T he i n d u str y i s als o g r e atl y 

d e p e n d e n t, o f c o u rs e, o n m o d er ni ze d c o a sta l h ar b o r f a c iliti e s , p a rti c u l a rl y i n 

Ala s k a a n d o n t h e G ul f a n d A tl a nti c C o a st s, f o r d e e p - d r a ft ta n k e r m o v e me nts.

I ha ve als o d e sc ri b e d t h e e n o r m o us a n d gr o wi n g w at er b or n e m o ve me nt o f e xp o rt g r ai n s a n d s o y b ea ns t o t h e c o a sts f o r e x p o rt. Mr. Fl o y d A. M ec hli n g, P r e sid e n t o f t h e U ni o n M ec hli n g C o r p., st a t e s t h at at t h e P o rt of Ne w O rl e a n s, 8 5 

p e rc e nt of a ll g r ai n t o be s h i p p e d o v ers ea s a r ri v e s b y b a r g e, as d o es n e a rl y 4 0 

p e rc e nt o f a ll U. S. g ra i n e x p o rt s fr o m ot h e r p o rts o n t h e A tl a n ti c, G ulf, a n d

P a cif ic c o a sts .

F i n all y, i n it s i n fl u e n c e o n t h e b ala n ce of pa y m e nts, we s h o u l d n ote t h e 

v er y l a r g e t o n n a g es of fi n is h e d s t e e l s hi p pe d b y b ar g e fr o m b ot h t h e Pitts b u r g h 

a n d C hic a g o D i st ri c t s, as w ell as fr o m ot h e r o ri g i n s o n t h e O hi o a n d Illi n o i s

R i v e rs , t o d o m esti c G ulf C oa st m ar k ets. I n 1 9 7 3, t h e s e w at er b o r n e s t e e l s hi p m e nts
7 9 1

2 1

a m o u n te d t o a b o ut 1. 5 m il li o n t o n s, wit h a n f. o. b. v al u e e sti m ate d at a b o u t

$ 3 7 5 m il li o n. O n t h e G ulf C oa st t h i s st e e l i s i n d ir e c t p ri c e c o m p etiti o n wit h 

s t e e l fr o m Ja pa n a n d t h e C o m mo n M ar ket. T he A m eri ca n Ir o n a n d S te el I n stit u t e 

r e p o rts a b o u t 3. 5 m il li o n t o n s of f o r ei g n s t e e l i m p o rt e d a t G ulf c u st o ms d i s ­

t r i c t s i n 1 9 7 3.

I n t h e a b se nc e of ri v e r tr a n s p o rt a ti o n, m o st of t h i s s t e e l w o ul d pr o b a b l y 

n ot be c o m p etiti v e wit h G ulf C oa st i m p o rt s. T he b ar g i n g r a t e fr o m t h e P itt s ­

b u r g h D i st ri c t t o Ne w O rl ea n s i n 1 9 7 5 i s $ 1 0. 6 2 p er t o n, w he re as t h e l o w est 

hi g h - v ol u m e r ail r o a d r a t e i s $ 2 7. 6 0. Fr o m S o ut h C hi ca g o, Illi n o i s, t o Ne w 

O rl e a n s, t h e b ar g i n g r a t e i s $ 8. 6 6. B y r a il, i t i s $ 1 6. 1 8 o n a mi ni m u m s hi p ­

me nt o f 1 4 0, 0 0 0 l b . (t h e l o w es t r a t e ). T h us, P it ts b u r g h a n d C hica g o st e e l

c o ul d re a c h t h e G ulf C oa st i n t h e a b se n ce of w ate r c a rri a g e o nl y a t a s u bs t a n ti a l s a c ri fi c e i n r e aliz e d p ri c e, a s a c ri fi c e w hic h m uc h of t h e t o n n a g e a l ­

m o st s u r el y c o ul d n ot s u sta i n.

I n s u m, Mr. C h air ma n, i t see ms t o me t h a t, i n t h e e v al u ati o n o f n a vi g ati o n 

p r o j e cts i n fl u e n c e s o n t h e U. S. b ala n c e of pa y m e nts o f m a g nit u de s s u c h as 

t h e s e s h o ul d be ta k e f u ll y i n t o ac c o u nt as a v it a l p u bli c i n t e r e s t c o n si d e r ati o n.

C o u nte r-I n fla ti o n a r y P oli c y

T he i n fl u e n c e o f w at er tr a n s p o rt ati o n a n d ot h e r f or ms o f l o w -c o st b ul k h a ula g e, s u c h a s u n it r ail r o a d t r a i n s, as r e s t r a i n t s o n i n fl a ti o n i s f a irl y o b vi o u s 

fr o m w h at I ha ve alr e a d y s ai d . T he c h ar g e s f o r w ate r tr a n s p o rta ti o n are n ot o n l y

m uc h l o w er t h a n t h o se of a n y ot h e r s u rf a c e m o d e, b ut t h e d e cli n e o f 1 7 p e rc e nt i n 

t o n - m il e re ve n u e of t h e M is sis si p pi Ri v er c a r ri e r s d u ri n g t h e i n fl ati o n a r y 1 9 6 0 ‘ s 

i n d ic ate s a p r o g re s si v e str e n gt h e ni n g o f t h i s l o w -c o st p o siti o n. Be ca us e w at er 

tr a n s p o rta ti o n m o ves t h e b a sic ra w m ate ria ls a n d f u els w hi c h s u p pl y t h e e n tir e 

str u c t u r e o f o ur I n n u m er a ble f a b ri c ati n g a n d fi n is h i n g i n d u stri e s, a s w ell as 

m uc h of t h e f u el s u p pl y f o r e l e c t ri c u t il i ti e s , t h e c o u n te r -i n fl ati o n a r y i n fl u e n c e
7 9 2

2 2

pe r v a d es C he e n tir e s u p pl y o f I n n u m er a ble c o ns u me r g o o ds a n d s e r v i c e s.

T r a n s p o rt ati o n pr o m is es t o bec o me i n t h e de ca de s a h ea d a l a r g e r f a ct o r i n

t o t a l c o sts t h a n i t ha s be e n i n t h e p a st. S o me o f t h e a dj u st m e nts t o o ur e n er g y

a n d ot h e r n at u r al r e s o u rc e pr o ble m s c l e a rl y c a ll f o r m uc h l o n g er f r ei g h t h a uls 

t h a n f o r m erl y. My p re vi o u s r e fe re n c e s t o t h e w at er b or n e d eli v e r y o f O hi o B asi n

c o al t o G ulf C oa st u t il i ti e s , t o t h e d i stri b u ti o n b y ri v e r b ar g es o f l o w -s ul p h ur 

w es te r n c o al t h r o u g h o ut t h e O hi o a n d M is sis si p pi v all e y s, a n d t o t h e c a rria g e of

f e rtili z e r s a n d ot h e r a g ri c u lt u r a l c h e m ic als, p ri n ci p all y of G ulf C oa st o ri g i n,

t o t h e U p p er M is sis si p pi V alle y a re ill u s t r a ti v e . D u ri n g t h e p a st 2 0 y e a r s,

t h e r e ha s d e v el o p e d a v er y la r g e w at er b or n e m o ve me nt of fe e d g ra i n s fr o m t h e

U p per Mi d dle West t o t h e a ni m al a n d p o ult r y fe e di n g a re a s o f t h e S o ut h e a st, a n d, 

i n re s p o n se t o t h i s , a n u m ber of r ail r o a d s ha ve i n stit u t e d w ate r- c o m p etiti v e i n ­

n o v ati o n s o n la r g e- v ol u m e g ra i n s hi p m e n ts at r ate s l e s s t h a n o n e - h alf t h e f o r m er

l e v el.

L o w c o st tr a n s p o rt ati o n, of c o u rs e, ha s al w a y s be e n a n i m p ort a nt el e m e nt i n 

r e s t r a i n t o n d eli v e re d p ri c e s i n c o ns u mi n g m ar k ets. I n t h e f ut u r e i t w ill pr o b abl y bec o me of e v e n g r e at e r i m p o rt a n ce.

R eli e f of L o n g- Te r m U ne m pl o y me nt

Water tr a n s p o rta ti o n c o ntr i b ute s si g n ifi c a n tl y t o s u sta i n e d a n d i n cre a s e d 

e m pl o y m e nt b y v irt u e of i t s r ole I n t h e l o g i s ti c s a n d e ffic ie n c y o f s u c h i n ­

d u stri e s as s t e e l, c h e m ic als, o il r e fi n i n g, e l e c t ri c e n er g y, a n d s u c h e n er g yc o n s u mi n g i n d u stri e s as al u mi n u m r e d u cti o n. O ve r 9 0 p e rc e nt of a ll t h e t o n - m il e s 

of s h all o w - d r a ft w ate r b or n e fr ei g h t i n t h e U nite d S ta te s m o ves o n t h e M is sis si p pi 

Ri v er S yste m a n d t h e G ulf I n tr a c o a sta l Water wa y, a n d t h e s e s y st e m s s e r v e m ai nl y 

t h o se re gi o n s of t h e c o u ntr y w hic h ha ve t h e hi g h e st p o t e n ti al f o r b e tt e r ma np o we r u tili z a ti o n —t h e A p p al ac hi a n Re gi o n ( n o rt h er n a n d s o ut h e r n ), t h e C e ntr al 

S o u t h, a n d t h e S o ut h e a st. Wit h o ut t h e s u sta i n i n g i n fl u e n c e of t h e ir e x pa n d i n g
7 9 3

2 3

te r- b a se d I n d u stri e s, u ne m pl o y m e nt i n t h e s e re gi o n s d u ri n g t h e p o st - w ar de ca d es w o ul d ha ve be e n o f dis a str o u s p r o p o rti o n s. D u ri n g t h e re m ai n d er o f t h e 

c e nt u r y , p r o g re s s i n t h e m o d er niz ati o n o f t h e i r n a vi g ati o n a n d h a r b o r s y st e m s 

pr o m is es t o be a hi g hl y fa v o ra ble i n fl u e n c e o n e x pa n di n g j o b o p p o rt u nit ie s a n d

i nc o me l e v e l s.

E vi d e n ce i s v er y p e rs u a si v e t h a t, i n s p it e o f ec o n o mic re c o v e r y , u n ac ­

c e pta bl y hi g h l e v el s o f u ne m pl o y m e nt w ill p e r si st f o r a v er y l o n g ti m e i n t h e 

f ut u r e. A m aj or f a ct o r i n t h i s o utl o o k i s t h e p r o s p e cti v e i n s u ffic ie n c y of 

pla nt c a p a cit y ac c o m p a nie d b y a ra pi d e x p a n si o n i n t h e la b o r f o r c e. A n d t h e 

o ne f a ct o r w hic h d o mi n at es t h e sc e n e o f i n a d e q u ate c a p a cit y i s t h e s h o rt a g e of 

i n v est m e n t f u n d s. T he e n c o ur a g e m e nt o f w ate r tr a n s p o rt a ti o n, wit h it s de m o nstr a b l e c o n s e r v ati o n of i n v e st m e nt, b ot h i n t h e s h i p pi n g i n d u stri e s a n d i n t h e 

tr a n s p o rta ti o n f u n cti o n it s e l f, i s str o n gl y i n dic ate d as a p oli c y l o o ki n g t o ­

wa r d s r e li e f of t h i s pr o ble m.

A d m itte dl y, at t h e p re s e nt ti m e t h e r e i s a g r e at d e al o f e x c e ss pla nt 

c a p a cit y i n t h e c o u ntr y, a n d u tili z a ti o n o f e x is ti n g pla nt ca n r eli e v e m uc h of 

p re s e nt u ne m pl o y me nt i n 1 9 7 5 a n d 1 9 7 6. B ut, l o o ki n g f a rt h e r a h ea d, t h e U. S. 

De part m e nt of La b o r r e p o rts t h at bet w ee n 1 9 7 0 a n d 1 9 8 0, t h e n u m ber o f p e o ple 

a g e d 2 5 t o 3 4 i n t h e la b o r f o rc e w ill ha ve gr o w n 5 1 p e rc e nt fr o m 1 7. 7 m il li o n 

t o 2 6. 8 m il li o n. C o n fr o nte d b y t h i s c h all e n g e, i n d u stri a l le a d e r s hi p w ill be 

h ar d p re ss e d t o p r o vi d e t h e n e c e ss ar y j o b o p e n i n g s i n t h e fa c e o f c a p it a l c o sts 

at f o r bi d di n g l e v e l s.

T he Wall S tr e et J o u r n al ( A p ril 2 9, 1 9 7 5) c o m m e nts as f o ll o w s:

" Ma ny ec o n o mists a n d b u si ne ss m e n d o u bt t h e U. S. ec o n o m y w ill 

gr o w f a st e n o u g h t o dr o p u ne m pl o y me nt ba c k t o a m ore n o r m al 4 % t o 

5 % ra n g e i n t h e f o r e s e e a ble f u t u r e. ’ I d o n’t t h i n k we w ill ha ve 

e it h e r t h e c a p it al or t h e e n er g y r e s o u r c e s t o p r o p el t h e ec o n o mic 

gr o wt h ne e d e d t o a c h ie v e t h a t, ’ sa y s R. He at h L arr y, Vi ce C h air ­

ma n o f U. S. S te el C or p. 'I t h i n k we w ill ha ve a c o nti n ui n g hi g h 

le v el o f u n e m pl o y m e nt’ f o r t h e n e xt d e ca d e, he a d ds. *'
7 9 4

2 4

r o fe s s o r Mc Crac ke n n ote s t h e p e r sis te n c e o f hi g h u ne m pl o y m e nt d u ri n g t h e 

e a rl y 1 9 7 0's w hil e m aj or I n d u str ie s were c o n c u rr e ntl y b ac kl o g gi n g o r d e rs f o r 

la c k of a d e q u at e c a p a cit y a n d e x p re ss e s a n xie t y t h at t h i s ma y li k e w is e be t h e 

p att e r n o f t h e f u t u r e.

As re p o rt e d i n t h e J o u r n al of C o m merce ( Ne w Y or k ), Dr. J o h n T. D u nl o p,

U. S. S e c re ta r y o f L a b or, st ate d o n Ma y 1 3, 1 9 7 5, i n te sti m o n y b ef o re t h e j o i n t

ec o n o mic s u bc o m mitt ee:

"' B ut . . . b ec a u se of t h e c o m pl e x it y a n d ti m e i n v ol v e d i n 

a d di n g t o c a p a cit y, i t i s n ot t o o s o o n t o b e g i n l o o ki n g be y o n d 

t h e v all e y t o w ar ds t h e ne w p e a k,' he d e cla re d.

"I n l o o ki n g a t i n d u strie s w h ere c a p a cit y ne e d s w arr a n t p a rti c u l a r c o n ce r n, Dr. D u nl o p cit e d b o t h t h e e l e c t ri c u tilit y 

s e ct o r a n d t h o se b a sic i n d u strie s p r o vi d i n g t h e m et als o r ce m e nt 

ne e d e d f o r i m pr o vi n g i n d u stri a l c a p a cit y g e n e r all y."

It w o ul d a p p ea r t h at t h e hi g h p r o d u cti vit y p er d o lla r o f i n v es t m e n t of 

b ot h t h e w at er tr a n s p o rt n ti o n i n d u str y a n d o f t h e l o g i s ti c a l str u ct u r e w hic h 

i t i n d u ce s i n t h e s h i p pi n g i n d u strie s i t s e r v e s ca n w ell be u tili z e d as t o ol 

o f f e d e r al p oli c y dir e cte d t o w ar ds r e li e f o f t h e l o n g -t er m u ne m pl o y m e nt pr o ble m.

A Water wa y Us er C h ar g e as a T es t of P r oje ct B e n e fi ts

T he 1 9 7 3 r e p o rt o f t h e N ati o n al W ate r C o m missi o n c o nt e n de d t h at u s e r c h ar g e s t o 

re c o v er t h e c o st o f water wa y i m p r o v e m e nt p r o j e cts w o ul d t e st t h e v a li d it y of 

b e n e fits e sti m ate s. T he C o m missi o n' s w o r di n g was a s f o ll o w s:

" I f n o n - F e d era l i n t e r e st s a g re e t o re pa y t h e f i r s t c o st of a 

w at er wa y, t h e C o n gr es s a n d t h e p u bli c ca n be s u re t h at t h o se u r g i n g 

t h e p r o j e ct a r e si n c e r e i n b eli e vi n g t h at i t i s j u s ti fi e d . "

T his l o gic of t h i s i s f r a g il e. F o r o n e t h i n g, t h e a d v o ca te s of a p a rti ­

c ula r p r oje ct ma y be v er y si n c e r e, b ut n ot v er y w ell I n f o r m e d. L o cal I n t e r e st s 

a re s o m eti me s si n c e r e, v i rt u a ll y t o t h e p oi n t o f t e a r s, i n t h e i r a d v o ca c y of 

a f a v o rit e p r o j e ct. T he Cr o p s o f E n gi n ee rs ma k es a p r a ctic e o f c o ntr a cti n g 

st u d ie s f o r t h e p r oje cti o n of n a vi g ati o n t o n n a g es a n d b e n e fits t o p r o f e s si o n al

c o n s ulti n g a g e n cie s ( A rt h ur D. L ittl e , A. T. K ea r n e y, a n d B att ell e Me m orial
7 9 5

2 5

s tit u t e , f o r e x a m pl e) o n t h e gr o u n d s of s p e cia li z e d c o m pete nc e. Wit h t h e 

p r oje cti o n s i n ha n d, t h e Cr o ps c o m m o nl y w h ittl e s t he m d o w n s h a r pl y , t o t h e o utra ge d d i st r e s s o f p r oje ct a d v o ca te s w h o se si n c e rit y i s u n a s s ail a ble .

M ore b a si c a ll y, t h e c o nc e pt r e p r e s e nts "e c o n o mic e f fi cie n c y " wit h a 

v e n ge a n ce. I t pla c e s e x cl u si v e r eli a n c e o n t h e v al u e s of t h e m ar ket pla c e i n 

t o t a l dis r e g a r d of t h e p u bli c i n t e r e s t v al u e s I ha ve be e n d e s c ri bi n g. T he 

c o n s u m er w ill n ot pa y a hi g h er p ric e f o r e l e c t ri c e n er g y fr o m w at er b or n e c o al 

i f he ca n g et i t m ore c h ea pl y fr o m P e rs ia n G ul f f u el o il. T he G ulf C oa st st e e l 

b u ye r w ill t u r n h i s ba c k o n P it ts b u r g h a n d C hica g o s t e e l a n d b u y Ja p a n es e st e e l 

I n ste a d. T he m ar gi n al fa r m er w h os e cr o p m o v e me nts t o e x p o rt m ar k et s a re 

bl oc ke d i n o b s ole te n a vi g ati o n f a c iliti e s w ill a b a n d o n t h e far m a n d m o ve t o t h e 

c it y . I t i s o f t h e es se n ce o f p u bli c i n t e r e s t f u n cti o n s, w het h er we a re s p ea ki n g o f a i r p u rifi c a ti o n o r fi r e p r o t e cti o n, t h at t h e i r b e n e fit s a re c o ll e cti v e

i n c h a r a cte r a n d n ot s ale a ble t o i n d i v i d u als .

T he water wa y u s e r c h ar ge m o st c o m m o nl y a d v o ca te d i s a ta x o n v e s s el f u el. 

Wit h re g ar d t o a n y p a rti c u l a r water wa y i m p r o v e m e nt p r o j e ct or pr o g ra m, s u c h a 

ta x w o ul d be i m p o se d e q u all y u p o n t h o se w h o ma de l i t t l e o r n o us e o f t h e p r oje ct 

as w ell as u p o n t h o se w h o us e d i t m uc h. N a vi g at o rs o n t h e C ol u m bia Ri v er w o ul d 

b y pa yi n g f o r i m pr o v e m e nts o n C h es a p ea ke Ba y. T he sa me is tr u e of t h e se c o n d 

m o st p o p ula r p r o p o s al, t h e ta x o n t o n - m il e s o f ca r g o c a r ri e d.

Us er c h ar g e s a r e m o st c o m m o nl y pr o p o se d f o r e x cl u si v e i m p o siti o n o n t h e 

o p e r ati o n s o f s h all o w - d r a ft v e s s el s. A 1 5 -f o ot d r a ft i s c o m m o nl y cit e d as a 

c o n v e n ie nt c ut o ff p oi n t. S uc h a n i m p o siti o n w o ul d c o n stit u t e a p e r v ers e me as ur e 

of i m pr o ve me nt b e n e fits i n t h e d e e p - d r a ft h a r b o rs o f t h e s e a c o a sts a n d t h e

G re at La ke s. I n t h e de e p c o a sta l c h a n n els a n d h a r b o r s, a v er y la r g e p o rti o n 

of t h e t r a f f i c c o n si st s of s h all o w - d r a ft tr a n s p o rt. F o r e x a m pl e, i n 1 9 7 3, i n 

t h e re ac h o f t h e M is sis si p pi Ri v er bet w ee n t h e d e e p - d r a ft p o rt o f Bat o n R o u ge

5 4- 2 3 9 0 - 7 5 - 51
7 9 6

2 6 

a n d t h e G ulf o f M e xic o, 4 2. 4 p e r c e n t o f t h e t o n - m il e s o f f r e i g h t wa s c a r ri e d

i n s h a ll o w - d r a ft v e s s e l s i n d o m e sti c c o m m er ce. C o a sta l a n d G re at L a k es c h a n n el

a n d h a r b o r i m pr o v e m e n ts a r e d e si g n e d p ri n c i p a ll y f o r t h e n e e d s o f d e e p - d r a ft 

n a v i g ati o n. B ut, a n e x cl u si v el y s h a ll o w - d r a ft u s e r c h a r g e, i n w h ate v e r f o r m , 

w o ul d i m p o se t h e c o st o f d e e p - d r a ft i m pr o ve m e n ts o nl y u p o n t h e s h a ll o w - d r a ft 

s e c t o r. O b vi o u sl y i t w o ul d n ot c o n s tit u t e a n y m ea s u re o f t h e b e n e f i c i a r i e s' 

w illi n g n e s s t o p a y.

V I. L O SS O F R AI L R O A D F R EI G H T R E V E N U E A S A N A L L E G E D C OS T O F W A T E R W A Y I MP R O V E ME NT

T he u s u al m ea s u re o f t r a n s p o rt a ti o n b e n e fit s o f a w at er w a y p r o j e c t i s t h e 

e x c e s s o f t h e c h a r g e s o f r ail w a y c a r ri a g e o v e r t h o s e o f w at er w a y t r a n s p o rt a ti o n

v i a t h e p r o j e c t e d f a c i l i t y . S o me c r i t i c s h a v e p o i n te d o ut t h a t, u n d er t h i s 

m e a s u re , w hat t h e s h i p p e r s b y w at er w a y g ai n t h e r a il r o a d s l o s e. T h e y c o n cl u d e

t h a t t h e l o s s e s o f t r a f f i c b y t h e r a il r o a d s s h o ul d be c o n si d e r e d a s a c o st o f

t h e w at er w a y p r o j e c t.

I h a v e alr e a d y s p o k e n c r i t i c a l l y o f t h e c o n v e nti o n al b e n e fit s - c o s t a n al y ­

s i s . I n t h i s r e s p e c t, a l s o , i t le n d s i t s e l f t o m i s i n t e r p r e t a ti o n . M ost w ate rwa y t r a f f i c g e n e r ate d b y n a v i g ati o n i m pr o v e m e n t i s n o t, i n f a c t, ta k e n fr o m t h e

r a il r o a d s. I n d e e d, m u c h w at er w a y c o m m erc e i s n o t r a il r o a d - c o m p e titi v e. I t

r e p r e s e n t s, r a t h e r, a n i n cre m e nt t o t h e t o t a l o f f r e i g h t c a r ri e d b y a l l m o des

o f t r a n s p o rt a ti o n c o m bi n e d.

T h e m ult i- m o d al t r a n s p o rt a ti o n s y ste m o f t h e U nit e d S t at e s h a s n o w e n t e r e d

a n e r a o f a r a p i d l y e x p a n di n g de m a n d f o r i n t e r c it y f r e i g h t t r a n s p o rt a ti o n w hi c h

a l l m o des i n t h e s y ste m w ill be h a r d p r e s s e d t o m e et. T he 1 9 7 2 N ati o n al T ra n sp o rt a ti o n R e p o rt o f t h e U. S. D e p art m e n t o f T r a n s p o rt ati o n p r o j e c t s a n i n c r e a s e

i n t h e de m a n d f o r m ulti- m o d al f r e i g h t c a r ri e d fr o m 1 9 7 0 t o 1 9 9 0 o f 8 9. 7 p e r c e nt

Fr o m 1 9 7 0 t o 1 9 7 3, t h e t o n - m il e s of c a r g o c a r ri e d o n t h e U. S. i n l a n d w at er w a y s 

I n c r e a s e d b y 1 6 b illi o n t o n - m il e s. M e a n w hil e, t h e f r e i g h t c a r ri e d b y U. S.
7 9 7

2 7

r ail r o a d s we nt u p b y 8 7 b illi o n t o n - m il e s — o v er fi v e ti m es as m uc h. T he i n c r e ­

me nt t o w at er b or n e c o m merce i s c e rt ai n l y n ot b ei n g "t a k e n a wa y " fr o m r ail r o a d 

h a ula g e. T he ri si n g de ma n d f o r r a ilr o a d c a rria g e s h o ws e v er y pr o m is e o f c o nti n ui n g, pr o b a bl y i n m a g nit u de s w hic h t h e r a ilr o a d s w ill be h ar d p re ss e d t o m eet. 

T he 1 9 7 2 D OT r e p o rt p r o j e cts a ri s e i n de ma n d f o r i n t e r c it y r a ilr o a d h a u la g e of 

6 5 p erc e nt b y 1 9 9 0. T he a ct u al pr o ble m p re s e nte d t o n ati o n al p oli c y i s t h at o f 

g ett i n g t h e i n c re a s e d f r ei g h t tr a n s p o rta ti o n d ir el y ne e d e d b y t h e ec o n o m y at 

t h e l o w es t c o st i n i n v es t m e n t c a p it al a n d i n o p e r ati n g e x pe ns e a m o n g t h e v a ri o u s

c h oic es a v ail a b l e.

As f o r t h e c o m p etiti o n bet w ee n r a il a n d w ate r, t h e ri v a lr y i s a ct u all y m uc h 

l e s s p e r v a si v e t h a n ma n y s u p p os e. A b o ut o n e -t h ir d o f a ll w ate r b or n e f r ei g h t 

c o n sis ts o f p etr ole u m a n d p et r o le u m p r o d u cts. T he r e al tr a n s p o rta ti o n a lt e r ­

n ati v e t o o il b ar g i n g i s n ot r a il c a r ri a g e. I t i s pi p eli n e m o ve me nt f o r t h e 

l o n g h a uls a n d ta n k tr u c k h a u la g e f o r r e gi o n al d i st ri b u ti o n . Wit h r e s p e ct t o 

ot h e r w ate r b or n e c o m m o diti es, t h e r a ilr o a d s a r e n ot g e n ui n el y c o m p etiti v e wit h 

w ate r c a rria g e o n ma n y o f t h e l o n g er h a uls . C o n si d er, f o r e x a m pl e, t h e w ate rb o r n e m o ve m e nt of O hi o B asi n c o al t o Ta m pa, F l o ri d a, o r o f P it ts b u r g h s t e e l t o 

G al v es t o n. No o ne w o ul d s e ri o u sl y ar g u e t h at t h e r ail r o a d s a r e i n c o m p etiti o n 

f o r t h e g r e at e r p o rti o n o f t h e s e m o ve m e nt s. T he de ma n d f o r tr a n s p o rta ti o n p o ss e s s e s s o me el e m e n t o f e l a s ti c it y , a n d t h e l o w c h ar g e s f o r water wa y c a rria g e 

g e n era te m o v e me nts w hi c h, i n t h e a b se nc e o f t h e m o d e, w o ul d f o rc e t h e s h i p pi n g 

i n d u strie s t o c o n fi n e t h e m se l v es t o m or e li m it e d re gi o n al m ar k et s a n d t h e r e ­

c ei v i n g i n d u stri e s t o r el y o n hi g h e r- c o st s u p pli e s cl o s e r t o h o me.

S m all P o t e n ti al R ail r o a d Gai n o n W at er- A da pt e d T r a f fi c

E ve n i f t h e r a ilr o a d s c o ul d c a pt u re t h e e n tir e t y of i n la n d water w a y s t r a f f i c 

t h i s tri u m p h w o ul d n't i m pr o ve t h e i r f o rt u n e s ve r y m uc h. On t h e b a sis of r e p o rts 

b y t h e I n t e r s t a t e C o m merce C o m missi o n a n d t h e Ar my C o r ps of E n gi n e ers, i t may be
7 9 8

2 8

ti m at e d t h a t t h e r e v e n u e s o f t h e i n la n d w ate r c a r r i e r s i n t h e l a t e s t y e a r r e ­

p o rt e d ( 1 9 7 3) c o ul d n ot ha ve b ee n m o re t h a n s o me $ 6 5 0 m illi o n . T his fi g u r e i s 

o nl y 4. 7 p e r c e n t o f t h e f r e i g h t r e v e n u e s o f U. S. C la s s I r a il r o a d s t h a t y e a r 

a n d o nl y a b o ut o n e - h alf o f t h e o n e - y e a r i n c r e a s e i n f r e i g h t r e v e n u e s a c t u a ll y 

e a r n e d b y t h e r a il r o a d s fr o m 1 9 7 2 t o 1 9 7 3. F or t h e A m eric a n r a il r o a d s , t h e 

f r e i g h t b u si n e s s t o be g ai n e d b y i m p ai r m e n t o f w at er w a y t r a f f i c gr o w t h w o ul d be 

s m all p o t at o e s.

R i v e r V all e y R ail r o a d s

P er h a p s I s h o ul d n arr o w m y c o m p ar is o n t o t h e r i v e r v a ll e y r a il r o a d s. T o 

w hat e x t e n t i s w at er w a y c o m p eti ti o n h a r m f u l t o t h e f o rt u n e s o f t h e s e p a r ti c u l a r 

li n e s ? I n s e e ki n g t o a n s w er t h i s q u e sti o n, o n e e n c o u nte r s t h e d i f f i c u lt y of 

i d e n ti f y i n g p a r ti c u l a r r a il r o a d c o m pa ni es w h o se li n e s a r e p ri n c i p a ll y w at e rp a r a ll e l. T h at I s , s o ma n y o f t h e ri v e r v a ll e y r o u t e s b el o n g t o r a il r o a d s m ost 

o f w h os e li n e s l i e o u t si d e t h e v a ll e y s a n d w h o se o p e r ati n g r e p o rt s d o n ot 

i d e n ti f y t h e w a t e r - p a r a ll e l o p e r ati o n s. H o w e v er, I h a v e c h o se n fi v e r a il r o a d s 

f o r t h i s c o m p ari s o n: t h e I lli n o i s C e n tr al; t h e G ulf , M o b il e & O hi o ( I lli n o i s 

C e n tr al G ulf a f t e r A u g ust 1 0, 1 9 7 2 ); t h e L o u i s v ill e & N a s h v ille ; t h e M is s o u ri 

P a c i fi c ; a n d t h e S t. L o uis - S a n F r a n ci s c o. T h e p ri n c i p a l li n e s o f t h e s e r a i l ­

r o a d s p a r a ll e l t h e I l li n o i s a n d M i s si s si p p i R i v e r s a n d, o f o n e o f t h e m , t h e 

T e n n es se e a n d t h e Bla c k W a rr i o r R i v e r s a n d a s e c ti o n o f t h e G ulf I n t r a c o a s t a l 

W at er w a y. T o w ha t e x t e n t h a v e t h e f o rt u n e s o f t h e s e d i s ti n c ti v e l y w at e r - 

p a r a ll e l r a il r o a d s b ee n i m pr o v e d o r i m p air e d b y w ate r c o m p eti ti o n ?

Gr o wt h i n T o n- M il e s C a rrie d b y R i v e r V all e y R ail r o a d s

I f t h e s e r a il r o a d s ha ve s u f f e r e d a n y s i g n i fi c a n t da m a g e fr o m w at er w a y 

c o m p etiti o n, i t d o e s n ot a p p e a r i n t h e i r o p e r a ti n g r e s u lt s . Fr o m 1 9 6 0 t o 1 9 7 1, 

t h e t o n - m il e s o f w ate r b o r n e f r e i g h t c a r ri e d o n t h e M i s si s si p p i R i v e r a n d i t s 

t r i b u t a r i e s m or e t h a n d o u ble d. T his d e v el o p m e n t wa s ac c o m pa ni e d b y a r i s e I n
7 9 9

2 9

f r ei g h t c a rria g e b y t h e w at e r - p a r all el r ail r o a d s at a b o u t d o u b le t h e r a t e of 

a ll ot h e r Cla ss I r ail r o a d s i n t h e c o u ntr y. As s h o w n i n C h art I I I, t h e t o n - 

m il e s of re ve n u e f r ei g h t c a rrie d b y t h e ri v e r v all e y r a ilr o a d s r o se b y 5 3. 2 

p e r c e nt, w hil e t h o se of a ll ot h e r Cla ss I r a il r o a d s i n cre a s e d b y o nl y 2 5. 2

p e r c e nt.

Gr o wt h i n F r ei g ht Re v e n ue o f Ri v er V all e y R ail r o a d s

L e st i t be s u p p os e d t h at t h i s i n c r e a s e i n f r ei g h t t r a f f i c was g ai n e d at t h e 

e x pe ns e of c o stl y r a t e s a c ri fi c e s, I ha ve als o s u m me d u p t h e f r ei g h t re ve n u e 

hi st o r y o f t h e s e r ail r o a d s. As s h o w n i n C ha rt I V, fr o m 1 9 6 0 t o 1 9 7 2, t h e f r ei g h t 

re v e n u es o f t h e fi v e ri v e r v all e y r ailr o a d s i n cre a s e d b y 8 2. 8 p e rc e nt i n c o mp a ri s o n wit h a n i n c re a s e o f o nl y 4 5. 6 p e rc e nt f o r a ll ot h e r Cla ss I r a ilr o a d s i n 

t h e U nite d S t ate s. D if f e r e n ti a ll y g r e at e r i n d u stri a l gr o w t h i n t h e M is sis si p pi 

V alle y pr es u m a bl y ha d a fa v o ra ble i n fl u e n c e o n b ot h water wa y a n d r ail r o a d t r a f fi c 

v ol u m es. S o me o f t h i s gr o wt h was d o u btl e s sl y w ate r- i n d u c e d. W hat e ve r t h e b ala n ce 

bet w ee n fa v o ra ble a n d u n fa v o ra ble i n fl u e n c e s of water wa y t r a f f i c gr o w t h o n t h e 

f o rt u n e s of t h e r a ilr o a d s, i t i s e vi d e nt t h at i f water wa y c o m p etiti o n ha s be e n 

i n j u ri o u s, i t was o n l y m ar g i n all y s o .

Ri v er V all e y R ail r o a d s Rate of R et ur n

C ha rt V , p r e s e nts t h e r a t e s o f r et u r n i n 1 9 7 3 f o r ea c h o f t h e s e ri v e r 

v all e y r a ilr o a d s i n c o m p arisi o n wit h a ll ot h e r Cla ss I r a ilr o a d s i n t h e c o u ntr y, 

a r a t e ra n gi n g fr o m 3. 9 9 t o 4. 8 5 p e rc e nt f o r t h e ri v e r v all e y li n e s i n c o m pa ris o n 

t o 2. 8 3 p e rc e nt f o r a ll o t h e r s. S o as t o s et a si d e t h e n e g ati v e i n fl u e n c e of 

li n e s i n r e o r g a niz ati o n, C ha rt V , als o p r e s e nts t h e r a t e o f r et u r n of a ll ot h e r 

U. S. r a il r o a d s, e x cl u si v e of t h o se i n b a n kr u ptc y a t 4. 2 5 p e r c e nt, i n t h e sa me 

g e n era l ra n g e as t h e ri v e r v all e y r a ilr o a d s.

I n s u m, w ha te ve r t h e r o l e of water wa y c o m p etiti o n i n r a ilr o a d p r o fit a b ilit y ,

i t a p p ea rs t o e x e r cis e n o i n fl u e n c e s u f fi c i e n tl y a d v er se t o be e vi d e nt i n t h e
8 0 0

3 0

e r ati n g r e s u lt s .

Gr o wi n g R ail - W ate r I nte r c h a n g e

O n t h e o t h e r h a n d, t h e v ol u m e o f r a il r o a d f r e i g h t s h a r e d w it h w ate r 

c a r ri a g e i s d e m o n str a bl y s u b s t a n ti a l. U n d er t h e " W il li n g P a rt n e r " pr o g ra m, a 

n u m be r o f m i d dle w e ste r n r a il r o a d s, i n cl u d i n g t h e T ole d o, P e o ri a a n d W es te r n a n d

t h e C hi ca g o a n d N ort h W e ste r n , h a v e e s t a b li s h e d a tt r a c ti v e r a t e s a n d s e r v i c e s

f o r r a il - b a r g e m o v e m e nts o f g r ai n s a n d s o y b e a n s. Bit u m i n o u s c o al i s t h e

l a r g e s t s i n g l e c o m m o dit y m o ve m e nt o n t h e r a il r o a d s, a n d m uc h o f t h i s i s i n t e r ­

c h a n g e d w it h w ate r c a r r i e r s . I r e f e r n ot o nl y t o t h e r a il - l a k e m o v e m e nts vi a

s u c h p o rt s as T ole d o, S a n d u s k y, a n d C o n n e a ut, O hi o, b ut a l s o t o t h e l a r g e v ol u m e

o f r a il - b a r g e m o v e m e nts. M o st o f t h e w ate r b o r n e c o al o ri g i n a t e d i n s o ut h e r n

We st V ir g i n i a a n d s o ut h e r n I l li n o i s i s r a il - o r i g i n a t e d . A c c o r d i n g t o r e p o rt s

o f t h e U. S. B ure a u o f Mi n es a n d t h e Ar m y C o r p s o f E n gi n e e rs a p p r o xi m ate l y 1 4

p e r c e nt o f a l l t h e c o al c a r ri e d b y t h e U. S. r a il r o a d s i n t h e l a t e s t y e a r r e ­

p o rt e d ( 1 9 7 2) wa s i n r a il - b a r g e i n t e r c h a n g e, a b o ut 5 7 m illi o n t o n s. T his i s a 

gr o wi n g f e a t u r e o f t h e r a il - w a t e r r e l a ti o n s h i p . I ha ve alr e a d y r e f e r r e d t o t h e 

pr o g ra m m e d m o ve m e nt o f l o w - s ul p h u r w e ste r n c o al v i a r a il - b a r g e i n t e r c h a n g e. I t 

i s s i g n i fi c a n t t h a t t h e ne ws st o r y i n t h e Ne w Y o r k J o u r n al o f C o m m erce 

( A u g us t 2 0, 1 9 7 3 ) r e p o rti n g t h i s d e v el o p m e n t was h e a d li n e d : " B u rli n gt o n 

N o rt h e r n O utl o o k A p p ea rs B e tt e r ". As a g r e a t e r v ol u m e o f r a il - b a r g e i n te r c h a n g e 

be c o m es m o re c h a r a c t e r i s ti c o f o u r t r a n s p o rt a ti o n s y ste m , t h e o u tl o o k f o r m o re 

o f o u r r a il r o a d s w ill, we h o p e, a p p e a r b e tt e r.
8 0 1

C H A R T I .

a p p r o p r i a t i o n s f o r n e w w o r k o n n a v i g a t i o n p r o j e c t s

B Y T H E C O R P S O P E N GI N E E R S, U . S . A R M Y

I N D O L L A R S O F C U R R E N T P U R C H A SI N G P O W E R

1 9 62 - 1 9 75

Mi 1 1 i o n s

f D o ll a r s

S O U R C E: U . S . D e p a r t m e n t o f t h e A r m y, C o r p s o f E n g i n e e r s
8 0 2

A R T I T .

A P P R O P RI A TI O N S F O R N E W W O R K O N N A VI G A TI O N P R O J E C T S

B Y T H E C O R P S O F E N GI N E E R S, U. S. A R M Y

I N D O L L A R S O F 1 9 6 2 P U R C H A SI N G P O W E R

1 9 6 2 - 1 9 7 U

Mi I 1 i o n s o f

1 9 6 2 P o ll a r s

D e fl a t o r s R e vi s e d C o n s e r v a ti o n a n d D e v el o p m e n t C o n s tr u e

ti o n C o st I n d e x, U. S . B u r e a u o f R e cl a m a ti o n

S O U R C E: C o r p s o f E n g i n e e r s, U. S. Ar m y
8 0 3

C H A R T I I I ,

T O N- MI L E S O F R E V E N U E F R EI G H T

FI V E RI V E R V A L L E Y R AI L R O A D S*

C O M P A R E D WI T H

* F i v e R i v e r V all e y R ail r o a d s : Illi n o i s C e n tr al; G ulf , M o bil e 

& O hi o ; L o u i s v ill e & N a s h vill e ; M i s s o u ri P a c ifi c ; S t. L o ui s - 

S a n F r a n ci s c o .

S O U R C E: I n t e r s t a t e C o m m er c e C o m mi s si o n
8 0 4

C H A R T I V .

F R EI G H T R E V E N U E

* F i v e R i v e r V all e y R ail r o a d s : L o u i s v ill e & N a s h vil l e ; Mi s s o u ri

P a c ifi c ; S t. L o ui s ~ S a n F r a n ci s c o ; Illi n o i s C e n tr al; G ulf, M o bil e

• & O hi o ( Illi n o i s C e n tr al G ulf a f t e r A u g u s t 1 0 , 1 9 7 2 ).

S O U R C E: I n t e r s t a t e C o m m er c e C o m mi s si o n

8 0 6

l y 2, 1 9 7 5

S U P P L E M E N T T O

S t a t e m e nt o f M a r vi n J . B a rl o o n o f J u n e 1 9 , 1 9 7 5

B ef o r e

T H E S U B C O M MI T T E E O N W A T E R R E S O U R C E S

o f

T H E C O M MI T T E E O N P U B LI C W O R K S

U NI T E D S T A T E S S E N A T E

M r. C h air m a n a n d M e m b er s o f t h e C o m mitt e e:

T hi s s u p pl e m e nt i s pr o m pt e d b y t h e r e c e n t a v a il a b ilit y o f a m a p o f 

O hi o V all e y e l e c t ri c g e n e r a ti n g s t a ti o n s a n d u lt r a - h i g h - v o lt a g e tr a n s m i s ­

si o n li n e s w hi c h m a y - cl a rif y s o m e w h at o n e o f t h e p o i n t s o f m y st a t e m e nt 

o f J u n e 1 9. A c o p y o f t h e m a p i s a tt a c h e d .

O n p a g e 1 3 o f m y st a t e m e n t, I r e f e r t o t h e r o l e o f w at e r b o r n e c o al 

o n t h e O hi o R i v e r a n d i t s t ri b u t a ri e s i n t h e s u p pl y o f e l e c t ri c e n e r g y 

t h r o u g h o u t t h e n o rt h e a s t q u a d r a nt o f t h e U nit e d S t a t e s . N u m er o u s g e n e r a ti n g 

s t a ti o n s i n t h e O hi o V a ll e y p o s s e s s a c a p a cit y m u c h i n e x c e s s o f t h e l o c al 

d e m a n d. T h e V all e y s t a ti o n s a r e c o n n e ct e d w it h r e m ot e c o n s u mi n g a r e a s b y 

s y st e m i n t e r c o n n e c ti o n s o f h i g h -' o lt a g e tr a n s m i s si o n li n e s . A s m y s t a t e ­

m e nt p o i n t s o u t, o n t h e b a si s o f t h i s l o g i s ti c a l s y st e m , e l e c t ri c p o w e r 

fr o m w at e r b o r n e c o al o n t h e O hi o R i v e r i s p r o vi d e d t o a v e rt s h o rt a g e s i n 

n u m er o u s c iti e s o u t s i d e t h e r e gi o n , r e a c hi n g a s f a r a s N e w Y o r k , C hi c a g o, 

D e t r o it, a n d R o a n o k e, V i r g i n i a . T h e r e gi o n al i n d u s t r y t h u s o p e r a t e s s o m ew h at i n t h e m a n n e r o f a c e n tr al p o w e r b a n k, w it h r e s e r v e s a v a il a b l e f o r
8 0 7

t h e r e li e f o f s h o rt a g e s i n v a ri o u s d i s t a n t u r b a n c o m m u niti e s.

T h e d e v el o p e d w a t e r r e s o u r c e s o f t h e O hi o V all e y a r e f u n d a m e nt al t o 

t h i s s y st e m . T h e p ri n c i p a l a d v a nt a g e o f t h e v a ll e y l o c a ti o n i s t h e a v a il ­

a b ilit y o f l o w - c o s t O hi o B a si n c o a l, m o st o f i t w a t e r b o r n e . A b u n d a nt w at e r 

s u p pl y i s li k e w i s e a n a tt r a c ti o n , e n h a n c e d b y t h e hi g h a n d s t a bl e p o ol 

l e v e l s p r o vi d e d b y t h e n a vi g a ti o n d a m s a n d al s o b y t h e a u g m e nt a ti o n o f 

str e a m fl o w fr o m r e s e r v o ir s a b o v e t h e h e a d o f n a vi g a ti o n d u ri n g l o w - w a t e r 

s e a s o n s. L o w - s ul p h u r c o al f o r a i r p o ll u ti o n a b at e m e nt i s n o w c o n tr a ct e d 

t o m o v e vi a r a il - w a t e r c o n n e cti o n s i n Illi n o i s , b e gi n ni n g i n 1 9 7 9, f o r 

b a r g e d i s t ri b u ti o n o n t h e O hi o R i v e r a s f a r e a st a s W e st V i r g i n i a .

T h e f o ll o w i n g p oi n t s s h o ul d b e e s p e c i a ll y n ot e d i n i n t e r p r e ti n g t h e 

att a c h e d m a p:

1. M o st o f t h e l o n g - di s t a n c e tr a n s m i s si o n li n e s c o n n e cti n g t h e v a ll e y 

s t a ti o n s w it h d i s t a n t c o n s u mi n g ar e a s a r e n o t s h o w n. T h u s, f o r e x a m pl e, 

t h e s t a ti o n a t J o p p a, Illi n o i s , o n t h e l o w e r O hi o h a s d ir e c t c o n n e cti o n s 

w it h C hi c a g o w hi c h d o n o t a p p e ar o n t h e m a p. B e c a u s e o f s p a c e li m it a ti o n s , 

t h e c a rt o g r a p h e r li m it e d hi m s e lf t o t h e h i g h e s t- v o lt a g e li n e s o f 5 0 0 a n d 

7 6 5 k il o v o lt s r e s p e c ti v e l y .

2 . L o w e r v olt a g e li n e s , n o t a p p e a ri n g o n t h e m a p, s e r v e d i s t a n t ar e a s 

b y r e l a y i n t e r c h a n g e . H y p o t h e ti c a ll y , f o r e x a m pl e , a g e n e r a ti n g s t a ti o n 

o n t h e ri v e r m i g ht p r o vi d e e n e r g y i n t h e I n d i a n a p o li s s e r vi c e a r e a s o a s 

t o p e r m it a n I n d i a n a p o li s s t a ti o n t o s u p pl y p e a k l o a d r e li e f i n C hi c a g o.

3 . A c o n si d e r a bl e n u m b er o f t h e g e n e r a ti n g s t a ti o n s o n t h e ri v e r b a n k

d o n o t r e c ei v e c o al b y b a r g e, b u t a r e l o c a t e d e it h e r a t t h e mi n e m o ut h o r 

cl o s e e n o u g h t o t h e mi n e m o u t h t o r e c ei v e c o al b y s h o rt- h a ul o v e rl a n d 

m o d e s. I n a s u r v e y c o n d u ct e d b y T h e O hi o V all e y I m pr o v e m e n t A s s o ci a ti o n 

o f C i n c i n n a ti, i t w a s d et e r m i n e d t h a t 5 8. 5 p e r c e n t o f a ll c o al c o n s u m e d b y 

e l e c t ri c u t ili t i e s o n t h e O hi o R i v e r w a s r e c ei v e d b y ri v e r b a r g e.

8 0 9

Se n at o r Gr a v e l . O ur ne xt wit ne ss is Dr. Pa ul R o berts. Plea se 

c o me f or w ar d t o t he micr o p h o ne. We ha v e y o ur state m e nt. Her e 

a gai n I h o pe y o u c o ul d tre at it i n s u m ma r y a n d t he n we ca n g o o n t o 

q uesti o ns.

S T A T E M E N T O F P A U L R O B E R T S, E C O N O MI S T

Mr. R o b e r t s . I w o ul d als o be q uite willi n g t o ha v e y o u as k a n y 

q uesti o n s y o u mi g ht wa nt. I d o ha v e a fe w’ r e m ar k s o n m y stat e m e nt.

I ha v e e xa mi ne d vari o u s t y p es of pr o ble m s w’hic h I will tal k a b o ut 

i n ter m s of ec o n o mic a nal ysi s of w ate r w a y pr oject s. M y q ualific ati o ns 

a n d e x perie nce i n t his are a are att ac h e d t o m y state m e nt.

I t hi n k t h at, Mr. C h air ma n, y o u reall y set t he sta g e la st ye ar f or 

w’ha t I wa nt t o sa y i n t his heari n g. Y o u sai d, “It is ti me f or us t o 

ha v e a g o o d l o o k at t he t ot al ci vil w’ or ks pr o gra m. We wa nt t o k n o w 

w h at t he C or ps of E n gi nee rs is d oi n g a n d h o w’ it is d oi n g it,” a n d t he n 

w’hat C o n gr ess mi g ht d o.

S o I ha v e str u ct u re d m y testi m o n y acc or di n gl y. Y o u ha ve i de ntifie d 

w h at t he c or ps is d oi n g, I t hi n k f or t he first ti me t h at I ha v e see n 

c o m p re he nsi v el y, b y listi n g 6 1 4 “li v e” a n d 6 1 8 deferr e d a n d i na cti v e 

pr oj ects. T his, t he n, is w’h at t he y are d oi n g.

M o st of w’ha t I a m g oi n g t o sa y t o d a y is h o w t he y are d oi n g it. 

T h e n fi nall y I ha v e a rec o m me n dati o n w hic h I t hi n k w o ul d be usef ul 

f or t he C o n gr ess i n t er m s of t he ec o n o mic e val uati o n of c or ps pr oj ects.

I t hi n k t here are si m pl y a c o u ple of g o o d c o m m o nse n se rea s o n s 

w h y I disa gre e wit h m y c ollea g u e, Pr of ess o r Barl o o n, c o nc er ni n g t he 

nee d of ec o n o mic efficie nc y n o w p er h a ps m ore t h a n at a n y ot he r ti me.

We are i n a sit u ati o n w here 2 0 0 ye ars ha ve passe d i n o ur Nati o n’s 

hist or y. We ha v e use d nat ural res o urces —ri ve rs —a n d it is si m pl y a 

m atter of c o m m o ns e nse t h at t here are n ot ver y m a n y of t h ese nat ur al 

assets left. T he re is a n i ne x ha usti ble s u p pl y of p ot e ntial pr oject s b u t 

o nl y a n e x h a usti ble s u p pl y of res o urces w’hic h will be “ u se d. ” T h at is 

j u st o ne o b vi o us r eas o n w h y I t hi n k y o u nee d s o u n d ec o n o mic a nal ysis 

t o g e nerate t h e m ost efficie nt utiliz ati o n of o u r n at ur al res o urce base.

T h e ot h er is t h at w e are i n a p eri o d of terri ble c a pital scarcit y, al o n g 

wit h i n creasi n g c osts. I t t he n b ec o me s a q ue sti o n of nati o nal pri o riti es; 

w here a n d w h at d oes t he Fe d eral G o ver n m e nt e x pe n d li mite d ca pital 

res o urc es.

S o I belie v e t hes e are o ver w h el mi n g reas o ns w h y y o u nee d t o be 

c o nc er ne d a b o ut ec o n o mic efficie nc y w’hic h is a pr o d uct of s o u n d 

ec o n o mic a nal ysis. I t hi n k t his c o m mittee is well s uit e d t o pr o vi de, 

t hr o u g h t he o ve rsi g ht pr ocess, bette r a nal ytical pr oc e d ur es f or t he 

C or ps of E n gi neers.

Ec o n o mic a nal ysis ha s ha d a n al m ost u ni q ue p ositi o n i n t his e ntire 

q ue sti o n of w’ater res o urce de v el o p m e nt. It deri ves fr o m t he ge ner al 

la n g ua ge of t he 1 9 3 6 Fl o o d C o ntr ol Act: “ * * * if t he be ne fits t o 

w h o ms o e ver t he y accr ue are i n e xcess of t he esti m ate d c osts,” t he n 

t he Fe d eral G o ver n m e nt s h o ul d parti ci p ate i n t he de v el o p m e nt of 

t hes e pr oj ects.

T h e q ue sti o n of efficie nc y is a ns w ere d here. Y o u l o o k at c osts a n d 

ret ur ns. It is t h at si m ple. It d oes n ot a d d ress t he q ue sti o n of e q uit y, 

t h o u g h. T hat is w h o be n efits as c o m par e d wit h w’h o m ust i nc ur t he 

c osts.
T h e f or m of ec o n o mic a nal ysis, is t he n, be ne fit-c o st a nal ysi s, a n d 

w h at y o u e n d u p wit h w he n y o u d o a be nefit-c o st a nal y sis is a be nefitc ost rati o.

T h e o bje cti ve of t he w h ole pr oc e d ure is t o arri ve at a n u m b er w here 

y o u c o m pare o n a r ati o n al, s o u n d a nal yti cal basis, f ut u re be n efit s wit h 

f ut ure c osts, s o as t o be a ble t o ma k e a decisi o n o n t he w ort h of a 

pr oj ect.

T he re are a c o u pl e of p oi nts I will stre ss fr o m m y state me nt w hic h 

are i m p o rta nt w he n deali n g wit h t his s u bje ct i n t he C o n gres s. Fir st, 

o nce a fa v o ra ble be ne fit-c o st rati o is ge n erate d a n d C o n gr ess acc e pt s 

t he u n d erl yi n g ass u m pti o n s u p o n w hic h t he a nal ysis was c o n d ucte d, 

t his rati o, n o m atte r w he n or h o w it was d o ne, ass u m es far m ore 

i m p ort a nc e i n t he b u d g eta r y pr oces s i n f ut ure years e ve n if t he 

ori gi nal c o n diti o n s ha ve si g nifica ntl y c ha n ge d.

S o I ca uti o n C o n gress bef ore acc e pti n g a pr oj ect, t h at t he y be s ure 

t he y ha v e a c o m plet e a nal y sis. O nce t he pr oject is acce pte d, it see ms 

t o sta y f ore ver.

Se nat or G r a v e l . C o ul d I j u st i nterr u pt y o u t here? T he re are t w o, 

a n d I d o n’t k n o w if y o u are a wa re oi t he m, t w o i n n o vati o n s we 

i n stit ut e d last ye ar as pa rt of t he W at er Res o urc es De vel o p m e nt Act. 

O ne is t he a bilit y t o dea ut h o rize, a n d we ha v e recei v e d fr o m t he c or ps 

a li st of s o me 300 - o d d pr ojects t h at will be d ea ut h orize d. Als o, we ha ve 

a n ot h er pr o ce d u re w here we t he p oli c y m a kers will get a n ot h er crac k 

at a pr oject bef ore c o n str u cti o n. S o me prec o nstr u cti o n e n gi neeri n g is 

d o ne, b ut bef or e it g oes t o fi nal c o ntra ct f or c o n str u cti o n we g et t o see 

it a gai n.

W h et h er or n ot we ha v e cra n ke d i n s ufficie ntl y a ne w c ost- be n efit 

rati o at t h at ti me, it is m y o pi ni o n t h at we ha ve. I t hi n k t hi s is o ne 

of t he areas we ca n m o ve i n.

Mr. R o b e r t s . I ha v e a n i dea f or y o u t h at ma y hel p i n t his pr o ­

ce d ure, beca us e y o u are tal ki n g a b o ut o ver 1,20 0 pr oj ects, mi n u s 

w hate v er t he C o n gress mi g ht dea ut h o rize. It is n ot reali stic t o ass u m e 

t h at y o u a n d y o ur staff ca n a de q u atel y d o t his. B ut I ha v e a s u g ges ­

ti o n lat er o n I t hi n k mi g ht be feasi ble.

T h e ot h er p oi nt I ma k e o n acc e pti n g t hi s be ne fit-c o st rati o is t h at 

o nce it g oe s t hr o u g h t he b u d g eta r y pr ocess, t he heari n gs, a n d t he first 

d olla r is a p pr o priat e d, a n d if s o m e b o d y c o mes bac k t o y o u a n d sa ys, 

“ L o o k, we w o ul d li ke t o c halle n ge t he ass u m pti o ns t h at it was base d 

o n,” it is li ke testi n g t he ver acit y of t he C o n gress itself, beca use y o u 

get defe nsi ve a b o ut it o nce t he i nitial pr oce ss has sta rte d.

I t hi n k Se nat or D o me nici hit o n t he ke y p oi nt i u st a mi n ute a g o i n 

tal ki n g a b o ut t he i m p orta nce of ass u m pti o n s. W hat are t he ass u m p ­

ti o n s? T h e y are s o i m p ort a nt. As a m atte r of f act, it is t he a ss u m pti o n s 

t h at det er mi ne t he o utc o me of a n y a nal y sis.

U n f ort u natel y, m o st of t he ti me t hes e ass u m pti o n s are i m plicit. 

I ha v e p oi nte d o ut a fe w of t hese i n m y state m e nt.

Gr o wt h rates are ass u m e d i n t he deter mi nati o n of n a vi gati o n be n e ­

fits. T he re are ass u m pti o n s of i ncre ases i n per ca pit a c o n s u m pti o n of 

c o m m o dities, a n d partic ula rl y of petr ole u m pr o d ucts.

Hist ori cal a nal ysis, base d o n hist orical data ha v e bee n use d t o 

j ustif y na vi gati o n be nefits t h at c o me fr o m a ti me t h at is va stl y dif ­

fere nt fr o m w h at we k n o w t o da y: F o r se ver al lar ge na vi gati o n pr oj ­

ects w hic h ha v e bee n c o n str u cte d a n d t h os e t h at are o n t he b o o ks, 

t he ass u m pti o ns c o nc er ni n g c ha n ges i n per ca pit a c o n s u m pti o n f or
8 1 1

vari o us c o m m o diti es were base d o n a n era pre- W orl d W ar II. At t h at 

ti me t here was n o q ue sti o n we were g oi n g t o ha v e tre me n d o us i n ­

creases i n t he per ca pit a c o n s u m pti o n of c o n s u m er d ur a bl e g o o ds, of 

e ner g y, of ra w material s, et cetera.

I a m c o n vi nce d t h at i n t he f ut ure t he re is g oi n g t o be a de cli ne i n t he 

per ca pit a c o n s u m pti o n of ma n y of t hes e basic ite m s alt h o u g h t he 

a bs ol ut e a m o u nt will i ncrea se. B ut t hes e na vi gati o n pr ojects c o nti n u e 

t o be j usti fie d o n t he basis of per ca pit a i ncre ases of t hese ec o n o mic 

varia bles.

S o me of t hes e gr o wt h rat es are b uilt i n at 80 a n d 100 pe rc e nt i n ­

crease s o ver t he life of t he pr ojects. T he se are t ot all y u nrealistic. 

Y o u ha v e t o g o t hr o u g h t he pr ojects t o fi n d t hes e a n d k n o w w hat y o u 

are d oi n g j u st t o get t he basic s, t o ma ke e x plicit w h at s i m pli cit i n 

t he ec o n o mi c a nal ysi s. T hes e ass u m pti o ns are s o i m p o rta nt i n ter m s 

of w h at t he a nal ysis s u g g ests, t he i nter est rat es use d t o dis c o u nt 

be ne fits a n d c ost s, t he ec o n o mic life of t he pr oject, a n d o n a n d o n. I 

j u st ca n’t stre ss t hi s p oi nt t o o m uc h.

Se nat or D o m e ni ci . Mr. R o berts, bef ore y o u lea ve t h at, y o u are 

s u g gesti n g t h at we ha v e bee n l oc ke d i nt o t he be n efit- c ost a nal ysi s, 

o nce it is i nitiall y ma d e. D o y o u ha v e a n y e xa m ples f or us of h o w 

a n ot h er l o o k at t he facts t h at g o i nt o it w o ul d c ha n ge ?

Mr. R o b e r t s . J u st a b o ut as g o o d as t he re c o ul d oe.

Se nat or D o m e ni ci . Bef ore y o u gi ve it, s o me pr ojects are s o bi g t h at 

c o n str ucti o n ta k es s o l o n g t h at y o u c o ul d be partiall y t hr o u g h t he m 

a n d t he be n efit-c o st rati o c o ul d c ha n ge dra stic all y. T h ere y o u w o ul d 

ha v e a c o m plet el y diff ere nt pr o ble m. W hat d o y o u d o wit h half a 

pr oject or hal f a pr o gra m?

I was l o o ki n g fr o m t he ti me we a ut h ori ze d it a n d ga ve it t he blessi n g 

as t he a p pr o priat e be ne fit-c ost a nal ysi s, t h at e n o u g h ti m e pass e d 

w here, if s o me o ne were t o l o o k at it, a gai n y o u c o ul d ha v e diff ere nt 

rati os. D o y o u ha v e a n yt hi n g of t h at ki n d?

Mr. R o b e r t s . A b o ut t he m o st bea utif ul e xa m ple I ca n t hi n k of. I 

st u die d t he b u d g et a p p e n dices f or t he last 15 yea rs i n pr e p ar ati o n f or 

t his t esti m o n y t o g et a feel f or w hat y o u are refe rri n g t o.

T he re is a defi nite patte r n i n t he c ost esti mates. If t he re ha ve n’t 

bee n ma n y b u d g eta r y o utla ys f or a pr oject, t he c ost esti m ate s are 

reall y ba d. If t here has bee n a l o n g hist or y of a p p r o p riati o ns, t he c ost 

esti m ate s i m pr o v e.

B ut, f or e xa m ple, t he Te n ness ee- T o m bi g be e Water w a y, j u st si nce 

fiscal y ear 196 9 t o fiscal 197 6, w hic h is well wit hi n t he pla n ni n g h ori z o n 

I t hi n k y o u are tal ki n g a b o ut, t he esti m ate of t ot al c ost i ncr ease d 

fr o m a fiscal ye ar 1969 fi g ure of $2 90 milli o n t o t he fiscal ye ar 1976 

fi g ure of $8 00 milli o n. B ut y o u a ut h o riz e d t he Te n nes see- T o m bi g b ee 

Water wa y o n t he basis of a b o ut a $2 85 milli o n t o $2 90 milli o n t ot al 

c ost. T he se were s u p p ose dl y fir m t otal c ost esti mat es.

It is j u st i ncre di ble. H o w c o ul d t hes e c ost esti m ate s c ha n ge s o 

dr a m ati call y i n t hi s peri o d u nless t he ori gi nal esti m ate s were t otall y 

u nr eali stic.

T h e b u d g et a p p e n dices are e x plicit o n w h at has ha p p e ne d t o t he 

t ot al c ost esti m ate s o ver ti me. A n d I will tell y o u e x actl y w h y it 

ha p pe n s. T h e c or p s uses c u rre nt price s t o pr oject f ut ur e o utla y s. 

B ut t here is j u st n o nee d t o d o t h at. Let me p ut it a n ot h er wa y. If 

C o n gress a gree d t o t he c ost esti m ate s at t he ti me of t he first a p pr o ­

pri ati o n — wit h t he u n derst a n di n g t hi s w o ul d be t he t otal a m o u nt

5 4 - 2 3 9 0 - 7 5 - 5 2
8 1 2

a p pr o pri ate d —t he n we w o ul d n ot nee d t o w or r y a b o ut t he pra ctic e of 

usi n g c urre nt prices t o pr oject f ut ure c osts, or t he pr o bl e m of c ost 

o verr u ns.

T he Cr o ss- Fl ori da Bar ge Ca n al was esti m ate d t o c ost $18 0 milli o n 

i n 1970. Ne w ec o n o mic st u dies i n dicate c ost s are g oi n g t o be gr eater 

t ha n $30 0 milli o n. B ot h pr oj ects, I mi g ht a d d, e nj o y str o n g s u p p ort i n 

C o n gres s.

Se nat or D o m e ni ci . Are y o u sa yi n g t he i ncre ase d c ost is n’t f oll o we d 

o n t he ot h er si de b y i ncrea se d be nefits?

Mr. R o b e r t s . T h at is t he ot h er p oi nt I was g oi n g t o ma k e. I sai d I 

ha d t w o p oi nts t o r eall y n ail d o w n o n a ss u m pti o ns.

T he m o st fla gra nt a b us e I ca n t hi n k of i n tec h ni q u es of b e nefit-c o st 

a nal ysis is t o g o t hr o u g h a peri o d of price i nflati o n, a n d c o nti n u e t o 

c o me bef ore t he C o n gress a n d si m pl y sa y — a n d t his ha p pe n s ye ar 

aft er ye ar — t h at s ure t he c osts ha v e g o ne u p, b ut t he be nefits ha v e 

g o ne u p t o e xa ctl y offset t he i ncre ase i n c ost; t heref ore, t he be n efitc ost rati o is u n c ha n ge d.

A n d t his is j u st a b s ol utel y wit h o ut ec o n o mic merit.

Se n at or D o m e ni ci . D y o u ha ve a n e xa m ple f or t h at ? Gi ve us t h at 

$80 0 milli o n o ne. D o y o u k n o w w h et h er t he be nefits c ha n ge d ?

Mr. R o b e r t s . T h e c or ps mai nt ai n s t h at t he be nefits g o u p i n 

pr o p orti o n t o t he i ncrea se d c osts t o mai nt ai n t he b -c rati o, ri g ht d o w n 

t he li ne. It is a bit of ma gic t h at see ms t o be d o ne e ver y year.

Se n at or D o m e ni ci . D t he y or d o t he y n ot?

Mr. R o b e r t s . N ot i n realit y. T h e c or ps o nl y ma ke s t he ass u m pti o n.

B ut t her e is g o o d s u p p ort f or t his pr oc e d ur e beca u se y o u —t h e 

C o n gr ess — h a ve alre a d y acce pte d a fa v o ra bl e ec o n o mic a nal y sis. T he 

pr ocess, o nce sta rte d, is t he n rei nf orce d w he n C o n gr ess d oes n ot 

q u esti o n t he c or ps’ “ ne w” fi g ures.

It is ver y har d t o u n d o o ne of t hese pr ojects o nce t he y get g oi n g. 

T h at is w h at b ot her s me a b o ut t he 600 acti ve pr oject s o n t ne b o o ks. 

T his is a l ot. It is u p w ar d of $50 billi o n of f ut ure o utla y s i n c u rre nt

rices. G o d k n o w s w h at it will be w he n t he y are t hr o u g h t he pr ocess, 

t re prese nts a hea v y b ur d e n o n f ut ure b u d g eta r y o utla y s, t o sa y 

n ot hi n g of t he e n vir o n me ntal res o ur ces i n v ol v e d.

Se nat or D o m e ni ci . T h a n k y o u, Mr. C hair m a n.

Mr. R o b e r t s . I w o ul d li ke t o briefl y s u m mari ze t he re m ai n der of 

m y testi m o n y. W hat I di d i n m y stat e m e nt was a d dre ss s o me pr o ble ms 

li ke disc o u nti n g. W h y d o y o u ha v e t o dis c o u nt? W hat d oes it mea n, 

a n d w h at are t he ec o n o mic relati o n s hi p s?

T he re is a l ot of c o nf usi o n a b o ut t his c o nc e pt. I att e m pt e d t o p ut 

it i n t he be st wa y I ca n t hi n k of; w h at its ec o n o mic i m p ort a nc e is 

a n d w h y it i s rel e va nt.

I ha ve tal k e d a b o ut t he pr o bl e ms of esti m ati n g be nefit s, t he pr o b ­

le ms of esti m ati n g c osts, a n d i n t he a p p e n di x I ha v e pr o vi de d f or 

y o ur use w h at is a pr o perl y d o ne be n e nt -c o st a nal ysi s.

T h e reas o n f or i ncl u di n g a be ne fit-c ost a nal y sis is t h at I ha v e 

f o u n d basic disa gre e me nts bet w ee n w h at I ha ve pres e nte d here a n d 

w h at is act uall y d o ne i n a c or ps ec o n o mic a nal ysis. Rat h er t h a n lea ve 

t he i m pre ssi o n t h at t his is h o w t he c or ps o per ates, it w o ul d be bette r 

state d t h at t his is h o w t he c or ps s h o ul d c o n d uct t heir be ne fit-c ost 

a nal y sis.

Se n at o r G r a v e l . Ma y be I c o ul d p ose a q uesti o n here t h at I t hi n k 

y o u mi g ht fi n d i nte resti n g. T he re are t w o facet s t o t he pr o bl e m. O ne
8 1 3

t h at I ha d s o me dee p c o nc er n wit h, is t he be ne fit-c ost a nal y sis. We 

ha ve t he c ost w hic h is q ua ntifia bl e ver y easil y i n d ollar ter m s, a n d we 

ta k e o ur be nefits w hic h we q ua nti f y i n a si milar fas hi o n i n d oll ars a n d 

ec o n o mi c t er ms. We ta k e t h ose b ot h ea sil y.

O b vi o usl y, i n a n y acti vit y t here is a pl us or mi n u s wit h res p ect t o 

t he ec ol o g y a n d e n vir o n me nt, a n d t here c o ul d be a pl us or mi n us wit h 

res p ect t o w h at I w o ul d c h o ose t o call a s oci oec o n o mic as p ect of t he 

pr o ble m. Of c o urse, b ot h of t hese are ver y, ver y diffic ult t o q u a ntif y.

We ha v e t he secti o n 80 st u d y t h at we ha v e g oi n g o n, w hic h is t o 

be c o m plete d t hi s yea r t o reall y f oc us o n h o w we c o ul d ha n dle t h ose 

pr o bl e ms. T hat d oe s n’t s pe a k t o t he q ue sti o n t h at y o u are tal ki n g t o.

I ha v e writt e n a c o u pl e c ha pte rs i n a b o o k o n t he a d versa r y p ositi o n.

I t hi n k we ma y tr y t o b uil d i nt o s o me ki n d of a d ver sar y sit uati o n 

w here we f u n d t he a d v ers ar y t o act as a t ot al i n d e pe n d e nt disci pli ne 

t o criti q u e t he de vel o pi n g data o n his o w n, u nrel ate d t o G o ver n m e nt 

acti vitie s, s o t h at it is j u st t her e f or t he e x p os ure.

Reall y, all we ha v e are pe o pl e li ke y o ur self a n d t he pr ofe ss or w h o 

c o me f or w ar d, w h o la b o r i n t heir vi n e yar ds. T h e la b ori n g is j u st 

e xcelle nt, b ut it is reall y n ot e n o u g h w he n y o u l o o k at t he t ot al size 

of t he p olic y t h at m u st be de vel o pe d. S o it ca n best be d o n e wit h t his 

a d ver sar y f u n d t o reall y g o at t his.

B ut let me gi ve y o u a n e xa m ple as t o a pr o ble m i n q u a ntif yi n g. We 

ha v e a c o m m u nit y i n Alas ka, a n d, of c o urse, I use m y St at e n ot fr o m a 

pr o vi ncial p oi nt of vie w b ut beca use I a m ver y k n o wle d gea ble a b o ut 

t he sit u ati o n.

Bet h el, Alas k a, is at t he e n d of t he K us k o k wi m Ri v er. We ca n 

bri n g i n s o me dee p- d raft vessels. It is a c o m m u nit y of a b o ut 2,5 00 

or 3,00 0; a vera ge per ca pita i nc o m e, if y o u reall y str etc h it, w o ul d be 

a b o ut $3,00 0, $4,00 0 per ca pita. T h at is reall y str etc hi n g it. T h at is 

bei n g ver y li beral. T hi s are a ser ve s a b o ut 12,0 00 t o 13, 000 pe o ple i n 

villa ges t h at ha v e a per ca pit a i nc o m e of a b o ut $2, 500.

S o we l o o ke d t o see if we c o ul d b uil d a p o rt t here t o i m p r o v e ec o ­

n o mic c o n diti o n s, beca us e t he c ost of li vi n g t her e is a b o ut t w o or t hre e 

ti me s w h at it is here i n Was hi n gt o n.

N o w, mea s ure t h at c ost of li vi n g t h at t he y ha v e wit h t he per ca pita 

i nc o m e a n d y o u ha v e a fairl y tra gic sit uati o n. Y o u ca n e x pe rie nc e 

t h at tra ge d y b y g oi n g o ut t her e a n d l o o ki n g at it. S oci ol o gists w o ul d 

a p p reciate t he pr o ble m.

S o w he n y o u ta k e i n t he n or mal alt er n ati ve s we ha v e, w h at is 

o b vi o usl y nee d e d t here is a bette r bre a ki n g car g o p oi nt f or t h at w h ole 

area.

T he G o ver n m e nt d o es p u m p a l ot of m o n e y i nt o facilities t o tr y a n d 

raise t he base of t h at s oci oe c o n o mic c o m m u nit y s o t he y ca n ha v e a 

bette r per c a pita i nc o me.

W he n y o u sa y, “ L et ’s ha ve a pr oject, or let’s ha ve a p o rt,” y o u g o 

o ut a n d d o y o ur little c o m p utati o n s, a n d y o u fi n d t h at y o u ca n’t get a 

be ne fit-c ost rati o t h at is sala ble u n der pre se nt crit eria.

Yet, if y o u t o o k i nt o c o n si de rati o n s o me s oci oec o n o mic be n efit s, a n d 

I w o ul d als o a d d e n vir o n me ntal be ne fits, beca u se if y o u g o i nt o t h at 

c o m m u nit y y o u ca n see e n vir o n m e nt al de gra dati o n t o a n u n us u al 

de gree, s o b ot h of t h ose c o ul d be i m p r o v e d. B u t bec a use we ca n’t 

q u a ntif y t he m, we as p oli c y m a ker s ca n n ot ta k e a tr u e i niti ati ve. All 

we ca n d o is p u t i n p u bli c ser vic e, h os pitals, t hi n g s t h at o nl y a d d res s 

t he m sel v es t o t he s y m pt o ms a n d n ot t o t he ill ness. S o m et hi n g li ke 

t his as a n ec o n o mic base w o ul d g o t o t he ill nes s.
8 1 4

ha t w o ul d be y o ur c o m me nts as t o h o w we mi g ht a d d res s o u r ­

sel ves t o t h at ki n d of pr o ble m ?

Mr. R o b e r t s . T h ere is n ot hi n g t h at h ol ds y o u t o a restricti v e 

ec o n o mic a nal ysis. I n fact t he a nal ysis s h o ul d be as br o a d as p ossi ble 

s o as t o a d dress t he ver y pr o ble m y o u raise d. O nce y o u as p oli c y ­

ma k ers deci d e f or e xa m pl e, t h at t he sta n d ar d of li vi n g is l o w, per 

ca pit a i nc o m e is bel o w nati o n al a ver a ges, t here are a va riet y of wa ys 

t o ha n dle t his.

It ma y be t h at t he ec o n o mic a nal ysis w o ul d n ot tell y o u t h at t hi s 

is g o o d or ba d p olic y i n is olati o n. T h e a nal ysi s c o ul d ver y well tell y o u 

w h at t he c o m bi n ati o n of p olicies mi g ht be t o a d dr ess y o ur pr o ble m. 

T hi s c o ul d be a pa rt of it, i n c o nj u n cti o n wit h bette r n utriti o n, p u blic 

healt h, all t y p es of alte r nati ve s.

Y o u raise a ver y g o o d p oi nt here t h at g oes t o s o m et hi n g I t hi n k 

is g oi n g t o ha ve t o ha v e a n a wf ul l ot of rese arc h d o ne o n i n ter ms of 

t he ec o n o mic i m pa ct of Fe d eral s pe n di n g. Eac h Fe d eral d ollar of 

s pe n di n g d oes n ot ha v e t he sa m e i m pa ct o n e m pl o y me nt, i nc o me, or 

o ut p ut.

T h ere are tre me n d o us diff ere ntial effects i n ter m s of w hat y o u as t he 

Fe d eral G o ver n m e nt deci de t o s u bsi dize. T he wat er w a ys are o ne 

area y o u ha v e deci d e d t o tra nsf er i nc o m e fr o m t he ge neral re v e n u e 

t o a s pecific pa rt of t he ec o n o m y.

It is a str ai g ht s u b si d y pr o g ra m ri g ht fr o m t he st art. M y o nl y 

p oi nt is t h at it ma y be t he pr o per t hi n g t o d o i n y o ur e xa m ple i n 

ter m s of ge n erati n g e m pl o y me nt a n d s o o n, or it ma y n ot be t he 

c orrect re m e d y f or t he sit u ati o n.

A n e q ual or e ve n less e x p e n dit ur e ma y pr o vi de y o u a m uc h bette r 

yiel d. B ut j u st beca use y o u s pe n d $3 00 milli o n o n, let’s sa y, a bar g e 

ca nal, y o u certai nl y d o n’t get t he sa m e e m pl o y m e nt effect i n a n are a 

y o u w o ul d wit h $3 00 milli o n i n a re gi o nal healt h pr o gra m, or a n 

alt er n ati ve p olic y.

Se n at o r G r a v e l . I t hi n k t he pr o ble m is q u a ntif yi n g. N o q ue sti o n 

t h at C o n gress ca n ma ke t hese j u d g m e nt s. We call t h at p olitical cl o ut 

w he n y o u are li ke S pe a ker Al b ert w h o o b vi o u sl y ha d a gr eat i nfl u e nce 

o n ma ki n g t he T ulsa Sea p ort. T h at is, of c o urse, a n ot h er de gr ee of 

w h at I a m tal ki n g a b o ut here.

B ut t h at is a ver y i na de q uat e wa y of ma ki n g p olic y, as I see it. 

I w o ul d rat h er see us ta ki n g c o u nsel fr o m t he aca d e mic c o m m u niti es 

s o t hat we mi g ht tr y t o de vel o p s o me ki n d of a f or m ul a a n d n ot j u st d o 

it o n o ur p olitical cl o ut a n d be acc us e d of ha vi n g b o o n d o g gle d. I 

w o ul d rat h er see it ha v e a str o n ge r base. T ha t is a pa rt of t he reas o n 

f or o ur secti o n 80 st u d y.

I mi g ht c o m me n d t h at st u d y t o y o u a n d t o Pr ofe ss or Barl o o n 

a n d ma y be y o u ca n c orre s p o n d wit h us a n d gi ve us y o ur per ce pti o ns 

o nce t he st u d y is i n. I mi g ht s u g gest t h at o n y o ur o w n i nitiati v e, 

as s o o n as t he st u d y is o ut, y o u get a h ol d of it a n d gi ve us y o u r i n p ut. 

We w o ul d a p pre ciate y o ur c o m m e nts.

T he s ol uti o n has t o be de vel o pi n g s o me ki n d of q ua ntifia ble f or m ula 

a n d n ot j u st let it g o t o t he w hi ms of t he p olic y ma kers.

Mr. R o b e r t s . I ha v e o ne ot h er c o m me nt I w o ul d li ke t o ma k e, if 

I c o ul d. T hat is a rec o m m e n d ati o n t h at I ha v e f or y o u as y o u are 

face d wit h a n e n or m o us n u m ber of pr ojects a n d d oll ar val ues.
8 1 5

As I sai d, I t hi n k it is u nr eali stic t o ass u m e y o u c o ul d a nal yze eac h 

pr oje ct, a n d I d o n’t t hi n k y o u ha v e t o. I belie ve y o u s h o ul d ta k e a 

l o o k at all t he lar ge pr oje cts —t her e are n’t t h at ma n y a n y wa y —t he 

$30 0 milli o n a n d a b o ve.

T he n f or t h ose 1,200 or 900, w h ate ver is t he a p pr o pri ate n u m ber, 

t h at y o u select at r a n d o m a s a m ple of j u st a fe w a n d p ut t he m t hr o u g h 

a n i nte nsi v e re vie w. I w o ul d al m ost g u ara nte e t h at t he le vel of ec o ­

n o mic s o p histicati o n f or all pr ojects w o ul d be i m pr o ve d, beca use t he 

C or p s of E n gi nee rs w o ul d n’t k n o w w hic h o nes y o u are g oi n g t o select.

o u c o ul d d o it aft er t he a p pr o pri ati o n heari n gs eac h yea r, bef or e 

t he b u d g et is fi nalize d a n d I t hi n k it w o ul d str e n gt h e n y o ur o ve rsi g ht 

pr ocess. I belie ve y o u w o ul d get si g nifica nt res ults fr o m t hi s pr oc e d ure 

wit h a mi ni mal e x p e n dit ur e of res o urces a n d staff a n d ti me.

T hat is a b o ut w h at I wa nte d t o e m p h asize. T h a n k y o u.

Se nat or G r a v e l . T h a n k y o u ver y m uc h. We a p p reciate y o ur 

testi m o n y.

[ Mr. R o be rts ’ state m e nt f oll o ws:]
8 1 6

T E S TI M O N Y O F P A U L E. R O B E R T S

B E F O R E T H E S U B C O M MI T T E E O N W A T E R R E S O U R C E S

U NI T E D S T A T E S S E N A T E

J U N E 1 9, 1 9 7 5

W A S HI N G T O N, D . C .

'• T H E E C O N O MI C B A SI S F O R T H E E V A L U A TI O N

O F N A V I G A T I O N P R OJ E C T S''
8 1 7

• T h e Ec o n o mic B a si s f o r t h e E v al u ati o n of N a vi g ati o n P r o je cts "

1. T he nee d f o r c o m p re h e n si v e ec o n o mic a n al y si s

2. Ec o n o mic a n al y si s

2. 1 B e n e fi t- c o st a n al y sis

2. 2 I m p ort a nc e of as s u m pti o ns

3. Disc o u nti n g

3. 1 Pr o ce d ure

3. 2 Ec o n o mic e f f e c t of dis c o u n ti n g

4. B e n efit es ti m ate s

4. 1 E x a m ple s

5. C ost es ti m ate s

5. 1 E x a m ple s

6. A p pl yi n g t h e t e s t s

7. Rec o m me n d ati o n

8. A p pe n di x

8. 1 A b e n e fit - c o s t a n al y sis

9. Bi o gr a p hi c
8 1 8

. T he n e e d f o r c o m p re h e n si v e ec o n o mic a n a l y si s

As a n e c o n o m is t, w h o h a s c l o s e l y o b s e r v e d t h e d e v el o p m e nt of

o u r n a ti o n's w ate r r e s o u r c e s f o r t h e p a st s e v e r a l y e a r s, 1 b e li e v e 

t h a t I a m I n a p o s iti o n t o o f f e r s o m e p o s iti v e s u g g e sti o n s f o r i mp r o vi n g t h e ec o n o m ic a n a l y si s o f w ate r r e s o u r c e p r o j e c t s .

1 w o ul d li k e t o b e gi n m y te sti m o n y b y c o m m e n di n g t h i s S u bc o m m itte e f o r t h e s u b st a n ti v e n a t u r e o f t h e s e O v e r si g ht H e a ri n g s. 

As C h ai r m a n G ra v el s o a p tl y s t a t e d d u ri n g t h e H e a ri n g s l a s t y e a r:

I t i s ti m e f o r u s t o h a v e a g o o d l o o k a t t h e 

t o t a l c i v il w or k s p r o g ra m . We w a nt t o k n o w 

w hat t h e C or p s o f E n gi n e e r s i s d oi n g a n d h o w 

i t i s d oi n g i t . We n e e d t o l e a r n w ha t p r o b ­

le m s e x i st a n d w h at t h e C o n g re ss c a n d o t o 

s ol v e o r a ll e v i a t e t h e s e p r o ble m s. We m ust 

d ete r m i n e i f t h e p r i o r iti e s a n d g o als o f t h e 

c i v il w or k s pr o gra m s h o ul d re m ai n t h e sa m e a s 

i n y e a r s p a s t, o r i f c h a n gi n g c o n d iti o n s d i c ­

t a t e a r e a s s e s s m e nt o f t h e m is si o n o f t h e C o r p s.

T h e re a r e str o n g ec o n o mic r e a s o n s f o r a c o m p re h e n si v e re vie w o f 

t h e p r o j e c t s o f t h e C or p s o f E n g i n e e r s. As wa s s o v i v i d l y p o i n te d o ut 

i n y o u r h e a ri n g s l a s t y e a r, t h e r e i s a l a r g e c o m mitt m e n t o f fi n a n c i a l 

a n d e n vir o n m e nta l r e s o u r c e s a t st a k e , f o r y o u i d e n ti f i e d 6 1 4 li v e p r o ­

j e c t s o n t h e b o o ks o f t h e C o r p s, pl u s a n ot h e r 6 1 8 d e f e r r e d a n d i n a c ti v e 

p r o j e c t s. T h e t o t a l c o st o f t h e s e p r o j e c t s a m o u nt t o ma n y b illi o n s 

o f d o ll a r s i n f u t u r e b u d g eta r y o u tl a y s.

D uri n g t h e f i r s t t w o h u n d re d y e a r s o f t h i s c o u n tr y, t h e s u p pl y 

o f w ate r a n d fi n a n c i a l r e s o u r c e s wa s v a st c o m pa re d t o o u r re m ai n i n g 

r e s o u r c e s, t o s a y n o t h i n g o f t h e fi n a n c i a l b u r d e n u n d e r c o n d iti o n s o f 

c a p it a l s c a r c it y a n d i n c r e a si n g c o s t s. F or t h e s e r e a s o n s, e a c h o f
8 1 9

t h e s e p r o p o s e d p r o j e c t s s h o u l d r e c e i v e c l o s e e x a m i n a t i o n t o d e t e r m i n e 

I f i t I s s t i l l I n t h e p u b l i c I n t e r e s t t o u s e a n o t h e r , a n d t h e n s t i l l 

a n o t h e r i n c r e m e n t o f n a t u r a l r e s o u r c e s a n d t o e x p e n d e v e r s c a r c e c a p ­

i t a l r e s o u r c e s * A s t i m e p a s s e s , e a c h p r o j e c t s h o u l d b e e x a m i n e d w i t h 

g r e a t e r c a r e a n d d e t a i l , b e c a u s e w i t h a d i m i n i s h i n g s u p p l y o f n a t u r a l 

r e s o u r c e s , t h e d e c i s i o n s a u t o m a t i c a l l y h a v e a g r e a t e r i m p a c t .

2 . E c o n o m i c a n a l y s i s

E c o n o m i c a n a l y s i s h a s a l o n g a n d a l m o s t u n i q u e t r a d i t i o n i n t h e

e v a l u a t i o n o f w a t e r r e s o u r c e p r o j e c t s . T h e f o r m o f t h e a n a l y s i s h a s

e v o l v e d a s b e n e f i t - c o s t a n a l y s i s , w h i c h s t e m s f r o m t h e l a n g u a g e o f

t h e F l o o d C o n t r o l A c t o f 1 9 3 6 s t a t i n g t h a t t h e F e d e r a l G o v e r n m e n t

s h o u l d p a r t i c i p a t e i n w a t e r r e s o u r c e d e v e l o p m e n t :

" i f t h e b e n e f i t s t o w h o m s o e v e r t h e y

a c c r u e a r e i n e x c e s s o f t h e e s t i m a t e d c o s t s . "

2 . 1 B e n e f i t - c o s t a n a l y s i s

B e n e f i t - c o s t a n a l y s i s , w h i c h i s e x p r e s s e d i n b e n e f i t - c o s t r a t i o s ^ 

i s t h e c o r n e r s t o n e i n d e t e r m i n i n g e c o n o m i c f e a s i b i l i t y . F o r o n c e a 

f a v o r a b l e b e n e f i t - c o s t r a t i o i s g e n e r a t e d ( b e n e f i t / c o s t s g r e a t e r t h a n 

o n e ) , a n d C o n g r e s s a c c e p t s t h e u n d e r l y i n g e c o n o m i c a s s u m p t i o n s u p o n 

w h i c h t h e a n a l y s i s w a s c o n d u c t e d , t h i s r a t i o a s s u m e s i m p o r t a n c e i n 

i n f l u e n c i n g b u d g e t a r y o u t l a y s o v e r m a n y y e a r s , e v e n i f t h e b a s i c 

c o n d i t i o n s h a v e s i g n i f i c a n t l y c h a n g e d .

I n f a c t , o n c e t h e f i r s t f a v o r a b l e b e n e f i t - c o s t r a t i o i s a c c e p t e d 

b y C o n g r e s s , c h a l l e n g i n g t h e v a l i d i t y o f t h e a s s u m p t i o n s w h i c h l e d
C o C he r a ti o I s t o t e s t t h e v e r a cit y of t h e C o n gr es s I t s e l f

. 2 I m p ort a n ce of as s u m pti o ns

T he c r iti c a l a n d l a r g el y u n se e n f a ct o r i n b e n e fit- c o st a n al y sis 

i s t h e ec o n o mic as s u m pti o ns us e d t o a r ri v e at i n di v i d u al c ate g o rie s of 

b e n e fit s a n d c o st s. T h es e as s u m pti o n s w hic h lit e r a ll y d et er m i n e t h e 

o utc o me of t h e a n al y sis m u st be e x p li c it i f p r o j e ct s a re e v er t o 

r e c ei v e c r iti c a l re vie w. A fe w of t h e as s u m pti o ns w hic h a r e i mp li c it i n t h e a n al y sis a re :

— w hic h b e n e fit s a re i n cl u d e d i n t h e a n al y sis 

- - w h at gr o w t h r at e s i f a n y w er e us e d

— o v er w h at p eri o d of ti m e d o t h e b e n e fit s e x te n d

— we re t h e b e n e fit s i n cl u d e d i n t h e a n al y sis a t t h e pr o p er ti m e

— w hic h c o sts were c o n si d ere d a n d w hic h e x cl u d e d

— we re p ri c e s e x pe ct e d t o p r e v ail at t h e ti m e t h e c o sts a r e t o 

be i n c u rr e d, or we re c u rr e nt p ri c e s u se d t o e sti m ate f ut u r e 

c o sts

- - w er e a ra n g e of p o s si b le ec o n o mic v a ria ble s us e d a n d i d e n tifi e d 

i n t h e a n al y sis t o ac c o u nt f o r t h e u n c e rta i n t y of f ut u r e e v e nts , 

s u c h a s alt e r n a ti v e i n t e r e st r a t e s us e d t o dis c o u nt b e n e fit s a n d 

c o st s

T he se a re o nl y a fe w of t h e m or e i m p o rt a nt as s u m pti o ns w hic h m u st be 

ma de i n a n y b e n e fit- c o st a n al y si s. T h er e a r e h o we ve r, s o me as s u m pti o ns 

fre q u e ntl y ma de w hic h ha ve n o b a si s i n ec o n o m ic a n al y si s:

— t h at t h e b e n e fit s w er e e sti m ate d i n a c o n s e r v ati v e ma n n er t o 

ac c o u nt f o r t h e u n c e rt ai nt y o f t h e i r f ut u r e o c c u rr e n c e. T he 

a p p r o p ria te pla c e t o ac c o u nt f o r ri s k i s i n t h e i n t e r e st r a t e 

u se d t o dis c o u nt f ut u r e b e n e fit s a n d c o st s.

- - P er h a p s t h e m o st fl a g r a nt a b us e o f t h e te c h ni q u e of b e n e fitc o st a n al y sis i s t o ass u m e t h at wit h i n c r e a si n g c o st s, b e n e fit s 

w ill i n c r e a s e i n t h e sa me p r o p o rt i o n s o a s t o m ai n ta i n t h e 

sa me b e n e fit- c o st r a ti o .

C o n se q u e n tl y, wit h o ut a p r o p e r i n f o r m ati o n b a s e, t h e ec o n o m ic 

a n al y sis ma y bec o me s e lf - s e r v i n g. F o r i n ste a d of u si n g ec o n o mics as 

a n i n t e g r a l p a rt of t h e d e cis i o n p r o c e s s, i t bec o mes a d e vic e t o
8 2 1

J u stif y a d e cis i o n w hic h was ma de w it h o ut s o u n d ec o n o mi c a n al y si s.

3 . Dis c o u nti n g

T he p ri n ci p al re a s o n t h a t b e n e fit s a n d c o st s m u st be dis c o u nte d 

i s t h at t h e y e x te n d o ve r l o n g p e ri o d s o f ti m e, a n d ea c h o c c u r f o r 

d if f e r e n t ti m e i n t e r v a l s. F or i n st a n c e, m o st of t h e c o st s m u st be 

i n c u rre d p ri o r t o t h e yie l d i n g o f a n y b e n e fit s. T o e v al u ate u n i q u e

st re a m s of b e n e fit s a n d c o st s o n a c o n n o n b a si s, ea c h b e n e fit a n d

c o st m u st be dis c o u nte d t o p r e s e nt v al u e. W hen a ll b e n e fit s a n d 

c o sts ha ve be e n p r o p e rl y e x p re ss e d i n te r m s of p r e s e nt v al u e, t h e r e 

i s a b a si s f o r d ete r m i n i n g t h e ec o n o mic f e a s i b ilit y of t h e p r o j e c t.

T he ot h e r i m p ort a n t re a s o n f o r e v al u ati n g b e n e fit s a n d c o sts 

i n te r m s of p re s e nt v al u e i s t h a t t h e d e cis i o n t o c o m mit f ut u r e 

r e s o u r c e s m u st be ma de i n t h e p r e s e n t, o n t h e b a sis o f t h e m o st 

re a s o n a ble e sti m ate s of t h e ec o n o mic v a ri a b l e s t h at ma y o cc ur i n

t h e f u t u r e.

3. 1 Pr o ce d u re

T he met h o d of dis c o u nti n g i s r e l a t e d t o t h e c o n ce pt of c o m p o u n d 

i n t e r e s t. T his r el ati o n s h i p i s s h o w n i n Fi g u re 3. 1 ( A) a n d 3. 1 ( B ). 

T h e c o nc e p t i n v ol v e s o n e of p e r s p e cti v e or h o w y o u vi e w t h e pr o ble m.

I f y o u e n vis i o n t h e c o m p o u n d i n t e r e s t pr o ble m fr o m t h e b ott o m of t h e 

s t a i r s i n Fi g ure 3. 1 ( A ), t h e n i t i s e vi d e nt t h at o ve r ti m e, sa y 1 0 

y e a r s, $ 1. 0 0 w ill gr o w t o $ 1. 6 3 at t h e r a t e of 5 7. c o m p o u n d i n t e r e s t.

Vi e wi n g t h e pr o ble m fr o m t h e t o p o f t h e s t a i r s , i n Fi g u re 3. 1 ( B ), 

t h e q u e sti o n i s p o se d a s: w h at i s $ 1. 0 0 t o be r e c ei v e d te n y e a rs
8 2 2
4 U G ) — $ 0. 9 1 ( 2 ) $ 0. 6 6 ( 3 ) FI G U R E 3. 1 ( B) Dis c o u n ti n g ( 5 X ) $ 0. 8 2 ( A) $ 0. 7 8 ( 5 ) $ 0. 7 5 ( 6 ) $ 0. 7 1 ( 7 ) $ 0. 6 8 ( 8 ) $ 0. 6 4 $ 0. 6 1 T O D A Y ( 1 0) Y E A RS ( 9 )
DI S C O U N TI N G 0 ^ 2 . ( 4 ) $ 0. 7 8 FI G U R E 3 . 2 C o m bi ni n g t h e c o n c e p t s $ ° * 9 1 ( 2 ) $ 1. 2 2 ( 4 ) $ 0. 8 6( 3 ) $ 1. 2 8 ( 5 ) $ 1. 1 6 ( 3 ) $ 1. 0 5 ( 1 ) C O M P O U N D I N T E R E S T 5 X $ 0. 9 5 $ 1. 0 0 P r e s e n t V al u e ( 1 ) Q O ( 5 )
8 2 5

fr o m n o w w ort h t o da y at a n i n t e r e s t or dis c o u nt r a t e of 5 X. T h e p r e s e nt 

v al u e of t h e f ut u r e $ 1. 0 0 i s e q u al t o $ 0. 6 1 t o d a y. W hy? T h e $ 0. 6 1 

gr o w i n g at a c o m p o u n d i n t e r e st r a t e of 5 X w o ul d e q u al $ 1. 0 0 i n te n

y e a r s.

3. 2 Ec o n o mic e f f e ct of dis c o u nti n g

I n t a b l e 3. 1, t h e ec o n o mic e f f e c t of dis c o u nti n g i s s h o w n, u si n g 

a lt e r n a ti v e r a t e s of i n t e r e s t. B ec a u se b e n e fit s o cc ur o v er a m uc h 

l o n g er ti m e t h a n c o st s, t h e e f f e ct o f dis c o u nti n g b e n e fit s a n d c o sts 

at t h e sa me i n t e r e st r a t e pr o d u ce s a n o n - p r o p o rti o n al r e s u lt. F o r 

e x a m pl e, a st re a m of b e n e fit s dis c o u nte d at 6 X i s e v al u ate d i n t h e 

5 0 t h y e ar at $. 0 5 f o r ea c h d o ll a r, at p r e s e nt v al u e. C o st s h o w e v er, 

w o ul d be e v al u ate d at $ 0. 7 5 f o r ea c h d o ll a r i n t h e 5t h y e ar of a 

c o n str u cti o n pr o g ra m. T he i m p o rt a nt c o n ce pt t o c o n si d e r i s : T he 

hi g h e r t h e c o st s, t h e g r e at e r a f f e c t dis c o u nti n g h a s o n t h e b e n e fitc o st a n al y si s, f o r t h e b e n e fit c o st r a ti o i s m ore s e n siti v e w he n 

d if f e r e n t i n t e r e st r a t e s a r e u se d t o dis c o u nt f ut u r e b e n e fit s a n d 

c o st s. As a r e s u lt, t h e e f f e ct i s m ore d r a sti c o n b e n e fit s t h a n 

c o st s. T his me a ns t h e a n al y sis m o re c r iti c a ll y a f f e c t s p r o j e ct s 

wit h hi g h e r c a p it a l o utl a y s.

4. B e n e fit e sti m ate s

E sti m ate s o f f ut u r e b e n e fit s f o r a t y p i c a l n a vi g ati o n p r o j e ct 

w o ul d e n t a il ma ki n g j u d g m e nts f o r at l e a st t w o c at e g o ri e s, tr a n s p o r ­

t a ti o n sa vi n g s a n d r e c r e ati o n.
B L E 3. 1

Ec o n o mic ff e c ts of Dis c o u n ti n g

Pr es e n t V al ue of $ 1. 0 0

Di sc o u nt e d

a t

Ye a rs

( 2 ) - ( 3 ) ( 4 ) . ( 5 ) ( 1 0) ( 2 5) ( 5 0)

4 X $. 9 6 . 9 2 . 8 9 . 8 5 . 8 2 . 6 8 . 3 8 . 1 4

5 X . 9 5 . 9 1 . 8 6 . 8 2 . 7 8 . 6 1 . 3 0 . 0 9

6 X . 9 4 . 8 9 . 8 4 . 7 9 . 7 5 . 5 6 . 2 3 . 0 5

# # # // # # # # # #

R el ati o n s h i p s:

At L O WE R I n te r e st r a te s;

( a ) f u t u re b e n e fit s ar e w or t h M O R E i n p re se nt v al u e

( b ) f u t u re c o st s ar e HI G H E R i n pr es e n t v al u e

At HI G H E R i n t e r e s t r a t e s;

( a ) f u t u re b e n e fit s ar e w or t h L ES S i n p re se nt v al u e

( b ) f u t u re c o s t s ar e L O WE R i n p re se nt v a l u e
8 2 7

i o

4. 1 E x a mples

Bec a use t he v al u e of rec re a ti o n w ill n ot be re ali ze d u n til

m ost or all of t he c o n str u cti o n o utl a y s h a ve bee n c o m plete d, t his

be nefit h as bee n e ntere d o n a del a ye d b asis. F or e x a m ple, It ma y

be deter mi ne d t h at t he rec re a ti o n v al u e of t he pr o ject Is $ 3. 7 5

milli o n per ye ar. T he disc o u nte d v al ue, at 3 X w o ul d be e ntere d

i nt o t he e q u ati o n as $ 33 milli o n, f or t he lif e of t he pr oje ct.

C are s h o ul d be use d I n deter mi ni n g t his c ate g or y of be nefit s o as

n ot t o d o u ble c o u nt. O nl y t he net us a ge of a n y cre a te d f a cilit y

s h o ul d be c o nsi d ere d I n t he fi n a l fi g ur e.

T he n a vi g ati o n be nefit Is fi g u re d I n t h is e x a mple I n t wo p arts:

fi r s t, it Is assu me d c h at t he a n n u al fi g ur e w ill gro w at 3 % f or t he

fi r st 1 5 ye a rs, sec o n dl y, It t h er e afte r w ill be a le ve l a mo u nt.

When b ot h of t he se c alc ul ati o n s ere deter mi ne d, t he re s ulti n g dis ­

c o u nte d v al ue is $ 1 02 milli o n ( 3 3 milli o n f or t he fi r st 1 5 ye ars,

a nd 4 7 milli o n f or t he re mai n der of t he c a lc ul a ti o n ).

T he deter mi n ati o n of n a vi g ati o n b e n efit s, o n t he b a sis of

s a vi n g s t o s hi p pe rs h as bee n crltlc tc o d as a c o nce pt w hic h d oes n ot

gi v e f u ll att e n ti o n t o t he m ost ge ner al s yste m of res o u rce u tili s a ti o n.

I n f a ct, s a vi n g s t o s hi p pe rs are J ust t h at, a f u ll s u bsi d y (tr a n sfe r

of res o ur ces) fr o m t he fe d er al g o ver n me nt t o t h is se g me nt of I n d ust r y..

T here Is n o e vi de nce t h at dif fe re nc es I n tr a ns p ort a ti o n c o st s ge nerate d b y c o mp ari n g c o sts t o s hi p p ers wit h r a tes of alte r n ati v e mo des

of tr a ns p ort a ti o n re pr ese nts a ny s a vi n gs t o s o ci et y. One r at he r

5 4- 2 3 9 0 - 7 5 - 5 3
8 2 8

ca di d s h i p p e r t e s ti f i e d b e f o re t h e I n t e r s t a t e C o m merce C o m missi o n, 

w he n q u e sti o n e d a b o ut t h e b e n e fit t o c o ns u m er s fr o m tr a n s p o rt ati o n 

sa vi n g s: " I ’ m g o i n g t o t e l l y o u t h at we p ut t h e m o ne y i n o u r p o c k et 

li k e e v er y b o d y els e d i d. " ( 2 3 5 I C C 1 1 5)

T he G e n er al A cc o u nti n g O ff ic e r e c e ntl y st u die d a n u m ber of 

w ate r re s o u rc e p r o j e ct s a n d c o nc l u de d t h at t h e r e a r e s e v e ra l d e f e cts

I n t h e e sti m ati o n of b e n e fit s:

- » b e n e fit s we re n ot ba se d o n a n a n al y sis of c o n dit i o n s wit h 

a n d wit h o ut t h e p r oje ct

— b e n e fit s w er e n ot c o m p ute d i n a c o n sis te nt ma n n er 

~ b e n e fit c o m p u tati o n s we re n o t a d e q u ate l y s u p p o rt e d

( G e n er al A cc o u nti n g O ffic e, I m pr o ve me nts Nee de d i n Ma ki n g 

B e n efit- C o st A n al y se s f o r Fe d o ra 1 M at er R es o u rc es Pr o j e c t s,

Se pt e m be r 2 0, 1 9 7 4)

5. C o st e sti m ate s

T he m aj or c ate g o rie s of c o st s w hic h m u st be c o n si d e re d i n a 

b e n e fit- c o st a n al y sis a r e:

— c a p it al ( c o n str u cti o n ) o utl a y s

— o p e ra ti o n a n d m ai nte na n ce

— e n vir o n m e n tal

5. 1 E xa m ples

As was p oi n te d o ut i n t h e s e cti o n o n dis c o u nti n g, f u t u r e c o sts 

a r e l o we r i n p re s e nt v al u e t h a n t h e a ct u al v al u e of t h e o u tl a y. T he 

re a s o n f o r t h i s i s t h at t h e r e a r e a lt e r n ati v e u s e s f o r t h e re s o u rc e s

u n til t h e a ct u al o utl a y, t h e m o st o b vi o u s b ei n g t h at t h e re s o u rc e s 

a r e l e ft i n p ri v at e ha n d s s u c h a s d e p o sit e d I n sa vi n g s ac c o u nts 

e a r n i n g c o m p o u n d I n t e r e s t.
8 2 9

1 2

F i r s t, a sc h e d ule f o r t h e c a p it a l o utl a y s m ust be d ete r m i n e d. 

T he u s u al p att e r n I s t h at t h e e x p e n dit u re s a r e r e l a ti v e l y s m all I n 

t h e e a rl y y e ars a n d gr o w t o a ma xi m u m a n d t h e n t a l l o f f n e a r t h e e n d 

o f t h e c o n str u cti o n p h a se . S uc h a sc h e d ule f o r c a p it a l e x p e n dit u re s 

of $ 1 1 5 m il li o n o v er t h e n e xt fi v e y e a r s, dis c o u nte d a t 5 % w o ul d be

e nte r e d i n t o t h e c al c u l ati o n a s $ 1 0 2 m illi o n.

M ai nt e n a n ce e x p e n dit u re s s h o ul d be d ela y e d u n til t h e y a ct u all y 

w ill be e x pe n d e d. T he p r e s e nt v al u e of $. 7 m illi o n f o r 5 0 y e a r s, 

s t a rti n g a ft e r t h e c o m pleti o n of t h e c o n str u cti o n p h a s e, i s v al u e d 

at $ 1 0. 3 m illi o n, dis c o u nte d at 5 %.

E x a m ple s of e n vir o n m e n tal c o st s a r e fl o o d p l ai n a n d st re a m 

v al u e s. T he c o st of t h e fl o o d p l a i n , f o r t h e ec o n o mic l i f e of t h e 

p r o j e ct ( 5 0 y e a r s ), dis c o u nte d at 5 % w o ul d a m o u nt t o $ 3 6. 6 m illi o n 

i n t h i s e x a m pl e. T he st re a m v al u e s, fi g u re d o n t h e sa me b a si s 

w o ul d be v al u e d at $ 7. 3 m illi o n. T h e v al u e s of b ot h t h e fl o o d p l ai n 

a n d t h e st re a m v al u e s a r e e nte r e d i n t o t h e a n al y si s at t h e ti m e 

t h e y w ill b e g i n t h e l o s s e s, i n t h i s i n sta n c e at t h e e n d of t h e 

c o n str u cti o n p h as e.

T he t o t a l i n v es t m e n t c o st f o r t h i s e x a m pl e i s $ 3 0 0 m illi o n . As 

ca n be se e n, t h e c o sts e n t e r t h e a n al y si s at d i f f e r e n t ti m e s, s o 

t h e p r o c e ss of dis c o u nti n g i n a c o rr e ct ma n n er i s i m p o rt a nt t o t h e 

v a li d it y of t h e b e n e fit- c o st a n a l y si s. T he dis c o u nte d v al u e of 

t h e s e e x p e n dit u re s at 5 % i s a b o ut o n e - h alf o r $ 1 5 6 m illi o n. T his

n u m ber t h e n bec o m es t h e c o st f a ct o r of t h e b e n e fit- c o st r a ti o
8 3 0

1 3

T he b e n e fit fi g u r e o f t h e r a ti o was d et er m i n e d ( s e cti o n 4. 1 ) 

b y c o m bi ni n g r e c r e ati o n a n d n a vi g ati o n b e n e fit s a n d e q u al $ 1 5 7 m illi o n. 

B ot h b e n e fit s a n d c o sts dis c o u nte d at 5 X pr o d u ce a b e n e fit- c o st 

r a ti o j u st e q u al t o 1. At t h e 5 X i n t e r e st r a t e , t h e c o sts a n d 

b e n e fit s a re e q u al.

I n p r a cti c e, t h e r e ha ve be e n ma n y pr o ble m s e n c o u nte re d i n e s ­

ti m ati n g f ut u r e c o st s. T he G A O st u d y p r e vi o u sl y m e n ti o n e d c o ncl u de d 

t h a t: " P r oje ct c o st s a n d i n d u ce d c o sts we re n ot f u ll y c o n si d ere d 

i n b e n e fit- c o st d ete r m i n ati o n s." P a rt of t h e pr o ble m li e s wit h t h e

met h o d u se d t o e sti m ate f ut u r e c o st s. T he p r a cti c e o f u si n g c u rr e nt p ri c e s t o e sti m ate f ut u r e c o sts le a d s t o la r g e e r r o r s i n t h e 

e sti m ate fr o m t h e b e gi n ni n g. T his pr o ble m bec o m es e vi d e nt b y 

e x a m i n ati o n of t h e B u d get A p p e n di ce s o v er s e v e r al y e a r s. I n o ne 

i n sta n c e, fr o m F Y 1 9 6 9 t o F Y 1 9 7 6, t h e fi n a l e sti m ate d c o st f o r 

o ne p r oje ct i n c re a s e d n e a rl y t h r e e ti m es (f r o m $ 2 9 0 t o o v er $ 8 0 0 

m illi o n ). B ut t h e c o m mitt m e nt of $ 8 0 0 m illi o n of f u t u r e re s o u r c e s 

was b as e d o n t h e as s u m pti o n t h e p r oje ct w o ul d c o st $ 2 9 0 m illi o n.

Eac h of t h e e x a m pl es of b e n e fit s a n d c o st s a r e br o u g ht t o g et h e r 

i n a -. b e n e fit - c o st a n al y sis i n t h e A p p e n di x. T h e as s u m pti o n s a re 

dis c o u nte d at 4 X, 5 X a n d 6 X r e s p e cti v el y. F o r t h e a n al y si s t o be 

c o m plete, s e v e ra l a lt e r n a ti v e as s u m pti o ns c o n c er n i n g t h e v al u e s

a rri v e d at f o r t h e b e n e fit s a n d c o sts s h o u l d al s o be t e s t e d . A n d

alt h o u g h 1 ha ve n ot i n cl u d e d t h e s e a lt e r n a ti v e as s u m pti o n s i n t h e 

A p p e n di x, t h i s ki n d of a n al y sis i s p o s si b le .
8 3 1

1 4

6. A p pl yi n g t h e t e s t s

Eac h p r o j e ct w hi c h I s c o n si d ere d f o r f e d e r al fi n a n ci n g s h o ul d 

me et t h e f o ll o w i n g t e s t s wit h r e s p e ct t o ec o n o mic j u s ti fi c a ti o n :

— a re t h e as s u m pti o n s re a s o n a ble

— i s t h e d ata a c c u r ate

— i s t h e a n al y si s c o n sis te nt

- - i s t h e d i st ri b u ti o n of c o st s e q uit a bl e w he n c o m p ar e d t o 

t h e b e n e fi c i a ri e s of t h e pr o p os e d p r o j e ct 

I n s h o rt, a r e t h e r e s u lt s of t h e ec o n o mic a n al y si s b eli e v a ble ?

7. Re c o m me n d ati o n

E a rli e r, 1 m e n ti o n e d t h at t h i s S u bc o m mitt ee ha d i d e n ti fi e d m ore 

t h a n 1 2 0 0 p r o j e ct s of t h e C o r p s of E n gi n e e rs. I t i s u n r e a li s ti c t o 

s u g g e st t h at t h e c o m mitte e, fa ce d wit h li m it e d r e s o u r c e s, c o ul d c o nd u ct a n e x h a u sti v e e x a m i n ati o n of ea c h o f t h e s e p r o j e c t s. B ut I 

d o ha ve a re c o m m e n dati o n w hic h w o ul d c o me cl o s e t o a c hie vi n g t h e r e ­

s u lt s of j u st s u c h a n i nte n si v e re vie w, a n d w o ul d n ot pla c e a n u n d u e 

b ur de n o n y o ur r e s o u r c e s o r s t a f f.

A fte r b u d g et s u b mis si o n ea c h y e a r, a s c i e n ti fi c a ll y d et er m i n e d 

ra n d o m sa m ple of a ll p r o j e ct s s u b m itte d f o r F e d e ra l f u n di n g w o ul d 

be s ele cte d f o r re vie w. Si n ce t h e C o r p s o f E n gi n e ers w o ul d n ot k n o w 

w hi c h p r o j e ct s w o ul d be re vi e w e d i n t h i s ma n n er i n a n y gi v e n y e a r, 

t h e ec o n o mi c a n al y si s of a ll p r o j e ct s w o ul d i n a ll li k eli h o o d i m pr o v e 

r a p i d l y. T his s u b c o n m itte e c o ul d t h e n u s e t h e r e s u lt s o f a li m it e d 

re vie w as a b a si s f o r i m pr o vi n g t h e e n ti r e e v al u ati v e p r o c e d u re of 

t h e C o r p s i n t h i s a n d f ut u r e y e a r s.

I t h a n k y o u f o r t h i s o p p o rt u nit y.
8 3 2

1 5

. A p pe n di x

Eac h of t h e v a ri o u s b e n e fit s a n d c o sts m e nti o n e d I n S e cti o n s 

4. 1 a n d 5. 1 ha ve be e n br o u g ht t o g et h e r I n t h i s s e cti o n t o f or m 

t h e b e n e fit- c o st a n al y si s.

A b ri e f s u m mar y of t h e r e s u lt s I s p re s e nte d bel o w. T he 

p r oj e ct li f e i s s et at 5 0 y e a rs i n ea c h I n sta n c e.

I n t e r e st r a t e : 4 %

Dis c o u n te d b e n e fit s: $ 1 9 4. 2 m il li o n 

Dis c o u nte d c o st s: $ 1 7 1. 1 m il li o n 

B e n e fi t- c o st r a ti o : 1. 1 4

I n t e r e st r a t e : 5 %

Dis c o u n te d b e n e fit s: $ 1 5 6. 4 m il li o n 

Dis c o u n te d c o st s: $ 1 5 6 m illi o n 

B e n e fi t- c o st r a ti o : 1. 0

I n t e r e st r a t e : 6 %

Dis c o u n te d b e n e fit s; $ 1 2 8 m il li o n 

Dis c o u n te d c o st s: $ 1 4 4. 1 m illi o n 

B e n e fi t- c o st r a ti o r 0. 8 9
8 3 3

8. 1 A B e n efit- C o st A n al y si s

1 6

E* X E P L

^ R U N NI N G 8 9 1 3

B A T A R E S O U R C E S- I N C. W E D N E S D A Y, J U N E 1 1 , 1 9 7 5 1 0 : 4 8 : 1 5 A M

X E P L V E R SI O N O F 0 6 / 0 2 / 7 5 1 0: 9

- D P I G R A P HI C S S E R VI C E -

N E W F E A T U R E S: S C A T T E R, P L O T T E P D P I, G E N E R A T E, P R I N T 

♦ S E E S Y S T E N N O T E 1 2 6 I N A I D *

I ?

I N P U T S U B W R

1 0 0:

A U N T 1 9 7 5 T O 2 0 9 1

2 0 0:

S E T DI S C O U N T 4 \ T O 6 \ B Y . 5 ' J B A E D A T E = 1 9 7 5

3 0 0:

P A R A M E T E R MI L = 1 0 0 0 0 0 0

4 0 0 :

I N V E S T M E N T O U T L A Y S = 1 0 * M I L I N 7. 5, 1 5 * M I L I N 7 6 , 3 0 * M I L I N 7 7 ,

5 0 0:

3 5 * M I L I N 7 ' 8 , 2 0 * M I L I N 7 9. 5 * M I L I N 8 0

6 0 0:

I N V E S T M E N T M = . 7 * M I L F O P 5 0 Y E A R S S T A R T I N G 1 9 8 0

7 0 0:

I N V E S T M E N T F P = 2 . 5 * M I L F D P 5 0 Y E A R S S T A R TI N G , 1 9 8 0

8 0 0:

I N V E S T M E N T S = . 5 * M I L F O R 5 0 Y E A R S S T A R TI N G 1 9 8 0

9 0 0: 

P R O C E E D S R = 3. 7 5 * 1 1 I L F O R 5 0 Y E A R S S T A R TI N G 1 9 8 0

1 0 0 0: 

P R O C E E D S N = 4 . 5 * M I L * C P R O D U C T Cl. 0 5 > F O R 1 5 Y E A R S S T A R TI N G 1 9 8 0

1 1 0 0:

P R O C E E D S N C = 7 . 5 * M I L F O R 3 5 Y E A R S S T A R TI N G 1 9 9 5

1 2 0 0:

P R O J E C T S U B W R = O U T L A Y S, M , F P, S , R , N • N C

1 3 0 0: 

P V S U B W R
P R E S E N T V A L U E DI S C O U N T E D A T

I NVi O U T L A Y S

I N V J' M

I N V S' F P

I N V 5 S 2 X

- 1 0 4 2 8 4 0 7 6

- 1 2 6 3 8 1 5 9

- 4 5 1 3 6 2 8 3

- 9 0 2 7 2 5 6

6 7 7 0 4 4 2 5

6 1 7 5 4 6 9 2

6 4 7 5 1 5 2 3

0 0 5j 4. 5 0 5 S 

. 8 1 - 1 0 3 0 3 5 9 4 0 . 0 2 

. 3 5 - 1 1 3 6 4 0 6 0 . 0 8 

. 4 0 - 4 0 5 8 5 9 2 8 . 8 4 

. 6 8 - 8 1 1 7 1 8 5 . 7 7 

. 1 0 6 0 8 7 8 8 9 3 . 2 6 

. 5 2 5 8 1 2 4 2 5 1 . 3 7 

. 2 7 5 4 9 5 2 5 3 7. 3 1

5 . 0 05 s 

- 1 0 1 8 0 6 9 6 2 . 0 6 

- 1 0 2 6 0 5 1 1 . 3 9 

- 3 6 6 4 4 6 8 3 . 5 3 

- 7 3 2 8 9 3 6 . 7 1 

5 4 9 6 7 0 2 5 . 2 9 

5 4 7 3 2 7 6 7 . 6 2 

4 6 7 4 2 0 5 3. 5 1

5. 5 0 5 s 

- 1 0 0 5 9 6 8 1 7 . 5 0 

- 9 3 0 0 4 0 9 . 0 0 

- 3 3 2 1 5 7 4 6 . 4 1 

- 6 6 4 3 1 4 9 . 2 8 

4 9 8 2 3 6 1 9 . 6 2 

5 1 5 6 3 2 2 8 . 7 7 

3 9 8 4 5 9 3 7 . 8 4

S U B W R 2 3 1 2 4 8 6 4 . 6 5 1 0 8 5 2 5 6 7. 2 4 4 0 0 7 5 2 . 7 4 —8 5 2 3 3 3 5 . 9 6

1 4 0 0:

A N A L Y Z E < P E P O P T S » F A L S E > S U B W R

A N A L Y S I S O F P R O J E C T S U B W R 

1 / 1 / 1 9 7 5 t h r o u g h 1 / 1 / 2 0 2 9 B A S E D A T E 1 / 1 / 1 9 7 5 

F Y E N D S D E C E M B E R 3 1

I N T E R N A L R A T E O F R E T U R N:

R A T E D F R E T U R N

A S S U MI N G R EI N V E S T M E N T A T 4. 0 *-;: 

A S S U MI N G R EI N V E S T M E N T A T 0. 0 5 s:

5 . 0 25 s

4 . 2 35 S

1. 1 35 s

R P E S E N T

P R E S E N T

V A L U E < 45; > : 

V A L U E I N D E X :

2 3 , 1 2 4 * 8 6 4 . 6 5 

1 . 1 4

P A Y B A C K P E RI O D : 2 1 Y E A R S D U RI N G J A N U A R Y, 1 9 9 6

S U M M A R Y D F C A S H F L Ol'I S

I N V E S T M E N T: 3 0 0, 0 0 0 « 0 0 0. 0 0

E X P E N S E S: 0 . 0 0

T A X E S: 0 . 0 0

W O R KI N G C A R: 0 . 0 0

I N C O M E S: 0 . 0 0 

P R O C E E D S: 5 5 1 , 9 5 8 , 7 1 2 . 9 6 

T A X C R E DI T S: 0 . 0 0 

R E T U R N E D: 0 . 0 0

O U T F L O W S: 

P V < 8 4 5{ > :

3 0 0 - 0 0 0 . 0 0 0 . 0 0 

1 7 1, 0 8 5 « 7 7 6 . 2 4

I N F L O W S:

P V < 8 4 5 s) :

5 5 1 , 9 5 8 , 7 1 2 . 9 6 

1 9 4 , 2 1 0 - 6 4 0 . 9 0

•7

I' N

« E T » 3 : 1 5. 1 A P P R O X C R U = 0 0 0 2 4
8 3 5

1 8

I N P U T < C' UI E T > S U B W R

I N V S' O U T L A Y S

I N V. J M

I N'' J F P

I N V J S

N C

- 1 0 1 8 0 6 9 6 2 . 0 6 

> 1 0 2 6 0 5 1 1 . 3 9 

—3 6 6 4 4 6 8 3 . 5 3 

- 7 3 2 8 9 3 6 . 7 1 

5 4 9 6 7 0 2 5 . 2 9 

5 4 7 3 2 7 6 7 . 6 2 

4 6 7 4 2 0 5 3. 5 1

S U B W R 4 0 0 7 5 2 . 7 4

P R E S E N T V A L U E 

5 . 0 0* 4

A N A L Y S I S O F P R O J E C T S U B W R 

1 / 1 / 1 9 7 5 t h r o u g h 1 / 1 / 2 0 2 9

I N T E R N A L P A T E O F R E T U R N: 5. 0 2 7.

P A T E O F R E T U R N

A S S U MI N G R EI N V E N' F N T A T 5 . O X* 5. 1 I X 

A S S U MI N G R EI N V E S T M E N T A T 0. 0 7.: 1. 1 3 7 .

P R E S E N T V A L U E ( 5 X > : 4 0 0 , 7 5 2 . 7 4

P R E S E N T V A L U E I N D E X* 1 . 0 0

P A Y B A C K P E RI O D: 2 1 Y E A R S D U RI N G J A N U A R Y,

B A S E D A T E 1 / 1 / 1 9 7 5 

F Y E N D S D E C E M B E R 3 1

1 9 9 6

S U M M A R Y O F C A S H F L O W S

I N'-’ E S T R E N T: 

E X P E N S E S:

T A: E S :

M O RI I N G C A P:

3 G 0, 0 0 0 « 0 0 0. 0 0 

0. 0 0 

0. 0 0 

0. 0 0

I N C O N F* : 

P R O C E E D S:

T A X c r e d i t .’ :

P E T U R N E D:

0. 0 0

5 5 1 . 9 5 8 - 7 1 2 . 9 6 

0. 0 0 

0. 0 0

O U T F L O W S: 

P V • :

3 0 0 . 0 0 0 . 0 0 0 . 0 0 

1 5 6 « (i 4 1 . 0 9 3 . 6 8

I N F L O W S: 

P V <* 5 -. > 

5 5 1 - 9 5 8 - 7 1 2 . 9 6 

1 5 6 . 4 4 1 , 8 4 6 . 4 2
I N U T < O UI E T > S U B W R

8 3 6

1 9

I N V 3 0U T L A Y

I N V S' M

I N V J' F P

I N V J' S

N C

S U B W R

P R E S E N T V A L U E

6. C O S 

- 9 9 4 0 5 1 8 6. 8 3 

- 8 4 6 1 4 1 6. 5 2 

- 3 0 2 1 9 3 4 4. 7 0 

- 6 0 4 3 8 6 3. 9 4 

4 5 3 2 9 0 1 7. 0 5 

4 8 5 9 9 8 9 9. 5 7 

3 4 0 3 9 9 5 3. 0 5

- 1 6 1 6 0 9 4 2. 3 2

A N A L Y SI S O F F F O J E C T S U B W R

1/ 1/ 1 9 7 5 t h p d u o h l z 1/ 2 0 2 9 B A S E D A T E 1/ 1/ 1 9 7 5 

F Y E N D S D E C E M B E R 3 1

R E T U R N: 5 . 0 2 S I N T E R N A L R A T E O F 

R A T E O F R E T U R N 

A S 3 U MI N8 R E 1 N V E T K E N T A T 6. 0 ". : 5 . 7 S>.

A S S U MI N G R EI N V E S T M E N T A T 0 . 0 ’.: 1. 1 3 S

P R E S E N T V A L U E •t S >l - 1 6 , 1 6 0 , 9 4 2 . 3 2

P R E S E N T V A L U E I N D E X: 0. 8 9

Y P A CI P E RI O D!! 2 I Y E A R S D U RI N G J A N U A R Y. 1 9 9 6

S U M M A R Y C F

I N V E S T M E N T: 3 0 0 , 0 0 0 , 0 0 0 . 0 0

C A S H F L O W S

I N C O M E S: 0. 0 0

 R E I- 1 1: 0. 0 0 P R O C E E D : 5 5 1 , 9 5 8 . 7 1 2 . 9 6

T A: F • : 0. 0 0 T A X C R E DI T S: 0. 0 0

l.’t PI II, A C A R : 0. 0 0 R E T U P N E D: 0. 0 0

o u t f l o w ; : 3 0 0 , 0 0 0 , 0 0 0 . 0 0 I N F L O W S: 5 5 1 , 9 5 8 , 7 1 2 . 9 6

F' V • J't >*; > : 1 4 4. 1 2 9, 8 1 6. 9 8 P V < J >6*: >: 1 2 7, 9 6 8, 8 7 4. 6 7
8 3 7

P A U L E. R O B E R T S

E C O N O MI S T

2 0

S p e ci ali st i n

E c o n o mi c I m p a ct

Ai ul y a h

8 8 5 Di a m o n d Dri v e

G ait h er s b u r g, M ar yl a n d 2 0 7 6 0

S OI - 9 7 7 - 4 3 1 1

9. Bl o gr a h pi c

E d u cati o n

* B A ( 1 9 6 1 ), M A ( 1 9 6 2), S o u t h er n I lli n o i s U ni v e r sit y, C ar b o n d al e, I lli n o i s

* P h. D. ( 1 9 6 8 ), U ni v e r sit y of I o wa, I o w a C it y, I o wa

E x p erie nc e

* U nit e d S ta t e s C o n gr es s ( 1 9 7 4- 7 5), S e n at e N u triti o n a n d B u d get C o m mitt ee s,

Li b ra r y of C o n gr es s

* U ni v e r sit y of F l o ri d a ( 1 9 6 9- 7 4), A s sis ta nt P r o f e s s o r, Ec o n o m ics

* M a ss a c h u se tt s I n s tit u t e of Te c h n ol o g y ( 1 9 6 8 - 6 9 ), V i siti n g A s sis ta nt P r o f e s s o r

* Na val P o st g ra d u ate S c h o o l, M o nte re y, C ali f o r n ia ( 1 9 6 6 - 6 8 ), A s sis ta nt P r o f e s s o r

* N ati o n al Ba n k of D etr oit ( 1 9 6 3 ), S e ni o r Ec o n o mic A na l y st

* E x p ert T esti m o n y ( E n vi r o n m e n tal D ef e n se F u n d ): Cill h a m Da m, Te n n es se e- T o m bi g b ee 

W ate r w a y, Tr u m a n Da m, Cr o ss Fl o ri d a Ba r g e C a n al, T elli c o Da m

Bl ue - E ye Cr ee k ( M o nt g o mer y v. E lli s ), O ff s h o re Pla tf o r m M o u nte d N u cl ea r P o w er 

( F l o ri d a A u d u b o n v. C o r p s of E n gi n e e rs ), O ute r C o nti n e nta l S h elf O il a n d Gas 

C e n er al Le as e S ale O ff s h ore M i s si s si p p i, Ala ba m a a n d F l o ri d a ( S i e r r a v. M ort o n) 

W at er R es o urc es C o u n cil, Marc h 2 1, 1 9 7 2, W as hi n g t o n, D. C.

N ati o n al W at er C o m missi o n, F e b r u ar y 5, 1 9 7 3, Ne w O rl ea n s

W riti n g s

* B e n e fi t- C o st A n al y sis, wit h J . Da n N y h art, MI T, S e rie s N o. 2 4, May 1 9 6 9, 4 8 p p.

* E n v ir o n m e ntal I m pa ct of t h e Cr o ss F l o ri d a Ba r ge Ca nal wit h S p e cia l E m p h asis o n 

t h e O kl a wa ha R e g i o n al Ec os yste m, A n E dit o r a n d C o ntr i b ut o r, F l o ri d a D ef e n de rs of 

t h e E n vir o n m e nt, Marc h 1 9 7 0, R e v is e d Ja n u ar y 1 9 7 1, 1 1 7 p.

* ” T he Ye ar of S p oil e d P o r k: C o u me nts o n t h e C o urt s E m er g e nc e a s a n E n v ir o n m e n tal 

D ef e n d er ", w it h W alte r R. R os e n ba u m, La w a n d S o cie t y Re vie w, V ol. 7, N o. 1, F all 

1 9 7 2, p p. 3 4- 6 0.

* " A Pri m er o n E n v ir o n m e ntal E c o n o mic s", N a t u r a li st, V ol. 4 6, N o. 1, F e b r u ar y 1 9 7 3

* " T h e Ol d es t ( P er m a n e n t) Fl o ati n g B o o n d o g gle i n A m eri ca n P o liti c s ", Mia mi I n t e r ­

a cti o n, V ol. 5, N o. 2, S pri n g 1 9 7 4, p p. 3 - 1 5.

* 1 9 7 6 B u d g et: A lt e r n ati v e s a n d A n al y se s: R e p ort t o t h e C o m mitt ee s o n t h e B u d get 

of t h e U. S. C o n gre ss, C o- A ut h o r, P re p ar e d b y a S p e cia l S t a f f W o r ki n g Gr o u p 

u n de r t h e D ir e cti o n of Sa m u el M. C o h n, A p ri l 1 5, 1 9 7 5, 1 9 2 p p.

* " E c o n o mic I m pli c ati o n s of t h e N ati o n al E n v ir o n m e n tal P oli c y A ct", f o rt h c o m i n g 

i n t h e A m eri ca n B us i n es s La w J o u r n al
8 3 8

Se nat or G r a v e l . O ur ne xt wit n ess will be a de part u re fr o m o ur 

pre par e d list here. Mr. Rile y S. Miles, c hair m a n of t he E xe c uti ve 

C o m mitte e of t he Nati o n al E n vir o n me ntal De v el o p me nt Ass o ciati o n.

Mr. Miles, please c o me f or w ar d.

S T A T E M E N T O F RI L E Y S. MI L E S, E X E C U TI V E DI R E C T O R, F L O RI D A

W A T E R U S E R S A S S O CI A TI O N, A N D C H AI R M A N, E X E C U TI V E

C O M MI T T E E, N A TI O N A L E N V I R O N M E N T A L D E V E L O P M E N T

A S S O CI A TI O N

Mr. M i l e s . Mr. C h air m a n a n d me m bers of t he c o m mittee, I a m 

Rile y S. Miles, t he e xec uti ve dir ect or of t he Fl o ri d a W ate r Users 

Ass o ciati o n. I a p pe ar bef ore y o u t o d a y as c hair m a n of t he E xe c uti ve 

C o m mitte e of t he Nati o nal E n vir o n me ntal De v el o p me nt Ass o ciati o n.

N E D A was esta blis he d i n A pril of 1973. T he p ur p ose of N E D A, as 

state d i n its arti cle s of i nc or p orati o n is t o “ See k, pr o m ot e a n d f oster 

t he best met h o ds f or e n vir o n me ntal pr otecti o n t h at will all o w t he 

c o nti n u e d de v el o p m e nt of o u r ma n ufact uri n g, a gric ult ur al, tra ns p o rta ­

ti o n a n d water p ot e nti al nece ssar y t o t he ec o n o mi c gr o wt h of t he Na ­

ti o n, a n d i m p r o v e m e nt of t he sta n da r d of li vi n g of it s pe o ple.

A m o n g t he m ore t ha n 300 me m bers of t he Nati o n al E n vir o n me ntal 

De v el o p m e nt Ass ociati o n are s o me 100 c o m p a nies, u ni o n s a n d 

ass ociati o ns.

T he se N E D A me m bers re p res e nt a c o m bi ne d e m pl o y m e nt of m ore 

t h a n 5 milli o n A meri ca ns. T h e c o m bi ne d 1974 d oll ar sales of c o m ­

pa nie s h ol di n g N E D A me m bers hi p were a p p r o xi m atel y $80 billi o n.

Se nat or G r a v e l . Mr. Miles, if I mi g ht i m p ose u p o n y o ur g o o d will, 

si nce we d o ha ve a real e xtre me ti me pr o ble m, if y o u c o ul d n ’t s u m m arize 

y o ur stat e m e nt.

Mr. M i l e s . I w o n’t e ve n b ot he r t o d o t h at. I j u st wa nte d t o i nt r o ­

d uce N E D A t o y o u beca u se of t he ne w ness of o ur or ga nizati o n a n d its 

u ni q ue nes s.

It is ma y be t he first ti me y o u ha ve ha d a n or g a ni zati o n a p p ear 

bef ore y o u ma d e u p of i n d u str y, a gri c ult ure, la b o r, a n d t he 

pr ofe ssi o n alists.

O ur p ur p ose is t o assist i n a bala nce d a p pr oac h t o o ur pr o ble ms of 

ec o n o m y a n d e n vir o n me nt. T h at is t he reas o n I as ke d t o ha v e t he 

o p p o rt u nit y t o j u st a p p ear bef or e y o u a n d lea ve t his state m e nt.

Se nat or G r a v e l . Y o ur state m e nt will b e place d i n t he r ec or d.

D o y o u ha ve a n y s pecial p oi nt y o u w o ul d li ke t o ma ke as a pa rt of 

t he st at e m e nt?

Mr. M i l e s . Yes. T hi s r ece nt c o urt decisi o n i nstr u cti n g t he C o r ps of 

E n gi ne ers t o e x p a n d its a ut h orit y be y o n d t he na vi ga ble water s t o all 

t he water s of t he U nite d St at es was br o u g ht bef ore o ur e xec uti ve 

c o m mittee m eeti n g y est er d a y.

I me nti o n it o nl y beca u se i n all of t he meeti n gs I ha v e c haire d or 

att e n de d I ha ve ne ve r see n m ore p ositi ve, vi g or o u s, u n a ni m o us o p p o ­

siti o n t o a n yt hi n g. We wa nt y o u pe o pl e t o d o s o m et hi n g a b o ut t nis 

a n d p u t t h at bac k w here it bel o n g s. 

Se nat or G r a v e l . Yo u ca n g o bac k a n d tell y o ur or g a ni zati o n we 

will be d oi n g s o m et hi n g a b o ut it. T h ere ma y be s o me heari n g s s h o rtl y 

bef ore Se nat or M u s kie ’s s u b c o m mittee w hic h we are b ot h me m bers 

of, a n d we will o b vi o usl y be f oc usi n g o n t he 404 pr o ble m.
8 3 9

Mr. i le s . T h a n k y o u, sir.

C o ul d I i nt r o d uce t he pre si d e nt of N E D A, Mr. T o m Y o u n g, 

f or m erl y a le gi slati ve as sista nt t o Se nat or H olli n g s.

Se n at o r G r a v e l . T h a n k y o u.

[ Mr. Mile s’ st at e m e nt f oll o ws:]
8 4 0

S T A T E M E N T O F R I L E Y S . M I L E S 

C H A I R M A N , E X E C U T I V E C O M M I T T E E ,

N A T I O N A L E N V I R O N M E N T A L D E V E L O P M E N T A S S O C I A T I O N 

B E F O R E W A T E R R E S O U R C E S S U B C O M M I T T E E , 

S E N A T E P U B L I C W O R K S C O M M I T T E E 

J U N E 1 9 7 5

M r . C h a i r m a n a n d M e m b e r s o f t h e C o m m i t t e e , I a m R i l e y S . M i l e s , 

E x e c u t i v e D i r e c t o r o f t h e F l o r i d a W a t e r U s e r s A s s o c i a t i o n a n d a p p e a r 

b e f o r e y o u t o d a y a s C h a i r m a n o f t h e E x e c u t i v e C o m m i t t e e o f N E D A - - t h e 

N a t i o n a l E n v i r o n m e n t a l D e v e l o p m e n t A s s o c i a t i o n , N E D A w a s e s t a b l i s h e d 

i n A p r i l 1 9 7 3 . T h e p u r p o s e o f N E D A i s s t a t e d i n i t s a r t i c l e s o f i n ­

c o r p o r a t i o n . I t i s t o :

" S e e k , p r o m o t e a n d f o s t e r t h e b e s t m e t h o d s f o r 

e n v i r o n m e n t a l p r o t e c t i o n t h a t w i l l a l l o w t h e 

c o n t i n u e d d e v e l o p m e n t o f o u r m a n u f a c t u r i n g , 

a g r i c u l t u r a l , t r a n s p o r t a t i o n a n d w a t e r p o t e n t i a l 

n e c e s s a r y t o t h e e c o n o m i c g r o w t h o f t h e n a t i o n , 

a n d i m p r o v e m e n t o f t h e s t a n d a r d o f l i v i n g o f 

i t s p e o p l e . "

A m o n g t h e m o r e t h a n 3 0 0 m e m b e r s o f t h e N a t i o n a l E n v i r o n m e n t a l 

D e v e l o p m e n t A s s o c i a t i o n a r e s o m e 1 0 0 c o m p a n i e s , u n i o n s a n d a s s o c i a t i o n s . 

T h e s e N E D A m e m b e r s r e p r e s e n t a c o m b i n e d e m p l o y m e n t o f m o r e t h a n f i v e 

m i l l i o n A m e r i c a n s . T h e c o m b i n e d 1 9 7 4 d o l l a r s a l e s o f c o m p a n i e s h o l d i n g 

N E D A m e m b e r s h i p w e r e a p p r o x i m a t e l y $ 8 0 b i l l i o n . W e p r e s e n t t h e s e f i g u r e s 

t o s u g g e s t t h a t t h e A s s o c i a t i o n i s a n o r g a n i z a t i o n r e p r e s e n t i n g a p o t e n t 

f o r c e f o r e n v i o m m e n t a l i m p r o v e m e n t . T h r o u g h t h e i r i n d i v i d u a l p a r t i c i p a t o r y 

a c t i v i t i e s , N E D A m e m b e r s a r e m a k i n g s u b s t a n t i a l c o n t r i b u t i o n s i n t e r m s o f 

i n v e s t e d c a p i t a l , t a x e s , f a c i l i t i e s , m a n p o w e r a n d t i m e , t o e n v i r o n m e n t a l 

p r o t e c t i o n a n d e n h a n c e m e n t . T h e y a r e a m a j o r p a r t o f t h e e c o n o m i c b a s e 

w h i c h s u p p o r t s t h e g e n e r a l w e l f a r e a n d w h i c h c r e a t e s a n d m a i n t a i n s t h e
8 41

c o n d i t i o n s u n d e r w h i c h m a n a n d n a t u r e c a n e x i s t i n p r o d u c t i v e h a r m o n y .

W e a r e i n d i v i d u a l s , c i t i z e n s w i t h f a m i l i e s a n d c h i l d r e n , s h a r i n g 

t h e d e s i r e f o r a h i g h q u a l i t y o f l i f e w i t h o u t d a m a g i n g e n v i r o n m e n t a l 

c o n d i t i o n s , a n d s h a r i n g t h e r e s p o n s i b i l i t y f o r s e c u r i n g s u c h a q u a l i t y 

o f l i f e ,

I h a v e t a k e n t h e s e f e w m o m e n t s t o i d e n t i f y o u r A s s o c i a t i o n , a n d 

a s y o u c a n s e e o u r p u r p o s e s a r e t o f i n d w a y s t o i m p r o v e o u r e n v i r o n m e n t 

w i t h o u t d e s t r o y i n g o u r e c o n o m i c s y s t e m , a n d t o m a k e t h e c i v i l w o r k s 

p r o g r a m s o f t h e C o r p s o f E n g i n e e r s m o r e r e s p o n s i v e , i f p o s s i b l e , t o t h e 

n e e d s o f o u r m o d e m w o r l d . I d o n o t b e l i e v e t h a t t h e p u r p o s e s o f t h i s 

C o m m i t t e e a r e d i f f e r e n t f r o m t h o s e o f o u r A s s o c i a t i o n .

I w o u l d l i k e t o r e i t e r a t e q u i c k l y s o m e o f t h e i n f o r m a t i o n w h i c h t h i s 

C o m m i t t e e i s f u l l y a w a r e o f b u t w h i c h b e a r s r e p e a t i n g . T h e C o r p s o f 

E n g i n e e r s ' p r o j e c t s h a v e p r e v e n t e d n e a r l y $ 4 0 b i l l i o n o f f l o o d d a m a g e s , 

a s w e l l a s p r o t e c t i n g a n d s a v i n g h u m a n l i f e p r o v i d i n g a r e t u r n o f $ 3 

f o r e v e r y d o l l a r o f i n v e s t m e n t t h u s f a r ; o v e r 6 7 0 b i l l i o n t o n - m i l e s 

w e r e c a r r i e d o n t h e w a t e r w a y s a n d h a r b o r s p r o v i d e d i n 1 9 7 3 ; o v e r 2 . 3 

t r i l l i o n g a l l o n s o f w a t e r s u p p l y s t o r a g e i s n o w s t o r e d i n r e s e r v o i r s , 

w h i c h c o u l d s u p p l y 4 . 7 m i l l i o n p e o p l e o n a c o n t i n u i n g b a s i s ; 1 4 . 8 m i l l i o n 

k i l o w a t t s o f c a p a c i t y a r e i n s t a l l e d i n 6 2 o p e r a t i n g h y d r o e l e c t r i c p o w e r 

p r o j e c t s , p r o v i d i n g 7 8 . 6 b i l l i o n k i l o w a t t h o u r s o f e n e r g y ; a n d t h e r e w e r e 

3 4 4 m i l l i o n v i s i t o r d a y s o f r e c r e a t i o n a t C o r p s p r o j e c t s i n 1 9 7 3 . T o m e , 

t h i s i s a n a s t o u n d i n g r e c o r d o f a c c o m p l i s h m e n t , a n d m y h a t i s o f f t o 

t h e w i s e l e g i s l a t i o n o f t h e C o n g r e s s a n d t h e o u t s t a n d i n g a b i l i t i e s o f t h e 

o f t h e C o r p s o f E n g i n e e r s . I d o n o t i n t e n d t h a t t h e s e s t a t e m e n t s c o n v e y 

t o y o u t h a t t h e C o r p s o f E n g i n e e r s d o e s n o t m a k e m i s t a k e s , n o r t h a t n o 

c h a n g e s a r e n e c e s s a r y t o m a k e t h e p r o g r a m m o r e r e s p o n s i v e t o p r e s e n t n e e d s .
8 4 2

 w o u l d l i k e t o r e c a l l t o y o u t h e d e v a s t a t i n g d a m a g e s c a u s e d b y 

t r o p i c a l s t o r m A g n e s i n 1 9 7 2 a n d h o w m u c h m o r e o f a c a t a s t r o p h e i t 

w o u l d h a v e b e e n w i t h o u t t h e f l o o d c o n t r o l w o r k a l r e a d y a c c o m p l i s h e d .

W h i l e A g n e s c a u s e d d a m a g e s o f $ 3 . 5 b i l l i o n , 1 2 0 d e a t h s , h u m a n d i s l o c a t i o n 

a n d r u i n a t i o n , a n d e m e r g e n c y e x p e n d i t u r e s o f $ 3 0 0 m i l l i o n , C o r p s p r o j e c t s 

i n o p e r a t i o n p r e v e n t e d a d d i t i o n a l d a m a g e s o f $ 1 . 5 b i l l i o n . T h e M i s s i s s i p p i 

R i v e r f l o o d s o f 1 9 7 3 c a u s e d d a m a g e s o f o v e r $ 1 b i l l i o n , t h e f l o o d c o n t r o l 

w o r k s i n o p e r a t i o n p r e v e n t i n g d a m a g e s o f o v e r $ 1 5 b i l l i o n . E v e n i n 1 9 7 4 

f l o o d d a m a g e s a r e e s t i m a t e d t o b e o v e r $ 7 0 0 m i l l i o n w h i l e d a m a g e s p r e v e n t e d 

b y C o r p s p r o j e c t s d u r i n g t h i s p e r i o d w e r e $ 6 . 5 b i l l i o n .

L e t u s n o w g o t h e E n e r g y C r i s i s . T h e E n g i n e e r i n g a n d M i n i n g J o u r n a l 

o f A p r i l 1 9 7 4 q u o t e s t h e f o l l o w i n g c o m m e n t s r e s u l t i n g f r o m a t a s k f o r c e 

e s t a b l i s h e d t o e x a m i n e t h e e n e r g y c r i s i s :

" W e c a n n o t i n s t a n t l y r e s t r u c t u r e t h e e n t i r e e n e r g y 

s y s t e m , n o r i n s t a n t l y r e d i r e c t t h e p a t t e r n o f u s e , 

o r i n s t a n t l y c r e a t e n e w s o u r c e s o f e n e r g y . A n y 

a t t e m p t t o f i x t h e b l a m e f o r t h e e m e r g e n c y i s 

i r r e v e l a n t a n d f r u i t l e s s . N o s i n g l e g r o u p , n e i t h e r 

t h e o i l c o m p a n i e s , n o r t h e a d m i n i s t r a t i o n , n o r t h e 

A r a b s , n o r a n y b o d y e l s e , c r e a t e d t h e b a s i c p r o b l e m , 

a n d n o o n e g r o u p c a n s o l v e i t ,

" A n y b e l i e f t h a t w e c a n l e g i s l a t e o r o t h e r w i s e m a n d a t e 

a s o l u t i o n i s a n i l l u s i o n . T h e e n e r g y p r o b l e m w i l l 

n o t s i m p l y d i s a p p e a r , n o r w i l l i t s o l v e i t s e l f .

T h e r e a r e n o e a s y , p a i n l e s s s o l u t i o n s . T h e a p p a r e n t 

s o l u t i o n f o r t h e s h o r t t e r m - - a s r e s u m p t i o n o f l a r g e 

s c a l e o i l i m p o r t s - - w i l l m e r e l y c o m p o u n d t h e p r o b l e m 

b y r e n e w i n g o u r d e p e n d e n c e o n a s o u r c e o f s u p p l y n o w 

a s u n c e r t a i n a s i t i s e x p e n s i v e .

" I n t h e a b s e n c e o f m i r a c l e s o u r p r o s p e c t s o f a g a i n 

e n j o y i n g c h e a p a b u n d a n t e n e r g y a r e d i m . O u r p r o s p e c t s 

o f o b t a i n i n g e v e n a d e q u a t e e n e r g y , a t a n y p r i c e , d e p e n d 

o n u s - - o u r w i l l i n g n e s s t o f a c e t h e b a s i c p r o b l e m , a n d 

o u r a b i l i t y t o s o l v e i t . T h e b a s i c p r o b l e m i s l o n g - 

r a n g e . I t r e q u i r e s a l o n g - r a n g e p l a n . A n d a l o n g -
8 4 3

r a n g e p l a n t o d e a l e f f e c t i v e l y w i t h t h e U . S . 

e n e r g y p r o b l e m r e q u i r e s a N a t i o n a l E n e r g y 

P o l i c y . . . . . . . . . . . ”

I b e l i e v e t h i s c l e a r l y s u m s u p o u r e n e r g y s i t u a t i o n . W h i l e t h i s

w a s p r e d i c t e d b y t h e _ _ _ _ _ _ P a u l e y R e p o r t m o r e t h a n 2 0 y e a r s a g o ,

e s s e n t i a l l y n o t h i n g w a s d o n e t o p r e v e n t t h e p r e d i c t e d s h o r t a g e u n t i l i t 

o c c u r e d . B u t , w h a t a b o u t o u r s i t u a t i o n o n w a t e r s u p p l y ? C l e a r l y w e 

w i l l r e a c h a s i m i l a r c r i s i s i n t h e n o t t o o d i s t a n t f u t u r e i f w e a r e n o t 

a l e r t t o t h o s e n e e d s a n d d o n o t e s t a b l i s h a N a t i o n a l W a t e r P o l i c y . A n d , 

l e t u s n o t s e p a r a t e t h e d e p e n d a n c e o f e n e r g y r e s o u r c e s o n w a t e r , i . e . , 

o i l s h a l e , c o a l g a s i f i c a t i o n a n d l i q u e f a c t i o n , a n d c o o l i n g w a t e r . F o r 

t h e s e r e a s o n s t h e o v e r s i g h t h e a r i n g s o f t h i s C o m m i t t e e a r e v e r y t i m e l y 

a n d w e l c o m e d b y o u r A s s o c i a t i o n . W e h a v e h a d t h e e x p e r i e n c e o f w a i t i n g 

i n l o n g l i n e s f o r g a s o l i n e f o r o u r t r a n s p o r t a t i o n n e e d s - " I w o u l d d r e a d 

t h e d a y w e m i g h t h a v e t o s t a n d i n l i n e f o r a c u p o f w a t e r t o d r i n k ! T h i s 

w e m u s t n e v e r l e t o c c u r ! A n d w i t h a p r o p e r N a t i o n a l P o l i c y , i t w i l l n o t 

o c c u r . W e s h o u l d r e c a l l t h e a l m o s t d e v a s t a t i n g d r o u g h t o n t h e E a s t C o a s t - 

t h e D e l a w a r e a n d t h e P o t o m a c e R i v e r s a m o n g t h e a r e a s a b o u t t e n y e a r s a g o ,

T h e r e a r e s e v e r a l m a t t e r s w e w i s h t o b r i n g t o y o u r a t t e n t i o n f o r 

c o n s i d e r a t i o n a s t h e C o m n i t t e e d e l i b e r a t e s c h a n g e s i n w a t e r r e s o u r c e s 

p o l i c y . O n e o f t h e s e i s c r i t i c a l - - t h e i n t e r p r e t a t i o n o f t h e N a t i o n a l 

E n v i r o n m e n t a l P o l i c y A c t a n d o t h e r e n v i r o n m e n t a l l e g i s l a t i o n , W e d o 

n o t b e l i e v e t h a t t h e C o n g r e s s i n p a s s i n g t h i s l e g i s l a t i o n h a d i n m i n d 

a s e p a r a t i o n o f t h e n a t u r a l e n v i r o n m e n t w i t h t h a t o f t h e h u m a n o r t o t a l 

e n v i r o n m e n t . W e f u l l y e n d o r s e t h e n e e d t o p r o t e c t a n d e n h a n c e t h e 

e n v i r o n m e n t - - t h e t o t a l e n v i r o n m e n t , o f w h i c h b y f a r , m a n i s n o t a n u n ­

i m p o r t a n t p a r t . W e a s k t h a t t h e C o n g r e s s r e v i e w i t s a c t u a l i n t e n t i n

5 4- 2 3 9 0 - 7 5 - 5 4
8 4 4

e n a c t i n g t h i s l e g i s l a t i o n . O u r c o u n t r y f a c e s a v e r y s e r i o u s e c o n o m i c 

s i t u a t i o n w i t h a n i n f l a t i o n t h a t a v o i d s s o l u t i o n s , T h e b i l l i o n s o f 

d o l l a r s n e e d e d t o b e s p e n t b y p r i v a t e i n d u s t r y i n t h e i m m e d i a t e f u t u r e 

u n d e r t h e p r e s e n t i n t e r p r e t a t i o n o f t h e e n v i r o n m e n t a l l a w s f a n s t h e 

i n f l a t i o n a r y p r e s s u r e s a n d c r e a t e s h a v o c w i t h o u r e c o n o m i c s i t u a t i o n .

M a n y m a r g i n a l b u s i n e s s e s , i f n o t g i v e n t i m e t o d e v e l o p t h e p r o p e r 

t e c h n o l o g y f o r p r o t e c t i o n o f t h e e n v i r o n m e n t a l a t m i n i m u m c o s t s o r t o 

m e e t r e a l i s t i c i n t e r i m s t a n d a r d s w i l l u n d o u b t e d l y g o o u t o f b u s i n e s s , 

f u r t h e r c r e a t i n g p r o b l e m s w i t h o u r c o m p l e x e c o n o m y a n d s e r i o u s l y i n ­

c r e a s i n g t h e u n e m p l o y m e n t s i t u a t i o n . T h e l a r g e r a n d m o r e s t a b l e c o m p a n i e s 

m u s t p a s s o n t h e t r e m e n d o u s c o s t s o f m e e t i n g t h e e n v i r o n m e n t a l s t a n d a r d s 

t o t h e u l t i m a t e c o n s u m e r i f t h e y a r e t o s t a y i n b u s i n e s s - - a d d i n g t o t h e 

i n f l a t i o n a r y s i t u a t i o n . W e c a n n o t a c c e p t t h a t c r e a t i n g m o r e s e r i o u s 

e c o n o m i c a n d u n e m p l o y m e n t p r o b l e m s w a s a c t u a l l y t h e i n t e n t o f C o n g r e s s .

W e a r e c e r t a i n t h a t C o n g r e s s i n t e n d e d t h e d e c i s i o n s t o b a l a n c e t h e 

e n v i r o n m e n t a l a n d e c o n o m i c n e e d s . W e u r g e y o u r i m m e d i a t e a t t e n t i o n 

t o t h i s m a t t e r .

A l l i e d w i t h t h i s m a t t e r i s t h a t r e l a t i n g t o t h e o p e r a t i o n a n d 

m a i n t e n a n c e o f o u r w a t e r w a y s y s t e m . A s n o w b e i n g i n t e r p r e t e d t h e 

N a t i o n a l E n v i r o n m e n t a l P o l i c y A c t t h r e a t e n s t o i n t e r r u p t t h e m o v e m e n t 

o f t r a f f i c a t t h e N a t i o n ' s h a r b o r s a n d i n l a n d w a t e r w a y s . T h i s i s d u e 

t o t h e f a c t t h a t a n E n v i r o n m e n t a l I n p a c t S t a t e m e n t h a s n o t b e e n c o m p l e t e d 

o n e a c h a n d e v e r y h a r b o r a n d w a t e r w a y . A s y o u k n o w t h e C o r p s o f E n g i n e e r s 

h a s m a n y s u c h s t a t e m e n t s t o p r e p a r e . W e b e l i e v e t h e i r p r o g r e s s i n p r e ’ 

p a r i n g t h e s e s t a t e m e n t s i s e x e m p l a r y . H o w e v e r , t h e r e s t i l l r e m a i n a b o u t 

5 0 0 s t a t e m e n t s t o b e p r e p a r e d a n d t h e y o b v i o u s l y m u s t h a v e m o r e t i m e
8 4 5

i n w h i c h t o p r o v i d e a l l o f t h e s t a t e m e n t s r e q u i r e d . I t i s o u r r e q u e s t

t o t h i s C o m m i t t e e t h a t i t s h a l l n o t b e w i t h i n t h e j u r i s d i c t i o n o f a n y

F e d e r a l C o u r t t o h a l t m a i n t e n a n c e d r e d g i n g o n a p r o j e c t b e c a u s e t h e

C o r p s o f E n g i n e e r s h a s n o t y e t c o m p l e t e d a n E n v i r o n m e n t a l I m p a c t

S t a t e m e n t . W e c a n i l l a f f o r d t h e d e l a y s , i n c r e a s e d c o s t s , a n d u n c e r t a i n t i e s 

i n t h e m o v e m e n t o f t r a f f i c o v e r o u r w a t e r w a y s a n d i n a n d o u t o f o u r h a r b o r s .

I t w o u l d b e t r a g i c t o a l l o w c o l l a p s e o f o u r i n l a n d w a t e r w a y s y s t e m , 

a n d o u r t r a d e w i t h o t h e r n a t i o n s .

A l l i e d w i t h t h i s p r o b l e m i s a n e w o n e r e l a t i n g t o t h e r e c e n t c o u r t 

d e c i s i o n o r d e r i n g t h e C o r p s o f E n g i n e e r s t o e x p a n d i t r e g u l a t i o n s c o n - 

t o l l i n g t h e d i s p o s a l o f d r e d g e d a n d f i l l m a t e r i a l t o c o v e r t h e e n t i r e 

w a t e r s o f t h e U n i t e d S t a t e s , r a t h e r t h a n t h e n a v i g a b l e w a t e r s a s i s c u r r e n t l y 

t h e p r a c t i c e . T h i s f u r t h e r w i l l d i l u t e t h e t i m e a v a i l a b l e t o t h e l i m i t e d 

p e r s o n n e l o f t h e C o r p s . T h e y w i l l n o w h a v e t o i s s u e p e r m i t s f o r a n y a c t i o n 

o n v i r t u a l l y e v e r y c o a s t a l a n d i n l a n d a r t i f i c i a l o r n a t u r a l b o d y o f w a t e r 

i n t h e U n i t e d S t a t e s w h i c h w o u l d c o s t a n e x t r a $ 5 3 m i l l i o n a n n u a l l y . S u r e l y 

t h i s w a s n o t t h e i n t e n t o f C o n g r e s s , i n p a s s i n g t h e F e d e r a l W a t e r P o l l u t i o n 

A c t A m e n d m e n t o f 1 9 7 2 . W e u r g e n t l y r e q u e s t t h a t t h i s m a t t e r b e c l a r i f i e d 

l e g i s l a t i v e l y .

T h e W a t e r R e s o u r c e s D e v e l o p m e n t A c t o f 1 9 7 4 p r o v i d e s f o r a t w o - s t a g e 

a u t h o r i z a t i o n p r o c e d u r e f o r m a j o r p r o j e c t s . T h i s p r o c e d u r e p r o v i d e s t h a t 

C o n g r e s s i n i t i a l l y a u t h o r i z e m a j o r p r o j e c t s o n l y t h r o u g h t h e P h a s e I 

s t a g e o f a d v a n c e e n g i n e e r i n g a n d d e s i g n . T h i s g i v e s t h e C o n g r e s s a n o p p o r t u n i t y 

t o s e e t h e c u r r e n t p l a n s , a n d t h e c o m m e n t s o f F e d e r a l , S t a t e a n d L o c a l 

A g e n c i e s , a n d o t h e r s r e g a r d i n g t h e c o n t e m p l a t e d p l a n i n g r e a t e r d e t a i l , 

e n v i r o n m e n t a l a s p e c t s , a n d a n y o t h e r m a t t e r s p e r t i n e n t t o T h e C o n g r e s s
8 4 6

m a k i n g t h e f i n a l d e c i s i o n t o a u t h o r i z e o r n o t t o a u t h o r i z e t h e c o n s t r u c t i o n 

o f t h e p r o j e c t . W e h a v e b e e n g i v e n t o u n d e r s t a n d t h a t i n t h e C o r p s 

c u r r e n t p l a n n i n g p r o c e d u r e s t h e e n v i r o n m e n t a l a s p e c t s a s w e l l a s t h e 

e c o n o m i c f e a s i b i l i t y a n d t h e e n g i n e e r i n g a s p e c t s a r e d e v e l o p e d i n a 

c o o r d i n a t e d m a n n e r . T h u s t h e e n v i r o n m e n t a l i m p a c t s , g o o d a n d b a d , a r e 

a u t o m a t i c a l l y b u i l t i n t o t h e p l a n f o r t h e p r o j e c t . T h e i n i t i a l 

s u r v e y r e p o r t a n d t h e P h a s e I p l a n n i n g , t h e r e f o r e , w o u l d i n c l u d e a l l 

c o m m e n t s f r o m a l l t h o s e a g e n c i e s a n d i n d i v i d u a l s t h a t h a v e a n i n t e r e s t 

i n t h e p r o j e c t . I n v i e w o f t h i s s i t u a t i o n w e b e l e i v e t h a t w h e n a 

p r o j e c t i s a u t h o r i z e d b y t h e C o n g r e s s , C o n g r e s s h a s d e t e r m i n e d t h a t i t 

h a s m e t t h e r e q u i r e m e n t s o f N E P A . W e w o u l d , t h e r e f o r e , r e c o m m e n d t h a t 

a n y w a t e r r e s o u r c e s p o l i c y l e g i s l a t i o n c l e a r l y p r o v i d e t h e e x t e n t t o w h i c h 

t h e j u r i s d i c t i o n o f a n y F e d e r a l C o u r t a p p l i e s , i f t h e r e i s i n t e n t t o h a l t 

p r o c e d i n g w i t h a p r o j e c t a f t e r t h i s a u t h o r i z a t i o n .

O p p o n e n t s o f p r o j e c t s a r e s t i l l a b l e t o a p p e a r b e f o r e t h i s C o m m i t t e e 

a s w e l l a s t h e A p p r o p r i a t i o n s C o m m i t t e e s t o v o i c e t h e i r o p i n i o n s . B u t , 

w e c a n n o t s e e a n y p u r p o s e t o h a v i n g t h e C o u r t s t i e u p p r o j e c t s w h e r e t h o s e 

w h o h a v e m a d e t h e l a w s , d e t e r m i n e t h a t t h o s e l a w s h a v e b e e n s a t i s f i e d .

I n t h i s c o n n e c t i o n I c a l l y o u r a t t e n t i o n t o a b i l l , H . R , 6 0 3 2 , i n t r o ­

d u c e d i n t h e h o u s e b y C o n g r e s s m a n M c F a l l o n A p r i l 1 6 , 1 9 7 5 . I f t h i s l e g i s l a t i o n 

i s e n a c t e d i t w o u l d a d d a n e w s e c t i o n t o t i t l e I o f t h e N a t i o n a l E n v i r o n m e n t a l 

P o l i c y A c t o f 1 9 6 9 ( U . S . C , 4 3 3 2 - 4 3 3 5 ) . T h i s s e c t i o n w o u l d p r o v i d e t h a t 

t h e f i n a l d e t a i l e d s t a t e m e n t p r e p a r e d i n a c c o r d a n c e w i t h t h e A c t s h a l l 

c o n t a i n a s e p a r a t e s e c t i o n w h i c h s e t s f o r t h t h e f i n d i n g s m a d e b y t h e

F e d e r a l A g e n c y w i t h r e s p e c t t o t h e m a t t e r s r e f e r r e d t o i n s u b p a r a g r a p h s 

( i) t h r o u g h ( v ) o f S e c t i o n 1 0 2 ( 2) ( 2) o f t h e A c t . A n y p e r s o n a g g r e i v e d 

b y t h e f i n d i n g s s e t f o r t h i n a n y f i n a l d e t a i l e d s t a t e m e n t m a y o b t a i n r e v i e w
8 4 7

o f t h e f i n d i n g s i n t h e C i r c u i t C o u r t o f A p p e a l s o f t h e U n i t e d S t a t e s ,

W h a t t h i s l e g i s l a t i o n w o u l d d o w o u l d b e t o e l i m i n a t e o n e s t e p i n t h e 

c o u r t p r o c e d u r e , t h a t o f t h e D i s t r i c t C o u r t , a n d p r o v i d e r e l i e f i n 

t h e C i r c u i t C o u r t o f A p p e a l s . T h i s w e b e l i e v e w o u l d n o t o n l y e l i m i n a t e 

f r i v o l o u s s u i t s b u t e x p e d i t e t h o s e s u i t s t h a t h a v e m e r i t . W e w o u l d 

s t r o n g l y u r g e t h i s C o m m i t t e e t o c o n s i d e r s u c h l e g i s l a t i o n .

M r . C h a i r m a n , t h e r e a r e o t h e r w a t e r p o l i c y i s s u e s w h i c h I b e l i e v e 

t h i s C o m m i t t e e w i l l r e v i e w i n m a k i n g c h a n g e s e s t a b l i s h i n g a N a t i o n a l 

W a t e r R e s o u r c e s D e v e l o p m e n t P o l i c y s u i t e d t o t h e c u r r e n t w o r l d . S u c h 

i s s u e s c o u l d w e l l b e c o s t s h a r i n g , u s e r c h a r g e s , t h e d i s c o u n t r a t e a n d 

m e t h o d s o f p r o j e c t f o r m u l a t i o n , i n c l u d i n g t h e t w o a d d i t i o n a l a c c o u n t s 

o f s o c i a l w e l l - b e i n g a n d r e g i o n a l d e v e l o p m e n t , I n p a s s i n g t h e W a t e r 

R e s o u r c e s D e v e l o p m e n t A c t o f 1 9 7 4 , C o n g r e s s w i s e l y r e f u s e d t h e r e v i s e d 

i n t e r e s t r a t e p r o p o s e d b y t h e W a t e r R e s o u r c e s C o u n c i l a n d a s k e d t h e 

P r e s i d e n t t o s u b m i t a r e p o r t c o v e r i n g t h e s e m a t t e r s , W e w o u l d a s k 

t h a t b e f o r e a c t i o n i s t a k e n o n t h a t r e p o r t b y t h e C o n g r e s s , w e b e g i v e n 

a n o p p o r t u n i t y t o p r e s e n t o u r v i e w s o n t h e m a t t e r s c o v e r e d i n t h a t r e p o r t . 

H o w e v e r , I w o u l d l i k e t o b r i n g c e r t a i n m a t t e r s t o y o u r a t t e n t i o n f o r y o u r 

c o n s i d e r a t i o n a t t h i s t i m e .

O n J u l y 1 o f l a s t y e a r , t h e U . S . p o p u l a t i o n w a s a l m o s t 2 1 2 m i l l i o n . 

T h r e e p r o j e c t i o n s h a v e b e e n m a d e b y t h e C e n s u s B u r e a u a s t o t h e p o p u l a t i o n 

i n t h e y e a r 2 0 2 0 , o n l y 4 5 y e a r s a w a y . T h e p r o j e c t i o n s r a n g e f r o m m o r e 

t h a n 2 5 1 m i l l i o n t o 3 6 2 m i l l i o n . T h i s i s a n i n c r e a s e o f s o m e w h e r e b e t w e e n 

4 0 m i l l i o n a n d 1 5 0 m i l l i o n p e o p l e . T h e i n c r e a s e i s a c o n t i n u o u s o n e . C a n 

a n y o n e t e l l u s h o w t h e s e m a n y m i l l i o n s o f p e o p l e w i l l b e a b s o r b e d i n t o
8 4 8

o u r s o c i e t y a n d o u r e c o n o m y ? W h e r e w i l l t h e f o o d a n d w a t e r , t h e e n e r g y 

a n d t h e j o b s c o m e f r o m i f w e d o n ' t s t a r t p r e p a r i n g n o w a s t h e i n c r e a s e 

i n p o p u l a t i o n u n f o l d s ? S u r e l y a c r i s i s w i l l s o o n b e u p o n u s i f w e d o 

n o t p r e p a r e f o r t h e n e c e s s a r y f o o d p r o d u c t i o n a n d w a t e r a v a i l a b i l i t y . T o 

m y m i n d , t h e w a t e r r e s o u r c e s p r o g r a m i s a s o c i a l p r o g r a m o f g r e a t u r g e n c y . 

B e n e f i t / c o s t r a t i o s a r e o f l i t t l e v a l u e t o t h e t h i r s t l y , s t a r v i n g m a n . N o r 

a r e t h e y o f m u c h m o r e v a l u e u n l e s s t h e y a r e t o b e c o m p a r e d w i t h o t h e r 

p r o g r a m s o f g r e a t s o c i a l u r g e n c y . B u t o t h e r p r o g r a m s d o n o t h a v e 

b e n e f i t / c o s t r a t i o s . A s f a r a s I k n o w , t h e w a t e r r e s o u r c e p r o g r a m i s 

t h e o n l y o n e w h i c h h a s e c o n o m i c f e a s i b i l i t y b u i l t i n t o i t s b a s e . I t i s 

c e r t a i n l y c l e a r t o u s t h a t w e m u s t g r e a t l y i n c r e a s e o u r r a t e o f p r o g r e s s i n 

d e v e l o p i n g o u r w a t e r r e s o u r c e s . T h e d r o u g h t s i n t h e m i d w e s t l a s t y e a r , t h e 

d r o u g h t s o n t h e e a s t c o a s t i n p a s t y e a r s , t h e c o n t i n u a l l y g r o w i n g n e e d f o r 

w a t e r o n t h e w e s t c o a s t , s h o u l d b e a w a r n i n g t o u s t h a t w e c a n r e a c h t h e p o i n t 

w h e r e w e o p e n t h e w a t e r t a p a n d h a v e n o w a t e r c o m i n g t h r o u g h . G e n t l e m e n , 

i t i s n o t p o s s i b l e t o r e c t i f y t h i s s i t u a t i o n i n a y e a r o r t w o , I t t a k e s 

m a n y y e a r s t o f o r m u l a t e , c l e a r w i t h a l l c o n c e r n e d , d e s i g n , a n d b u i l d a 

w a t e r s t o r a g e p r o j e c t o r a n e w o r i m p r o v e d w a t e r w a y .

F o r e x a m p l e , i t i s e s t i m a t e d t h a t f r o m t h e f o r m u l a t i o n p e r i o d t o 

t h e P h a s e I a u t h o r i z a t i o n a v e r a g e s f o u r a n d o n e h a l f y e a r s ; f r o m t h e 

P h a s e I t o t h e P h a s e I I a u t h o r i z a t i o n a v e r a g e s a n o t h e r f o u r a n d o n e h a l f 

y e a r s ; a n d t h a t t h e d e s i g n a n d c o n s t r u c t i o n p e r i o d a v e r a g e s s i x a n d o n e h a l f 

y e a r s - - a t o t a l o f f i f t e e n a n d o n e h a l f y e a r s . A n d t h i s t i m i n g i s b a s e d o n n o 

f u n d i n g c o n s t r a i n t s .
8 4 9

Y e t a l l s o r t s o f o b s t a c l e s a r e p l a c e d i n t h e w a y o f m a k i n g r e a l 

p r o g r e s s . I h a v e a t t a c h e d t o m y s t a t e m e n t a f e w p a g e s o f t h e S e p t e m b e r 

1 9 7 4 i s s u e o f t h e F l o r i d a W a t e r C o n s e r v a t i o n N e w s w h i c h o u t l i n e s h o w 

i m p o r t a n t a p r o j e c t c a n b e . I a s k t h a t i t b e i n c l u d e d i n t h e r e c o r d .

G e n t l e m e n , I a s k t h a t y o u n o t l e t t h e m i s g u i d e d d e t e r p r o g r e s s o n 

t h e p r o g r a m n o r a l l o w t h e c o n t i n u e d r e d u c t i o n i n a p p r o p r i a t i o n s n e e d e d t o 

d e v e l o p a n d c o n s e r v e o u r w a t e r . W e a r e f a r b e h i n d a n d m u s t g r e a t l y 

i n c r e a s e a p p r o p r i a t i o n s i f w e a r e t o h a v e a n y h o p e o f u s i n g w i s e l y o u r 

G o d - g i v e n r e s o u r c e s ,

W e s i n c e r e l y h o p e y o u w i l l c o n s i d e r N E D A ' s s u g g e s t i o n s , a n d f e e l 

f r e e t o c a l l o n u s i f w e c a n b e o f a n y f u r t h e r a s s i s t a n c e ,

T h a n k y o u .
S e pt e m b er 1 9 74

D R O U G H T F L O O D D A M A G E S A V E R T E D . . . S E N A T E

■ ' . C O M MI T T E E S T U DI E S W A T E R i E S O Ufi C E S . . . E C O N O M Y

M A Y B E N E FI T F R O M R E VI S E D E N VI R O N M E N T A L P RI O RI TI E S.

A C HI E V E M E N T S O F A J OI N T F E D E R A L- S T A T E- L O C A L W A T E R M A N A G E M E N T P R O J E C T

D uri n g Fl ori d a' s dr y s ea so n e a c h s pri n g, t h e l o w er e a st c o a st ar e a, p arti c ul a r y fr o m W e st P al m B e ac h 

t o Mi a mi, h as w at er pr o bl e m s, b ot h wit h s u p pl y a n d wit h e n cr o a c h m e nt of s alt w at er i nt o gr o u n d w at er 

t a bl e s. T he d u al pr o bl e m aff e ct s m u ni ci p aliti e s a n d f ar m pr o d u c er s o s w ell as wil dlif e. I n p eri o d s of 

r e all y d efi ci e nt r ai nf all, a n u n u s u all y dr y s e as o n, t h e pr o bl e m s i nt e n sif y a s d o es t h e t hr e at of dr o u g ht 

a n d e v e n fir e i n t h e E v er gl a d e s.

W h at d oe s t hi s ar e a d o ? It d e p e nd s o n o n e of t h e n oti o n' s oft - c riti ci z e d, m u c h- m ali g n e d w at er 

m a n ag e me nt pr oj e ct s. A n d t h e m u ni ci p aliti e s a n d a gri c ult ui al pr o d u c er s a n d wil dlif e ef t h e cr e a 

g et t h e w at er a n d p r ot e cti o n t h e y n e e d.

T hi s p a rti c ul ar p r oj e ct i s t h at of t h e C e ntr al a n d S o ut h er n Fl ori d a Fl o o d C o ntr ol Di stri ct. It i s a cl a s si c 

j oi nt f e d er al- st at e -l o c al pr oj e ct t h at h as br o u g ht u nt ol d b e n efit s t o t h e ar e a.

I n t h e 1 9 7 3- 7 4 dr y s e a s o n, 1 8 0, 0 0 0 a cr e f e et of w at ei* w as wit h dr a w n b y t h e F C D fr o m L a ke O k e e c h o b e e 

n ot o nl y t o s u p pl e m e nt t h e m aj or m u ni ci p al w ell fi el d s i n t h e l o w er e a st c o a st b ut t o h el p m ai nt ai n 

a b arri er a g ai n st e n cr o a c h m e nt of s alt w at er. Aff e ct e d b y t h e se w at er tr a n sf er s fr o m pr oj e ct st or a g e 

w or e p u bli c w at er s u p pl y s y st e ms h a vi n g a dr y s ea s on a v er a g e pr o d u cti o n r at e of 3 5 0 milli o n g all o n s 

p er d a y.

W at er s fr o m t hi s Fl ori d a pr oj e ct k e pt vi a bl e, t o o, t h e mi g ht y E v er gl a d e s N ati o n al P ar k, s u p pl yi n g w at er 

o n d e ma n d t o all e vi at e n ot o nl y dr o u g ht c o n diti o n s b ut t h e t hr e at of d e v a sti n g fir e s t hr o u g h o ut t h e 

Gl o d e s.
8 5 1

T hi s p a st s e a s on, f a c e d wit h a s e v er e dr o u g ht aft e r fi v e y e ar s of 

d efi ci e nt r ai nf all a n d wit h c o nti n ui n g criti ci s m fr o m u n k n o wl e d g e a bl e, 

oft e n e m oti o n al s o ur c es, t h e C e ntr al a n d S o ut her n Fl ori d a Fl o o d 

C o ntr ol Di stri ct u s ed w at er s fr o m c o n s er v ati o n ar e as a n d fr o m L a ke 

O k e e c h o b e e t o lit e r all y k e e p ali v e t h at e ntir e g e o gr o p hi c r e gi o n.

T he b e n efit s of s er vi c e o n d p r ot e cti o n w er e e xt e n d e d t o b ett er t h a n 

t w o milli o n p e o pl e, t o m a n y a g ri c ult ur al pr o d u c ers o n d t o c o u ntl e s s 

fi s h a n d wil dlif e. T he t hr e at of s alt w at er i ntr u si o n i n t h e ar e a 

w as r e d u c e d wit h t h e pr e s s ur e of F C D- s u p pl l e d w at er t o h ol d t h e 

li n e o g ai n st s ali nit y.

S o me of t h e c o nti n ui n g criti ci s m of t h e pr oj e ct i s t h e r e s ult of all e g ati o n s 

a f e w y e ar s a g o fr o m hi g hl y- pl a c e d, i nfl u e nti al s o ur c es.

Br oo k s At ki n s o n, o n e -ti m e M o s c o w c orr e s p o n d e nt of t h e N o w Y or k 

Ti m es, t ur n e d " e n vir o n m e nt ali st," wr ot e h o w t h e "t hr e at s " of m an 

j n a y w ell d e str o y E v er gl a d e s N ati o n al P or k. W alt er Cr o n kit e, i n a 

' C B S- T V " 2 0t h C o nt ur y " br o a d c a st, s ai d: " T h e Gl a d e s.. .f a c e 

str a n g ul ati o n fr o m fl o o d- c o ntr ol l o c k s... w hi c h di v ert t h e w at er s o 

d e s p er at el y n e e d e d". Y et t h e Fl ori d a E v er gl a d e s - n ot j u st t h e P ar k - 

w o ul d n ot b e f u n cti o ni n g t o d a y w er e it n ot f or o n e of m a n' s w at er 

m a n a ge m e nt pr oj e ct s. N or w o ul d t h e gr e ot b ul k of wil dlif e, 

i n cl u di n g fl or a a n d f a u n a n ati v e t o t h e l o w er e a st c o a st o n d S o ut h 

Fl ori d a b e n ot o nl y ali v e b ut q uit e w ell.

T he r e c e nt dr o u g ht a g ai n br o u g ht f ort h al or mi st s. T he F G D, i n s pit e 

of m u c h e m oti o n ali s m fr o m m a n y s o ur c es, q ui etl y st u c k t o it s g u n s, 

k e e pi n g d ail y t a b ul ati o n s o n t h e dr o u g ht a n d t h e w at er i n F C D st or a g e. 

F C D w as o n t e c h ni c al, n ot e m oti o n al gr o u n d a n d t h e s y st e m w or k e d - 

t h e l o w er e a st c o a st g ot w at er d eli v er e d t o it w h e n it wa s n e e d e d. 

C a r ef ull y d e si g n e d a g ri c ult ur al w at er m a n ag e me nt s y ste ms m od e 

p o s si bl e n e e d e d f o o d pr o d u cti o n a n d pr ot e ct e d irr e pl a c e a bl e m u c kl a n d s 

fr o m t h e r a v o ge s of fir e a n d er o si o n.

T h e criti c s w er e pr o v e n wr o n g t hi s p a st dr y s e as o n. Y et t h eir all e g ati o n s 

h a v e c o nti n u e d. Criti c s h a v e b e e n a n d ar e bl o c ki n g ot h er m u c h- n e e d e d 

f a c et s of t h e t ot al F C D w at er m a n a g e m ent pr oj e ct. A m o n g t h e se 

or e w or k s o n t h e U p p er St. J o h ns Ri v er, o n S hi n gl e Cr e e k a n d i n 

H e n dr y C o u nt y - all of w hi c h h o v e b e e n a ut h ori z e d b ut ar e st y mi e d 

b y t h e e m oti o n ali s m of u n k n o wl e d g e a bl e criti c s. A s a r e s ult, fl o o d 

d a ma g es c a n b e s uff er e d a n d m u ni ci p aliti e s, p a rti c ul a rl y i n t h e 

U p p er St. J o h n s B a si n, f a c e a n u n c e rt ai n f ut ur e s u p pl y of w at er 

n e e d e d t o s u p pl e m e nt t h eir o w n w ell fi el d s. A s w ell, t h e se ar e a s will 

c o nti n u all y f a c e t h e t hr e at of fl o o di n g o n d c o n s e qu e nt l os se s u n til 

s u c h ti m e a s t h e se a ut h ori z e d w or k s ar e all o w e d t o pr o c e e d.

T he t ot al F C D pr oj e ct, li k e s o m a n y ot h er s, h as s uff er e d d el a y s a n a 

c o n str u cti o n h alt s fr o m t h e all e g ati o n s o n d " m o y b e s" of e n vir o n m e nt ali st s. H a d it n ot b e e n f or t h e c o ur a g e of e arl y l e o d er s w h o r e c o g ni z e d
8 5 2

t h e v ol u e of t h e o v er all pr oj e ct t o m a n a n d hi* e n vir o n m e nt a n d t h e str o n g s u p p ort b y t h e l at e 

S e n at or S p es sard H oll a n d, t h e cri e s of t h e ill-i nf or m e d w o ul d h a v e d e pri v e d t h e st at e a n d t h e 

n ati o n of t h e s e b e n efit s. I n st e a d of t h e s a vi n g s of dr o u g ht a n d fl o o d pr e v e nti o n, m a ny ti m e s t h e 

c o st of t h e pr oj e ct w o ul d h a v e b e e n w a st e d pr o vi di n g alt er n at el y fl o o d a n d dr o u g ht di s a st er r eli e f f u n d s.

T he C e ntr al a n d S o ut her n Fl ori d a Fl o o d C o ntr ol Di stri ct i s o n e t o b e pr o u d of. T he b e n efit s a n d 

pr ot e cti o n pr o vi d e d f or o ut w ei g h a c k n o wl e d g e d a d v er s e e n vir o n m e nt al eff e ct s t h at w er e a c c e pt e d 

tr a d e off s d uri n g pr oj e ct pl a n ni n g a n d d e si g n.

It i s p a st ti m e t o gi v e cr e dit a n d cr e d e n c e t o t h e pr o v e n e x p ert s i n w at er m a na g e me nt a n d g et o n wit h 

t h e j o b.

I N- D E P T H S T U D Y O F W A T E R R E S O U R C E S P O LI C Y U N D E R W A Y

T he W at er R es our ce s S u b c o m mitt e e of t h e S e nat e P u bli c W ork s C o m mitt e e has. st art e d a s erie s of 

h e ari n gs - r e all y a r e vi e w a n d st u d y - of w at er r e s our c es p oli c y. S e n. Mi k e Gr a v el, Al a s k a, i s 

s u b c o m mitt e e c h air m a n.

Di s cu s sin g t h e t ot al ci vi J w or k s pr o gr a m. S e n. Gr a v el s ai d: " W e n e e d t o l e ar n w h at pr o bl e ms e >i st 

o n d w h at t h e C o n gr e ss c a n d o t o s ol v e or all e vi at e t h e se pr o bl e m s."

Ril e y S. Mil e s, e x e c uti v e dir e ct or of t h e W at er U sers A s s o ci ati o n, att e n d e d o n e s e ssi on of t h e 

s u b c o m mitt e e. Mil e s wo s p a rti c ul arl y i m pr e ss e d wit h t h e k e e n att e nti o n all m e m ber s p ai d t o 

t e sti m o n y; h e f o el s s u bs e qu e nt q u e sti o n s fr o m s u b c o m mitt e e m e m ber s i n di c at e d a si n c er e i nt er e st i n 

o d o pti n g a r ati o n al, b al a n c e d a p pr o a c h.

A N A D MI NI S T R A TI O N E F F O R T T O C O N T R O L E N VI R O N M E N T A L C O S T S ?

Pr e si d e nt Ni x o n p oi nt e d o ut s o m e w e ek s b ef or e hi s r e si g n ati o n t h at h e f elt " e n vir o n m e nt" m ust s h ar e 

p art of t h e bl a m e f or o ur pr e s e nt i nfl ati o n o n d t h e r at e at w hi c h i nfl ati o n c o nti n u e s t o cli m b.

Ni x o n s ai d i n L o s A n g el e s: " . . . we oft e n h a v e a t e n d e n c y t o p u s h p a rti c ul a r s o ci al g o al s s o f a st or s o 

f ar t h at ot h er i m p ort a nt g o al s ar e u n d ul y s a crifi ci e d ."

T h e p oi nt i s n ot wit h o ut m erit; m a ny h a v e l o n g f elt a r e al pri c e s h o ul d b e p ut o n a n y a n d all pr ot e cti v e 

m ea s ur es - b al a n c e m ust b e a c hi e v e d, a tr a d e - off, if y o u will, b et w e e n t h e g o o d a n d t h e b a d. It 

h a s b e e n e sti m at e d t h at e n vir o n m e nt al pr ot e cti o n r e g ul ati o n s a n d t h e r e s ult o nt, oft e n st a g g eri n g c ost s 

of c o m pli a n c e a c c o u nt f or o n e- h alf of o n e p er c e nt p er y e ar i n t h e e s c al ati o n of t h e c o st- of-li vi n g 

i n d e x; it h os b e e n e sti m at e d, t o o, t h at t hi s fi g ur e c o ul d cli m b t o t w o p e r c e nt u nle s s r e a so n i s a p pli e d.

T h e C o n gr e s s, wit h it s mi n d b a c k o n t h e b u si n es s of r u n ni n g t h e n ati o n, m a y n o w l o o k f a v or o bl y u p o n 

s u c h m o difi c ati o n s i n e n vir o n m e nt al dir e cti v e s.

Pr e si d e nt F or d, wit h hi s a v o w e d c o n c er n a b o ut i nfl ati o n, c o ul d b e t h e l e a d er i n e st a bli s hi n g o b al a n c e 

i n c o ntr ol s a n d c o st s.
8 5 3

Se nat or G r a v e l . O ur ne xt wit ness is Mr. J. A. D o w ns, presi de nt of 

t he Nati o nal Ass ociatio n of Dre d gi n g C o ntra ct ors.

Mr. D o w ns, y o u ma y pr oceed. W o ul d y o u i ntr o d uce t he ot her 

me m bers w h o ha ve j oi ne d y o u?

S T A T E M E N T O F J. A. D O W N S, P R E SI D E N T, N A TI O N A L A S S O CIA TI O N O F D R E D GI N G C O N T R A C T O R S; A C C O M P A NI E D B Y: J. W.

B E A N, P R E SI D E N T, C. F. B E A N C O., N E W O R L E A N S; J O E D U D A,

P A C I FI C M A N A G E R G R E A T L A K E S D R E D G E & D O C K C O.; B A R R Y

S U L LI V A N, W A S HI N G T O N R E P R E S E N T A TI V E O F T H E A S S O CI ATI O N

Mr. D o w n s . T ha n k y o u, sir. We t ha n k y o u a n d a p preciate t he 

o p p ort u nit y t o be here, Air. C hair ma n.

Mr. C hair ma n, f or t he rec or d, m y na me is J o h n A. D o w ns. I a m 

presi de nt of Great La kes Dre d ge & D oc k C o. I a m als o presi de nt of 

t he Nati o nal Ass ociati o n of Dre d gi n g C o ntract ors. I s h o ul d als o 

p oi nt o ut t hat I a m a me m ber of t he A d vis or y C o m mittee f or t he 

Nati o nal Dre d gi n g St u d y.

Wit h me t his m or ni n g t o m y left is Mr. Ji m Bea n, presi de nt of t he 

C. F. Bea n C or p, of Ne w Orlea ns. O n m y far ri g ht is Mr. J oe D u da, 

Pacific ma na ger of Great La kes Dre d ge & D oc k C o.; a n d Barr y 

S ulli va n, t he Was hi n gt o n re pre se ntati ve of t he ass ociati o n.

T he nati o nal dre d gi n g st u d y is t he m ost c o m pre he nsi ve st u d y 

e ver ma de of t he Fe deral dre d gi n g pr o gra m a n d t he dre d gi n g p olicies 

a n d practices of t he C or ps of E n gi neers.

T he st u d y p oi nts o ut t he ur ge nt nee d f or le gislati ve c ha n ges i n t he 

stat ut or y basis f or acc o m plis h me nt of t he Fe deral dre d gi n g pr o gra m 

a n d i n t he i nter nal dre d gi n g p olicies of t he c or ps.

O ne of t he m ost si g nifica nt fi n di n gs of t he st u d y is t hat i n d u str y’s 

s hare of t he dre d gi n g acti vit y a d mi nistere d b y t he C or ps of E n gi neers 

has decli ned si g nifica ntl y o ver t he past 10 years.

W hile at t he sa me ti me t he a m o u nt of dre d gi n g w or k d o ne b y 

G o ver n me nt dre d ges has s u bsta ntiall y i ncrease d.

As a res ult, utilizati o n of i n d ustr y e q ui p me nt has n ot a p pr oac he d 

50 perce nt i n rece nt years. I n fact, t o da y i n ma n y areas pri vate 

i n d u str y’s e q ui p me nt is pr o d ucti vel y e m pl o ye d f or o nl y 3 t o 6 m o nt hs 

o n t he a vera ge. O n t he ot her ha n d, t he C or ps of E n gi neers e q ui p me nt 

c o nti n ues t o e nj o y a hi g h le vel of utilizati o n.

T he c or ps p olic y of ma xi m u m utilizati o n of its o w n dre d ges bef ore 

a d vertisi n g w or k f or c o m petiti ve bi ds a n d t he lac k of ne w w or k has 

se verel y h urt t he dre d gi n g i n d ustr y i n t he U nite d States. Ma n y 

dre d gi n g c o m pa nies ha ve bee n f orce d o ut of b usi ness, d uri n g t he past 

10 years, a n d t he pr ofita bilit y of t he i n d ustr y has bee n l o w.

T he nati o nal dre d gi n g st u d y rec o m me n ded t hat i n d usti y partici pa ­

ti o n i n t he Fe deral dre d gi n g pr o gra m be s u bsta nti all y i ncrease d t o 

i ns ure a healt h y a n d via ble dre d gi n g i n d ustr y.

T he st u d y als o pr o p ose d t hat i n d ustr y be gi ve n t he o p p ort u nit y t o 

ta ke o ver a lar ge s nare of t he pr o gra m b y all o wi n g i n d ustr y t o bi d o n 

w or k d o ne b y c or ps h o p per dre d ges.

I n a d diti o n, t he st u d y rec o m me nde d c ha n ges i n p olicy t o ass ure a 

pr ofita ble dre d gi n g i n d ustr y a n d t o e nc o ura ge i n d ustr y t o i n vest i n 

ne w e q ui p me nt.
8 5 4

T h e A d vis or y C o m mittee als o re c o m me n d e d t h at t he c or p s dre d gi n g 

fleet be ke pt t o a mi ni m u m size t o be use d pri m aril y f or e mer ge nc y 

w or k a n d t o me et nati o n al defe ns e re q uire me nts. T his will eli mi nat e 

t he u n wa rra nte d c o m petiti o n b y t he G o ver n m e nt wit h pri vat e 

i n d u str y a n d i ns ure t he gr o wt h of t he dre d gi n g i n d ustr y i n t he U nite d 

States.

As t he c o ntr act or fleet ca p a bilit y i ncre ases a n d de m o nstrat es 

c o ncl u si vel y t h at it ca n d o t he w or k, t he G o ver n m e nt dre d g e fleet 

s h o ul d be re d u ce d. N o re plac e m e nt or ne w c o n str ucti o n of G o v er n ­

m e nt dre d g es s h o ul d be a ut h ori ze d si nce i n d ustr y is willi n g t o pr o vi de 

w h ate ver ca p a bilit y is re q uir e d.

T h e st u d y pr oj ecte d t h at t he ma g nit u de of t h e G o ver n m e nt pr o gra m 

will i ncrea se a p p recia bl y o ve r t he ne xt 10 yea rs. It f urt h er c o ncl u de d 

t h at t he i ncrea se i n w or k ca n be a bs o r be d m o st ec o n o micall y, i n ter m s 

of u nit c osts a n d i n ter ms of ca pital i n v est me nt, b y assi g ni n g m uc h of 

t he i ncre ase t o i n d ustr y f or c o ntract.

I a m ha p p y t o re p ort t o t he c o m mittee t h at as a res ult of rec o m ­

me n d ati o n s of t he st u d y, i n d u str y is i n pr oce ss of e x pa n di n g its fle et of 

h o p p er dre d g es i n a d diti o n t o t w o e xisti n g i n d u str y dre d g es.

M y o w n c o m pa n y is alre a d y pr ocee di n g wit h c o n str u cti o n of t w o 

ocea n g oi n g h o p per dre d g es. T hi s first o ne is n o w u n d er c o n str u cti o n 

a n d deli v er y is sc he d ule d f or J u n e 1976. T his dre d ge is a me di u m-size 

dre d ge wit h 3,7 00- c u bic- yar d ca p acit y w hic h is al m ost d o u ble t he 

a n n u al ca p acit y of t he dre d ge Mac ke nzie.

T h e sec o n d dre d ge will be a lar ge h o p per dre d ge wit h 11, 300-c u bicya r d ca p acit y. T h e desi g n of t his dre d ge has bee n c o m plete d a n d we 

are a waiti n g bi ds fr o m s hi p y ar d s w hic h are d ue s h ortl y.

T he c o ntra ct f or c o n str u cti o n of t his dre d ge is e x pe cte d t o be 

a war de d b y A u g u st 1, 1975.

I n a d diti o n, Willia m s- M c Willia m s C o. of Ne w Orlea ns, La., is 

pla n ni n g t o b uil d a 6,00 0-c u bi c- y ar d ca pa cit y h o p p er dre d g e w hic h has 

a pr oj ecte d sc he d ule d deli ver y date t or fiscal ye ar 1977. T he c o n ­

str ucti o n c o ntra ct f or t his dre d g e w hic h will c ost a n esti m ate d $17 

t o $20 milli o n will be a war de d ar o u n d Oct o b er of t his yea r.

T hes e t hr ee ne w i n d ustr y h o p pe r dre d ges re p res e nt a 50- perce nt 

i ncre ase t o t he pre se nt t otal C or p s of E n gi neers h o p per ca p a bilit y a n d 

will pr o vi de 80 perce nt of t he a d diti o nal ca p a bilit y w hic n t he st u d y 

pr oject e d w o ul d be re q uire d b y t he ye ar 1985.

I n a d diti o n, t here are ot h er dre d gi n g fir ms s uc h as C. F. Bea n 

C or p, of Ne w Orle a ns w h o ha v e te nt ati v e pla ns f or c o nst r ucti o n of 

h o p per dre d ges w h o will pr ocee d wit h c o n str ucti o n if t he y are ass u re d 

t h at t he c or ps p olicies will per mit ec o n o mical utilizati o n of i n d u str y 

h o p per dre d ge s.

se nat o r G r a v e l . Ca n I i nt er r u pt y o u? W he n y o u were tal ki n g a b o ut 

t he dre d g es, y o u were tal ki n g a b o ut t he Willia m s- M c Willia m s dre d ge. 

T ha t is y o u r c o m pa n y t h at is b uil di n g t h at ?

Mr. D o w n s . N . M y c o m pa n y is Gr eat La k es Dre d ge & D o c k C o.

Se nat or G r a v e l . S o y o u ha v e o ne me di u m-size a n d o ne lar ge 

dre d ge?

Mr. D o w n s . T h e me di u m-siz e o ne is bei n g b uilt i n t he s hi p y ar d s 

t o d a y.

Se nat or G r a v e l . W h o is Willia m s- M c Willia ms?

Mr. D o w n s . Willia m s- Mc Willia ms is a s e p arate c o m pa n y a n d me m ­

ber of t he or g a ni zati o n.
8 5 5

Se nat or G r a v e l . W h o else i n t he i n d u str y is b uil di n g? Is t h at ess e ntiall y t he i n d ust r y eff ort ?

Mr. D o w n s . At t he m o me nt, Se n at or.

Se nat or G r a v e l . Y o urself a n d Willia m s- M c Willia m s?

Mr. D o w n s . Yes. It is a n a n n o u n ce d eff ort at t he m o me nt, Se n at or, 

b ut t he i m p o rta nt p oi nt we tr y t o ma k e here is, if t he c or ps p olicies 

are re g ulate d, I a m f ull y c o n vi nce d t here are ma n y me m bers of t he 

i n d u str y w h o will ste p i nt o t he ga p a n d fill t he ga p o nce t he y are 

ass ure d t h at t he y will be gi ve n a c ha n ce t o c o m pet e, a fair c ha nce t o 

c o m pete.

Se nat or G r a v e l . Ha ve y o u see n t his? T his is w h at t he c or ps pr epare d f or t he H o u se A p pr o priati o n s C o m mitte e.

Mr. D o w n s . I ha d a c ha nce t o gla nc e at it t hi s m or ni n g. I ha ve n’t 

ha d ti me t o st u d y it.

Se nat or G r a v e l . I state d at t he be gi n ni n g of t h e h eali n g s t he rec o r d 

will be o pe n f or a d diti o nal testi m o n y. S o I w o ul d a p p reciate it if y o u 

w o ul d e xa mi ne t he s c he d ule t he y ha v e here a n d ti m e fra m es t he y feel 

deli v eries s h o ul d ta k e place a n d t he n ma k e a j u d g me nt as t o w h et h er 

or n ot t he pri vate sect or ca n ha n dle t his t y pe of sc h e d uli n g; beca use 

t hi s is t he w or k t h at is vie we d b y t he c or p s i nt o 1 9 9 2 a n d be y o n d w h at 

t he y pr oje ct will be nec essa r y t o ha n dle it.

Mr. D o w n s . We w o ul d ver y m uc h a p pre ciate t he o p p ort u nit y t o d o 

t h at, Se n at or. T ha t is parti c ularl y i nt ere sti n g t o me, ha vi n g bee n o n 

t he A d vis or y C o m mitte e a n d k n o wi n g s o m et hi n g of t h at. We w o ul d 

ver y m uc h a p pre ciate t he o p p o rt u nit y t o c o me bac k t o y o u wit h a 

state m e nt o n it.

Se nat or G r a v e l . Fr o m m y o w n i nf o r m ati o n, s o fe w c o m pa nies ha v e 

it, y o u are al m ost o n a s ole s o urc e c o ntra ct wit h t he G o ver n m e nt i n 

t hi s re g ar d.

Mr. D o w n s . P ar d o n ?

Se nat or G r a v e l . Yo u are al m ost o n a s ole s o urce c o ntr act f or 

dre d gi n g. Or ma y be I a m n ot recei vi n g it c orr ectl y. H o w m uc h c o mpetiti o n is t here reall y i n t he dre d gi n g b usi ne ss?

Mr. D o w n s . T h ere has bee n u nli mit e d c o m petiti o n i n certai n fiel ds 

of dre d gi n g, certai n t y p es of e q ui p m e nt. T hr o u g h t he yea rs it has 

c o me a b o ut t h at t h e C or p s of E n gi n eers ar e t he o nl y pe o ple w h o o w ne d 

h o p p er dre d ge e q ui p m e nt. T h us car r y t he e ntire w or kl oa d.

It is o nl y i n rec e nt yea rs t he p olicies of t he C o n gress a n d of t he 

c or ps ha v e c o me t hr o u g h t o t he i n d ustr y t h at i n d ustr y n o w belie v es 

it will be gi ve n t he o p p o rt u nit y t o c o m pete.

O nce belie vi n g t his, we l o o k f or c o m pa nies all o ver t he c o u ntr y t o 

be gi n t o b uil d t hi s t y p e of e q ui p m e nt. Fi rst t he y m u st be c o n vi nce d 

t h at t he fiel d of c o m petiti o n is a vaila bl e t o t he m.

As I sa y, it is o nl y i n r ece nt y ear s t hr o u g h t he c ha n gi n g pict ur e t h at 

t he i n d ustr y h as see n, t hr o u g h t he t hi n ki n g of t he C o n gre ss a n d of t h e 

c or ps, t h at t he y are e nc o ura g e d t o d o t his.

Se nat or G r a v e l . Ho w diffic ult was it f or y o u t o fi na nc e t he o nes 

y o u ha v e a n d t he o nes u n d er c o n str u cti o n?

Mr. D o w n s . O n ce ha vi n g bee n c o n vi nce d o ursel ves t his are na was 

o pe n t o us, t he fi na nci n g is n o pr o ble m i n t h at we ca n g o t o pri vate 

s o urces of fi na n ci n g a n a, c o n vi n ce t he m of t h e sa me t hi n g, t ne re is 

n o pr o ble m.

It is getti n g o ve r t he h u m p t h at we will be all o we d t o c o m pet e i n 

t he are n a, as it were. T h at h u m p bei n g o ver, t here is n o diffi c ult y i n 

pri vat e fi na nci n g.
8 5 6

Se na t or Gr a v e l . I w o ul d j u st sa y t h at I t hi n k t he cr u x a n d t he 

t h r u st of w h at y o u w a n t t o a d dress y o ursel ves t o is n ot i n w h at y o u 

are stati n g t o d a y b ut h o w y o u are g oi n g t o ha n dle t his pa pe r.

Mr. D o w n s . T hat is certai nl y ger m a ne.

Se nat or G r a v e l . T h at is w hat t he ar g u m e nt is g oi n g t o hi n g e o n. I 

visite d wit h t he c or ps pers o nall y o n t he s u bj ect. T h e y feel a n d t he y 

i n dicate t h at t he y wa nt t o g o i n a directi o n t o ha ve t he pri vate sect or 

d o it. T h e y ha v e c o nc er ns a b o ut t heir missi o n, a n d t heir missi o n is t o 

get st uf f dre d g e d. We ha ve, o b vi o usl y, t he sa me q uer y.

Well, if i n d ust r y d oes n’t c o me o ut a n d d o it, t he n h o w ba d are we 

g oi n g t o be h u rt ti me wise o n certai n t hi n g s t h at m a y ha v e t o be d o ne. 

T hi s is t he j u d g m e nt t h at is ^ oi n g t o ha ve t o be ma de i n t hi s re gar d.

B ut i n l o o ki n g at t he wa y it is br o ke n o ut, o b vi o usl y t his g oes o ver 

a peri o d fr o m 1 9 7 6- 9 2, a n d we h a ve t his alrea d y i n 1 9 77 a n d t he n t he 

rest is j u st i n d u str y.

W hat we w o ul d ha ve t o see h a p p e n is s o me na m es t h at will re place 

i n d ust r y, li ke Gr eat L a kes or Willi a ms- Mc Willia m s o r n e w c o m p a nies 

t h at y o u sa y w o ul d p o me i nt o bei n g, a n d w h at w o ul d ha p pe n. T hat is 

w here y o ur ar g u m e nt s h o ul d be f oc use d o n a n d a d dress e d t o.

Si nce y o u ha ve n’t see n t his, I t hi n k it w o ul d be bette r ------

Mr. D o w n s . Se n at or, I a p p reciate w h at y o u are sa yi n g. Y o u are 

getti n g ri ^ ht t o t he gist of t he e ntire t hi n g. M y o nl y m essa ge tr ul y is 

o nce t he i n d ust r y is c o n vi n ce d t h at t he o p p o rt u nit y is t her e, t h os e 

na m es will a p p ear pr o ba bl y t o t he p oi nt as pr ese ntl y e xists i n t he 

ot h er t y p es of e q ui p m e nt i n t he i n d ust r y w here t here is a n o verca pa cit y o n t he i n d u str y’s part. T hi s is s o m et hi n g we ca n’t c o ntr ol.

B ut o nce t he o p p ort u nit y is t her e, a n d belie vi n g t h at o p p ort u nit y, 

I a m c o n vi nce d t h at t he pri vate sect or will fill t he ga p.

Se nat or G r a v e l . T h ere ar e n ot t o o ma n y b usi nes ses i n t hi s c o u ntr y 

w here t he G o ver n m e nt is p re p are d t o la y o ut t he v ol u m e of w or k t h at 

is g oi n g t o e xist bet w ee n n o w a n d 1 9 9 2.

If I were i n t he dre d gi n g b usi n ess a n d ha d s o m e b o d y t o la y o ut t he 

w h ole w or k pr o gra m a n d all I ha d t o d o is g o w or r y a b o ut bei n g 

efficie nt a n d getti n g t he ca pital, t h at c a n’t be t o o t o u g h a d eal.

S o I w o ul d j u st sa y t h at y o u pe o ple ha ve g ot y o ur w or k c ut o ut f or 

y o u ri g ht h ere, u nless t he c o r ps is n ot g oi n g t o c o me u p wit h t his w or k 

or t he C o n g ress is n ot g oi n g t o f u n d t his w or k.

B ut I a m s ure t he basis of w h at t he c or ps pr ojects here is w h at is 

m a n dat or y i n nat ur e i n or d er t o kee p o ur wat er w a ys w or ki n g. S o it 

w o ul d see m it is a tas k t h at c o ul d be d o ne if y o u c o ul d j u st de vel o p a 

pr o gra m wit hi n y o ur i n d ust r y t o pr o ve t o us t h at y o u are pre p are cf t o 

d o t his.

Y o u ha v e alre a d y ma d e t h at pr o of ri g ht n o w b y ite m s 1, 2, a n d 3 

here. Y o u are u n d er c o n str u cti o n a n d desi g n a n d y o u ha v e t he m 

fi na nc e d. Y o u ha v e t o e xte n d t h at o ut a little bit f urt he r.

Mr. D o w n s . We a p p reci ate t h at, Se n at or.

Se nat or G r a v e l . 1 a m s ure t he C o n gr ess w o ul d pr o ba bl y bac k off 

o n t he a p p r o p riati o n pr ocess, j u st h o pi n g t h at t he i n d ustr y will c o me 

f or w ar d a n d ci o it.

I detect t he maj orit y of t he Me m bers of C o n gr ess, m yself i ncl u d e d, 

are f or free e nter pri se a n d w o ul d rat h er see it d o ne at a n ar m’s le n gt h of 

G o ver n m e nt. T h at wa y G o ver n m e nt ca n perf or m a bette r r ole as pr otecti n g o ur i nt ere st b y ha vi n g y o u d o it. W he n t he c or p s d oes it, we 

ha v e n o b o d y pr otecti n g o ur i nt ere st beca us e it is t o o cl ose t o t he
8 5 7

vest . We w o ul d rat h er use t he c or ps t o wat c h y o u. I sa y t h at 

par e nt heticall y.

Mr. D o w n s . If I ma y p oi nt o ut, we i n t he i n d u str y feel we ca n 

res p o n d m uc h m ore q uic kl y t h a n is i n dicat e d b y t he c or p s i n c o nstr ucti n g ne w e q ui p m e nt. I t hi n k we ha v e pr o v e n it wit h t his m o st 

rec e nt e ff ort o n o ur p art. Fr o m c o nc e pti o n t o c o m pleti o n we e x pe ct it 

t o be less t h a n 1 8 m o nt hs t o b uil d a me di u m-siz e h o p per dre d ge.

As we l o o k f or w ar d t o 1 9 9 2 or 1 9 8 8, it is mi g ht y diffic ult f or us t o 

defe n d o ur acti o ns of 1 5 or 2 0 ye ars a hea d. We d o see i n t he near 

f oresee a ble f ut ure, 5 or 6 years, we ca n res p o n d t o t he nee ds.

Se nat or G r a v e l . I ma y c o u ns el y o u t her e. O ur pr o ble m t he re is a 

ti me fra m e t hr o u g h w hic h C o n gres s a n d t he c or ps ca n act o n t he 

b u d g eta r y pr ocess. S o if y o u wa nt t o get ar o u n d us, a n d if y o u are 

g oi n g t o deal i n a ti me fra m e t h at is c o m pati ble t o t he ti me fra m e we 

m u st act i n t o effect t he pr o per p olicies.

Let me as k t his q ue sti o n: W hat is t he a vera ge diffe re ntial i n price 

bet w ee n t he c ost of i n d u str y c o ntr acti n g dre d gi n g vers us Fe d eral 

dre d gi n g ? Ca n y o u gi ve us a n yt hi n g i n t h at re g ar d ? I t hi n k we all 

ta k e it f or gr a nte d t h at t he i n d u str y is g oi n g t o d o it m ore efficie ntl y.

Mr. D o w n s . T h e a d vis or y st u d y s p e nt q uite a bit of ti me o n t his 

a n d c o ul d c o me u p wit h n o c o ncl usi v e esti mates. Gi ve n t he sa me 

r ules, t he sa m e c o n diti o ns o n b ot h parts, i n d u str y feels t h at t here 

ne v er ha s bee n t he ti me, a n d t he re is n ’t t o d a y, t he y ca n’t d o it m ore 

ec o n o mic all y t h a n t he G o ver n m e nt b y t he c or ps - o w n e d e q ui p m e nt.

T his is s o m et hi n g t h at t o a ns wer i n a se nte nc e or t w o is diffic ult. 

T h ere are s o ma n y facets, met h o ds of me as u re m e nt a n d sc he d uli n g, 

a n d all s orts of t hi n gs. B ut t he a d vis or y c o m mittee s pe n di n g ti me o n 

t hi s ne ver dis p ute d t h at.

Se nat or G r a v e l . Ver y g o o d.

Se nat or D o m e ni ci . Mr. C h air ma n, c o ul d I i n q uire, I a m s o m e w hat 

c o nf use d n o w i n ter m s of y o ur st at e m e nt i n t h at y o u ha ve n’t bee n 

getti n g a fair s ha re of t he dre d gi n g w or k. T h e i nf or m ati o n t h at I 

na v e, t he c or ps s pe n ds a b o ut $ 1 5 5 milli o n a n d t w o-t hir ds of t h at w o r k 

is d o ne u n der c o ntra ct n o w. T h at is 6 6 % per ce nt.

Mr. D o w n s . We d o n’t feel t h at t he re is a n y place f or t he c or p s t o 

c o m pete wit h i n d ustr y i n a n y i nsta n ce, e xc e pt f or t h os e e me r ge n c y 

i nsta n ces w her e t her e ma y be a re q uir e m e nt i n case of a nati o nal 

defe ns e or nati o nal e me r ge n c y w her e certai n e q ui p me nt s h o ul d be 

mai nt ai n e d b y t he c or ps.

Se nat or D o m e ni ci . Yo u are tal ki n g a b o ut t he differe nce bet w ee n 

6 6 % perce nt a n d 1 0 0 t he n or 9 5?

Mr. D o w n s . I f t hese be t he fi g ures, yes, sir.

Se nat or D o m e ni ci . T h e fi n di n gs of t h at st u d y gr o u p y o u were o n, 

I a m s ure — y o ur bl ue b o o k — di sa gr ee wit h it o n t hi s p oi nt, b ut it 

sa ys t h at t he rati o s h o ul d be a b o ut 2 5 t o 3 5 perce nt c or p s a n d a b o ut 

6 5 t o 7 5 perce nt i n d ust r y. T h at is n ot m uc h diff ere nt fr o m w h at it is 

ri g ht n o w, is it?

Mr. D o w n s . T his was t he fi n di n g of certai n of t he a d vis or y gr o u p 

wit h r es p ect t o t he c a pital i n v est me nt, t he o v erall l o o k at t hi s pict ur e, 

a n d yet t he c o m mittee di d rec o m m e n d t h at e ve r y o p p o rt u nit y be 

gi ve n t o i n d ustr y' t o c o m pete i n t he fiel d wit h t he c or ps.

It is o ur c o nte nti o n t h at o nce Fe d eral m o n e ys are e x p e n d e d i n t h o 

b uil di n g of e q ui p m e nt b y t he c or ps, fr o m here o n o ut pri vate i n d ust r y 

n o l o n g er has a c ha n ce t o c o m pete wit h t he m bec a use t he p olic y is t o
8 5 8

utiliz e it 100 per ce nt of t he ti me. S o all we are reall y as ki n g f or is t he 

o p p o rt u nit y t o i n v est o ur m o ne y bef ore t he c or p s b uil ds ne w e q ui p ­

me nt a n d gi ve us t he o p p o rt u nit y t o c o m pete.

I w o ul d sa y i n refere nce t o w h at t he c hair m a n s p o ke a b o ut here as 

t o t he missi o n of t he c or ps, we are n ot a n irres p o nsi ble b usi ne ss. We 

realiz e t he c or ps has a missi o n t o mai nt ai n t he na vi ga ble c ha n nels of 

t hi s c o u ntr y.

Bei n g gi ve n t he o p p o rt u nit y, as we see m t o be at t his pre se nt state 

of t he ga me, we d o n’t i nt e n d t o, let’s sa y, bl o w t h at a n d n ot f ulfill 

t he missi o n. We d o n’t wa nt t his t hi n g t o get i n seri o u s tr o u ble 2 or 3 

yea rs fr o m n o w beca use we k n o w it will t he n be 100 yea rs bef or e 

a n y b o d y ca n tr y it a gai n.

S o we will n ot fall d o w n i n t his area, gi ve n t he c ha n ce t o c o m pete.

I d o n’t t hi n k t here will be a n y q ue sti o n t h at i n d ustr y will h ol d u p 

its e n d.

Se n at o r D o m e ni ci . Yo u are getti n g t w o-t hir ds of t he b usi ne ss n o w, 

as I u n d ersta n d it. T ha t is w h at t he i nf or m ati o n I get is. A b o ut t w ot hi r ds of $ 155 milli o n is d o ne b y pri vate c o ntr act. Are y o u bei n g de nie d 

t he o p p ort u nit y t o gr o w a n d c o m p ete at t w o-t hir ds? I s t here s o m et hi n g 

diff ere nt a b o ut t he o ne -t hir d I d o n’t u n de rst a n d?

Mr. D o w n s . Let me sa y, Se n at or, m o st of t he o ne -t hir d t h at is 

d o ne b y t he C or ps of E n gi neers, t he b ul k of it is d o ne b v parti c ular 

e q ui p m e nt, h o p p er-t y p e dre d ge s. F or reas o ns hist oric all y t his has 

gr o w n t o be t he pri vate preser ve of t he C or ps of E n gi neer s.

We are as ki n g f or t he o p p o rt u nit y t o c o m pete i n t his fiel d, t o b uil d 

o ur o w n e q ui p m e nt, wit h n o Fe d eral s u b si d y of a n y s ort, b u t merel y 

t he ass ura nc e of t he o p p o rt u nit y t o c o m pete o n t he sa me basis t h at 

t he c or ps perf or m s t he w or k. We feel t his w o ul d be t o t he be ne fit n ot 

o nl y of t he i n d ustr y b ut t o t he citize ns of t he U nite d States.

Se nat or D o m e ni ci . T h e n, i n t h at re g ar d, is t he nati o n al dre d gi n g 

st u d y of w hic h y o u were a part, b ut o b vi o usl y y o u were a d vis or y t o 

it b ut t he C hief E n gi n eer e n de d u p dra wi n g it u p, w here t he y sa y t he 

rati o o u g ht t o re m ai n bet w ee n 25 a n d 35 c or ps a n d 65 a n d 75 pri vate, 

y o u d o n’t a gree wit h t h at beca u se of w h at y o u ha v e j u st e x pl ai ne d, 

t h at i n t h at pa rt t he G o ver n m e nt is mai nt ai ni n g, t he y are al m ost 

mai nt ai ni n g a n e xcl u si ve t y p e t h at y o u w o ul d li ke t o get i nt o ? Is 

t h at ri g ht?

Mr. D o w n s . T h ere were t w o of t he ei g ht me m bers of t h at c o m ­

mitte e w h o were pri vate i n d ustr y me m bers. T h e y were t he o nl y t w o 

o n t he c o m mittee t h at belie v e d t he pri vate i n d u str y w o ul d e ver pa r ­

tici pate, e ver m o ve f or w ar d i n t his fiel d of c o m petiti o n.

F o r 200 years, or w h ate ver t he le n gt h of ti m e t he c or ps has bee n 

e n ga ge d i n t hi s pa rti c ular acti vit y, t hi s has bee n d o ne b y t he c or ps. 

It was u n b elie va ble t o s o me of t he pe o pl e o n t he c o m mittee t h at 

pri vate i n d ust r y, first off, w o ul d be gi ve n t he o p p o rt u nit y; a n d, 

sec o n dl y, w o ul d i n v est t he f u n d s t o b uil d t he e q ui p me nt t o d o it. 

T h e basis be hi n d t he rec o m me n dati o n is c ol ore d t o t h at e xt e nt.

Se nat or D o m e ni ci . T h a n k y o u, Mr. C h air ma n.

Se nat or G r a v e l . T h at ha n dles t he s u bject, I t hi n k, fr o m o ur p oi nt 

of vie w, a n d I reall y wa nt t o call y o ur atte nti o n t o it a n d ha v e y o u 

get bac k t o us wit h s o me writte n testi m o n y bec a use it c o ul d ma ke a 

differe nce a n d, of c o urse, it w o ul d pr o vi de y o u wit h t he t o ols f or y o ur 

c o nti n u e d l o b b yi n g eff o rt i n t h at res p ect.
8 5 9

Mr. o w n s We will lea v e i n a d diti o n t o t his st at e m e nt a n ot he r 

state m e nt pre par e d b y Mr. Ji m Bea n o n t he pa rti c ular pr o ble m s of 

t he S o ut h w est Pass t o t he m o ut h of t he Missis si p pi a n d i n d u str y ’s 

vie ws o n t h at.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

Mr. D o w n s . We a p p reciat e ver y m uc h t he ti me t o be here.

Se nat or D o m e ni c i . Mr. C h air ma n, I t hi n k it was me nti o ne d t he y 

were s u b m itti n g a bl ue b o o k.

Mr. D o w n s . Yes. We will le a ve t hi s wit h y o u. T his is t he i n d ustr y’s 

vie ws o n t he nati o n al dre d gi n g st u d y.

S e n at or D o m e ni c i . W he re y o u disa g ree wit h t hi s?

Mr. D o w n s . Ri g ht.

Se nat or D o m e ni ci . Asi de fr o m t he 25 t o 35 perce nt ret e nti o n of 

dr e d gi n g acti vit y, d o y o u ha v e j u st a c o u ple hi g hli g hts------

Mr. D o w n s . S o me hi g hli g hts I ha v e i n t he last pa ge of t his 

state m e nt.

O ne of t he hi g hli g hts is bas e d o n t he fi n di n g s a n d re p o rts of t he 

st u d y — we w o ul d rec o m m e n d o n dre d gi n g t o re vise t he basic c o de t o 

pr o vi d e t h at all dre d gi n g w or k be d o n e b y c o ntr act w h e ne ver rea s o n ­

a ble price s ca n be o btai ne d a n d t he w or k ca n be perf o r m e d i n a 

ti m el y ma n ne r.

Se nat or D o m e ni ci . If y o u ha ve s u m ma rize d t he m i n t he last ei g ht 

or ni ne it e ms, Mr. C h air ma n, I ca n rea d t he m. I t h o u g ht ma y b e t here 

were ot h ers.

Mr. D o w n s . N . Basicall y t h o se are ge ne rall y it.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

Mr. D o w n s . T h a n k y o u, sir.

[ Mr. D o w n s’ state m e nt a n d t he i n d u str y ’s vie ws o n t he nati o n al 

dre d gi n g st u d y f oll o ws:]

5 4 - 2 3 9 0 - 7 5 - 5 5
8 6 0

S T A T E M E N T O F J O H N A . D O W N S , P R E S I D E N T O F T H E 

N A T I O N A L A S S O C I A T I O N O F D R E D G I N G C O N T R A C T O R S

M r . C h a i r m a n , f o r t h e r e c o r d , m y n a m e i s J o h n A . D o w n s . I a m P r e s ­

i d e n t o f G r e a t L a k e s D r e d g e & D o c k C o m p a n y . I a m a l s o P r e s i d e n t o f t h e 

N a t i o n a l A s s o c i a t i o n o f D r e d g i n g C o n t r a c t o r s . I s h o u l d a l s o p o i n t o u t t h a t 

I a m a m e m b e r o f t h e A d v i s o r y C o m m i t t e e f o r t h e N a t i o n a l D r e d g i n g S t u d y .

T h e N a t i o n a l D r e d g i n g S t u d y i s t h e m o s t c o m p r e h e n s i v e s t u d y e v e r m a d e 

o f t h e f e d e r a l d r e d g i n g p r o g r a m a n d t h e d r e d g i n g p o l i c i e s a n d p r a c t i c e s o f 

t h e C o r p s o f E n g i n e e r s . T h e s t u d y p o i n t s o u t t h e u r g e n t n e e d f o r l e g i s l a ­

t i v e c h a n g e s i n t h e s t a t u t o r y b a s i s f o r a c c o m p l i s h m e n t o f t h e f e d e r a l d r e d g ­

i n g p r o g r a m a n d i n t h e i n t e r n a l d r e d g i n g p o l i c i e s o f t h e C o r p s .

O n e o f t h e m o s t s i g n i f i c a n t f i n d i n g s o f t h e S t u d y i s t h a t i n d u s t r y ' s 

s h a r e o f t h e d r e d g i n g a c t i v i t y a d m i n i s t e r e d b y t h e C o r p s o f E n g i n e e r s h a s 

d e c l i n e d s i g n i f i c a n t l y o v e r t h e p a s t t e n y e a r s . W h i l e a t t h e s a m e t i m e t h e 

a m o u n t o f d r e d g i n g w o r k d o n e b y g o v e r n m e n t d r e d g e s h a s s u b s t a n t i a l l y i n c r e a s e d . 

A s a r e s u l t , u t i l i z a t i o n o f i n d u s t r y e q u i p m e n t h a s n o t a p p r o a c h e d 5 0 % i n r e ­

c e n t y e a r s . I n f a c t , t o d a y i n m a n y a r e a s p r i v a t e i n d u s t r y ' s e q u i p m e n c i s 

p r o d u c t i v e l y e m p l o y e d f o r o n l y t h r e e t o s i x m o n t h s o n t h e a v e r a g e . O n t h e 

o t h e r h a n d , t h e C o r p s o f E n g i n e e r s e q u i p m e n t c o n t i n u e s t o e n j o y a h i g h l e v e l 

o f u t i l i z a t i o n .

T h e C o r p s p o l i c y o f m a x i m u m u t i l i z a t i o n o f i t s o w n d r e d g e s b e f o r e a d ­

v e r t i s i n g w o r k f o r c o m p e t i t i v e b i d s a n d t h e l a c k o f n e w w o r k h a s s e v e r e l y 

h u r t t h e d r e d g i n g i n d u s t r y i n t h e U n i t e d S t a t e s . M a n y d r e d g i n g c o m p a n i e s 

h a v e b e e n f o r c e d o u t o f b u s i n e s s , d u r i n g t h e p a s t t e n y e a r s , a n d t h e p r o f i t ­

a b i l i t y o f t h e i n d u s t r y h a s b e e n l o w .

T h e N a t i o n a l D r e d g i n g S t u d y r e c a i m e n d e d t h a t i n d u s t r y p a r t i c i p a t i o n 

i n t h e f e d e r a l d r e d g i n g p r o g r a m b e s u b s t a n t i a l l y i n c r e a s e d t o i n s u r e a h e a l t h y 

a n d v i a b l e d r e d g i n g i n d u s t r y . T h e s t u d y a l s o p r o p o s e d t h a t i n d u s t r y b e g i v e n 

t h e o p p o r t u n i t y t o t a k e o v e r a l a r g e s h a r e o f t h e p r o g r a m b y a l l o w i n g i n d u s t r y 

t o b i d o n w o r k d o n e b y C o r p s h o p p e r d r e d g e s . I n a d d i t i o n , t h e s t u d y r e c o m ­

m e n d e d c h a n g e s i n p o l i c y t o a s s u r e a p r o f i t a b l e d r e d g i n g i n d u s t r y e n d t o e n ­

c o u r a g e i n d u s t r y t o i n v e s t i n n e w e q u i p m e n t .

T h e A d v i s o r y C o i m i t t e e a l s o r e c o m m e n d e d t h a t t h e C o r p s d r e d g i n g f l e e t 

b e k e p t t o a m i n i m u m s i z e t o b e u s e d p r i m a r i l y f o r e m e r g e n c y w o r k a n d t o m e e t 

n a t i o n a l d e f e n s e r e q u i r e m e n t s . T h i s w i l l e l i m i n a t e t h e u n w a r r a n t e d c o m p e t i ­

t i o n b y t h e g o v e r n m e n t w i t h p r i v a t e i n d u s t r y a n d i n s u r e t h e g r o w t h o f t h e 

d r e d g i n g i n d u s t r y i n t h e U n i t e d S t a t e s . A s t h e c o n t r a c t o r f l e e t c a p a b i l i t y 

i n c r e a s e s a n d d e m o n s t r a t e s c o n c l u s i v e l y t h a t i t c a n d o t h e w o r k t h e g o v e r n ­

m e n t d r e d g e f l e e t s h o u l d b e r e d u c e d . N o r e p l a c e m e n t o r n e w c o n s t r u c t i o n o f 

g o v e r n m e n t d r e d g e s s h o u l d b e a u t h o r i z e d s i n c e i n d u s t r y i s w i l l i n g t o p r o v i d e 

w h a t e v e r c a p a b i l i t y i s r e q u i r e d .

T h e S t u d y p r o j e c t e d t h a t t h e m a g n i t u d e o f t h e g o v e r n m e n t p r o g r a m w i l l 

i n c r e a s e a p p r e c i a b l y o v e r t h e n e x t t e n y e a r s . I t f u r t h e r c o n c l u d e d t h a t t h e
8 6 1

i n c r e a s e i n w o r k c a n b e a b s o r b e d m o s t e c o n o m i c a l l y , i n t e r m s o f u n i t c o s t s 

a n d i n t e r m s o f c a p i t a l i n v e s t m e n t , b y a s s i g n i n g m u c h o f t h e i n c r e a s e t o 

i n d u s t r y f o r c o n t r a c t .

I a m h a p p y t o r e p o r t t o t h e C o m m i t t e e t h a t a s a r e s u l t o f r e c o m m e n ­

d a t i o n s o f t h e S t u d y i n d u s t r y i s i n p r o c e s s o f e x p a n d i n g i t s f l e e t o f h o p p e r 

d r e d g e s i n a d d i t i o n t o t w o e x i s t i n g i n d u s t r y d r e d g e s . M y o w n c o m p a n y i s a l ­

r e a d y p r o c e e d i n g w i t h c o n s t r u c t i o n o f t w o o c e a n - g o i n g h o p p e r d r e d g e s . T h i s 

f i r s t o n e i s n o w u n d e r c o n s t r u c t i o n a n d d e l i v e r y i s s c h e d u l e d f o r J u n e 1 9 7 6 . 

T h i s d r e d g e i s a m e d i u m - s i z e d r e d g e w i t h 3 , 7 0 0 c u b i c y a r d c a p a c i t y w h i c h i s 

a l m o s t d o u b l e t h e a n n u a l c a p a c i t y o f t h e d r e d g e " M A C K E N Z I E " . T h e s e c o n d 

d r e d g e w i l l b e a l a r g e h o p p e r d r e d g e w i t h 1 1 , 3 0 0 c u b i c y a r d c a p a c i t y . T h e 

d e s i g n o f t h i s d r e d g e h a s b e e n c o m p l e t e d a n d w e a r e a w a i t i n g b i d s f r o m s h i px - 

y a r d s w h i c h a r e d u e s h o r t l y . T h e c o n t r a c t f o r c o n s t r u c t i o n o f t h i s d r e d g e 

i s e x p e c t e d t o b e a w a r d e d b y A u g u s t 1 , 1 9 7 5 . I n a d d i t i o n , W i l l i a m s - M c W i l l i a m s 

C o . o f N e w O r l e a n s , L a . , i s p l a n n i n g t o b u i l d a 6 , 0 0 0 c u b i c y a r d c a p a c i t y h o p ­

p e r d r e d g e w h i c h h a s a p r o j e c t e d s c h e d u l e d d e l i v e r y d a t e f o r F . Y . 1 9 7 7 . T h e 

c o n s t r u c t i o n c o n t r a c t f o r t h i s d r e d g e w h i c h w i l l c o s t a n e s t i m a t e d § 1 7 m i l l i o n 

t o $ 2 0 m i l l i o n , w i l l b e a w a r d e d a r o u n d O c t o b e r o f t h i s y e a r .

T h e s e t h r e e n e w i n d u s t r y h o p p e r d r e d g e s r e p r e s e n t a 5 0 % i n c r e a s e t o 

t h e p r e s e n t t o t a l C o r p s o f E n g i n e e r s h o p p e r c a p a b i l i t y a n d w i l l p r o v i d e 8 0 % 

o f t h e a d d i t i o n a l c a p a b i l i t y w h i c h t h e S t u d y p r o j e c t e d w o u l d b e r e q u i r e d b y 

t h e y e a r 1 9 8 5 . I n a d d i t i o n , t h e r e a r e o t h e r d r e d g i n g f i r m s s u c h a s C . F .

B e a n C o r p o r a t i o n , o f N e w O r l e a n s , w h o h a v e t e n t a t i v e p l a n s f o r c o n s t r u c t i o n 

o f h o p p e r d r e d g e s w h o w i l l p r o c e e d w i t h c o n s t r u c t i o n i f t h e y a r e a s s u r e d 

t h a t t h e C o r p s p o l i c i e s w i l l p e r m i t e c o n o m i c a l u t i l i z a t i o n o f i n d u s t r y h o p ­

p e r d r e d g e s .

T h e s t u d y a l s o r e p o r t e d t h a t t h e C o r p s e x i s t i n g h o p p e r d r e d g e f l e e t 

i s b e i n g u s e d 5 0 % o f t h e t i m e t o p e r f o r m " i n s i d e " c h a n n e l w o r k w h i c h i n d u s t r y ' s 

p i p e l i n e a n d c l a m s h e l l d r e d g e s c a n p e r f o r m . T h e C h i e f o f E n g i n e e r s R e p o r t 

r e c o g n i z e s t h a t i f t h e " i n s i d e " w o r k i s d o n e b y i n d u s t r y , t h e p r o j e c t e d a d ­

d i t i o n a l h o p p e r c a p a b i l i t y n e e d e d b y 1 9 8 5 c a n b e r e d u c e d b y t h r e e o r f o u r 

d r e d g e s . T h i s m e a n s t h a t t h e t h r e e h o p p e r d r e d g e s b e i n g c o n s t r u c t e d b y i n ­

d u s t r y w i l l m e e t t h e p r o j e c t e d r e q u i r e m e n t s f o r t h e y e a r 1 9 8 5 a n d n o r e p l a c e ­

m e n t o r n e w c o n s t r u c t i o n o f g o v e r n m e n t d r e d g e s w i l l b e r e q u i r e d .

T h e f e d e r a l p o l i c y s h o u l d b e t o e n c o u r a g e i n d u s t r y b o p r o v i d e w h a t e v e r 

n e w d r e d g e c a p a b i l i t y m a y b e r e q u i r e d t o m e e t f u t u r e n e e d s a n d t h a t f e d e r a l 

f u n d s s h o u l d n o t b e u s e d t o a u t h o r i z e c o n s t r u c t i o n o r r e p l a c e m e n t o f d r e d g e s 

t o c o m p e t e w i t h p r i v a t e i n d u s t r y . N e w l e g i s l a t i v e g u i d a n c e i s r e q u i r e d t o 

i m p l e m e n t t h i s p o l i c y . T h e f u t u r e r o l e o f t h e C o r p s d r e d g i n g f l e e t s h o u l d b e 

l i m i t e d t o t w o o r t h r e e h o p p e r d r e d g e s n e c e s s a r y f o r p e r f o r m i n g e m e r g e n c y w o r k .

T h e N a t i o n a l D r e d g i n g S t u d y a l s o f o u n d t h a t i n d u s t r y ' s p r e s e n t h y d r a u ­

l i c d r e d g e f l e e t a n d i t s f l e e t o f c l a m s h e l l - b u c k e t d r e d g e s h a s t h e p r o v e n 

a b i l i t y t o m e e t p r i v a t e , f e d e r a l , a n d s e m e f o r e i g n d r e d g i n g d e m a n d s . T h e S t u d y 

c o n c l u d e d t h a t i n d u s t r y h a s s u f f i c i e n t c a p a c i t y t o h a n d l e t h e e n t i r e g o v e r n m e n t 

a n d p r i v a t e w o r k l o a d i n t h e s e c a t e g o r i e s f o r t h e n e x t t e n y e a r s .

- 2 -
8 6 2

T h e S t u d y f u r t h e r c o n c l u d e d t h a t t h e e x i s t i n g s t a t u t o r y a u t h o r i t y 

g r a n t e d t o t h e C o r p s o f E n g i n e e r s f o r p r o s e c u t i o n o f p u b l i c w o r k s o n r i v e r s 

a n d h a r b o r s i s s o b r o a d a n d d i s c r e t i o n a r y t h a t t h e C o r p s c a n r e a l l y d o a l l 

o f t h e d r e d g i n g w o r k w i t h g o v e r n m e n t p l a n t i f i t d e s i r e s . I t i s c r i t i c a l 

t h a t a p p r o p r i a t e c o n t r o l s b e i m p o s e d o n t h i s a u t h o r i t y .

B a s e d o n t h e f i n d i n g a n d r e p o r t s o f t h e S t u d y t h e d r e d g i n g i n d u s t r y 

r e s p e c t f u l l y r e c c r m e n d s t h e f o l l o w i n g s t a t u t o r y a n d p o l i c y c h a n g e s b e m a d e :

1 . R e v i s e 3 3 U S C § 6 2 2 t o p r o v i d e f o r a l l d r e d g i n g w o r k t o b e 

d o n e b y c o n t r a c t w h e n e v e r r e a s o n a b l e p r i c e s c a n b e o b t a i n e d 

a n d t h e w o r k c a n b e p e r f o r m e d b y c o n t r a c t i n a t i m e l y m a n ­

n e r .

2 . R e v i s e 3 3 U S C § 6 2 4 t o p r o v i d e f o r t h e u s e o f w e l l - e q u i p p e d 

c o n t r a c t o r c o s t e s t i m a t e s i n l i e u o f e s t i m a t e s b a s e d o n t h e 

u s e o f G o v e r n m e n t p l a n t . I f h i r e d l a b o r e s t i m a t e s a r e t o 

b e c o n t i n u e d t o b e u s e d u n d e r 3 3 U S C § 6 2 4 t h e n t h i s s e c t i o n 

s h o u l d b e r e v i s e d t o i n c l u d e c o n s i d e r a t i o n o f n o n - c o m p a r a b l e 

c o s t s a n d c i r c u m s t a n c e s , a n d p r o v i d e f o r i n c l u s i o n o f a p l a n t 

r e p l a c e m e n t f a c t o r .

3 . R e v i s e 3 3 U S C § 6 2 2 t o p r o v i d e f o r t h e m a x i m u m u t i l i z a t i o n o f 

i n d u s t r y c a p a b i l i t y b e f o r e u s i n g o f g o v e r n m e n t d r e d g e s t o p e r ­

f o r m r i v e r a n d h a r b o r w o r k .

4 . R e v i s e 3 3 U S C § 5 7 6 , w h i c h e s t a b l i s h e s a r e v o l v i n g f u n d t o 

p r o v i d e f u n d s f o r t h e a c q u i s i t i o n o f n e w C o r p s d r e d g e s , s o 

t h a t s u c h n e w p l a n t c a n n o t b e c o n s t r u c t e d o r a u t h o r i z e d w i t h ­

o u t t h e a p p r o v a l o f t h i s C o m m i t t e e .

5 . T h e G e n e r a l A c c o u n t i n g O f f i c e b e d e s i g n a t e d t o r e v i e w c o n ­

t r a c t o r p r o t e s t o f g o v e r n m e n t c o s t e s t i m a t e s a s t h e y d o f o r 

b i d p r o t e s t s .

6 . P r o v i s i o n b e m a d e t o p r o v i d e f o r a c c e l l e r a t e d d e p r e c i a t i o n

t o o f f e r a n i n c e n t i v e f o r i n d u s t r y t o c o n s t r u c t n e w e q u i p m e n t .

I a m a l s o s u b m i t t i n g t o t h e C o m m i t t e e a b l u e b o o k w h i c h c o n t a i n s i n d u s ­

t r y ' s c o m m e n t s o n t h e r e p o r t o f t h e C h i e f o f E n g i n e e r s o n t h e N a t i o n a l D r e d g ­

i n g S t u d y .

T h i s c o n c l u d e s m y s t a t e m e n t . I a p p r e c i a t e v e r y m u c h t h e o p p o r t u n i t y 

t o a p p e a r b e f o r e t h e C a r m i t t e e t o d a y . T h a n k y o u .

- 3 -
8 6 3

T h e N ati o n al Ass o ci ati o n of

Dr e d gi n g C o ntr a ct ors

I n d ustr y's C o m me nt s o n t he Re p ort of t he C hief of

E n gi nee rs o n t he N ati o n al Dre d gi n g St u d y

A pril 1 9 7 5
8 6 4

I n d u s t r y ' s C e m e n t s o n t h e R e p o r t 

o f t h e C h i e f o f E n g i n e e r s o n t h e 

N a t i o n a l D r e d g i n g S t u d y

S U M M A R Y A N A L Y S I S O F T H E P R I N C I P A L I S S U E S

I . T h e D e c i s i o n A s t o W h e t h e r o r N o t t o A d v e r t i s e

1 . A D L V i e w

T h e C o r p s S u i m a r y f a i l s t o i n c l u d e t h e f o l l o w i n g k e y f i n d i n g s 

m a d e b y A D L :

a . A t p r e s e n t t h e m a j o r i t y o f w o r k d o n e b y t h e C o r p s i s a s ­

s i g n e d d i r e c t l y t o h i r e d l a b o r c r e w s w i t h o u t a d v e r t i s e m e n t 

[ A D L P a r t I I I , p . 3 1 ] .

b . T h e c r i t e r i o n o f f i r s t o r d e r i m p o r t a n c e i n t h e d e c i s i o n 

p r o c e s s , a s t o w h e t h e r o r n o t t o a d v e r t i s e , i s t h e a v a i l ­

a b i l i t y o f g o v e r n m e n t p l a n t . O t h e r f a c t o r s a r e o f s e c o n d - 

o r d e r i m p o r t a n c e [ A D L P a r t I I I , p . 3 3 ] .

c . A t t h e d i s t r i c t o p e r a t i n g l e v e l , w h e r e t h e a c t u a l d e c i s i o n s 

a r e m a d e , t h e r e i s a d e d i c a t i o n t o u t i l i z a t i o n o f g o v e r n ­

m e n t p i p e l i n e , d u s t p a n , s i d e c a s t e r , a n d d i p p e r d r e d g e s s i m i l a r 

t o t h a t f o r h o p p e r d r e d g e s r a t h e r t h a n p u t t l i e w o r k o u t f o r 

c o m p e t i t i v e b i d [ A D L P a r t I I I , p . 3 3 ] .

d . M a x i m u m u t i l i z a t i o n o f g o v e r n m e n t d r e d g e s i s a p r i n c i p a l 

C o r p s o b j e c t i v e . T h u s , i t i s t h e d e c i s i o n s w i t h r e g a r d t o 

t h e g o v e r n m e n t ' s c a p a c i t y w h i c h f u n d a m e n t a l l y d e t e r m i n e s t h e 

d i v i s i o n o f w o r k b e t w e e n t h e C o r p s a n d i n d u s t r y [ A D L P a r t I I I , 

p . 9 7 ] .

e . T h e i n t e n t o f C o n g r e s s i n e n a c t i n g 3 3 U S C 6 2 4 w a s t o i m p o s e 

a 2 5 % l i m i t o n p r o f i t s t o e l i m i n a t e e x c e s s p r o f i t s , n o c t o 

s p o n s o r a n a b s o l u t e g o v e r n m e n t i n d u s t r y c o s t c a p a r i s o n . I t 

w o u l d s e e m i l l - a d v i s e d t o i n s i s t t h a t o n l y h i r e d l a b o r e s t i ­

m a t e s b e p r e p a r e d . T h e r e i s a m p l e r e a s o n t o r e v i s e t h e l a n g ­

u a g e o f S e c t i o n 6 2 4 t o p r o v i d e f o r u s e o f t h e w e l l - e q u i p p e d 

c o n t r a c t o r m e t h o d o f e s t i m a t i n g s i n c e p r e s e n t C o r p s p r a c t i c e s 

d o c o n t r a v e n e t h e l i t e r a l l a n g u a g e o f t h e s t a t u t e [ A D L P a r t 

I I I , p p . 2 8 - 2 9 ] .

f . T h e 2 5 % d i f f e r e n t i a l p r o v i d e d i n 3 3 U S C 6 2 4 w o u l d s e e m t o b e 

t o o l e w i n t o d a y s e n v i r o n m e n t g i v e n t h e i n t e n t o f C o n g r e s s a t 

t h e t i m e S e c t i o n 6 2 4 w a s e n a c t e d i n t o l a w [ A D L P a r t I I I , p . 2 9 ] .
8 6 5

g . W h i l e C o n g r e s s h a s e n c o u r a g e d t h e u s e o f p r i v a t e i n d u s t r y 

e q u i p m e n t , i t i s s t i l l u p t o t h e C o r p s o f E n g i n e e r s t o d e ­

t e r m i n e i f i n d u s t r y " h a s t h e c a p a b i l i t y t o p e r f o r m t h e w o r k , " 

w h e t h e r " r e a s o n a b l e p r i c e s c a n b e o b t a i n e d , " a n d w h e r e " e m e r ­

g e n c y a n d o t h e r c i r c u m s t a n c e s m a k e c o n t r a c t i n g w i t h p r i v a t e 

c o n t r a c t o r s i m p r a c t i c a b l e . " T h u s , t h e C o r p s c o n t i n u e s t o 

e x e r c i s e b r o a d d i s c r e t i o n a r y p o w e r s i n a l l o c a t i n g w o r k p r o ­

j e c t s [ A D L P a r t I I I , p . 3 0 ] .

T h e C o r p s S u m m a r y d o e s n o t a c c u r a t e l y r e f l e c t t h e t o t a l A D L v i e w :

a . A D L c o n c l u d e d t h a t g i v e n t h e b r o a d a u t h o r i t y g r a n t e d t o t h e 

C o r p s i t i s d i f f i c u l t t o a n t i c i p a t e a n y c o n f l i c t s i n t h e C o r p s 

p r a c t i c e s w i t h t h e a r t i c l e s o f l a w u n d e r w h i c h C o n g r e s s g r a n t e d 

t h e C o r p s a u t h o r i t y o v e r p r o s e c u t i o n o f p u b l i c w o r k s o n r i v e r s 

a n d h a r b o r s [ A D L P a r t I I I , p . 4 6 ] .

b . A D L f o u n d t h a t u n d e r p r e s e n t C o r p s p r a c t i c e s a h i g h l e v e l o f 

u t i l i z a t i o n o f g o v e r n m e n t h o p p e r d r e d g e s i s a s s u r e d . I n a d d i ­

t i o n , A D L c o n c l u d e d t h a t t h e g r e a t e s t p r e s s u r e f o r m a x i m u m u t i l ­

i z a t i o n i s g e n e r a t e d b y e m p l o y e e s o f t h e C o r p s b o t h c i v i l i a n a n d 

m i l i t a r y . T h e r e f e r e n c e t o e c o n o m i c s r e l a t e s b o t h e c o s t f o r 

l a y u p o f a h o p p e r d r e d g e w h e n n o t i n o p e r a t i o n [ A D L P a r t I I I ,

p . 4 2 ] .

c . T h e c r i t i c a l d e c i s i o n r e g a r d i n g d i v i s i o n o f w o r k i s w h e t h e r t o 

b u i l d a n a d d i t i o n a l d r e d g e , r e p l a c e a d r e d g e o r r e t i r e a d r e d g e 

s i n c e t h e g o v e r n m e n t w i l l f u l l y u t i l i z e i t s h o p p e r d r e d g e s [ A D L 

P a r t I I I , p . 4 7 ] .

d . C o s t e s i m a t e s a r e s e l d o m m a d e a s a b a s i s f o r d e t e r m i n i n g w h e t h e r 

o r n o t w o r k s h o u l d b e a d v e r t i s e d o r a s s i g n e d t o g o v e r n m e n t p l a n t 

a n d r e q u i r i n g a g r e a t e r u s e o f e x p l i c i t c o s t e s t i m a t e s w o u l d p r o b ­

a b l y n o t b e p r o d u c t i v e i f h i g h l e v e l u t i l i z a t i o n o f h o p p e r d r e d g e s 

i s t o c o n t i n u e [ A D L P a r t I I I , p . 4 7 ] .

2 . C c n n i t t e e V i e w

T h e C o r p s S n r m a r y f a i l s t o i n c l u d e t h e f o l l o w i n g k e y f i n d i n g s m a d e 

b y t h e A d v i s o r y C c n n i t t e e :

a . E x p r e s s e d c o n c e r n o v e r t h e f a c t t h a t t h e A D L S t u d y r e p o r t e d i n ­

s t a n c e s w h e r e t h e d e c i s i o n b y t h e C o r p s a s t o w h e t h e r o r n o t t o 

a d v e r t i s e w o r k w a s m a d e a l m o s t e n t i r e l y o n t h e b a s i s o f a n i n t r a - 

C o r p s a s s u m p t i o n t h a t c o n t r a c t o r c o s t s w o u l d b e s u b s t a n t i a l l y 

h i g h e r [ A C R e p . p . 1 1 - 1 2 ] .

- 2 -
8 6 6

b . R e c o r r m e n d e d a p p l i c a t i o n o f p r o c e d u r e s t o i n s u r e t h a t i n ­

d u s t r y w i l l b e a l l o c a t e d a l l o f t h e w o r k t h a t t h e y c a n 

e c o n o m i c a l l y p e r f o r m , t h a t F e d e r a l i n v e s t m e n t i n g o v e r n m e n t 

p l a n t w i l l b e m i n i m i z e d a n d a v i a b l e d r e d g i n g i n d u s t r y w i l l 

b e a s s u r e d [ A C R e p . p . I I I - 4 ] .

c . D i v i s i o n o f w o r k b e t w e e n t h e C o r p s a n d i n d u s t r y i s f u n d a m e n t ­

a l l y d e t e r m i n e d b y t h e C o r p s p o l i c y w i t h r e g a r d t o m a x i m u m 

u t i l i z a t i o n o f i t s d r e d g e s . G o v e r n m e n t h o p p e r d r e d g e s a r e 

f u l l y u t i l i z e d e v e n i f s a n e o f t h e j o b s m a y b e m o r e a p p r o p r i a t e 

f o r c o n t r a c t o r p l a n t . A t t h e p r e s e n t t i m e , t h e m a j o r i t y o f t h e 

w o r k d o n e b y g o v e r n m e n t p l a n t i s a s s i g n e d d i r e c t l y w i t h o u t a d ­

v e r t i s i n g [ £ £ R e p . p . I I I — 9 ] .

d . I t i s e x t r e m e l y i m p o r t a n t t o t h e G o v e r n m e n t t h a t a d e q u a t e p r o ­

f i t s b e e a r n e d b y i n d u s t r y t o i n s u r e c o n t i n u e d i n v e s t m e n t i n 

m o d e m e q u i p m e n t a n d t h a t i n d u s t r y b e e n c o u r a g e d t o d e v e l o p 

i n n o v a t i v e p r o c e d u r e s a n d i n c r e a s e e f f i c i e n c y [ A C R e p . p . I I I - 1 0 ] .

e . D r e d g i n g w o r k s h o u l d b e p u t o u t f o r c o m p e t i t i v e b i d w h e n e v e r i n ­

d u s t r y h a s t h e c a p a b i l i t y t o d o t h e w o r k i n a t i m e l y m a n n e r a n d 

r e a s o n a b l e p r i c e s c a n b e o b t a i n e d [ A C R e p . p . I I I - 1 0 ] .

3 . C h i e f o f E n g i n e e r s V i e w

I n d u s t r y ' s C o m m e n t s :

a . T h e g e n e r a l p r o c e d u r e r e c c n m e n d e d b y t h e A d v i s o r y C a r m i t t e e f o r 

p r e p a r i n g e s t i m a t e s o f c o s t s b o t h o n " w e l l - e q u i p p e d c o n t r a c t o r " 

a n d " h i r e d l a b o r " e s t i m a t e s w a s t o p r o v i d e a p r e c i s e a n d u n i f o r m 

m e t h o d t o d e t e r m i n e w h e t h e r i n d u s t r y c a n b e c o m p e t i t i v e o n w o r k , 

w h i c h t h e C o r p s h a s d o n e i n t h e p a s t w i t h g o v e r n m e n t p l a n t , i n 

m a k i n g t h e d e c i s i o n a s t o w h e t h e r o r n o t t o a d v e r t i s e w o r k [ A C 

R e p . p p . I I I - 1 0 , I I I - l l ] . T h i s p r o c e d u r e w a s d e v e l o p e d t o a v o i d 

s e r i o u s a d m i n i s t r a t i v e a n d m a n a g e m e n t p r o b l e m s t h a t c o u l d d e l a y 

t i m e l y e x e c u t i o n o f t h e w o r k i f a l l w o r k w h i c h t h e C o r p s d o e s 

w i t h i t s o w n p l a n t w a s p u t o u t f o r c o m p e t i t i v e b i d .

b . T h e " t e s t i n g t h e m a r k e t " p r o g r a m p r o p o s e d b y t h e C h i e f o f E n g i n e e r s 

f o r a f o u r - y e a r p e r i o d d o e s n o t m e e t t h e r e c c n m e n d a t i o n s o f A D L 

a n d t h e A d v i s o r y C o r m i t t e e b o i n s u r e t h a t i n d u s t r y h a s a n o p p o r t u n ­

i t y t o b i d o n a l l w o r k w h i c h i t h a s t h e c a p a b i l i t y o f d o i n g w h e r e 

r e a s o n a b l e p r i c e s c a n b e o b t a i n e d . T o t e s t t h e m a r k e t o n a s u b ­

j e c t i v e b a s i s f o r a f o u r - y e a r p e r i o d o f t i m e w o u l d n o t e n c o u r a g e 

i n d u s t r y t o b u i l d n e w e q u i p m e n t a n d d e v e l o p i n n o v a t i v e d r e d g i n g 

p r o c e d u r e s s i n c e i n d u s t r y w o u l d n o t b e a s s u r e d a n o p p o r t u n i t y t o 

c c n p e t i t i v e l y b i d o n a c o n t i n u i n g b a s i s o n a l l w o r k w h i c h i t h a s 

t h e c a p a b i l i t y b o p e r f o r m c c n p e t i t i v e l y .

- 3 -
8 6 7

4 . I n d u s t r y ' s V i e w

a . P r o p o s e s t h a t 3 3 U S C 6 2 2 b e r e v i s e d t o p r o v i d e f o r a l l 

r i v e r a n d h a r b o r i n p r o v e m e n t w o r k t o b e d o n e b y c o n t r a c t 

w h e n e v e r r e a s o n a b l e p r i c e s c a n b e o b t a i n e d a n d t h e w o r k 

c a n b e p e r f o r m e d b y c o n t r a c t i n a t i m e l y m a n n e r .

b . P r o p o s e s t h a t 3 3 U S C 6 2 4 b e r e v i s e d t o p r o v i d e f o r t h e u s e 

o f w e l l - e q u i p p e d c o n t r a c t o r c o s t e s t i m a t e s i n l i e u o f e s ­

t i m a t e s b a s e d o n t h e u s e o f G o v e r n m e n t p l a n t . I f c o s t e s ­

t i m a t e s b a s e d o n t h e u s e o f G o v e r n m e n t p l a n t a r e t o b e u s e d 

a s a b a s i s f o r d e t e r m i n i n g w h e t h e r t o h a v e t h e w o r k d o n e b y 

c o n t r a c t t h a n , a s r e c c m e n d e d b y A D L a n d t h e A d v i s o r y C o m ­

m i t t e e , S e c t i o n 6 2 4 n e e d s t o b e r e v i s e d t o p r o v i d e f o r i n ­

c l u s i o n i n t h e e s t i m a t e o f c e r t a i n n o n - c o n p a r a b l e c o s t f a c ­

t o r s t o p r o v i d e a f a i r b a s i s f o r c o m p a r i s o n o f c o s t s .

I I . S i z e o f t h e G o v e r n m e n t D r e d g e F l e e t

1 . A D L V i e w

T h e C o r p s S u n m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A D L v i e w :

a . T h e m a g n i t u d e o f t h e g o v e r n m e n t p r o g r a m i s p r o j e c t e d t o i n c r e a s e 

a p p r e c i a b l y o v e r t h e n e x t t e n y e a r s . T h e C o r p s p l a n t a t t h i s 

t i m e i s o p e r a t i n g a t h i g h u t i l i z a t i o n ; t h e i n d u s t r y p l a n t i s o p ­

e r a t i n g a t l e w u t i l i z a t i o n . T h e i n c r e a s e w i t h t i m e c a n b e a b ­

s o r b e d m o s t e c o n o m i c a l l y , i n t e r m s o f u n i t c o s t s a n d i n t e r m s 

o f c a p i t a l i n v e s t m e n t , b y a s s i g n i n g m u c h o f t h e i n c r e a s e t o i n ­

d u s t r y f o r c o n t r a c t [ A D L P a r t I I , p . V I I I - 2 5 ] .

b . I n r e c e n t y e a r s t h e C o r p s h a s p e r f o r m e d a b o u t 3 5 % o f t h e t o t a l 

d r e d g i n g d o l l a r w o r k l o a d w i t h i t s o w n e q u i p m e n t a n d h a s c o n t r a c t e d 

f o r 6 5 % . I n c u b i c y a r d a g e , t h e C o r p s h a s p e r f o r m e d a b o u t 4 6 % o f 

t h e w o r k [ A D L P a r t I I , p . V I I I - 1 ] .

c . C o n c l u d e s t h a t a t 7 5 % i n d u s t r y a n d 2 5 % C o r p s d i v i s i o n r e p r e s e n t s 

t h e m o s t f a v o r a b l e d i v i s i o n b a s e d o n e c o n o m i c c o n s i d e r a t i o n s [ A D L 

P a r t I I , p . V I I I - 1 5 ] .

d . C o n c l u d e s i t w o u l d p r o b a b l y c o s t b e t w e e n 2 0 % a n d 2 4 % m o r e f o r i n ­

d u s t r y t o d o 1 0 0 % o f t h e w o r k . H o w e v e r , A D L p o i n t e d o u t t h a t a n u n - 

b e r o f c o n s i d e r a t i o n s a r e i m p o r t a n t t o t h e i n t e r p r e t a t i o n o f t h i s 

c o n c l u s i o n [ A D L P a r t I I , p p . V I I I - 1 0 , V I I I - 1 4 ] . A m o n g t h e s e c o n s i d ­

e r a t i o n s a r e t h e f a c t t h a t ( 1 ) t h e g o v e r n m e n t c o s t s f o r C o r p s w o r k 

h a v e n o t b e e n a d j u s t e d f o r t h e 6 % t o 1 1 % u n d e r s t a t e m e n t o f n o n - 

c o n p a r a b l e c o s t s P \D L c o n s i d e r e d t h i s t o b e a n i n h e r e n t c o s t a d v a n ­

t a g e t o t h e G o v e r n m e n t w h i c h m u s t b e r e c o g n i z e d i n a d i r e c t c o m ­

p a r i s o n o f t o t a l c o s t s o r u n i t c o s t s ) [ A D L P a r t I I , p . V I I I - 1 0 ] ;

- 4 -
8 6 8

) C o r p s e s t i m a t e s i n c l u d e i n s p e c t i o n a n d s u r v e y c h a r g e s 

o f 6 % f o r i n d u s t r y a n d h a l f o f t h a t f o r C o r p s w o r k ; ( 3 ) 

c h a r g e s f o r e n g i n e e r i n g a n d d e s i g n , b o r n e b y t h e C o r p s , 

a m o u n t t o 3 % o n t h e a v e r a g e f o r h i r e d l a b o r ( C o r p s ) a c ­

c o m p l i s h e d w a r k a n d a b o u t 8 % o n t h e a v e r a g e c o n t r a c t ( i n ­

d u s t r y ) w o r k ; a n d ( 4 ) A D L c a t e g o r i z a t i o n o f f u t u r e w o r k ­

l o a d i n t o t y p e s o f e q u i p m e n t i s b a s e d u p o n C o r p s p r o j e c ­

t i o n s [ A D L P a r t I I , p p . V I I I - 1 0 , V I I I - 1 1 ] .

e . I n a d d i t i o n , C o r p s e s t i m a t e s f o r d o i n g w o r k b y C o r p s e q u i p ­

m e n t m a y b e h i g h o r l o w a n d i s n o t s u b j e c t b o t h e p r o f i t / 

l o s s d i s c i p l i n e w h i c h m u s t b e f a c e d b y c o n t r a c t o r s w h o b i d 

o n a f i x e d - p r i c e b a s i s [ A D L P a r t I I I , p . 1 2 8 ] . O n t h e o t h e r 

h a n d , t h e d r e d g i n g i n d u s t r y i s s u b j e c t t o c o m p e t i t i v e b i d ­

d i n g , t o t a x e s , a n d t o v a r i o u s l a w s a n d r e g u l a t i o n s w h i c h 

a f f e c t i t s o p e r a t i o n s a n d c o s t s . U n d e r t h e c i r c u m s t a n c e s , 

c o s t c c r p a r i s o n s m u s t b e m a d e w i t h g r e a t c a u t i o n a s d a t a o n 

C o r p s a n d i n d u s t r y o p e r a t i o n s a r e n o t d i r e c t l y c o m p a r a b l e 

[ A D L P a r t I I , p p . V I I I - 1 , V I I I - 2 ] .

f . T h e p r e s e n t i n d u s t r y c a p a c i t y i s c o m p o s e d p r i n c i p a l l y o f h y ­

d r a u l i c p i p e l i n e d r e d g e s , w i t h c l a m s h e l l s a n d d i p p e r s m a k i n g 

u p t h e b a l a n c e . T h i s c a p a c i t y i s s u f f i c i e n t t o h a n d l e t h e 

e n t i r e g o v e r n m e n t a n d p r i v a t e w o r k l o a d i n t h e s e c a t e g o r i e s 

w i t h i n t h e n e x t t e n y e a r s ( A D L P a r t I I , p . V I I I - 2 4 ] .

g . T h e C o r p s w o u l d h a v e t o i n v e s t $ 5 7 6 . 5 m i l l i o n i n n e w e q u i p m e n t 

i n o r d e r t o d o 1 0 0 % o f t h e w o r k i n 1 9 7 9 . C o n v e r s e l y , t h e i n ­

d u s t r y h a s n o l a r g e i n v e s t m e n t t o m a k e u n t i l t h e i r s h a r e c h a n g e s 

f r o m 7 0 % b o 1 0 0 % w h e n t h e y w o u l d h a v e t o a d d h o p p e r a n d d u s t p a n 

d r e d g e s i n o r d e r t o d o a l l t h e w o r k . A D L c o n c l u d e d t h a t i n d u s ­

t r y w o u l d h a v e t o i n v e s t $ 4 0 3 . 1 m i l l i o n i n n e w e q u i p m e n t i f t h e y 

w e r e t o d o 1 0 0 % o f t h e p r o j e c t e d l e v e l o f w o r k i n 1 9 8 3 [ A D L P a r t 

I I , p . V I I I - 1 5 ] .

h . T h e r e l a t i v e l y s m a l l d i v i s i o n s o f w o r k p r e s e n t l y c o n t r a c t e d 

o u t b y t h e C o r p s ( b o t h i n a b s o l u t e s i z e a n d i n d u r a t i o n ) d o 

n o t p e r m i t o p t i m u m u t i l i z a t i o n o f p l a n t n o r d o t h e y e n c o u r a g e 

f r u i t f u l d e v e l o p m e n t o f t h e i n d u s t r y s e c t o r [ A D L P a r t I I , p . 

V I I I - 3 ] .

i . A D L c o n c l u d e s t h a t i n c r e a s e d i n d u s t r y p a r t i c i p a t i o n i n t h e 

n a t i o n a l d r e d g i n g p r o g r a m w i l l p r o v i d e a n o p p o r t u n i t y f o r i n ­

d u s t r y t o a c h i e v e a d e q u a t e f i n a n c i a l r e t u r n s , r e p l a c e o l d e q u ip > - 

m e n t a n d a d d n e w k i n d s o f e q u i p m e n t . W i t h i n c r e a s e d f i n a n c i a l 

r e s o u r c e s i n d u s t r y w i l l b e a b l e t o p r o v i d e s e m e o f t h e n e w h o p ­

p e r d r e d g e c a p a b i l i t y r e q u i r e d a n d t o c o m p e t e f o r a l a r g e r s h a r e 

o f t h e p r o g r a m [ A D L P a r t I I , p . V I I I - 2 6 ] .

j . A s i n d u s t r y a c q u i r e s s e l f - p o w e r e d h o p p e r d r e d g e s c o n t r a c t o r s 

s h o u l d b e p e r m i t t e d t o b i d o n h o p p e r w o r k [ A D L P a r t I I , p .

- 5 -
8 6 9

V I I I - 2 4 ] . P l a n s b y i n d u s t r y f o r o n e o c e a n - g o i n g 9 7 0 0 c u b i c 

y a r d h o p p e r d r e d g e h a v e a l r e a d y b e e n a n n o u n c e d [ A D L P a r t I I , 

p . V I I I - 2 4 ) . ( I n d u s t r y a l s o r e c e n t l y a n n o u n c e d p l a n s t o b u i l d 

a s e c o n d h o p p e r d r e d g e w i t h a c a p a c i t y o f 3 8 0 0 c u b i c y a r d s ] . 

E f f i c i e n t u s e o f a n i n d u s t r y h o p p e r f l e e t r e q u i r e s t h e h i g h e s t 

u t i l i z a t i o n p o s s i b l e a n d s u c h u t i l i z a t i o n i s a c h i e v a b l e o n l y 

b y a s c h e d u l i n g a n d p r o g r a i r m i n g m e c h a n i s n d i f f i c u l t t o a c h i e v e 

u n d e r c u r r e n t b i d d i n g p r a c t i c e s a n d p r o c e d u r e s [ A D L P a r t I I , p . 

V I I I - 1 1 ] .

2 . C a r m i t t e e V i e w

T h e C o r p s S u m m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A d v i s o r y 

C a r m i t t e e v i e w :

a . A c c e p t e d A D L c o n c l u s i o n o f a 7 5 % - 2 5 % d i v i s i o n o f w o r k b e t w e e n 

t h e i n d u s t r y a n d t h e C o r p s s u b j e c t t o t h e p r o v i s i o n t h a t i n d u s ­

t r y b e g i v e n t h e o p p o r t u n i t y t o c o m p e t e f o r a g r e a t e r s h a r e o f 

t h e F e d e r a l d r e d g i n g p r o g r a m w h e n e v e r i n d u s t r y c a n d e m o n s t r a t e 

t h a t i t h a s t h e c a p a b i l i t y o f d o i n g t h e w o r k a t a r e a s o n a b l e 

c o s t [ A C R e p . p . I l l — 4 ] .

b . T h e C a r m i t t e e e x p r e s s e d i t s d o u b t a s t o t h e v a l i d i t y o f A D L a s ­

s e s s m e n t t h a t o n e a d d i t i o n a l h o p p e r d r e d g e o f 3 , 0 0 0 c u b i c y a r d 

n o m i n a l s i z e w o u l d h a v e t o b e a d d e d t o t h e f l e e t e a c h y e a r f r o m 

1 9 7 5 t o 1 9 8 3 ( a t o t a l o f n i n e n e w h o p p e r d r e d g e s ) [ A C R e p . p . 

I I I - 5 ) .

c . C o n c l u d e s t h a t t h e g o v e r n m e n t d r e d g e f l e e t s h o u l d b e e s t a b l i s h e d 

a t a m i n i m u m , c o n s i d e r i n g e m e r g e n c y a n d n a t i o n a l d e f e n s e r e q u i r e ­

m e n t s p l u s t h e w o r k l o a d t h a t i t c a n e x e c u t e m o r e e c o n o m i c a l l y 

t h a n t h e i n d u s t r y ' s f l e e t a s d e m o n s t r a t e d b y e s t i m a t e s o r a c t u a l 

b i d c o m p a r i s o n s , a n d n o m o r e . A s c o n t r a c t o r f l e e t c a p a b i l i t y i n ­

c r e a s e s a n d d e m o n s t r a t e s c o n c l u s i v e l y t h a t i t c a n d o t h e w o r k 

t h e g o v e r n m e n t d r e d g e f l e e t s h o u l d b e r e d u c e d . I f i t i s a c t u a l l y 

a m i n i m u m f l e e t , a n d c a n n o t b e r e d u c e d , w o r k s h o u l d b e s e t a s i d e 

t o k e e p i t f u l l y o c c u p i e d [ A C R e p . p . I I I - 1 0 ] .

d . C o n c l u d e s t h a t t h e c u r r e n t G o v e r n m e n t f l e e t b e i m p r o v e d b e f o r e 

a u t h o r i z i n g r e p l a c e m e n t s o r a d d i t i o n s t o t h e e x i s t i n g f l e e t s o 

t h a t i n t h e c o u r s e o f t h e i m p r o v e m e n t p r o g r a m a m o r e d e f i n i t i v e 

b a s i s f o r a s s e s s m e n t o r t h e r e q u i r e m e n t s f o r a m i n i m u m f l e e t c a n 

b e a r r i v e d a t [ A C R e p . p p . I I I - 5 , I I I - 6 ] .

3 . C h i e f o f E n g i n e e r s V i e w

I n d u s t r y ' s G a r m e n t s :

a . A D L c o n c l u d e d t h a t a n y r e p l a c e m e n t o f o l d e q u i p m e n t o r a u g m e n t a ­

t i o n o f t h e h o p p e r f l e e t o n l y b e u n d e r t a k e n w i t h l o n g - r a n g e p l a n s 

i n m i n d c o n c e r n i n g t h e d i v i s i o n o f w o r k l o a d [ A D L P a r t I I , p p .

- 6 -
8 7 0

V I I I - 2 4 , V I I I - 2 5 ] • P l a n t e q u i p m e n t r e q u i r e m e n t s m u s t b e 

c o o r d i n a t e d b e t w e e n g o v e r n m e n t a n d i n d u s t r y [ A D L P a r t I I , 

p . V I I I - 2 6 1 .

b . T h e A d v i s o r y C a r m i t t e e c o n c l u d e d t h a t n o r e p l a c e m e n t ( i n ­

c l u d i n g t h e M A C K E N Z I E ) o r a d d i t i o n s s h o u l d b e m a d e t o t h e 

C o r p s f l e e t u n t i l t h e s i z e o f t h e m i n i m u m f l e e t r e q u i r e m e n t s 

a r e a s c e r t a i n e d b a s e d o n l i m i t i n g t h e w o r k o f t h e g o v e r n m e n t 

f l e e t t o e m e r g e n c y w o r k , r e q u i r e m e n t s o f n a t i o n a l d e f e n s e , 

a n d o n l y f o r s u c h o t h e r w o r k w h i c h i t c a n c l e a r l y b e e s t a b ­

l i s h e d o n a c c m p a r a b l e b a s i s t h a t i t c a n e x e c u t e t h e w o r k 

m o r e e c o n o m i c a l l y t h a n i n d u s t r y ( A C R e p . p p . I I I - 5 , I I I - 6 ,

I I I - 1 0 ] .

c . A D L f o u n d t h a t t h e r e i s n o n e e d f o r a d d i t i o n a l s i d e c a s t e r 

d r e d g e s , c u t t e r h e a d d r e d g e s , d i p p e r a n d c l a m s h e l l d r e d g e s

i n t h e C o r p s f l e e t ( A D L P a r t I I , p p . V I I - 2 2 , V I 1 - 2 4 , V I 1 - 2 6 ] .

T h e A d v i s o r y C a r m i t t e e f o u n d t h a t t h e p r e s e n t C o r p s s i d e c a s t e r 

f l e e t i s a d e q u a t e t o m e e t a n y a n t i c i p a t e d w o r k l o a d f o r t h e 

n e x t t e n y e a r s w i t h o u t r e p l a c e m e n t ( A C R e p . p . I l l — 6 ] . T h e 

C a r m i t t e e a l s o f o u n d t h a t t h e r e i s n o n e e d t o r e p l a c e C o r p s 

c u t t e r h e a d d r e d g e s s i n c e f o r t h e m o s t p a r t i n d u s t r y c a n d o 

t h i s w o r k ( A C R e p . p . I I I - 6 ] . I n a d d i t i o n , t h e A d v i s o r y 

C a r m i t t e e r e c a r m e n d e d t h a t t h e C o r p s p h a s e o u t i t s p r e s e n t 

d i p p e r a n d b u c k e t d r e d g e s a t a n e a r l y d a t e ( A C R e p . p . I I I - 8 ] .

4 . I n d u s t r y V i e w

a . C o n c u r s i n A D L a n d A d v i s o r y C a r m i t t e e r e c a r m e n d a t i o n s t h a t n o 

r e p l a c e m e n t o r n e w c o n s t r u c t i o n o f C o r p s h o p p e r d r e d g e s b e 

a u t h o r i z e d u n t i l ( 1 ) t h e c h a n g e s i n p l a n n e d d i v i s i o n o f w o r k 

a r e i m p l e m e n t e d a n d p l a n t e q u i p m e n t r e q u i r e m e n t s c o o r d i n a t e d 

b e t w e e n g o v e r n m e n t a n d i n d u s t r y , a n d ( 2 ) m i n i m u m s i z e o f t h e 

C o r p s f l e e t n e e d e d t o p e r f o r m i t s l i m i t e d p r i m a r y f u n c t i o n h a s 

b e e n d e t e r m i n e d . T h e l i m i t i n g o f C o r p s h o p p e r d r e d g e s t o " o u t ­

s i d e " w a r k p l u s o n l y s u c h " i n s i d e " w o r k a s i s n e e d e d t o k e e p t h e 

d r e d g e o c c u p i e d o n t h o s e d a y s w h e n w e a t h e r w i l l n o t p e r m i t t h e 

d r e d g e t o w a r k " o u t s i d e " , a s p r o p o s e d b y t h e C o r p s a t p a g e s 

2 2 - 2 3 o f i t s r e p o r t " w i l l a l s o o b v i a t e t h e n e c e s s i t y f o r c o n ­

s t r u c t i n g s e m e o f t h e n i n e a d d i t i o n a l n c m i n a l - s i z e h o p p e r d r e d g e s 

r e c a r m e n d e d b y A D L . " T h e f e d e r a l p o l i c y s h o u l d b e t o e n c o u r a g e 

i n d u s t r y t o p r o v i d e a n y n e w h o p p e r c a p a b i l i t y r e q u i r e d .

H I • O p e r a t i o n a l a n d R e p o r t i n g P r o c e d u r e s f o r D r e d g i n g b y C o n t r a c t o r a n d G o v e r n ­

m e n t P l a n t

1 . A D L V i e w

T h e C o r p s S u r m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A D L V i e w :

- 7 -
8 7 1

a . T h e r e i s n o q u e s t i o n t h a t i n m o s t s i t u a t i o n s s u r v e y a n d 

i n s p e c t i o n p r o c e d u r e s a r e a f f e c t e d b y w h e t h e r t h e v o r k 

i s p e r f o r m e d b y t h e C o r p s o r i n d u s t r y . T h e t e c h n i q u e s 

e n p l o y e d a r e t h e s a m e , b u t t h e a p p l i c a t i o n o f t h e s e t e c h ­

n i q u e s i s g e n e r a l l y d i f f e r e n t i n f r e q u e n c y a n d d e g r e e , 

d e p e n d i n g o n w h o i s d o i n g t h e v o r k [ A D L P a r t I I I , p . 1 3 1 ) .

b . C o n c l u d e s t h a t t h e C o r p s d o e s n o t o b l i g a t e i t s o p e r a t i n g 

p e r s o n n e l t o p e r f o r m u n d e r t h e s a m e o p e r a t i n g c o n d i t i o n s 

w h i c h i n d u s t r y m u s t c o n p l y i n t h a t t h e C o r p s a l l o w s i t s e l f 

g r e a t e r f l e x i b i l i t y i n s c h e d u l i n g i t s d r e d g e s i n p e r f o r m i n g 

w o r k [ A D L P a r t I I I , p . 1 3 2 ) . T i m e t a b l e s m a y b e s l i p p e d a n d 

g o v e r n m e n t d r e d g e s m a y b e p u l l e d o f f t h e j o b o r u s e d i n ­

t e r m i t t e n t l y [ A D L P a r t I I I , p . 1 3 3 ) .

c . T h e s e d i f f e r e n c e s i n t h e f l e x i b i l i t y o f t i m e t a b l e s a n d v o r k 

p e r f o r m a n c e s c h e d u l e s m a k e i t d i f f i c u l t t o o o n p a r e o n a o n e - 

t o - o n e b a s i s C o r p s c o s t p e r f o r m a n c e a g a i n s t c o n t r a c t o r c o s t 

p e r f o r m a n c e [ A D L P a r t I I I , p . 1 3 3 ) .

d . I n g e n e r a l , i n s p e c t i o n o f c o n t r a c t o r s i s m o r e s t r i n g e n t a n d 

t h e s u r v e y s f o r m e a s u r i n g p a y y a r d a g e a r e m o r e d e t a i l e d a n d 

m o r e t i m e l y [ A D L P a r t I I I , p . 1 3 3 ) . T h e u s e o f b i n y a r d a g e 

m e a s u r e m e n t f o r h o p p e r d r e d g e s i s o f q u e s t i o n a b l e a c c u r a c y 

[ A D L P a r t I I I , p . 1 3 4 ) .

e . B e c a u s e s u r v e y s o f C o r p s w o r k a r e o f t e n d e l a y e d f o r c o n s i d e r ­

a b l e p e r i o d s , t h e m e a s u r e m e n t o f y a r d a g e r e m o v e d i s i n h e r e n t l y 

l e s s a c c u r a t e f o r C o r p s y a r d a g e t h a n i t i s f o r c o n t r a c t o r y a r d ­

a g e [ A D L P a r t I I I , p . 1 3 6 ) .

f . C e r t a i n l y , a m a j o r t r i p l i c a t i o n o f t h e c o n c l u s i o n s o f t h i s 

c h a p t e r i s t h a t t h e d i f f e r e n c e s i n t h e t i m e l i n e s s o f t h e s u r ­

v e y d a t a m a k e i t d i f f i c u l t t o c o m p a r e C o r p s d r e d g i n g c o s t s 

a g a i n s t t h o s e o f c o n t r a c t o r s u s i n g h i s t o r i c a l d a t a . T h i s f a c ­

t o r a l o n g w i t h o t h e r s , i n c l u d i n g n o n c c m p a r a b i l i t y o f c e r t a i n 

c o s t f a c t o r s a n d t h e e f f e c t s o f d i f f e r e n c e s i n i n s p e c t i o n a n d 

s u r v e y p r a c t i c e s , n e k e g e n e r a l ( p e r y a r d ) c o m p a r i s o n s o f C o r p s 

a n d i n d u s t r y d r e d g i n g c o s t s o f l i t t l e p r a c t i c a l v a l u e [ A D L 

P a r t I I I , p . 1 3 6 ) .

2 . C o m m i t t e e V i e w

T h e C o r p s S u m m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A d v i s o r y 

C c m n i t t e e v i e w :

a . C o n c l u d e s t h a t c o n s i d e r i n g t h e i n a c c u r a c i e s i n t h e m e a s u r e m e n t 

o f d r e d g e d v o l u m e s f o r h o p p e r d r e d g e s , a n d o t h e r C o r p s e q u i p m e n t , 

i t i s r e a d i l y a p p a r e n t t h a t c o s t f i g u r e s d e r i v e d t h e r e f r o m a r e 

l i k e w i s e i n a c c u r a t e . [ A C R e p . p . 1 1 - 4 ] .

- 8 -
8 7 2

b . C o n t r a c t d r e d g i n g c o s t s c o u l d n o t d i r e c t l y b e c o m p a r e d w i t h 

h i r e d l a b o r d r e d g i n g c o s t s , e v e n i f t h e y a r d a g e m e a s u r e m e n t s 

w e r e e x a c t l y c o m p a r a b l e b e c a u s e c o n t r a c t c o s t s i n c l u d e m a n y 

e l e m e n t s o f c o s t t o w h i c h g o v e r n m e n t d r e d g i n g j o b s a r e n o t 

s u b j e c t e d ; v i z p r o f i t , s t a t e a n d l o c a l t a x e s , p e r f o r m a n c e

a n d p a y m e n t b o n d s a n d m a n y o t h e r s i m i l a r i t e m s [ A C R e p . p . I I - 4 ] .

c. T h e r e a r e a l s o o p e r a t i n g d i f f e r e n c e s w h i c h c o n t r i b u t e t o t h e 

n o n - o c m p a r a b i l i t y o f c o s t f i g u r e s . T h e s e i n c l u d e g r e a t e r f l e x ­

i b i l i t y e n j o y e d b y t h e g o v e r n m e n t i n t h e s c h e d u l i n g o f i t s 

d r e d g e s , t h e f r e e d o m o n t h e p a r t o f t h e g o v e r n m e n t f r o m t h e 

p r o f i t / l o s s d i s c i p l i n e w h i c h m u s t b e f a c e d b y c o n t r a c t o r s , t h e 

p o l i c y o f f u l l u t i l i z a t i o n o f g o v e r n m e n t p l a n t a n d t h e f a c t t h a t 

t h e p r e d o m i n a n t p a r t o f g o v e r n m e n t p l a n t w o r k i s m a i n t e n a n c e 

w h e r e a s t h e l a r g e p a r t o f c o n t r a c t o r ' s w o r k m a y b e n e w w o r k

[ A C R e p . p . I I - 4 ] .

I V . E s t i m a t i n g P r o c e d u r e s

1 . A D L V i e w

T h e C o r p s S u n m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A D L v i e w : 

a . " W e l l - E q u i p p e d C o n t r a c t o r E s t i m a t e s "

( 1 ) T h e " w e l l - e q u i p p e d c o n t r a c t o r " m e t h o d o f e s t i m a t i n g i s 

u s e d b y t h e C o r p s f o r n e a r l y a l l o f t h e d r e d g i n g w o r k 

a c c c r p l i s h e d b y c o n t r a c t [ A D L P a r t I I I , p . 4 8 ] . T h e l a w 

s p e c i f i e s t h a t t h e l o w c o n t r a c t o r b i d m u s t b e w i t h i n 1 2 5 % 

o f t h e C o r p s e s t i m a t e t o b e e l i g i b l e f o r a w a r d [ A D L P a r t 

I I I , p . 4 9 ] .

( 2 ) E f f o r t s s h o u l d b e m a d e t o i n t r o d u c e m o r e c o n s i s t e n t e s ­

t i m a t i n g p r a c t i c e s , p a r t i c u l a r l y w i t h r e g a r d t o o v e r h e a d 

a l l o w a n c e [ A D L P a r t I I I p . 8 4 ] . M a r k e d v a r i a n c e s a l s o 

e x i s t w i t h r e g a r d t o w h e t h e r o r n o t i n t e r e s t e x p e n s e s a r e 

a l l o w e d a n d a s t o a n n u a l d e p r e c i a t i o n r a t e s a s s u m e d f o r 

c o n t r a c t o r e q u i p m e n t [ A D L P a r t I I I , p . 8 5 ] .

( 3 ) C o r p s e s t i m a t o r s c o n v e n t i o n a l l y p r e s u m e t h a t c o n t r a c t o r 

p l a n t i s u t i l i z e d e i g h t m o n t h s e a c h y e a r . I n f a c t , t o d a y 

i n m a n y a r e a s p r i v a t e i n d u s t r y ' s e q u i p m e n t i s p r o d u c t i v e l y 

e m p l o y e d f o r o n l y t h r e e t o s i x m o n t h s o n t h e a v e r a g e a n d

i t w o u l d s e e m d e s i r a b l e f o r t h e C o r p s p r o c e d u r e s t o r e f l e c t 

l e s s u n i f o r m i t y w i t h r e g a r d t o u t i l i z a t i o n a s s u r p t i o n s [ A D L 

P a r t I I I , p . 8 5 ] .

- 9 -
8 7 3

I t i s o b v i o u s t h a t e s t i m a t e s o f u s e f u l l i f e a n d

u t i l i z a t i o n w h i c h u n d e r s t a t e t h e a c t u a l e x p e r i e n c e s 

o f c o n t r a c t o r s a r e t o t h e i n d u s t r y ’ s b e n e f i t . I f a 

p o l i c y w e r e f o r m u l a t e d t o s t i m u l a t e i n v e s t m e n t i n 

n e w d r e d g i n g e q u i p m e n t , o n e a p p r o a c h f o r i t s i m p l e ­

m e n t a t i o n m i g h t i n c l u d e a s s u m i n g r e l a t i v e l y l e w u t i l ­

i z a t i o n l e v e l s a n d s h o r t e r u s e f u l l i v e s [ A D L P a r t I I I , 

p . 6 2 1 .

b . " H i r e d L a b o r E s t i m a t e s "

( 1 ) A r e l a t i v e l y s m a l l p r o p o r t i o n o f t h e j o b s a d v e r t i s e d 

h a v e b e e n e s t i m a t e d o n a h i r e d l a b o r b a s i s ( A D L P a r t 

I I I , p . 8 6 ] . I n m o s t h i r e d l a b o r s i t u a t i o n s t h e C o r p s 

h a s b i d i t s h o p p e r d r e d g e s a g a i n s t t h e i n d u s t r y ’ s p i p e ­

l i n e o r d i p p e r d r e d g e s [ A D L P a r t I I I , p . 8 7 ] .

( 2 ) T h e p r o c e s s b y w h i c h t h e g o v e r n m e n t p r e p a r e s q u a n t i t y 

e s t i m a t e s f o r i t s h o p p e r d r e d g e s i s s i m i l a r t o t h a t 

u s e d f o r w e l l - e q u i p p e d c o n t r a c t o r e s t i m a t e s i n v o l v i n g 

p i p e l i n e o r b u c k e t d r e d g e s . T h e e s t i m a t e d y a r d a g e , h o w ­

e v e r , r e p r e s e n t s i n - p l a c e y a r d a g e w h i c h m u s t b e c o n v e r t e d 

t o t h e b i n y a r d a g e m e a s u r e , t h e l a t t e r m e a s u r e b e i n g t h e 

b a s i s u p o n w h i c h t h e C o r p s h a s k e p t i t s h i s t o r i c a l r e c ­

o r d s . A n y i n a c c u r a c i e s i n t h e c o n v e r s i o n f a c t o r w i l l h a v e 

a d i r e c t b e a r i n g o n t h e a c c u r a c y o f t h e e s t i m a t e [ A D L P a r t 

I I I , p . 8 7 ] . T h e r e a r e l i m i t a t i o n s o n t h e a c c u r a c y w h i c h 

c a n b e e x p e c t e d o f b i n y a r d a g e m e a s u r e m e n t s [ A D L P a r t I I I , 

p . 8 8 ] .

( 3 ) E x p e r i e n c e o f d i s t r i c t p e r s o n n e l i s g e n e r a l l y l i m i t e d w i t h 

r e g a r d t o t h e p r e p a r a t i o n o f h i r e d l a b o r e s t i m a t e s [ A D L 

P a r t I I I , p . 9 4 ] .

( 4 ) C o n t r a c t o r s h a v e v e r y l i t t l e k n o w l e d g e o f g o v e r n m e n t ' s 

h i r e d l a b o r e s t i m a t i n g p r o c e s s [ A D L P a r t I I I , p . 9 5 ] .

( 5 ) N o h i r e d l a b o r e s t i m a t e s w e r e f o u n d w h e r e i n e x p l i c i t c o n s i d ­

e r a t i o n w a s < j i ve n t o t h e e f f e c t i n f l a t i o n m i g h t h a v e o n 

c o s t s o v e r t h e l i f e o f a j o b [ A D L P a r t I I I , p . 9 1 ] .

( 6 ) T h e r e p l a c e m e n t c h a r g e i n c l u d e d i n t h e r e n t a l r a t e f o r 

C o r p s d r e d g e s w a s o r i g i n a t e d t o p r o v i d e c a p i t a l f o r t h e 

r e p l a c e m e n t o f e x i s t i n g d r e d g e s w i t h o u t t h e d i r e c t a p p r o p ­

r i a t i o n o f f u n d s . H o w e v e r , t h e C o r p s d o e s n o t i n c l u d e t h e 

r e p l a c e m e n t c h a r g e i n t h e r e n t a l r a t e u s e d i n p r e p a r i n g a 

h i r e d l a b o r e s t i m a t e n o r i n i t s s t a t e m e n t o f o p e r a t i o n s .

A D L c o n c l u d e d t h e r e p l a c e m e n t c h a r g e s h o u l d b e i n c l u d e d a s

a c o s t i n t h e s t a t e m e n t o f o p e r a t i o n s [ A D L S u m m a r y , p p . 2 0 3 - 4 ]

- 1 0 -
8 7 4

) W e b e l i e v e t h a t t a x e s a r e a t r u l y n o n c c m p a r a b l e 

c o s t a n d t h a t p r i v a t e i n d u s t r y i s a t a c o s t d i s ­

a d v a n t a g e w h e n p r i v a t e a n d p u b l i c o p e r a t i o n s a r e 

c o n s i d e r e d a s a l t e r n a t i v e s [ A D L P a r t I I I , p . 1 0 4 ] . 

W o r k m a n ' s C o n p e n s a t i o n a n d g e n e r a l l i a b i l i t y i n ­

s u r a n c e a l s o c a n n o t b e c o n s i d e r e d a s c a r p a r a b l e 

i t e m s o f e x p e n s e a n d s e m e a d j u s t m e n t s h o u l d b e 

m a d e i n g o v e r n m e n t / i n d u s t r y c o m p a r i s o n s [ A D L P a r t 

I I I , p . 1 1 3 ] . I n a d d i t i o n , t h e u t i l i z a t i o n o f t h e 

a p p r o p r i a t e g o v e r n m e n t i n t e r e s t r a t e , b a s e d o n c u r ­

r e n t g o v e r n m e n t b o r r o w i n g c o s t s , i s e s s e n t i a l t o

a p r o p e r c o m p a r i s o n o f C o r p s a n d i n d u s t r y c o s t s 

[ A D L P a r t I I I , p . 1 1 8 ] .

( 8 ) I n c c r p a r i n g h i r e d l a b o r e s t i m a t e s w i t h c o n t r a c t o r 

b i d s , o n e m u s t t a k e i n t o a c c o u n t t h e f a c t t h a t c o n ­

t r a c t o r s a r e s u b j e c t t o c o s t s w h i c h t h e g o v e r n m e n t 

d o e s n o t b e a r o f 6 % t o 1 1 % o f t h e e s t i n a t e . S u c h 

d i f f e r e n t i a l m u s t b e t a k e n i n t o a c c o u n t w h e n m a k i n g 

c o m p a r i s o n s o f e f f i c i e n c y a n d p r o d u c t i v i t y s o a s t o 

n o t p e n a l i z e i n d u s t r y [ A D L S u m m a r y , p . 2 0 9 ] .

( 9 ) T h e r e a r e s e v e r a l n o n c a r p a r a b l e f a c t o r s t h a t c a n n o t 

b e r e a s o n a b l y r e d u c e d t o c o s t a d j u s t m e n t s , b u t h a v e 

a v e r y s i g n i f i c a n t i n f l u e n c e u p o n C o r p s a n d i n d u s t r y 

c o m p a r i s o n s . O n e o f t h e m o s t s i g n i f i c a n t i s t h e h i g h 

l e v e l s o f u t i l i z a t i o n a c h i e v e d b y C o r p s e q u i p m e n t u n ­

d e r i t s p r e s e n t p o l i c y a n d t h e l e w u t i l i z a t i o n o f i n ­

d u s t r y c a p a c i t y . D u e t o t h e u t i l i z a t i o n f a c t o r t h e 

g o v e r n m e n t i s a b l e t o s p r e a d i t s f i x e d c o s t s o v e r a 

g r e a t e r v o l u n e o f w o r k , t h e r e b y s u b s t a n t i a l l y r e d u c i n g 

r e p o r t e d c o s t s v i s - a - v i s i n d u s t r y [ A D L P a r t I I I , p p . 

1 2 7 - 2 8 ] . T h e C o r p s i s n o t s u b j e c t t o t h e c o n s e q u e n c e s 

o f p r e p a r i n g a b i d t o o l e w a n d l o s e m o n e y b e c a u s e t h e r e 

i s n o c o s t r e s t r i c t i o n o n t h e C o r p s . T h i s n o n c a r p a r a b l e 

c i r c u m s t a n c e i s a n e s s e n t i a l d e f i c i e n c y o f t h e h i r e d 

l a b o r b i d e v a l u a t i o n p r o c e s s a s f a r a s i n d u s t r y i s c o n ­

c e r n e d [ A D L P a r t I I I , p . 1 2 8 ] ,

( 1 0 ) A n i m p o r t a n t c o n c l u s i o n w e h a v e c c m e t o i s t h a t t h e 

h i r e d l a b o r b i d d i n g a n d e s t i m a t i n g p r o c e s s s h o u l d n o t 

b e r e l i e d u p o n a s t h e p r i n c i p a l d e t e r m i n a n t o f t h e d i ­

v i s i o n o f w o r k b e t w e e n t h e C o r p s a n d i n d u s t r y [ A D L P a r t 

I I I , p . 9 7 ] .

( 1 1 ) T h e e s t i m a t i n g p r o c e s s i s n o t s t r a i g h t f o r w a r d b u t s u b ­

j e c t t o v a r y i n g d e g r e e s o f i n t e r p r e t a t i o n , p a r t i c u l a r l y 

w h e r e p r o d u c t i o n a n d b i n m e a s u r e c o n v e r s i o n s a r e i n v o l ­

v e d . I n t e r p r e t a t i o n s b e c a m e s u b j e c t i v e g i v e n t h e C o r p s ' 

i n t e r e s t i n k e e p i n g i t s p l a n t a n o c r e w s f u l l y u t i l i z e d .

- 1 1 -
8 7 5

Y e t t h e C o r p s ' o b j e c t i v e o f m a x i n u n u t i l i z a t i o n i s 

f u l l y c o n s i s t e n t w i t h t h e " e c o n o m i c a l a n d a d v a n t a g e o u s " 

c r i t e r i o n p r o p o u n d e d i n t h e l a w [ A D L P a r t I I I , p . 9 7 ] .

( 12 ) T h e s e c o n s i d e r a t i o n s s u p p o r t o u r p o s i t i o n t h a t i t i s

d e c i s i o n s w i t h r e g a r d t o t h e g o v e r n m e n t ' s c a p a c i t y w h i c h 

f u n d a m e n t a l l y d e t e r m i n e t h e d i v i s i o n o f w o r k b e t w e e n t h e 

C o r p s a n d i n d u s t r y [ A D L P a r t I I I , p . 9 7 ) .

2 . C c r m i t t e e V i e w

T h e C o r p s S u r m a r y f a i l s t o a c c u r a t e l y r e f l e c t t h e t o t a l A d v i s o r y 

C c r m i t t e e v i e w :

a . " W e l l - E q u i p p e d C o n t r a c t o r E s t i m a t e s "

( 1 ) A w e l l - e q u i p p e d c o n t r a c t o r e s t i m a t e w h e n p r o p e r l y p r e ­

p a r e d i n c l u d e s a l l i t e m s o f c o n t r a c t o r c o s t a p p l i c a b l e 

t o t h e w o r k b u t w i t h o u t p r o f i t . B e c a u s e c o r p e t i t i o n 

a m o n g c o n t r a c t o r s g e n e r a l l y k e e p s t h e l e w b i d o n t h e 

l o w s i d e o f t h e 2 5 % , t h e l i m i t a t i o n i s i n n o p r a c t i c a l 

s e n s e a m e a s u r e o f t h e c o n t r a c t o r ' s p r o f i t [ A C . R e p . p . 

I I I - 1 2 ] .

( 2 ) A D L p o i n t e d o u t t h a t t h e r e t u r n o n n e t a s s e t s i n t h e 

d r e d g i n g i n d u s t r y i s l e s s t h a n t w o - t h i r d s o f t h e r e c o r d s 

o f t h e c o n s t r u c t i o n i n d u s t r y a n d a p p r o x i m a t e l y o n e - h a l f 

w h e n c o m p a r e d t o a l l m a n u f a c t u r i n g , a n d g o e s o n t h e q u e s ­

t i o n t h e c o n t i n u e d v i a b i l i t y o f t h e i n d u s t r y u n l e s s c h a n g e s 

a r e m a d e [ A C R e p . , p . I I I - 1 2 J .

( 3 ) T h e r e a r e w i d e d i f f e r e n c e s b e t w e e n d i s t r i c t s i n p r e p a r i n g 

w e l l - e q u i p p e d c o n t r a c t o r e s t i m a t e s . T h e v a r i a t i o n s r e ­

v e a l e d a r e i n t h e t r e a t m e n t o f c o n t i n g e n c y f a c t o r s , i n t e r ­

e s t a n d d e p r e c i a t i o n e x p e n s e , i n s u r a n c e e x p e n s e a n d p l a n t 

u t i l i z a t i o n r a t e a m o n g o t h e r s . T h e C c r m i t t e e i s c o n c e r n e d 

o v e r t h e t e n d e n c y t o l u m p s e m e i t e m s o f c o s t , w h i c h w o u l d 

a p p e a r t o b e b o t h i d e n t i f i a b l e a n d q u a n t i f i a b l e , u n d e r g e n ­

e r a l c a t e g o r i e s s u c h a s " o v e r h e a d " o r " o w n e r s h i p e x p e n s e " 

o r e v e n i n c o r r e c t l y a s s u m i n g t h a t t h e s e i t e m s a r e c o v e r e d 

b y t h e 2 5 % m a r g i n a l l o w e d b e t w e e n t h e g o v e r n m e n t e s t i m a t e 

o f c o s t a n d t h e l e w b i d . I t i s t h e C c r m i t t e e ' s o p i n i o n 

t h a t t h e w e l l - e q u i p p e d c o n t r a c t o r e s t i m a t e s h o u l d i n c l u d e 

a l l i d e n t i f i a b l e c o s t s t o w h i c h t h e c o n t r a c t o r w o u l d b e 

s u b j e c t e d i n u n d e r t a k i n g t h e w o r k [ A C R e p . p p . I I I - 1 4 , I I I - 1 5 ]

( 4 ) T h e C c r m i t t e e i s c o n c e r n e d t h a t t h e A D L R e p o r t i n d i c a t e s 

i n s o m e i n s t a n c e s t h a t t h e g o v e r n m e n t e s t i m a t o r w a s n o t

- 1 2 -

5 4- 2 3 9 0 - 7 5 - 5 6
8 7 6

f u l l y k n o w l e d g e a b l e i n h i s a s s i g n m e n t . T h e C a r m i t t e e 

f e e l s t h a t e s t i m a t o r s s h o u l d b e t r a i n e d i n t h e i r j o b , 

h a v e e x t e n s i v e p r a c t i c a l e x p e r i e n c e i n t h e d r e d g i n g 

f i e l d a n d t h e i r s p e c i a l s k i l l a n d j u d g m e n t r e c o g n i z e d . 

L a c k o f u n i f o r m e x p e r t i s e i s f u r t h e r r e a s o n f o r t h e 

i n c l u s i o n o f a n " u n c e r t a i n t y f a c t o r " [ A C R e p . p . H I -

1 5 ] .

( 5 ) E s t i m a t i n g t h e c o s t o f p e r f o r m i n g a d r e d g i n g j o b i s f a r 

f r c m a n e x a c t a r i t h m e t i c a l s c i e n c e a n d a n u n c e r t a i n t y 

f a c t o r s h o u l d b e c o n s i d e r e d f o r i n c l u s i o n i n e a c h e s t i ­

m a t e d c o s t i t e m o f a " w e l l - e q u i p p e d c o n t r a c t o r " e s t i m a t e 

t o c o v e r t h e i n a c c u r a c i e s o n t h e p r o c e s s [ A C R e p . p . H I -

1 6 ] .

b . " H i r e d L a b o r E s t i m a t e s "

( 1 ) T h e h i r e d l a b o r e s t i m a t e i s u s e d a s a c o n t r o l e s t i m a t e 

w h e n g o v e r n m e n t p l a n t i s a v a i l a b l e t o d o t h e w o r k . W h e n 

u s e d a s a c o n t r o l e s t i m a t e a n d c o m p a r e d t o a c o n t r a c t o r ' s 

l e w b i d , m a n y i t e m s o f n o n - c o m p a r a b i l i t y i n t h e t w o e s ­

t i m a t e s a r e a p p a r e n t b e c a u s e t h e g o v e r n m e n t i s n o t s u b ­

j e c t t o c e r t a i n c o s t s w h i c h a c o n t r a c t o r h a s t o p a y . A n 

a d j u s t m e n t s h o u l d b e m a d e t o t h e h i r e d l a b o r e s t i m a t e t o 

c c n p e n s a t e f o r n o n - c c m p a r a b l e c o s t s b e f o r e t h e c c m p a r i s o n 

i s m a d e [ A C R e p . p p . I I I - 1 2 , I I I - 1 3 ] .

( 2 ) A m o r e p r e c i s e q u a n t i f i c a t i o n c e r t a i n l y i s m a n d a t o r y f o r 

t h e p u r p o s e o f e v a l u a t i n g d i f f e r e n c e s i n c o s t s b e t w e e n 

w o r k p e r f o r m e d b y a c o n t r a c t o r v i s - a - v i s t h e g o v e r n m e n t , 

a s s u m i n g e q u a l e f f i c i e n c y i n w o r k p e r f o r m a n c e a n d t o e v a l ­

u a t e a n y a m o u n t b y w h i c h h i r e d l a b o r e s t i m a t e s h o u l d b e 

a d j u s t e d b e f o r e a p p l y i n g t h e p r o v i s i o n s o f 3 3 U S C 6 2 4 [ A C 

R e p . p . I I I - 1 7 ] .

( 3 ) T h e r e a r e o t h e r n o n - c c m p a r a b l e c o s t i t e m s w h i c h a r e d i f f i ­

c u l t o r i m p o s s i b l e t o q u a n t i f y . F o r i n s t a n c e , t h e j o b r i s k 

f a c t o r i n v o l v e d i n a c o n t r a c t o r ' s b i d p r e p a r a t i o n t e n d s t o 

r a i s e h i s b i d b u t d o e s n o t a f f e c t t h e g o v e r n m e n t e s t i m a t o r ' s 

a p p r o a c h . A l s o , t h e f l e x i b i l i t y i n s c h e d u l i n g p e r m i t t e d 

a n d t a k e n a d v a n t a g e o f b y t h e C o r p s i n d o i n g t h e i r o w n w o r k 

a f f e c t s t h e h i r e d l a b o r e s t i m a t e . T h e s e f a c t o r s c a n n o t b e 

d i r e c t l y q u a n t i f i e d b u t a r e t o b e c o n s i d e r e d [ A C R e p . p p . 

I I I - 1 7 , I I I - 1 8 ] .

( 4 ) R e c o m m e n d e d t h a t t h e C h i e f o f E n g i n e e r s i s s u e u p d a t e d a n d 

s p e c i f i c r e g u l a t i o n s t o g o v e r n t h e p e r f o r m a n c e o f g o v e m -

- 1 3 -
8 7 7

m e n t d r e d g i n g p l a n t , s u c h r e g u l a t i o n s t o c o n f o r m 

a s n e a r l y a s p r a c t i c a b l e t o t h o s e g o v e r n i n g c o n ­

t r a c t o p e r a t i o n s , w i t h p a r t i c u l a r a t t e n t i o n t o t h e 

p r o v i s i o n o f t i m e l y b e f o r e a n d a f t e r d r e d g i n g s u r ­

v e y s w i t h a l l r e p o r t i n g t o b e o n t h e b a s i s o f i n - 

p l a o e y a r d a g e , f o o t n o t e d t o d e t a i l t h e r e a s o n a n d 

m e t h o d s u s e d w h e n b e f o r e a n d a f t e r d r e d g i n g s u r v e y s 

a r e n o t p r a c t i c a b l e [ A C R e p . p . I I I - 1 4 ) .

( 5 ) R e o a m e n d e d t h a t t h e C h i e f o f E n g i n e e r s s e e k a u t h o r i t y 

f r c m t h e C o n g r e s s a s m a y b e r e q u i r e d , t h r o u g h a m e n d ­

m e n t t o 3 3 U S C 6 2 4 , g r a n t i n g h i m a u t h o r i t y t o a d j u s t 

" h i r e d l a b o r " e s t i m a t e s b e f o r e a p p l i c a t i o n o f t h e 2 5 

p e r c e n t u m o f 3 3 U S C 6 2 4 b y a n a m o u n t b o b e d e t e r m i n e d 

b y t h e C h i e f o f E n g i n e e r s b a s e d o n i t e m s o f n o n - c c m - 

p a r a b i l i t y b e t w e e n a " h i r e d l a b o r " e s t i m a t e a n d a " w e l l - 

e q u i p p e d c o n t r a c t o r " e s t i m a t e [ A C R e p . p . I I I - 1 8 ) .

3 . C h i e f o f E n g i n e e r s

I n d u s t r y ' s c a i m e n t s

a . U n l e s s h i r e d l a b o r e s t i m a t e s a r e a d j u s t e d f o r n o n - c o n p a r a b i l ­

i t y o f c o s t a n d o t h e r n o n - c c r r p a r a b l e c i r c u m s t a n c e s a s r e c o m ­

m e n d e d b y A D L a n d t h e A d v i s o r y C c r m i t t e e a n y g o v e m m e n t / i n d u s t r y 

c o s t c o r p a r i s o n i s m e a n i n g l e s s .

4 . I n d u s t r y ' s v i e w :

a . I f h i r e d l a b o r e s t i m a t e s a r e t o b e c o n t i n u e d t o b e u s e d u n d e r 

3 3 U S C 6 2 4 t h e n t h i s s e c t i o n s h o u l d b e r e v i s e d t o i n c l u d e c o n ­

s i d e r a t i o n o f n o n - c a r p a r a b l e c o s t s , a n d c i r c u m s t a n c e s , a n d p r o ­

v i d e f o r i n c l u s i o n o f a p l a n t r e p l a c e m e n t f a c t o r . T h e a l t e r n ­

a t i v e i s t o a m e n d 3 3 U S C 6 2 4 t o r e q u i r e t h a t a l l g o v e r n m e n t 

e s t i m a t e s f o r d r e d g i n g w o r k b e p r e p a r e d o n a " w e l l - e q u i p p e d 

c o n t r a c t o r " b a s i s .

V . P r o c e d u r e s f o r H a n d l i n g P r o t e s t s o f t h e R e a s o n a b l e n e s s o f t h e G o v e r n m e n t

E s t i m a t e

1 . A D L V i e w

T h e C o r p s S u m r a r y f a i l s t o r e f l e c t t h e t o t a l v i e w o f A D L :

a . I n c o n s i d e r i n g t h e p r o t e s t p r o c e s s o n e m u s t b e a w a r e o f t h e f a c t 

t h a t t h e o n l y p a r t i e s i n v o l v e d a r e t h e c o n t r a c t o r i n i t i a t i n g t h e

- 1 4 -
8 7 8

p r o t e s t a n d t h e C o r p s o f E n g i n e e r s . T h e c o n t r a c t o r p r o t e s t s 

t h e C o r p s ’ e s t i m a t e a n d t h e C o r p s i t s e l f d e t e r m i n e s w h e t h e r 

t h e c o n t r a c t o r ’ s c l a i m i s v a l i d [ A D L P a r t I I I , p . 9 6 1 .

b . P r o c e d u r e s r e g a r d i n g p r o t e s t s s h o u l d b e r e v i s e d i f i s s u e s 

a r e t o b e t r e a t e d i n a n e q u i t a b l e m a n n e r . U n d e r t h e p r e s e n t 

s y s t e m t h e C o r p s i s m e r e l y r e v i e w i n g i t s o w n d e c i s i o n a t a 

h i g h e r l e v e l a n d p r o v i d i n g l i t t l e f e e d b a c k a s t o h e w s u b ­

s t a n t i v e d i f f e r e n c e s w e r e r e s o l v e d . W e b e l i e v e c o n s i d e r a t i o n 

s h o u l d b e g i v e n t o i n t r o d u c i n g a n i m p a r t i a l t h i r d p a r t y ( ie s) 

i n t o t h e p r o c e s s , w h i l e r e d u c i n g t h e t i m e f r a m e o f t h e p r o t e s t 

p r o c e s s . I f t h i s i s n o t f e a s i b l e , i t i s v i t a l t h a t t h e p r o ­

t e s t p r o c e s s b e s p e e d e d u p a n d t h a t c o n t r a c t o r s r e c e i v e m o r e 

i n f o r m a t i o n r e g a r d i n g t h e r a t i o n a l e f o r t h e d e c i s i o n r e g a r d i n g 

t h e i r p r o t e s t s [ A D L P a r t I I I , p . 9 7 ] .

2 . C h i e f o f E n g i n e e r s V i e w

I n d u s t r y ' s c o m m e n t s :

a . B o t h A D L a n d t h e A d v i s o r y C o m m i t t e e c o n c l u d e d t h a t t h e C o r p s 

p r o t e s t p r o c e d u r e s s h o u l d b e r e v i s e d i f c o n t r a c t o r p r o t e s t s 

o f g o v e r n m e n t c o s t e s t i m a t e s a r e t o b e t r e a t e d i n a n e q u i t a b l e , 

i m p a r t i a l , a n d i n a t i m e l y m a n n e r . T o a c c o m p l i s h t h i s A D L a n d 

t h e C o m m i t t e e j o i n t l y r e c c n m e n d e d t h e a p p o i n t m e n t o f a n i m p a r ­

t i a l a r b i t r a t o r .

3 . I n d u s t r y ' s V i e w

a . R e c o m m e n d s t h a t t h e G e n e r a l A c c o u n t i n g O f f i c e b e d e s i g n a t e d t o 

r e v i e w c o n t r a c t o r p r o t e s t s o f g o v e r n m e n t c o s t e s t i m a t e s a s t h e y 

d o f o r b i d p r o t e s t s .

V I . S m a l l B u s i n e s s S e t - A s i d e s

T h e - C h i e f ' s S u r m a r y d o e s n o t a c c u r a t e l y r e f l e c t t h e t o t a l v i e w o f A D L 

a n d t h e A d v i s o r y C o m m i t t e e :

1 . A D L V i e w

a . T h e C o r p s ' d e c i s i o n a s t o w h e t h e r o r n o t t o s e t a s i d e a g i v e n 

j o b f o r s m a l l b u s i n e s s p a r t i c i p a t i o n o n l y i s o f v i t a l i m p o r t a n c e 

t o t h e d r e d g i n g i n d u s t r y . T h e m o r e s m a l l b u s i n e s s s e t - a s i d e s , 

t h e f e w e r j o b s c o n t r a c t o r s i n g e n e r a l c a n b i d o n [ A D L P a r t I I I , 

p . 1 3 7 ] .

- 1 5 -
8 7 9

b . O v e r t h e p a s t s e v e r a l y e a r s o n l y a r e l a t i v e l y s m a l l p e r c e n ­

t a g e o f t h e w o r k i n t h e S o u t h A t l a n t i c D i v i s i o n w a s m a d e 

a v a i l a b l e f o r o p e n b i d d i n g ( a n d i n s o m e d i s t r i c t s a l l 

w o r k h a s g e n e r a l l y b e e n s e t a s i d e ) [ A D L P a r t I I I , p . 1 4 8 ] .

c . T h e r e a r e a l i m i t e d n u m b e r o f d r e d g i n g c o m p a n i e s w h i c h o p e r ­

a t e i n m o r e t h a n o n e o r t w o r e g i o n s a n d w h i c h c o u l d b e c l a s ­

s i f i e d a s l a r g e ( l a r g e c o m p a r a t i v e l y s p e a k i n g , b u t n o t " b i g " 

i n a b s o l u t e s i z e ) . T h e i n d u s t r y i s p r i n c i p a l l y c o m p o s e d o f 

s m a l l o p e r a t o r s w h o c o m p e t e i n g e o g r a p h i c a l l y l i m i t e d m a r k e t s 

[ A D L P a r t I I I , p . 1 3 7 ] .

d . C o m p a r e d t o m o s t o t h e r i n d u s t r i e s , t h e d r e d g i n g i n d u s t r y i s 

m a i n l y c o m p r i s e d o f r e l a t i v e l y s m a l l c o m p a n i e s . U n d e r t h e 

c i r c u m s t a n c e s , i t i s p o s s i b l e t h a t t h e d e f i n i t i o n o f s m a l l 

b u s i n e s s c o n c e r n s t o b e a s s i s t e d t h r o u g h s e t - a s i d e s s h o u l d 

b e s e t a t a v o l u m e b e l o w t h e p r e s e n t $ 5 m i l l i o n l e v e l ( p e r ­

h a p s a t a r a n g e o f $ 2 t o $ 3 m i l l i o n ) [ A D L P a r t I I I , p . 1 5 0 ] .

e . T h e r e a r e n o l o g i c a l r e a s o n s f o r t h e w i d e d i s p a r i t i e s t h a t 

p r e s e n t l y e x i s t i n i n t e r p r e t a t i o n o f t h e R e g u l a t i o n s r e g a r d ­

i n g s n a i l b u s i n e s s s e t - a s i d e s f r o m d i s t r i c t t o d i s t r i c t [ A D L 

P a r t I I I , p . 1 5 1 ] .

f . G A D l ia s r e c e n t l y h e l d t h a t t h e t e r m " f a i r p r o p o r t i o n " s h o u l d 

n o t b e c o n s t r u e d t o p r e c l u d e l a r g e b u s i n e s s f r c m c a r p e t i n g 

f o r a f a i r s h a r e o f F e d e r a l c o n t r a c t s i n a n y p a r t i c u l a r i n d u s ­

t r y [ A D L P a r t I I I , p p . 1 4 8 - 4 9 ] .

g . W e a r e c o n v i n c e d t h a t o p e n a d v e r t i s e m e n t o f s a n e o f t h e l a r g e r 

j o b s w h i c h w e r e s e t a s i d e f o r s m a l l b u s i n e s s w o u l d h a v e r e s u l t e d 

i n s a v i n g s i n c o s t t o t h e C o r p s [ A D L P a r t I I I , p . 1 4 8 ] .

h . I t i s v i t a l t h a t p r o c e d u r e s a n d p r a c t i c e s f o l l o w e d i n e a c h r e ­

g i o n a n d d i s t r i c t , a c c o m p l i s h t h e o b j e c t i v e s C o n g r e s s i n t e n d e d 

i n t h e S m a l l B u s i n e s s A c t , r e s u l t i n f a i r s h a r e s o f w o r k f o r 

b o t h s n a i l a n d n o n s m a l l b u s i n e s s , a n d k e e p b i d d i n g c o m p e t i t i v e 

a n d c o s t s a t a r e a s o n a b l e l e v e l [ A D L P a r t I I I , p . 1 5 1 ] .

i . I h e s m a l l b u s i n e s s s e t - a s i d e p r o g r a m , w h i c h i s i n t e r p r e t e d a n d 

a d m i n i s t e r e d d i f f e r e n t l y f r o m d i s t r i c t t o d i s t r i c t , i s p a r t i a l l y 

r e s p o n s i b l e f o r f r a g m e n t a t i o n o f j o b s . W h i l e t h i s p r o g r a m s u b ­

s i d i z e s s m a l l o p e r a t o r s , i t a l s o e n c o u r a g e s j o b s t o b e s p l i t u p 

i n t o s m a l l e r j o b s w h i c h a r e b i d a n d a c c o m p l i s h e d s e p a r a t e l y .

T h i s b o t h r e d u c e s t h e p o t e n t i a l e c o n o m i c s o f s i z e a n d d e n i e s t o 

a n u m b e r o f c o n t r a c t o r s o f m o d e s t s i z e t h e o p p o r t u n i t y t o b i d 

o n a n a 1 1 b u s i n e s s s e t - a s i d e s . I n a d e c l i n i n g i n d u s t r y w i t h e x ­

c e s s c a p a c i t y , d e n i a l o f t h e o p p o r t u n i t y t o b i d o n w o r k i s a 

s e r i o u s m a t t e r [ A D L P a r t I I , p . V I I I - 3 ] .

- 1 6 -
8 8 0

2 . C c r n n i t b e e V i e w

a . T h e p r a c t i c e o f s p l i t t i n g u p o f j o b s i n t o s m a l l s e g m e n t s 

s o l e l y f o r t h e p u r p o s e o f s e t t i n g t h e w o r k a s i d e f o r S m a l l 

B u s i n e s s s h o u l d b e c h a n g e d [ A C R e p . p . I I I - 1 9 ] .

b . A d o p t i o n o f a p o l i c y t h a t i f a d r e d g i n g j o b i s a d v e r t i s e d 

f o r S m a l l B u s i n e s s a n d t h e l e w b i d i s n o t w i t h i n t h e 2 5 % 

l i m i t a t i o n o f 3 3 U S C 6 2 4 a n d i s t h e r e f o r e n o t a w a r d a b l e , 

t h e w o r k w i l l b e r e a d v e r t i s e d w i t h o u t s e t - a s i d e b e f o r e a n y 

a c t i o n t o p e r f o r m t h e w o r k b y g o v e r n m e n t p l a n t i s t a k e n 

[ A C R e p . p . I I I - 1 9 ] .

c . R e d u c e b o t h t h e s i z e c r i t e r i a g o v e r n i n g d r e d g i n g j o b s t o 

b e s e t a s i d e a n d i n c o n t r a c t o r c l a s s i f i c a t i o n [ A C R e p . p . 

I I I - 1 9 ] .

3 . C h i e f o f E n g i n e e r s V i e w

I n d u s t r y ' s C e m e n t s :

a . T h e C o r p s f a i l s t o p r o p o s e a d o p t i o n o f t h e r e c a r m e n d a t i o n 

m a d e b y b o t h A D L a n d t h e A d v i s o r y C o r n u t t e e t h a t t h e d e f i ­

n i t i o n o f s m a l l b u s i n e s s c o n c e r n s i n t h e d r e d g i n g i n d u s t r y 

( l e s s t h a n $ 5 m i l l i o n i n a v e r a g e v o l u m e o v e r t h e p r o c e e d i n g 

3 y e a r s ) b e s e t a t a l o w e r v o l u m e a n d t o k e e p b i d d i n g c o m ­

p e t i t i v e a n d c o s t s a t a r e a s o n a b l e l e v e l b y n o t p r e c l u d i n g 

o t h e r d r e d g i n g f i r m s f r o m c a r p e t i n g f o r a f a i r s h a r e t h e 

F e d e r a l d r e d g i n g w o r k .

4 . I n d u s t r y ' s V i e w

a . A d o p t s t h e r e o a r m e n d a t i o n s o f A D L a n d t h e A d v i s o r y C o m m i t t e e .

V I I . S t a t e o f t h e D r e d g i n g I n d u s t r y

T h e C o r p s S u n m a r y d o e s n o t r e f l e c t t h e t o t a l v i e w o f A D L a n d t h e A d v i s o r y 

C o m m i t t e e :

1 . A D L V i e w

a . T h r o u g h o u t m o s t o f t h e p a s t t e n y e a r s , t h e d e c l i n e i n t h e l e v e l 

o f t h e f e d e r a l d r e d g i n g p r o g r a m , p a r t i c u l a r l y i n e x p e n d i t u r e s 

f o r n e w w o r k , h a s a f f e c t e d t h e l e v e l o f u t i l i z a t i o n o f p r i v a t e 

i n d u s t r y e q u i p m e n t a n d t h e p r o f i t a b i l i t y o f p r i v a t e d r e d g i n g 

o a r p a n i e s . M u c h o f t h e C o r p s e q u i p m e n t , m o s t l y u s e d o n m a i n t e ­

n a n c e w o r k , h a s c o n t i n u e d t o e n j o y a h i g h l e v e l o f u t i l i z a t i o n 

[ A D L S u r m a r y , p . 1 ] . C u r i n g t h i s p e r i o d o f t i m e t h e p r o p o r t i o n 

o f y a r d s d r e d g e d b y h o p p e r d r e d g e s i n c r e a s e d s t e a d i l y [ A D L P a r t 

I , P - V - 5 ] .

- 1 7 -
8 8 1

b . I n d u s t r y ' s s h a r e o f t h e d r e d g i n g a c t i v i t y a d m i n i s t e r e d b y 

t h e C o r p s h a s d e c l i n e d s i g n i f i c a n t l y s i n c e 1 9 6 7 [ A D L P a r t 

I , p . V I - 4 ] . A t u r n i n g p o i n t f o r t h e i n d u s t r y w a s 1 9 6 7 .

I t m a r k e d t h e s t a r t o f a p e r i o d o f v e r y l e a n y e a r s f o r i n ­

d u s t r y [ A D L S u m n a r y , p . 3 7 ] . I n c o n s t a n t d o l l a r s a n n u a l 

e x p e n d i t u r e s f o r d r e d g i n g w o r k d o n e b y i n d u s t r y , a f t e r a d ­

j u s t m e n t w i t h t h e G N P P r i o e D e f l a t o r a n d b y t h e c o n s t r u c ­

t i o n C o s t I n d e x D e f l a t o r , h a s d e c l i n e d 4 0 % d u r i n g t h e p a s t 

t e n y e a r s . T h e e f f e c t o f t h e s e t r e n d s w a s b o i n c r e a s e t h e 

C o r p s s h a r e o f t o t a l f e d e r a l d r e d g i n g e x p e n d i t u r e s s i g n i f i ­

c a n t l y [ A D L P a r t I , p . V I - 7 ] . T h e C o r p s a v e r a g e d o v e r 4 0 % 

o f t h e t o t a l p r o d u c t i o n a n d t h e i n d u s t r y c o n s e q u e n t l y a v e r ­

a g e d l e s s t h a n 6 0 % [ A D L P a r t I , p . V I - 8 ] .

c . T h e f a l l i n v o l u m e s o f w o r k a n d t h e l o w l e v e l s o f p r o f i t ­

a b i l i t y h a v e c o n t r i b u t e d s i g n i f i c a n t l y t o a n o t h e r m a j o r l o n g 

t e r m p r o b l e m f a c i n g t h e i n d u s t r y : t h a t o f g e n e r a t i n g s u f f i ­

c i e n t c a p i t a l f o r t h e r e p l a c e m e n t o f p l a n t a n d e q u i p m e n t .

T h e i n d u s t r y g e n e r a l l y i s n o t g e n e r a t i n g e n o u g h c a s h f l o w 

f r o m o p e r a t i o n s t o e s t a b l i s h c a p i t a l r e p l a c e m e n t r e s e r v e s 

a n d s i m u l t a n e o u s l y p r o v i d e i n v e s t o r s w i t h a n o m i n a l r e t u r n .

T h i s p r o b l e m i s c o m p o u n d e d b y t h e e f f e c t s o f i n f l a t i o n [ A D L 

P a r t I , p . X - 4 ] .

d . S i g n i f i c a n t l y , t h e n a t i o n a l u t i l i z a t i o n o f i n d u s t r y ' s h y d r a u ­

l i c d r e d g e s , w h i c h a r e t h e m o s t h e a v i l y u t i l i z e d , h a v e n o t 

a p p r o a c h e d 5 0 % u t i l i z a t i o n i n r e c e n t y e a r s [ A D L P a r t I , p . 

V I I - 6 ] .

e . T h e n u m b e r o f c o m p a n i e s a c t i v e i n t h e N a t i o n a l D r e d g i n g I n d u s ­

t r y d e c l i n e d f r o m a n e s t i m a t e d 1 5 7 t o 8 7 , a 4 4 % d e c r e a s e , d u r ­

i n g t h e n i n e y e a r s 1 9 6 4 t o 1 9 7 2 . T h e p r i m a r y c a u s e o f t h i s 

t r e n d w a s a d e c l i n e i n v o l u m e s o f d r e d g i n g w o r k i n t h e p u b l i c 

a n d p r i v a t e s e g m e n t s o f t h e d r e d g i n g m a r k e t [ A D L P a r t I , p . 

V I I - 3 ] .

f . A m o n g o t h e r f a c t o r s w h i c h h a v e c o n t r i b u t e d s i g n i f i c a n t l y t o 

t h e t r e n d o f d e c l i n i n g s i z e o f t h e i n d u s t r y i s t h e C o r p s u t i l ­

i z a t i o n a n d w o r k a l l o c a t i o n p o l i c i e s [ A D L P a r t I , p . V I I - 7 ] .

g . T h e p r o f i t s b e f o r e t a x e s ( 1 4 . 6 % i n 1 9 7 2 a n d 8 . 8 % i n 1 9 7 3 ) a r e 

b a s e d o n t h e r e t u r n s f r o m t h i r t e e n w e l l - e s t a b l i s h e d l a r g e d r e d g 

i n g f i r m s r e p r e s e n t i n g t h e m o r e p r o f i t a b l e p a r t o f t h e d r e d g i n g 

i n d u s t r y [ A D L P a r t I , p . X - 3 ] . C o n c l u d e d t h a t t h e a f t e r t a x 

r e t u r n o n a s s e t s , b a s e d o n t h i s s a m p l e , d o e s n o t e q u a l t h e r e ­

t u r n o n a s s e t s o f t h e a v e r a g e o f c o n t r a c t c o n s t r u c t i o n a n d o f 

m a n u f a c t u r i n g c o n c e r n s [ A D L P a r t I , p . X - 4 ] .

h . I n c r e a s e d i n d u s t r y p a r t i c i p a t i o n i n t h e n a t i o n a l d r e d g i n g p r o ­

g r a m w i l l p r o v i d e a n o p p o r t u n i t y f o r t h e i n d u s t r y t o a c h i e v e 

a d e q u a t e f i n a n c i a l r e t u r n s , r e p l a c e o l d e q u i p m e n t a n d a d d n e w 

k i n d s o f e q u i p m e n t [ A D L P a r t I I , p . V I I I - 2 6 ] .

- 1 8 -
8 8 2

i . T h e p r i n c i p a l v a r i a b l e i n t h e c o s t o f d r e d g i n g i s t h e 

u t i l i z a t i o n o f t h e e q u i p m e n t . T h e e f f e c t o f p l a n t u t i l ­

i z a t i o n o n c o s t h c w e v e r i s u n i v e r s a l . B o t h C o r p s a n d 

i n d u s t r y d r e d g e s a r e s u b j e c t t o t h i s r u l e [ A D L P a r t I I , 

p . V I I I - 4 ] .

j . C o n c l u d e d t h a t i n d u s t r y ' s p r e s e n t h y d r a u l i c d r e d g e f l e e t 

h a s t h e p r o v e n a b i l i t y t o m e e t p r i v a t e , f e d e r a l , a n d s a n e 

f o r e i g n d r e d g i n g d e m a n d s . T h e U . S . I n d u s t r i a l d r e d g i n g 

f l e e t i s c u r r e n t l y o p e r a t i n g s a n e o f t h e f i n e s t c l a m s h e l l - 

b u c k e t d r e d g e s i n t h e w o r l d [ A D L P a r t I I , p . V I - 9 8 ] . I n ­

d u s t r y h a s s u f f i c i e n t c a p a c i t y t o h a n d l e t h e e n t i r e g o v e r n ­

m e n t a n d p r i v a t e w o r k l o a d i n t h e s e c a t e g o r i e s f o r t h e n e x t 

t e n y e a r s [ A D L P a r t I I , p . V I I I - 2 4 ] .

2. Car mi tt e e Vie w

a . T h e r e i s m e r i t t o t h e a s s u m p t i o n t h a t i n d u s t r y d r i v e n b y 

o a n p e t i t i o n w i l l b e m o r e e f f i c i e n t i n p e r f o r m a n c e o f t h e 

w o r k t h a n G o v e r n m e n t p l a n t . S u c h e f f i c i e n c y w i l l b e r e ­

f l e c t e d i n c o n t r a c t o r c o s t s . C o m p e t i t i o n b e t w e e n c o n t r a c ­

t o r s t e n d s t o d r i v e b i d p r i c e s d o w n a n d G o v e r n m e n t c o s t s 

a r e t h e r e b y r e d u c e d . A b o u t 5 3 % o f c o n t r a c t o r l o w b i d s 

o v e r t h e l a s t t e n y e a r s h a v e b e e n b e l o w t h e G o v e r n m e n t e s ­

t i m a t e w h i c h d o e s n o t i n c l u d e a p r o f i t m a r g i n [ A C R e p . p .

I I - 6 ] .

b . T h e t r e n d o v e r t h e p a s t t e n y e a r s h a s b e e n v e r y d e f i n i t e 

w i t h t h e C o r p s i n c r e a s i n g i t s p e r c e n t a g e o f t h e w h o l e ( d i ­

v i s i o n o f f u n d s a v a i l a b l e f o r d r e d g i n g w o r k ) a n d i n d u s t r y ' s 

p o r t i o n d e c r e a s i n g [ A C R e p . p . I I — 7 ] .

c . T r a d i t i o n a l l y , t h e i n d u s t r y h a s b e e n a l l o c a t e d m o s t o f t h e 

n e w w o r k b e c a u s e t h e i r e q u i p m e n t i s m o r e s u i t a b l e f o r i t .

T h u s , t h e d e c l i n e i n n e w w o r k h i t t h e m t h e h a r d e s t [ A C R e p . 

p . I I - 8 ] . T h e m a r k e d d e c l i n e i n n e w w o r k f u n d i n g h a d a d i s - 

a s t e r o u s e f f e c t o n t h e p r i v a t e d r e d g i n g i n d u s t r y . A s a r e ­

s u l t , i n t h e l a s t t e n y e a r s m a n y c c n p a n i e s h a v e g o n e o u t o f 

b u s i n e s s . C a r p e t i t i o n i s f i e r c e i n m o s t r e g i o n s a n d t h e p r o ­

f i t a b i l i t y b y t h e i n d u s t r y h a s b e e n v e r y l e w . I t s a f t e r t a x 

n e t i n c a n e h a s b e e n 4 . 4 % a n d 7 . 3 % a n d a f t e r t a x r e t u r n o n

n e t a s s e t s b e t w e e n 4 . 5 % a n d 7 . 8 % . T h e r e t u r n s o n a s s e t s , w h i c h 

w e r e t a k e n l a r g e l y f r a n s a n p l e s o f p r o f i t a b l e d r e d g i n g f i r m s , 

h a v e n o t e q u a l l e d t h e r e t u r n s o n a s s e t s o f t h e a v e r a g e c o n t r a c t 

c o n s t r u c t i o n a n d m a n u f a c t u r i n g c o n c e r n s [ A C R e p . p . I I — 9 ] .

d . C o n c l u d e s t h a t A D L f o r e c a s t o f t h e f e d e r a l a n d n o n - f e d e r a l f u ­

t u r e d r e d g i n g w o r k l o a d i s s a n e w h a t o v e r s t a t e d [ A C R e p . p p . I I - 9 , 

1 1 - 1 0 , 1 1 - 1 1 ] .

- 1 9 -
8 8 3

e . T h e r e i s n o m e r i t i n t h e s u g g e s t i o n t h a t G o v e r n m e n t p l a n t 

b e m a i n t a i n e d s i m p l y t o c o n t r o l c o n t r a c t o r b i d p r i c e s [ A C 

R e p . p . I I I - 2 ] .

f . I t i s c l e a r t h a t t h e i n d u s t r y h a s s u f f i c i e n t d r e d g e c a p a c i t y 

t o u n d e r t a k e e v e n m o r e o f t h e F e d e r a l d r e d g i n g p r o g r a m t h a n 

t h e 6 0 % t o 7 5 % w h i c h h a s b e e n i t s s h a r e o v e r t h e p a s t t e n 

y e a r s [ A C R e p . p . I I I - 2 ] . I n d u s t r y h a s d e m o n s t r a t e d o v e r t h e 

y e a r s t h e c a p a b i l i t y t o e x e c u t e a n i n c r e a s i n g s h a r e o f t h e 

p r o g r a m s a t i s f a c t o r i l y [ A C R e p . p . I I I - l ] .

g . D i d n o t c o n c l u d e t h a t m o s t o f t h e i n d u s t r y e q u i p m e n t i s i n 

n e e d o f r e p l a c e m e n t .

3 . C h i e f o f E n g i n e e r s V i e w

I n d u str y's C orr m e nts:

a . T h e l i m i t e d i n d u s t r y r e s p o n s e t o j o b c o s t d a t a h a s n o t h i n g 

w h a t s o e v e r t o d o w i t h t h e f i n a n c i a l s t a t u s o f t h e i n d u s t r y .

I n a d d i t i o n , A D L s t a t e d t h a t a s s o o n a s i t b e c a m e a p p a r e n t 

t h a t t h e r e s p o n s e t o o u r s u r v e y o f t h e i n d u s t r y w a s g o i n g b o 

b e l i m i t e d t o a s m a l l n u m b e r o f c o m p a n i e s t h a t h a d t h e n e c e s ­

s a r y r e c o r d s , t h e y u n d e r t o o k t w o m a j o r t a s k s n o t o r i g i n a l l y c o n ­

t e m p l a t e d i n o u r w r k p r o g r a m . T h e y p r e p a r e d a d e t a i l e d a n a l y ­

s i s o f D u n a n d B r a d s t r e e t r e p o r t s o n d r e d g i n g c o n p a n i e s a n d 

s u m n a r i z e d a n d a n a l y z e d d a t a i d e n t i f y i n g a c t i v e d r e d g i n g c o m ­

p a n i e s o n C o r p s o f E n g i n e e r s b i d r e c o r d s f r o m 1 9 6 4 t o 1 9 7 3 

[ A D L P a r t I , p p . 1 - 2 , 1 - 3 ] .

b . I n d u s t r y h a s a d j u s t e d t o t h e c h a n g e s ( r e d u c t i o n s ) i n t h e a n ­

n u a l f u n d i n g l e v e l s a v a i l a b l e f o r d r e d g i n g . T h i s i s o b v i o u s b y 

t h e f a c t t h a t a l a r g e n u m b e r o f d r e d g i n g c o m p a n i e s w h i c h h a v e 

b e e n f o r c e d o u t o f b u s i n e s s d u r i n g t h e l a s t t e n y e a r s .

4 . I n d u s t r y ' s V i e w

a . T h e o n l y w a y t o a s s u r e a h e a l t h y a n d v i a b l e d r e d g i n g i n d u s t r y 

i s t o p u t o u t f o r a d v e r t i s e d b i d s o n a c o n t i n u o u s b a s i s a l l 

w o r k w h i c h i n d u s t r y h a s t h e c a p a b i l i t y t o p e r f o r m a t a r e a s o n ­

a b l e p r i c e ( b a s e d o n a " w e l l - e q u i p p e d c o n t r a c t o r " c o s t e s t i m a t e 

o r a h i r e d l a b o r e s t i m a t e a d j u s t e d f o r n o n - c c r r p a r a b i l i t y c o s t s ) 

a n d i n a t i m e l y m a n n e r . I n a d d i t i o n , i n d u s t r v s h o u l d b e g i v e n 

t h e o p p o r t u n i t y t o a c q u i r e a n y n e w d r e d g e s r e q u i r e d b o m e e t 

f u t u r e d r e d g i n g h e e d s i n l i e u o f f e d e r a l i n v e s t m e n t i n n e w 

g o v e r n m e n t d r e d g e s .

- 2 0 -
8 8

Se na t or Gr a v e l . O ur n e xt wit n ess is Ha n k S oi ke, ge ner al ma n a ger, 

P o rt of Gr a y s Har b or.

S T A T E M E N T O F H E N R Y E. S OI K E, G E N E R A L M A N A G E R, P O R T O F 

G R A Y S H A R B O R, W A S H.

Mr. S oi k e . T h a n k y o u ver y m uc h, Mr. C h air m a n. I d o ha v e a pr e ­

pare d state m e nt t hat 1 w o ul d li ke t o s u b mit f or t he rec or d. ( See p. 88 8.)

I w o ul d li ke t o sa y f or t he rec or d t h at m y na m e is He nr y S oi ke. I 

a m ge neral ma na g er of t he P o rt of Gr a y s Har b o r. I a m s pe a ki n g here 

f or m y o w n p o rt a n d I ha v e bee n dele gate d t o s pea k f or t ne Wa s hi n g ­

t o n P u blic P o rts Ass o ciati o n, w hic h re pr ese nts 52 p u blic p o rts i n t he 

St ate of Wa s hi n gt o n.

I w o ul d j u st li ke t o c o m me nt, i n t he i nt ere st of ti me, briefl y o n 

s o me of t he p orti o n s of m y state m e nt. We rec o g niz e t h at o pe rati o n 

a n d mai nt e n a n ce f u n d s are t he sec o n d lar g est ite m i n t he $2.5 billi o n 

b u d get e d f or ci vil w or ks a n d certai nl y t his i n dicat es t h at m ai nte n a nc e 

dre d gi n g is a maj or c o n si d erati o n of t he C or ps of E n gi neers.

We als o w o ul d li ke t o p oi nt o ut t h at mai nte na n ce dre d gi n g f or o ur 

Gr a ys Ha r b or na vi gati o n pr oject re q uire d a n a p p r o p riati o n t his yea r 

of $1,63 6,0 00, a n d it is t he hi g hest a n n ual c ost si nce t h at p r oj ect ha s 

bee n i n e xist e nce, a n d it sta rte d i n t he earl y 19 20’s.

I w o ul d li ke t o briefl y re vie w f or y o u s o m et hi n g t h at has ha p pe n e d 

i n Gr a y s Ha r b o r. W he n t h at pr oject was sta rte d, t he P o rt of Gr a ys 

Ha r b or was o bli gat e d b y c o n gressi o nal act t o pr o vi de dis p o sal areas 

a n d a dre d ge t o o p erate u n d er c o ntra ct b y t he c or ps a n d t o d o t he 

mai nt e na nce dre d gi n g w or k re q uire d i n t he est uar y.

T h e P o rt of Gr a y s Ha r b o r di d t h at w or k f or 50 years. O ur dre d g e 

was f orce d o n t he beac h b y pres s ure s of pri vate i n d ustr y i n 1972.

We ha ve see n a n i ncreas e of 98 perce nt o ver t he c ost of dre d gi n g 3 

yea rs a g o c o m par e d wit h t he bi d t h at t he c or ps g ot t his yea r. It we nt 

fr o m 46 ce nts per c u bic yar d t o 91 ce nts per c u bic yar d.

Beca use we ha d t o disc o nti n ue o p erati o n of t he dre d g e, i n pa rt n er ­

s hi p wit h t he c or ps, we c o ul d n o l o n g er d o o ur o w n mai nt e na nce w or k 

i n fr o nt of o ur piers.

We ha v e s ee n a n i ncreas e of 187 per ce nt i n o ur m ai nte n a nc e dre d gi n g 

c ost w he n we we nt t o pri vate bi d s o ve r a 3- y ear peri o d of ti me. T he 

last ye ar t h at we di d o ur o w n mai nt e na nce w or k wit h o ur o w n dre d ge 

it was 54 ce nts per c u bic yar d i n 1972. T his yea r we recei v e d a bi d of 

$1. 55 per c u bic ya r d, a n d we t hr e w t h at bi d o ut a n d we nt o n a n 

e q ui p m e nt re ntal basis.

We are gr eatl y c o nc er ne d a b o ut t he ra pi d i ncre ase i n pi peli ne 

dre d gi n g c osts, a n d certai nl y t he rec o r ds o n Gr a ys Ha r b or will gi ve 

t his c o m mittee a m ple de m o nst rati o n a n d verificati o n of t h at t hr o u g h 

m y state m e nt.

B ut beca use of t h ose i ncrea ses i n c osts a n d w h at we ha v e see n 

ha p pe n i n c o m petiti v e bi d di n g b y t he pri vate sect or i n pi peli n e 

dre d gi n g, we are ver y fearf ul of w h at will ha p pe n if a n d w he n t he y 

ve nt ur e i nt o t he h o p per dre d gi n g pr o g ra m.

We w o ul d n’t ar g u e a b o ut t he nee d f or ne w h o p per dre d g es, t o be 

c o n str u cte d, a n d we are please d t h at i n d u str y wa nts t o be i n v ol ve d. 

B ut we ha v e ver y str o n g feeli n gs t h at C o n gress s h o ul d c o nti n u e t heir 

pla n of a p pr o pri ati o n s i or ne w c or ps dre d ges, s o t h at at lea st t here 

will be a c hec k a n d bala nce t o see t h at t he w or k t h at is re q uire d f or
8 8 5

t he water w a ys of t he U nite d St ate s is d o ne o n a fair, e q uita ble, a n d 

c o m petiti v e basis.

T he h o p per dre d ge fleet t h at t he c or p s pre se ntl y has certai nl y is 

ver y i na de q uat e. T h e t hre e dre d ges t h at t he y o pe rate o n t he Pacific 

c oast ra n g e i n a ge fr o m 28 t o 38 years.

It w o ul d be a n u nf air sit uati o n f or t he c or ps t o be e x pe cte d t o c o m ­

pete wit h o ut m o de m h o p per dre d ges t o dete r mi ne w h o s h o ul d be 

pr o vi di n g t he ver y i m p o rta nt mai nt e na nce w or k f or o ur wat er w a ys.

We als o t hi n k t h at C o n gr ess s h o ul d be ca uti o u s n ot t o all o w a n y 

s u bsi dies of ta x p a y er s’ f u n d s f or pri vate h o p p er dre d ge c o nst r ucti o n 

t h at mi g ht ta k e a wa y w or k fr o m t he c or ps.

We als o t hi n k t h at C o n gr ess s h o ul d dir ect s o me pe netrati n g e x ­

a mi nati o n of t he e x pe cte d cre wi n g of pri vat el y o p erate d dre d ges a n d 

h o w t h ose c ost s w o ul d c o m pare wit h t he pre se nt p u blic- o perate 

dre d ges.

Se n at o r D o m e ni ci . Di d y o u sa y cre wi n g?

Mr. S oi k e . Yes, sir; t he arr a n ge me nt u n der w hic h t he y w o ul d 

ha v e t o p ut t he o p erati n g pe o ple a b o ar d t h os e dre d g es. Se n at or, I a m 

i n s y m p at h y wit h y o ur c o m me nts a b o ut Bet hel, Alas k a, a n d w h at 

y o u w o ul d li ke t o acc o m pli s h t her e.

I s pe nt s o me ti me i n Ala s ka a n d I t hi n k it is a gre at State. I t hi n k 

t h at t he dre d gi n g s u bje ct y o u are c o nsi deri n g t o d a y is ver y i m p o rta nt, 

beca u se if we d o n’t c o nti n u e t o mai nt ai n o ur water w a ys or esta blis h 

ne w o nes o n a c o m petiti v e basis, per ha p s we will fi n d all of t he p o p ula ­

ti o n t h at ca n cr o w d i nt o t h ose nat ur al har b ors of t he U nite d St ate s, 

a n d I t hi n k t h at w o ul d be a tra g e d y.

We ha v e a gr eat c o u ntr y a n d we nee d t o kee p o ur tra ns p o rtati o n 

facilities via bl e, a n d we are dee pl y c o nc er ne d a b o ut t he h o p pe r 

dre d gi n g as pects.

Se nat or G r a v e l . I n y o ur e x perie nce wit h t he pi peli ne dre d g es, i n 

t he bi ds t h at y o u recei ve d, w h y d o y o u t hi n k t he y were s o hi g h ? Were 

t he y j u st tr yi n g t o ri p it off?

O b vi o usl y, t here m ust ha v e bee n s o me reas o n if t he y all ca me i n 

hi g h. S o y o u realiz e s o me s u bsta ntial sa vi n gs. D oes it ha ve a n yt hi n g 

t o d o wit h t he q u a ntit y a n d ite m s of w or k a n d c o n sist e nc y of w or k?

Mr. S oi k e . T he a n n ual mai nt e na nce re q uir e m e nts ha v e bee n 

q uite c o n sist e nt t hr o u g h t he ye ars. If a n yt hi n g, t he w or k h as i ncre ase d, 

w hic h s h o ul d refle ct o n a l o wer c ost. It has n ot bee n d o ne.

I t hi n k we ha v e l ost t he c hec k a n d bal a nc e we nee d. T h ere is n o 

wa y f or t he c or ps t o c o me i n a n d d o t h at w or k bec a use t he y d o n’t 

ha ve t he pi peli ne dre d ges t he y ca n m o v e i n. T h ere is still o ne bei n g 

o p erate d b y t he P o rt of P o rtl a n d i n t he C ol u m bia Ri v er, b u t cer ­

tai nl y it is n ot a v aila ble t o m o ve i nt o Gra ys Ha r b or.

S o me of t he c osts, fra n kl v, t h at h a ve bee n refle cte d is t h eir m o biliza ­

ti o n a n d de m o bili zati o n. We are t he o nl y de e p w ate r p ort o n t he c o ast 

of t he St at e of Wa s hi n gt o n a n d f or pri vate i n d u str y t o c o me i n, t h e y 

m ust disas se m ble t heir dre d ges, t o w t he m ar o u n d, a n d reas se m ble i n 

t he ha r b o r.

Se nat or G r a v e l . Yo u d o n’t ha ve t h at c ost b y o w ni n g o ne a n d kee p* 

i n g it w or ki n g, ri g ht?

Mr. S oi k e . W e ca n c o m par e a n d ha v e statistic s i n m y state m e nt oi 

w h at o ur dre d gi n g c ost s were a n d y o u ca n rel ate t he m t o w h at t h * 

dre d gi n g c ost s are u n d er t he c o r ps c o m petiti v e c o ntra cts.

Se nat or G r a v e l . D y o u h a v e t h at ?
8 8 6

Mr. oi k e . T hat is i ncl u de d i n m y state m e nt. I als o ha v e a n ot h er 

s u m ma r y t h at I w o ul d li ke t o s u b mit f or t he rec o r d w hic h is a s u m m ar y 

of t h e last 4 y ears of dr e d gi n g b y o ur p u blic dre d g e, a n d t he n t he w or k 

t h at has bee n d o ne b y pri vate i n d ustr y f or t he la st 2 ye ars.

Se nat or D o m e ni ci . Mr. C h air ma n, mi g ht I as k t w o q ue sti o ns? 

Y o u i n dic ate d t h at t h e c a pa cit y w hic h is n o l o n ger pre se nt i n t he c or ps, 

i n y o ur pa rti c ular har b or, still e xists s o me w her e i n Ore g o n?

Mr. S oi k e . T h ere is a p u bli cl y o w ne d dre d ge b y t ne P o rt of P o rtla n d. It is n ot a v aila ble t o c o me i nt o o ur har b or.

Se nat or D o m e ni ci . I u n d ersta n d t h at. H o w a b o ut t he ki n d of w or k 

t he y d o ? Is it si mila r?

Mr. S oi k e . Ver y si milar.

Se n at o r D o m e ni ci . D we k n o w w hat it is c osti n g t her e?

Mr. S oi k e . N . B ut I belie ve Mr. A1 Esc h ba c h of t he P o rt of P o rtla n d will te stif y o n M o n da y.

Se n at or D o m e ni c i . I n y o u r state m e nt y o u i n dicate t he late st bi d 

f or p ri v ate dr e d gi n g was $ 1. 5 5 per c u bic ya r d. Y o u c o ncl u de t h at p ar agra p h b y sa yi n g, “ We t hre w o ut t he bi d a n d we nt f or re ntal e q ui p ­

m e nt.”

B ut y o u di d n ’t i ncl u de w het her y o u sa ve d a n y m o ne y or n ot.

Mr. S oi k e . N , sir. T hat w or k is still i n pr o gre ss. We h a ve n ot be e n 

a ble t o c o m plet el y a nal yze t he res ults of it. We were tra p p e d i n t his 

partic ula r arr a n ge me nt beca u se of t he lac k of pi peli ne dre d ges i n o ur 

har b or. We c oi nci de d o ur o w n p o rt mai nt e na nce w or k wit h t he bi d 

t h at t h e c or ps p ut o ut f or c ha n nel w or k.

At t his partic ula r ti me, w he n t he bi d ca me i n, t he l o we st bi d t o t he 

c or ps was t he hi g hest bi d t o us. We t hre w t he bi d o ut a n d we nt wit h 

t he e q ui p m e nt r e nt al basis wit h t he s uccessf ul c o ntr act or t o t he c or ps, 

a n d it was t he o nl y wa y we c o ul d ma k e t he arra n ge me nt.

Se n at o r D o m e ni ci . Yo u ha ve n o i nte ri m feel o n w h et h er y o u are 

sa vi n g m o ne y or n ot?

Mr. S oi k e . I t hi n k we are pr o ba bl y cl ose t o bei n g i n t he per yar d 

fi g ure t h at we sa w l ast y ear.

Se nat or D o m e ni c i . Fift y-fi ve, fift y-f o ur?

Mr. S oi k e . N . I w o ul d refer t o a fi g ure of pr o ba bl y $ 1 t o $ 1. 2 5 a 

yar d. I n t he ot h er s u m ma r y we h a d $ 1. 5 5 f or t ne 1 9 7 2- 7 3 seas o n. F or 

t he 1 9 7 3- 7 4 seas o n it w as $ 1. 2 7.

Se n at o r G r a v e l . W hat I w o ul d li ke t o as k is m a y be a littl e u nc o nve nti o nal f or t his c o m mittee. T h e y d o it at t he Fe d eral P o w er 

C o m missi o n.

I k n o w Mr. D o w n s is still here re pres e nti n g i n d ust r y. If he c o ul d 

ta k e u p t he da ta t h at y o u are s u b mitti n g t o us a n d a nal yze it, I will 

i n str uct t he staff t o se n d t h at t o y o u s o y o u ca n res p o n d t o t heir 

a nal ysi s. We will get a little bit of dial o g as t o w h at reall y ha p pe n e d 

i n t h at area.

I t hi n k it is ver y si g nifica nt, a n d I t hi n k we reall y a p preciate y o u r 

c o mi n g f or w ar d. T his w o ul d certai nl y get t o t he he art of t he m atter.

Mr. S oi k e . We w o ul d certai nl y be please d t o s u p pl y a n e xtra c o p y 

of t hese s u m ma r y fi g ures a n d w o ul d welc o me t heir c o m me nts o n it.

Se nat or G r a v e l . T h at w o ul d e x pe dite it. Mr. D o w n s is o ver t here. 

If y o u c o ul d, bef ore y o u lea ve, gi ve hi m a c o p y of t his, a n d t he n if h e 

c o ul d get his or g a ni zati o n t o ma k e a n a nal ysi s of t h at, a n d t he n we 

will se n d y o u a c o p y of t h at a nal ysis i n t he mail s o y o u ca n res p o n d 

t o t h at. S o t h at wa y it w o n’t be o ne si de d.
88

Se n at o r D o m e ni ci . C o ul d I a d d o ne ot h er s u g gesti o n? I t hi n k t h at 

is a n e xcell e nt a p pr oac h. B ut I a m w o n de ri n g, si nce we d o n’t ha ve a n 

i n defi nite a m o u nt of ti me o n t he wit nes s list, Mr. C h air ma n, if we 

mi g ht n ot j oi ntl y re q uest of t he c or ps t h at t he y gi ve us a n a nal y sis, 

a n d t he n we c o ul d ma k e t h at a vail a ble t o t he m, t o o. We c o ul d get t h at 

o ut q uic kl y a n d let t he c or ps a nal yze pri vat e c o ntr act s vers us t heir 

o w n, i n ter ms of c o st.

Se nat or G r a v e l . E xcelle nt. If I c o ul d j u st p ut a ti me fra m e o n t his, 

we wa nt t his w h ole pr o ce d u re c o m plet e d b y mi d -J ul y.

T ha t mea n s, Mr. D o w n s, if y o u c o ul d ha v e s o m et hi n g bac k o n t his 

a nal ysis wit hi n a c o u ple wee ks we ca n get it t o y o u a n d gi ve y o u a 

c o u pl e wee ks t o res p o n d. T h e n we c o ul d ha v e it all bac k i n t he rec or d 

b y t h at ti me. I t hi n k t h at w o ul d be a greea ble.

I a p p reciate y o ur c o m me nt o n t he c or ps beca u se we were lea vi n g 

o ut t he vit al a ge nc y.

Mr. S oi k e . I will be ha p p y t o ma k e t he i nf o r mati o n a vaila ble. I 

w o ul d li ke t o sa y o ne f urt h er t hi n g. T h e P o rt of Gr a y s Ha r b or fi n ds 

itself i n e xa ctl y t he sa me p ositi o n t h at t he P o rt of Ne w Orle a ns f o u n d 

itself i n w he n it we nt o ut of t he dre d gi n g b usi ne ss. It has n o w g o ne 

bac k i nt o t he dre d gi n g b usi ne ss. It will ha ve a ne w dre d gi n g o pe rati o n 

as a p o rt facilit y i n J ul y or A u g u st of t his yea r. We are gi vi n g it t he 

sa m e c o nsi der ati o n.

Se nat or G r a v e l . I t hi n k t he i m p o rta nt f oc us is o n w h et h er or n ot 

it is a pr o d u ct of e xcesses o n t he pa rt of t he pri vate sect or or t he 

pr o d uct of t h e nat ur e of m o ve me nt of ca pital a n d tec h n ol o g y i n v ol v e d.

I t hi n k if we c o ul d be gi n t o ma k e t h at j u d g me nt, t he re w o ul d be t his 

a p p r oac h b y e x h u mi n g all of t hi s o n e ve r y b o d y, i n d u str y a n d t he 

c or ps a n d o ursel ve s.

T h a n k y o u ver y m uc h f or c o mi n g f or w ar d. I a p pre ciate it.

Mr. S oi k e . T h a n k y o u.

[ Mr. S oi k e’s st at e m e nt f oll o ws:]
8 8 8

P O R T O F

C O M MI S SI O N

J O H N H. S T E V E N S

Pr e si d e nt

J. N EI L L O G U E

Vi c e- Pr e si d e nt

H A N S M. BI E L S KI

H E N R Y E. S OI K E

G e n er al M a n a g e r

G R A Y S H A R B O R P. O. B O X 6 4 0, A B E R D E E N, W A S HI N G T O N 9 8 5 2 0 T E L E P H O N E 2 0 6 5 3 3- 3 6 2 0

S T A T E M E N T O F H E N R Y E. S OI K E, G E N E R A L M A N A G E R 

P O R T O F G R A Y S H A R B O R, W A S HI N G T O N

a n d

S P E A KI N G F O R W A S HI N G T O N P U B LI C P O R T S A S S N.

B E F O R E

S E N A T E S U B- C O M MI T T E E O N W A T E R R E S O U R C E S 

C O M MI T T E E O N P U B LI C W O R K S

O N

N A VI G A TI O N P R O G R A M O F T H E U. S. A R M Y C O R P S O F E N GI N E E R S 

W A S HI N G T O N, D. C .

— J U N E 1 9, 1 9 7 5 -

M r. C h air m a n:

M y n a m e i s H e n r y S oi k e . I a m t h e G e n e r a l M a n a g er o f t h e P o rt 

o f G r a y s H a r b o r. I a m s p e a ki n g h e r e f o r m y o w n p o r t a n d I h a v e b e e n d e l e ­

g at e d t o s p e a k f o r t h e W a s hi n gt o n P u b li c P o rt s A s s o c i a ti o n w hi c h r e p r e s e n t s 

t h e 5 2 p u b li c p o rt s i n t h e S t a t e o f W a s hi n g t o n .

T h e P o rt o f G r a y s H a r b o r, a n d a n u m b e r o f o t h e r P o rt s i n W a s hi n g ­

t o n S t a t e , a r e k e p t o p e n a n d v i a b l e b y t h e m ai n t e n a n c e d r e d gi n g a c c o m pli s h e d 

e a c h y e a r b y t h e C o r p s o f E n gi n e e r s .
8 8 9

A r e vi e w of t h e Pr e si d e nt' s b u d g et pr o p o s al t o C o n gr e s s f o r t h e 

Ci vil Work s Pr o gr a m of t h e C orp s of E n gi n e er s f o r fi s c al 1 9 7 6, a nd t h e 1 97 6 

tr a n siti o n q u art er, i n di c at e s t h at o p er ati o n a nd m ai nt e n a n ce f u n d s ar e t h e 

s e c on d l a r g e st it e m i n t hi s m or e t h a n 2 1/ 2 billi o n d oll a r b u d g et. T hi s 

ma ke s i t t a citl y cl e a r t h at t h e C or p s' a n n u al m ai nt e n a n ce dr e d gi n g pr o gr a m 

i s vit al t o al m o st e v er y p ort i n t h e U nit e d St at e s, a nd t o t h e U nit e d St at e s 

it s e lf i f t hi s c o u ntr y i nt e n d s t o k e ep t h e vi a bl e p o rt s y st e m i n o p er ati o n.

T he r ol e of t h e dr e d gi n g i n d u st r y i n t h e C or p s of E n gi n e er s' n a vig ati o n pr o gr a m i s o ne of t h e m o st c riti c a l i s s u e s f a ci n g U nit e d St at e s p ort s 

t o d a y.

T he c o st of m ai nt e n a n c e dr e d gi n g h as s k yr o c k et e d d u ri n g t h e p a st

f e w y e a r s.

T he C or ps of E n gi n e e r s' b u d g et pr o p o s al f o r m ai nt e n a n c e dr e d gi n g 

of t h e Gr ay s H ar b or N a vi g ati o n Pr oj e ct f o r Fi s c al 1 97 6 i s $ 1, 6 3 6, 0 0 0. 0 0.

T hi s i s t h e hi g h e st a n n u al b u d g et e sti m at e f o r m ai nt e n a n c e dr e d gi n g of t h e 

Gr ay s H ar b or N a vi g ati o n Pr oj e ct i n hi s t o r y . T he C or p s' a v er a g e c o st of 

m ai nt e n a n ce dr e d gi n g of t h e Gr ay s H ar b or F e d er al N a vi g ati o n Pr oj e ct wa s 

$ 7 8 1, 1 0 0. 0 0 p er y e ar f o r t h e t e n - y e ar p eri o d pr e c e di n g 1 97 2 w he n t h e m ai nt e n a n c e dr e d gi n g wa s d on e b y a dr e d g e o wn ed a nd o p er at e d b y t h e P ort of 

Gr ay s H ar b or w or ki n g i n c o n c ert wit h C or p s' h o p p er dr e d g e s.

T he a n n u al c o st of t h e C or ps of E n gi n e er s m ai nt e n a n c e dr e d gi n g 

of t h e Gr ay s H ar b or Pr oj e ct h as i n cr e a s e d b y 9 8 p er c e nt t hi s y e a r o v er t h e 

c o st t hr e e y e ar s a go si n c e t h e w or k h a s b e en d on e b y pri v a t e dr e d gi n g 

c o nt r a ct or s. T he c o st wa s 4 6< p er c u bi c y ar d w h en d o ne b y a p u bli cl y o wn ed 

dr e d g e t hr e e y e ar s a g o, c o mp are d wit h 9 1 p er c u bi c y ar d c o st at t h e C orp s 

a w ar d i n M ar c h, 1 9 7 5. T he f oll o wi n g s u m m ar y r e fl e ct s pri v a t e i n d u st r y 

c o st s o bt ai n e d t hr o u g h bi d di n g:

- 2 -
8 9 0

7 2 4 6t

7 3 5 4<

F Y 74 6 9<

F Y 7 5 8 0<

F Y 76 9 K

( T h e l a st y e a r of) 

( p u bli c dr e d gi n g.)

T h er e h as al s o b e en a h orr e n d o u s i n cr e a s e i n t h e c o st of dr e d gi n g 

t o t h e P ort of Gr ay s H ar b or o v er t h e p a st t hr e e- y e ar p eri o d wit h pri v at e 

dr e d gi n g c o mp a ni e s c o nt r a cti n g t h e m ai nt e n a n ce dr e d gi n g r e q uir e d b y t h e 

P ort t o k ee p a d e q u at e d e pt h s i n t h e P ort- m ai nt ai n e d s hi p b ert hi n g f a ciliti e s .

T he l a t e st pri v at e c o ntr a ct or bi d f o r dr e d gi n g f o r t h e P ort of 

Gr ay s H ar b or wa s 187 % hi g h e r t h a n t h e c o st of t hi s dr e d gi n g w h en d on e wit h 

t h e P ort- o w n e d dr e d g e f o ur y e ar s a g o.

I n 1 9 7 2, t h e l a st y e ar we di d o ur o wn dr e d gi n g of b ert h f a ciliti e s 

wit h p u bli cl y o wn ed e q ui p m e nt, t h e c o st wa s 5 4< p er c u bi c y ar d. T he l a t e st 

bi d fr o m a pri v at e dr e d gi n g c o nt r a ct or i n F e br u ar y of t hi s y e ar wa s $ 1. 5 5 

p er c u bi c y a r d. We t hr e w t h e $ 1. 5 5 p er c u bi c y ar d bi d o ut a nd w e nt o n a 

r e nt al e q ui p m e nt c o nt r a ct.

When o n e l o o k s at t h e s e dr e d gi n g c o st i n c r e a s e s, t h e fi r s t q u e sti o n i s , " Wh y di d t h e P ort q uit d oi n g it s o wn dr e d gi n g ?"

T he a n s wer i s - — t h e P ort of Gr ay s H ar b or wa s f or c e d i nt o 

t h e dr e d gi n g b u si n e s s o v e r 5 0 y e ar s a go b y C o n gr e s s, a nd f or c e d o ut of 

t h e dr e d gi n g b u si n e s s t hr e e y e ar s a go w h en t h e pr e s s ur e s of t h e pri v at e 

dr e d gi n g c o ntr a ct o r s mo ve d t h e C or p s of E n gi n e er s t o gi v e u p m o st of t h e 

pi p eli n e dr e d gi n g b u si n e s s t o t h e pri v at e c o ntr a ct or s.

O v er a h alf c e nt u r y a g o, w h en C o ngr e ss a ut h o ri z e d n a vi g ati o n i mpr o v e m ent s f o r Gr ay s H ar b or, C on gre s s r e q uir e d a c o m mitt m e nt fr o m t h e P ort

- 3 -
8 9

of Gr ay s H ar b or t o pr o vi d e a pi p eli n e dr e d g e t o d o t h e a n n u al m ai nt e n a n c e 

dr e d gi n g of t h e F e d er al N a vi g ati o n Pr oj e ct o n a r ei m b ur s a bl e b a si s a nd u n d er 

t h e C or p s' dir e cti o n.

We di d t h e C or p s' a n d o ur o wn dr e d gi n g w or k f o r 5 0 y e ar s u n til t h e 

C or ps g a ve t h e pi p eli n e dr e d gi n g w or k t o pri v a t e c o nt r a ct or s. We c o ul d n't 

aff or d t o k e ep t h e dr e d g e we h ad j u st t o d o o ur o wn dr e d gi n g w or k.

T he P ort of Gr a y s H ar b or s ee ms t o h a ve b e en t hr o w n t o t h e w ol v e s 

w h en t h e C or ps t o o k a wa y t h e dr e d gi n g w or k we h ad c o m mitt e d t o C o n gr e ss 

t o d o.

T he p o rt s i n W a s hi n gt o n St at e t h at d ep en d o n a n n u al m ai nt e n a n c e 

dr e d gi n g of w at er w a y s t o st a y ali v e ar e d e e pl y c o n c er n e d a b o ut t h e r ol e of 

t h e dr e d gi n g i n d u st r y i n t h e C or p s' n a vi g ati o n pr o gr a m. C o n gre s s s h o ul d b e 

e q u all y c o n c er n e d a b o ut t h e r ol e of t h e dr e d gi n g i n d u st r y i f t h e U nit e d 

St at e s i s t o h a v e a vi a bl e ri v e r a nd h ar b or n a vi g ati o n s y st e m wit h o u t a n

e x or bit a nt F e d er al c o st e a ch y e ar t o m ai nt ai n t hi s s y st e m.

On ce t h e p u bli cl y o wn ed pi p eli n e dr e d g e s ar e all g o n e, t h e r e w ill 

b e n o w a y t o h a v e a c h e c k o n t h e c o st of pri v a t e c o nt r a ct or pi p eli n e dr e d gi n g

O ur e x p e ri e n c e at Gr a y s H ar b or i n t h e hi g h c o st of pri v at e c o ntr a ct o r pi p eli n e dr e d gi n g, c o m p ar ed t o t h e c o st of pi p eli n e dr e d gi n g wit h 

p u bli cl y o wn ed e q ui p m e nt, di ct a t e s t h at t h e r e m u st b e p u bli cl y o wn ed e q ui pm ent of e q u al effi ci e n c y a v ail a bl e t o i n s ur e t h at t hi s N ati o n' s w at er w a y s 

ar e m ai nt ai n e d at r e a s o n a bl e c o st s.

T he C o n g r e s si o n al m or at ori u m t h at h as b e en i n e xi st e n c e o n t h e 

m o d er ni z ati o n a nd r e pl a c e m e nt of F e d er al dr e d gi n g e q ui p m e nt, f o r a n u m ber 

of y e ar s i n t h e p a st, h a s c a u s e d t h e C or ps of E n gi n e er s' dr e d gi n g e q ui p m e nt 

t o d et e ri or a t e a nd t h e r e h as b e en n o r e pl a c e m e nt of o b s ol et e e q ui p m e nt wit h 

n e w, m o d er n, m or e e ffi c i e n t e q ui p m e nt.

- 4 -

5 4 - 2 3 # 0 - 7 5 - 5 7
8 9 2

I h a v e b e e n t a l ki n g a b o ut pi p eli n e dr e d g e s t h at w or k pr ot e ct e d 

w at er s. T h er e i s a gr e at e r c o n c er n a mo ng t h e p o rt s a b o ut t h e s e a- g oi n g 

h o p p er dr e d g e s t h at w or k i n e x p o s e d w at er s a n d g e n e r all y c arr y t h e m at e ri al s 

t h e y dr e d g e u p i n t o t h e ir h o p p er s o ut t o s e a f o r d u m pi n g.

T he o b vi o u s a n d p a rtl y s u c c e s sf ul t h r u st of t h e p ri v at e dr e d gi n g 

c o ntr a ct o r s t o t a k e t h e pi p eli n e dr e d gi n g of F e d e r al w at er w a y s fr o m p u bli cl y 

o w ne d dr e d gi n g e q ui p m e nt 1 s a p p a r e ntl y n o w b ei n g dir e ct e d t o w ar d h o p p er 

dr e d g e s t o o.

I t i s o u r u n d e r st a n di n g t h at p ri v at e I n d u str y 1 s n o w b uil di n g, or 

pr o p o si n g t o b uil d , h o p p er dr e d g e s. We h a v e n o q u ar r el wit h n e w h o p p er 

dr e d g e s, s o me o ne i n t hi s c o u nt r y s h o ul d h a v e b e e n b uil di n g t h e m d u ri n g 

t h e p a st d e c a d e. M an y of t h e C or p s of E n gi n e er s' h o p p er dr e d g e s ar e o bs ol et e a n d s h o ul d b e r e pl a c e d.

T h er e s h o ul d b e a t o p p ri o rit y dir e cti o n fr o m C o n gr e s s t o t h e 

C or p s of E n gi n e e r s t o b uil d n e w h o p p er dr e d g e s s o t h er e w ill b e n e w, m o d er n, 

a n d e q u all y e ffi c i e n t p u bli cl y o wn e d h o p p er dr e d g e s t o c o m p et e wit h t h o s e 

n o w b ei n g b u il t or pr o p o s e d b y I n d u str y.

T he C or p s' W e st C o a st fl e e t of t h r e e h o p p er dr e d g e s 1 s o b s ol et e 

a n d n e e ds r e pl a ci n g. We h a v e h a d a ll t h r e e of t h e W e st C o a st C or p s' h o p p er 

dr e d g e fl e e t i n Gr a y s H a r b o r ..................... t h e " P a cifi c ", " H ar di n g" a n d " Bi d dl e "

T h e " P a cifi c ", a 5 0 0 c u bi c y a r d c a p a cit y h o p p er dr e d g e 1 s 3 8

y e a r s ol d a n d e v e n t h o u g h i t i s s c h e d ul e d f o r r e p o w e ri n g, 1t » s i z e , h u ll a n d

o t h e r p a rt s a r e s t i l l o b s o l et e. T he " H a r d i n g ", 2, 6 8 2 c u bi c y a r d c a p a c it y , 1 s 

3 6 y e a r s ol d a n d t h e " B i d dl e ", 3, 0 6 0 c u bi c y a r d c a p a cit y, 1 s 2 8 y e a r s o l d .

T h e a g e o f t h e C o r p s' W e st C o a st fl e e t o f h o p p er dr e d g e s m a k e s 1 t o b vi o u s

t h e y a r e a ll d u e f o r e a rl y r e pl a ce m e nt 1 n o r d e r f o r t h e C or p s t o h a v e m o d er n 

a n d e f fi c i e n t e q ui p m e n t 1 n t h e s e d a y s o f r a p i d l y I n c r e a si n g c o s t s .

- 5 -
8 9 3

T h e fl e x i b ilit y of C or ps h o p p er dr e d g e s i s c riti c a ll y i m p o rt a nt 

t o m ai nt ai ni n g ri v e r a nd h ar b or pr oj e ct s si n c e ma ny of t h e o c e a n e ntr a n c e s 

c a n b e dr e d g e d o nl y w he n f air w e at h er p e r mit s.

T he C or p s* h o p p er dr e d g e s c a n b e mo ve d wit hi n h o ur s n oti c e a nd 

t a k e a d v a nt a g e of w e at h er or t o m e et e m er g e n ci e s, w h er e a s, t hi s c a n n ot b e 

d o ne wit h pri v a t e c o ntr a ct or s' e q ui p m e nt wit h o ut u nr e a s o n a bl e c o st s b ei n g 

i n c urr e d.

C o n gre s s s h o ul d b e c a uti o u s n ot t o all o w a ny F e d er al s u b si di e s 

of t a x p a y er s* f u n d s f o r pri v at e h o p p er dr e d g e s t h at w ill t a k e a wa y w or k fr o m 

t h e C or ps h o p p er dr e d g e s at a hi g h er c o st of dr e d gi n g t o t h e t a x p a y er s.

C o n gr e ss s h o ul d dir e ct a p e n etr ati n g e x a mi n ati o n of t h e e x p e ct e d 

cr e wi n g a nd all ot h e r c o st s of pri v at e v er s u s p u bli cl y o p er at e d h o p p er 

dr e d g e s. A ny m aj or i n cr e a s e s i n c o st of pri v at e v er s u s p u bli c h o p p er 

dr e d gi n g c o ul d r e mo v e t h e pr e s e nt e c o n o mi c j u s ti fi c a ti o n f o r m ai nt e n a n c e 

dr e d gi n g of ma ny ri v e r a nd h ar b or p r oj e ct s. T he s p e ct a c ul a r i n cr e a s e i n 

t h e c o st of pi p eli n e dr e d gi n g i n Gr ay s H ar b or i s pr o of e n ou g h of t hi s p ot e nti al pr o bl e m.

C o n gre s s s h o ul d b e c o n c er n e d a b o ut k e e pi n g a vi a bl e w at er w a y 

n a vi g ati o n s y st e m i n t h i s c o u ntr y a s w ell a s a fl e e t of c o rr e ctl y si z e d, 

m o d er n, a nd e ffi c i e n t h o p p er dr e d g e s u n d er F e d er al c o ntr ol at all ti m e s.

T he C or p s of E n gi n e er s h a s t h e r e s p o n si bilit y t o m ai nt ai n t h e 

C o n gr e s si o n all y a ut h o ri z e d n a vi g ati o n p r oj e ct at t h e l o w e st p o s si bl e c o st 

t o t h e t a x p a y er s a nd t o h av e dr e d gi n g e q ui p m e nt a nd cr e ws a v ail a bl e i n c a s e 

of m ilit a r y n e c e s sit y. T o a c c o m pli s h t h e s e r e s p o n si biliti e s, t h e C orp s 

m u st h a ve a nd o p er at e it s o wn dr e d gi n g e q ui p m e nt.

W at er b or n e c o m merc e i s t h e lif e bl o o d of t hi s N ati o n' s ri v e r 

a nd h ar b or pr oj e c t s a nd r e pr e s e nt s mu ch of t hi s N ati o n' s t o t al e c on o my.

- 6 -
o n gr e s s s h o ul d n ot s a n c ti o n o r all o w a n y u n n e c e s s a r y a d d iti o n a l c o st s o r 

t h e r i m p e di m e nt s t o i m p air it s c o nti n u e d g r o w t h .

I a p p r e ci a t e t h i s o p p o rt u nit y o f b ei n g a bl e t o a p p e ar h e r e b e f o r e 

y o u t o d a y. T h a n k y o u ...................

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O v e A - & u t-
8 9 6

Se nat or G r a v e l . O ur ne xt wit n ess is Dr. J o h n H. Ka uf m a n n.

S T A T E M E N T O F J O H N H. K A U F M A N N, P R O F E S S O R O F Z O O L O G Y, 

U N I V E R SI T Y O F F L O R I D A

Dr. K a u f m a n n . We ha v e a l o n g state m e nt. I w o ul d li ke t o j u st 

s u m marize it f or y o u. ( See p. 8 9 9.)

I a m Dr. J o h n H. Ka uf m a n n, a pr ofe ss or of z o ol o g y at t he U ni ve rsit y of Fl o ri d a, a n d c oc hair ma n of t he S cie ntists A d vi s or y C o m mitte e 

of t he Fl o ri d a Def e n d ers of t he E n vir o n me nt.

We are i n t he u ni q u e p ositi o n of ha vi n g st u die d f or ma n y yea rs a 

pr oject i n t he C or ps of E n gi n eer s’ i nla n d na vi g ati o n pr o gra m, t he 

Cr o ss- Fl ori da Bar ge Ca nal, We b elie v e, fr o m w hat we ha v e Tea me d of 

ot h er c or p s pr ojects i n ot h er St ate s, t h at o ur e x perie nce s are t y pical 

of t he c or ps’ attit u de s a n d acti o ns i n pla n ni n g, defe n di n g, a n d b uil di n g i nla n d water w a ys pr ojects i n t he U nite d States. I w o ul d li ke t o 

s hare t his wit h y o u.

T h e pre dicte d be n efits f or t hi s ca n al ha ve bee n c o n sist e ntl y e xa g g erat e d, w hile i m p o rta nt c osts ha v e bee n i g n or e d. T h e c ost s of 

wat er w a ys pr ojects c o me o ut of t he ta x p a y er s’ p oc k ets. B ut w h o ulti m atel y recei v es t he be nefits?

T h e C or ps of E n gi n eer s s h o ul d be re mi n d e d t h at it o p erates as a 

ser va nt of t he p u blic. It s pri ma r y res p o nsi bilit y is t o assess t he 

effects of a n y w ate r w a ys p r oj ect o n t he Nati o n as a w h ole, n ot si m pl y 

o n t he s hi p pi n g i nt ere sts.

T h e m ost s h oc ki n g e xa m ple of u nac ce pta ble pr o ce d ure s b y t h e C or ps 

of E n gi ne ers has bee n its c o nti n u e d o missi o n of c ost fi g ures f or e nvir o n m e nt al da m a ges. E v er si nce t he pass a ge of t he N ati o n al E n vir o nme ntal P olic y Act i n 1 9 6 9, c o n si de rati o n of e n vir o n m e nt al c osts has 

bee n re q uire d i n t he decisi o n ma ki n g pr oc ess f or t he c or ps na vi gati o n 

pr oject s.

T he C or ps of E n gi n eer s has re p eate dl y trie d t o j ustif y t his gra ve 

o missi o n b y clai mi n g t h at it d oe s n ot k n o w h o w t o c o n vert s u c h c osts 

t o d olla rs a n d ce nts. S o it assi g ns t he m a d ollar val u e of zer o.

W hat are t he e n vir o n m e nt al c osts, a n d h o w ca n t he y be q ua ntifie d ? 

O ne p ote ntial e n vir o n m e nt al haz ar d of t he Cr oss - Fl o n da B ar g e Ca n al 

is its p ossi ble effect o n t he Fl o ri da a q uifer.

T his fra g m e nt e d la y er of li me st o n e pr o vi d es t he clea n water we 

m u st dri n k. Yet t he C or p s of E n gi nee rs sta rte d di g gi n g a great tre nc h 

t hr o u g h t he a q uifer wit h o ut e ve n st u d yi n g its h y dr ol o g y, m u c h less 

atte m pti n g t o q u a ntif y t he ris ks i n v ol ve d.

I n t he hi g hest secti o n of t he ca nal t he a q uifer w o ul d ha v e bee n 

c o nti n u o us wit h t he water of ca nal i m p o u n d m e nt s, de gra de d b y siltati o n a n d p oll uti o n.

S o t he e n vir o n m e nt al c ost s of t h e ca nal mi g ht als o i ncl u de a n a m o u nt 

e q ui v ale nt t o t h at nee d e d t o b uil d a water tre at m e nt pl a nt a d e q uate 

t o p urif y t he water pas si n g t hr o u g h t he ca n al a n d its i m p o u n d me nts.

T h e C or p s of E n gi nee rs, has c h ose n t o i g n or e t his c ost c o m plet el y. 

At t he ver y least, t he C or p s of E n gi ne ers s h o ul d ha v e i ncl u de d a lar ge 

c o nti n g e nc y fi g ure, or s h o ul d ha ve use d a hi g her disc o u nt rate a p pr o ­

priat e t o pr ojects ha vi n g s u b sta nti al ris k s as t his o ne clearl y d oes.

T his s u g ge sti o n, wit h s pecific refere nce t o t he Cr o ss- Fl ori da Bar ge 

Ca n al, was i ncl u de d i n a n official p olic y state m e nt a d o pte d b y t ne 

G o v er n o r a n d ca bi net of t he Stat e of Fl ori da o n Fe br uar y 2 0, 1 9 7 3.
8 9 7

W he n we are face d wit h t he de str ucti o n of a ri ve r, s uc h as t he 

O kl a wa ha i n Fl o ri d a, its fl o o d plai n f ore st, a n d its f a u n a, we a re face d 

wit h t he l oss of a u ni q ue a n d irre plac ea bl e trea s ur e.

H o w ca n o ne det er mi ne t he val u e of a n u ns p oile d ri ve r? Basi call y, 

we m ust det er mi ne t he c ost of re placi n g t h os e se r vices w hic h t he wil d, 

free-fl o wi n g ri ve r pr o vi d es f or ma n ki n d.

O ne of t hes e ser vi ces is fl o o d c o ntr ol. T h e u n d a m a ge d, f ore ste d 

ri v er fl o o d plai n acc o m m o dat es fl o o d waters w he n t he y occ ur a n d lets 

t he m fl o w gra d u all y bac k i nt o t he ri v er as t he le vel g oes d o w n, 

s m o ot hi n g o ut t he hi g h s a n d l o ws f or m ore p o p ulate d area s 

d o w nstr ea m.

T h e C or p s of E n gi n eer s w o ul d pref er t o destr o y t he fl o o d plai n 

f orest, fill t ne fl o o d plai n wit h rese r v oir waters, a n d t he n b uil d di kes 

a n d le ve es, da m s a n a fl o o d gat es t o c o ntr ol t he fl o o d w ate rs w hic h ha v e 

n o w h ere else t o g o.

All t he c ost of b uil di n g a n d mai nt ai ni n g t hese str uct ur es s h o ul d, 

of c o urse, be e nt ere d as o ne cat e g o r y of t he e n vir o n m e nt al c osts of 

of t he pr oj ect. B ut t he C or ps of E n gi neers i nstea d list s “fl o o d c o ntr ol” 

as a be nefit, n ot a c ost.

Als o i ncl u de d i n t he e n vir o n m e nt al c osts is t he l oss of pri me wil dlife 

ha bitat. Wil dlife has a n i m p o rta nt, q ua ntifia ble val ue t o h u nte rs a n d, 

es pe ciall y i n t he case of scarc e s pecies, e ve n m or e val u e t o t h ose w h o 

w o ul d pref er t o wat c h a n d lear n a n d a p p reciat e rat h er t h a n t o kill.

T h e her oic a n d c ostl y atte m pt s t o sa ve t he w h o o pi n g cra n e s u g g est 

t he val u e o ur s oci et y place s o n j u st o ne e n d a n g ere d s pecies. T h e l oss 

of t he f ore st wil dlife of t he O kla w a ha Ri v er Vall e y has ne v er rat e d 1 

ce nt i n t he c ost c o m p utati o n s of t he C or ps of E n gi n eer s u p t o n o w.

Fi n all y, s o me wa y m ust be f o u n d t o assi g n a d oll ar val u e t o t he 

est hetic e x perie nc e w hic h a wil d ri v er c a n pr o vi de e ac h y ea r t o h u n dre ds 

of t h o usa n d s of pe o ple sta r v e d f or a gli m p se of o ur fast- va nis hi n g 

nat ural la n d sca p e. T hi s, of c o urse, is t he ha r d est o ne, aft er all, t o 

q u a ntif y.

O b vi o usl y, ma n y of o ur citiz e ns att ac h gr eat val u e t o nat u ral 

tre as u res s uc h as t he O kl a w a ha Ri v er. T h e C or ps of E n gi ne ers ca n n ot 

be all o we d t o assi g n s uc h tre as u res a val u e of zer o.

It a p p ear s t o us t h at t he C or ps of E n gi ne ers has bee n dra g ge d 

kic ki n g a n d s crea mi n g i nt o t he are n a of p u bli c ac c o u nta bilit y. We ha ve 

bee n t ol d oc casi o nall y t h at t he c or p s is walli n g t o use m ore rati o n al a n d 

h o ne st met h o ds of e val uati n g a n d j ustif yi n g its pr oject s, b u t t h at it is 

pre ve nte d fr o m d oi n g s o b y t he p o wer of t he water wa ys l o b b y i n 

C o n gr ess.

T h e c or p s fre q ue ntl y clai m s t h at it is j u st d oi n g w h at C o n gr ess 

or de rs. It ma k es littl e differe nce t o t he citiz e n w h o is t o bla m e at 

pre se nt: t he C o n gr ess or t he C or ps of E n gi neers.

C o n g ress ha s t he p o wer t o ma k e t he c o r ps’ ci vil w or ks pr o gr a m m ore 

res p o nsi ve t o t he de m a n d s of o ur m o d er n s ociet y. We ur ge y o u t o use 

t his p o w er q ui c kl y a n d f orcef ull y.

T h a n k y o u.

Se nat or G r a v e l . D o ct or, is y o ur or ga nizati o n t he mai n or g a ni zati o n 

o p p o se d t o t he Cr o ss- Fl ori da ka r g e Ca n al?

Dr. K a u f m a n n . It w as t he first.

Se nat or G r a v e l . B ut is it still t he mai n or g a ni zati o n at t he pre se nt 

ti me?

Dr. K a u f m a n n . I w o ul d sa y we p ut m ore ti me i n it t h a n a n y b o d y 

else.
8 9 8

Se na t or Gr a v e l . I pla n t o g o d o w n t o Fl o ri d a a n d i ns pect t h at 

pr oject, or sit u ati o n, i n pers o n, a n d I w o ul d li ke t o ha v e s o me i de a of 

t he o p p ositi o n o n t his s o we w o ul d ha v e a n e q ual i n p ut as t o t he 

briefi n g pr ocess.

Dr. K a u f m a n n . O ur g r o u p has bee n t he f oc us s o far.

Se nat or G r a v e l . We will be i n c o ntact wit h y o u w he n it e ve nt u all y 

ta k es place. It will be s o me ti me t his year. I n t he mea nti m e, y o u ca n 

pre par e f or t h at.

Dr. K a u f m a n n . We wall l o o k f or war d t o t h at.

Se nat or G r a v e l . A l ot of criticis m f oc uses o n t he c or ps. It is t o u g h 

t o c o me i n a n d testif y t o us, t he C o n gr ess, a n d criticize us. B ut 

e v er yt hi n g t h e c o r ps d o es is a s a res ult of t ne p olicies t h at t he C o n gre ss 

has de vel o pe d, a n d C o n gress is t he pe o ple.

Dr. K a u f m a n n . As well as t heir i nter pretati o n of t h ose.

Se n at o r G r a v e l . Well, t heir i nt er p ret ati o n, here a gai n, if it r u ns far 

afiel d of w hat we w a nt or d o n’t wa nt, we fi n d a wa y t o bri n g t he m t o 

w h at we w a nt.

O u r e n vir o n m e ntal m at urit y is of rece nt vi nta ge. T h e c o r ps a cti vitie s 

g o bac k f or q uite a l o n g ti me. I t hi n k a l ot of ti me s if y o ur atte nti o n 

F oc used m ore o n t he C o n gr ess, it w o ul d be m ore pr o d ucti ve t ha n 

f oc use d o n t he c or ps, bec a use t h at is o ur j o b t o f oc us o n t he b ur ea u crac y. T hat is n ot t o i n dicate y o u s h o ul d st o p criti cis m of t he e xec uti ve 

pr ocess beca u se a l ot of ti m es we d o n’t d o e n o u g h of t hat.

Dr. K a u f m a n n . W he n y o u d o pass N E P A, at lea st t he y s h o ul d 

f oll o w it.

Se nat or G r a v e l . I ha v e n o q ue sti o ns o n y o ur testi m o n y. I will 

l o o k f or w ar d t o a n o utsi d e i ns p ecti o n a n d e xte nsi v e briefi n g at t h at 

ti me. We will ha v e a da y a vail a ble f or t hat.

Se nat or D o m e ni c i . I j u st w o ul d ha v e o ne c o m me nt. As I u n dersta n d it, t he c or ps is pre pari n g g ui d eli ne s f or i m ple m e nti n g t he 

Pri n ci pl es a n d St a n da r d s of t he Water Res o urce s C o u ncil t h at will 

i ncl u de t w o ne w basic asses s me nts, t h at t he y will be ec o n o mic a n d 

e n vir o n m e nt al. T h at pr o cess is bei n g de vel o pe d, a n d we will be g etti n g 

it ver y s o o n.

Dr. K a u f m a n n . We sta rte d getti n g preli mi nar y re p ort s fr o m t his. 

T hat is t he c o u rt- o r de re d st u d y.

Se nat or D o m e ni c i . I te n d t o a gree wit h Se nat or Gra v el wit h refere nc e t o t he c or ps. T he v pr o ba bl y t hi n k t he y a re d oi n g w h at C o n gr ess 

or dere d t he m t o d o. We ta k e a l o n g ti me fi n di n g o ut t hese ki n ds of 

t hi n gs, b ut I t hi n k we ar e f o c use d i n o n t he m n o w.

We nee d t o as m u c h as p ossi ble, hel p t he m o ut of t he t hic k et as 

a n y o ne else ar o u n d. T h e st at ut e is n ’t ver y clea r o n h o w t he y are t o 

fi g ure t he c ost- be nefit i n t h at area, t he area s t he y are g o o d at, or 

s o m et hi n g t he v u n derst a n d q uite well.

B ut certai nl y N E P A is n ot a pa rt of t he c ost- be nefit a nal ysis f or 

t he m. O b vi o usl y, t he y ha v e t o c o m pl y wit h it. B u t I d o n’t k n o w t h at 

t he y reall y feel t he st at ut e has sai d t he y ha v e t o n ut a val u e o n it. 

Ma y be t he ne w pr o ce d ure will ta k e care of it. Ma y be we wa nt t o 

ha v e t o g o a hea d a n d br o a de n t he stat ute.

I te n d t o a gree wit h hi m t h at we ha v e bee n wat c hi n g it g o b y w dt ho ut d oi n g m uc h a b o ut it. B ut I a p p reciat e y o ur bri n gi n g t his pr oject 

ri g ht i n f oc us as t o w here we wa nt t o g o.

Dr. K a u f m a n n . I t hi n k t he c hair m a n is ri g ht. We s h o ul d ha v e as 

m uc h t o sa y a b o ut t h at as t he c or ps d oes.
8 9 9

Se nat or G r a v e l . T h a n k y o u ver y m uc h, D oct or. 

[ Dr. Ka uf ma n n’s state me nt f oll o ws:]

t a t e m e n t o f D . Jo h n H e n r y Ka u f m a n n

M y na me is J o h n He nr y Ka uf ma n n; I a m a pr ofess or of z o ol o gy at t he U ni ­

versit y of Fl ori da i n Gai nes ville. I re pres e nt t he Fl ori da A u d u b o n S ociet y, t he 

ol dest a n d lar gest c o nser vati o n or ga nizati o n i n t he stat e, a n d t he Fl ori d a De ­

fe n ders of t he E n vir o n me nt ( F D E). F D E is a c oaliti o n of s pecialists —sci e ntists, 

la w yers, ec o n o mists, la n d pla n n ers — w h o, i n t heir c o ncer n f or o ur e n vir o n me nt, 

ha ve v ol u nteer e d t heir pr ofessi o nal k n o wle d ge a n d ti me i n or der t o get t he facts 

necessar y f or ma ki n g s o u n d j u d g me nts a n d pr o p osi n g s o u n d s ol uti o ns f or e n ­

vir o n m e ntal pr o ble ms. I a m c o-c hair m a n of t he Scie nti sts A d vis or y C o m mitte e 

f or F D E.

O ne of t he e n vir o n me ntal pr o ble ms F D E has st u die d is t he Cr oss Fl ori da 

Bar ge Ca nal ( C F B C). We are, t heref ore, i n t he u ni q ue p ositi o n of ha vi n g st u die d 

i n d e pt h f or ma n y years a pr oje ct i n t he C or ps of E n gi neers ( C O E) i nla n d na vi ga ­

ti o n pr o gra m. We bri n g t o t his heari n g s o me s u g gesti o ns base d o n o ur e x perie nce 

w hic h we t hi n k will be hel pf ul t o y o u i n e val u ati n g t he C or ps’ pr o gra m.

Briefl y, t he Cr oss Fl ori d a Bar ge Ca nal is pla n n e d t o c ut acr oss Fl ori d a fr o m 

Jac ks o n ville o n t he Atla ntic c oast t o Ya n keet o w n o n t he G ulf of Me xic o, c utti n g 

dee pl y i nt o t he a q uifer a n d destr o yi n g maj or parts of t w o free-fl o wi n g ri vers, 

t he Wit hlac o oc hee a n d t he O kla wa ha.

We belie ve, fr o m w hat we ha v e lear ne d of ot her C or ps of E n gi neers pr oje cts i n 

ot her states, t h at o ur e x perie nces wit h t he C or ps of E n gi neers i n t he case of t he 

Cr oss Fl ori da Bar ge Ca nal are t y pi pal of t heir attit u de s a n d acti o n s i n pla n ni n g, 

defe n di n g a n d b uil di n g i nla n d water wa ys pr ojects all o ver t he nati o n.

T he pre dicte d be nefits f or t he Cr oss Fl ori da Bar ge Ca nal ha ve bee n c o nsiste ntl y 

e xa g gerate d, w hile i m p ort a nt c osts ha ve bee n d o g ge dl y i g n ore d i n s pite of c o n ­

ti n u e d call f or t heir i ncl usi o n b y c o ncer ne d citize ns. N o o ne dis p ut es t he fact t h at 

t he c osts of w ater wa ys pr ojects c o mes o ut of t he ta x pa y ers’ p oc kets. B ut t her e is 

dis p ute a b o ut w h o ulti m atel y recei ves t he be nefits. T ne C or ps of E n gi neers s h o ul d 

be re mi n de d t h at it o perates as a ser va nt of t h e p u blic. Its pri m ar y res p o n si bilit y 

is t o assess t he effects of a n y water wa y pr oje ct o n t he nati o n as a w h ole, n ot si m pl y 

t he narr o w er effect o n t he water w a ys i nterests.

All t o o ofte n, t he C or ps cf E n gi neers a n d ot hers pr o m oti n g na vi g ati o n pr ojects 

list t he gr oss tra n s p ortati o n, recreati o n or la n d- e n ha nce m e nt be nefits as t h o u g h 

t he y were net be nefits, wit h o ut s u btracti n g t he c osts ( or be nefits f ore g o ne) re ­

q uire d t o ac hie ve s uc h " be ne fits”. T he Cr oss Fl ori d a Bar ge Ca nal pr oje ct a b o u n ds 

wit h e xa m ples of t his tec h ni q ue of be nefit p uffer y. F or e xa m ple, la n d e n h a nce me nt 

be nefits were clai me d f or ne w s h oreli ne pr o d uce d b y t w o i m p o u n d m e nts of t he 

O kla wa h a Ri ver wit h o ut s u btracti n g t he m ore t h a n 100 miles of ri ver fr o nt 

pr o p ert y fl o o de d o ut a n d effecti vel y destr o ye d b y t hese sa me i m p o u n d m e nts.

Recre ati o n “ be nefits” f or t he Cr oss Fl ori d a Bar ge Ca nal were calc ulate d o n t he 

basis of t otal ( gr oss) a nti ci pate d or o bser ve d recre ati o n al use of t he pr oject, 

i g n ori n g t he fact t hat a p pr o xi m atel y 80 % of t he o bser ve d usa ge was b y resi d e nts 

of t he s urr o u n di n g fe w c o u nties w h o ha d merel y tra nsferre d t heir fis hi n g a n d 

b oati n g fr o m near b y la kes t o t he pr oje ct i m p o u n d me nt ( La k e O kla w a ha). T h at 

is, a n y " gai n ” f or t he pr oj ect fr o m t he recreati o nal usa ge b y t hese pe o ple re pre ­

se nte d a "l oss” t o La ke Ge or ge, Ora n ge La ke, a n d ot hers of t he h u n dr e ds of nat ­

ural la kes i n t he vici nit y of t he pr oject.

Si milarl y, tra ns p ort ati o n " be ne fits” f or t he Cr oss Fl ori da Bar ge Ca nal were 

calc ulate d s olel y o n t he basis of a nti ci pate d t o n n a ge a n d "sa vi n gs” per t o n, 

w h oll y i g n ori n g t he pr o ba ble ne gati ve effect of a fe derall y-s u bsi dize d c o m petit or 

o n t he re gi o n’s alrea d y belea g u ere d railr oa ds. T he net res ult c o ul d well be t hat we, 

t he ta x pa y ers, w o ul d e n d u p ha vi n g t o f o ot t he bill f or s u bsi dies of b ot h f or ms of 

tra n s p o rtati o n.

Tra n s p ortati o n ec o n o mists ha ve re pe ate dl y calle d f or user c har ges o n fe deral 

water w a ys pr oject s, a p ositi o n officiall y e n d orse d b y t he State of Fl ori da a n d t he 

Nati o nal Water C o m missi o n, b ut t he C o n gress h as s o fa r faile d t o f oll o w t hi s rec ­

o m me n dati o n. I n t he w or ds of U ni v ersit y of Fl ori da ec o n o mist, Dr. Jer o m e 

Milli ma n:

" Pr o ba bl y n o ot her si n gle meas ure w o ul d c o ntri b ute m ore t o t he att ai n me nt of 

e q uit y a n d efficie ncy i n t he C or ps of E n gi neers pr o gr a m of i nla n d na vi g ati o n t ha n 

t he a p plic ati o n of user c har g es.”

A n ot her o ut date d a n d prej u dicial practi ce is u si n g rate s rat he r t ha n tr u e c osts 

i n c o m p uti n g ca nal s hi p pi n g be nefits. T he C or ps has e x presse d a willi n g ness t o
9 0 0

use t he a p pr o priate pr oce d ures, b ut clai ms it is pre ve nte d fr o m d oi n g s o b y t he 

Tra n s p ortati o n Act of 1966. I e x pect y o u will recei ve e x pert testi m o n y o n t his 

p oi nt fr o m ec o n o mists later i n t his heari n g.

T he m ost s h oc ki n g e xa m ple of u nacc e pta ble pr oce d ures b y t he C or ps of E n ­

gi neers has bee n its c o nti n ue d o missi o n of c ost fi g ures f or e n vir o n me ntal da ma ges. 

E ver si nce t he passa ge of t he Nati o nal E n vir o n m e ntal P olic y Act i n 1969, 

c o nsi d erati o n of e n vir o n me ntal c osts has bee n re q uire d i n t he decisi o n m a ki n g 

pr ocess f or t he C or ps na vi gati o n pr ojects. T he C or ps of E n gi neers has re pe ate dl y 

trie d t o j ustif y t his gra ve o missi o n b y clai mi n g t h at it d oes n ot k n o w h o w t o 

c o n v ert s uc h c osts t o d ollars a n d ce nts. S o it assi g ns t he m a d ollar val ue of $0.00.

T he deter mi n ati o n of h o w t o q ua ntif y e n vir o n me ntal c osts is o ne of t he maj o r 

pr o ble ms t o w hic h t he C or ps of E n gi neers m ust a d dress itself. W hile t her e ha ve 

bee n ma n y s u g gesti o ns b y vari o us parties, at pres e nt n o o ne mec ha nis m has bee n 

a gree d u p o n. T he w h ole area of t he q ua ntificati o n of e n vir o n me nt al val ues is i n 

nee d of i nte nsi v e st u d y. T he C or ps, h o we ver, has d o ne n ot hi n g t o a d va n ce t he 

eff ort.

I n t he case of t he Cr oss Fl ori da Bar ge Ca nal, a Fe deral J u d ge has re q uire d t his 

e n vir o n me nt al c ost e sti mate. T hr o u g h t he years i n c o m p uti n g t he vari o us Be nefit/ 

C ost rati os o n t he ca nal, n ot o ne ce nt has bee n a d de d t o t he ca nal’s c ost f or e n ­

vir o n m e ntal val ues w hic h w o ul d be l o st beca use of ca nal c o nstr ucti o n.

W hat are t he e n vir o n me ntal c osts a n d h o w ca n t he y be q ua ntifie d ? O ne e asil y 

i de ntifia ble p ote ntial e n vir o n me nt al haz ar d ( p ot e nti al c ost) of t he Cr oss Fl ori da 

Bar ge Ca nal c o ncer ns its p ossi ble effect o n t he Fl ori da n A q uifer. T his a q uifer 

pr o vi des t he j ustl y fa m o us p ure water f or s pri n gs s uc h as Sil ver S pri n gs w hic h 

are of si g nifica nt —a n d q ua ntifia ble —c o m mercial a n d recreati o nal val ue. Far 

m ore i m p orta nt, t he a q uifer pr o vi des t he clea n water we m ust dri n k. Yet t he 

C or ps of E n gi neers sta rte d di g gi n g a great tre n c h (t he Cr oss Fl ori d a Bar ge 

Ca nal) t hr o u g h t he a q uifer wit h o ut e ve n st u d yi n g its h y dr ol o g y, m uc h less 

atte m pti n g t o q ua ntif y t he ris ks i n v ol ve d! (I n c o n necti o n wit h a c o urt or dere d 

E n vir o n me ntal I m pact State me nt, t he C or ps of E n gi neers is n o w ha vi n g t hese 

st u dies ma de.) I n t he s h ort se g me nt n o w c o m plete d t hr o u g h t he a q uifer at t he 

wester n ter mi n us of t he Cr oss Fl ori d a Bar ge Ca nal, t he p ote ntial haza r d has 

bec o me a r ealit y. Val ua ble fres h water w hic h f or merl y k e pt s ea water fr o m m o vi n g 

i nla n d has bee n ble d i nt o t he G ulf of Me xic o a n d l ost. Acc or di n gl y, t he fres h 

water s u p pl y h as di mi nis he d a n d s alt wat er has m o ve d i nla n d i n t h e Ya n keet o w n, 

Fl ori da area ( a pr ocess k n o w n as salt w ater i ntr u si o n). As a re s ult, t he Ya n keet o w n 

m u nici pal wells ha ve ha d t o be m o v o d (a c ost w hic h has bee n i g n ore d b y t he 

C or ps).

F ort u natel y, a c o urt i nj u ncti o n a n d a Presi d e ntial Or der st o p p e d c o nstr ucti o n 

of t he Cr oss Fl ori d a Bar ge Ca nal bef ore it reac he d t he hi g her, t hic k er part of t h e 

Fl ori da n A q uifer. Here t he p ure water of t he a q uif er w o ul d ha ve bee n c o nti n u o us 

wit h t he water of ca nal i m p o u n d me nts, c h o ke d wit h wee ds a n d al gae, s u bject t o 

i ncreas e d siltati o n, a n d c o nti n u all y t hre ate ne d wit h p oll uti o n fr o m bar ge o pera ­

ti o ns. S o t he e n vir o n m e ntal c osts of t he ca nal mi g ht als o i ncl u de a n a m o u nt 

e q ui vale nt t o t h at nee de d t o b uil d a wate r tre at m e nt pla nt a de q uate t o p urif y 

t he water passi n g t hr o u g h t he ca nal a n d its i m p o u n d m e nts. T he C or ps of E n gi neers 

has c h ose n t o i g n ore t his c ost c o m pl etel y. At t h e ver y least, t he C or ps of E n gi neers 

s h o ul d ha ve i ncl u de d a l ar ge c o nti n ge n c y fi g ure, or s h o ul d ha ve wai ve d t he ri g ht 

t o use t he s o-calle d “ris kless” disc o u nt rat e i n fa v or of a hi g her rate t o be use d 

wit h pr oje cts ha vi n g s u bsta ntial ris ks as t his o ne clearl y d oes. T his s u g gesti o n, 

wit h s pecific refere nce t o t he Cr oss Fl ori d a Bar ge Ca nal, was i ncl u d e d i n a n 

official p olic y state m e nt a d o pt e d b y t he G o ver n or a n d Ca bi net of t he State of 

Fl ori da o n Fe b r uar y 20, 1973.

W he n we are face d wit h t he destr u cti o n of t he O kla wa h a Ri ver, we are face d 

wit h t he l oss of a n irre place a ble treas ure, a u ni q ue bi ol o gical s yst e m, a wil d se mitr o pical ri ver of great bea ut y a n d i n ha bite d b y a ric h a n d e xciti n g fa u na. F or 

t h o usa n ds of years, t he O kla wa ha Ri ver mea n dere d bac k a n d f ort h f or 60 miles 

t hr o u g h a valle y 45 miles l o n g a n d a b o ut 1 mile wi de, st u d de d wit h bea utif ul, 

je wel-li ke s pri n gs. T he ri ver fl o we d t hr o u g h a n u n br o ke n ri ver- b ott o m f orest of 

deci d u o us har d w o o d s s uc h as as h, t u pel o, hic k or y, a n d ma ple —a f orest a da pte d 

t o peri o dic fl o o di n g as t he ri ver le vel fl uct uate d wit h seas o nal rai ns. H o w ca n o ne 

deter mi n e t he val ue of a n u ns p oile d ri ver ? Basicall y, we m ust deter mi ne t he c ost 

of re placi n g t h ose ser vices w hic h t h e wil d, free-fl o wi n g ri ver pr o vi des f or m a n ki n d 

wit h o ut c ost.

O ne of t hese ser vices is fl o o d c o ntr ol. T he u n da m a ge d, f oreste d ri ver fl o o d plai n 

acc o m m o dates fl o o d waters w he n t he y occ ur a n d lets t he m fl o w gra d uall y bac k i nt o 

t he ri ver as t he le vel g oes d o w n, s m o ot hi n g o ut t he hi g hs a n d l o ws f or m ore p o p u ­

late d areas d o w nstrea m. T he C or ps of E n gi neers w o ul d prefer t o destr o y t he
9 0

fl o o d plai n f orest, fill t h e fl o o d plai n wit h reser v oir waters, a n d t he n b uil d di kes a n d 

le vees, da ms a n d fl o o d gates t o c o ntr ol t he fl o o d waters w hic h ha ve n o w here else t o 

g o. All t he c ost of b uil di n g a n d mai ntai ni n g t hese str u ct ur es s h o ul d, of c o urse, be 

e ntere d as o ne cate g or y of t he e n vir o n me ntal c osts of t he pr oject. B ut t he C or ps of 

E n gi neers i nste a d lists “fl o o d c o ntr ol” as a be nefit, n ot a c ost.

Also i ncl u de d i n t he e n vir o n me ntal c osts is t he l oss of pri me wil dlife ha bitat. 

T he O kla wa ha Ri ve r valle y is t he ric hest wil dlife ha bit at i n t he Ocala F orest 

re gi o n. It is o ne of t he last ref u ges f or scarce s pecies s uc h as t he Fl ori da pa nt her, 

t he blac k bear, a n d t he wil d t ur k e y w hic h re q uire lar ge c o nti n u o us tra cts of u n ­

dist ur be d f orest. S o me s pecies are f o u n d i n t hi s area o nl y i n t he ri v eri ne f orest, a n d 

if it is destr o ye d, t he y, t o o, will be g o ne. F or ot her, m ore wi de ra n gi n g s pecies s uc h 

as t he gre y f o x, t he racc o o n, t he b o b cat a n d t he w hitetail deer, t he O kla wa ha 

valle y is a n i m p orta nt seas o nal ref u ge a n d f o o d s o urce, a n d a c orri d or of m o ve ­

me nt. T he ri ver a n d its ba n ks are a h o me f or a q uatic a ni mals s uc h as t he li m p ki n, 

t he otte r, a n d t he alli gat or. T hese a ni mals are pri maril y ri ver e d ge s pecies t h at 

sta y cl ose t o c o ver. T he y ha ve little use f or t he lar ge e x pa nse of flat water i n reser ­

v oirs. Alt h o u g h ca nal b uil ders li ke t o tell us t hat t here will be m ore a q uatic ha bit at 

create d i n t he O kla wa ha valle y, t here will be e ve n less s h oreli ne wit h t he reser v oir 

t ha n t her e was wit h t he ori gi nal mea n d eri n g ri ver. T heref ore, t here will be less 

ha bit at f or t he desira ble s pecies nati ve t o t his area. Destr u cti o n of t he ri veri ne 

f orest w o ul d effecti vel y g ut t he e ntire ec os yste m as a pri me wil dlife ha bitat.

Wil dlife has a n i m p o rta nt, q ua ntifia ble val ue t o h u nt ers, a n d, es peciall y i n t he 

case of scarce s pecies, e ve n m ore val ue t o t h ose w h o w o ul d prefer t o watc h a n d 

lear n a n d a p pr eciat e r at h er t ha n t o kill. T he her oic a n d c ostl y att e m pts t o sa ve t he 

w h o o pi n g cra ne s u g gest t h e val u e o ur s ociet y places o n j u st o ne e n da n g ere d s pecies. 

T he l oss of t he f orest wil dlife of t he O kla wa ha Ri ver valle y has ne ver rat e d It i n 

t he c ost c o m p utati o ns of t he C or ps of E n gi neers u p t o n o w.

Fi nall y, s o me wa y m ust be f o u n d t o assi g n a d ollar val ue t o t he est hetic e x ­

perie nce w hic h a wil d ri ver ca n pr o vi d e eac h year t o h u n dr e ds of t h o us a n ds of 

pe o ple star ve d f or a gli m pse of o ur fast va nis hi n g nat ural la n dsca pe. Val ue i n ­

creases wit h sca rcit y — we alrea d y ha ve o ver 200, 000 acres of flat wat er la kes wit hi n 

30 miles of R o d m a n Reser v oir al o ne, b ut o ur s u p pl y of wil d ri vers is ver y s mall 

a n d d wi n dli n g fast. T he Stat e of Fl ori da officiall y stat e d, Fe br uar y 20, 1973:

“ C o nsi deri n g:

“(1) T hat reser v oirs ofte n re pre se nt drastic m o dificati o ns t o nat ural s yste ms a n d 

ma v res ult i n certai n u n desira ble ec ol o gical c ha n ges; a n d

“(2) T hat Fl ori da is blesse d wit h a vast n u m b er of nat ural la kes, we see n o nee d 

f or a n accelerati o n of ne w, l o n g-ter m o pe n water, reser v oir pr o gra m s i n t his 

State.” 

A d mitte dl y q ua ntif yi n g a n est hetic e x perie nce i n ter ms of m o ne y is diffic ult, 

b ut a n att e m pt m ust be ma de. Per h a ps t he val ue of a wil d ri ver ca n be t o s o me 

de gree a p pr eciate d b y c o nsi deri n g t he p o p ularit y of —a n d m o ne y pai d f or — b o at 

ri des s uc h as t he Sil ver S pri n gs “j u n gle cr uise” w hic h c o vers o nl y a s mall secti o n 

of o ne tri b utar y of t h e O kla wa ha. Or c o nsi der t h e a m o u nt s pe nt t o b uil d —a n d t he 

a m o u nt s pe nt eac h year i n a d missi o ns t o see —a c o m pletel y artificial ri ver wit h 

mec ha nical a ni mals i n Dis ne yla n d. Or c o nsi der t he a m o u nt pai d eac h year b y 

o ur citize ns t o mai ntai n a n d t o visit o ur Nati o n al Par ks. C o nsi der t he a m o u nts 

d o nat e d t o s u p p ort t he or ga niz ati o ns fi g hti n g t o sa ve t he fe w' re m na nts of o ur 

nat ural herita ge —t h e Wil der ness S ociet y, t he A u d u b o n S ociet y, t he Issac Walt o n 

Lea g ue, t he Sierra Cl u b, t he E n vir o n m e ntal Defe nse F u n d, a n d t he Nati o nal 

Wil dlife F e derati o n, n ot t o me nti o n l ocal a n d state gr o u ps li ke Fl ori d a Defe n ders 

of t he E n vir o n me nt. A n d c o nsi der t he milli o ns of d ollars w ort h of free ser vices 

d o nate d t o t hese gr o u ps b y citi ze ns i n e ver y cate g or y fr o m secretaries t o scie ntists. 

O b vi o usl y, ma n y of o ur citize ns att ac h great v al ue t o nat ural treas ures s uc h as t h e 

O kla wa ha Ri ver. T he C or ps of E n gi neers ca n n ot be all o we d t o assi g n s uc h 

treas u res a val ue of $0.00.

T his has bee n a brief s u m m ar y of a fe w of t he deficie ncies we ha ve e nc o u ntere d 

i n t he C or ps of E n gi ne ers’ ha n dli n g of its i nla n d water w a ys pr o gra m. O nl y ver y 

rece ntl y has t he C or ps ma de c ha n ges i n its ha n dli n g of s uc h pr oje cts as t he Cr oss 

Fl ori da Bar ge Ca nal, a n d t he n o nl y u n de r great pr otest w he n f orce d b y t he 

c o urt s a n d t he risi n g ti de of o utr a ge d p u blic o pi ni o n. It a p pe ars t o us t h at t he 

C or ps of E n gi neers nas bee n dra g ge d kic ki n g a n d screa mi n g i nt o t he are n a of 

p u blic acc o u nta bilit y. We ha ve bee n t ol d occasi o nall y t h at t he C or ps is willi n g

• Pr o p o se d c o m me nts (re vise d) o n t h e re vie w dr aft of pr o p o se d re p o rt of t he Nati o n al 

Water C o m missi o n of N o ve m ber 1 9 7 2. Pa sse d b y Fl o ri d a Ca bi net — Fe b. 2 0. 1 9 7 3.
9 0 2

t o use m ore rati o nal a n d h o nest met h o d s of e val uati n g a n d j ustif yi n g its pr oje cts, 

b ut t h at it is pre v e nte d fr o m d oi n g s o b y t he p o wer of t he water wa ys l o b b y i n 

C o n gress. T he C or ps fre q ue ntl y clai ms t h at it is j u st d oi n g w hat C o n gress or ders. 

It ma kes littl e differe nce t o t he citize n w h o is t o bla me at pres e nt —t h e C o n gress 

or t he C or ps of E n gi neers. C o n gress has t he p o wer t o ma ke t he C or ps’ ci vil 

w or ks pr o gra m m ore res p o nsi ve t o t he de ma n d s of o ur m o der n s ociet y. We ur ge 

y o u t o use t his p o wer q uic kl y a n d f orcef ull y.

t a t e m e n t o f Fl o ri d a D e f e n d e r s o f t h e E n v i r o n m e n t R e l a t i n g t o t h e

r o s s - F l o ri d a Ba r g e Ca n a l Pr o j e c t

Me m bers of Fl ori da Defe n ders of t he E n vir o n m e nt ha ve bee n st u d yi n g t he 

Cr oss- Fl ori da Bar ge Ca nal f or ma n y years, a n d are t h us ver y fa mili ar wit h t he 

effects of o ne of t he C or ps of E n gi neers’ i nla n d na vi gati o n pr ojects. T he Cr ossFl ori da Bar ge Ca nal ser ves as a clear e xa m ple of t he i m pacts of C or ps of E n gi ­

neers pr oje cts all o ver t he nati o n o n o ur e n vir o n me nt.

T he Cr oss- Fl ori da Bar ge Ca nal was desi g ne d t o c ut 100 ft. i nt o t he Fl ori d a n 

a q uifer, t he p or o us, fra g me nte d la yer of li mest o ne t h at pr o vi des o ur fres h water. 

T h us ca nal waters, de gra de d b y siltati o n a n d p oll uti o n, w o ul d be c o nti n u o us 

wit h t he a q uifer a n d m o ve f or u n k n o w n dista n ces t hr o u g h it. N o a de q uate st u d y 

was ma de, i n pla n ni n g t he ca nal, of t h e pr o ba ble effects of t his i ntr usi o n i nt o o ur 

water s u p pl y, a n d n o c osts were assi g ne d f or met h o d s of pre ve nti n g or c orrecti n g 

a n y da ma ge t h at mi g ht occ ur.

T he Cr oss- Fl ori da Bar ge Ca nal will als o destr o y o ne of t he fe w re m ai ni n g wil d 

ri vers i n o ur part of t he c o u ntr y. T he O kla wa h a Ri ver a n d its fl o o d plai n f orest 

are t he heart of a n i m p orta nt re gi o nal ec os yste m. I n t he destr u cti o n of t h e O kla ­

wa ha valle y we are face d wit h t he l oss of a n irre placea ble treas ure : a u ni q ue 

bi ol o gical s yst e m, a wil d se mi-tr o pical ri ver of g reat bea ut y. T he u ns p oile d O kla ­

wa ha mea n der e d t hr o u g h a 45 mile l o n g valle y, st u d d e d wit h je wel-li ke s pri n gs. 

T he ri ver fl o wed t hr o u g h a n u n br o k e n f orest of deci d u o us har d w o o ds, s uc h as 

as h, ma ple a n d hic k or y, i n ha bite d b y a ric h, e xciti n g, a n d scie ntificall y val ua ble 

fa u na. T his is a n i nte g rate d, li vi n g s yste m t h at t o o k milli o ns of years t o e v ol ve, 

a n d w hic h, o nce l ost, ca n n ot be re place d. Destr ucti o n of t he ri veri ne f orest w o ul d 

effecti vel y g ut t he e ntir e ec os yste m as a pri me wil dlife ha bitat.

Areas s uc h as t his wil d ri ver valle y ser ve a n i ncreasi n gl y vital f u ncti o n i n o ur 

e ver m ore mec ha ni ze d s ociet y. T he y pr o vi d e pe o ple wit h a n o p p ort u nit y t o 

mai ntai n a n d re ne w t heir c o ntact wit h t he n at u ral w orl d fr o m w hic h we ca m e a n d 

o n w hic h we will al w a ys de pe n d —t o see a n d feel, t o c o nte m plate, a n d a p pre ciate. 

T his is r ecreati o n i n its m ost literal se nse —a tr u e re-creati o n of t h e s pirit.

A n d w hat d oes t he C or ps of E n gi neers offer us i n ret u r n?

A massi ve ditc h acr oss n ort h ce ntr al Fl ori da s pecificall y desi g ne d t o be nefit 

o nl y water wa y s hi p per s, a n d n ot t he p u blic at lar ge, b ut f u n de d al m o st e ntirel y 

b y t he U nite d Stat es ta x pa yer. F ort u n atel y t he preli mi n ar y res ults of a n ec o n o mic 

rcst u d y of t he pr oj ect s h o w it t o be hi g hl y u nec o n o mical. ( See atta c he d article 

fr o m t he St. Peters b ur g Ti mes, J u n e 15, 1975.)

T he o nl y re mai ni n g alle ge d " be n efits” of t he pr oje ct are fl o o d c o ntr ol — n o w 

n ot e ve n seri o usl y c o nte m plate d b y t he C or ps —a n d " ne w ” recreati o n 

o p p ort u nities.

R o d m a n Reser v oir, alrea d y c o m plete d i n t he ce nter of t he O kla w a ha Valle y 

s h o ws us e xactl y w h at t his mea ns. M uc h of t h e f orest was cr us he d i nt o t he m u d, 

a n d t he valle y was i n u n date d b y t he reser v oir waters, killi n g t he re mai ni n g trees. 

T he s hall o w, n utrie nt -ric h waters ha ve pre di cta bl y bec o me c h o ke d wit h water 

wee ds, i ncl u di n g H y drilla, f or w hic h t here is n o k n o w n ec o n o mical c o ntr ol. 

T he C or ps a d mits n o w t h at it has n o s ol uti o n f or t he a q u atic wee d pr o ble m i n 

ca nal waters. T h u s a n y p ote ntial recreati o nal use of t hese waters f or b oati n g or 

fis hi n g will be s e verel y c urtaile d.

B ut f or g etti n g t he gra y f orest of dea d trees a n d i g n ori n g t he wall-t o- wall water 

wee ds, w hat be nefits w o ul d we ha ve e nj o y e d if t he ca nal i m p o u n d m e nts ha d 

re mai n e d as descri be d i n t he C or ps’ press releases? We w o ul d gai n o ne m ore 

s hall o w la ke i n a re gi o n t h at alrea d y has o ver 200,00 0 acres of s uc h la kes wit hi n 

30 miles of R o d m a n Reser v oir. A n d we w o ul d l ose a wil d a n d sce nic ri ver valle y 

a n d its de p e n d e nt wil dlife —a r es o urce alre a d y i n s h ort s u p pl y a n d d wi n dli n g fast.

T here ca n be n o e xc use f or t he destr ucti o n of s uc h val ua ble a n d irre plac ea ble 

res o urces b y t he C or ps of E n gi neers. S urel y t he C o n gress ca n de vise stat ut or y 

met h o d s a n d c o n strai nts f or pr otecti n g t his Nati o n’s v ast nat ural herit a ge wit h o ut 

sacrifici n g t he li veli h o o d of it s citize ns. If we m a y offer o nl y o ne s u g gesti o n, it is 

t h at t h e C or ps be rej u ve nate d wit h i n di vi d uals w h o ha ve a res pect a n d a se nsiti vit y 

f or t his c o u ntr y’s e n vir o n me nt al herita ge, a n d t h at t he y be c o n sta ntl y mi n df ul
9 0 3

of t he vast destr ucti ve p o wer p ossesse d b y t he mac hi ner y of a si n gle a ge nc y of 

G o ver n me nt.

( Pr o m t he St. Peters b ur g, Fla. Ti mes, J u n e 1 5. 1 9 7 5]

a r g e Ca n a l St u d y Sh o w s Co s t Do u b l i n g

( B y Sta n Wit wer, St. Peters b ur g Ti mes Staff Writer)

I n its m ost rece nt stat us re p ort, t he U. S. Ar m y C or ps of E n gi neers esti m ates 

t h at it w o ul d c ost $ 3 1 8- millio n, f or c o nstr u cti o n al o ne, t o c o m plet e t he n o wd or m a nt Cr oss- Fl ori da Bar ge Ca nal.

A 5 0- year pr ojecti o n of t he c osts —i ncl u di n g c o nstr u cti o n, mai nte na n ce, o pera ­

ti o n a n d i nter est —i n dicates a t ot al f or t h at "ec o n o mic lifeti m e” of m ore t ha n 

$ 1. 3- billi o n.

T hese fi g ures were c o m pile d t o a d vise C o n gress, w hic h m ust deci de w het h er t he 

ca nal is t o be c o m plete d or a ba n d o ne d. T he i nf or mati o n c asts seri o us d o u bt o n t he 

feasi bilit y of c o m pleti o n.

F or e xa m ple, $ 3 1 8- milli on t o c o m plete t he u nfi nis he d t w o-t hir d s of t he ca nal 

wit h t he ori gi nal pla n, is al m ost d o u ble t he $ 1 6 5- milli o n esti mat e f or t he e ntire 

pr oject w he n it was sta rte d i n t he earl y 1 9 60s.

T he re p ort als o c o ntai ns t he c o ncl usi o n t h at d ollar be nefits t o s hi p pers usi n g 

t he ca nal w o ul d be $ 1 2. 5- milli o n a y ear less t ha n t he c ost —a " deficit” of m ore t ha n 

$ 6 0 0- milli o n o ver t he ca nal’s 5 0- year ec o n o mic life.

W hat s o meti mes are referre d t o as "realistic ” c ost esti m ates are re q uire d b y 

C o n gress bef ore v otes are ta ke n o n a n y maj or p u blic w or ks pr oje ct. I n t he case 

of t he ca nal, t hese i ncl u de n ot o nl y c o nstr ucti o n, mai nte na n ce a n d o perati o n 

c osts, b ut i ntere st. T he i nterest is a n esti mat e of w hat t he fe deral f u n ds w o ul d 

ear n if t he y were i n veste d i nstea d of bei n g s pe nt o n a n o n-re ve n ue pr o d uci n g 

pr oject. As a f e deral water wa y, use of t he ca nal w o ul d be free t o s hi p pers.

T he re p ort’s ke y stati stic is t h at t he ca n al’s realistic c ost w o ul d a m o u nt t o 

$ 2 6. 4- milli o n a year f or 5 0 years. T his w o ul d brea k d o w n t o a p pr o xi mat el y 

$ 3 1 8- milli on f or c o nstr u cti o n, $ 8 0 0- milli o n f or i nterest a n d $ 1 3 0- milli o n f or 

mai nte na n ce a n d o perati o n.

S h o ul d C o n gress deci de t o fi nis h t he ca nal, b ut c ha n ge its r o ut e t o offset 

e n vir o n m e ntalists’ o bjecti o ns t o parts of t he ori gi nal c o urse, t he esti m ates w o ul d 

i ncrease b y as m uc h as $ 7- milli on a year. T he re p o rt i ncl u des a c ost a nal ysis of 

fi ve alter nat e r o utes, all of t he m i n t he area east of Orla n d o.

T he m ost disc o ura gi n g ne ws f or ca nal pr o p o ne nts is t he differe nce bet wee n 

w hat it w o ul d c ost t o b uil d t he ca nal a n d t he be nefits it w o ul d pr o vi de f or users.

A. T. Kear n e y I nc. of C hica g o, c o ns ulta nts t o t he C or ps., esti m ates t h at t hese 

a n n ual be nefits —t h e d ollar sa vi n gs f or s hi p p ers w h o use t he ca nal i nste a d of se n di n g car g oes a n a d diti o nal 6 0 0 miles ar o u n d t he ti p of Fl ori da — w o ul d t otal a b o ut 

$ 1 3. 9- milli o n o n t he basis of t o d a y’s pre dicta ble car g oes. T he $ 1 2. 5- milli o n 

" deficit” of t his fi g ure vs. pr oje cte d c osts a p pear s t o ar g ue str o n gl y a gai n st 

c o m pleti o n.

A bar ge ca nal acr oss Ce ntral Fl ori da, pr o vi di n g a s h orter, pr ot ecte d r o ute f or 

s hi p pi n g fr o m t he Atla ntic Ocea n t o t he G ulf of Me xic o, was first e n visi o ne d m ore 

t ha n 1 50 years a g o. W or k was be g u n o n s uc h a water wa y d uri n g t he Fra n kli n D. 

R o ose velt A d mi nistrati o n b ut a ba n d o ne d beca use of desi g n pr o ble ms. C o n gress 

a ut h orize d t he pres e nt ca nal i n 1 94 2, t o stretc h fr o m t he St. J o h n s Ri v er at 

Pal at k a t o t he G ulf of Me xic o at Ya n keet o w n, a dista nc e of a b o ut 1 1 0 miles. It 

was t o be 1 5 0 feet wi de, 1 2 feet dee p a n d i ncl u de t hree da ms a n d fi ve l oc ks.

Presi de nt L y n d o n B. J o h ns o n la u nc he d c o nstr ucti o n i n F e br u ar y 1 9 64. T w e nt yfi ve miles of t he ca n al were e xca vate d a n d t hree da ms a n d t hree l oc ks were fi nis he d, 

at a c ost of a b o ut $ 6 0- millio n. T he n Presi de nt Ni x o n st o p p e d w or k b y e xec uti ve 

or der i n J a n uar y 1 9 71. Ni x o n’s acti o n ca me i n t he face of vi g or o us o p p ositi o n, i ncl u di n g n u mer o us c o urt acti o ns, b y e n vir o n me ntalist s, w h o clai me d t he ca nal 

w o ul d h urt t he e n vir o n me nt, destr o y trees a n d wil dlife a n d irre p ara bl y da ma ge 

t he ce ntr al H o n d a a q uifer.

U. S. Circ uit J u d g e Har ve y J o h ns o n of O ma ha s u bse q ue ntl y r ule d t h at Ni x o n 

ha d n o a ut h orit y t o st o p t he pr oject, t h at o nl y C o n gress c o ul d d o t hat. B ut he 

als o r ule d t h at t he e n vir o n me nt al a n d ot he r st u di es t h at prece de d c o nstr ucti o n 

were i na de q uate. He or dere d t he C or ps of E n gi neers t o ma ke ne w st u dies t o hel p 

C o n gress deci de w h at t o d o wit h t he partl y fi nis he d ca nal. T he C or ps, wit h t he 

hel p of pri vat e c o ns ulta nt s, n o w is ma ki n g a d oze n or m ore i n vesti gati o ns at a 

c ost of $ 2. 5- milli o n. T he y deal n ot o nl y wit h c o nstr ucti o n c osts b ut als o wit h 

pr o ba ble effect of t he ca nal o n p o p ulati o n, water use a n d q ualit y; la n d use a n d
9 0 4

la n d val ues, air q ualit y, e m pl o y me nt patte r ns, l ocal c ust o ms a n d tra diti o ns a n d 

traffic p atter ns.

A t h or o u g h e n vir o n me nt al i m pact st u d y als o has bee n starte d, b ut it ca n n ot 

be c o m plete d u ntil C o n gress deci des w het her t he ca nal will be fi nis he d a n d, if s o 

w hat r o ute it will f oll o w.

Best g uesses n o w are t h at t o c o m plete t hese st u die s a n d r u n t he m past J u d g e 

J o h ns o n a n d o n t o C o n gress will ta ke a n ot her y ear, wit h a fi nal decisi o n li kel y i n 

late 1 97 6 or earl y 1 9 77. It is c o ncei va ble, h o we ver, t h at t he ma g nit u de of c ost 

esti mat es c o ul d lea d C o n gress t o deci de n ot t o p urs ue t he pr oject e ve n bef ore all 

of t he re p orts are i n.

Se nat or G r a v e l . I u n der sta n d Mr. Marli n has ha d t o lea ve, s o we 

will recess t he heari n g s u ntil t o m orr o w m or ni n g, a n d t h ose wit nes ses 

t h at di d n ot a p pe ar t o d a y will lea d off t o m orr o w m or ni n g.

[ W her e u p o n, at 1 2: 3 0 p. m., t he s u b c o m mittee was recesse d t o re ­

c o n v e ne at 1 0 a. m. o n F n da y, J u ne 2 0, 1 9 75.]

[ T he f oll o wi n g i nf or m ati o n rel ati ve t o dre d gi n g c osts was s u p plie d 

b y t he C or p s of E n gi neers t o a re q uest fr o m Se n at or s Gra vel a n d 

D o me nici.]

u n k 1 9, 1 9 75.

Lt. Ge n. W i l li a m C. Gri b b l e , Jr.,

De p art me nt of t he Ar m y,

W as hi n gt o n, D. C.

e a r Ge n e r a l Gri b b l e : D uri n g t o d a y’s heari n g b y t he S u bc o m mittee o n 

Water Res o urces, we hear d testi m o n y disc ussi n g t he relati ve c ost of dre d gi n g 

u n derta ke n b y dre d ges o w ne d a n d o perate d b y t he C or ps c o m pare d wit h t he c ost 

of c o ntracti n g wit h pri v ate dre d gi n g c o m pa nies f or s uc h w or k.

W o ul d y o u please pr o vi d e t he S u bc o m mitte e wit h a detaile d a nal ysi s of t he 

c o m p arati v e c osts of g o ver n me nt vs. c o ntract dre d gi n g. We w o ul d als o be i nt ereste d i n a n y i nf or m ati o n y o u c o ul d pr o vi de o n w het h er t he C or ps is ca pa bl e of 

ac q uiri n g a n d usi n g its o w n pi peli ne dre d ge s t o sti m ulate c o m petiti o n a n d re d uce 

dre d gi n g c osts.

We a p pr eciat e y o ur atte nti o n t o t his matter. It w o ul d be m ost hel pf ul t o ha ve 

t his a nal ysis n o lat er t ha n J ul y 7, 1 97 5.

Si ncerel y,

i k e Gr a v e l

C h air m a n.

e t e V. Do m e ni ci

R a nki n g Me m ber.

e p a r t m e n t o f t h e Ar m y

f fi c e o f t h e Chi e f o f En gi n e e r s

W as hi n gt o n, D. C., J uly 8, 1 9 7 6.

H o n. M i k e Gr a v e l

C h air m a n, S u bc o m mittee o n W ater Res o urces,

C o m mittee o n P u blic W orks, U. S. Se n ate, W as hi n gt o n, D. C.

e a r Se n a t o r Gr a v e l : T his is i n res p o nse t o y o ur j oi nt letter wit h Se n at or 

D o me nici t o Lt. Ge neral Gri b ble r e q uesti n g a detaile d a n al ysis of t he c o m parati ve 

c osts of C or ps a n d I n d ustr y dre d gi n g. T he i nf or m ati o n w hic h is a vaila ble o n t his 

matte r is s u m m arize d i n t he f oll o wi n g p ara gr a p hs.

I n Fe br uar y 1 9 69, a re p ort e ntitl e d " R es ults of C or ps of E n gi neers F Y 1 9 68 

Pr o gra m F or A d verti si n g Dre d gi n g J o b s" was f ur nis h e d t he C o m mittee o n 

A p pr o pri ati o ns i n acc or d a nce wit h i nstr ucti o ns c o ntai ne d i n H o use Re p ort N o. 

1 5 49 a n d Se nate Re p ort N o. 1 40 5. T his re p ort, w hic h i ncl u des t he res ults of 

a d vertisi n g a selecte d gr o u p of dre d gi n g j o bs n or m all y acc o m plis he d b y C or ps 

pla nt, was pri nte d i n Pa rt 2, H o use of Re p rese ntati ves Heari n gs i n t he 1 9 70 

A p pr o pri ati o n Act (I ncl os ure 1). F or t he 3 2 pr oje cts c o vere d i n t he re p ort, 2 6 

i n vit ati o n s f or bi ds were iss ue d. Bi ds were n ot recei ve d f or si x of t he a d v erti seme nts. T he e sti m ate d G o ver n me nt c o sts f or t h e re mai ni n g 2 0 a d vertise me nts was 

$ 5. 6 milli o n as c o m pare d t o t he I n d ustr y ’s bi ds of $ 7. 3 milli o n. T his re pre se nts a 

differe ntial of 3 0 % o ver t he c ost of perf or mi n g t he w or k wit h C or ps pla nt. T he 

re p ort c o ncl u de d t h at i n or der f or t he C or ps t o mai ntai n t he Nati o n s w ater w a ys
9 0 5

effecti vel y, t he pres e nt C or ps fleet, partic ularl y h o p per dre d ges, s h o ul d be a deq uat el y mai ntai n e d m o difie d as necessar y a n d s u p ple me nte d b y a d diti o nal 

dre d ges w he n pr ojecte d w or kl oa d r e q uire me nts i n dicate s uc h a nee d.

I ncl os ure 2 is a ta b ulati o n of a ct ual C or ps a n d I n d ustr y c osts a n d v ol u mes f or 

dre d gi n g d uri n g fiscal y ears 1 9 7 0- 1 9 7 4 a n d t he esti m ate d c osts a n d v ol u mes f or 

fiscal ye ar 1 9 75. T he ta b ulati o n i n dic ates t h at I n d ustr y dre d ges ha v e perf or m e d 

a b o ut 6 2 % of t he t ot al w or kl oa d base d o n d ollars a n d a b o ut 5 4 % o n a v ol u me 

basis. T he t a b ulati o n als o i n dic ates t h at t h e u nit c ost p er c u bic yar d f or I n d ustr y 

pla nt as c o m p are d wit h t he u nit c ost of C or ps dre d ges, has i ncrease d fr o m a 

n o mi nal perce nta ge i n fiscal y ear 1 9 70 t hr o u g h a ra n ge of 3 6 % t o 8 3 % d uri n g 

fiscal years 1 9 7 0- 1 9 7 4. I ncl os ure 3 is a ta b ulati o n of t he det aile d c o st a n d v ol u me 

data w hic h has bee n s u m marize d i n I ncl os ure 2.

I n s u m m ar y, I n d ust r y dre d ges ha ve perf or me d t he lar gest p orti o n of t he t otal 

w or kl oa d i n rec e nt y ears a n d t he differe nti al i n c osts o ver perf or mi n g t he w or k wit h 

C or ps e q ui p m e nt has i ncrease d si g nifica ntl y d uri n g t he p ast fi ve y ears.

T he Nati o nal Dre d gi n g St u d y, pre p are d at t he directi o n of t h e C o m mittees o n 

A p pr o priati o ns i n dic ates t h at a b o ut 5 0 % of t he I n d ustr y dre d ge fleet has bee n 

i n a n i dle stat us f or t he past se veral years. T he St u d y c o ncl u des t h at u ntil s uc h 

ti me as t he a n n ual dre d gi n g w or kl oa d i ncreases s u bsta ntiall y t h at a de q uate 

c o m petiti o n is a vaila ble i n t he I n d ustr y a n d t h at t he C or ps s h o ul d n ot pla n t o 

c o n str u ct a d diti o n al pi peli ne dre d ges at t his ti me. We feel t ha t t his is a reas o n a ble 

c o ncl usi o n.

I t r u st t his re pl y is res p o nsi ve t o y o ur c o n cer ns. If I ca n be of f u rt h er as sista nce, 

please a d vise.

A n i de ntical l ett er is bei n g se nt t o Se n at or D o me nici.

Si ncerel y,

e n n e t h E. n t y r e

Bri g a die r Ge ner al, U. S. A.,

Acti n g Direct or of Civil W orks.

T hree e ncl os ures.
9 0 6

D E P A R T M E N T O F T H E A R M Y

O F FI C E, C HI E F O F E N GI N E E R S

S P E CI A L R E P O R T

T O

A P P R O P RI A TI O N C O M MI T T E E S O F C O N G R E S S

R E S U L T S O F C O R P S O F E N GI N E E R S

F Y 1 9 6 8 P R O G R A M F O R A D V E R TI SI N G

D R E D GI N G J O B S

F E B R U A R Y 1 9 6 9
T h i s r e p o r t o n t h e r e s u l t s o f a d v e r t i s i n g a s e l e c t e d g r o u p 

o f d r e d g i n g j o b s n o r m a l l y a c c o m p l i s h e d b y t h e C o r p s o f 

E n g i n e e r s w i t h G o v e r n m e n t o w n e d p l a n t w a s p r e p a r e d i n 

a c c o r d a n c e w i t h t h e f o l l o w i n g C o m m i t t e e o n A p p r o p r i a t i o n s

R e p o r t s :

H o u s e R e p o r t N o . 1 5 4 9

S e n a t e R e p o r t N o . 1 4 0 5

" P u b l i c W o r k s f o r W a t e r P o w e r 

R e s o u r c e s D e v e l o p m e n t a n d A t o m i c 

E n e r g y C o m m i s s i o n A p p r o p r i a t i o n s 

B i l l , 1 9 6 9 "

F e b r u a r y 1 9 6 9
Fe br u ar y 1 9 6 9

R E P OR T O N R E S U L TS O F C O R PS O F E N GI N E E R S 

F Y 1 9 6 8 P R O G R A M F O R A D V E R TI SI N G D R E D GI N G J O B S

D re d gi n g M is si o n

1. T h e C or ps o f E n gi n e e r s i s r e s p o n si b l e f o r i m p r o vi n g a n d m ai n t ai n i n g 

n a v i g a ti o n c h a n n els a n d h a r b o r s i n t h e U nit e d S t a t e s. I n c a r r y i n g o ut 

t h i s r e s p o n s i b ilit y t h e C or ps m a k es s u b s t a n ti a l e x p e n d it u r e s ea c h y e a r f o r 

d r e d gi n g o f ne w F e d e r al p r o j e c t s a n d m ai n t ai n i n g t h o s e p r e v i o u sl y c o n ­

s t r u c t e d . T h e m aj o r p a rt o f t h e d r e d gi n g w or k i s a c c o m pli s h e d b y h y d r a u li c

d r e d gi n g e q ui p m e n t c o m p ris i n g m ai n l y t h e s e a g oi n g h o p p e r d re d g e a n d t h e 

c u tt e r h e a d p i p e li n e d r e d g e. T h e re m ai n i n g o r r e l a ti v e l y e m ail p o rti o n o f 

t h e t o t a l d r e d gi n g w o r k l o a d i s a c c o m pli s h e d b y b u c k et, d i a p e r o r si d e - 

c a s t e r d re d g e o r i n t h e c a s e o f t h e M i s si s si p p i R i v e r a n d' t r i b u t a r i e s b y 

t h e h y d r a u li c d u st p a n d re d g e w hic h i s e s p e c i a ll y d e si g n e d t o o p e r at e u n d er 

c o n d iti o n s p e c u li a r t o t h o s e w ate r w a y s.

2. T h e d r e d gi n g pr o gra m o f t h e C or ps o f E n gi n e e r s i s a c c o m pli s h e d i n 

a c c o r d a n c e w it h t h e p r o v i si o n s o f la w ( 3 3 U S C 6 2 2) w hi c h p r o vi d e s t h a t i t 

s h a ll be t h e d ut y o f t h e S e c r et a r y o f t h e Ar m y t o a p pl y t h e m o ne y 

a p p r o p ri at e d f o r i m pr o v e m e nts o f ri v e r s a n d h a r b o r s i n c a r r y i n g o n t h e 

v a ri o u s w or ks b y c o n t r a c t o r ot h e r w is e as ma y be m ost e c o n o m ic al a n d 

a d v a nta g e o u s t o t h e U nit e d S t a t e s. P u rs u a nt t o t h i s s t a t u t o r y p r e v i si o n , 

i t i s t h e g e n e r al p o li c y o f t h e C hie f o f E n gi n e e rs t o a c c o m pli s h d r e d gi n g 

w or k b y c o n tr a c t w h e n e v er t h e n at u r e o f t h e w or k a n d ti m e a v a il a b l e f o r 

i t s e x e c uti o n w ill p e r m it. I n k e e pi n g w it h t h i s p o li c y o nl y a v e r y li m it e d 

a m o u nt o f d re d gi n g e q ui p m e n t i s o w ne d a n d m ai n ta i n e d b y t h e C or ps o f
9 0 9

E n gi n e ers . A l i s t s h o wi n g t h e na m es a n d t y p e s of C o r p s o f E n gi n e ers 

dre d g es i s att a c h e d.

C o r p s o f E n gi n e ers Dre d gi n g Pla nt

3. I n t h e c o a sta l a n d G re at La ke s a r e a s t h e C o r p s i s c u r r e n tl y o p e r ati n g 

1 5 h o p p er d re d g e s. O ne a d d it i o n al h o p p er dr e d ge i s p r e s e n tl y a ss i g n e d t o 

w or k i n s u p p o rt of o p e r ati o n s i n Vi et na m f o r a n i n d e fi n it e p e ri o d.

H o p pe r dre d g es ha ve s e v e ra l d i s ti n c t d e si g n a d v a n ta g es w hic h d i c t a t e 

t h e i r u se g e n e r all y u n de r t h e f oll o w i n g c o n dit i o n s:

a. W hen dre d gi n g c h a n n els w hic h are e x p o se d t o o ff s h o r e o r oc ea n 

c o n d it i o n s. Ot h er t y p es o f d re d gi n g p la n t ca n n ot be e c o n o m ic all y o r 

s a f el y us e d u n d er t h e s e cir c u m sta n c e s b ec a u se t h e y m u st se e k s h e lt e r 

u n d er e v e n m o d era te l y a d v er se w e at h er c o n dit i o n s d u ri n g w hic h p e ri o d s 

t h e y a re i n o p e r ati v e.

b. W he n o p e r ati n g i n c o n g e st e d n a vi g ati o n c h a n n els d u e t o t h e e xte n ­

si v e c o m m er ci al t r a f f i c . Si n ce h o p pe r d re d g es are s e l f p r o p ell e d a n d 

dr e d g e w hil e u n de r w a y, t h e y d o n ot i n t e r f e r e wit h n a vi g ati o n. T he u se of 

ot h e r t y p e s o f pla nt w hic h o p e r ate fr o m a fi x e d p o siti o n, p r e s e nts a 

si g n i fi c a n t o b str u cti o n a n d h a z ar d t o u si n g t r a f f i c .

c. W here t h e n at u re o f t h e d re d gi n g i s s u c h t h at t o p er f o r m t h e w or k 

b y b u c k et o r pi p eli n e dre d g es w o ul d r e s u lt i n a s u b st a n ti a l e x tr a c o st t o 

t h e G o ve r n m e nt. T y pic al f a ct o r s w hic h c o n tr i b u t e t o t h i s i n c r e a s e i n 

c o st a re t h e m or e re m ot e l o c ati o n s o f dis p o s al a r e a s, re q uir e m e nt f o r 

re h a n dli n g dr e d ge d m ate ria l t o pla c e t h e s p o il i n c o n fi n e d a r e a s, a n d t h e
9 1 0

e at e r e f f e c t o f u n fa v o ra ble w e at h er a n d wa ve c o n diti o n s o n b u c k et o r 

p i p eli n e dre d g es as c o m par e d t o h o p p er dr e d ge o p e r ati o n s.

4. U n der t h e f i r s t t w o c o n diti o n s i t w o ul d n ot be p r a ctic a b le t o pe rf or m 

t h e w or k wit h pla nt ot h e r t h a n h o p p er dre d g e. U n d er t h e l a st c o n dit i o n 

i t w o ul d be p o s si b le t o us e c o n tr a ct o r o w ne d pla nt b ut t o d o s o w o ul d 

r e s u lt i n s u b st a n ti a l e xtr a c o st t o t h e G o ver n me nt.

5. I n o r d e r t o m ai n ta i n fl e x i b l e c o ntr ol o v er t h e d re d gi n g pr o g ra m, t h e 

C o r p s als o o p e r ate s ni n e h y d ra uli c pi p eli n e dre d g es ra n gi n g i n siz e fr o m

® t o 2 4 ' ( dis c h a r g e dia m ete r) a n d 5 d re d g es o f t h e b u c k et or di p p e r t y p e. 

T he se dre d g es are us e d g e n e r all y o n n a vi g ati o n p r o je cts w h ere c r iti c a l s h o als 

d e v el o p r a p i d l y. T o c o ntr a ct f o r t h e re m o val of t h e s e s h o als t h r o u g h t h e 

re q uir e d pr oc ur e m e nt pr o c e d ure s w o ul d r e s u lt i n a s e ri o u s d ela y i n i n iti a ­

ti o n o f d re d gi n g be ca us e o f t h e ti m e r e q uir e d t o p re p are pla n s, a d v e rtis e, 

re vie w b i d s, a n d a w ar d, t h ere b y a d v ers el y a f f e cti n g n a vi g ati o n. F u rt h e r, 

t h e r e i s n o a ss u ra n c e of t h e a v a il a b ilit y o f c o ntr a ct o r pla nt at t h e ti m e 

r e q uir e d. O nce t h e s h o al are a ha s be e n l o c ate d t h e G o ver n m e nt dr e d ge ca n 

s t a rt w or k w it h a mi ni m u m o f d ela y.

6. T he C o r p s ha s t w o si d e c a st e r dre d g es w hic h o p e ra te i n t h e e x p o se d 

I n l e t s al o n g t h e A tl a nti c a n d G ulf c o a sts . T his t y p e o f dr e d ge i s c a p a ble 

o f w or ki n g i n i n l e t s w h ere se a c o n diti o n s are t o o r o u g h f o r a pi p eli n e or 

b u c k et dre d g e. T he o p e r ati o n o f t h i s t y p e o f dr e d ge r e q uir e s t h e a v ail a ­

b ilit y o f a c o nti n u o u s dis p o s al a re a a dja c e nt t o t h e c h a n n el. O ne o f t h e s e 

t w o si d e c a sti n g dre d g es i s p r e s e ntl y a ss i g n e d t o w or k i n s u p p o rt o f o p e r ati o n s 

i n Vi et n a m f o r a n i n d e fi n it e p e ri o d. T he dre d gi n g i n d u str y i s n o t e q ui p p e d 

w it h t h i s t y p e of dre d g e.
9 1

. Ei g ht d u st p a n d re d g es are a v ail a b le f o r o p e r ati o n i n t h e M is sis si p pi 

a n d M is s o uri R i v e r s. T he l o c ati o n o f t h e n a vi g ati o n c h a n n els i n t h e s e 

ri v e r s i s c o nti n u o u sl y c h a n gi n g a n d d i f f i c u lt o f e x a ct l o c ati o n. T he 

d u st p a n dr e d ge was s p e c ifi c a ll y d e si g n e d b y t h e C o r p s f o r t h e re m o v al o f 

t h e r a pi d l y f or me d s h o als a n d i s s o c all e d b ec a u se t h e s h a p e o f t h e he a d 

i s si m il a r t o t h a t o f a g i g a nti c vac u u m cle a n e r. T he dre d gi n g i n d u str y 

i s n ot e q ui p p e d w it h d u st p a n d re d g e s.

C o nte nti o n o f t h e Dre d g i n g I n d u str y

8. D uri n g c ale n d a r y e ar 1 9 6 7 t h e d re d gi n g i n d u str y, t h r o u g h it s n ati o n al 

o r g a niz ati o n, t h e N ati o n al A s s o cia ti o n o f Ri v er a n d H ar b o r C o ntr a ct o rs , 

ma de r e p r e s e n t ati o n s t o t h e A p p r o p ri ati o n C o m mitt ee s o f C o n gre ss, i n di v i d u al 

c o n g re ss m e n i n t h e H o u se a n d S e n at e a n d t o t h e C o r ps o f E n gi n e ers, t h at

t h e C o r ps i s p erf or m i n g e xte n si v e d re d gi n g w o r k b y G o ver n m e nt- o w ne d dre d g es 

w hic h s h o u l d be ac c o m plis he d b y c o ntr a ct o r- o w n e d p l a n t. T he y e x p re ss e d 

c o n ce r n t h at a c o nti n u ati o n o f t h e p r a cti c e w ill s e ri o u sl y a f f e c t t h e 

fi n a n cia l s t a b ilit y o f t h e i n d u str y a n d p r o t e ste d str e n u o u sl y t h e a c q u i siti o n 

o f a n y a d d it i o n al G o ver n m e nt dre d g es c o nte n di n g t h at t h i s w ill o nl y p e r p et u ate 

t h e G o ver n m e nt c o m p etiti o n wit h t h e d re d gi n g i n d u str y. T he i n d u str y c o nte n d s t h at b y c o m p etiti v e bi d di n g o n a ll d re d gi n g w o r k t h e G o ver n m e nt w ill 

r e a li z e s u b st a n ti a l sa vi n g s o v er p er f o r m a n ce o f t h e w o r k b y G o v er n me nt 

p l a n t. As a f o ll o w u p t o t h e s e c o nte nti o n s, t h e i n d u str y re q u e st e d t h e 

C o r p s t o fa v o ra bl y c o n si d e r a pr o g ra m w h er e b y t h e m aj or p a rt o f a ll d re d gi n g 

w or k n o w ac c o m plis he d b y G o ver n m e nt p l a n t w o ul d be a d v e rti s e d f o r bi d s.
T he C o r p s Re s p o n se t o Dre d gi n g I n d u str y

. As a r e s u lt o f t h e r e p r e s e n t ati o n s b y t h e dre d gi n g i n d u str y, it was 

dee m e d a d vis a ble t o ma ke a c o m pr e h e n si ve re vi e w o f o u r d re d gi n g p o li c i e s 

a n d p r a cti c e s as t h e y r e la te d t o o p e r ati o n s b y G o ver n m e nt p l a n t t o d ete r m i n e 

w h et h er a n y c h a n ge s we re ne e d e d at t h i s ti m e. T o a cc o m pli s h t h i s re vi e w

a pr o g ra m was de vel o pe d w h er e b y s o me o f t h e dre d gi n g w or k n or m all y re se r v e d 

f o r pe rf or m a n ce b y G o ver n m e nt p l a n t w o ul d be a d v e rti s e d f o r c o m p etiti v e 

bi d di n g, u si n g t h e c o st of p erf or m i n g t h e w or k wit h G o ver n m e nt p l a n t as t h e 

b a si s f o r t h e G o ver n m e nt e sti m ate , a n d i f bi d s w er e r e c ei v e d w it hi n t h e 

st a t u t o r y ra n g e ( 2 5 7.), c o ntr a cts wc ul d be a w ar de d. ( T his st a t u t o r y li m it a ­

ti o n d e ri v e s fr o m 3 3 US C 6 2 4 w hic h r e q uir e s t h at n o p a rt o f t h e f u n d s 

a p p r o p ri ate d f o r w o r ks of ri v e r a n d h ar b or i m pr o ve me nt s h a ll be us e d t o 

pa y f o r a n y w or k d o n e b y p ri v at e c o ntr a ct i f t h e c o ntr a ct p ri c e i s m ore t h a n 

2 5 p e r c e nt i n e x ce ss o f t h e e sti m ate d c o st o f d oi n g t h e w or k wit h G o ver n m e nt 

p l a n t ).

De vel o p me nt o f A d v e rtis i n g Pr o gra m

1 0. T he pr o g ra m, as d e v el o p e d , pr o vi d e d f o r a si g n ifi c a n t n u m ber o f dre d gi n g 

p r o j e c t s o ri g i n a ll y sc h e d ule d f o r ac c o m plis h m e nt b y G o ver n m e nt dr e d ge t o be 

a d v e rti s e d f o r bi d s. T he a d v e rtis i n g sc h e d ule ha d t o be li m it e d t o 

g e n e r all y t h e l a s t h a lf o f fi s c a l y e ar 1 9 6 8 be ca us e at t h e ti m e i t was 

d e v el o p e d f i r s t h a lf o p e r ati o n s we re e s s e n ti a ll y u n der w a y o r alr e a d y 

c o m plete d.

1 1. I n s el e cti n g t h e j o b s f o r a d v ertis e m e nt a s p e cia l e f f o rt was ma de t o 

i n cl u d e w or k i n v ol v i n g a ll t y p es o f dre d gi n g p l a n t, b ot h G o ver n m e nt a n d 

c o n tr a ct o r o w ne d, s u c h as h o p pe r d re d g e s, s m all a n d la r g e p i p eli n e d re d g e s, 

si d e c a st e r dre d g es a n d b u c k et a n d di p p er d re d g e s. T he :fcs s ele cte d
9 1 3

i n c l u d e d w o r k i n i n t e r i o r w a t e r s , c o a s t a l h a r b o r s a n d e n t r a n c e c h a n n e l * 

i n a l l s e c t i o n s o f t h e c o u n t r y a n d r e p r e s e n t e d a t y p i c a l c r o s s s e c t i o n o f 

w o r k p e r f o r m e d b y G o v e r n m e n t p l a n t . H o w e v e r , i n o r d e r t o p r o v i d e t h e 

d r e d g i n g i n d u s t r y w i t h t h e m o s t f a v o r a b l e o p p o r t u n i t y t o d e m o n s t r a t e t h a t 

t h e y c o u l d a c c o m p l i s h t h e w o r k a t a n e c o n o m i c a l c o s t t o t h e G o v e r n m e n t , 

m o r e t h a n t h e n o r m a l n u m b e r o f j o b s w e r e s e l e c t e d w h e r e t h e m o s t f a v o r a b l e 

c o n d i t i o n s e x i s t e d t o m a k e t h e o p e r a t i o n s c o n d u c i v e t o e c o n o m i c a l p e r ­

f o r m a n c e b y c o n t r a c t o r p l a n t .

1 2 . T h e f o r m a l a d v e r t i s i n g s c h e d u l e , a s d e v e l o p e d , p r o v i d e d f o r w o r k a t 

3 2 p r o j e c t l o c a t i o n s . H o w e v e r , i n o r d e r t o m i n i m i z e m o b i l i z a t i o n e x p e n s e s 

t o d r e d g i n g c o n t r a c t o r s a n d t o I n c r e a s e t h e m a g n i t u d e o f t h e c o n t r a c t s , 

s e v e r a l o f t h e s m a l l e r j o b s i n t h e s a m e g e n e r a l l o c a l i t y w e r e c o m b i n e d 

u n d e r a s i n g l e a d v e r t i s e m e n t . T h i s r e s u l t e d i n t h e i s s u a n c e o f 2 6 i n d i v i d u a l

i n v i t a t i o n s f o r b i d * f o r t h e w o r k a t 3 2 p r o j e c t l o c a t i o n s ,

1 3 . T h e G o v e r n m e n t p l a n t o r i g i n a l l y s c h e d u l e d t o o p e r a t e a t t h e s e 3 2

l o c a t i o n s u n d e r t h e 2 6 j o b s i s b r o k e n d o w n b y t y p e s a n d d o l l a r a m o u n t s a s

f o l l o w s :

H o p p e r d r e d g e ( 1 8 j o b s @ 2 2 l o c a t i o n s ) $ 5 , 2 8 7 , 0 0 0

P i p e l i n e d r e d g e ( 6 j o b s @ 8 l o c a t i o n s ) 8 8 8 , 0 0 0

S i d e c a s t e r d r e d g e ( 2 j o b s @ 2 l o c a t i o n s ) 4 5 0 , 0 0 0

T o t a l ( 2 6 j o b s @ 3 2 l o c a t i o n s ) $ 6 , 6 2 5 , 0 0 0

1 4 . T h e a d v e r t i s i n g s c h e d u l e c o m p r i s i n g $ 6 . 6 m i l l i o n o f G o v e r n m e n t d r e d g e 

p l a n t o p e r a t i o n s r e p r e s e n t s 3 2 % o f t h e t o t a l p r o g r a m o f $ 2 1 m i l l i o n 

o r i g i n a l l y s c h e d u l e d t o b e p e r f o r m e d w i t h G o v e r n m e n t p l a n t d u r i n g t h e 

s e c o n d h a l f o i f i s c a l y e a r 1 9 6 8 .
9 1 4

s u lt s of A d v e rtis i n g Pr o g ra m

1 5. T he w o r k I n cl u d e d i n t h e a d v e rtis i n g sc h e d ule was p ut o ut f o r b i d s.

A s u m mar y t a b u l ati o n o f t h e r e s u lt s o bta i n e d is att a c h e d. T he ta b u l ati o n 

s h o ws t h at bi d s we re re c ei v e d o n 2 0 o f t h e 2 6 i n v it a ti o n s i n t h e pr o g ra m 

c o v er i n g 2 5 o f t h e 3 2 p r o j e cts . H o w e ver, n o bi d s we re re c ei v e d f o r 6 

i n v it a ti o n s w hic h i n cl u d e d 7 p r o j e c t s.

1 6. Ei g ht o f t h e 2 0 bi d s were w it hi n t h e 2 5 pe r ce nt u m li m it a ti o n a n d 

t h e r e f o r e we re q u ali fi e d f o r a w ar ds. H o w e ve r, o n l y 7 c o ntr a cts we re a w ar de d.

T he l o w bi d f o r d re d gi n g i n J a c k s o n vil le H ar b o r, F l o ri d a, (J o b N o. 6 i n Ta b -

u l ati o n ) was r eje ct e d si n c e i t was c o n si d ere d t o be a n u n b al a n ce d b i d . T he 

bi d d er pla c e d 9 4 % o f his c o sts i n t h e m o bil iz ati o n a n d c b m o biliz ati o n ite m off 

h i s bi d w it h t h e b ala n c e t o p er f o r m t h e a ct u al dre d gi n g w o r k. T w el ve bi d s | 

w hic h I n cl u d e d 1 7 p r o j e cts were r eje ct e d si n c e t h e y e x ce e d e d t h e 2 5 % 

li m it a ti o n. O n t w o o f t h e se r eje ct e d j o b s, t h e l o w bi d d ers p r ote ste d 

t h e re a s o n a ble n e s s o f t h e G o v er n m e nt e sti m ate . H o w e ver, a ft e r re vie w a n d 

c a r e f u l c o n si d e r ati o n o f t h e f a ct o r s .i n v ol v e d i n t h e b i d d e r's p r o t e st s,

t h e re a s o n a ble n e ss o f t h e G o v er n m e nt e sti m ate s was s u b sta n tia t e d a n d

t h e p r o t e st s we re r eje ct e d. A t y p ic al e x a m ple of s u c h p r o t e st i s 

J o b N o. 7 i n T a b ula ti o n f o r Sa va n na h H ar b o r, G e o r gia. A b ri e f n a r r ati v e 

sti m mar y of t h i s p r o t e st, i n cl u di n g a n e v al u ati o n o f t h e c o st f a ct o r s ba se d 

o n a ct u al pe rf or m a n ce re c o r d s of t h e w or k" as. c o m plete d, i s att a c h e d.

1 7. T he t o t a l e sti m ate d c o st f o r p er f o r m i n g t h e w or k b y G o ver n m e nt p l a n t, 

o n t h e 2 5 p r o j e cts f o r w hic h bi d s we re re c ei v e d a m o u nt e d t o $ 5. 6 m il li o n 

as c o m par e d t o $ 7. 3 m il li o n ba se d or. t h e l o w U d i n dic ati n g t h at t h e

us e o f G o ver n m e nt pla nt w o ul d r e s u lt i n a sa vi n g s of $ 1. 7 m il li o n. T he
9 1 5

7 a w ar d e d c o n tr a ct s a m o u nte d t o a t o t a l e sti m ate d c o st o f $ 2. 6 m il li o n as 

c o m pare d t o a t o t a l c o st o f $ 2. 8 m il li o n i f t h e w or k ha d be e n pe rf or m e d 

b y G o ver n m e nt p l a n t.

1 8. T he e sti m ate d c o st o f t h e w or k f o r t h e 7 p r o j e cts f o r w hic h n o bi d s 

we re r e c ei v e d i s $ 1. 1 m il li o n. T wo of t h e s e j o b s are o f p a rti c u l a r i n t e r e st 

si n c e t h e y i n v ol v e t h e us e o f t h e o b s ole te pi p eli n e dr e d ge " Ste . G e n e vie ve ” , 

t h e re pla ce m e n t o f w hic h was i n cl u d e d i n t h e b u d g et r e q u e st f o r F Y 1 9 6 9.

( S ee J o b N os. 2 0 & 2 1 i n T a b ula ti o n f o r U p p er M is sis si p pi Ri v er a n d I lli n o i s 

R i v e r.) T his c l e a rl y d e m o n str ate s t h at u nle s s a s u it a b l e C o r p s pi p eli n e 

dre d g e (r e p la ce m e n t f o r S te . G e n e vie ve ) i s a v ail a b le i n t h e g e n era l l o c a lit y 

o f t h e s e t w o j o b s, t h e m ai nte n a n ce o f t h e s e m aj or i n la n d water w a y s c o ul d be 

s e ri o u sl y a ff e cte d wit h gra v e c o ns e q ue nc es t o n a vi g ati o n.

A n al y si s o f C o ntr a cts A war de d

1 9. A n a n al y sis o f t h e 7 a c c e pta ble bi d s r e c ei v e d s h o w s t h at 4 were bel o w

t h e G o ver n m e nt e sti m ate a n d 3 we re a b o ve t h e e sti m ate s b ut w it hi n t h e 2 5 7.

li m it a ti o n , v a r y i n g fr o m 4 t o 1 5 7. a b o v e. Of t h e j o b s i n t h i s l a tt e r c ate g o r y,

t h e G o v er n me nt e sti m ate s f o r a ll 3 J o bs we re ba se d o n t h e u se o f h o p p er

d re d g e s. T he o nl y j o b f o r w hic h t h e G o ver n m e nt e sti m ate was ba se d o n t h e u se 

o f a h o p p er dr e d ge a n d t h e l o w bi d was bel o w t h e e sti m ate was f o r ne w w or k

dre d gi n g i n t h e S o ut h er n Br a nc h o f t h e N orf ol k H ar b o r p r oje ct (J o b N o. 1 4

i n T a b ula ti o n ). T his w or k a n ti ci p ate d dis p o s al o f t h e dr e d ge d m ate ria l 

i n t o t h e Cr a n e y I sla n d Dis p o sa l Ar ea l o c ate d a b o ut 8 m il e s fr o m t h e d re d gi n g 

a r e a. A G o ver n m e nt h o p p er dr e d ge was sc h e d ule d f o r t h i s w or k b ec a u se t h e 

g r e at dis ta n c e fr o m t h e w or k s it e t o t h e dis p o s al a re a p re cl u d e d t h e u se o f 

a p i p eli n e d re d g e. T h u s, c o n tr a ct o r s w o ul d ha ve t o u se a b u c k et d re d g e,
9 1 6

w h ich g e n e r all y c o ul d n o t o p e ra te u n d er t h e s e c o n diti o n s as ec o n o m ic all y 

as t h e G o ver n m e nt h o p p er dre d g e. H o we var, t h e l o w bi d d er was a ble t o 

o bta i n e x cl u si v e ri g h t s t o a p ri v at el y o w ne d p a r c el o f la n d a dja c e nt t o 

t h e w or k s it e f o r us e as a dis p o s al a r e a, t h ere b y ma ki n g t h e us e o f a 

pi p eli n e dr e d g e ec o n o mic all y f e a si b l e. As t o be e x p e cte d, t h i s r e s u lte d 

i n a bi d bel o w t h e G o v er n me nt e sti m ate . T his p a rti c u l a r dis p o s al a re a is 

n o w f ill e d t o c a p a cit y a n d n ot a v ail a b le f o r a n y f ut u r e m ai nt e n a n ce w or k 

i n t h i s l o c a lit y . T h ere f o re , t h e r e s u lt s e x p erie n c e d i n a d v e rtis i n g t h i s 

p r oje ct ca n n ot be c o n si d er e d i n d ic ati v e o f w h at t o e x p ec t o n f ut u r e 

a d v e rt is e m e nts. T he re q uir e m e nt w ill s t i l l e x is t f o r p erf or m i n g w or k b y 

h o p p er dr e d ge i n t h i s a re a.

2 0. Wit h r e s p e ct t o t h e ot h e r 6 j o b s w hic h we re a w ar d e d t o c o n tr a ct o r s, a 

b ri e f res u m e o f t h e f a ct o r s, c o n dit i o n s a n d pe rf or m a n ce o n t h e i n di v i d u al 

j o b s f o ll o w s:

a. P as ca g o ula Ha r b or (J o b N o. 8 i n T a b ula ti o n ). T his J o b was n o t 

r e p r e s e n t ati v e o f t h e w or k n or m all y d o ne b y h o p p er dr e d ge i n t h i s w at er w a y. 

O r d i n a ri l y t h e m ai nt e n a n ce o f t h i s p r o j e ct i n v ol v e s dre d gi n g t h e e x p o se d b ar 

c h a n n el as w ell as t h e p a rti a ll y s h elte r e d i n n er re a c h l o c ate d i n a n 

i m p o u n di n g a re a o n t h e w est e n d of P e tit B oi s I sla n d. P ri o r t o t h e a d v e rtis e ­

me nt o f t h e w or k, it was f o u n d t h at t h e a n ti ci p ate d s h o ali n g i n t h e e x p o se d 

b ar c h a n n el s e cti o n di d n o t d e v el o p t o -t h e e xte nt t h at d re d gi n g i n t h i s re ac h 

was n e c e ss ar y at t h at ti m e. As a r e s u lt, t h e a d v e rti s e d w or k was c o nfi n e d t o 

t h e i n n er r e a c h, w he re, alt h o u g h t h e a re a i s s o me w hat e x p o se d t o t h e ele m e nts, 

t h e dr e d ge c o ul d be m o ve d t o p r ote cte d w ate rs be hi n d t h e is la n d w it hi n a 

r e l a ti v e l y s h o rt p eri o d of ti m e. T h u s, si n c e t h e r e was n o si g n ifi c a n t r e q u ir e ­

me nt f o r a pr o l o n g e d e x p o s u re o f t h e dre d g e i n u n s h elt e r e d a r e a s, t h e u se of a
9 1 7

d r a uli c p i p eli n e dre d g e ha d s o me d i s ti n c t a d v a n ta g e s a n d i t c o ul d be 

e x p ec te d t h at t h e c o sts w o ul d be c o m p etiti v e wit h t h o se o f t h e h o p p er 

dre d g e. H o we ver, i f t h e dre d gi n g re q uir e m e nt i n cl u d e d b ot h t h e i n n er 

a n d o ute r s e c ti o n s,t h e c o st o f a cc o m pli s h i n g t h e t o t a l w or k w o ul d ha ve 

be e n m uc h l e s s i f d o ne b y h o p pe r dr e d ge t h a n b y p i p eli n e dr e d ge m ai nl y 

b ec a u se o f t h e a b ilit y o f h o p pe r dre d g es t o o p e ra te e f fi c i e n tl y i n 

e x p o se d a r e a s. F u rt h e r, i f t h e i n n er re ac h we re ac c o m plis he d b y c o ntr a ct 

a n d t h e o ute r b ar c h a n n el b y h o p p er d re d g e, t h e t o t a l c o st o f d o i n g t h e 

e n ti r e w or k w o ul d p r o b a bl y be si g n ifi c a n tl y g r e at e r t h a n i f t h e h o p p er 

dre d g e ac c o m plis he d t h e t o t a l j o b b ec a u se o f t h e a d d it i o n al m o biliz ati o n 

a n d d e m o biliz ati o n c o st o f t h e c o ntr a ct p l a n t. I n li g h t o f t h e f o re g oi n g, 

i t i s a p p are nt t h at t h e c o st o f m ai n ta i n i n g t h i s p r o j e c t i s de pe n d e n t - o n 

t h e s h o ali n g p a tt e r n i n t h e t w o c r iti c a l s e cti o n s o f t h e w at er w a y. We 

pr o p o se t o gi v e c o n si d e r ati o n t o t h e f o ll o w i n g p o s si b l e a cti o n s o n f ut u r e 

w or k i n t h i s p r o j e c t.

( 1 ) A d v ertis e w or k w he n o nl y t h e i n n e r s e cti o n i s i n v ol v e d.

( 2) A d v ertis e w or k w he n b ot h i n n e r a n d o ute r s e cti o n s are i n v ol v e d 

u n d er a lt e r n a t e sc h e d ule s s o t h at a fir m d ete r m i n ati o n ca n be ma de as t o 

w hic h sc h e d ule s or c o m bi n ati o n t h e r e o f w ill r e s u lt i n t h e l e a st c o st t o t h e

U nit e d S t a t e s. ■*-

( 3 ) Pe rf or m w o r k b y h o p p er dr e d ge w h ere t h e re q uir e m e nt i s o n l y 

f o r w o r k i n t h e o ute r b ar c h a n n el.

b. N orf ol k H ar b or, V ir gi n ia (J o b N o. 1 2 i n T a b ula ti o n ). T he w or k 

o r d i n a ril y pe rf or m e d i n t h i s w at er w a y c o n si st s of m ai nte n a n ce d re d gi n g b y 

p u m p o ut h o p p er dre d g e, o v er a re a c h o f c h a n n el a b o ut 6 m il e s i n e xte nt
9 1 8

ith t h e dre d g e d m ate ria l dis p o se d o f i n t h e Cra ne y I sla n d D is p o sa l A re a.

(a F e d era l p r o j e ct i n i t s e l f ). T he dis p o s al a re a i s l o c ate d a dja c e nt t o 

t h e c h a n n el, b ut o nl y a b o u t 2 m il e s o f t h e c h a n ne l is w it hi n re ac h o f t h e 

dis p o s al a re a b y d i r e c t p u m pi n g b y h y d r a uli c pi p eli n e dre d g e, w it h o ut 

b o o ste r p l a n t. T h u s, o nl y a p o rti o n o f t h e N orf ol k Ha r b or w or k c o ul d be 

ac c o m plis he d e c o n o m ic all y b y c o n tr a ct o r p la n t u si n g t h e pl a n n e d dis p o s al 

a r e a, w he re as t h e e n ti r e water wa y ca n be ac c o m plis he d b y h o p p er d re d g e.

T he w or k t h at was a d v e rti s e d a n d pe rf or m e d b y c o ntr a ct c o n sis te d o f o nl y 

t h e t w o mil e re a c h o f c h a n n el cl o s e st t o t h e dis p o s al a r e a. E ve n o n t h i s 

m o st fa v o ra ble b a sis f o r c o ntr a ct p l a n t t h e l o w bi d was a b o u t 1 5 7. g r e at e r 

t h a n t h e c o st o f d oi n g t h e w or k b y G o ver n m e nt p l a n t. T he re m ai n d er o f t h e 

p r o j e ct was ac c o m pli s h e d b y h o p p er d re d g e. A n a n al y sis o f t h e w or k 

ac c o m plis he d b y b ot h h o p p er dr e d ge a n d b y c o ntr a ct p l a n t re v e als t h at i f 

t h e e n ti r e w or k ha d be e n pe rf or m e d b y h o p p er dr e d ge t h e c o st t o t h e G o ve r nme nt w o ul d ha ve be e n m ore t h a n 2 5 7. l e s s t h a n t h e a ct u al c o m bi n e d c o st o f 

p erf or m i n g o n e re a c h b y c o ntr a ct a n d t h e ot h e r re ac h b y h o p p er d re d g e.

T his l e s s e r c o st r e s u lt s fr o m t h e sa vi n g s o cc a si o n e d b y t h e eli m i n ati o n 

o f o ne m o bil iz ati o n a n d d e m o biliz ati o n c o st f o r t h e dr e d ge pla nt a n d t h e 

g r e at e r e f fi cie n c y o f t h e h o p p er dr e d ge o p e r ati o n i n t h i s p a rti c u l a r c as e 

b ec a u se o f t h e l o n g er re ac h o f c h a n n el t o be dr e d ge d a n d t h e l e s s e r a v er a g e 

tr a v el d is ta n c e t o t h e dis p o s al a r w . I n vi e w o f t h e s u b st a n ti a l sa vi n g s 

t o t h e G o ver n m e nt as i n dic ate d a b o v e, f u t u r e w o r k i n t h i s water w a y w ill 

be ac c o m plis he d b y h o p p er dre d g e. H o w e ve r, i f f o r s o me v ali d re a s o n, n ot 

a p p ar e nt at t h i s ti m e, t h e vz or k i s c o n si d ere d f o r a d v e rti si n g, t h e j o b 

w ill c o v er t h e e n ti r e water w a y a n d n ot be br o k e n i n t o t w o p a rt s.
9 1 9

. A tc h afa la y a Ri v er, La. (J o b N o. 2 3 i n T a b ula ti o n ) a n d C ol u m bia 

Ri v er bet w ee n Va nc o u ve r a n d t h e D all e s, (J o b N o. 4 i n T a b ula ti o n ). T he 

l o w bi d s r e c ei v e d f o r t h e s e j o b s w er e si g n i fi c a n tl y l o w er t h a n t h e c o sts 

o f d oi n g t h e w o r k b y G o ver n m e nt p l a n t. ( S i d e c a ste r dr e d g e f o r A tc h afa la y a 

Ri v er a n d h y d r a uli c p i p eli n e dre d g e f o r C ol u m bia R i v e r). I n vi e w o f t h i s 

e x p eri e n c e, i t i s pl a n n e d t h at si m il a r f ut u r e w or k w ill be a d v e rti s e d as 

l o n g as r e a s o n a ble bi d s a re re c ei v e d u nle s s e m er g e n c y c o n dit i o n s o r ot h e r 

u n e x p ec te d cir c u m sta n c e s d i c t a t e t h at t h e w o r k be pe rf or m e d b y G o ver n m e nt

d re d g e.

d. Sa gi n a w H ar b o r (J o b N o. 2 6 i n T a b ula ti o n ). T his j o b i n v ol v e s ne w 

w o r k d re d gi n g o f t h e o ute r s e cti o n s o f t h e la k e a p pr oa c h c h a n n el t o t h e 

h a r b o r. At t h e ti m e t h i s w or k was a d v e rtis e d, o p e n la k e dis p o s al of t h e 

dr e d ge d m at e ri al a s h o rt dis ta n c e o f f t h e si d e s o f t h e c h a n n el was p r o ­

vi d e d f o r i n t h e s p e c ifi c a ti o n s. T h u s, we e st a b li s h e d a n i d e al j o b f o r 

c o n tr a ct p l a n t o p e r ati o n s. H o we ver, t h e r e i s a g o o d p o s s i b ilit y t h at 

r e s t ri c ti o n s a g ai n st t h i s t y p e o f o p e n la k e dis p o s al ma y be i m p o se d i n t h e 

n e a r f u t u r e. T his st e m s fr o m t h e c u r r e n t e m p h asis t o eli m i n ate o p e n w ate r 

d i s p o s al o f dre d g e s p o il i n t h e i n t e r e s t o f w ate r q u ali t y c o n tr o l, p o ll u ti o n 

a b at e m e nt a n d r e d u cti o n o f e u tr o p h i c ati o n. T h e re f o re , f ut u r e d re d gi n g 

o p e r ati o n s i n si m il a r w at er w a y s ma y r e q u ir e dis p o s al w it hi n di k e d e n cl o s u re s 

l o c ate d al o n g s h ore o r n e ar s h ore w ate r a r e a s o r i n s o me i n la n d a re a s 

d i st a n t fr o m t h e dre d gi n g w or k s it e . T h es e f a ct o r s w o ul d a f f e c t t h e a b ilit y 

o f c o n tr a ct p l a n t t o o p e ra te e f fi c i e n tl y a n d w o ul d b e ar g r e at w ei g ht i n a n y 

d ete r m i n ati o n as t o w h et h er a si m il a r j o b s h o ul d be a d v e rti s e d i n t h e 

f u t u r e. N o g e n e r al p oli c y i n t h i s re g ar d ca n be f o r m ulate d a t t h i s ti m e.
Ea c h j o b w o ul d r e q u ir e e v al u ati o n o n a n i n di v i d u al b a sis as t o 

t h e c o n diti o n s t o be p r e s c ri b e d f o r t h e dis p o s al o f t h e dr e d ge d

m at e ri a l.

e. W illa m ett e Ri v er a b o ve P o rtla n d a n d Y a m hill Ri v er (J o b N o. 3 i n 

T a b ula ti o n.) T he G o ver n m e nt e sti m ate f o r t h e w or k o n t h e W illa m ett e

Ri v er a b o ve P o rtla n d a n d Y a m hill Ri v er was ba se d o n a G o ver n m e nt 1 2"

p i p eli n e dr e d ge e s p e ci all y a d a p te d t o w or k i n t h i s s e cti o n o f t h e

■r

W illa m ette Ri v er wit h it s s h all o w d e pt h , s w if t c u rr e nts a n d he a v y ri v e r 

b ott o m m at e ri als . T he c o ntr a ct o r u tili z e d a 1 6" p i p eli n e d re d g e.

Alt h o u g h t h e bi d p ri c e was s li g h tl y l e s s t h a n t h e G o ver n m e nt e sti m ate , 

a n a n al y sis o f t h e c o n tr a ct o r ’ s o p e r ati o n s a ft e r c o m pleti o n o f t h e w or k 

i n dic ate d t h at h i s c o sts f o r t h e w o r k were a p p re cia bl y i n e x ce ss o f h i s 

j o b e a r ni n g s. I t a p p ea rs t h at t h e c o n tr a ct o r u n d er bi d t h i s w or k. Bas e d

o n t h i s e x p eri e n c e i t is n ot a n ti ci p ate d t h at t h e r e w ill be m uc h I n t e r e st

i n f ut u r e a d v ertis e m e nt f o r t h i s w o r k.

A n al y si s o f C o u nt r y - w i d e Dre d gi n g Pr o gra m 

2 1. F o r fi s c a l y e ar 1 9 6 8, t h e t o t a l c o u ntr y wi de C o r ps d re d gi n g pr o g ra m 

i n v ol v e d a n e x p e n dit u re o f $ 1 1 2, 6 6 8, 0 0 0. Of t h i s t o t a l d re d gi n g w or kl o a d, 

$ 6 8, 9 4''. ^ 0 0 was ac c o m plis he d b y c o ntr a ct a n d $ 4 3, 7 2 8, 0 0 0 b y G o ver n m e nt 

p l a n t. T h u s, 6 1. 2 7. o f t h e t o t a l d re d gi n g pr o g ra m was p er f o r m e d b y 

c o n tr a ct o r d re d gi n g plc nt wit h o nl y 3 8. 8 7. pe rf or m e d b y G o v er n me nt o w ne d

p l a n t.
9 2 1

2 2. A bre a k d o w n o f t h e dre d gi n g w or kl oa d p er f o r m e d i n F Y 1 9 6 8 b y t h e v a ri o u s 

t y p es o f G o ver n m e nt p l a n t s h o ws t h e f o ll o w i n g:

T y pe o f G o v't Pla nt 7. o f t h e T ota l 7. o f t h e T ota l

G o ver n m e nt Dre d gi n g Pr o gra m G o v't Pla nt C o u ntr y- Wi d e

Pla nt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ i n D oll a rs ( T h o u s. ) Dre d g i n g Pr o gra m Dr e d gi n g P r o g ra m

H o p pe r Dr e d ge s

Pi p eli n e Dr e d ge s

$ 2 7, 6 5 0

7, 0 5 9

6 3. 2

1 6. 1

2 4. 5

6. 3

D u st Pa n Dr e d ge s 6, 0 5 5 1 3. 9 5. 4

B u c k et & Di p pe r Dr e d ge s 1, 8 5 2 4. 2 1. 6

Si d e c a ste r Dr e d ge s 1, 1 1 2 2. 6 1. 0

T OT AL $ 4 3, 7 2 8 1 0 0. ox 3 8. 8 7.

2 3. A d eta ile d a n al y sis o f t h e w o r k ac c o m pli s h e d b y G o v er n me nt h o p p er 

dr e d ge i n F Y 1 9 6 8 ( $ 2 7, 6 5 0, 0 0 0) re v e ale d t h at $ 1 7, 5 5 8, 0 0 0 o f t h i s a m o u nt 

o r 6 3. 5 7. was e x pe n d e d f o r w or k i n e x p o se d l o c ati o n s w h ere d re d gi n g p l a n t 

w o ul d be s u bje ct t o t h e f o rc e s o f t h e oc ea n e n vir o n m e n t. U n der t h e s e 

c o n diti o n s t h e o nl y p r a ctic a b le d re d gi n g p l a n t t o us e w o ul d be s e l f p r o ­

p ell e d se a g oi n g h o p p er d r e d g e s.- C o n v e nti o n al c o n tr a ct o r o w ne d p l a n t 

s u c h as p i p eli n e o r b u c k et dre d g es c a n n ot o p e r ate i n a re a s w h er e s u c h 

a d v er se se a c o n diti o n s e x i s t. I f p r o j e c t s o f t h i s n at u r e we re a d v e rti s e d, 

i t ca n g e n e r all y be e x p ec te d t h at n o bi d s w o ul d be r e c ei v e d. T his ha s 

be e n t h e e x p eri e n c e o n t w o t y p ic al p r o j e c t s i n t h i s c ate g o r y w hic h were 

i n cl u d e d i n t h e a d v ertis e m e nt s c h e d ule. ( S ee J o b N os. 1 1 a n d 1 5 i n 

T a b ula ti o n f o r w or k i n C h arl e st o n H ar b or, S. C. a n d A m br o se C h a n n el s,

N. . r e s p e c ti v e l y ).

2 4. f u rt h e r a n al y sis o f t h e w o r k ac c o m plis he d b y G o ver n m e nt h o p p er 

dre d g e als o s h o w s t h at $ 2, 3 5 0, 0 0 0 o r 8. 5 7. was e x pe n d e d o n o p e r ati o n s i n 

water w a y s w h er e fi x e d dr e d gi n g p l a n t i n t h e c h a n n el w o ul d p r e s e nt a s e ri o u s
9 2 2

za r d t o n a vi g ati o n. Wo ca n n ot de pe n d u p o n t h e dre d gi n g i n d u str y t o 

ac c o m plis h w o r k i n t h i s c ate g o r y b ec a u se t h e t y p e o f p l a n t r e q uir e d, 

h o p p er d re d g e s, are n ot g e n e r all y a v ail a b le i n t h e d re d gi n g i n d u str y.

T he re m ai n d er o f t h e G o ver n m e nt h o p pe r dr e d ge o p e r ati o n s, $ 7, 7 4 2, 0 0 0 

was ac c o m pli s h e d o n p r o j e c t s, w h er e b ec a u se o f f a ct o r s s u c h as t h e dis ta n c e 

t o di k e d dis p o s al are a s o r o p e n w ate r d u m pi n g gr o u n d s, t h e s m all q u a n ti tie s 

i n v ol v e d i n re m o vi n g i s o l at e d a n d s c att e r e d s h o als o r t h e hi g h c o sts of 

m o bil iz ati o n i n r e l a ti o n t o t h e m a g nit u de o f t h e j o b, t h e w or k ca n g e n e r all y 

be pe rf or m e d m ore ec o n o mic all y b y G o v er n me nt h o p p er dr e d ge t h a n b y c o ntr a ct 

p l a n t. S e v e ra l j o b s w h ere t h e w o r k f a ll s w it hi n t h i s c ate g o r y we re i n cl u d e d 

i n t h e a d v ertis e m e nt sc h e d ule a n d t h e r e s u lt s t h e r e o f s u b st a n ti a t e t h e 

a b o v e. ( S ee J o b N os., 1 7, 2 7, 2 8, a n d 2 9 i n T a b ula ti o n f o r H u d s o n Ri v er 

C ha n n el, Os we g o H ar b o r, G re at S o d us H ar b or, a n d R o c h es te r H ar b or, N. Y., 

r e s p e c ti v e l y ). I n t h e G re at La ke s a re a m o st of t h e w or k pe rf or m e d b y 

h o p p er dr e d g e i s ac c o m plis he d b y t h i s t y pe o f G o v er n me nt p l a n t be ca us e of 

t h e f a ct o r s li s t e d a b o ve a n d als o t o p r o vi d e t h e fl e x i b ilit y n e c e ss ar y 

t o a s s u re a q uic k re s p o n se c a p a b ilit y t o re m o ve e m er g e nc y c r iti c a l s h o als 

i n t h e ma n y h a r b o rs a n d water w a y s i n t h e La ke s a r e a.

P oli c y f o r A d v e rtis i n g Dr e d gi n g W or k 

2 5. T he m att e r o f t h e e xte nt t o w hic h .. he C o r ps s h o u l d a d v e rtis e it s 

dre d gi n g w or k de pe n d s o n f a ct o r s a n d p ri n ci p l e s g e n e r all y r e l a t e d t o t h e 

a v a il a b ilit y o f G o v er n me nt p la n t a n d re q uir e m e nts f o r a c q u i siti o n o f ne w 

p l a n t. T he b a sic p ri n ci p l e s u n de r w hic h t h e C or ps a c q uir e s a n d o p e ra te s 

G o ver n m e nt o w ne d dre d g es are as f o ll o w s:
9 2 3

. T he C o r p s s h o ul d p o s s e s s o nl y s u c h d re d gi n g p la n t re q uir e d t o 

ac c o m plis h w or k w hic h t h e d re d gi n g i n d u str y i s i n c a p a ble o f p erf or m i n g 

at re a s o n a ble c o sts o r i n a ti m el y m a n ne r.

b. W or k w ill g e n e r all y be a d v e rti s e d w h e n e v er c o n tr a ct o r p la n t i s 

a v ail a ble t o ac c o m plis h a p a rti c u l a r j o b at a r e a s o n a ble c o st. T hi s 

p ri n c i p l e, h o we ve r, i s s u bje ct t o t h e li m it a ti o n s o f c. bel o w.

c. W he n G o ver n m e nt d re d gi n g p l a n t i s a v ail a ble i t w ill be sc he d u le d

f o r ma xi m u m ec o n o mic u tili z a ti o n .

2 6. T he se p ri n ci p l e s a rc c o n si d ere d s o u n d a n d t o d e via te t h ere fr o m w o ul d 

s e ri o u sl y a f f e c t o u r a b ilit y tc ac c o m pli s h t h e C o r p s m is si o n o f i m pr o vi n g 

a n d m ai n ta i n i n g t h e F e d era l p r o j e ct w at er w a y s. I f a ll w or k pr o g ra m me d f o r 

ac c o m plis h m e nt b y G o ver n m e nt p l a n t we re a d v e rti s e d f o r bi d s, we w o ul d be 

f o rc e d t o sc h e d ule t h e w or k b y G o ver n m e nt p l a n t o n a ra n d o m b a si s, o nl y 

a ft e r bi d o p e n i n g. I t w o ul d r e s u lt i n a l o s s t o t h e G o ver n m e nt o f t h e 

ec o n o mic a d va nt a g e fr o m c o m pl et e u tili z a ti o n of p l a n t a n d fr o m t h e a b ilit y 

t o sc h e d ule i n a d va nc e pr o gra m me d w o r k n et c o n si d ere d s u it a b l e f o r a v ail a ble 

c o n tr a ct p l a n t. I t w o ul d als o i n tr o d u c e c o stl y pr o b le m s s u c h as t h e u n ­

sc h e d ule d la y u p o f pla nt w it h it s r e la te d p e rs o n n el a n d a d m i n is tr ati v e 

a cti o n s, t h e ne e d f o r i n c r e a si n g o ur b u d get r e q u e sts t o c o v er t h e a d d e d 

c o st o f c o n tr a ct o r o p e r ati o n s w hic h c o ul d be as m uc h as 2 5 % g r e at e r t h a n

t h e c o st o f p erf or m i n g t h e w o r k wit h G o ver n m e nt p l a n t, a n d t h e ec o n o mic 

l o s s e s t o water w a y u s e r s a n d t h e g e n era l p u bli c b ec a u se o f t h e i n a b ilit y 

o f t h e C o r p s t o re s p o n d i m m e d iatel y t o t h e re m o v al o f c r iti c a l s h o als .

M - 2 3 9 O - 7 5 - 5 9
9 2 4

n cl u si o n s

2 7. W he n t h e r e s u lt s o f t h e a d v e rtis i n g pr o g ra m are e v al u ate d wit h t h e 

b a sic p ri n ci p l e s g o ve r ni n g t h e o p e r ati o n o f G o ver n m e nt d re d g es t h e 

c o n cl u si o n i s re ac he d t h at i n o r d e r f o r t h e C o r p s t o m ai n ta i n o ur p r oje ct 

w at er w a y s e f f e c ti v e l y , t h e p r e s e nt G o ver n m e nt dr e d ge fl e e t, p a rti c u l a rl y 

t h e h o p pe r d re d g e, m ust be a d e q u ate l y m ai n ta i n e d, m o difie d as n e c e ss a r y 

t o i m pr o v e e f fi cie n c y a n d t o p r o vi d e f o r fl e x i b l e dre d gi n g te c h ni q u e s, 

re pla c e d w he n o b s o le sc e n c e o c c u r s, a n d s u p ple m e nte d b y a d d it i o n al dr e d ge s 

w he n p r oje cte d w o r kl o a d re q uir e m e nts i n d ic ate s u c h n ee d. T his i s a p p ar e n t 

si n c e t h e d re d gi n g i n d u str y d o cs n ot ha ve t h e t y p o o f pl a n t or c a p a b il it y 

r e q uir e d t o ac c o m plis h 7 2 % o f t h e w or k at l o c ati o n s w h ere G o ver n m e nt 

h o p pe r dre d g es o p e r ate . T he re m ai ni n g 2 87, c o ul d p h y sic all y be pe rf or m e d 

' b y t h e d re d gi n g c o ntr a ct o r s b ut at a n a v er a g e i n cre a s e d c o st o f m ore t h a n 

4 0 7. ( E xtr a cte d fr o m A d v erti se m e n t Sc he d u le ) of p er f o r m i n g t h e w o r k b y 

G o ver n m e nt h o p pe r d re d g e. T h er e ma y be s o me c a se s w h ere t h e us e o f c o nt r a c t o r p l a n t ma y be c o m p etiti v e w it h G o ver n m e nt dr e d ge o p e r ati o n s b ut 

t h e s e w o ul d be mi ni m al a n d w o ul d ha ve n o si g n ifi c a n t e f f e c t o n t h e 

C o r p s o v e r - a ll dr e d ge p l a n t r e q uir e m e nts.

2 8. We pr o p o se t o c o n d uct o ur d re d gi n g o p e r ati o n s b y G o ver n m e nt pla nt i n 

ac c o r d a n ce wit h t h e p ri n ci p l e s o utl i n e d i n p ar a g ra p h 2 5. We re c o g niz e 

h o we ver t h at t h e r ela ti o n s h i p bet w ee n t h e d re d gi n g pr o g ra m d e v el o p e d f o r 

ac c o m plis h m e nt b y G o v er n me nt p l a n t a n d t h o se f o r ac c o m plis h m e nt b y 

c o n tr a ct s h o ul d be e q u it a b le . T o t h i s e n d we ha ve e sta bli s h e d a pr o c e d ure 

w h ere b y t h e r e p r e s e n t ati v e s o f t h e d re d gi n g i n d u str y w o ul d me et p e ri o d i c all y 

wit h t h e D i v is i o n E n gi n e er s t o dis c u s s t h e p a rti c u l a r dre d gi n g pr o g ra m i n
9 2 5

e i r r e s p e cti v e r e gi o n s. I t i s i n te n d e d t h at at t h e s e m ee ti n g s 

m att ers p e rta i n i n g t o a d v e rti si n g o f j o b s, pe rf or m a n ce o f w or k b y 

G o ver n m e nt pla nt a n d ot h e r m att e rs o f m ut ua l i n t e r e s t or c o n ce r n 

w ill be dis c u s s e d. I n t h i s m a n ne r, t h e i m ple m e ntati o n of a n y c h a n ge s 

i n t h e pr o g ra m dee me d n e c e ss a r y b y t h e D i v is i o n E n gi n ee r w o ul d be 

e x p e dit e d. S p e cif ic r e q u e sts b y t h e i n d u str y t o a d v e rti s e p a rti c u l a r 

j o b s o r d i n a ril y sc h e d ule d f o r pe rf or m a n ce b y G o ver n m e nt pla nt w ill be 

c r iti c a ll y re vie w e d b y t h e D i v is i o n E n gi n e er i n li g h t o f t h e e x p eri e n c e 

g ai n e d fr o m t h e a d v e rtis i n g pr o g ra m. T he p a rti c u l a r w or k w ill be a d v e rti s e d

i f f o u n d t o be i n t h e b e st i n t e r e s t o f t h e G o ver n m e nt a n d i n c o ns o n a n ce

w it h b u d g eta r y or ot h e r fi s c a l li m it a ti o n s. S e v era l s u c h m ee ti n g s ha ve 

alr e a d y be e n h el d d u ri n g t h e p a st t h r e e m o nt h s o n t h e fi s c a l y e ar 1 9 6 9 

d re d gi n g pr o g ra m. H o we ver, b ec a u se o f t h e r e s t ri c ti o n s a n d li m it a ti o n s o n 

ca s h e x p e n dit u re s i m p os e d b y t h e " R e ve n ue a n d E x p e n dit ure C o ntr ol Act o f 

1 9 6 8" we are s o m e w hat c o n str ai n e d i n t h e i m ple m e n tati o n o f t h i s a d v e rtis i n g 

pr o g ra m b ec a u se of t h e d i f fi c u lti e s i n v ol v e d i n a c c e pti n g a p o t e n ti al 

i n c r e a s e i n e x p e n dit u re s o f u p t o 2 5'/. i n a n y w or k s o a d v e rti s e d. T he 

dre d gi n g i n d u str y r e p r e s e n t ati v e s are a w are o f t h e s e r e s t ri c ti o n s a n d 

t h e i r i m pa ct o n t h e C o r p s d re d gi n g pr o g ra m.

2 9. I t i s b eli e v e d t h at t h e pr o c e d ure we ha ve i n iti a t e d w h ere b y t h e 

de vel o p m e nt o f o u r dre d gi n g pr o g ra m s i s cl o s el y c o o r d i n ate d wit h t h e 

d re d gi n g i n d u str y w ill r e s u lt i n m ore e f fi c i e n t u tili z a ti o n o f b o t h

c o n t r a't a n d G o ver n m e nt pla nt a n d mi ni m iz e c o sts t o t h e U nite d S t ate s 

i n t h e i m pr o ve me nt a n d m ai nt e n a n ce o f o ur n a vi g a ble w at er w a y s. We d o
9 2 6

t f o r e s e e a n y si g n ifi c a n t c h a n ge i n t h e a ll o c ati o n of w or k t o 

c o ntr a ct o r s or i n re q uir e m e nts f o r F e d era l o w ne rs hi p of dre d g es u nle s s

i t i s d e sir e d t o a c c e pt si g n ifi c a n tl y hi g h e r d re d gi n g c o st s.

3 I n cls

1. L is t o f C o r p s Dr e d ge s

2. A d v e rtis i n g Sc he d u le

3. N a rr ati v e S u m mar y, Sa va n n a h H ar b o r, Ga.
N a m n g fitt _ _ _ _ 2. C o m b er _ _ _ _ 3. E s s a y o n s... 4. G o et n al s... 5. H o ff m a n... 6. L y m a n......... 7. M a r k h a m ... 8. H ai n e s « .... 9. Bi d dl e.......... 1 0. D a vi s o n _ _ _ 1 1. H a r d i n g..... 1 2. P a cifi c.......... 1 3. G e ri g........... 1 4. H y d e............. 1 5. M a c k e n zi e. 1 6 M c F arl a n d ■ > Si d e c a sti n g c a p a bilit y. U. S. A R M Y C O R P S O F E N GI N E E R S — T A B U L A TI O N O F D R E D G E S A. H Y D R A U LI C H O P P E R D R E D G E S Di s tri c t Di vi si o n H o p p er c a p a cit y ( c u bi c - y ar d s) L e n gt h ( O / A ) M ol d e d b e a m M a xi m u m l o a d e d dr aft M a xi m u m dr e d gi n g d e pt h F e et I n c h e s F e et I n c h e s F e et I n c h e s F e e t I n c h e s . N e w O rl e a n s.. L M V D 3. 0 6 0 3 5 1 P hil a d e l p hi a.. N A D 3, 0 6 0 3 5 1 .. .. d o ............. N A D 8, 1 1 5 5 2 5 .. .. d o .............. N A D 6, 3 6 1 4 7 6 B u ff al o _ _ _ _ _ _ N C D 9 2 0 2 1 5 ......... d o.............. N C D 9 2 0 2 1 5 ......... d o.............. N C D 2, 7 2 0 3 3 9 D e tr o it.............. N C D 8 8 5 2 1 5 P o rtl a n d........... N P D 3 5 1 ......... d o.............. N P D 7 2 0 2 1 5 ........... d o.............. N P D 2, 7 2 0 3 0 8 ......... d o.............. N P D 5 0 0 1 8 0 J a c k s o n vill e... S A D 3, 0 6 0 3 5 1 ......... d o............ S A D 7 2 0 2 1 5 G al v e st o n........ S W D 1, 6 5 0 2 6 5 ......... d o _ _ _ _ _ _ _ S W D 3, 1 4 0 3 0 0 Pr o p ul- P u m p h or s e p o w e r si o n ----------------------------------------- ( h or s e - Dr e d gi n g P u m p o ut p o w e r) Cr e w ' Y e ar b uilt ( 1 . 1 5 0 ) 2 ( 1 . 1 5 0 ) 2 ( 1 , 8 5 0 ) 2 ( 1 , 3 0 0 ) 2 ( 4 1 0) 1 ( 4 1 0) 1 ( 2, 8 0 0 ) 2 6, 0 0 0 1 9 4 7 ( 3 , 0 0 0 ) 6, 0 0 0 1 9 4 7 8, 0 0 0 1 1 8 1 9 5 0 ( 3 . 0 0 0 ) 4 5 0 0 1 0 3 1 9 3 8 1, 4 0 0 1 9 4 2 1. 4 0 0 1 9 4 5 ( 1 , 0 0 0 ) 5, 3 0 0 1 9 6 0 ( 4 1 0) 1, 4 0 0 1 9 4 2 1 9 4 7 1, 4 0 0 1 9 4 5 4. 2 4 0 1 9 3 9 1, 2 0 0 1 9 3 7 6, 0 0 0 1 9 4 7 1, 4 0 0 1 9 4 5 2, 4 0 0 1 9 2 4 ( 2, 8 0 0) 6, 0 0 0 1 9 6 7
9 2 8


9 3 1

R R A TI V E S U M M A R Y

S A V A N N A H H A R B O R, G A.

1. F o r s e v e r al y e a rs t h e d re d gi n g i n d u str y ha d q u e st i o n e d t h e us e o f 

t h e G o ver n m e nt p i p eli n e dr e d ge Bac o n i n Sa va n n a h H ar b o r i n s i s ti n g t h at 

c o n tr a ct o r pla nt c o ul d ac c o m pli s h t h e w or k a t a l e s s e r c o st t h a n b y 

G o ver n m e nt d re d g e. T h e re f o re , a J o b was i n cl u d e d i n t h e dre d gi n g 

a d v e rtis i n g sc h e d ule f o r t h e re m o v al of 2, 1 0 0, 0 0 0 c u bic y a r d s o f 

m ate ria l ( S ee J o b N o. 7 i n T a b ula ti o n, Sa va n n a h H ar b or, G a.). Se ve n 

bi d s we re re c ei v e d ra n gi n g fr o m $ 4 8 0, 0 0 0 t o $ 6 3 5, 9 0 0 wit h N orf ol k 

Dre d g i n g C o m pa n y s u b m itti n g t h e l o w b i d. I n c o m pa ri n g t h e l o w bi d wit h 

t h e G o ver n m e nt h ir e d la b o r e sti m ate , of $ 3 5 1, 8 4 0 ba se d o n t h e dr e d ge 

B ac o n, i t was d et er m i n e d t h at t h e l o w bi d e x ce e d e d t h e st a t u t o r y 2 5 7.

li m it a ti o n a n d t h e r e f o r e t h e c o n tr a ct was n ot a w ar d a ble.

2. T he l o w bi d d e r str e n u o u sl y p r o t e ste d t h e a d e q ua c y o f t h e G o ver n m e nt 

e sti m ate , ta ki n g p a rti c u l a r e x c e pti o n t o dr e d ge p r o d u cti o n r a t e s, pla nt 

o p e r ati n g c o st s, m ari n e a n d e m pl o y ee s li a b ilit y i n s u ra n c e r a t e s, i n t e r e s t s 

o n c a p it a l i n v e st m e nt, c o m p utati o n s o f c o st p er c u bic y a r d, m o bil iz ati o n 

a n d d e m o biliz ati o n c o st s, a n d r e n t a l c h ar g e s f o r t h e us e o f p er m a n e ntl y' 

i n st a ll e d s h ore a n d p o nt o o n li n e. Str o n g all e g ati o n s we re ma de b y t h e 

l o w bi d d er t h a t t h e G o ver n m e nt e sti m ate was g r o s sl y i n a d e q u ate a n d 

u n r e a li s ti c a n d t h at a ct u al pe rf or m a n ce a t t h e c o st e st i m ate d was 

q u e sti o n a ble . A fte r a t h or o u g h re vie w, t h e G o ver n m e nt e sti m ate was 

I n c re a s e d fr o m $ 3 5 1, 8 4 0 t o $ 3 8 7, 7 1 1 t o p r o vi d e f o r a c o r r e cti o n i n t h e 

ya r d a g e c o m p utati o n s a n d t o i n cl u d e e r e n t a l c h ar g e f o r us e of t h e s h ore 

a n d p o nt o o n li n e . H o we ver, e v e n wit h t h e s e a dj u st m e nts t h e l o w bi d was 

3 0. 6 % i n e x c e ss of t h e G o ver n m e nt e sti m ate . T h e r e f o r e, t h e p r o t e st was 

d e n ie d a n d t h e bi d was i „ e cte d.
9 3 2

. T he dre d g e Bac o n pe rf or m e d t h e w or k bet w ee n A p ri l a n d J ul y 1 9 6 8 

re m o vi n g 1, 8 4 8, 8 2 4 c u bic y ar d s a t a t o t a l c o st of $ 2 8 2, 6 9 0 as c o m pare d 

t o a n e sti m ate d c o st o f $ 4 3 9, 1 3 1 i f t h e sa me q u a nti t y o f m ate ria l ha d 

be e n re m o ve d b y t h e l o w bi d d e r. Pe rf or m a n ce o f t h e w or k wit h G o ver n m e nt 

pla nt i n t h i s i n sta n c e r e s u lte d i n t h e j o b b ei n g c o m pl et e d at 6 5 X o f t h e 

c o st of d o i n g t h e sa me w or k b y c o n tr a ct a n d a b o ut 1 87. le s s t h a n t h e 

e st i m ate d c o st i n t h e G o ver n m e nt e sti m ate a s a dj u ste d f o r t h e q u a n titi e s 

a ct u all y re m o ve d.
C O R P S E N GI N E E R S — CI V I L W O R K S, FI S C A L Y E A R S 1 9 7 0 T H R O U G H 1 9 7 4 [ V olu m e of c u bi c y ar d s a n d t ot al c o st ar e e x pr e s s e d i n t h o u s a n d s] Di vi si o n s V ol u m e ( c u bi c y ar d s) 1 9 7 0 C o st T ot al U nit 1 9 7 1 V ol u m e C o st V ol u m e ( c u bi c ---------------------------- ( c u bi c y a r d s) T ot al U n it y ar d s) 1 9 7 2 C o st T ot al U nit 1 9 7 3 V ol u m e C o st ( c u bi c ---------------------------- y ar d s) T ot al U ni t 1 9 7 4 V ol u m e C o st ( c u bi c ------------------------------ y ar d s) T ot al U n it C O R P S P L A N T N E W W O R K A N D M A I N T E N A N C E D R E D GI N G N e w w o r k — G o v er n m e nt pl a n t: N e w E n gl a n d ................................. N ort h Atl a n ti c ............................... S o ut h A tl a n ti c.. ........................... O hi o Ri v e r ..................................... N ort h C e nt r al ................................ Mi s s o uri Ri v e r .............................. L o w e r Mi s si s si p pi ........................ S o ut h P a cifi c................................. S o ut h w e st e r n ................................ N ort h P a cifi c. T o t a l.... 2, 2 3 9 . 0 $ 2, 5 0 4. 5 $ 1. 1 2 6 6. 1 7 4. 0 1. 1 2 7 1 7. 0 2 4 8. 2 . 3 5 5 4 4. 8 9 3 2. 4 1. 7 1 4 4 1. 0 4 2. 2 . 1 0 8, 2 7 3 . 0 1, 9 4 7. 0 . 2 4 7 7 2. 0 3 2 0. 8 . 4 2 1 3, 0 5 2 . 9 6, 0 6 9. 1 . 4 6 1 3, 3 1 6 . 9 6, 3 8 6. 7 . 4 8 1, 4 6 3. 8 $ 1, 5 6 7 . 4 $ 1. 0 7 4 6 2. 0 5 7 1. 7 1. 2 4 2 3 3. 2 8 7. 3 . 3 7 9 4 0. 0 1, 3 3 8. 7 1. 4 2 6 1 0. 0 3 5 5. 0 . 5 8 8, 9 0 6. 7 2, 0 8 2. 0 . 2 3 7 0 1. 2 3 8 4. 6 . 5 5 1, 5 2 6. 8 $ 1, 1 2 0. 0 $ 0. 7 3 2, 6 9 7. 9 1, 0 2 1. 8 . 3 8 6 5 1. 4 2 0 2. 1 . 3 1 1, 0 8 2. 1 1, 3 3 1. 5 1. 2 3 1, 3 7 1. 0 4 7 1. 0 5, 6 5 5. 2 2, 0 1 9. 0 . 3 6 1 2, 9 8 4 . 4 6. 1 6 5 . 4 . 4 7 1, 0 6 0. 7 $ 1, 1 7 6 . 0 $ 1. 1 1 2, 1 5 2. 0 1, 2 2 1. 0 . 5 7 6 3 5. 8 2 0 7. 9 . 3 3 1, 1 1 6. 8 1. 5 7 6. 8 1. 4 1 4 6 2. 0 7 4. 2 . 1 6 1, 3 4 7. 0 4 7 0. 0 . 3 5 1, 4 6 7. 9 8 9 2. 0 . 6 1 8. 2 4 2. 2 5, 6 1 7. 9 . 6 8 1, 7 9 8. 3 $ 1, 9 0 2 . 7 $ 1. 0 6 1, 4 9 9. 3 3, 1 5 8. 0 2. 1 1 2 2 0. 9 1 1 6. 9 . 5 3 5 7. 0 1 4 7. 9 2. 5 9 1, 6 3 3. 0 5 8 6. 0 . 3 6 2, 1 3 4. 6 9 1 7. 0 . 4 3 7, 3 4 3. 1 6. 8 2 8. 5 . 9 3 M ai nt e n a n c e — G o v er n m e nt pl a nt: N e w E n gl a n d ................................. N or t h Atl a n ti c ............................... S o ut h Atl a n ti c ............................... O hi o Ri v e r ...................................... N o rt h C e n tr al ................................ Mi s s o uri R i v e r ...... ................ L o w e r Mi s si s si p pi ........................ S o ut h P a cifi c ................................. S o ut h W e s t e r n .............................. N or t h P a cifi c .................................. T o t al ............................................ C O N T R A C T N E W W O R K A N D M A I N T E N A N C E D R E D GI N G 1 5 1. 1 1 3 6. 6 . 9 0 1 4, 8 7 9 . 9 8, 9 2 3. 8 . 6 0 1 9, 1 5 4. 6 7, 5 6 6. 1 . 4 0 3, 4 2 1. 9 9 4 6. 8 . 2 8 1 1 , 8 6 1 . 1 7, 3 7 4. 0 . 6 2 1, 2 4 4. 6 7 7 3. 7 . 6 2 6 5, 5 7 5. 0 8, 7 1 4. 8 . 1 3 3, 7 3 4. 5 1, 1 4 5. 0 . 3 1 9, 7 0 7. 0 1, 8 4 4. 0 . 1 9 1 3, 0 0 2 . 2 5, 6 6 2. 3 . 4 4 1 6 0. 1 2 1 5. 3 1 5, 7 4 5. 6 9, 1 5 0. 6 . 5 8 1 8, 8 8 0. 2 7, 7 2 4. 6 . 4 1 3, 9 6 6. 1 1, 3 4 2. 3 . 3 4 9, 4 6 9. 0 7, 0 4 3. 8 . 7 4 2, 4 7 9. 0 1, 3 5 8. 0 . 5 5 6 7, 7 5 9. 4 9, 1 6 7. 8 . 1 4 5. 1 5 9. 0 1, 6 9 7. 5 . 3 3 5, 7 6 2. 2 1, 7 5 6. 0 . 3 0 1 5, 8 8 3. 5 6, 3 1 0. 6 . 4 0 5 1. 0 5 7. 5 1. 1 3 1 6, 0 5 6. 7 1 0, 2 6 2. 7 . 6 4 1 7, 5 6 4. 7 8, 0 3 5 . 8 . 4 6 3, 3 6 6. 9 1, 0 4 7. 7 . 3 1 9, 6 8 7. 9 7, 3 7 5. 2 . 7 6 2, 3 1 6. 0 1, 4 8 0. 0 . 6 4 6 7, 9 8 3. 6 9, 7 3 0. 6 . 1 4 4, 7 4 4. 0 1, 7 6 7. 0 . 3 7 8, 5 5 8. 2 2, 2 5 5. 0 . 2 6 1 4, 9 8 4. 8 6, 8 9 9. 9 . 4 6 1 4 2 , 7 3 1. 9 4 3, 0 8 7. 1 . 3 0 1 4 5, 2 6 4. 1 4 5, 7 6 6. 5 . 3 2 1 4 5 , 3 1 3. 8 4 8, 9 1 1. 4 . 3 4 1 1 0. 1 2 4 1. 2 2. 1 9 1 3, 5 5 7. 2 1 0, 6 5 2. 7 . 7 9 1 3, 7 0 6. 0 7, 6 1 2. 0 . 5 6 3, 0 6 1. 3 1, 1 5 0. 2 . 3 8 8, 8 4 7. 2 7, 7 0 5. 0 . 8 7 1, 0 7 0. 2 1, 0 2 2. 7 . 9 6 7 9, 3 4 2. 7 9, 8 4 6. 0 . 1 2 4, 0 5 1. 5 1, 9 2 0. 0 . 4 7 1 1, 3 1 4. 3 3, 8 3 5. 0 . 3 4 1 0, 3 1 1. 4 6, 1 2 3. 2 . 5 9 1 4 5, 3 7 1. 9 5 0, 1 0 8. 0 . 3 5 2 7 3. 9 4 5 8. 4 1. 6 7 6, 7 0 3. 8 8, 1 9 0. 4 1. 2 2 1 6, 4 3 5. 8 1 0, 0 3 7. 4 . 6 1 4, 6 3 8. 2 8 7 8. 7 . 1 9 1 1 , 1 7 2 . 9 9, 3 8 9. 1 . 8 4 2, 9 2 4. 3 1, 7 2 1. 8 . 5 9 1 0 0, 7 0 7. 4 1 9, 9 9 4 . 3 . 2 0 6, 6 1 5. 0 2, 7 6 7. 0 . 4 5 2 4, 5 6 4. 5 4, 4 8 5. 0 . 1 8 9, 8 2 7. 5 4, 6 1 0. 7 . 4 7 1 8 3, 4 1 3. 3 6 2, 5 3 2. 8 . 3 4

9 3 3 N e w w o r k — C o nt r a ct: .................. 2. 3 3 7. 5 4. 2 5 9. 1 1. 8 2 N e w E n gl a n d............ N ort h Atl a n ti c.......... 7 5. 3 4, 4 9 2. 9 1. 0 0 S o ut h Atl a n ti c........... .................. 1 7, 8 7 4 . 5 6. 0 4 2. 8 . 3 4 O hi o Ri v e r.................. .................. 0 N or t h C e nt r al............ 4. 4 6 0. 3 4, 3 7 1. 7 . 9 8 Mi s s o uri Ri v e r-------- L o w er Mi s si s si p pi.. ................ 5, 7 8 8. 3 1, 1 3 3. 3 . 2 0 S o ut h P a cifi c............. S o ut h w e st er n _ _ _ _ _ 3 9, 1 9 2. 8 9, 4 5 3. 0 . 2 4 4. 6 5 4 . 8 9, 1 1 1. 3 1. 9 6 2, 3 1 6. 8 5, 2 2 1. 3 2. 2 5 1 1, 9 8 5 . 7 1 1, 0 8 9. 3 . 9 3 1 0, 1 6 0 . 9 1 1, 7 6 2 . 8 1. 1 6 1 4, 4 8 5. 4 8, 5 7 0. 6 . 5 9 1 4, 2 2 3. 9 1 1, 9 5 3 . 0 . 8 4 7 5. 5 7 5. 5 1. 0 0 1, 2 0 4. 8 1, 1 5 1. 3 . 9 6 6 6 7. 6 1, 3 1 2. 7 1. 9 7 2 3 5. 3 7 8 8. 9 3. 3 5 5, 5 7 5 . 5 1, 1 0 5. 2 . 2 0 1 1, 5 7 8 . 0 2. 3 8 1. 1 . 2 1 2 4, 3 9 9. 5 8, 9 8 4. 0 . 3 7 6, 2 0 7. 5 2, 5 3 9. 9 . 4 1 1 8 8. 2 1, 5 2 5. 8 8. 1 1 6 4. 6 2 1 8. 0 3. 3 Z 1 0. 2 0 9. 9 1 4. 2 6 9. 9 1. 4 0 3. 8 5 7. 2 6. 1 0 2. 3 1. 5 8 2, 3 4 5. 0 6, 5 9 3. 0 2. 8 1 4, 0 8 5. 6 9, 3 1 7. 0 2. 2 8 3 3 5. 7 2 9 6. 6 . 8 8 3 3 3. 1 5 9 1. 6 1. 7 8 2 0 4. 6 3, 6 9 7. 2 1 8. 0 7 2 8 0. 0 9 5 4. 9 3. 4 1 4, 8 1 7. 0 8 3 3. 8 . 1 7 2 4, 0 5 5. 4 5, 9 7 9. 1 . 2 5 3 8 2. 0 5 3 9. 0 1. 4 1 1, 2 9 0. 0 2, 2 4 0. 0 1. 7 4 3 7 8. 6. 6 5 0. 5 1. 0 4 7, 2 3 3. 5 2, 9 8 6. 0 . 4 1

9 3 5

O F FI C E R S

J. A D O W N S

P R E SI D E N T

E. D. W A T T L E S

VI C K P R K Sl O K N T

F R E D R. H A Z A R D

VI C K P R E SI D E NT

H o n o r a b l e M i k e G r a v e l

C h a i r m a n , S u b c o m m i t t e e o n W a t e r R e s o u r c e s 

C o r a n i t t e e o n P u b l i c W o r k s 

U n i t e d S t a t e s S e n a t e 

W a s h i n g t o n , D . C . 2 0 5 1 0

WI L LI A M S. H U L L

S E C R E T A R Y • T R E A S U R E R

D e a r S e n a t o r G r a v e l :

DI R E C T O R S

H. G E O R G E D E N T. J R.

M A Y LI N H. G R E A S E R

WI L LI A M S. H U L L

W e a p p r e c i a t e t h i s o p p o r t u n i t y t o m a k e a f e w o c m e n t s o n t h e 

r e c e n t l e t t e r f r o m G e n e r a l M c I n t y r e c o n c e r n i n g t h e c o r p o r a t i v e 

c o s t s o f C o r p s ’ a n d I n d u s t r y d r e d g i n g .

J. W. B E A N

WI L LI A M P. B O L A N D. J R

O. M O A U T R E A U X

E Z R A S C N SI B A R

G A R L A N D E V E RI S T

A R T H U R A. RI E D E L

G UI L F O R D D W A R E

E M O F FI CI O

W A L T E R H. G A H A G A N

H. F. S C H O O N

L. E. Y E A G E R

W A S HI M T O N

R E P R E S E N T A TI V E

B A R R Y S U L LI V A N

I n t h e C o r p s o f E n g i n e e r s F Y 1 9 6 8 P r o g r a m f o r A d v e r t i s i n g 

D r e d g i n g J o b s , t h e s c h e d u l e w a s i n d e e d l i m i t e d t o o n l y t h e l a s t 

h a l f o f t h a t f i s c a l y e a r , b u t i t a l s o s h o u l d b e p o i n t e d o u t 

t h a t t h e c h o i c e o f j o b s w a s b a s e d o n t h e u n i l a t e r a l j u d g m e n t 

o f t h e C o r p s o f E n g i n e e r s . I n d u s t r y w a s n o t a f f o r d e d t h e 

o p p o r t u n i t y t o a s s i s t i n t h e s e l e c t i o n o f t h e s e j o b s , w h i c h I 

b e l i e v e w o u l d h a v e m a t e r i a l l y i m p r o v e d t h e r e s u l t s o f t h a t y e a r ' s 

a d v e r t i s i n g p r o g r a m . E n c l o s e d i s a s u n r a r y o f t h e F Y 1 9 6 8 P r o g r a m 

f o r A d v e r t i s i n g D r e d g i n g J o b s , w i t h n o t e s a s m a d e b y t h e C o r p s 

o f E n g i n e e r s , t o w h i c h w e h a v e a d d e d s o m e c o m m e n t s .

I n r e p l y t o t h e c a i m e n t t h a t I n d u s t r y ' s b i d s r e p r e s e n t s t e d a 

" d i f f e r e n t i a l o f 3 0 % o v e r t h e c o s t o f p e r f o r m i n g t h e w o r k w i t h 

C o r p p l a n t , " I m u s t p o i n t o u t t h a t t h e r e w e r e a d v e r t i s e d p r o j e c t s 

t h a t s h e w e d s a v i n g s o f u p t o 5 9 % o f t h e h i r e d l a b o r e s t i m a t e , 

t h a t s e v e r a l o f t h e a d v e r t i s e d p r o j e c t s w e r e u n s u i t a b l e f o r b i d 

b e c a u s e t h e s n a i l s i z e o f t h e j o b n e c e s s i t a t e d h i g h m o b i l i z a t i o n 

c o s t s f o r i n d u s t r y , a n d t h a t s e v e r a l o f t h e e n t r a n c e a n d b a r 

c h a n n e l p r o j e c t s w e r e n o t e x p e c t e d t o b r i n g a r e s p o n s e f r o m 

i n d u s t r y . T h e C o r p s r e a d i l y a d n i t s t h a t t h e s p e c i f i c a t i o n s 

f u r n i s h e d t h e c o n t r a c t o r f o r b i d a r e m o r e r e s t r i c t i v e t h a n t h o s e 

t h e y a r e r e q u i r e d t o w o r k u n d e r w i t h g o v e r n m e n t p l a n t , a n d w i l l , 

t h e r e f o r e , r e s u l t i n h i g h e r c o s t s t o i n d u s t r y . T h e N a t i o n a l
9 3 6

D r e d g i n g S t u d y c o n c l u d e d t h a t " u n d e r t h e c i r c u m s t a n c e s , c o s t c o m p a r i s o n s 

m u s t b e m a d e w i t h g r e a t c a u t i o n a s d a t a o n C o r p s a n d I n d u s t r y o p e r a t i o n s 

a r e n o t d i r e c t l y c o m p a r a b l e " a n d t h a t t h e C o r p s ' h i r e d - l a b o r e s t i m a t e s 

d o n o t i n c l u d e p r o f i t , s t a t e a n d l o c a l t a x e s , p e r f o r m a n c e a n d p a y m e n t 

b o n d s a n d o t h e r c o s t s w h i c h t h e c o n t r a c t o r s a r e s u b j e c t e d t o ; a n d t h e 

f r e e d o m o f t h e G o v e r n m e n t f r o m t h e p r o f i t / l o s s d i s c i p l i n e , w h i c h m u s t 

b e f a c e d b y t h e c o n t r a c t o r .

T h e t a b u l a t i o n o f c o s t s f o r C o r p s a n d I n d u s t r y f o r c o m p a r i s o n c a n b e v e r y 

m i s l e a d i n g b e c a u s e b o t h t h e t y p e s o f d r e d g i n g w o r k d o n e a n d t h e u n i t 

o f m e a s u r e m e n t i s n o t t h e s a m e f o r e a c h o f t h e p a r t i e s . I n d u s t r y m a i n ­

t a i n s , a n d A D L a g r e e d , t h a t t h e " c u b i c y a r d " m u s t b e e q u a l f o r b o t h p a r t i e s 

a n d t h a t o o n p a r a b l e c o s t s b e u t i l i z e d i n c o m p a r i n g p r i c e s f r o m t h e C o r p s 

a n d I n d u s t r y . I t s h o u l d b e r e m e m b e r e d t h a t I n d u s t r y b i d s a f i r m p r i c e 

f o r a s p e c i f i c j o b , w h e r e a s t h e C o r p s s u b m i t s a n " e s t i m a t e " o f c o s t s 

f o r t h e w o r k . A g a i n G e n e r a l M c I n t y r e h a s s t a t e d t h a t " t h e d i f f e r e n t i a l 

i n c o s t s o v e r p e r f o r m i n g t h e w o r k w i t h C o r p s e q u i p m e n t h a s i n c r e a s e d 

s i g n i f i c a n t l y d u r i n g t h e p a s t f i v e y e a r s . " T h i s i s a m i s l e a d i n g s t a t e ­

m e n t . C o r p s a n d I n d u s t r y u n i t p r i c e s c a n n o t , a s A D L s a i d r e p e a t e d l y , b e 

c o m p a r e d . T h e b a s e s o f m e a s u r e m e n t , n o n c c m p a r a b l e c o s t s , d i f f e r e n c e i n 

w o r k l o a d - i . e . n e w w o r k a n d m a i n t e n a n c e , a n d t h e b a s i c d i f f e r e n c e i n 

d r e d g i n g t o o l s - c u t t e r h e a d s a n d b u c k e t d r e d g e s v e r s u s h o p p e r d r e d g e s , 

m a d e u n i t p r i c e c o m p a r i s o n s i m p o s s i b l e . T h e C o r p s o p e r a t e s o n a " p l a n t 

r e n t e d , r a t e " t h a t , i n e f f e c t , i s o n e y e a r o u t o f d a t e w i t h t h e c o s t s t h a t 

i t a c t u a l l y e x p e r i e n c e s i n t h e c u r r e n t f i s c a l y e a r . F u r t h e r , t h e C o r p s 

w o r k t e n d s t o b e l e s s a f f e c t e d b y e n v i r o n m e n t a l r e s t r i c t i o n s .

D u r i n g t h e p e r i o d f r o m 1 9 6 4 t h r o u g h 1 9 7 3 , A . D . L i t t l e , I n c . f o u n d t h a t 

" o f t h e 1 5 9 9 b i d s a n a l y z e d , s e m e 2 3 % w e r e l e s s t h a n 8 0 % o f t h e G o v e r n m e n t 

e s t i m a t e , 3 0 % w e r e f r o m 8 0 % t o 1 0 0 % o f t h e e s t i m a t e , 4 1 % w e r e f r o m 1 0 0 % 

t o 1 2 5 % o f t h e e s t i m a t e , a n d t h e b a l a n c e o f 6 % e x c e e d e d 1 2 5 % o f t h e 

e s t i m a t e . " T h e r e f o r e , 5 3 % w e r e l e s s t h a n t h e G o v e r n m e n t e s t i m a t e o f 

c o s t s a n d 9 4 % w e r e w i t h i n t h e 1 2 5 % .

T h e s t u d y h e l d t h a t f r o m a r e v i e w o f t h e s e b i d s , t h e o u t l o o k f o r l o w e r 

p r i c e s t o t h e G o v e r n m e n t i s g r e a t l y e n c h a n c e d i f t h r e e o r m o r e C o n t r a c t o r s 

b i d o n a s p e c i f i c j o b . I t w o u l d s e e n t o f o l l o w t h a t i f I n d u s t r y s h a r e s 

i n t h e s e l e c t i o n o f t h e w o r k t h a t i s t o b e p u t o u t f o r b i d , a s i s c u r r e n t l y 

c o n t e m p l a t e d i n t h e c u r r e n t " t e s t i n g o f t h e n e r k e t " p r o g r a m , a n d f u r t h e r , 

t h a t t h i s w o r k w i l l b e p u t o n a c o n t i n u i n g b a s i s , t h a t t h e n t h e s o u g h t - f o r 

i n c r e a s e d p a r t i c i p a t i o n w i l l b e c o m e a r e a l i t y .
9 3 7

T h e C o r p s h a s t r e m e n d o u s l e v e r a g e w i t h p r e s e n t p o l i c y o f 1 0 0 % u t i l i z a t i o n 

o f G o v e r n m e n t p l a n t , w h e r e a s I n d u s t r y h a s b e e n u n a b l e t o m a i n t a i n e v e n 

5 0 % u t i l i z a t i o n o f c o n t r a c t o r p l a n t a n d m u s t c o m p e t e f o r a s h r i n k i n g 

v o l u m e o f w o r k .

Y o u r s v e r y t r u l y ,

c b r

e n c . . .

Si - O 6 £ t- » S
9 4 0


9 4 3

9 4 5

C O R P S O F E N GI N E E R S O V E R SI G H T H E A RI N G S — 1975

F R I D A Y, J U N E 2 0, 1 9 7 5

U. S. S e n a t e

o m mi t t e e o n Pu b li c Wo r k s , 

u b c o m mi t t e e o n Wa t e r Re s o u r c e s

W as hi n gt on, D. C.

T he s u bc o m mittee met, p urs ua nt t o recess, at 9: 4 0 a. m., i n r o o m 

4 2 0 0, Dir kse n Se nate Office B uil di ng, Se nat or Mi ke Gra vel (c hairma n of t he s u bc o m mittee) presi di n g.

Prese nt: Se nat ors Gra vel, D o me nici, a n d Staff ord.

Se nat or G r a v e l . T he heari n g will c o me t o or der.

T he pr o ble m t hat we ha d yester da y was c o m p o u n de d b y s o me 

acti o ns of t he Se nate yester da y after n o o n. T hat is, t hat u n der t he 

s pecial or der, we ca n o nl y meet n o w u ntil 1 0: 3 0, w hic h gi ves us a n 

h o ur of testi m o n y. We d o wa nt t o acc o m m o date t h ose w h o are fr o m 

o ut of t o w n beca use we will sc he d ule a n ot her da y of heari n gs t o 

acc o m m o date t h ose w ho are i n t he e n vir o ns of Was hi n gt o n.

I will c ha n ge t he or der of t he p u blis he d wit nesses here. B ut als o 

I will tr y t o i m p ose u p o n t he wit nesses t o reall y stress t he virt ues of 

bre vit y, s o t hat we ca n tr y t o hear e ver y b o d y. All state m e nts will 

be ta ke n f or t he rec or d a n d t he rec or d is o pe n t o acce pt t he stat eme nts u ntil t he mi d dle of J ul y. S o I t hi n k e ver y b o d y ca n be acc o mm o date d. I j ust t hi n k we ha ve t o li mit t he a m o u nt of c oll o q uy we 

ha ve here.

O ur first wit ness is J o h n Marli n, direct or of t he C oaliti o n o n A merica n Ri vers, a n d Mr. T h o mas Clafli n, pr ofess or of bi ol o gy, U ni versit y 

of Wisc o nsi n. Per ha ps y o u c o ul d b ot h c o me t o t he ta ble. Mr. Marli n, 

w h y d o n’t y o u start off first.

S T A T E M E N T O F J O H N M A R LI N, DI R E C T O R, C O A LI TI O N O N 

A M E RI C A N RI V E R S, C H A M P AI G N, I L L.

Mr. M a r li n . I a m J o h n Marli n, e xec uti ve direct or of t he C oaliti o n 

o n A merica n Ri vers. It is a n h o n or t o be here a n d I h o pe t hat I ca n 

ma ke a c o ntri b uti o n t o y o ur i n vesti gati o n.

T he decisio ns ma de o n t he f ut ure of t he na vi gati o n s yste m d uri n g 

t he ne xt fe w years will deter mi ne tra ns p ortati o n a n d e n vir o n me ntal 

p olic y i n t he Mi d west f or t he re mai n der of t he ce nt ur y. F or t his 

reas o n, it is necessar y t hat t he decisi on t o mai ntai n, e x pa n d, or disc o nti n ue t he e xisti n g s yste m be base d o n a fir m u n dersta n di n g of t he 

nat ural res o urces a n d e xisti n g t otal tra ns p ortati o n s yste m of t he 

Mi d west.

At t he prese nt ti me o ur tra ns p o rtati o n s yste m is i n a state of c ha os 

a n d ma n y q uesti o ns a b o ut t he s ocial, ec o no mic, a n d e n vir o n me ntal
9 4 6

s o u n d n ess of water w a ys ha v e bee n raise d. I d o n ot prete n d t o ha v e 

a ns w ers t o t he q ue sti o ns b u t res p ectf ull y p oi nt o ut t h at t he y s h o ul d 

be a ns w ere d bef ore, n ot aft er, t he Nati o n is c o m mitte d t o t he mas si ve 

na vi gati o n e x pa nsi o n e n vi si o n e d b y t he C or ps of E n gi ne ers a n d t he 

water wa y l o b b y.

Se v eral pr o ble ms e xi st i n t he c u rre nt na vi g ati o n sit uati o n w hic h 

ma ke it virt uall y i m p o ssi ble f or t he p u blic t o bec o m e a de q u atel y 

i nf o r me d a n d acti vel y i n v ol ve d wit h t he iss ues. I will list s o me of t he 

pr o ble ms a n d c o m me nt w her e a p pr o pri ate.

T h at t here is n o nati o nal tra ns p o rtati o n p olic y is o b vi o us. T h e 

differ e nt m o de s o p erate u n der diff ere nt re g ulati o ns a n d recei ve s u b ­

si dies i n a n u ne q ual ma n n er, if at all. A n atte m pt m ust be ma d e t o 

p u t t he maj or m o des o n a n e q u al c o m petiti v e basi s or we will r u n t he 

ris k of l osi n g s o me ele me nts of t he Nati o n’s tra ns p o rtati o n i n d u str y.

T h e i m pa ct of t he na vi g ati o n s yst e m o n fl o o ds, t he ec o n o mies of 

la n d -l oc ke d re gi o ns, t he e n vir o n me nt, a n d ot h er m o d es of tra ns p o r ­

tati o n is n ot k n o w n:

T h e pr o p ose d i ncr ease i n de pt h fr o m 9 t o 12 feet of t he i nla n d 

na vi g ati o n s yst e m ma y ha v e far- rea c hi n g i m pacts, t he e xte nt of 

w hic h is n ot k n o w n. T h e p ote ntial i m pacts re q uir e a nal ysis bef ore t he 

s yste m is e x p a n d e d.

T h e c or ps has n ot d o n e s u bsta ntial i n v esti gati o n s of t he i m pa ct of

ire se nt c ha n nels o n t he e n vir o n me nt. T he dr aft EI S f or t he d u plicate 

oc ks states : “ B eca use of t he pre se nt de art h of k n o wle d ge i n t he are a 

of na vi g ati o n al i m p act s, t he a b o ve disc us si o n re p res e nt s o nl y t he p os ­

si ble l o n ^-t er m i m pacts of t he d u pli cate l oc ks pr ojects, a n d as s uc h, is 

s p ec ulati ve.” C ol o nel Peter s o n, of t he St. L o ui s di strict, ma d e t he 

f oll o wi n g st at e m e nt a b o ut c o m pre h e nsi ve i m pa ct st u die s of l oc k N o. 

26 o n t he u p per Missi ssi p pi: “ T he 4- m o nt h, s h o rt-ter m st u d y will 

res ult i n a s u p ple m e nt t o t he EI S w hic h will d eli n eat e salie nt i m p acts, 

assess t h eir rel ati v e i m p orta nce wit h res p ect t o eac h alt er n ati ve, a n d 

pr o vi d e a fra m e w or k f or a f ull y c o o r di n ate d c o m pre h e nsi ve st u d y. A 

preli mi na r y esti m ate f or t his t y pe of st u d y is $2 milli o n a n d w o ul d 

ta k e a mi ni m u m of 5 ye ar s.” Cle arl y, t here is a nee d t o lear n w h at 

t hes e i m pa cts are. Fi ve ye ars is n ot t o o l o n g t o wait.

A c o n si de ra bl e b o d y of e vi d e nce i n dicates t h at fl o o d cre sts i n t he 

vici nit y of St. L o uis are risi n g d ue t o na vi gati o n a n d le vee str uct ur es. 

Fa r m ers i n L o uisia n a are als o c o nc er ne d a b o ut w h at t he y call c or psca us e d fl o o di n g. T h e i m pa ct of c ha n nel c o n stri cti o n f or na vi gati o n 

nee ds i n v esti gati o ns.

Water wa y pr o m oters are q uic k t o clai m t h at water wa ys be nefit 

re gi o nal ec o n o mie s b y dra wi n g i n d u str y wit h l o w-c ost tra ns p o rtati o n. 

If t hi s is tr u e, water w a ys m ust ha v e a n e q u all y a d v erse i m pa ct o n 

la n dl oc k e d citi es w hic h de pe n d o n ot he r m o des of tra ns p o rt. A st u d y 

is nee d e d t o det er mi ne if t he attr acti o n of i n d u str y t o water w a ys is 

act uall y hel p f ul t o t he nati o nal ec o n o m y.

Railr o a ds clai m t h at t he y are gra d u all y bei n g f orce d o ut of b usi ne ss 

beca u se t he y ca n n ot c o m pete wit h s u bsi dize d bar g e rat es. If t his is 

tr u e, t he Mi d w est ca n e x p ect ma n y m or e railr oa d s t o g o ba n k r u pt i n 

t he f ut ure. M a n y pe o ple i n t he Mi d w est are c o ncer ne d a b o ut t he i m ­

pa ct t h at a f o urf ol d i ncre ase i n bar g e traffic will ha v e o n railr oa d s. If 

t he r ailr oa ds g o u n d er, o ur la n dl oc k e d citie s will be t otall y d e p e n de nt 

o n tr u c ks, w hic h use m ore f uel a n d are m ore c ostl y.
9 4 7

U nt il rec e ntl y, it was belie ve d t h at bar g ps were m or e f uel efficie nt 

t ha n rail r oa ds. T h e water w a y l o b b y has ma d e m uc h of t hi s i n rec e nt 

yea rs. N o w ne w st u dies e xist w hic h s h o w rail r oa ds t o be m or e ef ­

ficie nt f or si milar c o m m o dities o v er c o m peti n g r o utes. T h e q ue sti o n of 

f uel c o n s u m pti o n nee ds t o be i n v esti gate d i n a defi niti ve ma n n er.

T h e ec o n o mic efficie nc y of water wa y pr ojects is i n seri o us d o u bt. 

T h e c u rre nt met h o d of c o m p uti n g be n efits o n t he basi s of rate sa vi n gs 

is n ot a tr u e i n dicati o n of val u e. Be n efits s h o ul d be c o m p ute d o n a n 

act ual c ost basi s at a realistic i ntere st rat e. Dr. R o be rt Ha ve ma n, a 

Wisc o nsi n ec o n o mi st, c o ncl u de d t h at t he Illi n ois W ate r w a y ha d a 

be nefit-t o-c ost r ati o of 1.72 w he n c o m p ut e d o n a n act ual a n d pr ojecte d 

rate basi s at 3 per ce nt i nt ere st. O n a n act ual a n d pr ojecte d c ost basis 

t he water wa y ha d a be n efit-t o -c o st rati o of 0.72 at 3 perce nt a n d o nl y 

0.4 4 at 5 per ce nt i nt ere st. It is p ossi ble t h at t hi s water wa y c ost s t he 

nati o n al ec o n o m y m ore t h a n it is w o rt h.

T his is a partic ula rl y rel e v a nt t h o u g ht w he n o ne c o nsi der s t h at 

t he pr o p o se d d u plicate l oc ks will c ost at lea st $7 00 milli o n. T h e 

official be n efit-t o-c ost rati o of t his pr oject re p ort e d t o C o n gr ess ha s 

decli ne d stea dil y. It was 3.5 i n fiscal ye ar 1971, 2.7 i n fiscal ye ar 1973, 

2.3 i n fiscal ye ar 1975, a n d 2.1 i n fiscal ye ar 1976. At t his rate it will 

be bel o w u nit y bef ore c o n str u cti o n sta rts.

T h e Miss o uri Ri ve r pr o vi des a n e xcelle nt e xa m ple of t he lac k of 

pla n ni n g c urre ntl y d o ne o n res o urc e-relate d matters. Na vi g ati o n, 

pi peli nes, gasific ati o n pla nts, p o w er pl a nts, a n d irri gati o n are all 

c o m peti n g f or Miss o uri wat er. T h e c or p s is c o nc er ne d t h at wit h dra wals 

of Miss o uri water will i m pa ct o n t he pr o p o se d 12-f o ot Missis si p pi 

c ha n nel a n d e xisti n g 9-f o ot c ha n nel o ver t he ne xt 50 years. If t he 

Nati o n di v ert s traffic t o bar ges o ver t he ne xt half ce nt u r y a n d t he 

ri ve r fl o ws decrea se, mai nt ai ni n g na vi gati o n de pt h s will re q uire h u g e 

o utla y s of a d diti o n al f u n d s. T h e pri o ritie s f or water use s h o ul d be set 

bef ore t he Nati o n is c o m mitte d t o 12-f o ot na vi gati o n.

T h e c or ps a ntici p ate s nee di n g 1.3 milli o n acre-feet of l o w-fl o w 

st ora ge f or a 12-f o ot a n d 5.2 milli o n acr e-f eet f or a 15-f o ot Missi ssi p pi 

c ha n nel. M ulti p ur p ose reser v oirs t o pr o vi de t his st or a ge will re q uire 

1 milli o n acres of la n d. T his t o o s h o ul d be c o nsi d ere d i n t he li g ht of 

nati o n al rat h er t ha n na vi gati o n nee ds.

T h e c or ps is t ur ni n g t he Illi n ois a n d Mississi p pi Ri v ers i nt o s u pe r ­

hi g h wa ys i or bar ges. T h e isla n ds are bei n g c o n necte d t o t he s h ore b y 

dre d g e s p oil a n d se di me ntati o n, t he ri ve r be d is risi n g d ue t o t he 

da ms, a n d t he ri ve r is narr o wi n g d ue t o di kes. I d o n ot belie ve it is 

ri g ht t o sacrifice t he ri ver s t o t he bar g e li nes a n d t heir c or p orat e 

o w ners.

T h e Nati o nal W ate r C o m missi o n rec o m me n de d t h at na vi g ati o n 

i nt ere sts pa y t he c ost of o pe rati n g, mai ntai ni n g, a n d b uil di n g water ­

wa ys t hr o u g h user fees. T hi s i dea stri ke s terr or i nt o t he water wa y 

l o b b y si nce it w o ul d c ut i nt o its free ri de. T h e G o ver n m e nt c har ges 

cities f or water ta k e n fr o m c or ps reser v oirs. Pe o ple ca m pi n g at 

reser v oirs pa y fees. W h y d o n’t t he bar ge s pa y t o o ? T h e pr o b a ble 

a ns w er is t h at bar ge tra ns p o rtati o n is n ot ec o n o mic all y j ustifi e d o n 

a n act ual c ost basis o ver m uc h of t he na vi gati o n s yst e m. It it was, t he 

wat er w a y o p erat or s c o ul d pa y t he fees a n d still ma k e a pr ofit.

Ol d a ut h o riz ati o n s a n d la ws all o w t o o m uc h lee w a y f or pr oject 

m o difi cati o n u n de r c u rre nt c or ps pr oc e d ures.
9 4 8

T h e c or ps is a d e pt at usi n g. ol d la ws a n d a ut h o riz ati o n s t o dr asticall y 

alt er pr ojects a n d la y t he gr o u n d w or k f or f ut ure c o n str ucti o n a n d 

e x pa n si o n. T h e d u plicate l oc ks o n t he Illi n ois Water w a y were a ut h orize d i n 1962. Si nce t h at ti me, t he pr oject has dra stic all y c ha n ge d t o 

t he p oi nt w here s o me str uct ur es are t o be eli mi nate d a n d t he wat e r wa y 

is t o be l o were d 35 feet t hr o u g h t he cit y of J oli et. T h e pr oje ct has 

bec o me q uite c o ntr o ve rsial a n d m o st li kel y w o ul d n ot be a ut h or ize d 

t o da y. et, t he 15- year- ol d a ut h o riz ati o n is still i n f orce.

M ost of t he da m s o n t he O hi o Ri v er were rece ntl y re pla ce d u n de r 

t he 1909 Ri v ers a n d Har b or s Act. T h e ne w l oc ks are a d e q u ate f o r a 

12-f o ot c ha n nel a n d t he dee p er p o ols will pr o vi de a 12-f o ot de pt h o v er 

95 perce nt of t he ri ver. T h us f or a ver y littl e “e xtra c ost” a 12-f o ot 

c ha n nel ca n e xist o n t he O hi o. T his will, of c o urse, “ n ece ssitate ” t he 

c o n str u cti o n of 12-f o ot c ha n nels o n ot h er se g m e nts t o ma k e t he s y ste m 

c o m pati ble. N ot s ur prisi n gl y m ost, if n ot all, pla n ne d 1909 re pl ac e ­

me nts t hr o u g h o ut t he s yste m i ncl u de l oc ks ca pa ble of h a n dli n g 1 2 -f o ot 

dr aft bar g es.

T h e W at er Res o u rces De v el o p m e nt Act of 1974 wit h its t w o-sta g e 

a ut h o riz ati o n s h o ul d eli mi nat e t he first pr o bl e m i n ne w pr ojec ts. T he 

m atter of t he 1909 Act nee ds i m m e di ate att e nti o n, as d o ol d a ut h ori ­

zati o ns.

T h e fact t he c or ps pr o p oses, b uil ds, a n d o pe rate s t he na vi g ati o n 

s yst e m ass ures t h at a nee d f or e x pa nsi o n will al wa ys e xist:

T he st u die s use d t o det er mi ne t he feasi bilit y of pr o p o se d na vi g ati o n 

pr ojects are c o n d ucte d o n t he basis of w h et h er or n ot a basi n has a 

water w a y. If n ot, t he e n gi ne ers g e ner all y fi n d a ne e d. I n t he case of t he 

L o wer Wa bas h Ri v er, t he c or ps sai d: “I t is e x pecte d t h at wit h a g r o w ­

i n g de m a n d f or l o w-c o st m o ve me nt of a gri c ult ural pr o d ucts, fertilizers,

etr ole u m, a n d c oal, c a nalizati o n of t h e L o wer W a ba s h t o Te rre Ha ute, 

n dia n a will be nee de d i n t he peri o d bet w ee n 1980 a n d 20 00,” O hi o 

c o m p re he nsi v e basi n st u d y.

O nce t he nee d is esta blis h e d, ec o n o mic a nal ysis is u n derta ke n. T o 

acc o m plis h t his, p ot e ntial s hi p pers are as ke d h o w m uc h t he y w o ul d 

s hi p b y water if l o w-c ost bar g e tra ns p o rtati o n were a vaila ble. T he 

a m o u nt pr o s pe cti v e s hi p pers will m o ve is ke pt c o nfi de ntial. T h e dif ­

fere nce bet w ee n s u bsi dize d bar g e rat es a n d u ns u bsi di ze d rail rat es are 

t he n use d t o det er mi ne t he sa vi n gs t o s hi p pers w hic h is clai m e d as t he 

be nefit.

T he nee d f or r e pl ace me nt of e xi sti n g l oc k s is b ase d o n c o n ge sti o n a n d 

t o w size. F o r e xa m ple, lar ge r l oc ks are “ n ee d e d” o n t he Mississi p pi 

beca u se m o d er n t o ws ca n n ot easil y pass t hr o u g h t he l oc ks. A st u d y of 

t he sit uati o n will s h o w t h at na vi g ati o n i nte rests ha v e i ncre ase d t he size 

of bar g es t o t he p oi nt w here a sta n d ar d t o w has o nl y 2)4 feet of clea r ­

a nce o n eac h si de as it e nt ers a l oc k. T h e fa ult is n ot u n d er de si g n of 

l oc ks s o m uc h as o ver d esi g n of bar ge s. T h e i n d ustr y als o i nsi sts o n 

p us hi n g 1,1 70-f o ot t o ws t hr o u g h 600 -f o ot l oc ks. T his re q uires d o u ble 

l oc ki n g w hic h ta k es a b o ut t hre e ti me s as l o n g as si n gle l oc ki n g a n d is a 

maj or c o ntri b ut or t o c o n ge sti o n. Rat h er t h a n i nsi st t h at t he i n d ustr y 

use t o ws t h at fit t he l oc k, t he c or ps pr o p o ses t h at t he l oc ks be re b uilt 

at ta x pa y ers e x pe nse t o fit t he t o ws.

As a n a ge nc y, t he c or ps see ms det er mi ne d t o kee p b us y b uil di n g a n d 

re b uil di n g t he na vi gati o n s yst e m t o m o ve pr oject e d t o n na g e w hic h 

will e xcee d e xisti n g l oc k ca p acit y. Ot her m ea n s of m o vi n g t he p r oje cte d 

frei g ht wit h o ut massi ve ne w c o n str u cti o n sel d o m e nte r t ne c or p s mi n d.
9 4 9

I n m o st i nst a nc es, it is clea r t h at m uc h frei g ht clai m e d f or f ut ure 

na vi gati o n c o ul d m o ve b y rail or pi peli ne t h u s lea vi n g l oc k ca pa cit y 

a vaila ble f or c o m m o dities w hic h m o ve m o st ec o n o mic all y b y bar ge.

I ne x pe n si ve ite m s f or i ncr easi n g c a p acit y, s uc h as l o n g er g ui de wall s 

a n d s witc h b oats are ge n erall y sai d t o be i nfea si ble or i nca pa ble of 

me eti n g pr oject e d de m a n d. T h e c or p s c o ul d als o re q uir e si n gle l oc ki n g 

a n d sc he d uli n g of t o ws t o ease c o n ge sti o n. Per h a p s t he easi est wa y t o 

i m pr o ve efficie nc y w’ o ul d be t o c har ge user fees o n t he s yste m s o t h at 

g o o ds t h at m o ve efficie ntl y b y ot he r m o des will n ot be attr acte d t o 

water w a ys b y artifici all y l o w rate s.

C or ps data rele ase d t o t he p u blic is ofte n misl ea di n g.

T h e U p p er Mis sissi p pi i m pr o ve m e nt s i ncl u di n g l oc k N o. 26 a n d 

t he Illi n ois W ater w a y d u pli cate l oc ks are e xcelle nt e x a m ples of pr oje cts 

w her e c or ps data is c o ntr a dict or y.

F o r year s, C o n gres s has bee n t ol d t h at t he str uct ural i nt e g rit y of 

L oc k N o. 26 is e n d a n g ere d b y a sc o u r h ole a n d t h at t he da m is m o ni ­

t ore d t o n ot e c ha n ges t h at mi g ht i n dicate i m p e n di n g fail u re. T h e 

e n vir o n m e nt al i m pa ct state m e nt state s t h at, “ T he m o st critical maj or 

re p air w or k nee de d at t hi s ti me is pr otecti o n a g ai n st ri ver be d sc o ur 

i m me diatel y d o w nstrea m of t he str uct u re.”

F u rt he r e xa mi nati o n of t his iss ue re ve als t h at sc o ur h oles e xist b el o w 

all Mi ssissi p pi da m s n ot b uilt o n r oc k, a n d t h at t he y are n ot c o nsi der e d 

da n ger o us. T he EI S als o p oi nt s o ut t h at t he h ole c o ul d be dre d ge d f ull 

of sa n d a n d c o vere d wit h 5,0 00- p o u n d st o ne s. If t he sc o u r h ole is s o 

da n ger o us, w h y d oe s n’t t he c or ps fill it i nstea d of usi n g it as a sc ar e 

tactic t o get a ne w da m ?

T h e c or ps rec e ntl y c o ncl u de d t h at a Mis sissi p pi 12-f o ot c ha n nel t o 

St. Pa ul was n ot ec o n o mi call y j u stifi e d. T h e mai n reas o n f or t hi s is t he 

fact t h at t he e xisti n g l oc ks w o ul d nee d dee per sills t o all o w 12-f o ot 

bar ges t o pass t hr o u g h. T h e pr oject be n efit -c o st rati o was ne g ati v e 

w h e n t h e c ost of ne w l oc ks was i ncl u de d. O n t he Illi n ois W ate r w a y, 

t he dee per c ha n nel was j u d ge d feasi ble si nce t he a ut h oriz e d d u pli cat e 

l oc k s wit h 17-f o ot sill de pt h s c o ul d ha n dle t he dee p c ha n nel. T h us, 

o nl y c ha n nel dre d gi n g ha d t o be c har g e d t o t he Illi n ois 12-f o ot acc o u nt.

T h e c or ps pla n s t o re pl ace as ma n y Mis sissi p pi l oc ks as p ossi ble 

u n der t he 1909 Act a n d i ncl u de dee per sills. T his will e ve nt u all y all o w 

t he dee per c ha n n el t o be j ustifie d. W he n t he p u blic i n t he are a lear ne d 

of t his, t he c or p s iss ue d i nt er n al me m o s re q uiri n g t h at t he 12-f o ot 

c ha n nel n ot be me nti o n e d i n relati o n t o 1909 l oc k re place me nts.

T h e St. L o uis c or p s di strict has i n rec e nt ye ars deci de d t h at a n 

18-f o ot sill de pt h is nec essa r y f or 9-f o ot na vi g ati o n, des pite t he fact 

t h at e xi sti n g l oc ks ha v e 10 t o 14 feet of sill de pt h. T h e mai n rea s o n 

f or t hi s i ncr ease is sai d t o be ice b uil d u p o n t he b ott o m of t o ws w hic h 

ca n rea c h 9 feet, acc o r di n g t o t he c or ps. T h e c or p s d oes n ot see m t o 

realiz e t h at a l oa de d bar ge i n a 9-f o ot c ha n nel w o ul d n ot m o ve if it 

als o ha d 9 feet of ice o n its b ott o m. T h ere i s o b vi o u sl y a n ot h er rea s o n 

f or t h e 18-f o ot sill de pt h.

F u rt he r i n v esti gati o n re ve als t h at t he 1968 “ Mai n Re p o rt” o n L oc k 

N o. 26 rec o m m e n de d a 15-f o ot sill d e pt h a n d sai d: “ T his w o ul d i ncre ase 

t he pr ese nt pr oject de pt h fr o m 9 t o 12 feet.” I n 196 8, at a me eti n g of 

c or ps officials a p ossi bl e 15-f o ot c ha n nel was disc usse d. T h e 1970 

na vi g ati o n a p pe n di x t o t he Missis si p pi c o m pre h e nsi ve st u d y ( pr e p are d 

b y t he c or ps) c o ntai n s ei g ht refer e nce s t o a p ote ntial 15-f o ot c ha n nel.
9 5 0

N o w t he ne w L oc k N o. 26 desi g n calls f or 18-f o ot sill de pt hs. It d oes 

n ot ta k e a n e n gi n eer t o see t h at t he c u rre nt pr o p o sal is t or a 15-f o ot 

c ha n nel wit h 3 feet of sill clear a nce.

T h e C hic a g o distri ct a d mits t h at t he 17-f o ot sills pr o p ose d f or t he 

d u plicate l oc ks are f or a n e ve nt u al 12-f o ot c ha n nel. Yet t h e St. L o ui s 

distri ct still mai nt ai n s 18-f o ot sills are nece ssar y f or a 9-f o ot c ha n nel. 

We ca n n ot hel p b u t feel t he St. L o uis di strict is atte m pti n g t o decei v e 

t he p u blic.

T h e pr o p ose d na vi gati o n e x pa nsi o n s s h o ul d n ot be u n derta ke n u ntil 

t heir i m pa ct o n t he nati o nal e n vir o n me nt a n d ec o n o m y is u n der st o o d. 

I n d ee d, t he ec o n o mic via bilit y of t he e xisti n g s yste m is s us p ect a n d its 

e n vir o n me ntal i m pa ct is virt uall y u n k n o w n. I n s h o rt, we nee d t o ta k e 

a cl ose l o o k at t he n ati o nal tra ns p o rtati o n s yste m a n d t he a ge nci es a n d 

p olicies w hic h affe ct it.

Se n at o r G r a v e l . T h a n k y o u ver y m uc h. I ha ve n o q ue sti o ns.

Mr. Marli n, m y c ollea g ue has a q ue sti o n.

Se n at o r D o m e ni c i . Mr. Marli n, wit h refere n ce t o t he c or ps ’ pr o ­

p ose d 15-f o ot de pt h, it is 14 n o w ?

Mr. M a r li n . Ni n e feet is t he c urre nt a ut h oriz e d de pt h.

Se nat or D o m e ni ci . T he sill is 14 feet?

Mr. M a r li n . T h e c urre nt sill de pt h at l oc k N o. 26 acc or di n g t o t he 

C hief of E n gi n eer s’ a n n ual re p ort is 10 feet. H o w e ver, i n 1970, t he 

c or ps’ 12-f o ot c ha n nel st u d y re p ort s s u d de nl y sta rte d sa yi n g t h at 

de pt h was 13 feet, as di d t he Mississi p pi c o m pre h e nsi ve st u d y. F o r t he 

e ntire hist or y of t he c or ps u ntil 1970, t he sill de pt h was liste d as 10 

feet, a n d s u d de nl y it dr o p pe d t o 12. T h e c or p s sa ys t he c u rre nt sill 

de pt h is 12. I t hi n k it is 10.

Se n at or D o m e ni ci . I pi es s it is c o nflicti n g fi g ures. We ha ve s o me 

i n di cati o n it is 14; t h at is w h at I was g oi n g t o base m y q u esti o n o n. 

If it is 14 we are n ot tal ki n g a b o ut a gr eat deal of differe nc e bet w ee n 

14 a n d 15, beca use t he 14 w o ul d acc o m m o date t he 12 f o ot na vi g ati o n 

t h at c o ncer n s y o u, j u st li ke t he 15.

Mr. M a r l i n . T h e official de pt h n o w is eit her 10 or 12, de p e n di n g 

o n w hic h c or ps ’ re p ort y o u rea d. T h e si g nifica nt n u m b er is t he de pt h 

t he y are pla n ni n g i n t he ne w l oc k. T hi s is 18 feet, w hic h w o ul d ac ­

c o m m o d ate 15-f o ot bar ge s wit h ease. A n d t he c ost of p utti n g i n t hes e 

ne w sills is t he maj or c ost of t he pr o p o se d c ha n nel dee p e ni n g. If t he y 

p ut t h at i n, t h e y ha v e t o d o ver y little t o get t he rest of t he c ha n nel 

dee per.

Se nat or D o m e ni ci . T h a n k y o u ver y m uc h.

O n t h at iss ue, c o ul d we ha ve t he sta ff g et s o me official w or d o n w hic h 

it is?

Se nat or G r a v e l . We ha d a n o nsite i n v esti gati o n of t his a n d ha d a 

ver y g o o d e x hi biti o n of t he pr o ble m s a n d t he desi g n of t he str uct ur es.

Se nat or D o m e ni ci . T ha n k y o u ver y m u c h, Mr. C h air m a n.

Se nat or G r a v e l . Please, Pr ofes s or.

S T A T E M E N T O F T H O M A S C L A F LI N, P R O F E S S O R O F BI O L O G Y, 

U N I V E R SI T Y O F WI S C O N SI N

Dr. C l a f li n . M y na m e is T h o m as Clafli n. I a m t he dir ect or of t he 

Ri v er St u die s Ce nte r, U ni versit y of Wisc o nsi n — La Cr oss e. T h e 

ce nter has bee n i n v ol ve d i n se ver al rese arc h pr ojects o n ri v er a n d 

la ke s yste m s i n wester n Wisc o n si n i n rec e nt years. M or e s pecific all y,
9 5 1

t he ce nter has u n derta ke n f o ur pr ojects d uri n g t he pa st 3 yea rs, o n 

t he Missis si p pi Ri v er, t o i n v esti gate e n vir o n m e nt al i m pa cts of t he 

9-f o ot na vi g ati o n c ha n nel, t he Feasi bilit y of re v e getati n g dre d ge d 

materi al, a n d m o st rece ntl y t o de v el o p a c o m p uter si m ulati o n m o del 

of a n a vi gati o n p o ol t o gai n pre dicti v e ca p a biliti es f or c u rre ntl y pr ac ­

tice d ma na ge me nt pr oce d ure s. Alt h o u g h t he ce nter itself has c o n ­

ce ntr ate d o n t he Missi ssi p pi Ri v er a n d its res o ur ces, a n ot h er pr oject, 

pr o p ose d b y t he C or p s of E n gi ne ers o n t he Kic ka p o o Ri v er i n wester n 

Wisc o nsi n, has ge n erate d i nter est i n ma n y q u art ers.

I ha ve a pre p are d state m e nt t h at I wis h t o s u b mit f or t he rec or d, 

a n d beca use of t he c o m mittee ’s ti me c o nsi der ati o ns a n d restrai nt s, I 

will n ot ela b orate f urt he r, e xce pt t o state t he pre p are d re m ar k s deal 

wit h t w o pr o p ose d C or ps of E n gi nee rs pr ojects i n t he Mi d west. I n a 

n u m b er of wa y s t hes e t w o pr oject s e xe m plif y t he gra v e pla n ni n g deficie ncies i n t he C or ps of E n gi ne ers a n d t he seri o us i na bilit y f or t he 

c or p s t o de vel o p s o u n d alt er n ati ves t o t h at pr oject. I ha v e n ot pr epar e d a n y re m ar k s wit h res p ect t o l oc k a n d da m 2 6 o n t he U p per 

Mississi p pi Ri v er s pecific all y, si nce I u n derst a n d it will be t he s u bject 

of heari n g s lat er t hi s year. H o w e ver, I w o ul d p oi nt o ut we ha v e 

st u die d t h at pr oject e xte nsi vel y a n d we wis h t he c o m mittee t o be 

a war e of t he va st e n vir o n me ntal da m a ge w hic h will res ult wit h t he 

i ncre ase d traffic, c o m m ercial traffic, o n t he U p per Missis si p pi Ri v er. 

T h a n k y o u.

[ Pre pare d state m e nt a p p ears at . 9 5 4. 1

Se nat or G r a v e l . J u st o n t he U p per Mississi p pi? W hat a b o ut t he 

Illi n ois Ri v er? Ha ve y o u gi ve n a n y t h o u g ht t o w h at i m pact a n d w h at 

w o ul d be t he vi olati o n i n v ol ve d if t h ere was a n i n creas e of traffic o n t he 

Illi n ois ?

Dr. C l a f li n . T h e pri nci ple of t he i m pa ct of i ncr ease d c o m m ercial 

na vi gati o n w o ul d be i de ntical o n t he Illi n ois as it w o ul d o n t he U p per 

Mississi p pi Ri v er, Mr. C h air m a n. I p oi nt o ut, h o w e ver, t h at t he t w o 

ri ver s yste m s are diff ere nt ec ol o gi call y. T h at differe nc e is base d 

pri m aril y u p o n t he fact t h at t he i m pa cts t h at ha v e alre a d y bee n felt 

Deca use of i n d ustrializati o n o n t he Illi n ois water w a y ha v e n ot yet 

bee n felt o n t he U p per Mississi p pi. T h e st at e of t he ec ol o g y, if y o u 

wall, o n t h e U p per Mississi p pi Ri ver, is m ore a p p r o xi matel y t he nat ur al 

state, m uc h m or e t h a n o n t he Illi n ois. C o n se q ue ntl y, t he s yst e m s, t he 

ec ol o gical s yst e m s, t h at w o ul d be i m pacte d I feel are m u c h m ore 

fra gile.

Se nat or G r a v e l . A d e vel o p me nt pla n t o tie i n m ore effecti vel y t he 

Gre at La k es, w o ul d be t hr o u g h t he Illi n ois s yste m rat h er t h a n t he 

Mississi p pi. W o ul d t h at n ot be c orrect? Y o u are sa yi n g t h at w o ul d 

ha v e a mi ni mal i nc re m e nt al i ncre ase o n t he de g ra d ati o n of t h e e nvir o n me nt, a n d it mi g ht be a s o u n d t hi n g t o d o, t o s o rt of si p h o n off 

de v el o p m e nt fr o m ot h er area s, w here t he da m a ge w o ul d be gr eate st, 

t o t he area s w here t h e da m a ge w o ul d be least. W o ul d t h at s o u n d 

l o gical?

Dr. C l a f li n . I n ter ms of first ha n d i nf or m ati o n o n t he e xa ct 

da m a ges t h at w o ul d occ u r o n t he Illi n ois water w a y, we ha ve n ot 

st u die d t h at. Ge o gra p hicall y, we are t o o far fr o m it. We are face d 

wit h a sit u ati o n o n t he U p p er Mississi p pi Ri v er w here t he i ncre m e nt s 

of i m pact w o ul d be m u c h greater, I feel, wit h t he i ncre m e nt s of
9 5 2

i ncrease d c o m mercializati o n a n d na vi gati o n. T here is a gr eat i nc o n gr uit y bet w ee n w h at t he c or ps is pla n ni n g i n St. L o uis a n d w h at 

t he c or ps is pla n ni n g i n St. Pa ul. We hea r t he U p p er Missis si p pi 

Ri v er is g oi n g t o be mai ntai ne d as a m ulti ple- use res o urce, a n d yet 

t he c o n str u cti o n or t he pr o p ose d c o n str u cti o n of l oc k a n d da m 2 6 

w o ul d see m t o a br o gate t his. S o m y c o ncer n is t h at l oc k a n d da m 2 6 is 

reall y m uc h m ore t ha n si m pl y a re place me nt of o ne str uct ur e. T h ere 

are certai nl y i m plicati o n s t h at it is t he first of a series of ste ps t o 

u p gr a de t he a bilit y t o c o m m erciall y na vi gate at gre ater le vels o n t h e 

U p p er Missis si p pi a n d t he Illi n ois.

Se n at or G r a v e l . We recei ve d testi m o n y at t he o nsite i ns p ecti o n, 

a n d we ar e g oi n g t o ha v e a he ari n g o n l oc k a n d da m 2 6, s o t his will b e 

aire d at g reat le n gt h. T h e str uct ur e was desi g ne d o n a tec h nical basi s 

f or gr eatest efficie nc v. T his desi g n d oes per mit t he p os si bilit y of 

e x pa nsi o n w hic h w o ul d decre ase t he efficie nc y of t he d esi g n b ut c o ul d 

still o b vi o usl y per mit gr eat er de pt h s o n ot h er pa rts of t he ri ver. S o 

we are g oi n g t o be face d wit h t his pr o ble m: D o we desi g n s o m et hi n g 

less efficie ntl y i n or d er t o precl u de s o m et hi n g occ u rri n g, or d o we 

desi g n s o m et hi n g efficie ntl y a n d t he n ma k e t he j u d g m e nts lat er o n? 

I d o n’t t hi n k y o u ca n ma k e t he ass u m pti o n t h at we are all c ha r gi n g 

off t o a 1 2-f o ot de pt h. I t hi n k t h at wit h t h at ca p a bilit y t he re s h o ul d 

be s o me c o nsi derati o n gi ve n as t o t he i m p acts o n t he U p pe r Mississi p pi 

a n d als o o n t he Illi n ois.

Dr. C l a f l i n . Mr. C hair m a n, I u n derst a n d e xa ctl y w h at y o u are 

sa yi n g. I g uess m y res p o nse t o t h at w o ul d be I a m certai nl y c o nvi nce d t h at t he c or p s has n ot a de q uatel y l o o ke d at alt er n ati ve s t o 

i ncreas e t he efficie nc y of t he e xisti n g str uct ure t here. I d o t hi n k t here 

are s o me n o nstr u ct u ral alte r nati v es certai nl y t h at c o ul d be e m pl o ye d.

Se n at or G r a v e l . W hat w o ul d t h ose be?

Dr. C l a f l i n . Well, o ne of t he t hi n gs t h at has bee n pr o p o se d, or 

bee n offere d, is a s u g g esti o n t o si m pl y sc he d ule traffic t hr o u g h t he 

l oc k, create------

Se n at or G r a v e l . We ha d a pri or wit nes s sa yi n g t h at ki n d of acti vit y c o ul d ca use a ne g ati v e i m p act, c utti n g o ur t olls i n half. T h at 

w o ul d be a sc he d uli n g pr o bl e m. I t hi n k we c o ul d cre ate a c o m m u nica ­

ti o n s s yste m, al o n g t he w h ole ri ver wa y s yste m, t h at w o ul d gi ve b ette r 

sc he d uli n g f or e ver y b o d y.

Dr. C l a f li n . Per ha p s b y usi n g a c o m p ute r.

Se n at or G r a v e l . T he c or ps is w or ki n g t o de vel o p s uc h a c o mm u nic ati o ns s yst e m.

Dr. C l a f l i n . I g uess i n c o ncl usi o n I a m c o n vi nce d, a n d all of m y 

se nses tell me t h at t h at partic ula r pr oject is reall y — has far gre ate r 

i m plicati o n s t h at si m pl y were n ot a d dre sse d i n t he e n vir o n m e nt al 

i m pa ct state m e nt.

Se n at or G r a v e l . I w o ul d certai nl y a p p reciate y o ur c o u nsel w he n 

we d o ha ve t he heari n gs o n l oc k a n d da m 2 6. Let me sa y t h e ge ntle ma n 

t h at was i n Illi n oi s wit h us fr o m t he I nteri or stre sse d, w hic h I t hi n k 

ha s gr eat me rit, t h at we d o n’t ha v e a t otal ri v er pla n. We nee d t o 

a ut h o riz e a st u d y of a t ot al ri v er pla n, a n d ma y be we c o ul d tie-i n t he 

f u n d s nece ssar y t o ma ke t he st u d y i n t he a ut h o riz ati o n, s o we ca n be 

i nf or me d w he n we will ha v e t o ma k e j u d ge me nts o n pr ojects o n t he 

ri v er s yste m at a lat er date.

Dr. l a f l i n . Yes, i n dee d. I a m e nc o ura ge d b y t h at c o m me nt.

Se nat or G r a v e l . Se n at or ?
9 5 3

Se n at o r D o m e ni ci . I ha ve j u st o ne q uesti o n. Fr o m t he sta n d p oi nt 

of t he a d v erse effects t h at y o u see i n t he 1 2-f o ot de pt h, is t here a n y 

differe nce if we arri ve at t hi s b y dre d gi n g vers us i ncr easi n g t he p o ol?

Dr. C l a f li n . Yes.

Se nat or D o m e ni ci . C o ul d y o u c o m me nt o n t hat?

Dr. C l a f li n . Well, t here w o ul d certai nl y be a series of i m pacts wit h 

eit h er of t h ose alte r nati v es or a c o m bi n ati o n of t he t w o, a n d of c o urse, 

t he 1 2-f o ot na vi gati o n c ha n nel o n t he U p p er Mississi p pi has bee n

ir o p ose d at o ne ti me or ot h er a n d has bee n st u die d. T he re are q uite a 

e w d oc u m e nt s descri bi n g h o w o ne w o ul d arri v e at t hat, a n d i n m o st 

i nst a nc es it was pr o p o se d t h at t he m o st feasi ble pla n w o ul d be a 

c o m bi n ati o n of t h ose t w o f ore m ost of t he p o ols. B ut t he i m pa cts a n d 

ver y ge neral area s are ass ociate d wit h t he pr o ble m of t he dis p o siti o n 

of t he dre d ge materi al w hic h certai nl y is a pr o ble m n o w strictl y wit h 

mai nt e na nce dre d gi n g o n t he U p per Mississi p pi, a n d of c o ur se, t he 

pr o ble ms wit h raisi n g p o ol ele v ati o n are t h os e i n v ol vi n g i n u n dati o n of 

p o p ulate d areas. M o st of t he citie s al o n g t he U p per Mississi p pi Ri ver 

are l oc ate d o n terr ace s, a n d t he y are q uite cl ose t o t he e xisti n g 

wate rli ne. S o, i n m o st i nst a nc es, I t hi n k t he raisi n g of t he ele vati o n 

w o ul d n ot be feasi ble.

Se n at or D o m e ni ci . T h a n k y o u ver y m uc h.

Se n at or G r a v e l . T h a n k y o u ver y m uc h, D oct or.

[ Dr. Clafli n’s state m e nt f oll o ws:]
9 5 4

T E S T I M O N Y O F

D R . T H O M A S 0 . C L A F L I N

B E F O R E T H E

S U B C O M M I T T E E O N W A T E R R E S O U R C E S

S E N A T E C O M M I T T E E O N P U B L I C W O R K S

C O R P S O F E N G I N E E R S I N L A N D

N A V I G A T I O N S Y S T E M O V E R S I G H T

H E A R I N G S

J U N E 1 9, 1 9 7 5
9 5 5

M y N a m e i s T h o m a s 0 . C l a f l i n . I a m t h e D i r e c t o r o f 

t h e R i v e r S t u d i e s C e n t e r , U n i v e r s i t y o f W i s c o n s i n - L a C r o s s e . 

T h e C e n t e r h a s b e e n i n v o l v e d i n s e v e r a l r e s e a r c h p r o j e c t s o n 

r i v e r a n d l a k e s y s t e m s i n w e s t e r n W i s c o n s i n i n r e c e n t y e a r s . 

M o r e s p e c i f i c a l l y t h e C e n t e r h a s u n d e r t a k e n f o u r p r o j e c t s 

d u r i n g t h e p a s t t h r e e y e a r s , o n t h e M i s s i s s i p p i R i v e r , t o 

i n v e s t i g a t e e n v i r o n m e n t a l i m p a c t s o f t h e n i n e - f o o t n a v i g a ­

t i o n c h a n n e l , t h e . f e a s i b i l i t y o f r e v e g e t a t i n g d r e d g e d 

m a t e r i a l , a n d m o s t r e c e n t l y t o d e v e l o p a c o m p u t e r s i m u l a ­

t i o n m o d e l o f a n a v i g a t i o n p o o l t o g a i n p r e d i c t i v e c a p a ­

b i l i t i e s f o r c u r r e n t l y p r a c t i c e d m a n a g e m e n t p r o c e d u r e s . 

A l t h o u g h t h e C e n t e r i t s e l f h a s c o n c e n t r a t e d o n t h e M i s s i s s ­

i p p i R i v e r a n d i t s r e s o u r c e s , a n o t h e r p r o j e c t , p r o p o s e d b y 

t h e C o r p s o f E n g i n e e r s o n t h e K i c k a p o o R i v e r i n w e s t e r n 

W i s c o n s i n h a s g e n e r a t e d i n t e r e s t i n m a n y q u a r t e r s .

T h e h i s t o r y o f t h i s p r o j e c t h a s b e e n t u r b u l e n t , p a r t ­

i c u l a r l y o w i n g t o t h e f a c t t h a t d e c i s i o n s i n i t i a l l y m a d e 

h a v e b e e n s e q u e n t i a l l y c h a n g e d s e v e r a l t i m e s , t o t h e p o i n t 

t h a t o n e i s l e f t w i t h t h e c o n c l u s i o n t h a t l i t t l e c o m p r e ­

h e n s i v e p l a n n i n g w a s c a r r i e d o u t d u r i n g t h e c o n c e p t u a l 

p h a s e o f t h e p r o j e c t .

A l l o w m e t o i t e r a t e a b r i e f h i s t o r y o f t h e p r o j e c t .

I t w a s c o n c e i v e d i n 1 9 3 8 a s a f l o o d c o n t r o l d e v i c e t o

5 4 - 2 3 9 0 - 7 5 - 61
9 5 6

2 -

p r o t e c t t h e s m a l l c o m m u n i t i e s l o c a t e d i n t h e K i c k a p o o V a l l e y .

I t w a s s u g g e s t e d a t t h a t t i m e t h a t a p o o l b e c o n s t r u c t e d 

w i t h a s u r f a c e a r e a o f a p p r o x i m a t e l y 8 0 0 a c r e s . T h e c o s t 

w a s e s t i m a t e d t o b e $ 1 4 . 8 m i l l i o n . H o w e v e r , i t w a s n ’ t u n t i l 

1 9 6 1 t h a t t h e C o r p s o f E n g i n e e r s a n n o u n c e d i t s p l a n s f o r a 

d a m a n d r e s e r v o i r t o b e l o c a t e d o n e m i l e u p s t r e a m f r o m 

L a F a r g e , W i s c o n s i n . T h e p r o j e c t w a s r e v i e w e d a n d a u t h o r i z e d 

i n 1 9 6 3 . F u n d s f o r f u r t h e r p l a n n i n g w e r e m a d e a v a i l a b l e a t 

t h a t t i m e . T h e a p p a r e n t p l a n n i n g p r o c e s s c o n t i n u e d f o r 

s e v e r a l y e a r s , u n t i l 1 9 7 1 , w h e n t h e G o v e r n o r o f W i s c o n s i n 

r e q u e s t e d a r e v i e w o f t h e p r o j e c t . F o l l o w i n g t h e r e v i e w , t h e 

C o r p s d e t e r m i n e d t h a t , w i t h a f e w m i n o r p r o v i s i o n s d e a l i n g w i t h 

t r e e p l a n t i n g a n d s e a r c h e s f o r g e o l o g i c a l a n d a r c h a e l o g i c a l 

r e l i c s , t h e p r o j e c t c o u l d c o n t i n u e . D u r i n g J u n e o f 1 9 7 1 , t h e 

S i e r r a C l u b p r o c e e d e d u n s u c c e s s f u l l y t o e n j o i n t h e C o r p s o f 

E n g i n e e r s f r o m a l l a c t i v i t i e s o n t h e p r o j e c t . A t o r n e a r t h a t 

t i m e , i t w a s r e v e a l e d t h a t t h e p r o p o s e d r e s e r v o i r w o u l d h a v e a 

s u r f a c e a r e a o f 1 8 0 0 a c r e s , a n d w o u l d c o s t a p p r o x i m a t e l y $ 2 6 

m i l l i o n t o c o n s t r u c t .

I t w a s n ’ t u n t i l J u l y , 1 9 7 2 , t h a t a f i v e w e e k s u r v e y o f 

s o c i o l o g i c a l i m p l i c a t i o n s o f t h e p r o j e c t w a s b e g u n b y t h e 

I n s t i t u t e o f E n v i r o n m e n t a l S t u d i e s ( U n i v e r s i t y o f W i s c o n s i n ) 

u n d e r c o n t r a c t b y t h e C o r p s o f E n g i n e e r s . I n J u n e , 1 9 7 3 ,
9 5 7

3 -

t h e I n s t i t u t e w a s a s k e d t o u n d e r t a k e a n e n v i r o n m e n t a l i m p a c t 

s t u d y o f t h e p r o j e c t . T h e p r o j e c t e d c o s t o f t h e d a m a t t h i s 

t i m e h a d i n c r e a s e d t o $ 3 2 m i l l i o n . T h e p r e l i m i n a r y r e s u l t s 

o f t h e E I S w e r e m a d e a v a i l a b l e i n A u g u s t , 1 9 7 4 , a n d t h e s e 

r e s u l t s p r o m p t e d S e n a t o r G a y l o r d N e l s o n t o r e q u e s t t h a t t h e 

C o r p s o f E n g i n e e r s h a l t t h e p r o p o s e d p r o j e c t . T h e f i n a l 

r e s u l t s o f t h e E n v i r o n m e n t a l I m p a c t S t u d y w e r e s u b m i t t e d 

i n N o v e m b e r , 1 9 7 4 a n d c o n c l u d e d t h a t :

1. T h e w a t e r q u a l i t y o f t h e p o o l e d w a t e r i n t h e r e s e r v o i r 

w o u l d b e s o m e w h a t p o o r , d u e t o h i g h r a t e s o f a g r i c u l t u r a l 

r u n o f f , ( p r i m a r i l y f e r t i l i z e r s ) ;

2. T h e r e s e r v o i r w o u l d u n d e r g o a r a p i d r a t e o f e u t r o p h i c a ­

t i o n a n d h i g h p o p ul at io ns l e v e l s o f r o o t e d a q u a t i c v e g e t a t i o n 

w o u l d d e v e l o p i n a s h o r t p e r i o d o f t i m e ;

3 . T h e r e c r e a t i o n a l v a l u e o f t h e r e s e r v o i r w o u l d b e 

l i m i t e d d u e t o t h e a b o v e p r o c e s s e s .

T h e s e f i n d i n g s p r o m p t e d t h e E n v i r o n m e n t a l P r o t e c t i o n 

A g e n c y t o u r g e t h e C o r p s o f E n g i n e e r s t o h a l t t h e p r o j e c t 

a n d t o r e v i e w a l t e r n a t i v e s t o t h e a u t h o r i z e d p l a n . T h e 

C o u n c i l o n E n v i r o n m e n t a l Q u a l i t y m a d e t h e s a m e r e q u e s t , a s 

d i d t h e G ov e r n o r o f W i s c o n s i n . T h e C o r p s o f E n g i n e e r s 

m a i n t a i n e d a t t h a t t i m e t h a t t h e a u t h o r i z e d p l a n w a s t h e 

b e s t ; h o w e v e r , a r e v i e w o f c e r t a i n a l t e r n t i v e s w a s c o m m e n c e d .
9 5 8

4 -

T h o s e a l t e r n a t i v e s t h a t w e r e a d d r e s s e d i n c l u d e d n o a c t i o n , 

f l o o d p r o o f i n g , f l o o d i n s u r a n c e , f l o o d p l a i n e v a c u a t i o n , 

f l o o d p l a i n a c q u i s i t i o n , a n d a d r y d a m w i t h a p p r o p r i a t e 

r e g u l a t o r y s t r u c t u r e s . I n s p i t e o f u r g i n g s f r o m E P A ,

C E Q , a n d t h e S t a t e o f W i s c o n s i n t o s e e k a l t e r n a t i v e 

a c t i o n s , t h e C o r p s o f E n g i n e e r s c o n t e n d e d a s l a t e a s 

M a r c h 1 9 7 5 , t h a t t h e a u t h o r i z e d p l a n w o u l d b e p u r s u e d .

I t w a s e s t i m a t e d i n M a r c h , 1 9 7 5 , t h a t t h e p r o j e c t c o s t h a d 

i n c r e a s e d t o $ 5 6 . 5 m i l l i o n , a n d t h a t i t w o u l d c o s t a p p r o x ­

i m a t e l y $ 5 6 5 , 0 0 0 t o r e m o v e e x i s t i n g s t r u c t u r e s . I t l e a v e s 

l i t t l e d o u b t i n t h e m i n d s o f m o s t r e a d e r s t h a t l i t t l e 

t h o u g h t w a s g i v e n t o e n v i r o n m e n t a l c o n s e q u e n c e s o f t h e 

p r o j e c t d u r i n g t h e e a r l y p l a n n i n g s t a g e s . T h e r e w a s 

o b v i o u s l y l i t t l e t h o u g h t g i v e n t o a l t e r n a t i v e s . E v e n 

d u r i n g a p e r i o d w h e n t h e N a t i o n a l E n v i r o n m e n t a l P o l i c y 

A c t r e q u i r e d a g e n c i e s t o e x a m i n e a n d d e v e l o p a l t e r n a t i v e s , 

i t w a s n ' t u n t i l A p r i l , 1 9 7 5 , t h a t t h i s w a s a c t u a l l y d o n e .

T h e p r o j e c t h a d g a i n e d e n o u g h m o m e n t u m t o c a r r y i t t h r o u g h 

p e r i o d s o f r e s i s t a n c e , u n t i l C o n g r e s s i o n a l a n d g u b e r n a t o r i a l 

p r e s s u r e f i n a l l y c a u s e d i t t o c e a s e a t l e a s t t e m p o r a r i l y .

I t i s i n c o n c e i v a b l e t h a t p u b l i c m o n i e s c o u l d b e s p e n t o n 

a p r o j e c t w h e r e t h e e x a m i n a t i o n o f t h e a l t e r n a t i v e o c c u r s

3 7 y e a r s a f t e r t h e c o n c e p t i o n o f t h e p r o j e c t .
9 5 9

T h i s b r i e f h i s t o r y o f t h e K i c k a p o o R i v e r F l o o d C o n t r o l 

P r o j e c t e x m p l i f i e s s e r i o u s s h o r t c o m i n g s i n C o r p s o f 

E n g i n e e r s p l a n n i n g p r o c e s s e s a n d d e m o n s t r a t e s t h a t 

v a r i o u s e l e m e n t s h a v e b e e n l a c k i n g i n t h i s p r o c e s s . T h e y 

i n c l u d e :

1. T h e e x a m i n a t i o n o f a l t e r n a t i v e s a t t h e a p p r o p r i a t e 

t i m e w i t h t h e i n c l u s i o n o f n o n - s t r u c t u r a l a l t e r n a t i v e s .

2. T h e e x a m i n a t i o n o f e n v i r o n m e n t a l i m p a c t s a n d t h e 

a p p r o p r i a t e a p p l i c a t i o n o f t h e s e i m p a c t s t o t h e b e n e f i t 

s i d e o f t h e b e n e f i t - c o s t r a t i o . I n t h e c a s e o f t h e 

K i c k a p o o R i v e r p r o j e c t , t h e p r o b a b l e d e g r a d a t i o n o f w a t e r 

q u a l i t y i n a s h o r t p e r i o d o f t i m e w o u l d d e c r e a s e t h e 

r e c r e a t i o n a l v a l u e a n d c o n s e q u e n t l y t h e b e n e f i t s o f t h e 

p r o p o s e d s t r u c t u r e .

A n o t h e r c a s e i n p o i n t d e a l s w i t h t h e c o n s t r u c t i o n o f 

a u x i l i a r y l o c k s o n t h e U p p e r M i s s i s s i p p i R i v e r t o a c c o m m o d a t e 

r e c r e a t i o n a l c r a f t a n d t o r e d u c e t h e d e l a y t i m e f o r l o c k a g e 

o f t h e s e c r a f t . A s e r i e s o f p u b l i c m e e t i n g s w a s h e l d i n M a y 

a n d J u n e , 1 9 7 5 i n c o m m u n i t i e s a l o n g t h e U p p e r M i s s i s s i p p i 

R i v e r , t o i n t r o d u c e t h i s p r o p o s a l . I t w a s c a l c u l a t e d b y 

t h e R i v e r S t u d i e s C e n t e r , t h a t i f o n e . o f t h e s e s t r u c t u r e s

w e r e b u i l t a t D r e s b a c h M i n n e s o t a ( L o c k a n d D a m N o . 7 ),
9 6 0

6 -

i t w o u l d c o s t t h e t a x p a y e r b e t w e e n $ 3 0 a n d $ 5 0 p e r r e c ­

r e a t i o n a l c r a f t t o p a s s t h r o u g h t h e l o c k . T h i s c o s t i s 

b a s e d o n a 5 0 y e a r l i f e - s p a n o f t h e p r o j e c t . T h e r e a r e 

o b v i o u s a l t e r n a t i v e s t o t h i s p r o p o s a l , i n c l u d i n g t h e a p p l i ­

c a t i o n o f c o m p u t e r s t o c r e a t e w i n d o w s i n t i m e t h r o u g h w h i c h 

c o m m e r c i a l v e s s e l s c a n p a s s t o r e d u c e d e l a y t i m e a t t h e 

l o c k s . C h a n g e s i n l o c k a g e p r i o r i t i e s a r e a l s o p o s s i b l e t o 

a c c o m m o d a t e r e c r e a t i o n a l c r a f t d u r i n g p e r i o d s o f h i g h 

d e n s i t y .

O b v i o u s l y t h e c o n c e p t o f c o n s t r u c t i o n o f r e c r e a t i o n a l 

l o c k s o n t h e U p p e r M i s s i s s i p p i R i v e r i s p o p u l a r a m o n g c e r ­

t a i n u s e r s , b u t l i t t l e t h o u g h t h a s b e e n g i v e n t o d a t e t o 

e i t h e r t h e i m p a c t s o r t h e c o s t o f t h e c o n s t r u c t i o n a n d 

o p e r a t i o n o f t h o s e s t r u c t u r e s . I n m y o p i n i o n , t h e C o r p s 

h a s n o t a c t i v e l y d e v e l o p e d a l t e r n a t i v e s t o t h e p r o p o s a l a nd , 

c o n s e q u e n t l y , a p p e a r s t o b e t a c i t l y s u p p o r t i n g t h e c o n s t r u c ­

t i o n a l t e r n a t i v e .

H e r e i s a c a s e w h e r e t h e c h e a p e s t , m o s t f e a s i b l e , a n d 

s i m p l e s t s o l u t i o n t o t h e p r o b l e m m a y b e o n e t h a t d o e s n o t 

r e q u i r e s t e e l a n d c o n c r e t e , b u t m a y o n l y r e q u i r e c h a n g e s i n 

a d m i n i s t r a t i v e p r o c e d u r e .
9 6 1

Se nat or G r a v e l . O ur ne xt wit n ess will be t he H o n ora ble Bill 

Ale x a n der, a De m o crat fr o m Ar k a ns as, a n d o ur g o o d frie n d fr o m t he 

ot h er b o d y.

C o n g ress ma n, ma ke y o urself at h o me.

S T A T E M E N T O F H O N. BI L L A L E X A N D E R, A R E P R E S E N T A TI V E I N 

C O N G R ES S F R O M T H E S T A T E O F A R K A N S A S

Mr. A l e x a n d e r . T ha n k y o u ver y m u c h, Mr. C h air m a n.

Ge ntle m e n, I a p p reciat e t he o p p o rt u nit y t o be bef or e y o u t his 

m or ni n g. As y o u k n o w, t he a d mi nistrati o n is e x pe cte d t o re ne w its 

re q uest t o C o n g ress t o a p p r o v e a s yst e m of ta xe s t o be le vie d a g ai n st 

user s of o ur N ati o n’s w ater wa y s.

F o r a n u m b er of yea rs bef ore m y electi o n t o C o n gress, I w or ke d 

t o w ar d t he de v el o p m e nt of i nla n d water w a ys. T his is a n i ntere st I 

ha v e ret ai n e d as a Me m b er of C o n g ress re p res e nti n g a re gi o n w her e 

i nla n d water wa ys c o nstit ute a maj or ele me nt of o ur tra ns p o rtati o n 

net w or k.

T he i nl a n d water w a ys s yst e m is u n q u esti o n a bl y of gr eat val ue t o 

o ur Nati o n as a w h ole. W ate r b o r ne c o m mer ce i n t he U nite d St at es 

t ot als 1. 7 billi o n t o n s a n n uall y, t w o-t hir ds of w hic h is i nla n d traffic.

We i n Ar ka n sas are blesse d wit h water res o urce s t h at e na ble us t o 

m o ve grai n, rice, c oal, ba u xite, a n d ot h er b ul k pr o d u cts wit h hi g h f uel 

efficie nc y a n d at a c o m p arati v el y l o w c ost. At a ti me w he n o u r f uel 

s u p plies are d wi n dli n g a n d o ur c o ncer n f or t he e n vir o n me nt i ncre asi n g, 

it is i m p o rta nt t o n ote t h at water tra ns p o rtati o n re q uir es less e ner g y 

per t o n- mile t h a n a n y ot h er met h o d of frei g ht distri b uti o n a n d 

pr o d uc es less air a n d n oise p oll uti o n.

La st fall t he a d mi nistrati o n pr o p o se d t h at e ve r y t o n of c o m mer ce 

be ta x e d eac h mile it is tra ns p o rte d o n eac h of a s pecifie d n u m be r of 

ri v er se g m e nts. Ea c h se g me nt of t h e t ot al w o ul d be ta x e d t o t he e xt e nt 

nece ssar y t o rec o u p o per ati n g a n d mai nt e na nce c osts f or t h at se g me nt.

I nf or m ati o n a vaila ble t o me i n dicates t h at s uc h a ta x w o ul d ra n g e 

fr o m o n e- h alf mill per t o n- mile o n t he U p per Mississi p pi Ri ver t o 1 1 7 

mills o n t he Willa mette Ri ve r. T h e ta x o n t he Ar Ka ns as- Ver di gris 

se g me nt w o ul d be 3 7. 3 8 mills a n d w o ul d i ncr ease t he c ost of m o vi n g a 

l oa d e d 1, 5 0 0-t o n bar ge 1 mile o n t h at se g m e nt b y $ 5 6. 0 7. Ass u mi n g a n 

8- ba r ge t o w, t he a d d e d c ost f or m o vi n g it fr o m t he Mississi p pi Ri ver 

t o Pi ne Bl uff, Ar k., w o ul d be a b o ut $ 3 2, 0 0 0; t o Littl e R oc k, $ 5 2, 0 0 0; 

a n d t o F o rt S mit h, $ 1 3 9, 0 0 0.

Usi n g t hi s sa m e ta ble o n pr ojecte d milla ge i ncre ases f or ri v er 

se g me nts c o ve re d i n t he a d m i ni str ati o n pr o p osal a water use r ta x 

w o ul d i ncr ease t he c ost of s hi p pi n g a p pr o xi m atel y 4 milli o n t o n s of 

c o m m erce, pr e d o mi na ntl y c oa , fr o m wester n Ke nt u c k y t o Ta m pa, 

Fla., b y o ver $ 8 0 0, 0 0 0 a n n uall y, a n d m ore t h a n li kel y w o ul d be reflecte d i n t he utilit y b 11 of t he T a m pa, Fla., r esi de nt.

O ver 7 milli o n t o n s of c o m m erce were tra ns p o rte d o n Ar k a ns as 

ri ver s, n ot i ncl u di n g pr o d u cts tra ns p o rte d o n t he Mis sissi p pi, la st 

yea r. Petr ol e u m p r o d ucts hea d e d t he list, f oll o we d b y s o y bea ns, w h eat, 

a n d rice, ba u xite, c he micals, ir o n a n d steel, a n d c oal. T hirt y- ei g ht 

per ce nt of t he t ot al c o m m erce was e ne r g y- orie nte d. If c oal s hi p m e nts 

i ncre ase t o t he le vel s e x pe cte d t his ye ar, t he perc e nt a ge of e ner g yorie nte d c o m m erce o n Ar k a ns as ri vers c o ul d g o as hi g h as 7 5 perce nt.
96

A n ot h er pr o p osal t h at has c o me t o m y atte nti o n is t he le v yi n g of a 

f uel ta x o n water users. U nli ke t he f uel ta x w hic h is t h e pri ma r y s o urc e 

of re ve n ue a m o n g se ver al hi g h wa y user c har ges, i n water wa y use r 

c har ges a f uel ta x s h o ul d n ot be relie d u p o n as a pri ma r y s o ur ce of 

re ve n ue, beca use t he gre ate st per ce nta ge of d o m estic water wa y use 

occ urs o n a ha n df ul of w ater wa y s w here t he c o n diti o n of t he water wa y 

d oes n ot re q uir e va st e x p e n dit ur es of p u blic f u n d s f or na vi gati o nal 

p ur p oses. He n ce, alt h o u g h a water wa y f uel ta x assesse d at a h g h rate 

w o ul d be eas y t o a d m i nister a n d w o ul d pr o vi de s u b sta nti al re ve n ue s, 

it m o st li kel y w o ul d res ult i n e xcessi vel y dis pr o p orti o nat e pa y m e nts b y 

users of t h ose water w a ys w hic h re q uire rel ati v el y s mall e x p e n dit ur es 

f or d o me stic na vi g ati o n

I d o n’t ha v e t o tell y o u, Mr. C h air ma n, w h o will ulti m atel y pa y t he 

b ul k of t hese, or a n y ot h er, ta xes le vie d o n o ur water users. T h e n o ose 

will c o nti n u e t o ti g hte n ar o u n d t he nec k of t he c o ns u mer as he di gs 

e ve n dee p er i nt o his p o c ket t o m eet f uel a n d f o o d nee ds.

I n vie w of t he N ati o n’s seri o u s ec o n o mic w oes t here c o ul d har dl y be 

a w orse ti me t h a n n o w t o re vi v e le gislati o n i m p osi n g ta xes o n water ­

wa ys. T he a d mi nistrati o n’s pr o p o sals, if e na cte d i nt o la w, c o ul d ver y 

well cri p ple ec o n o mic all y c o m m ercial na vi gati o n o n a n u m b er of 

i m p o rta nt tri b uta r y water w a ys t h at are vit al pa rts of t he i nla n d 

water w a ys s yste m.

Si nce t he bar g e rate s f or tra ns p orti n g t he ra w material s a n d f uel t o 

t he Nati o n’s b asic i n d ustrie s are c o m p arati v el y l o w, t he y ha v e ser v e d 

t o h ol d d o w n t he rat es of o verla n d m o des. T he se sa vi n gs are passe d 

o n t o s hi p p ers, w h ole salers a n d t he all-i m p o rta nt c o ns u mer.

Mr. C h air ma n, I a gai n wis h t o e m p hasi ze t he c o nti n ui n g val ue of 

t oll-free water w a ys a n d res p ectf ull y re q ue st t h at y o ur s u b c o m mittee 

m o ve ca uti o u sl y i n rec o m me n di n g a n y dr astic c ha n ges i n nati o n al 

wat er w a ys p olicies wit h o ut a t h or o u g h a n d i m parti al st u d y of t he 

a d ve rse i m pacts t h at mi g ht res ult fr o m f uel ta xes, l oc ka ge fees, t o nmile ta xe s or ot h er user c har ge i m p o siti o ns.

Bef or e pr oc ee di n g o n pre vi o usl y u n c h art e d c o urs es, we m u st k n o w 

w h at i m pa ct s uc h ta xe s will ha ve o n t he c o nti n u e d o p erati o n of t he 

i nla n d water wa ys tra ns p o rtati o n s yste m; w h at i m pact t hes e ta xes 

will ha v e o n t he c o m petiti v e p ositi o n i n i nt er n ati o n al ma r k ets of U. S. 

pr o d u cts n or mall y tra ns p o rte d t hr o u g h t he i nla n d water w a ys s yst e m; 

t he i m pa ct of user ta xe s o n retail prices of f o o d a n d f uel t o t he c o n ­

s u me r; h o w s uc h c har ges will affect p ote ntial i n d ust rial a n d b usi n ess 

de v el o p m e nt al o n g o ur i nla n d wat er w a ys; a n d h o w user c har ges will 

affect e xisti n g i n d ust rial, b usi ness, a n d rec reati o n o p erati o n s al o n g 

o ur wat er w a ys.

Mr. C h air ma n, t hes e det er mi nati o ns are esse ntial t o t he f or m ulati o n 

of p olic y t h at will mea n t he best p ossi ble mai nt e na nce, i m p r o v e m e nt, 

a n d o per ati o n of t his vit al li n k i n o ur tra ns p o rtati o n s yste m.

Se nat or G r a v e l . C o n gres s ma n, t h a n k y o u. I t hi n k y o ur st at e m e nt 

is e x plicit e n o u g h f or m y p ur p o ses. We u n f ort u natel y ha v e a pr o ble m 

o n o ur si de. I t hi n k y o u are a ware of t he Ne w Ha m p s hire m atter. T h e 

pres s ure of t he lea ders hi p d oes n ot per mit t he c o m mittee t o sta y i n 

sessi o n. I will f ore g o a n y c oll o q u y we mi g ht ha ve beca u se of t hese 

e xi ge ncies.

Mr. A l e x a n d e r . I t ha n k y o u f or t he o p p o rt u nit y of a p p eari n g. 

If y o u wa nt me t o c o me bac k at a n ot he r ti me, I will be ha p p y t o d o s o.

Se nat or G r a v e l . T ha n k y o u ver y m uc h.
96

Se n at o r D o m e ni ci . I ha v e o ne q ue sti o n, a n d I a m s ure it c o ul d kee p 

y o u a n d I here f or a n h o ur. I will pic k a cit y i n t he U nite d St ate s, 

s o m e w h at li ke Ta m pa i n size a n d f oll o w y o ur l o gic t hr o u g h : De n v er, 

C ol o., has n o fe de rall y s u bsi dize d i nla n d wat er w a ys t h at are g oi n g t o 

bri n g c oal t o it w he n t his c o u ntr y g oes t o a t ot al nati o nal p oli c y of n o 

m ore nat ur al g as a n d use eit h er c oal or n u cle ar f or its utilities. I w o ul d 

e x p ect y o u w o ul d fa v or t he s u bsi dizi n g of c oal t o t he De n v er are a 

s o t he y w o ul d get it wit h o ut a n y f rei g ht rat es, beca u se t heir c o n s u m ers 

are g oi n g t o p a y t h at ce rtai nl y as we m o ve a wa y fr o m t h at.

Mr. A l e x a n d e r . Yes, I ha ve v ot e d f or s u bsi dies f or t he railr oa ds 

si nce I ha ve bee n here. It l o o ks li ke t he o nl y wa y t he railr oa ds are 

g oi n g t o c o nti n u e t o o pe rate is t o ha v e t he Fe d eral G o ver n m e nt b uil d 

a c us hi o n or feat her be d, if I mi g ht pic k a w or d fr o m ra n d o m, t o hel p 

t he railr oa d s c o nti n u e t o o perate. As y o u sa y, we c o ul d get i nt o t he 

q uesti o n of h o w best t o c o m ple m e nt water tra ns p o rtati o n, a n d I cer ­

tai nl y t hi n k t h at we nee d t o de vel o p a nat ur al tra ns p o rtati o n p olic y 

w hic h w o ul d e m b race a p olic y f or t h os e area s w hic h d o n ot ha v e t he 

blessi n g of t h ose t h at ha ve access t o water tra ns p o rtati o n. C h ea p b ul k 

tra ns p o rtati o n is esse ntial t o de vel o p a n d mai nt ai n a via bl e ec o n o m y. 

As a m atter of fact, I a m o n t he Tr a n s p ortati o n S u b c o m mittee f or 

A p p r o priati o n s a n d we are wrestli n g wit h t he q uesti o n of h o w t o m o st 

effecti v el y s u bsi dize t he railr oa ds. O b vi o usl y, t he y ca n’t o p erate a n d 

ma n a ge t heir o w n b usi nes s i n a pr ofita ble ma n ner. We certai nl y t hi n k 

t h at t he railr o a ds are esse ntial t o c o nti n u e c o m mer ce. T o a ns w er y o ur 

q uesti o n, Yes, I a m f or s o me f or m of s u b si d y f or t he railr oa d s.

Se n at o r D o m e ni c i . T h a n k y o u ver y m uc h.

Se n at or G r a v e l . T h a n k y o u, C o n gres s ma n. We a p p reciat e y o ur 

c o mi n g.

O ur ne xt wit n ess is a n ot her disti n g uis he d Me m be r of t he ot he r b o d y, 

t he H o n or a bl e Gillis L o n g fr o m L o uisia n a.

C o n g ress m a n, welc o me. Ma ke y o urself at h o me.

S T A T E M E N T O F H O N. GI L LI S W. L O N G, A R E P R E S E N T A TI V E I N 

C O N G R E S S F R O M T H E S T A T E O F L O UI SI A N A

Mr. L o n g . T h a n k y o u ver y m uc h, Mr. C hair m a n.

I a p p reciate y o ur c o urtes y of i n viti n g me t o testif y o n t he Ar m y 

C or p s of E n gi n eer s’ na vi gati o n pr o gra ms a n d p olicies. As t he i m m e ­

diate pa st pre si de nt of t ne L o w er Mississi p pi Valle y Fl o o d C o ntr ol 

Ass o ciati o n I a m partic ula rl y i nt ere ste d i n t hese pr o gra ms a n d p oli ­

cies a n d als o beca u se t he Missi ssi p pi Ri v er fl o ws t hr o u g h m y di strict 

f or s o me 100 miles. T h e At c ha fala ya Ri v er, w hic h is t he dee pest ri v er 

i n t he w orl d is i n m y district a n d s o is t he f ut ure Re d Ri v er Water wa y.

Se n at o r G r a v e l . I ha d occasi o n t o fl y o ver t he At c ha fal a ya. Is it 

t he dee pest ri ve r i n t he w’orl d ?

Mr. L o n g . T ha t is ri g ht.

Se nat or G r a v e l . Reall y?

Mr. L o n g . Y es.

Se nat or G r a v e l . I a m s ur p rise d.

Mr. L o n g . T h e At c ha fala va is ver y i nte resti n g. T h e Missi ssi p pi 

nea rl y t ur ne d d o w n t he Atc haf ala ya, w hic h w o ul d ha v e left Bat o n 

R o u ge, Ne w’ Orlea ns a n d s o me ot h er areas, literall y s pea ki n g, hi g h 

a n d dr y. I d o n’t t hi n k a n yt hi n g s o ut h of t h at are a is g oi n g t o be hi g h 

a n d dr y, b ut it w o ul d ha v e bee n cl ose t o it.

Se nat or G r a v e l . W hat ki n d of de pt h s d oes t he ri ve r ha ve ?
9 6 4

Mr. o n g . T h ere at t he bri d ge w here 190 cr osses it, f or e xa m ple, 

it is a b o ut 120 feet at n or m al sta ge s. As y o u k n o w, t his is prett y dee p 

f or a ri ver.

Se nat or G r a v e l . Yo u will n ot ha ve a dre d gi n g pr o ble m.

Mr. L o n g . N ot i n t he Atc hafala va. I n t he L o wer Mississi p pi, t he re 

is a s u bsta ntial dre d gi n g pr o ble m. We d o ha ve a pr o bl e m a little bel o w 

t here w here it fl o ws i nt o t he G ulf, it be gi ns t o silt, b ut n ot ver y m u c h.

M y district b or ders t he O u ac hita- Bla c k Ri ve r Water w a y o n t he 

n ort h a n d t he G ulf I nt rac oa stal Water w a y o n t he s o ut h. Beca u se of 

all t hese ri ver s a n d wat er w a ys a n d t heir i m p orta nce t o t he pe o ple of 

t his area, I a m vit all y c o ncer ne d wit h re gar d t o f ut ure Fe d eral na vi ga ­

ti o n p olicies.

A p pr o xi m atel y 45 6,0 00 pe o ple resi de i n t he Ei g ht h C o n g ressi o nal 

Di stri ct, a n d t heir li veli h o o ds are dire ctl y de p e n d e nt, i n lar ge mea s ur e 

o n water w a y pr o gra m s — na vi ga ble c ha n nel s f or water tra ns p o rtati o n, 

le vees a n d u p str ea m reser v oirs t o pr otect t heir h o mes a n d la n ds fr o m 

fl o o di n g, a d e q u ate water f or m u nici pal a n d i n d ustrial use, h urrica ne 

pr otecti o n, a n d fis h a n d wil dlife e n h a nc e m e nt. A lar ge p orti o n of t he 

Ei g ht h Di strict lies i n t he fl o o d plai n. I ncl u de d are s o me of o ur m o st 

pr o d ucti v e far mla n d, best i n d ustrial sites a n d m ost p o p ulate d area s. 

We feel we ha v e a bi g sta k e i n nati o n al water res o urc es p olicies 

beca use t he water w hic n falls as rai n or s n o w t hr o u g h o ut t he e ntire 

Mississi p pi- O hi o- Miss o uri Ri ver wat ers h e d c o veri n g all or pa rts of at 

least 30 States fl o ws p ast o ur h o mes, far m s, a n d b usi nesses.

T he C or p s of E n gi ne ers tells me t h at 41 per ce nt of t he water w hic h 

drai ns off of A merica drai ns t hr o u g h m y c o n gressi o nal district. W hile 

it c o ntri b ute s t o o ur li veli h o o ds, t his water a n d als o f or t h at m att er, 

y o u r wat er, all o ver t he rest of t he c o u ntr y, a b o ut 41 per ce nt, as I 

sa y, creates a n a wf ul l ot of pr o ble ms f or us.

Wit hi n t he last fe w deca d es, we ha v e wat c he d t he tra nsf or m ati o n 

of ri v ers of t he l o wer Mississi p pi Valle y a n d ot h er parts of t he Nati o n 

fr o m i nstr u me nts of destr u cti o n a n d miser y t o p ur v e y ors of ec o n o mic 

vit alit y a n d re gi o n al gr o wt h. It is distr essi n g, t her ef or e, t o wit n ess t he 

ne g ati v e attit u d es of s o me a ge ncies — partic ula rl y t he D e p art m e nt of 

Tr a n s p ortati o n a n d t he Office of Ma na g e m e nt a n d B u d g et — wit h 

re gar d t o water res o u rce pr o gra ms, a n d t o n ot e t he re p eat e d atte m pt s 

of vari o us aca d e mic a n d g o v er n m e ntal st u d y gr o u ps t o d o w n gra de 

water res o urces d e vel o p me nt eff orts. I n m y j u d g m e nt, s uc h ma n e u v ers 

are e xtr e mel y s h o rtsi g ht e d a n d wastef ul of o ur priceless nat ur al 

res o urc es.

T he Nati o nal W ate r C o m missi o n’s fi nal re p ort, relea se d j u st 2 yea rs 

a g o t his wee k, was t he m ost bl at a nt e xa m ple of t his p hil o s o p h y. As 

y o u ma y re m e m b er, Mr. C h air m a n, t he C o m missi o n q ue sti o ne d 

w h et h er t he Fe d eral G o ver n m e nt s h o ul d e ve n be i n v ol ve d i n f ut ure 

na vi gati o n, fl o o d c o ntr ol, a n d ot h er water res o urces pr o g ra m s. If s o, 

t he C o m missi o n c o nte n d e d t h at t he f ull c ost s h o ul d be b or n e b y 

users a n d dir ect be nefi ciaries rat h er t h a n t he Fe d eral G o ver n m e nt. 

W ate r res o urces ma na g e m e nt pr o g ra m s w o ul d t h u s be defe d erali ze d 

at t he ver y sa me ti me t h at ot he r p oli c y m a ker s are tr yi n g t heir ha r d est 

t o fe deralize t he ma na g e m e nt of c oastal z o ne res o ur ces, ti m ber re ­

s o urces, a n d e ve n la n d res o ur ces. T h e l o gic of t hes e c o nfli cti n g p olicies 

esca pe s me. Fe d eral ma na g e m e nt of water res o urces has, I belie v e, 

bee n ver y s uccessf ul, a n d it w o ul d ma k e a bs ol utel y n o se nse at all t o 

ter mi nate Fe d eral lea d ers hi p i n t hes e pr o g ra m s.
96

T o re d u ce water res o urce s ma na ge me nt eff orts t o a pr o gra m of 

i nsisti n g o n c o m plet e rei m b urs e m e nt fr o m users a n d be neficiaries 

w o ul d effecti vel y e n d c o m p re he nsi v e ri v er basi n pr o g ra m s pr o vi di n g 

na vi gati o n a n d fl o o d c o ntr ol be nefit s. H o w is it p ossi ble t o assess t he 

pe o ple of t he Ei g ht h C o n gr essi o nal Di strict of L o uisia na f or t h e c ost 

of fl o o d c o ntr ol rese r v oirs i n We st Vir gi nia or M o nta n a or Ar ka n sas 

or a n y of a c o u pl e of d oze n ot h er St at es ? Or, if we are f orce d t o 

pa y f or u p str ea m fl o o d pr otecti o n a n d we get fl o o de d o ut, ca n t he 

u p stre a m St ate s be f orce d t o rei m b ur se o ur pe o ple f or t heir fl o o d 

l osses? W h o pa y s f or water res o urces pr o gra ms w hic h c o ntr ol ba n k 

er osi o n, re d u ce silt a n d se di m e nt ati o n, a n d pr e v e nt da m a ge t o o y ster 

be ds a n d fis h res o u rces i n t he est uaries ?

Ass u m e t h at a n i n d ust rial fir m l ocates a ne w ma n ufact uri n g pl a nt 

i n t he Ei g ht h C o n gressi o nal Di strict beca use of t he a v ail a bilit y of 

water tra ns p o rtati o n a n d t h u s bec o m es a be neficiar y of Fe deral 

na vi gati o n i m p r o v e m e nt s. S u p p ose t he fir m sel d o m utili zes water 

tra ns p o rtati o n beca u se of t he s u bs e q ue nt i n stit uti o n of water- c o m ­

petiti v e rail r oa d rate s. H o w t he n w o ul d t he na vi g ati o n c osts be 

rec o u pe d — b y ta xi n g t he fir m’s e m pl o yee s or fir m ’s st o c k h ol d ers, b y 

hi g h er i nc o m e ta xes, or b y tra ns p o rtati o n le vies ?

C o n si der als o t he decisi o n of a si milar fir m t o l ocate a fe w miles 

a wa y o n t he dee p- d raft Mississi p pi Ri v er na vi gati o n c ha n nel. It is m y 

u n der sta n di n g t n at u n der vari o us water w a y user ta x pla n s a d va n ce d 

i n rec e nt years, c o m m erce m o vi n g b y s hi ps wit h a dr aft dee per t h a n 

1 5 feet w o ul d be t oll-free, w hile c o m m erce m o vi n g b y s hi ps a n d bar ge s 

wit h dr aft s less t h a n 1 5 feet w o ul d be ta xe d. Is t his fair a n d e q uita ­

ble? I n vie w of t he fact t h at c ha n nel mai nt e na nce be ne fits de e p- dr aft 

s hi ps m ore s o t ha n s hall o w- dra ft s hi ps, I t hi n k n ot. W hat t his mea ns 

is t n at steel a n d pi pe arri vi n g i n t he Ne w Orle a ns are a b y bar g e fr o m 

Pitts b ur g h a n d C hica g o w o ul d be ta xe d f or usi n g t he Fe deral na vi ga ­

ti o n s yste m si m pl y beca u se it ca me o n s hall o w - dr aft s hi ps w hile 

i m p orte d steel arri vi n g b y dee p- d raft s hi p s fr o m Ja pa n w o ul d be t oll 

free beca u se it ca m e o n dee p- d raft s hi ps. I d o n ot t hi n k t h at s uc h a 

p olic y is i n t he nati o n al i nt ere st n or d o I t hi n k it is parti c ularl y fair 

a n d e q uita ble si nce t he e xa m ples of t hi s ki n d of rat e dis cri mi nati o n 

w o ul d be al m ost e n dless. I n fact, S ol o m o n i n all his wis d o m c o ul d 

ne ve r de vise a s yste m of wat er w a y user a n d be n efici ar y ta xes wit h o ut 

cre ati n g e n dless har ds hi ps a n d hea dac h es f or t he A m eric a n pe o pl e a n d 

fr u str ati n g Fe d eral water res o urc es ma na ge me nt eff ort s.

M or e o ver, si nce t hese user c har g es u n d o u bte dl y w o ul d be pass e d 

o n t o c o ns u mer s t here b y raisi n g t he prices of all g o o ds tra ns p o rte d b y 

s hall o w - dra ft vessels I fear t h at t he i nflati o n ar y i m pa ct of s uc h a 

m o ve w o ul d be n ot j u st astr o n o mic al b u t als o det ri m e ntal t o t h e alrea d y 

belea g uere d A merica n c o ns u mer. Als o, t o m y k n o wle d ge t he W at er 

Res o urces C o u ncil has ne ve r p u blis he d a n y i n- de pt h i nf or m ati o n 

re ga r di n g t he li kel y effect t h at t hese t olls a n d user c har ges w o ul d 

ha v e o n i n d ustrial de v el o p me nt i n t he U nite d St ate s a n d t he c o m p a n ­

i o n effects o n u n e m pl o y m e nt t h at it mi g ht ca use. User fees mi g ht well 

ca use se vere ge o gra p hical disl ocati o ns i n i n d ust rial de v el o p m e nt, 

w hic h i n t ur n c o ul d ca use a gr eat deal of re gi o nal u ne m pl o y me nt a n d 

re gi o n al ec o n o mic disa d va nta g es.

T h e fi nal re p ort of t he Nati o n al W ate r C o m missi o n was relea se d i n 

J u ne of 1 9 7 3, a n d it c o ntai n e d a rec o m me n dati o n t h at f ut ur e water 

res o ur ces ma na g e m e nt pr o gra m be left t o n o n - Fe der al i nt ere sts. As
96

y o u recall, Mr. C hair m a n, a gr eat ma n y of us i n t he H o us e of Re p re ­

se ntati ve s were e xtre mel y u ps et wit h t h at rec o m m e n d ati o n i n parti c ­

ular, a n d we ma d e o ur v oice hea r d i n t he sa me W hit e H o u se t h at has 

bee n a d v a nci n g t hese user-fr ee pr o p o sals.

Si nce I was t he pre si de nt of t he L o wer Mississi p pi Valle y Fl o o d 

C o ntr ol Ass ociati o n w he n t he re p ort was release d, I wr ote a letter t o 

t he Pre si d e nt of t he U nite d States i n dicati n g m y a bs ol ute o p p o siti o n 

t o t his rec o m m e n d ati o n, a n d t he letter was si g ne d b y 100 of m y 

c ollea g ues i n t he H o use — De m o crats a n d Re p u blica n s fr o m all 

ge o gra p hi cal parts of t he Nati o n. Si nce t h at letter was se nt t o t he 

Pre si d e nt, we ha ve neit her see n n or hea r d of t h at W ate r C o m missi o n 

re p o rt.

We li ke t o t hi n k per ha p s o ne of t he reas o n s we ha v e n ot is beca us e 

of t he fact we s o v ocifer o usl y v oice d o ur o p p o siti o n t o it.

I a m a war e, Mr. C h air m a n, t h at y o ur c urre nt o v ersi g ht heari n gs 

are c o nc er ne d pri m aril y wit h na vi g ati o n p olicies. It s h o ul d be n ote d 

t h at n a vi gati o n is a ke y ele m e nt of m o st m ulti p u r p o se water res o ur ces 

de v el o p m e nt pr o gra ms. Na vi g ati o n be nefits — w hic h ofte n ge n erat e 

tra ns p o rtati o n sa vi n gs b y pr o vi di n g ri ve r na vi gati o n — ofte n pr o vi de 

or a d d t o t he ec o n o mic j ustifi cati o n nee de d t o u n derta ke c o m pre ­

he nsi ve basi n de v el o p me nt i n v ol vi n g fl o o d c o ntr ol, water s u p pl y, 

irri gati o n, ba n k sta bili zati o n a n d ot h er be nefits i n a d diti o n t o 

na vi gati o n.

Wit h o ut t he i ncl usi o n of t hese na vi gati o n be nefits, f or i nsta n ce, t he 

Pic k- Sl oa n pla n f or t he c o m pre h e nsi ve de v el o p me nt of t he Mi ss o uri 

Ri v er basi n mi g ht ne ve r ha v e bec o me a realit y. T his pr oj ect’s d o w n ­

str ea m na vi gati o n be nefit s, deri ve d fr o m t he s pri n gti m e st ora g e a n d 

s u m me rti m e release of ri ve r water st or e d ma n y h u n dre d s of miles 

u p str ea m i n t he “ great la k es of Miss o uri,” hel pe d pr o vi de t he ec o n o mic 

i nc e nti ve t o i ustif y t he e nti re Mis s o uri Ri v er basi n pr oject.

Ti m el y release s fr o m t hes e reser v oir s n ot o nl y fl oat bar g es b u t t he y 

als o sa ve fis h a n d wil dlife. J u st a fe w yea rs a g o, fres h water release d 

fr o m t hes e reser v oirs w as use d t o re pel waters fr o m t he G ulf of Me xic o 

t h at were sl o wl y bac ki n g u p t he Mis sissi p pi Ri v er, t he re b y kee pi n g 

t he salt water fr o m e nt eri n g t he Ne w Orle a ns water s u p pl y s yst e m.

Of c o urse siltati o n at t h e m o ut h of t he Mississi p pi Ri ver al wa y s 

will be a diffic ult pr o bl e m — a n d we al w a ys will ha v e t o mai nt ai n a 

siza ble dre d gi n g o perati o n t o kee p t he c ha n nel o pe n. H o w e ver, I 

n ote t h at t he ri v er traffic t o a n d fr o m Bat o n R o u ge a n d Ne w Orlea ns 

f or e xa m ple, di d n ot ca use t he siltati o n pr o ble m — t he silt is t he res ult 

of er osi o n occ urri n g f ar u pstrea m i n s uc h States as Illi n ois a n d Miss o uri.

W h y t he n s h o ul d t he Ne w Orle a ns p ort, w hic h a d mitte dl y be nefits 

fr o m dre d gi n g at t he m o ut h of t he Mississi p pi Ri v er, pa y f or m o vi n g 

Illi n oi s di rt w he n Illi n ois d oe s n’t pa y Ne w Orlea ns f or ha vi n g ca use d 

t he pr o ble m i n t he first pla ce? T his is j u st a n ot he r e xa m pl e of t he 

ki n d of pr o ble m s t h at will be e nc o u ntere d if we ma k e water res o ur ces 

de v el o p m e nt a n o n- Fe d eral pr o gra m de p e n de nt o n user fees.

T h e Re d Ri v er Water w a y, still i n its earl y sta ge s, is a pri m e e x ­

a m ple of a m ulti p ur p ose water w a y pr o vi di n g na vi gati o n, fl o o d c o n ­

tr ol, water s u p pl y a n d ot h er be nefits. Ta ke a wa y t he na vi g ati o n fea ­

t ure s, or tr y t o assess t he fl o o d c o ntr ol as pe cts t o t he be nefi ciaries, 

a n d I a m afrai d t h at t he e ntire ri ve r i m pr o ve m e nt pr o gra m w o ul d be 

je o p ar di ze d.
9 6 7

As I ha v e pre vi o usl y me nti o n e d, I a m i m me diate pa st pre si d e nt of 

t he L o wer Missis si p pi Valle y Fl o o d C o ntr ol Ass o ciati o n, a n or ga niz a ­

ti o n of p u blic a ge ncie s i n v ol ve d i n fl o o d pr otecti o n eff ort s, a n d fl o o d 

c o ntr ol is a m atter of gre at c o nc er n t o t h os e of us i n t he L o w er Mis ­

sissi p pi Valle y. O ur e xec uti ve vice pre si d e nt, Mr. J o h n Be ar d e n, Jr., 

parti ci p ate d as a pa n elist i n t he fl o o d c o ntr ol disc u ssi o ns at t he re ce nt 

G o ver n m e nt-s p o ns ore d Nati o nal C o nfere nce o n W ate r here i n t he 

Nati o n’s Ca pit al.

Mr. Bea r de n p oi nte d o ut — a n d I pass t he i nf or m ati o n o n t o y o u — 

t h at, w hile we e x pe rie nc e d l osses of j u st o ve r $1 billi o n i n t he vall e y 

fr o m t he se ver e e xcess water c o n diti o ns d uri n g t he s pri n g of 1973, t he 

Missis si p pi Ri v er a n d tri b uta rie s fl o o d c o ntr ol pr oject — w hic h is o nl y 

a b o ut o ne- half c o m plet e — p re v e nte d a d diti o nal l osses esti m ate d at 

$14 billi o n. T h e e ntire Fe d eral i n ve st m e nt i n fl o o d c o ntr ol w or ks si nce 

passa ge of t he Fl o o d C o ntr ol Act of 193 6 has bee n less t h a n $1 0 billi o n 

nati o n wi de. S o we ca n c o u nt be n efits gr eater t h a n t h at t otal i n ve st ­

me nt occ urri n g i n o ne fl o o d o n o ne fl o o d c o ntr ol pr oject. T his is gi vi n g 

a bs ol ut el y n o c o nsi d erati o n at all t o t h e tr a n s p ortati o n sa vi n gs t h at ha v e 

bee n i nc urre d o ver t ha t p eri o d si nc e 1963.

T he se are facts w hic h critics of o ur Fe d eral water res o urce s eff o rt 

ref use t o face. I n d ee d, we ha v e e ve n wit n esse d atte m pt s b y s o me 

gr o u ps t o di st o rt t his data s o as t o p o rtr a y t he fl o o d c o ntr ol eff ort as a 

fail ur e. F o r e xa m ple, t he Wa s hi n gt o n- bas e d E n vir o n me ntal P oli c y 

Ce nte r relea se d a r e p ort f oll o wi n g t he 1973 fl o o ds w hic h ma de m u c h of 

t he fact t h at t he fl o o d cre st —t he ma xi m u m hei g ht of t he water be ­

t wee n t he le vees — was nearl y 2 feet gr eater at St. L o uis i n 197 3 t h a n 

it ha d bee n d uri n g a disa str o us fl o o di n g sit uati o n i n 1844, bef ore t he 

e xist e nce of t he C or ps of E n gi n eer s’ le vee s yste m.

Fr o m t his fact it was c o ncl u de d t h at t he deca des of C or ps of E n gi ­

nee rs’ w or k o n t he Mississi p pi Ri v er a n d its tri b utaries ha d c o ntri b ­

ute d t o, rat h er t h a n alle viate d, fl o o di n g pr o ble ms. T ha t c o ncl usi o n is, of 

c o urse, pre p oster o us. T he w h ole p ur p os e of t he le vees is t o c o nstri ct 

t he e xcess water wit hi n a fi xe d c ha n nel, a n d t h at nec essaril y e nt ail s a 

hi g h er c ol u m n of water d uri n g pea k fl o ws.

T he hi g her cre st si m pl y i n dicates t h at t he le vees hel d —t h at t he 

e n gi n eeri n g s ol uti o n w or ke d. T he alt er nati v e t o t he i nte n d e d c o nt ai n ­

me nt of e xcess water wit hi n t he le vees is fl o o di n g. Yes; t he fl o o d cr est 

was l o wer i n 1844, b u t t he ri v er was miles wi de a n d m uc h of St. L o uis 

was u n d er water. Far ms, b usi ne sses, a n d h o me s were wi pe d o ut. B v 

c o ntr ast, i n 1973, j o b s, ec o n o mic acti vit y, a n d pe o ples’ dail y li ve s w ere 

virt uall y u ni nterr u pt e d i n d o w mt o w’n St. L o uis wit hi n t he s ha d o w of 

t he le vees w hic h hel d bac k t he 2-f o ot hi g her fl o o d crest.

S o, I h o pe t h at t hi s c o m mittee, a n d fair- mi n de d pe o ple e ve r y w her e, 

will rej ect fi n di n gs of t he s ort I ha ve j u st me nti o ne d. O ur c hall e n ge 

is t o o pti miz e f or t he be ne fit of all o ur pe o ple a nat ur al res o urce w hic h 

w he n pr o perl y ma n a ge d, ca n be use d a n d re use d f or a va riet y of p u r ­

p oses ra n gi n g fr o m tra ns p o rtati o n t o i n d ust rial a n d resi de nti al c o n ­

s u m pti o n t o pr o visi o n of fis h a n d wil dlife ha bitat.

T his a p p r oa c h t o water res o urces ma na ge me nt ca n be st be carrie d 

o ut b y c o nti n u e d a n d stre n gt he ne d Fe d eral lea d ers hi p i n t he pla n ni n g 

c o n str u cti o n, o pe rati o n, a n d fi na nci n g of lar ge, m ulti ple- p ur p o se 

water res o urce s pr oj ects. It is o nl y at t he Fe d eral le vel t h at t he tr u e 

ca p a biliti es —r es ulti n g fr o m dec a des of de v el o p m e nt of t h e Fe d eral 

water r es o u rces e ff ort —t o ac hie v e s uc h a missi o n are f o u n d.
96

I j ust d o n ot belie ve, partic ula rl y i n t he area i n m y o w n c o n gr es ­

si o nal distri ct, a n d it is a g o o d e xa m ple of it, t h at t his ca n be c o ­

or di nate d a n d mai ntai ne d at t he l ocal le vel. It is a bs ol utel y be y o n d 

l ocal ca pa cit y t o ac hie v e c o m pre h e nsi v e c o ntr ol. O ne pari s h mi g ht 

be a ble t o d o it, or o ne St ate mi g ht be a ble t o d o it, a n d o ne n o rt h of 

it mi g ht n ot d o it. Let’s a ss u m e Ar k a ns as di d n ot ha v e a c o m pre he n ­

si ve pr o gra m wit h res p ect t o t he le vees al o n g t he Missi ssi p pi, b ut we 

i n Ij o uisia na di d. W hat mi g ht ha p pe n is t h at t he water w o ul d c o me 

d o w n fl o wi n g be hi n d t he le vees all t he wa y t hr o u g h Ar k a ns as. W h at 

w o ul d be t he g o o d of ha vi n g t he le vees i n L o uisia na? All it w o ul d d o 

is c o ntai n t he water.

I t hi n k a Fe de ral pr o gra m is a bs ol ut el y esse ntial, a n i nte grate d 

Fe d eral pr o gra m w hic h I t hi n k is s o i m p orta nt t o t his c o u ntr y.

T h a n k y o u, Mr. C hair m a n.

Se nat or G r a v e l . T h a n k y o u, C o n gress m a n. We reall y a p p reci ate 

y o ur partici pati o n.

Se nat or D o m e ni ci . C o n gr ess m a n, I was t here i n t he 1 9 7 3 fl o o d wit h 

o ne of y o ur Se n at or s w h o was pa rt of t he Dis ast er Relief C o m mittee. 

Wit h refere nce t o w h at it w o ul d ha v e bee n wit h o ut t he c or ps’ pr oject, 

I w h ole he arte dl y a gree wit h y o u. I ma y ha ve s o me q ui b bli n g as t o 

free tra ns p ortati o n o n t he water wa y s; I h a ve n o d o u bt w hat s oe ver t h at 

it re m ai ns a F e der al res p o nsi bilit y t o c o ntr ol fl o o di n g as best a s p ossi ble 

o n t hese i nt er state strea ms of t he t v p e y o u are s pea ki n g of. I t hi n k y o u 

are a bs ol utel y ri g ht o n it bei n g a Fe d eral res p o nsi bilit y.

Mr. L o n g . I cert ai nl y feel m uc h str o n ger wit h res pect t o t he fl o o d 

c o ntr ol as pe cts of it, beca us e t her e is j u st n o wa y t h at it is g oi n g t o w or k 

ot her wis e u nles s t he fl o o d pr ojects are fe der all y c o o r di nat e d.

I hear d t he q uesti o n y o u as ke d Mr. Ale xa n der. I t o o ha v e s u p p orte d 

t hes e pr o gra m s a n d well re c o g nize t he pr o ble ms wit h res pect t o e ner g y 

o ver t he c o mi n g yea rs of t h ose area s t h at d o n ot ha ve water tra ns ­

p ortati o n.

O ne i nt ere sti n g t hi n g. I a m o n t he R ules C o m mittee i n t he H o u se 

w hic h is differe nt fr o m t he R ule s C o m mitt ee i n t he Se n ate. E v er y ­

t hi n g c o mes bef ore us bef ore it g oes bef ore t he fl o or. T o da y we are 

w or ki n g o n t he fl o or o n t his resear c h a n d de v el o p me nt pr o g ra m f or 

ne w pr o gra m s i n at o mic e ner g y a n d relate d pr oj ects. O ne of t he t hi n gs 

t h at I h a d rea d s o me ti me a g o, a n d I di d s o me q ue sti o ni n g of t he wit ­

nesses bef ore o ur c o m mitt ee ye ste r da y o n t his, is t he a bilit y t o t ra n s p ort 

ele ctricit y al o n g area s wit h o ut a v er y s u b sta nti al l oss f act o r. T he re is a 

p h ysical t y p e of re acti o n t h at occ urs at a b o ut 4 00 mile s, w hic h h as o ver 

t he yea rs ma d e it i m p ossi ble f or us t o reall y effecti v el y a n d efficie ntl y 

m o ve electricit y l o n g dista nces. T h e i nte resti n g pa rt was t he ma n t h at 

w o n t he N o bel Prize i n p h ysi cs ma n y year s a g o f or w h at has per h a ps 

bee n, as A meri ca n i n d ustr y’ is c o ncer n e d, t he m o st re v ol uti o n ar y t hi n g 

i n o ur lifeti me t he i n v e nti o n of t he tra nsi st or a ma n at t he U ni ­

versit y of Illi n ois. He was a p h ysicist, a n d 2 y ear s a g o he was a war de d 

t he N o bel Prize a gai n i n p h ysic s. As y o u k n o w, Pa ste ur was t he first 

pers o n t o recei ve t w o N o bel Prizes i n t he sa me fiel d. T he ma n at t he 

U ni ve rsit y of Illi n ois recei ve d t his sec o n d a war d f or dete r mi ni n g t he 

reas o n w h y t his l oss occ urs. T h e y ha ve n ot q uite c o n q uere d t he 

pr o ble m, b ut a pa rt of c o n q ueri n g it is reali zi n g w h at ca uses t he 

pr o ble m. He f o u n d t h at w he n y o u re d uce t he te m perat ure of t h ose 

ca ble s t h at tra ns mit t his ele ctri cit y t o a ver y l o w te m perat ure, y o u 

o mit t he l oss fact or i n its e ntir et y. S o ma y be i n t he n ot t o o di sta nt
96 9

f ut ure we are g oi n g t o be a ble t o use t he c oal w here it is a n d m o ve it t o 

area s s u c h as De n ve r a n d t he area s n ot se r ve d b y water tra ns p o rtati o n 

t hr o u g h t his.

B y t he wa y, we atte m pte d t o ma k e, a n d we s hall ma k e i n t he H o u se 

of Re pre se ntati ve s, a s u bsta ntial a m o u nt of m o n e y a vaila ble f or 

pr ojects of t h at t y p e, i ncl u di n g t h at o ne.

Se nat or D o m e ni c i . Yo u raise a m o st i nt ere sti n g q u esti o n. T h e 

a p plicati o n of t he N o bel Prize wi n n er’s t he or y is ta ki n g place i n L os 

Ala m os, N. Me x. T h e y are well al o n g i n a j oi nt ve nt u re wit h o ne of 

t he maj or p o we r c o m p a nies. It will i n v ol ve placi n g u n d er g r o u n d i n 

heli u m c o ole d ta n ks a ne w ki n d of met al t h at will tra ns mit ele ctri cit y 

wit h n o l oss w hats oe ver. It is a rat h er e xciti n g pr oject. T h e y k n o w of 

n ot hi n g ot he r t ha n heli u m t h at ca n s ur r o u n d it t h at t he y ca n freeze. 

T hat l o o ks li ke a ne w a n d vital area, b ut we will be de str o yi n g o ur 

heli u m reser ves at t he sa me ti me. We are g oi n g t o ha v e s o me data 

s o o n o n h o w it will w or k. T he re will j u st be heli u m p u m pi n g stati o ns 

al o n g t he u n d er gr o u n d li nes t h at w o ul d c o ntr ol t he te m perat ure of 

t he tra n s mi ssi o n li nes. We o u g ht t o ha v e s o m et hi n g i n t he ne xt 7 or 8 

m o nt h s.

Mr. L o n g . I a gree. As y o u p oi nt o ut, t his was de vel o pe d as a pa rt 

of t he s pace pr o g ra m, a n d we s p e nt all t he m o n e y de v el o pi n g it. T h e 

wast e of t hi s heli u m n o w is ri dic ul o u s o n t he pa rt of t he G o ve r n me nt. 

S o me b o d y nee d s t o d o s o m et hi n g a b o ut it.

B y t he wa y, i n t he H o use we ha v e a s cie nti st t h at is c h air ma n of t he 

s u b c o m mittee, Mi k e Mc C or mi c k. Basicall y he is a n u cle ar scie ntist, 

a n d is ver y c o m pet e nt i n t his fiel d. It is fas ci n ati n g t o sit d o w n a n d 

list e n t o hi m testif y.

Se n at o r G r a v e l . O ur ne xt wit n ess is Ala n B o y d, pre si d e nt of t he 

Illi n ois Ce ntr al G ulf Railr oa d.

S T A T E M E N T O F A L A N S. B O Y D, P R E SI D E N T, I L LI N OI S C E N T R A L 

G U L F R AI L R O A D

Mr. B o y d . T h a n k y o u, Mr. C h air ma n, a n d me m bers of t he c o m ­

mittee. I will m a ke it ver y brief. Fi rst of all, it will c o me as n o s ur pri se 

t o y o u w he n I tell y o u t he re is n o s uc h t hi n g as free tra ns p o rtati o n. 

T he q ue sti o n is w h o pa y s f or it a n d w h o be nefits. T h e basi c pr o ble m 

t h at has bee n i n v ol ve d i n t he U. S. G o ver n m e nt o pe rati o n of s u p p ort 

f or p u blic tra ns p o rtati o n s yste m s has bee n j u st as was o utli ne d b y 

C o n gres s ma n Ale x a n der, a n d a q ue sti o n was raise d b y Se nat or 

D o m e nici, t he be nefit s h a ve be e n t hr o w n a b o ut i n a ha p h az ar d fas hi o n. 

T h e c ost s are t here. It is free t o s o me pe o ple. B ut t he c osts are ver y 

real a n d t he c osts are bei n g pai d i n t he n a vi gati o n as p ect o f w ate r w a ys 

tra ns p o rtati o n b y t he t ot al A m eric a n ta x pa y er.

I a m n ot here t o de vel o p a n y diatri be s a gai nst water tra ns p o rtati o n 

or a n y as pe ct of it, b ut I s u g g est t o y o u t he re is s o me ir o n y, Mr. C h air ­

ma n, w he n at t he ti me t his c o m mittee is l o o ki n g at a n o ve r vie w of t he 

water wa ys na vi gati o n s yste m, f or w hic h I a p pla u d y o u, t he re is 

a n ot h er c o m mitte e of t he Se nat e str u g gli n g wit h t he q uesti o n of w h at 

ha p pe n s t o t he rail r oa d i n d ustr y, parti c ularl y i n t he N o rt h ea st. A n d I 

d o fi n d s o me diffic ult y wit h t he c haracterizati o n t h at t he railr o a d s ca n ­

n ot o perat e pr ofita bl y w he n s o m u c h of t he pr o ble m s bef or e t he S e nate 

C o m merc e C o m mitte e o n railr o a d s ha ve t o d o wit h p u blic p olic y
97

a d o pte d b y C o n gr ess. I h ol d n o brief t o t he q ue sti o n of w h et h er rail ­

r oa d s s h o ul d li ve or die. I t hi n k t he iss ue bef ore t his c o m mittee is 

o ne of a nati o n al p olic y. W h ate ver t h at p olic y de vel o ps i n ter m s of t he 

nati o n al i nt ere st, I will acce de t o a n d a p pla u d; w h ate ver it d oes t o m y 

b usi n ess or m y i n d ustr y.

B ut, u p t o n o w we ha ve gi ve n li p ser vice t o nati o n al p olic y. We d o 

n ot ha v e o ne. A n d I w o ul d s u b mit, Mr. C h air ma n, t h at t he f ull c ost of 

a n y pr oject, w h et h er it pertai ns t o water w a ys, air w a ys, hi g h wa y s, 

rail w a ys, or t o t he e xte nt t her e are p u blic res o u rces all ocate d^ t o a n y 

ot he r m o de of tra ns p o rtati o n, t h ose f ull c ost s s h o ul d be assesse d a n d 

s h o ul d be c o nsi d ere d i n li g ht of t hei r i m pa ct o n t he tra ns p o rtati o n s y s ­

te m. A n d o nce t h at is d o ne, we will ha v e a nati o n al tra ns p o rtati o n 

p olic y, ass u mi n g t here are s o me o bj ecti ves w hic h are st at e d i n t he 

tra ns p o rtati o n p olic y. I ha v e n o desire t o tal k t o y o u a b o ut t he l oc k 

a n d (la m 26 t o d a y.

I u n derst a n d t his is a n o ver vi e w. I w o ul d p oi nt o ut t o y o u, h o we ver, 

usi n g t h at as a n e xa m ple, t h at o ur o ne railr oa d f or a ca pital i n v est ­

me nt of $20 0 milli o n ca n ha ul all of t he t o n na g e pr oject e d f or t he e n ­

tire f ut ure f or t he e x p a nsi o n of t he U p per Mississi p pi wat er w a ys. A n d 

t h at is a s u b sta ntiall y s m aller i n v est me nt t h a n h as bee n disc us se d e ve n 

i n ter m s of l oc k a n d da m N o. 26.

I w o ul d s u b mit, Mr. C h air m a n, t h at t he C o n g ress is n ot rea d y t o 

see railr oa d s g o o ut of b usi n ess. T hat is m y belief at t his sta g e of t he 

ga m e. I als o a m c o nsci o us of t he fact t h at ma ki n g p olic y decisi o ns is 

e xtr e mel y diffic ult. A n d I w o ul d ha v e t he f oll o wi n g s u g g esti o ns t o 

ma ke :

Fir st: T h e mec ha nis m wit hi n t he c u rre nt str u ct ur e of t he C o n gress 

f or deali n g wit h tra ns p o rtati o n is terri bl y di st o rte d. T h ere is n o wa y 

t h at I k n o w of f or a c o nsi der ati o n of differ e nt as p ect s of t ra n s p ortati o n 

bei n g ha n dle d at t he sa m e ti me wit hi n t he C o n gres s t o d a y. S o me s ort 

of mec ha nis m s h o ul d be de vel o pe d.

Se c o n d : I w o ul d s u g gest t o t he c o m mittee t he re be a tra ns p o rtati o n 

i m pa ct st at e m e nt w he n p u blic res o ur ces or re g ulat or y le gislati o n of 

s o me maj or c o nte nt is bei n g s u b mitte d.

T hir d : I w o ul d ur ge t h at c ost be nefit st u die s w hic h l o o k i n ter m s of 

t he tra n s p ortati o n s yst e m be de vel o pe d pri or t o e n acti n g ne w pr o gra m s 

i n w h ate ver fiel d of tra ns p o rtati o n.

T h a n k y o u, Mr. C h air ma n.

Se nat or G r a v e l . T h a n k y o u, Mr. B o y d. I ha v e, i n t he i ntere st of 

ti me, n o q uesti o ns. I t hi n k we will ha v e a n o p p ort u nit y t o see y o u a gai n, 

pr o b a bl y o n l oc k a n d da m 26.

Mr. B o y d . Yes, sir, I ha v e s o me i nt ere st o n t h at.

Se nat or G r a v e l . I s ha re y o ur vie w wit h res pect t o t he nee d f or 

a n o verall pla n. I will t ur n it o ver t o m y c ollea g ue, Se nat or D o me nici, 

w h o has s o me de gree of s y m p at h y f or y o ur ca use.

Se nat or D o m e ni ci . I he ar d y o u r testi m o n y bef or e t he B u d g et 

C o m mittee. I d o n’t k n o w if y o u were here w he n I cite d s o me of y o ur 

ge ne ral fi g ures i n ter m s of mai nte na n ce deficits t h at e xist ri g ht n o w. 

l o u t ol d us s o me w here bet w ee n $8 a n d $10 billi o n is t he bac kl o g 

t h at t he railr oa ds n o w ha v e, j u st t o re p air t he rail r oa d be ds w hic h 

are t he e q ui vale nt of t he i nla n d wat er w a ys t h at are g ratis at t his p oi nt.

I d o n’t wa nt t o g o i nt o a n y detail, b ut per ha ps y o u c o ul d gi ve me a 

fi g ure u n d er a n ass u me d set of facts. If y o u ca n’t t o d a y, w o ul d y o u 

s u b mit it later? Use 100 miles a n d a n y i ncr e m e nt s be y o n d 200, 300,
971

400 , w hic he ver y o u w o ul d li ke, a n d gi v e u s w hat it w o ul d c ost base d o n 

t o da y’s railr oa d rate s, t o m o ve a t o n of c oal fr o m its p oi nt of ori gi n t o 

t he desti nati o n. We will ass u m e t h at it is m o vi n g fr o m its pr o d ucti o n 

s o urce t o a utilizati o n s o urce. I w o ul d li ke t o ha v e t he c o m pari s o n of 

h o w m u c h it is g oi n g t o c ost f or t h ose t h at nee d t o d o t h at, vers us 

t h ose t h at are g oi n g t o m o ve it rel ati v el y free i n t he c ha n nels t h at 

we ha v e de vel o pe d.

Mr. B o y d . I ca n n ot d o t h at t o d a y. I will de vel o p t h at f or y o u, 

Se n at or. I w o ul d li ke t o p oi nt o ut o ne t hi n g i n t hi s c o n n ecti o n. T h ere 

has bee n a l ot of c o n ver sati o n a b o ut e ner g y efficie nc y. A n d t he rail ­

r oa d s, I t hi n k, d o n ot q ue sti o n t he f act t h at t her e is a rel ati ve efficie nc y 

i n bar ge s. T he de gree ca n be q ue sti o ne d, b ut I w o ul d p oi nt o ut t o y o u 

t here are r o u g hl y 2 2 5, 0 0 0 miles of railr oa d i n t hi s c o u ntr y, a n d less 

t h a n 2 6, 0 0 0 miles of na vi g a bl e wat er w a ys. T h ere a re ma n y cities w hic h 

are ser ve d b y bar g e w here t he r o ute is e xtre m el y circ uit o us, a n d t he 

“ B T U ” efficie nc y, w he n y o u l o o k fr o m p oi nt t o p oi nt, bec o m es va stl y 

diff ere nt t ha n w he n l o o ki n g at a n a b str act fi g ure of h o w m uc h d oes 

it c ost t o m o ve 1 t o n 1 mile.

Se nat or D o m e ni ci . Yo u are tal ki n g a b o ut “ B T U ” efficie nc y i n ter m s 

of ca usi n g t he m o bilit y of m o vi n g it?

Mr. B o y d . Yes. I w o ul d als o p oi nt o ut t here is ver y little grai n 

gr o w n o n t he ri v er b a n k. W h e n y o u a d d t he c ost of m o vi n g grai n, 

steel, c he micals, c oal, b y tr u c k, t o t he bar g es a n d fr o m t he bar g es, 

t he efficie nc y of t he m o ve m e nt w hic h is w h at we are ulti m atel y i nter ­

este d i n bec o m es m uc h less t h a n a n yt hi n g t h at y o u ca n c h ara cterize 

b y wa y of rail o pe rati o ns.

Se nat or D o m e ni ci . I ha v e n o f urt h er q ue sti o ns, Mr. C h air ma n. 

We ha v e a q u or u m li g ht. I t hi n k i n t he i nt ere st of c o m pl yi n g wit h 

o ur b o d y ’s decisi o n, we o u g ht t o e x pe dite it. S o I ha v e n o m ore 

q ue sti o ns.

[ Mr. B o y d ’s st at e m e nt a n d a l etter fr o m t he Arc her D a niels Mi dla n d 

C o. f oll o w:]

5 4 - 2 3 9 O - 7 5 - S 2
9 7 2

Testi m o n y of

Ala n S. B oy d

Pr esi d e nt a n d C hief E xe c uti ve O ffic er, Illi n ois Ce ntr al G ulf Railr o a d 

Bef or e t he Se n ate P u bli c Wor ks C o m mittee,

S u bc o n mitte e o n Na vi g ati o n, O v ersi g ht Heari n gs 

o n t he I nl a n d Na vi gati o n S yste m,

Was hi n gt o n, D. C., J u ne 2 0, 1 97 5

I a p pr eciate t h e o p p o rt u nit y t o te sti f y at t h es e o v er si g ht 

he ari n gs. When y o u a n n o u nce d t he he ari n gs, Mr. C hair ma n, y o u sai d y o u 

h o pe d t h e pr o d uct w o ul d be i nf or m ati o n nee de d b y t he S u bc o m mittee t o 

make pr u de nt j u d ge me nt s a b o ut t h e f ut u re of t he i nla n d na vi gati o n 

pr o gra m of t he C or ps of E n gi neers a n d t he re lati o n s h i p of t h at pr o gra m 

t o o ur n ati o n's tr a n s p ort ati o n s yst e m. Y ou p oi nt e d o ut t h at t he de ma n ds 

of m o de m s o ci et y re q uir e s uc h a re vie w. I c o ul d n ot a gr ee wit h y o u 

m ore a n d I a p pla u d y o ur i n it ia ti v e.

My p ur p ose i n te sti f y i n g be f ore y o u t o da y is t o e m p hasize 

t h at t h e de cisi o ns made i n re ga r d t o i nl a n d na vi gati o n pr o je cts of t he 

C or ps ha ve a tre me n d o us i m pact o n t h is n ati o n's tr a n s p ort ati o n s yste m.

It is c o m n o n place f o r wit n es se s o n tr a n s p ortati o n s u bj ects t o te sti f y 

as t o t h e nee d f o r a n o v er all tr a n s p ortati o n p olic y t h at pr o vi de s a 

fra me w or k wit hi n w hic h o ur ma ny di ve rs e p o li ci es a n d pr o gra ms i n t he 

tr a n s p ort ati o n ar ea ca n be c o or di n ate d. We d o n ot yet ha ve s uc h a 

p olic y - at le a st t o t he e xte nt t h at we ca n be s ure t h at o ur tr a n s p orta ti o n pr o gra ms ac hie v e w hat we wa nt t he m t o ac hie v e at t he le a st p o ssi ble 

c o st. T hese he ari n g s pr o vi de a n o p p o rt u nit y t o dra w fr o m o ur e x p eri e nc e 

i n o ne ar ea of tr a n s p or tati o n i n ve st me nt - t he i nl a n d water wa y pr o gra m - 

a n d t o tr a c e its i m pact o n t he o v er all s yste m. I will tr y t o e x pl ai n
9 7 3

2 -

my c o nc er n t h at i nl a n d na vi gati o n i n vest me nt pr o gra ms pr o vi de dir ec t 

a n d i n dir e ct s u bsi die s t o bar ge tr a n s p ort ati o n t h at i m pact a d versel y 

o n ot he r tr a n s p ort ati o n m odes a n d t h eir us er s a n d t h at t h is a d v erse 

i m pact is a c o st t h at s h o ul d be, b ut has n ot bee n, c o n si d ere d i n 

e v al uati n g t h e pr o gra m.

We te n d t o pa y li p se r vic e t o t he c o n ce pt of a n o v er all 

tr a n s p ort ati o n p olic y b ut d o ver y littl e a b o ut it. W hile y o u are 

c o n d ucti n g he ari n g s o n t he i nla n d water wa y pr o gra m, y o ur c olle a g ue s i n 

t h e C o m merce Cc m nittee ar e st r u g g li n g wit h t he gr o wi n g r ail c ris is 

t h is c o u ntr y fa ce s wit h se ve ral maj or ra il r o a d s i n ba n kr u ptc y a n d 

ot he rs i n mar gi n al fi n a n cial c o n diti o n. T he pr o ble ms ar e c o u si d ere d 

se pa ratel y b ut ar e i n te rr ela te d. Ste p he n Ail es, t h e Pr esi d e nt of t he 

A ss ociati o n of A merica n R ailr o a d s, dra ws t he c o n necti o n i n t h is fas hi o n:

" T he ra il r o a d s' pr es e nt fi n a n ci al c o n diti o n is t he 

re s ult of a l o n g pe ri o d of l o w a n d i na de q uate ea r ni n gs, 

att ri b uta ble t o t h eir i n a bilit y t o mai nt ai n a de q uate 

ra te le ve ls i n c o m p etiti o n wit h ot he r m odes o p er ati n g 

o n p u blicl y pr o vi d e d ri g hts of wa y, as w ell as t h e 

c o nse q ue nces of re g ulati o ns i n a pe ri o d of p ers iste nt 

a n d ac ce le rati n g i n fl ati o n."

An i m p orta nt ele m e nt of t he s u bsi dize d c o m p etiti o n Mr. Ailes 

re fe rr e d t o is t he bar ge tr a n s p ort ati o n s yste m. T he ra il r o a d s' fi n a n ci al 

c o n diti o n is n o l o n ger a m atter of c o ncer n o nl y t o t he i n d u st r y's 

i n m e diate c o nstit ue nc y. T he i na de q uat e ear ni n g s t he i n d u str y e x perie nc es
9 7 4

- -

are t hr eat e ni n g t he c o nti n u ati o n of t he s yste m a n d re q uiri n g i nc rea si n g 

a mo unts of p u blic f u n ds t o mai ntai n ser vice.

Acc or di n g t o o ne esti m ate, t he C or ps of E n gi neers has s pe nt 

$ 5. 7 billi o n o n t he water wa y s yste m use d b y bar ges - wit h n o of fs etti n g 

use r c har g es. We esti m ate t h at p u blic s u b si dies t o t he bar ge o pe rat o rs 

who use t he i nla n d water wa y na vi gati o n s yste m t otall e d m ore t ha n 

$ 40 0 milli o n i n 1 9 73, e xcl u di n g ca pital c o sts. $ 31 5 milli o n of t his 

a mo unt was s pe nt b y t he C orps of E n gi neers si m pl y t o i m pr o ve a n d m ai ntai n 

e xisti n g na vi gati o n s yste ms o n t he i nla n d water wa ys. T he c o m mercial 

user s pai d n ot hi n g f or t he use of t he s yste m. F urt h er, si nc e o ver 9 0 

perc e nt of bar ge tr a ff ic is u nre g ulate d, t he be ne ficiarie s i ncl u d e 

pri m aril y lar g e fir ms a ble t o c o n d uct t h eir o wn te wi n g o perati o ns or 

c o ntr act ca rrie rs wh o ha ve n o c o m mon c arrie r o bli g ati o n s as t o rate s or 

ser vic e t o t he ge neral s hi p pi n g p u bli c. T hus t he C or ps of E n gi neers 

i nla n d water wa y na vi gati o n pr oje cts ha ve pr o vi de d di re ct s u bsi d y t o t h ose 

who use bar ge tra ns p o rtati o n.

T hese e x pe n dit u res ca use a n a d verse i m pact o n tra ns p o rtati o n 

b y di v erti n g tr a ffic fr o m ot h er mo des - pa rtic ul arl y t he railr oa ds - a n d 

b y a rt if ic ia ll y dist o rti n g t he railr o a d s' rate str u ct ur e. T he A AR 

esti mat es t h at s u b si dies t o bar ge ca rrie rs c o st t he railr oa d i n d ustr y 

a p pr o xi matel y $ 50 0 milli o n a n n uall y i n l o st re ve n ue s. T his di v ersi o n 

er o des t he railr o a d s' re ve n ue bas e, f orci n g hi g her rate s f or s hi p pers 

a n d c o m mu nities u na ble f or ge o gra p hic reas o ns or beca use of t he c ha racter 

is ti c s of t h ei r c o m m odities t o s hi p b y b ar ge. Red uce d re ve n ues ge ne rate 

pre ss ures f or c o ntra cti o n s i n ra il ser vic e or, i n t he alte r n ati v e, p u blic 

st b si d y.
9 7 5

B ut o ur c o ncer n is n ot li mite d t o t he a d vers e i m pact of past 

C orps of E n gi neer pr o gra ms. T he C orps is c u rre ntl y pla n ni n g ma ny fa r 

m ore e x pe nsi ve e nlar ge me nts i n t he bar ge na vi gati o n s yste m t h at w o ul d 

e ve n m ore seri o usl y i m pact railr o a d re ve n ues. T his eff ort is e xe m plifie d 

b y t he e x pa nsi o n t he C or ps is pla n ni n g f or t he bar ge wa y o n t he U pper 

Mi ssi ssi p pi ri v er s yste m. T he pla n be gi ns wit h t he re place me nt of t he 

pre se nt s yste m of 6 0 0-f o ot l oc ks o n t he da m me d p orti o ns of t he Illi n ois 

a n d Mi ssi ssi p pi Ri vers wit h 1, 2 0 0 f o ot l oc k s. T his c ha n ge w ill e na ble 

l o n ger t o ws a n d m ore t o ws t o na vi gat e t he s yste m. A pa rall el di me nsi o nal 

c ha n ge t h at is bei n g desi g ne d is l o weri n g t he sill de pt hs of t he ne w 

l oc ks fr o m a pre se nt le v el of 1 2 fe et t o 15 fe et belc w t he l o w water 

ele vati o n. T his dee pe ni n g w o ul d per mit l oa di n g t o a dr aft of 1 1- 1/ 2 fe et 

i nstea d of t he c ur re nt 8- 1/ 2 fe et. T he s yste m w o ul d c ost i n e xcess of 

$ 2. 5 billi o n, acc or di n g t o t he C or ps. With ot he r p o ssi ble c o m p o ne nts, 

i ncl u di n g ne w l oc ks a n d da ms i n s o me l o cati o ns, t he c o st c o ul d ea sil y 

r u n t o $ 10 billi o n. T his s yste m is at t he he art of t he c urre nt dis p ute 

o ver L oc ks a n d Da m 2 6 at Alt o n, Illi n ois. T hese st r u ct ur al c ha n ges, b y 

re d uci n g bar ge o p erati n g c o st s, will per mit bar ges t o di ve rt c urre nt 

a n d p ot e ntial tr a ffic fr o m railr oa ds a n d will f orc e d o wn re ve n ues o n 

tr a ff ic w hic h railr oa ds w o uld c o nti n u e t o carr y. S uc h er o si o n of ra il 

re ve n ues w o ul d gr eatl y i ncrea se t he s u bsi d y- pr o d uce d da mage a n d w o ul d 

ha ve seri o u s c o nse q ue nces f o r o ur alre a d y t hr eat e ne d ra il s yste ms.

O ur o wn esti m ate s o n t he I C G, o nl y o ne of t he r ail s yste ms 

af fe ct e d, are t h at t he C or ps' e x pa nsi o n of t he U p per Mi ssi ssi p pi s yste m 

a n d t he re s ult a nt s u b si di ze d re d u cti o n i n bar ge c o sts will di ve rt
9 7 6

- -

a p pr o xi matel y $ 67 milli o n per year fr o m t he I C G's c urre nt tr a ff ic base 

of $ 53 6 milli o n. Si milar re ve n ue di ve rsi o ns are a ntici p at e d b y ot h er 

mi d weste m railr oa ds.

T his l os s i n re ve n ue is fr o m l o n g- h a ul b ul k tr a ff ic w hic h 

pre se ntl y pa ys a si g n ific a nt s hare of t he rail r o a d's c ri ti c al o ver hea d 

e x pe nse s, es pe ci all y tra c k a n d e q ui p me nt mai nte na nce. Gi ve n t he pre se nt 

nati o nal c o ncer n o ver t he p h y sical c o n diti o n of t he nati o n's ra il pl a nt, 

it makes littl e se nse t o sti m ulat e f u rt h er dete ri or ati o n of t he rail 

pla nt b y s u b si dizi n g di v ersi o n of ra il o ver hea d re ve n ue s.

Bey on d t he h u ge l os ses t o t he e xisti n g ra il tr a ff ic bas e, t he 

C or ps has pr ojecte d t h at i n t he f ut ur e, t he e x pa nsi o n of t he U pper 

Mi ssis si p pi water wa y s yste m will di ve rt a p pr o xi m atel y 1 40 milli o n t o ns 

per year of f ut ure tr a ff ic w hich w oul d ot her wise mo ve b y r ail. Usi n g 

C or ps esti m ate s, we calc ul at e t h at t his di v ersi o n of f ut ur e ra il tr a ff ic 

w o uld a vera ge $ 70 0 milli o n per year (at c ur re nt rate s) i n a d diti o n t o 

re ve n ue l oss fr o m di v ersi o n of c urre nt tr a ff ic . Muc h of t his $ 70 0 milli o n 

w o ul d be a v ail a ble f o r meeti n g t he o ver hea d c o sts of r u n ni n g a ra il 

s yste m.

Des pite t he se h u ge l os ses i n es se ntial ra il re ve n u es, pr o p o ne nts 

of t he U p per M ississi p pi e x pa nsi o n ar g ue t h at s u bsi di zati o n of bar ge 

rate s a n d c o nse q ue nt di v ersi o n of ra il re ve n ues re pres e nt a n i m pr o ve me nt 

i n tra ns p o rt efficie nc y. T hey f urt h er c o nte n d t h at t h er e is ple nt y of 

tr a ffic de ma nd f or all m odes. To me, s uc h ar g u ments de m o nstrate a lac k 

of u n dersta n di n g of ba sic tra ns p o rtati o n ec o n o mics, i ncl u di n g t he gra ve 

fi n a n ci al pr o ble ms faci n g t he e ntire tra ns p o rtati o n i n d ust r y.

To j u stif y t he m ulti billi o n d olla r i n vest me nt pr o gr.i m pr o p ose d, 

pr o p o ne nts of t he water wa y e x pa nsi o n m ust de m o nstr ate t h at be nefit s
9 7 7

- 6 

e xcee d t he c osts of t he pr oj ect. I ncl u de d wit hi n t he c o sts of t he pr o gra m 

s h o ul d be t he c osts ass ociat e d wit h f u rt h er er o si o n of t he ra il tr a ff ic

base.

T hese c osts i ncl u de

-- hi g her c har ges f o r ra il de pe n de nt s hi p per s wh o beca use 

of t y pe of c o m n odit y or ge o gra p hic l oc ati o n ca n n ot use t he water way.

As t he ra il re ve n ue base s h ri n ks, t hes e s hi p per s will ne ce ssa ril y ha ve 

t o pa y a gr eater pr o p orti o n of t he o ver hea d c o sts of r ail ser vice.

-- t he re d ucti o n i n ser vic e t o ra il de pe n de nt c o m m u nities.

As t he ra il re ve n ue base g oes d o w n, t he mo ne y f o r nee de d e x pe nses m ust 

be f o u n d s o me w here. If t he mo ne y is n't a v aila bl e, ser vice c ut s m ust 

be ma de t o bri n g e x pe n dit ures i n li n e wit h re d uce d re ve n ue.

-- a d verse i m pacts o n r ail e m pl o yees, t h eir fa m ilie s a n d 

t he l oc al e nter p ris es t h at ser v e t he m, as well as o n t he t h o usa n ds of 

c o m mu nities w hic h nee d fi n a n ci all y healt h y railr oa ds as a s o urce of 

ta x re ve n ue s.

-- a d verse i m pact o n A mtra k, w hose pass e n ger ser vice ca n n ot 

pr o s per i n m ost of t he c o u ntr y e xce pt as a b y pr o d uct of healt h y, wellmai ntai ne d railr oa ds ha uli n g fr ei g h t.

N or d oes t he ar g u me nt t h at t he re will be e n ou g h tr a ff ic f or 

e ver y o ne ma ke ec o no mic se ns e. On t he c o ntr ar y, o ne of t he maj or pr o ble ms 

faci n g t he nati o n’ s tra ns p o rtati o n s yste m t o da y - p arti c u la rl y i n t he 

r ail se ct or - is e xcess li n e ha ul ca p acit y a n d u n de r utiliz ati o n of t h at 

ca pa cit y. S h o ul d n't we c o n si de r w het her it makes b ett er ec o n o mic se nse 

f o r t he nati o n t o ma ke m ore ef fe cti v e use of o ur pre se nt tr a n s p ortati o n 

s yste m rat h er t ha n a d d e ve n m ore e xcess ca p acit y t o a n alr ea d y weake ned

s yste m.
9 7 8

Ra il ca pa cit y st u d ie s s ho w t h at m ost, if n ot a ll, of t he C or ps 

pr oj ecte d t o n na ge c o ul d be ca rrie d b y t he e x isti n g rail r o a d s i n t he ar ea 

wit h o ut si g nific a nt a d diti o ns t o fi x e d pl a n t ca pa cit y. M ore o ver, I C G 

st u d ie s i n di ca te t h at t he C or ps' e nti re pr oj ecte d t o n n a ge i n cr ea se 

c o ul d be ca rrie d o n t h e I C G al o ne f o r a fi xe d pl a nt ca pa cit y e x pe n dit u re 

of le ss t ha n $ 2 00 milli o n. C o m pare t h is $ 2 00 milli o n wit h t h e billi o n s 

re q uire d f o r t he C or ps' pr o p os al.

T he pr o p ose d e x p a nsi o n of t he U p per Mis si ssi p pi water wa y s yste m 

ha s, I ha ve tr ie d t o s h o w, tre me n d o us ec o n o mic i m plic ati o ns. I n my 

j u d ge me nt, t h es e i m plic ati o ns ha ve bee n i n a d e q uatel y c o nsi de re d b y 

pr o p o n e nts of t he e x p a nsi o n. We ca n n ot af f o r d t o make maj or de cisi o ns 

wit h o ut c o nsi de ri n g t h es e i m plic ati o ns.

W hile t h is s u b c o n mittee is re vi e wi n g i nla n d water wa y na vi gati o n 

pr o gr a ms, ot he r c o n mittee s ar e c o nsi de ri n g le gis la ti o n de ali n g wit h 

re la te d pa rt s of t he tr a n s p ort ati o n s yste m - i ncl u di n g t he gr o wi n g r ail 

c ri si s. T he pr o p os als bei n g c o n si d ere d will be c o stl y. T he acti o ns 

t h is c o n mittee ta k es wit h re s p ect t o i nl a n d na vi gati o n will ha ve a 

tre me n d o us i m pact o n t h e nat u re a n d si ze of ot he r tr a n s p ort ati o n pr o gr a ms. 

M ost of t he al te r n ati v e s C o n gress is pr es e n tl y c o nsi d eri n g as re me dies 

t o t he ra il c ris is ar e s p e cific all y desi g ne d t o o ff se t t he a d v erse 

i m pact of pa st g o ver n me nt s u bsi die s a n d re g ulat or y r e str ai n ts. T he 

c o n ne cti o n m ust be cle arl y u n d erst o o d b y t h is c o n mitt ee. S h o ul d s u bsi die s 

t o bar ge us er s be c o nti n ue d a n d e x pa n de d, t he re s u lti n g eli mi n ati o n of 

r a il se r vic e or s u bsi diz e d c o nti n uati o n of t h at se r vic e will be c o rr es ­

p o n di n gl y gr ea te r.
9 7 9

- 8 -

I d o n o t m e a n t o i m p l y t h a t t h e d e v e l o p m e n t a n d i m p l e m e n t a t i o n 

o f a s o u n d s y s t e m d e c i s i o n - m a k i n g p r o c e s s i s e a s y . I t i s n o t . T r a n s ­

p o r t a t i o n h a s t o c o m p e t e w i t h o t h e r p o t e n t i a l u s e r s o f f u n d s a n d 

r e s o u r c e s . E s t a b l i s h i n g p r i o r i t i e s i s d i f f i c u l t . I t i s c l e a r , h o w e v e r , 

t h a t t h e p r e s s u r e i s t o g e t t h e m o s t f o r t h e t r a n s p o r t a t i o n d o l l a r s p e n t . 

E c o n o m i s t s r e l y o n t h e p r i c e s y s t e m a s a m e a n s o f e f f i c i e n t l y a l l o c a t i n g 

r e s o u r c e s . W e h a v e d e t e r m i n e d , h o w e v e r , t h a t i n t r a n s p o r t a t i o n w e c a n n o t 

r e l y s o l e l y o n p r i v a t e m a r k e t s a s a n a l l o c a t i n g d e v i c e . W e h a v e e l e c t e d 

t o m o d i f y t h a t s y s t e m w i t h r e g u l a t i o n , w i t h s u b s i d y , a n d i n s o m e i n s t a n c e : 

w i t h p u b l i c o w n e r s h i p . T h e r e i s c o n s i d e r a b l e i n t e r e s t n o w i n l e s s e n i n g 

e c o n o m i c r e g u l a t i o n . E c o n o m i s t s h a v e p o i n t e d o u t t h a t r e g u l a t i o n h a s 

d i s t o r t e d r a t e s t o t h e p o i n t t h a t t h e y b e a r l i t t l e r e l a t i o n s h i p t o c o s t s . 

T h e a d m i n i s t r a t i o n a n d t h e I C C h a v e p r o p o s e d , f o r i n s t a n c e , g i v i n g r a i l ­

r o a d s g r e a t e r f r e e d o m t o e s t a b l i s h r a t e s r e s p o n s i v e t o m a r k e t c o n d i t i o n s . 

B u t l e s s e n i n g r e g u l a t i o n w i l l n o t b y i t s e l f e l i m i n a t e t h e r e s o u r c e d i s ­

t o r t i o n s a s s o c i a t e d w i t h p u b l i c p o l i c i e s . C o n g r e s s m u s t t h e n d e a l w i t h 

t h e q u e s t i o n o f d i f f e r e n t i a l s u b s i d i e s . T h e e s t a b l i s h m e n t o f u s e r 

c h a r g e s w h i c h f u l l y r e f l e c t c o s t s i s o n e w a y o f d o i n g t h i s . P r e s u m a b l y , 

t h e i m p o s i t i o n o f u s e r c h a r g e s w o u l d r e s u l t i n r a t e s r e f l e c t i v e o f f u l l 

e c o n o m i c c o s t s . S h o u l d , h o w e v e r , C o n g r e s s r e a c h t h e e x p l i c i t d e c i s i o n 

t o c o n t i n u e s u b s i d i e s , s o m e m e c h a n i s m o t h e r t h a n t h e m a r k e t p l a c e n e e d s 

t o b e e s t a b l i s h e d t o g o v e r n t h e a l l o c a t i o n o f s e r v i c e s . C o n g r e s s h a s t o 

d e c i d e t h e b e s t w a y t o s p e n d t h e r e s o u r c e s a v a i l a b l e .

H a s t h e C o n g r e s s r e a c h e d t h e d e c i s i o n t h a t i t i s d e s i r a b l e 

p u b l i c p o l i c y t o s p e n d b i l l i o n s o n i n l a n d w a t e r w a y n a v i g a t i o n p r o j e c t s 

w i t h c o n s e q u e n t d e s t r u c t i v e i m p a c t o n t h e r a i l s y s t e m a n d r a i l s h i p p e r s ?
9 8 0

9 -

H a s C o n g r e s s a l s o d e c i d e d t h a t i t i s i n t h e p u b l i c i n t e r e s t t o p e r m i t 

t h i s d e c l i n e o f t h e r a i l s y s t e m o r t o a u t h o r i z e t h e f u n d s n e e d e d t o 

k e e p t h e r a i l r o a d s y s t e m f r o m s h r i n k i n g a n d f i n a l l y c o l l a p s i n g ?

I t h i n k y o u w i l l a g r e e w i t h m e t h a t C o n g r e s s h a s n o t m a d e t h e s e 

j u d g e m e n t s .

I h a v e t h r e e r e c o m m e n d a t i o n s . F i r s t , i t s e e m s t o m e w e s h o u l d 

b e g i n t o r e q u i r e f u l l t r a n s p o r t a t i o n i m p a c t s t a t e m e n t s i n a l l p r o p o s e d 

r e g u l a t o r y a n d p u b l i c i n v e s t m e n t p r o j e c t s s o t h a t C o n g r e s s c a n t r a c e t h e 

f u l l w e i g h t o f s o c i a l a n d e c o n o m i c i m p a c t s t h a t w i l l r e s u l t . S e c o n d , 

t h e s t r u c t u r e o f C o n g r e s s d i s t o r t s t h e p r o c e s s . T h e c o n s i d e r a t i o n o f 

t r a n s p o r t a t i o n b y m a n y a n d v a r i o u s c o n m i t t e e s d i s t o r t s t h e p r o c e s s , 

p a r t i c u l a r l y i n t h e a b s e n c e o f a f u n c t i o n a l l y r e l e v a n t n a t i o n a l p o l i c y .

W e n e e d a t a m i n i m u m a C o n g r e s s i o n a l s t r u c t u r e t h a t w i l l i n s u r e t h e f u l l 

c o n s i d e r a t i o n o f a l t e r n a t i v e s .

T h i r d l y , b e f o r e a d e c i s i o n i s r e a c h e d t o e n l a r g e t h e c a p a c i t y 

o f L o c k s a n d D a m 2 6 a n d o f t h e U p p e r M i s s i s s i p p i c h a n n e l , I u r g e t h e 

C o m m i t t e e t o w e i g h a l l t h e t y p e s o f e v i d e n c e s u g g e s t e d i n t h i s t e s t i m o n y .

I a m c o n v i n c e d t h a t t h i s r e v i e w w i l l l e a d t o t h e d e c i s i o n n o t t o u n d e r ­

t a k e d e e p e n i n g a n d l e n g t h e n i n g o f t h e U p p e r M i s s i s s i p p i l o c k s y s t e m .

T h e p u b l i c i n t e r e s t r e q u i r e s a c o h e s i v e , r a t i o n a l d e b a t e o n 

t r a n s p o r t a t i o n a l t e r n a t i v e s b a s e d o n c r i t e r i a s u c h a s e f f i c i e n c y , s e r v i c e , 

s a f e t y , t h e e n v i r o n m e n t , e n e r g y , l a n d u s e , i n f l a t i o n a n d e m p l o y m e n t .

T h e s e a r e c r i t e r i a y o u r C o m m i t t e e m u s t r e q u i r e b e c o n s i d e r e d i n w a t e r w a y 

p r o j e c t s . I t i s m y j u d g e m e n t t h a t t h e y a r e n o t n o w b e i n g c o n s i d e r e d a n d 

t h a t t h e s e o v e r s i g h t h e a r i n g s a r e r e q u i r e d b e c a u s e t h e y a r e n o t .

T h a n k y o u .
9 8 1

C • = ’ C A M E L S M. O L A N O C O M P A N Y B O X 1 4 7 0 O E C A T U R. I L LI N OI S B 2 5 2 5 T E L: JI 7 / 4 2 4 - S 3 7 9

J O H N E. H A R V E Y

3' Ai S T O R 3 7

C O R P O R A T E T R A 77I C

J u n e 2 7, 1 97 5

H o n or a bl e Mi k e Gr a v el

3 3 1 i

Dir k s e n S e n at e Offi c e B uil di n g 

W a s hi n gt o n, D. C. 2 0 51 0 

D e ar S e n at or Gr a v el:

R E: O v er si g ht H e ari n g s o n Ar m y C or p s, of 

E n gi n e er s' N a vi g ati o n Pr o gr a m b ef or e 

S u b c o m mitt e e o n W at er R e s o ur c e s, C o m mitt e e 

o n P u bli c W or k s, U nit e d St at e s S e n at e

On J u n e 2 0t h, I h ad t h e o p p o rt u nit y t o sit i n o n c ert ai n t e sti m o n y pr e s e nt e d 

b ef o r e y o u r S u b c o m mitt e e r e g ar di n g w at er r e s o ur c e s, p ri m aril y t h e L o c k a nd 

Oa m 2 6 i s s u e. It i s my u n d e r st a n di n g t h at y o ur S u b c o m mitt ee w ill a c c e pt 

w ritt e n st at e m e nt s i n li e u of or i n a d diti o n t o or al t e sti m o n y. A c c o r di n gl y,

I w o ul d li k e t o e x pr e s s t h e vi e w s of a s hi p p er- c o n s u m er wh o l o o k s t o i m pr o ve m e nt 

i n r. ot o nl y w at er tr a n s p ort ati o n, b ut a ll tr a n s p ort ati o n.

Ir o ni c all y, o n J u n e 1 9t h, I wa s o n e of ma ny s hi p p e r p arti ci p a nt s i n v ol v e d i n 

a n i nf o r m al c o nf er e n c e b ef o r e a D OT St u d y Gr ou p di s c u s si n g t h e s e s a me i s s u e s.

T hi s D OT St u d y Gr ou p wa s f or m e d at t h e r e q u e st of S e n at or M a gn u so n, a cti n g a s 

C h air m an of t h e S e n at e Co m merc e C o m mitt e e. I h a v e att a c h e d a b a si c P o siti o n 

St at e m e nt w hi c h r el at e s t o t h e a c ti viti e s of t h e D OT St u d y Gr o u p, i n w hi c h I h av e 

ma de s p e cifi c a nd j u s ti fi a bl e r ef er e n c e t o t e sti m o n y pr e s e nt e d b ef or e y o ur 

S u b c o m mitt e e b y Al a n B o y d, Pr e si d e nt of t h e Illi n o i s C e ntr al G ulf R ailr o a d.

A D M i s a m aj or u s er of t h e I nl a n d W ater w a y S y st e m, p ri m aril y f o r t h e m ov e me nt 

cf gr ai n s, s o yb e an s a nd pr o d u ct s t h er e o f. We h a ve i n v e st e d milli o n s of d oll a r s 

i n bri c k a nd m ort ar t o h a n dl e a nd pr o c e s s f ar m pr o d u ce d gr ai n s a nd oil s e e d s, b ot h 

l a n dl o c k e d a nd w at e rfr o nt, a nd r e l y h e a vil y u p on t h e w at er b or n e m ov e m ent t o o ur 

f a c ilit i e s , a s w ell a s fr o m o ur f a ciliti e s t o m aj or d o m e sti c a nd w orl d m ar k et s. 

Wit h f e w e x c e pti o n s, L o c k a nd Da m 2 6 m u st b e tr a v er s e d.

Co m me nci ng i n t h e e a rl y 6 0' s, o ur m an ag e m ent f or e s a w t h e w orl d d e ma nd f o r U. 3. 

pr o d u c ed a nd pr o c e s s e d f ar m g o o d s. We h ad t w o l ar g e s o y b e a n pr o c e s si n g pl a nt s
9 8 2

S e n at or Hi k e Gr a v el 

P ag e 2

J u ne 2 7, 1 97 5

at D e c at ur, Illi n o i s , w h er e we ar e no w h e a d q u art er e d, a nd e nt er e d i nt o a cti v e 

n e g oti ati o n wit h t h e t h e n Illi n o i s C e ntr al R ailr o a d f o r r e a s o n a bl e v ol u m e 

e x p ort r at e s fr o m D e c at ur t o t h e L o ui si a n a G ulf P o rt s. C e rt ai n v ol u me s o yb e an 

me al e x p ort r at e s fr o m all Mi d w e st er n pr o c e s s or s w ere p u bli s h e d a nd d e si g n e d 

t o att r a ct e x p ort t o n n a g e b y r a il.

Co m me nci n g i n 1 9 6 7, t h e U. S. R ailr o a d s b eg an I n cr e a si n g, a cr o s s t h e b o ar d, all 

r at e s a nd c h ar g e s. L ittl e , i f a n y, att e n ti o n w a s gi v e n t o r ailr o a d pl a n t s, 

t h e i m pro v e me nt a nd m ai nt e n a n c e of w hi c h i s t h e o r e ti c all y c o st e d a nd b uilt i nt o 

t h e r at e st r u ct ur e. W hil e t h e Mi d w e st er n R ailr o a d s i n cr e a s e d t h eir r at e s, wit h 

n o i m pro v e me nt i n t h eir pl a nt s, t h e w at er c arri e r s d e v ot e d milli o n s of d oll a r s 

i n t e c h n ol o g y a nd i m pr o v ed c ar g o c arr yi n g e q ui p m e nt pl u s m oti v e p o w er. We 

c o nti n u e d t o i m pr e s s u po n t h e r ailr o a d s t h e a b s ol ut e n e ed f o r i m pr o v ed pr o d u cti vit y 

a nd s e r vi c e, at r e a s o n a bl y c o st e d r at e s w hi c h w o ul d p er mit p r ofit s f o r a ll.

I n t h e i nt e ri m, w orl d d e ma nd f o r U. S. cr o p s i m pr o v e d. D uri n g t h e i nt e ri m , A D M 

p m d e ntl y di v e rt e d c o n si d er a bl e t o n n a ge fr o m r ail t o m ot or a nd w at er, n ot o nl y 

t o r e d u c e o ur c o st s, b ut a s i m p o rt a ntl y, t o g et o ur pr o d u ct s t o m ar k et wit h 

s o me d e gr e e of r e li a b ilit y .

C o m me nci n g i n 1 9 7 0, A D M l e a s e d f a ciliti e s at Alt o n, Illi n o i s , t o p er mit r ail 

m ov e me nt fr o m D e c at ur t o Alt o n, t h e n c e tr a n sf er t o b ar g e f o r w at er d eli v er y 

t o t h e Ne w Orl e a n s ar e a f o r tr a n sf er t o v e s s el f o r e x p o rt. Si n c e t h at ti m e, 

o v er 50 % of o ur D e c at ur pr o d u cti o n r e a c h e s Alt o n b y r ail f o r w at e r mo ve me nt 

b e y o n d. O ur pr o d u cti o n at D e c at ur r e s ult s fr o m t h e pr o c e s si n g of o v er 6 0 Milli o n 

b u s h el s of s o yb e a ns a n n u all y. We b eli e v e we h a ve b ee n m or e t h a n r e a s o n a bl e wit h t h e 

Mi d w e st er n c arri e r s i n off eri n g t h e m t h e ma xi mu m r e v e n u e p o s si bl e. No w, b e c au s e 

of t h eir i n e pt n e s s i n att u ni n g t h e m s el v e s t o s hi p p e r d e ma nd s a nd n e e d s, c o u pl e d 

wit h t h eir l a c k of f o r e si g ht i n n ot m ai nt ai ni n g t h eir pl a n t s, t h e s e r ailr o a d s 

d e sir e t o pr e v e nt i m pr o ve m e nt i n t h e mu ch n e ed e d w at er w a y s, or i n t h e alt e r n ati v e, 

bri n g t h e c o st s of w at er tr a n s p ort ati o n u p t o t h eir o wn s o, i n eff e ct, t o l e gi sl a t e 

c o m p etiti o n.

We ur g e y o ur m o st c o n si d er e d r e vi e w of t h e f oll o wi n g:

R ailr o a d r at e s a nd c h ar g e s ar e d e si g n e d t o b e c o st e d t o off s et all m ai nt e n a n c e, 

r e p air, i n t e r e st, e q ui p m e nt, et c ., pl u s p r o fit , t o t h e e nd t h at i f pr o p erl y c o st e d, 

a n e ffi c i e n t c a rri e r b ec o me s m or e effi c i e n t.

I n J u n e, 1 9 7 5, t h e I n t e r st at e Co m mer ce C o m mi ssi o n a ut h ori z e d t h e U. S. R ailr o a d s 

t o i n cr e a s e all r at e s a nd c h ar g e s b y 10 % ( E x P art e N o. 3 0 5 ), d e si g n e d t o bri n g 

i nt o t h e c arri e r s a n a d diti o n al $ 1. 5 Billi o n p er y e ar. By I C C Or d er, 70 % of t hi s 

a dd ed r e v e n u e c o ul d o nl y b e d e v ot e d t o off s et d ef err e d m ai nt e n a n c e a nd c a pit al 

e x p e n dit ur e s, or a b o ut $1 Billi o n p er y e a r. T hi s i n cr e a s e w a s t o b e i n eff e ct 

f o r o n e y e ar, or u ntil J u ne 3 0, 1 9 75. T he I C C h as n o w e xt e n d e d t h e lif e of t h e
9 8 3

S e n at or Mi k e Gr a v el 

P ag e 3

J u n e 2 7, 1 97 5

i n cr e a s e u ntil A pril 3 0, 1 9 7 6, at w hi c h ti m e I w o ul d gi v e o d ds i t w ill b e 

f u rt h e r e xt e n d e d. As of J u n e 2 0, 1 9 7 5, t h e c a rri e r s h ad c oll e ct e d o v er 

$1 3illi o n i n a d diti o n al r e v e n u e s a s a r e s ult of t hi s i n cr e a s e, y e t b y 

t e sti m o n y t o t h e I C C, h a ve d e v ot e d l e s s t h a n $ 80 Milli o n t o d ef err e d m ai nt e n a n c e.

T a ki n g t h e I C G (Illi n o i s C e ntr al G ulf) a s a n e x a m pl e, b e c au s e t h e y cl ai m wit h 

$ 2 00 Milli o n t h e y c a n h a ul a ll t h e pr oj e ct e d i n cr e a s e d t o n n a g e o ff t h e ri v e r, 

t h e f oll o wi n g r e s ult s: L o c k a nd Da m 2 6 i s c o nt e m pl at e d t o t a k e 1 0 y e ar s t o 

r e c o n str u ct at 1 97 4 d oll a r c o st s of $ 6 0 0 Milli o n. I n t h at 1 0 y e ar p e ri o d, 

t h e I C G w ill h av e c oll e ct e d o v er $ 4 0 0 Milli o n i n a d diti o n al r e v e n u e s al o n e fr o m 

t h i s X- 3 0 5 7 2 i n cr e a s e, b a se d o n d e pr e s s e d 1 97 5 t o n n a g e. C o n si d er t h at i n 

a d diti o n t o t h o s e r e v e n u e s, t h e C o m mi ssi o n a ut h ori z e d a n a d diti o n al 7 2 i n cr e a s e 

i n all r ailr o a d r at e s a nd c h ar g e s A p ril 2 7, 1 9 7 5, pl u s a f u rt h e r 5 2 o n J u ne 2 0, 

1 9 7 5. C o n si d er, f u rt h e r, t h at t h e I C C, u n d er Ex P art e Pr o c e e di n g N o. 3 1 4, 

i s n o w pr o p o si n g t o gr a nt t h e r ailr o a d s a 5 2 p er y e ar i n c r e a s e, n ot s u bj e ct t o 

s u s p e n si o n, w hi c h i n t hi s 1 0 y e ar p eri o d w ill c a u s e e xi sti n g r at e s a nd c h ar g e s 

t o b e i n cr e a s e d a f u rt h e r 5 0 2. T hi s i s i n a d diti o n t o a n y f u el c o st i n cr e a s e s 

a nd l a b or i n cr e a s e s w hi c h w ill b e h a n dl e d s e p a r at el y.

T h er e i s a b s ol ut el y n o d o u bt t h at L o c k a nd Da m 2 6 n e ed s m or e t h a n r e p air. We 

pr a y t o God t h at s uffi ci e nt f o r e si g ht w ill b e e mpl o ye d t o p er mit a j o b t o b e 

d o n e t h at w ill off e r t h e m o st e ffi c i e n t s y st e m c a p a bl e. T h er e i s n o g e tti n g 

ar o u n d t h e f a ct t h at t h e pr oj e ct e d $ 4 00 Milli o n a d diti o n al r e v e n u e f o r t h e I C G 

w ill r efl e ct it s elf i n t h e m ar k et a nd r e d u c e t h e s p e n di n g a b ilit y of t h e 

c o n su m er t o t h e s a me e xt e nt a s i f $ 6 00 Milli o n w er e t a k e n i n t h e f or m of t a x e s 

fr o m gr o s s i n c o me s. If we t a k e t h e t o t al a d diti o n al r e v e n u e s r e s ulti n g fr o m 

t hi s 7 % i n cr e a s e a c cr ui n g t o t h e 21 W e st er n c a rri e r s li ti g a ti n g t h e L o ck a nd 

Da m 2 6 i s s u e, it a mo u nt s t o $ 65 7 M illi o n a y e ar, b as ed o n d e pr e s s e d 1 97 5 r ailr o a d 

r e v e n u e s r e s ulti n g fr o m a g e n er al b u si n e s s d e cli n e. If t h i s s a me 7 2 r e m ai n s 

i n eff e ct t hr o u g h 1 9 8 5, a s we e x p e ct i t t o , t hi s a mo u nt s t o $ 6. 5 Billi o n f o r t h e 

21 c a rri e r s liti g a ti n g L o ck a n d Da m 2 6, d e si g n e d t o off s et o nl y d ef err e d 

m ai nt e n a n c e.

We m o st r e s p e ctf ull y ur g e y o u r S u b c o m mitt e e t o c o n si d er t h e a ct u al d a y t o d a y 

sit u ati o n, t h e n e ed s of t h e s hi p pi n g a nd c o n su mi ng p u bli c , a nd t h e f ut u r e of 

t hi s n a ti o n. L o c k a nd Da m m u st n ot b e d e ni gr at e d b e c au s e of s p e ci al i nt e r e st s.

J E H: c g 

E n el.

Y o urs tr ul y ,
9 8 4

1 2 O N T H S E N DI N G 3/ 3 1/ 7 5

( 0 0 0 ) D OL L A R S

N ET I N C O M E O P E R A TI N G A V E N U E S X. 0 7

A T S F 5 4, 9 1 8 1, 0 5 3, 8 1 1 7 3, 7 6 7

B N 5 7, 7 8 2 1, 2 9 0, 1 1 0 9 0, 3 0 8

C EI 9, 1 9 3 5 3, 8 7 6 3, 7 7 1

C N W ( 1 2, 6 3 1) 4 7 9, 8 0 6 3 3 , 5 8 6

MI L W 4, 4 5 4 3 8 6, 7 9 8 2 7, 0 7 6

C RI P ( 3 2, 6 8 4) 3 6 1, 2 2 5 2 5 , 2 8 6

D R G W 2 0, 0 2 6 1 4 2, 4 1 3 9, 9 6 9

E J E 1 1, 0 3 0 1 0 0, 5 7 1 7, 0 4 0

GB W ( 6 0 3) 1 0, 0 2 4 7 0 1

I C G 1 9, 4 7 1 5 7 3, 1 2 3 4 0, 1 1 8

K C S 3, 8 6 6 1 3 2, 2 2 3 9, 2 5 5

MP 4 8 , 3 7 0 6 3 8, 1 5 9 4 4, 6 7 1

M K T ( 2, 8 6 1) 9 1, 9 8 6 6, 4 3 9

N W 9 3, 2 4 1 9 9 0, 2 4 3 6 9, 3 1 7

S L S F 1 3, 8 5 6 2 7 9, 9 8 7 1 9, 5 9 9

S S W 2 7, 8 9 7 1 8 0, 9 0 4 1 2, 6 6 3

S O O 1 1, 7 1 3 1 7 3, 6 8 0 1 2, 1 5 7

S P 4 7, 5 4 2 1, 2 9 7, 6 8 7 9 0, 8 3 8

T P - 7, 4 7 6 1 5 0, 0 4 5 1 0, 5 0 3

T P W 5 11 1 4, 8 6 0 1, 0 4 0

U P 8 9 , 3 0 0 9 7 7, 9 3 0 6 8, 4 5 5

T OT AL S 4 6 2, 9 5 9 9, 3 7 9, 4 6 1 6 5 6, 5 5 9

S O U R C E: I N T E R S T A T E C O M M E R C E C O M MI S SI O N

C L A S S I LI N E- H A U L R AI L R O A D S S EL E C T E D E A R NI N G S D A T A
9 8 5

Se n at o r Gr a v e l . T h a n k y o u ver y m uc h.

O ur ne xt wit n ess is Mr. Le o K oe ster, ma na g er, P u blic C o m m u nicati o ns, Sea b oar d C o ast Li ne I n d ust rie s, L o ui s ville, K y.

S T A T E M E N T O F L E O K O E S T E R, M A N A G E R, P U B LI C C O M M U NI C ATI O N S, S E A B O A R D C O A S T LI N E I N D U S T RI E S, L O UI S VI L L E, K Y.

Mr. K o e s t e r . G o o d m or ni n g ge ntle m e n. T h a n k y o u f or t hi s 

pri vil e ge. M y na m e is Le o K oe ster. I a m ma na g er of p u blic c o mm u nic ati o ns f or Sea b oar d C o ast Li ne I n d ust rie s, I nc. M y h o m e a n d 

office is i n L o uis ville, K y. Sea b oar d C o ast Li n e I n d u stries o p erates a 

n u m b er of railr oa d s, t he pri n ci pal o nes bei n g t he Sea b oar d C o ast 

Li ne Railr o a d, t he L o uis ville & X’as h ville Railr o a d, t he Ge or gia a n d 

t he Cli nc hfiel d Railr o a ds. T he se o pe rati o ns are i n 1 3 States i n t he 

S o ut h a n d S o ut he ast.

I c o me t o t his c o m mittee as a n a d v ocate of w ate r w a y user c har ge s. 

I belie ve t h at t he str e n gt h of l o gic is o n m y si de. I belie ve t h at w ate rwa y user c har g es are f u n d a m e ntal t o a fair nati o nal tra ns p o rtati o n 

p olic y. I ha ve fait h i n t he deter mi nati o n of t his C o n g ress t o gi ve t he 

tra ns p o rtati o n i n d ustr y t he hel p it s o ba dl y nee d s.

C o m mer cial water w a y users are c o m p etit ors t o t h e railr o a d i n d ustr y, 

a n d I m ust t her ef ore acc e pt t he b ur de n of bei n g calle d a prej u d ce d 

wit n ess. H o w e ver, if m y a d v oca c y of water wa y user c har ges ma k es 

me prej u dice d, t he n als o si milarl y i m p aire d were t he e n d ors e m e nt s 

of Pre si d e nt s R o o se velt, Tr u m a n, Eise n h o wer, Ke n ne d y, J o h ns o n, 

Ni x o n, a n d F or d. Ea c h a n d e ve r y o ne of t he m has sai d t o t he C o n-

*ess: “ Gi ve me water wa y user c har ge le gislati o n, a n d I will si g n it.”

resi de nt F or d has s u b mitte d t o t his C o n gr ess a bill t o i m p ose water ­

wa y us er c h ar ges. A d v o cac y of t his iss u e t he n ca n h ar dl y be i nt er p ret e d 

as t he s olitar y petiti o n of t he rail r oa d i n d ust r y.

If I s h o ul d feel sec ure i n e x pre ssi n g a p oi nt of vie w t h at has bee n 

hel d b y n o less t h a n se ve n Pre si d e nt s, I a m ma de certai n of t he 

ri g ht n ess of m y ca use b y t he re p ort of a C o m missi o n a p p oi nte d 

a n d f u n de d b y C o n gr ess. I refe r t o t he Nati o nal W at er C o m missi o n 

a n d its w or k d uri n g t he peri o d fr o m 1 9 6 8 t o 1 9 7 3. T h e C o m missi o n 

was t h or o u g h a n d it was pr ofe ssi o n al i n its a p p r oa c h. It liste ne d t o 

t he railr o a ds a n d it list e ne d t o t he b ar ge o per at ors. It s p e nt $ 5 milli o n 

getti n g t he facts. A m o n g ot her t hi n gs it t ol d t he C o n gres s: I m p ose 

water wa y user c har g es.

Se nat or G r a v e l . We ha ve a pr o ble m beca use we are i n vi olati o n of 

t he r ules ri g ht n o w. I wa nt t o acc o m m o dat e y o u. C o ul d y o u s u m marize 

y o ur state m e nt? It will be p u t i n t he rec or d as rea d.

Mr. K o e s t e r . I feel t he C o n g ress, t he Se n ate, t he H o u se, s h o ul d 

gi ve caref ul e xa mi n ati o n t o t he re p ort of t he Nati o nal W ate r C o mmissi o n, beca use it is o b vi o us its rec o m m e n d ati o ns, acc o m pli s he d 

wit h $ 5 milli o n a n d 5 yea rs of st u d y, were n ot o ne easil y c o me b y. 

As t his c o m mitte e v er y well k n o ws, o ne of t he i m p o rta nt rec o m me n d ati o n s of t he Nati o nal Water C o m missi o n was t he i m p ositi o n of w ate rwa y user c har ge s. I belie ve w h at is sai d at t he ver y e n d of t hi s st at eme nt, if I ca n fi n d it here q ui c kl y, is t he str o n ge st ar g u m e nt. It is 

t h at t hi s c o m mittee a n d t he C o n g ress m u st ha v e s o me mea s uri n g 

stic k t o e val uate wat er w a ys pr o p ose d a n d pla n ne d, b y t he C or ps of 

E n gi neers. It m u st ha v e a me as u ri n g stic k m ore rati o n al t h a n t he 

e m oti o n al a p p eals ma d e b y res pecti ve l ocal c o m m u niti es. M a n y of
98

t hem are o n t he basis a c o m m u nit y will e nj o y a n u nli mit e d i n d ustrial 

gr o wt h if s o me billi o n- d ollar wat er w a y pr oject is ac hie ve d. As y o u 

k n o w, t he Nati o n al W ate r C o m mi ssi o n ma d e t his state m e nt:

Si nc e m uc h of t h e pr ess ure f or f e d er all y fi n a nc e d n a vi g ati o n pr oj ects is g e n er at e d 

b y pri v a t e i nt er est gr o u ps w h o b e n efit fr o m f e d er all y pr o vi d e d f aciliti es, a n 

a d e q u at e us er c h ar g e w o ul d r e d uc e pr ess ur es f or u n ec o n o mic pr oj ects.

I t hi n k t h at state m e nt, i n a ver y fe w w or ds, gi ves t he str o n ge st, 

m o st a p p eali n g ki n d of a n ar g u m e nt f or t hi s C o n gress t o ta k e t he 

first ste p t o a s o u n d nati o n al tra ns p o rtati o n p olic y b y i m p o si n g 

water wa y user c har ges.

T hat, ge ntle me n, I t hi n k is t he gist of m y state m e nt. I belie ve i n 

water w a y user c har ge s. I t hi n k t h at t he rail r oa d i n d u str y ca n c o n ­

tri b ute a gre at deal t o t he c o nti n u e d pr o gre ss of t his c o u ntr y if it is 

gi ve n a n h o n est o p p o rt u nit y t o c o m p ete wit h c o m petit or s w h o ha ve 

si milar b ur de n s as far as ri g ht- of- wa y c osts are c o nc er ne d.

Se nat or G r a v e l . T h a n k y o u v er y m uc h. I ha v e n o q uesti o ns.

Se nat or D o m e ni ci . J u st a q ue sti o n o n y o ur e n u me rati o n of Presi ­

de nts w h o ha ve as ke d f or t his. I a m a ware of le gi slati o n s u b mitte d 

last yea r. Are y o u s u g g esti n g t h at eac h of t h os e Pre si d e nt s, sta rti n g 

wit h Fr a n kli n D. R o o se velt o n d o w n, as a m atte r of fact t he y were 

ver y s pecific, or were t he y s pe a ki n g i n ge ner al ter ms ?

Mr. K o e s t e r . T h e y e n d o rse d t he c o nc e pt. I d o n’t k n o w w h et h er 

le gi slati o n was i m p os e d or pr o p o se d; I d o n’t k n o w.

Se nat or D o m e ni ci . I ha v e n o f urt he r q uesti o ns.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

[ Mr. K o est er’s state m e nt a n d a s u bse q ue nt lette r f oll o w:]
9 8 7

S T A T E M E N T O F

E. L E O K O E S T E R

M a n a g er, P u b li c C o m m u nic ati o n s 

S E A B O A R D C O A S T LI N E I N D U S T RI E S

t o t h e

U . S . S e n ate S u b c o m m itte e o n

W ate r R e s o u r c e s

W a s hi n gt o n, D C, F ri d a y , J u n e 2 0, 1 9 7 5

5 4- 2 3 9 0 - 7 5 - 6 3
9 8 8

M y n a m e i s L e o K o e s t e r . I a m m a n a g e r o f p u b l i c c o m m u n i c a t i o n s 

f o r S e a b o a r d C o a s t L i n e I n d u s t r i e s , I n c . M y h o m e a n d o f f i c e 

i s i n L o u i s v i l l e , K e n t u c k y . S e a b o a r d C o a s t L i n e I n d u s t r i e s 

o p e r a t e s a n u m b e r o f r a i l r o a d s , t h e p r i n c i p a l o n e s b e i n g t h e 

S e a b o a r d C o a s t L i n e R a i l r o a d , t h e L o u i s v i l l e & N a s h v i l l e 

R a i l r o a d , t h e G e o r g i a a n d t h e C l i n c h f i e l d R a i l r o a d s . T h e s e 

o p e r a t i o n s a r e i n t h i r t e e n s t a t e s i n t h e S o u t h a n d S o u t h e a s t .

I c o m e t o t h i s c o m m i t t e e a s a n a d v o c a t e o f w a t e r w a y u s e r 

c h a r g e s . I b e l i e v e t h a t t h e s t r e n g t h o f l o g i c i s o n m y s i d e .

I b e l i e v e t h a t w a t e r w a y u s e r c h a r g e s a r e f u n d a m e n t a l t o a 

f a i r n a t i o n a l t r a n s p o r t a t i o n p o l i c y . I h a v e f a i t h i n t h e 

d e t e r m i n a t i o n o f t h i s C o n g r e s s t o g i v e t h e t r a n s p o r t a t i o n 

i n d u s t r y t h e h e l p i t s o b a d l y n e e d s .

C o m m e r c i a l w a t e r w a y u s e r s a r e c o m p e t i t o r s t o t h e r a i l r o a d 

i n d u s t r y -a nd I m u s t t h e r e f o r e a c c e p t t h e b u r d e n o f b e i n g 

c a l l e d a p r e j u d i c e d w i t n e s s . H o w e v e r , i f m y a d v o c a c y o f 

w a t e r w a y u s e r c h a r g e s m a k e s m e p r e j u d i c e d , t h e n a l s o 

s i m i l a r l y i m p a i r e d w e r e t h e e n d o r s e m e n t s o f P r e s i d e n t s 

R o o s e v e l t , T r u m a n , E i s e n h o w e r , K e n n e d y , J o h n s o n , N i x o n a n d 

F o r d . E a c h a n d e v e r y o n e o f t h e m h a s s a i d t o t h e C o n g r e s s - 

g i v e m e w a t e r w a y u s e r c h a r g e l e g i s l a t i o n a n d I w i l l s i g n i t. 

P r e s i d e n t F o r d h a s s u b m i t t e d t o t h i s C o n g r e s s a b i l l t o i m p o s e

w a t e r w a y u s e r c h a r g e s . A d v o c a c y o f t h i s i s s u e t h e n c a n
9 8 9

- 2 -

h a r d l y b e i n t e r p r e t e d a s t h e s o l i t a r y p e t i t i o n o f t h e r a i l r o a d 

i n d u s t r y .

I f I s h o u l d f e e l s e c u r e i n e x p r e s s i n g a p o i n t o f v i e w t h a t 

h a s b e e n h e l d b y n o l e s s t h a n s e v e n P r e s i d e n t s , I a m m a d e 

c e r t a i n o f t h e r i g h t n e s s o f m y c a u s e b y t h e r e p o r t o f a 

C o m m i s s i o n a p p o i n t e d a n d f u n d e d b y C o n g r e s s . I r e f e r t o t h e 

N a t i o n a l W a t e r C o m m i s s i o n a n d i t s w o r k d u r i n g t h e p e r i o d 

f r o m 1 9 6 8 t o 1 9 7 3 . T h e c o m m i s s i o n w a s t h o r o u g h a n d i t w a s 

p r o f e s s i o n a l i n i t s a p p r o a c h . I t l i s t e n e d t o t h e r a i l r o a d s 

a n d i t l i s t e n e d t o t h e b a r g e o p e r a t o r s . I t s p e n t $ 5 m i l l i o n 

d o l l a r s g e t t i n g t h e f a c t s . A m o n g o t h e r t h i n g s i t t o l d t h e 

C o n g r e s s - i m p o s e w a t e r w a y u s e r c h a r g e s .

A d d i n g t h e e n d o r s e m e n t o f t h e C o n g r e s s ' s o w n N a t i o n a l W a t e r 

C o m m i s s i o n t o t h o s e o f s e v e n P r e s i d e n t s , i n c l u d i n g t h e 

i n c u m b e n t , g i v e s a d d i t i o n a l s u b s t a n c e t o t h e p e t i t i o n I 

m a k e t o t h i s C o m m i t t e e . A n d i f m y p l e a s h o u l d r e q u i r e 

a n a d d i t i o n a l s a n c t i o n I o f f e r i t i n t n e o p i n i o n o f t h e 

W a t e r R e s o u r c e s C o u n c i l . T h e C o u n c i l i s a n a g e n c y o f t h e 

E x e c u t i v e b r a n c h a n d i s m a d e u p o f s i x m e m b e r s o f t h e 

C a b i n e t w i t h t h e S e c r e t a r y o f t h e I n t e r i o r a s c h a i r m a n .

A l o n g w i t h e v e r y P r e s i d e n t b e g i n n i n g w i t h R o o s e v e l t a n d 

t h e N a t i o n a l W a t e r C o m m i s s i o n , t h e C o u n c i l h a s e x p r e s s e d 

i t s e n d o r s e m e n t o f w a t e r w a y u s e r c h a r g e s .
9 9 0

- 3 -

N o w d o n o t p r o p o s e t o m a k e m y s t a t e m e n t t o t h i s c o m m i t t e e 

a n e x e r c i s e i n c i t i n g t e s t i m o n i a l s t o t h e p o i n t o f v i e w I 

h o l d - a s p l e a s e d a s I m i g h t b e t o h a v e t h e m . R a t h e r , m y 

p e t i t i o n s e e k s t o c o m m u n i c a t e t h e c o n c e r n o f e v e r y f a i r 

m i n d e d a n d i n f o r m e d c i t i z e n t h a t o u r n a t i o n a c h i e v e a n 

e q u i t a b l e n a t i o n a l t r a n s p o r t a t i o n p o l i c y . S u c h a p o l i c y 

m u s t i m p o s e u p o n t h e w a t e r w a y u s e r a m e a s u r e o f t h e b u r d e n 

t h a t t h e o t h e r s u r f a c e t r a n s p o r t a t i o n m o d e s m u s t e n d u r e - 

t h a t i s , p a y m e n t f o r t h e u s e a n d m a i n t e n a n c e o f t h e i r 

r e s p e c t i v e r i g h t s - o f - w a y .

N o w , t h e b r i e f f o r w a t e r w a y u s e r c h a r g e s i s a n y t h i n g b u t 

s h o r t . O v e r h a l f a c e n t u r y t h e y h a v e b e e n s u p p o r t e d , 

d e f e n d e d a n d p r o m u l g a t e d b y a h o s t o f e c o n o m i s t s , g o v e r n m e n t 

e x e c u t i v e s a n d t r a n s p o r t a t i o n a u t h o r i t i e s . E x c e p t f o r t h e 

c o m m e r c i a l w a t e r w a y i n t e r e s t s , o p p o n e n t s o f w a t e r w a y u s e r 

c h a r g e s h a v e b e e n f e w a n d f a r b e t w e e n . B u t d e s p i t e i t s 

m u l t i t u d e o f f r i e n d s a n d i t s s c a r c i t y o f o p p o n e n t s , t h e i s s u e 

h a s a c h i e v e d g r e a t e r p r o g r e s s d u r i n g t h e p a s t s e v e r a l m o n t h s 

t h a n i t d i d i n a l l o f t h e p r e v i o u s d e c a d e . I t i s m y 

f e r v e n t h o p e t h a t t h e c o n c e p t o f w a t e r w a y u s e r c h a r g e s h a s 

a d v a n c e d , a t l o n g l a s t , f r o m b e i n g a s u b j e c t i n a t r a n s p o r t a t i o n 

t h e s i s t o b e c o m i n g t h e l a w o f t h e l a n d .
9 9 1

T h i s C o n g r e s s i s n o t a l o n e i n h a v i n g w i t n e s s e d t h e i n s a t i a b l e 

a p p e t i t e t h e w a t e r w a y s i n t e r e s t s h a v e f o r p r o j e c t s t h a t w i l l 

p r o v i d e t h e b a r g e s w i t h m o r e f r e e r i g h t s - o f - w a y . I n c o o p e r a ­

t i o n w i t h t h e C o r p s o f E n g i n e e r s , t h e y h a v e s e e n t o i t t h a t 

n o c o m m u n i t y i s s o s m a l l , s o r e m o t e t h a t i t s h o u l d n o t l o o k 

u p o n i t s e l f a s a f u t u r e p o r t . W i t h h a l f a h u n d r e d e a r t h 

m o v e r s a n d s e v e r a l h u n d r e d m i l l i o n s i n t a x p a y e r f u n d s , a l m o s t 

a n y c r e e k c a n b e c o n v e r t e d i n t o a l a k e a n d t h e l a k e c a n 

s u p p l y t h e w a t e r t o m a k e a d r i e d u p r i v e r a w a t e r w a y . T h i n k 

b i g, t h e C o r p s s a y s , a n d i n p l a c e s y o u n e v e r h e a r d o f t h e 

c i v i c l e a d e r s h i p i s q u i c k t o a c c e p t t h e p r o m i s e s o f t h e 

e n g i n e e r s a s t h e i r t o w n ' s m i l l e n i u m .

T h e C o r p s m i g h t b e f a u l t e d f o r a v a r i e t y o f c a u s e s b u t 

m o d e s t y o f i m a g i n a t i o n i s n o t o n e o f t h e m . T h i s c o m m i t t e e 

i s f a m i l i a r w i t h t h e T e n n e s s e e T o m b i g b e e W a t e r w a y . T h i s 

b i l l i o n d o l l a r p r o j e c t w a s o r i g i n a l l y a u t h o r i z e d w i t h a 

p r o j e c t d e p t h o f n i n e f o o t . R e c e n t l y , I w a s a d v i s e d b y 

t h e M o b i l e D i s t r i c t E n g i n e e r , C o l . D r a k e W i l s o n , t h a t t h e 

T e n n T o m i s b e i n g p l a n n e d f o r a 1 2 f o o t p r o j e c t d e p t h .

T h e e n g i n e e r e x p l a i n e d t h a t t h i s w o u l d b e a c c o m p l i s h e d 

w i t h o u t a d d i t i o n a l c o s t - a s p l e n d i d e x a m p l e o f h o w i m a g i n a t i o n 

c a n b e t a i l o r e d t o n e c e s s i t y . I f t h e C o r p s c a n g o f r o m n i n e 

t o 1 2 f e e t w i t h o u t a d d i t i o n a l e x p e n s e , o n e i s j u s t i f i e d 

i n a s k i n g w h y n o t g o t o 1 5 o r e v e n 1 8 f e e t .
9 9 2

- 5 -

T h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t t o o k m e a s u r e o f 

t h e c o m b i n e d a m b i t i o n s o f t h e C o r p s a n d t h e w a t e r w a y s 

i n t e r e s t s . B y e a r l y 1 9 7 3 , t h e r e p o r t s a i d , C o n g r e s s 

h a d a u t h o r i z e d e x t e n d i n g t h e p r e s e n t w a t e r w a y s y s t e m 

b y a n a d d i t i o n a l 2 , 3 5 1 m i l e s a n d o t h e r w a t e r w a y s , n o t 

a u t h o r i z e d b u t s u p p o r t e d b y l o c a l c o m m u n i t i e s a n d 

s p e c i f i c r e g i o n s , w o u l d h a v e a n a g g r e g a t e l e n g t h o f a n 

a d d i t i o n a l 2 , 5 1 4 m i l e s . T h e m e m b e r s o f t h i s c o m m i t t e e 

k n o w t h a t t h o s e 4 , 8 6 5 m i l e s , i f e v e r a c c o m p l i s h e d , w i l l 

c o s t m i l l i o n s u p o n m i l l i o n s o f t a x p a y e r d o l l a r s a n d 

t h a t t h e c o m m e r c i a l u s e r s o f t h o s e w a t e r w a y s w o n ’ t p a y 

o n e f a r t h i n g f o r t h e u s e o f t h e m , f o r t h e m a i n t e n a n c e o f 

t h e m , f o r t h e d r e d g i n g o f t h e c h a n n e l s , f o r t h e p a t r o l 

s e r v i c e o f t h e C o a s t G u a r d . A l l o f i t - e v e r y d o l l a r 

o f t h e i n v e s t m e n t - w i l l b e a m a g n i f i c e n t g i f t t o t h e 

c o m m e r c i a l w a t e r w a y i n t e r e s t s .

T h e c o n t i n u i n g c i r c u m s t a n c e s t h e n a r e p a i n f u l l y a p p a r e n t . 

H u n d r e d s o f c o m m u n i t i e s a r e r e a d y , w i l l i n g a n d m o s t a b l e 

t o p r e v a i l u p o n C o n g r e s s t o a p p r o p r i a t e f u n d s f o r a 

w a t e r w a y t h e y b e l i e v e w i l l h a s t e n t h e c o m i n g o f a n e w d a y . 

I t w o u l d b e s a l u t a r y i f t h e w a t e r w a y e n t h u s i a s m o f t h e s e 

p e t i t i o n i n g c o m m u n i t i e s c o u l d b e b r o u g h t u p a g a i n s t a 

t a n g i b l e r e a l i t y . F o r t h e r e a r e a g o o d m a n y c i t i e s i n o u r 

n a t i o n w h i c h h a v e l o n g h a d t h e b e n e f i t o f w a t e r w a y
9 9 3

- 6 -

t r a n s p o r t a t i o n , a l l o f i t i m p r o v e d , m a i n t a i n e d a n d s e r v i c e d 

b y t h e t a x p a y e r s . T h e s e t o w n s a r e u p a n d d o w n t h e O h i o , 

t h e M i s s o u r i a n d t h e M i s s i s s i p p i a n d t h e y a r e s t i l l w a i t i n g 

f o r t h a t g r e a t u p s u r g e i n i n d u s t r i a l d e v e l o p m e n t t h a t w a s 

p r o m i s e d t o t h e m w h e n t h e C o r p s w a s p o u n d i n g o n t h e d o o r s o f 

C o n g r e s s f o r e n a b l i n g l e g i s l a t i o n . T h e r e a r e a l s o a g o o d 

m a n y c o m m u n i t i e s - l i k e A t l a n t a , I n d i a n a p o l i s , C o l u m b u s , O h i o 

a n d L e x i n g t o n , i n m y h o m e s t a t e o f K e n t u c k y , w h i c h h a v e 

a c h i e v e d a s t o n i s h i n g g r o w t h r e c o r d s - a n d n o t o n e o f t h e m 

i s a p o r t .

T h e r e i s l i t t l e n e e d t o a d v i s e t h i s c o m m i t t e e o f t h e

e n t h u s i a s m a n d d e t e r m i n a t i o n o f t h o s e w h o w o u l d h a v e t h i s 

C o n g r e s s a n d s u b s e q u e n t C o n g r e s s e s s p e n d b i l l i o n s u p o n 

p r o j e c t s l i k e t h e T r i n i t y R i v e r i n T e x a s , t h e W a b a s h R i v e r 

i n I n d i a n a o r t h e C o o s a R i v e r i n A l a b a m a . T h e q u e s t i o n m u s t 

b e a s k e d - i s t h e r e a m e a s u r i n g s t i c k w h i c h w o u l d p r o p e r l y 

e v a l u a t e t h e r e a l m e r i t o f t h e s e p r o p o s a l s ?

I b e l i e v e t h e r e i s a n d t h e s o l u t i o n i s w a t e r w a y u s e r 

c h a r g e s . I t i s a d i s c o m f o r t i n g f a c t o f l i f e t h a t t r u e 

v a l u e c a n n o t b e m e a s u r e d b y e m o t i o n a l c o n s i d e r a t i o n a l o n e .

T h e n a t i o n ’ s w a t e r w a y s , s o m e 2 5 , 0 0 0 m i l e s o f t h e m , a r e a n

i n v e s t m e n t o f a l l t a x p a y e r s b u t t h e p r o f i t a b l e u s e o f
9 9 4

- 7 -

t h e m i s t h e e x c l u s i v e p r o p e r t y o f t h e c o m m e r c i a l

o p e r a t o r s .

W i t h t h e e n a c t m e n t o f w a t e r w a y u s e r c h a r g e l e g i s l a t i o n , 

C o n g r e s s w o u l d h a v e t h e m e a s u r i n g s t i c k i t n e e d s . I t 

c a n t h e n d i r e c t a m o s t m e a n i n g f u l k i n d o f i n q u i r y t o 

t h e b e n e f i c i a r i e s o f w a t e r w a y p r o j e c t s - t h e o p e r a t o r s 

o f t h e b a r g e s . T h e q u e s t i o n i s s i m p l i c i t y i t s e l f - i f 

t h i s p r o j e c t i s t o c o s t - l e t ' s s a y $ 2 0 0 m i l l i o n - w h a t 

p a r t o f i t d o y o u p r o p o s e t o p a y i n u s e r c h a r g e s ? T h e 

C o n g r e s s c a n t h e n d e t e r m i n e i f t h e c o m m e r c i a l w a t e r w a y 

o p e r a t o r s a r e w i l l i n g t o p u t t h e i r p o c k e t b o o k s w h e r e 

t h e i r m o u t h s a r e .

A s t h e l a w s t a n d s n o w , t h e w a t e r w a y o p e r a t o r s s a y t o 

C o n g r e s s - w e n e e d n o t p a y o n e c e n t f o r t h a t $ 2 0 0 m i l l i o n 

r i g h t - o f - w a y . T h i s i s a g i f t w e h a v e a r i g h t t o e x p e c t , 

t h e y d e c l a r e , a n d k e e p i n m i n d t h a t o n c e t h e C o r p s h a s 

b u i l t t h e p r o j e c t t h e y e x p e c t g e n e r o u s a p p r o p r i a t i o n s t o 

m a i n t a i n a n d o p e r a t e i t.

L a s t y e a r , t h e U . S . M a r i t i m e C o m m i s s i o n - a n d t h e y c a n 

h a r d l y b e r e g a r d e d a s a w i t n e s s p r e j u d i c e d t o t h e r a i l r o a d 

i n d u s t r y - r e l e a s e d a r e p o r t p r e p a r e d f o r t h e m b y A . T . 

K e a r n e y , I n c . , a h i g h l y r e s p e c t e d m a n a g e m e n t c o n s u l t i n g
9 9 5

- 8 -

f i r m . T h e s u b j e c t w a s d o m e s t i c w a t e r b o r n e s h i p p i n g a n d 

t h e s e s e n t e n c e s f r o m t h e r e p o r t a r e s i g n i f i c a n t :

" R e t u r n o n e q u i t y f o r w a t e r c a r r i e r s i s 1 0 . 6 

p e r c e n t - a c l o s e s e c o n d t o m o t o r c a r r i e r s 

( 1 2 . 9 %) a n d f a r b e t t e r t h a n r a i l ( 2 . 7 % ) . . . .

I t i s c l e a r f r o m t h i s d i s c u s s i o n t h a t t h e 

i n l a n d w a t e r w a y c a r r i e r h a s a c o s t s t r u c t u r e 

v e r y s i m i l a r t o t h a t o f h i s r a i l c o m p e t i t o r 

w i t h o n e e x c e p t i o n : r a i l r o a d s a r e s a d d l e d 

w i t h f i x e d c h a r g e s f o r r i g h t - o f - w a y w h i l e 

t h e w a t e r c a r r i e r i s n o t . . . . "

C o n f r o n t e d w i t h t h e e n o r m i t y o f t h e b o n a n z a t h e y h a v e 

r e c e i v e d f r o m t h e n a t i o n ' s t a x p a y e r s , t h e w a t e r w a y 

o p e r a t o r s r e s p o n d b y p o i n t i n g o u t t h a t a l l o f t h e s e f r e e 

r i g h t s - o f - w a y h a v e h a d t h e e f f e c t o f r e d u c i n g t h e c o s t 

o f t r a n s p o r t a t i o n a n d t h e s e s a v i n g s a r e p a s s e d a l o n g 

t o t h e c o n s u m e r . T h i s i s s h e e r n o n s e n s e . A b i l l i o n d o l l a r s 

i n v e s t e d i n a n y k i n d o f t r a n s o o r t a t i o n w o u l d r e s u l t i n 

l o w e r r a t e s . D o g s l e d o p e r a t o r s i n t h e A r c t i c w o u l d s o o n 

f i n d t h e m s e l v e s f l i r t i n g w i t h i n s o l v e n c y i f t h e g o v e r n m e n t 

p r o v i d e d e n o r m o u s s u b s i d i e s t o t h e i r c o m p e t i t o r s - a n d 

I a s s u m e d o g s l e d s h a v e c o m p e t i t o r s .
9 9 6

T h e c i r c u m s t a n c e s i n w h i c h o u r n a t i o n n o w f i n d s 

i t s e l f - a d e f i c i t b e y o n d e n d u r a n c e , s e r i o u s 

u n e m p l o y m e n t , c r i p p l i n g i n f l a t i o n , t h e u n c e r t a i n 

e c o n o m i c s o f s o m e o f o u r a l l i e s - m a k e i t m a n d a t o r y 

w e a s k t h i s q u e s t i o n :

C a n w e a f f o r d t o b e w i t h o u t w a t e r w a y 

u s e r c h a r g e s ?

M y r e s p o n s e i s f i r m i n t h e n e g a t i v e . M u c h h a s b e e n s a i d 

a n d m u c h w i l l b e s a i d i n t h e m o n t h s a h e a d c o n c e r n i n g t h e 

n e c e s s i t y o f a n a t i o n a l t r a n s p o r t a t i o n p o l i c y . T o m y 

m i n d , t h e f o r m u l a t i o n o f s u c h a p o l i c y m u s t b e g i n b y 

m a k i n g c e r t a i n a l l o f t h e m o d e s c a r r y p r o p o r t i o n a t e b u r d e n s 

i n t h e m a t t e r o f r i g h t - o f - w a y c o s t .

E a r l i e r I r e f e r r e d t o t h e T e n n e s s e e T o m b i g b e e W a t e r w a y . I n 

m y o p i n i o n , i t i s a n a s t r o n o m i c w a s t e o f t a x p a y e r m o n e y - a 

b i l l i o n d o l l a r s o f i t . T h e p r o p o n e n t s s a y t h e T e n n T o m 

w i l l p r o v i d e a s l a c k w a t e r r o u t e w h i c h c a n b e u s e d t o 

r e t u r n e m p t y b a r g e s n o r t h t o t h e O h i o . T h e p r e v a i l i n g 

c u r r e n t i n t h e M i s s i s s i p p i g i v e s i t a G o d - g i v e n a d v a n t a g e 

f o r h a u l i n g l o a d e d b a r g e s s o u t h .
9 9 7

- 1 0 -

D o t h e c o m m e r c i a l b a r g e o p e r a t o r s o f f e r t o p a y o n e p e n n y 

o f t h e c o s t o f t h e T e n n T o m ? W o u l d t h e y b e w i l l i n g t o 

p a y j u s t t h e i n t e r e s t o n t h e b i l l i o n d o l l a r i n v e s t m e n t ?

A s t h e m e m b e r s o f t h i s c o m m i t t e e k n o w , t h e C o r p s d e v e l o p s 

c o s t - b e n e f i t r a t i o s t o e v a l u a t e p r o j e c t s . T h e c o s t o f 

m o n e y i s a f a c t o r i n t h e s e r a t i o s a n d i t i s a s o u r c e o f

a m a z e m e n t t o m e t h a t i n t h e c a s e o f t h e T e n n T o m t h e 

e n g i n e e r s w e r e a b l e t o u s e 3 1 / 4 p e r c e n t a s t h e c o s t o f 

m o n e y . I s n ' t i t r e a s o n a b l e , l o g i c a l a n d p e r t i n e n t t h e n 

f o r t h e C o n g r e s s t o g i v e t h i s m e s s a g e t o t h e T e n n T o m 

p r o p o n e n t s - w e ' l l u s e t a x p a y e r f u n d s t o b u i l d t h e b i g 

d i t c h b u t y o u p a y t h e a n n u a l 3 1 / 4 p e r c e n t i n t e r e s t a s a 

u s e r c h a r g e . T h a t w o u l d a m o u n t t o a b o u t $ 3 0 m i l l i o n a 

y e a r - a v e r y f r u g a l r e t u r n i n d e e d o n a b i l l i o n d o l l a r 

i n v e s t m e n t .

I r e t u r n t o m y q u e s t i o n - c a n w e a f f o r d t o b e w i t h o u t 

w a t e r w a y u s e r c h a r g e s ? I f t h e y d o n o m o r e t h a n f o r c e 

a n h o n e s t , e c o n o m i c a p p r a i s a l o f w a t e r w a y s a l r e a d y 

p r o p o s e d a n d t h o s e w h i c h w i l l m o s t c e r t a i n l y b e p r o p o s e d , 

u s e r c h a r g e l e g i s l a t i o n i s m a n d a t o r y .

C o m p e t i t i o n i s a s e s s e n t i a l t o e n t e r p r i s e a s t a x p a y e r 

m o n e y i s t o t h e C o r p s o f E n g i n e e r s . T h e r e i s n ' t a 

r a i l r o a d e n t e r p r i s e i n t h i s c o u n t r y w h i c h i s s o i r r e s o l u t e 

t h a t i t d o e s n ' t c o v e t t h e c u s t o m e r s o f i t s c o m p e t i t o r s -
9 9 8

- l i -

a n d t h a t i s a s i t s h o u l d b e . T h i s k i n d o f c o m p e t i t i o n 

i s w h o l e s o m e a n d i t p r o v i d e s b e t t e r s e r v i c e a t l o w e r 

c o s t . I t b e c o m e s a s h a m , h o w e v e r , w h e n a c o m p e t i t i v e 

m o d e - i n t h i s c a s e t h e w a t e r w a y c a r r i e r - r e c e i v e s t h e 

e x c l u s i v e r i g h t t o p r o f i t f r o m r i g h t s - o f - w a y b o u g h t b y 

t a x p a y e r f u n d s .

I c l o s e w i t h o n e s i g n i f i c a n t s e n t e n c e f r o m t h e r e p o r t o f 

t h e N a t i o n a l W a t e r C o m m i s s i o n : " S i n c e m u c h o f t h e 

p r e s s u r e f o r F e d e r a l l y f i n a n c e d n a v i g a t i o n p r o j e c t s i s 

g e n e r a t e d b y p r i v a t e i n t e r e s t g r o u p s w h o b e n e f i t f r o m 

F e d e r a l l y p r o v i d e d f a c i l i t i e s , a n a d e q u a t e u s e r c h a r g e 

w o u l d r e d u c e p r e s s u r e s f o r u n e c o n o m i c p r o j e c t s . "

P e r m i t m e t o r e m i n d t h e c o m m i t t e e t h a t t h a t s t a t e m e n t d o e s 

n o t c o m e f r o m t h e r a i l r o a d i n d u s t r y , f r o m t h e s p o k e s m e n f o r

t h e o v e r - t h e - r o a d h a u l e r s o r f r o m t h e e n v i r o n m e n t a l i s t s o r

t h e c o n s e r v a t i o n i s t s . I t c o m e s f r o m a c r e a t u r e o f t h e 

C o n g r e s s - a c o m m i s s i o n a p p o i n t e d a n d f u n d e d t o p e r f o r m a 

t a s k t h e C o n g r e s s r e g a r d e d a s i m p o r t a n t . I r e s p e c t f u l l y 

a s k t h a t y o u g i v e t h a t r e c o m m e n d a t i o n t h e c o n s i d e r a t i o n

i t d e s e r v e s .
9 9 9

£. L E O K O E S T E R

M a rtj 9 f of P u bli c C o m m u ni c ati o n s

P u bli c R el ati o n ? D n p o rt m o nt

T H E F A MI L Y LI N E S S Y S T E M

9 0 S W e s l Br o a d w a y

L o ui s vill e, K e nt u c k y 4 02 0 1

J u n e 2 4, 1 9 7 5

T he H o n ora ble Mi k e G ra v el 

U nite d Sta te s S e n at o r fr o m Ala s k a 

S e n at e O ffic e B uil di n g

W as hi n g t o n, D. C . 2 0 5 1 0

D e ar S e n at o r G ra v el:

I w a n t y o u a n d S e n at o r D o m e n ici t o k n o w I si n c e r el y a p p re cia te d t h e c o u rt e s y 

y o u e xte n d e d t o m e w h e n I te sti fie d b e f o re t h e w ate r r e s o u r c e s s u b c o m m itte e o n 

J u n e 2 0.

Ti m e di d n ot p e r m it m e t o m a k e a n o b s e r v ati o n w hi c h I f e el is w ort h y of 

y o u r c o n si d e ra ti o n. N o w u n d er c o n str u cti o n is t h e T e n n e ss e e T o m bi g b ee w ate rw a y. T h e C o r p s of E n gi n e ers e sti m ate it will c o st cl o s e t o a billi o n d oll a r s.

I n t h eir r e p o rt s t o C o n g re ss t h e y h a v e sa i d t h is w ate r w a y will h a v e n o fl o o d 

c o ntr ol b e n efit a n d it s r e c r e ati o n al a d v a nta g e s a r e m i n i m al. T he billi o n d oll a r s, 

t h e n, is b ei n g s p e nt b y t h e g o v er n m e nt t o p r o vi d e a fr e e ri g ht- o f- w a y f o r t h e 

b a r g e s.

At t h e ti m e t h e C o r p s p r o d u c e d a c o st- b e n e fit r ati o n e c e s s a r y t o q u alif y 

t h e T e n n T o m , t h e c o st of m o n e y w as fi g u re d at 3 - 1/ 4 p e r c e nt. W o u l d n't it 

be r e a s o n a ble f o r t h e C o n g re ss t o c o m m u nic ate t h is m e s s a g e t o t h e b a r g e o p e ra t o r;

We will s p e n d a billi o n d oll a r s i n ta x p a y e r m o n e y t o b uil d t h e T e n n 

T o m. H o w e v er, we will i m p o s e a u s e r c h ar g e o n t h e o p e ra ti o n of 

it. T his u s e r c h ar g e will a p p r o xi m ate $ 3 0 m illi o n a y e a r - w hi c h 

we ha ve c o m p u te d b y fi xi n g i n te r e st o n t h e t o ta l i n v e st m e nt at a r ate 

of 3 - 1/ 4 p e rc e nt.

If t h e T e n n T o m is all t h at it s p r o p o n e nts s a y it is , t h e n c e rta i n l y t his m o d es t 

u s e r c h a r g e i s e mi n e ntl y f air a n d ri dic ul o u sl y c h ea p. T h ere i s n o i n d u str y i n 

t h is n ati o n, tr a n s p o rta ti o n o r w h ate v er, w hi c h w o ul d n ot w el c o m e t h e o p p o rt u nit y t o l o a n m o n e y f o r c a pit al i n v e st m e nts at a r ate of 3 - 1/ 4 p e r c e nt. C a n 

t h e T e n n T o m be s o n e c e s s a r y, s o u r g e nt, s o c o m p elli n g t h at it m u st be b uilt - 

e v e n t h o u g h t h e c o m m e rc ia l w ate r w a y s o p e r at o r s a r e u n willi n g t o c o ntri b ute 

o n e ce nt i n u s e r c h a r g e s ? I t hi n k n ot.
1 0 0 0

A gai n, m y g ra tit u d e f o r y o ur willi n g n e ss t o h e a r m y b rie f f o r w ate r w a y 

u s e r c h a r g e s.

E. L e o K o e ste r

M a n a g er, P u bli c C o m m u nic ati o n s 

T he F a m il y Li n e s S y st e m

el k; m h

c c: S e n at o r P ete V. D o m e n ici
1 0 0

Se na t or G r a v e l . I B re nt Blac k wel d er h ere?

Mr. B l a c k w e l d e r . I c o ul d testif y ne xt wee k, if y o u prefe r.

Se nat or G r a v e l . We c o ul d gi ve y o u a fe w mi n ute s, a n d y o u c o ul d 

p ut y o ur stat e m e nt i n t he rec or d n o w, w hic he ver y o u prefer.

Mr. B l a c k w e l d e r . I ca n c o me bac k.

Se nat or G r a v e l . T h e n we ha v e M aitla n d S ha r pe.

Mr. S h a r p e . I ca n c o me b ac k ne xt wee k.

Se nat or G r a v e l . A n d t he n D o n al d Beattie ?

Mr. B e a t ti e . I ca n c o me bac k ne xt wee k.

Se nat or G r a v e l . We ha v e a pr o ble m ne xt wee k. If t hi s m atte r is 

n ot res ol ve d, t he Se n ate is g oi n g t o be s o m e w hat disc o or di n ate d. We 

reall y will n ot k n o w w h at we ca n or ca n n ot d o. We are g oi n g t o g o 

a he a d a n d sc he d ule o ur heari n g s as us ual, a d v a nc e t he m t o 9: 3 0, a n d 

tr y t o d o t he best we ca n u n der t he circ u msta nc es. Wit h y o u r i nd ul ge nce, we will get t hr o u g h o ur heari n gs. We feel t he y are i m p o rta nt. 

T h a n k y o u.

[ W here u p o n, at 1 0: 4 5 a. m., t he s u b c o m mittee recess e d, t o rec o nve ne 1 0 a. m., We d nes d a y, Oct o b er 8, 1 9 75.]

1 0 0 3

C O R P S O F E N GI N E E R S O V E R SI G H T H E A RI N G S — 1975

W E D N E S D A Y, O C T O B E R 8, 1 9 7 5

U. S. e n a t e

o m m i t t e e o n P u b li c W o r k s , 

u b c o m m i t t e e o n Wa t e r R e s o u r c e s

W as hi n gt o n, D. C.

T h e s u b c o m mitte e met a t 1: 3 6 p. m., p u rs ua nt t o call, i n r o o m 3 1 1 0, 

Dir kse n Se n ate Office B uil di n g, Se nat or Mi k e Gra vel (c h air m a n of 

t he s u b c o m mittee) presi di n g.

Pr ese nt: S e nat or s Gra vel, C ul ver, a n d D o m e nici.

O P E NI N G S T A T E M E N T O F H O N. MI K E G R A V E L, U. S. S E N A T O R F R O M 

T H E S T A T E O F A L A S K A

Se nat or r a v e l T h e he ari n g will c o me t o or d er.

G o o d after n o o n. T o da y t he S u bc o m mitte e o n W ate r Res o urce s 

c o n cl u d es a series of o ve rsi g ht hea ri n g s o n t he na vi g ati o n pr o gra m of 

t he U. S. Ar m y C o r ps of E n gi ne ers. T he se hea ri n g s b e ga n i n M a y wit h 

testi m o n y fr o m t he C or ps of E n gi nee rs o n t h e hist or y of t he na vi gati o n 

pr o gra m, its c urre nt stat u s, a n d a des cri pti o n of pr o ble m areas.

T h e i nitial hea ri n g was f oll o we d b y a 4- d a y i n v esti gati o n t o u r, 

d uri n g w hic h t he s u b c o m mitte e o verfle w a n d ma de o n- site i n s pe cti o ns 

of p orti o ns of t he i nla n d water wa y s yste m. A fiel d hea ri n g was hel d 

i n Vic ks b ur g, Miss., i n t he c o ur se of t h at i n v esti gati o n.

O n J u ne 2 0 a n d 2 1 a d diti o nal hea ri n g s were hel d i n Wa s hi n gt o n. 

Te sti m o n y was recei v e d fr o m ma n y Me m b ers of C o n g ress, p o rt 

i nt ere sts, water wa y c arrie rs, e n vir o n m e nt ali sts, rail r oa ds, t he dr e d gi n g 

i n d u str y, ec o n o mists, l ocal a n d St at e i nt ere sts, a n d ot he r i nt ere ste d 

parties.

T h e cl osi n g hea ri n g t o da y was ori gi nall y sc he d ul e d f or J u ne 2 3, 

b ut was p ost p o ne d d ue t o c o nflicti n g Se nate acti vitie s a n d t h e A u g ust 

recess.

Bef o re we be gi n I wa nt t o clarif y o ne t hi n g f or t he rec or d. I k n o w 

t h at a s u bject of g reat i ntere st t o ne arl y all t he wit ne sses t o d a v is t he 

pr o p ose d c o n str ucti o n of l oc ks a n d Da m 2 6 i n Alt o n, Ill. T h e s u b ­

c o m mitte e will be h ol di n g se pa rate hea ri n g s o n t his iss ue eit her lat e 

t hi s ye ar or ne xt ye ar. P u blic n otice will be gi ve n pri or t o s u c h heari n gs. 

T h e s u b c o m mitte e will ma ke e ve r y eff ort t o acc o m m o dat e all w h o 

wis h t o be he ar d o n t h at s u bject.

T h e p ur p os e of t hes e o ve rsi g ht hea ri n g s is t o assess t h e na vi g ati o n 

pr o gra m as it n o w sta n d s wit h a vie w t o p ossi ble p oli c y a n d pr o gra m 

c ha n ges. W hile t he met h o d of str uct ure re plac e m e nt is a le giti m ate 

c o nc er n i n t hes e heari n gs, i n di vi d u al pr ojects will n ot be a d dress e d.

5 4 - 2 3 9 O - T 5 - 4 4
100

T he rec o r d of t he heari n gs will re m ai n o pe n f or 2 wee ks, u ntil 

Oct o ber 22.

O ur first wit nes s t his after n o o n is Mr. Alfre d M. Esc h ba c h, as sista nt 

e xec uti v e dir ect or of t he P o rt of P o rtl a n d, Ore g. Sir. c o me f or w ar d 

a n d pr oce e d as y o u wis h. We m a y ha v e a n i nt er v e nti o n. We ma y ha v e 

t o g o t o t h e fl o or t o v ote. If s o, I will j u st recess t he hea ri n g a n d 

ret ur n.

S T A T E M E N T O F A L F R E D M. E S C H B A C H, A S SI S T A N T E X E C U TI V E 

DI R E C T O R, P O R T O F P O R T L A N D, P O R T L A N D, O R E G.

Mr. E s c h b a c h . Se n at or, m y na m e is Alfre d M. Es c h b ac h. I a m 

assist a nt e xec uti v e dire ct or of t h e P o rt of P o rtl a n d, P o rtl a n d, Ore g. 

I a m a p p eari n g bef or e t he c o m mittee t o d a y as a re p res e ntati v e of 

t h e P o rt of P o rtl a n d a n d its sister L o wer C ol u m bia Ri v er P o rts of 

Ast oria, St. Hele ns, L o n g vie w, a n d Va n c o u ver. I n a d diti o n, I re pr e ­

se nt t he Pacifi c N o rt h we st Water w a ys Ass o ciati o n a n d t h e A m eric a n 

Ass ociati o n of P o rt A ut h orities.

It is n ot n o w p ossi bl e t o m ore si m pl y st at e t h e basic p o siti o n of 

t hes e or g a niz ati o ns t h a n t o q u ote fr o m Ge n eral M or ris of t h e C or ps 

of E n gi neer s. His o pe ni n g re m ar ks at t h e Nati o nal Water C o nfere nc e 

were: “ T he U nite d St ate s deser v es t he best p ossi ble s yste m of water ­

wa ys a n d ha r b or s.”

We c o nte n d t h at t h e pre se nt s yste m of la ws a n d r ules est a blis he d 

as a n e xte nsi o n of t h e declarati o n s of t he C o nti ne ntal C o n gre ss a n d 

o ur F o u n di n g Fat h er s d uri n g t he f or m ati v e ye ars of t he Nati o n a n d 

c o nfir m e d b y t he c o u rts pr o vi de a n a d e q uate fra m e w or k f or ac hie vi n g 

t h at g oal. C ha n ge s i n pri nci ple t o ma k e t he pr o gra m m or e res p o n si v e 

t o t he de m a n d s of m o der n s ociet y are n ot nece ssar y. At t h e m o st, 

a dj ust m e nt i n i nter pr etati o n a n d pr o ce d ure of e xe c uti o n will s uffice.

C o m pari n g water w a ys wit h railr o a ds a n d hi g h wa ys si m pl y as 

arte ries of tra ns p o rtati o n is t o o narr o wl y sc o pe d t o pr o perl y j u d ge 

t heir tr u e r ole. Water wa ys are i nstr u me nts of ec o n o mic de v el o p m e nt. 

Hist ori call y t he y prec e de all ot h er f or ms of ec o n o mic gr o wt h. T his 

was easil y rec o g nize d d uri n g t he f or mati ve ye ars of o ur Nati o n. It is 

less o b vi o us t o da y, b ut ne ve rt heless e q u all y tr u e.

T h e catal y st f or ne w ec o n o mic gr o wt h or f or t he meta m or p hic 

a dj ust m e nt of e xisti n g de v el o p me nt t o ne w c o n diti o ns is al m ost 

al wa ys rel ate d t o t he ec o n o mic m o ve m e nt of lar g e v ol u mes of l o w 

u nit val u e car g o s uc h as ra w materi als, f uel, a n d fertilizer. W h ere 

a vaila bl e, water w a ys be st ser ve t his nee d. Fe d eral i n v est me nt i n 

wat er w a ys is a n i n v est me nt i n t he r o ot of o ur ec o n o mic str uct ur e.

D u ri n g t he last ce nt u r y w he n t he rail s were ser vi n g as t he pri m e 

art erie s of ec o n o mic de v el o p me nt of t he We st, t hi s was u n der st o o d 

a n d t heir c o ntri b uti o n was rec o g niz e d a n d sti m ulat e d b y 313 milli o n 

acres of la n d gr a nt. T his gr a nt pl us ta x be n efits a n d rec e nt gr a nts 

t otal a val u e e xcee di n g b y se ver al ti me s t h e c u m ulati ve c ost of t he 

N ati o n’s w ater wa y s.

Detra ct o rs fr o m pre se nt p olic y al m ost u ni ver sall y f oc us o n a rel a ­

ti vel y rec e nt c o ncei ve d pri n ci pl e ge n erall y refe rre d t o as user c har ges. 

Pr o p o n e nt s f or user c har ges s u p p ort t heir c o nte nti o n of t he nec essit y 

f or user c har ge a p plicati o n m ore as a disci pli n e o n t he de v el o p m e nt 

a n d use of t he N ati o n’s w ater wa ys t h a n as a n i n str u m e nt f or Fe der al 

re ve n ue.
10 05

A d e q u ate disci pli n ar y c o ntr ol e xists. T h e gr o wt h a n d de v el o p m e nt 

of i nla n d wat er w a ys a n d t heir ti d e w ate r har b ors a n d c ha n nels u n der 

t o da y’s la ws u n d er g o m ore e val uati o n scree ni n g t h a n a n y ot h er f or m 

of tra ns p o rtati o n or fe derall y fi na n ce d acti vit y.

A d de d t o t he us ual re q uir e m e nt s of l ocal acce pta n ce a n d c o n gres ­

si o nal c o nc urre nce is t he ri gi d scre e ni n g a p pa rat u s of t he c ost- b e ne fit 

rati o. T his is a pri nci ple a p plie d o nl y t o water w a y de v el o p m e nt pr oj ­

ects. It g u ara nte es t he s ocial a n d ec o n o mic s o u n d n ess of t he Fe d eral 

i n v est me nt.

We c o n c ur i n its c o nti n u e d use. S h o ul d t he c o m mittee dee m it 

a d vi sa bl e t o a dj u st t he met h o d of det er mi ni n g t he c ost i n t he rati o, 

t he n a c o m p arati v e a dj u st m e nt i n t he be n efits s h o ul d f oll o w. I n fact, 

t he narr o w n ess of a p plicati o n of t he be n efits ma y be a r o ot of mis ­

u n derst a n di n g of t he merits of t he pre se nt s yste m. C ost- be nefit c o m ­

pari s o n o n all as p ect s of a pr oject mi g ht clarif y m uc h of t he fre q u e nt 

c o ntr o v ers y.

A s atellit e of user c har ge s als o fre q u e ntl y pr o p ose d as a disci pli n e is 

c ost s hari n g. C o st s ha ri n g pre se ntl y e xist s. I n ma n y of t he water wa y 

s yst e ms it is o n at lea st a 1-t o -l rati o of l ocal i n v est me nt t o Fe d eral. 

T he re q uir e m e nt of l ocal parti ci p ati o n i n t he act ual c o nstr u cti o n a n d 

mai nte na n ce of wat er w a ys is o nl y a parti al acc o u nti n g. Ca r g o- ha n ­

dli n g a n d ser vi ce facilitie s nee d e d t o g u ara nte e t he via bilit y of t he 

water w a y are 100 - perce nt l ocal res p o nsi bilit y.

At pre se nt, t he U. S. dee p w ater p o rt s yste m ser vi n g as t he i nt erf ace 

bet w ee n t he water w a ys a n d ot her tra ns p o rtati o n s yste m s re p res e nts a 

p u blic a n d pri vate i n v est me nt esti m ate d i n e xcess of $6 billi o n. T h e 

best rec or ds a vaila ble t o us s h o w t he allti me c u m ulati ve Fe deral 

i n v est me nt i n all wat er w a ys si nce 1789 t o be a p pr o xi m atel y $4.7 5 

billi o n —a b o ut $2. 5 billi o n of w hic h a p plies t o t he de e p water s yste m. 

I n effect, we n o w ha v e a ver y o ne- si de d c ost s hari n g.

Als o, t he re q uir e m e nt b y la w of l ocal pa rti ci p ati o n a n d de vel o p ­

me nt of s u p p o rt facilities f urt h er s u bje cts t he pr ese nt s yste m of w at er ­

wa y de v el o p m e nt t o t he disci pli nes of t he mar ket pla ce. Al m ost u ni ­

vers all y l ocal i n v est me nt de p e n d s u p o n t he a bilit y of t he l ocal s u p p ort 

a ge nc y t o iss ue de bt o bli g ati o n s. Pr o o f of a bilit y t o retire t h e o bli ga ­

ti o n is a se vere test. T o s u bject t he s yste m t o t he a d diti o nal b u r d e n of 

wat er w a y use r c har ges a n d / or cas h c o ntri b uti o n w o ul d be re d u n d a nt 

a n d c o ul d de str o y t he a bilit y of l ocal i nter est t o fi na nc e t heir s ha re, t he 

lar gest s hare, of t he part n ers hi p.

T he re are ot her r o utes t o t he use r-c h ar g e c o n ce pt a m o n g w hic h are 

t he railr oa d atta c k desi g n e d t o f orce water wa y tra ns p o rtati o n c ha r ge s 

u p t o e na ble rails t o i ncre ase t heir c har ges o n car g o es alr ea d y ea r n e d 

a n d t he c o n ce pt b y s o me t h at t he Fe d eral G o ver n m e nt s h o ul d be pai d 

f or its parti ci p ati o n i n its o w n gr o wt h. T h e first fails t o rec o g nize t he 

pre vi o usl y ma d e p oi nt t h at water w a ys are i nstr u me nts of ec o n o mi c 

de v el o p me nt.

T h e l o n g-te r m be nefits t o rail of t he car g o es ge ner ate d b y t he 

ec o n o mic de v el o p m e nt res ulti n g fr o m t he l o w-c o st m o ve m e nt of 

basic b ul k c o m m o dities t o base i n d u str y a n d a gric ult ur e far e xcee d s 

a n y gai n s t h at w o ul d be o bt ai n e d b y ha n dic a p pi n g t his de v el o p m e nt 

wit h i ncre ase d tra ns p o rtati o n c ost.
T h e sec o n d c o nc e pt is b ase d o n narr o w visi o n t h at fails t o u n der mi ne 

t he Fe d eral relati o n s hi p a n d res p o nsi bilities t o t he de v el o p m e nt of its 

c o n stit u e ncies a n d t he i m p ort a nc e of t he basic ec o n o mic pri n ci ple 

of t he i n v est me nt i n o ne ’s o w n ec o n o mic base.

D o y o u wa nt me t o c o nti n u e?

Se nat or C u l v e r ( pr esi di n g). Will y o u please c o nti n u e.

Mr. E s c h b a c h . T h a n k y o u.

I w o ul d li ke t o r e p eat j ust o ne stat e m e nt t h at I ha d ma d e at t he ti me 

y o u were i nterr u pte d.

We c o nsi der t he Fe d eral i n v est me nt i n wat er w a ys as a n i n v est me nt 

i n b y t he Fe d eral G o ver n m e nt i n its o w n ec o n o mic base a n d t he 

pre vi o us state m e nt w hic h I ha v e j u st briefe d a d dress e d t h at pri nci ple. 

Als o, Mr. C h air m a n, as a re pres e nt ati v e of t he N o rt h we st I wis h t o 

call t he c o m mittee ’s atte nti o n t o a par o c hial c o nc er n. T h e p orts of 

t he l o wer C ol u m bia are e x p orti n g p orts. T h eir c o ntri b uti o n t o t he 

bala nce of tra de e xcee ds $1.3 billi o n a ye ar s ur pl us. T hes e e x p orts are 

pri ma ril y a gric ult ur al pr o d ucts, lar gel y cereal grai n s.

Petr ol e u m a n d fertilizer, nee de d b y t he far m ers of t he i nla n d 

e m pire t o pr o d uce t his grai n, m o ves u pri v er b y bar g e as m uc h as 46 0 

miles t o Le wist o n, I da h o, w here it is offl oa de d a n d t he n m o ve d b y 

rail a n d tr u c k t o l ocal distri b uti o n p oi nts. T h e res ulti n g o ut b o u n d 

grai n m o ve s t o t he ti d e w ate r ele vat o rs b y rail, tr u c k, a n d wat er, 

see ki n g t he m o st ec o n o mical c o m bi n ati o n of r o utes. F o rt y per ce nt of 

t he e x p ort grai n reac hes t he ti d e w ater ele v at ors b y bar ge, 50 per ce nt 

b y rail, a n d 10 per ce nt b y tr uc k.

E x p ort grai n is s ol d b y t he far m er at t he ti d e w ate r ele v at or. A n y 

c ha n ge i n tra ns p o rtati o n c osts c o me dir ectl y fr o m his re ve n ues. 

L o n g-ter m c o m paris o ns of t he far m ele m e nt of o ur ec o n o m y wit h 

ot h ers s h o ws it t he lea st a ble t o acc e pt a f orce d i ncre ase i n c ost.

T h e p res e nt s y ste m i n t he U nite d St ate s is u ni q ue. It h as bee n w or k ­

i n g well f or al m ost 20 0 yea rs. T he U nite d St ate s is blesse d wit h a s ys ­

te m of p ort s u nif o r ml y distri b ute d ar o u n d its peri m eter a n d s u p p ort e d 

b y a ra di al, i nla n d wat er, rail, a n d hi g h wa y tra ns p o rtati o n s yste m 

sec o n d t o n o ne. A n i nl a n d s hi p per at al m ost a n y p oi nt i n t he c o n ­

ti n e ntal U nite d St ate s has a m ulti ple c h oice of tra ns p o rtati o n mea ns 

usi n g t he ti me/c ost/c o n ve ni e nce fact or i n ma ki n g his decisi o n f or t he 

m o ve m e nt of his c o m m o dities.

T he hist oric al met h o d of e val uati n g water res o urce pr oject s, o n a 

pr oject- b y- p r oj ect basis, dra stic all y u n de rst ate s t heir c o ntri b uti o n t o 

t he n ati o n al ec o n o m y. T his is p artic ularl y tr u e wit h res p ect t o na vi g a ­

ti o n pr ojects w h ose be nefits are wi del y distri b ute d. A n y pr o d u cti ve 

e xa mi n ati o n of a n alte rati o n i n t he met h o d of fi na nci n g pr ojects s h o ul d 

re q uire t h at b e nefits as well as c o sts be defi ne d wit h precisi o n, b ut t he re 

is n o nati o n al ec o n o mic i m p act st u d y of be ne fits f or wat er w a ys.

I res p ectf ull y s u b mit t h at a c o m pre h e nsi ve st u d y of t he dir ect, 

sec o n dar y, a n d te rtia r y be nefits cf na vi g ati o n pr oject s, b ot h i nla n d 

a n d c oa stal, w o ul d be a n a p pr o pri ate acti vit y f or t hi s c o m mittee, 

a n d w o ul d be welc o me d b y t he or g a ni zati o n s I re prese nt.

T h e pre se nt s yste m has bee n n ota bl y s uccessf ul i n pr o m oti n g o ur 

Nati o n’s ec o n o mic de v el o p me nt. A n y c ha n ge s s h o ul d be wei g he d wit h 

t h at i n mi n d.

Se n at or, as a n e xte nsi o n t o m y pre pare d state me nts w hic h are o n 

file wit h t he c o m mittee, I w o ul d li ke t o ma ke s o me brief a d diti o n al 

c o m me nts.
1007

As a n e xte nsi on of t he last se nte nce of m y pre pare d state m e nt I 

w o uld res pectf ully call y o ur atte nti o n t o t he hist oricall y esta blis he d 

p olic y of har b or a n d c ha n nel c o nstr ucti o n a n d mai nte na nce.

Al m ost fr o m t he be gi n ni n g t he C or ps of E n gi neers, usi n g pri vate 

c o nstr ucti o n c o m pa nies f or all de vel o p me nt a n d a c o m bi nati o n of 

pri vate a n d G o ver n me nt e q ui p me nt f or mai nte na nce, has pr o vi de d 

t he U nite d States wit h a n e xcelle nt dee p water c ha n nel a n d har b or 

s yste m, a n d wit h a n e xcelle nt i nla n d water wa y na vi gati o n net.

T he m orat ori u m o n dre d gi n g place d s o me fe w years a g o b y t he 

C o n gress li mite d t he C or ps of E n gi ne ers’ a bilit y t o c o nstr uct a n d/ or t o 

carr y o ut maj or mai nte na nce o n its fleet of dre d ges. T his m orat ori u m 

has n o w bee n all o wed t o r u n t o a p oi nt i n ti me w here a crisis sit uati o n 

e xists, es peciall y as it a p plies t o t he h o p per dre d ge fleet. T his is a fleet 

of s pecial e q ui p me nt desi g ne d f or w or k i n o pe n water. It is n ot c o m ­

petiti ve wit h t he pi peli ne dre d ge fleet, w hic h m ost of us are fa miliar 

wit h.

I nci de ntall y, t he h o p per dre d ge fleet was n ot t he ele me nt of c o ncern 

at t he ti me of t he a p plicati o n of t he m orat ori u m.

A n ela b orate st u d y of t his o verall dre d gi n g pr o ble m i n w hic h t he 

p ort i n d ustr y partici pate d at c o nsi dera ble direct c ost has bee n c o m ­

plete d, b ut lies d or ma nt. T his st u d y w o ul d ha ve i ntr o d uce d t he 

p ossi bilit y of pri vate e q ui p me nt partici pati n g i n dee p water or h o p per 

dre d ge w or k as well as i n pi peli ne dre d gi n g.

U nf ort u natel y wo n o w a p pear t o be ca u g ht u p i n a c o ntr o vers y 

base d o n w het her e q ual o p p ort u nit y t o use eit her c or ps or pri vate 

e q ui p me nt is e n o u g h. I n t he mea nti me t he p u blic s uffers beca use 

t he m orat ori u m is still i n eff oct.

T he c or ps h o p per dre d ge fleet is decli ni n g i n size a n d c o n diti o n 

w hile pri vate h o p per dre d ges are n ot a vaila ble. A n d t he y will n ot 

be f or s o me ti me. As a res ult t here is a gr o wi n g bac kl o g of o pe n 

water dee p water dre d gi n g w or k t o w hic h t he U. S. c oastal p orts 

ha ve testifie d pre vi o usl y bef ore t his c o m mittee.

I n t he f ut ure y o ur c o m mittee ma y be calle d u p o n t o dec de t his 

q uesti o n of c or ps vers us pri vate, a n d I s u b mit t hat s uc h a eit her/ or 

c h oice nee d n ot be ma de. It is esse ntial t hat b ot h t y pes of dre d ges 

be i n G o ver n me nt a n d pri vate o w ners hi p. T he G o ver n me nt fleet, 

of at least h o p per dre d ges, s h o ul d be a de q uate t o pr o vi de f or a G o v ­

er n me nt c o ntr olled ca pa bilit y of mai nte na nce of t h ose c ha n nels 

a bs ol utel y necessary t o t he efficie nt a n d ec o n o mic m o ve me nt of t he 

Nati o n’s c o m merce. As it a p plies t o h o p per dre d ges, ne w c o nstr ucti o n 

a n d r o uti ne mai nte na nce as a s u p ple me nt t o t he mi ni m u m Fe deral 

fleet is a pr o per r oll f or t he pri vate fleet. As I u n dersta n d it t his is 

a p pr o xi matel y t he rec o m me n dati o n of t he c o n gressi onal s p o ns ore d 

dre d ge st u d y.

All i nf or mati o n i n dicates t hat n o w re gar dless of t he c h oices ma de, 

a s h ortfall will e xist i n t he c a pa bilit y of t he U nite d State s t o mai ntai n 

its har b ors a n d c ha n nels. T he fi na ncial l oss i n t he m o ve me nt of 

c o m merce will far e xcee d t he c ost of i m me diatel y pr o vi di n g a n 

a de q uate base of e q ui p me nt f or t he C or ps of E n gi neers.

We as k a n i m me diate e n d t o t he m orat ori u m a n d t he de vel o p me nt 

of a c o m bi ne d fleet as pr o p ose d i n t he st u d y f u n de d b y t his C o n gress. 

W hat we d o n’t nee d n o w, Mr. C hair ma n, is a ne w p olic y. As else ­

w here, t he prese nt s yste m ca n be ma de t o w or k, b ut we d o nee d a n 

e n d t o t he m orat ori u m a n d t he will of C o n gress e x presse d clearl y
1 0 0 8

i n t he m atte r of m o vi n g a he a d i n t h ose area s t h at are nec essa r y f or 

t he mai nt e na nce of t his basi c ele m e nt t o t he ec o n o mic str u ct ur e of 

t he U nite d States.

T h a n k y o u ver y m uc h, Mr. C h air m a n.

Se nat or C u l v e r . T h a n k y o u ver y m uc h, Mr. Esc h ba c h.

I n y o ur state m e nt, Mr. Esc h ba c h, y o u state t h at t he railr oa ds 

ha v e recei ve d s o me 31 3 milli o n acre s of la n d gr a nt a n d t he be nefits 

t o t he railr o a ds t her ef or e xcee d t he c u m ulati ve c ost o f t he wat er w a ys. 

D o y o u ha v e a n y asse ss m e nt of t he act u al d ollar val u e of t hes e 31 3 

milli o n acre s t h at y o u refe r t o?

Mr. E s c h b a c h . I n a n official se nse, n o. I ma d e a ha st y asse ss m e nt 

of t he alter n at e secti o ns a w ar d e d t he N o rt h er n Pacifi c f or passi n g 

t hr o u g h t h e Ya ki ma Valle y. T h e fi g ure was s o lar ge it was q uite 

a p pa re nt t h at t he t otal w o ul d be s u b sta nti al.

At t he ti me I de vel o pe d t his fi g ure I als o ha d i n m y ha n d s a n a d ­

vertis e m e nt i n B usi n ess Wee k c o nc er ni n g t he B u rli n gt o n N o rt h er n 

Railr o a d. T h e y were a d v ertisi n g t heir h ol di n gs of c oal a n d oil r eser v es 

as bei n g t he l ar g est i n t he Nati o n. I w o ul d ass u m e t h at i n itself w o ul d 

be verificati o n of t he state m e nt.

Se nat or C u l v e r . C o ul d y o u re p eat t h at ?

Mr. E s c h b a c h . I w o ul d ass u me t h at t he a d verti se m e nt b y t he 

B urli n gt o n N o rt h er n i n itself is a d e q u ate verificati o n of t he state m e nt 

of t he val ue of t he la n d gr a nts t o t he railr oa ds. B u rli n gt o n N o rt h er n 

a d v erti se d i n B usi nes s W ee k t h at t h e y were t he lar gest h ol d er of e ner g y 

reser ves i n t he U nite d States, c oal pri m aril y.

Se nat or C u l v e r . Yo u e n d y o ur state me nt wit h a s u g gesti o n t h at 

t he c o m mittee u n derta ke a c o m pre he nsi ve st u d y of t he be n efits of 

na vi g ati o n pr ojects. T he W ate r Res o urces De vel o p me nt Act m a n date d 

a st u d y la st year, a st u d y w hic h is c ur re ntl y u n der wa y. T ha t will 

i ncl u de e xa mi n ati o n of t he c u rre nt met h o d of c ost- b e ne fit e val uati o n, 

as y o u are a ware.

Mr. E s c h b a c h . Yes.

Se nat or C u l v e r . T h e st u d y will be s u b mitte d t o t he C o n gress, 

I u n derst a n d, wit hi n t he ne xt fe w m o nt hs. Ha s t he A me rica n Ass oci a ­

ti o n of P o rt A ut h orities b ee n i n vite d t o ta k e pa rt i n f or m ulati o n of t he 

secti o n 80 st u d y ?

Mr. E s c h b a c h . We ha v e parti ci p ate d i n vari o u s ele me nts of t he 

t ot al secti o n 80 st u d y. O ur partici pati o n i n t he s pecifics t h at I a m e x ­

pressi n g a c o nc er n a b o ut here ha ve n ot bee n re q ueste d. C o st- b e ne fits 

as we u n derst a n d a n d are pr o p osi n g b y t his st at e m e nt ha v e n ot a n d 

a n d are n ot bei n g de vel o pe d b y a n y st u d y k n o w n t o us.

Se nat or C u l v e r . T ha t------

Mr. E s c h b a c h . Ma y I ela b orat e o ne bit f urt h er o n t h at state m e nt?

T h o se of us i n t he p o rt i n d u str y vie w p o rts m u c h br o a d er t ha n t he 

ge ne ral vie w fr o m t he are na of Wa s hi n gt o n. We d o n ot c o nsi der p o rts 

o nl y as a n ele m e nt of a tra ns p o rtati o n net. P o rts are ec o n o mic de v el ­

o p me nt a ge ncies l ocall y a d mi nistere d. O ne of t he t hi n gs t he p orts d o 

is f or m t he i nte rfac e bet w ee n t w o diffe re nt i nt er m o d al f or m s of tra ns ­

p o rtati o n.

T h e U. S. p o rt s yst e m is u ni q ue i n t he w orl d, a n d it is a maj or 

c o ntri b ut or t o t he ver y s o u n d ec o n o mic base of t hi s c o u ntr y ’s tr a n s ­

p o rtati o n s yste m, es peciall y t h at p orti o n of t hi s c o u ntr y ’s tra ns p o r ­

tati o n s yste m.
1 0 0 9

As I p oi nte d o ut i n m y pa p er, o ur l ocal c o ntri b uti o n far e x cee ds t h e 

t ot al pa st Fe d eral c o ntri b uti o n a n d c o nti n u es t o far e xcee d t he Fe d ­

eral c o ntri b uti o n. T h at is, l ocal c o m m u niti es s uc h as m y c o m m u nit y 

a n d s uc h as se veral of t he c o m m u nities re p res e nt e d b y pe o ple i n t hi s 

a u die nce, a n n ual c o ntri b uti o ns fr o m l ocal ta x ati o n t or recei vi n g, 

ha n dli n g, a n d pr oce ssi n g of ma riti me c o m m erce far e xcee ds a n y 

Fe d eral partici pati o n.

S o we feel t h at we are a part n er, b ut m ore t h a n a n e q ual pa rt n er. 

We d o n’t o bject t o t h at relati o n s hi p. We j u st d o n’t wa nt it u p set. 

We belie ve a st u d y s uc h as we rec o m m e n d w o ul d pr o v e o ur p oi nt 

se ver al ti mes o ver.

Se n at o r C u l v e r . Se nat or D o m e nici?

Se n at o r D o m e ni ci . J u st a c o u pl e of q ue sti o ns, Mr. C h air ma n.

D oes t h at l ast state m e nt ha v e t o d o wit h t he p o rts or wit h t he p o rts 

a n d water w a ys c o m bi n e d?

Mr. E s c h b a c h . T h e wat er w a ys are a n esse ntial ele m e nt of o ur 

o pe rati o n.

Se n at or D o m e ni ci . Yo u ha v e bee n refe rri n g t o t he l ocal c o ntri b u ­

ti o n s as bei n g t h at of a pa rt n er a n d per ha p s e xcee di n g t he Fe deral 

c o m mit m e nt or e x p e n dit ures ?

Mr. E s c h b a c h . T h at pa rt of m y state m e nt is c o nfi ne d t o t he 

dee p w ater p orts or t he p orts t h at are o n dee p water a n d t he Fe der al 

partici pati o n i n w or k t h at pertai ns t o dee p wat er.

I d o n ot ha v e access t o n or ha v e I ma d e t he e val uati o n o n t he 

i nla n d s yst e m.

Se nat or D o m e ni c i . y o u ha v e a n y rec o m m e n d ati o ns re g ar di n g 

t he pre se nt p olicies of c ost s hari n g or are t here n o n - Fe der al i nter ests, 

parti ci p ati o n re q uir e m e nts?

Mr. E s c h b a c h . We feel t h at t he pre se nt s yste m, as est a blis h e d, is 

d oi n g its j o b pr o perl y a n d as ori gi nall y c o ncei ve d. T h e water wa ys 

are pri m e i nstr u me nts t o t his N ati o n’s ec o n o mic de v el o p m e nt. 

T h e y pr o vi de a base f or t he m o ve m e nt of l o w- val u e car g oes. As s uc h, 

t he water w a ys f or m t he f u n da m e nt al platf o r m o n w hic h all ot h er 

ec o n o mic de v el o p m e nt occ urs.

A gai n I ha v e t o be par o c hial, b ut t he re is n o bette r ill ustrati o n of 

t h at t h a n t he C ol u m bia Ri v er s yst e m. I t hi n k Se nat or Ma g n u s o n has 

testifie d t o t he effect t h at t he i n v est me nt i n t he C ol u m bia Ri ver 

s yst e m, w hic h was set u p ori gi nall y t o be a m o rtiz e d o n a 50- a n d 

100- ye ar acc o u nti n g basis, reall y a m ortize d itself i n a ver y fe w ye ars 

beca u se of t he e x p a nsi o n t h at occ urre d i n t he ec o n o mic de v el o p m e nt 

of t he N ort h we st, a n d w h at t h at pr eci pit ate d i n val u e t o t he Nati o n 

as a w h ole.

Se n at o r D o m e ni ci . Let me j u st as k y o u if y o u d o n’t see de v el o pi n g 

i n o ur c o u ntr y, beca use of t he e ner g y crisis, a c ha n ge i n w her e t he se 

t y p es of car g oes ha v e t o be deli v ere d i n t he f ut ure, t he t v p es t h at 

ire se ntl y fre q u e nt t he i nla n d water w a ys. I k n o w we ha v e ha d s o me 

leari n g s w here we ha d t he Se nat or fr o m C ol ora d o pre se nt a n d I 

la d occasi o n t o as k t he q ue sti o n, a n d I as k it of y o u. We are g oi n g t o 

la v e t o m o ve a l ot of c oal t o places i n t hi s c o u ntr y a n d fr o m plac es 

i n t his c o u ntr y t h at we ne v er i ma gi ne d, a n d t he y are j u st n ot o n 

i nla n d water w a ys.
1 0 1 0

S o me b o d y is g oi n g t o ha ve t o pa y f or t h at m o ve m e nt. W her eas, 

t he ge neral ta x pa yer pa y s f or t he i nla n d wat er w a ys a n d has a n d 

c o nti n u es t o —a n d I c o ul d p ull t he fi g ures o ut as t o h o w ma n y billi o n 

t h at is, b ut y o u k n o w w h at t h at is.

T h ere see ms t o be a basic i ne q uit y i n t h at pr o p ositi o n i n ter ms of 

rel ati n g it t o de v el o p m e nt a n d nee ds i n o ur c o u ntr y if it is t o c o nti n u e 

t o be free. I t hi n k t h at is reall y t he bi g is s ue. T h ere are s o me peri p heral 

iss ues, b ut as a tra ns p o rtati o n s yst e m I t hi n k w h at we are w o n deri n g 

a b o ut is h o w d o y o u ha n dle t h at i n e q uit y? Is t he o nl y wa y t o ma k e 

t hes e i nla n d o nes pa y t heir o w n wa y ? Or is t here s o me ot h er f or m ula?

Mr. E s c h b a c h . We feel, Se n at or, t h at all s yste m s f or t he m o ve ­

me nt of c o m m erce are c o n si de ra bl y s u bsi dize d. T h e i nl a n d water wa y 

s yste m is a ver y visi bl e s u bsi d y. We t hi n k t h at a n y atte m pt t o, let’s 

sa y, be c o m plet el y e q u al s h o ul d ta k e i nt o c o n si de rati o n t he t otal 

s u b si d y s yst e m.

Se nat or D o m e ni ci . Well, I h a ve n o f urt h er q u esti o ns, Mr. C h air m a n.

Se nat or C u l v e r . I wa nt t o t ha n k y o u ver y m u c h, Mr. Esc h ba c h, 

f or y o ur a p p ear a nc e her o t o d a y a n d y o ur state m e nt will be e xtr e mel y 

hel pf ul t o t he c o m mittee.

At t his ti me we w o ul d li ke t o call o u r ne xt wit ne ss, Mr. Br e nt 

Blac k we kler, Wa s hi n gt o n re p res e nt ati ve f or t he E n vir o n me ntal 

P olic y Ce nte r here i n Wa s hi n gt o n, D. C.

We are ha p p y t o welc o me y o u here. I u n de rst a n d y o u ha ve a pr e ­

par e d state m e nt. T ha t will be i ncl u de d i n t he rec or d. ( Se o p. 10 14.)

If y o u wa nt t o s u m marize, or h o we ver y o u wis h t o pr oce e d, fi ne.

S T A T E M E N T O F B R E N T B L A C K W E L D E R, W A S HI N G T O N R E P R ES E N T A TI V E, E N VI R O N M E N T A L P O LI C Y C E N T E R

Mr. B l a c k w e l d e r . Yes; I will d o t hat.

T h e E n vir o n me ntal P oli c y Ce nte r is gla d f or t h e o p p o rt u nit y t o 

testif y bef ore t hi s c o m mittee. I will s u m marize t h e hi g hli g hts of m y 

testi m o n y a n d g o ri g ht t hr o u g h t h at.

T h e first p oi nt we w o ul d li ke t o ma k e c o n cer n s t he ec o n o mic 

j ustifi cati o n of ca nals. Basic all y, t hes e pr ojects are n ot c o nsi der e d i n 

li g ht of w h et h er t he y pr o vi d e tra ns p o rtati o n be n efits t o t h e Nati o n. 

W hat y o u get w he n y o u recei v e t he j ustifi cati o n is a n i n di cati o n i n 

mere i nc o me tra n sfer s fr o m o ne m o de t o a n ot h er. T his is beca u se y o u 

ha ve rat e c o m pari s o n s rat h er t ha n c o m pari s o n s of t he c ost s of t he 

res o urce s i n v ol ve d.

Sec o n d, t he De pa rt m e nt of Tr a n s p ortati o n is n ot i n v ol ve d i n 

pla n ni n g maj or wat er w a y pr oject s.

Se nat or C u l v e r . E xc u se me, Mr. Blac k wel der. T he se bells si g nif y 

a v ote n o w ta ki n g place o n t he fl o or. S o it will be nece ssar y f or t he 

c o m mittee me m bers t o g o. It is m y u n derst a n di n g t h at we will get 

a n ot h er v ote at 2:15. We will pr o ba bl y ma k e t his v ot e a n d wait t o 

ma ke t he ot h er a n d t he n we will be bac k.

S o at t his ti me it will be nece ssar y t o call f or a recess f or at lea st 

10 mi n ut es a n d we will c o me bac k a n d ta k e u p wit h y o ur testi m o n y 

at t h at ti me.

T h e c o m mittee will sta n d i n recess u ntil t he call of t he C hair.

[ W h ere u p o n, a brief recess was ta ke n.)

Se nat or G r a v e l [ presi di n g). T he heari n g will c o me bac k t o or de r.
1 0 1 1

I u n der sta n d, Mr. Blac k wel der, y o u ha v e alr ea d y la u nc h e d i nt o 

y o ur testi m o n y. I n vie w of t he fact t h at we ma y ha v e m ore v ot es, 

I w o n d er if y o u c o ul d n’t s u m marize y o u r state m e nt? We will i ncl u de 

it i n t he rec or d.

Mr. B l a c k w e l d e r . Fi ne. I will be gla d t o d o t h at.

T he first p orti o n of m y state m e nt c o nc er ns q ue sti o ns a b o ut t he 

ec o n o mic i m plicati o n s of ca nals a n d we raise t he p oi nt a b o ut rate 

c o m paris o ns rat h er t ha n c ost c o m pari s o ns bei n g ma de.

I n t he sec o n d para g ra p h we disc us s t he fact t h at t he D e p art m e nt 

of Tr a n s p ortati o n is n ot i n v ol ve d i n assessi n g t he nee d f or na vi g ati o n 

pr oj ects. A n d t h at t he c or ps d oes n ot act uall y ma k e a t h o r o u g h 

e xa mi n ati o n of all tra ns p o rtati o n i n v est me nts.

I p oi nt o ut t he fact t h at t he railr oa ds ha v e a va stl y u n der utilize d 

rail net w or k t h at c o ul d easil y acc o m m o date i ncre ases i n tr a n s p orta ­

ti o n uses.

I als o disc us s t he e ner g y fi g ures o n rail ver s us bar ges a n d p oi nt 

o ut s o me fact or s t h at ha v e n ot bee n ta k e n i nt o acc o u nt i n pre vi o us 

st u dies.

I w o ul d li ke t o ha v e, Mr. C h air m a n, i ncl u de d f or t he rec o r d, t he 

Se bal d st u d y d o ne at t he U ni ver sit y of Illi n ois.

Se n at or G r a v e l . T h at will be place d i n t he rec or d. ( See p. 102 2.)

Mr. B l a c k w e l d e r . U n der t he ec o n o mic cat e g o r y we a d d res s 

w h o s h o ul d pa y f or bar g e use. We p oi nt o ut t h at t he a d va nta ge of 

railr oa d s are t h at t he y are getti n g less t h a n 1 per ce nt of t his f or m of 

m o n e y w hile s u bsi die s g o t o airli ne s, bar ge s, a n d tr uc ks.

I me nti o n t he le vels of c ost s ha ri n g t h at t he W ate r Res o urc es 

C o u ncil p u blis h e d. If y o u will n otic e, o n t h at ta ble it w o ul d a p pe ar 

t h at t he maj orit y of t he i nla n d water traffic w o ul d m o ve b y ot he r 

m o des were it n ot f or s u b si d y of ca n als. W ate r w a y pr o p o ne nts get 

i nt o t he p ositi o n of ar g ui n g, o n t he o ne ha n d, t h at t he y na ve a n i n ­

he re nt c ost a d va nta ge a n d o n t he ot he r t h at a n y user c ha r ge w o ul d 

ba n k r u pt t he m.

T h e reas o n t he y ca n b oa st c ost a d va nta ge is t h at t he Fe deral 

G o ver n m e nt pic ks u p a g o o d per ce nta ge of t he c osts.

I g o o n t o disc u ss a rec e nt article i n Scie nce b y C ha rles Belt w hic h 

acc uses t he C or ps of E n gi neers of a g gra vati n g fl o o di n g a n d er osi o n 

pr o ble ms o n t he Missi ssi p pi wit h its na vi g ati o n a n d ot h er m a ni p ula ­

ti o ns. We ur ge t he c o m mittee t o ta k e a seri o u s l o o k at t hi s arti cle 

beca us e if t h os e c har ges are tr ue, a n d we ha v e e ve r y reas o n t o t hi n k 

t h at t he y are, t he n va st re visi o ns will ha v e t o be calle d f or i n t he 

water w a y tra ns p o rtati o n s yste m i n t he c o u ntr y.

I als o me nti o n e n vir o n m e nt al o bj ecti o n s t o t hes e ca n als. I n y o ur 

heari n gs y o u ha v e recei v e d testi m o n y i n t hi s are a, I k n o w, as t o 

bi ol o gical i m p act s.

Of pri me c o nc er n t o c o n ser v ati o n or g a niz ati o ns are a n u m ber of 

pr oject s w hic h are i n vari o us sta g es of pla n ni n g a n d earl y p ha ses of 

c o n str u cti o n. I w o n ’t ma ke a n y re m ar k s o n l oc k a n d da m 26, sa v e t o 

as k t h at t he c o m mittee w o ul d i ncl u de a s u m ma r y of t he D e p art m e nt 

of Tr a n s p ortati o n’s re pl y t o t he Se nat e C o m merc e C o m mitt ee’s 

re q uest f or a n e val uati o n. I t hi n k t h at w o ul d be usef ul t o me m bers of 

t he c o m mittee.

Se nat or G r a v e l . Yo u me nti o n t h at t he c or ps is g oi n g a he a d wit h 

pla n s f or t he Tri nit y Ri v er bar g e ca nal i n Te xa s. It is m y u n d er-
1 0 1 2

sta n d i n g t h at b ot h t he H o u se a n d Se n ate A p pr o pri ati o ns C o m mitte es 

ha v e i nstr u cte d t he c or ps t o t he c o ntrar y. W hat e vi de n ce d o y o u 

ha v e o n t his state m e nt?

Mr. B l a c k w e l d e r . T h e H o use A p pr o pri ati o ns C o m mittee t his 

ye ar i ncl u d e d m o ne y f or pla n ni n g w hic h w o ul d i ncl u de pla n ni n g f or 

t he bar ge ca nal. We att e m pte d t o delete t h at i n t he H o use a m e n d ­

me nt offere d b y C o n gres s ma n Steel ma n of Te x as. It was defe ate d. 

It is still a n o pe n-e n de d q uesti o n.

Se n at or G r a v e l . Ha s t he c or ps alre a d y g o ne a he a d or is t his a ne w 

dire cti v e fr o m t he C o n gres s?

Mr. B l a c k w e l d e r . We t hi n k t h at t he c or ps has g o ne a he a d. 

E vi de n ce t h at we ha v e o n t h at sc ore is t he fact t h at at t he u p per 

e n d of t he Te n n esse e C ol o n y Rese r v oir t her e is a 93- mile c ha n nel 

pla n ne d a n d it is o ur c o nte nti o n t h at t his is act uall y t he maj or ste p 

i n de fact o b uil di n g of t he bar g e ca nal wit h o ut c o n gre ssi o nal a p pr o v al. 

I ur ge i n m y testi m o n y t h at y o u ma ke a n e xa mi n ati o n of w h at t he 

c or ps is c o nte m plati n g wit h t his 9 3- mile l o n g c ha n nel at t he u p p er e n d 

of t he Te n ne ssee C ol o n y Reser v oir. We t hi n k t h e y are g oi n g a hea d 

wit h t he pr oject d es pite c o n gres si o nal wis hes a n d t he l ocal refe re n d u m 

a g ai n st t he pr oj ect.

S o me of t he ot h er q ue sti o ns we t hi n k t he c o m mittee s h o ul d ta k e a n 

o ve rsi g ht l o o k at, ta k e t he Ba y o us C he ne, B oe uf a n d Blac k i n 

L o uisia n a. F or t he be ne fit of oil ri g ma n uf act ure rs, gr eat c o m m ercial 

fis heries are g oi n g t o be de va state d b y t his pr oj ect. Des pite o p p ositi o n 

b y State a n d Fe d eral a ge ncie s t he c or ps pla n s t o g o a hea d wit h t hi s 

pr oject.

I n m y state m e nt I me nti o n t he Miss o uri Ri v er na vi gati o n a n d I 

i ncl u de s o m et hi n g t h at ma y be of i nt ere st t o y o u. I n ote i n 1952 

C o n gres s ma n K err’s s u b c o m mittee ma d e a re p ort t o t he H o u se 

A p p r o p riati o n s S u b c o m mittee o n Miss o uri Ri ver na vi gati o n a n d I 

q u ot e:

It is a p p are nt t h at t he C or ps of E n gi neers has tre ate d t he k n o w n facts wit h 

res pe ct t o t his Miss o uri Ri ver pr oje ct m ost li g htl y a n d, i n s o me i nsta nces, rec k ­

lessl y. T he c o m mittee is t h or o u g hl y dissatisfie d wit h t he C or ps’ perf or ma nce, a n d 

feels t h at s uc h s u b sta nti al d o u bt has bee n cast u p o n t he C or ps’ met h o ds t h at 

t heir res ults are har dl y w ort h y of cre de nce.

T his is n ot c o n ser vati o n sist s sa yi n g t his. T his is a me m ber of t he 

c o m mittee sa yi n g t his aft er a t h or o u g h e xa mi n ati o n. Fr o m all e vi de nce 

I ca n o bt ai n, it has g o ne a hea d a n d des pite s u bsta ntial i n v est m e nt of 

ta x d ollar s t h at t he mai nte na n ce is a b o ut si x ti me s as gr eat as t he 

a m o u nt of s a vi n gs t h at t he s hi p pers w o ul d sa ve t o j ustif y t he pr oject. 

T heref o re, we ur g e t he c o m mittee t o l o o k i nt o t h at wit h a vie w t o w ar d 

cl osi n g d o w n t his pa rti c ular pr oje ct.

J u st a n ot h er e xa m ple, Mr. C hair m a n, of t hi n g s t h at w orr y c o n ­

ser vati o n gr o u ps ca n be see n b y l o o ki n g at t he Te n nes see- T o m bi g b ee 

Water w a y, t he sec o n d m o st e x pe nsi ve a ut h orize d c or ps pr oject, n o w. 

C o sts ha ve escalate d m ore t ha n tri pli n g i n t he pa st 4 years, b ut t he 

c or p s has pr o d uce d n o e vi de nce t h at t he be ne fits g o u p i n t he sa m e 

pr o p orti o n.

A gai n, o n t his pa rti c ular pr oject t he c or ps is g oi n g a hea d wit h pla ns 

t o ma ke a di vi d e c ut. T h e y are g oi n g t o fill i n 51 valle y s wit h dirt. 

T h e y ha v e n o pla ns at all t o s ucce ssf ull y re m o ve t his dirt. T h e y sa y’ 

t h e y are g oi n g t o fill i n 51 valle ys ; t he y ha ve n ot i ncl u de d i n t he c ost
1 0 1 3

of t he pr oject t he c ost of re v e getati o n, t he c osts of ma ki n g t he sterile, 

u n p r o d ucti ve eart h pr o d ucti v e. I cal c ul ate d, Mr. C h air ma n, t h at t he 

a m o u nt of di rt t o be m o ve d i n b uil di n g t his, y o u c o ul d p ut a 10-f o ot 

dee p stri p of hi g h wa y fr o m Ne w Y or k Cit y t o L os A n gele s a n d bac k. 

T hat is h o w m uc h dirt is i n v ol ve d i n t his parti c ular pr oject. We raise 

a q uesti o n t o y o u a n d t o t his c o m mittee; we t hi n k y o u s h o ul d l o o k i nt o 

w h o will pa y t he l ocal s har e of t he c osts i n t his pr oject a m o u nti n g t o 

s o me $1 38 milli o n beca us e s o me of t he p o orest c o u ntie s i n t he Nati o n 

are i n v ol ve d.

T h ere is a q ue sti o n als o of basic s ocial j ustice. Wit h all t he pressi n g 

pri oritie s, partic ula rl y i n t he are a of e d u cati o n, t o s pe n d m ore t h a n a 

billi o n d ollars o n a ba r ge ca n al i n t h at p art of t he c o u ntr y raises seri o u s 

q ue sti o ns of w h at ta x pa yer m o n e ys are bei n g use d f or. T h ere are n o 

blac ks o n t he Te n n esse e- T o m bi g bee Water w a y t o e v al u ate t h at pr oj ­

ect as far as its bette r m e nt of t he p o or pe o ple a n d mi n orities i n t he 

area w hic h act uall y i n s o me of t he c o u ntie s c o m prise t he maj orit y of 

t he pe o ple. It a p p ears t o us t h at t he pr otests ma d e t o t he A p pi o pri ati o n s C o m mittees a n d s o o n i n t he pa st fr o m mi n orities ha v e bee n 

i g n ore d a n d t hi s pr oject is g oi n g a he a d f ull stea m.

I c o ncl u de m y state m e nt, t he n, b y ur gi n g t his c o m mittee n ot o nl y 

t o l o o k at t he basic pr oc e d ures u n der w hic h ne w pr ojects are j ustifie d, 

b ut als o t o re o pe n t he b o o k o n s o me of t hese a ut h orize d pr ojects t o 

see w h et h er t he y are i n t he nati o nal i nt ere st.

It is o ur c o nte nti o n t h at t he e vi d e nce fr o m s o ma n y diff ere nt sec ­

t ors —ec o n o mic, e n vir o n m e nt al, a n d s ocial —is a g ai n st g oi n g f or war d 

wit h t hes e de str ucti ve pr ojects.

Se nat or G r a v e l . T h a n k y o u ver y m uc h.

[ Mr. Blac k wel der’s pre par e d state m e nt, a n d t he U ni ve rsit y of Illi ­

n ois st u d y pre vi o usl y referre d t o, f oll o w:]
1 0 1 4

n vi r o n m e n t a l o li c y C e nt e r

3 1 4 C Str eet, S. E., W a s hi n gt o n, P. C. 2 0 0 0 3

( 2 0 2 ) 5 4 7- 6 5 0 0

- T ES TI MO NY C F B R E NT BL A C K H E L D E R, WAS HI NGT O N R E P R E S E N T A TI V E OF T H E 

E N VI R O N! C E NT AL P O LI CY C E N T E R, B E F O R E T H E S E N A T E P UB LI C WO R KS 

c or a v nrf E E, c o n c e r h i m c t h e i n l a n d n a v i g a t i o n p r o g r a m o f t h e

MY C O RPS OF E N GI NE E RS, J U N E 1 9. 1 9 7 5

I nt r o d u ctl o n. T h e E n vir o n m e nt al P oli c y C o n t er a p pr e ci at e s t h e o p p o rt u nit y t o 

t e s tif y b ef or e t h e C o m mitt e e o n t h e i nl a n d n a vi g ati o n pr o gra m of t h e Ar my C or ps 

of E n gi n e ers. T his t es ti n o n y w il l hi g h li g h t s o me of t h e d ef e c ti v e pr o c e d ur es 

us e d t o j u s ti f y c a n al pr oj e c ts a n d w il l s u g g es t s o m e b a si c r ef or m s t o h el p 

i ns ur e t h at f ut ur e pr oj e c ts w il l b e s o u n d I n v est m e nts. T hi s t esti m o n y w il l 

als o p oi n t o ut s o me pr o ble ms wit h t h e e n vir o n m e nt al i m p a cts of c a n al pr oj e c ts 

c u rr e n tl y u n d er w ay a n d w il l pr o p os e t h at o v er si g h t h e a ri n gs b e h el d o n c e rt ai n 

p r o j e ct s.

E c o n o mi c J u stifi c at i o n of C a n al s. C o ns er v a ti o ni st s h a v e n ot c o nfi n e d t h eir c ri ti cis m 

of c a n al pr o j e c ts s o l e l y t o t h e a d v ers e e n vi r o n m e nt al i m p a cts of s u c h p r o j e ct s.

I t is o ur c o nt e nti o n t h at t h e s e pr oj e c ts ar e n ot e v al u a t e d t o d et er mi n e w h et h er 

t h e y pr o vi d e tr a ns p o rt a ti o n b e n efit s t o t h e n a ti o n. I ns t e a d t h es e pr oj e c ts ar e 

J u stifi e d t o C o n gr oss fr o m t h e n arr o w st a n d p oi nt of s a vi n gs t o s hi p p e rs. B y m a ki n g 

r a t e c o m p aris o ns b et w e e n r a il a n d b ar g e r a t h er t h a n l o o ki n g a t t h e c o st of t h e 

r es o ur c es n e ed e d t o pr o vi d e t h e tr a n s p or t a ti o n s e r v i c e, t h e C or ps I n cl u d es as 

J u stif y i n g b e n e fit s m er e i n c o m e tr a n sf er s fr o m o n e mo de t o a n o t h e r. As a r e s ult 

i t is o ur vi e w t h at t a x p a y e r d oll a rs h a v e b e e n w ast e d o n a n u m ber of u n e c o n o mic 

pr oj e c ts a n d I n effi ci e n ci es h a v e b e e n i ntr o d u c e d i n t o o ur n a ti o n's tr a n s p or t a ti o n 

s yst o m. T o s e e ho w gr e a t t h e dls cr o p a n c y c a n b e b et w e e n n a ti o n al tr a n s p or t a ti o n 

b e n e fit s a n d b e n e fit s t o s hi p p e rs, o n e h as o nl y t o e x a mi n e t h e R e vi e w of R e p ort s 

o n L a k e Eri e- O hi o Ri v er C a n ol, J a n u ar y 1 9 6 5. b y t h e Pi tts b u r g h D is tr i c t E n gi n e er, 

U. S. Ar my C or ps of E n gi n e e rs. T h e st u d y d o n e f o r t h e C or ps b y Art h ur D. L i t tl e ,

I n c. , f o u n d t h a t t h e r a t e s a vi n g s t o s hi p p ers w er e 1 4 ti m es h e a t e r t h a n t h e 

s a vi n g s i n r es o ur c e c o st s t o t h e n a ti o n. T h e b e n ef it - c o st r a ti o of t h e p r o j e ct 

w as 3. 2 w h en e v al u at e d fr o m t h e n arr o w p oi nt of vi e w of s a vi n gs t o s hi p p e rs, b ut 

o nl y 0. 7 6 whe n e v al u a t e d fr o m t h e n a ti o n al st a n d p oi nt. As a fi r s t st e p t o w ar d 

r ef or m i n t h e i nl a n d n a vi g a ti o n pr o gr a m we ur g e t h e C o m mitt e e t o r e q u ir e t h at 

c a n al pr oj e cts b e e v al u at e d fr o m t h e c o m pr e h e nsi v e p u bli c vi e w p oi nt r a t h er t h a n 

fr o m t h e n arr o w st a n d p oi n t of s a vi n gs t o s hi p p e rs.

A s e c o n d m aj or d ef e c t i n t h e pl a n ni n g pr o c es s f o r c a n al pr oj e c ts is t h at 

t h o D e part me nt of Tr a ns p ort ati o n 1s n ot i n v ol v e d i n t h e ass es s m e n t of t h e n e e d 

f o r t h e pr oj e ct a n d h o w t h o pr oj e c t fi t s i n wit h ot h er tr a n s p or t a ti o n pr oj e c ts 

vi a ot h e r n o d es. E v e n more di st ur bi n g is t h e f a c t t h at t h e C or ps d o es n ot _ 

ma ke a n a n al y sis of t h e b e n e fits a n d c o st s of alt e r n ati v e tr a n s p or t a ti o n i n v e st ­

m e nts s u c h as i n el e c tr if i c a ti o n of r a il r o a d s or i n hi g h w a y s. T h e s p e cif i c 

pr o visi o n s of S e n at e D oc u m ent 9 7 w hi c h r e q uir e d t h at n a vi g ati o n p r o j e ct s pr ovi d e a " n e e d e d tr a ns p o rt a ti o n s e r v i c e wit h a d v a nt a g e t o t h e n ati o n's tr a ns p o rt a ­

ti o n s yst e m" a nd w hi c h s p e c ifi e d t h at pl a n ni n g s h o ul d c o n si d er " n a vi g ati o n i n r e ­

l a ti o n t o t h e N atl o n' 3 tr a n s p or t ati o n s yst e m " h a v e n e v e r b e e n i m pl e m e nt e d. I t 

is pr e cis el y b e c a us e t h e C or ps of E n gi n e ers h as si n gl e - ml n d c dl y p urs u e d n a vi g ati o n, o bli vi o u s t o t h e i m p a ct of i t s pr oj o c ts o n ot h e r mo des a n d o n t h e n at i o n's 

tr a ns p ort ati o n s yst e m, t h a t r a il r o a d s h a v o j oi n e d c o ns er v a ti o n ists i n a l a ws ui t 

t o h alt L o c k a nd I) a m 2 6 o n t h e U p p er M is si ssi p pi. T w e nt y- o n e r a il r o a d s h a v e 

p oi nt e d o ut t h a t s hif ti n g of t r a ffi c t o t h o e x p a n de d w at er w a y w il l j e o p a r diz e 

t h ol r a bil it y t o s u r vl v o a n d w il l h a v o a d e v a st ati n g o ff c c t o n t h ei r br a n c h 

li n o s e r vi c e.
1 0 1 5

2.

P a rt of t b o C or ps' cir c u m s cri b e d vi e w p oi n t c a n b e s e e n i n t h e f ail »i r e t o 

t a k o i n t o a c c o u nt t h e v a st u n d e r u tiliz e d r a il r e a d n et w or k of r o ai w a y, tr a c k s, 

a n d st r u ct ur es w hi c h p a r a ll els pr o p os e d c a n al p r o j e ct s. T h e D e p art m e nt of 

Tr a ns p or t ati o n st at e d i n i t s F ir s t A n n u al R e p ort, o n t h e I m pl e m e nt ati o n of t h e 

St at e m e nt o n N ati o n al Tr a ns p or t a ti o n r o li c y, f. a y 1 > ? 2, t h at T h er e ar e •'si z e s ol e 

c a p a ci t y s ur pl u s es oi o ur l or. g- h a ul r a il n et w or k", t h at t h er e ar e "i m pr e ssi v e 

o p p o rt u niti e s f o r i n p or vi n g ma ny el e m e n ts of o ur tr a n s p or t a ti o n s yst e m si m pl y 

t hr o u g h t h e c or e eff e c ti v e us e of e xis ti n g f a c ili ti e s " , a n d t h at t h e c o st of 

s u c h i m pro v e me nts "is mi ni m al w he n c o mp ar ed t o c o st s f o r c o m p ar a bl e c a p a ci t y i ncr e a s e s t hr o u g h cr e a ti o n of n e w c o pit ai f a c ili ti e s wit h a ll of t h eir att e n d a nt 

e n vir o n m e nt al a n d s o ci a l c o s ts ," C ne e x a m pl e of t h e f a il u r e t o c o nsi d er tr a n sp o rt ati o n al t e r n ati v es c a n b e s e e n i n t h e c as e of t h e T ri nit y Ri v o r C nr. al Pr oj e c t 

i n T e x as. F or a b o ut h alf t h c c os t of t h e p r o j e ct a n e w f o ur -l a n e hi g h w a y wit h 

a r a il r o a d r u n ni n g d o w n t h e c e nt er m e di a n c o ul d bs b u il t al o n g t h e c a n al r o ut e 

b et w e e n H o usto n a n d D all a s a n d t h e E 3ir.t o n a n c e w o ul d b e o nl y l /l O t h t h at of t h e 

c a n al. T his is n ot t o s u g g es t t h at a n e w hi g h w a y or r a il c o rri d or i s n e e d e d 

b ut si m pl y t o I n di c a t e t h e l a c k of c o nsi d er ati o n of t h e c o st of tr a n s p or t a ti o n 

alt er n at i v es t o c a n als.

E n er g y C o mp aris o n of B ar g e V ers u s R ail. A d v o c at es of n a vi g a ti o n p r o j e ct s h a v e ar g u e d 

T h at b ar g es ar e more e n er g y eii i c i e n x t h a n r a il r o a d s, b u t a n e x a mi n ati o n of t h e 

o v e r a ll e n er g y pi ct u r e w il l n ot s u p p or t t h es e cl ai ms of t h e b ar g e l o b b y. Pr e vi o us 

e n e r g y c o m p aris o n st u di es h a v e b e e n d ef e ct i v e i n s e v er al r e s p e c ts. F ir s t, n o 

a c c o u n t h as b e e n t a k e n of t h ef a ct t h at b a r g e s h a v e t o f o ll o u m e a n d eri n g ri v e rs 

a n d t h us h a v e t o tr a v el ma ny more mil es t o r e a c h a gi v e n d e sti n ati o n. On t h e 

a v e r a g e b ar g es h a v e t o g o 4 mil es f o r e v er y 3 w hi c h c o m p eti n g r a il r o a d s h a v e t o 

tr a v el. B e c a us e b ar g os h a v et o tr a v el mor e mil e s t o r e a c h a gl v o n d e sti n at i o n, 

m er e fi g u r e s o n f u el c o ns u m pti o n p er t o n mil e ar e i n a d e q u at e. F urt h er m or e, i n 

pr e vi o us st u di e s r a il e n er g y d at a f o r t h e e n ti r e n a ti o n h as b e e n us e d i n st e a d of 

r a il o n er g y d at a f o r t h os e tr ai n m ov e me nts w hi c h c o m p ot e wit h b a r g es. I t i s cl e a rl y 

f a ll a ci o u s t o i n cl u d e i n •, c o m p aris o n s t h e hi g h e n e r g y i n t e ns i v e m ov e me nts of fr ei g h t 

a c r o ss t h e R o c ky M o u nt ai ns, si n c e t h is r a il t r a ffi c c o n p et es wi t h tr u c ks r a t h er 

t h a n wit h b ar g es w hi c h d o n ot mo ve a c r o ss t h e C o nti n e n t al Di vi d e. Fi n all y,

I n a n y e n er g y c o m p ariso n o n e k e y f a ct o r t o c o nsi d e r i s t h e f a c t t h at r a il r o a d s 

a n d b ar g es c o mp ete o v er t h e m ov e m ent of b ul k c o m m o diti es li k e c o al a n d gr ai n, 

a n d t h e s e c o m mo diti es mo ve i n u nit tr ai n s w hi c h ar e m or e e n e r g y e ffi c i e n t t h a n 

r e g u l a r mix e d tr ai n s. T h e m ost r e c e nt e n e r g y st u d y of r a il e n d b ar g e n o d es, d e n e 

b y A nt h o n y S e b al d at t h e U ni v e rsit y of Illi n o i s’ C e nt e r f o r A d v a n c e d C o m p ut ati o n 

i n Ma y 1 9 7 4, i n di c a t e s t h at r a il r o a d s ar e fr o m 1 0 t o 2 3 p e r c e nt m or e o n er g y 

e ff i c i e n t t h a n b ar g es. T h ou g h t h e b ar g e l o b b y h as tr i e d t o dis c r e dit t h is st u d y, 

i t h as f a il e d t o c o n e u p wit h c o g e nt o bj e cti o ns ot h e r t h a n t h at t h e r a il r o a d s ar e 

u n d er m ai nt al ni n g t h ei r b a si c tr a c k f a c ili ti e s.

Who S h o ul d P a y f o r B ar g e C a n als ? B ar g es p a y n o us e r c h a r g e s o n i nl a n d w at er w a ys. 

Tr u c ks p a y s o me us er c h a r g e s, alt h o u g h t h es e c h a r g es d o n ot c o v er t h e tr u c ks' 

f u ll s h a r e of c o ns tr u cti n g, o p er ati n g, a n d m ai nt ai ni n g t h e hi g h w a y s yst e m. T he 

f e d er al o utl a y f o r t h e si g n alli n g a n d di s p at c hi n g n et w or k of t h e F e d e r al A vi ati o n 

A d m i nis tr a ti o n r u ns i n t o t h e h u n dr e ds of milli o ns a n n u all y. U ntil t h e p ass a g e of 

t h e R ail R e or g a nis ati o n A c t of 1 9 7 3 * r a il r o a d s h a d n ot r e c ei v e d a n y dir e c t s u bsi di e s 

b u t r at h or h a v e b e e n c x p e ct e d t o m ai nt ai n, c o ns tr u c t, a n d p a y t a x e s o n t h oir o wn 

ri g h ts of w ay. T h e F e d er al G o v er n m e nt p uts m or e t h a n $ 3 0 b il li o n a n n u all y 

i n t o o ur tr a ns p ort ati o n n et w or k! y et t h e r a il r o a d s h a v e b e e n r e c e i v i n g l e s s t h a n 

o n o p cr c o n t of t h is. T h e n ati o n is li t e r a ll y c o nfr o n t e d wit h a r a pi dl y d et er i o r a ti n g 

r a il s yst e m. I n vi e w of t h e e n vi r o n m e nt al a d v a nt a g es of r ail w a y c o rr i d o rs, i n vi e w 

of t h e e n er g y a d v a nt a g o 3 of r a il r o a d s o v e r tr u c k s a n d o v er b ar g es a n d o v e r air ­

li n e s, a n d i n vi e w of t h o u n d e r u tilis e d c a p a cit y of r a il r o a d s, dr a m a ti c c h a n g es
1 0 1 6

3.

ar e c all e d f o r I n o ur p o li c y of s u bs i dizi n g b a r g es, tr u c ks, a n d air li n e s.

T h e fi r s t m aj or st e p w e ur g e t h o C o.-. nltt o e t o t a k e is t h e i m p osi ti o n of 

us er c h a r g e s t o c o v e r a ll o p e r ati o n a n d m ai nt e n a n c e c o st s of c a n als as w ell as 

t h e f u ll c o n str u cti o n c o st of n e w c a n al s. T h e n a ti o n al W at er C o n nissi o n r e c o gni z e d t h e n eo d f o r us er c h ar g es a n d r c c o mn c n de d t h e n i n i t s Fi n al R o p ort t o t h e 

P r e si d e n t a nd t h e C o n gr es s. T h e s u r e st t e s t of t h e w o rt hi n e ss ol a p r o j e ct is 

t h e willi n g n es s of t h e t c n ofl ci a rl e s of t h e p r o j e ct t o p a y f o r i t , T h o C o n gr e ss 

h as c o n si st e n tl y r ef u s e d t o t a k e a h ar d l o o k a t r a ki n g > b e n efi ci a ri e s of pr oj e c ts 

p a y f o r t h e n, a nd t s a r e s ult ma ny b a d pr oj e c ts h a v e b e e n b u il t.

T h e W at er R es o ur c es C o u n cil's I nt e r d c p art n e nt c.1 T as k F or c e r e p o rt of A u g ust 

1 9 7 3i e n ti tl e d " C o st S h ari n g f o r W at er R es o ur c es I n v est m e nts," es tl n a t e d t h e 

di v e rs i o n of w at er w a y t r a ffi c t o ot h e r n o d os as a r e s ult of dif f e r e n t l e v els of 

c o st s h ari n g f o r c o ns tr u cti o n, o p er ati o n, a n d n al n t e n a n c e of p r o j e ct s. H er e 

ar e t h e c o n cl u si o ns!

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I f t h es e esti m a t es ar e a t a ll a c c u r a t e, i t w o ul d a p p e ar t h at t h e m aj orit y of 

i nl a n d v a t o r v a y tr a ffi c w o ul d n o v o b y ot h er n o d es i f i t w er e n ot f o r t h e s u bsi d y o f c a n als b y t h o c o u n tr y's t a x p a y er s. T h es e e st i c a t e s s u g g es t t h at t h e 

m ost i m p o rt a nt st e p t o b e t a k e n t o eli mi n at e u n e c o n o mi c al m ov e me nts of c o m m o diti es 

w o ul d b e t o i a p os e a 1 00 % us e r c h a r g e.

W at er w ay pr o p o n e nts ar e i n t h o a w k v ar d p o si ti o n of ar g ui n g o n t h o o n e h a n d 

t h at b a r g o tr a ns p ort ati o n h as a n i n h e r e n t c o st a d v a nt a g e, y e t o n t h e ot h er h a nd 

s t a ti n g t h at a n y i m p o siti o n of us e r c h a r g es w o ul d r ui n t h e m. T h e r e a s o n b ar g es 

b o as t a n i n h e r e n t c o st a d v a nt a g e is t h at t h o F e d e r al G o v er n m e nt pi c k s u p a gr e a t 

p ar t of t h eir c o st s. T h e i n h er e nt a d v a n t a g e is t h us a h o a x.
1 0 1 7

4.

e w E vi d e n ce t h a t N a vi g ati o n P r o j e ct s A g gra v at e Fl o o di n g a n d E r o si o n.

A r e c e n t a r ti c l e I n t h e A u g ust 2 9, 1 9 7 5 » Is s u e o f S cle n c e b y C h a rle s

B elt a t S t. L o u is U ni v e r sit y p r e s e n t s p e r s u a si v e e vi d e n c e t o t h e 

e f f e c t t h a t m a ni p ula ti o n of t h e M i s sis si p p i E l v e r f o r n a v i g a ti o n ha s 

be e n a si g n i fi c a n t c o n tr i b u ti n g f a c t o r I n t h e t u r ni n g o f m o d er at e 

fl o o d s I nt o m aj or o n e s. We u r g e t h i s C o m mitt ee t o ta k e a s e ri o u s 

l o o k a t t h e I n f o r m ati o n c o nta i n e d I n t h i s a r ti c l e , f o r we b eli e v e 

t h a t I t c o n stit u t e s gr o u n ds f o r d r a m ati c all y c u rt a ili n g f e d e r a l 

f u n di n g o f n a v i g ati o n p r o j e c t s u n til we c a n d e fi n it e l y a s c e rt a i n 

w hat Is h a p p e ni n g. I f I t t u r n s o ut t h a t fl o o d da ma ges a r e b ei n g 

a g g ra v ate d b y n a v i g ati o n p r o j e c t s, a n d I n d ee d t h e pre p o n d era n c e o f 

e vi d e n c e I n d i c ate s t h a t t h e y a r e, t h e n m aj or c h a n g es w ill be c all e d 

f o r I n o ur w h ol e w ate r r e s o u r c e s pr o gra m.

I n a d d iti o n t o a g g r a v ati n g fl o o d da m a g es, o p e r ati n g ri v e r s f o r 

t h e p ur p o se of la r g e s c ale n a v i g ati o n c a u s e s da m a gi n g ba n k e r o si o n. 

F o r e x a m ple, ba n k e r o si o n pr o bl e m s al o n g t h e O hi o E l v e r a n d al o n g 

t h e Ka na w ha a r e b ec o n £l n g s e v e r e, a n d c o stl y m ai nte n a n ce I s r e q u ir e d. 

M uc h o f t h e pr o b le m i s d u e t o n a v i g ati o n a c ti v iti e s , y et t h e fi n g e r 

o f bla me I s n ot p oi n te d a t t h e b ar g e I n d u str y. T he W at er R e s o urc es 

D e v el o p m e nt Act o f 1 9? 4 p r o vi d e d m o n ie s t o e x pl o re s o l u ti o n s t o 

t h e e r o si o n pr o ble m s b ut di d n ot h i g h li g h t t h e r e s p o n s i b ilit y of 

n a v i g ati o n p r o j e c t s f o r c a u si n g t h e p r o ble m s. I f t h e e x p e n se o f p r o ­

t e c ti o n a n d s t a b ili z a ti o n of ri v e r b a n k s ha d t o be b or n e b y b ar g e 

o p e r at o r s a n d r e fl e c t e d I n t h e i r r a t e s t r u c t u r e , t h e n s o me o f t h e 

ec o n o m ic a tt r a c ti v e n e s s o f n a v i g ati o n w o ul d d i s a p p e a r.

A n ot h er Ill u s t r a ti o n of ba n k e r o si o n pr o b le m s ca u se d b y 

n a v i g ati o n p r o j e c t s ca n be se e n b y l o o ki n g a t t h e M is s o u ri R i v e r 

a n d t h e o p e r ati o n o f t h e m al nste m da ms f o r n a vi g ati o n p u r p o s e s.

W at er I s st o r e d I n t h e M is s o uri m al nste m r e s e r v o i r s f o r a n u m b er 

of p u r p o s e s, o n e of w hic h I s t o p r o vi d e w ate r f o r d o w nstre a m n a v ig a ti o n. H o we ve r, d ra m ati c pr o bl e m s c a n o o o ur w he n e x tr a st o r a g e 

f o r n a v i g ati o n r e l e a s e s I s m ai n ta i n e d. D uri n g v e r y w et y e a r s 

t h e C or ps d oe s n ot ha ve t h e e x tr a st o r a g e c a p a cit y I n I t s r e s e r v o i r s 

t o h ol d fl o o d w ate rs b ec a u se I t h as b ee n k e e pi n g w ate r f o r n a v i g ati o n 

p u r p o s e s. T h u s, e x c e s si v el y hi g h c o n tr o ll e d r a t e 3 o f r e l e a s e ha ve 

t o be ma de w hic h g r e a tl y e x a c e r b ate d o w nstre a m e r o si o n p r o ble m s.

T he C or ps cla i m s I n It s A u g u st, 1 9 7 5 » r e p o rt o n t h e o p e r ati o n o f t h e 

m al nste m r e s e r v o i r s d u ri n g t h i s y e a r ’s fl o o d t h a t " U n n ec es sa r y dr a w ­

d o w n of st o r a g e w o ul d s u b j e ct t h e C or p s t o c riti c i s m fr o m ma n y v a rie d 

I n t e r e s t s ... " We t h i n k t h a t t h e c riti c i s m w o ul d c o me fr o m t h e 

d o w nstre a m n a v i g ati o n I n t e r e st s w h o r e q u ir e t h e e x tr a st o r a g e t o 

f l o a t b a r g e s d u ri n g t h e n a vi g ati o n s e a s o n. T his y e a r ’ s 6 0, 0 0 0 c f s 

r e l e a s e fr o m Ga vl n B P oi n t Da m e x ce e d s t h e p re vi o u s hi g h of 5 3, 0 0 0 c f s 

w hi c h o c c u rr e d I n 1 9 6 9 wit h a tt e n d a n t ba n k e r o si o n p r o ble m s. S u bs e q u e nt t o t h e 1 9 6 9 r e l e a s e s t h e P u bli c W or k s C o m mitt ee s ha ve l o o k e d 

I nt o ba n k e r o si o n pr o b le m s a n d i n cl u d e d I n t h e 1 9? U W at er R e s o urc es 

De vel o p m e nt A ct s o me p r o vis i o n f o r a s si st a n c e . H er e a g ai n , h o w e v er, 

t h e C o m mitt ee s di d n ot p o i n t t h e fi n g e r o f bl a m e a t n a v i g ati o n.
1 0 1 8

5.

E n vir o n m e nt al O bj e cti o n s t o B ar g e C a n als. A n y tr a n s p or t a ti o n c o rri d or — w h et h e r 

i t i s a hi g h w a y, a r a il r o a d , a pi p eli n ej or a c a n al — w il l d o s o me c n vir o n n e nt al 

d a m a g e. W h e n m a ki n g d e cisi o n s o n t h e c o ns tr u c ti o n of n e w tr a n s p or t a ti o n c o rr i d o rs, 

pl a n n er s m ust c o n si d er t h e d a m ag e w hi c h s u c h a c o rr i d o r w il l d o. Hi g h w ays a n d 

c a n al c o rr i d o rs a r c g e n e r all y muc h m or e d e st r u ct i v e t h a n r a il r o a d c o rri d or s si n c e 

t h e y r e q uir e mor e l a n d. F urt h er m o r e, a ll t h e m aj o r r a il r o a d c o rri d or s h a v e al r e a d y 

b e o n b u il t s o w h at e v er e n vir o n m e nt al d a ma g e t h es e r o ut es h a v e c a us e d is a f a i t 

a c c o m pli. Of pri m e c o n c er n t o c o ns er v ati o n or g a ni z a ti o n s t o d a y ar e c e rt ai n c a n al 

p r oj e c ts i n a d v a n c e d st a g es of pl a n ni n g or i n e a rl y st a g es of c o ns tr u c ti o n.

Wo ur g e t h e C o m mitt e e t o c o n d u ct s p e cif i c o v er si g h t i n t o t h e f oll o wi n g c a n al 

p r oj e c ts t o d et er mi n e i f s u c h pr oj e c ts c a n wi t h st a n d c u rr e n t e c o n o mi c t e s ts of 

v i a b ili t y , w h et h er s u c h pr oj e c ts w il l pr o vi d e a n e e d e d tr a n s p or t a ti o n s e r v i c e 

t o t h e n a ti o n, w h et h er t h e pr oj e c ts’ e n vi r o n m e nt al i m p a ct s' will b e t o o s o v e r e t o 

j u s ti f y c o nti n u a ti o n, a n d w h et h er alt e r n ati v e tr a n s p o rt ati o n I n v est m e nt s w ill n ot 

b e m or e i n t h e p u bli c i n t e r e st.

L o c k a n d Da m 2 6 — t h e C o m mitte e w il l b e h e ari n g s u b st a n ti al t esti m o n y o n t h is 

p r o j e c t, s o i t w il l b o s u ff i c i e n t t o n ot e o ur vi e w v e r y b ri e fl y. We ar e w illi n g 

t o s u p p or t l e gis l a ti o n w hi c h w o ul d all o w f o r t h e r e p air of t h e e xis ti n g st r u ct ur e 

b u t s tr o n gl y o p p os e a n y m eas ur e w hi c h w o ul d pr o vi d e a d di ti o n al l o c J d n g c a p a ci t y 

t h r o u g h t h i s p oi nt. T h o U pp er M is si ssi p pi is c a rr yi n g j u s t a b o ut as gr e a t a 

v ol u m e o f t r a f fi c as i t c a n st a n d wit h o u t s e ri o u s l o s 3 of e n vir o n m e nt al v al u es. 

I n d e e d, t h o S t a t e of Wis c o nsi n fil e d a l a w s u it l a s t y e ar b e c a u s e dr e d gi n g t o 

m a i nt ai n t h e e xi st i n g 9-f o o t c h a n n el f o r c u rr e n t ri v e r t r a f fi c w as h a vi n g s u c h 

a d e v a s t a ti n g i m p a ct o n i m p ort a nt a q u a ti c ar e a s al o n g t h o ri v e r. T h e att e m pt 

t o b uil d a l a r g e n e w st r u ct ur e t o a c c o m m od at e a 1 2 -l o o t c h a n n el a n d o f ot trf ol d 

i n cr e a s e i n ri v e r t r a ffi c m ust n ot s u c c e e d i f t h e U p p er M is si ssi p pi i s t o s u r vi v e 

as a r e s o u r c e wit h m ulti pl e us es.

T ri n it y Ri v er B ar g e C a nal- -i n a r ef er e n d u m o n t h o p r o j e ct i n T e x as i n 1 9 7 3 a m aj orit y 

of t h e v o t e rs a n u e m aj orit y of t h o c o u n ti e s I n v ol v e d i n t h e r ef er e n d u m t ur n e d d o w n 

t h o p r o j e c t a n d s u b s e q u e n tl y t h e A p pr o pri ati o n s C o m mitt e e i n t h e H o us e di r e ct e d 

t h e C o r ps n o t t o s p e n d a n y n or e f u n ds o n t h o c a n al. T o o ur a maz e m e nt we di s c o v er e d 

t h is y e a r t h a t t h e C or ps h as b e e n g oi n g ri g h t a h e a d wi t h pl a ns f c r t h e C a n al a n d 

a n d i s c o nt e m pl ati n g a 9 3 - nil e l o n g c h a n n el i n t h e u p p er e n d of t h e T o n n es p e o 

C ol o n y R es er v o ir. S u c h a pr o p o s al i s si m pl y a bl a t a n t att e m p t t c s n e a k t h e 

p r o j e c t p a st t h e C o n gr ess a n d p a st t h e m aj orit y of t h e v o t e rs w h o d e cis i v el y 

r ej e c t e d t h e p r o j e ct.

B a y o us C h er. e, B c o nf, a n d Bl a c k — t h is p r oj e ct w ill c u t a bi g c h a n n el t hr o u g h t h e 

E c & r t o i o n e of t h e " n ati o n’ s gr o a t s w a m ps, a ll f o r t h e b e n ef it of a c o u pl e ci o il 

ri g m a n u f a c t u r e rs w h o ar e aft e r a q ui c k er r o u t o t o g e t t h eir ri g s o u t t o t h e 

G ulf o f M e xi c o. E as y st a t e a n d f e d er al a g e n ci e s ar e o p p os e d t o t h e d e st r u cti o n 

of m a ri n e l i f e t h at w o ul d b e o c c a si o n e d b y t h is p r o j e c t. He ur g e t h e C o m mitt e e 

t o l o o k a t t h e C or ps.’ p er si st e n t p us hi n g of s u c h a n u nj u st ifi a bl e p r o j e ct i n 

t h o f a c e o f a l o ss of i m p ort a nt c o m m er ci al fis h e ri e s.
1 0 1 9

6.

iss o u ri Ri v er N a vi g ati o n. We ha ve p r e s e nte d I n f o r m ati o n a b o ut t h e 

e r o si o n pr o b le m s w hi c h ac c o m p a n y t h e o p e r ati o n of t h e m ai nste m 

M is s o u ri r e s e r v o ir s t o p r o vi d e n a vi g ati o n r e l e a s e s. We n o w wis h 

t o p r e s e n t I n f o r m ati o n a b o ut t h e ec o n o mic a n d e n vir o n m e nta l a s p e ots 

o f t h e M is s o u ri B l v e r N a vi g ati o n P r o j e ct w it h t h e e n d I n mi n d of 

h a vi n g t h e C o m mitt ee c o n d u ct o v e r si g h t h e a ri n g s o n t h e p o s s i b ilit y 

o f te r m i n ati n g f e d e r a l a s si st a n c e f o r t h i s p r o j e c t.

T he n a vi g ati o n p r o j e c t o n t h e M is s o u ri ha s ha d a c o n str u cti o n 

c o st of a b o ut § 4 0 0 m illi o n w it h a n a d d iti o n a l $ 2 0 0 m il li o n h a vi n g 

b ee n s p e nt f o r o p e r ati o n a n d m ai n te n a n c e. T h e C or ps p r e - a u t h o ri z a ti o n 

e sti m ate of b ar g e t r a f f i c f o r t h e 9 - f o o t c h a n n el was 1 2 m illi o n t o n s 

a n n u all y, b ut 5 y e a r s a ft e r a u t h o ri z a ti o n o f t h e p r o j e c t a n d a 3 0 0 % 

I n c re a s e I n t h e e sti m ate d c o st t h e C or ps re d u ce d t h e t r a f f i c e sti m ate 

t o 5 m il li o n t o n s a n n u all y a n d s zi d t h a t t h i s v ol u m e w o ul d be re a c h e d 

b y 1 9 8 0. B y 1 9 6 4 t r a f f i c ha d re a c h e d 2. 5 m illi o n t o n s a n n u all y a n d 

h a s re m ai n e d r o u g hl y a t t h i s l e v e l t h r o u g h 1 9 7 4. T he C or ps e sti m ate d 

t h e s a vi n g s t o s hi p p e r s a t $ 1 p er t o n p ri o r t o a u t h o ri z a ti o n . T he 

a n n u al o p e r ati o n a n d m ai nte n a n ce o o st f o r t h e p r o j e c t, h o w e v er, ha s 

I n c re a s e d s h o c ki n gl y t o al m o st $ 6 p e r t o n. C l e a rl y, ec o n o mic c o n ­

si d e r a ti o n s al o n e s u g g e st t h a t f e d e r a l ai d f o r t h i s p r o j e c t s h o ul d 

be dis c o nti n u e d.

I n a d d it i o n t o t h o ec o n o mic c a e e a g ai n st c o nti n ui n g wit h t h i s 

p r o j e c t, t h o r a I s al s o e vi d e n c e t h a t t h i s p r o j e c t h a s be e n v er y 

da m a gi n g t o t n e M is s o u ri R i v e r e o o n y st e m . A r e c e n t r e p o rt b y t h e 

M is s o u ri D e p art m e n t o f C o n s e r v ati o n e n titl e d " C ha n g es I n t h o C h a n n el 

o f t h e L o we r M is s o u ri R i v er a n d E f f e c t s o n Pis h a n d W il d lif e " d e s c ri b e s 

a v a ri e t y of a d v ers e e n vir o n m e nta l I m p ac ts ste m mi n g fr o m ma n’ s 

m a ni p ula ti o n of t h e ri v e r f o r n a v i g ati o n. T he r e p o rt p o i n ts o ut 

t h a t t h e r e h a s b e e n a d ra m ati c d e c re a s e I n t h o sl z o of t h e c o m m er ci al 

f i s h c atc h w it h o nl y 3 * * 0 » 0 0 0 p o u n ds b ei n g c a u g ht i n 1 9 6 3 c o m p ar e d 

w it h 1, 7 2 4, 0 0 0 p o u n ds I n 1 9 4 7. T he r e p o rt n o t e s:

" Ma n y f a c t o r s ma y e f f e c t t h e c o m m er ci al c atc h I n a b o d y 

o f w ate r, b ut t h o o ne st e a d y, c o n si st e n t c h a n ge I n t h e 

M is s o u ri R i v er h a s be e n t n e r e d u cti o n a n a d e t e ri o r a ti o n 

of f i s h h a b it a t r e s u lti n g fr o m t h o n a v i g ati o n a n d s t a b il ­

i z a ti o n p r o j e c t. " ( p . 2 6 )

W at er s u rf a c e o n t h e l o w er M is s o u ri h a s be e n re d u c e d b y 5 0 % s s n a vi g a ­

ti o n w o r k s ha ve r e s t r i c t e d t h o c h a n n el a n d ca us c G t h e l o s s o f m ore 

t h a n 1 0 0 I sl a n d s. T he se I sla n d s p r o vi d e d v al u a ble fl 3 h a n d w il d li f e 

h a b it a t a 3 w ell a p r e c r e a ti o n a l o p p o rt u n iti e s. T he r e p o rt c o n ti n u e s: 

" T h u s, I t se e m s t h a t t h e fi s h p o p u l ati o n o f t h e ri v e r 

h as b ee n d o mi n at e d b y a fe w s p e cie s a d a nte d t o s u r v i v a l 

I n t h e s w ift, t u r b i d str e a m a n a t h a t d l v o r slt y o f t h e 

p o p ula ti o n h a s d e cli n e d a s h a b it a t h a s bec o m e l e s s v a rie d 

a n d d i v e r s e. S p e cta c u l a rl y la r g e s p ec i m e n s o f bl u e c a t ­

f i s h , la k e st u r g e o n a n d p a d d le fls h ha ve n ot be e n ta k e n 

f o r ma n y y e a r s. "

C o n s o r v atl o n ls ts a r e n ot al o n e I n c r iti c i z i n g t h e C or ps a c ti v iti e s 

o n t h e M is s o u ri R i v e r. O n J ul y 2, 1 9 5 2, C o n g re ss m a n K e r r's S u bc o m mitt ee 

o n Ar my C i v il F u n cti o n s p r e s e nte d I t s R e p o rt o n t h o M is s o u ri Ri v er 

C h a n n el S t a b ili z a ti o n a n d N a vi g ati o n P r o j e ct t o t h e H o use A p p r o p ria ti o n s 

C o m mitte e. T he R e p o rt c o n d u cte d:

" I t I s a p p a r e nt t h a t t h e C or ps o f E n gi n e ers h a s tr e a t e d 

t h e k n o w n f a c t s wit h r e s p o o t t o t h i s M is s o u ri Ri v er p r o j e c t

5 4 - 2 3 9 0 - 7 5 - 8 5
1 0 2 0

os t li g h tl y a n d, I n s o ma I n st a n c e s, r e c k l e s sl y . T he 

c o m mitte e I s t h o r o u g hl y d i s s a ti s fi e d w it h t h e C o r p s’ 

p erf o r m a n c e, a n d f e e l s t h a t s u c h s u b s t a n ti a l d o u bt 

h a s b ee n c a st u p o n t h e C o r p s ’ m et h o ds t h a t t h e i r r e ­

s u lt s a r e h a r dl y w ort h y o f c r e d e n c e."

F u rt h e r m o re , t h e C o m mitte e’ s r e p o rt pr o d u ce d e vi d e n c e t h a t t h i s 

M is s o u ri R i v er C h a n n el S t a b ili z a ti o n a n d N a vi g ati o n P r o j e ct ha d 

a g g ra v ate d fl o o di n g pr o ble m s. T he E n vir o n m e nta l P oli c y C e nte r 

f e e l s t h a t I n vi e w o f t h e f a c t s p r e s e nte d h e re I t I s ti m e t o ta k e 

a cti o n t o e n d t h e s e n s el e s s w as te o f ta x d o ll a r s o n M is s o u ri R i v er 

n a v i g ati o n.

T e n n es se e- T o m bIr b ce W ate r w a y. T his c a n al p r o j e c t I s t h e se c o n d m ost 

e x p e n si v e a ut h o riz e d C or ps p r o j e c t I n t h e n a ti o n. Alt h o u g h t h e 

Te n n - T o u Water wa y h a s tr e m e n d o u sl y str o n g C o n g re s si o n al s u p p o rt, we 

b eli e v e t h a t t h e r e a r e o v er w hel m i n g r e a s o n s w h y t h e P u bli c W or ks 

C o m mitt ee s I n t h e H o use a n d S e n ate s h o ul d h ol d o v e r si g h t h e a ri n g s 

o n t h e d e s i r a b ilit y o f c o nti n ui n g wit h t h e p r o j e c t. F i r s t, c o st s 

ha ve e s c al at e d al m o st o ut o f si g h t I n t h e p a st f o u r y e ars a n d n o w 

e x ce e d o n e b illi o n d o ll a r s. D e s pit e t h e t ri p li n g I n c o st s t h e C or ps 

h a s n o e vi d e n c e t h a t t h e p r o j e c t b e n e fit s ha ve i n c r e a s e d I n t h e sa me 

p r o p o rti o n. T he C or p s si m pl y as s u m es t h a t t h e y d o. S ec o n d, t h e r e 

a r e n o fl o o d o o n tr o l b e n e fit s a n d n o h y dr o p o w er b e n e fit s fr o m t h i s 

p r o j e c t. T his g r s a t s u m of m o ne y I s b ei n g s p e nt o n a b ar g e c a n al 

w hl o h ma y a g g r a v ate fl o o d p r o ble m s. T hir d, t h e ne e d f o r a n a d d iti o n a l 

t r a n s p o rt a ti o n c o r ri d o r I s hi g hl y q u e sti o n a ble si n c e t h e r a il r o a d s 

ha ve I n e x is te n c e t h e b a clc r o a d b e d c a n d ri g h t - o f- w a y s t o h a n dle 

a l l t h e t r a f f i c t h a t w o ul d m o ve o v er t h e w at er w a y. F o u rt h , t h e C or ps 

ha ve t o m o ve 2 5 8 m illi o n c u bic y ar d s o f e a rt h t o b uil d t h i s p r o j e c t.

T o li n k t h e T e n n e ss ee a n d T o m bl g b ee R i v ers t h e C or ps ha s t o c ut 

t h r o u g h a m o u n tai n ri d g e. At t h i s ti m e t h e C or ps s t i l l h a s n o s a t i s ­

f a ct o r y a n s w er as t o w h at t o d o wit h t h e d i r t. T he pla n t o f i l l m or e 

t h a n 4 0 v all e y s w it h t h i s s t e r il e u n p r o d u cti v e e a rt h t h a t w ill c o me 

o ut of t h e di v i d e c u t I s fr o u g ht w it h d i f f i c u lti e s of s e v e re e r o si o n 

a n d d i f f i c u lt m ai n te n a n c e, a s w ell a s d e str u c ti v e o f t h e e x i sti n g 

la n d b a s e.

I n a d d iti o n t o t h e ec o n o mic a n d e n vir o n m e nta l ar g u m e n ts a g ai n st 

c o nti n ui n g wit h t h i s p r o je ct, t h o r e a r e t w o t e lli n g q u e sti o n s t h a t 

C o n gre ss m ust c o n si d e r. F i r s t, w h o I s g oi n g t o pa y t h e l o c a l c o st 

s h a re w hi c h n o w a m o u nt s t o m ore t h a n £J 3 8 m il li o n ? T he a f f e cte d 

c o u nti e s I n N o rt h e a st M is sis si p p i a r e a m o n g t h e n a ti o n's p o o r e st.

I t I s q u e sti o n a ble w h ot h er t h e y w ill be a ble t o m o ot t h e s e c o st s.

I t I s al s o q u e sti o n a ble w he t h or t h e e n ti r e s t a t e o f M is sis si p pi w ill 

be w illi n g t o ta k e o n t h o s e a d d iti o n al c o st s w he n t h e r e I s a g r e at 

pr o b le m sta te w i d e o v e r I n a d e q u ate f u n di n g of t e a c h e r s a n d e d u c ati o n al 

f a c i l i t i e s . T he p r o s p e ct t h a t m ust be fa c e d I f t h a t t h e U. S. ta x p a y e r 

w ill be f o rc e d t o c o v e r t h e l o c a l s h a r e o f t h i s m u ui u ot h p r o j e c t.

Se o o n d, a b a si c q u e sti o n of B o oia l J u sti c e a ri s e s o v er t h e 

e x p e n dit u re of m ore t h a n a b illi o n d o ll a r s t o p ut a b ar g e c a n al 

t h r o u g h a v er y p o o r a r e a of t h e c o u ntr y, a n a r e a w hi c h c e rt a i n l y 

h a s m u o h m or e c o m p elli n g n ee d s t h a n a b ar g o c a n a l. T he p r o j e c t I s
1 0 2 1

8.

i n g c o n str u ct e d t h r o u g h s o me o o u n tl e s, t h e m aj o rit y o f w h ose 

r e si d e n t s a r e B la c k. Yet t h e r e a r e n o Bla c k s o n t h e Te n n- T o m 

Water wa y D e v el o p m e nt A ut h o rit y t o h el p I n s u re t h a t pla n ni n g w o ul d 

c o n tri b u t e t o t h e b ett e r m e nt o f Bla c k s a n d p o o r p e o ple I n t h e a r e a. 

O r g a niz ati o n s s p e a ki n g o n b e h alf of Bla c k s a n d p o o r p e o ple I n t h e 

S o ut h ha ve w ritt e n t o t h e C o n g r e s si o n al A p p r o p ria ti o n s C o m mitt ee s 

e x p r e s si n g t h e i r dis a p p r o v al o v er t h e tr e at m e nt of m i n o riti e s a n d 

o b j e cti n g t o t h e si n g u l a r la c k o f I n p ut w hi c h t h e w at er w a y d e v el o p ­

m e nt p e o ple we re r e c ei v i n g fr o m B la c k s. G re e n e C o u nt y, Ala ba m a,

I s o n e o f t h e n a ti o n ’ s p o o r e st c o u n ti e s, y et I t h a s b ar g e c a n als 

r u n ni n g al o n g t w o b o r d e r s. I f c a n als w er e a n y g u a r a nte e o f p r o s p e r ­

it y , t h e n h o w c m G re e n e C o u nt y ’s f a t e be e x pla i n e d. We b ell e v o 

t h a t t h e C o n gre ss s h o ul d ta k e a cl o s e l o o k a t t h e s o c i a l I n j u sti c e 

a n d d i s t o rti o n o f p r i o r iti e s I n v ol v e d I n t h e m as si v e e x p e n dit u re 

of m o nie s o n t h i s p r o j e c t.
1 0 2 2

C A C T e c h n i c a l Me m o ra n d u m N o. 2 0

E N E R G Y I N T E N S I T Y O F B A R G E A N D R AI L F R EI G H T H A U LI N G

B y

A nt h o n y V. S e b al d

C e n t e r f o r A d v a n c e d C o m p uta ti o n 

U n i v e r s it y o f I l l i n o i s a t U r b a n a - C h a m p ai g n 

U r b a n a, I l l i n o i s 6l 8 0 1

M a y, 1 9 7
1 0 2 3

I n tr o d u cti o n

I n a n att e m pt t o q u a nti f y m ore o f t h e t o t a l s y st e m c o sts a s s o cia te d 

wit h tr a n s p o rta ti o n a lt e r n a ti v e s, st u d ie s ar e c o nti n ui n g i n t h e a r e a o f 

e n er g y c o st p e r t o n mile f o r a lt e r n a t e f r ei g h t a n d tr a n s p o rt a ti o n m o d es.

I n li g h t o f t h e p re s e nt e n er g y d i f f i c u lti e s , e n er g y e f fi cie n c y i s b e gi n ni n g 

t o ha ve a si g n ifi c a n t ec o n o mic i m pa ct o n t h e v ari o u s m o des. E n er g y c o st 

p e r t o n mil e i s als o a n i m p o rt a nt p ara m ete r i n d ete r m i n i n g t h e t o t a l e n vir o n m e ntal i m pa ct o f c o m peti n g tr a n s p o rt a ti o n m o d es. T hi s p a p er p r e s e nts 

r e s u lt s o f a n e n er g y c o m pa ris o n p er t o n mil e o f c o m peti n g r a il f r ei g h t vs. 

i n la n d b ar g e f r e i g h t, i n cl u di n g t h e e f f e c t s o f c ir c u it y a n d t h e us e o f pr o ba ble c o m peti n g r a il li n e s i n ste a d o f n ati o n al a v er a g e r a il d ata.

T he Pr o ble m

T he b a sic u n d erl yi n g d i f fi c u lt y i s t h at o f c o n str u cti n g a n e q uit a ble 

fra me o f re fe r e n c e f o r c o m p ari n g t h e t w o m o d es. R ail r o a d s h a ul s o me f r ei g h t 

al o n g t h e b ar g e r o ute s a n d s o me o v er t h e c o nti n e nta l di v i d e. T he y h a ul i n 

u nit t r a i n s d e dic ate d t o a si n g le c o m m o dit y ( e . g ., c o al) o v er a fi x e d l o n g 

dis ta n c e t r i p ( e . g ., L o u is v il le , K y. t o He w O rl e a n s) a n d t h e y als o ha ul i n 

mi xe d t r a i n s w hic h st o p a n d s w it c h fr e q u e ntl y. F i n all y, t h e r ail r o a d s als o 

c o m p ete wit h t h e tr u c ki n g i n d u str y a n d h a ul f r ei g h t (i n tr u c k t r a il e r s ) o n 

" p i g g y- b ac k " s y st e m s as w ell as i n t h e m ore c o n v e n ti o n al r a il c a r s. T he 

w ate r tr a n s p o rta ti o n i n d u str y a p p ea rs t o be e v e n m ore h ete r o g e n e o u s t h a n 

r a il. D o m estic w ate r tr a n s p o rt ati o n i n cl u d e s:

1) I n la n d water wa ys ( M is sis si p pi ri v e r s y st e m a n d t ri b u t a ri e s )

2) G ulf a n d A tl a nti c i n tr a c o a st a l water w a y s

3) La ke wi se o r Gr eat La k es tr a n s p o rta ti o n

1*) C oa st wis e o r de e p se a tr a n s p o rt ati o n ( Ne w O rl ea ns t o Ne w Y o r k,
1 0 2 4

ert o Ri c o t o Ne w O rl e a n s, e t c .)

E ve n w it hi n t h e i n la n d a n d i n tr a c o a st a l w at er w a y s s y st e m t h e r e i s a la r g e 

n u m ber (l 8 0 0 o n t h e M is sis si p pi- G ulf s y ste m ) ^ o f b ar g e fi r m s r a n gi n g fr o m 

fa mil y o w ne d t u g s t o la r g e m ulti- c o m m o d it y f r ei g h t h a u le r s. * Ba r g e f r ei g h t 

i s m o ve d o n la r g e c a p a cit y, l o n g dis ta n c e d e dic ate d t o ws wit h t h e p o we r 

u n it w aiti n g f o r l o a di n g a n d u nl o a di n g. I t i s als o m o ve d o n m ulti-c o m m o d it y 

t o w s i n w hic h t h e p o we r u nit c o nti n u all y m o ves w hil e s h ore b as e d t u g s c o nn e ct a n d dis c o n n e ct b ar g e s a n d b ri n g s u p pli e s. T h us g e n e r al, wi d el y a p p li ­

c a b le q u e sti o n s ca n be a n s w er e d l e s s p r e ci s el y t h a n s p e cifi c o n es.

Pre vi o u s r e s u lt s i n t h i s a re a ( 2 ), ( 3 ), ( M ha ve be e n li m ite d t o r a ti o s 

o f t o t a l d o m esti c f u el us e t o t o t a l d o m esti c t o n m il e s. T he p r e s e nt st u d y 

gi v es m ore p r e ci s e r e s u lt s i n t h a t - it ta k e s i n t o ac c o u n t t w o ot h e r i m p o rt a n t v a ria b le s. T he e n er ®r i n t e n sit y p e r t o n mil e c alc u la ti o n ta k e s i nt o 

ac c o u n t t h e a ct u al e n er g y e f fi c i e n c i e s o f t h e m o st p r o b a ble r a il li n e c o mp e tit o r o f t h e b ar g e s o n ea c h p a rti c u l a r h a ul a n d als o i n cl u d e s t h e r e l a ti v e 

c ir c u iti e s o f t h e t w o m o des. C ir c uit y ( d e fi n e d as t h e m o d al dif f e r e n c e i n 

dis ta n c e t r a v e ll e d f o r a n e q ui v ale nt h a ul) i s i m p o rt a nt si n c e a t o n m o ve d 

fr o m Ne w O rl ea ns t o C hica g o w ill n ot tr a v e l t h e sa me n u m ber o f m il e s i n

b ot h m o de s.

Met h o d ol o g y

D ue t o re s o u rc e li m it a ti o n s, t h i s st u d y was li m ite d t o f r ei g h t t r a f f i c 

o n t h e G ul f I n tr a c o a st al Water wa y a n d t h e M is sis si p pi Ri v er wit h a ll it s 

t ri b u t a ri e s. U si n g t h e 1 9 7 1 a ct u al b ar g e t r a f f i c d ata ( 5 ) ( 6 ), a l i s t o f 

2 9 0 a p pr o x i m at e o ri g i n - d e sti n ati o n ( O D) p air s was c o m pile d. D at a o n t o n n a g e

I n 1 9 7 1, 6. 6 % o f t h e d o m esti c t o n mil e t r a f f i c was r e g ula te d b y t h e I C C ( 5 )
1 0 2 5

r ri e d f o r ea c h O D p a ir i n ea c h o f fi v e b ul k c o m m o diti es ( a g ri c u lt u r a l 

o ut p ut, l u m be r, p etr ole u m , c o al a n d c h e m ic als ) was als o c o m pile d. T h es e 

O D t r a f f i c p air s are a p pr o x i m at e si n c e t h e d ata i n r e fe r e n c e ( 5 ) i s o nl ydis a g g re g ate d t o t h e r e gi o n al l e v e l. P o rt s w it hi n t h e re gi o n al l e v el we re

c h os e n b as e d o n r e l a ti v e p e r c e nts o f c orr e s p o n di n g t r a f f i c h a n dle d at t h e 

m aj or p o rts li s t e d i n r e fe r e n c e ( 6 ).

R ail a n d b ar g e r o uti n g s we re t h e n g e n era te d f o r ea c h O D p a ir. I n t h e 

b ar g e c a s e, t h e s h o rt e st r o uti n g was u se d. I n t h e r a il c a s e, a b ala n c e o f

mi ni m u m dis ta n c e a n d mi ni m u m n u m ber o f r a il c a r ri e r s was us e d i n ea c h

r o uti n g. Mile a g es i n ea c h ca se we re o bta i n e d fr o m ( 7 ) a n d ( 8 ). O D t o n 

m il e s ( T m) ar e gi ve n b y t h e p r o d u ct o f t h e t o n n a g e a n d r e s p e cti v e r o uti n g

le n gt h f o r ea c h O D p a ir. R ail e n erj ^ r f o r ea c h O D t r i p was c alc ula te d b y 

( 9 )

s u n ni n g t h e pr o d u ct o f e n er g y i n t e n sit y ( B t u/l bi ) a n d mil ea ge f o r ea c h 

r a il r o a d's p o rti o n o f t h e t r i p . Ba r g e e n e rt y f o r ea c h t r i p was ass u m e d c o nst a n t as e x pla i n e d i n t h e n e xt s e cti o n.

T he c o m p uter pr o g ra m e v al u ate d t h e o v e r all i n t e n s iti e s ( Bt u/ T m) f o r 

ea c h m o de u si n g t h e f o ll o w i n g w ei g hte d s u ms:

R ail ( Bt u/I bi ) »

T m t r i p

Bt u

Ba r g e ( Bt u/ T m) - ( ^ )

A V G

t r i p

• 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2.

y Ba r ge T m,

T he c ir c u it y w ei g hti n g f a ct o r

t r i p

Z Bar ge T m

i s als o i m p o rt a nt i n i t s o wn
1 0 2 6

g h t si n c e c h a n ge s i n t h e e sti m ate s o f e n er g y e f fi cie n c y p e r T o n Mile o f 

e it h e r t h e r a il o r b ar g e m o de ca n be e a sil y i n cl u d e d i n t h e r e s u lt s o f t h i s 

st u d y b y si m pl y m ulti p l y i n g t h e b ar g e e ffic ie n c y b y t h e a b o v e d e fi n e d c i r ­

c uit y f a ct o r. T he c ir c u it y f a ct o r w ill re mai n st a b le u n til e it h e r m aj or 

t r a f f i c p att e r n c h a n ge s o r m aj or r a il or water wa y c o n str u cti o n o c c u rs.

R e s ult s

T h er e ar e t w o p ri n ci p al r e s u lt s o f t h i s st u d y. F i r s t, t h e w ei g hte d 

a v er a g e e n er g y i n t e n sit y ( E l) o f t h a t p o rt i o n o f t h e r a il i n d u str y w hic h c o mp ete s wit h t h e b ar g e li n e s ( o n t h e G ul f a n d M is sis si p pi wit h t ri b u t a ri e s ) 

was f o u n d t o be 6 3 9 o r 7 1 1 Bt u/ T m de pe n di n g u p o n w h et h er o ne i n cl u d e s o r n ot

t h e f u el us e d f o r y a r d s w it c hi n g. B ot h n u m bers are i n cl u d e d i n t h e c o m pa ri- 

( 1 0

s o n si n c e t h e b ar g e s w it c hi n g a n d t o w ma ke u p i s s o m eti m es d o n e o n c o ntr a ct 

( e . g ., t u g s hit c h a n d u n hit c h b ar g e s w hil e t h e mai n t o w c o nti n u e s m o vi n g ).

It i s t h e r e f o r e u n cle a r h o w m uc h o f t h e s w it c hi n g a n d t o w ma ke u p f u el i s i n ­

cl u d e d i n t h e b ar g e d ir e c t El fi g u r e q u ot e d i n T a ble 1. T he r a il E l's ar e

ft

w ei g hte d b y 1 9 7 1 w ate r b or n e c o m merce s t a ti s ti c s , a n d i n cl u d e t h e 1 9 7 1 ac ­

t u al e n er g y i n t e n siti e s ( Bt u/ T m ) e x p erie n c e d b y ea c h p e rti n e n t r a il li n e as 

e x pla i n e d i n t h e p re vi o u s s e cti o n. T he se c o n d b a sic r e s u lt i s t h e r e l a ti v e 

c ir c u it y o f t h e r a il a n d b ar g e m o des f o r t h e 1 9 7 1 water w a y c o m merce t r a f f i c 

o n t h e G ul f a n d M is sis si p pi w it h t ri b u t a ri e s. On t h e a v era g e, b ar g e t o n 

m il e s were 1. 3 8 ti m e s as g re at as t h e e q ui v ale nt c o m peti n g r a il t o n m il e s. 

A cc e p ti n g f o r a m o me nt t h a t t h e c o m p aris o n o f a n e n ti r e r a il li n e's El wit h

t h a t o f t h e a v er a g e b ar g e li n e i s a v ali d o n e, t h e d e ri v e d r a il El i s ve r y 

( 9 )

a c c u ra te d ue b ot h t o t h e a v a il a b ilit y o f e x c ell e nt d ata a n d t h e f a irl y

T he a ct u al 1 9 7 1 w ate r b or n e t r a f f i c p att e r n was t h e b a si s f o r c o m p aris o n 

bet w ee n t h e m o de 3.
T AB L E 1

1 9 7 1 R ail v s. Bar ge Qie r p y C o m p ari s o n P ar a m et er s

E N E R G Y I N T E N SI TI E S ( B t u /t o n mi)

R AI L B A R G E

D ir e ct ^

a )

6 3 9- 7 1 1 7 8 5

T ota l

1 3 3 0

( b )

1 6 3 3 ^

R E L A TI VE CI R C UI T Y

.t o n mi

t o n mi

_ b a r g e

- r a il '

1. 0 0 1. 3 8

S A MP LE SI Z E

O ri gi n D e st. P air s 2 9 0

T o n Mile s T ra n s p ort e d 1 0 ®

N ot es: (a ) I n cl u d e s m oti v e f u el o nl y , s u bje ct t o t h e f o ll o wi n g c l a ri fi c a ti o n s:

Bar ge d ir e ct

f u el c o ns u me d

t o n mil e s

w h ere t h e f u el

fi g u re i s f a i rl y i m p re cis e a n d i n cl u d e s h a uli n g 

f u e l, s o me b ut p r o b a bl y n ot a ll s w it c hi n g f u el 

a n d n o m ai nt e n a n ce f u el.

R ail d ir e ct

f u el c o ns u me d

t o n mil es

N eit h er r a il fi g u r e gi v e n i n cl u d e s m ai nt e n a n ce 

f u e l, b ot h i n cl u d e f r ei g h t li n e h a ul f u el.

T he s m all e r fi g u r e e x cl u d e s s w it c hi n g f u el 

w hil e t h e l a r g e r o ne i n cl u d e s a ll s w it c hi n g f u el.

( b ) T h ese fi g u r e s a re s u bje ct t o f a irl y la r g e 

c e rt a i n ti e s.

u n -
1 0 2 8

la g e Ba m ple us e d ( 2 9 0 0 D p air s a n d o n e h u n d re d m illi o n b ar g e T m tr a n s p o rte d ). 

Alt h o u g h t h e c ir c u it y fi g u r e i s s u bje ct t o s o me u n c e rta i n t y d ue t o J u d g me n ­

t a l d e cis i o n s i n t h e c h oic e o f l o g ic al r a il r o u t e, t h e la r g e sa m ple i n v ol v e d 

w o ul d te n d t o re d u ce s u c h u n c e rta i n t y .

T he a b o ve t w o r e s u lt s ar e c o m bi n e d wit h c u rre nt e sti m ate s o f b ar g e 

f r ei g h t El i n T a ble 1. T he st ate d (i n T a ble l ) b ar g e El i s t h e p r o d u ct o f 

H i r st's r e vis e d d ir e ct El a n d t hfe 1. 3 8 c ir c u it y e x pla i n e d a b o v e. A d mitte dl y 

t h e H ir st fi g u r e i s s u bje ct t o la r g e u n c e rt ai n ti e s *, b ut T a ble 1 ca n e a sil y 

be u p d at e d as ne w b ar g e El r a ti o s bec o m e a v ail a b l e. T he ne w Ta bl e 1 b ar g e 

El w o ul d si m pl y e q u al 1. 3 8 ti m es t h e ne w e sti m ate o f b ar g e El. M ore i s s ai d 

a b o ut t h e ba r g e El e sti m ate i n A p pe n di x A.

Wit h a b it m ore e f f o rt, a f a i rl y i m p re cis e e sti m ate o f t o t a l ( d ir e ct 

a n d i n d ir e c t) s y st e m e n er g y f o r b ot h r a il a n d b ar g e ca n be o bta i n e d. T he 

i n d ir e ct e n er g y i n cl u d e s s u c h t h i n g s as e l e c t ri c it y c o ns u me d t o ma ke l o c o ­

m oti v e s, tr a c k a n d f r ei g h t c ars as w ell as t h e p ai n t f o r t h e o f fi c e s o f t h e 

r e s p e cti v e c o m pa ni es. Usi n g a met h o d e x pla i n e d i n A p pe n di x B, o ne o bta i n s 

t h e r e s u lt s li s t e d i n T a ble 1. I t m u st be e m p h asiz e d t h at t h e s e ar e o nl y 

e sti m ate s o f t h e t o t a l e n er g ie s i n v ol v e d. T he y are u s e f u l, h o w e v er, i n t h a t 

t h e y i n d ic ate t h e t o t a l e n er g y c o ns u me d i n p r o vi d i n g a t o n mil e o f r a il o r 

b ar ge tr a n s p o rta ti o n as a b o u t t w ic e t h a t c o ns u me d b y t h e l o c o m oti v e o r t u g ­

b o at al o n e.

F i n all y, i t i s w ort h w hil e t o r et u r n m o m e nta ril y t o t h e s u bje ct o f t h e 

le giti m a c y o f c o m pa ri n g a n e n tir e r a il li n e ’ s El t o t h e a v er a g e b ar g e El

I t i n cl u d e s a ll d o m esti c w ate r tr a n s p o rt a ti o n ( c o a st w is e, la k e wis e a n d i n ­

t e r n a l) a n d i s b a se d o n t h e r o u g h e st, b ut b e st a v ail a b l e, f u el c o ns u m pti o n 

e sti m ate s. Si n ce b ar g e li n e s ar e n u mer o u s ( 1 8 0 0 o n G ulf - M is sis si p pi al o n e ), 

u n re g ula te d f o r t h e m o st p a rt a n d are e xe m pt fr o m f u el t a x , n o a c c u ra te 

f u el c o ns u m pti o n d ata e x i st s.
1 0 2 9

c o peti n g wit h i t. R ail s o u rc e s ar g u e p l a u si b l y t h a t, b y a n d l a r g e, b ar g e 

m o ve m e nts ar e la r g e c o m m o dit y, l o n g, p oi n t t o p oi n t h a uls a n d t h e r e f o r e s h o ul d 

b e c o m par e d t o u nit t r a i n m o ve me nt El, n ot a v er a g e r a il li n e El. T he e n er g y 

i n t e n sit y o f hi g h v ol u me dr y b ul k ca r g o i s si g n i fi c a n tl y l o w er t h a n t h e li n e 

a v er a g e El, i t i s ar g u e d , si n c e:

a) T he g o n d ol a c ars ha ve o ne o f t h e hi g h e st n et t o g r o ss w ei g h t 

r a ti o s o f a ll r a il f r ei g h t c a r s.

b ) A h o m o ge n e o us t r a i n o f g o n d o la c ars ha s a v er y l o w a i r r e s i s ­

ta n c e f a ct o r w he n c o m p are d t o b o x c ar s a n d e s p e ci all y t o pi g g y

ba c k l o a d e d fl a t c a r s.

c) S i g n ific a n tl y l e s s s w it c hi n g f u el i s ne e d e d.

d) U nit t r a i n s g e n e r all y tr a v e l at l o w er s p ee ds t h a n ot h e r f r ei g h t 

t r a i n s.

( 1 2)

Alt h o u g h s o me u nit t r a i n El r e s u lt s ha ve be e n p u bli s h e d i n d ic ati n g a 

ra n g e o f 2 2 6 * * t o 3 5 9 * Bt u /t o n mil e n ot i n cl u di n g c ir c u it y b ut i n cl u di n g 

t h e e m pl y r et u r n t r i p , m uch m or e d ata ne e d s t o be c o ll e ct e d b e f o re a n y 

r e a l c o m pa ris o n s ca n be ma de.

L e v el tr a c k.

• •

S i g n ific a n t gra d e.
1 0 3 0

n cl u si o n s

1) T he 1 9 7 1 a v er a g e b ar g e c ir c u it y ( r a ti o o f b ar g e t o n m il e s t o e q ui v ale nt 

r a il t o n m il e s) o n t h e G ulf - M is sis si p pi s y st e m was 1. 3 8.

2) 1 9 7 1 r a il El (e ne r g y i n t e n sit y ) i n Bt u/ T m f o r li n e s c o m peti n g f o r b ar g e

t r a f f i c was 6 3 9 (e x cl u di n g s w it c hi n g f u el) a n d 7 1 1 (i n cl u di n g a ll s w it c h 

i n g f u e l). T he c o rr e s p o n di n g n ati o n al a v er a g e e n er g y i n t e n sit y was a pp r o xi m ate l y 7 0 0 Bt u/ T m. '

3) T he r e s u lt a n t e n er g y i n t e n sit y c o m pa ris o n i n cl u di n g t h e t w o a b o ve me nti o n e d f a ct o r s a n d t h e b e st a v ail a b le b ar g e e n er g y i n t e n sit y p e r t o n mi 

i n d ic ate s t h a t r a il i s fr o m 1 0 t o 2 3 * l e s s e n er g y i nte n si v e t h a n b a r g e, 

b ut s u c h a f a ct o r i s i n c o n cl u si v e i n vi e w o f t h e la r g e u n c e rta i n t y a ss ocia t e d wit h t h e b ar g e f u el c o ns u m pti o n d ata (s e e A p pe n di x A).

) T he i m p o rt a nt o v e r all q u e st i o n o f m o d al e n er g y e f fi cie n c y ca n o nl y be 

a c c u r ate l y a n s w er e d i f a d e fi n iti v e pr o g ra m o f c o ll e cti o n o f b ar g e f u el 

c o ns u m pti o n d ata is i n iti a t e d . I n t h i s a u t h o r's o pi n i o n, t h e d ata m u st 

be g at h e re d i n s u c h a wa y as t o p er m it r e gi o n al o r n ati o n al w ei g hti n g b y 

a ct u al t r a f f i c c a r ri e d a n d b y t h e c ir c u it y f a ct o r s i n v ol v e d. T hi s mea ns 

f o ll o w i n g a ll ste p s o f t h e pr o ce d ure us e d i n t h i s p a p er wit h t h e e x ce pti o n o f t h e i n cl u si o n o f t h e a ct u al El o f t h e m ost pr o b a ble b ar g e li n e 

( o r a v er a g e o f b ar g e li n e s ) f o r ea c h p o rti o n o f ea c h t r i p . T he d ata 

s h o ul d als o a c c u r ate l y r e fl e c t t h a t p o rti o n o f t h e b ar g e i n d u str y a ss o ­

cia t e d wit h hi gfri v ol u me, b ul k , l o n g dis ta n c e ( o v er 1 0 0 m il e s) h a uli n g.

5) T he m att er o f u n it t r a i n El s h o ul d als o be re s ol v e d f o r b ot h dr y b ul k 

a n d li q u i d b ul k t r a f f i c . T o be m ea ni n g f ul i n a n ati o n al a v er a g e c o mp a ris o n, t h e s e d ata m ust als o be g at h ere d i n s u c h a wa y t h at t h e r a il 

li n e E l's us e d i n t h i s r e p o rt's c al c u l ati o n s c o ul d be re pla c e d b y t h e 

e q ui v ale nt u n it t r a i n El.
1 0 3 1

R E F ER E N CE S

( 1 ) Ke ar ne y: Ma na ge me nt C o n s ult a nts, " D o m estic W at er b o r n e S hi p pi n g 

Ma r k et A n al y sis, E x ec uti v e S u m mar y," p re p are d f o r t h e M ariti m e A d mi ni s t r a ti o n o f t h e U. S. D e p art m e nt o f C o m mer ce, F e b r u ar y 1 9 7 k, p. 1 0.

( 2 ) E ri c H ir st, " B ie r p y I nte n si v e n e s s o f P a ss e n g er a n d F r ei g ht T ra n s p o rt 

M o des 1 9 5 0 - 1 9 7 0, " Oak Ri d ge N ati o n al L a b o ra t o r y , Re p o rt N o. O R N L- N S FE P - k k, A p ril 1 9 7 3.

( 3 ) Ric h ar d A. Ric e, " S yste m E n er g y as a F a ct o r i n C o n si d eri n g F ut u re 

T r a n s p o rta ti o n," p re s e nte d at t h e A m eri ca n S o cie t y o f M ec ha ni cal 

E n gi n ee rs A n n ual M eeti n g, Dec e m ber 1 9 7 0. B y t h e sa me a ut h o r: " S ys ­

te m E n er g y a n d F u t u re T r a n s p o rta ti o n," MI T Te c h n ol o g y Re vie w,

Ja n u ar y 1 9 7 2.

( k ) W illi a m M o oz, " T he E ff e ct o f F u el P ric e I n c re a s e s o n Bie rf y I nte n ­

si v e n e s s o f F re i g ht T ra n s p o rt," Ra n d C o r p o ra ti o n, R e p ort R- 8 0 k- N S F, 

Dec e m b er 1 9 7 1.

( 5 ) U. S. A m y C or ps o f E n gi n e ers, " W at er b o r n e C o m merce o f t h e U nit e d 

S t a t e s, " p a rt 5, 1 9 7 1.

( 6 ) U. S. A m y C or ps o f E n gi n e ers, " W at er b o r n e C o m merce o f t h e U nite d 

S t a t e s, " p a rt 2, 1 9 7 1.

( 7 ) R ail mil ea g es a n d r o ute s we re o bta i n e d fr o m Ha n d y R ail r o a d Atl a s o f 

t h e U nit e d S ta te s ( Ne w Y or k: Ra n d Mc N all y & C o., 1 9 7 1 ).

( 8 ) Ba r ge mil ea g es a n d r o ute s we re o bta i n e d fr o m 1 9 7 2 I n t e r s t a t e P ort 

Ha n d b o o k ( C hi ca g o: R o c k well F. Cl a n c y C o., 1 9 7 2 ).

( 9 ) T he e n er g y i n t e n sit y o f ea c h r a il li n e was c alc u la te d b y di v i d i n g t h e 

li n e' s t o t a l die s el f u el c o ns u m pti o n i n t h e fr ei g h t a n d y ar d s w it c hi n g 

c ate g o rie s ( P ers o n al c o m m u nicati o n w it h Mr. H. W olf, U. S. I n t e r s t a t e 

C o m merce C o m missi o n, A p ril 1 9 7 k ) b y t h e t o t a l re ve n u e t o n m il e s c a r ri e d 

b y t h e li n e ( U. S. I n t e r s t a t e C o m merce C o m missi o n, " T ra n s p o rt S t a ti s ti c s 

i n t h e U nit e d S t a t e s, " p a rt 1, 1 9 7 1, p p. l k 2, l 6 8, I 9 k, 2 2 0, 2 k 6, 2 7 2, 

a n d 2 9 8).

( 1 0) T el e p h o ne c o n v ers ati o n wit h Mr. H ar r y N. C o o k, N ati o n al Water w a ys 

C o nfe re n ce, I n c., A p ril 1 9 7 k.

( 1 1) A l i s t o f re se arc h r e s u lt s i n t h e a re a i s gi ve n i n T a ble A1 o f A p pe n di x 

A. Dr. H i r st's r e vis e d r e s u lt s ( R ef. ( 2 ), A p pe n di x A) were c h os e n h er e 

si n c e:

(a ) Dr. H i r st's a n d Dr. M o oz's re se a rc h are i n d e p e n d e n t n ati o n al 

a v er a g e e sti m ate s o f t o t a l a ct u al f u el c o ns u m pti o n a n d t r a f f i c .

( b ) Alt h o u g h b ot h u se d t h e sa me f u el c o ns u m pti o n e sti m ate s.
1 0 3 2

i o

t h r e a p pe ar s t o be s o me d o u b le c o u nti n g o f b ar g e t o n mil es 

i n Dr. M o oz's r e s u lt s (s e e R ef. ( 2 ), p. 3 8 ).

(c ) Of t h e t w o, Dr. H i r st's r e s u lt s ar e t h e m ost r e c e nt a n d a p pl y 

t o t h e y e a r o f t h i s st u d y ( 1 9 7 1).

( 1 2) Tele p h o n e c o n v ers ati o n wit h Mr. Ge or g e A n d er s o n, W ester n R ail r o a d 

T r a f fi c A s s o cia ti o n, C hi ca g o, I lli n o i s , A p ril 1 9 7I *.

( 1 3) L ett e r fr o m Mr. Ha rr y N. C o o k, E x ec uti v e V ic e - P re si d e nt, N ati o n al 

Water w a ys C o nfe re n ce, I n c. t o Dr. E ri c H ir st, F E O, Marc h 7, 1 9 7I 4.
1 0 3 3

l i

A PP E N DI X A. Ba r ge F r ei g ht E h er g y I n t e n sit y

Wit h o ut a n y d o u bt, t h e m o st u n c e rta i n pie c e o f d ata i n t h e e n tir e a re a 

o f Ba r ge v s. R ail e n er g y e f fi c i e n c i e s i s t h at o f b ar g e f u el c o ns u m pti o n.

T he r e s e a r c h r e s u lt s gi ve n i n T a ble A 1 i n d ic ate t h e u n c e rta i n t y i n v ol v e d.

Hie c o m m o nl y h el d o pi n i o n i s t h at m ore d ata m u st be c o ll e ct e d. Alt h o u g h 

t h e i n f o r m ati o n i n e x is ti n g d ata ha s be e n f u ll y e xtr a cte d a n d be e n f o u n d t o 

be i n s u f fi c i e n t, g at h e ri n g ne w f u el d ata c o m p ati ble wit h a t o n mil e w ei g hti n g 

si m il a r t o t h e a p pr oa c h us e d i n t h i s p a p er is n ot a t r i v i a l t a s k d ue t o t h e 

la r g e n u m ber ( 1 8 0 0 o n t h e G ulf - M is sis si p pi s y st e m ) o f m o stl y u n re g ula te d 

b ar g e li n e s w hic h m ust be q u e ri e d.

T A B LE A1

R ES UL TS O F R E S E A R C H O N W AT E R W A Y E N E R G Y I N T E N SI T Y ( Bt u/ H n)

A ut h o r a n d A p pli ca ble D at a Ye ar Bt u/t m

H i r st

( l )

, 1 9 7 0

6 8 0

( 2 )

H i r s t 1 9 7 1 5 7 0

M o o z ^ \ ca. 1 9 6 8

5 0 0

( 1»)

M o oz' 1 9 7 0 5 1 2

B ri n e g a r

( 5 )

, 1 9 7 3

1*62

N ati o n al P et r ole u m C o u n c il ^ , 1 9 7 3

5 1 0

( 7 )

N ati o n al Water w a ys C o nfe re n ce, I n c. ,

1 9 6 8 1*15 ( L o we st Sa m ple 2 1 7 Bt u/i m )

N ote s;

(a ) T h ese fi g u r e s d o n ot i n cl u d e c ir c u it y a n d s h o ul d be c o m p are d wit h t h e 

r a il r e s u lt fr o m Ta bl e 1 o f t h e mai n r e p o rt ( a ft e r c o rr e cti o n ) w hic h 

i s 1 *63 t o 5 1 5 Bt u/ Tta.

( 8 )

( b ) T he W ester n R ail r o a d T r a f fi c A s s o cia ti o n ha s p u bli s h e d'" " r e s u lt s o f 

1 0, 0 0 0 n et t o n c o al t r a i n m o v e me nts w hic h ra n g e fr o m l 6 U Bt u/ T m (l e v el 

tr a c k ) t o 2 6 0 Bt u/ T m ( si g n ifi c a n t gra d e) a ft e r c o rr e cti o n f o r b ar g e c i r ­

c u it y. T h ese fi g u r e s ar e m o st l o g i c a ll y c o m pa ra bl e wit h t h e N ati o n al 

Water w a ys C o n fe re nc e d ata gi ve n a b o v e.
1 0 3 4

1 2

fe re n c e s — A p p e n di x A

( 1 ) Oa k Ri d ge N ati o n al L a b o ra t o r y , Re p o rt N o. O R N L- N S F- E P- b b.

D o m estic (i n cl u di n g c o a st w i d e, b a r g e, a n d la k e w is e ) n ati o n al a v er a g e 

F u el s o urc e: Re f. ( 3 )

T o n mi s o urc e: T r a n s p o rt ati o n A ss o cia ti o n o f A m eric a, " T ra n s p o rt ati o n 

F a cts a n d T re n d s. "

( 2 ) T el e p h o ne c o n v ers ati o n wit h Dr. H ir st.

D o m estic (i n cl u di n g c o a st w is e, la k e w is e a n d b ar g e) n ati o n al a v er a g e 

F u el s o urc e: Ja m es J. M utc h, Ra n d C or p ora ti o n D oc u me nt R 1 3 9 1- N S F, 

Dec e m b er 1 9 7 3.

T o n mi s o u rc e: T r a n s p o rt ati o n A s s o cia ti o n o f A m eric a, " T ra n s p o rt ati o n 

F a cts a n d T re n d s."

( 3 ) T he E ff e ct o f F u el P ric e I n c re a s e s u p o n t h e E ne rs y I nte n si v e n e s s o f 

F re i g ht T r a n s p o rt," Ra n d C or p ora ti o n R e p ort R- 8 0 b- N S F.

D o m estic (i n cl u di n g c o a st w is e, b ar g e a n d la k e w is e) •

F u el s o u rc e: U. S. B u rea u o f Mi ne s, " M i n er al s Ye ar b o o k" a n d " M i n er al 

I n d u str y S ur ve ys — Cr u d e P etr ole u m, P et r ole u m Pr o d u ct s 

a n d N at u ra l Gas L i q ui d s."

T o n mi s o u rc e: I n t e r s t a t e C o m merce C o m missi o n a n d’ A m eri ca n Wat er w a ys 

O p e ra t o rs, I n c.

( b ) An u p d at e o f ( 3 ) b a se d o n 1 9 7 0 a ct u al s. L ett e r t o J. Fe e ne y fr o m Dr. 

W m. E. M o oz, A u g u st 8, 1 9 7 3.

( 5 ) State m e n t b y Cl a u d e S. B ri n e g a r, S e c re ta r y o f T r a n s p o rt ati o n, B ef or e 

t h e H o use A p p r o p ri ati o n s S u bc o m mitte e o n T r a n s p o rta ti o n, Marc h 5, 1 9 7 b. 

I n cl u d e s " F re i g ht T ra n s p o rt ati o n b y W at er."

F u el a n d t o n mi s o u rc e: De part m e nt o f I n t e ri o r e sti m ate s.

( 6 ) " I nte ri m Re p o rt P h as e I, T ra n s p o rt ati o n Tas k Gr o u p o f t h e N ati o n al 

P et r ole u m C o u n cil's C o m mitte e o n E nerf Qr C o n se r v ati o n.

T u g a n d b ar g e o p e r at o r s o nl y.

F u el s o urc e: E sti m at e ba se d o n p r o p uls i o n e f fi c i e n c y, a n n u al HP h o ur s 

o f p r o p uls i o n a n d f u el e f fi cie n c y.

T o n mi s o u rc e: N ot gi ve n i n t h e i n te ri m r e p o rt.

( 7 ) " A Wat er wa ys F u el Ta x: Me as u re m e nt s o f t h e M e n ac e," W as hi n gt o n, D. C., 

Ma y 1 9 7 0. Ba se d o n a 3 2. b p re c e nt sa m ple s u r v e y o f i n la n d water wa y 

c a r ri e r s c o n d ucte d b y N ati o n al Wat er wa ys C o nfe re n ce, I n c. i n 1 9 6 9. 

I n cl u d e s t u g a n d b ar g e o p e r at o r s o n l y.

( 8 ) Tele p h o ne c o n v ers ati o n wit h Mr. Ge or ge A n d er s o n, W ester n R ail r o a d 

T r a f fi c A s s o cia ti o n, C hi ca g o, I lli n o i s, A p ril 1 9 7 b.
1 0 3 5

1 3

A P P EN DI X B. D eri v ati o n o f T ota l Bier g y E f fic ie n cie s

A re a s o n a ble wa y o f e sti m ati n g t o t a l e n er g y i m pa ct s o f tr a n s p o rta ti o n 

i s b y t h e us e o f a L e o nti e f I n p ut O ut p ut i n v e rs e m atr i x , w h o se el e m e n ts 

( I - A ) ^ b y d e fi n iti o n are t h e t o t a l ( d ir e c t a n d i n d ir e c t) o ut p ut ( $ ) o f 

i n d u str y i ne e d e d p er d o lla r o f o ut p ut o f i n d u str y J. T h es e m atri x el e m e n ts 

ca n e a sil y be c o n v er te d t o e n er g y u n it s.

T he b a sic met h o d * a n d 1 9 6 3 r e s u lt s f o r t h e r a il i n d u str y are gi v e n i n 

re fe r e n c e ( l ). T he sa me d oc u me nt als o e x tr a p o la t e s 1 9 6 3 d ata t o 1 9 7 1 b ut 

d ue t o a dif f e r e n c e i n t h e gr o u n d r u le s o f c o m pa ri s o n, t h e 1 9 7 1 r e s u lt s i n 

T a ble l b o f (l ) are n ot a p pli c a ble h e r e. O nl y t h e met h o d ( S e cti o n II B ) is 

u s e f ul.

1 9 7 1 t o t a l r a il f r ei g h t El, X, ca n be e sti m ate d via t h e p r o d u ct:

X = A • B • C

w h ere

A = l o c o m oti v e a n d s w it c hi n g f u el us e d p er t o n mi i n 1 9 7 1.

B = r a ti o o f t o t a l r e fi n e d p etr ole u m us e d p e r t o n m il e i n 1 9 6 3 

t o t h e l o c o m oti v e a n d s w it c hi n g f u el us e d p er t o n mi i n 1 9 6 3.

C = r a ti o o f d ir e c t e n er p y us e d p e r t o n mi b y t h e r ailr o a d s i n

1 9 6 3 t o t h e r e fi n e d p etr ole u m p er t o n mi us e d b y t h e r ail r o a d s 

i n 1 9 6 3.

D = r a ti o o f t h e t o t a l ( d ir e c t a n d i n d ir e ct) e n er g y p e r t o n mi 

u se d b y t h e r ail r o a d s i n 1 9 6 3 t o t h e d ir e c t e n er g y u se d b y 

t h e r ail r o a d s i n 1 9 6 3.

Bac k u p d ata f o r (l ) gi v es t h e f o ll o w i n g v al u e s:

I n cl u di n g a c o rre cti o n f o r c a p it al p u rc h a se s s u c h as r o lli n g st o c k.

5 4 - 2 3 9 0 - 7 5 - 6 6
1 0 3 6

i u

= 1. 0 8 U

C = 1. 1 2 9

T a ble l a o f (l ) gi v es t h e v al u e o f D:

D = 1. 7 0

T a ble 1 o f t h e p re s e nt r e p o rt gi v e s t h e v al u e o f A:

A = 7 1 1 Bt u /t o n mi

T h ere f o re , 1 9 7 1 t o t a l r a il f r ei g h t El i s gi ve n b y

6 3 9 Bt u /t o n mi * 1. 0 & x 1. 1 2 9 x 1. 7 0 = 1 3 3 0 Bt u /t o n mi 

I f t h e sa me v al u e s f o r B, C, D are ass u m e d v ali d f o r t h e b ar g e c a s e, 1 9 7 1 

t o t a l b ar g e fr ei g h t El i s gi ve n b y

7 8 5 Bt u /t o n mi x 1. 0 8 U x 1. 1 2 9 x 1. 7 0 = 1 6 6 3 B t u /t o n mi 

N ote t h a t t h e s e t o t a l e n e r g ie s a d d n ot h i n g t o t h e c o m pa ris o n bet w ee n r a il 

a n d b a r g e, t h e y si m pl y e sti m ate h o w m uc h t o t a l e n er g y i s s p e nt p e r t o n mi 

i n ea c h c a s e.

R efe re n c e s — A p pe n di x B

( 1 ) A nt h o n y Se ba l d a n d R o be rt H er e n de e n, " T he D ir e ct a n d I n d ir e ct D ollai 

E n er g y a n d E m pl o y me nt I m pa ct s o f A ir, R ail a n d A ut o m o bile P as se n g er 

T r a n s p o rt ati o n, E n er g y R es ea rc h Gr o u p, C e n te r f o r A d v a nc e d C o m p utati o n , U ni v e rs it y o f I lli n o i s, Ur b a n a, Illi n o i s, O ct o b er 1 9 7 3.
1037

Se nat or r a v e l . O ur ne xt wit ness, a n d t hese t w o ge ntle me n will 

c o me u p t o get her, Mr. Willia m H ull a n d Mr. Ja mes S mit h. Mr. H ull 

is wit h t he Nati o nal Water wa ys C o nference, I nc., a n d Mr. S mit h is 

presi de nt of t he A merica n Wat er wa ys O perat ors.

Ge ntle me n, beca use of t he u n us ual press ure we ha ve fr o m t he fl oor, 

y o u ca n s u b mit y o ur state m e nts f or t he rec or d a n d s u m marize, if 

y o u wis h.

S T A T E M E N T S O F WI L LI A M J. H U L L, N A TI O N A L W A T E R W A Y S C O NF E R E N C E, I N C., A N D J A M E S R. S MI T H, P R E SI D E N T, A M E RI C A N

W A T E R W A Y S O P E R A T O R S

Mr. H u l l . Mr. C hair ma n, t he Nati o nal Water wa ys C o nference 

state m e nt has bee n filed f or t he rec or d. ( See p. 1 0 4 1.)

I ha ve o nl y a fe w re mar ks t o ma ke t o u n dersc ore ke y c o nsi derati o ns 

t hat we w o ul d li ke t o pres u me u p o n t he c o m mittee t o c o nsi der.

T his c o m mittee is, of c o urse, a ware of t he l o n g hist or y of A merica’s 

de dicati o n t o t he water wa ys i m pr o ve me nt as a Fe deral res p o nsi bilit y 

wit h o ut t oll or ta x. We ha ve trie d t o de m o nstrate i n o ur pre pare d 

state m e nt t hat t hat p olic y has bee n a b u n da ntl y vi n dicate d b y its 

s uccess. I w o n’t detai n y o u wit h a n y recital here of t h ose data b ut I 

d o ur ge t hat t he facts as t o t he s uccess of t he p olic y i n ter ms of ec o ­

n o mic de vel o p me nt a n d sti m ulati o n of ec o n o mic de vel o p me nt of t he 

c o u ntr y pr o vi di n g a n i m p orta nt ele me nt of t he i nfrastr uct ure o n w hic h 

t he w h ole ec o n o m y rests be gi ve n seri o us c o nsi derati o n i n y o ur d eter ­

mi nati o n as t o w het her or n ot t here s h o ul d be a basic c ha n ge i n t he 

hist oric nati o nal p olicy.

We ha ve atte m pte d t o p oi nt o ut i n o ur pre pare d state m e nt, Mr. 

C hair ma n, t he i n here nt a d va nta g e of water tra ns p ortati o n i n t he 

c o nte xt of t he tas k a hea d. I n relati o n t o its f uel efficienc y, its l o w c ost, 

its ca pa bilit y fcr t he m o ve me nt of h u ge q ua ntitie s of b ul k materials 

o ver vast dista nces a n d its ca pacit y f or e x pa nsi on at relati vel y l o w 

ca pital c ost.

We t hi n k t hat t he ma xi m u m a n d efficie nt utilizati o n of t h ose sec ure 

e ner g y res o urces w hic h lie wit hi n t he b o u n daries of t h e U nite d States 

m ust rest directl y u p o n m o de m a n d efficie nt water tra ns p ortati o n f or 

t he m o ve me nt of c oal, petr ole u m pr o d ucts, a n d ot her relate d materials

We t hi n k t hat a w orse ti me i n t he hist or y of t his c o u ntr y f or i m ­

p ositi on of restricti ve ta xes or c har ges o n t his m o de c o ul d har dl y be 

c h ose n.

I wis h n o w t o e m p hasize s peciall y o ur c o ncer n t hat c o m mercializa ­

ti o n of t he nati o nal water wa ys pr o gra ms u n der a user t oll pr o gra m 

w o ul d i n v ol ve t w o f u n da me ntal fallacies: First, t hat j ustificati o n of 

s uc h a ra dical de part ure fr o m o ur l o n g-esta blis hed practice rests o n 

t he ass u m pti o n t hat t he o nl y val ues of water wa y i m pr o ve me nts are 

directl y sala ble ser vices.

O ur a nal ysis has p oi nte d o ut t he wi de-ra ngi n g be nefits of t he 

pr o gra m, sti mul us t o ca pital f or mati o n, i n d ustrial gr o wt h a n d e n ha nce ­

me nt of t he Stat e a n d l ocal ta x base as well as Fe deral re ve n ue s o urces, 

assista nce t o a gric ult ure t hr o u g h re d ucti o n of far m-t o- mar ket c osts, 

a material c o ntri b uti o n t o d o mestic e ner g y s u p pl y a n d a stre n gt he ne d 

bala nce of pa y me nts a n d re d ucti o n of p o p ulati o n of cr o w de d ur ba n 

ce nters b y facilitati n g i n d ustrial dis persi o n; a n d ec o n o mic sta biliza-
1 0 3 8

ti o n t hr o u g h restrai nt o n i nfl ati o nar y tre n d s a n d t hr o u g h sti m ulati o n 

of e m pl o y m e nt. T he se be nefits C o n gr ess has l o ner rec oe mize d as m a n ­

ifest i n t he heari n gs bef ore t he vari o us c o m mittees of t he C o n gr ess, as 

well as i n t he re p ort s of t he c o m mittees a n d i n t he de b ate s o n t he 

fl o or wit h w hic h y o u are t h or o u g hl y fa miliar.

I t hi n k it is fair t o sa y t h at t he da n ger fr o m e xcessi ve a d he re nc e 

t o t he d octri n e of be ne fit ta x ati o n w hic h is ess e ntiall y w h at water ­

wa y user c har g es are is t h at t he Fe d eral f u n cti o ns u n d er t his s h o p ­

kee p er pre o cc u pati o n will te n d t o be j u d ge d o n h o w well t he y will 

pa y, t o t he dee m p hasis of t heir p u bli c p olic y val ues.

T h u s, pr oject e val uati o n base d mai nl y u p o n c o nte m p or ar y ma r k et 

de m a n d will i ne vita bl y res ult i n ne gl ect of l o n g er ter m de v el o p me ntal 

val ues. A m o n g t he p r o ba ble c o nse q u e nces of a p pli cati o n of t his c o n ce pt 

are t he f oll o wi n g:

O ne: C o nst r ucti o n t o a strict c o m m ercial scale w o ul d li mit t he 

facilit y t o nea r-te r m use e x pe ctati o ns, wit h a str o n g li keli h o o d f or 

re pl ace m e nts e ve r y 15 t o 20 years, at a n a g g re g ate l o n gr u n c ost far 

i n e xcess of t he c ost of a si n gle pr oject desi g n e d f or esti mate d l o n g ­

ter m nee ds. T h us, ha d t he U p p er Missi ssi p pi l oc ks a n d da m s bee n 

b uilt i n t he 193 0’s f or o nl y a 25- yea r life, re plac e m e nt w or k w o ul d 

ha v e ha d t o be gi n i n t he 195 0’s. A n d, wit h o nl y a 25- yea r life b uilt 

i nt o t he re place me nt, t he str uct ure s w o ul d be, b y 1975, j u st a b o ut as 

det eri o rate d a n d c o n ge ste d as t he y act uall y are. I n ot h er w or ds, 

i nst ea d of t he o ne c o n str u cti o n pr o g ra m w hic h was c o m plete d i n t he 

193 0’s, t w o w o ul d ha v e bee n re q uire d t o get us e xactl y w here we are 

t o d a y wit h res p ect t o t he na vi gati o n s yst e m of t he U p p er Missi ssi p pi 

Ri ve r. 

T w o: Water w a y i m p r o v e me nts c o ul d n ot f ulfill t heir pri m e f u ncti o n 

as a sti m ul u s t o c o m m u nit y a n d i n d ustrial de v el o p m e nt if c o n str u cte d 

as narr o wl y c o m m ercial u n d erta ki n gs. T o o m uc h ti me m u st ela pse 

bet w ee n t he i m pr o ve m e nt o utla ys a n d t he f ull realizati o n of traffic 

gr o wt h wit h t he ass ociate d fl o weri n g of i n d ustrial acti vit y a n d 

c o m m u nit y welfare. Re gi o ns w here gr o wt h ha s l o n g bee n sta g n ate d 

i n s pit e of ric h l ocal res o ur ces a n d ma n p o w er pr o mis e a b u n da nt re ­

t ur n of Fe d eral i n v est me nt i n wat er w a y facilities i n t he f or m of 

c o m m u nit y gr o wt h a n d a m o u nti n g c o ntri b uti o n of pr o d ucti o n a n d 

mar kets t o t he N ati o n’s ec o n o m y, b ut o nl y as a l o n g-t er m e x p ect ati o n.

T hre e: J ustifi cati o n of pr oject pr o p osals u n der a user c har ge s ys ­

te m w o ul d 'ea d t o irre par a bl e ne glect of vital water res o urce p ote ntials. 

A t y pi cal pr oject ma y be c o ncei ve d u n d er a variet y of alt er n ati ve 

desi g ns, re pres e nti n g pr o gre ssi ve sta g es t o w ar d m ore c o m plete utili ­

zati o n of t he res o u rce p ote ntial s of t he site. T his is partic ula rl y tr u e 

of m ulti ple- p ur p ose pr oj ects, c o m bi ni n g na vi gati o n, water s u p pl y, 

fl o o d c o ntr ol, irri gati o n, s oil c o n ser v ati o n, a n d ot h er res o urce o bj ec ­

ti ves. A u ser c har ge criteri a w o ul d be ta k e n as a m a n d ate t o c o nstr u ct 

a pr oject o nl y t o s uc h a scale a n d wit h s uc h feat ur es as c o ul d be 

j ustifie d b y pr o s pe cti v e t oll re ve n ues.

T he sec o n d basic fallac y is t heir disr e gar d of t he relati o n s hi p of 

g o o d fait h c o o perati o n bet w ee n t he Fe d eral G o v er n me nt a n d t he 

pri vat e sect or, u p o n w hic h t he via bilit y of t he Nati o n’s water w a ys 

i m pr o ve m e nt p olic y de pe n ds.

T h e o bje cti v es of na vi g ati o n i m pr o ve m e nt s relate pri m aril y t o l o n g ­

ter m c o m m u nit y a n d re gi o nal de v el o p m e nt a n d t o t he hei g hte ne d
10 39

i nt e grit y of t he i nterre gi o nal nati o n al ec o n o m y c o n se q ue nt o n l o w ­

c ost tra ns p o rtati o n of basic res o urces.

I n t he ac hi e ve me nt of t hese o bje cti v es, t he c o n str u cti o n a n d mai n ­

te n a nc e of na vi gati o n a n d har b o r w or k s b y t he Fe d eral G o ver n m e nt 

are n ot self-f ulfilli n g. T h eir attai n m e nt calls, as well, f or a pri vate 

c o m mit m e nt of vessels, d oc ks, w ha r ves, ter mi nal s, ware h o us es, rail 

a n d hi g h wa y c o n n ecti o ns, a n d a variet y of p u bli c ser vi ces, a n d re ­

q uir es c o ns pic u o usl y t he c o n str ucti o n of i n d ust rial pla nts a n d t he 

est a blis h m e nt of ver y e xte nsi v e water-relat e d c o m m ercial o pe rati o ns.

T h e attai n m e nt of t he nati o nal o bj ecti ves s o u g ht b y ri ve r a n d 

ha r b o r i m pr o ve m e nt t h u s re q uir es a part n ers hi p — or j oi nt ve nt u re — 

bet w ee n g o v er n me nt a n d pri vate sect or, a n d t he i m p ositi o n of t olls 

a n d user c har g es, b y ta xi n g t he pri vate c o ntri b uti o n, w o ul d be selfdef eati n g wit h res p ect t o t hes e o bje cti v es.

O ur pre par e d state m e nt has att e m pt e d t o i n dicate t he se vere 

c o m petiti v e disl ocati o ns a n d t he i m pair m e nt of e n or m o u s pri vat e 

i n v est me nts ma d e i n relia n ce o n c o nti n u e d a vaila bilit y of l o w-c o st 

water tra ns p o rtati o n, w hic h w o ul d i ne vit a bl y res ult fr o m re p u diati o n 

of o u r l o n g-esta blis h e d t oll-free water wa ys p olic y.

We ha v e i n di cate d als o t he gra ve re gi o n al dis cri mi nati o n s a n d 

i ne q uities i m plicit i n water w'a y ta x pr o p osals e xe m pti n g de e p- dr aft 

c o m m erce. We ha ve n ote d as well t he a d v erse c o ns e q ue nces t o o ur 

f orei g n c o m m erce a n d bala nce of pa y m e nts certai n t o f oll o w' fr o m li ke 

i m p ositi o ns o n dee p- d raft c o m m erce. T hi s dile m m a e x p oses, I belie v e, 

t he i n n er c o nf usi o n of t h e w ate r w a y us er c har g e c o nc e pt.

We ha v e de m o nstrate d t h at c ost-rec o ver y user c har ges as a p plie d 

t o w ate r tra ns p o rtati o n are self- defe ati n g.

As a fi nal c o m me nt, Mr. C h air ma n, ma y I p oi nt o ut t h at w hile we 

ha v e trie d wit hi n t he li mits of o ur rese arc h a n d e x pe rie nc e t o i n dicate 

t he pr o ble m s li kel y t o arise fr o m a w'ater wa y ta x, we are u na ble t o 

pr o vi d e t he c o m mittee wit h t he detaile d ec o n o mic a n d s ocial i m pa ct 

st at e m e nt w hic h is clea rl y re q uir e d.

T h e ris ks t o t he nati o nal ec o n o m y a n d t he f ut ur e pr o s pe rit y of o ur 

pe o pl e are t o o seri o us t o lea ve t hes e decisi o ns i n t he ha n d s of t he o ­

reti cia ns. It is, w’e res p ectf ull y s u b mit, a bs ol utel y i m perati ve t h at 

t his e ntire m atter be hel d i n a be ya n ce u ntil C o n gres s is f ur nis he d wit h 

a det aile d st u d y of t he ec o n o mic a n d s ocial i m pa ct of w ate r w a y user 

c har ges a d e q uatel y deali n g wit h all t he c o m ple x iss ue s i n v ol ve d. A n y 

s uc h st u d y s h o ul d, of c o u rse, be s u bject of f ull p u bli c h eari n gs.

Mr. C h air ma n, I ha v e o ne f u rt h er c o m me nt t h at I w o ul d li ke t o a d d 

t o w h at I ha v e j u st sai d a n d t h at is t h at t he testi m o n y bef ore t he 

c o m mittee t o d a y has i n dicate d t h at t here is a ver y c o n si dera bl e nee d 

f or a detaile d st u d y of p u blic ai d t o tra ns p o rtati o n.

We ha v e tal k e d i n ter ms of e q uit y i n d eali n g w*it h t he se veral m o de s. 

All t he m o des of tra ns p o rtati o n are s u bsi dize d i n o ne de gre e or a n ot h er 

u n der vari o u s ki n d s of u n derst a n di n gs t h at ha v e bee n e v ol v e d fr o m 

t he pr actical neces sities of t he ec o n o mic life of t his c o u ntr y.

T n o se arr a n ge me nts ca n be dist ur be d, it see m s t o me, o nl y at 

c o n si dera bl e ris k t o t he nati o nal ec o n o m y. Bef ore decisi o ns are ma de 

w hic h w' o ul d c ha n g e a n y o ne of t he m, w h et h er as re g ar d s rail or water 

or tr u c k, it is i m per ati v e t h at we k n o w e xa ctl y w h at t he p u blic ai d 

has a m o u nte d t o.
104

T h ere has n ot bee n a seri o u s st u d y of p u blic ai ds si nce t he Tr a n s ­

p ortati o n B oar d ma d e a st u d y i n 19 38 -3 9. I t hi n k y o ur c o m mittee 

mi g ht well wis h t o c o nsi der ha vi n g t h at t y p e of st u d y u n derta ke n s o 

t h at we n o l o n ger gr o pe i n t he dar k wit h o ne m o de c har gi n g a n ot h er 

wit h li vi n g off t he fat of t he p u blic p urs e w hile it perf or ce str u g gle s 

t o m ai ntai n itself wit h o ut p u bli c ai d.

T h ere are n o m o d es of tra ns p o rtati o n w hic h ha v e n ot recei ve d 

s u bsta ntial p u blic ai d f or t he s uste n a nc e a n d i m p r o v e m e nt of t he m o de. 

I t hi n k s u d de nl y t o i m p ose water w a y t olls is si m pl y t o s pre a d t h e 

railr o a d s’ pr o ble ms still f u rt h er a n d t h at we o u g ht t o be ver y ca uti o u s 

i n o ur a p p r oac h t o t his e xtre m el y seri o us pr o ble m.

T h a n k y o u ver y m uc h.

Se nat or G r a v e l . T h a n k y o u ver y m uc h, Mr. H ull.

[ Mr. H ull’s pre par e d state m e nt a n d a letter recei ve d s u b se q ue nt t o 

t he hea ri n g fr o m t h e Nati o nal Water w a ys C o nf ere n ce f oll o ws:]
1 0 4 1

S T AT E M E N T O F WI L LI A M J . H U L L

I M M E DI A T E P A S T P R E S I D E N T O F T H E N A TI O N A L W A TE R W A YS C O N F E R E N C E, I N C. 

B E F O R E T H E S U B C O M MI T T E E O N W A TE R R E S O U R C E S, S E N A T E C O M MI T T E E O N P U B LI C W O R K S 

U NI T E D S T A T E S S E N A T E, W A S HI N G T O N, D. C .

J u n e 2 0, 1 9 7 5

Mr. C h air m a n a n d M e m be rs o f t h e S u b c o m m itte e:

M y na m e i s W ill i a m J . H u ll o f W a s hi n gt o n, D. C . I a m a p p e a ri n g b e f o r e y o u 

t o d a y a s a r e p r e s e n t a ti v e o f t h e N a ti o n a l W ate r w a y s C o n f e r e n c e, I n c ., o f w hic h I 

a m t h e i m m e dia te p a s t p r e s i d e n t. T he C o n f e r e n c e, n o w i n i t s 1 5 t h y e a r, i s a n 

o r g a n i z a ti o n o f w a t e r w a y - r e l a t e d b u s i n e s s fi r m s, i n d u s t r i e s a n d a g e n c i e s j o i n e d 

t o g e t h e r t o f o s t e r a b e t t e r u n d e r s t a n d i n g o f t h e p u b li c v a l u e o f n a v i g a ti o n a n d 

o t h e r w a t e r r e s o u r c e s p r o g r a m s. T he C o n f e r e n c e a p p r e c i a t e s t h i s o p p o rt u n it y t o 

p a r t i c i p a t e i n t h e o v e r s i g h t h e a ri n g s o n F e d e r a l n a v i g a ti o n p o li c y .

T h e l o n g - r a n g e , m u lti p l e - p u r p o s e d e v el o p m e nt o f o u r N a ti o n's w a t e r r e s o u r c e s 

h a s p r o v e d t o b e a m o n g t h e m o st p r u d e n t a n d p r o d u c ti v e p r o g r a m s i n t h e h i s t o r y o f 

p u b li c i n v e st m e n t i n t h i s c o u n t r y . I t s c o n ti n u a ti o n i n t hfe w i s e s t a n d m o st e f f i ­

c i e n t m a n n er i s v i t a l t o t h e N a ti o n's a b i l i t y t o m e et f u t u r e n e e d s. T h e o pti m u m 

u t i l i z a t i o n o f o u r w a t e r r e s o u r c e s i s e s s e n t i a l i f we a r e t o a c h i e v e t h e o b j e c ti v e s 

o f a d e q u at e e n e r g y s u p p l y , e n h a n c e d f a r m p r o d u c t i v it y , r i s i n g e m pl o y m e nt o p p o rt u n it y , 

r e s t r a i n t o f p r i c e I n f l a t i o n , a n d e f f i c i e n t u s e o f i n v e st m e n t c a p i t a l.

Ma n y o f o u r w a t e r r e s o u r c e n e e d s a r e c l e a r l y k n o w n. We k n o w, f o r e x a m ple , 

t h a t i n s e c ti o n s o f t h e a r i d W est a n d S o ut h w e st i r r i g a t i o n i s b a s i c t o s u c c e s s f u l 

a g r i c u lt u r e . We a l s o k n o w t h a t a b u n d a nt s u p p li e s o f w a t e r a r e e s s e n t i a l t o e n e r g y 

p r o d u ci n g t e c h n o l o g i e s , b o t h t h o s e w hic h a r e l o n g e s t a b li s h e d a n d t h o s e s t i l l i n 

f o r m a ti v e s t a g e s.

V er y e x t e n s i v e i n d u s t r i a l a n d a g r i c u l t u r a l c o m m u nit ie s a r e l o c a t e d a s a m a tt e r 

o f e c o n o m ic n e c e s s it y i n t h e fl o o d p l a i n s o f m a j o r r i v e r s a n d t h e i r t r i b u t a r i e s , 

a n d t h e w is e m a n a g e m e nt o f s e a s o n a l e x c e s s e s o f w a t e r i s e s s e n t i a l t o p u b li c
1 0 4 2

f e t y . T he N a ti o n's i n la n d a n d c o a st a l w ate r w a y s, al o n g w it h t h e G re at L a k e s, 

a r e pla yi n g a v i t a l a n d gr o w i n g r o l e i n t h e N a ti o n's t r a n s p o rt a ti o n o f p etr ole u m , 

c o al, f e r t i l i z e r s , fa r m c r o p s, s t e e l, c h e m ic als a n d o t h e r e s s e n ti a l r e s o u r c e s.

M o der n b a r g e a n d t o w i n g o p e r ati o n s a p pl y i n g s p a c e a g e te c h n ol o g y t o t h e w o rl d's 

o l d e st m ea ns o f f r e i g h t t r a n s p o rt a ti o n h a v e l o n g m ai n ta i n e d t h e p o siti o n o f t h e 

i n la n d w ate r w a y s a s t h e l o w e st c o st m o de o f s u r f a c e t r a n s p o rt a ti o n i d e a ll y s u it e d 

f o r l a r g e v ol u m e m o ve m e nt o f b ul k c o m m o ditie s a s w ell a s he a v y e q ui p m e n t s u c h a s 

n u cle a r r e a c t o r s a n d b ri d g e c o m p o ne nt s t o o l a r g e t o t r a v e l o v e rla n d.

I. DI R E C T R E L A TI O N S HI P O F W A T E R W A YS A N D P U B LI C P O LI C Y O BJ E C TI V E S

F o r a c e n t u r y a n d o n e - h alf — si n c e p a s s a g e o f t h e f i r s t ri v e r a n d h a r b o r 

l e g i s l a ti o n i n 1 8 2 4 — C o n gre ss h a s re c o g niz e d t h e i m p o rt a n c e o f w ate r r e s o u r c e s

p r o j e c t s a s t o o l s f o r a c hie vi n g b r o a d ec o n o mic a n d s o c i a l g o als . E n a bli n g l e g i s l a ­

ti o n o ri g i n a ti n g i n t h e P u bli c W o r ks C o m mitte es o f t h e C o n gre ss h a s le d t o m aj o r 

ri v e r d e v el o p m e n t pr o gra m s w hi c h ha ve r et u r n e d p u b li c b e n e fit s w o rt h ma n y ti m e s t h e

o ri g i n a l i n v e st m e nt.

I n o u r N a ti o n's e a rl y h i s t o r y , t r a n s p o rt a ti o n o n ri v e r s a n d c a n al s c o n t ri ­

b ute d t o t h e u n i fi c a ti o n o f t h e c o u n tr y, t o w e st w ar d e x p a n si o n, a n d — t h r o u g h p r o ­

h i b iti o n s a g ai n st t o l l s o r d u ti e s o n ri v e r t r a f f i c — t o t h e r e d u cti o n o f s e cti o n ali s m 

a n d d i s c ri m i n a t o r y I m p o siti o n s o n c o m m er ce. I n m ore r e c e n t ti m e s, w ate r w a y s d e v el o p ­

me nt h a s s e r v e d t o pr o m ote t h e ec o n o m ic v i t a l i t y o f ot h e r w is e d e p re s s e d r e g i o n s, 

p r o vi d i n g j o b o p p o rt u n iti e s f o r r u r a l p o p u la ti o n s a wa y fr o m cr o w de d u r b a n a r e a s 

a n d c o n tri b u ti n g t o t h e att ai n m e nt o f o t h e r s o c i a l o b j e c ti v e s.
1 0 4 3

P o p ula ti o n b ala n c e. — As a t r a n s p o rt a ti o n s y ste m , I nla n d n a v i g ati o n I m pr o v em e nts a r e u ni q u e i n t h a t t h e y te n d t o s t a b ili z e l o n g - e st a b li s h e d p o p u la ti o n p a tt e r n s 

r a t h e r t h a n t o g e n e r at e d i s r u p ti v e f a r m -t o - c it y m i g r ati o n. T h e d e v el o p m e n t o f 

t h e T e n n e ss e e R i v e r V all e y i s a n ill u s t r a ti o n o f w ate r w a y s' u s e f u l n e s s i n a f f e c ti n g 

d e m o gra p hic g o a l s. I n d u s t ri a li z a ti o n d u ri n g t h e t h r e e d e c a d e s si n c e t h e T e n n e ss e e

R i v e r wa s o pe n e d t o b a r g e n a v i g ati o n fr o m Pa d u ca h u p str e a m t o K n o x ville h a s t r a n s ­

f o r m e d t h e v a ll e y fr o m a r e g i o n c h a r a c t e ri z e d b y a s m all fa r m ec o n o m y a n d ste a d y 

o u t- m i g r ati o n o f i t s c iti z e n s i n t o a n a r e a e x p e rie n ci n g p o p u la ti o n g r o w t h, w it h 

t h e l a r g e s t p o rti o n o f t h e l a b o r f o r c e n o w e m pl o y e d i n m a n u f a ct u ri n g. S i g n i fi c a n tl y , 

s o me 8 0 p e r c e n t o f t h e v a ll e y's ne w i n d u s t ri a l j o b o p p o rt u n iti e s h a v e b e e n p r o ­

vi d e d i n s m all t o w ns a n d r u r a l a r e a s, r a t h e r t h a n i n a lr e a d y c o n g e ste d u r b a n a r e a s.

G e n e r all y, F e d e ra l s p e n di n g f o r hi g h w a y, a i r p o rt a n d d e f e n s e pr o gra m s i s 

c o n c e n tr ate d i n a r e a s o f g r e a t e st p o p u l a ti o n, t h u s a tt r a c ti n g e v e n m o re p e o ple t o 

c o n g e ste d a r e a s. As P r o f. L y n t o n K. C al d w ell o f I n dia n a U n i v e r sit y h a s n ote d, t h e 

o n e pr o gra m i n w hi c h F e d e r al i n v e st m e nts te n d t o g o t o n o n - m etr o p o li ta n a r e a s i s 

w ate r r e s o u r c e s d e v el o p m e nt. W at er w a y p r o j e c t s, t h e r e f o r e , ha ve pr o v e d t o be u s e ­

f u l i n e n c o u ra gi n g r a ti o n a l la n d u s e pla n ni n g a n d s u st a i n i n g t h e d i s p e r s a l o f p o p ula ­

ti o n a n d i n d u str y , m o d e ra ti n g t h e p r e s s u r e s o n o u r i n n e r c it i e s .

A g ri c u lt u r e. — A m eric a n fa r m e rs a r e , a s n e v e r b e f o r e, c o n fr o nte d b y ri s i n g

c o st s f o r e v e r y t h i n g t h e y m ust b u y, f a r o u t- p a ci n g t h e p ri c e s o f fa r m p r o d u cts at 

a ti m e o f w orl d f o o d s c a r c it y . O u r a g ri c u lt u r a l ec o n o m y, t h e r e f o r e , i s i n d i f f i ­

c u lt y . I n la n d n a v i g ati o n i s h el p i n g t o st e m t h e ti d e o f i n fl a ti o n o n t h e fa r m b y 

h ol d i n g d o w n t h e c o st o f d e li v e ri n g f e r t i l i z e r , t r a c t o r f u e l a n d o t h e r fa r m s u p p li e s. 

Far m e l e c t r i c i t y o v e r e x te n si v e r e g i o n s o f t h e c o u ntr y i s c h e a p e r b e c a u s e o f w ate rwa ys pr o gra m s p r o vi d i n g e it h e r h y d r o e l e c t ri c p o we r o r p o w er g e n e r at e d fr o m w ate rb o r n e f u e l s.
1 0 4 4

ith o ut ri v e r b a r g e s t o m o ve w h e at, c o r n, s o y b e a n s a n d o t h e r fa r m c r o p s t o 

m a r k et, fa r m I nc o m e w o ul d be s e v e r el y d e p r e s s e d. O v erl a n d m o de s a r e si m pl y u n a ble 

t o s u p pl y t h e n ee d e d t r a n s p o rt a ti o n e q ui p m e nt a t h a r v e st ti m e. E ve n w it h b a r g e s 

m o vi n g m a ss i v e q u a n titi e s o f g r ai n a n d s o y b e a n s, g r a i n o ft e n cl o g s t h e e l e v a t o r s 

a n d I s s o m eti m es u nl o a d e d o n c it y s t r e e t s . A v a il a b ilit y o f b a r g e t r a n s p o rt a ti o n 

t o m o ve fa r m c r o p s fr o m i n t e r i o r a g ri c u lt u r a l r e g i o n s t o d i s t a n t m a r k ets a l s o me a n s 

m o re m o ne y i n t h e f a r m e r's p o c k et. T he p ri c e he r e c ei v e s f o r g r a i n , s o y b e a n s a n d 

o t h e r p r o d u cts i s l a r g e l y d ete r m i n e d b y t h e p ri c e a t t h e s e a p o rt — t h e e x p o rt 

p ri c e — mi n us t r a n s p o rt a ti o n c h a r g e s fr o m t h e i n la n d o ri g i n s. T h u s, s a vi n g s i n 

t r a n s p o rt a ti o n c o st s a f f o r d e d b y w ate r c a r ri a g e a r e t r a n s l a t e d d i r e c tl y i n t o i n ­

c r e a s e d fa r m re v e n u e.

R e str a i n t o n I n f l a ti o n . — T he i n d u s t ri e s m ost d e p e n d e nt o n l o w -c o st i n la n d

w at er w a y t r a n s p o rt a ti o n a r e b a sic t o t h e A m eric a n ec o n o m y. T h es e i n d u s t ri e s i n cl u d e 

a g ri c u lt u r e , bit u m i n o u s c o al m i n i n g, ir o n a n d s t e e l, p etr ole u m r e fi n i n g a n d d i s t r i ­

b u ti o n, a wi d e v a ri e t y o f c h e m ic als , t h e p r o d u cti o n o f e l e c t r i c e n e r g y, a n d, i n ­

d i r e c tl y , b ut i n l a r g e m a g nit u d e, al u mi n u m s m elt i n g a n d n u cle a r e n e r g y. T he se 

i n d u s t ri e s, i n t u r n , p r o vi d e t h e b a sic m a t e ri a l a n d f u e l s, t h e a b u n d a n ce o f w hi c h 

— a t l o w c o st — i s e s s e n ti a l t o t h e e f fi c i e n c y a n d gr o w t h o f t h e e n ti r e i n d u s t ri a l 

s t r u c t u r e o f t h e N ati o n. E c o n o mic al w ate r c a r ri a g e i s a ke y li n k i n t h i s p r o c e s s.

As r e c e n tl y a s 1 9 7 3, b a r g e r a t e s w er e l o w er t h a n t h o s e o f W orl d War I I . E ve n 

w it h t h e d ra m ati c f u e l p ri c e I n c r e a s e s o f t h e l a s t 1 8 m o nt h s, b a r g e r a t e s n o w 

a v e r a g e b et w ee n 4. 0 a n d 4. 5 m ill s p e r t o n - m il e. ( A m ill i s l/ 1 0 t h c e n t, a n d a 

t o n - m il e i s o n e t o n m o v e d o n e m il e.) T he T r a n s p o rt ati o n A s s o cia ti o n o f A m eric a 

( T . A . A .) r e c e n tl y r e p o rte d t h a t I n c r e a s e s i n tr a n s p o rt a ti o n r a t e l e v e l s t r a il e d 

t h o s e o f b ot h w h ole s ale a n d c o ns u m er p ri c e s d u ri n g t h e l a s t d e c a d e. Bet w ee n 1 9 6 3

a n d 1 9 7 3, c o ns u m er p ri c e s w e nt u p 4 5 p e r c e nt w hil e w h ole s ale p ri c e s r o s e 4 3 p e r c e n t.
1 0 4 5

A c c o r d i n g t o T. A . A ., d u ri n g t h e sa m e 1 0 - y e a r p e ri o d, tr u c k i n g c h a r g e s p e r t o n - 

m il e I n c r e a s e d 2 9 p e r c e n t, r a i l c h a r g e s a d v a n c e d 2 4 p e r c e n t, b ut b a r g e c h a r g e s 

r e g i s t e r e d a n I n c r e a s e o f o nl y 5 p e r c e n t. W hat b e tt e r p r o o f c o ul d b e f o u n d t o 

d o c u m e nt w ate r w a y s' v it a l c o n tri b u ti o n t o t h e r e s t r a i n t o f r i s i n g c o st s a n d p ri c e s ?

E m pl o y m e nt. — I t i s n o w t h e c o n s e n s u s o f o pi n i o n a m o n g e c o n o m is ts t h a t 

u n e m pl o y m e nt w ill c o nti n u e a t a n u n a c c e pta bl y hi g h l e v e l l o n g a f t e r t h e p r e s e n t 

r e c e s si o n h a s e n d e d. T he la b o r f o r c e I s gr o wi n g r a p i d l y s o t h a t a c hie v e m e nt o f t h e 

l e v e l o f e m pl o y m e nt w hi c h p re c e d e d t h e r e c e s si o n w ill s t i l l le a v e ma n y m illi o n s o ut 

o f w or k. T h e N a ti o n's p l a n t c a p a c it y I n b a si c I n d u s t ri e s I s si m pl y n ot gr o wi n g 

I n p a ce w it h t h e l a b o r f o r c e, i n c o n si d e r a b le m e a s u re b e c a u s e o f t h e s c a r c it y o f

i n v e st m e nt f u n d s.

B ec a u se o f t h e l o w c o st o f w ate r t r a n s p o rt a ti o n , t h i s m o de p r o v i d e s t h e l o g l s ti 

c al f o u n d ati o n o f l a r g e s e c t o r s o f o u r b a si c I n d u st ri e s — e l e c t r i c e n e r g y, s t e e l, 

c h e m ic als , p etr ole u m r e fi n i n g , fa r m m a r k eti n g a n d t h e l i k e . — c o n t ri b u ti n g i m m e n sel y 

t o e f fi c i e n c y a n d p r o d u c ti v it y a n d c o n s e q u e ntl y sti m u l a ti n g c a p a c it y e x p a n si o n o n 

a l o g i s ti c a l a n d o p e r a ti o n a l d e si g n w hic h a c hi e v e s ma xi m u m o ut p ut a n d e m pl o y m e nt 

p e r d o ll a r o f I n v e st m e nt. T his i s d e m o n str ate d b y t h e l a r g e s c a l e o f I n d u s t ri a l 

d e v el o p m e n t w hic h h a s ta k e n p la c e si n c e W orl d War I I al o n g t h e I nla n d w ate r w a y s.

T he a v a il a b ilit y o f l o w -c o st w ate r t r a n s p o rt a ti o n wa s c r i t i c a l t o t h e l o c a ti o n 

o f ma n y o r m ost o f t h e p l a n t p r o j e c t s.

I n 1 9 7 1, t h e O hi o V all e y I m pr o v e m e nt A s s o cia ti o n s u r v e y e d I n d u s t ri a l fi r m s 

l o c ate d al o n g t h e O hi o Ri v e r a n d I t s n a v i g a ble t r i b u t a r i e s si n c e 1 9 6 5 a n d d ete r m i n e d

t h a t a v a il a b ilit y o f w ate r t r a n s p o rt a ti o n wa s a g o v e r n i n g re a s o n f o r t h e l o c a ti o n 

o f 8 1 o f t h e 1 2 2 r e s p o n di n g i n d u s t ri e s. T h e a n n u al p a y r o ll s o f t h e s e 8 1 p l a n t s,

I n 1 9 7 0, e x ce e d e d $ 4 4 7 m illi o n — a fi g u r e w hic h w o ul d be m uc h h i g h e r t o d a y. Ot h er
1 0 4 6

a n t s s el e c t e d ri v e r s it e s b e c a u s e o f l o w -c o st e l e c t r i c i t y , b o u n tif u l w ate r s u pp li e s , a n d / o r a v a il a b ilit y o f t h e p r o d u cts o f t h e b a si c I n d u s t ri e s d i r e c tl y 

d e p e n d e nt o n w ate r t r a n s p o rt a ti o n .

C o n s e r v ati o n o f c a p it a l. — T he s u p e ri o r p erf o r m a n c e o f w ate r t r a n s p o rt a ti o n 

I n t h e c o n s e r v ati o n o f i n v e st m e nt f u n d s m e rit s s p e c i a l e m p h a si s I n t h e p r e s e n t 

s h o rta g e o f c a p it a l. T r a n s p o rt ati o n b y w ate r a c hie v e s s u b s t a n ti a l i n v e st m e nt s a vi n g s 

i n t h e t r a n s p o rt a ti o n f u n cti o n i t s e l f . I n i t s 1 9 7 2 N ati o n al T r a n s p o rt ati o n R e p o rt, 

t h e U. S. D e p art m e n t o f T r a n s p o rt ati o n p r o j e c t s a n i n c r e m e nta l c a p it a l re q uir e m e nt 

o f U. S. r a il r o a d s t o 1 9 8 0 o f a b o ut $ 3 2. 3 0 f o r ea c h 1 0 0 0 t o n - m il e s o f r a il r o a d f r e i g h t 

p r o j e c t e d f o r t h a t y e a r. T his le a v e s o ut o f a c c o u nt p u b li c f u n d s f o r r a il r o a d 

a s s i s t a n c e a n d s u b si d i z a ti o n . B y c o n t r a st, t h e c o rr e s p o n di n g fi g u r e f o r w ate r c a r ­

ri a g e i s o nl y $ 6. 8 4 p e r 1 0 0 0 t o n - m il e s o f w ate r b o r n e c o m m er ce, i n cl u di n g n ot o nl y 

p ri v a t e i n v e st m e nt b y t h e c a r r i e r s b ut als o a ll p u b li c i n v e st m e nt i n ri v e r a n d h a r ­

b o r i m pr o v e m e nts. T his fi v e - f o l d a d v a nta g e o f w ate r c a r ri a g e a n d c a p it a l c o n s e r v a ­

ti o n s u r e l y c o u n s els a hi g h p r i o r it y i n w ate r t r a n s p o rt a ti o n d e v el o p m e nt.

E x p ort e x p a n si o n. — T h e s t a t e o f I ll i n o i s , l o c ate d i n t h e h e a rt o f t h e c o n ­

ti n e n t, i s r e p o rte d t o be t h e N o. 1 e x p o rti n g s t a t e i n t h e N ati o n. A n d, i t s p o siti o n 

i n t h i s r e g a r d i s ill u s t r a ti v e o f t h e r o l e o f i n la n d w at er w a y t r a n s p o rt a ti o n i n 

U. S. f o r ei g n t r a d e. B ec a u se a l l ri v e r s fl o w t o t h e s e a, t h e i n la n d w at er w a y s a r e 

a d i r e c t, l o w -c o st c o n n e cti o n b et w ee n t h e i n t e r i o r a n d t h e c o a st s. T h e G re at L a k e sS t. La wre nc e Sea wa y s y st e m c o n n e cts t h e Mi d dl e W est w it h t h e A tl a n ti c , a n d t h e 

s y st e m o f t h e M i s si s si p p i R i v e r a n d i t s n a vi g a ble t r i b u t a r i e s , w it h t h e G ulf C o a st. 

S u c h s t a t e s a s M i n n e s ota , W is c o n si n , I n dia n a, M is s o u ri a n d O hi o s h a r e w it h I ll i n o i s 

i n t h i s a c c e s s t o t h e o c e a n p o rt s. T he d e v el o p m e n t o f b a r g e - c a r r y i n g s h i p s i n 

r e c e n t y e a r s h a s e n h a n ce d t h e f o r ei g n tr a d e r o l e o f t h e c o n ti n e n t a l i n t e r i o r v i a 

t h e i n la n d ri v e r s.
1 0 4 7

T h e p a rti c u l a r r e s o u r c e s o f t h e i n t e r i o r a r e s u c h t h a t t h e w at er w a y c o n n ec ­

ti o n s w it h t h e s e a c o a st s s e r v e m ai n l y a s e x p o rt r o u t e s. T h e y a l s o s e r v e a s l o w ­

c o st m a r k eti n g c h a n n els fr o m t h e i n t e r i o r t o d o m e sti c c o a s t a l m a r k ets i n c o m p eti ti o n 

w it h f o r ei g n i m p o rts . I n e it h e r c a s e, t h e y str e n g t h e n t h e U. S. b ala n c e o f p a y m e nts.

Far m c r o p s fr o m M i n n e s ota , K a n sa s, I o w a, I ll i n o i s a n d O hi o m o ve d o w n t h e 

M i s si s si p p i R i v e r t o t h e G ulf C o a st f o r e x p o rt. V al u e d i n t h e b illi o n s o f d o ll a r s , 

t h e y r e p r e s e n t a n i m p o rta nt p o rti o n o f t o t a l fa r m i n c o m e i n t h e M i d dle W est. C o mp a r a b le q u a n titi e s o f w h e at, c o r n a n d o t h e r p r o d u cts a r e e x p o rt e d v i a D ul u t h , 

Mil w a u ke e a n d C hic a g o. S e r vi n g d o m e sti c c o a st a l m a r k ets , h u n d re d s o f m illi o n s o f 

d o ll a r s w o rt h o f d o m e sti c s t e e l o f t h e m aj o r st e e l- p r o d u c i n g d i s t r i c t s o f C hic a g o, 

P itt s b u r g h a n d t h e O hi o R i v e r a r e c a r ri e d t o t h e G ulf i n d i r e c t c o m p eti ti o n w it h 

s t e e l fr o m J a p a n a n d t h e C o m m o n M ar k et. I n e v e r - ri s i n g t o n n a g e s, bit u m i n o u s c o al 

fr o m t h e O hi o R i v e r B as i n m o ve s v i a t h e M i s si s si p p i R i v e r t o G ulf C o as t e l e c t r i c 

u t i l i t i e s i n c o m p eti ti o n w it h p etr ole u m f u e l s o f w hic h t h e U nit e d S t a t e s i s , i n 

e x c e s si v e m a g nit u d e, a n i m p o rti n g N ati o n.

E ne r g y s u p pl y a n d d i s t r i b u ti o n . — Of t h e m o re t h a n 5 0 3 m illi o n t o n s o f c a r g o 

c a r ri e d a n n u all y o n t h e i n la n d w ate r w a y s, e x cl u di n g t h e G re at L a k e s, a p p r o xi m ate l y 

3 3. 4 p e r c e n t c o n si s t s o f p etr ole u m a n d p etr ole u m p r o d u cts . A n ot h er 2 2. 7 p e r c e nt 

i s c o al a n d li g n it e . I n s u m, t h e s e c r i t i c a l f u e l s c o n s tit u t e o v e r 5 6 p e r c e n t o f 

o u r i n la n d w at er w a y c o m m er ce. T his i m p o rta nt r o l e pla y e d b y I nla n d w ate r c a r ri a g e

i n A m e ric a' 8 e f f o r t t o d e li v e r li m it e d e n er g y r e s o u r c e s a t l o w c o st t o d i s t a n t 

d o m e sti c c o ns u m i n g a r e a s s h o w s e v e r y I n d i c a ti o n o f r a p i d g r o w t h.

T his p r o s p e ct i s b o r n e o ut i n t h e 1 9 7 4 r e p o rt o f A. T. K e ar n e y, I n c ., o f 

C hic a g o, w h o se " D o m es ti c W ate r b o r n e S hi p pi n g M ar ket A n al y sis " f o r t h e U. S. M ariti m e A d m i n is tr ati o n p r o j e c t e d a n 8 2 p e r c e n t I n c r e a s e i n i n la n d w ate r w a y s t r a n s ­

p o rt a ti o n o f c o al b y t h e y e a r 2 0 0 0, a 2 9 p e r c e n t i n c r e a s e f o r p etr ole u m f u e l s 

a n d l u b ri c a n t s, a 4 9 9 p e r c e n t i n c r e a s e f o r c h e m ic als — ma n y o f t h e m h y d r o c a r b o n
1 0 4 8

ri v a ti v e s o f p etr ole u m — a n d a 6 p e r c e n t I n c r e a s e i n t h e w ate r w a y s m o ve m e nt 

o f c r u d e o i l a n d li q u i f i e d g a s. C l e a rl y, w at er w a y s fi g u r e p r o m i n e ntl y i n t h e 

d i s t ri b u ti o n o f A m e ri c a's e n er g y s u p p li e s.

E ne r g y c o n s e r v ati o n. — As t h e S u b c o m mitte e i s a w are , t h e r e ha ve be e n s e v e r al 

r e s e a r c h att e m p ts t o c o m pa re t h e e f fi c i e n c y o f t h e v a ri o u s f r e i g h t m o de s i n te r m s 

o f o v e r a ll p r o d u c ti v it y p e r u n it o f e n er g y c o ns u m e d. G e n e r all y, w ate r c a r ri e r s 

ha ve b ee n s h o w n t o be s li g h tl y s u p e ri o r t o t h e i r c l o s e s t r i v a l s , r a il r o a d s, i n 

t h e s e c o m p a ri s o n s. B ut, we f u ll y r e c o g niz e t h a t s u c h g e n e r a liti e s — b a se d u p o n 

n ati o n w i d e a v e r a g e s — a r e o f v e r y li m it e d u s e f u l n e s s.

N e v e rt h el e s s, t h e c o m bi ne d e n e r g y, ra w m a t e ri a l s, a n d c a p it a l e f fi c i e n c y o f 

w ate r w a y s m ust be str o n g l y e m p h a si z e d. A n d, we s t r e s s t h a t w he n e f fi c i e n c y i s c o nsi d e r e d fr o m t h e s e v a ri o u s st a n d p o i n t s, w at er w a y s ha ve c o n tri b u t e d g r e a tl y t o 

c o n s e r v ati o n a n d ca n c o nti n u e t o d o s o i n t h e f u t u r e i f w is el y u tili z e d i n c o n c e rt 

w it h t r a n s p o rt a ti o n pla n ni n g t h a t o pti m iz e s e ac h m o d e's I n h e r e n t a d v a nta g e s t o 

p e rf o r m d i f f e r e n t t a s k s.

E n vir o n m e nta l v a l u e s. — I n r e c e n t y e a r s, t h e c o n str u cti o n o f ne w n a v i g ati o n 

p r o j e c t s h a s g e n e r ate d h e ate d e n vir o n m e nta l c o n tr o v e r s y. I n p r a c ti c a ll y a l l i n ­

st a n c e s, t h e c o ntr o v e r s y r e l a t e s t o c o n fli c t s i n e n vir o n m e nta l v a l u e s, i n p a rti c u l a r 

b et w ee n t h o s e e n v ir o n m e n ta li sts w h o s e e k t o p r e s e r v e t h e u n c h a n g e d, n a t u r a l f e a ­

t u r e s o f w ate r r u n o f f i n t h e i r w il d s t a t e , a n d t h o s e w h o s e e k t o e n h a n c e t h e e l e ­

m e n ts o f h u ma n a c c e s s, r e c r e a ti o n a n d o ut d o o r li v i n g . N a vi g ati o n i m pr o v e m e n ts a r e 

u s u all y a s s o c i at e d w it h i m pr o v e m e n ts i n r e c r e a ti o n a l b o ati n g, ca m pi n g, fi s h i n g a n d 

t h e li k e , a n e n vir o n m e nta l a p p e al o f s p e c i a l v al u e f o r p r o j e c t s w it h i n d ri v i n g 

d i st a n c e o f cr o w de d m etr o p o li t a n a r e a s.

T he gr o w t h i n ri v e r n a v i g ati o n h a s p r o v e n e s p e c i a ll y h ar m o ni o u s w it h w ate r

p u ri fi c a ti o n . T h e b r il li a n t l y s u c c e s s f u l pr o gra m o f t h e O hi o R i v e r V all e y S a n it a ti o n
1 0 4 9

C o m missi o n h a s b ee n e s p e c i a ll y n o t a b l e I n a n e r a o f a n e n o r m o u sl y e x p a n di n g v ol u m e 

o f f r e i g h t t r a n s p o rt a ti o n o n t h e sa m e w ate r s.

W at er tr a n s p o rt a ti o n I s p e rf o r m i n g a ye o me n s e r v i c e i n a i r p u ri f i c a ti o n p r o ­

gr a m s. T he w ate r b o r n e m o ve m e nt o f l o w - s u lf u r f u e l o i l t o e l e c t r i c u t i l i t i e s h a s 

b e e n r a p i d l y gr o wi n g. M il li o n s o f t o n s o f l o w - s u lf u r W es te r n c o al a r e n o w pr o gr a m m e d 

t o m o ve b y r a il - w a t e r c o n n e cti o n s o n t h e O hi o a n d M i s si s si p p i R i v e r s f o r b a r g e 

d i s t r i b u ti o n t h r o u g h o ut t h e M i d dle W est. L ar g e t o n n a g e s o f b u r nt li m e f o r e l e c t r i c 

u t i l i t y st a c k g a s s c r u b bi n g a r e e n t e ri n g I n t o I nla n d w ate r w a y c o m m erc e.

W hile d re d gi n g i s a m aj o r c o n st r a i n t o n t h e m ai n te n a n c e o f a d e q u ate n a v i g ati o n 

d e pt h s I n s o me a r e a s, t h e C or p s o f E n gi n e e rs h a s o v e r t h e y e a r s d is c o v e r e d ma n y 

e n vir o n m e nta ll y v al u a b le u s e s o f t h e m a t e ri a l re m o ve d fr o m n a v i g ati o n c h a n n els . 

A r ti f i c i a l " s p o il i sl a n d s " o ft e n be c o m e p r o d u cti v e m a rs hla n d s a n d ha ve bec o m e h a v e n s 

f o r m i g r at o r y w ate rf o w l a n d o t h e r w il d li f e .

W hile pla c e m e nt o f l o c k s a n d da m s d o u n d e nia bl y c h a n g e t h e n a t u r e o f ri v e r s , 

i t d o e s n ot f oll o w t h a t t h i s c h a n g e I s al w a y s d e tri m e n t a l. W at er q u a lit y , a n d 

I n d e e d fi s h i n g , w er e i m pr o v e d — n ot da ma ge d — b y t h e s y st e m o f r e s e r v o i r s w hi c h 

wa s c o n str u ct e d f o r n a v i g ati o n a n d o t h e r p u r p o s e s o n t h e A r k a n sa s R i v e r s y st e m.

I I . C O N TI N UI N G E F F O R TS T O I M P O S E W AT E R W A Y T O L L S O R U S E R C H A R GE S

D e s pit e t h e ma n y c o n t ri b u ti o n s o f w at er w a y pr o gra m s t o w ar d a c hie v e m e nt o f 

n a ti o n a l g o als a n d o b j e c ti v e s, t h e e x p a n si o n o f t h e i n la n d n a v i g ati o n s y st e m t o 

m eet p r o j e ct e d ne w t r a n s p o rt a ti o n de ma n d s I s i n je o p a r d y a n d e v e n t h e p r o p e r m ai nte n a n c e o f t h e e x i sti n g s y st e m a t c u r r e n t c a p a c it y i s n ot a lt o g e t h e r c e r t a i n , 

c o n si d e ri n g t h e a c t u a l o r t h r e at e n e d r e s t r a i n t s , e n vir o n m e nta l c o n tr o v e r si e s, a n d 

o t h e r e nta n gle m e nts d ela y i n g s e a s o n al d re d gi n g a n d s t r u c t u r a l re pla c e m e nts — 

s u c h a s t h e c u r r e n t d i s p u t e I n v ol v i n g L o c k s a n d Da m 2 6 o n t h e M i s si s si p p i R i v e r

a t A lt o n, I ll i n o i s .
1 0 5 0

O ne f t h e c h i e f o b st a c l e s i s t h e c o nti n ui n g t h r e a t o f i m p o sit i o n o f s o me 

f o r m o f w at er w a y u s e r c h a r g e o r ta x o n w ate r b o r n e c o m m erc e — a t o p i c w hi c h h a s 

o c c u pie d m uc h o f t h e S u b c o m m itte e's a tt e n ti o n j u s t a s i t h a s t h a t o f o t h e r t r a n s ­

p o rt a ti o n a n d w ate r r e s o u r c e s p o li c y d e li b e r a ti o n s i n r e c e n t y e a r s. H i s t o ri c a ll y , 

F e d e r al w ate r w a y s p o li c y ^ h a s c o m bi ne d fr ee d o m o f n a v i g ati o n w it h F e d e r al r e s p o n sib i l i t y f o r c h a n n el m ai n te n a n c e a n d i m pr o v e m e n t, a n d ma n y b illi o n s o f d o ll a r s w o rt h 

o f p ri v a t e c a p it a l i n v e st m e nt i n w ate r w a y - o rie nte d m a n u f a ct u ri n g, p r o c e s si n g a n d 

d i s t r i b u ti o n f a c i l i t i e s h a s b e e n p r e d i c a t e d u p o n t h a t h i s t o ri c p o li c y . A st a r k 

r e v e r s a l o f e st a b li s h e d t o ll - f r e e w ate r w a y s p o li c y w o ul d d i s r u p t ec o n o m ic a c ti v it y 

i n c o u n tl e s s ri v e r v a ll e y c o m m u nitie s, c a u s e u n e m pl o y m e nt i n ma n y ri v e r - r e l a t e d 

b u si n e s s e s a n d i n d u s t ri e s, g e n e r at e h i g h e r p ri c e s f o r m illi o n s o f c o n s u m ers, a n d 

i m pe de t h e m ost e n e r g y - a n d c o s t - e f f i c i e n t m o de o f t r a n s p o rt a ti o n a v a il a b l e t o 

A m eric a n i n d u str y . T he p r e c i s e n at u r e o f t h e p r o s p e cti v e i m p a ct o f u s e r c h a r g e s

w o ul d d e p e n d t o a s u b st a n ti a l d e g re e o n t h e t y p e o f t o l l o r c h a r g e w hic h mi g ht

be i m p o se d.

T he m a tt e r o f w at er w a y u s e r c h a r g e s wa s b r o u g ht s h a r p l y t o t h e p u bli c a t ­

t e n ti o n b y t h e r e p o rt o f t h e Se c o n d H o o ve r C o m m issi o n i n 1 9 5 5 w hic h rec o m me n d e d 

c h a r g e s be i m p o se d o n u s e r s o f i n la n d w ate r w a y s s u f fi c i e n t t o r e c o v e r o p e r ati o n 

a n d m ai n te n a n c e c o st s. I n t h e 2 0 y e a r s si n c e t h e n, a n u m be r o f u s e r c h a r g e p r o ­

p o s a l s, v a r yi n g a s t o sc o p e a n d m a g nit u d e, ha ve b e e n m a d e, p ri n c i p a ll y i n t h e 

E x e c uti v e B ra n c h.

T wo C o n g re s si o n al st u d i e s r el e a s e d i n J a n u a r y 1 9 6 1 t o o k s o me w h at o p p o sit e 

vie w s o f u s e r c h a r g e s. T he S e n ate I n t e r s t a t e a n d F o r ei g n C o m m erce C o m m itte e's 

S p e cia l St u d y Gr o u p o n T r a n s p o rt a ti o n rec o m me n d e d a c o m pl e x s y st e m o f w at er w a y 

c h a r g e s t o r a i s e e n o u g h m o n e y t o r e c o v e r a l l c u r r e n t c a s h o u tl a y s b y t h e F e d e ra l

F or a f u ll d i s c u s si o n , s e e T H E O RI GI N A N D D E VE L OP ME NT O F T H E W A T E R W A YS P O LI C Y OF 

T H E U NI T E D S T A T E S, b y R o b ert W. a n d W illi a m J. H ull, p u bli s h e d b y t h e N ati o n al 

W at er w a y s C o n fe re n c e, I n c.
1 0 5 1

v er n m e nt. B ut, t h e S e n ate S el e ct C o n m ltte e o n N ati o n al W at er R e s o u rc e s r e p o rte d 

i t wa s " n ot o v e rl y c o n c er n e d w it h t h e c o st s h a ri n g a s p e ct o f o u r w ate r r e s o u r c e s 

p r o ble m s, b e c a u s e i t b e li e v e s t h a t t h e p r e s e n t p o li c i e s te n d t o e v e n o ut t h e 

s h a ri n g o f c o st s o v e r t h e l o n g r u n, a m o n g a l l t h e p e o p l e."

B et w ee n 1 9 6 4 a n d 1 9 6 9, t h e A d m i n is tr ati o n a n n u all y s u b m itte d d r a ft l e g i s ­

l a ti o n w hic h, i f e n a cte d, w o ul d h a v e l e v i e d a t a x s t a r ti n g a t 2 c e n t s p e r g all o n 

o n t h e f u e l u se d b y v e s s e l s h a vi n g a ma xi m u m d r a ft o f 1 5 f e e t o r l e s s . O ne o f 

t h e A d m i n i str a ti o n's p r o p o s als w o u l d ha ve r e q u ir e d a n a n n u al i n c r e a s e i n t h e f u e l 

ta x o f 2 c e n t s p e r g all o n o v e r a fi v e - y e a r p e ri o d — o r u lti m a t e l y a t a x o f 1 0

c e n t s p e r g a ll o n . N o ne o f t h e d r a f t b i l l s wa s e v e r i n tr o d u c e d o r c o n si d e r e d i n

t h e C o n g re ss.

I n 1 9 6 8, C o n g re ss e st a b li s h e d a se ve n- m e m be r N ati o n al W at er C o m mis si o n t o

a s s e s s w ate r r e s o u r c e s p r o g ra m s, p r o ble m s a n d p o li c i e s. T he C o m mis si o n is s u e d 

i t s p r o p o s e d r e p o rt i n N o ve m ber 1 9 7 2 a n d f i n a l r e p o rt i n J u n e 1 9 7 3. T h e pr o p o s e d 

r e p o rt u r g e d i m p o sit i o n o f w at er w a y f u e l t a x e s a n d l o c k a g e f e e s s o t h a t, " w it h i n 

t h e b o u n d o f a d m i n i str a ti v e f e a s i b i lit y , t h e u s e r c h a r g e s f o r i n d i v i d u a l w ate rw a y s, o r c l a s s e s o f w ate r w a y s, r e f l e c t d i f f e r e n c e s i n t h e c o st o f o p e r a ti n g a n d 

a n d m ai n ta i n i n g t h e m ." I n i t s f i n a l r e p o rt, h o w e v er, t h e C o m missi o n rec o m me n d e d 

f u e l t a x e s a n d l o c k a g e f e e s w hi c h w o ul d be u nif o r m o v e r " i n t e g r a l s e g m e nts o f 

t h e t o t a l w at er w a y s y ste m ."

I n N o ve m b er 1 9 7 4, P r e si d e n t F or d p r o p o s e d l e g i s l a ti o n t o I m p o se t o l l s i n 

t h e f o r m o f t o n - m il e ta x e s o n 2 0 s p e c ifi e d s h all o w - d r a ft w at er w a y se g m e nts a t 

a l e v e l s u f fi c i e n t t o r e c o v e r t o t a l n a v i g a ti o n - r e l a t e d o p e r ati o n a n d m ai n te n a n c e 

c o st s o n e a c h w ate r w a y . T he l e g i s l a ti o n wa s n ot I ntr o d u c e d i n t h e re m ai n i n g 

w ee ks o f t h e 9 3r d C o n gre ss a n d, a s y e t, h a s n ot b e e n r e s u b m it te d t o t h e 9 4t h 

C o n g re ss.

W it hi n t h e l a s t m o nt h, o f f i c i a l s o f t h e U. S. D e p art m e n t o f T r a n s p o rt a ti o n 

ha ve a n n o u n ce d t h a t l e g i s l a ti o n le v yi n g w at er w a y u s e r t a x e s w ill be p r o p o s e d t o

5 4 - 2 3 9 0 - 7 5 - 6 7
1 0 5 2

t h C o n gre ss a t a n e a rl y d a t e. I n A p ril, a s e n i o r D. O. T. p oli c y - m a k e r r e v e al e d 

t h a t c o n si d e r a ti o n wa s b ei n g gi v e n t o a w at er w a y f u e l t a x o f 4 c p e r g all o n o n 

a l l f u e l u se d b y v e s s e l s h a vi n g a ma xi m u m d r a ft o f 1 5 f e e t o r l e s s . I t wa s e s t i ­

m at e d t h a t s u c h a t a x , w hic h w o ul d a p pl y t o b ot h c o m m erc ial a n d r e c r e a ti o n a l 

v e s s e l s, w o ul d p r o d u c e a b o ut $ 1 0 0 m illi o n a n n u all y .

I I I . DI S C RI MI N A T O R Y A S P E C T S O F V A RI O U S W AT E R W A Y U S E R C H A R GE P R O P O S A LS

A w at er w a y u s e r c h a r g e, b y d e fi n iti o n , w o ul d b e d e si g n e d t o r e c o v e r F e d e ra l 

o u tl a y s fr o m t h e d i r e c t u s e r s o f t h e p u bli c f a c i l i t i e s t h e s e o u tl a y s p r o vi d e. I t 

i s i n h e r e n t i n t h e u s e r c h a r g e p ri n c i p l e t h a t t h e c h a r g e be a s s e s s e d, w it h a s cl o s e 

a n a p p r o xi m ati o n a B p r a c ti c a b l e , o n t h e d i r e c t b e n e fi c i a ri e s o f t h e w or ks o n w hi c h 

t h e o u tl a y s a r e ma de, a n d n ot o n s o m e o t h e r gr o u p o f t a x p a y e r s. T o t h e e x t e n t t h a t 

t h e b u r d e n o f s u c h a n i m p o sit i o n w o ul d be d i s t ri b u t e d w it h o ut s i g n i fi c a n t r e g a r d 

t o t h e i d e n tit y o f t h e d i r e c t b e n e fi c a ri e s o f t h e p u b li c w or ks i n q u e sti o n, i t 

w o ul d c e a s e t o b e a u s e r c h a r g e.

T h e se g m e nt t o l l . — As b et w ee n t h e v a ri o u s ri v e r s a n d c a n als i n d i f f e r e n t 

p a rt s o f t h e N ati o n, t h e c o st s t o t h e F e d e ra l g o v er n m e nt, p e r u n it o f c o m m er ci al 

t r a f f i c d i r e c tl y b e n e fit e d b y e a c h, v a r y e n o r m o u sl y. F or e x a m ple, a c c o r di n g t o 

t h e Ar m y C or ps o f E n gi n e e r s, a n n u al F e d e r al c o st s d u ri n g F i s c a l Y e ar s 1 9 7 0 - 7 4 p e r 

t o n - m il e o f c o m m er ci al t r a f f i c m o v e d i n c al e n d a r y e a r 1 9 7 3 o n t h e M is s o u ri Ri v e r 

a m o u nt e d t o 1 3. 9 m ill s, b ut o n t h e L o w er M i s si s si p p i R i v e r t o o nl y 0. 1 3 m ill s, l e s s 

t h a n 1 p e r c e nt a s m u c h. O t h e r w at er w a y se g m e nt c o st s a l s o v a r y d r a m a ti c all y. A n y 

c h a r g e, t o be a tr u e u s e r c h a r g e, i n o r d e r t o re c o m p e n se t h e g o v er n m e n t w it h r e a ­

s o n a ble a p p r o xi m ati o n fr o m t h e d i r e c t b e n e fi c i a ri e s, w o ul d h a v e t o d i f f e r e n ti a t e 

b et w ee n v a ri o u s se g m e n ts o f t h e w at er w a y s y st e m, a ll o tti n g h i g h e r r a t e s o f c h a r g e s
1 0 5 3

o n t h o s e se g m e n ts o f t h e s y st e m w h er e F e d e ra l c o st s a r e h i g h e r a n d t r a f f i c d e n s iti e s 

li g h t e r.

H o w e v er, b y r e l a ti n g t h e w at er w a y t o l l t o t h e F e d e r al c o st s o n e a c h p a rti c u l a r 

w at er w a y se g m e nt, ma n y t ri b u t a r y n a v i g ati o n c h a n n els w o u l d u n d o u bte dl y b e p ut o ut 

o f b u si n e s s i n s h o rt o r d e r. E a rl y c a n d i d ate s f o r al m o st c e r t a i n c l o s u r e w o ul d 

I n cl u d e t h e A ll e g h e n y R i v e r, A p al a c h ic o la - C h atta h o o c h e e - F li n t W at er w a y, A tl a n ti c 

I n t r a c o a s t a l W at er w a y, C ol u m bia - S n a k e R i v e r, K e n t u c k y R i v e r, M is s o u ri R i v e r a n d 

W illa m ett e R i v e r. U nle s s a le n g t h y p h a s e -i n p e ri o d w er e p r o vi d e d, ne wl y o p e n e d w ate rw a y s — i n cl u d i n g t h e M c C le ll a n - K e rr A r k a n sa s R i v e r W at er w a y a n d t h e O u a c hit a - B la c k 

W at er w a y - - w o ul d be ni p p e d i n t h e b u d a n d w ate r w a y s n o w u n d e r c o n str u c ti o n , s u c h 

a s t h e 2 5 3 - m il e T e n n e ss e e- T o m bi g b e e W at er w a y, w o ul d n e v e r h a v e a c h a n c e. A n y 

n a v i g a ti o n c h a n n els w hi c h m i g ht be cl o s e d d o w n w o ul d, o f c o u r s e, di m i n is h t h e 

a m o u nt o f t r a f f i c m o vi n g o n t h e p ri n c i p a l w ate r w a y s, si n c e m uc h o f t h e p r e s e n t t r a f ­

f i c o n t h e O hi o a n d M i s si s si p p i R i v e r s o ri g i n a t e s o r t e r m i n a t e s o n t h e t r i b u t a r i e s . 

A n d, w it h d e c r e a s e d t r a f f i c o n t h e m ai n a r t e r i e s , t h e se g m e n t t o l l s i n e f f e c t o n 

t h o s e ri v e r s w o ul d ha v e t o be I n c r e a s e d — i n a l l li k e li h o o d , d ri v i n g m o re t r a f f i c 

fr o m t h e ri v e r s a n d n e c e s sit a ti n g a n o t h e r r o u n d o f t o l l i n c r e a s e s.

T h e f u e l t a x . — A w at er w a y f u e l ta x w o ul d a d m it n o d i f f e r e n ti a ti o n w h ate v e r b et w ee n u s e r s o f t h e v a ri o u s s y st e m s o r s e g m e nts o f t h e I n la n d w ate r w a y s.

A p pli e d a t a u nif o r m r a t e t h r o u g h o ut t h e c o u n tr y, s u c h a t a x d o e s n ot e v e n ma ke 

a n e f f o r t a t a p p o rti o n i n g c h a r g e s t o t h e d i r e c t b e n e f i c i a r i e s. T o a s s e s s a c h a r g e 

a g a i n st a t o w b o at o p e r a t o r o n t h e O hi o R i v e r, w he re F e d e r al c o st s p e r t o n - m il e a r e 

v e r y l o w, a t a l e v e l e q u i v al e n t t o t h a t a s s e s s e d a g ai n st a n o p e r a t o r o n t h e C ol u m bi a 

R i v e r, w he re F e d e r al c o st s p e r t o n - m il e a r e 1 2 ti m e s a s h i g h, i s t o i m p os e, n ot a 

u s e r c h a r g e, b ut a n e x ci s e t a x. T h e O hi o R i v e r o p e r a t o r h a s n o p r o s p e ct o f e v e r 

u si n g t h e n a v i g ati o n f a c i l i t i e s o f t h e C ol u m bi a, s e v e r a l t h o u s a n d m il e s a w a y a n d 

w it h n o i n la n d w at er w a y c o n n e cti o n. He i s n ot a b e n e fi c i a r y o f t h e C ol u m bi a Ri v e r
1 0 5 4

or ks a n y m o re t h a n i s a c iti z e n I n a n y o t h e r o c c u p ati o n I n t h e O hi o R i v e r V all e y. 

T h e r e f o r e, s u c h a c h a r g e le v ie d a g ai n st hi m I s n ot a u s e r c h a r g e.

I n I t s 1 9 5 8 - 6 0 st u d y re c o m m e n di n g I m p o sit i o n o f w at er w a y u s e r c h a r g e s, t h e 

S e n ate C o m m erce C o m m itte e's S p e cia l St u d y Gr o u p s u g g e ste d c o n si d e r a ti o n o f l o c k a g e 

f e e s, e x ci s e t a x e s o n ne w t o w b o ets a n d b a r g e s, a n n u al r e g i s t r a ti o n f e e s, a n d a 

p o s si b l e f u e l t a x. " A lt h o u g h a w at er w a y f u e l t a x a s s e s s e d a t a hi g h r a t e w o ul d 

be e a s y t o a d m i n is te r a n d w o ul d p r o vi d e s u b s t a n ti a l r e v e n u e s, w he n c o n si d e r e d 

w it h t h e o t h e r c h a r g e s s u g g e ste d, I t p r o b a bl y w o u l d r e s u lt I n e x c e s si v el y d i s p r o ­

p o rti o n a t e pa y m e n ts b y u s e r s o f t h o s e w ate r w a y s w hic h r e q u ir e r e l a ti v e l y s m all 

e x p e n dit u r e s f o r d o m e sti c n a v i g ati o n a n d t h e r e b y p r e v e nt t h o s e u s e r s fr o m f u ll y 

e x p l o iti n g t h e r e a l ec o n o m y o f s u c h o p e r a ti o n , " t h e r e p o rt s a i d .

C o n s e q u e ntl y, t h e St u d y Gr o u p rec o m me n d e d t h a t a w at er w a y u s e r c h a r g e s s y st e m 

s h o ul d ha v e a s o n e o f i t s b a sic f e a t u r e s t h e re q uir e m e nt t h a t "t h e c h a r g e s s h o ul d 

be r e a s o n a bl y c o m m e n s u rate w it h u s e o f t h e d i f f e r e n t w at er w a y s a s r e l a t e d t o t h e 

a m o u nt o f F e d e r al e x p e n d it u r e s i n v ol v e d i n t h e i m pr o v e m e n t, m ai n te n a n c e a n d o p e r a ­

ti o n o f t h o s e w ate r w a y s."

L e vie s o n s h all o w - d r a ft s hi p pi n g i n d e e p - d r a ft c h a n n els . — A f u e l t a x, s u c h 

a s t h a t n o w u n d e r c o n si d e r a ti o n b y t h e D e p ar t m e nt o f T r a n s p o rt a ti o n, l e v i e d e xc l u si v e l y a g ai n st s h all o w - d r a ft t r a f f i c , i n i t s a p p li c a ti o n t o t h e d e e p - w ate r 

c h a n n els , w o ul d d e p a rt e v e n m o re d e c i si v e l y fr o m t h e u s e r c h a r g e p ri n c i p l e . S u c h 

a t a x w o ul d d e li b e r a t e l y e x e m pt t h e d i r e c t b e n e fi c i a ri e s o f d e e p - d r a ft c h a n n el 

m ai n te n a n c e, w hil e le v y i n g a ta x a g ai n st s h all o w - d r a ft v e s s e l s u si n g d e e p - d r a ft

c h a n n els , alt h o u g h t h o s e v e s s e l s o b vi o u sl y d e ri v e n o s u b st a n ti a l b e n e fit fr o m t h e 

g r e a t e r d e pt h . I n ste a d o f i g n o ri n g t h e p ri n c i p l e o f u s e r c h a r g e, a s w o ul d a f u e l 

ta x u nif o r m l y a p p li e d t o a l l v e s s e l d r a f t s , t h e e x cl u si v e l y s h all o w - d r a ft i m p o sit i o n 

w o ul d e x p li c itl y c o n t r a d i c t i t s u s e r c h a r g e s t a t u s.
1 0 5 5

O n t h e d e e p - d r a ft I n la n d w ate r w a y s, m ost P e d e r al c o st s a r e I n c u rr e d f o r 

t h e b e n e fit o f d e e p - d r a ft s h i p s. I n a p a p e r s u b m itte d t o t h e S e n ate C o m mitt ee 

o n I n t e ri o r a n d I n s u l a r A f f a i r s, t h e D e p ar t m e nt o f T r a n s p o rt a ti o n e sti m ate d 

F i s c a l Y ea r 1 9 7 2 o p e r a ti o n a n d m ai n te n a n c e c o st s o f t h e i n la n d w ate r w a y s a t 

$ 1 1 4 m illi o n ( $ 7 5 m illi o n s p e nt b y t h e Ar m y C or p s o f E n gi n e e rs a n d $ 3 9 m illi o n 

b y t h e U. S. C o a st G ua r d ) a n d o p e r ati o n a n d m ai n te n a n c e e x p e n d it u r e s o n t h e G re at 

L a k e s, i n c o a s t a l h a r b o r s, a n d o n d e e p - d r a ft c o n n e cti n g c h a n n els w er e e sti m ate d 

a t $ 4 0 0 m illi o n ( $ 1 5 9 m illi o n b y t h e C or ps a n d $ 2 4 1 m illi o n b y t h e C o a st G u a r d ).

E x cl u di n g t h e G re at L a k e s, t h e d e e p - d r a ft w ate r w a y s e x ce e d w ell o v e r 1, 0 0 0 

m il e s o f t h e i n la n d w at er w a y s y st e m , i n cl u d i n g s u c h r e a c h e s o f t h e ri v e r s a s t h e 

H u ds o n R i v e r b et w ee n Al b a n y a n d L o we r M a n h att a n, t h e M i s si s si p p i fr o m B at o n R o u ge 

t o t h e G ulf o f M e x ic o, t h e C ol u m bi a fr o m t h e D all e s t o t h e P a c i fi c , a n d n u m er o u s 

o t h e r s. I n t h e s e e x t e n si v e c o a st a l r e g i o n s, s h all o w - d r a ft v e s s e l s m o ve i n d o m e sti c 

c o m merce i n t h e sa m e str e a m o f t r a f f i c a s d e e p - d r a ft, o c e a n - g oi n g s h i p s - - o ft e n 

i n d i r e c t c o m p eti ti o n w it h t h e m . C o n si d e ri n g t h a t F e d e r al o u tl a y s i n t h e s e r e a c h e s 

a r e al m o st e x c l u si v e l y f o r t h e b e n e fit o f d e e p - d r a ft s h i p p i n g, a f u e l t a x o r o t h e r 

u s e r c h ar g e s o l e l y o n t h e s h all o w - d r a ft c o m m erc e w o u l d c o n s tit u t e t h e u lti m a t e 

p e r v e r si o n o f t h e u s e r c h a r g e p ri n c i p l e .

T h e p e r v e r si o n w o ul d be e s p e c i a ll y fl a g r a n t i n t h e c o m p eti ti o n b et w e e n d o m e sti c, 

s h all o w - d r a ft b a r gi n g a n d f o r e i g n - fl a g i m p o rts . F o r e x a m ple, t h e H o ust o n S hi p 

C h a n n el, 5 2 m il e s l o n g, c a r ri e s P itt s b u r g h a n d C hic a g o s t e e l i n s h all o w - d r a ft d o m e st ic 

b a r gi n g n o rt h b o u n d t o H o u st o n c o n s u m ers. T h e c h a n n el a l s o c a r ri e s J a p a n e s e a n d 

C o m m on M ar k et s t e e l n o rt h b o u n d t o H o u st o n i n d i r e c t c o m p eti ti o n w it h t h e d o m e sti c 

p r o d u ct. T he u s e r c h a r g e e x cl u si v e l y o n s h all o w - d r a ft b a r gi n g w o ul d be le v ie d o n 

t h e d o m e st ic s t e e l b ut n o t o n t h e f o r ei g n — a p r o t e c ti v e t a r i f f i n r e v e r s e. I 

a m s u r e t h e J a p a n e s e s t e e l m a g n ate s w o ul d r e g a r d s u c h a u s e r c h a r g e a s t h e u lti m a t e

i n i n t e r n a ti o n a l c o o p e r ati o n.
1 0 5 6

I n a d d iti o n , v e r y e x te n si v e re a c h e s o f t h e A m eric a n w ate r w a y s a r e n a vi g a ble 

i n t h e i r n a t u r a l s t a t e a n d r e p r e s e n t o nl y m i n i m al o u tl a y s. T h es e i n cl u d e s u c h 

w ate r s a s L o n g I sl a n d S o u n d, C h es a p ea k e Ba y, P u g et S o u n d a n d t h e d e e p - d r a ft ri v e r s 

p r e v i o u sl y m e nti o n e d. T he M i s si s si p p i R i v e r, f o r 1, 1 5 0 m il e s bel o w S t. L o uis , i s 

a n o p e n, n o n - c a n aliz e d w ate r w a y . T h er e a r e a l s o s u b s t a n ti a l m o ve me nts o f s h all o w - 

d r a ft t r a f f i c i n t h e o p e n w ate r w a y s o f t h e G re at L a k e s, n o ta b l y o n La ke M ic hi g a n 

b et w ee n C hic a g o a n d t h e P o rt o f Mil w a u ke e. A f u e l ta x o n s h all o w - d r a ft v e s s e l s 

o p e r ati n g i n t h e s e d e e p - w ate r c h a n n els w o ul d b e a r n e g ll g a b l e r e l a ti o n s h i p t o F e d e r al

c o st s.

I V. I N E VI T A B L E E S C A L A TI O N O F U S E R C H A R GE S I N T H EI R I MP A C T O N T H E E C O N O M Y

A b u ilt - i n f e a t u r e o f a n y w at er w a y u s e r c h a r g e g e a r e d t o re c o v e r F e d e r al o u tl a y s o n w at er w a y o p e r ati o n a n d m ai n te n a n c e i s t h e i n e v it a b ilit y o f e s c a l a ti o n .

T h e d ete r m i n ati o n o f t h e t a x r a t e p e r g all o n o f f u e l, o f c o u r s e, a p p e a r s a si m ple 

m att e r o f d i v i d i n g F e d e r al o u tl a y s b y f u e l c o n s u m pti o n. B ut, t h e r e l a ti o n s h i p i s 

n ot s o si m ple . Y ea r b y y e a r w it h ri s i n g la b o r r a t e s a n d m a t e ri a l s c o st s, F e d e r al 

o u tl a y s f o r w at er w a y o p e r a ti o n a n d m ai n te n a n c e g o u p. As l o c k a n d da m i n s t a ll a ti o n s 

a g e, m ai n te n a n c e c h a r g e s w ill ri s e s t i l l m ore. I n 1 9 7 0, F e d e r al o u tl a y s f o r o p e r a ­

ti o n a n d m ai n te n a n c e o f s h all o w - d r a ft n a v i g ati o n w or ks w er e a b o ut $ 1 0 0 m illi o n .

I n 1 9 7 5, t h e y w er e u p t o a p p r o xi m ate l y $ 1 4 9 m illi o n . T h e y ma y be e x p e cte d t o r i s e

f a s t e r i n t h e f u t u r e. E n vir o n m e ntal re q uir e m e nts f o r s u c h w o r k a s c h a n n el d re d gi n g 

h ol d t h e p r o s p e ct o f I n c r e a si n g t h e s e c o st s a s m uc h a s fi v e - f o l d . T h u s, i f si m ple 

a rit h m e ti c i n d i c a t e s t h a t a f u e l ta x o f 4 c p e r g all o n w o ul d r e c o v e r c o st s o f o p e r a ­

ti o n a n d m ai n te n a n c e i n 1 9 7 5, we ca n be s u re t h a t t h e t a x p e r g all o n w ill r i s e

p r o g r e s si v el y i n e a c h c o mi n g y e a r.

T o h ei g hte n t h e p r o s p e ct o f e s c a l a ti o n , we m ust o b s e r v e t h a t F e d e r al o u tl a y s

f o r o p e r ati o n a n d m ai n te n a n c e o f n a v i g ati o n f a c i l i t i e s a r e fi x e d — t h a t i s , t h e y
1 0 5 7

a r e al m o st t o t a ll y u n r e s p o n si v e t o c h a n g e s i n t h e t o n n a g e o f t r a f f i c a n d g all o n a g e 

o f f u e l c o ns u m e d. C h a n ne l m ai n te n a n c e i s g o v er n e d b y n a t u r a l f o r c e s s u c h a s str e a m 

fl o w , s e di m e n ta ti o n a n d t h e li k e . T he m ai n te n a n c e a n d o p e r ati o n o f l o c k s a n d da m s 

b e a r s v i r t u a ll y n o r e l a ti o n s h i p t o t h e v ol u m e o f t r a f f i c o r t o f u e l c o n s u m pti o n.

T h e F e d e r al o u tl a y f o r o p e r ati o n a n d m ai n te n a n c e o f s h all o w - d r a ft n a v i g ati o n 

f a c i l i t i e s m u st be vie w e d a s al m o st 1 0 0 p e r c e n t a s a fi x e d c o st i n i t s r e l a ti o n s h i p 

t o t h e v ol u m e o f t r a f f i c a n d g all o n a g e o f f u e l.

B ut i n re s p o n s e t o a f u e l t a x i m p o sit i o n, t h e f u e l c o n s u m pti o n m ust be e x p e cte d

t o d e c li n e. T h e ta x r a t e o f 4c a g all o n c u r r e n tl y u n d e r c o n si d e r a ti o n w o ul d a m o u nt

t o a b o ut 6 p e r c e n t o f t o t a l c a r r i e r o p e r ati n g c o st s — a c o st i n c r e a s e t o be i m p o se d

u ni q u el y o n t h i s m o de o f tr a n s p o rt a ti o n . I n e v it a b l y , m a r g i n al c a r r i e r s w o ul d be 

f o r c e d o ut o f b u si n e s s, a n d f o r a l l c a r r i e r s s o m e t o n n a g e w o ul d be d i v e rt e d t o 

c o m p eti ti v e m o de s o f tr a n s p o rt a ti o n . T r a f fi c gr o w t h w o ul d t h u s be r e t a r d e d o r, n ot

I m p r o b a bl y, la u n c h e d o n a p r o c e s s o f d e c li n e.

T h u s, t h e ri s i n g c o st s o f o p e r ati o n a n d m ai n te n a n c e t o t a ll y u n r e s p o n si v e t o

v a r yi n g v ol u m es o f t r a f f i c a n d f u el c o n s u m pti o n w o ul d ha ve t o be r e c o v e r e d fr o m a

r e l a ti v e l y s t a t i c o r di m i n is hi n g t a x b a s e. I n e v it a b l y , r a t e s w o ul d ha ve t o be

I n c r e a s e d. B ut t h e i n c r e a s e i n r a t e s w o ul d n ot te r m i n at e t h e p r o c e s s. A n y i n c r e a s e

i n r a t e s w o ul d si m pl y re d u c e s t i l l f u rt h e r t h e v o l u m e o f t r a f f i c a n d t h e g all o n a g e

o f f u e l c o n s u m pti o n, r e q u iri n g f u rt h e r s u c c e s si v e i n c r e a s e s i n t h e ta x r a t e , i n ­

d u ci n g t h e r e b y t h e c o n st a n tl y r i s i n g r a t e o f f u e l t a x o n a p e r s i s t e n tl y d e cli n i n g 

v ol u m e o f t r a f f i c ai d g all o n a g e o f f u e l. A n e q ull i b r u m w o ul d u lti m a t e l y be 

r e a c h e d, p re s u m a bl y w it h a v ol u m e o f i n la n d w at er w a y t r a f f i c re d u c e d t o o nl y a 

r e si d u e o f i t s p r e s e n t m a g nit u d e.

A n e x ci s e t a x i n d i s g u i s e . — W hile t h e w at er w a y f u e l ta x i s d e si g n ate d a s a

u s e r c h a r g e, t h e p r a c ti c a l cir c u m sta n c e s o f i t s a p p li c a ti o n w o ul d be s u c h a s t o

ma ke i t , i n f a c t, n ot a u s e r c h a r g e, b ut m e re l y a n o t h e r e x ci s e t a x. P r o p o s e d, a s
1 0 5 8

 i s , i n t h e u s e r c h a r g e g u i s e, t h e ta x w o ul d c e r t a i n l y le n d m o me nt u m t o t h e u s e r

c h a r g e m o ve m e nt a n d i n tr o d u c e t h e p r o s p e ct o f e s c a l a ti o n a n d o f s u b se q u e nt u s e r 

c h a r g e a n d t o l l i m p o sit i o n s o n t h e A m eric a n w ate r w a y s a t l e v e l s w it h n o d i s c e r n a b l e

u p p e r li m it. T he o u tl o o k f o r s h all o w - d r a ft w at er w a y t r a n s p o rt a ti o n w o ul d be 

s e ri o u sl y i n j u r e d a n d t h e c o nti n u e d i n d u s t ri a l d e v el o p m e n t o f t h e N a ti o n's ri v e r 

v a ll e y s a n d o t h e r c o m m u nitie s, o ri e n t e d t o s h all o w - d r a ft w ate r tr a n s p o rt a ti o n ,

s u b s t a n ti a ll y dis c o u r a g e d. Y et, w it h a l l t h e s e i n j u ri o u s c o n s e q u e n c e s, c h a r a c ­

t e r i s t i c o f u s e r c h a r g e i m p o sit i o n, t h e pr o p o se d 4 - c e n t f u e l ta x w o ul d b e, n ot a 

t r u e u s e r c h a r g e, b ut a n e x ci s e t a x , i n as m uc h a s i t s i n ci d e n c e w o ul d b e a r n o

d i s c e r n a b l e r e l a ti o n s h i p t o t h e b e n e fit s o f p a rti c u l a r w at er w a y i m pr o v e m e n ts.

S u c h a ta x w o ul d be e s p e c i a ll y i n j u ri o u s t o i n t e r i o r r e g i o n s, n ota b l y w it h 

r e s p e c t t o s t e e l, c o al, p etr ole u m , c h e m ic als , al u m i n u m a n d fa r m i n g. I r o n i c a ll y ,

i t s r e v e r s e I m pa ct w o ul d b e t o str e n g t h e n c o m p eti ti v el y t h e f o r ei g n p r o d u c e r s,

e s p e c i a ll y o f s t e e l a n d p etr ole u m , si n c e v e s s e l s c a r r y i n g t h e s e i m p o rt e d p r o d u cts 

w o ul d be e x e m pt fr o m t h e t a x . Be y o n d t h i s , i n i t s u lti m a t e b u r d e n o n t h e c o n s u m er, 

i t w o ul d be o n e o f t h e m ost w i d el y d if f u s e d a n d c o m ple te l y c o n c e ale d ta x e s i m a gi n a ble . 

E x cis e ta x e s te n d t o p yra mi d a s t h e y a r e t r a n s m itt e d , i n t h e f or m o f h i g h e r p ri c e s, 

fr o m t h e p o i n t o f i m p o sit i o n t o t h e c o ns u m er. T his i s b e c a u s e ma n y b u si n e s s fi r m s 

d ete r m i n e s e lli n g p ri c e s b y a d di n g a fi x e d p e r c e nta g e t o c o s t s. S u b se q u e n t t o t h e

p o i n t o f i m p o sit i o n o f s u c h a t a x , i n t h e c o u rs e o f r e p e at e d p r o c e s si n g a n d f a b ri ­

c a ti n g , a n d i n t h e d i s t ri b u ti o n o f t h e s e m a t e ri a l s a n d t h e i r i n n u m e ra ble p r o d u cts ,

t h e n u m be r o f r e s a l e p o i n t s a t w hic h t h e p y ra m i d i n g p r o c e s s c o ul d o c c u r i s a t a

ma xi m u m. T h e p o t e n ti a l m a g n if ic ati o n o f t h e i n i t i a l ta x c o st w o ul d t h u s be a t i t s

g r e a t e s t.

W ri ti n g i n T h e Ne w Y or k J o u r n al o f C o m m erce o n A p ril 1, 1 9 7 5, Mr. S t u a rt 

Ar m o u r, f o r m e rl y ec o n o m ic a d v i s o r t o t h e S t e el C o m p a n y o f C a n a d a a n d n o w p r e si d e n t

a n d g e n e r al m a n a g er o f t h e G re at La ke s W at er wa ys D e v el o p m e nt A s s o cia ti o n, d is c u s s e d

t h e i m p ac t o f S t. La wre nc e Se a w a y t o l l s o n C a n a d ia n fa r m e rs a n d c o n s u m ers. N oti n g
1 0 5 9

a t a si n g l e s h i n c a r r y i n g g r a i n , ir o n o r e o r c o al t r a n s iti n g t h e Se a w a y fr o m

M o ntr e al t o La ke O nta ri o a n d t h e W ella n d C a n al fr o m La ke O nta ri o t o La ke E rie m ust

pa y a p p r o xi m ate l y $ 1 5, 0 0 0 i n u s e r c h a r g e s, Mr. Ar m o ur o b s e r v e d:

" M ore d i f f i c u lt t o d e fi n e i s t h e f i r s t h a lf o f t h e te r m — ' u s e r. * It 

i s n ot h a r d t o r e a li z e t h a t t h e s h i p pi n g c o m p a n ie s w h o i n i t i a l l y p a y t h e t o l l s 

a n d l o c k a g e c h a r g e s w he n c a r r y i n g t h e ra w m a t e ri a l s t o t h e p ri m a r y m a n u fa ct u er 

o r t h e g r a i n t o e x p o rt p o s iti o n s o n t h e L o w er S t. L a w re n c e, c o ul d n ot a b s o r b 

t h e s e c o s t s ; t h e t o t a l a m o u nt f o r t h e s e a s o n w o ul d be st a g g e ri n g a n d t h e y 

w o ul d be h a r d p r e s s e d t o st a y i n b u si n e s s. S o, i n t h e c a s e o f ir o n o r e a n d 

c o a l, f o r e x a m ple, t h e c h a r g e s a r e p a s s e d o n t o t h e p ri m a r y m a n u f a ct u r e r, a n d 

i n t u r n o n t o t h e s e c o n d a r y m a n u f a ct u r e r i n t h e p ri c e p ai d f o r t h e s t e e l a n d 

o t h e r p r o d u cts u se d i n m a n u fa ct u ri n g t h e fi n i s h e d it e m . At t h i s p o i n t, t h e 

m u lti p li e r e f f e c t i s b r o u g ht i n t o e x i st e n c e a n d f oll o w s t h r o u g h t o t h e w h ole ­

s a l e a n d r e t a i l l e v e l, w he re a f i n a l p ri c e i s re a c h e d.

" I n t h e c a s e o f d o w n- b o u n d g r a i n , t h e t o l l s a n d l o c k a g e c h a r g e s a r e d e ­

d u cte d fr o m t h e p ri c e p ai d t o t h e g r a i n g r o w e r, si n c e g r a i n i s s ol d i n t e r ­

n a ti o n a ll y o n a c o st, i n s u r a n c e a n d f r e i g h t ( C . I. F . ) b a s i s, n ot f r e e o n b o ar d 

( F . O . B .) . T his , o f c o u r s e, d e c r e a s e s t h e p u r c h a si n g p o w er o f t h e g r a i n gr o w er 

a n d a l s o ma ke s hi m a d i r e c t p a y e r o f t h e c h a r g e s i n v ol v e d, a n d t h e r e b y a u s e r.

" H o w e v er, i t d o e s n ot st o p t h e r e. T h e f a n n e r, li k e e v e r y o n e e l s e , h a s 

t o b u y f o o d a n d o t h e r e s s e n ti a l s , s o t h e o ri g i n a l u s e r c h a r g e s, a f t e r b ei n g 

p a s s e d t h r o u g h t h e v a ri o u s st a g e s o f p r o d u ci n g m a r k eta ble g o o d s, c o me s t o 

a n e n d w he n t h e c o ns u m er m a k es a p u r c h a s e. I t i s t h e c o n s u m er, t h e n, w h o 

p a y s a n d i s t h e ’ u s e r ’ . "

A p p li c ati o n o f w at er w a y u s e r c h a r g e s, t h e r e f o r e , r a i s e s t h e i m m e diate s p e ctr e 

o f h i g h e r c o ns u m er c o st s a n d re d u c e d I n c o m es t o a g ri c u lt u r a l a n d i n d u s t ri a l s h i p p e r s 

a n d c o m m u nitie s. O nc e ta x e s a r e i m p o se d o n d o m e sti c w ate r w a y s, i t i s r e a s o n a ble 

t o as s u m e t h a t t h e l e v e l o f t a x a ti o n w o ul d n ot re m ai n c o n sta n t v e r y l o n g. E s c ala ­

ti o n i n f u t u r e y e a r s i s , i n f a c t, p r a c ti c a ll y a s s u r e d. A n d, e a c h i n c r e a s e i n t h e 

l e v e l o f w at er w a y c h a r g e s w o ul d ha v e g r e a tl y m a g nifie d e f f e c t s a s t h o s e c h a r g e s a r e 

p a s s e d al o n g t h r o u g h m a n u fa ct u ri n g, p r o c e s si n g a n d d i s t ri b u ti o n c h a n n els t o t h e 

u lti m a t e c u st o m e rs — A m e ri c a's h a r d - p r e s s e d c o n s u m ers.
1 0 6 0

V. A T E R W A Y U S E R C H A R G E P R OP O S A L S VI O L A T E G O O D J U D G M E N T, C O M M O N S E N S E

T h e I m p o siti o n o f a w at er w a y f u e l t a x, o r o f a n y w ate r w a y u s e r c h a r g e, w o ul d 

b e a r a d i c a l c h a n g e i n F e d e r al p o li c y w it h r e s p e c t t o t h e N a ti o n's w ate r w a y s. T he 

p o li c y o f t h e t o ll - f r e e s t a t u s o f t h e f e d e r a ll y m ai n ta i n e d w ate r w a y s a n d h a r b o r s 

o f t h e U nit e d S t a t e s wa s f i r s t a r ti c u l a t e d i n t h e N ort h w e st O r d i n a n c e o f 1 7 8 7 a n d h a s

b e e n r e p e at e d l y a s s e rt e d , si n c e t h e a d o pti o n o f t h e C o n stit u ti o n , b y t h e O r g a nic 

A cts o f n u m er o u s s t a t e s , b y s e v e r a l a c t s o f C o n g re ss , a n d b y v a ri o u s t r e a ti e s w it h 

f o r ei g n p o w ers. T his p o li c y h a s p r e v a il e d , w it h o ut s i g n i fi c a n t i n t e r r u p ti o n , f o r 

al m o st 2 0 0 y e a r s.

T he m o st r e c e n t e x p r e s si o n s o f C o n g re s si o n al o p p o siti o n t o u s e r c h a r g e s o n 

t h e N a ti o n's d o m e stic w ate r w a y s ca m e d u ri n g d e li b e r a ti o n s o v e r l e g i s l a ti o n a u t h o ri z i n g 

t h e S t. La wre nc e Sea wa y i n t h e m i d - 1 9 5 0's a n d e st a b li s h i n g t h e La n d a n d W at er C o ns e r v ati o n F u n d i n t h e m i d - 1 9 6 0's. T h e p o li c y o f n o n -i m p o sit i o n o f t o l l s o r o f 

t o ll - e q u i v a l e n t ta x e s o r c h a r g e s w it h r e s p e c t t o d o m e st ic c o m me rce o n t h e f e d e r a ll y 

m ai n ta i n e d w at er w a y s a n d h a r b o r s o f t h e U nit e d S t a t e s re m ai n s i n e f f e c t t o d a y, 

a n d t h e r e i s e v e r y re a s o n f o r c o n ti n u a ti o n o f t h i s h i s t o ri c p o li c y i n t h e f u t u r e.

R ec e nt p r o p o s als f o r i n s tit u ti o n o f t o l l s o r u s e r c h a r g e s see m t o be b a s e d, 

i n l a r g e p a rt, o n s e v e r al ke y a s s u m pti o n s w hi c h b e a r c l o s e r e x a m i n ati o n. O nc e 

t h e f a c t s a r e k n o w n, we b e li e v e m uc h o f t h e s u p p o se d j u s ti f i c a ti o n f o r s u c h c h a r g e s

w ill b e d e fl a t e d .

T h e S t. La wre nc e Se a w a y a s a p r e c e d e n t. — P r o p o n e nts o f t o l l s o r u s e r 

c h a r g e s o n t h e d o m e stic i n la n d w ate r w a y s h a v e o ft e n c it e d t h e e x i st e n c e o f t o ll s 

o n t h e S t. La wre nc e Sea wa y a s c o n s tit u ti n g a p r e c e d e nt f o r e x te n si o n o f w at er w a y 

l e v i e s t o a l l U. S. w ate r w a y s. As p r e v i o u sl y i n d i c a t e d , t h e C o n g re ss s p e c i fi c a ll y 

s t a t e d , i n a u t h o ri z i n g c o n str u cti o n o f t h e U. S. p o rti o n o f t h e Se a w a y, t h a t n o 

j u s ti f i c a ti o n f o r u s e r c h a r g e s o n t h e i n la n d w at er w a y s wa s t o be dr a w n fr o m t h e 

S e a w a y's t o l l s st r u c t u r e :
1 0 6 1

n a p p r o vi n g t h e i m p o sit i o n o f t o l l s a s p a rt o f t h i s p r o j e c t, 

t h e c o m mitte e w a nts i t e x p r e s sl y u n d e rs t o o d t h a t b y s u c h a c ti o n i t i s 

n ot d i g r e s si n g fr o m t h e fir m a n d l o n g - sta n d i n g t o ll - f r e e p o li c y e st a b li s h e d 

w it h r e s p e c t t o i n la n d w ate r w a y s. T he a p p r o v al gi v e n h e re i s n ot i n te n d e d 

t o be i n t e r p r e t e d a s a p r e c e d e n t v a r yi n g t h e t o ll - f r e e p o li c y si n c e t h i s 

p r o j e c t, b ei n g i n t e r n a ti o n a l, i s c l e a rl y d i s ti n g u i s h a b l e fr o m p u r el y 

i n la n d w at er w a y f a c i l i t i e s i n t h e U nit e d S t a t e s. "

I n r e c e n t y e a r s, t h e r e h a s b ee n a g r e a t d e al o f a tt e n ti o n g i v e n, b ot h i n 

C a n a d a a n d t h e U nit e d S t a t e s, t o r e d u c ti o n o r re m o v al o f S t. L a w re nc e Sea wa y t o l l s . 

A tt e m pts b y t h e C a n a d ia n g o v er n m e nt, b e gi n ni n g i n 1 9 6 6, t o I n c r e a s e t o l l s w er e 

r e s i s t e d b y t h e U. S. g o v er n m e nt, s o t h a t t h e o ri g i n a l 1 9 5 9 t o l l s l e v e l re m ai n s 

i n f o r c e t o d a y. S o me o f t h e p r e s s u r e t o i n c r e a s e Se a w a y t o l l s t o f u ll y re c o u p 

Se a w a y c o st s wa s re m o ve d i n 1 9 7 0 b y a cti o n o f t h e U. S. C o n g re s s. I t a b s o l v e d 

t h e S t. L a w re nc e Sea wa y D e v el o p m e nt C o r p o r ati o n, a n a g e n c y o f t h e U. S. D e p art m e n t 

o f T r a n s p o rt a ti o n, fr o m t h e r e q uir e m e nt t h a t i t r e c o v e r t h r o u g h t o l l s a l l p a st, 

p r e s e n t a n d f u t u r e i n t e r e s t o n c a p it a l I n v e ste d i n b u il d i n g t h e U. S. s e c ti o n o f 

t h e i n t e r n a ti o n a l w at er w a y. E f f o rt s a r e n o w u n de r w a y b y v a ri o u s G re at L a k es i n ­

t e r e s t s , i n cl u d i n g s t a t e g o v er n m e nts i n t h e U nit e d S t a t e s a n d p r o v i n c i a l g o v er n ­

m e n ts i n C a n a d a, f o r t h e e v e n t u al re m o v al o f a l l Se a w a y t o l l s . T h e e x p e rie n c e 

o f t h e S t. La w re nc e Se a w a y i s h a r d l y j u s ti f i c a ti o n f o r a r e p e at p e rf o r m a n c e o n 

U. S. d o m e sti c w ate r w a y s.

F e d e r al c o s t s. - - M ost u s e r c h a r g e re c o m m e n d ati o n s a r e ac c o m p a n ie d b y a n 

e sti m at e o f t h e a n n u al c o st s t o t h e F e d e r al g o ve r n m e n t a tt r i b u t a b l e t o t h e r e ­

q uir e m e nts o f s h all o w - d r a ft c a r ri a g e , I n cl u d i n g t h e c o st s o f o p e r a ti n g a n d 

m ai n ta i n i n g n a v i g ati o n f a c i l i t i e s a n d, o ft e n , o f t h e c u r r e n t l e v e l o f e x p e n d it u r e s 

f o r ne w w at er w a y c o n str u cti o n . I t i s t h e n a r g u e d t h a t t h e F e d e r al f u n d s e x pe n d e d 

f o r n a v i g ati o n pr o gra m s a r e s u f f i c i e n tl y hi g h t o c a ll f o r s o me u s e r c h a r g e r e ­

c o v e r y b y t h e F e d e r al T r e a s u r y.

C riti c s o f F e d e ra l w at er w a y i n v e st m e nt f r e q u e n tl y c it e h i g h l y I n fl a t e d e x pe n d 1 

t u r e s f o r t h e s e p r o gra m s. H o w e v er, t h e s e fi g u r e s i n cl u d e m u lti p l e - p u r p o s e w ate r
1 0 6 2

s o u r c e s d e v el o p m e n t — o ft e n e rr o n e o u sl y " c h a r g e d " I n t h e p a st t o e it h e r n a vi g a ­

ti o n o r fl o o d c o n tr o l — w hi c h i n v ol v e s p r o j e c t f e a t u r e s r e l a t e d , n ot t o n a v i g a ti o n,

b ut t o h y dr o p o w er, r e c r e a ti o n , ba n k s t a b ili z a ti o n , fi s h a n d w il d li f e e n h a n c e m e nt, 

a n d o t h e r p u b li c p u r p o s e s. T he n a v i g ati o n p o rti o n al o n e i s o nl y a p a rt o f t h e 

t o t a l, a n d F e d e r al f u n d s p r o p e rl y a ll o c a b l e t o s h all o w - d r a ft n a v i g ati o n a r e g e n e r all y 

e sti m ate d a t a p p r o xi m ate l y 5 7 p e r c e n t o f t o t a l n a v i g ati o n e x p e n d it u r e s. T h e e x a ct 

fi g u r e w o ul d be d i f f i c u lt i f n ot i m p o s si b le t o d ete r m i n e b e c a u s e t h e Ar m y C or ps 

o f E n gi n e e r s' r e c o r d s a r e n ot p r e c i s e i n s e p a r a ti n g p u r el y n a v i g a ti o n - r e l a t e d c o st s 

a n d i n d i s ti n g u i s h i n g b et w ee n s h all o w - d r a ft a n d d e e p - d r a ft e x p e n d it u r e s.

I n 1 9 7 0 - 7 2, a n n u al o p e r ati o n a n d m ai n te n a n c e e x p e n d it u r e s o f t h e C or p s o f 

E n gi n e e rs o n t h e s h all o w - d r a ft p o rti o n o f t h e i n la n d w ate r w a y s w er e a b o ut $ 8 0 

m illi o n . I n t h e c u r r e n t f i s c a l y e a r, t h e C or p s e sti m at e s t h a t s h all o w - d r a ft 

o p e r ati o n a n d m ai n te n a n c e c o st s w ill t o t a l a p p r o xi m ate l y $ 1 4 9. 9 m illi o n a n d ne w 

c o n str u cti o n o f s h all o w - d r a ft se g m e n ts w ill a m o u nt t o a p p r o xi m ate l y $ 1 6 4. 7 m illi o n . 

I t s h o ul d be n ote d t h a t o p e r ati o n a n d m ai n te n a n c e c o st s ha ve al m o st d o u ble d w it hi n

t h e l a s t fi v e y e a r s — t h e r e s u lt p ri n c i p a ll y o f t w o f a c t o r s : h i g h -l e v e l i n f l a ti o n 

i n t h e ec o n o m y, e s p e c i a ll y i n m ai n te n a n c e -t y p e a c t i v iti e s , a n d a d d iti o n a l e x ­

p e n d it u r e s n e c e s sit a t e d b y e n vir o n m e nta l p r o t e c ti o n r e g u l a ti o n s, p a rti c u l a rl y

i n t h e a r e a o f d re d gi n g a n d dre d g e d m a t e ri a l d i s p o s a l, b e n e fiti n g s o c i e t y i n 

g e n e r al r a t h e r t h a n t h e n a v i g ati o n pr o gr a m s p e c i fi c a ll y .

W hile a n n u al e x p e n d it u r e s f o r n a v i g ati o n pr o gra m s ha ve be e n r i s i n g a t a 

m o d era te r a t e i n r e c e n t y e a r s, t h e b u d g et i n c r e a s e s h a v e f a il e d t o ke e p p a ce 

w it h i n f l a ti o n . I n d o ll a r s o f p u r c h a si n g p o w er, f u n d s a v a il a b l e t h i s y e a r t o t h e 

C or ps o f E n gi n e e rs f o r n a v i g ati o n p u r p o s e s a r e s i g n i fi c a n tl y bel o w t h e l e v e l s o f 

1 0 t o 1 5 y e a r s a g o. L i k e w is e, e x p e n d it u r e s ha ve b e e n d e cli n i n g i n r e l a ti o n 

t o t h e t o t a l F e d e r al b u d g et a n d a l s o a s a p e r c e nta g e o f t h e G r o ss N ati o n al P r o d u ct. 

I n 1 9 2 6- 3 0, f o r e x a m ple, t h e C o r p s' c i v il w or ks pr o gra m a c c o u nte d f o r 2. 0 p e r c e n t
1 0 6 3

f t h e F e d e r al b u d g et. B y 1 9 6 2, t h e s e e x p e n d it u r e s ha d d r o p p e d t o 0. 8 p e r c e n t 

o f t h e b u d g et, a n d t h i s y e a r c i v il w or ks a c c o u nts f o r o nl y 0. 5 p e r c e n t o f t h e 

F e d e ra l g o v e r n m e nt' s t o t a l e x p e n d it u r e s.

S u r el y , t h e n, t h e d ri v e t o i m p o se w at er w a y t o l l s o r u s e r c h a r g e s c a n n ot 

be p r e d ic ate d o n I n c r e a s e d de ma n d s o n t h e F e d e r al T r e a s u r y f o r i n la n d w ate r w a y s 

pr o g ra m s. As h a s b e e n s h o w n, t h e r e l a ti v e m a g nit u d e o f F e d e r al o u tl a y s o n t h e 

w ate r w a y s h a s a c t u a ll y b e e n d e c r e a si n g o v e r t h e l a s t d e c a d e.

M o dal e q u it y . — Si n c e hi g h w a y a n d air w a y t r a n s p o rt a ti o n i s fi n a n c e d al m o st

e n ti r e l y b y u s e r c h a r g e s, t h e ar g u m e n t i s o ft e n a d v a n c e d t h a t w at er w a y u s e r s s h o ul d 

pa y t h e i r o w n w a y, t o o. At f u ll F e d e r al c o st- r e c o v e r y l e v e l s, w at er w a y u s e t a x e s 

o r c h a r g e s c o ul d e li m i n a t e l a r g e p o rti o n s o f p r e s e n t i n la n d w ate r b o r n e c o m m erc e 

a n d, i n t h e c a s e o f se g m e n t t o l l s , v e r y p r o b a bl y le a d t o t h e cl o si n g t o n a v i g ati o n 

o f e x te n si v e r e a c h e s o f t h e w at er w a y s y st e m. T his i s n ot tr u e o f hi g h w a y o r 

a i r c a r ri a g e.

W ate r w a y t r a n s p o rt a ti o n i s a n e x c e e di n gl y l o w - c o st, m as s m o ve m e nt m o de 

o f f r e i g h t c a r ri a g e , w it h l i t t l e o r n o s e r v i c e a p p e al. S hi p m e n ts c o m m o nl y r u n 

a t 5 0 0 t o n s o r m ore. M o v e me nt i s sl o w a n d a r r i v a l ti m e u n c e rt a i n . T h e p ri m a r y 

a p p e al o f t h e m o de i s i t s l o w c o st o f s e r v i c e , a f e a t u r e i n w hi c h w ate r w a y t r a n s ­

p o rt a ti o n i s ri v a l e d o nl y b y p i p e li n e s.

B y c o n t r a s t, hi g h w a y a n d a i r c a r ri a g e a r e pr e mi u m s e r v i c e m o d es. M o st

tr u c k s hi p m e nts b y c o m m o n c a r ri e r s a r e o nl y a fe w h u n dre d p o u n ds e a c h, a n d t h e 

a v e r a g e tr u c k l o a d o f a l l c a r ri e r s o n t h e hi g h w a y s i s o nl y a b o ut 1 1 t o n s. M o ve m e nt 

i s s w i ft, w it h d e li v e r y ti m e s hi g h l y p r e d i c t a b l e. A d i st a n c e w hic h m i g ht r e q u ir e 

a we e k o r m or e b y w ate r c a n be s e r v e d b y tr u c k w it h n e xt- d a y d e li v e r y . F o r ma n y 

s hi p m e nts o v e r l o n g d i st a n c e s, t h e s e r v i c e f e a t u r e s o f a i r c a r ri a g e a r e s u p e ri o r 

e v e n t o tr u c k i n g.

T h e s e r v i c e d i f f e r e n ti a l s o f t h e s e t h r e e m o de s a r e r e fl e c t e d i n t h e i r c o st s
1 0 6 4

r c h a r g e s. B ar ge r a t e s n o w a v e r a g e a b o ut 4 t o 4. 5 m ill s p e r t o n - m il e o f f r e i g h t 

c a r ri e d . B ut, r e fl e c ti n g s u p e ri o r s e r v i c e a p p e al, i n t e r c it y tr u c k i n g r a t e s 

a v e r a g e, i n t h e l a t e s t y e a r r e p o rt e d, a b o ut 9 4 m ill s p e r t o n - m il e, o v e r 2 3 ti m e s a s 

hi g h. T he e x p e d iti o u s s e r v i c e o f a i r c a r ri a g e e n a ble s t h i s m o de t o c o ll e c t, 

t y p i c a ll y , a b o ut 2 0 c e n t s p e r t o n - m il e (a n d o ft e n m o re ), s o me 5 0 ti m e s t h e l e v e l 

o f w ate r c a r ri a g e . W het h er e it h e r hi g h w a y o r air w a y f r e i g h t c a r r i e r s a r e p a yi n g 

t h e i r " f a i r s h a r e " o f F e d e ra l c o st s a s s o c i at e d w it h t h o s e m o de s i s , o f c o u r s e, d eb a t a b l e. B ut, b e c a u s e hi g h w a y a n d a i r c a r ri a g e a p p e al t o t h e s h i p p e r p ri m a ril y o n 

a s e r v i c e b a s i s, a n y a d d iti o n t o t h e i r c o st s e x e rt s a m uc h l e s s d i r e c t i m p a ct o n 

t h e i r c o m p eti ti v e a tt r a c ti o n . F or t h e w ate r c a r r i e r, b y c o n t r a s t, l o w c o st i s a ll 

he h a s t o o f f e r. F u rt h e r m o re , a n y gi v e n F e d e r al c h ar g e o n hi g h w a y o r a i r c a r ri a g e 

i s a m uc h s m alle r p e r c e nta g e o f t h e i r t o t a l c o st.

A ls o, a l a r g e p r o p o rti o n o f t h e p u b li c c o st s o f t h e hi g h w a y s a n d air w a y s

i s m et b y u s e ta x e s o n p a s s e n g e r t r a f f i c . I n t h i s s e n s e, t h e u s e o f hi g h w a y s

b y t h e tr u c k i n g i n d u str y a n d o f air w a y s, f o r f r e i g h t c a r ri a g e i s s o m et h i n g o f a

j o i n t p r o d u ct w it h p ri v a t e p a s s e n g e r t r a n s p o rt a ti o n , a n d t h e m o ve me nt o f f r e i g h t

c o n tri b u t e s o nl y a f r a c ti o n o f t h e t o t a l c o st s. P a s s e n g e r t r a f f i c o n t h e i n la n d

w ate r w a y s i s i n s i g n i fi c a n t, a n d r e c r e a ti o n a l b o ati n g, w hil e e x t e n si v e o n n u m er o u s 

w ate r w a y s a n d r e s e r v o i r s, g e n e r all y d o e s n ot r e q u ir e n i n e - f o o t n a v i g ati o n c h a n n els 

o r 1 2 0 0 -f o ot- l o n g n a v i g ati o n l o c k s. T h es e f a c i l i t i e s p ri m a ril y s e r v e c o m m ercial

v e s s e l o p e r a ti o n s. M ost o f t h e F e d e r al c o st s o f t h e i n la n d n a v i g ati o n s y ste m , 

t h e r e f o r e , m ust b e a ll o c a t e d t o c o m m er ci al f r e i g h t c a r ri a g e w hic h, u n li k e air w a y s 

a n d hi g h w a y s, c a n n ot s h i f t t h e m aj o r s h a r e o f u s e r c h a r g e s t o p a s s e n g e r o r

r e c r e a ti o n a l t r a f f i c .

I t s h o ul d b e p e r f e c tl y c l e a r t h a t, a s t o t h e r e l a ti v e i m p a ct o f a c o s t -

r e c o v e r y u s e r c h a r g e o n t h e c o m p eti ti v e p o s iti o n o f t h e w ate r t r a n s p o rt a ti o n

I n d u str y, a n d o n t h e p r o s p e cts f o r i t s s u r v i v a l a n d v i t a l i t y i n f u t u r e y e a r s,
1 0 6 5

t h e r e i s n o v a li d c o m p ari s o n b et w ee n f r e i g h t t r a n s p o rt a ti o n o n t h e w ate r w a y s 

a n d t h a t v i a hi g h w a y s a n d air w a y s. T h e y a r e a s u n li k e a s a p p le s a n d o r a n g e s.

R el ati o n s h i p t o r a il r o a d s . — T h ere i s a g r e a t d e al o f e vi d e n c e t h a t

w at er w a y a n d r a il r o a d t r a n s p o rt a ti o n i s , a s H e r b e rt H o o ve r o n c e s t a t e d , " m or e 

c o m pl e m e n ta r y t h a n c o m p e titi v e." R ail r o a d l e a d e r s ha ve o ft e n a g r e e d. E a rl y i n 

t h i s c e n t u r y, Mr. Ja m es J. H ill, c h air m a n o f t h e G re at N o rt h e r n R ail w a y a n d t h e 

" f a t h e r o f m o d er n r a il r o a d i n g , " s ai d i n t e lli g e n t r a il r o a d me n ha d " dis m is s e d 

f e a r o f t h e w at er w a y a s a c o m p eti t o r, n ot b e c a u s e i t wa s e it h e r u ni m p o rta nt o r 

p o w e rle s s, b ut b e c a u s e t h e t w o c a r r i e r s a r e s u p ple m e nta r y i n st e a d o f m ut u all y 

d e s t r u c ti v e . " L a t e r, a f t e r t h e F e d e r al g o v er n m e n t b e g a n o p e r ati n g i t s o w n b a r g e li n e 

o n t h e M i s si s si p p i R i v e r t o sti m u l a t e p ri v a t e I n t e r e s t i n r i v e r t r a n s p o rt a ti o n ,

Mr. C h a rle s H. Ma r k h a m, t h e n p r e si d e n t o f t h e I ll i n o i s C e n tr al R ailr o a d, o b s e r v e d 

t h a t i f t h e b a r g e o p e r ati o n wa s " a g o o d t h i n g f o r t h e p e o ple o f t h e M i s si s si p p i 

V all e y, i t i n s o me wa y w ill p r o b a bl y o p e r ate a s a g o o d t h i n g f o r t h e I ll i n o i s 

C e n tr al S y ste m ." I n r e c e n t y e a r s, t h e S o ut h e r n R ail w a y h a s s u p p o rt e d c o m p eti ti o n 

i n t r a n s p o rt a ti o n a n d n ot o p p o se d w at er w a y p r o j e c t s. " I f p e o ple i n t h e a r e a 

s u p p o rt n a v i g ati o n o n t h e w at er w a y s a n d t h e i r R e p r e s e n t ati v e s c a n o b t a i n t h e 

n e c e s s a r y m o ne y fr o m C o n g re ss t o ma k e t h e i m p r o v e m e nts," S o ut h e r n V ic e P r e s.

F ra n k L. B art o n t e s t i f i e d i n 1 9 7 2, " i t i s c e r t a i n l y n ot f o r S o ut h e r n t o o b j e c t. " 

R ailr o a d s u s u all y b e n e fit fr o m w at er w a y e x t e n si o n s. M a n u f a ct u ri n g a n d

p r o c e s si n g p l a n t s s e r v e d b y o nl y o n e m o de a r e a r a r it y . M aj or I n s t a ll a ti o n s u s u all y 

r e q u ir e w at e r, r a i l a n d hi g h w a y c o n n e cti o n s. G e n e r all y, ra w m a t e ri a l s a n d f u e l s 

a r e r e c ei v e d b y w ate r i n b ul k a n d i n m a ss i v e q u a n titi e s. H i g h - v al u e, m a n u fa ct u re d 

g o o d s m o ve a w a y fr o m t h e p l a n t s b y r a i l a n d t r u c k a t pre mi u m r a t e s . I n i t s 

1 9 5 0 r e p o rt, t h e P r e s i d e n t ’ s W at er R e s o u rc e s P o li c y C o m missi o n e x pl o d e d t h e m yt h

t h a t t h e w ate r w a y s a c q u ir e a l a r g e p o rti o n o f w ate r b o r n e c o m me rce fr o m t h e r a i l -
1 0 6 6

a d s. " S u c h r e a s o n i n g, " s ai d t h e C o m mis si o n, " o v e rl o o k s t h e f a c t t h a t t h e 

w ate r w a y s c r e a t e m o re t r a f f i c t h a n t h e y ta k e a w a y ."

S t i l l, ma n y U. S. r a il r o a d s a r e i n o b vi o u s fi n a n c i a l d i f f i c u lt y t o d a y.

B ut n ot t h e r a il r o a d s w hic h p ri n c i p a ll y s e r v e t h e r i v e r v a ll e y s. S t u di e s b y 

P r o f. M ar vi n J. B ar l o o n o f Ca se W es te r n R es er v e U n i v e r sit y h a v e s h o w n t h a t t h e 

t r a f f i c v o l u m es o f r a il r o a d s o p e r ati n g e xte n si v e ri v e r v a ll e y li n e s ha ve i n c r e a s e d 

m or e r a p i d l y t h a n t h o s e o f o t h e r r a il r o a d s a n d t h a t t h e ri v e r v a ll e y li n e s a l s o 

e nj o y hi g h e r fi n a n c i a l r e t u r n s. N e v e rt h el e s s, t h e U. S. R ail w a y A s s o cia ti o n 

r e c e n tl y c it e d F e d e r al ai d t o w ate r w a y s ( a s w ell a s t o hi g h w a y s a n d air w a y s) 

a s c o n tri b u ti n g t o t h e d e m is e o f r a il r o a d s i n t h e N o rt h e a st.

I m p li c it i n t h e A s s o c i a ti o n's r e p o rt was t h e c o n t e n ti o n t h a t F e d e r al a s ­

si st a n c e t o t h e t r a n s p o rt a ti o n s e c t o r s h o ul d be e v e n - h a n d e d. P re s u m a bl y, i m p o sit i o n 

o f w at er w a y t o ll s o r u s e r c h a r g e s w o ul d re m o v e t h i s i n e q u it y b y f o r ci n g w at er w a y 

u s e r s t o b e a r t h o s e c o st s n o w p ai d b y t h e F e d e r al g o v er n m e nt. I n o t h e r w or d s, 

t h e i n la n d w ate r w a y s s y st e m w o ul d b e e n ti r e l y u s e r - fi n a n c e d. S u c h a p o li c y 

m a k es s e n s e o nl y i f F e d e r al a s si st a n c e t o t h e o t h e r m o de s i s a l s o te r m i n ate d.

B ut, a s f a r a s i s k n o w n, t h e r e i s n o s u c h p r o s p e ct. N or s h o ul d t h e r e b e. I n 

a d d iti o n , t h e r e i s e v e r y i n d i c a ti o n t h a t m a ss i v e F e d e r al a s si st a n c e w ill be

n e c e s s a r y i n t h e i m m e d iate f u t u r e t o s a v e f a lli n g U. S. r a il r o a d s.

W hile c a m p ai g ni n g h a r d f o r i m p o sit i o n o f w at er w a y u s e r c h a r g e s, r a il r o a d s 

a r e alr e a d y t h e b e n e fi c i a ri e s o f e x te n si v e F e d e r al s u b si d y a n d s u b si d y - e f f e ct

p r o g ra m s. I n d o ll a r v al u e, F e d e r al ai d t o U. S. r a il r o a d s o v e r t h e l a s t fe w 

y e a r s p r o b a bl y e x c e e d s F e d e r al a s si st a n c e t o i n la n d w ate r w a y s. I n a r e c e n t 

p a p e r, Mr. J o h n A. C re e d y o f t h e W at er T r a n s p o rt A s s o cia ti o n e n u m era te d s e v e r a l

c u r r e n t g o v er n m e nta l pr o gra m s o f w hi c h r a il r o a d s a r e t h e b e n e fi c i a ri e s :

" 1 ) R e gi o n al R ail R e o r g a niz ati o n A ct t o r e v it a li z e r a il r o a d s i n t h e

N o rt h e a st a n d Mi d w est a n n o u n ce d a t t h e ti m e t o i n v ol v e $ 1. 7 b illi o n ; 2)

Ta x i n c e n ti v e s t o sti m u l a t e i n v e st m e nt i n f r e i g h t c a r s, l o c o m oti v e s a n d
1 0 6 7

c iliti e s , s o me of t he m m uc h m ore f a v o ra ble t h a n t h o se a v ail a ble f o r 

w at er c a r ri e r s, w ort h o v er t h e p a st fi v e y e a r s, $ 1 b illi o n ; 3) R eli e f fr o m 

p as se n g er l o s s e s of o v er $ 4 0 0 m il li o n a y ea r t o e n a b le r ailr o a d s t o c o nc e ntr ate o n i m pr o vi n g fr ei g h t tr a n s p o rt a ti o n ( r a ilr o a d l o s s e s o n p a s se n g ers 

fr o m 1 9 6 1 t o t h e s t a rt of A mtra k t o t al e d $ 4. 3 b illi o n ); 4) M a n dati n g e x ­

p e n dit u re s fr o m t h e Hi g h wa y T r u st F u n d f o r gr a d e c r o s si n g eli m i n ati o n s t o 

i m pr o ve e f fi ci e n c y a n d s a f et y t o t a li n g $ 1. 9 b illi o n si n c e 1 9 6 1 a n d a m o u nti n g 

t o $ 1 9 4 m il li o n i n 1 9 7 3; a n d 5) T he 1 9 7 4 R ail r o a d R etir e m e n t Act r ele a s e d 

r ailr o a d r e s o u r c e s t o i m p r o v e e ffi ci e n c y o f f r ei g h t tr a n s p o rt ati o n i n 

t h e a m o u nt of $ 2 8 5 m il li o n a y ea r f o r 2 5 y e ars — or a b o u t $ 7 b illi o n . "

I n a d dit i o n t o r a ilr o a d s, t h e F e d era l g o ve r n m e nt als o s u b si d iz e s r e gi o n al a i r ­

li n e s, ai r w a y s a n d a i r p o rt s, mass t r a n s it o p e r ati o n s a n d f a c iliti e s , hi g h w a y s, de e p - 

d r a ft m er c h a nt m ar i n e, w i n te r n a vi g ati o n o n t h e G re at L a k es, a n d i n la n d w at er w a y s.

I n tr u t h , al m ost e v er y se g me nt of t h e U. S. tr a n s p o rt ati o n s y st e m b e n e fit s fr o m 

F e d er al a s sis ta n c e pr o g ra m s. We s u b m it, t h e r e f o r e, t h at F e d er al ai d t o t h e tr a n s ­

p o rta ti o n s e ct o r i s m ore e v e n - h a n de d t h a n ma n y wis h t o a d mit.

I m pa ct o n tr a n s p o rt ati o n s y st e m . — Wat er wa y t o ll s o r u s e r c h ar g es a re 

s o meti m es he l d o ut as a n e s s e n ti a l mea n s o f str e n gt h e ni n g t h e U. S. tr a n s p o rt ati o n 

s y st e m . N ot hi n g c o ul d be f u rt h e r fr o m t h e t r u t h . T he f u zz y t h i n ki n g be hi n d t h i s 

i d ea i s t h at t h e f u ll p u bli c c o sts w o ul d be re v e ale d a n d t h at m ar gi na l water wa y 

m o ve me nts a n d water wa y se g m e nts w o ul d be eli m i n ate d. S uc h a t h e o r y i s v ali d 

o nl y i f F e d era l a s si st a n c e, d ir e ct a n d I n d ir e ct, t o a ll ot h e r m o des were als o 

e n de d. T his i s n ot a b o u t t o ha p p e n, p a rti c u a rl y si n c e s u b st a n ti al F e d era l ai d 

t o r ailr o a d s i s i n p r o s p e ct.

T he r el at e d vi e w t h a t r e vi v al of U. S. r a ilr o a d s i s de pe n d e nt o n p e n alt y 

ta x ati o n dir e cte d a t ot h e r m o des f a ll s t o re c o g niz e t h at we ha ve e nte re d a n era 

i n w hic h t h e p o t e n ti al de ma n d f o r a d e q u at e tr a n s p o rt ati o n s e r v ic e s w ill li k e l y 

e x ce e d t h e a v ail a ble s u p pl y of t h o se s e r vic e s. T a xi n g t h e water w a y s t o i m pr o ve 

t h e r ailr o a d s i s a da n g er o u s c o nc e pt w he n o n e vi e w s t h e li m it e d c a p a b iliti e s o f 

t h e r a il s t o acc o m m o dat e f ut u re tr a n s p ota ti o n de m a n d s. S uc h a n a p pr o ac h, i n 

a c t u a lit y , i s m o st li k el y t o si m pl y e x te n d t h e ec o n o m ic pr o ble m s of t h e r ailr o a d s 

t o t h e w at er w a y s. No o ne w o ul d b e n e fit.

5 4 - 2 3 9 0 - 7 5 - 6 8
1 0 6 8

T he c h alle n g e i s n ot — a s t h e r a ilr o a d - g e n e r a t e d h y s t e ri a s u rr o u n di n g 

t h e L o c k s a n d Da m 2 6 c o ntr o v e r s y w o ul d le a d u s t o b e li e v e — o n e o f d i v i d i n g 

a li m it e d t r a n s p o rt a ti o n " p ie " a m o n g c o m p eti n g m o d es. R at h e r, t h e c h alle n g e 

i s o n e of m e eti n g t h e e x i sti n g a n d f u t u r e de m a n ds w hic h e x ce e d t h e c o m bi ne d 

c a p a b ilit y o f a l l t h e p r e s e n t f o r m s o f t r a n s p o rt a ti o n . T h ere i s n ot o nl y a n a n n u al 

r a il r o a d c a r s h o rta g e i n t h e fa r m b e lt a t h a r v e st ti m e. T h ere i s a s h o rta g e of 

b a r g e c a p a cit y a s w ell.

T h ere i s e v e r y r e a s o n w h y a l l t h e m o de s s h o ul d w or k m o re c l o s e l y t o p r o ­

vi d e t h e t r a n s p o rt a ti o n s e r v i c e s w hi c h t h e N ati o n n e e d s a n d d e s e r v e s. B ot h r a i l 

a n d w ate r, f o r I n st a n c e, a r e hi g hl y e n er g y a n d c o st e f f i c i e n t. T his f a c t s h o ul d 

sti m u l a t e I n c r e a s e d u s e o f r a i l a n d w ate r t r a n s p o rt a ti o n , a n d m o re J o i n t r a i l - 

w ate r m o v e m e nts, p a rti c u l a rl y w he re l o n g d i st a n c e s a r e i n v ol v e d. D e s pit e p e tt y 

r i v a l r i e s be t w ee n m o d al p a rti s a n s, I n d u s t ri e s d e p e n d e nt u p o n e n er g y s u p p li e s, 

f o r e x a m ple, a r e m a k i n g s u b st a n ti a l u s e o f r a il - w a t e r t r a n s p o rt a ti o n li n k s. O ne 

c o m p a n y, A m eric a n E l e c t ri c P o we r C o m pa n y, r e c e n tl y o r d e re d 1 6 la r g e t o w b o ats,

2 6 0 j u m b o b a r g e s a n d 3, 2 0 0 r a il r o a d g o n d ola s p r e p a r at o r y t o h a uli n g W es te r n c o al 

b y r a i l a n d w ate r t o i t s ri v e r - b a s e d g e n e r ati n g p l a n t s c o n c e ntr ate d i n t h e 

O hi o V all e y.

T h os e w h o a r g u e t h a t i m p o sit i o n o f w at er w a y u s e r c h a r g e s w o ul d a d d ne w 

vi g o r t o t h e U. S. t r a n s p o rt a ti o n s y st e m a r e si m pl y pr o m oti n g t h e i r o w n p r e ­

c o n c ei v e d b i a s e s. R ail t r a n s p o rt a ti o n m u st, o f c o u r s e, be r e v i v e d. B ut i t i s a 

h oll o w ar g u m e n t i n d e e d t o m ai n ta i n t h a t w at er w a y u s e r c h a r g e s w o ul d b e n e fit 

o t h e r m o d es. T h e y d e p e n d — a s d o e s t h e e n ti r e n a ti o n a l t r a n s p o rt a ti o n s y st e m — 

o n t h e e f f i c i e n t u tili z a ti o n o f e ac h m o de f o r t h o s e t a s k a t w hi c h i t e x c e l s.

A n d, t o ll - f r e e w ate r w a y s s h o ul d c o n s tit u t e a v it a l se g m e n t o f t h e U. S. t r a n s ­

p o rt a ti o n c o m pl e x.
1 0 6 9

V I. S O ME S U G G ES TI O N S A S T O T H E I MP A C T O F U S E R C H A R G ES O N M AJ O R I N D U S T RI E S

W at er wa y u s e r c h a r g e s w o ul d g e n e r at e c o m p eti ti v e d i s l o c a ti o n s w it h i n t h e 

m aj o r i n d u s t ri e s b e c a u s e o f t h e e xtr e m e i n e q u a lit y , a s b et w ee n r e g i o n s, o f t h e 

b ur d e n t h e y w o u l d i m p os e. T his i n e q u a lit y o f i m p a ct w o ul d, o f c o u r s e, b e t h e m o re 

e xtr e m e w it h r e s p e c t t o a u s e r c h a r g e a p p li c a b l e o nl y t o s h all o w - d r a ft c o n m erc e.

T he w a t e r - o ri e n t e d i n d u s t ri e s, a n d t h e a s s o c i a t e d i n d u s t ri a l a n d c o m m u nit y d e v el o p ­

m e nts, te n d t o c l u s t e r a t b ot h d e e p - w ate r p o rt s a n d t h o s e s e r v e d b y s h all o w - d r a ft 

b a r gi n g. W hile w at er w a y u s e r c h a r g e s w o ul d be i n j u ri o u s t o b ot h , t h e y w o ul d i n j u r e 

m uc h m o re s e v e r e l y t h e i n la n d c e n t e r s d e p e n d e nt o n s h all o w - d r a ft b a r g i n g. T his 

d l s l o c a ti v e i m p a ct ma y be d e m o n str ate d w it h r e s p e c t t o c e rt a i n m aj o r i n d u s t ri e s.

Ir o n a n d s t e e l. — T he P itt s b u r g h ir o n a n d s t e e l d i s t r i c t w o ul d be o n e o f 

t h e m aj o r i n d u s t r i a l c o m m u nitie s m ost s e ri o u sl y a f f e c t e d . T h e P itt s b u r g h i n d u str y 

i s p e c u li a rl y d e p e n d e nt o n s h all o w - d r a ft b a r g e t r a n s p o rt a ti o n w it h r e s p e c t t o t h r e e 

v it a l m o v e m e nts: bit u m i n o u s c o al, f u e l o i l, a n d ir o n a n d s t e e l p r o d u cts . S o met h i n g i n e x c e s s o f 7 5 p e r c e nt o f t h e m e t a ll u r g i c a l a n d st ea m c o al c o ns u m e d i n

P itt s b u r g h d i s t r i c t ir o n a n d s t e e l p r o d u cti o n i s r e c ei v e d b y ri v e r b a r g e o n t h e

M o n o n ga hela R i v e r a n d v i a t h e O hi o R i v e r — a d i st a n c e o f o v e r 3 0 0 m il e s fr o m

s o ut h e r n W est V ir g i n i a.

T h e d i s t r i c t i s e s p e c i a ll y d e p e n d e nt o n r i v e r b a r gi n g t o r e a c h s t e e l m a r k ets 

i n t h e M i s si s si p p i V all e y a n d o n t h e G ulf C o a st. T he s t e e l c a p a c it y o f t h e P i t t s ­

b ur g h d i s t r i c t r e a ll y e x c e e d s t h e de m a n d i n t h a t s e c ti o n o f t h e c o u n tr y t o w hic h 

P itt s b u r g h h a s l o w e st c o st a c c e s s b y r a i l a n d hi g h w a y. T h e d i s t r i c t' s r i v e r c o nn e cti o n s p e r m it i t s m ill s t o r e a c h d i s t a n t m a r k ets a n d u tili z e w hat w o u l d ot h e r w is e

be e x c e s s c a p a c it y. I n a t y p i c a l y e a r, t h e d i s t r i c t s h i p s d o w n t h e O hi o R i v e r a b o ut

3 m illi o n t o n s o f s t e e l w it h a n F. O . B. v al u e a p p r o xi m ati n g $ 7 5 0 m illi o n , a l a r g e

p o rti o n o f w hic h c o n si s t s o f p a y r o ll s. I m p air m e n t o f t h i s l o w -c o st o u tl e t w o ul d
1 0 7 0

ri o u sl y h a n dic a p P itt s b u r g h s t e e l I n r e a c hi n g d i s t a n t W este r n a n d G ulf C o a sts 

m a r k ets .

E ur o pe a n a n d J a p a n e s e s t e e l c o m p a n ie s w o ul d be a m o n g t h e p ri n c i p a l b e n e fi c i ­

a r i e s . F o r ei g n c o m p eti ti o n i s e s p e c i a ll y s e v e re o n t h e G ulf C o a st, a n d P itt s b u r g h 

a n d C hic a g o p r o d u c e rs m eet t h i s c o m p eti ti o n b y s h i p pi n g l a r g e t o n n a g e s d o w n t h e 

O hi o a n d M i s si s si p p i R i v e r s. S h all o w - d r a ft u s e r c h a r g e s w o ul d gi v e t h e f o r ei g n 

p r o d u c e rs a ne w a d v a nta g e i n c a p t u ri n g b u si n e s s fr o m d o m e sti c p r o d u c e r s.

P etr ole u m . — S e v ere c o m p eti ti v e d i s r u p ti o n w o ul d li k e w is e o c c u r i n t h e 

p etr ole u m i n d u str y. T h e i n t e ri o r A m eric a n r e f i n e r i e s a r e d e p e n d e nt o n s h all o w - 

d r a ft b a r gi n g f o r a c c e s s t o m a r k ets f o r t h e i r p r o d u cts . I f , b e c a u s e o f u s e r t a x e s, 

w ate r t r a n s p o rt a ti o n c e a s e d t o be ec o n o m ic i n c o m p eti ti o n w it h p i p e li n e s, p etr ole u m 

fi r m s w hi c h h i s t o r i c a ll y ha ve r e li e d str o n g l y o n w ate r c a r ri a g e w o ul d be f o r c e d 

t o s h i f t t o p i p e li n e s. A he a v y a d d iti o n a l b ur d e n t o d u p li c a t e e f f i c i e n t w ate r 

t r a n s p o rt a ti o n e q ui p m e nt w o ul d t h e n be c a st o n a n i n d u str y e x p e cte d t o p r o vi d e 

ne w i n v e st m e nt f u n d s o f e n or m o u s m a g nit u d e f o r o il a n d g a s e x p l o r a ti o n a n d d e v el o p ­

m e nt, r e fi n e r y c o n str u c ti o n , d e e p - s e a s u p e r p o rt s, s u p e rt a n k e r s, a n d a h o st o f 

o t h e r p u r p o s e s.

T he i m p a ct u p o n t h e hi g hl y c o m p eti ti v e i n d e p e n d e nt r e fi n i n g a n d m a r k eti n g 

se g m e n t o f t h e p etr ole u m i n d u str y — r e l y i n g i m p o rta n tl y o n w ate r t r a n s p o rt a ti o n 

a s "t h e p o or m a n's p i p e li n e " — w o ul d be p a rti c u l a rl y s e v e r e, e n t a ili n g l o s s o f 

v it a l o p e r ati n g f l e x i b ili t y .

Bit u m i n o u s c o al m i n i n g. — T he b i g g e st m ar k et f o r bit u m i n o u s c o al i s i n t h e 

p r o d u cti o n o f e l e c t r i c e n e r g y. I m p o siti o n o f a s h all o w - d r a ft u s e r c h a r g e w o ul d a d d 

t o t h e e l e c t r i c b i l l s o f ma n y m illi o n s o f h o u s e h ol d s, b e c a u s e t h e f u el a dj u st m e nt 

cla u s e i n e l e c t r i c u t i l i t y c o n tr a c t s p r o vi d e s f o r pr o m pt i n cl u si o n i n c o ns u m er b illi n g s 

o f hi g h e r d e li v e r e d c o st s o f f u e l. B ec a u se c o al o ft e n m o ve s l o n g d i st a n c e s fr o m
1 0 7 1

i nes t o u t i l i t i e s — s u c h a s fr o m t h e c o al fi e l d s o f K e n t u c k y a n d S o ut h e r n I ll i n o i s 

t o g e n e r ati n g f a c i l i t i e s a s f a r a w a y a s t h e Al a b a m a a n d F l o ri d a G ulf C o a st a n d t h e 

T wi n C iti e s a r e a — t h e I m pa ct o f a u s e r c h a r g e w o ul d be s u b s t a n ti a l.

C h e m ic als. — A s h all o w - d r a ft w at er w a y u s e r c h a r g e w o ul d be p a rti c u l a rl y i n j u ­

ri o u s t o t h e h u g h c h e m ic al c o m pl e x c e n t e r e d i n t h e a r e a o f C h a rle st o n, W est V ir g i n i a, 

a n d i n t h e U p p er O hi o V all e y. T h e i n d u str y o f t h i s r e gi o n i s d i r e c tl y c o m p eti ti v e 

w it h t h e A tl a n ti c c o a st a l i n d u str y s e r v i n g t h e sa m e m a r k ets b y r a i l a n d tr u c k f o r 

fi b e r s , p l a s ti c s , b le a c h e s, s o l v e n t s a n d i n n u m e ra ble fi n i s h e d c h e m ic al p r o d u cts .

T he i n t e r i o r c h e m ic al i n d u str y i s e s s e n ti a ll y a fi n i s h e d p r o d u ct o p e r ati o n.

I t r e c ei v e s b y ri v e r b a r g e e n or m o u s t o n n a g e s o f b ul k m a t e ri a l s a n d i n te r m e d ia te s 

( b e n z e n e, x y le n e, t o l u e n e, st y r e n e, e t c . ) fr o m G ulf C o as t a n d ri v e r v a ll e y o il 

r e f i n e r i e s . S u lf u r a n d s a lt a r e m ai n l y o f G ulf C o as t o ri g i n a ti o n . T he se i t c o nv e rt s i n t o fi n i s h e d c o ns u m er a n d i n d u s t ri a l p r o d u cts . T h e A lt a n ti c C o a st's c o mp e titi o n , h o w e v er, i s e s s e n ti a ll y o ri e n t e d t o d e e p - d r a ft r e c e i p t s. T he i n t e r ­

r e g i o n a l c o m p eti ti v e d i s l o c a ti o n s a d v e r s e t o t h e W est V ir g i n i a i n d u str y o f a n 

e x cl u si v e l y s h all o w - d r a ft u s e r c h a r g e a r e o b vi o u s.

A m eric a n a g ri c u lt u r e . — A s h all o w - d r a ft w at er w a y u s e r c h a r g e w o ul d u n de r m i n e

t h e s t r u c t u r e o f tr a n s p o rt a ti o n c o st s a n d r a t e s v it a l t o m a r k eti n g a l a r g e p o rti o n 

o f t h e N a ti o n's fa r m c r o p s. L o w t r a n s p o rt a ti o n c o st s a r e e s s e n ti a l t o fa r m p r o s p e rit y . 

B ec a u se o f t h e h a p p e n sta n c e o f cli m ate a n d s o il d i s t ri b u ti o n , n a t u r e h a s pla c e d 

t h e m ost p r o d u cti v e fa r m r e gi o n s d ee p i n t h e c o n ti n e n t a l i n t e r i o r, e xte n di n g fr o m

O hi o o n t h e e a s t, w est w ar d t h r o u g h N e b ra s k a, a n d fr o m M i n n es ota o n t h e n o rt h s o u t h e rl y 

t h r o u g h t h e M i s si s si p p i V all e y. B ut t h e m aj o r d o m e sti c m a r k ets a r e i n t h e la r g e 

p o p u la ti o n c e n t e r s w it h a h ea v y c o n c e n tr ati o n al o n g t h e c o a st s. E x p o rts o f fa r m 

p r o d u cts li k e w i s e ha v e t o re a c h t h e c o a s t s. T h e r e f o r e, l o w - c o st, l o n g - h a ul t r a n s ­

p o rt a ti o n i s i m p e r ati v e t o a s o u n d fa r m ec o n o m y.
1 0 7 2

T he c o st o f m o vi n g fa r m p r o d u cts fr o m t h e i n t e r i o r t o t h e c o a st s r e s t s f u n d a ­

m e nta ll y o n a w ate r t r a n s p o rt b a s e. T hr o u g h o ut t h e e a rl y h i s t o r y o f t h e M i d dle 

W est, m o re fa r m c r o p s f o u n d t h e i r wa y t o d i s t a n t m a r k ets e it h e r d o w n t h e M i s si s si p p i 

R i v e r o r b y wa y o f t h e G re at L a k es s y st e m. I t ma y be n o te d, a s a n i n st a n c e o f t h e 

i m p o rt a n c e o f w at er w a y t r a n s p o rt a ti o n , t h a t t h e p ri n c i p a l tr a d i n g a n d m a r k eti n g 

c e n t e r s f o r fa r m p r o d u cts d e v el o p e d a t s u c h p l a c e s a s M i n n e a p oli s, a t t h e he a d o f 

n a v i g ati o n o n t h e M i s si s si p p i R i v e r; a t C hic a g o, a t t h e he a d o f G re at L a k es n a vi g a ­

ti o n ; a n d a t Ne w O rle a n s, t h e M i s si s si p p i R i v e r s e a p o rt te r m i n u s. Wit h t h e 

d e v el o p m e n t o f m o d er n r a il r o a d t r a n s p o rt a ti o n , r a i l r a t e s o n fa r m c r o p s ca m e t o be 

b a se d o n e x i sti n g w at er w a y c o m p eti ti o n, a n d s t i l l a r e. T r u c k r a t e s, i n t u r n , 

a r e a n c h o re d t o r a il r o a d c h a r g e s. A n y s u b st a n ti a l i n j u r y t o l o w -c o st s h all o w - d r a ft 

w at er w a y tr a n s p o rt a ti o n w o ul d t h u s r e l e a s e r e s t r a i n t s o n e c o n o m ic al m o ve m e nt o f 

fa r m c r o p s b y o t h e r m o d es, a s w ell, tr a n s m itti n g t h e i n j u r y t h r o u g h o ut t h e t r a n s ­

p o rt a ti o n s t r u c t u r e o f fa r m m a r k eti n g.

V II. I MP A C T O N R E GI O N A L D E V EL OP ME NT A N D M U L TI- P U R P O S E W A T E R R ES O U R C ES P R O G R A MS

At t h e r e c e n t N ati o n al G o v er n ors C o n fe re n c e i n Ne w O rle a n s, s e v e r a l 

g o v e r n o rs s p o ke o f t h e n ee d f o r i n d u s t ri a l gr o wt h t o h el p t h e N ati o n fi g h t o f f 

t h e li n g e ri n g r e c e s si o n. T h e r o l e o f l o w -c o st w ate r t r a n s p o rt a ti o n i n g e n e r ati n g 

i n d u s t ri a l d e v el o p m e nt, n ot o nl y al o n g t h e c o a st s b ut t h r o u g h o ut t h e i n t e r i o r 

h e a rtl a n d , i s w i d el y d o c u m e nte d. Wit h r e s p e c t t o sti m u l a ti n g i n d u s t ri a l e x p a n si o n, 

w ate r w a y s a r e o ft e n r e f e r r e d t o a s a c a t a l y s t.

O b vi o u sl y , I m p o sit i o n o f w at er w a y t o ll s o r u s e r c h a r g e s w o ul d I m p air t h e 

a tt r a c ti v e n e s s o f w ate r si d e m a n u fa ct u ri n g a n d p r o c e s si n g p l a n t s it e s . Wit h 

hi g h e r w ate r r a t e s n e c e s sit a t e d b y u s e r c h a r g e s, i n d u s t ri e s al o n g t h e i n la n d 

ri v e r s c o ul d n ot s hi p ra w m a t e ri a l s fr o m s u c h d i s t a n t l o c a ti o n s o r s e ll t h e i r 

p r o d u cts c o m p eti ti v el y i n f a r - o f f m a r k ets . G e n e r all y, p l a n t s w o ul d ha ve t o be
1 0 7 3

t e d i n a r e a s c o n v e nie nt e it h e r t o ra w m a t e ri a l s s o u r c e s o r t o m aj o r m a r k ets , 

o r b ot h . C o st- r e c o v e r y u s e r c h a r g e s w o ul d c o m pel s u c h d e c i si o n s. B ut i n a u g u r ati o n 

o f w at er w a y u s e r c h a r g e s, e v e n a t l o w i n i t i a l l e v e l s, w o ul d ha ve a d e fi n it e 

c h illi n g e f f e c t o n ne w i n d u s t r i a li z a ti o n a t i n la n d l o c a ti o n s. T o ll s o f a n y 

t y p e o r a m o u nt w o ul d s e r v e n o ti c e t h a t a r a d i c a ll y ne w w ate r w a y s p o li c y ha d 

be e n i n a u g u r ate d a n d t h a t t o l l s a t h i g h e r a n d hi g h e r l e v e l s w o ul d c o me i n a

m att e r o f ti m e.

W ate r w a y u s e r c h a r g e s c o u l d , t h e r e f o r e , u n d e rc ut t h e h o pe o f t h e g o v e r n o r s' 

a s e x p re s s e d i n t h e i r Ne w O rl e a n s c o n f e r e n c e o f u si n g i n d u s t ri a l gr o wt h t o t h w a rt 

t h e r e c e s si o n . N ot o nl y w o ul d u s e r c h a r g e s i m pe de w i d e s p re a d i n d u s t ri a l d e v el o p ­

m e nt t h r o u g h o ut t h e ri v e r v a ll e y s b ut s u c h I m p o sit i o n s w o ul d a l s o r e l e a s e ne w 

i n fl a ti o n a r y p r e s s u r e s i n t h e ec o n o m y. T he r e a l tr a g e d y, h o w e v er, w o u l d n ot be 

m o n eta r y b ut r a t h e r h u ma n, a s t h e dre a m s a n d a s p i r a ti o n s o f t h e p e o ple o f ma n y 

p o t e n ti a ll y p r o d u cti v e r e g i o n s — s u c h a s t h e O z ar k s a n d A p p ala c hia — f o r a n a d eq u ate sta n d a r d o f li v i n g a n d a n i m p o rta nt r o l e i n t h e m ai n str e a m o f A m eric a n a n d

w o rl d c o m me rce w o ul d be d a s h e d.

M ult i- p u r p o s e w ate r w a y s. — I n m os t I n st a n c e s, n a v i g a ti o n i s b ut o n e of

s e v e r a l p u r p o s e s s e r v e d b y ri v e r b a si n d e v el o p m e n t p r o g ra m s. N a v i g ati o n, h o w e v er, 

c o m pl e m e n ts t h e o t h e r i m p o rta nt p u b li c b e n e fit s a c c r u i n g fr o m t h e s e m u lt i- p u r p o s e 

w at er w a y i m pr o ve m e n ts a n d, m o re o ft e n t h a n n o t, p r o vi d e s t h e ec o n o m ic j u s ti f i c a ti o n 

f o r e n ti r e c o m pre h e n si v e pr o gra m s t y p i c a ll y a f f o r d i n g b e n e fit s i n t h e f o r m o f o u td o o r r e c r e a ti o n , fl o o d p r o t e c ti o n , m u nic i p al a n d i n d u s t ri a l w ate r s u p pl y , a n d o fte n

i n e x p e n si v e a n d p o ll u ti o n - f r e e h y d r o e l e c t ri c p o w er i n a d d iti o n t o n a v i g a ti o n.

A n y I m pe di m e nt o n w ate r t r a n s p o rt a ti o n a s w o ul d be I n c u m be nt i n w at er w a y 

t o ll s o r u s e r c h a r g e s c o ul d je o p a r d i z e f u t u r e c o m pre h e n si v e ri v e r p r o g ra m s.

Ea c h w at er w a y f u n cti o n w o ul d b e l e f t, t h e n, o n i t s o w n. T h e r e t u r n t o si n g l e ­

p u r p o s e ri v e r pla n ni n g w o ul d b e c o n tr a r y t o e n li g h te n e d p oli c y - m a ki n g i n o t h e r
1 0 7 4

re a s of n ati o n al re s o u rc e s ma na g e m e nt, w hic h i s n o w f o ll o w i n g t h e le a d e r s hi p 

of b ol d a n d i m a g i n ati v e w at er re s o u rc e s pr o gra m s o v er t h e l a s t t h r e e de ca de s 

a n d t u r ni n g m ore a n d m ore t o m ulti- p u r p o se re s o urc e u tili z a ti o n . W ate r re s o u r c e s, 

we s u b m it, a r e j u st a s v al u a ble a n d si g n ifi c a n t fr o m t h e n ati o n al st a n d p oi n t 

as a re ot h e r n at u r al re s o u rc e s. Wi se, pr u d e n t F e d er al ma na ge m e nt i s , i n f a c t, 

m ore i m p ort a n t t h a n e v er.

V III. U S E R C H A R G ES W O UL D D EP RI V E T H E C O N G R ESS OF A VI T A L P U B LI C P O LI C Y T O O L

D o w n t h r o u g h t h e y e a r s, C o n g re ss ha s us e d water wa y pr o g ra m s a s a mea n s of 

a c hie vi n g c e rt ai n b r o a d -s c ale p u bli c o bje cti v e s. T h es e o bje cti v e s ha ve be e n f a r 

m ore p e r v a si v e t h a n m er el y t h e p r o vis i o n of w at er tr a n s p o rt ati o n o r, i n s u bs e q ue nt 

y e a r s, t h e p re v e nti o n of fl o o d s. R at h er, t h e C o n g re ss i n c o n si d e ri n g n a vi g ati o n 

a n d ot h e r w at er re s o u rc e s f u n cti o n s ha s te n d e d t o J u stif y t h e s e e x p e n dit u re s o n 

t h e b a sis of t h e ir c o ntr i b uti o n s t o wa r d t h e att ai n m e nt of s u c h p u bli c p oli c y o bje cti v e s as re gi o n al gr o w t h, ec o n o mic de vel o p m e nt a n d e n er g y c o n s e r v ati o n. R ar el y 

ha s C o n g re ss j u d g e d water wa y pr o g ra m s s ole l y i n r el ati o n t o " n ati o n al e ffi cie n c y " 

or "tr a n s p o rt ati o n sa vi n g s" or ot h e r s u c h si n gle - p u r p o se t e s t s.

As a y o u n g C o n gr ess ma n, A bra ha m Li n c o l n el o q u e ntl y de fe n d e d t h e e x pe n d it u r e of p u bli c f u n d s f o r t h e i m pr o ve m e nt of ri v e r n a vi g ati o n. " T h e p r ote cti o n 

of o u r c o m merce o n t h e hi g h se a s * * * i s , f o r a ll I ca n s e e, i n p ri n ci p le t h e sa me 

as i n t e r n al i m pr o v e m e nts," Mr. Li n c o l n s ai d . " T he d ri v i n g a p ir a t e fr o m t h e 

tr a c k of c o m merce o n t h e br oa d oc ea n, a n d t h e re m o vi n g a s n a g fr o m it s m ore 

na rr o w p at h o n t h e M is sis si p pi Ri v er c a n n ot, I t h i n k, be dis ti n g uis h e d i n p ri n ­

c i p l e. "

Whe n F ra n kli n D. R o o se ve lt t o ure d t h e Te n n es se e V all e y a m o nt h a ft e r his 

ele cti o n i n 1 9 3 2 a n d a n n o u nc e d h i s s u p p ort f o r t h e T. V. A. pr o g ra m, he s p o k e of 

i t as a n "e x a m ple of pla n ni n g, n ot J u st f o r o u r s el v e s, b ut f o r g e n e ra ti o n s t o 

c o me, b y t y i n g I n d u str y, a g ri c u lt u r e, f o r e str y, a n d fl o o d p re v e nti o n i n t o a
1 0 7 5

it e d w h ole f o r a d i st a n c e o f a t h o u s a n d m il e s t o p r o vi d e a b e tt e r pla c e f o r 

m illi o n s y et u n b o r n." P r e si d e n t Eis e n h o w er, i n h i s 1 9 5 6 S t a t e o f t h e U ni o n 

m e ss a g e, r e f e r r e d t o p u b li c w or ks a c t i v iti e s a s " c l o s e l y i n t e r r e l a t e d " a n d h a vi n g 

" a s u b st a n ti a l i n fl u e n c e o n t h e gr o w t h o f t h e c o u n tr y. M o re o v er, " he c o nti n u e d, 

" i n ti m e s o f ec o n o m ic c o n t r a c ti o n , t h e y ma y bec o m e a v al u a b le s u st a i n i n g f o r c e. "

I n t h e sa m e v e i n, Se n. J e n ni n g s R a n d ol p h, t h e d i sti n g u i s h e d c h ai r m a n o f t h e 

S e n ate P u bli c W o r ks C o m mitte e, h a s f r e q u e n tl y r e f e r r e d w it h j u s ti f i a b l e p ri d e 

t o w ate r r e s o u r c e s d e v el o p m e n t pr o g ra m s a s c o n t ri b u ti n g " t o t h e w ell b ei n g o f t h e 

A m eric a n p e o p le ." I b e li e v e, Mr. C h ai r m a n , t h a t y o u h a v e ma d e s i m il a r st at e m e n t s, 

c iti n g w ate r r e s o u r c e s pr o g ra m s a s " a c a p it a l i n v e st m e nt i n A m e ri c a." I n d e e d, 

w hil e w at er w a y p r o j e c t s a r e t e c h n i c a ll y e v al u ate d s o l e l y o n t h e b a si s o f t h e i r 

n a ti o n a l ec o n o m ic e f fi c i e n c y a n d, si n c e 1 9 7 3, e n vir o n m e nta l q u a lit y e f f e c t s , t h e 

l e g i s l a ti v e h i s t o ri e s o f m aj o r w ate r s t a t u e s — i n cl u d i n g t h e R e cla m ati o n, Fl o o d 

C o n tr o l, a n d T e n n e ss e e V all e y A cts — i n d i c a t e t h a t la w m a k er s h a v e n ot be e n c o nc e r n e d e x cl u si v e l y w it h e it h e r e n vir o n m e nta l i m p a ct o r n a ti o n a l i n c o m e. T his 

i s a p o i n t w hic h P r o f. A rt h u r M aa ss o f H ar v ar d U n i v e r sit y h a s r e p e at e d l y ma de, 

a s he di d i n t h i s e x c e r p t fr o m T h e Q u a rt e rl y J o u r n al o f E c o n o mic s:

" T he m aj o r li m it a ti o n o f b e n e fit - c o s t a n a l y si s, a s i t h a s b e e n a p pli e d 

t o p u b li c i n v e st m e nts i n t h e U nit e d S t a t e s, i s t h a t i t r a n k s p r o j e c t s a n d 

pr o gra m s i n te r m s o nl y o f ec o n o m ic e f fi c i e n c y . * * * B ut t h e o b j e c ti v e o f 

m ost p u b li c pr o gr a m s i s n ot si m pl y , n ot e v e n p ri n c i p a ll y , ec o n o m ic e f f i ­

cie n c y. * * *"

A n ot h er w ell k n o w n a u t h o rit y o n w ate r r e s o u r c e s m a tt e r s, I r v i n g K. F o x,

ma de a st u d y o f w ate r r e s o u r c e s p o li c y i s s u e s f o r R e s o u rc e s f o r t h e F u t u r e, I n c .,

a n d ha d t h e s e o b s e r v ati o n s a s t o t h e p u b li c v al u e s i n v ol v e d:

" W at er r e s o u r c e s d e v el o p m e nt h a s b e e n u n d e rt a k e n t o p r o vi d e e m pl o y ­

m e nt o p p o rt u n iti e s i n ti m e o f d e p r e s si o n, t o r a i s e li v i n g st a n d a r d s i n 

d e p r e s s e d a r e a s, a n d t o f o s t e r t h e s ettl e m e n t o f u n d e r- d e v el o p e d r e g i o n s.

I n b r i e f, i t i s e vi d e nt t h a t w ate r r e s o u r c e s d e v el o p m e n t h a s b e e n vi e w e d 

a s o n e m ea ns o f h el p i n g t o p r o vi d e t h e ec o n o m ic o p p o rt u n it y, s o c i a l s e ­

c u rit y , a n d p e r s o n al fr ee d o m a c c e pte d a s a m o n g t h e g o als o f o u r d e m o c ra ti c 

s o c i e t y . * * *"
1 0 7 6

ut t h i a i n str u m e nt o f p u b li c p o li c y c o ul d be j e o p a r d i z e d . — I m p o siti o n 

o f u s e r c h a r g e s w o ul d " c o m m e rc ia li z e " t h e w at er w a y s a n d t h e r e b y d e p ri v e t h e 

C o n gre ss o f t h e a b ilit y t o u tili z e w ate r r e s o u r c e s pr o gra m s i n p u rs ui n g br o a d 

o b j e c ti v e s o f p u b li c i n t e r e s t. T h e n, o nl y t h o s e p r o gra m s w it h al m o st i m m e dia te, 

m a r k eta ble b e n e fit s c o ul d p a s s t h e u s e r - p a y - a ll c r it e r i o n . N o l o n g e r w o ul d 

w ate r r e s o u r c e s p r o j e c t a p p r o v al b e g e are d e it h e r d i r e c tl y o r i n d i r e c tl y t o 

n a ti o n a l i n t e r e s t i m p li c a ti o n s. W il li n g n e s s, o r a b ilit y , t o pa y w o ul d bec o m e 

t h e p ar a m o u nt c o n si d e r a ti o n.

W at er wa y u s e r c h a r g e s w o ul d, i n e f f e c t, p ut t h e F e d e r al g o ve r n m e n t i n t h e 

b u si n e s s o f s e lli n g w at er w a y s e r v i c e s. Ca s h fl o w s w o u l d h a v e t o b ala n c e. P ri v a t e 

u s e r e s u lti n g i n pa y m e nt o f t o l l s o r c h a r g e s w o ul d be u p p er m o st i n t h e o p e r ati o n 

o f s u c h a s y st e m. P u bli c v al u e a s p e c t s o f w at er w a y p r o gra m s c o ul d h a r dl y be a 

m a tt e r o f c o n c e r n i n a t o l l s re gi m e. I t al m o st g o e s w it h o ut s a yi n g: t o ll s o r 

u s e r c h a r g e s c o n f e r n o p u b li c b e n e fit s. T he w at er w a y u s e r c h a r g e c o n c e pt, 

t h e r e f o r e , r e s t s o n a f a ll a c y . T he f a ll a c y i s t h a t t h e o nl y b e n e fit s g e n e r ate d 

b y t h e F e d e ra l i n la n d w ate r w a y s i m pr o v e m e n ts a r e t h o s e w hi c h c a n be s ol d f o r a 

p ri c e .

T o lls r e l a t e , o f c o u r s e, t o t h e n a ti o n a l e f fi c i e n c y o b j e c ti v e, a n d 

e f fi c i e n c y i s f r e q u e n tl y c it e d a s a m oti v ati o n f o r i n s tit u ti n g w at er w a y c h a r g e s.

B ut C o n g re ss , a s h a s b e e n s h o w n, h a s l o n g a u t h o riz e d a n d a p p r o p ri at e d f u n d s f o r 

w ate r r e s o u r c e s pr o gra m s o n t h e c o n vic ti o n t h a t t h e s e p r o gra m s p r o vi d e a u s e f u l 

i n str u m e nt f o r e f f e c t u a ti n g d e si r a b l e p u bli c p o li c i e s e n c o m p as si n g s o c i a l, ec o n o m ic 

a n d o t h e r n a ti o n a l o b j e c ti v e s. I m p o siti o n o f t o l l s o r u s e r c h a r g e s, h o w e v er, 

w o ul d de n y t h e n a ti o n a l v al u e s I n v ol v e d i n w at er w a y pr o gra m s a n d t h u s d i s c r e d it 

t h e c o ll e c ti v e j u d g m e n t o f t h e C o n gre ss d ati n g b a c k m o re t h a n 1 5 0 y e a r s. At t h i s
1 0 7 7

j u n c t u r e i n A m eric a n h i s t o r y , m o re t h a n e v e r, C o n g re ss n e e d s a l l a v a il a b l e p o li c y 

t o o l s t o k ee p o u r N ati o n v i b r a n t a n d a s s u r e a b e tt e r l i f e f o r a l l o u r p e o ple .

I X. U S E R C H A R G ES W O UL D E N D A HI G H L Y S U C C E SS F U L P U B LI C- P RI V A T E S E C T O R P A R T N E R S HI P

I n t h e e v o l u ti o n o f t h e F e d e r al w ate r r e s o u r c e pr o gra m, t h e p ri v a t e a n d p u b li c 

s e c t o r s h a v e l o n g w or ke d i n a n e f f e c ti v e p a rt n e r s h i p . I m p li c it i n t h i s a r r a n g e ­

me nt h a s b e e n t h e l o n g - sta n d i n g C o n g r e s si o n al p o li c y o f p r o vi d i n g t h e i n f r a s t r u c t u r e 

— dre d g e d c h a n n els a n d n a v i g ati o n l o c k s, i n t h e c a s e o f t h e i n la n d w ate r w a y s — 

w hil e t h e p ri v a t e s e c t o r ma de t h e n e c e s s a r y i n v e st m e nts i n o r d e r t o ma k e t h e s y st e m

w or k.

F oll o w i n g W orl d War I, w he n t h e F e d e r al g o v er n m e n t s e t u p i t s o w n b a r g eli n e 

t o r e v i v e c o m m o n c a r r i e r ri v e r t r a n s p o rt a ti o n , s e v e r a l g u i d e li n e s w er e l a i d d o w n 

t o a s s u r e t h e s u c c e s s o f t h e v e n t u r e. T h e c r i t e r i a s p e c ifi e d t h a t t h e r e m ust 

be s p e c i a ll y d e si g n e d b o ats f o r e a c h str e a m , a n d t h a t t h e r e m ust be s u it a b l e 

t e r m i n a l s. I n t h e y e a r s si n c e t h e n, t h e r e h a s b e e n i n v e st m e nt t o t a li n g i n t h e 

t e n s o f b illi o n s o f d o ll a r s i n s p e c i a ll y d e si g n e d t o w b o ats, t u g s a n d b a r g e s 

a s w ell a s i n p o rt s, te r m i n al s a n d r e l a t e d f a c i l i t i e s .

T h e n a v i g ati o n s y st e m i s m o re t h a n j u s t c h a n n els w it h l o c k s a n d r e g u l a ti n g 

w or k s. F or t h e s y st e m t o f u n cti o n, a c o m pl e x o f i n t e r r e l a t e d f a c i l i t i e s a n d 

s e r v i c e s, r e q u iri n g b ot h o n -s h o re a n d i n - c h a n n el t y p e s o f e x p e n d it u r e s, i s n e e d e d.

T he F e d e r al g o v er n m e n t h a s r e s p o n s i b llti y f o r o nl y o n e p o rti o n o f t h e t o t a l 

s y st e m — t h e i n - c h a n n el i n s t a ll a ti o n s . I t i s e rr o n e o u s, t h e r e f o r e , t o c o nte n d 

t h a t t h e F e d e r al g o v er n m e n t b e a r s t h e e n ti r e c o st o f t h e N ati o n ’ s w ate r w a y s.

T h e n o n - F e d e r al p o rti o n o f t h e t o t a l w at er w a y i n v e st m e nt, i n cl u d i n g c a r r i e r f a c i l i t i e s

a n d t e r m i n a l s, p l u s s t a t e a n d l o c a l i m pr o v e m e n ts v e r y p r o b a bl y e x c e e d s t h e F e d e r al

s h a r e. T o u t i l i z e n a v i g ati o n c h a n n els , n o n - F e d e r al i n t e r e s t s m ust p r o vi d e t h e

d o c k s a n d w h a r v e s, te r m i n al s a n d w a re h o u s e s, a c c e s s hi g h w a y s a n d r a il w a y s, p o li c e
1 0 7 8

a n d f i r e p r o t e c ti o n , se w a g e tr e at m e nt f a c i l i t i e s , a n d r e l a t e d s e r v i c e s. T h eir c o st 

i s n ot i n s i g n i fi c a n t.

I n d u s t ri a l g r o w t h. — A n ot h er ele m e nt o f t h e p u b li c - p ri v a t e p a rt n e r s h i p 

a rr a n g e m e nt w hic h h a s w or ke d s o w ell i n t h e h i s t o ri c d e v el o p m e n t o f t h e ri v e r 

v a ll e y s i n v o l v e s t h e l o c a ti o n o f ma n y t h o u s a n d s o f I n d u s t ri a l p l a n t s a t ri v e r - 

o ri e n t e d s it e s . M o st o f t h e l o c a ti o n a l d e ci si o n s w er e ma d e i n r e li a n c e o n 

e st a b li s h e d t o ll - f r e e w ate r w a y s p o li c y , w hic h h a s b e e n i n e f f e c t si n c e p r e ­

c o n s tit u ti o n a l ti m e s.

T h e A m eric a n W at er w a y s O p e r at o r s, I n c ., t h e b a r g e a n d t o w i n g i n d u s t r y's 

n a ti o n a l tr a d e a s s o c i a ti o n , h a s re c o r d e d w ate r w a y - r ela te d i n d u s t ri a l e x p a n si o n 

si n c e 1 9 5 2. T h r o u g h t h e f i r s t q u a rt e r o f 1 9 7 5, t h e o r g a n i z a ti o n r e p o rt e d 9, 5 0 3 

ne w p l a n t s t a r t s o r m aj o r e x p a n si o n s o n o r n e a r n a vi g a ble w ate r w a y s — r e p r e ­

s e n ti n g a p ri v a t e c a p it a l i n v e st m e nt o f m or e t h a n $ 1 6 4 b illi o n a n d i n c a l c u l a b l e 

j o b s a n d a n n u al p a y r o ll s i n c o u n tl e s s ri v e r v a ll e y c o m m u nitie s. B y c o m p a ri s o n, 

t h e t o t a l F e d e r al i n v e st m e nt i n t h e p r o v i si o n o f n a v i g ati o n f a c i l i t i e s si n c e 

1 8 2 4 i s e sti m ate d a t a p p r o xi m ate l y $ 1 0 b illi o n , i n cl u di n g d e e p - d r a ft a n d G re at 

L a k es c h a n n els a n d h a r b o r s a s w ell a s s h all o w - d r a ft w ate r w a y s.

T h e O hi o V all e y i s f r e q u e n tl y r e f e r r e d t o a s A m e ri c a's R u hr — e vi d e n c e 

t h a t t h e p u b li c - p ri v a t e s e c t o r p a rt n e r s h i p i n t h e d e v el o p m e n t o f ri v e r v a ll e y s 

i s w or k i n g a n d w or k i n g w ell. D uri n g t h e p e ri o d fr o m 1 9 5 0 t h r o u g h 1 9 7 2, t h e O hi o 

V all e y I m pr o v e m e nt A s s o c i a ti o n's b i e n n i a l s u r v e y s ha ve r e v e al e d p ri v a t e i n v e st m e nts 

i n ne w o r e x p a n d e d i n d u s t ri a l fir m s i n c o u n ti e s b o r d e ri n g t h e O hi o R i v e r a n d it s 

n a vi g a ble t r i b u t a r i e s t o t a li n g $ 4 2. 8 b illi o n . M o st o f t h e m il e a g e o f t h e O hi o 

R i v e r n a v i g ati o n s y st e m , i n c i d e n t a ll y , li e s i n a f i v e - s t a t e a r e a o f t h e A p p ala c hia n 

R e g i o n.

T his m a ss i v e gr o wt h i n p ri v a t e i n v e st m e nt a c c o u nts f o r s u b st a n ti a l ne w

ta x r e v e n u e s, n ot o nl y t o t h e F e d e r al g o v er n m e nt, b ut al s o t o s t a t e a n d l o c a l
1 0 7 9

v e r n m e nts. T he se t a x e s c o n t ri b u t e m a t e ri a ll y t o t h e a v a il a b ilit y a n d q u a lit y 

o f p u b li c s e r v i c e s, t o s c h o o l s, h o s p it a l s a n d p o li c e a n d f i r e p r o t e c ti o n . Pa yr o ll s a r e r e s p e n t a t l o c a l r e t a i l s t o r e s a n d o n l o c a l p r o f e s si o n a l a c t i v iti e s 

a n d s e r v i c e s. B e n e fit s i n j o b s a n d i n c o m es a r e d if f u s e d t h r o u g h o ut t h e v a ll e y 

c o m m u nitie s. I t I s h i g h l y d o u b tf u l, t h e r e f o r e , t h a t t h e r e i s a si n g l e h o u s e h ol d 

i n t h e v a ll e y w hi c h d o e s n ot b e n e f it, d i r e c tl y o r i n d i r e c tl y , fr o m t h e w ate r - 

b a se d a c ti v it y o f t h i s r e g i o n. T his m u lti p li c a ti o n o f b e n e fit s wa s g r a p h i c a ll y 

d o c u m e n te d i n a st u d y o f t h e e f f e c t s o f w ate r b o r n e c o m m erc e o n t h e L o u i s v ill e, 

K e nt u c k y, m etr o p o li t a n a r e a. T h e U r b a n S t u di e s C e nte r o f t h e U n i v e r sit y o f

L o u i s v ill e f o u n d t h a t t h e c o m bi ne d d i r e c t a n d i n d i r e c t ec o n o m ic i m p ac t o f w ate rb o r n e c o m m erc e i n t h e a r e a a m o u nte d, i n 1 9 7 2, t o s o m e $ 5 8 8 m illi o n i n w a g es a n d

s a l a r i e s .

T o i m p o se t o l l s o r u s e r c h a r g e s o n t h e O hi o a n d o t h e r i n la n d w ate r w a y s 

w o u l d v i o l a t e t h e b a si c u n d e r sta n d i n g w hi c h h a s b e e n i n e f f e c t a l l t h e s e y e a r s 

w it h c o n se q u e n c e s d e st r u c ti v e t o e n e r g y c o n s e r v ati o n, t h e c a p it a l s h o rta g e, 

t h e b a ttl e a g ai n st i n f l a ti o n , t h e b ala n c e o f p a y m e nts, a n d a h o st o f o t h e r 

g o als a n d o b j e c ti v e s o f t h e A m eric a n s o c i e t y .

X. T H E F E D E R A L W A T E R W A YS P R O G R A M I S A L R E A D Y I N S T E P WI T H T H E TI M E S

W hile t h e Ar m y C or ps o f E n gi n e e rs h a s b e e n i n v ol v e d i n i n t e r n a l n a v i g ati o n 

i m pr o v e m e n ts f o r 1 5 1 y e a r s, t h e F e d e r al w ate r r e s o u r c e s pr o gra m h a s b e e n c o n st a n tl y 

re vie w e d a n d c h a n g e d. R e cla m ati o n a c t i v iti e s be ca m e a F e d e r al r e s p o n s i b ilit y 

e a rl y i n t h e 2 0t h C e nt u r y , fl o o d c o n tr o l i n t h e m l d - 1 9 3 0 ’ s, a n d r e c r e a ti o n i n t h e 

m i d - 1 9 4 0 ’ s. P e r h a p s n o o t h e r a c ti v it y o f t h e F e d e r al g o v er n m e n t h a s b e e n s u bj e c t e d t o s u c h cl o s e a n d c o n ti n u i n g s c r u ti n y , p a r ti c u l a r l y i n t h e l a s t fe w d e c a d e s, 

a s h a s t h e w ate r pr o gra m. St u d y c o m m is si o n s, i n t e r d e p a rt m e n t a l t a s k f o r c e s, 

C o n g r e s si o n al c o m m itte e s a n d a c a d e m ic ia n s ha ve c o n ti n u a ll y e x a m i n e d a n d a s s e s s e d

t h e e f f e c t s o f w ate r r e s o u r c e s ma na ge me nt e f f o r t s.
1 0 8 0

e a r e a l l m i n d f ul, o f c o u r s e, t h a t t h e N a ti o n's n e e d s a n d a s p i r a ti o n s 

a r e I n a s t a t e o f c h a n g e a n d t h a t t h e a v a il a b ilit y o f F e d e r al f u n d s i s li m it e d . 

T h e r e f o r e, a m i d str e a m re vie w o f t h e ki n d y o ur S u b c o m mitte e I s m a k i n g, Mr. C hair m a n, 

I s p r o p e r a n d a d m ir a ble . I t i s m y h o pe t h a t fr o m y o ur i n q u ir y w ill fl o w t h e b a si c s 

o f a ne w n a ti o n a l w ate r r e s o u r c e s p o li c y w hi c h w ill a s s u r e a f u ll e r l i f e f o r f u t u r e 

g e n e r ati o n s t h r o u g h e sta b li s h m e n t o f w ate r r e s o u r c e s d e v el o p m e n t p r o gra m s a d e q u ate 

f o r f u t u r e n e e d s t h u s d i s p e lli n g t h e t h r e a t s o o ft e n h e ar d o f l a t e o f a n I m pe n d i n g 

" w ate r c r i s i s . "

I t s h o ul d be n ote d t h a t a r e - d i r e c ti o n o f A m e ri c a's w ate r r e s o u r c e s

pr o g ra m h a s alr e a d y ta k e n pla c e i n r e c e n t y e a r s, a s r e fl e c t e d i n ne w a p p r o a c h e s 

l e g i s l a t e d b y C o n g re ss a n d i m pl e m e n te d b y t h e E x e c uti v e B ra n c h :

— T he N ati o n al E n vir o n m e ntal P o li c y A ct o f 1 9 6 9 m a n da te d m uc h g r e a t e r

a tt e n ti o n i n t h e pla n ni n g p r o c e s s t o t h e p o t e n ti a l e f f e c t s o n n a t u r a l e c o s y ste m s

a n d a e s t h e ti c v al u e s o f la r g e c o n str u cti o n p r o gra m s s u c h a s t h o s e a s s o c i at e d w it h 

w ate r r e s o u r c e s m a n a g e m e nt. W hile N. E . P. A . h a s u n d e nia bl y r e s u lt e d i n g r e a t e r

p r o j e c t c o s t s, t h e A m eric a n p e o ple ha ve e x h i b it e d a w illi n g n e s s t o ma ke t h e 

n e c e s s a r y s a c r i f i c e s t o a s s u r e f o r t h e m s el v e s a n d s u c c e e di n g g e n e r ati o n s a cle a n

a n d h e alt h y e n vir o n m e nt. I t see ms e q u all y c l e a r t h a t t h e ec o n o m ic d e v el o p m e n t

w hi c h s u st a i n s t h e N ati o n c a n be a c c o m pli s h e d w it h i n t h e fr a m e w or k o f e n vir o n ­

m e nta l p r o t e c ti o n , p r o vi d e d t h a t t h e pla n ni n g p r o c e s s d o e s n ot bec o m e t h e c a p ti v e 

o f a s m all b ut p o liti c a ll y e f f e c ti v e m i n o rit y w h o c o n c ei v e o f t h e e n vir o n m e nt s o l e l y 

i n n a t u r a li s t te r m s, r e j e c ti n g gr o wt h a n d ec o n o m ic p r o g r e s s w it h o ut r e g a r d t o 

t h e u r g e nt ne e d f o r I m pr o v e d h o u si n g, u r b a n re n e w al, r e g i o n a l r e h a b ilit a ti o n a n d 

e x pa n d e d J o b o p p o rt u n iti e s f o r t h e b ett e r m e nt o f t h e h u ma n e n vir o n m e nt. T h at i s 

p o s si b l e o nl y i n a gr o wi n g ec o n o m y.

— I n t h e f i e l d o f fl o o d c o n t r o l, we see m t o be m o vi n g t o w ar d a m o re b r o a dl y
1 0 8 1

f o u s e d p a c k a g e o f s o l u ti o n s g e are d t o l o c a ti o n a l n e e d s. C o n g re s s' I n c r e a s e d 

e m p h a si s, a s e x p re s s e d I n t h e W at er R e s o u rc e s D e v el o p m e nt Act o f 1 9 7 4, o n e q u al 

c o n si d e r a ti o n f o r n o n - s t r u c t u r a l a lt e r n a ti v e s I n d e si g ni n g fl o o d p r o t e c ti o n I s 

c o m m e n da bl e. C o u pl e d w it h t h e s t ri n g e n t la n d u s e a n d c o n str u cti o n c o n t r o l s 

c o nta i n e d I n t h e r e c e n t Fl o o d I n s u r a n c e A me n d me nts, t h e s e s t a t u t o r y c h a n g e s 

a r e li k e l y t o p r o vi d e — a ss u m i n g t h a t n e e d e d h y d r o l o g i c al d ata a n d t e c h n i c a l 

e x p e rti s e a r e a v a il a b l e - - ne w fl o o d p r o t e c ti o n p r o j e c t s u n s u r p a s s e d i n t h e i r 

s o p h i sti c a ti o n a n y w h er e I n t h e w orl d o r a t a n y p r e vi o u s ti m e I n h i s t o r y .

B ut, a g ai n, we m ust n ot p e r m it t e c h n i c a l s o p h i sti c a ti o n t o s u p pla nt 

c o m m o n s e n s e. T h e s u b st a n ti a l a g ri c u lt u r a l a n d i n d u s t ri a l i n v e st m e nt alr e a d y 

ma de i n o u r ri v e r v a ll e y s m ust be p r o t e ct e d i n t h e f u t u r e. W hile ne w a p p r o a c h e s 

a r e f u ll y i n o r d e r I n u n d e v el o p e d a r e a s, we c a n h a r d l y c o u nte n a n c e m o vi n g e n ti r e 

c i t i e s a n d I n d u s t ri a l c o m ple x es w hi c h li e b e hi n d t h e L o wer M i s si s si p p i R i v e r le v e e s 

w hi c h ac c o m m o d at e t h e d r ai n a g e o f a p p r o xi m ate l y 4 0 p e r c e n t o f t h e la n d a r e a o f t h e 

4 8 c o nti g u o u s s t a t e s .

— T he m o d e r niz ati o n o f t h e w ate r r e s o u r c e s pr o gra m I n k e e pi n g w it h c u r r e n t 

c o n c e r n s i s a l s o e x e m pli fie d b y r e c e n t C o n g r e s si o n al a d o pti o n o f a n e f f e c ti v e m et h o d 

o f p u tti n g t h e w ate r r e s o u r c e s b o o k s i n o r d e r w it h r e s p e c t t o o ut d ate d p r o j e c t s 

w h o se a u t h o ri z a ti o n , d u e t o v a ri o u s r e s t r a i n t s , wa s n e v e r f o ll o w e d b y a p p r o p ri a ti o n s 

o r c o n str u c ti o n . T h e N a ti o n's w ate r r e s o u r c e s a g e n d a s h o ul d be c o n fi n e d t o 

t h o s e p r o p o s als w hi c h a r e s t i l l c u r r e n t, w hic h c a n b e a c c o m pli s h e d u n d e r p r e s e n t 

ec o n o m ic a n d e n vir o n m e nta l c o n d iti o n s, a n d w hi c h a r e s t i l l n ee d e d t o m eet p r e s e n t 

o r p r o j e ct e d n e e d s.

T h es e a r e a l l c o n str u cti v e st e p s r e c e n tl y u n d e rt a k e n t o i m pr o v e t h e v al u e

a n d r ele v a n c y o f w ate r r e s o u r c e s p r o g ra m s. T h es e w o rt h w hil e c h a n g e s a r e

p r e d ic ate d o n t h e c o n ti n u a ti o n o f F e d e r al r e s p o n s i b ilit y i n f u t u r e w ate r r e s o u r c e s
1 0 8 2

a n a g e m e nt e f f o r t s . I m p o siti o n o f w at er w a y u s e r c h a r g e s w o ul d be i n t h e n at u r e o f 

a n e g ati v e c h a n g e — a ste p ba c k w ar d fr o m F e d e r al r e s p o n s i b ilit y f o r t r u l y p u b li c 

w or k s. T h e c o n ti n u i n g e m p h as is s h o ul d be o n p o s iti v e p o li c i e s f o r t h e f u t u r e.

X I. P O S SI B L E C H A N G E S I N N A VI G A TI O N P O LI C Y W HI C H W O UL D B E I N T HE N A TI O N A L I N T E R E S T

O t h e r t h a n t h e t h r e a t o f u s e r c h a r g e s, t h e U. S. i n la n d w ate r w a y s a r e fa c e d 

w it h s e v e r al s e ri o u s pr o ble m s — i n a d e q u ate j u s ti f i c a ti o n c r i t e r i a , u n c e rt a n ti e s 

a s t o i n t e r e s t/ d l s c o u n t r a t e s, a n d e v e r -i n c r e a si n g ti m e la g s b et w ee n a u t h o ri z a ti o n 

a n d c o n str u c ti o n . T he pr o ble m o f r e s t r i c ti v e p ri n c i p l e s a n d sta n d a r d s f o r e v al u ati n g 

p r o p o se d ri v e r a n d h a r b o r p r o j e c t s i s b ei n g a d d re s s e d i n t h e o n - g oi n g S e cti o n 8 0 (c ) 

st u d y. F or ma n y y e a r s, t h e E x e c uti v e B ra nc h h a s i n s i st e d o n p r o j e c t e v al u ati o n s 

li m it e d t o n a ti o n a l i n c o m e b e n e fit s (a n d si n c e l a t e 1 9 7 3 e n vir o n m e nta l e f f e c t s ) 

w hil e t h e C o n g re ss h a s g e n e r all y ta k e n a m uc h w i d e r vie w o f t h e p u b li c v al u e s o f 

w ate r r e s o u r c e s d e v el o p m e n t i n s e l e c ti n g p r o j e c t s f o r a u t h o ri z a ti o n a n d a p p r o p ria ­

ti o n s.

T h e d i s c o u n t r a t e is s u e i s a l s o t o b e c o v ere d i n t h e S e cti o n 8 0 ( c ) r e p o rt.

I t i s i m p o rta nt t o p o i n t o u t, h o w e v er, a s t h e i n t e r e s t/ d l s c o u n t r a t e i n c r e a s e s, 

i t a f f e c t s t h e sc o p e a n d t y p e o f f u t u r e p r o j e c t s. As a p r a c ti c a l c o n si d e r a ti o n , 

d is c o u nt r a t e s i n t h e ra n g e o f 7 p e r c e n t, o r h i g h e r, r u l e o ut p r o j e c t s h a vi n g 

e x c e s s c a p a c it y t o ac c o m m o d at e f u t u r e de m a n d, s u c h a s, f o r I n st a n c e, t r a f f i c w hi c h 

mi g ht re a s o n a bl y be a n ti c i p a t e d t o u s e a n a v i g ati o n l o c k 2 0 o r 3 0 y e a r s i n t h e 

f u t u r e. M ost i n la n d n a v i g ati o n p r o j e c t s j u s ti f i e d o v e r t y p i c a l 5 0 - y e a r li f e 

s p a n s w o ul d, a s a c o n s e q u e n c e, be je o p a r d iz e d.

E ve n w h e n p r o j e c t s p a s s a l l t h e f e a s i b i lit y t e s t s a n d a r e a u t h o ri z e d, 

t h e r e i s a n al m o st u n e n di n g s e ri e s o f o b st a c l e s d ela y i n g t h e i r c o n str u cti o n .

O v er t h e l a s t s e v e r a l y e a r s, we ha ve w it n e s s e d a p a tt e r n o f sl o w - d o w ns a n d s t r e t c h ­

o u ts w hi c h h a s p r o d u c e d a n a v e ra g e ti m e la g o f 1 7 y e a r s o r m o re b et w ee n i n i t i a l 

pla n ni n g a n d e v e n t u al c o n str u cti o n o f t y p i c a l w ate r r e s o u r c e s p r o j e c t s. T his
1 0 8 3

ti e la p s e l a f a r t o o l o n g a n d t o o c o stl y . We u r g e C o n g re ss t o a s s u r e t h a t — 

o n ce t h e d e ci si o n h a s b e e n ma d e t o u n d e rta k e w ate r r e s o u r c e s p r o j e c t s —- t h e y a r e 

c o m ple te d a n d p ut I n t o o p e r a ti o n w it h o ut u n d u e d ela y. T h e s o o n e r t h e y ca n be p ut 

t o w or k, t h e b e tt e r t h e p u b li c I n t e r e s t w ill be s e r v e d.

X II. T H E L ES S O N O P W A T E R W A YS E X P E RI E N C E I N O T H E R C O U N T RI E S A N D I N W O R L D HI S T O R Y

A fte r p r e si d i n g o v e r t h e p a n el o n " W at er a n d T r a n s p o rt a ti o n a n d C o m mer ce" 

a t t h e r e c e n t g o v e r n m e nt- s p o n s o re d N ati o n al C o n fe re n c e o n W ate r, P r o f. J o h n L. 

H a za r d, f o r m e rl y A s si st a n t S e c r e t a r y o f T r a n s p o rt a ti o n f o r P oli c y a n d I n t e r n a ti o n a l 

A f f a i r s, o b s er v e d a t p le n a r y s e s si o n :

" I nla n d w at er w a y t r a n s p o rt a ti o n h a s pla y e d a n al m o st le g e n d a r y r o l e

I n t h e N ati o n's d e v el o p m e nt. W or ki n g w it h t h e w o rl d's fi n e s t e n d o w m e nts 

o f r i v e r s , la k e s a n d c o a s t a l w ate r w a y s, i t h a s e n a ble d u s t o a c hie v e a 

p a tt e r n o f i n t e r n a l d e v el o p m e nt u n m at c h e d b y a n y o f t h e c o n ti n e n t- si z e d 

n a ti o n s i n cl u di n g B r a z il, t h e S o vie t U ni o n, a n d A u st r a li a . W hile t h e mi d ­

c o n ti n e n t h a s bec o m e t h e u n if y i n g c e n t e r o f t h e N ati o n w it h t h e d o mi n a n t 

s h a r e o f t h e p o p u l ati o n, i n d u str y , a n d i n c o m e, o t h e r n a ti o n s re m ai n s e ttl e d 

al o n g t h e p e ri p h e r y a n d e m pt y a t t h e i n t e r i o r. * * *"

Y et, w hil e we ha v e t h e w o rl d's fi n e s t n a t u r a l ri v e r s y ste m , we ha ve be g u n 

t o n e g l e ct i t a t t h e sa m e ti m e t h a t o t h e r c o u n tri e s w it h fe w e r n a t u r a l a d v a nta g e s 

a n d m o re m ea g er r e s o u r c e s a r e e m b ar k i n g o n a m bit i o u s d e v el o p m e nt pr o gra m s t o 

u t i l i z e w ate r w a y s t o d e v el o p t h e i r i n t e r i o r s a n d i n c r e a s e t h e i r p a rti c i p a ti o n 

i n w o rl d t r a d e . B y t h e e a rl y 1 9 8 0's , E ur o p ea n s w ill ha ve c o m ple te d t h e li n k a g e 

o f t h e R hi n e — w hi c h h a s t h e c o n ti n e n t's h i g h e st w at er w a y t r a f f i c d e n sit y — w it h 

t h e D a n u b e, t h e l o n g e st w at er w a y i n c e n t r a l E ur o p e. Si x n a ti o n s w ill t h e n be 

c o n n e cte d b y a si n g l e t r a n s p o rt a ti o n s y st e m w hic h w ill, i n t u r n , li n k t h e i r 

i n t e r i o r p o rt s — v i a L AS H a n d Se a B ee — d i r e c tl y w it h i n la n d p o rt s i n o t h e r p a rt s 

o f t h e w o rl d, i n cl u d i n g t h o s e i n t h e U nit e d S t a t e s.

G re at B rit a i n h a s e m ba r k e d u p o n a m aj o r n a ti o n a l pr o gra m o f i m p r o vi n g 

i t s c a n al s t o r e li e v e r o a d c o n g e sti o n a n d sti m u l a t e ec o n o m ic d e v el o p m e nt. B r a zil 

a n d P a ra g u a y ha v e j u s t la u n c h e d t h e J o i n t c o n str u cti o n o f w ha t w ill, w h e n c o m -

5 4- 2 3 9 0 - 7 5 - 6 9
1 0 8 4

p l e t e d , b e t h e w o rl d's l a r g e st h y dr o p o w er da m, p r o d u ci n g 1 0. 7 m illi o n k il o w a tt 

h o u r s, fi v e ti m e s t h e c a p a cit y o f E g y pt's fa m e d As wa n Da m. T h e t w o S o ut h A m eric a n 

n a ti o n s e x p e ct t h e ne w p o w er c a p a cit y t o sti m u l a t e i n d u s t ri a li z a ti o n a n d j o b s f o r 

t h e i r p e o ple . A f ri c a i s l o o ki n g t o w ar d d e v el o p m e n t o f t h e S e n e g al R i v e r B as i n

t o h a lt e n cr o ac h m e nt o f t h e S a h a ra D e s e rt w hic h h a s c a u se d m a ss i v e h u ma n s t a r ­

v a ti o n i n r e c e n t y e a r s.

M ea n w hile, we i n A m eric a w it h — a s P r o f. H az ar d p oi n te d o ut — t h e m ost

b o u n tif u l w ate r r e s o u r c e g i f t s i n t h e w o rl d, s o m eti m es see m u n a w ar e o f t h e i r 

v al u e. We ta k e t he m f o r g r a n te d. Ma n y i n p oli c y - m a ki n g p o s iti o n s i g n o r e t h e

p o s s i b iliti e s f o r u tili z i n g o u r w ate r r e s o u r c e s t o f u ll a d v a nta g e t o m eet d o m e sti c

a n d w o rl d n e e d s. T h e y w o ul d p r e f e r i n st e a d t o q ui b ble o v e r e s o t e ri c c o n c e pts 

s u c h a s t h e t h e o r e ti c a l d is c o u nt r a t e , t h e v a li d it y o f s e c o n d a r y o r s o - c all e d 

i n d i r e c t b e n e fit s, a n d i d e n ti fi c a ti o n o f s u p p o se d " d i r e c t b e n e fi c i a ri e s " w h e n, 

i n f a c t, a l l A m eric a n s a r e t h e r e a l b e n e fi c i a ri e s o f s o u n d p o li c i e s f o r w ate r 

r e s o u r c e s d e v el o p m e n t — a n d, b y t h e sa m e t o k e n, a r e a l l t h e v i cti m s o f s h o rtsi g h te d p o li c i e s.

C o n g re ss a n d t h e E x e c uti v e a g e n cie s h a v e, i n r e c e n t y e a r s, b e e n l i t e r a l l y 

b o m ba r d e d b y t h e r h e t o ri c a n d h y s t e ri a o f t h e s e n e g ati v e v o ic e s — n ot o nl y i n 

t h i s f i e l d o f p o li c y b ut i n ma n y o t h e r s as w e ll. We a r e f r e q e n tl y w it n e s s t o 

t h e p h e n o m e n o n o f d o o m sa y er s w h o, b y s k ill f u ll y s h a c k li n g u s w it h re d t a p e, a n d 

l e g a l a n d t e c h n i c a l " C atc h 2 4'a , " m a n a g e t o g e n e r ate a p o rti o n o f t h e d o o m t h e y 

p r e d i c t a n d t h e r e b y bec o m e p r o p h ets i n t h e e y e s o f c a s u al o b s e r v e r s.

We k n o w t h a t y o u a n d y o u r S u b c o m mitte e, Mr. C h ai r m a n , a s e l e ct e d 

r e p r e s e n t a ti v e s r e s p o n si b l e f o r t h e w elf a r e o f d i v e r s e g r o u p s o f A m eric a n s i n 

b r o a d r e a c h e s o f o u r c o u n tr y, w ill ta k e a m o re d e li b e r a ti v e vie w , a s p r e vi o u s 

p o rti o n s o f t h e s e h e a ri n g s — a n d y o u r r e c e n t ri v e r t o u r — h a v e alr e a d y e vi d e n c e d.
1 0 8 5

T h e l a t e S e n. A ll e n J. E ll e n d e r, a g i a n t I n t h i s N a ti o n's w ate r r e s o u r c e s 

d e v el o p m e n t e f f o r t s , o ft e n o b s er v e d t h a t h i s t o r y I s " str e w n w it h t h e w re c k a g e o f 

g r e a t c i v ili z a ti o n s w hic h n e g le cte d t h e i r w ate r a n d la n d r e s o u r c e s. " T h e d i r e 

f o r e c a st s o f c r i t i c s o f w ate r r e s o u r c e s m a n a g e m e nt a c t i v iti e s w ill o c c u r o nl y I f 

we h a lt t h e s e e f f o r t s , h e e di n g t h e i r a d vic e r a t h e r t h a n Se n. E ll e n d e r's wis d o m.

We t h a n k y o u, Mr. C h ai r m a n, f o r t h e p ri v il e g e o f t e s ti f y i n g b e f o r e y o u r 

S u bc o m mitte e a n d s h a ri n g w it h y o u s o m e o f o u r vie w s a s t o t h e s i g n i fi c a n c e a n d 

ti m e li n e s s o f F e d e r al n a v i g a ti o n, fl o o d c o n tr o l a n d o t h e r w ate r r e s o u r c e s p r o g ra m s. 

O v er t h e y e a r s, t h e s e pr o gra m s h a v e b e e n a b u n d a ntl y v i n d i c a t e d b y t h e i r s u c c e s s.

We h o pe t h a t t h e S u b c o n m itte e i s c o n vi n c e d, a s we a r e , t h a t a str o n g F e d e r al 

r o l e i n t h e m a n a g e m e nt o f A m e ri c a's p ri c e l e s s w ate r r e s o u r c e s i s m or e i m p e r ati v e 

t h a n e v e r — e s p e c i a ll y i n vie w o f t h e c o m ple m e n ta r y r e l a ti o n s h i p b et w ee n w at er w a y 

pr o gra m s a n d n a ti o n a l p o li c y o b j e c ti v e s.

We u r g e t h e S u b c o m mitte e t o r e s i s t e f f o r t s t o i m p o se t o l l s o r u s e r c h a r g e s 

o n w ate r t r a n s p o rt a ti o n . F o r t h e r e a s o n s s e t f o rt h i n t h i s st at e m e n t, s u c h a 

ta x i m p o sit i o n w o ul d b e c o u n t e r - p r o d u cti v e a n d c o ul d h a r d l y b e a d v a n c e d a t a 

m ote i n o p p o rt u n e ti m e. T o ll s o r u s e r c h a r g e s w o ul d i m pe de n a ti o n a l p r o d u c ti v it y , 

i n s p i r e ne w I n fl a ti o n t h r o u g h a wa ve o f hi d d e n t a x e s, a n d d e p ri v e t h e C o n gre ss o f 

a n e f f e c ti v e i n str u m e nt o f p u b li c p o li c y . I n 1 8 3 2, a C a n a dia n c iti z e n s c o n m itte e 

p r o t e st e d t h e e f f e c t s o f i n a d e q u ate n a v i g a ti o n o n t h e S t. La w re nc e R i v e r, c o nte n di n g 

t h e c o n d iti o n c o n stit u t e d " a c l e a r d e d u cti o n fr o m t h e p r o f it s o f t h e f a r m e r, a ta x 

u p o n t h e c o n s u m er, a n d a c h ec k u p o n t h e s p i r i t o f tr a d e a n d c o m m er ce." I n 1 9 7 5, 

a li k e c iti z e n s ’ p r o t e s t c o ul d j u s t a s a p p r o p ri a t e l y be d ir e c t e d t o t h e c u r r e n t 

t r e a t o f w ate r w a y t o l l s o r u s e r c h a r g e s.

N ati o n al W at er w a y s C o n fe re n c e, I n c. 

1 1 3 0 1 7t h S t r e e t, N ort h w e st 

W a s hi n gt o n, D. C. 2 0 0 3 6
at i o n al W at er w a y s C o nf e r e n c e, I n c., 1 1 30 1 7t h Str e et, N W., W a s hi n gt o n, D C., 2 0 0 3 6

N o ve m ber , 1 9 7 5

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I n his te sti m o n y b ef o re t h e S u b c o m mittee o n Water R es o u rc es 

o n Oct o be r 8, 1 9 7 5, Mr. Bre nt Bla c k w el de r of t h e E n vi r o n m e ntal 

P oli c y C e nte r sta te d t h at "t h e m ost re c e nt e n er g y st u d y of r a il 

a n d ba r g e m o d es, d o ne b y A nt h o n y Se bal d at t h e U ni v e rs it y o f I l ­

li n ois * C e nte r f o r A d v a nce d C o m p utati o n i n Ma y 1 9 7 4, i n dic ate s 

t h at r ail r o a d s a re fr o m 1 0 t o 2 3 p erc e n t m ore e n er g y e f fi c i e n t 

t h a n b a r g e s." S uc h a state m e nt i s hi g hl y misle a d i n g i f n o t p ate ntl y f als e.

Mr. Se bal d *s 1 4 - p a g e p a p er o n m o dal e n er g y e ffic ie n c y f o u n d 

t h at ba r g e r o ute s bet w ee n s ele cte d o ri g i n s a n d d e sti n ati o n s were 

g e n e r all y l o n g er t h at r a il r o ute s a n d t h at t h e f u el e ffic ie n c y 

of r ail r o a d s p a r all eli n g water w a y s was g r e ate r t h at t h e n ati o n al 

a v er a g e. T h e n, Mr. Se bal d ma k es t h i s c o n cl u si o n: " T he r e s u lt a n t 

e n er g y i n te n sit y c o m pa ris o n i n cl u di n g t h e t w o a b o ve m e nti o ne d 

f a ct o r s a n d t h e b e st a v ail a ble ba r g e e n er g y i n t e n sit y p er t o n - m il e 

I n dic ate s t h at r a il i s fr o m 1 0 t o 2 3 p e rc e nt l e s s e n er g y i n te n si v e 

t h a n b ar g e, b ut s u c h a f a ct o r i s I n c o n cl u si v e i n vie w of t h e 

la r g e u n c e rta i n t y a s s o cia te d w it h t h e ba r g e f u el c o ns u m pti o n d ata . 

C o n v e n ie ntl y, Mr. Bla c k w el de r f o r g ot t o m e nti o n t h at Mr. Se bal d 

c o n si d ere d his fi n di n g s a s "i n c o n cl u si v e."

Be ca u se of s u b sta nti v e ga ps i n it s m et h o d ol o g y, t h e Se bal d 

"s t u d y " ha s n ot be e n s e ri o u sl y re g ar d e d i n ac a d e mic c i r c l e s. I n 

f a c t, o ne pr o m i n e nt e n er g y r e s e a rc h e r s ai d t h at t h e Se bal d pa pe r 

"s he d n o ne w li g h t " o n t h e r e l a ti v e f u el c o ns u m pti o n e ffic ie n c y 

o f t h e tr a n s p o rta ti o n m o des. I n f a c t, t h e U. S. De part m e nt of 

T r a n s p o rt ati o n ha s e x pre ss e d m is gi v i n g s o v er m o d al e ffic ie n c y a v er 

a g e s, n oti n g t h at e n er g y I n te n si v e n e s s c al c ula ti o n s de pe n d o n n u n-
1 0 8 7

n at o r Mi ke Gra vel 

N o ve m ber 6, 1 9 7 5 

Pa g e 2.

er o u a v a ria ble f a ct o r s s u c h as pri m e m o ver te c h n ol o g y, l o a d f a ct o r, 

de a d he a d i n g, le n gt h of h a ul, ge o g ra p h y of a re a s er v e d, ca r g o w ei g ht 

v s. si z e, a v er a g e s p ee d, e t c. T h us, D. O. T. c o ncl u de d t h at e sti m ­

ate d o v e r all i n d u str y a v er a g e s o f e n er g y I n te n si v e n e s s ha d li m it e d 

u s e f ul n e s s. " T he d a n g er s of m is i n te r p r eta ti o n of s u c h I n dic e s I s 

f a r t o o g re at t o de p e n d u p o n o nl y t h e o ne v a ria b le , e n er g y I n te n ­

si v e n e s s, t o be gi v e n u n d ue a tt e n ti o n as a c rit e ri o n f o r tr a n s ­

p o rta ti o n s y st e m e v al u ati o n s i n v ol v i n g c a p it al I n v e st m e nt, o p era ­

ti n g s u b si d y, or a lt e r n a ti v e p o li ci e s d e ci si o n s," D. O. T. re p o rt e d i n 

it s 1 9 7 4 " E ne r g y S t a ti s ti c s " S u p ple m e nt.

T he tr u t h i s t h at b ot h r a il a n d w at er tr a n s p o rta ti o n c o n se r v e 

e n er g y. H o w e ver, we d o n ot b eli e v e t h at a n o bje cti v e a n al y sis 

o f e n er g y re q uir e m e nts — e it h e r d ir e c t or I n d ir e ct — w o ul d s h o w 

r ail r o a d s t o be m ore e n er g y e f fi c i e n t t h a n w at er w a y s. A cc or di n g 

t o n u m er o u s I n de pe n d e nt st u die s a s w ell a s s u r v e y s c o n d ucte d b y t h e 

N ati o n al Water w a ys C o nfe re n ce, I n c., b ar g e tr a n s p o rta ti o n i s a n 

e xtr e m el y e f fi c i e n t e n er g y u s e r — ri v all e d o nl y b y s o me pi p eli n e 

m o v e me nts.

I n att e m pti n g t o d i s c r e d it b ar g e tr a n s p o rta ti o n, Mr. Bla c k - 

w el de r pl a y e d l o o se w it h t h e f a c t s I n h is te sti m o n y. He sta t e d 

t h at " n o ac c o u n t ha s be e n ta k e n " o f water wa y c ir c u it y re q uir i n g 

b ar g e s t o tr a v el "f o u r m il e s f o r e v er y t h re e w hic h c o m peti n g r a il ­

r o a d s ha v e t o t r a v e l. " T his w o ul d be g e n e r all y tr u e I f r ailr o a d s 

al w a y s u tili z e d t h e s h o rte st r a il r o ute s bet w ee n o ri g i n s a n d d e sti n ati o n s. B ut r ail r o a d s ha ve a c ir c u it y f a ct o r, t o o. A ft e r st u d y 

i n g t h o u sa n d s of w a y bills , t h e I n t e r st a t e C o m merce C o m nlssl o n f o u n d 

t h at r a il fr ei g h t m o ves o v er tr a c k s w hic h a r e, o n t h e a v er a g e, 1 5 

p e rc e nt f u rt h e r bet w ee n o ri g i n a n d d e sti n ati o n t h a n t h e m o st d ir e ct 

r a il r o ute .

Mr. Bla c k w el de r cl ai m e d t h at pre vi o u s e n er g y e ffic ie n c y 

st u die s ha d u tili z e d n ati o n al a v er a g e s f o r r a il tr a n s p o rta ti o n w he n 

f u el d ata s h o ul d ha ve bee n de vel o pe d f o r ri v e r v all e y r a ilr o a d s.

T hi s i s w hat Mr. Se bal d att e m pte d t o d o, re p o rti n g t h at t h e e n er g y 

I n te n sit y f o r r a il li n e s c o m peti n g wit h ba r g e t r a f f i c al o n g t h e Missi s si p p i Ri v er a n d G ul f C oa st was 6 3 9 B T U p e r t o n - m il e. He t h e n 

c o m pare d t h i s fi g u r e w it h t h e n ati o n al e n er g y I n te n si v e n e s s a v er a g e 

f o r ba r g e tr a n s p o rta ti o n, w hic h was re p o rt e d t o be 5 7 0 B T U p e r t o n - 

m il e. ( T his fi g u r e i s hi g hl y s u s p e ct, i n vi e w of a s u r v e y we ma de 

fi v e y e ars a g o I n v ol v i n g b a r g eli n e s m o vi n g o n e -t h ir d of a ll t h e 

c o n merce m o ve d i n t h e s u r v e y y e a r. T he s u r v e y re v e ale d a n a v er a g e 

e n er g y i n te n si v e n e s s of 4 1 5 B T U p er t o n - m il e.) P r o p e rl y , t h e e n er g y 

i n te n si v e n e s s of b a r g eli n e s o p e ra ti n g o n t h e M is sis si p pi Ri v er a n d 

t h e G ulf I n tr a c o a st al Ca nal — r at h e r t h a n a n ati o n al a v er a g e — 

s h o ul d ha v e be e n u se d. A d mitte dl y, s m all e r t ri b u t a r y w at er w a y s d o
1 0 8 8

n at o r Mi ke Gra vel 

N o ve m ber 6, 1 9 7 5 

Pa g e 3.

n ot p er mit a s e f fi c i e n t o p e ra ti o n s a s t h el o c k -fr e e L o wer M is sis si p pi a n d G ulf I n tr a c o a st al C a n al. O ne la r g e b a r g eli n e c o m pa n y 

r e c e ntl y re p o rt e d t h at It s t o w b o at s pl y i n g t h e 1, 0 4 9- m il e r o ute 

bet w ee n St. L o ui s a n d Ne w O rl ea n s c o ns u m e d 1 1 9. 8 B T U p er t o n- m il e 

d o w n str ea m a n d 3 8 7. 4 B T U p er t o n - m il e u p st re a m — o r a n a v er a g e of 

o nl y 2 5 3. 6 B T U p er t o n - m il e o n t h i s m o st h e a vil y us e d w at er w a y.

S uc h fi g u r e s w o ul d d r a sti c a ll y c h a n ge Mr. S e b al d's fi n di n g s.

Mr. Bla c k w el de r att e m pts t o ma ke t h e a d diti o n al p oi n t t h at 

b ar g e s a n d r ail r o a d s c o m pete i n t h e m o ve me nt of b ul k c o m m o diti es 

"li k e c o al a n d g ra i n " a n d t h at t h e s e c o m m o diti es a re ha ul e d i n u nit 

tr a i n s " w hic h a re m ore e n er g y e f fi c i e n t t h at re g ula r mi x e d t r a i n s. " 

T hi s ma y be tr u e, b ut t h e f a ct I s t h at t h e re a re ve r y fe w — I f a n y — 

u nit t r a i n s w hic h c o m pete d ir e c tl y w it h ba r g e m o ve m e nt s. O n t h e 

ot h e r ha n d, t h e re a re s e v e ra l m aj or c o al m o ve m e nts n o w I n t h e 

p r o c e ss of bei n g I m ple me nte d w hic h i n v ol v e u se of u n it t r a i n s t o 

h a ul W ester n c o al t o m i d c o nti n e nt ri v e r s f o r tr a n ss hi p m e n t via ri v e r 

ba r g e t o O hi o V alle y a n d S o ut h e a st er n u tilit i e s . I f u nit tr a i n s 

we re r e a ll y m ore e f fi c i e n t t h a n b a r g e s, w h y ha ve t h e se r ail- w ate r 

r o ute s bee n n e g oti ate d ?

T he p ri n ci p al c o n cl u si o n, we b eli e v e, i s t h at A m eri ca ne e d s 

a str o n g, vi b ra nt tr a n s p o rta ti o n s y st e m . A n d t h i s s y st e m c e rt ai n l y 

i n cl u d e s b o t h r a il a n d w ate r c a r ria g e. C o m pare d wit h t h e ot h e r m o d es, 

b ot h a re hi g hl y e f fi c i e n t i n t h e ir c o st of s e r vic e a n d i n t h e ir 

f u el u tili z a ti o n . As Ja m es J. H ill, c h air m a n of t h e G re at N ort h er n 

R ail w a y, o n ce o b se r v e d, t h e t w o c a r ri e r s are m ore c o m ple m e ntar y t h a n 

c o m p etiti v e.

I w o ul d li k e t o re q u e st t h at t h i s l e tt e r be e nte re d I n t h e 

re c o r d of t h e o v e rs i g ht h e a ri n g s.

Si n c e re l y y o urs,

H ar r y N. C o o k 

E xe c u ti ve Vi ce P re si d e nt

H N C/ss
1 0 8 9

at i o n al W at er w a y s C o nf e r e n c e, I n c., 11 3 0 1 7t h Str e et, N W, W a s h n gt o n, D C., 2 0 0 3 6

C H AI R M A N Of T H E B O A R D

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Dr av o C or porati o n

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Willi a m J H ull 

A i nla n d O N. I nc

J u ne 1 7, 1 9 7 4

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Dr. Br u ce M. Ha n n o n 

D ir e ct o r, E n er g y R es ea rc h Gr o u p 

C e nte r f o r A d v a nce d C o m p utati o n 

U ni v e rs it y of Illi n o i s 

Ur ba na, Illi n o i s 6 1 8 0 1

Dear Dr. Ha n n o n:

I e nj o ye d m eeti n g y o u at t h e I n te r n ati o n al S y m p osi u m 

o n E ff e cts of t h e E n er g y S h ort a g e o n T r a n s p o rt ati o n Bala nc e 

hel d May 2 8- 3 1 at P e n ns yl v a n ia S ta te U ni v e rs it y, a n d I a m 

gl a d I was a ble t o h e ar y o u p re s e nt y o ur pa pe r o n " A Rail w a y 

T r u st F u n d." Si n ce t h e n, I ha ve ha d a n o p p o rt u nit y t o st u d y 

y o ur re p o rt a s w ell a s t h e r ela te d re s e a rc h of y o ur a s s o cia t e, 

Mr. A nt h o n y V. S e b al d, w h ose " E ne r g y I n te n sit y of Bar ge a n d 

R ail F re i g ht H a uli n g," fi g u r e s pr o mi n e n tl y I n y o ur st u d y.

As I sta t e d at t h e s y m p osi u m, I q u e sti o n y o ur c o n cl usi o n t h at " r a il e n er g y de m a n ds a r e t h e s m all e st f o r a n y m o de 

o n a fr ei g h t t o n - m il e b a si s. " N eit h er d o 1 b eli e v e Mr.

Se bal d i s c o rr e ct i n h i s c o nte nti o n t h at " r a il i s fr o m 1 0 

t o 2 3 p e rc e nt l e s s e n er g y i n te n si v e t h a n b a r g e." Fr o m a ll 

a v ail a ble i n f o r m ati o n, i t w o ul d a p p ea r t h at y o ur e sti m ate s 

of b ot h d ir e c t a n d i n d ir e ct e n er g y de m a n ds a re v a stl y o v ersta te d f o r w at er tr a n s p o rta ti o n a n d s u b st a n ti all y u n d e r- sta te d 

f o r r a il tr a n s p o rta ti o n. U n f o rt u n ate l y , o nl y e xt re m el y 

s k et c h y d e t a il s a re re v e ale d i n e it h e r pa pe r a s t o h o w t h e se 

c o m pa rati v e e n er g y de ma n ds wer e c alc ula te d. T he dra m ati c 

c o n cl u si o n i s t h e r e, b u t t h e v it a l d o c u m e n tati o n i s m is si n g.

O n t h e b a sis of a p re li m i n a r y a n al y sis of t h e t w o 

p a p ers, h o we ver, I s u g g es t t h at ea c h c o nta i n s a n u m be r of 

b a si c fl a w s. F o r I n sta n c e, e n er g y c o sts of ri g ht- o f- w a y 

m ai nt e n a n ce we re s u p p o se dl y c o n si d e re d, b u t a p p a r e ntl y n o 

all o w a n ce was ma de f o r t h e A m eric a n r a ilr o a d s ’ re p e ate d 

" d e f e rr al" of ne e d e d m ai nte n a n ce, w hic h c o n s e r v ati v el y w o ul d 

a d d at l e a st $ 1. 3 b illi o n a y ea r t o r a il c o st s. Si m il a rl y , 

li m it e d r ail r o a d e q ui p me nt e x p e n dit u re s a re m isle a di n g i n 

vie w of t h e f a ct t h at U. S. f r ei g h t c a r s h o rt a g e s a r e n o w 

a v er a g i n g a b o ut 4 2, 0 0 0 c a r s a da y. O n a c o m pa rati v e b a si s, 

r ail r o a d c a r s c o st a b o ut t w o a n d o n e - h alf ti m es a s m uc h a s 

b ar g es p er u n it of c a p a cit y a n d r e q uir e al m ost 5 0 p erc e nt 

m ore ir o n a n d s t e e l. P u bli c c o sts of i m pr o vi n g n a vi g ati o n
1 0 9 0

Dr. Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa ge T wo

c h a n n el s were m e nti o ne d I n y o ur r e p o rt, b u t w h at a b o u t t h e p u bli c c o st of 

eli m i n ati n g h a za r d s at rail r o a d - h i g h w a y I n te r s e cti o n s, w hic h ha s a v er a g e d 

$ 1 5 0 m illi o n a n n u all y i n F e d era l f u n d s al o n e o v er t h e l a st de ca de ? A g re at 

d e al i s sa i d a b o ut t h e c ir c u it y of ri v e r c h a n n els, b ut di d y o u c o n si d e r r a il 

c ir c u it y - - t h e a ct u al r o ute mil ea ge s of r a il c arl o a d s hi p m e nts i n e x ce ss of 

t h e d i r e c t -li n e r ail r o a d mil ea g es bet w ee n p oi n ts of o ri g i n a n d d e sti n ati o n ?

I n a d dit i o n, a n u m b er of st ate m e nts a re ma de a b o ut t h e ba r g e I n d u str y 

w hic h j u st a re of d o u btf ul a cc ura c y . E x ce pt i n a v er y fe w i n sta n c e s, " u nit 

tr a i n s " d o n o t c o m pete d ir e c tl y wit h ba r g e m o ve m e nt s, s o i t i s u n r e a li sti c t o 

c o m par e o v e r all ba r g e s e r vic e wit h o n l y u n it tr a i n s, o m itti n g a ll ot h e r cla s s e s 

of r a il s e r vic e. Y o ur re p o rt als o a s s e rt s t h at ba r g e t o w s c a rr y " r e l a ti v e l y 

s m all l o a d s" b ec a u se of t h e "l a c k of str e a m li ni n g of b a r g e s." T he tr u t h is 

t h at b ar g es a re str e a m li n e d, m o ve i n i n te g ra te d t o w s, a n d c a rr y m as si ve v ol u m es 

of c ar g o. A si n gle la r g e M is sis si p pi Ri v er t o w ca n tr a n s p o rt as m uc h c o m merce 

as si x fr ei g h t t r a i n s of 1 0 0 c a r s ea c h.

B ot h p a p er s r e fl e c t a g e n er al la c k of i n f o r m ati o n o n t h e o p e ra ti n g c h ara c ­

t e ri s ti c s of t h e U. S. b ar ge a n d t o w i n g I n d u str y. It i s i n t e r e sti n g t o n ote 

t h at t h e M is s o uri P a cif ic R ailr o a d i s cit e d as t h e s o urc e of d ata o n ba r g e 

o p e ra ti o n s a n d c o sts . T he st at e m e n t i s ma de t h at t h e d ata were " u n a v ail a ble 

fr o m t h e ba r g e I n d u str y." I t i s ha r d t o b eli e v e t h at y o ur r e s e a rc h e rs were 

u n a b le t o o bta i n d ata o n w at er c a r ri e r o p e ra ti o n s fr o m s u c h tr a d e a s s o cia ti o n s 

as t h e A m eric a n Water w a ys O p era t o rs, Wat er T ra n s p ort A ss o cia ti o n, La ke C a r ri e r s' 

A s s o cia ti o n, t h e A m eric a n I n stit u t e of Me rc h a nt S hi p pi n g, or o u r o r g a niz ati o n.

We st a n d re a d y t o a s s i s t y o u a n d ot h e r re s e a rc h e rs at a n y ti m e.

Asi d e fr o m f a ct u al m is c o n ce pti o n s, I a m dis t u r b e d b y t h e g e n e ra l t h r u st 

of b ot h p a p ers. T he y a p p ea r t o p it m o de a g ai n st m o de: r a il v s. b ar g e. I t is 

str o n gl y i m plie d t h at r ailr o a d s c o ul d — a n d s h o ul d — m o ve a ll of t h e c o m merce 

n o w tr a n s p o rt e d b y ba r g e a n d p o s si bl y t h at ha ul e d b y tr u c k, t o o. T his is a n 

u n r e a li sti c p oi n t of vi e w. All m o des are g oi n g t o be str ai n e d t o c a rr y t h e 

N ati o n's f u t u r e f r ei g h t l o a d. As I p oi nte d o u t i n my pa pe r d eli v e re d at t h e 

Pe n n Sta te s y m p osi u m, c u rr e nt e n er g y s h o rt a g e s de ma n d a hi g h d e g re e of c o o p er ati o n a n d c o o r d i n ati o n bet w ee n t h e m o d es. N ati o n al p oli c y s h o ul d, I b eli e v e, 

ma xi miz e t h e I n h e re nt a d v a n ta g es of a ll f or ms of tr a n s p o rta ti o n. I n s h o rt, it 

i s n ot a q u e sti o n of w he t h er we nee d ra il w a y s or w at er w a y s; A m eric a ne e d s b ot h. 

A nd we nee d hi g h w a y s a n d air w a y s, t o o.

Si nc e b ot h y o u a n d Mr. Se bal d i n vit e d my c o m me nts, I w o ul d li k e t o e x p a n d 

o n w hat 1 b eli e v e a re s o me r at h e r s e ri o u s s h ortc o m i n gs i n y o ur p a p ers. B ef or e 

t h e ir p u bli c ati o n i n fi n a l f or m, I as k t h at y o u c o n si d e r t h e f o ll o wi n g p oi n ts 

a n d ma ke t h o se r e vis i o n s or c o rr e cti o n s i n b ot h r e p o rts — a n d c o n cl u si o n s — 

w hic h y o u f e el a re w ar ra nte d b y t h e f a cts :

* D ir e ct e n er g y de ma n d s. — T he C e n te r f o r A d v a nce d C o m p utati o n ha s 

a p p are ntl y n o t re s e arc h e d t h e f u el c o ns u m pti o n e ffic ie n c y of w at er tr a n s p o rta ti o n
1 0 9 1

Dr. Br uce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e T h re e

I n ste a d, p re vi o u sl y p u bli s h e d d ata w ere u tili z e d . (" D ir e ct f u el e n er g y I s ta b u ­

la te d d i r e c tl y fr o m u s er d ata ," Pa g e 1 2, Ha n n o n. " D r. H i r s t's re vis e d r e s u lt s 

wer e c h os e n h ere si n c e * * * (t h e y ] a r e t h e m o st re c e nt a n d a p pl y t o t h e y e ar of 

t h i s st u d y," Pa ge s 9- 1 0, S e b al d.) I n a ta ble ( P a ge 1 1, S e b al d ), t h e f u el c o ns u m pti o n e ffic ie n c y of ba r g e tr a n s p o rta ti o n i s gi ve n a s 5 7 0 BT U p er t o n - m il e, 

a s re p o rt e d b y Dr. Eri c H ir st, f o r m er l y of Oa k Ri d ge N ati o n al L a b ora t o r y. T his 

i s a r e vis i o n of e a rli e r e sti m ate s b y Dr. H ir st. I n " E ne r g y I n te n si v e n e s s of 

P as se n ge r a n d F re i g ht T ra n s p ort M o des, 1 9 5 0 - 1 9 7 0, " Dr. H ir st re p o rt e d t h at 

w at er tr a n s p o rta ti o n c o ns u m e d 4 5 0 B T U p er t o n - m il e i n 1 9 6 5, a n d 6 8 0 B T U p er 

t o n - m il e i n 1 9 7 0 — a l o s s of e n er g y e ffic ie n c y t o t ali n g 5 1 p e rc e nt w it hi n a 

fi v e - y e a r p eri o d!

T he N ati o n al Wat er wa ys C o nfe re n ce, I n c., a s Mr. Se bal d i s a w ar e, i m m e diatel y 

c all e d att e n ti o n t o t h i s o b vi o u s dis cre p a n c y. T he U. S. De part m e nt of T ra n s p o rt a ­

ti o n, w hic h ha d p u bli s h e d Dr. H i r s t's fi n di n g s i n a b o o klet o n e n er g y s t a ti s ti c s , 

s o o n b a c k -t ra c k e d. I n Marc h 1 9 7 4, T ra n s p o rt ati o n Se c y. Cl a u de S. B ri n e g ar 

re le a s e d ne w c o m p u tati o n s of m o d al e n er g y e ffic ie n c y. He sta te d t h at o n e g all o n of f u el w o ul d m o ve 3 0 0 t o n - m il e s of fr ei g h t b y w ate r, 1 8 0 t o n - m il e s of 

f r ei g h t b y r a il a n d 5 0 t o n - m il e s of f r ei g h t b y tr u c k. Hi s fi g u r e s I n dic ate 

t h at w ate r tr a n s p o rta ti o n r e q uir e s 4 6 2 BT U p er t o n - m il e w hil e r a il tr a n s p o rta ­

ti o n ne e d s 7 7 0 B T U pe r t o n - m il e. S o, t h e q u e sti o n ca n be p o se d, Wh y wer e D. O . T .' s 

fi n di n g s n ot us e d i n y o ur i n v e sti g ati o n w he n t h e y a r e, i n f a c t, t h e m ost re c e nt 

a n d pr o b a bl y t h e m ost r eli a b le ?

Usi n g Dr. H ir st's re vis e d d ata f o r d ir e ct e n er g y de m a n ds — w hic h i n t e r e sti n g l y 

ha v e n ot be e n p u bli s h e d, t o my k n o wle d ge, b u t we re si m pl y re la y e d i n a tele p h o n e 

c o n v e rs ati o n ( P a ge 1 2, Se bal d ) — a n att e m pt i s ma de t o c al c u la te i n d ir e ct e n er g y 

c o st s. T h es e e n er g y c o sts are t h e n a d d e d t o t h e b a si c f u el e ffic ie n c y fi g u r e s. 

H o w e ver, i n t h e ca se of ba r g e tr a n s p o rta ti o n, e n er g y i n te n si v e n e s s ( 5 7 0 BT U pe r 

t o n - m il e)' w a s f i r s t i n cre a se d b y 3 8 p erc e nt (t o 7 8 5 B T U p er t o n - m il e) t o all o w 

f o r b ar ge c ir c u it y. It i s t h e n c alc ula te d t h at t h e d ir e c t a n d I n dir e ct e n er g y 

re q uir e m e nts of ba r g e tr a n s p o rta ti o n t o t a l eit h e r 1 6 6 3 BT U pe r t o n - m il e ( Pa ge 

1 4, S e b al d ), 1 6 3 3 BT U p er t o n- m il e ( Pa ge 5, S e b al d ), or 1 6 0 0 B T U pe r t o n - m il e 

( P a ge 2 2, Ha n n o n). Si m il a rl y , t h e e n er g y I n te n si v e n e s s o f r a il tr a n s p o rta ti o n 

i s a n al y ze d a s t o d ir e ct a n d i n d ir e ct c o sts . On t h e a v er a g e, r ail r o a d f r ei g h t 

m o ve me nts a re f o u n d t o re q uir e 1 6 0 0 B T U p er t o n- m il e ( Pa ge 2 2, Ha n n o n). B ut 

o n w ate r- c o m p etiti v e r o ute s, t h e f u el e ffic ie n c y of r a il tr a n s p o rta ti o n is 

re p o rt e d t o be 1 3 3 0 BT U p er t o n - m il e ( Pa ge 5, S e b al d ).

I f D . O . T .' s d ata ha d bee n us e d i n ma ki n g t h e se c al c u la ti o n s. I n ste a d of 

Dr. H i r s t's re vis e d e sti m ate s, y o ur st u d y w o ul d ha v e re v e al e d t h at b ar g e s c o ns u me 1 3 2 8 B T U p er t o n - m il e w hil e r ailr o a d s re q uir e 1 6 0 2 B T U pe r t o n - m il e i n b ot h 

d ir e c t a n d i n d ir e ct e n er g y. T his c al c ula ti o n is ba se d o n t h e f o u r - ste p pr o c e ss 

e x plai n e d o n Pa ge s 1 3 - 1 4, S e b al d, a n d I n cl u d e s a 3 8 p erc e n t " p e n alt y " f o r ba r g e 

c ir c u it y . I f d ata de vel o pe d b y t h e N ati o n al Water w a ys C o n fe re nc e, I n c., ha d 

be e n us e d i n y o ur f o r m ul a, d ir e ct a n d i n d ir e ct e n er g y c o ns u m e d b y w at er tr a n s ­

p o rta ti o n w o ul d t o t a l o nl y 1 1 9 2 B T U p er t o n - m il e. We b eli e v e t h e C o n fe re n c e's 

s t a ti s ti c s a r e t h e m o st v ali d of a n y y et p u bli s h e d, si n c e t h e y a re ba se d o n
1 0 9 2

r. Br uce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e F o ur

o p e ra ti n g d ata pr o vi d e d b y a n e x tr e m el y la r g e sa m pli n g o f w at er c a r ri e r s — 

la r g e a n d s m all fi r m s, b ot h c o ntr a ct a n d c o m mo n c a r ri e r s, w hic h m o ve d 3 2. 4 

p e rc e nt of a ll I n la n d w at er b or ne c o m merce i n t h e s u r v e y y e ar. Y et, f o r s o me 

re a s o n, t h e C e nte r f o r A d v a nce d C o m p utati o n re je cte d t h e s e i n d u str y d ata as 

" i n s u f fi c i e n t. "

>9

R ail c ir c u it y . — B ot h y o ur pa pe r a n d Mr. S e b al d's ma ke m uc h of t h e f a ct 

t h at b ar g e s m u st f oll o w m ea n d eri n g ri v e r c h a n n els. I n m ost i n sta n c e s, t h e re 

i s o nl y o ne wa y b ar g es ca n tr a v el bet w ee n o ri g i n a n d d e sti n ati o n. B ut r ail r o a d s 

ca n g o ma n y d if f e r e n t r o ute s. Bet w ee n m aj or c iti e s, t h e re a re o ft e n h alf a 

d o ze n r a il r o ute s — a n d s o meti m es d o ze ns or e ve n s c o re s of r o ute s. Si nc e r a il 

m o v e me nts fr e q u e ntl y d o n o t m o ve via t h e s h o rte st r a il r o ute , a n all o w a n ce m ust 

be ma de f o r r a il c i r c u it y , t o o. T he I n t e r st a t e C o m merce C o m missi o n re c e ntl y 

e xa mi ne d 1 1, 1 9 5 f r ei g ht w a y bills f o r r o ute mlll n g a n d de te r m i n e d t h at a v er a g e 

r ail r o a d fr ei g h t i n 1 9 6 4 m o ve d a t a c ir c u it y of 1 5 p erc e n t — t h at i s , o v er 

tr a c k s w hic h we re 1 5 p erc e n t m ore d i st a n t bet w ee n o ri g i n a n d d e sti n ati o n t h a n 

t h e m o st d ir e c t r ail r o a d tr a c k m il e a g e.

I n f air n e s s t o t h e r ailr o a d s, i t s h o ul d be p oi nte d o u t t h at s hi p p e r s — 

a n d n ot c a r ri e r s — e x e rc is e c o ntr ol o v er w hi c h r ail r o a d c o m pa n y li n e s a n d r o ute s 

t r a f f i c o r d i n a ril y m o ves. L o gic all y, r a il c o m p a nies p u bli s h r a t e s t o a tt r a c t 

t r a f f i c o v er t h e m o st p r o fit a b le r o ute s, w hic h a re n ot n e c e s s a ril y t h e s h o rte st 

r o ute s. As a n e x a m ple of t h e d i v e r sit y of r a il c o n n e cti o n s, a r e p r e s e nta ti v e of 

t h e F e d era l R ailr o a d A d m i n istr ati o n, Mr. Ja m es W. B o o n e, r e c e ntl y sta t e d t h at 

s o me 1, 5 0 0 r ail r o a d r o uti n g s a re p o s si b le o n a Ne w Y or k- St. L o uis c ar g o m o veme nt! T he dif f e r e n c e i n mile a g e ma y n o t be a s i m p ort a n t, he s ai d , a s t h e 

r e l a ti v e a m o u nts of ec o n o mic re s o u rc e s u tili z e d . T he d ir e c t -li n e r o ute ma y, 

i n e f f e c t, be t h e m o st c o stl y.

I t i s u n cle ar fr o m y o ur pa pe r w h et h er t h i s f a ct o r i s ta k e n i n t o a cc o u nt. 

T h er e i s s o me dis c u s si o n of r a il c ir c u it y , b ut t h i s is d efi n e d a s "t h e a ct u al 

tr a v ele d dis ta n c e di v i d e d b y t h e str a i g h t li n e dis ta n c e bet w ee n o ri g i n a n d 

d e sti n ati o n " ( Pa ge 1 2, Ha n n o n). O ne of t h e ta ble s r e f e r s t o c ir c u it y a s "a v er a g e 

d e via ti o n fr o m g re at c i r c l e dis ta n c e " ( P a ge 2 1, Ha n n o n). A nd r a il mil e a g es a n d 

r o ute s a r e ta ke n d ir e c tl y fr o m Ra n d M c N all y's " Ha n d y R ailr o a d A tl a s of t h e 

U nite d Sta te s " ( P a g es 3 a n d 9, S e b al d ). I n vie w of r a il c ir c u it y , t h e f u el c o ns u m pti o n e ff ic ie n c y s h o ul d be. d e cr ea se d — a s was d o n e i n t h e c as e of ba r g e 

c ir c u it y — b y 1 5 p e rc e nt. Usi n g y o ur d ata f o r r a il e n er g y i n te n si v e n e s s ( 6 3 9 

B T U p er t o n - m il e e x cl u di n g ya r d s w it c hi n g ), a d di n g 1 5 p e rc e nt f o r c ir c u it y , 

a n d t h e n i n cl u di n g y o ur i n d ir e ct e n er g y c o sts , t h i s w o ul d p u t t h e t o t a l e n er g y 

de ma n d o f w ate r- c o m p etiti v e r ail r o a d fr ei g h t tr a n s p o rta ti o n at 1 5 2 9 B T U pe r t o n - 

mil e — r at h e r t h a n 1 3 3 0 BT U p er t o n- m il e as re p o rt e d.

U nit tr a i n c o m p etiti o n. — I n b ot h y o ur st u d y a n d Mr. S e b al d's, i t is 

ar g u e d t h at ba r g e li n e s a re c o m p etiti v e wit h u nit tr a i n s r at h e r t h a n o r d i n a r y 

r a il s e r vic e. " T he se s p e cia l t r a i n s c o m pet e d ir e ctl y wit h t h e la r g e r ba r g e t o w s
1 0 9 3

Dr . Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Fi ve

o v er t h e la r g e h a uli n g dis ta n c e s " ( P a ge 2, Ha n n o n). " R ail s o urc es ar g u e 

pla u si b l y t h a t, b y a n d la r g e, ba r g e m o ve me nts a re la r g e c o m m o dit y, l o n g, p oi n t 

t o p oi n t h a uls a n d t h e re f o re s h o ul d be c o m par e d t o u nit tr a i n m o ve me nt El (e ne r g y 

i n te n si v e n e s s ], n o t a v er a g e r a il li n e El" ( Pa ge 7, S e b al d ). It f o ll o w s t h at 

t h e e n er g y I n t e n sit y of u nit t r a i n s i s m uc h l o w er t h a n li n e - h a ul m o ve m e nt s. 

E xa m pl es of r a il e n er g y I n te n si v e n e s s i n t h e ra n g e of 2 2 6 t o 3 5 9 BT U p er t o n - 

mil e a re q u ot e d ( P a g e 7, S e b al d ).

I n d ete r m i n i n g c o m pa rati ve o v e r all e f fic ie n c y, it i s i n a p p r o p ri ate t o 

c o m p are u nit t r a i n a n d ba r g e m o ve m e nt s, si n c e t h e y a r e r a r el y c o m p etiti v e. T h er e 

a re n u m er o us u nit tr a i n s o p e ra ti n g i n t h e U nite d S ta te s, a n d t h e y t y p i c all y c a rr y 

s u c h b ul k c o m m o diti es a s c o al, o re , g ra i n a n d ot h e r far m c r o p s. S uc h c o m m o diti es 

als o m o ve i n la r g e v ol u me b y b ar g e, b u t I n d u str y s o urc es e sti m ate t h at l e s s t h a n 

1 0 p e rc e nt o f t h e c o n m erc e m o vi n g b y w at er i s c o m p etiti v e wit h u nit t r a i n m o vem e nts. V ir t u all y a ll ir o n a n d st e e l, s c ra p, n e w s p ri nt, s a lt, al u m i n a, ce m e nt, 

pe tr ol e u m p r o d u cts, li q ui d c h e m ic als, m ost g ra i n a n d a ll c o al e x ce pt m ultim illi o n t o n - p e r- y e a r c o ntr a cts m o ve b y ba r g e i n c o m p etiti o n wit h c o n v e nti o n al 

li n e - h a ul r a il s e r vic e. T h er e i s s u b sta n ti al r ail- b a r g e c o m p etiti o n i n t h e f or m 

of l o w r a t e s, b u t m o st r ail r o a d w ate r- c o m p etiti v e r a t e s a re ba se d o n m ult i p le - 

c a r a n d tr ai n l o a d m o v e me nts r at h e r t h a n u nit t r a i n h a uls.

Y o u ma y be I nte r e ste d t o le a r n t h at t h e u nit t r a i n m o ve me nt of M o nta na a n d 

W y o mi n g c o al t o St. L o ui s a n d tr a n ss hi p m e n t b y ri v e r b ar g e t o O hi o a n d M is sis si p pi 

V alle y u til i t i e s i s n o w i n p r o s p e ct. La n d f o r t h e tr a n s f e r te r m i n al i s alr e a d y 

bei n g a c q uir e d. By 1 9 7 6, si x u nit tr a i n s a da y w il l a r ri v e at St. L o u is, ea c h 

c arr yi n g 1 0 0 c a r s b e ari n g 1 0, 0 0 0 t o n s of c o al. Fr o m St. L o uis, t h e c o al w il l 

m o ve t o ri v e r si d e e l e c t ri c u tilit y pla nts i n 1 5 - b ar ge t o w s, wit h ea c h t o w h a uli n g 

a t o t a l of 2 4, 0 0 0 t o n s. S o, a si n gle b ar g e t o w — a n d a r e l a ti v e l y s m all o n e, 

t o o, si n c e t o w s of 4 0 t o 5 0 b ar g es c a rr yi n g a s m uc h a s 6 0, 0 0 0 t o n s a re n ot 

u nc o m m on o n t h e L o wer M is sis si p pi — w il l be m o vi n g al m o st a s m uc h c o al a s t w o 

a n d o n e - h alf u n it tr a i n s. O n it s wa y t o S t. L o uis, ea c h tr a i n w il l r e q uir e a s 

ma n y a s si x l o c o m oti v es (a t o t a l of 1 6, 8 0 0 h ors e p o w er ). B ut ea c h ba r g e t o w w il l 

be p us he d b y a t o w b o at of o nl y 5, 6 0 0 h o rs e p o w er. O b vi o us l y, t h e u nit tr a i n 

m o ve me nt w il l re q uir e m uc h m ore e n er g y t o d o t h e sa me J o b.

On t h e L o wer M is sis si p pi Ri v er ( C air o, I lli n o i s, t o Ne w O rl e a n s), t h e re 

a re n o l o c k s or da ms a n d la r g e t o w s a c h ie v e e n via ble e n er g y e ffic ie n c y. F or 

I n sta n c e, a m aj or ba r g e a n d t o w i n g c o m pa n y r e c e ntl y re p o rt e d t h at it s e n tir e 

ri v e r fl e e t d u ri n g 1 9 7 2 a v er a g e d 1, 1 5 5 ca r g o t o n - m il e s p er g all o n i n d o w n- b o u n d 

t o w s a n d 3 3 8 c ar g o t o n - m il e s pe r g all o n i n u p - b o u n d t o w s — a n a v er a g e of 6 3 9 

ca r g o t o n - m il e s p er g all o n. T his a m o u nts t o 2 1 7 B T U p er t o n - m il e f o r o ne la r g e 

t o w i n g c o m p a n y's e n tir e L o wer M is sis si p pi o p e r ati o n s, a s c o m p are d wit h t h e 

r a ilr o a d s' re p o rt e d 2 2 6 t o 3 5 9 BT U p er t o n - m il e f o r i t s u n it t r a i n m o ve me nt s 

o n l y.

* I n d ir e ct e n er g y c o st s. — A d mitte dl y, t h e re a re e n er g y c o sts of tr a n s ­

p o rt ati o n ot h e r t h a n t h e f u el us e d b y c a r ri e r s. B ot h p a p er s atte m pt t o e sti m ate
1 0 9 4

Dr. Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Si x

t h e se I n dir e ct e n er g y de m a n d s. " T he I n dir e ct e n er g y I n cl u d e s s u c h t h i n g s as 

e l e c t ri c it y c o ns u m e d t o ma ke l o c o m oti v es, tr a c k a n d f r ei g h t c a r s a s w ell as 

t h e p ai n t f o r t h e o f fic e s of t h e r e s p e cti v e c o m pa ni es " ( P a ge 6, S e b al d ). " T o 

c al c ula te t h e e n er g y c o sts of o ne u nit of a n it e m , we a s k : W hat a re t h e d ir e c t 

I n p uts of g o o d s a n d s e r vic e s re q uir e d t o pr o d uc e t h at ite m ? A nd s o we c o nti n u e 

u n til we re a c h s u c h a m ultit u d e of s m all i n p uts t h at le a vi n g o ff t h e ne xt 

r o u n d d o es n ot si g n ifi c a n tl y c h a n g e t h e t o t a l re q uir e m e nts " ( P a ge 1 0, Ha n n o n). 

T he C e n te r f o r A d va nce d C o m p u tati o n's " E ne r g y E m pl o y me nt P oli c y M o d el" is 

d e sc ri b e d i n d e t a il. " T o a p pl y t h e m o d el t o a s p e cif i c tr a n s p o rta ti o n m o de, 

o ne m ust f i r s t d et er mi n e t h e fr a cti o n al bre a k d o w n of t h e d o ll a r c o st of a t o n - 

mil e of f r ei g h t. T h es e c ate g o rie s mi g ht be p urc h as es of f u el, m ac hi ne r y, 

b uil di n g s, e q ui p me nt a n d ri g ht- o f- w a y m ai nte n a n ce, i n s u ra n c e, fi n a n ci n g, ri g h t - 

of- wa y c o n str u cti o n, e t c. " ( Pa ge 1 2, Ha n n o n).

It a p p ea rs t h at t h e t o t a l ( dir e ct a n d i n d ir e ct) e n er g y pe r t o n- m il e of 

r ail r o a d s e r vic e was c alc ula te d i n r eli a n c e o n a c o m p ute r m o del ( P a g es 1 3 a n d 

1 4, S e b al d ). H o w e ver, a s e p a ra te c al c ula ti o n was n ot ma de as t o t h e t o t a l 

( d ir e ct a n d I n d ir e ct) e n er g y de ma n ds of w at er tr a n s p o rta ti o n ! A ft er a n e x pl a n ati o n of t h e f o r m ul a f o r d ete r m i n i n g t o t a l e n er g y e ffic ie n c y of r ail r o a d tr a n s ­

p o rta ti o n, t h i s state m e nt i s ma de: " I f t h e sa me v al u e s f o r B, C, D a re ass u me d 

v ali d f o r t h e ba r g e c a s e, 1 9 7 1 t o t a l ba r g e fr ei g h t El i s gi v e n b y 7 8 5 B T U/t o nmil e x 1. 0 8 4 x 1. 1 2 9 x 1. 7 0 - 1 6 6 3 B T U/t o n - mile " ( Pa ge 1 4, S e b al d ). T a ble 2 of 

y o ur pa pe r st at e s t h at t h e I n dir e ct e n er g y c o st of ba r g e tr a n s p o rta ti o n is 

"ass u me d e q ual t o t h at of r ail r o a d s " ( Pa ge 2 2, Ha n n o n). S uc h a pr es u m pti o n is 

fla g r a n tl y m isle a di n g.

It i s al m ost i n c r e di b le t h at t h e se pa pe rs ha ve c h alle n g e d t h e e ff ic ie n c y 

of w at er tr a n s p o rta ti o n o n t h e b a sis of ( 1) e x tr e m el y q u e sti o n a ble f u el c o n ­

s u m pti o n d ata a n d ( 2 ) as s u m pti o ns of i n d ir e ct e n er g y c o sts a p pli c a ble o n l y t o 

r ail r o a d fr ei g h t m o ve m e nt s. T h er e a re , of c o u rs e, n u m er o us dif f e r e n c e s i n t h e 

i n dir e ct e n er g y c o sts of t h e t w o m o de s. S e v eral of t h e p ri n ci p al d i sti n cti o n s 

a re li st e d bel o w. I n a ll o f t h e se c ate g o rie s, w at er tr a n s p o rta ti o n i s f a r t h e 

m ore e f fi c i e n t e n er g y - u s er.

D e fe rr al of r a il m ai nt e n a n ce. — A d e q uate ri g ht- o f- w a y m ai nt e n a n ce is 

e s s e n ti al f o r c o nti n u e d, s a f e, r e li a b l e f r ei g ht c a r ri e r s e r vic e. N e v ert h ele s s, 

i t is r e a dil y a p p ar e n t t h at t h e r ail r o a d s ha v e be e n p utt i n g o ff ne e d e d mai nte na n ce a n d r e p air s f o r t h e l a st 1 5 t o 2 0 y e a rs . T his f a ct i s e v e n dis c u ss e d 

i n y o ur p a p er, w hic h i n cl u d e s a c h a rt s h o wi n g t h at r a il r o a d be d m ai nt e n a n ce, 

e x pr es se d i n c o n st a nt 1 9 5 8 d o ll a r s, de cr ea se d fr o m $ 2. 9 0 f o r ea c h 1, 0 0 0 t o n - 

m il e s of fr ei g h t m o ve d i n 1 9 5 1 t o a n e x p e n dit ure of o n l y $ 1. 5 0 f o r ea c h 1, 0 0 0 

t o n - m il e s of fr ei g h t m o ve d i n 1 9 7 1. I n 1 9 5 2 - 5 3, Cla ss I li n e - h a ul r ail r o a d s 

s p e n t a b o ut $ 1. 3 b illi o n f o r m ai nt e n a n ce of 2 2 5, 2 4 2 m il e s o f ri g ht- o f- w a y. I n 

1 9 7 2 - 7 3, t h e sa me r ail r o a d s s p e n t $ 1. 7 b illi o n f o r m ai nt e n a n ce of 2 0 7, 0 8 7 m il e s 

of ri g ht- o f- w a y ( Ec o n o mics a n d Fi na nc e D e p art m e nt, A ss o cia ti o n of A m eric a n R ail ­

r o a d s ). I n ot h e r w or ds, m ai nt e n a n ce c o sts a m o u nte d t o $ 5, 8 3 7 pe r mil e of ri g h t - 

of- w a y i n t h e e a rl y 1 9 5 0s as c o m pare d wit h $ 8, 5 2 7 p er m il e of ri g ht- o f- w a y i n 

t h e e a rl y 1 9 7 0 s.
1 0 9 5

Dr. Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Se v e n

D u ri n g t h is 2 0- ye ar p e ri o d, r a il c o n str u cti o n c o sts ha ve al m ost d o u ble d 

( w h at 7 8 c e nts w o ul d b u y i n 1 9 5 3 c o st $ 1. 4 9 l a st y e a r). A nd wa g es ha ve t ri p l e d , 

ac c o r d i n g t o t h e U. S. De part m e nt of La b o r. Si n ce r a il r o a d be d m ai nt e n a n ce a n d 

r e p air w or k i s la b o r-i nte n si v e, i t i s re a s o n a ble t o c o ncl u de t h at r ail r o a d 

m ai nt e n a n ce c o sts ha v e g o ne u p, c o n s e r v ati v el y , t w o a n d o n e - h alf ti m e s. I n 

ot h e r w or ds, r ail r o a d s s h o ul d n o w be s p e n di n g a p pr o xi m atel y $ 1 4, 4 9 3 t o m ai n tai n 

ea c h mil e of ri g ht- o f- w a y — or a t o t a l of s o me w h at m ore t h a n $ 3 b illi o n a n n u all y 

T he f a ct t h at t h e r ail r o a d s a re u n d er -s p e n di n g f o r m ai nt e n a n ce b y a p pr o xi m at el y 

$ 1. 3 b illi o n a n n u all y s h o ul d c e rt ai n l y be ta k e n i n t o ac c o u nt i n y o ur r e p o rt.

I f r a il s e r vic e i s t o be m ai n tai n e d, a s t h e n ati o n al i n t e r e st de ma n ds i t m u st 

be, hea v y f ut u r e e x p e n dit u re s w il l ha ve t o be ma de f o r r ail r o a d r e p air a n d 

r e h a b ilit a ti o n .

T h er e a re la r g e e n er g y c o sts d ir e c tl y a ttri b u t a b l e t o d e fe rr e d m ai nt e n a n ce 

of r a il r o a d b e d s. S er v ic e ha s d ete ri o r ate d r a pi d l y . N u mer o us s e cti o n s of tr a c k 

a re u n de r "sl o w o r d e r s," d ela yi n g A mtra k p a ss e n g er tr a i n s a n d m illi o n s of pa ss e n g e rs. A n d t h e r ail r o a d a c ci d e nt r at e " m ore t h a n q u a d r u pl e d bet w ee n 1 9 6 0 a n d 

1 9 7 0" ( Pa ge 7, Ha n n o n). I n 1 9 7 3, r ail r o a d a c ci d e nts k ill e d 1, 9 1 3 p ers o n s a n d 

i n j u re d 1 7, 7 1 8. T o r e st o r e r ail r o a d r o a d be ds a n d re pla c e w or n- o ut r a il s a n d 

c r o s sti e s w il l re q uir e m as si v e i n f u si o n s of m o ne y, e n er g y a n d ot h e r r e s o u rc e s.

C o m pa rati v e re s o u rc e s c o st s. — P r o d u cti o n of r ail r o a d e q ui p me nt re q uir e s 

s u b st a n ti all y m ore re s o u rc e s t h a n b a r g eli n e e q ui p m e nt, i n r e l a ti o n t o c ar g o 

c a p a cit y. B ut w hat a re t h e c o m pa rati ve e n er g y c o sts of mi ni n g t h e ir o n o re , 

m a n uf ac t u ri n g t h e st e e l a n d f a b ric ati n g r a il a n d ba r g e e q ui p m e nt? L ittl e pre ­

cis e i n f o r m ati o n i s a v ail a ble o n t h e e n er g y, ra w m ate ria ls , ma n p o wer a n d ot h e r 

re s o u rc e s c o n s u m e d. I a m dis a p p oi n te d, t h e r e f o r e, t h at y o ur re p o rt s h e d s n o 

ne w li g h t o n t h i s s u bje ct.

I n it s " 1 9 7 2 N ati o n al T ra n s p o rt ati o n R e p o rt," t h e U. S. De pa rt m e nt of 

T r a n s p o rt ati o n p r o je cte d t h e p ri v ate i n v est m e n t w hic h w o ul d be re q uir e d i n 1 9 7 0- 

7 9 t o e x p a n d r ail r o a d a n d b a r g eli n e c a p a cit y. T o i n c re a s e r a il c a p a cit y b y 2 2 7 

b illi o n t o n - m il e s, a c a p ita l i n ve st m e nt of $ 8. 9 b illi o n was f o r e c a st. F o r w at er 

tr a n s p o rta ti o n, p ri v ate e x p e n dit ure of $ 1. 6 b illi o n was dee me d s u f fi c i e n t t o 

e nla r g e c a p a cit y b y 2 1 5 b illi o n t o n - m il e s. T h es e p r o je cti o n s w o ul d i n dic ate 

t h at c a p it al c o sts t o c a r ri e r s pe r u n it of e x pa n de d tr a n s p o rta ti o n c a p a cit y 

a re fi v e ti m es g r e ate r f o r r ail r o a d s t h a n f o r b a r g eli n e s.

A b ar g e — w het h er o pe n h o p p er, c o ve re d dr y c ar g o, ta n k b a r g e, de c k b ar g e, 

c a r fl o at or sc o w — i s e s s e n ti all y a b o x-t y p e c o nta i n e r m ea s u ri n g t y p i c all y 

3 5 f e et wi d e, 1 9 5 f e et l o n g a n d 1 2 f e et hi g h f o r t o w i n g i n ni n e -f o ot c h a n n els 

o n t h e i n la n d ri v e r s. Ba r g es pla ce d at t h e fr o nt of t h e t o w u s u all y ha ve a n 

ea s y ra k e a t t h e b o w t o mi ni miz e w at er r e si st a n c e. G e n era ll y, b ar g e e q ui p me nt 

i s si m pl e i n d e si g n a n d f a i rl y el e m e n ta r y t o c o n str u ct. B y c o n tr a st, r ail r o a d 

c a r s a re c o m plic at e d b y i n t ri c a t e u n d e rc a rri a g e s, bra ki n g me c ha nis ms a n d ot h e r 

ela b o ra te p a rt s. T o f a b ric ate a n o pe n h o p p er b ar g e w hic h ca n c a rr y 1, 6 0 0 t o n s 

of c o al r e q uir e s 3 0 0 t o n s of st e e l (J e ff b o at e sti m ate ). T o m a n uf ac t u re a n o pe n
Dr . Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Ei g ht

h o p p er r a il c ar a ble t o c a rr y 1 0 0 t o n s of c o al ta k e s 2 7- 1/ 2 t o n s of ste el 

( A ss o cia ti o n of A m eric a n R ail r o a d s e sti m ate ). I n ot h e r w or ds, 4 7 p erc e n t m ore 

st e e l i s re q uir e d t o ma ke r a il c a r s, i n te r m s of h a uli n g c a p a cit y, t h a n b ar g e s.

T he e l e c t ri c it y a n d ot h e r e n er g y use d i n m a n ufa ct uri n g r a il c a r w he el s, 

a xle s, s p ri n g s a n d ot h e r p a rts of t h e u n d e rc arria g e t o e x a cti n g s p e cif i c ati o n s 

m u st be g r e at. T he p r o c e ss als o re q uir e s ma n y ma n h o urs o f s k ill e d la b o r a n d 

p r e cis i o n ma c hi ne t o ols a s w ell a s la r g e a m o u nts of s t e e l. T h es e f a ct o r s s u b ­

st a n ti a ll y i n c re a s e t h e c o st of r a il e q ui p m e nt. I n 1 9 7 0, t h e I n t e r st a t e Co mmerce C o m missi o n re p o rt e d t h at t h e p u rc ha se p ri c e of ne w r ail r o a d c a r s a v er a g e d 

$ 1 5, 6 2 5 ea c h. I n t h e sa me y e a r, ne w ba r g es c o st o n t h e a v er a g e of $ 9 0, 0 0 0 ea c h 

( A m eric a n Wat er w a ys O p era t o rs, I n c.). Ass u mi n g t h at t h e a v er a g e ba r g e tr a n s p o rt 

1 5 ti m es a s m uc h ca r g o a s t h e a v er a g e r a il c a r, t h i s w o ul d mea n r ail r o a d c a r s 

c o st 2. 6 ti m es m ore t h a n b ar g e s p er u nit of ca r g o c a p a cit y.

T he f a ct t h at ba r g e tr a n s p o rta ti o n re q uir e s m uc h l e s s re s o u rc e s i n t h e 

m a n ufa ct uri n g pr o c e ss was c o m pletel y I g n or e d i n y o ur st u d y a n d t h at of Mr. 

Se b al d. Pr es u m a bl y, t h e a c q u i sit i o n of ne w c a r s was ta k e n i n t o ac c o u n t a s a n 

i n d ir e ct e n er g y c o st of r ail r o a d tr a n s p o rta ti o n. H o w e ver, i n a n a p p ar e n t e f f o rt 

t o h ol d d o w n e q ui p me nt e x p e n dit u re s, A m eric a n r ail r o a d s i n re c e nt y e ar s ha v e 

d e fe rr e d t h e p u rc h as e o f r o lli n g st o c k u r g e ntl y ne e d e d t o h a ul t h e ir c u st o m er s' 

f r ei g h t. S hi p p er s ha v e be e n cl a m ori n g f o r m ore a n d m ore c o ve re d h o p p er s, 

g o n d ol as, fl a t c a r s, r e f ri g e r at e d c a r s a n d j u st pla i n b o x c ar s. I n Marc h 1 9 7 4, 

t h e I n t e r st a t e C o m merce C o m mis si o n re p ort e d t h at fr ei g h t c ar s h o rt a g e s o n Cla ss 

I li n e - h a ul r ail r o a d s we re a v er a g i n g 4 2, 0 0 0 a da y! T he f a ct t h at r ail r o a d 

c o m p a nies ha ve n o t be e n b u yi n g ne w e q ui p me nt n e c e ss ar y t o pr o vi d e a d e q ua te r a il 

s e r vic e i s a n ot h er f a ct o r w hic h s h o ul d be ta ke n i n t o c o n si d e ra ti o n i n a n y 

o bje cti v e st u d y. A c c o r d i n gl y, a n a dj u st m e n t s h o ul d be ma de f o r " d e fl ate d " 

o r d e fe rr e d r a il e q ui p me nt e x p e n dit u re s.

D if fe re n c e s i n ma n p o wer re q uir e m e nts. — It i s g e n era l i n f o r m ati o n t h at 

b a r g eli n e s ma ke e f fi c i e n t us e of ma n p o wer. T o ws a re ma n ne d b y cr e w s of fr o m 

a b o ut 1 0 t o 1 4, w h o alt e r n a t e si x - h o u r d u t y s h i ft s f o r 3 0 d a y s. T he y a re t h e n 

o ff d ut y f o r 3 0 d a y s. R ailr o a d fr ei g h t tr a i n cr e w s u s u all y n u m ber a b o ut si x 

me n, a n d f o u r t o si x cre w c h a n ge s d uri n g ea c h 2 4 - h o u r p eri o d a re n o t u nc o m m on. 

Ver y c o n s e r v ati v el y , t h i s w o ul d mea n t h at r a il fr ei g h t r e q uir e s 2- 1 / 2 ti m es 

m ore e n -r o ute la b o r. ( S u c h a c al c ula ti o n i s ba se d o n t h e f o ll o wi n g as s u m pti o n s: 

O n t h e r ail r o a d — f o ur cre w c h a n ge s pe r 2 4 h o ur s i n v ol v i n g 2 4 me n m o vi n g a 1 0 0 - 

c a r tr a i n h a uli n g 1 0, 0 0 0 t o n s of c ar g o; o n t h e water wa y — a t o t a l of 2 4, 

i n cl u di n g t h e o ff - d ut y as w ell a s o n - b oa r d cr e w, h a n dli n g a m o de st 1 5 - b ar ge 

t o w tr a n s p o rt i n g 2 4, 0 0 0 t o n s of c a r g o.)

N e v ert h ele s s, be ca us e tr a i n s tr a v el f a st e r t h a n b a r g e s, o ne mi g ht e x pe ct 

t h e t o n - m il e s pe r e m pl o ye e t o be hi g h er f o r r ail r o a d s t h a n b a r g eli n e s. B ut n ot 

s o. A cc or di n g t o t h e T r a n s p o rt ati o n A ss o cia ti o n of A me ric a, tr a n s p o rta ti o n o utp u t pe r e m pl o y ee ( a ct u all y o p e ra ti n g tr a n s p o rta ti o n e q ui p me nt a n d te r m i n als ) 

a m o u nt e d t o 1. 6 m illi o n t o n - m il e s f o r w at er c a r ri e r s, i n cl u di n g t h e Gre at La ke s,
1 0 9 7

Dc. Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Ni n e

a n d 1. 2 m illi o n t o n - m il e s f o r r a il c a r ri e r s. A n d, I n d ee d, i n y o ur pa pe r " t o t a l 

e m pl o y me nt de ma n d" i s gi v e n a s 1. 4 f o r r a il f r ei g h t a n d 0. 6 f o r ba r g e ( Pa ge 

2 2, Ha n n o n). S u re l y , t h e e n er g y de ma n ds of s o ma n y a d dit i o n al e m pl o ye es s h o ul d 

be c o m p ute d I n a n y c o m p ar ati v e a n al y sis of r a il a n d w at er tr a n s p o rta ti o n.

R ail r o a d s' p u bli c c o st s. — T he state m e nt i s ma de t h at "a m aj or s h are of 

t h e tr a n s p o rt c o st i s i n t h e c o n str u cti o n, o p e r ati o n, a n d m ai nt e n a n ce of t h e 

ri g ht- o f- w a y " ( P a g e 1, Ha n n o n). T he r ailr o a d s — u nli k e t h e w at er w a y s, hi g h ­

wa ys a n d ai r w a y s — o w n t h e ir ri g hts - o f- w a y a n d ea c h r ail r o a d c o m pa n y ha s 

e x cl u si v e us e of i t s tr a c k s. B ut t h e re a re s t i l l " p u bli c c o sts ” i n v ol v e d.

F or s e v e ra l d e ca d e s, F e d era l f u n d s ha v e be e n s p e n t t o eli m i n ate h az ar d s 

a t ra il r o a d - h i g h w a y i n t e r s e cti o n s. D u ri n g t h e 3 7- y ea r p eri o d fr o m 1 9 3 4 t o 1 9 7 0, 

i n cl u si v e, a t o t a l of $ 2. 6 b illi o n i n F e d era l m o nie s was e x pe n de d t o i m pr o ve a 

t o t a l of 2 5, 0 4 8 c r o s si n g s. D u ri n g t h e 1 2- y ea r p eri o d t h r o u g h 1 9 7 0, F e d eral 

e x p e n dit u re s at ra il r o a d - h i g h w a y i n te r s e cti o n s ha ve a v er a g e d $ 1 5 0 m illi o n 

a n n u all y ( D e p art m e nt of T r a n s p o rt ati o n Re p o rt t o C o n gr es s, N o ve m ber 1, 1 9 7 1 ).

R ail r o a d s t h e m sel v es b e n e fit fr o m ma n y F e d era l w at er re s o u rc e s pr o g ra m s. 

P r o visi o n of le v e e s, u p st re a m r e s e r v oir s a n d ot h e r fl o o d c o ntr ol w or ks e n a b le 

r ail r o a d s t o r u n mai n li n e s al o n g si d e m aj or ri v e r s. O ne r ail r o a d c o m pa n y ha s 

e ve n b o a st e d of i t s " w ate r-l e v el" li n e. R ail r o a d s a r e, of c o u rs e, m aj or be ne ­

fi c i a ri e s of i m pr o v e m e nts a t de e p - w at er h ar b o rs t o f a c ilit a t e e x p o rt s a n d 

i m p or ts i n w hic h t h e r ailr o a d s p a rti c i p a t e i m p o rta ntl y. A cc or d i n gl y, m o st 

r ail r o a d s str o n gl y s u p p ort n a vi g ati o n p r o je cts a t t h e m aj or p o rts .

It s h o ul d be p oi n te d o ut t h at ra il w a y s a n d w at er w a y s — a s H er be rt H o o ver 

o nc e re m ar k e d — a re m or e c o m ple m e ntar y t h a n c o m p etiti v e. Ba r g es fr e q u e ntl y 

ha ul t h e ra w m ate ria ls a n d f u els t o maj or m a n ufa ct u ri n g a n d pr o c e ss i n g c e nte r s 

w hile r ailr o a d s m o ve t h e hi g h - v al u e, fi nis h e d g o o d s fr o m t h e re t o m ar ke t. A 

re c e nt st u d y of fi v e ri v e r v all e y r ail r o a d s p a r all eli n g m aj or water w a y s s h o we d 

t h at t h e ir t o n - m il e s of re ve n u e fr ei g h t i n c re a se d 5 3. 2 p e rc e nt d uri n g t h e p eri o d 

1 9 6 0 - 1 9 7 1. D uri n g t h e sa me p e ri o d, a ll ot h e r r a ilr o a d s re p o rt e d a n i n c re a s e of 

o n l y 2 5. 2 p e rc e nt. A n d t h e ri v e r v all e y r a ilr o a d s' re v e n u es i n cre a se d 8 2. 7 

p erc e nt w hil e t h at of a ll ot h e r r ail r o a d s we nt u p b y o nl y 4 5. 7 p e rc e nt ( N ati o n al 

Water w a ys C o nf er e n ce, I n c., 1 9 7 4 ). I n vie w of s u c h s t a ti s ti c s , w h o ca n clai m 

t h at w at er tr a n s p o rta ti o n i s d e str u cti v e t o r a il t r a f fi c ?

It f o ll o w s, t h e n, t h at r ail r o a d s a n d b a r g eli n e s o u g ht t o be p a rt n e r s, 

al o n g wit h tr u c ki n g c o m pa ni es, a i r f r ei g ht a n d p i p eli n e s, i n t h e U. S. tr a n s p o rta 

tl o n s y st e m. Eac h of t h e m o des ha s c e rta i n i n h e re nt a d v a n ta g es w hic h s h o ul d 

be u tili z e d t o t h e f u ll e s t e xte nt p o s si b le . T he re a re c e rt ai n tr a n s p o rta ti o n 

ta s k s ea c h m o de ca n d o b e tt e r t h a n t h e ot h e r m o des. T he f ut u r e e m p h asis, t h e r e ­

f o r e, s h o ul d be o n b e tt e r m o d al c o o r d i n ati o n — tr u e i nte r m o da li s m — t o g et 

A m eric a' s f r ei g h t m o ve d. T he e n er g y s h o rt a g e ma k es t h i s o bje cti v e a ll t h e m ore 

v it a l.
1 0 9 8

Dr. Br u ce M. Ha n n o n 

J u ne 1 7, 1 9 7 4 

Pa g e Te n

T o me et ri si n g e n er g y de m a n d s, e n er g y m ate ri als m u st m o ve i n g r e ate r 

v ol u me a n d o v er l o n g er dis ta n c e s t h a n e v er b e f o re . T h us, i n t h e c as e o f c o al 

al o n e, tr a n s p o rta ti o n re q uir e m e nts are e x pe ct e d t o I n cre a se s e v e r al- f ol d d u ri n g 

t h e n e x t de ca de. L o n g - h a ul m o ve me nt s of c o al fr o m t h e O hi o Ri v er B asi n t o 

t h e G ulf C oa st a n d U p p er M is sis si p pi B asi n a re c u rre ntl y gr o wi n g at t h e r ate 

of 1 8 p e rc e nt a n n u all y. T his i s c e rt ai n l y n ot a ti m e t o s ti r u p ne w r a il v s. 

ba r g e dis s e n si o n a n d t o tr y t o t u r n o ne m o de a g ai n st t h e ot h e r. O ur t o t a l 

tr a n s p o rta ti o n re s o u rc e s w il l be re q uir e d i n t h e y e ar s a h ea d.

Ot h er t h a n m is st at e m e nts a s t o t h e d ir e ct a n d i n d ir e ct e n er g y de m a n ds of 

w at er tr a n s p o rta ti o n, y o ur pa pe r c o nta i n s s e v e ra l ot h e r e r r o r s w hic h s h o ul d be 

c all e d t o y o ur a tt e n ti o n. Bar ge tr a n s p o rta ti o n d o es n o t c a rr y 1 6. 2 p e rc e nt of 

a ll U . S .- o rie nte d i nla n d f r ei g h t ( Pa ge 2, Ha n n o n). T his fi g u r e u n d o u b te dl y 

I n cl u d e s G re at La kes t r a f f i c , w hic h i s m o ve d i n la r g e s hi p s w it h a d r a ft of 

a b o ut 2 6- 1/ 2 f e e t. A n ot he r m ista k e: " B ar ge f r ei g ht i s m o ve d o n la r g e c a p a cit y, 

l o n g dis ta n c e d e dic ate d t o w s wit h t h e p o we r u nit w aiti n g f o r l o a di n g a n d u n l o a d i n g " 

( Pa ge 2, S e b al d ). T he f a cts a re t h a t, i n n e arl y a ll I n sta n c e s, t o w b o at s d eli v e r 

l o a d e d b ar g e s, pic k u p e m ptie s a n d d e p a rt wit h o u t d ela y. A nd t h e st ate m e nt i s 

ma de t h at s o me 1 8, 0 0 0 Ar my C o r ps of E n g i n ee rs e m pl o ye es " a re b a si c all y I n v ol v e d 

i n str u c t u r a l fl o o d c o ntr ol, w hic h i s n o w ne gate d b y t h e pa ss a g e of t h e N ati o n al 

Fl o o d D is a ste r P r ote cti o n Act of 1 9 7 3 " ( Pa ge 1 6, Ha n n o n). N ot s o. T he r e q uir e ­

me nt f o r fl o o d i n s u ra n ce p r ote cti o n i n fl o o d pla i n s d o es n o t mea n t h at a ll 

r e s e r v o ir s a n d le v e e s are o utla w e d i n t h e f u t u r e or t h at e x is ti n g w o r ks w ill 

be a b a n d o ne d.

I n t h eir p re s e nt f or m, y o ur pa pe r a n d t h at of Mr. Se bal d a re s o ri d dle d 

wit h f a ct u al m ista k e s, err o n e o u s as s u m pti o ns a n d m isle a d i n g c o n cl u si o n s t h at I 

fe a r n eit h e r ca n be ta ke n a s s e ri o u s aca de mic e x e r cis e s. C e rt ai n p a rts of y o ur 

re s e a rc h wer e a p p are ntl y ba se d o n a c o m p ute r st u d y of r a ilr o a d s' d ir e c t a n d 

i n d ir e ct e n er g y de m a n d s. It i s re g r eta ble t h at a v ali d st u d y of t h e t o t a l e n er g y 

c o sts of ba r g e tr a n s p o rta ti o n was n o t ma de. F ur t h er m ore, i t i s d e c e pti v e t o 

I n dic ate t h at a c o m pa rati ve a n al y sis of t h e e n er g y e ffic ie n c y of r a il a n d ba r g e 

tr a n s p o rta ti o n was ma de b y c o m p ute r w he n, i n f a c t, t h e i n d ir e ct e n er g y de ma n ds 

of w at er c a r ri e r s we re m er el y "a ss u me d" t o e q ual t h o se o f r a il c a r ri e r s.

T o ma s q u era de s u c h a h alf - st u d y u n de r t h e g uis e of a s o p his ti c ate d c o m p ute r 

a n al y sis , a n d t h u s att e m pt t o be st o w f u ll - b l o w n c r e d i b ilit y , is n o t i n ke e pi n g 

w it h t h e v e n er a b le re p uta ti o n of t h e U ni v e rs it y of Illi n o i s. S ure l y y o u w o ul d 

n ot wis h t o p a rti ci p at e i n c o m p ute r c hic a n er y. If y o u a re I nte r e ste d i n c o m pl eti n g 

t h e re s e a rc h e f f o rt y o u a n d Mr. Se bal d ha v e st a rt e d, we w ill be gla d t o a s si st 

y o u a n d y o ur a s s o cia te s a t t h e C e n te r f o r A d va nce d C o m p utati o n i n e v er y wa y 

p o s si b le .

Si n c e re l y y o urs,

^ • r r y N. C o o k 

E x ec uti v e/ Vic e P re si d e nt

H N C/rrl

c c: Mr. A nt h o n y V. Se bal d
1 0 9 9

ti o n al W at er va ys C o n fe re n c e, I n c. 

1 1 3 0 1 7t h S t r e e t, N ort h w est 

W as hi n g t o n, D. C. 2 0 0 3 6

E XP L A N A T OR Y N OT E:

O n J u n e 4, 1 9 7 4, t h e S i e r r a Cl u b a n d t w o ot h e r n ati o n al e n vir o n m e n tal 

o r g a niz ati o n s r ele a s e d a c o m p u te r st u d y o n t h e c o m p ar ati v e e n er g y e ffi ci e n c y 

o f b a r g eli n e s a n d r a il r o a d s. T he st u d y, e n titl e d " E ne r g y I n t e n sit y o f Bar ge 

a n d R ail F re i g ht H a uli n g," a s s e rt e d t h a t r a i l tr a n s p o rt ati o n was fr o m 1 0 p e rc e nt t o 2 3 p e r c e nt l e s s e n er g y i n t e n si v e t h a n w ate r t r a n s p o rt a ti o n. On t h e 

b a si s o f t h i s a s s e rti o n , t h e e n vir o n m e nta l o r g a niz ati o n s ur g e d C o n gr es s t o 

h a lt ne w water wa y p r o j e c t s, c o n si d e r a b a n d o ni n g s o me e x i sti n g w at er w a y s, a n d 

i n s tit u t e " u s e r c h ar g e s " t o re c o u p water w a y c o st s.

T he N ati o n al Water wa ys C o n fe re n c e, I n c ., ha s a n al y z e d t h e st u d y r e f e rr e d 

t o a b o v e as w ell as a c o m p a ni o n st u d y e n titl e d " A Rail w a y T r u st F u n d. " B ot h 

st u d i e s we re pr o d uc e d b y t h e E ne r g y R es ea rc h Gr o u p, C e nte r f o r A d v a nc e d Co mp u t a ti o n, U ni v e r sit y o f I lli n o i s , U r b a n a, I lli n o i s . We b eli e v e t h e y c o nta i n 

a la r g e n u m b er o f er r o n e o u s sta te m e nts a n d f a ll a c i o u s a s s e rti o n s a n d ma ke 

m is le a di n g c o n cl u si o n s. T h es e d i st o rti o n s a re p oi n te d o u t, i n d e t a il, i n a 

l e t t e r fr o m Mr. H ar r y N. C o o k, t h e C o nfe re n ce ’ s E x ec uti v e Vi ce P r e si d e n t, t o 

Dr. Br uc e M. Ha n n o n, D ir e ct o r o f t h e E n er g y R es ea rc h Gr o u p, d ate d J u n e 1 7, 

1 9 7 4.

Att a c h e d f o r y o ur i n f o r m ati o n a r e:

1. T he p r e s s r ele a s e is s u e d J u ne 4, 1 9 7 4, b y t h e S i e r r a Cl u b, A m eri ca n 

R i v ers C o n s er v ati o n C o u n cil a n d E n v ir o n m e n tal P oli c y C e nte r.

2. T he 1 4 - p a g e st u d y, " E ne r g y I n t e n sit y o f Ba r ge a n d R ail F re i g ht H a uli n g," 

b y Mr. A nt h o n y V. S e b al d o f t h e C e nte r f o r A d va n ce d C o m p u tati o n.

3. A n d Dr. Ha n n o n ’ s r e l a t e d 2 6 - p a g e st u d y, " A Rail w a y T r u st F u n d, " w hic h 

was p r e s e nte d a t t h e I n t e r n a ti o n a l S y m p osi u m o n E ff e cts o f t h e E n er g y S h o rt a g e 

o n T ra n s p o rta ti o n B al a n ce h el d a t P e n n s y l v a nia S ta te U ni v e r sit y o n Ma y 2 8- 3 1, 

1 9 7 4.

5 4 - 2 3 9 0 - 7 5 - 7 0
1 1 0 0

F o r h ele a s e J u ne 4 , 1 9 7 4 A. M.

C O N S E R V A TI O NI S T S R E L E A S E NE W T R A NS P O R T A TI O N E N E R G Y S T U DI E S A N D C A L L F O R D R A S TI C

R E F O R M I N T O E N A TI O N' S P O LI C Y O F P R O M O TI N G B A K E C A N A L P R O J E C T S

T h e A m eric a n R i v e r s C o n se r v ati o n C o u n cil, t h e E n vi r o n m e n t al P o lic y C e n te r, a n d t h e

S ie r r a Cl u b I n c o n j u n c ti o n wit h l o c a l c o n s e r v a ti o n o r g a n is a ti o n s a c r o s s t h e c o u n tr y

a r e t o d a y r e l e a si n g t h e r e s u l t s o f a ne w s t u d y o n t h e e n e r g y c o n s u m pti o n o f b ar ge s

v e r s u s t r a i n s. T h e st u d y e n ti tl e d " E ne r g y I n t e n sit y o f B a r g e a n d fl a il F r ei g h t

H a uli n g ", d o ne b y A n t h o n y V. S e b al d a t t h e U n i v e r sit y o f I lli n o i s ' C e n te r f o r A d v a nc e d

C o m p ut a ti o n , r e v e a ls t h a t r a ilr o a d s a r e m ore e n e r g y e f f i c i e n t t h a n b a r g e s. T his

s t u d y t a k e s o n s p e c i a l si g n ifi c a n c e I n vi e w o f t h e e n er g y c r i s i s a n d I n vie w o f t h e

f a v o ritis m w hi c h C o n g r e s si o n al A p p r o p ri a ti o n s a n d P u bli c W or ks C o m mitt ee s h a v e s h o w n

t o b ar ge c a n a ls . T he n a ti o n I s c o n fr o n te d w it h r a s sl v e s u b si d i e s t o a l e s s e n er g y

e f f i c i e n t t r a n s p o r t a ti o n m o d e. T he s u b si d i e s c o n si s t I n t h e F e d e r al G o v er n m e n t' s

c o v o rl n g t h e e n ti r e o p e r a ti o n a n d m ai n te n a n ce c o s t f o r t h e w h o le I n l a n d w at er w a y

s y st e m a s w ell S 3 t h e c o m ple te c o n s t r u c ti o n c o s t o f ne w b ar ge c a n al p r o j e c t s. T r u c k s

p a y f u e l t a x e s a n d r ailr o a d s h a v e t o m ai n t a i n t h e i r o w n tr a c k a n d p a y p r o p e rt y t a x e s,

b ut b a r g es g o t a f r e e ri d e wit h n o u s e r c h a r g e e w h ats o e v e r.

T he se c o n d s t u d y b ei n g r ele a s e d t o d a y p r o vi d e s a pri m e I ll u s t r a ti o n o f a n o t h e r w a y

I n w hi c h b a r g o c a n al p r o j e c t a w a st e e n e r g y. T he st u d y e n ti tl e d " E ne r g y a n d L a b or

R e q ui re m e n ts f o r t h e C o n str u cti o n a n d A n n u al O p er ati o n o f t h e T e n ne a a ee - T o m bl g b ee

W a ter w a y P r o j e c t ", d o ne b y D a vi d Si m ps o n a t t h e U n i v e r sit y o f I lli n o i s ' C e n te r f o r

A d v a nc e d C o m p u t a ti o n, e x a m i n ee t h e e n e r g y r e q uir e m e n ts o f t h i s h a l f - b llll o n d o ll a r

c a n al p r o j e c t al o n g t h e A l a b a m a - M is sis si p pi b or d er w h er e c o n s t r u c ti o n I s J u st n o w

g e t ti n g u n de r w a y, T h o st u d y s h o w s t h a t t h e T e n n es ee e- T o m bi g b ee W a ter w a y w o ul d

r e q u ir e 1 6 0 m il li o n g a ll o n s o f g a s o li n e t o b u il d , y e t I t w o ul d p r o d u ce n o h y d r o ele c t ric

p o w er I n r e t u r n. T he p r o j e c t w ill be a g l u t t o n f o r f u e l b ec a u se I t I n v ol v e s c u tti n g

a c a n al t h r o u g h a m o u n t ai n ri d g e s e p a r a ti n g t h e T e n n es se e a n d T o m bl g b ee R i v e r B a si n s.

2 5 8 m il li o n c u bic y a r d s o f d i r t ( m o re t h a n w as m o ve d f o r t h o d i v i d e c u t o n t h e

P a n a m a C a n al) w ill h a ve t o be e x c a v a te d a n d t r a n s p o r te d els e w h e r e. W he n c o m ple te d,

t h e W a ter w a y w ill o nl y s e r v e t o f a v o r t h e le 6 8 e n er g y e f f i c i e n t m o de o f t r a v e l a n d

c o n ti n u o t o h u r t t h e m o st e n er g y e f f i c i e n t m o de, t h e r e b y a g g r a v a ti n g t h e e n er g y c r l 3 l s .

T h e s t u d i e s b ei n g r ele a s e d t o d a y c o n s tit u t e a c h all e n g e t o t h e p o w e rf ul A p p r o p ri a ti o n s

a n d P u bli c W or ks C o m mitt ee s t o t a k e a n o t h e r l o o k a t t h e i r p a r ti a li t y t o w ar d b a r g e

c a n als a n d t h e n a vi g a ti o n l o b b y a n d t o l o o k I n ste a d t o t h e n a ti o n ' s e n e r g y e n er g y

s i t u a ti o n . C o n s e r v a ti o n is t s u r g e t h e S e n a te P u bli c W or ks C o m mitte e, w hi c h t o d a y

b e gi n s o v e r si g h t h e a ri n g s o n t h o C o r p s o f E n gi n ee r s pr o g r a m, t o pr o d uc e s o m e c u b e t a n ti v o

r e c oi u .e n d a tl o n s f o r m aj or re f o r m I n o u r c o u n t r y's I n l a n d n a vi g a ti o n p o li c y . T h o

f o ll o w i n g s i g n i fi c a n t s t e p s m u st be t a k o n b y t h e C o n gr es s 1

1) a h a l t t o t h e f u n di n g o f ne w b ar ge c a n al p r o je c t a

2 ) a re e x a m i n ati o n o f t h e n ee d f o r c o n ti n u e d o p e r a ti o n o f a n u m ber o f alr e a d y

e x i s ti n g n a r gl n al b a r g e c a n als

3 ) t h e eli m i n a ti o n o f s u b si d i e s w hi c h f a v o r b a r g e c a n als o v e r r a il r o a d s a n d

t h e I m p o siti o n o f u s e r c h a r g e s o n c a n als t o r e c o v e r a l l o p e r a ti o n a n d

m ai nte n a n ce c o s t s.

P r o p o se d b ar ge c a n al p r o j e c t s w hic h a r e o f p a r tic u l a r c o n ce r n t o c o n s e r v a ti o n i s t s

b e c a u se o f t h e i r d e s t r u c ti v e n e s s a re t h e C r o s s- F l o ri d a B a r ge C a n al, t h e T e n n c s se eT o m bl g b ce w atc r u a yi t h e T r i n i t y R i v e r B ar ge C a n al ( d e si g n e d t o r a k e D all a s ( T x) a

s e a p o r t b u t h alt e d b y a n a d v e r s e r e fe r e n d u m ), e x t e n si o n s o f t h o M e C lell a n - K er r

N a vi g a ti o n S y st e m ( d e si g n e d t o m a ke W ic hit a ( K a n s) a s e a p o r t ), d e e p e ni n g o f t h e

U p per M i s sis si p p i R i v e r, t h e C hl o R i v e r, a n d t h e I lli n o i s t o 1 2 - f o o t c h a n n els ,
1 1 0 1

2.

t h e Re d Ri v er W ater wa y ( Te x, O kl a, Ar k, L a )| a n d t he U p per C ol u mbi a Ri v er

N a vi g ati o n ( W as hi n gt o n S t a te ), t o vl r o n oe nt all st a h a ve o p p ose d t h es e pr oj ec ts

bec a u se t he y w o uld de st r o y fi s h a n d w il dli fe h a bit at, wi pe o ut e n d a n ger o d s p e cie s,

ell ni n a te n at ur al are as h a vi n g i m p ort a nt s ci e n tifi c si g nific a n c e, a n d l a p a lr

h is t o ric , e d uc ati o n a l, a n d ar c h e ol o gi c al re s o ur ce s. T hese c a n al pr oj ec ts are n o w

g oi n g t o c o ne u n der s h ar p at t a c k as w as ter s of e n er g y.

I n t he st u d y c o m p ari n g t h e e ne r g y e ffi cie n cie s of r ail a n d b ar ge t r a f fi c, Se b al d

f o u n d t h at t h e e ne r g y I n te n si t y of r a il c o ve n a nt w as bet wee n 6 3 9 s o d 7 1 1 B ri ti s h

t he rr. rl u n ite ( B t u' o) p or t o n all e de pe n di n g u p on w het h er t he f u el use d f o r y ar d

s witc hi n g Is or Is n ’t I n cl u de d, w here as t h e e ne r g y i n te n si t y of b ar ge n o ve ne nt w as

7 8 5 Bt u’s per t o n B il e, T he be st a v ail a ble d at a t h u s i n dic ate s t h at r a il i s fr o a

1 0 t o 23 % le s s e n or g y l n t o n sl v e t h a n b ar ge. Se b al d als o n o te s t he nee d f o r muc h

■ ore p re ci se d at a c oll e cti o n pr o gra ms o n b ar ge f u el cc n a u a pti o n a n d f o r d at a o n t he

e ner g y I n te n si t y of u n it tr ai n c o ve te nt s.

Pre vi o us st u die s c o m p ari n g t he e ner g y e ff ic ie n c y of r ail r o a d s a n d b ar ges h a ve n ot

bee n ac c u r ate bec a use t h e y h a ve ne gl ec te d t h e r el a ti v e cir c uit y of t he t w o ne d es.

Si nc e b ar g es h a ve t o f oll o w te a n d eri n g rl v or a, t h e y tr a v el m ore mile s t o re ac h a

gi ve n d es ti n ati o n t h a n r ail r o a d s d o, Se b al d f o u n d I n his st u d y t h at o n t he a ver a ge

b ar ge t o n mile s wer o 1. 3 8 ti r. es as gr e a t as t h e e q ui v ale nt c o m pe ti n g r a il t o n mile s,

a n d t h is m akes a tre me n d o us dif fe re n ce I n t h e a m ou nt of e ne r g y c o ns u me d. A n ot her

s h ortc o mi n g of pre vi o us st u die s w as t h eir use of n ati o n al a ver a ge r ail d at a r at h er

t h a n t h e s p o clflc fi g u re s fr o m r ail li n e s t h at a ct u all y c o m pete wit h b ar ge t r a ffi c.

F or e x a m ple, pre vi o u s st u di o s hs v o I ncl u de d t h e e ne r g y c o n s u a pti o n of r ail r o a d s

h a uli n ’ fr ei g ht ac r o ss t h e R ock y f o u n t ai n s, w hic h t a k es a l o t of e n er g y, as p art of

t h e rele v a nt d a t a. T hese r ail m o ve ments ac r o cs t h o R oc kie s c o m pete wit h tr u c k s, n ot

b a r ge s, A fi n al d ef ec t I n e a rli e r st u die s w as t h eir f a il u r e t o c o nsi d er t h o f a ct

t h at r ail r o a d s a n d b ar ges c o u pete o ver t he s hi p m e nt of b ul k c o m n o dltle s li k e gr ai n,

c o al, pet r ole u m, a n d l u m ber w hic h are ofte n m oved b y u n it tr ai n s ( w here a ll t h o c ar s

c ar r y i d e n ti c al c o nte nts ) w hic h are m ore e ne r g y e ffic ie n t t h a n a ver a ge tr ai n m oveme nts.

T he n a ti o n h as s o mo 2 5, 0 0 0 mll os of c o m mer ci all y n a vi g a ble w ater w a ys w hic h r x>ve

a b o ut 10 % of t he c o u ntr y’ s I n te rc it y fr ei g h t. T he Fe d er al G o vern me nt as of J u n e,

1 9 7 1, h a d s pe nt $ 3. 2 b illi o n o n t h o I nl a n d w ater w a y s yst e m wit h a n n u al e x pe n dit u re s

f o r o p er a ti o n a n d m ai nte n a n ce r u n ni n g o ver $ 8 0 n ll ll o n, C o n gress h as a u t h o ris e d

t h o c o ns tr uc ti o n of a n a d diti o n al 2, 3 5 1 miles of w ater w a y w h ose c o st l a n o w cs tl n ate d

at $ 5 bil li o n. S ore a d diti o n al 2 5 0 0 miles of w ater w a y w h ose c o st w o ul d e xce e d $ 5

bil li o n are bei n g s u p p orte d f o r a u t h oris ati o n b y v a ri o us re gi o n al gr o u ps. I n li g h t

of w h at m o n o w k no w a b o ut t he e ner g y a n d e n vir o n me nt al I m p acts of b ar ge c a n al s, It

i s cl e a r t h at n o a d diti o n al pr oj ec ts s h o ul d be a ut h o riz e d a n d t h at ma ny of t he

a ut h o riz e d b ut u nc o nstr u ctc d b ar ge c a n als s h o ul d be dc a u t h o rlz e d.

F or more i nf or m ati o n c o nt ac t Bre nt Bl ac k wel der at t he E n vir o n me nt al P olic y Ce nte r,

3 2 b C S t. S E, W as hi n gt o n, D. C. I h o nei 5 9 7- 6 5 0 0
1 1 0 2

C A C T e c h n i c a l Me m o ra n d u m N o. 2 0

E N E R G Y I N T E N SI T Y O F B A R G E A N D R AI L F R EI G H T H A U LI N G

B y

A nt h o n y V. S e b al d

C e n te r f o r A d v a n c e d C o m p uta ti o n 

U n i v e r sit y o f I l l i n o i s a t U r b a n a- C h a m p ai g n 

U r b a n a, I l l i n o i s 6l 8 0 1

M a y, 1 9 T U
1 1 03

I ntr o d u cti o n

I n a n att e m pt t o q u a nti f y m ore o f t h e t o t a l s y st e m c o sts a s s o cia te d 

wit h tr a n s p o rt ati o n a lt e r n a ti v e s, st u d i e s are c o nti n ui n g i n t h e a r e a o f 

e n er g y c o st p e r t o n mile f o r a lt e r n a t e f r ei g h t a n d tr a n s p o rt a ti o n i n o des.

I n li g h t o f t h e p re s e nt e n er g y d i f f i c u lti e s , e n er g y e f fi cie n c y i s b e gi n ni n g 

t o ha ve a si g n ifi c a n t ec o n o mic i m pa ct o n t h e v a ri o u s m o des. E n er g y c o st 

p e r t o n mil e i s als o a n i m p o rt a nt p ara m ete r i n d ete r m i n i n g t h e t o t a l e n vir o n m e n tal i m pa ct o f c o m peti n g tr a n s p o rt a ti o n m o d es. T hi s p a p er p r e s e nts 

r e s u lt s o f a n e n er g y c o m pa ris o n p e r t o n mil e o f c o m peti n g r a il f r ei g h t v s. 

i n la n d b ar g e f r e i g h t, i n cl u di n g t h e e f f e c t s o f c ir c u it y a n d t h e us e o f pr o ba ble c o m peti n g r a il li n e s i n ste a d o f n ati o n al a v er a g e r a il d ata .

T he Pr o ble m

T he b a sic u n d e rl yi n g d i f fi c u lt y i s t h a t o f c o n str u cti n g a n e q uit a ble 

fra me o f r e fe r e n c e f o r c o m p ari n g t h e t w o m o des. R ail r o a d s h a ul s o me f r ei g h t

al o n g t h e b ar g e r o ute s a n d s o me o v er t h e c o nti n e nta l di v i d e. T he y h a ul i n 

u n it t r a i n s d e dic ate d t o a si n g l e c o m m o dit y ( e. g . , c o al) o v er a fi x e d l o n g 

dis ta n c e t r i p ( e . g ., L o u is v il l e, K y. t o Ne w O rl e a n s) a n d t h e y als o h a ul i n 

mi x e d t r a i n s w hic h st o p a n d s w it c h fr e q u e ntl y. F i n all y, t h e r ailr o a d s als o 

c o m p ete wit h t h e tr u c ki n g i n d u str y a n d h a ul f r ei g h t (i n tr u c k t r a il e r s ) o n 

" p i g g y- b ac k " s y st e m s as w ell as i n t h e m or e c o n v e n ti o n al r a il c a r s. T he 

w ate r tr a n s p o rt a ti o n i n d u str y a p p ea rs t o be e v e n m ore h ete r o g e n e o u s t h a n

r a il. D o m estic w ate r tr a n s p o rt a ti o n i n cl u d e s:

1) I n la n d water wa ys ( M is sis si p pi ri v e r s y st e m a n d t ri b u t a ri e s )

2) G ulf a n d A tla n ti c i n tr a c o a st a l w at er wa ys

3) La ke wi se o r G re at La kes tr a n s p o rta ti o n

U) C oa st wis e o r de e p s e a tr a n s p o rt a ti o n ( Ne w O rl ea n s t o Ne w Y o r k,
1 1 0 4

ert o Ric o t o Ne w O rl e a n s, e t c .)

E ve n w it hi n t h e i n la n d a n d i n tr a c o a st a l water w a y s s y st e m t h e r e i s a la r g e 

n u m ber (l 8 0 0 o n t h e M is sis si p pi- G ulf s y s t e m ) o f b ar g e fi r m s ra n gi n g fr o m 

fa m il y o w ne d t u g s t o la r g e m ulti- c o m m o dit y f r ei g h t h a u le r s. * Bar ge f r ei g h t 

i s m o ve d o n la r g e c a p a cit y, l o n g dis ta n c e d e dic ate d t o ws wit h t h e p o w er 

u n it w aiti n g f o r l o a di n g a n d u nl o a di n g. I t i s als o m o ve d o n m ulti- c o m m o dit y 

t o ws i n w hic h t h e p o wer u n it c o nti n u all y m o ves w hil e s h ore b as e d t u g s c o nn e ct a n d dis c o n n ec t b ar g e s a n d b ri n g s u p pli e s. T h us g e n e r al, wi d el y a p pli ­

c a ble q u e sti o n s ca n be a n s w er e d l e s s p r e cis el y t h a n s p e c ifi c o n es.

Pre vi o u s r e s u lt s i n t h i s a r e a ( 2 ), ( 3 ), ( b ) ha ve be e n li m ite d t o r a ti o s 

o f t o t a l d o m estic f u el us e t o t o t a l d o m estic t o n m il e s. T he p re s e nt st u d y 

gi v e s m ore p r e cis e r e s u lt s i n t h a t i t ta k e s i n t o ac c o u n t t w o ot h e r i m p o rt a n t v a ria b le s. T he e n er g y i n t e n sit y p e r t o n mil e c al c u l ati o n ta k e s i n t o 

ac c o u nt t h e a ct u al e n er g y e f fi c i e n c i e s o f t h e m o st p r o b a ble r a il li n e c o mp e tit o r o f t h e b ar g e s o n ea c h p a rti c u l a r h a u l a n d als o i n cl u d e s t h e r e l a ti v e 

c i r c u iti e s o f t h e t w o m o des. C ir c uit y ( d e fi n e d as t h e m o d al dif f e r e n c e i n 

dis ta n c e tr a v e ll e d f o r a n e q ui v ale nt h a ul) i s i m p ort a nt si n c e a t o n m o ve d 

fr o m Ne w O rl ea n s t o C hica g o w ill n ot tr a v e l t h e sa me n u m ber o f mil es i n

b ot h m o d es.

Met h o d ol o g y

D ue t o re s o u rc e li m it a ti o n s, t h i s st u d y was li m ite d t o f r ei g h t t r a f f i c 

o n t h e G ul f I n tr a c o a sta l Wat er wa y a n d t h e M is sis si p pi Ri v er wit h a ll it s 

t ri b u t a ri e s. Usi n g t h e 1 9 7 1 a ct u al b ar ge t r a f f i c d ata ( 5 ) ( 6 ). a l i s t o f 

2 9 0 a p pr o x i m at e o ri g i n - d e sti n ati o n ( 0 D) p air s was c o m pile d. D at a o n t o n n a g e

I n 1 9 7 1, 6. 6 % o f t h e d o m esti c t o n mile t r a f f i c was r e g ula te d b y t h e I C C ( 5 )
1 1 0 5

r ri e d f o r ea c h O D p a i r i n ea c h o f fi v e b ul k c o n n o ditie s ( a g ri c u lt u r a l 

o ut p ut, l u m be r, p etr ole u m , c o al a n d c h e m ic als ) was als o c o m pile d. T h es e 

O D t r a f f i c p air s are a p pr o x i m at e si n c e t h e d ata i n r e fe r e n c e ( 5 ) i s o nl y 

dis a g g re g ate d t o t h e r e gi o n al l e v e l. P o rts w it hi n t h e r e gi o n al l e v el we re 

c h os e n ba se d o n r e l a ti v e p e r c e nts o f c o rr e s p o n di n g t r a f f i c h a n dle d at t h e 

m aj or p o rts li s t e d i n r e fe r e n c e ( 6 ).

R ail a n d b ar g e r o uti n g s we re t h e n g e n era te d f o r ea c h O D p a ir. I n t h e 

b ar g e c a s e, t h e s h o rt e st r o uti n g was u se d. I n t h e r a il c a s e, a b ala n c e o f

mi ni m u m dis ta n c e a n d mi ni m u m n u m ber o f r a il c a r ri e r s was us e d i n ea c h

r o uti n g. Mile a g es i n ea c h ca se we re o bta i n e d fr o m ( 7 ) a n d ( 8 ). O D t o n 

m il e s ( T m) ar e gi ve n b y t h e p r o d u ct o f t h e t o n n a g e a n d r e s p e cti v e r o uti n g

le n gt h f o r ea c h O D p a ir. R ail e n eri gr f o r ea c h O D t r i p was c alc ula te d b y 

( 9 )

s u n ni n g t h e pr o d u ct o f e n er g y i n t e n sit y ( Bt u/ T m) a n d mil ea g e f o r ea c h 

r a il r o a d's p o rti o n o f t h e t r i p . Bar ge e n er ©r f o r ea c h t r i p was ass u m e d c o n 

st a n t as e x pla i n e d i n t h e n e xt s e cti o n.

T he c o m p uter pr o g ra m e v al u ate d t h e o v e r all i n t e n s iti e s ( Bt u/ T m) f o r 

ea c h m o de u si n g t h e f o ll o w i n g w ei g hte d s u ms:

R ail ( Bt u/ T m) =

T m t ri P i

Bar ge ( Bt u/ T m) « ( ^ z ~ )

y Ba r ge T m,

t r i p

T m ' A V G

T he c ir c u it y w ei g hti n g f a ct o r

t r i p

J Ba r ge T m,

i s als o i m p o rt a nt i n i t s o wn
1 1 0 6

i g h t si n c e c h a n ge s i n t h e e sti m ate s o f e n er p y e f fi cie n c y p er T o n Mile o f 

e it h e r t h e r a il o r b ar g e m o de ca n be e a sil y i n cl u d e d i n t h e r e s u lt s o f t h i s 

st u d y b y si m pl y m ulti p l y i n g t h e b ar g e e f fi cie n c y b y t h e a b o ve d e fi n e d c i r ­

c u it y f a ct o r. T he c ir c u it y f a ct o r w ill re m ai n st a b le u n til e it h e r m aj or 

t r a f f i c p att e r n c h a n ge s o r m aj or r a il o r water w a y c o n str u cti o n o c c u rs.

R e s u lt s

T h ere ar e t w o p ri n ci p al r e s u lt s o f t h i s st u d y. F i r s t, t h e w ei g hte d 

a v er a g e e n er g y i n t e n sit y ( E l) o f t h at p o rti o n o f t h e r a il i n d u str y w hic h c o mp ete s wit h t h e b ar g e li n e s ( o n t h e G ul f a n d M is sis si p pi wit h t ri b u t a ri e s ) 

was f o u n d t o be 6 3 9 o r 7 1 1 Bt u/ T m de pe n di n g u p o n w h et h er o ne i n cl u d e s o r n ot 

t h e f u el us e d f o r y ar d s w it c hi n g. B ot h n u m bers ar e i n cl u d e d i n t h e c o m pa ris o n si n c e t h e b ar g e s w it c hi n g a n d t o w ma ke u p i s s o meti m es d o ne o n c o ntr a ct 

( e . g ., t u g s hit c h a n d u n hit c h b ar g es w hil e t h e mai n t o w c o nti n u e s m o vi n g).

It i s t h e r e f o r e u n cle a r h o w m uc h o f t h e s w it c hi n g a n d t o w ma ke u p f u el i s i n ­

cl u d e d i n t h e ba r g e d ir e c t El fi g u re q u ot e d i n T a ble 1. T he r a il E l’ s are 

w ei g h te d b y 1 9 7 1 w at er b or n e * c o m merce s t a ti s ti c s , a n d i n cl u d e t h e 1 9 7 1 ac ­

t u al e n er g y i n t e n siti e s ( Bt u/ T m) e x p er ie n c e d b y ea c h p e rti n e n t r a il li n e as 

e x pla i n e d i n t h e p re vi o u s s e cti o n. T he se c o n d b a sic r e s u lt i s t h e r e l a ti v e 

cir c u it y o f t h e r a il a n d b ar g e m o des f o r t h e 1 9 7 1 water wa y c o m merce t r a f f i c 

o n t h e G ul f a n d M is sis si p pi wit h t ri b u t a ri e s. On t h e a v er a g e, b ar g e t o n 

mil e s were 1. 3 8 ti m e s as g r e at as t h e e q ui v ale nt c o m peti n g r a il t o n m il e s. 

A cc e p ti n g f o r a m o me nt t h a t t h e c o m p aris o n o f a n e n tir e r a il li n e's El wit h

t h a t o f t h e a v er a g e b ar g e li n e i s a v ali d o n e, t h e d eri v e d r a il El i s v er y 

f o l

a c c u ra te d ue b ot h t o t h e a v a il a b ilit y o f e x c ell e nt d ata *' a n d t h e f a i rl y

T he a ct u al 1 9 7 1 w at er b or n e t r a f fi c p att e r n was t h e b a sis f o r c o m p aris o n 

bet w ee n t h e m o d es.
1 1 0 7

T A B L E 1

1 9 7 1 R ail v s. Ba r ge Oierf Qr C o m p ari s o n P ar a m et er s

E N E R G Y I N T E N SI TI E S ( B t u /t o n mi)

R AI L B A R G E

D ir e ct

( a )

6 3 9- 7 1 1 7 8 5

T ota l

1 3 3 0

( b ) l 6 3 3

( b )

R E L A TI V E CI R C UI T Y

( b )

 ( ^ ° ~ 

b &

[ ^ )

t o n mi - r a il

1. 0 0 1. 3 8

S A MP LE SI Z E

O ri gi n D e st. P air s 2 9 0

• T on Mile s T ra n s p o rt e d 1 0

N ot es: (a ) I n cl u d e s m oti v e f u el o nl y , s u bje ct t o t h e f o ll o wi n g c l a rifi c a ti o n s:

Ba r ge d ir e ct

.f u el c o n s u me d 

v h g r e t h e

t o n m il e s

fi g u r e i s f a irl y i m p re cis e a n d i n cl u d e s h a uli n g 

f u e l, s o me b ut p r o b a bl y n ot a ll s w it c hi n g f u el 

a n d n o m ai nt e n a n ce f u el.

R ail d ir e ct =

f u el c o n s u m e d

t o n mil e s

N eit h e r r a il fi g u r e gi v e n i n cl u d e s m ai nt e n a n ce 

f u e l, b ot h i n cl u d e f r ei g h t li n e h a ul f u el.

T he s m all e r fi g u r e e x cl u d e s s w it c hi n g f u el 

w hil e t h e l a r g e r o ne i n cl u d e s a ll s w it c hi n g f u el

( b ) T h ese fi g u r e s are s u bje ct t o f a i rl y la r g e u nc e rt a i n ti e s.
1 1 0 8

la g e sa m ple us e d ( 2 9 0 0 D p air s a n d o n e h u n d re d m il li o n b ar g e Ite tr a n s p o rte d ). 

Alt h o u g h t h e cir c u it y fi g u r e i s s u bje ct t o s o me u n c e rta i n t y d ue t o J u d g m e nt a l d e cis i o n s i n t h e c h oic e o f l o g ic al r a il r o ute , t h e la r g e sa m pl e i n v ol v e d 

w o ul d te n d t o re d u ce s u c h u n c e rta i n t y .

T he a b o v e t w o r e s u lt s are c o m bi n e d wit h c u rr e nt e sti m a t e s ^ ! ) o f b ar g e 

f r ei g h t El i n Ta bl e 1. T he st a t e d (i n Ta bl e l ) b ar g e El i s t h e pr o d u ct o f 

H i r s t's r e vis e d d ir e ct El a n d t h e 1. 3 8 c ir c u it y e x pla i n e d a b o v e. A d m itt e d l y 

t h e H ir st fi g u r e is s u bje ct t o la r g e u n c e rt ai n ti e s *, b ut T a b le 1 ca n e a sil y 

be u p d ate d as ne w b ar g e El r a ti o s bec o me a v ail a b le . T he ne w T a ble 1 ba r g e 

El w o ul d si m pl y e q u al 1. 3 8 ti m e s t h e ne w e sti m ate o f b ar g e El. M ore i s s ai d 

a b o ut t h e b ar g e El e sti m ate i n A p pe n di x A.

Wit h a b it m ore e f f o rt, a f a i rl y i m pre ci se e sti m ate o f t o t a l ( d ir e ct 

a n d i n d ir e c t ) s y st e m e n er g y f o r b ot h r a il a n d b ar g e ca n be o bta i n e d. T he 

i n d ir e ct e n er g y i n cl u d e s s u c h t h i n g s as e l e c t ri c it y c o ns u me d t o ma ke l o c o ­

m oti v e s, tr a c k a n d f r ei g h t c a rs as w ell as t h e p ai n t f o r t h e o f fi c e s o f t h e 

r e s p e cti v e c o m pa ni es. Usi n g a met h o d e x pla i n e d i n A p pe n di x B, o ne o bta i n s 

t h e r e s u lt s li s t e d i n Ta bl e 1. I t m u st be e m p h asize d t h at t h e s e are o n l y 

e sti m ate s o f t h e t o t a l e n e r g ie s i n v ol v e d. T he y ar e u s e f u l, h o w e v er, i n t h at 

t h e y i n d ic ate t h e t o t a l e n er g y c o n s u m e d i n p r o vi d i n g a t o n mil e o f r a il o r 

b ar g e tr a n s p o rta ti o n as a b o ut t w ic e t h a t c o ns u me d b y t h e l o c o m oti v e o r t u g ­

b o at al o n e.

F i n all y, i t i s w ort h w hile t o r et u r n m o m e nta ril y t o t h e s u bje ct o f t h e 

le giti m a c y o f c o m p ari n g a n e n tir e r a il li n e's El t o t h e a v er a g e b ar g e El

I t i n cl u d e s a ll d o m estic w ate r tr a n s p o rt ati o n (c o a st w is e, la k e wis e a n d i n ­

t e r n a l) a n d i s ba se d o n t h e r o u g h e st, b ut b e st a v ail a b l e, f u el c o ns u m pti o n 

e sti m ate s. Si n ce b ar ge li n e s are n u mer o u s ( 1 8 0 0 o n G ulf - M is sis si p pi al o n e ), 

u n re g ula te d f o r t h e m ost p a rt a n d are e xe m pt fr o m f u el t a x , n o a c c u ra te 

f u el c o ns u m pti o n d ata e x i st s.
1 1 0 9

c o m peti n g wit h i t . R ail s o u rc e s ar g u e p la u si b l y t h a t, b y a n d l a r g e, b ar g e

m o ve me nts are la r g e c o m m o dit y, l o n g, p oi n t t o p oi n t h a uls a n d t h e r e f o r e s h o ul d 

be c o m par e d t o u n it t r a i n m o ve me nt E l, n ot a v er a g e r a il li n e El. T he e n er g y 

i n t e n sit y o f hi g h v ol u me dr y b ul k ca r g o i s si g n i fi c a n tl y l o w er t h a n t h e li n e 

a v er a g e El, i t i s ar g u e d, si n c e:

a) T he g o n d ola c ars ha ve o ne o f t h e hi g h e st n et t o g r o ss w ei g ht

a*

r a ti o s o f a ll r a il f r ei g h t c a r s.

b) A h o m o ge ne o us t r a i n o f g o n d ola c a r s h a s a v er y l o w a i r r e s i s ­

ta n c e f a ct o r w he n c o m pare d t o b o x c ar s a n d e s p e ci all y t o pi g g y

ba c k l o a d e d fl a t c a r s.

c) S i g n ifi c a n tl y l e s s s w it c hi n g f u el i s ne e d e d.

d) U nit t r a i n s g e n e r all y tr a v e l at l o w er s p ee ds t h a n o t h e r f r ei g h t

t r a i n s.

( 1 2)

Alt h o u g h s o me u n it t r a i n El r e s u lt s ha ve be e n p u bli s h e d i n d ic ati n g a 

ra n g e o f 2 2 6 * t o 3 5 9 * * Bt u /t o n mil e n ot i n cl u di n g c ir c u it y b ut i n cl u di n g 

t h e e m pl y r et u r n t r i p , m uch m ore d ata ne e d s t o be c o ll e ct e d b e f o re a n y

r e al c o m pa ris o n s ca n be ma de.

L e v el tr a c k.

«•

S i g n if ic a n t gr a d e
1 1 1 0

o n cl u si o n s

1) T he 1 9 7 1 a v er a g e b ar g e c ir c u it y ( r a ti o o f b ar g e t o n mil e s t o e q ui v ale nt 

r a il t o n m il e s) o n t h e G ulf - M is sis si p pi s y st e m was 1. 3 8.

2 ) 1 9 7 1 r a il El (e n er g y i n t e n sit y ) i n Bt u/ T m f o r li n e s c o m peti n g f o r b ar g e 

t r a f f i c was 6 3 9 (e x cl u di n g s w it c hi n g f u el) a n d 7 1 1 (i n cl u di n g a ll s w it c h ­

i n g f u e l). T he c o rr e s p o n di n g n ati o n al a v er a g e e n er g y i n t e n sit y was a ppr o xi m ate l y 7 0 0 Bt u/ T m.

3) T he r e s u lt a n t e n er g y i n t e n sit y c o m pa ris o n i n cl u di n g t h e t w o a b o ve me nti o n e d f a ct o r s a n d t h e b e st a v ail a ble b ar g e e n er g y i n t e n sit y p e r t o n mi 

i n dic ate s t h a t r a il i s fr o m 1 0 t o 2 3 % l e s s e n er g y i n te n si v e t h a n b a r g e, 

b ut s u c h a f a ct o r i s i n c o n cl u si v e i n vie w o f t h e la r g e u n c e rta i n t y a ss o ­

cia te d wit h t h e b ar g e f u el c o ns u m pti o n d ata (s e e A p pe n di x A).

*<) T he i m p ort a nt o v e r all q u e st i o n o f m o d al e n er g y e f fi cie n c y ca n o nl y be 

a c c u r ate l y a n s w er e d i f a d e fi n iti v e pr o g ra m o f c o ll e cti o n o f b ar g e f u el 

c o ns u m pti o n d ata is i n iti a t e d . I n t h i s a ut h o r’s o pi n i o n, t h e d ata m u st 

be g at h ere d i n s u c h a wa y as t o p er m it r e gi o n al o r n ati o n al w ei g hti n g b y 

a ct u al t r a f f i c c a r ri e d a n d b y t h e c ir c u it y f a ct o r s i n v ol v e d. T hi s mea ns 

f o ll o w i n g a ll ste p s o f t h e pr oc e d ure us e d i n t h i s p a p er wit h t h e e x ce pti o n o f t h e i n cl u si o n o f t h e a ct u al El o f t h e m o st pr o b a b le b ar g e li n e 

( o r a v er a g e o f b ar g e li n e s ) f o r ea c h p o rti o n o f ea c h t r i p . T he d ata 

s h o ul d als o a c c u r ate l y r e fl e c t t h at p o rti o n o f t h e b ar g e i n d u str y a ss o ­

cia te d wit h h i $ i v ol u m e, b ul k , l o n g dis ta n c e ( o v er 1 0 0 m il e s) h a uli n g.

5) T he m att er o f u n it t r a i n El s h o u l d als o be re s ol v e d f o r b ot h dr y b ul k 

a n d li q u i d b ul k t r a f f i c . T o be m ea ni n g f ul i n a n ati o n al a v er a g e c o mp a ris o n, t h e s e d ata m u st als o be g at h ere d i n s u c h a wa y t h at t h e r a il 

li n e E l’ s us e d i n t h i s r e p o rt's c alc ula ti o n s c o ul d be re pla c e d b y t h e 

e q ui v ale nt u n it t r a i n El.
i ni

R EF E R E N CE S

( 1 ) K ea r n e y: Ma na ge me nt C o n s ult a nts , " D o m estic W at er b o r n e S hi p pi n g 

Ma r ket A n al y sis, E x ec uti v e S u m mar y," p re p are d f o r t h e M ariti m e A d mi ni s t r a ti o n o f t h e U. S. D e p art m e nt o f C o m merce, F e b r u ar y 1 9 7 ^, p. 1 0.

( 2 ) E ri c H ir st, " E her p y I nte n si v e n e s s o f P a ss e n g er a n d F r ei g ht T ra n s p o rt 

M o des 1 9 5 0 - 1 9 7 0, " Oa k Ri d ge N ati o n al L a b o ra t o r y , R e p ort N o. O R N L- NS FE P- Llt, A p ril 1 9 7 3.

( 3 ) Ric h ar d A. Ric e, " S yste m E n er g y as a F a ct o r i n C o n si d eri n g F ut u re 

T r a n s p o rta ti o n," p re s e nte d at t h e A m eri ca n S o cie t y o f M ec ha ni cal 

E n gi n ee rs A n n ual M eeti n g, Dec e m ber 1 9 7 0. B y t h e sa me a ut h o r: " S ys ­

te m E he r p y a n d F ut u re T r a n s p o rta ti o n," MI T Te c h n ol o g y Re vie w,

Ja n u ar y 1 9 7 2.

( U) W illi a m M o oz, " T he E ff e ct o f F u el P ric e I n c re a s e s o n E h er g y I nte n ­

si v e n e s s o f F re i g ht T r a n s p o rt," Ra n d C o r p o ra ti o n, R e p ort R- 8 0 U- N S F, 

Dec e m b er 1 9 7 1.

( 5 ) U. S. A m y C or ps o f E n gi n e ers, " W at er b o r n e C o m merce o f t h e U nit e d 

S t a t e s, " p a rt 5, 1 9 7 1.

( 6 ) U. S. A m y C or ps o f E n gi n e ers, " W at er b o r n e C o m merce o f t h e U nite d 

S t a t e s, " p a rt 2, 1 9 7 1.

( 7 ) R ail m il ea g es a n d r o ute s w er e o bta i n e d fr o m Ha n d y R ail r o a d Atl a s o f 

t h e U nite d S ta te s ( Ne w Y or k: Ra n d Mc N all y & C o., 1 9 7 1 ).

( 8 ) Ba r g e mil ea g es a n d r o ute s we re o bta i n e d fr o m 1 9 7 2 I n t e r s t a t e P ort 

Ha n d b o o k ( C hi ca g o: R o c k well F. Cla nc y C o., 1 9 7 2 ).

( 9 ) T he e n e rj y i n t e n sit y o f ea c h r a il li n e was c alc u la te d b y di v i d i n g t h e 

li n e' s t o t a l d ie s el f u el c o ns u m pti o n i n t h e fr ei g h t a n d y ar d s w it c hi n g 

c ate g o rie s ( P ers o n al c o m m u nicati o n wit h Mr. H. W olf, U. S. I n t e r s t a t e 

C o m merce C o m missi o n, A p ril 1 9 7* *) b y t h e t o t a l re ve n u e t d n m il e s c a rrie d 

b y t h e li n e ( U. S. I n t e r s t a t e C o m merce C o m m issi o n, " T ra n s p o rt S t a ti s ti c s 

i n t h e U nit e d S t a t e s, " p a rt 1, 1 9 7 1, p p. 1 * »2, 1 6 8, T 9 *, 2 2 0, 2 h 6, 2 7 2, 

a n d 2 9 8).

( 1 0) Tele p h o n e c o n v ers ati o n wit h Mr. H ar r y N. C o o k, N ati o n al Water w a ys 

C o nfe re n ce, I n c., A p ril 1 9 7* *.

( 1 1) A l i s t o f re se a rc h r e s u lt s i n t h e a re a i s gi v e n i n T a ble A1 o f A p pe n di x 

A. Dr. H i r st's r e vis e d r e s u lt s ( R ef. ( 2 ), A p pe n di x A) we re c h os e n h ere 

si n c e:

(a ) Dr. H i r st's a n d Dr. M o o z's re s e a rc h are i n d e p e n d e n t n ati o n al 

a v er a g e e sti m ate s o f t o t a l a ct u al f u el c o ns u m pti o n a n d t r a f f i c

( b ) Alt h o u g h b ot h u se d t h e sa me f u el c o ns u m pti o n e sti m ate s,
1 1 1 2

i o

t h r e a p p ea rs t o be s o me d o u ble c o u nti n g o f b ar g e t o n mil es 

i n Dr. M o oz’s r e s u lt s (s e e Re f. ( 2 ), p. 3 8).

(c ) Of t h e t w o, Dr. H i r s t's r e s u lt s are t h e m ost r e c e nt a n d a p pl y 

t o t h e y e a r o f t h i s st u d y ( 1 9 7 1).

( 1 2) Tele p h o n e c o n v ers ati o n wit h Mr. Ge o r ge A n de rs o n, W ester n R ail r o a d 

T r a f fi c A s s o cia ti o n, C hi ca g o, I lli n o i s , A p ril 1 9 7 *.

( 1 3) L ett e r fr o m Mr. Ha rr y N. C o o k, E xe c u ti v e V ic e - P re si d e nt, N ati o n al 

Water w a ys C o n fe re nc e, I n c. t o Dr. E ri c H ir st, F E O, Marc h 7, 1 9 7 U.
1 1 1 3

A P P E N DI X A. B ar ge F r e i g h t E h er g y I n t e n s it y

W it h o ut a n y d o u bt, t h e m ost u n c e rt a i n p i e c e o f d at a i n t h e e n ti r e a r e a 

o f B ar ge v s. R ail e n e r g y e f fi c i e n c i e s i s t h a t o f b a r g e f u e l c o n s u m pti o n.

T h e r e s e a r c h r e s u lt s gi v e n i n T a ble A 1 i n d i c a t e t h e u n c e rt a i n t y i n v o l v e d.

T he c o m m o nl y h e l d o pi n i o n i s t h a t m o re d at a m ust be c o ll e c t e d . Alt h o u g h 

t h e i n f o r m ati o n i n e x i s ti n g d a t a h a s b e e n f u ll y e x t r a c t e d a n d b e e n f o u n d t o 

b e i n s u f f i c i e n t, g at h e ri n g n e v f u e l d a t a c o m p ati ble w it h a t o n m il e w ei g hti n g 

s i m il a r t o t h e a p pr o a c h u se d i n t h i s p a p e r i s n ot a t r i v i a l t a s k d u e t o t h e 

l a r g e n u m be r (l 8 0 0 o n t h e G u lf - M i s si s si p p i s y ste m ) o f m o stl y u n r e g u l at e d 

b a r g e li n e s w hic h m ust b e q u e ri e d.

T A B L E A1

R E S U L TS O F R ES E A R C H O N W A T E R W A Y E NE R G Y I N T E N SI T Y ( B t u / D n)

A ut h or a n d A p pli c a ble D at a Y ea r Bt u /t m

H i r s t

( 1 )

, 1 9 7 0

6 8 0

( 2 )

H i r s t' * ', 1 9 7 1

5 7 0

M o o z ^ \ c a. 1 9 6 8

5 0 0

( 1 »)

M o o z' ', 1 9 7 0

5 1 2

B ri n e g a r

( 5 )

, 1 9 7 3

U 6 2

N ati o n al P etr ole u m C o u n c il ^ \

1 9 7 3 5 1 0

N ati o n al W at er w a y s C o n fe re n c e,

1 9 6 8 l » 1 5 ( L o w est Sa m pl e 2 1 7 Bt u /i m )

N ote s:

( a ) T he se fi g u r e s d o n ot i n cl u d e c i r c u it y a n d s h o ul d be c o m pa re d w it h t h e 

r a i l r e s u lt fr o m T a b le 1 o f t h e m ai n r e p o rt ( a f t e r c o r r e c ti o n ) w hi c h 

i s 1 *6 3 t o 5 1 5 Bt u/ Tf e.

( 8 )

( b ) T he W e st er n R ail r o a d T r a f fi c A s s o ci ati o n h as p u b li s h e d' ' r e s u lt s o f 

1 0, 0 0 0 n et t o n c o al t r a i n m o v e m e nts w hi c h ra n g e fr o m l 6 U Bt u / T n (l e v e l 

t r a c k ) t o 2 6 0 Bt u/ T m ( s i g n i fi c a n t g r a d e ) a f t e r c o r r e c ti o n f o r b a r g e c i r ­

c u it y . T he se fi g u r e s a r e m ost l o g i c a ll y c o m p ar a b le w it h t h e N ati o n al 

W at er w a y s C o n fe re n c e d a t a gi v e n a b o v e.
1 1 1 4

1 2

fe re n c e ^- A p p e n di x A

( 1 ) Oa k Ri d ge N ati o n al L a b o ra t o r y , Re p o rt N o. O R N L- N S F- E P- k k.

D o m estic (i n cl u di n g c o a st w i d e, b a r g e, a n d la k e w is e ) n ati o n al a v er a g e 

F u el s o urc e: Re f. ( 3 )

T o n mi s o urc e: T r a n s p o rt ati o n A ss o cia ti o n o f A m eric a, " T ra n s p o rt ati o n 

F a cts a n d T re n d s. "

( 2 ) Tele p h o n e c o n v ers ati o n wit h Dr. H ir st.

D o m estic (i n cl u di n g c o a st w is e, la k e w is e a n d b a r g e) n ati o n al a v er a g e 

F u el s o urc e: Ja m es J. M utc h, Ra n d C or p ora ti o n D oc u me nt R 1 3 9 1- N S F, 

Dec e m b er 1 9 7 3.

T o n mi s o u rc e: T r a n s p o rt ati o n A s s o cia ti o n o f A m eric a, " T ra n s p o rt ati o n 

F a cts a n d T re n d s. "

( 3 ) " T he E ff e ct o f F u el P ric e I n c re a s e s u p o n t h e E n er g y I nte n si v e n e s s o f 

F re i g ht T r a n s p o rt," Ra n d C or p ora ti o n R e p ort R- 8 O L- N S F.

D o me sti c (i n cl u di n g c o a st w is e, ba r g e a n d la k e wis e)

F u el s o u rc e: U. S. B u rea u o f Mi ne s, " M i n er al s Ye ar b o o k" a n d " M i n er al 

I n d u str y S ur ve ys — Cr u d e P etr ole u m, P et r ole u m Pr o d u ct s 

a n d N at u ra l Gas L i q ui d s."

T o n mi s o u rc e: I n t e r s t a t e C o m merce C o m missi o n a n d A m eri ca n Wat er wa ys 

O p e ra t o rs, I n c.

( U) An u p d at e o f ( 3 ) ba se d o n 1 9 7 0 a ct u als . L ett e r t o J. Fe e ne y fr o m Dr.

W m. E. M o oz, A u g ust 8, 1 9 7 3.

( 5 ) State m e n t b y Cla u d e S. B ri n e g a r, S e c re ta r y o f T r a n s p o rt ati o n, B ef or e 

t h e H o use A p p r o p ri ati o n s S u bc o m mitte e o n T r a n s p o rta ti o n, Marc h 5, 1 9 7 k. 

I n cl u d e s " F re i g ht T ra n s p o rt ati o n b y W at er."

F u el a n d t o n mi s o u rc e: De pa rt m e nt o f I n t e ri o r e sti m ate s.

( 6 ) " I nte ri m Re p o rt P h as e I, T ra n s p o rt ati o n Tas k Gr o u p o f t h e N ati o n al 

P et r ole u m C o u n cil's C o m mittee o n E ne r ^ r C o n se r v ati o n.

T u g a n d b ar g e o p e r at o r s o nl y.

F u el s o urc e: E sti m at e ba se d o n p r o p uls i o n e f fi c i e n c y, a n n u al HP h o ur s 

o f p r o p uls i o n a n d f u el e f fi cie n c y.

T o n mi s o urc e: N ot gi ve n i n t h e i n te ri m r e p o rt.

( 7 ) " A Wat er w a ys F u el Ta x: Me as u re m e nts o f t h e M e n ace," W as hi n gt o n, D. C., 

Ma y 1 9 7 0. Ba se d o n a 3 2. k p re c e nt sa m ple s u r v e y o f i n la n d water wa y 

c a r ri e r s c o n d ucte d b y N ati o n al Wat er wa ys C o nfe re n ce, I n c. i n 1 9 6 9. 

I n cl u d e s t u g a n d b ar g e o p e r at o r s o n l y.

( 8 ) Tele p h o n e c o n v ers ati o n wit h Mr. Ge or ge A n d er s o n, W ester n R ail r o a d 

T r a f fi c A s s o cia ti o n, C hi ca g o, Illi n o i s, A p ril 1 9 7 *.
1 1 1 5

1 3

A P P EN DI X B. D eri v ati o n o f T ota l I h er g y E ffic ie n cie s

A re a s o n a ble wa y o f e sti m ati n g t o t a l e n er g y i m pa ct s o f tr a n s p o rt ati o n 

i s b y t h e us e o f a L e o nti e f I n p ut O ut p ut i n v e r s e m atr i x , w h o se el e m e n ts 

( I - A) ^j b y d e fi n iti o n ar e t h e t o t a l ( d ir e c t a n d i n d ir e c t) o ut p ut ( $ ) o f 

i n d u str y i ne e d e d p e r d o ll a r o f o ut p ut o f i n d u str y J. T h ese m atri x el e m e n ts 

ca n e a sil y be c o n v erte d t o e n er g y u n it s.

T he b a sic met h o d * a n d 1 9 6 3 r e s u lt s f o r t h e r a il i n d u str y are gi v e n i n 

r e fe r e n c e ( l ). T he sa me d oc u me nt als o e x tr a p o la te s 1 9 6 3 d ata t o 1 9 7 1 b ut 

d ue t o a dif f e r e n c e i n t h e gr o u n d r u le s o f c o m pa ri s o n, t h e 1 9 7 1 r e s u lt s i n 

T a ble l b o f (l ) ar e n ot a p pli c a ble h e r e. O nl y t h e met h o d ( S e cti o n II B ) i s 

u s e f u l.

1 9 7 1 t o t a l r a il f r ei g h t E l, X, ca n be e sti m ate d via t h e p r o d u ct:

X ■ A • B • C

w h ere

A = l o c o m oti v e a n d s w it c hi n g f u el us e d p er t o n mi i n 1 9 7 1.

B = r a ti o o f t o t a l r e fi n e d p etr ole u m us e d p e r t o n mil e i n 1 9 6 3 

t o t h e l o c o m oti v e a n d s w it c hi n g f u el us e d p e r t o n mi i n 1 9 6 3.

C = r a ti o o f d ir e ct e n erj or u se d p e r t o n mi b y t h e r ailr o a d s i n

1 9 6 3 t o t h e r e fi n e d p etr ole u m p e r t o n mi us e d b y t h e r ail r o a d s 

i n 1 9 6 3.

D = r a ti o o f t h e t o t a l ( d ir e c t a n d i n d ir e ct) e n er g y p e r t o n mi 

us e d b y t h e r a il r o a d s i n 1 9 6 3 t o t h e d ir e c t e n er g y u se d b y 

t h e r ail r o a d s i n 1 9 6 3.

Bac k u p d ata f o r (l ) gi v es t h e f o ll o w i n g v al u e s:

I n cl u di n g a c o rre cti o n f o r c a p it al p u rc h as e s s u c h as r o lli n g st o c k.

5 4 - 2 3 9 0 - 7 5 - 7 1
1 1 1 6

ll *

« 1. 0 8 1 *

C ■ 1. 1 2 9

T a ble l a o f (l ) gi v e s t h e v al u e o f D:

D ■ 1. 7 0

Ta bl e 1 o f t h e p r e s e nt re p o rt gi v es t h e v al u e o f A:

A = 7 1 1 B t u /t o n mi

T h ere f o re, 1 9 7 1 t o t a l r a il f r ei g h t El i s gi v e n b y

6 3 9 B t u /t o n mi x 1. 0 8 1* x 1. 1 2 9 * 1. 7 0 » 1 3 3 0 Bt u /t o n mi

I f t h e sa me v al u e s ft or B, C, D ar e ass u m e d v ali d f o r t h e b ar g e c a s e, 1 9 7 1 

t o t a l b ar g e f r ei g h t El i s gi ve n b y

7 8 5 B t u /t o n mi x 1. 0 8 1* x 1. 1 2 9 * 1. 7 0 = 1 6 6 3 Bt u /t o n mi 

N ote t h at t h e s e t o t a l e n e r g ie s a d d n ot h i n g t o t h e c o m pa ris o n bet w ee n r a il 

a n d b a r g e, t h e y si m pl y e sti m ate h o w m uc h t o t a l e n er g y i s s p e nt p er t o n mi 

i n ea c h c a se .

R efe re n ce s — A p pe n di x B

(l ) A nt h o n y Se ba l d a n d R o b ert He re n d ee n, " T he D ir e ct a n d I n d ir e ct D oll ar 

Qi er g y a n d E m pl o y me nt I m pa ct s o f A ir, R ail a n d A ut o m o bile P a ss e n g er 

T r a n s p o rt ati o n," E n er g y Re se ar c h Gr o u p, C e n te r f o r A d v a nce d C o m p utati o n , U ni v e rs it y o f Illi n o i s, Ur ba na, I lli n o i s , O ct o b er 1 9 7 3.
1 1 1 7

R AI L W A Y T R U S T F U N D

Br uc e Ha n n o n

D ir e ct o r, E n er g y R es ea rc h Cr o u p 

C e n te r f o r A d v a nc e d C o m p utati o n 

U ni v e r sit y of Illi n o i s 

U r b a n a, I lli n o i s 6 1 8 0 1

A p ril, 1 9 7 4

A b str a ct

T he o p a r ati o n o f r o lli n g f r e i g h t c a r ri e r s ( b a r g e, t r a i n , tr u c k ) a r e e x ­

a mi ne d f o r. f l e x i b ilit y , c o st s, s u b si d i e s, r e g u la ti o n a n d r e s o u r c e de m a n d s.

T he c o n cl u si o n re a c h e d i s t h at t r a i n s c o m p et e wit h b ot h b ar g e a n d tr u c k b ut 

t h e l a tt e r t w o d o n ot c o m p ete w it h ea c h o t h e r. T r u c k -tr ai n c o m p etiti o n i s 

r e a c hi n g e q uil i b ri u m w hil e b a r g e -tr ai n c o m p etiti o n c o nti n u e s. T ra i n s a re 

s u b st a n ti a ll y o uts u b si d iz e d r e l a ti v e t o t h e ot h e r t w o m o de s. R ail c o m pa ni es 

ha ve a n u n a ttr a c ti v e fi n a n ci al s t a t u s. Yet r a il e n er g y de m a n d s a r e t h e s m all ­

e st f o r a n y m o de o n a f r ei g h t t o n - m il e b a si s. E m pl o y me nt re q uir e m e nts of t h e 

t h r e e m o des v ar y g e n e r all y w it h t h e f r e i g h t c o st s. Tr u c k s a r e m o st s e n siti v e 

t o t h e d o ll a r c o st of f u el; w ate r tr a n s p o rt i s sli g h tl y l e s s s e n siti v e t h a n 

t r a i n tr a n s p o rt.

T he c o n cl u si o n i s t h at r a il f r e i g h t h a uli n g s h o ul d be p r ote cte d fr o m 

u n e q ua l g o ve r n m e nt s u b si d ie s t o o t h e r m o d es. G o ver n m e nt wit h d ra w al fr o n t h e 

s u b si d y o f f r e i g h t tr a n s p o rt i s u r g e d. I n li e u o f w it h d ra w al, f e d e r al o w ner ­

s h i p a n d m ai nte n a n ce of t h e n a ti o n's ra il w a y s wit h a p p r o p ria te u s e r f e e s, i s

rec o m me n de d.
1 1 1 8

I n t r o d u c t i o n

T h e p u r p o s e o f t h i s p a p e r i s t o d e l i n e a t e t h e m a j o r r e s o u r c e - d e m a n d i n g , 

i n l a n d , i n t e r c i t y t r a n s p o r t m o d e s ; t o d e m o n s t r a t e t h e i r r e l a t i v e c o m p e t i t i v e 

p o s i t i o n s ; a n d , t o s u g g e s t a m e t h o d f o r b a l a n c i n g h i s t o r i c a l b i a s e s i n o r d e r

t o p r o m o t e a m o r e e f f i c i e n t o v e r a l l t r a n s p o r t s y s t e m .

T r a n s p o r t a t i o n r i g h t s - o f - v a y a r e d e s i g n e d , w i t h t h e p o s s i b l e e x c e p t i o n 

o f t h e a i r w a y s , e x c l u s i v e l y f o r f r e i g h t v e h i c l e s . B a r g e w a t e r w a y s a n d l o c k s , 

r a i l r o a d t r a c k s a n d c o n c r e t e h i g h w a y s a r e c o n s t r u c t e d s p e c i f i c a l l y f o r d e p t h

o f c a n a l a n d l o c k , s t r e n g t h o f r a i l , a n d t h i c k n e s s a n d w i d t h o f p a v e m e n t , 

f o r t h e i r r e s p e c t i v e f r e i g h t c a r r i e r s . B e c a u s e o f t h e i r s p e e d a n d l o a d i n g , 

r i g h t - o f - w a y m a i n t e n a n c e c o s t s l a r g e l y a c c r u e t o t h e f r e i g h t c a r r i e r s ( O e h m a n 

a n d B i e l a k , 1 9 7 0 , T a b l e 2 5 ) . P a s s e n g e r v e h i c l e s , s c a r c e t o d a y o n w a t e r a n d 

r a i l , a r e n e a r l y i n c i d e n t a l t o t h e d e s i g n a n d m a i n t e n a n c e o f t h e r i g h t - o f - 

w a y s ( O e h m a n a n d B i e l a k , 1 9 7 0 , T a b l e 2 5 ) . S i n c e a m a j o r i t y o f U . ' S . t r a n s ­

p o r t a t i o n r i g h t s - o f - w a y a r e d e s i g n e d f o r f r e i g h t , a n d a m a j o r s h a r e o f t h e

t r a n s p o r t c o s t i s i n t h e c o n s t r u c t i o n , o p e r a t i o n , a n d m a i n t e n a n c e o f t h e 

r i g h t - o f - w a y , a r . d s i n c e g o v e r n m e n t t r a n s p o r t s u b s i d i e s h a v e h i s t o r i c a l l y

s h a r e d i n r i g h t - o f - w a y c o s t , I s h a l l l i m i t t h i s s t u d y t o a r i g h t - o f - w a y

a n a l y s i s o f t h e c o m p e t i n g t r i o o f i n t e r c i t y f r e i g h t t r a n s p o r t : i n l a n d

b a r g e , r a i l r o a d , a n d t r u c k .

C o m p e t i t i v e S t r u c t u r e o f L a r g e , T r a i n , a n d T r u c k

B a r g e f r e i g h t , i n t h e s e n s e o f t h i s s t u d y , m e a n s a l l I n t e r s t a t e C o m m e r c e 

C o m m i s s i o n r e g u l a t e d i n l a n d f r e i g h t t h a t m o v e s o n w a t e r , i n c l u d i n g t h e f r e i g h t 

o n t h e M i s s i s s i p p i a n d O h i o R i v e r s , t h e G r e a t L a k e s , a n d t h e i n t e r c o a s t a l
1 1 1 9

c a n a l s . A b a r g e i s a r e c t a n g u l a r l y s h a p e d v e s s e l , a b o u t o n e h u n d r e d f e e t 

l o n g , f i l l e d w i t h a b u l k c o m m o d i t y s u c h a s g a s o l i n e . O f t e n , s e v e r a l b a r g e s

a r e a s s e m b l e d i n t o a n o b l o n g - s h a p e d , c l o s e l y p a c k e d c o l l e c t i o n c a l l e d a t o w , 

w h i c h i s p u s h e d b y a d i e s e l p o w e r e d b o a t u p a n d d o w n t h e m a j o r r i v e r s , c a n a l s , 

a n d l a k e s o f t h e c o u n t r y . T h e b a r g e t r a f f i c m o v e s t h r o u g h l o c k s a n d c a n a l s 

c o n s t r u c t e d , o p e r a t e d , a n d m a i n t a i n e d , w i t h o u t u s e r c h a r g e , b y t h e U . S .

A r m y C o r p s o f E n g i n e e r s . T h e b a r g e i n d u s t r y i 3 o n l y l i g h t l y r e g u l a t e d , a n d 

l i t t l e f u e l u s e d a t a a r e a v a i l a b l e . R e s u l t s o f b a r g e e n e r g y s t u d i e s a r e i n ­

e v i t a b l y . c o n t r o v e r s i a l .

I n t h i s s t u d y , r a i l f r e i g h t i n c l u d e s a l l c l a s s e s o f r a i l f r e i g h t e x c e p t 

w h e r e n o t e d . R a i l f r e i g h t i n c l u d e s u n i t t r a i n s , g e n e r a l l y c o m p o s e d o f a s e r i e s 

o f a b o u t o n e h u n d r e d i d e n t i c a l r a i l r o a d c a r s c a r r y i n g i d e n t i c a l f r e i g h t .

T h e s e s p e c i a l t r a i n s c o m p e t e d i r e c t l y w i t h t h e l a r g e r b a r g e t o w s o v e r t h e 

l a r g e h a u l i n g d i s t a n c e s , U n i t t r a i n s a n d t h e l a r g e b a r g e t o w s o f t e n r e t u r n 

e m p t y t o t h e i r p o i n t o f s h i p m e n t .

T r u c k s i n t h i s s t u d y , g e n e r a l l y r e f e r t o i n t e r c i t y c o m b i n a t i o n ( t r a c t o r - 

t r a i l e r ) t r u c k s , a l t h o u g h t h e r e a r e a n i n c r e a s i n g n u m b e r o f t h e l a r g e r c a p a ­

c i t y d o u b l e t r a i l e r t r u c k s . T r a i l e r s c a n b e s h i p p e d b y t r a i n ( p i g g y b a c k ) , 

d e p o s i t e d f o r l o a d i n g o r ' u n l o a d i n g a n d t h e n b e p i c k e d u p b y a n o t h e r t r a c ­

t o r . L o n g - d i s t a n c e , l a r g e t r u c k s t r a v e l i n g i n t e r s t a t e h i g h w a y c o m p e t e w i t h 

t r a i n s , p a r t i c u l a r l y f o r p e r i s h a b l e f r e i g h t . L a r g e i n t e r c i t y t r u c k s , p a r t i ­

c u l a r l y t h o s e w h i c h a r e p r i v a t e l y o w n e d , r e t u r n e m p t y t o t h e i r p o i n t o f s h i p ­

m e n t .

O f a l l U . S . o r i e n t e d i n l a n d f r e i g h t , 1 6 . 2 p e r c e n t w a s c a r r i e d b y b a r g e ,

3 8 . 5 p e r c e n t b y t r a i n , a n d 2 2 . 2 p e r c e n t b y t r u c k i n 1 9 7 1 ( t o n m i l e b a s i s ,
1 1 2 0

1 . 9 t r i l l i o n , t o t a l ) , a p p r o x i m a t e l y t h e s a m e d i s t r i b u t i o n a s i n 1 9 7 2 ( A s s o c i ­

a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 a , p . 3 6 ) . T h e r e m a i n i n g m a t e r i a l s m o v e d 

b y p i p e l i n e . T h e s p e c i a l i z e d n a t u r e o f p i p e l i n e d m a t e r i a l s , a n d t h e i r g e n e r ­

a l l y l o w f l e x i b i l i t y , r e m o v e s t h e m f r o m c o n s i d e r a t i o n i n t h i s s t u d y .

F l e x i b i l i t y , a s r e p r e s e n t e d b y a v e r a g e s p e e d a n d r a n g e , i s g e n e r a l l y 

r e g a r d e d a s a m e a s u r e o f c o m p e t i t i o n . A n o t h e r m e a s u r e o f c o m p e t i t i o n i s t h e 

a v e r a g e r e v e n u e p e r t o n m i l e , p r o v i d e d i t i s a n a c c u r a t e a s s e s s m e n t o f a l l e x p e n s e s . 

S t i l l a n o t h e r m e a s u r e i s t h e t o t a l r i g h t - o f - w a y n e t w o r k l e n g t h a n d c i r c u i t y .

T h e s e m e a s u r e s a r e s h o w n i n T a b l e 1 f o r b a r g e , r a i l , a n d t r u c k f r e i g h t . T h e 

c o s t r a n g e b e t w e e n m o d e s i s s i z e a b l e , b u t b a r g e c o s t s d o n o t i n c l u d e a n y r i g h t - 

o f - w a y c o s t s , a n d t r u c k c o s t s i n c l u d e a p p r o x i m a t e l y h a l f t o t h r e e - f o u r t h s o f 

t h e i r a l l o c a t e d a m o u n t o f r i g h t - o f - w a y c o s t s ( O e h m a n a n d B i e l a k , 1 9 7 0 ) . R a i l 

c o s t s r e f l e c t p r i v a t e o w n e r s h i p o f t h e r i g h t - o f - w a y , i n c l u d i n g r i g h t - o f - w a y 

t a x e s . I t i s n o t k n o w n h o w m u c h t h e s e c o s t s a r e i n f l u e n c e d b y t h e l a r g e l a n d 

s u b s i d i e s g i v e n , m o r e t h a n a c e n t u r y a g o , t o t h e r a i l r o a d s , p a r t i c u l a r l y i n 

t h e W e s t . S i n c e t h e c o s t s d o r e f l e c t t h e s c a l e o f t h e a v e r a g e s p e e d s a n d 

g e o g r a p h i c i n t e n s i t y o f t h e r i g h t - o f - w a y n e t w o r k , i t i s s o m e w h a t s u r p r i s i n g 

t o f i n d t h a t t h e r a i l r o a d s h a u l f a r t h e r o n t h e a v e r a g e t h a n t h e s l o w e r b a r g e s .

T h e m o r e f l e x i b l e t r u c k s h a u l a b o u t h a l f a s f a r a s r a i l o n t h e a v e r a g e , a t 

t w i c e t h e a v e r a g e s p e e d . T r u c k s , c h a r a c t e r i s t i c a l l y m o v i n g " o v e r n i g h t " d i s ­

t a n c e s , a r e w e l l s u i t e d t o t h e r e c e n t d i s p e r s i o n o f i n d u s t r y a l o n g t h e i n t e r ­

s t a t e s y s t e m . O f f s e t t i n g , t o s o m e e x t e n t , t h e l a r g e d i f f e r e n c e i n c o s t o f 

h a u l i n g b e t w e e n t h e t h r e e m o d e s i s t h e f a c t t h a t i n v e n t o r y a n d w a r e h o u s i n g 

c o s t s a r e g e n e r a l l y s m a l l e r f o r t h e f a s t e r m o d e s . S m a l l i n v e n t o r i e s , h o w e v e r , 

h a v e t h e d i s a d v a n t a g e o f b e i n g e s p e c i a l l y s e n s i t i v e t o r e s o u r c e s h o r t a g e s , 

f o r e x a m p l e , a f u e l s h o r t a g e w h i c h w o u l d a f f e c t f r e i g h t d e l i v e r i e s .
1 1 2 1

T h e n u m b e r s i n T a b l e 1 a r e , o f c o u r s e , a v e r a g e s a n d d o n o t r e f l e c t 

t h e d e t a i l o f m o d a l c o m p e t i t i o n w h i c h p r e v a i l s i n s p e c i f i c a r e a s . T a b l e 1 

i s i n t e n d e d t o a l l o w a r e l a t i v e r a n k i n g o f t h e m o d e s . I n g e n e r a l , i t a p p e a r s

t h a t b o t h b a r g e a n d t r u c k c o m p e t e w i t h r a i l , b u t n o t w i t h e a c h o t h e r . B a r g e s

a r e c o m p e t i n g w i t h r a i l o n t h e l o n g h a u l c o m m o d i t i e s s u c h a s m i n e r a l s a n d

g r a i n , w h i l e t r u c k s h a v e a l r e a d y t a k e n m o s t o f t h e s h o r t e r h a u l r a i l d e l i v ­

e r i e s . F r o m I 9 6 0 t o 1 9 7 0 , t h e i n t e r c i t y h a u l d i s t a n c e b y b a r g e s i n c r e a s e d 

1 6 p e r c e n t , b y r a i l i t i n c r e a s e d 1 1 p e r c e n t , a n d b y t r u c k i t d e c r e a s e d U 

p e r c e n t ( U . S . D e p a r t m e n t o f T r a n s p o r t a t i o n , 1 9 7 2 , p p . 2 5 , 3 0 , 3 5 ) , i n d i c a ­

t i n g a g a i n t h a t b a r g e s a n d t r a i n s a r e c o m p e t i n g f o r u n i t l o n g - h a u l o p e r a ­

t i o n s , a n d t h a t t r a i n a n d t r u c k c o m p e t i t i o n h a s p r o b a b l y r e a c h e d e q u i l i b r i u m .

T h i s a r r a n g e m e n t i s f u r t h e r i n d i c a t e d b y t h e i n c r e a s i n g n u m b e r o f t r u c k s

t r a v e l i n g b y r a i l ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 a , p . 3 6 ) . S u c h

a n a r r a n g e m e n t i s p r o b a b l y n o t t h e m o s t e n e r g y - e x ' f i c i e n t r a i l h a u l i n g p r o c e s s 

s i n c e t h e s e " p i g g y b a c k " t r a i n s r u n e s p e c i a l l y f a s t , h a v e h i g h e r t h a n n o r m a l 

v i n d r e s i s t a n c e , a n d h a v e l o w e r t h a n n o r m a l c a r g o - t o - g r o s s w e i g h t r a t i o . 

T r a i n s s o m e t i m e s a c t a s f e e d e r l i n e s f o r b a r g e s , a n d t r u c k s o c c a s i o n a l l y p e r ­

f o r m t h i s r o l e f o r b o t h o f t h e o t h e r m o d e s . T r u c k - b a r g e o r t r u c k - r a i l c o m ­

b i n a t i o n s s o m e t i m e s a c t t o c o m p e t e w i t h t h e r e m a i n i n g m o d e .

E x p e n dit ure s f o r R i- h t- o f - ’.’a ys

T o t a l F e d e r a l c o s t s f o r t h e 2 5 , 0 0 0 m i l e s o f i n l a n d w a t e r w a y s ( e x c l u d i n g 

t h e G r e a t L a k e s ) w a s $ 2 1 8 . 0 m i l l i o n i n 1 9 7 1 ; t h i s i n c l u d e d a l l c o n s t r u c t i o n , 

o p e r a t i o n , a n d m a i n t e n a n c e c o s t s ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 b , 

T a b l e s 5 a n d 7 ; a n d s e e a l s o , K e a r n e y : M a n a g e m e n t C o n s u l t a n t s , 1 97 ** , p . 1 7 ) .
1 1 2 2

cl u si o n o f t h e s e c o sts i n t h e b ar g e c o sts (s e e T a ble l ) w o ul d i n c r e a s e 

a v er a g e r a t e s b y a b o ut o n e -t h ir d ( A s s o cia ti o n o f A m erica n R ail r o a d s, 1 9 7 3 a, 

1 9 7 3 b; U. S. D e p art m e nt o f T r a n s p o rt ati o n, 1 9 7 2). A r e c e nt F e d e ra l i n t e r ­

a g e n c y t a s k gr o u p i n d ic ate d f u ll f e d e r al c o sts c o ul d be re c o v ere d wit h a 

t w e nt y -f o u r c e nts p er g all o n f u el t a x, w hic h w o ul d r e s u lt i n a 6 0 p e rc e nt 

di v e r si o n o f b ar g e f r e i g h t t o ot h e r m o de s ( S w ift a n d S p e n c er, 1 9 7 3). T ota l 

F e d e ra l c o sts f o r hi g h w a y c o n str u cti o n was $ 5. 6 b illi o n i n 1 9 7 1 ( st a t e a n d 

l o c a l g o ve r n me nt c o sts we re a n a d d it i o n al $ l 6. 8 b illi o n i n 1 9 7 1 ) t o s u p p o rt 

a b o ut 9 2 0, 0 0 0 m il e s o f f e d e r a l- a i d hi g h w a y s ( A s s o cia ti o n o f A m erica n R ail ­

r o a d s, 1 9 7 3 b; B ur ea u o f t h e C e n s u s, 1 9 7 1, T a b le 8 3 8 ). I n 1 9 6 9, a ll c o m bi n ati o n tr u c k s we re p a y i n g a b o ut 7 6 p e rc e nt o f t h e i r i n c u rr e d c o s t s, w hil e t h e 

l a r g e st tr u c k s, se mi- a n d f u ll t r a il e r s , we re p a yi n g 5 6 p e r c e nt o f t h e i r

all o c at e d c o st fr o m I n t e r s t a t e hi g h w a y us e ( Oe h ma n a n d B ie la k, 1 9 7 0), c o mp are d w it h a 9 8. 2 p e rc e nt u s e r s h are o n a ll F e d e ra l a i d pri m ar y hi g h wa ys 

( Oe h ma n a n d B ie la k, 1 9 7 0). I n cl u si o n o f t h e s e u n p ai d ri g ht- o f- w a y c o sts 

w o ul d i n c r e a s e i n t e r c it y tr u c k r ate s a b o ut 5 p e r c e nt o n t h e a v er a g e ( Oe h ma n 

a n d B ie la k, 1 9 7 0; se e a l s o , U. S. D e p art m e nt o f T r a n s p o rta ti o n, 1 9 7 2; A ss o ci a 

ti o n o f A m eri ca n R ail r o a d s, 1 9 7 3 b ). R ail r o a d s s p e nt sli g h tl y o v er $ 2 b illi o n 

i n 1 9 7 1 t o m ai n ta i n , c o n str u ct, a n d pa y ta x e s o n t h e i r 3 3 5, 0 0 0 m il e s o f tr a c k 

( A s s o cia ti o n o f A m erica n R ail r o a d s, 1 9 7 3 b, T a b le 1 0 ; A s s o cia ti o n o f A m eri ca n 

R ail r o a d s, 1 9 7 3 a, p. U 8 ).

G o v er n m e nt c u rr e n t d o ll a r e x p e n dit u re s o n i n la n d water w a y p v p n ^ a nt-. 

i n c re a s e d b y 2 3 p e r c e nt bet w ee n i 9 6 0 a n d 1 9 7 0 ( A s s o cia ti o n o f A m eri ca n R ail ­

r o a d s, 1 9 7 3 b). G o v er n me nt c u rr e nt d o ll a r hi g h wa y c o n str u cti o n a n d m ai nte na n ce e x p e n dit u re s i n c r e a s e d 9 ^ p e rc e nt d u ri n g t h a t ti m e, e x pla i n i n g i n p a rt
1 1 2 3

t h e s h o r t e r t r u c k h a u l d i s t a n c e n o t e d a b o v e ( A s s o c i a t i o n o f A m e r i c a n R a i l ­

r o a d s , 1 9 7 3 b ) . H o w e v e r , l o c k a n d d a m c o n s t r u c t i o n n o w a p p e a r s t o b e t h e 

l i m i t i n g f a c t o r i n i n c r e a s i n g b a r g e t r a f f i c ( K e a r n e y : M a n a g e m e n t C o n s u l t a n t s , 

1 9 7 * , p p . 1 1 - 1 2 ) . F u r t h e r m o r e , t h e o r i g i n a l l y p l a n n e d g o a l f o r a 1 * 2 , 0 0 0 m i l e 

i n t e r s t a t e h i g h w a y s y s t e m h a s n o w b e e n r e a c h e d , a n d p l a n s h a v e b e e n l a i d f o r 

i t s e x t e n s i o n . T h e i n t e r s t a t e h i g h w a y s y s t e m i s p r o b a b l y n o t y e t i n i t s p e a k 

m a i n t e n a n c e p e r i o d , a l t h o u g h a n n u a l m a i n t e n a n c e c o s t s n o w r u n a b o u t t w i c e 

t h e a n n u a l c o n s t r u c t i o n e x p e n d i t u r e s ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 b ) . 

D u e t o t h e i n c r e a s e d f u e l e c o n o m i e s o f l o w e r h i g h w a y s p e e d a n d s m a l l p e r s o n a l 

v e h i c l e s , i t i s l i k e l y t h a t H i g h w a y T r u s t F u n d c o n t r i b u t i o n s ( d e r i v e d f r o m 

f u e l t a x e s ) w i l l d e c r e a s e . H o w e v e r , r i s i n g m a i n t e n a n c e c o s t s w i l l a c c r u e 

a s t h e s y s t e m m a t u r e s u n d e r c o n t i n u e d u s e . T h u s , t h e r e i s a h i g h p r o b a b i l i t y 

t h a t t h e F e d e r a l H i g h w a y T r u s t F u n d w i l l h a v e t o b e c o n v e r t e d f r o m a c o n s t r u c ­

t i o n t o a h i g h w a y m a i n t e n a n c e f u n d , a n d t h e f u e l t a x o n c a r s a n d t r u c k s m a y 

h a v e t o b e i n c r e a s e d .

F i g u r e 1 s h o w s t h e g r o w t h o f h i g h w a y c o n s t r u c t i o n ( a n d r e c o n s t r u c t i o n ) , 

a n d o f h i g h w a y m o t o r f r e i g h t b e t w e e n 1 9 2 9 a n d 1 9 7 2 . T h e m i l e a g e r e p r e s e n t s 

t h e " t r a v e l e d w a y , " a n d d o e s n o t d i s t i n g u i s h b e t w e e n m u l t i l a n e h i g h w a y s .

A f t e r W o r l d W a r I I , t h e e x p a n s i o n i n h i g h w a y c o n s t r u c t i o n w a s f o l l o w e d b y 

a r a p i d e x p a n s i o n i n f r e i g h t h a u l i n g . D u e t o t h e d e c l i n e i n t h e h i g h w a y 

b u i l d i n g r a t e o n e m i g h t e x p e c t a n e v e n t u a l l e v e l i n g o f f o f t r u c k f r e i g h t m o v e ­

m e n t . H o w e v e r , t h e y e a r s 1 9 5 6 t o 1 9 7 2 r e p r e s e n t a l a r g e p o r t i o n o f m u l t i l a n e , 

i n t e r s t a t e H i g h w a y T r u s t F u n d c o n s t r u c t i o n t h a t w a s p a r t i c u l a r l y u s e f u l t o 

t h e t r u c k i n g i n d u s t r y . M o s t o f t h e h i g h w a y c o n s t r u c t i o n i n F i g u r e 1 w a s f o r 

n e w h i g h w a y s a s o p p o s e d t o r e c o n s t r u c t i o n . F o r e x a m p l e , t h e t o t a l l e n g t h 

o f f e d e r a l - a i d h i g h w a y s i n c r e a s e d b y 2 9 0 p e r c e n t f r o m 1 9 ^ 0 t o 1 9 6 9 ( B u r e a u

o f t h e C e n s u s , 1 9 7 1 , T a b l e 8 3 8 ) , d u r i n g w h i c h t i m e t h e t o t a l l e n g t h o f
1 1 2 4

r a i l r o a d s a c t u a l l y s h r a n k .

F i g u r e s 2 a n d 3 g i v e a m o r e d e t a i l e d v i e w o f t h e a d e q u a c y o f r a i l r o a d 

m a i n t e n a n c e e x p e n d i t u r e s . F i g u r e 2 s h o w s t h e p r e c i p i t o u s d e c l i n e i n n e w 

r a i l l a i d p e r y e a r s i n c e 1 9 ^ 5 • I t i s a p p a r e n t t h a t r a i l r o a d o w n e r s d e c i d e d 

t o a b a n d o n t h e b u s i n e s s i n t h e e a r l y 1 9 5 0 ' s , i n s p i t e o f t h e s t e a d y - t o - r i s i n g 

f r e i g h t b u s i n e s s . F i g u r e 3 s h o w s t h e d e c l i n i n g c o n s t a n t d o l l a r o f r i g h t - o f - 

w a y m a i n t e n a n c e p e r t o n m i l e o f f r e i g h t h a u l e d . A t t h e s a n e t i m e , t h e a v e r ­

a g e s p e e d o f f r e i g h t t r a i n s w a s i n c r e a s i n g u n t i l a b o u t 1 9 6 2 o r 1 9 6 3 , w h e n , 

a p p a r e n t l y , i n a d e q u a t e t r a c k m a i n t e n a n c e o v e r c a m e t h e e f f i c i e n c i e s o f u n i t

t r a i n s a n d d i e s e l - e l e c t r i c l o c o m o t i v e s .

R a i l r o a d s h a v e i n c r e a s e d c u r r e n t d o l l a r e x p e n d i t u r e s o n r i g h t - o f - w a y 

b y p e r c e n t b e t w e e n I 9 6 0 a n d 1 9 7 0 , a l t h o u g h t o t a l t r a c k m i l e s d e c r e a s e d 

a l m o s t l h p e r c e n t s i n c e 1 9 3 9 ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 b , T a b l e 

1 0 ; A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 a , p . 1 * 8 ) . T h e y h a v e m a d e t w o 

m a j o r m a i n t e n a n c e r e d u c i n g i n n o v a t i o n s i n t h e l a s t t e n y e a r s : r o l l e r w h e e l

b e a r i n g s a n d c o n t i n u o u s w e l d e d r a i l .

T h e m o s t r e v e a l i n g r a i l r o a d m a i n t e n a n c e s t a t i s t i c , h o w e v e r , i s t h e 

r i s i n g n u m b e r o f m a i n t e n a n c e r e l a t e d t r a i n a c c i d e n t s s h o w n i n F i g u r e 3 .

T h e a c c i d e n t r a t e m o r e t h a n q u a d r u p l e d b e t w e e n I 9 6 0 a n d 1 9 7 0 , d u r i n g w h i c h 

p e r i o d t h e t o n m i l e s h a u l e d i n c r e a s e d b y 3 3 p e r c e n t , a n d p a s s e n g e r m i l e s d e ­

c l i n e d . A n e x a m i n a t i o n o f t h e l i a b i l i t i e s r e c o r d f r o m 1 9 6 5 t o 1 9 7 1 ( M o o d y ' s 

I n v e s t o r S e r v i c e , 1 9 7 3 , p . a 1*9) f o r a l l U . S . r a i l r o a d s s h o w s t h a t w h i l e s h a r e ­

h o l d e r s ' e q u i t y i n c a p i t a l s t o c k d e c l i n e d a b o u t 5 p e r c e n t , t h e i n s u r a n c e a n d 

c a s u a l t y r e s e r v e i n c r e a s e d b y 2 3 5 p e r c e n t ( c u r r e n t d o l l a r s ) , i n d i c a t i n g t h a t 

t h e r a i l r o a d c o m p a n i e s h a v e c h o s e n t h e t e r m i n a l s o l u t i o n o f s u b s t i t u t i n g 

i n s u r a n c e p r e m i u m s f o r r i g h t - o f - w a y m a i n t e n a n c e .
1 1 2 5

G o v e r n m e n t R e g u l a t i o n

A b o u t l U . 5 p e r c e n t o f a l l b a r g e f r e i g h t ( U . S . D e p a r t m e n t o f t h e A r m y , 

C o r p s o f E n g i n e e r s , 1 9 7 1 ) , a b o u t 3 6 p e r c e n t o f a l l t r u c k f r e i g h t ( M o o d y ' s 

I n v e s t o r S e r v i c e , 1 9 7 3 , p . a 6 U ) , a n d 1 0 0 p e r c e n t o f a l l r a i l f r e i g h t i s c o n ­

t r o l l e d b y t h e f e d e r a l g o v e r n m e n t ' s I n t e r s t a t e C o m m e r c e C o m m i s s i o n ( I C C ) .

F o r e x a m p l e , m o s t d r y a n d a l l l i q u i d c o m m o d i t i e s c a r r i e d o n b a r g e s a r e e x e m p t 

f r o m I C C r e g u l a t i o n ( K e a r n e y : M a n a g e m e n t C o n s u l t a n t s , 1 9 7 ^ , p p . 1 1 - 1 2 ) . 

B a r g e s a l s o r e c e i v e a s u b s i d y i n t h e f o r m o f f e d e r a l l y g u a r a n t e e d l o a n s a n d 

m o r t g a g e s o n t h e i r e q u i p m e n t t h r o u g h t h e M a r i t i m e A d m i n i s t r a t i o n ( M o o d y ’ s 

I n v e s t o r S e r v i c e , 1 9 7 3 , p . a l 0 9 ; U . S . P u b l i c L a v 9 2 - 5 0 7 ) . T h e p o v e r o f 

I C C r e g u l a t i o n s o v e r t r u c k i n g i s l e s s s e v e r e t h a n f o r r a i l r o a d s ( M o o d y ' s 

I n v e s t o r S e r v i c e , 1 9 7 3 , p . a 6 U ) . W i t h i n t h e t r u c k i n g i n d u s t r y t h e g r o w t h 

o f p r i v a t e , u n r e g u l a t e d c a r r i e r s i s m u c h g r e a t e r t h a n t h a t o f t h e r e g u l a t e d 

c o m m o n c a r r i e r ( M o o d y ' s I n v e s t o r S e r v i c e , 1 9 7 3 , p . a 6 U ) i n d i c a t i n g t h a t t h e 

r e g u l a t e d p r i c e i s t o o h i g h .

O n e s u s p e c t s t h a t w h e n p a r t o f a n i n d u s t r y i s u n r e g u l a t e d , t h a t p a r t 

t e n d s t o e x p e r i e n c e r e l a t i v e g r o w t h , s i n c e t h e p u r p o s e o f r e g u l a t i o n i s 

g e n e r a l l y t o l e v e l o u t c o m p e t i t i v e a d v a n t a g e . O n e o f t h e p r o b l e m s o f p a r ­

t i a l r e g u l a t i o n i s , o f c o u r s e , t h a t i t s u c c e e d s i n h a m p e r i n g t h e r e g u l a t e d , 

b u t t h e n f a i l s t o s t o p o r m o d i f y i t s p r o c e d u r e s b e c a u s e t h e c o l l e c t i v e p o w e r 

o f t h e u n r e g u l a t e d p r e v e n t s a c h a n g e i n t h e r e g u l a t i o n p r o c e d u r e . A f u r t h e r 

p r o b l e m o f p a r t i a l r e g u l a t i o n i s t h a t t h e p r i v a t e u n r e g u l a t e d c a r r i e r s t e n d 

t o o n e - w a y h a u l i n g , i . e . , t h e y h a u l t h e i r p r o d u c t t o i t s d e s t i n a t i o n a n d 

r e t u r n e m p t y . T h i s i s p a r t i c u l a r l y t r u e i n t r u c k i n g a n d b a r g i n g , a n d t o 

s o m e e x t e n t t r u e i n r a i l r o a d s b e c a u s e o f t h e d i v e r s i t y o f p r i v a t e l y o w n e d 

r i g h t s - o f - w a y . S u c h a p r o c e s s i s n o t a s f u e l e f f i c i e n t a s c o n t r a c t c a r r i e r s
1 1 2 6

w h o o f t e n h a u l f r e i g h t i n b o t h d i r e c t i o n s . A n o t h e r p r o b l e m o f p a r t i a l r e g u ­

l a t i o n o r o f d i v e r s e p r i v a t e r i g h t - o f - w a y o w n e r s h i p i s t h a t o f t h e " G a t e w a y . "

I n o r d e r t o r e d u c e c o m p e t i t i o n o r a v o i d t r a v e l o v e r a c o m p e t i t o r ' s r i g h t - o f - 

w a y , v e h i c l e s a r e r o u t e d a w a y f r o m t h e m o s t d i r e c t c o u r s e t o a s p e c i f i e d d e s ­

t i n a t i o n . S u c h p r a c t i c e s a r e m o r e r e s o u r c e c o n s u m i n g ( e n e r g y c o n s u m i n g , i n 

p a r t i c u l a r ) a n d a r e c o n t r o l l a b l e t h r o u g h a u n i f o r m r e g u l a t o r y s c h e m e , a n d 

u n i f o r m o w n e r s h i p o f t h e r i g h t - o f - w a y .

I n s e t t i n g t h e r a t e f o r a g i v e n p r o d u c t w i t h a s p e c i f i e d o r i g i n a n d 

d e s t i n a t i o n , t h e I n t e r s t a t e C o m m e r c e C o m m i s s i o n i s i n c l i n e d t o u s e c a r r i e r

c o s t s t o d e t e r m i n e t h e c h e a p e s t p o s s i b l e r a t e , e v e n t h o u g h t h e y h a v e b e e n 

I n s t r u c t e d o t h e r w i s e ( i n t e r s t a t e C o m m e r c e C o m m i s s i o n , 1 9 7 3 ) . S u c h a p r o ­

c e d u r e o b v i o u s l y o m i t s t h e r i g h t - o f - w a y c o s t s b o r n e b y t h e p u b l i c . A s n o t e d 

a b o v e , t h i s i s a c o n s i d e r a b l e o m i s s i o n i n t h e w a t e r w a y s c a s e . T h e I C C a l s o 

u s e s d i s t r i b u t e d o r a v e r a g e c a r r i e r c o s t s , r a t h e r t h a n m a r g i n a l c o s t s , i n 

s e t t i n g r a t e s . T h i s l a t t e r p r o c e d u r e w o u l d n o t a l w a y s p r o d u c e t h e l o w e s t 

p o s s i b l e r a t e .

F i n a n c i a l S t a t u s

I n 1 9 7 2 , s e v e n t e e n r a i l r o a d c o m p a n i e s ( o u t o f a t o t a l o f n i n e t y - f o u r ) 

f a i l e d t o m e e t t h e f i x e d c h a r g e s o f t h e i r o p e r a t i o n ( A s s o c i a t i o n o f A m e r i c a n 

R a i l r o a d s , 1 9 7 3 a , p . U ) . T h e s i x t h r a i l c o m p a n y i n a s m a n y y e a r s f i l e d f o r 

b a n k r u p t c y ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 a , p . U ) . S i n c e 1 9 6 7 , 

o v e r 2 U , 0 0 0 m i l e s o f t r a c k h a v e b e e n p l a c e d i n r e c e i v e r s h i p ( M o o d y ' s I n v e s t o r 

S e r v i c e , 1 9 7 3 , p . a 7 9 ) .

N e t i n c o m e a s a p o r t i o n o f r e v e n u e w a s f o u n d t o b e 6 . 6 p e r c e n t f o r b a r g e s , 

3 . 9 p e r c e n t f o r r a i l , a n d 2 . 1 p e r c e n t f o r t r u c k s i n 1 9 7 3 . H o w e v e r , r e t u r n o n 

e q u i t y i s 1 0 . 6 p e r c e n t f o r b a r g e s , 2 . 7 p e r c e n t f o r r a i l , a n d 1 2 . 9 p e r c e n t f o r
1 1 2 7

i o

t r u c k s , c l e a r l y i n d i c a t i n g t h e s t r a i n e d e c o n o m i c s t a t e o f r a i l r o a d s ( K e a r n e y : 

M a n a g e m e n t C o n s u l t a n t s , 1 97 ** , p p . 1 1 - 1 2 ) .

R e s o u r c e D e m a n d s

I n t h i s s e c t i o n , t h e t o t a l e n e r g y a n d l a b o r r e q u i r e m e n t s i n m o v i n g o n e 

a v e r a g e t o n m i l e o f f r e i g h t b y t h e t h r e e m o d e s — b a r g e , t r a i n , a n d t r u c k — 

a r e c a l c u l a t e d . B e f o r e p r o c e e d i n g , h o w e v e r , a b r i e f e x p l a n a t i o n o f o u r E n e r g y 

Q n p l o y m e n t P o l i c y M o d e l i s n e c e s s a r y .

T o c a l c u l a t e t h e e n e r g y c o s t o f o n e u n i t o f a n i t e m , w e a s k : W h a t a r e 

t h e d i r e c t i n p u t s o f g o o d s a n d s e r v i c e s r e q u i r e d t o p r o d u c e t h a t i t e m ? F o r 

e a c h o f t h e s e i n p u t s , w e a s k : W h a t a r e t h e i r i n p u t s ? A n d s o w e c o n t i n u e

u n t i l w e r e a c h s u c h a m u l t i t u d e o f s m a l l i n p u t s t h a t l e a v i n g o f f t h e n e x t

r o u n d d o e s n o t s i g n i f i c a n t l y c h a n g e t h e t o t a l r e q u i r e m e n t s . F o r e x a m p l e ,

t h e d i r e c t i n p u t s r e q u i r e d t o p r o d u c e t h i s r e p o r t w e r e q u a n t i t i e s o f p a p e r , 

i n k , l a b o r , a n d p r i n t i n g m a c h i n e r y . T h e s e c o n d a r y r o u n d o f i n p u t s t o t h e 

p a p e r , f o r e x a m p l e , i n c l u d e d w o o d p u l p , c o t t o n , c l a y , l a b o r , a n d p a p e r ­

m a k i n g m a c h i n e r y . T h e t e r t i a r y r o u n d o f i n p u t s t o t h e w o o d p u l p i n c l u d e d

w o o d , c h e m i c a l s , l a b o r , a n d m a c h i n e r y . T h e p r o c e s s c o n t i n u e s a s a t r e e o f

i n p u t s , i n f i n i t e l y b r a n c h i n g . I n s o m e c a s e s , b r a n c h e s i n t e r l o c k , a s i n t h e 

c a s e o f t h e c o n s u m p t i o n o f p a p e r ( p a c k a g i n g , f o r e x a m p l e ) ir. m a k i n g i n k .

W i t h e a c h b r a n c h o f t h i s c o m p l e x t r e e o f i n p u t s , o n e c a n a s s o c i a t e t h e 

e n e r g y r e q u i r e d t o p r o d u c e t h e d e s i r e d u n i t . A d d i n g a l l t h e s e e n e r g i e s t o ­

g e t h e r y i e l d s t h e t o t a l e n e r g y r e q u i r e d p e r u n i t o f f i n a l o u t p u t .

A m o r e m a n a g e a b l e w a y t o a c c o m p l i s h t h e s a m e r e s u l t i s b a s e d o n i n p u t -

o u t p u t t h e o r y , f o r w h i c h W a s s i l y L e o n t i e f r e c e n t l y r e c e i v e d t h e N o b e l P r i z e

i n e c o n o m i c s . T h e k e r n e l o f t h e m e t h o d i s t o f i r s t d i v i d e ar. e c o n o m i c s y s t e m

i n t o r e c o g n i z a b l e s e c t o r s s u c h a s s t e e l p r o d u c t i o n , f e e d g r a i n p r o d u c t i o n
1 1 2 8

r a i l r o a d s e r v i c e s , e t c . T h e n f o r a g i v e n p e r i o d , u s u a l l y a y e a r , a s s u m e t h a t

t h e t o t a l d o l l a r o u t p u t o f a g i v e n s e c t o r i s t h e s u m o f a c e r t a i n f r a c t i o n 

o f t h e t o t a l d o l l a r o u t p u t o f e a c h s e c t o r o f t h e e c o n o m i c s y s t e m p l u s t h a t 

o u t p u t d e l i v e r e d f o r f i n a l c o n s u m p t i o n . T h e n e e d e d f r a c t i o n s a r e f o u n d f r o m

a c t u a l d o l l a r - t r a n s a c t i o n d a t a b e t w e e n e a c h s e c t o r a n d a l l t h e o t h e r s . T h e

r e s u l t i s a s e t o f e q u a t i o n s i n w h i c h t h e t o t a l s e c t o r o u t p u t s a r e t h e u n ­

k n o w n s . T h e o b j e c t o f t h e m e t h o d i s t o s i m u l t a n e o u s l y s o l v e t h e s e e q u a t i o n s 

f o r t h e t o t a l s e c t o r o u t p u t s . T h e p r o c e s s r e q u i r e s l a r g e , m o d e r n c o m p u t e r s 

i f t h e e c o n o m y i s d i v i d e d i n t o m a n y s e c t o r s .

T h e r e s u l t i s a s e c o n d s e t o f e q u a t i o n s , t h i s o n e e x p r e s s i n g t h e t o t a l 

d o l l a r o u t p u t o f e a c h s e c t o r a s t h e s u m o f a c e r t a i n f r a c t i o n o f e a c h s e c t o r ' s 

d e l i v e r i e s t o f i n a l c o n s u m p t i o n . T h e s u m o f t h e f r a c t i o n s r e q u i r e d f o r o n e 

u n i t o f a g i v e n s e c t o r ' s d e l i v e r i e s t o f i n a l c o n s u m p t i o n i s c a l l e d t h e d o l l a r 

i n t e n s i t y o r o u t p u t m u l t i p l i e r f o r t h a t s e c t o r . F o r e x a m p l e , w e m i g h t f i n d 

t h a t a d o l l a r ' s w o r t h o f o u t p u t o f a u t o m o b i l e s f o r c o n s u m p t i o n r e q u i r e s a 

t o t a l o f t h r e e d o l l a r s w o r t h o f o u t p u t s f r o m t h e o t h e r s e c t o r s . T h e n w e s a y 

t h a t t h e d o l l a r i n t e n s i t y ( o r m u l t i p l i e r ) f o r a u t o m o b i l e s i s t h r e e . T h i s 

i n t e n s i t y w o u l d i n c l u d e , f o r e x a m p l e , t h e v a l u e o f a l l t h e s t e e l p r o d u c t i o n 

r e s u l t i n g f r o m t h e d o l l a r ' s w o r t h o f c o n s u m e r d e m a n d f o r a u t o s , w h i c h w o u l d 

i n t u r n i n c l u d e t h e v a l u e o f t h e s t e e l c o n s u m e d d i r e c t l y b y t h e a u t o m a n u f a c ­

t u r i n g p l a n t s , a n d t h e v a l u e o f 3 t e e l c o n s u m e d i n d i r e c t l y — i n r e p l a c i n g d e ­

p r e c i a t e d t r u c k s w h i c h d e l i v e r a u t o s t o s a l e s r o o m s , p e r h a p s .

W i t h k n o w l e d g e o f t h e w a y i n w h i c h e n e r g y i s d i r e c t l y c o n s u m e d b y e a c h 

s e c t o r , d o l l a r f l o w s c a n b e t r a n s f o r m e d i n t o e n e r g y f l o w s , i n B r i t i s h t h e r m a l 

u n i t s ( B t u . ) , o f a g i v e n t y p e o f e n e r g y ( c o a l , o i l , e l e c t r i c i t y , n a t u r a l g a s , 

e t c . ) . T h u s , o n e c a n d e r i v e t h e e n e r g y m u l t i p l i e r f o r a u n i t o f d e l i v e r y 

t o f i n a l c o n s u m p t i o n b y a g i v e n s e c t o r . D o l l a r o u t p u t s c a n s i m i l a r l y b e
1 1 2 9

1 2

c o n v e r t e d t o e m p l o y m e n t f i g u r e s ( b y o c c u p a t i o n ) , a m o u n t s o f p o l l u t i o n ( b y 

t y p e ) , l a n d u s e , e t c .

T h e U . S . D e p a r t m e n t o f C o m m e r c e h a s c o l l e c t e d s u f f i c i e n t d o l l a r d a t a 

o n 3 6 3 s e c t o r s o f t h e e c o n o m y f o r t h e y e a r s 1 9 6 3 a n d 1 9 6 7 t o . e n a b l e t h e c a l ­

c u l a t i o n s d e s c r i b e d a b o v e t o b e m a d e . W e h a v e t r a n s f o r m e d t h e 1 9 6 3 s e c t o r 

d o l l a r f l o w s t o e n e r g y f l o w s b e t w e e n s e c t o r s a n d d e v e l o p e d t h e t o t a l e m ­

p l o y m e n t r e q u i r e m e n t s f o r e a c h s e c t o r i n 1 9 6 3 ( H e r e n d e e n , 1 9 7 3 ; s e e a l s o 

H a n n o n , 1 9 7 *; B e z d e k e t a l . , 1 9 7 3 ) .

T o a p p l y t h e m o d e l t o a s p e c i f i c t r a n s p o r t a t i o n m o d e o n e m u s t f i r s t 

d e t e r m i n e t h e f r a c t i o n a l b r e a k d o w n o f t h e d o l l a r c o s t o f a t o n m i l e o f 

f r e i g h t . T h e s e c a t e g o r i e s m i g h t b e p u r c h a s e s o f f u e l , m a c h i n e r y , b u i l d i n g s , 

e q u i p m e n t a n d r i g h t - o f - w a y m a i n t e n a n c e , i n s u r a n c e , f i n a n c i n g , r i g h t - o f - w a y 

c o n s t r u c t i o n , e t c . T h e s e v a l u e s m u s t b e d e f l a t e d t o t h e y e a r 1 9 6 3 a n d 

i d e n t i f i e d w i t h t h e a p p r o p r i a t e s e c t o r i n t h e m o d e l . T h e d o l l a r v a l u e s i n 

e a c h s e c t o r a r e t h e n s i m p l y m u l t i p l i e d b y t h e e n e r g y m u l t i p l i e r f r o m t h e 

m o d e l ( d i r e c t f u e l e n e r g y i s t a b u l a t e d d i r e c t l y f r o m u s e r d a t a ) a n d s u m m e d 

t o t h e t o t a l d i r e c t a n d i n d i r e c t e n e r g y p e r t o n m i l e o f f r e i g h t b y t h a t p a r ­

t i c u l a r m o d e . T h e r e s u l t s a r e g i v e n i n T a b l e 2 . T h e t r u c k f r e i g h t s y s t e m 

i s o b v i o u s l y m o r e e x p e n s i v e t h a n t h e r a i l f r e i g h t s y s t e m , p e r t o n m i l e .

T h e s e c o s t d i f f e r e n t i a l s r e f l e c t t h e t r u c k s y s t e m ' s g r e a t e r f l e x i b i l i t y a n d 

s p e e d . T h e y a l s o d e m o n s t r a t e t h e e f f e c t s o f a i r d r a g a n d t h e s t r o n g e r r a i l ­

r o a d l a b o r u n i o n . C i r c u i t y , t h e a c t u a l t r a v e l e d d i s t a n c e d i v i d e d b y t h e 

s t r a i g h t l i n e d i s t a n c e b e t w e e n o r i g i n a n d d e s t i n a t i o n , i s n e a r l y t h e s a m e 

f o r r a i l a n d t r u c k ( E e z d e k a n d H a n n o n , 1 9 7 3 ) b u t b a r g e c i r c u i t y i s 3 8 p e r c e n t 

g r e a t e r t h a n r a i l ( S e b a l d , 1 9 7 *) a s s e e n i n T a b l e 1 .
1 1 3 0

1 3

I t i s a p p a r e n t t h a t i n i t i a l l y a m o v e f r o m t r u c k t o r a i l s h i p p i n g w o u l d 

s a v e e n e r g y , r e d u c e d o l l a r c o s t , a n d r e d u c e e m p l o y m e n t . S o m e o f t h e d o l l a r

c o s t r e d u c t i o n w o u l d p r o b a b l y b e r e q u i r e d t o b u i l d , o p e r a t e , a n d m a i n t a i n

e x p a n d e d r a i l r o a d t e r m i n a l f a c i l i t i e s . N e v e r t h e l e s s , t h e f o l l o w i n g c a l c u ­

l a t i o n s a r e i n s t r u c t i v e . A s s u m i n g t h a t a v e r a g e a n d m a r g i n a l c o s t s p e r t o n 

m i l e a r e e q u a l , a n d t h a t t h e c o s t d i f f e r e n c e s h o w n i n t a b l e 2 p e r s i s t t h r o u g h ­

o u t t h e c h a n g e p e r i o d , a b o u t $ 2 8 b i l l i o n d o l l a r s w o u l d h a v e b e e n f r e e d i n 

1 9 7 1 h a d a l l i n t e r c i t y t r u c k f r e i g h t m o v e d b y r a i l . U n d e r t h e s a m e a s s u m p ­

t i o n a b o u t c o s t s , t h e s w i t c h t o r a i l w o u l d h a v e s a v e d a b o u t 1 9 0 m i l l i o n 

b a r r e l s o f o i l ( e n e r g y e q u i v a l e n t ) i n 1 9 7 1 , a n d d i s e m p l o y e d a b o u t ^ 5 0 , 0 0 0 

w o r k e r s . I f t h e $ 2 8 b i l l i o n w a s a b s o r b e d a s a f e d e r a l t a x a n d s p e n t o n 

r a i l w a y c o n s t r u c t i o n ( B e z d e k a n d H a n n o n , 1 9 7 3 ) , t h e n e t s a v i n g s f r o m t h e 

s h i f t o f t r u c k f r e i g h t t o r a i l w o u l d b e 1 0 0 m i l l i o n b a r r e l s o f o i l ( e n e r g y 

e q u i v a l e n t ) p e r y e a r , a n d a n e t i n c r e a s e o f 1 . 6 m i l l i o n J o b s .

F r o m T a b l e 2 w e f i n d t h a t i f a l l b a r g e t r a f f i c h a d m o v e d b y r a i l , f r e i g h t 

c o s t w o u l d h a v e i n c r e a s e d a b o u t $ h b i l l i o n p e r y e a r . A s s u m i n g t h i s c o s t i n ­

c r e a s e w a s p a s s e d t h r o u g h t o t h e c o n s u m e r , ( S e b a l d a n d H e r e n d e e n , 1 9 7 3 ) a n d 

r e d u c e d h i s g e n e r a l e x p e n d i t u r e s p r o p o r t i o n a t e l y , e n e r g y u s e w o u l d h a v e d e ­

c r e a s e d a b o u t h 8 m i l l i o n b a r r e l s o f o i l ( e n e r g y e q u i v a l e n t ) p e r y e a r , a n d 

1 3 0 , 0 0 0 J o b s w o u l d h a v e b e e n l o s t , i n 1 9 7 1 .

I n a p p l y i n g t h e m o d e l t o t h e c o n s t r u c t i o n o f h i g h w a y s a n d r a i l r o a d b e d s , 

i t w a s f o u n d t h a t t h e l a t t e r p r o c e s s i s m u c h l e s s e n e r g y d e m a n d i n g a n d s l i g h t l y 

m o r e l a b o r d e m a n d i n g t h a n t h e f o r m e r ( B e z d e k a n d H a n n o n , 1 9 7 3 ) . I t w a s a l s o 

s h o w n , u s i n g c u r r e n t l o a d f a c t o r s ( S e b a l d a n d H e r e n d e e n , 1 9 7 3 ) , t h a t r a i l 

p a s s e n g e r t r a n s p o r t i s m o r e e n e r g y e f f i c i e n t t h a n i n t e r c i t y t r a v e l b y a u t o , 

a l t h o u g h b u s t r a v e l w a s t h e m o s t e n e r g y e f f i c i e n t o f a l l p a s s e n g e r m o d e s
1 1 3 1

i u

( B e z d e k a n d H a n n o n , 1 9 7 3 ) .

T a b l e 3 s h o w s t h e f r e i g h t m o d e s ' s e n s i t i v i t y t o t h e d o l l a r v a l u e o f 

e n e r g y i n 1 9 6 3 . F r o m T a b l e 3 w e s e e t h a t t h e t h r e e t r a n s p o r t m o d e s s p e n d 

m o s t o f t h e i r e n e r g y d o l l a r o n r e f i n e d p e t r o l e u m . T h e s e c o n d m o s t i m p o r t a n t 

e n e r g y s o u r c e i n t e r m s o f d o l l a r c o s t i s e l e c t r i c i t y , f o l l o w e d b y n a t u r a l 

g a s a n d c o a l . R a i l r o a d s p a i d s l i g h t l y m o r e f o r a l l e n e r g y f o r m s t h a n d i d 

w a t e r t r a n s p o r t , a n d t r u c k s p a i d s u b s t a n t i a l l y m o r e t h a n r a i l r o a d s . A s 

a n e x a m p l e o f u s i n g t h e i n f o r m a t i o n i n T a b l e 3 , s u p p o s e t h a t t h e p r i c e o f 

r e f i n e d p e t r o l e u m d o u b l e d , a n d a l l p r i c e i n c r e a s e s w e r e f u l l y p a s s e d o n t o

t h e c o n s u m e r . T h e n t h e c o n s u m e r o f w a t e r t r a n s p o r t s e r v i c e s w o u l d s e e a 

3 . 6 p e r c e n t i n c r e a s e , t h e c o n s u m e r o f r a i l r o a d s e r v i c e s w o u l d s e e a 3 . 8 

p e r c e n t i n c r e a s e , a n d t h e c o n s u m e r o f m o t o r f r e i g h t s e r v i c e s w o u l d s e e a n 

i n c r e a s e o f U . 8 p e r c e n t , i n d o l l a r c o s t s . T h u s , t r u c k s w e r e 2 5 p e r c e n t m o r e 

s e n s i t i v e t o t h e p r o d u c e r ' s p r i c e o f r e f i n e d p e t r o l e u m t h a n w e r e r a i l r o a d s 

a n d r a i l r o a d s w e r e 7 p e r c e n t m o r e s e n s i t i v e t h a n w a t e r t r a n s p o r t . N o t e t h a t 

h e r e , w a t e r t r a n s p o r t i n c l u d e s o c e a n g o i n g v e s s e l s . T h e d o l l a r c o s t o f 

e n e r g y f o r i n l a n d w a t e r t r a n s p o r t i s p r o b a b l y h i g h e r t h a n s h o w n i n T a b l e 3 

d u e t o t h e l a c k o f s t r e a m l i n i n g o f b a r g e s , a n d t h e r e l a t i v e l y s m a l l l o a d s 

p e r b a r g e t o w . I c o n c l u d e , t h e r e f o r e , t h a t i n l a n d b a r g e s a n d r a i l r o a d s a r e 

a b o u t t h e s a m e i n s e n s i t i v i t y t o e n e r g y p r i c e s .

C o n c l u s i o n s

B a r g e s a n d t r a i n s a r e s t i l l c o m p e t i n g . C o m p e t i t i o n b e t w e e n t r u c k s a n d

t r a i n s h a s r e a c h e d e q u i l i b r i u m . B a r g e s a r e c u r r e n t l y r e s t r i c t e d b y l o c k f a c i ­

l i t i e s a n d c h a n n e l d e p t h . T r u c k s a r e m e e t i n g d i f f i c u l t i e s w i t h f u e l c o s t s , 

a n d u l t i m a t e l y w i l l b e r e s p o n s i b l e f o r m a j o r h i g h w a y m a i n t e n a n c e c o s t s . R a i l ­

r o a d s , o u t s u b s i d i z e d a n d r e l a t i v e l y o v e r r e g u l a t e d , a r e o n t h e v e r g e o f

5 4 - 2 3 9 0 - 7 5 - 7 2
1 1 3 2

1 5

f i n a n c i a l d i s a s t e r . T h e y b e g a n t o a b a n d o n m a i n t e n a n c e o f r i g h t - o f - w a y i n 

t h e m i d - f i f t i e s , a n d h a v e b e e n s u b s t i t u t i n g t h e l o w e r c o s t b u t s h o r t r u n 

a l t e r n a t i v e o f i n s u r a n c e r e s e r v e s t o c o v e r a c c i d e n t c o s t s . R a i l r o a d s h a v e 

b e e n p r o c e e d i n g i n t o b a n k r u p t c y a t a n i n c r e a s i n g r a t e s i n c e I 9 6 0 . B a r g e 

a n d t r u c k b u s i n e s s i s r e l a t i v e l y h e a l t h y . Y e t r a i l r o a d s r e p r e s e n t t h e s i n g l e 

b e s t c o m b i n a t i o n o f f l e x i b i l i t y a n d l o w r e s o u r c e d e m a n d s o f t h e t h r e e f r e i g h t 

m o d e s .

S u g g e s t i o n : T h e R a i l w a y T r u s t F u n d

I t i s p r o b a b l y t r u e t h a t s o n e g o v e r n m e n t r e g u l a t i o n b e g e t s m o r e . T o 

p r e s e r v e t h e r a i l r o a d s , t h e f e d e r a l a n d s t a t e g o v e r n m e n t s s h o u l d a b a n d o n a l l 

s u b s i d i e s o n b a r g e s a n d t r u c k s , a n d l e t t h e r a i l r o a d s c o m p e t e o n a n e q u a l 

f o o t i n g . T h i s m e a n s t h e c e s s a t i o n o f d i r e c t l y g u a r a n t e e d l o a n s a n d m o r t g a g e s 

t o t h e b a r g e c o m p a n i e s , a n d t h e c h a r g i n g o f t h e f u l l , a l l o c a b l e r i g h t - o f - w a y 

c o n s t r u c t i o n , o p e r a t i o n , a n d m a i n t e n a n c e c o s t s t o t h e b a r g e a n d t r u c k c o m ­

p a n i e s . S u c h a p r o c e s s w o u l d o b v i o u s l y m e e t w i t h s u b s t a n t i a l r e s i s t a n c e 

f r o m b a r g e a n d t r u c k c o m p a n i e s a n d t h e i r s u p p o r t i n g i n d u s t r i e s . I n c r e a s e d 

r e g u l a t i o n o f b a r g e s a n d t r u c k s , p r i v a t e c r c o n t r a c t , i s n e c e s s a r y t o p r o ­

t e c t t h e c o n t r a c t c a r r i e r f r o m p r i v a t e l y b a s e d , b u t l e s s e n e r g y - e f f i c i e n t , 

c o m p e t i t i o n . T h i s , t o o , w o u l d n o d o u b t b e u n p o p u l a r .

T h e o n l y a l t e r n a t i v e t o s u b s i d y r e m o v a l a n d d e r e g u l a t i o n i s a n e q u i t a b l e 

s u b s i d y a n d r e g u l a t i o n p r o g r a m f o r a l l t r a n s p o r t m o d e s . A n e v e n h a n d e d r e g u ­

l a t i o n s c h e m e c o u l d b e a d o p t e d b e g i n n i n g w i t h a s u b s t a n t i a l r e v i s i o n i n 

I n t e r s t a t e C o m m e r c e C o m m i s s i o n r a t e s e t t i n g p r o c e d u r e s . T h e I C C s h o u l d s t o p 

s e t t i n g r a t e s o n t h e b a s i s o f c o s t s d i r e c t l y i n c u r r e d b y t h e t r a n s p o r t m o d e 

( i n t e r s t a t e C o m m e r c e C o m m i s s i o n , 1 9 7 3 ) . S u c h a p r o c e d u r e o b v i o u s l y e x c l u d e s 

t h e c o s t , t o t h e p u b l i c , o f b a r g e a n d t r u c k s u b s i d i e s , a n d u n j u s t l y s l a n t s 

f r e i g h t r a t e s i n f a v o r o f t h e b a r g e a n d t r u c k m o d e s . M a r g i n a l c o s t ( i n c l u d i n g
1 1 3 3

1 6

r i g h t - o f - w a y u s e r c o s t s ) r a t e - s e t t i n g p r o c e d u r e s s h o u l d a l s o b e a d o p t e d .

M u c h m o r e c o m p l e t e r e p o r t i n g p r o c e d u r e s a r e n e e d e d f o r w a t e r w a y u s e r s .

T h e s e c o n d , a n d m a j o r , e q u i l i z a t i o n i s f o r t h e f e d e r a l g o v e r n m e n t 

t o a c q u i r e a l l r a i l r o a d b e d s , a n d t o s u i t a b l y r e c o n s t r u c t a n d m a i n t a i n 

t h e m . T h i s w o u l d i n c l u d e a c q u i s i t i o n o f a l l s t r u c t u r e s r e l a t e d s o l e l y 

t o t h e r a i l r o a d b e d , b u t w o u l d e x c l u d e s t r u c t u r e s r e l a t i n g t o t h e m a i n ­

t e n a n c e a n d o p e r a t i o n o f t h e r o l l i n g s x o c k . T h e s e l a t t e r b u i l d i n g s a n d 

t h e t r a n s p o r t e q u i p m e n t w o u l d r e m a i n i n p r i v a t e h a n d s .

S u c h a s c h e m e i s p o s s i b l e u n d e r S e c t i o n 1 . 0 2 o f t h e r e c e n t l y p a s s e d 

R a i l R e o r g a n i z a t i o n A c t ( P u b l i c L a w 9 3 - 2 3 6 ) . T h e a c t d o e s n o t p r e v e n t t h e 

U . S . " R a i l w a y A s s o c i a t i o n ( U S R A , e s t a b l i s h e d t o r e o r g a n i z e t h e N o r t h e a s t e r n 

R a i l w a y s ) f r o m t r a n s f e r r i n g a l l U . S . r o a d b e d a n d a s s o c i a t e d s t r u c t u r e s t o 

C o n o r a i l ( t h e p s e u d o - p r i v a t e g o v e r n m e n t c o r p o r a t i o n w h i c h w i l l o p e r a t e t h e 

r e o r g a n i z e d N o r t h e a s t e r n U . S . r a i l c o m p a n i e s ) . U n d e r t h i s p l a n a l l c u r r e n t 

r a i l w a y m a i n t e n a n c e e m p l o y e e s b e c o m e e m p l o y e e s o f C o n o r a i l , w h i c h s h o u l d 

e v e n t u a l l y b e c o m e a t o t a l l y p r i v a t e c o r p o r a t i o n . T h u s , t h e p r o b l e m o f c o n ­

v e r t i n g u n i o n l a b o r t o g o v e r n m e n t e m p l o y e e s i s a v o i d e d .

T o a i d i n t h e d e s i g n a n d c o n s t r u c t i o n - m a i n t e n a n c e s u p e r v i s i o n o f t h e 

U . S . r a i l r o a d b e d , I s u g g e s t t h a t a s u b s t a n t i a l f r a c t i o n o f t h e 3 0 , 0 0 0 

c i v i l i a n e m p l o y e e s o f t h e U . S . A r m y C o r p s o f E n g i n e e r s b e t r a n s f e r r e d t o 

C o n o r a i l ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 1 9 7 3 b , T a b l e l l ) . A p p r o x i m a t e l y 

1 2 , 0 0 0 o f t h e s e C o r p s p e r s o n n e l a r e i n v o l v e d i n t h e d e s i g n , c o n s t r u c t i o n ,

o p e r a t i o n , a n d m a i n t e n a n c e o f t h e n a t i o n ' s w a t e r w a y s ( O f f i c e o f M a n a g e m e n t 

a n d B u d g e t , 1 97 ** ). T h e r e m a i n d e r a r e b a s i c a l l y i n v o l v e d i n s t r u c t u r a l f l o o d 

c o n t r o l , w h i c h i s n o w n e g a t e d b y t h e p a s s a g e o f t h e n a t i o n a l F l o o d D i s a s t e r 

P r o t e c t i o n A c t o f 1 9 7 3 ( P u b l i c L a w 9 3 — 2 3 * * ) -
1 1 3 4

1 7

T h e c o s t o f o w n i n g t h e n a t i o n ' s r a i l r o a d b e d s i s p r o b a b l y a b o u t $ 6 b i l ­

l i o n a n n u a l l y , a b o u t t h e s i z e o f t h e c u r r e n t H i g h w a y T r u s t F u n d . H o w e v e r , 

i t i s l i k e l y t h e c h e a p e r o f t h e o n l y t w o a p p a r e n t a l t e r n a t i v e s : b u y t h e 

t r a c k s o r e v e n t u a l l y b u y t h e e n t i r e U . S . r a i l o p e r a t i o n .

T h e c o s t s h o u l d i n c l u d e t h e r a i l r o a d s ' a n n u a l c a r r y i n g c h a r g e o n r o a d b e d 

i n v e s t m e n t , a s u i t a b l e m a i n t e n a n c e e x p e n s e , a n d a p r o p e r t y t a x p r o g r a m ( p h a s e d 

o u t s l o w l y a s n e w a r e a b u s i n e s s d e v e l o p s ) . I n 1 9 7 1 t h i s a n n u a l c o s t w a s e s ­

t i m a t e d b y t h e r a i l r o a d s a t $ 3 . 2 b i l l i o n ( A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , 

1 9 7 3 b , T a b l e 1 1 ) . D o u b l i n g t h e i r m a i n t e n a n c e c o s t s t o c o r r e s p o n d t o t h e 1 9 5 0 

l e v e l ( s e e F i g u r e 3 , $ 1 . 6 b i l l i o n p e r y e a r ) , a n d a s s u m i n g a c o m p l e t e r e b u i l d ­

i n g p r o g r a m o v e r t h e n e x t t e n t o f i f t e e n y e a r s ( $ 1 . 2 b i l l i o n p e r y e a r ) , t h e 

R a i l w a y T r u s t F u n d w o u l d r e q u i r e a n a n n u a l c o m m i t m e n t o f a b o u t $ 6 b i l l i o n .

R e p a y m e n t o f t h e s e f u n d s c o u l d b e s c h e d u l e d b y t h e I n t e r s t a t e C o m m e r c e 

C o m m i s s i o n w h i c h s h o u l d r a i s e t h e r e p a y m e n t f r o m r a i l a n d b a r g e c o m p a n y s i ­

m u l t a n e o u s l y u n t i l t h e 5 0 p e r c e n t l e v e l i s r e a c h e d . T h e n t h e I C C s h o u l d i n ­

c r e a s e t h e r e p a y m e n t o f a l l t h r e e m o d e s s i m u l t a n e o u s l y . F a i l i n g t o e x t r a c t 

t h e f u l l u s e r s f e e s , t h e I C C s h o u l d a c t t o r e s t r i c t n o n t r a n s p o r t o r i e n t e d 

i n v e s t m e n t o n t h e p a r t o f a n y o f t h e r i g h t - o f - w a y u s e r s .

F o l l o w i n g t h i s g e n e r a l o u t l i n e o f t h e g o v e r n m e n t m o v i n g t o w a r d a n o v e r ­

a l l t r a n s p o r t p o l i c y o f e q u a l s u b s i d y a n d r e g u l a t i o n , a n d e v e n t u a l g o v e r n m e n t 

w i t h d r a w a l f r o m t h e p r o c e s s , s h o u l d n o t o n l y m a i n t a i n a f l e x i b l e , e f f i c i e n t 

n a t i o n a l t r a n s p o r t p r o c e s s , b u t s h o u l d a l s o p r o v i d e a m o d e l f o r t h e s t y l e o f

g o v e r n m e n t c o n t r o l i n o t h e r a c t i o n s .
1 1 3 5

1 8

A c k n o w l e d g e m e n t

M y t h a n k s t o D r . M i c h a e l R i e b e r , D r . C l a r k B u l l a r d I I I , D r . R o b e r t 

H e r e n d e e n , A n t h o n y S e b a l d , P e t e r P e n n e r f o r t h e i r t e c h n i c a l s u p p o r t ; t o 

D e b o r a h F o r m a n f o r h e r e d i t i n g , a n d t o M a r c i e H o w e l l f o r t h e d o c u m e n t 

p r e p a r a t i o n . M r . R o b e r t S m i l e y , P u b l i c C o u n s e l f o r t h e I C C w a s a l s o a 

g r e a t h e l p i n h i s e n c o u r a g e m e n t a n d i n t e r p r e t a t i o n o f t h e l a w .
1 1 3 6

1 9

ef er e n ce s

A m eri ca n Tr u c ki n g A s s o cia ti o n s, I n c. ( 1 9 7 3), D e p art m e nt of R es ea rc h a n d 

T ra n s p o rt, W as hi n g t o n, D. C. 2 0 0 3 6. A m eri ca n T r u c k i n g T re n d s, 1 9 7 3, p. 2 7.

A s s o cia ti o n c f A m eri ca n R ail r o a d s ( 1 9 2 0 L S t r e e t, W as hi n g t o n, D. C ., 1 9 7 3 a). 

Ye ar b o o k o f F.a ii rc a d F a c t s.

A s s o cia ti o n o f A m erica n R ail r o a d s, Ec o n o mics a n d Fi n a n ce D e p art m e nt ( 1 9 2 0 

L S t r e e t, W as hi n g t o n, D. C., 1 9 7 3 b). G o ver n m e nt E x p e n dit u re s f c r Hi g h wa y, 

W ater w a y, ar. d Air F a c iliti e s, a n d P ri v ate P x p er. dit v re s f o r R ail rc n d r a c l J i -

t l e s . T a b le s 5, 7, 1 0. 1 1.

B ez de k, R. a n d Ha n n o n, B. M. ( 1 9 7 3). E n er g y a n d Ma n p o wer E ff e cts o f A lt e r ­

n ate Us es o f t h e Hi g h wa y T r u st F u n d. C e n te r f o r A d va nce d C o m p u tati o n, D oc ume nt N o. 1 0 1, U ni v e r sit y o f I lli n o i s , Ur ba na.

B ez de k, R., Ha n n o n, B. M., a n d Na ka ga ma, S. ( 1 9 7 3 ). D e ri v ati o n o f t h e 1 9 6 3 

a n d 1 9 6 7 T ota l E m pl o y me nt V e ct or f o r 3 6 2 I/ O S e ct o r s. C e n te r f o r A d v a nc e d 

C o m p u tati o n, D oc u m e nt N o. 6 3, U ni v e rs it y o f I lli n o i s , Ur b a n a.

B ull a r d, C. W. ( 1 9 7 * *). E n er g y C o n se r v ati o n T h r o u g h T a x ati o n. C e nte r f o r 

A d v a nc e d C o m p u tati o n, D oc u me nt N o. 9 5 » U ni v e r sit y o f I lli n o i s , Ur b a n a.

C h u rc h, D. E. ( 1 9 7 0). " PI C A D A D - A S yste m f o r Ma c hi ne P r o c e ss i n g o f Ge o g rap hic a n d Dista n ce F a ct o r s i n T ra n s p o rt ati o n a n d M ar k eti n g D ata." U. S. 

De pa rt m e nt o f C o m m erce, B ur ea u o f t h e C e n s u s, W as hi n g t o n, D. C. ( A u g ust l ) .

Ha n n o n, B. M. ( 1 9 7 *)- O pti o n s f o r E n er g y C o n se r v ati o n. T ec h n ol o g y Re vie w , 

V ol. 7 6, N o. l », p p. 2 h - 3 1. ------------- ---------------

H er e n de e n, R. A. ( 1 9 7 3). Ar. E n er g y I n p ut- O ut p ut M atri x f o r t h e U nit e d S t a t e s, 

1 9 6 3: U s e r's G ui de. C e nte r f o r A d v a nce d C o m p utati o n, D oc u m e nt N o. 6 9, U niv e r sit y o f I lli n o i s , Ur b a n a.

I n t e r s t a t e C o m merce C o m missi o n ( 1 9 7 3). C ost Sta n d ar d s i n I n te r m o d al R at e 

P r o c e e di n g s. I C C 3 ^ 0 1 3, S u b. N o. 1.

Ke ar ne y: Ma na ge me nt C o n s ult a nts ( 1 0 0 S o ut h Wac ker D ri v e, C hi ca g o, 1 9 7 U ). 

D o me sti c W at er b o r n e S hi p pi n g — Ma r ket A n al y se s — E x ec uti v e S u m mar y.

M is s o uri P a cif ic R ail r o a d, T r a ffi c R es ea rc h D e p art m e nt ( 1 9 7 3). Ba r g e O ne rati o n.s a n d C o st s. ( E sti m ate d a v er a g e v al u e, d ata u n a v ail a ble fr o m b ar g e i n ­

d u str y. )

M o o d y's I n v e st o r S er v ic e ( 1 9 7 3 ). M o o d y's T r a n s p o rt ati o n M a n ual, 1 9 7 3.

M o o d y’ s I n v e st o r S e r v ic e (l 9 U l) . M o o d y's Ma n u al o f I n v e st m e nts, 1 9l *l.

Oe h ma n, J. C. a n d B ie la k, S. F. ( 1 9 7 0). A ll o c ati o n o f Hi g h wa y C ost Re s p o ns i b ilit y a n d Ta x Pa y m e nts, 1 9 6 9. U. S. D e p art m e nt o f T r a n s p o rta ti o n, B ur ea u 

o f P u bli c R oe ds, F e d era l Hi g h w a y A d m i n is tr ati o n.

O ffic e o f Ma na ge me nt a n d E u d g et ( 1 9 7 * *). T he B u d g et o f t h e U nit e d S t ate s 

G o v er n m e nt, F i s c al Ye ar 1 9 7 5, W as hi n gt o n, D. C.: S u p e ri nte n d e nt o f D o c u me nts, 

US GP O St o c k K o. 1 * 1 0 1- 3 0 0 8 9.
1 1 3 7

2 0

P e n n er, P ete r ( 1 9 7 U ). E n er g y a n d La b o r I n t e n sit y o f Cla ss I I n t e r c it y 

T r u c k i n g. C e nte r f o r A d va n ce d C o m p u tati o n, T e c h nic al Me mo 1 9, U ni v ers it y o f I lli n o i s , U r b a n a.

R o g er s, M. E. ( 1 9 7 *), “ T ra i n A c ci d e nts R e s ulti n g fr o m D efe cts i n o r I mp r o p er Use M ai nt e n a n ce o f Wa y & S tr u c t u r e s, " l e t t e r , 2 9 Mar c h 1 9 7 * *, O ff ic e 

o f S a f et y , F e d e ra l R ail r o a d A d m i n is tr ati o n.

S e b al d, A. ( 1 9 7 *). E n er g y I n t e n sit y o f Ba r g e a n d R ail r o a d F r ei g ht H a uli n g, 

C e n te r f o r A d va nce d C o m p utati o n, T e c h nic al Me mo 2 0, U ni v e r sit y o f I lli n o i s , 

U r b a n a.

S e b al d, A. a n d H er e n de e n, R. A. ( 1 9 7 3). T he D oll a r, E ne r g y, a n d E m pl o y m e nt 

I m pa ct s o f A ir, R ail , ar. d A ut o P a ss e n g er T r a n s p o rta ti o n. E n er g y R es ea rc h 

Gr o u p R e p ort t o E n er g y P oli c y P r o j e ct, 1 7 7 6 M a ss a c h u se tt s A v e n ue, N. W., 

W as hi n g t o n, D. C.

S w if t, J. V. a n d S p e n c er, N. ( 1 9 7 3). P a n el dis c u s si o n s o f w ate r re s o u rc e 

p oli c y i s s u e s. T he Water wa ys J o u r n al, N o v. 1 0, 1 9 7 3, 3 1.

U. S. D e p art m e nt o f t h e Ar m y, C o r ps o f E n gi n e ers ( 1 9 7 1 ). W at er b o r n e 

C o m merce o f t h e U nit e d S t a t e s. P a rt 5, T a b le 2.

U. S. D e p art m e nt o f C o m merce ( 1 9 6 6, 1 9 6 8, 1 9 7 2 ), S u r v e y o f C u rr e nt B u si n e s s, 

I nc o me a n d P r o d u ct A cc o u nt s o f t h e U . S ., T a b le 8. 1, p ric e d e fl a t o r s f o r n o nr e si d e n ti a l st r u c t u r e s.

U. S. D e p art m e nt o f C o m m erce, B u re a u o f t h e Ce ns us ( 1 9 7 1). S t a ti s ti c a l 

A b str a ct o f t h e U nit e d S t a t e s, 1 9 7 1. T a b le 8 3 S. A s s o cia ti o n o f A m eri ca n 

R ail r o a d s ( 1 9 7 3 a, p. 3 6) ( R efe re n ce s f o r Fi g u re l ) .

U. S. D e p art m e nt o f C o m m erce, B u re a u o f Ec o n o mic A n al y si s ( 1 9 6 9). I n p utO ut p ut S tr u ct u r e o f t h e U nit e d S ta te s Ec o n o m y, 1 9 6 3. V ol. 3.

U. S. De pa rt m e nt o f C o m m erce, S u r v e y o f C u rr e nt B u si n es s ( 1 9 7 2 ). I nc o m e a n d 

P r o d u cts A cc o u nt s o f t h e U nit e d S t a t e s. T a b le 8. 1 .

U. S. D e p art m e nt o f T r a n s p o rta ti o n, O ff ic e o f S y ste m s A n al y si s a n d I n f o r m ati o n 

( 1 9 7 2). S u m mar y o f N ati o n al I r a r. s r o rt ati o n S t a ti s ti c s .

U. S. P u bli c La w 9 2 - 5 0 7 (a m e n d me nt t o t h e 1 9 3 6 M er c h a nt M ari n e A ct).
1 1 3 8

S p ee d ^ \ Mil es/ H o u r

2 1

B *r ge

( a )

6 <

R a i J

2 0

( f )

Tr uc k

1*0

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Mil es o f Ri g ht - o f- W a y

2 5 , 0 0 0 ^ 3 3 5, O O O

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d )

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1. 7 0 1. 2 5 1. 2 0

Re ve n u e, ( C e nts ) P er T o n 

Mil e

( j )

0. 2 9 1. 3 5 7. 2 1

(a ) I n la n d B ar g es ; i n cl u d e s i n t r a - a n d i n t e r - c o a st a l a n d G re at La ke s m o ve m e nt.

( b ) A v era ge r o ute s p ee d: i n cl u d e s w aiti n g f o r l o c k s, "sl o w o r d e r s," e t c.

Ba r g e s p ee d i s u p st re a m - d o w nstr ea m, l o a d e d - u nl o a d e d a v er a g e o n M is sis si p pi 

a n d O hi o R i v e r s. Tr uc k s p ee d: J o h n R eit h, A s sis ta nt D ir e ct o r, D e p art m e nt 

o f R es ea rc h a n d T ra n s p o rt Ec o n o m ic s, A m eri ca n T r u c k i n g A s s o cia ti o n, I n c ., 

W as hi n g t o n, D. C ., 1 9 Marc h 1 9 7 * ( p e rs o n al e sti m ate , U 0- U 2 m p h).

(c ) Cla ss I r a ilr o a d s a n d Cla ss I i n t e r c it y tr u c k s.

( d ) Pri m ar y a n d se c o n d ar y f e d e r al- ai d o nl y , U. S. De pa rt m e nt o f C o m merce ( 1 9 7 1 1

( e ) M is s o uri P a cif i c ( 1 9 7 3).

( f ) A s s o cia ti o n o f A m erica n R ail r o a d s ( 1 9 7 3 a, p. 1 *3,1 *1 *).

( g ) Ke ar n e y ( 1 9 7 *. p. 1 7 ).

( h ) U. S. D e p art m e nt o f T r a n s p o rt ati o n ( 1 9 7 2, p. 2 5, 3 0 ). A s s o cia ti o n o f 

A m eri ca n R ail r o a d s ( 1 9 7 3 a, p. 3 5).

(j ) U. S. De pa rt m e nt o f T r a n s p o rt ati o n ( 1 9 7 2, p. 3 8 ).

( k ) A v er a g e d e via ti o n fr o m g r e at c ir c l e d i st a n c e. B ar ge; S e b al d ( 1 9 7 U ).

R ail a n d tr u c k ; C h urc h ( 1 9 7 0).

T a ble 1. T he A ve ra ge S pe e d ( 1 9 7 0), Ra n ge ( 1 9 7 0 ), Mil es o f Ri g ht - o f- W a y ( 1 9 7 1 ), 

a n d Re v e n u e ( 1 9 6 9) P er T o n Mile f o r I n t e r c it y B ar g e, R ail a n d T r u c k.
1 1 3 9

2 2

C ost o r - T ota l E m pl o y m e nt

M ode Re ve n u e, C e n ts T ota l E n er g y Use De ma nd

T r u c k

( c )

8. 0 Ul O O 2. U

R ail F r ei g h t

( b 5

1. 6 1 6 0 0 l. U

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( d )

0. 3 1 6 0 0 0. 6

T r u c k/ R ail R ati o 5. 0 2. 6 1. 7

B ar g e/ R ail R ati o 0. 2 1. 0 o.i »

(a ) C osts a r e : D oll a r s a n d e n er g y: C e nts a n d Bt u p e r t o n m il e; E m pl o y m e nt,

m a n - y ea rs p e r m il li o n t o n m il e s. E m pl o y m e nt d o es n ot i n cl u d e h o u se h ol d 

o r g o ve r n me nt i n d u st ri e s. All c o sts a r e f o r s e r v i c e s gi v er, bet w ee n m o de 

te r m i n als o nl y . M ote t h a t t h e s e d ata a r e t h e a v er a g e f o r t h e e n ti r e 

m o de.

( b ) T he r a ilr o a d c o m pa ni es w hic h c o m p ete d i r e c tl y w it h t h e b a r g e s a r e s o me ­

w h at ( 1 3 3 0 Bt u/ T rl) m or e e n er g y e f fi c i e n t t h a n t a r g e s. T he t r a i l e r t r a i n , 

h a uli n g tr u c k s (" pi g g y b a c k "), c o m pete s d i r e c tl y wit h l o n g - dis ta n c e hi g h ­

wa y tr u c k i n g, a n d i s s u b st a n ti a ll y l e s s e n er g y e f fi c i e n t t h a n t h e a v er a g e 

f o r r a il s h o w n a b o v e. See S e b al d ( 1 9 7 ^ ), S e b al d a n d H er e n de e n ( 1 9 7 3 ).

(c ) D oll ar c o st: A m eri ca n Tr u c ki n g A s s o cia ti o n s, I n c. ( 1 9 7 3). E n er g y 

a n d La b or c o st s: Pe n n er ( 1 9 7 4). D oes n ot i n cl u d e f u ll ri g ht- o f- w a y 

c o st s.

( d ) Ba r g e d o ll a r c o st e sti m ate d fr o m ( U . S. D e p art m e nt o f T r a n s p o rta ti o n, 

1 9 7 2, p. 3 8 ); d o es n ot i n cl u d e ri g ht- o f- w a y c o st. E ne r g y: d i r e c t 

( S e b al d, 1 9 7 M, i n d ir e ct f r a c ti o n ass u m e d e q u al t o t h a t o f r a il r o a d s. 

L a b or; ( A s s o cia ti o n o f A m eri ca n R ail r o a d s, 1 9 7 3 a, p. 3 6; Be z u e k et a l., 

1 9 7 3; U. S. D e p art m e nt o f C o m merc e, 1 9 6 9; B ull a r d, 1 9 7 * »). C ir c u it y o f 

r a il a n d tr u c k a p p r o xi m at el y e q u al ( E ez de k a n d Ha n n o n, 1 9 7 3 ). Ba r ge 

c ir c u it y i s 3 8 p e rc e nt g r e at e r t h a n r a il ( S e b al d, 1 97 * <) a n d t h e a b o v e 

b ar g e c o sts we re i n c re a s e d a c c o r di n gl y t o c o m pare wit h tr u c k a n d r a i l.

T a ble 2. A C o m p ari s o n o f t h e E sti m ate d A v er a g e D oll a r, E n er g y a n d E m pl o y me nt 

C o sts ( ) o f t h e F r ei g ht T ra n s p o rt M o des U si n g I n t e r c it y Hi g h wa ys o r R ail r o a d s 

f o r 1 9 7 1.
1 1 4 0

2 3

F u el T y pe Water Tra ns p o rt

(c )

R ail r o a d s'

M ot or F re i g ht'

C oal 0. 1 6 0. 1 8 0. 0 9

Cr u de Oil 1. 8 U 1. 9* » 2. 1» 0

Re fi n e d Petr ole u m 3. 5 5 3. 7 9 >•. 75

E le ctr ic it y 0. 7 3 0. 7 0 0. 8 2

N at ur al Gas 0. 5 1 0. 5 3 0. U 7

All E n er g y

( e )

5. 0 7 5. U 5 6. 3 3

(a ) Val ue s d o n o t i n cl u d e ta x e s.

( b) I n cl u d es oc ea n g oi n g v e s s els.

(c ) I n cl u d es a ll cla s s e s of r ail r o a d s, pa ss e n ge r a n d fr ei g ht.

( d) I n cl u d es a ll tr u c k s, ur b a n a n d i n t e r cit y.

(e ) D o u ble c o u nti n g, i. e . c o u nti n g t h e c o st o f e l e c tri c it y w hic h i n cl u de s 

sa y, t h e c o st o f c o al i n p ut, a n d t h e n a d di n g o n t h e c o st o f c o al, Is 

a v oi de d.

Ta ble 3. T otal ( D ir e ct a n d I n dir e ct) D oll ar V a l u e s ^ E x pe n de d f o r E ner g y 

o f Va ri o us T y pes pe r D oll ar of S er vic es D eli v er e d t o Fi n al C o n s u m pti o n b y 

Water T ra n s p ort, R ailr o a d s a n d M ot or F re i g ht, i n Ce nts pe r D oll ar, 1 9 6 3 

( U. S. De p art m e nt of C o m merce, 1 9 6 9; B ull ar d, 1 9 7 *<).
1 1 4 1

2 U

FI G U R E L T R A V E L E D W A Y MI L E S O F F E D E R A L- AI D HI G H W A Y 6 I N T E R CI T Y T R U C K

T O N MI L E S, B Y Y E A R S, 1 9 2 9 - 1 9 7 1 ( U . S . D E P A R T M E N T O F C O M M E R C E,

1 9 7 1).
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2 5

FI G U R E 2. MI L E S O F N E W T R A C K ( R AI L S ) Q R AI L R O A D T O N MI L E S , B Y Y E A R S,

1 9 2 9 - 1 9 7 1 ( M O O D Y' S I N V E S T O R S E R VI C E, 1 9 4 1 A N D 1 9 7 3 ),
2 6

C O N S T A N T ( 1 9 5 8) R O A D B E D M AI N T E N A N C E D O L L A R S 

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t e r n a ti o n a l S y m p o si u m o n " T he E f f e c t s

f t h e E n er g y S h o rta g e o n T r a n s p o rt a ti o n B ala n c e "

a t P e n n s yl v a nia S t a t e U n i v e r sit y

Ma y 3 9 - 3 1, 1 9 7 4

" D OI N G M O R E WI T H L E S S; I N L A N D W A T E R W A YS' I MP A C T O N U. S. E NE R G Y S U P P LI E S"

B y H ar r y N. C o o k a n d R o b ert D. B o y d *

I t i s b y n o w w ell k n o w n t h a t A m e ri c a's t r a n s p o rt a ti o n s y st e m p r o f o u n dl y 

a f f e c t s, a n d i s g r e a tl y a f f e c t e d b y, t h e a v a il a b ilit y , d i s t ri b u ti o n a n d c o st 

o f e n e r g y r e s o u r c e s. I t i s l e s s c l e a r w hic h t e c h n o l o g i c a l a d v a n c e s, w hic h 

ec o n o m ic p o li c i e s, a n d w hi c h s o c i a l c h o ic e s c a n b e st be i m ple m e n te d o r e n c o u ra g e d 

t o I m pr o v e t h e e f fi c i e n c y o f o u r t r a n s p o rt a ti o n s y st e m a n d y et p r o vi d e t h e 

n e c e s s a r y f r e i g h t a n d p a s s e n g e r s e r v i c e s o u r s o c i e t y de m a n ds.

T his p a p e r s e e k s t o e x a m i n e t h e p o t e n ti a l o f a n d, i n f a c t, t h e a b ilit y o f 

i n la n d w ate r c a r r i e r s t o e f f e c t s u b s t a n ti a l e n e r g y s a vi n g s w it h i n t h e U. S . t r a n s ­

p o rt a ti o n s e c t o r, a n d t o e x pl o r e t h e ec o n o m ic a n d r e s o u r c e s c o st s o f e x p a n di n g 

t h i s m o de t o m eet f u t u r e n e e d s a n d c o n t ri b u t e t o a m o re fl e x i b l e n a ti o n a l t r a n s ­

p o rt a ti o n s y st e m.

D e s pit e t h e f a c t t h a t m ost o f t h e m aj o r p o p u la ti o n c e n t e r s i n t h e U nit e d 

S t a t e s a r e l o c ate d al o n g s e a c o a st s o r m aj o r r i v e r s , w ate r t r a n s p o rt a ti o n t o d a y 

i s m a k i n g s c a n t c o n tri b u ti o n t o t h e a ll e v i a ti o n o f ur b a n p a s s e n g e r t r a n s p o rt a ti o n 

n e e d s. T his i s p r o b a bl y n ot s o m uc h t h e f a u lt o f t h e m o de a s t h e f a c t t h a t i t 

i s al m o st c o m ple te l y o v e rl o o k e d a t e v e r y l e v e l o f pla n ni n g f o r u r b a n m as s t r a n s it

I n t h e w or d s o f a G o v er n m e nt- s p o n s o re d " S ur v e y o f W at er T r a n s p o rt a ti o n 

P o t e n ti a l t o R e d uc e C o n g e sti o n a n d P o ll u ti o n i n W a s hi n gt o n, D . C ., a n d O t h e r 

M aj or C iti e s " c o m ple te d i n 1 9 7 2: " T he o n e m et h o d o f c o m m ute r t r a n s p o rt a ti o n

* Mr. C o o k i s E x e c uti v e Vic e P r e si d e n t a n d Mr. B o y d i s E x e c uti v e A s si st a n t 

o f t h e N ati o n al W at er w a y s C o n fe re n c e, I n c ., a n ati o n w i d e a s s o c i a ti o n o f s o me 

5 0 0 w ate r w a y - r ela te d b u si n e s s e s, i n d u s t ri e s a n d a g e n cie s h e a d q u a rte r e d a t 

1 1 3 0 1 7t h S t r e e t, N o rt h w e st, W as hi n gt o n, D. C. 2 0 0 3 6. T ele p h o n e 2 0 2/ 6 3 8 - 0 0 9 0.
1 1 4 5

t h a t r e q u ir e s t h e l e a s t ne w c o n str u c ti o n a n d I n t e r f e r e n c e w it h e x i s ti n g r o a d ­

w a y s, r e si d e n c e s a n d b u si n e s s e s I s w ate r t r a n s p o rt. It a l s o h a s r e c ei v e d t h e 

l e a s t e m p h a si s I n t h e U nit e d S t a t e s I n t h e p a st t w e nt y y e a r s. * * * " 2

I n t h e m o ve m e nt o f f r e i g h t, t h e p i c t u r e i s m uc h d i f f e r e n t, alt h o u g h i t 

ma y be a r g u e d t h a t m uc h o f t h e p o t e n ti a l f o r l o w -c o st a n d e f f i c i e n t n a v i g ati o n 

re m ai n s u n e x pl o r e d. T he N ati o n, a s o f 1 9 7 2, wa s s e r v e d b y c o m m erc ial n a v i g ati o n 

o n 2 5, 5 4 3 m il e s o f n a t u r a l o r i m pr o v e d I nla n d ri v e r s , I n t e r c o a s t a l w ate r w a y s, 

o r c o n n e cti n g c h a n n e l s . M o s t o f t h i s s y st e m li e s e a st o f t h e R o c kie s, a n d a 

m aj o r c o m p o ne nt I s f o r m e d b y t h e M i s si s si p p i Ri v e r a n d i t s t r i b u t a r i e s . N a v i g ati o n i s a l s o s i g n i fi c a n t t o t h e West C o a st, h o w e v er, a n d t h e P a c i fi c N ort h w e st 

e s p e c i a ll y u tili z e s w ate r t r a n s p o rt a ti o n al o n g t h e C ol u m bia, W il la m ett e, a n d

S n a k e R i v e r s.

A lt h o u g h F e d e ra l ri v e r a n d h a r b o r a c t s a u t h o ri z i n g e x p a n si o n o f t h e t o t a l 

s y st e m b y n e a rl y 4, 0 0 0 m il e s a r e o n t h e s t a t u t e b o o k s, t h e s y st e m h a s i n r e a lit y 

e x p a n de d v e r y l i t t l e o v e r t h e l a s t d e c a d e . T h e o nl y m aj o r ne w n a v i g ati o n 

a rt e r y w hi c h i s a c t u a ll y n o w u n d e r c o n str u c ti o n I s t h e T e n n e ss e e- T o m bi g b e e W at er ­

wa y w hic h, w he n c o m ple te d, w ill a d d 2 5 3 m il e s t o t h e s y st e m a n d s h o rte n b y 3 0 0 

t o 7 0 0 m il e s t h e w at er w a y d i st a n c e b et w ee n c e rt a i n fa r m i n g, i n d u s t ri a l a n d ra w 

m a t e ri a l s c e n t e r s of t h e T e n n e s s e e, C u m be rl a n d a n d O hi o V all e y s a n d c o a st a l 

p o rt s al o n g t h e E a ste r n G ulf o f M e xic o a n d I n la n d ri v e r c i t i e s s u c h a s Bi r mi n g h a m 

a n d M o nt g o m er y, Ala ba m a, a n d C ol u m b u s, G e o r g ia .

T h e e x i sti n g i n la n d w at er w a y s y st e m h a s e x p e rie n c e d a ste a d y gr o wt h i n 

c a r g o t r a f f i c si n c e t h e l a t e 1 9 4 0's, I n c r e a si n g a t C he sa me ti m e I t s p o rti o n 

o f o v e r a ll f r e i g h t t r a n s p o rt a ti o n o u t p u t. D uri n g 1 9 7 2, U. S . I nla n d w ate r c a r r i e r s 

( e x cl u si v e o f t h e G re at L a k e s) t r a n s p o rt e d 2 2 9. 7 5 b illi o n t o n - m il e s o f c ar g o i n 

d o m e sti c c o m m er ce. T his r e p r e s e n t e d n e a rl y a s e v e n -f o l d I n c r e a s e i n I n la n d
1 1 4 6

t r a f f i c si n c e 1 9 4 7, & a n d i t a c c o u nte d f o r 1 1. 2 p e r c e nt o f t o t a l i n t e r c it y f r e i g h t 

t r a n s p o rt a ti o n o ut p ut d u ri n g 1 9 7 2 ( a s c o m pa re d t o 3. 4 p e r c e nt o f t h e t o t a l i n 

1 9 4 7 ).

T his g r o wt h i n v ol u m e a n d, m o re i m p o rta n tl y, i n t h e p r o p o rti o n o f t o t a l 

i n t e r c it y f r e i g h t c a r ri e d b y w ate r h a s h el p e d t o c o u n t e r a ct t h e g e n e r al tr e n d 

a wa y fr o m e n er g y e f fi c i e n c y i n A m eric a n f r e i g h t t r a n s p o rt. W at er t r a n s p o rt a ti o n's 

s u p e ri o r p e rf o r m a n c e p e r u n it o f e n e r g y c o ns u m e d h a s b ee n d o c u m e n te d i n s e v e r al

r e c e n t s t u d i e s.

Ba se d u p o n 1 9 6 8 fi g u r e s o b ta i n e d fr o m G o v er n m e nt a g e n cie s r e l a ti n g t o 

t o t a l t o n - m il a g e o f w ate r b o r n e t r a f f i c a n d t o t a l f u e l c o n s u m pti o n b y t h e c a r r i e r s , 

t h e Ra n d C o r p o r ati o n c a l c u l a t e d t h a t w ate r w a y s i n t h e U nit e d S t a t e s r e q u ir e 5 0 0 

B riti s h T he r m al U nit e s ( B T U's) o f e n er g y p e r t o n - m il e o f s e r v i c e . B y si m il a r 

m et h o d s, t h e Ra n d st u d y a r ri v e d at t h e f oll o w i n g e n er g y i n t e n si v e n e s s fi g u r e s 

f o r o t h e r d o m e sti c i n t e r c it y f r e i g h t m o d es: r a il r o a d s, 7 5 0 B T U' s p e r t o n - m il e; 

p i p e li n e s, 1, 8 5 0 B T U’ s p e r t o n - m il e; t r u c k s, 2, 4 0 0 B T U's p e r t o n - m il e; a n d a i r 

f r e i g h t, 6 3, 0 0 0 B T U's p e r t o n - m il e. ®

T h e N ati o n al W at er wa ys C o n fe re n c e, I n c ., a n ati o n w i d e o r g a n i z a ti o n o f 

c a r r i e r s , w ate r w a y s s h i p p e r s, a n d o t h e r w ate r r e s o u r c e s I n t e r e s t s w hi c h c a r ri e s 

o n r e s e a r c h r e l a t e d t o t h e p u b li c v al u e o f t h e N a ti o n's i n la n d w ate r w a y s s y st e m, 

t w ic e s u r v e y e d l a r g e sa m ple s o f i n la n d w at er w a y c a r r i e r s a n d d is c o v e r e d s li g h tl y 

b e tt e r p e rf o r m a n c e t h a n r e fl e c t e d i n t h e Ra n d st u d y. I n 1 9 6 1, w ate r c a r ri e r s 

m o vi n g 2 5. 9 p e r c e n t o f a ll d o m e sti c i n la n d w ate r b o r n e c o m m erc e r e p o rt e d c o ns u mi n g 9 0. 6 5 m illi o n g all o n s o f f u e l a n d tr a n s p o rti n g 3 1 b illi o n t o n - m il e s of 

c a r g o. T h u s, t h e sa m pl e a v era g e d 2. 9 2 g a ll o n s p e r 1, 0 0 0 t o n - m il e s o f s e r v i c e .

I n 1 9 6 8, t h e sa me y e a r o n w hi c h t h e Ra n d c a l c u l a ti o n s a r e b a s e d, a n e v e n 

l a r g e r sa m pl e ( r e p r e s e n ti n g 3 2. 4 p e r c e n t o f a l l i n la n d t r a f f i c ) re s p o n d e d t o 

C o n fe re n c e q u e sti o n n a ir e s, a n d r e p o rte d c a r ri a g e o f 4 2. 1 b illi o n t o n - m il e s o f
1 1 4 7

c a r g o a n d c o n s u m pti o n o f 1 2 6. 0 6 m illi o n g a ll o n s o f m ari n e f u e l. T h u s, t h i s sa m pl e 

o f c a r ri e r s a v e ra g e d 2. 9 9 g a ll o n s o f f u e l p e r 1, 0 0 0 t o n - m il e s.

1 0

T he l a tt e r fi g u r e , r e p r e s e n ti n g t h e s li g h tl y l e s s e f f i c i e n t a v e r a g e o f t h e 

t w o, n e v e rt h e l e s s c o n v e rts t o 4 1 5 B T U's p e r t o n - m il e, w hi c h i n d i c a t e s c o n si d e r a b l y 

g r e a t e r e f fi c i e n c y t h a n R a n d's c a l c u l a ti o n s o f 5 0 0 B T U's p e r t o n - m il e .

1 1

T r a n s p o rt ati o n S e c r e t a r y Cla u d e S. B ri n e g a r h a s a l s o ta k e n n ote o f t h e 

c o m p a ra ti v e e f fi c i e n c i e s o f v a ri o u s f r e i g h t m o d es, a n d c o n cl u d e d t h a t t h e r e i s 

a " str o n g ne e d t o pr o m ote a d d iti o n a l c a r ri a g e b y w ate r a n d r a i l, w he re f e a s i b l e . " 

T e sti f y i n g b e f o r e t h e T r a n s p o rt a ti o n S u b c o m mitte e o f t h e H o u se A p p r o p ri ati o n s 

C o m mitt ee i n Ma rc h 1 9 7 4, S e c r et a r y B ri n e g a r s t a t e d t h a t o n e g all o n o f f u e l w o ul d 

m o ve 3 0 0 t o n - m il e s o f f r e i g h t b y w ate r, 1 8 0 t o n - m il e s b y r a i l a n d 5 0 t o n - m il e s 

b y t r u c k . I T h es e fi g u r e s i n d i c a t e t h a t w ate r t r a n s p o rt a ti o n i s 6 7 p e r c e nt 

m o re f u e l e f f i c i e n t t h a n r a i l t r a n s p o rt a ti o n .

S o me all o w a n c e m ust be m a d e, h o w e v er, f o r t h e c i r c u it y o f w ate r r o u t e s, 

w hi c h u s u all y f o ll o w m e a n d eri n g ri v e r s. Alt h o u g h r a i l t r a f f i c d o e s n ot al w a y s 

m o ve b y t h e m o st d i r e c t r o u t e, r a il r o a d d i st a n c e s b et w ee n c i t i e s a r e g e n e r all y 

s h o rt e r t h a n w ate r d i s t a n c e s. F o r i n st a n c e, t h e r a i l d i st a n c e fr o m M i n n e a p oli s 

t o Ne w O rl e a n s i s 1, 2 1 8 m il e s w hil e t h e M i s si s si p p i Ri v e r d i st a n c e i s 1, 7 1 2 

m il e s o r 4 0. 5 p e r c e n t f a rt h e r. N e v e rt h el e s s, e v e n w he n t h e g r e a t e r le n g t h 

of w ate r r o u t e s i s c o n si d e r e d, t h e w ate r m o de s t i l l o f f e r s a s u b st a n ti a l 

a d v a nta g e i n f u el e f fi c i e n c y i n t h e m o ve m e nt o f i n t e r c it y f r e i g h t.

I n d i v i d u al l o n g - h a ul c a r r i e r s r e p o rt f u e l r e q uir e m e nts c o n si d e r a b l y be l o w 

t h e a v e r a g e s, a n d f o r d e e p - d r a ft v e s s e l s s u c h a s G re at L a k es b ul k c a r r i e r s , 

e f fi c i e n c y a p p e a r s t o e x c e ll s h all o w - d r a ft i n la n d b a r g e t r a n s p o rt a ti o n . F or 

e x a m ple, t h e A m eric a n Ste a m s hi p C o m pa n y o f B u ff al o h a s c a l c u l a t e d t h a t i t s ne w 

ir o n o re c a r r i e r, t h e " C h a rle s F. W il s o n," w hi c h o p e r a t e s o n t h e G re at L a k e s, 

c o ns u m es o nl y 9 6 B T U's o f e n er g y p e r t o n - m il e.

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T h e i n la n d w ate r c a r r i e r s ’ i m p r o vi n g e f fi c i e n c y r e c o r d h a s ac c o m pa ni e d 

r a p i d te c h n o l o g i c a l a d v a n c e s w hi c h h a v e, i n t h e l a s t 4 0 y e a r s, i n c r e a s e d t h e 

a v e r a g e l e n g t h o f h a ul fr o m 5 9 t o 3 7 5 m il e s, p e r m it te d t h e o ut p ut o f a t y p i c a l 

b a r g e t o w t o i n c r e a s e fr o m 1 5 0, 0 0 0 t o n - m il e s t o m o re t h a n 3 m illi o n t o n - m il e s p er 

d a y, a n d all o w e d t h e ma xi m u m t o w si z e t o gr o w fr o m 5, 0 0 0 t o n s t o 5 0, 0 0 0 t o n s. 

I n n o v ati o n s s u c h a s t h e K ort n u z zl e, t h e t u n n el h u ll, m ari n e r a d a r, t h e me di u m 

s p ee d d i e s e l e n g i n e, a n d u se o f te le c o m m u nic ati o n s ha v e c o n tri b u t e d t o t h e 

I n c r e a s e d p r o d u c ti v it y of b a r g e t o w s.

A d v a n ce s i n c a r g o h a n dli n g h a v e n ot p r o g r e s s e d a t a li k e p a c e, h o w e v er, s o 

t h a t t h e s e c o st s ma y e x ce e d t h e li n e - h a u l c o st s o f m o vi n g g o o ds b y b a r g e. 

I m pr o v e m e nts h e re c o ul d a d d s u b s t a n ti a ll y t o t h e pr o v e n e n e r g y c o st a d v a nta g e s 

o f b a r g e t r a n s p o rt a ti o n . A n ot h er li k e l y c o n t ri b u t o r t o i n c r e a s e d e f fi c i e n c y of 

i n la n d w ate r b o r n e t r a n s p o rt a ti o n i s t h e d e v el o pi n g b a r g e - c a r r y i n g s hi p te c h n ol o g y. 

T h o u g h s t i l l i n i t s i n f a n c y, t h i s p r o m is e s t o c o m bir e t h e f l e x i b ili t y o f s h all o w - 

d r a ft b a r g e s w it h t h e e f fi c i e n c i e s o f si z e e nj o y e d b y o c e a n - g oi n g v e s s e l s. T h e 

a d v e nt h a s d e m o n str ate d b ot h f u el a n d d o ll a r s a vi n g s i n t h e m o ve m e nt o f c a r g o e s 

s u c h a s m a n u fa ct u re d g o o d s a n d a g ri c u lt u r a l c o m m o ditie s o ri g i n a ti n g i n la n d i n 

t h e U nit e d S t a t e s b ut b o u n d o v e r s e a s. T r a n s p o rt a ti o n c o st s a vi n g s h el p ma ke 

t h i s c o m m erc e c o m p eti ti v e i n w orl d m a r k ets .

T h e tr e n d t o w ar d e f fi c i e n c y i n A m eric a n n a v i g a ti o n , i n cl u d i n g t h e v i r t u a l 

dis a p p e a r a n c e o f o ne - w a y h a uls a n d a tt e n d a n t " b a c k - h a ul s " o f e m pt y b a r g e s, h a s 

p r o b a bl y a l s o r e s u lt e d i n p a rt fr o m t h e h i g hl y c o m p eti ti v e n at u r e o f t h e i n d u str y . 

I n 1 9 7 2, t h e r e w er e a p p r o xi m ate l y 1, 8 4 9 c o m p a n ie s e n ga ge d i n i n la n d n a v i g ati o n 

i n t h e U nit e d S t a t e s, o p e r ati n g 2 0, 9 4 7 d r y c a r g o o r li q u i d ta n k b a r g e s . C a r g o 

r a t e s c h ar g e d t h e s h i p p e r a v e ra g e 3 m ill s (t h r e e -t e n t h s of a c e n t) p e r t o n - m il e, 

alt h o u g h t h e r a t e s v a r y c o n si d e r a b l y d e p e n di n g o n t h e c a r g o, c a r r i e r, a n d g e o ­

g ra p hic li n e o f h a u l.I ?
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E s c al ati n g f u e l p ri c e s ma y be e x p e cte d t o m a g nif y t h e r a t e d i s p a r it y 

a m o n g f r e i g h t m o d es, t h u s m a ki n g w a t e r's c o st a d v a nta g e e v e n m o re a tt r a c ti v e 

t o s h i p p e r s a n d p l a c i n g a g r e a t e r b u r d e n u p o n w ate r c a r r i e r s f o r m o ve me nt o f 

c e rt a i n s hi p m e nts t o w hic h s e v e r a l m o dal a lt e r n a ti v e s a r e a v a il a b l e . P r e - " e n e r g y 

c r i s i s " c a l c u l a ti o n s s h o w e d t h a t $ 1 w o ul d p u rc h a s e f o r t h e a v e r a g e d o m e sti c 

i n t e r c it y s h i p p e r 3 3 3. 3 t o n - m il e s o f s e r v i c e b y ri v e r b a r g e, 6 6. 6 t o n - m il e s b y 

r a i l, 1 5. 4 t o n - m il e s b y tr u c k , o r 5. 0 t o n - m il e s b y alr . ^ ® T h e e f f e c t s o f r e c e n t 

m o nt h s' I n c r e a s e s I n f u e l p ri c e s — w hi c h a r e y et t o s t a b ili z e — o n t h e s e 

s hi p p i n g c o st r e l a ti o n s h i p s re m ai n s t o be s e e n.

I m pr o vi n g t h e e n er g y e f fi c i e n c y o f t r a n s p o rt a ti o n h a s e n vir o n m e nta l b e n e fit s 

b e si d e s t h e o b vi o u s s a v i n g s o f f u e l d u ri n g a p e ri o d o f s h o rt a g e. I t h a s be e n 

c a l c u l a t e d b y t h e E n gi n e e ri n g C o m mitt ee o f t h e I n t e r n a ti o n a l A s s o cia ti o n o f 

G re at L a k es P o rt s, f o r e x a m ple, t h a t s h i p s p r o d u c e 3 3 p e r c e n t l e s s a i r p o ll u ti o n 

t h a n t r a i n s , a n d 3 7 3 p e r c e n t l e s s t h a n d i e s e l t r u c k s, i n t h e m o ve m e nt o f a gi v e n 

1 m illi o n t o n c a r g o. T h e c o m m it te e's st u d y a l s o I n d i c at e d t h a t a s hi p c a r r y i n g 

e it h e r 1 8, 0 0 0 t o n s o f ir o n o r e o r 5, 0 0 0 t o n s o f g e n e r al c a r g o p r o d u c e d pe a k 

n o i s e s 7 5 p e r c e n t l o w er t h a n t h o s e pr o d u c e d b y a tr u c k o p e r a ti n g u n d e r n or m al 

c o n d iti o n s o r b y a sta n d i n g d i e s e l l o c o m o ti v e. ^ T h e f a c t t h a t n a v i g a ti o n I s 

l e s s li k e l y t h a n o t h e r t r a n s p o rt m o de s t o be c o m p eti n g w it h n o n -tr a n s p o rt a ti o n 

u s e s f o r la n d a r e a — a n I m p o rt a nt c o n si d e r a ti o n i n u r b a n s e tti n g s — h a s p r e ­

v i o u sl y be e n m e nti o n e d.

A si d e fr o m I t s c o n tri b u ti o n t o t r a n s p o rt a ti o n e n e r g y c o n s e r v a ti o n, I nla n d 

n a v i g ati o n h a s a n I m p o rta nt r o l e i n p r o vi d i n g a n d d i s t r i b u ti n g t h e e n er g y 

r e s o u r c e s r e q u ir e d b y o t h e r tr a n s p o rt m o d es, I n d u s t ri e s, e l e c t r i c p o w er g e n e r a ­

ti o n f a c i l i t i e s , a n d t h e p u b li c a t l a r g e. M o re t h a n 1 2 2 m illi o n t o n s o f b it u m i n ­

o u s c o al a n d li g n it e m o ve d o n t h e I n la n d w ate r w a y s I n 1 9 7 2, a c c o u nti n g f o r 

s li g h tl y m o re t h a n 2 0 p e r c e n t of t o t a l I n la n d t o n n a g e s. Cr u de p etr ole u m , r e fi n e d
1 1 5 0

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f u e l s, f u e l o il s , li q u i f i e d g a s e s, a n d o t h e r f u el p r o d u cts a c c o u nte d f o r 2 2 1 

m illi o n t o n s o r 3 7 p e r c e nt o f t h e t o t a l. M is c ell a n e o u s h y d r o c a r b o n, b ut n o n ef u e l, c h e m ic als s u c h a s n a p ht h a, a s p h a lt, t a r, b e n z e n e, a n d t o l u e n e a c c o u nte d 

f o r a n o t h e r 1 2 m illi o n t o n s o r t w o p e r c e n t o f t h e t o t a l.

T h u s, i t ca n be se e n t h a t n e a rl y 6 0 p e r c e nt o f t h e a c ti v it y w hi c h ta k e s 

p la c e o n A m e ri c a's i n la n d w ate r w a y s — i n te r m s o f n et t o n n a g e s — i n v ol v e s m o ve 

me nt a n d d i s t ri b u ti o n o f h y d r o c a r b o n f u e l s a n d c h e m ic als d e ri v e d fr o m v a ri o u s 

p r o c e s si n g a n d r e fi n i n g o p e r a ti o n s. A n e x h a u sti v e w ate r b o r n e s hi p p i n g m ar k et 

a n a l y si s r e c e n tl y c o m plete d u n d er t h e a e g i s o f t h e U. S. D e p ar t m e nt o f C o m m erce 

p r o j e c t e d i n c r e a s e s o f 7 3 p e r c e nt i n t h e i n la n d c a r ri a g e o f c o al a n d 3 8 p e r c e nt 

f o r f u e l s a n d l u b ri c a n t s b et w ee n 1 9 6 9 a n d t h e e n d o f t h e c e n t u r y, p r o vi d e d t h a t 

t h e n a v i g ati o n s y st e m i s m ai n ta i n e d a n d c e rt a i n b o ttl e n e c k s — s u c h a s o ut m o d e d 

l o c k s — a r e eli m i n ate d t o ac c o m m o d at e t h e i n c r e a s e d t r a f f i c . A re m a r k a ble 3 5 7

p e r c e n t i n c r e a s e i n t h e w ate r b o r n e m o v e me nt o f c h e m ic als a n d la r g e i n c r e a s e s i n

t h e m o v e me nt of m eta ls a n d o r e s a r e al s o p r o j e c t e d.

T h e f u e l c o n s u m pti o n e f fi c i e n c y re c o r d of w ate r c a r r i e r s d e t a il e d e a r li e r 

i n t h i s p r e s e n t a ti o n o f f e r s c o m p elli n g ar g u m e nts f a r p r o v i si o n o f t h e n e c e s s a r y 

i m pr o v e m e n ts t o a s s u r e t h a t t h e s e c a r g o e s ma y m o ve b y w ate r r a t h e r t h a n b y m o re

e n e r g y i n t e n si v e m o d es.

T he d ata a l s o a r g u e f o r g r e a t e r c o o p e r ati o n b et w ee n m o d es, o f t h e t y p e 

alr e a d y b ei n g pr o d u c e d b y t h e p e n di n g d e v el o p m e n t o f t h e u nta p p e d W es te r n c o al 

r e s e r v e s. T y pic al o f t h i s a c ti v it y mi g ht be t h e r e c e n t a n n o u n ce m e n t b y A m eric a n 

C o m m er ci al B ar ge Li n e s a n d B u rl i n gt o n N o rt h e r n R ail r o a d' o f J o i n t o p e r ati o n o f a 

ne w c o al- d o c ki n g f a c ilit y o n t h e M i s si s si p p i Ri v e r t o f a c i l i t a t e t h e r a i l m o vem e nt o f W es te r n c o al t o t h e ri v e r a n d t h e n c e b y w ate r t o t h e c o ns u m i n g e l e c t r i c 

p o we r g e n e r ati n g f a c i l i t i e s .

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T h e e n er g y i n t e n si v e n e s s o f w ate r c a r r i e r s , a n d c o m p a ri s o n s w it h o t h e r

m o d es, ha ve b e e n e x a m i n e d h e r e o nl y i n te r m s o f m oti v e e n er g y r e q uir e m e nts a n d
1 1 5 1

n ot t h e t o t a l e n e r g y a n d m a t e ri a l s r e q uir e m e nts o f s u p pl y i n g t h e t r a n s p o rt a ti o n 

e q ui p m e nt. F o r e x a m ple, w hat a r e t h e e n e r g y a n d r e s o u r c e s c o st s o f m i n i n g t h e 

Ir o n o r e a n d m a n u fa ct u ri n g t h e s t e e l w it h w hic h t o f a b ri c a t e a t o w b o at a n d i t s 

c o m pl e m e nt o f b a r g e s, a n d h o w d o t h e s e r e q uir e m e nts c o m pa re w it h t h e c o n str u c ­

ti o n o f r a il r o a d c a r s o r a fl e e t o f tr u c k s o f c o m p ara ble c a p a cit y ?

L i ttl e r e s e a r c h o f t h i s t y p e i s k n o w n t o ha ve b ee n c o n d u cte d. H o w e v er, 

t o t h e e x t e n t t h a t t h e s e f a c t o r s ma y be r e fl e c t e d i n d o ll a r c o st s — a n d i t i s 

n ot a r g u e d t h a t t h i s i s a w h oll y a c c u r a t e b a si s o f m ea s u re m e n t — n a v i g ati o n 

a p p e a r s t o c o m pa re f a v o r a bl y t o r a il t r a n s p o rt a ti o n . T h e D e p ar t m e nt o f T r a n s ­

p o rt a ti o n h a s p r o j e c t e d t h a t t h e p ri v a t e s e c t o r w o ul d i n v e st $ 8, 9 2 7, 0 0 0, 0 0 0 t o 

e x pa n d r a il r o a d f a c i l i t i e s d u ri n g t h e d e c a d e o f t h e 1 9 7 0's, a n d t h a t t h i s i n v e st ­

me nt w o ul d r e s u lt i n a 2 2 7 b illi o n t o n - m il e i n c r e a s e i n c a p a c it y . F o r a ll 

d o m e sti c w ate r c a r r i e r s — i n cl u d i n g G re at L a k es a n d d e e p s e a a s w ell a s i n la n d 

c a r ri e r s t h e D e p art m e n t p r o j e ct e d a $ 1, 6 4 4, 0 0 0, 0 0 0 p ri v a t e I n v e st m e nt i n e x p a n si o n 

o f f a c i l i t i e s r e s u lti n g i n I n c r e a s e d c a p a c it y o f 2 1 5 b illi o n t o n - m il e s d u ri n g 

t h e sa me ti m e p e r i o d . S i m p l e d i v i s i o n w o ul d t h u s i n d i c a t e t h a t c a p it a l c o st s 

t o t h e c a r r i e r s p e r u n it o f e x p a n d e d t r a n s p o rt a ti o n c a p a c it y a r e fi v e ti m e s 

g r e a t e r f o r r a il r o a d s t h a n f o r w ate r c a r r i e r s . It m ust be r e it e r a t e d , h o w e v er, 

t h a t c e r t a i n e n e r g y a n d r e s o u r c e s c o st s a r e n ot r e p r e s e n te d i n c a r r i e r s' d o ll a r 

c o st s f o r e q ui p m e nt. F o r e x a m ple, w hil e t h e w ate r w a y s a r e p u b li c l y o w n e d a n d 

m ai n ta i n e d f o r u se b y t h e p u bli c at l a r g e, r a il r o a d s a c q u ir e t h e i r ri g h t s - o f - w a y 

p ri v a t e l y a n d m ai n ta i n t h e i r o w n tr a c k a g e. H o w e v er, t h i s f a c t g i v e s t h e r a il r o a d s 

t h e ri g h t t o c o n tr o l t r a f f i c m o vi n g o v e r t h e tr a c k a g e a n d, t o a l a r g e e x t e n t, 

t h e p o w er t o b a se f r e i g h t r a t e s o n w h at t h e t r a f f i c w ill b e a r.

T h ere i s a la c k of d e t a il e d i n f o r m ati o n a s t o t h e e n e r g y r e q uir e m e nts o f 

d re d gi n g o p e r a ti o n s t o m ai n ta i n a u t h o ri z e d d e pt h s o f n a v i g ati o n c h a n n els a s 

c o m pa re d t o t h e e n er g y re q uir e m e nts o f r a il r o a d , hi g h w a y , o r a i r p o rt c o n str u cti o n 

a n d m ai n te n a n c e. I n t h i s c o n n e cti o n, i t c a n n ot be a u t o m a ti c all y as s u m e d t h a t
1 1 5 2

rl s i n g f u e l s c o st s w il l f o r c e s h i p p e r s t o c h o o se t h e r o o st e f fi c i e n t e x i s ti n g

tr a n s p o rt a ti o n s e r v i c e f o r a gi v e n j o b. F o r e x a m ple, w he n t h e G o v er n m e nt r e c e n tl y 

re s p o n d e d t o p le a s t o " p a s s t h r o u g h " t o t h e u lti m a t e c o ns u m er t h e e f f e c t s o f f u el

p ri c e I n c r e a s e s, m uc h o f i t s st a t e d d e si r e t o s h i f t f r e i g h t c a r ri a g e fr o m l e s s

e n er g y e f f i c i e n t t o m ore e n er g y e f fi c i e n t m o de s — a s fr o m tr u c k t o r a il a n d 

w ate r — wa s p r o b a bl y n e g ate d. T he c o n s u m er, w h o i n t h i s c a s e w o u n d u p b e a ri n g

t h e u lti m at e b u r d e n, h a s l i t t l e v oic e i n b a sic d e c i si o n s a s t o h o w ra w m a t e ri a l s 

a n d fi n i s h e d p r o d u cts a r e tr a n s p o rt e d.

I n o r d e r t h at t h e f u ll p o t e n ti a l o f w ate r t r a n s p o rt a ti o n ca n be r e a li z e d , 

it i s e s s e n ti a l t h at t h e f oll o w i n g p ri n c i p l e s be i n c o r p o r ate d a s c o r n e r st o n e s o f 

U. S. t r a n s p o rt a ti o n p o li c y :

* T h e l o n g e st a b li s h e d p oli c y o f t o ll - f r e e w ate r w a y s i m pr o v e d a n d m ai n ta i n e d

a s a s o v e r ei g n r e s p o n s i b ilit y o f t h e F e d e ra l g o v er n m e n t m u st be s u st a i n e d. 

I m p o siti o n o f t o ll s o r u s e r c h a r g e s o n d o m e st ic w ate r w a y s w o ul d n ot o nl y i m p air 

t h e c o st a n d f u el a d v a nta g e s of t h i s m o de of t r a n s p o rt a ti o n b u t a l s o i m pe de t h e

w at er w a y s i n t h e i r a b ilit y t o s e r v e a h o st o f o t h e r p u b li c p o li c y o b j e c ti v e s 

s u c h a s r e g i o n al g r o w t h, p o p u la ti o n b ala n c e, r u r a l re n e w al a n d e x p o rt e x p a n si o n.

* A li b e r a li z e d vi e w m u st be ta k e n a s t o t h e u r g e nt ne e d f o r I m pr o v e m e nts 

i n t h e i n la n d w at er w a y s y st e m t o eli m i n at e b o ttl e n e c k s a n d m o d er n iz e o ut m o d e d 

f a c i l i t i e s , a n d t h e a d e q u ate m ai n te n a n c e o f h a r b o r s a n d c h a n n els m u st be gi v e n 

p ri o r it y a tt e n ti o n . P e n di n g r e s t r i c ti o n s o n m ai n te n a n c e d r e d gi n g, f o r i n st a n c e, 

t h r e a t e n t o cl o s e d o w n s e v e r a l v it a l w at er w a y s o r s u b s t a n ti a ll y re d u c e t r a f f i c

i n a n u m b er of h a r b o r s.

* A m aj o r pr o g ra m o f i n la n d p o rt d e v el o p m e n t m ust be u n d e rt a k e n i n o r d e r

t o f a c ilit a t e t h e I nte r c h a n g e of t r a f f i c b et w ee n t h e v a ri o u s m o des s o t h a t t h e 

b e n e fit s of w at er w a y c o m m erc e ca n be s p re a d m o re w i d el y . W at er, r a il a n d hi g h ­

wa y m o d es, i n p a r ti c u l a r, s h o ul d be u tili z e d i n a m a n ne r w hi c h c a p t u r e s e ac h
1 1 5 3

0 -

m o d e's i n h e r e n t a d v a nt a g e s, a n d t h e t r a n s f e r o f c a r g o b et w ee n w ate r, r a i l a n d 

tr u c k c a r ri e r s n e c e s s it a t e s t h e u tili z a ti o n o f r e g i o n a l p o rt f a c i l i t i e s .

* I n te r m o d ali s m s h o ul d be str o n g l y e m p h a si z e d i n n a ti o n a l t r a n s p o rt a ti o n 

p o li c y t h r o u g h d e v el o p m e nt o f j o i n t r o u t e s a n d r a t e s a n d t h e e li m i n a ti o n o f 

" C hi n e se w all " r a t e m a ki n g b y r a i l c a r r i e r s . O nl y i n t h i s f a s h i o n c a n t h e 

e c o n o m ie s o f w ate r t r a n s p o rt a ti o n be ma de g e n e r a ll y a v a il a b l e t o t h e N ati o n ’ s 

r i v e r v a ll e y s a n d I n la n d p o rt c iti e s . I f n o t h i n g e l s e , t h e e n er g y s h o rta g e 

de m a n ds g r e a t e r c o o p e r ati o n a n d c o o r d i n ati o n b et w ee n t h e m o d es.

E f fi c i e n c y i n t h e m o ve m e nt o f f r e i g h t c a r g o e s a n d p a s s e n g e r t r a f f i c s h o ul d 

be pri m e c o n si d e r a ti o n s i n f u t u r e n a ti o n a l t r a n s p o rt a ti o n p o li c y . W at er t r a n s ­

p o rt a ti o n i s a n I m p o rta nt se g m e nt o f t h e t o t a l s y ste m . O n t h e b a si s o f p e rf o r m a n c e 

d a t a c u r r e n tl y a v a il a b l e , alt h o u g h i t i s s o me w h at li m it e d , w ate r t r a n s p o rt a ti o n 

w o ul d a p p e a r t o h a v e m uc h p o t e n ti a l w hi c h s h o ul d be f u ll y e x pl o r e d i n o r d e r t o 

p r o vi d e A m eric a w it h a b ala n c e d a n d fl e x i b l e t r a n s p o rt a ti o n s y st e m m a ki n g ma xi m u m

u s e of t h e f u e l a v a il a b l e t o i t .

R E F E R E N C E S

1. L u l eji a n A A s s o c i a t e s, I n t. S U R VE Y O F W A T E R T R A NS P O R T A TI O N P O T E N TI A L T O 

R E D U C E C O N G E S TI O N A N D P O L L U TI O N I N W AS HI N G T O N, D . C ., A N D O T H E R M AJ O R 

CI T I E S. W as hi n gt o n, D. C.: St u d y f o r t h e M ari ti m e A d m i n is tr ati o n, U. S. 

D e p ar t m e nt o f C o m m erc e, 1 9 7 2.

2. I b i d ., p. 4.

3. T he A m eric a n W ate r w a y s O p e r at o r s, I n c. 1 9 7 2 I N L A N D W A T E R B O R N E C O M M E R C E 

S T A TI S TI C S. W a s hi n gt o n, D. C .: T h e A m eric a n W at er w a y s O p e r at o r s, I n c .,

O ct o b er 1 9 7 3.

4. C o n str u cti o n Ne ws. T H E R E A L T R A NS P O R T A TI O N C R I SI S ( 1 9 7 3 ). W a s hi n gt o n, D. C .: 

M a g azi n e a r ti c l e r e p ri n t e d i n t h e C o n g r e s si o n al R e c o r d , J u l y 1 1, 1 9 7 3, p p. 

E 4 6 6 9- E 4 6 7 1.

5. T e n n e ss e e- T o m bi g b e e W at er wa y D e v el o p m e nt A u t h o rit y. T E N N- T O M F A C T S.

C ol u m b u s, M i s s.: T e n n e ss e e- T o m bi g b e e W at er w a y D e v el o p m e nt A u t h o rit y,

D ec e m be r 1 9 7 2.

6. O p. c l t . , T h e A m eric a n W at er w a y s O p e r at o r s, I n c ., p. 4.

7. T r a n s p o rt a ti o n A s s o cia ti o n o f A m eric a. T R A N SP O R T A TI O N F A C TS A N D T R E N D S,

T e nt h E d iti o n. W a s hi n gt o n, D. C .: T r a n s p o rt a ti o n A s s o cia ti o n o f A m eri c a, 

O ct o b e r 1 9 7 3, p. 8.
1 1 5 4

i -

8. M o oz, W. E. T H E E F F E C T O F F U E L P RI C E I N C R E AS E S O N E NE R G Y I N T E N SI V E N E S S

O F F R EI G H T T R A N S P O R T. S a nta M o n ic a, C a li f.: T h e Ra n d C o r p o r ati o n, De ce m b er

1 9 7 1, p p. 3 - 6 .

9. N ati o n al W at er w a y s C o n fe re n c e, I n c. A W AT E R W A Y F U E L T A X: M E AS U R E M E NT S O F 

T H E M E N A N C E. W as hi n gt o n, D . C ., N ati o n al W at er w a y s C o n fe re n c e, I n c ., Ma y 

1 9 7 0, p p. 8 - 9 .

1 0. I b i d ., p p. 2 9 - 3 0.

1 1. I b i d .

1 2. U . S ., C o n g re s s, H o u se C o m mitte e o n A p p r o p ri ati o n s. D EP A R T M E N T O F T R A NS P O R T ATI O N A N D R EL A T E D A G E N CI E S A P P R O P RI A TI O N S F O R 1 9 7 5, P a rt I. H e a ri n g s b e f o r e 

t h e S u b c o m mitte e o n T r a n s p o rt a ti o n , 9 3r d C o n g., 2 d s e s s ., M ar c h 5 a n d 6,

1 9 7 4. p p. 3 1- 3 2.

1 3. N ati o n al W at er w a y s C o n fe re n c e, I n c. N E W S L E T T E R. W a s hi n gt o n, D . C .: N ati o n al 

W at er w a y s C o n fe re n c e, I n c ., A p ril 1 9, 1 9 7 4, p p. 7 - 8 .

1 4. K e ar n e y : Ma na ge me nt C o n s u lt a n ts . D O M ES TI C W A T E R B O R N E S HI P PI N G M A R K E T 

A N A L Y SI S, E X E C U TI V E S U M M A R Y. St u d y p re p a re d f o r t h e U. S. D e p ar t m e nt o f 

C o m m erc e, M ariti m e A d m i n is tr ati o n. C hic a g o: K e ar n e y : M a n a g e m e nt C o n s u lt a n t s , F e b r u a r y 1 9 7 4, p p. 1 1 - 1 2.

1 5. I b i d.

1 6. T h e A m eric a n W at er w a y s O p e r at o r s, I n c. BI G L O A D A F L O A T. W a s hi n gt o n, D. C .:

T h e A m eric a n W at er w a y s O p e r at o r s, I n c ., 1 9 7 3, p. 3.

1 7. T r a n s p o rt a ti o n A s s o cia ti o n o f A m eri c a. T R A NS P O R T A TI O N F A C T S A N D T R E N D S,

E i g ht h E d iti o n. W a s h i n gt o n, D. C .: T r a n s p o rt ati o n A s s o cia ti o n o f A m eric a,

1 9 7 2.

1 8. C a r r, B ra xt o n B. T ES TI M O N Y B EF O R E T H E N A TI O N A L W A T E R C O M MI S SI O N. W a s h i n gt o n, 

D . C .: T h e A m eric a n W at er w a y s O p e r at o r s, I n c ., F e b r u a r y 9, 1 9 7 3.

1 9. G il b e rt, Ke n. T H E S T. L A W R E N C E S E A W A Y: T H E Q UI E T, E F FI C I E N T, M A RI N E HI G HW A Y. R e p o rt p r e s e nte d t o t h e I n t e r n a ti o n a l A s s o cia ti o n o f G re at L a k es 

P o rt s. T o r o nt o , C a n a d a: E n gi n e e ri n g C o m mitt ee o f t h e I n t e r n a ti o n a l A ss oc i a ti o n o f G re at L a k es P o rt s, J u n e 2 2, 1 9 7 2.

2 0. T h e A m eric a n W at er w a y s O p e r at o r s, I n c. 1 9 7 2 I N L A N D W A T E R B O R N E C O M ME R C E 

S T A TI S TI C S. W as hi n gt o n, D . C .: T h e A m eric a n W at er w a y s O p e r at o r s, I n c ., 

O ct o b e r 1 9 7 3, p. 5.

2 1. O p. c l t . , K e ar n e y : M a na ge me nt C o n s u lt a n t s, p. 1 5.

2 2. N ati o n al W at er w a y s C o n fe re n c e, I n c. N E W S L E T T E R. W a s hi n gt o n, D . C .:

N ati o n al W at er w a y s C o n fe re n c e, I n c ., F e b r u a r y 1 5, 1 9 7 4, p. 3.

2 3. U. S. D e p art m e n t of T r a n s p o rt a ti o n . 1 9 7 2 N A TI O N A L T R A NS P O R T A TI O N R E P O R T, 

E X E C U TI V E S U M M A R Y. W a s hi n gt o n, D . C .: U. S. D e p art m e n t of T r a n s p o rt a ti o n,

1 9 7 2, p p. 5, 1 4.

» 0 t
1 1 5 5

Se nat or G r a v e l . Mr. S mit h ?

S T A T E M E N T O F J A M E S R. S MI T H. P R E SI D E N T. T H E A M E RI C A N 

W A T E R W A Y S O P E R A T O R S. I N C.

Mr. S mi t h . Mr. C h air m a n, I, t o o, file d a state m e nt f or y o u r he ar ­

i n gs of J u ne 23 w hic h were dela ye d a n d wit h y o ur per missi o n I w o ul d 

li ke merel y t o me nti o n a fe w p oi nts t h at were n ot reall y c o vere d i n 

o ur ori gi nal state m e nt. T he re has bee n s o m uc h g oi n g o n i n t he past 

se ver al m o nt h s t h at it see ms i na p pr o p riate t o sta n d o n t h at file d 

state m e nt.

Wit h y o ur per mi ssi o n I w o ul d li ke t o si m pl y e n u m erate, wit h o ut 

g oi n g i nt o det ail, se veral of t he pr o ble m s t h at it see ms t o us t h at t his 

c o m mittee a n d y o u as its disti n g uis h e d c hair m a n o u g ht t o u n derta ke 

i n t he ne ar f ut ure.

I a m g oi n g t o recite t hes e n ot nece ssaril y i n t he or d er of t heir i m ­

p orta n ce. I a m n ot s ure o ne ca n d o t h at.

N u m b er o ne, I t hi n k y o u are g oi n g t o ha v e t o, i n o ne wa y or a n ot h er, 

del ve i nt o t he secti o n 404 pr o visi o ns of P u blic La w 92 -5 00 a n d t he 

t hre e- p has e o pe rati o n b y w hic h t he C or ps of E n gi neers is g oi n g t o be 

re q uire d t o iss ue dre d gi n g per mits o ve r a 3- y ear peri o d u p t o, virt uall y 

“t he t o p of t he hill. ”

As far as o ur or g a niz ati o n is c o nc er ne d, Mr. C h air ma n, we t hi n k 

t h at t he hist oric tra diti o n al defi niti o n of na vi ga ble water s o u g ht t o 

be mai nt ai n e d. T he re is le gislati o n o n t he H o use si de. I e x p ect t here 

will be s o me o n t he Se n ate si de, b u t I w o ul d s u g g est t h at y o u gi ve 

seri o u s t h o u g ht t o t he a d de d b ur de n o n t he U nite d St ate s, t he a d de d 

b ur de n o n t he C or p s of E n gi neers, a n d o n t he ta x pa yer, if we are t o 

re q uire t he c or ps t o gi ve a per mit f or dre d ge fill materi al o n e ver y 

si n gle bit of la n d u p t o a n d i ncl u di n g w here t he fl o w is o nl y 5 c u bic 

feet per sec o n d.

P oi nt t w o. It w o ul d see m t o me t h at t his C o n gre ss s h o ul d gi ve m ore 

c o n si de rati o n, a d diti o n al c o n si de rati o n t o t his w h ole pr o ble m of m ai n ­

te na nce dre d gi n g o n t he na vi ga ble water w a ys w here mai nt e na nce 

dre d gi n g is c urre ntl y re q uire d.

I mi g ht e ve n g o s o far as t o s u g gest t h at s o m e da y, u nless t his 

Nati o n is willi n g t o u n derta ke a l o n g peri o d of j u di cial liti gati o n, 

C o n gress itself o u g ht t o clarif y s o me of t he as pe cts cf t he Nati o nal 

E n vir o n me ntal P olic y Act parti c ularl y wit h a vie w of tr yi n g t o pre ­

ve nt ca prici o us use of t h at ver y i m p o rta nt la w wit h w hic h we all 

a gree b u t w hic h has bee n mis us e d b y a n u m b er of pe o ple i n t hese 

U nite d States. I nee d n ot g o i nt o detail o n t h at.

I n a n ot h er c o nte xt, Mr. C h air ma n, mai nt e na nce dre d gi n g is e ve n 

n o w ca u si n g a n ar g u m e nt wit h t he e n vir o n m e nt ali sts o n w h at is a 

na vi ga ble de pt h. Wit h o ut g oi n g i nt o det ail, I refer y o u t o t w o secti o ns 

of p u blic la w ri g ht n o w i n effect. O ne secti o n of t he P u blic La w 

89 -6 70 w hic h I will pr o vi d e t o Miss Ga rra br a nt a n d t o t he c o m mitte e, 

i n dicat es w h at a na vi ga ble de pt h is.

A n ot h er secti o n of t he la w pr o vi de s f or certai n deter mi nati o ns b v 

t he C hie f of E n gi neers w here water wa ys ma y be mai nt ai n e d bel o w 

certai n de pt h s if t he y are nee d e d f or t he ge ner al c o m m erce.
1 1 5 6

[ T he secti o ns of p u bli c la w referre d t o f oll o w:]

C h. 1 2 RI V E R A N D H A R B O R I M P R O V E M E N T S 3 3 § 5 6 2

§ 5 6 2. C ha n nel de pt h s a n d di me nsi o ns defi ne d

I n t he pre p arati o n of pr ojects u n der Ri ver a n d Har b or Acts, u nless ot her wise

e x presse d, t he c ha n nel de pt h s referre d t o s hall be u n derst o o d t o si g nif y t he de pt h 

at mea n l o w water i n ti dal waters tri b utar y t o t he Atla nti c a n d G ulf c oasts a n d 

at mea n l o wer l o w water i n ti dal waters tri b utar y t o t he Pacific c oast a n d t he 

mea n de pt h f or a c o nti n u o us peri o d of fiftee n da ys of t he l o west water i n t he 

na vi g ati o n seas o n of a n y year i n ri vers a n d n o nti dal c ha n nels, a n d t he c ha n nel 

di me nsi o ns s pecifie d s hall be u n d erst o o d t o a d mit of s uc h i ncrease at t he e ntra n ces, 

be n ds, si di n gs, a n d t ur ni n g places as ma y be necessar y t o all o w of t he free m o veme nt of b oats.

Mar. 4, 1 9 15, c. 1 42, § 5, 3 8 St at. 1 05 3.

Hist orical N ote

C o dificati o n. Secti o n was fr o m t he Ri ve rs a n d Har b ors A p pr o pri ati o n A ct of 1 91 5.

Pri or La w. Secti o n s u pers e de d Act Mar. 4, 1 91 3, c. 1 44, J 9, 3 7 Stat. 8 27, w hic h rea d as f oll o ws: “ I n t he 

pre pa rati o n of

N A VI G A B L E W A T E R S

§ 5 6 2a. Pr oject de pt h s f or nati o nal defe nse p ur p oses; water w a ys f or ge neral 

c o m merce

T he C hief of E n gi neers, u n de r t he directi o n of t he Secret ar y of t he Ar m y, is 

here b y a ut h orize d t o mai ntai n a ut h orize d ri ver a n d har b or pr oje cts i n e xcess of 

a ut h o rize d pr oject de pt hs w here s uc h e xcess de pt h s ha ve bee n pr o vi de d b y t he 

U nit e d States f or defe nse p ur p oses a n d w he ne ver t he C hief of E n gi neers deter mi nes 

t h at s uc h water wa ys als o ser ve esse ntial nee ds of ge neral c o m merce.

P u b. L. 9 0- 4 8 3, Title I, § 1 17, A u g. 1 3, 1 96 8, 8 2 Stat. 7 3 7.

Mr. S mi t h . I t hi n k mai nt e na nce dre d gi n g a n d t he a d diti o n al c ost 

is m o st i m p orta nt.

I will n ot, at y o u r dire cti o n, sa y a n yt hi n g a b o ut t he n o w ca use 

cele br e of t he l oc ks a n d da m 2 6 sit u ati o n.

B ut I w o ul d call y o u r att e nti o n t o t he fact si nce it has alre a d y 

bee n me nti o ne d —t h at t he s u m mar y of t he D O T st u d y, t he s o-calle d 

1 2 0- da y st u d y has bee n as ke d t o be i ncl u de d i n t he rec or d of t his 

heari n g.

I w o ul d call y o ur att e nti o n t o t he fact t h at t he C or ps of E n gi neers 

is c urre ntl y o pe rati n g wit hi n t he la w b ut t h at D O T is c ur re ntl y 

det er mi ne d t o see t o it t h at t he c or ps n ot be per mitte d t o det er mi ne 

its o w n be ne fit-c o st rati os.

T h e La w rea d s:

4 9 U S C § 1 6 56, P. L. 8 9- 6 7 0, Oct o ber 1 9 66

T he sta n dar d s a n d criteria f or ec o n o mic e val uati o n of wate r res o urce pr ojects 

s hall be de vel o pe d b y t he Water Res o urces C o u ncil esta blis he d b y P u blic La w 

8 9- 8 0. F or t he p ur p ose of s uc h sta n dar ds a n d criteria, t he pri m ar y direct na vi ga ­

ti o n be nefits of a water res o urce pr oj ect are defi ne d as t he pr o d uct of t he sa vi n gs 

t o s hi p pers usi n g t he water w a y a n d t he esti m ate d traffic t h at w o ul d use t he 

water wa y; w here t he sa vi n gs t o s hi p pers s hall be c o nstr u e d t o mea n t he differe nce 

bet wee n (a) t he frei g ht rates or c har ges pre vaili n g at t he ti me of t he st u d y f or 

t he m o ve me nt b y t he alter nati ve mea ns a n d ( b) t h ose w hic h w o ul d be c har ge d 

o n t he pr o p ose d water wa y; a n d w here t he esti m ate of traffic t h at w o ul d use t he 

water wa y will be base d o n s uc h frei g ht rates, ta ki n g i nt o acc o u nt pr ojecti o ns of 

t he ec o n o mic gr o wt h of t he area.

Mr. S mi t h . W h ate ver t he C o n gr ess sa ys i n t h at c o nte xt is fi ne. B ut 

it o u g ht t o be caref ull y c o nsi dere d b y t his C o n g ress a n d i nitiall y, I 

pres u me, b y y o ur c o m mittee.
1 1 5 7

I w o ul d als o call y o ur att e nti o n t o a nati o n al tra ns p o rtati o n p olic y 

w hic h has rec e ntl y bee n e n u nci ate d b y Sec reta r y C ol e ma n. T h ere 

are ma n y pa rts of t h at state m e nt wit h w hic h we disa gree b u t I w o ul d 

als o call y o ur att e nti o n t o a 1965 act of t hi s C o n gr ess w hic h sa ys t h at 

t here ca n be n o nati o n al tra ns p o rtati o n p olic y wit h o ut t he e x pre ss 

a p p r o v al of t he U. S. C o n gres s.

Re ce nt t hi n g s w hic h I ha v e he ar d Sec reta r y C ol e ma n sa y w o ul d 

i n dicat e t h at si m pl y beca us e he sai d it, it is s u d de nl y p olic y of t he 

U nite d St ate s of A meri ca w’ hic h is si m pl y n ot t he case a n d w hic h is 

si m pl y ultra vires i n ter m s of his a ut h o rit y.

Fi n all y, o ne p oi nt m ore. Mr. C h air ma n, I ass o ciate m yself wit h 

Mr. H ull i n his state m e nts o n user c har ges, b ut I w o ul d li ke t o ma ke 

t his p oi nt: I ns ofa r as t he water-ca rri er i n d ustr y is c o nc er ne d o n user 

c har g es, t hi s c o m mittee a n d t his C o n gres s s h o ul d kee p i n mi n d t h at 

t he water-ca rrie r i n d ustr y is t he ser vi ce i n d ust r y of t he s hi p p er a n d 

t h at a water wa y- u ser ta x is n ot hi n g m ore n or less t h a n a n i nc o m e 

tra nsf er a n d t h at it will be pai d f or b y t he ulti m ate c o n s u m er. S o 

far as t he i nla n d water wa ys- carrier i n d ustr y is c o nc er ne d, we are 

reall y i n a sec o n d ar y r ole. * T his is a pr o ble m of t he s hi p per. We are 

o p p os e d t o wat er w a y- use r ta xe s b u t n ot f or t he reas o ns t h at ma n y, 

ma n y pe o ple s u g ge st.

O ur i n d u str y is n ot g oi n g t o g o br o k e. O ur i n d ust r y is als o n ot t he 

fat cat getti n g all t he be nefits b y n ot ha vi n g t o pa y water wa y- u ser 

c har g es. We are t he ser va nt of t he pe o ple w h o re q uire a n d de m a n d 

t he ser vic es of o ur i n d ust r y. T o t h at de gre e, we c o o per ate wit h 

t he m. B ut I wa nt t o dis pel a n y n oti o n o n t he pa rt of a n y o ne here 

t h at t he water-ca rri er i n d ust r y is t he g u n g- h o carrier of t he s pe ar i n 

t he water w a y- use r c har g e iss ue. We s h o ul d n ot; we will n ot be.

If I ma y ma ke o ne refere n ce, I wa nt t o ta k e t his o p p o rt u nit y o n t he 

rec or d t o t h a n k y o u, sir, f or y o ur l ette r t o me w hic h sa y s t h at “ w it h o ut 

prej u d gi n g t he q uesti o n of w h et h er or n ot t he r e pl ace me nt of t he Alt o n 

facilit y s h o ul d be a ut h oriz e d, I d o n ot c o nsi der t he 12- f o ot c ha n nel 

iss ue a vali d fact or i n its deter mi nati o n.”

Y o u wr ote t h at t o me i n res p o nse t o acti o n b y T h e A m eric a n 

Water w a y O p erat or s B oar d, w hic h sai d, we a gree; we d o n’t wa nt a 

12-f o ot c ha n nel o n t he U p per Mississi p pi. It will ne v er c o me i n o ur 

lifeti me a n y wa y.

T h e eff orts of t he railr oa d i n d u str y a n d t he e n vir o n me ntalists t o 

ma ke t h at a n iss ue is s o m et hi n g t h at we ha v e atte m pte d t o dis pel. 

U n f ort u n atel y, t o o ma n y A me rica n pe o pl e belie ve it, b ut t o ha v e o ne 

U. S. Se nat or, t he c hair m a n of t hi s s u b c o m mitte, sa y, “ Y o u ha v e 

c o n vi nce d me,” is s o m et hi n g f or w hic h we are ver y gratef ul, a n d I 

t ha n k y o u ver y m u c h, Se nat or Gra v el.

T hat is all I ha v e t o sa y, sir, a n d I a p pre ciate y o ur list e ni n g t o me.

Se nat or G r a v e l . T h a n k y o u ver y m uc h. T h a n k y o u b ot h.

[ T he pre p are d state m e nt of Mr. S mit h f oll o ws:]
1 1 5 8

R e m ar k s of J a me s R. S mit h, Pr e si d e nt 

T h e A m eri c a n W at er w a y s O p er at or s, I n c.

Pr e p ar e d f o r t h e 

C o m mitt e e o n P u bli c W ork s

S u b c o m mitt e e o n W at er R e s o ur c e s 

U nit e d St at e s S e n at e

J u n e 2 0, 1 9 7 5

Mr. C h air m a n a n d G e ntl e m e n:

I a m J a me s R. S mit h, Pr e si d e nt of T h e A m eri c a n W at er w a y s O p e r at o r s, I n c., 

t h e n ati o n al r e pr e s e nt ati v e of t h e b ar g e a n d t o wi n g i n d u str y.

O ur A s s o ci ati o n, wit h e x e c uti v e offi c e s i n W a s hi n gt o n a n d r e gi o n al 

o ffi c e s i n Ne w Orl e a n s a n d Ne w Y or k Cit y, pr o vi d e s t h e i nl a n d a n d c o a st al 

b ar g e a n d t o wi n g i n d u str y a v oi c e at t h e f e d er al a n d st a t e l e v el s .

O ur A s s o ci ati o n i s h o n or e d a n d pl e a s e d t o b e a bl e t o p a rti ci p a t e i n t h i s 

h e ari n g b y t h e S e n at e P u bli c W or ks C o n mitt e e' s S u b c o m mitt e e o n W at er R e s o ur c e s.

We h a v e a cti v el y f oll o w e d t h e c o m mitt e e' s fi e l d t ri p l a st m o nt h a n d it s 

h e ari n g i n Vi c k s b u r g, Mi s si s si p pi. S u c h a fi e l d t ri p a n d h e ari n g s h o w s t h e 

c o m mitt e e' s e ar n e st n e s s a n d dili g e n c e i n s e e ki n g fi r s t h a nd i nf o r m ati o n b y 

o b s e r v ati o n a n d b y t e sti m o n y fr o m me n w ho h a v e m ad e ri v e r a n d w at er b or n e 

c o m m erc e t h eir lif e w or k.

I c o m e h er e t o d a y a s t h e r e pr e s e nt ati v e of o u r A s s o ci ati o n a n d o u r i n d u str y. 

I t i s a t e c h ni c al i n d u str y a n d t h e t e c h n ol o g y a n d e x p erti s e c h a n g e s q uit e 

r a pi dl y i n t h e e v er c o nti n ui n g str u g gl e t o m ak e t h e m o st e ffi c i e n t tr a n s p o rt a ­

ti o n m od e i n A m eri c a e v e n m or e e ffi c i e n t, a n d I mi g ht s a y m or e p r o fit a bl e f o r 

o p er a t o r s, e m pl o y e e s, s hi p p e r s a n d t h e c o n s u m er s f o rt u n at e e n o u g h t o w or k or 

r e si d e n e a r a n a vi g a bl e w at e r w a y.

T hi s I n d u str y e m br a c e s t h e br e a dt h a n d d e pt h of A m eri c a. R e c e ntl y Pr of e s s o r 

J o h n L. H a z ar d, Pr of e s s o r of M ar k eti n g a n d T r a n s p ort ati o n, Mi c hi g a n St at e 

U ni v e r s it y, i n r e m ar k s pr e p ar e d f o r t h e N a ti o n al C o nf er e n c e o n W at er, s p o n s or e d
1 1 5 9

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b y t h e F e d er al W ater R e s our c e s C o u n cil st at e d, "I nl a n d w at er w a y tr a n s p ort ati o n 

h as pl a y e d a n al m o st l e g e n d ar y r ol e i n t h e n a ti o n' s d e v el o p m e nt. W or ki n g 

wit h t h e w orl d' s fi n e st e nd o w me nt s of ri v e r s , l a k e s a nd c o a st al w at er w a y s, 

i t h as e n a bl e d u s t o a c hi e v e a p a tt e r n of i nt e r n al d e v el o p m e nt u n mat ch e d b y 

a p y of t h e c o nti n e nt si z e d n ati o n s i n cl u di n g B r a zil, t h e S o vi et U ni o n, a nd 

A u str ali a . W hil e t h e mi d c o nti n e nt h as b ec o me t h e u nif yi n g c e nt er of t h e n ati o n 

wit h t h e d o mi n a nt s h ar e of t h e p o p ul ati o n, i n d u st r y, a n d i n c o m e, ot h e r n ati o n s 

r e m ai n s e ttl e d al o n g t h e p e ri p h er y a nd e mpt y at t h e i n t e ri o r. "

_ L et u s no w t a k e a l o o k at t h e w at er w ay s t o d a y. One of t h e m o st i m p ort a nt 

c o n cl u si o n s t o b e dr a w n fr o m t h e r e c e nt N ati o n al C o nf er e n c e o n W at er i s t h at 

t hi s n ati o n n ee ds a nd d e s er v e s a fi r s t cl a s s I nl a n d w at er tr a n s p ort ati o n 

s y st e m. T o war ds t h at e nd o ur I n d u str y h as w or k ed.

A m eri c a' s w at er wa y s fl e e t e m plo y s a w or k f or c e of a b o ut 8 5, 0 0 0 hi g hl y 

s kill e d men a nd wo men a b o ar d t u g a nd t o w b o at s wit h a n e q u al n u m ber w or ki n g 

a s h or e t o s u p p ort t h e fl e e t. N e a rl y 2, 0 0 0 c o mp a nie s ar e i n v ol v e d i n t hi s 

i n d u st r y. T h es e r a n g e fr o m r e l a ti v el y l ar g e fir m s t o s m all f a mil y o wn ed 

e nt er p ri s e s w hi c h pl y c o n m erc e o v er t h e m or e t h a n 2 5, 0 0 0 mil e s w hi c h c o n stit u t e 

t h e i nl a n d w at er wa y s s y st e m.

I n 1 97 4 b ar g es h a ul e d m or e t h a n 6 2 2 m illi o n t o n s of fr ei g ht, t h e l a r g e st 

a n n u al t o n n a g e fi g ur e e v er r e c or d e d f o r o ur i n d u st r y. When o n e c o n si d er s t h at 

a p p r o xi m at el y 60 % of t hi s t o n n a g e wa s t h e c a rri a g e of p etr ol e u m a n d c o al 

pr o d u ct s, o ne c a n e a sil y s e e, p a rti c ul a rl y i n li g h t of t o d a y' s n e e d s, t h e 

tr e m e nd o u s c o ntri b uti o n t hi s i n d u st r y ma ke s t o w ar d s s u p pl yi n g A m eri c a' s b a si c 

n e e d s.

C o st a nd e n er g y effi ci e n ci e s o n t h e w at er w ay s ar e tr a diti o n all y f a v o r a bl e. 

C o st t o t h e s hi p p er of b ar g e tr a n s p ort ati o n i s o nl y a b o ut f o ur t o fi v e mill s 

p er t o n- mil e , l o w er t h a n a n y ot h e r m od e, wit h t h e e x c e pti o n of pi p eli n e s .
1 1 6 0

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A w ord a s t o a n e n er g y p r o fil e . We b o a st pr o u dl y t h at b ar g e tr a n s p ort ati o n 

r e q uir e s l e s s e n er g y o ut p ut t h a n a ny ot h er m et h o d of fr ei g ht di s tri b uti o n.

B arg e tr a n s p o rt utili z e s 5 0 0 B T U' s of e n er g y f o r e v er y t o n- mil e of fr ei g ht 

m ov ed. T he n e xt cl o s e st mo de 1s r ail s , r e q ui ri n g 7 5 0 B T U' s or 50 X m or e e n er g y 

p er t o n mil e of fr ei g ht m ov e d. Pi p eli n e s wit h 1, 8 5 0 B T U' s, tr u c k s at 2, 4 0 0 

B T U' s a nd air c ar g o at 6 3, 0 0 0 B T U' s, t r a il.

P ut a n ot h er w a y, a s t h e D e p art m e nt of Tr a n s p ort ati o n r e c e ntl y di d aft e r 

c o n d u cti n g a st u d y; o n e g all o n of f u el c a n mo ve a t o n of 'fr ei g ht 5 4 mil e s b y 

tr u c k, 1 78 mil e s b y r a il a n d 3 06 mil e s b y b ar g e.

Citi n g t h e s e fi g u r e s, D e p ut y S e cr et ar y of Tr a n s p ort ati o n J o h n W. B ar nu m 

c o n cl u d e d, " F u el c o n s er v ati o n w ill s o on b e t a ki n g t o p p ri o rit y i n f u el d e ci si o n s ... 

v e s s el s a nd b ar g e s w ill b e r e c ei vi n g. a l o t of att e nti o n."

W at er tr a n s p ort ati o n 1 s i n h e r e ntl y a n a nti -i nfl ati o n a r y m od e, a nd s er v e s 

a s a n a n c h or o n fr ei g ht r at e s. An e x a m pl e of t hi s " a n c h or eff e ct" i s t h e 

f a ct t h at r a il r at e s ar e mu ch l o w er o n r o ut e s w hi c h p a r all el n a vi g a bl e w at er w a y s, 

t h a n o n t h o s e fr e e of w at e r c o m p etiti o n. P ut si m pl y, t h e w at er wa y s mo ve a b o ut 

1 6 X of t h e n a ti o n' s fr ei g ht f o r 2- 3 X of t h e n a ti o n' s fr ei g ht b ill.

I n li g h t of t hi s d e m o n str at e d effi ci e n c y, c o u pl e d wit h t hi s c o u ntr y' s 

d e sir e t o s e e it s e lf i n d e p e n d e nt of f o r ei g n e n er g y s o ur c e s, t h e b ar g e a nd t o wi n g 

i n d u str y a nd w h at i t c a rri e s t a k e s o n a dd ed i m p ort a n c e.

O ur i n d u str y l o o k s f or w ar d t o a p eri o d of r a pi d gr o wt h i n t hi s l a st 

q u art er of t h e 2 0t h C e nt ur y. C o n s er v ati v e e sti m at e s s u g g e st t h at b ar g e t o n n a g e 

w ill d o u bl e b y t h e y e ar 2 0 00 fr o m t h e pr e s e nt 6 2 2 m illi o n t o m or e t h a n 1. 2 

billi o n t o n s. T o nn a ge o n t h e I nl a n d w at er wa y s h a s m or e t h a n tri pl e d si n c e 1 93 5 

w hil e t h e a v er a g e l e n gt h of h a ul h as i n cr e a s e d fr o m 5 0 t o 3 75 mil e s. T he 

o ut p ut of a t y pi c al m aj or ri v e r b ar g e t o w h as gr o wn fr o m l e s s t h a n 1 5 0, 0 0 0 t o 

m or e t h a n 3 m illi o n t o n - mil e s p er d a y i n t h e s a me p e ri o d. T he e sti m at e
1 1 6 1

4 -

r e pl a c e m e nt v al u e of t h e i nl a n d f o r- hir e fl e e t o n t h e Mi s si s si p pi - G ulf i n tr a ­

c o a st al w at er w ay s s y st e m al o n e i s i n e x c e s s of $ 3 billi o n . T h at e sti m at e 

e x cl u d e s t h e i n v e st m e nt of pri v a t e c a rri e r s , t er mi n al s a nd ot h er s h or e- b a s e d 

e q ui p m e nt.

We al s o s e e t h e n ee d t o e x pa n d o ur s er vi c e s i n r e s p o n s e t o r e q uir e m e nt s 

of N ati o n al E n er gy P oli c y.

A c c or di n g t o Pr oj e ct I n d e pe n d e n ce pr oj e cti o n s, c o al tr a n s p ort ati o n c o st s 

ar e 1 9 c e nt s p er milli o n B T U' s f o r a 1, 0 0 0 mil e h a ul b y b ar g e. F or t h e s a me 

m ov e me nt, sl u rr y pi p eli n e s h a v e a c o st of 31 c e nt s a nd r ail s a c o st of 5 0

c e nt s.

T he c o st f o r r ail tr a c k a nd f a ciliti e s c o ul d e a sil y e x c e e d $1 billi o n f o r 

e x p a n si o n, a nd a s hi g h a s $ 1 0. 3 billi o n f o r h o p p er c ar a nd l o c o m oti v e r e pl a c em ent t o h a n dl e t h e pr oj e ct e d c o al m ov e m ent s i n 1 9 85. A c c or di n g t o Pr oj e ct 

I n d e p e n d e n c e, st e el r e q uir e m e nt s f o r t h e r ailr o a d s ma y r e a c h 1 0. 5 milli o n t o n s.

I n li g h t of p o s si bl e st e el s h o rt a g e s, a nd b y c o m p ari s o n, t h e w at er w a y s w ill 

n ee d t o fi n a n c e o nl y $ 70 0 milli o n f o r e x p a n si o n a nd w ill r e q uir e o nl y o ne 

m illi o n t o n s of st e el.

I w o ul d a dd a si d e li g h t f e at ur e t o t h e w at er b or n e c o m merc e st or y. T ho u g h 

o ur A s s o ci ati o n, A W O, h as b e en i n e xi st e n c e si n c e 1 9 4 4, we di d n ot c on me nc e 

k e e pi n g st a ti sti c s o n ne w w at er si d e pl a n t l o c ati o n s a nd e x p a n si o n s u n til 1 9 52. 

Si n c e t h at ti m e a nd t hr o u g h t h e fi r s t q u art er of 1 9 7 5, 9, 5 0 3 pl a nt s or m aj or 

pl a n t e x p a n si o n s w er e c o n str u ct e d at w at er- o ri e nt e d l o c ati o n s. B as ed o n a v ail a bl e 

d at a, t h e s e c o n str u cti o n o utl a y s r e p r e s e nt a c a pit al i n v e st m e nt of $ 1 6 4. 2 billi o n 

f o r t h e s a me p eri o d. T hi s s pi n off b e n efit of I nl a n d w at er b or n e c o m merc e c a n n ot 

b e o v e r e sti m at e d. I n 3 9 of t h e c o nti g u o u s U nit e d St at e s a n d, of c o ur s e, a s t h e 

C h air m a n w ell k n o w s,i n Al a s k a a nd H a w aii, t h e s e b e n efit s pr o d u c e j o b s f o r p e o pl e 

p ri m aril y b e c a u s e i n v e st or s a nd m a na g er s r e c o g ni z e t h e effi ci e n ci e s of w at er b or n e
1 1 6 2

5‘-

tr a n s p ort ati o n i n bri n gi n g s u p pli e s of r a w m at eri al s t o f a ct o ri e s a nd i n 

s hi p pi n g fi ni s h e d pr o d u ct s.

I w o ul d li k e t o c o m me nt b ri e fl y o n s o me pr o bl e ms f a ci n g t h e i n d u str y I 

r e p r e s e nt, Mr. C h air ma n. One of t h e m o st s eri o u s pr o bl e m s aff e cti n g t h e 

e ntir e i nl a n d w at er w a y s s y st e m i s t h e pr e s e nt c o ntr o v er s y o v er L o c k s 

a nd Da m 2 6 at Alt o n, Illi n oi s . We k no w t h at t h e c o ntr o v er s y i s b ef o r e t h e 

c o urt s i n a s uit a g ai n st t h e S e cr et ar y of t h e Ar my b y t w o e n vir o n m e nt al 

gr o u p s a nd t w o- s c or e w e st er n r ailr o a d s . T h es e str a n g e b e df ell o w s h av e 

s u cc e e d e d i n d el a yi n g a nd p er h ap s t hr e at e ni n g a l o n g n ee de d r e c o n str u cti o n of 

t h e l ar g e st b ottl e n e c k o n t h e e ntir e i nl a n d w at er wa y s s y st e m.

L o c ks a nd Da m 2 6 wa s c o m pl et e d 3 7 y e ar s a g o. It i s no w o b s ol et e, a n d i n 

t h e e y es of ma n y o b s er v er s h as b ee n i n s u c h a st at e f o r y e a r s. I k no w,

Mr. C h air m a n, t h at y o u a nd y o u r c o m mitt e e w er e bri ef e d o n t h e pr o bl e m wh en 

y o u vi sit e d Alt o n i n Ma y. T h e r ef or e, I w ill n ot g o i nt o t h e d et ail s of t h e 

c o ntr o v er s y. I w ill i n st e a d q u ot e fr o m t h e Pr oj e ct I n d e pe n d e n c e St u d y of t h e 

F e d er al E n erg y A d mi ni str a ti o n, w hi c h I h a ve r ef e rr e d t o b ef or e a n d w hi c h s p ok e 

t o t h e n ee d t o d e v el o p t h e w at er wa y s t o h a n dl e t h e e x p e ct e d gr e at d e ma nd f o r 

c o al i n t h e mi d - 1 9 8 0' s. T he st u d y h el d "t h e c a p a cit y of a n e nti r e ri v e r s y st e m 

i s c o ntr oll e d b y t h e l o c k wit h t h e s m all e st c a p a cit y ".

I w o ul d al s o s a y a w or d or t w o wit h r e g ar d f o r t h e n ee d of t h e C orp s of 

E n gi n e er s pr o gr a m of m ai nt e n a n c e dr e d gi n g. C o n gr e s s h as a ut h ori z e d a 9-f o ot 

c h a n n el o n t h e U p per Mi s si s si p pi Ri v er. Du e t o S pri n g fl o o di n g , n at ur al 

er o si o n, silti n g a n d ot h e r r e a s o n s, t h e C orp s of E n gi n e er s i s r e q uir e d s e a s o n all y 

t o dr e d g e, or c a u s e t o b e dr e d g e d, s e cti o n s of t h e ri v e r. We no w f a c e t h e 

pr o bl e m of v ari o u s st at e s i m p o si n g or att e m pti n g t o i m po s e l a w s a nd r e g ul ati o n s 

w hi c h w ill hi n d er t h e C orp s i n c a rr yi n g o ut t h e vit al t a s k of m ai nt e n a n c e 

dr e d gi n g e v en wit h t h e m ost st ri n g e nt e n vir o n m e nt al s af e g u a r d s.
1 1 6

6 

Of c o ur s e we m u st r e c o g ni z e t h at a ll ar e a s of t h i s c o u n tr y c a n n ot b e n efit 

dir e c tl y fr o m w at er b or n e c o m mer c e. We h a v e t h e ni n e st at e s t h at h a v e n o 

c o n m er ci all y n a vi g a bl e w at e r w a y s. We h a v e p o rti o n s o f t h e ot h er 4 1 l a c ki n g 

t h i s G o d- gi v e n b e n efit, b ut a ll citi z e n s of t hi s c o u n tr y u s e a n d c o n su m e 

pr o d u ct s w hi c h h a v e tr a v ell e d b y w at er b o r n e c o m m erc e at s o me ti m e d uri n g t h eir 

pr o d u cti o n. T h u s w e m u st l o o k u p o n t h i s i n d u str y a s n ati o n al i n s c o p e. We 

m u st l o o k u p o n t h e n e e d s of t hi s .i n d u str y a s n ati o n al p ri o riti e s . We m u st l o o k 

u p o n t h e f u n di n g of i m pr o v e m e nt s t o f u rt h e r e n h a n c e t h e c o m m er ci al a s p e ct s 

of ~ A m er 1 c a' s w at er w a y s a s n ati o n al g o al s.

5 4 - 2 3 9 0 - 7 5 - 7 4
1 1 6 4

Se na t or Gr a v e l . O u r ne xt wit nes ses are Ge or g e A n ders o n of t he 

We ster n Railr oa d Ass ociati o n a n d D o n al d Be attie, Direct or of 

G o ver n m e nt al Affairs, Rail wa y La b or E x ec uti ve s Ass ociati o n. Will 

b ot h of y o u g e ntl e me n please c o me f or w ar d at t h e sa m e ti me.

Her e a gai n I n otice t h at certai nl y Mr. A n d ers o n has a fairl y v o ­

l u mi n o us state m e nt, a n d I w o n der if y o u c o ul d, o ut of c o u rtes y t o t h e 

c o m mittee, all o w y o ur state m e nt t o be acc e pt e d, a n d if y o u w o ul d 

s u m marize as briefl y as p ossi ble, please.

S T A T E M E N T S O F G E O R G E A N D E R S O N, W A T E R R E S O U R C E S A N AL Y S T, W E S T E R N R AI L R O A D A S S O CI A TI O N, A N D D O N A L D S.

B E A T TI E, DI R E C T O R, G O V E R N M E N T A L A F F AI R S, R AI L W A Y

L A B O R E X E C U T I V E S A S S O CI A TI O N

Mr. A n d e r s o n . T h a n k y o u, Mr. C h air ma n, I will n ot atte m pt t o 

s u m marize m y c o m plete state m e nt.

Se nat or G r a v e l . T h a n k y o u, y o u are m uc h m ore pers uasi v e t h at 

wa y.

Mr. A n d e r s o n . Per ha p s m y pri nci pal c o nc er n re ga r di n g t hes e o v er ­

si g ht heari n g s, a n d as I i n dicate i n m y stat e m e nt t he se are m y pers o nal 

o bse r vati o ns, is t h at t he re ha ve bee n n u m er o u s, e xcell e nt st u dies s u b ­

mitte d t o C o n gr ess w hic h ha ve d oc u m e nt e d t h e deficie ncies i n o ur 

i nla n d water w a y pr o gra m. T hese st u dies i ncl u de t he sec o n d H o o ver 

C o m missi o n Ta s k F orc e Re p ort o n W ate r Res o urces a n d P o w er 

w hic h state d, “t he criteria b y w hic h t he w ort hi n ess of na vi gati o n 

i m p r o v e m e nts is j u d g e d are i na de q uat e a n d u nrealistic,” a n d t he 

Nati o nal W ate r C o m missi o n Re p ort w hic h state d “ n a vi gati o n pr ojects 

are still u n derta ke n t h at c o ul d n ot pass t h e test of a n u n biase d ec o ­

n o mic e v al u ati o n.” At t he A meri ca n S ociet y of Ci vil E n gi n eer s’ 

nati o n al meeti n g i n Ja n u ar y 1973, t he Nati o nal W ate r C o m missi o n 

c hair m a n, Mr. C ha rles L uce, i n his ke y n ote a d dress state d :

T he ec o n o mics of s o me water wa y pr ojects are s o di st ort e d t h at if y o u t o o k t he 

Fe deral m o ne y s pe nt f or t he water wa y a n d set u p a tr u st f u n d, y o u c o ul d s hi p 

all t he a ntici pate d water wa y traffic b y rail at n o c ost t o t he s hi p pers.

W h at is missi n g fr o m t hes e st u dies is t h e ver y si g nifica nt p oi nt a n d 

c o ncl usi o n t h at s o u n d e val uati o n pr oc e d ures ha v e bee n officiall y 

prescri be d b y t h e e xec uti v e bra nc h i n res p o nse t o t he c o n gressi o nal 

ma n d ate b ut ha v e ne v er bee n f oll o we d. It is s olel y beca use of t h e 

fail ure t o f oll o w t h e pres cri be d e val uati o n pr oc e d ures w hic h has gi ve n 

rise t o t h e d oc u m e nt e d deficie ncies i n t he det er mi nati o n of t h e nee d 

a n d ec o n o mi c j ustifi cati o n f or na vi gati o n pr oject s.

T h e l o n g sta n di n g c o n gre ssi o nal ma n d ate of 1902 re ga r di n g t he 

e val uati o n of na vi gati o n pr oj ects is well u n d erst o o d. As a n e xa m ple, 

i n a heari n g state m e nt bef ore a c o m mittee of C o n gress i n A pril 1966, 

a re p res e nt ati v e of t he water carrier i n d u str y state d it is “t he c o n ­

gressi o nal ma n d ate t h at t he desira bilit y of water wa y i m pr o ve m e nt s 

s hall be det er mi ne d b y t he p u blic be ne fit a n d nee d.”

T h e act ual w or di n g i n t he 1902 Ri vers a n d Har b o rs Act is t h at t he 

re p ort s w hic h t h e B oar d of E n gi neers f or Ri ve rs a n d Har b or s s u b mit 

t o C o n gres s s hall esta blis h, a n o I q u ote, “t he p u blic neces sit y f or t he 

w or k a n d t h e pr o pri et y of its c o n str u cti o n, c o nti n u a nc e or m ai nte n a nc e 

at t he e x pe nse of t he U nite d St ate s.”
1 1 6 5

S o me 4 8 y ear s aft er t he 1 9 02 Act, t he E xe c uti ve Bra nc h de vel o pe d 

f or t he first ti m e a detaile d set of pri nci ples a n d sta n d ar ds f or t h e 

ec o n o mic e val uati o n of w ater res o urces pr oj ects. It was k n o w n as t he 

Gree n B o o k of Ma y 1 9 50.

T h e basic p oi nt w hic h it e m p hasi ze d was t he f u n da me ntal i m p o rta nce of t he vie w p oi nt f or pr oje ct e val uati o n. It sai d f or F e deral pr ojects 

a c o m pre h e nsi ve p u bli c vie w p oi nt s h o ul d be ta k e n. It we nt o n t o 

a p pl y t h at vie w p oi nt f or na vi gati o n pr ojects a n d i n dicate d —a n d I 

will re a d t hi s f or y o u, “ F r o m a p u blic vie w p oi nt, a n a vi gati o n pr oject 

will be c o nsi dere d ec o n o mic all y desira ble if it res ult s i n pr o visi o n of 

nee de d tra ns p o rtati o n ser vice at a lesser t ot al e x p e n dit ure f or g o o ds 

a n d ser vic es t h a n ma y be e x p ecte d t o be nec essa r y i n t he a bse nce 

of t he pr oje ct. ”

It we nt o n t o st at e, “ O n t hi s basis, tra ns p o rtati o n c ost s rat h er t ha n 

tra ns p o rtati o n rat es s h o ul d be use d f or me as uri n g be n efit s w he ne v er 

p ossi ble. ”

I wa nt t o e x pl ai n t he t w o gr a p hs w hic h I br o u g ht wit h me bef or e 

I ter mi nate t his r at he r s h o rt pre se ntati o n.

T his c h art (fi g ure I s h o w n bel o w) will gi ve y o u a b etter a p p reciati o n 

of w h at we mea n b y t he differe nce bet w ee n a tra ns p o rtati o n c ost

c o m pari s o n a n d a tra ns p o rtati o n

F i g u r e I - C o st a n d R ate Te r m s 

I n l a n d N a vi g ati o n P

rate c o m pari s o n.

E x p la n ati o n o f C o st a n d R ate T er m s

■ A v oi d a bl e c o st of t h e r e s o ur c e s n e c e s s ar y 

t o pr o vi d e t h e tr a n s p ort ati o n s er vi c e vi a 

t h e alt e r n ati v e mo de.

- A v oi d a bl e c o st of t h e r e s o ur c e s, t o t h e 

b ar g e li n e, n e c e s s ar y t o pr o vi d e t h e pr o ­

p os ed w at er w a y tr a n s p ort ati o n s e r vi c e.

■ E xi sti n g p u bli s h e d r at e pl u s h a n dli n g 

c h ar g e s f o r m ovi n g tr a ffi c vi a t h e 

alt er n ati v e mo de.

■ C o n str u ct e d b ar g e r at e ( si n c e t h er e ar e no 

p u bli s h e d r at e s f o r n e arl y all of t h e I n ­

l a n d w at er w a y tr a ffi c ) pl u s e sti m at e d 

h a n dli n g c h ar g e s.

se d i n t h e E c o n o mic E v al u ati o n o f

T h e vertical dista n ce f or t he ba r dia gra ms i n fi g ure I re p res e nt s 

t he tra ns p o rtati o n c ost a n d rate f or a c o m m o dit y m o ve m e nt. R w a n d 

C w r e pres e nt t he c o nstr ucte d r at e a n d a v oi da ble c ost f or t he w ate r w a y 

m o de w hile Ra a n d Ca re p res e nt t he e xisti n g p u blis h e d rate a n d t he 

a v oi da ble c ost f or t he alt er nati v e rail m o de. B y a v oi da ble c ost is 

m ea nt t he se c ost s w hic h w o ul d be a v oi de d if t he traffic di d n ’t m o ve 

b y t h at m o de.
1 1 6 6

T h e differe n ce i n a v oi d a ble c osts, Ca- C w, or t he dist a nc e Z, re prese nts t he sa vi n gs i n tra ns p ortati o n c ost t o t he Nati o n. T he differe n ce 

i n tra ns p o rtati o n rate s, Ra- R w, or t he dista nce W, re pres e nt s t he 

be n efits t o t he direct be neficiaries. Y o u ca n see fr o m fi g ure I t h at t he 

rate sa vi n gs be nefits t o t he wat er w a y s hi p pers, dist a nc e W, is far 

gr eat er t h a n t he sa vi n gs i n tra ns p o rtati o n c osts t o t he Nati o n, dista n ce Z. C o n se q ue ntl y, a dist orte d e val uati o n is o btai n e d if o nl y t h e 

rat e sa vi n gs f or a n a vi g ati o n pr oject are deter mi ne d.

T he first ti me t h at t he C or ps of E n gi n eers det er mi ne d t h e sa vi n gs 

i n res o urc e c osts t o t he Nati o n i n a d diti o n t o t he rat e sa vi n gs t o t he 

wat er w a y s hi p pers was i n t he Pitts b ur g h District E n gi ne er’s Ja n u ar y 

1 9 65 re p ort o n t he ec o n o mic ree val uati o n of t he pr o p os e d 1 2 0- mile 

$ 1 billi o n La ke Erie- O hi o Ri ver Ca nal pr oject.

T A B L E I - E f f e c t o f P r o j e c t E v a l u a t i o n V i e w p o i n t o n t h e 

W o r t h i n e s s o f t h e P r o p o s e d L a k e E r i e - O h i o

R i v e r C a n a l

P r o j e c t

E v a l u a t i o n

V i e w p o i n t

B a s i s F o r 

P r o j e c t 

A n a l y s i s

E s t i m a t e d A v e r a g e 

A n n u a l V a l u e s

P r o j e c t

B e n e f i t

T o C o s t 

R a t i o

B e n e f i c i a l 

U s a q e , T o n s

T r a n s p o r t a ­

t i o n B e n e f i t s

W a t e r w a y S h i p p e r s R a t e S a v i n g s 

t o S h i p p e r s

9 4 , 3 3 0 , 0 0 0 $ 1 3 8 , 1 0 0 , 0 0 0 3 . 1 2 t o 1

C o m p r e h e n s i v e

P u b l i c

S a v i n g s i n 

R e s o u r c e s C o s t s 5 , 8 0 9 , 0 0 0 $ 1 0 , 1 0 0 , 0 0 0 0 .7 6 t o 1

T h e c or ps’ fi g ures fr o m t he La ke Erie- O hi o Ri v er ('a nal pr oject 

re p ort i n ta ble I s h o w t he great i m pa ct of t he vie w p oi nt use d i n t he 

pr oject e val uati o n. T h e t w o e val uati o n vie w p oi nts bei n g t he dir ect 

be neficiar y or wat er w a y s hi p p er’s vie w p oi nt, a n d t he c o m pre h e nsi ve 

p u blic vie w p oi nt. Ta ble I pres e nts b ot h t he be neficial usa ge of t he 

water w a y i n t o ns of tr affic per ye ar a n d t he a v era ge a n n ual be n efits per 

ye ar f or eac h of t he t w o pr oje ct e val uati o n vie w p oi nt s.

T h e esti m ate d be neficial usa ge is 9 4 milli o n t o n s a n n u all y fr o m t he 

vie w p oi nt of t h e s hi p pers, b ut fr o m t he vie w p oi nt of t he c o m p re he nsi ve 

p u blic, t he be neficial usa ge is less t h a n 6 milli o n t o n s a n n uall y. T h u s, 

t he traffic f or w hic h t her e w o ul d be be nefits t o t he s hi p per s is s o me 

1 6 ti me s t he traffic f or w hic h t her e w o ul d be sa vi n g s t o t h e p u blic.

F o r t he 9 4 milli o n t o ns of traffic, t her e w o ul d b e a n e sti mate d sa vi n g 

i n rat es t o t he s hi p p ers of $ 1 3 8 milli o n a n n uall y. F or t he 5. 8 0 9 milli o n 

t o n s of traffic t here w o ul d be sa vi n gs i n t he c ost of t he res o ur ces 

nec essa r y t o pr o vi de t he tra ns p o rtati o n ser vice a m o u nti n g t o o nl y 

$ 1 0. 1 milli o n a n n uall y. T h us t he a vera ge a n n ual sa vi n g s t o t he dire ct 

be nefi ciarie s is nearl y 1 4 ti me s t he sa vi n g s t o t he c o m pre he n si ve 

p u bli c. As ca n be see n fr o m ta bl e I, t he pr oject w o ul d n ot pr o d uce 

s ufficie nt be nefits t o wa rra nt its c o n str u cti o n if j u d ge d fr o m t he 

c o m pre h e nsi ve p u blic vie w p oi nt.

O ne of t he m ost di st u r bi n g state m e nts at y o ur o ver si g ht he ari n gs wa s 

ma de o n J u ne 6, 1 9 7 4, b y t he D e p ut y Direct or of Ci vil W or k s, Bri g. 

Ge n. Ja me s L. Kell y. Ge n eral Kell y state d, i n res p o nse t o a q ues-
1 1 6 7

ti o n b y Se nat or B uc kle y, that t he c or ps i n it s e val uati o n of na vi gati o n 

pr ojects, a n d I q u ote, “. . . deter mi nes t he o verall sa vi n gs i n tra ns p or ­

tati o n c ost t o t he Nati o n.” I sa y t hat is t otall y i nc orrect. T he c or ps 

has i n t he past a n d still c o nti n ues t o deter mi ne o nl y t he rate sa vi n gs 

t o t he water wa y s hi p pers.

A n ot her stat e me nt ma de b y a c or ps re prese ntati ve o n J u ne 6, 1974, 

was t he a d missi o n t hat tra ns p ortati o n c osts rat he r t ha n tra ns p orta ­

ti o n rates are t he pr o per meas ure f or deter mi ni n g t he be nefits of a 

na vi gati o n pr oject. B ut he we nt o n t o state t hat C o n gress re q uires t he 

c or ps t o use tra ns p ortati o n rates rat her t ha n c ost i n acc or da nce wit h 

secti on 7a of t he Tra ns p ortati o n Act.

He is q uite c orrect t hat f or deter mi ni n g t he direct be nefits t o t he 

water wa y s hi p pers C o n gress has s pelle d o ut t he use of c urre nt rates 

f or c o m paris o n. T he t otal c o ntr o vers y d uri n g t he heari n gs re gar di n g 

t he De part me nt of Tr a ns p ortati o n Act was w het her t he rate sa vi n gs 

t o t he water wa y s hi p pers s h o ul d he based o n c urre nt rates or pr ojecte d 

water-c o m pelle d rates. T he c o n gressi o nal c o m mittees ne ver de bate d 

t he iss ue as t o w het her t here s h o ul d be a c o m paris o n of tra ns p ortati o n 

rates as o p p ose d t o a c o m paris on of tra ns p ortati o n c osts.

T he Nati o nal Water C o m missi o n re p ort state d: “a n esti mate 

of sa vi n gs t o s hi p pers is of little val ue i n deter mi ni n g w het her a 

pr o pose d water wa y s h o ul d he b uilt . . . h o we ver, “ u nf ort u natel y, 

a n d i n t he o pi ni o n of t he C o m missi o n u n necessaril y, secti o n 7 has 

bee n i nter prete d as re q uiri n g t he e xec uti ve bra nc h t o c o nfi ne its 

a nal ysis . . . ” (t o a deter mi nati o n of t he rate sa vi n gs t o s hi p pers). T he 

re p ort p oi nts o ut t hat t he e xec uti ve bra nc h ca n e xa mi ne ot her matters 

f or deter mi ni n g w het her or n ot a pr oject is i n t he nati o nal i nterest.

I t hi n k m y pre pare d state m e nt is fairl y clear, Mr. C hair ma n. I 

mi g ht j ust rea d s o me of t he c o ncl usi o ns. I t hi n k w hat C o n gress has 

t o d o is esta blis h t he o verall nati o nal g oal or o bjecti ve f or pla n ni n g 

na vi gati o n pr ojects. I n fact, d uri n g t he tra ns p ortati o n pa nel at t he 

rece nt Nati o nal C o nference o n Water, s ur prisi n gl y e n o u gh after all 

t hese years t he bi g u nres ol ve d q uesti o n was w hat is t he nati o nal g oal 

f or na vi gati o n pr ojects?

Se nate D oc u me nt 97, 87t h C o n gress, s pecifie d t he pla n ni n g o bjec ­

ti ve t hat na vi gati o n pr ojects “ pr o vi de a nee de d tra ns p ortati o n ser vice 

wit h a d va nta g e t o t he Nati o n’s tra ns p ortati o n s y ste m.” T his pla n ni n g 

o bjecti ve was ne ver f oll o we d, yet it was a p pr o ve d f or a p plicati o n b y 

t he E xec uti ve Office of t he Presi de nt a n d is clearl y c o nsiste nt wit h 

t he ma n date of C o n gress i n t he Ri vers a n d Har b ors Act of 1902.

T he water wa y i nterests at t he Nati o nal C o nference o n Water c o n ­

cl u de d t hat t he pla n ni n g o bjecti ve s h o ul d be t hat t his Nati o n nee ds 

a first-class water wa y s yste m, a p pare ntl y irres pecti ve of its i m pact 

o n t he Nati o n’s t otal tra ns p ortati o n s yste m. Clearl y o ne of t he basic 

iss ues here is t he o verall pla n ni n g o bjecti ve.

M y state m e nt stresses t he i m p orta nce of bri n gi n g i n t he De part ­

me nt of Tr a ns p ortati o n i n c o nsi derati o n of t he nee d a n d desira bilit y 

of water wa y pr ojects wit h res pect t o o ur t otal tra ns p ortati o n s yste m.

I belie ve t nis is a n a de q uate s u m mar y f or t he m o me nt, Se nat or. 

T ha n k y o u ver y m uc h.

Se nat or G r a v e l . Mr. Beattie?
1 1 6 8

S T A T E M E N T O F D O N A L D S. B E A T TI E, DI R E C T O R, G O V E R N M E N T A L 

A F F A I R S, R AI L W A Y L A B O R E X E C U TI V E S A S S O CI A TI O N

Mr. B e a t t i e . Mr. C h air m a n, I a m please d t o be h ere t hi s aft er n o o n. 

It is a welc o me o p p ort u nit y f or me t o e x press t he vie ws of r ail la b or o n 

t he I nla n d Na vi gati o n pr o gra m of t he C or ps of E n gi ne ers. E v er y o ne 

k n o w s t h at t he railr o a ds ’ s h are of t he fr ei g ht m ar k et has be e n decli ni n g 

c o nti n u o usl y si nce W orl d Wa r II a n d o ne of t he m o st si g nific a nt 

reas o ns f or t hi s decli ne is t he e ver -i ncreasi n g e x p e n dit ures b y Fe d eral, 

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o nl y t o ill u str ate a p oi nt.

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billi o n o n pr o gra m s ot h er t h a n m ulti p ur p ose pr oject s.

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t h at s h o ul d ta k e first pri orit y.

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S e c t i o n H e a d i n g P a g e N o .

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w h i l e T r a n s p o r t a t i o n I n v e s t m e n t T h a n C e r t a i n N a v i g a t i o n 

E x p a n s i o n P r o p o s a l s 1 0 & 1 1

T h e D e p a r t m e n t o f T r a n s p o r t a t i o n I s t h e P r o p e r A g e n c y F o r 

E v a l u a t i n g I f a N a v i g a t i o n P r o j e c t P r o v i d e s a N e e d e d 

T r a n s p o r t a t i o n S e r v i c e W i t h A d v a n t a g e t o t he N a t i o n ' s 

T r a n s p o r t a t i o n S y s t e m 1 1 & 1 2

I n f o r m a t i o n C o n g r e s s S p e c i f i e d f o r E v a l u a t i n g O t h e r 

T r a n s p o r t a t i o n I n v e s t m e n t P r o p o s a l s i s A l s o N e e d e d 

f o r N a v i g a t i o n P r o p o s a l s 1 2

U s e o f C o s t S h a r i n g t o E s t a b l i s h P r o j e c t W o r t h i n e s s a n d 

P r o m o t e t h e C o n s e r v a t i o n a n d E f f i c i e n t U s e o f O u r 

N a t i o n ' s R e s o u r c e s 1 2 & 1 3

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C o s t s 1 3 1 4

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m e n t o f N a v i g a t i o n P r o j e c t C o s t s t o t h e S p e c i a l B e n e ­

f i c i a r i e s C o n t i n u e s t o b e I g n o r e d 1 4 & 1 5

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g a t i o n P r o g r a m s a t t h e N a t i o n a l L e v e l 1 5

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a t e t h e C o r p s ' N a v i g a t i o n P r o j e c t E v a l u a t i o n D e f i c i e n c i e s 1 5 & 1 6

P r i n c i p l e s a n d S t a n d a r d s T a s k F o r c e W a s C o r p s D o m i n a t e d a n d

W i t h o u t D e p a r t m e n t o f T r a n s p o r t a t i o n R e p r e s e n t a t i o n 1 6

T h e D i r e c t B e n e f i c i a r y V i e w p o i n t H a s B e e n P e r p e t u a t e d b y

T h e C o u n c i l ' s D i s t o r t e d I n t e r p r e t a t i o n o f t h e 1 9 3 6 1 6 , 1 7 , 1 8

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f o r t h e S u b m i s s i o n o f C o m m e n t s o n t h e N a t i o n a l W a t e r 1 8 1 9

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1 1 7 2

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B E F O R E T H E S U B C O M M I T T E E O N W A T E R R E S O U R C E S 

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O c t o b e r 8 , 1 9 7 5

M r . C h a i r m a n a n d M e m b e r s o f t h e S u b c o m m i t t e e :

 a p p r e c i a t e t h i s o p p o r t u n i t y t o a p p e a r b e f o r e y o u t o d a y t o 

p r e s e n t t e s t i m o n y o n t h e i n l a n d n a v i g a t i o n a s p e c t s o f t h e C i v i l w o r k s 

p r o g r a m o f t h e U . S . A r m y C o r p s o f E n g i n e e r s . Y o u a r e i n d e e d t o b e 

c o m m e n d e d f o r i n i t i a t i n g t h i s t i m e l y i n v e s t i g a t i o n .

D u r i n g t h e p a s t 1 5 y e a r s , I h a v e m a d e a n o n - g o i n g s t u d y o f o u r 

F e d e r a l i n l a n d n a v i g a t i o n p o l i c y a n d p r o g r a m I n i t i a l l y t h i s r e p r e ­

s e n t e d a n a f t e r h o u r s a c t i v i t y . M o r e r e c e n t l y , h o w e v e r , I s e t a s i d e 

m y p r o f e s s i o n a l c a r e e r i n m e c h a n i c a l e n g i n e e r i n g , a f t e r 2 6 y e a r s o f 

u n i v e r s i t y t e a c h i n g a n d t e c h n i c a l r e s e a r c h , s o a s t o a c c e p t m y p r e s e n t 

f u l l t i m e p o s i t i o n . I t w a s m y h o p e t h a t a f u l l t i m e e f f o r t i n t h i s 

a r e a w o u l d r e s u l t i n a w o r t h w h i l e c o n t r i b u t i o n .

V i e w p o i n t f o r R e m a r k s o n t h e I n l a n d N a v i g a t i o n P r o g r a m

T h i s s t a t e m e n t w i l l a d d r e s s t h e s e r i o u s d e f i c i e n c i e s i n o u r F e d ­

e r a l i n l a n d n a v i g a t i o n p r o g r a m w i t h p a r t i c u l a r e m p h a s i s o n p r o j e c t 

e v a l u a t i o n p r o c e d u r e s . T h e s e r e m a r k s c o n s t i t u t e m y p e r s o n a l v i e w p o i n t 

a s a n a c a d e m i c i a n , a c o n s e r v a t i o n i s t , a n d , o f c o u r s e , a F e d e r a l t a x ­

p a y e r . T h e v i e w p o i n t o f t h e r a i l r o a d i n d u s t r y w a s p r e s e n t e d b y M r . A l a n 

S . B o y d a t y o u r h e a r i n g s o n F r i d a y , J u n e 2 0, 1 9 7 5 . I w i l l m a k e l i t t l e 

o r n o a t t e m p t t o e x p a n d o n M r . B o y d ' s r e m a r k s .

P r i n c i p a l Q u e s t i o n s t o b e A d d r e s s e d

T h e p r i n c i p a l q u e s t i o n s w h i c h I w i s h t o a d d r e s s i n m y r e m a r k s a re , 

t o w h a t e x t e n t h a s t h e d i s t o r t e d , e s s e n t i a l l y m e a n i n g l e s s a n d l i m i t e d 

v i e w p o i n t e v a l u a t i o n o f n a v i g a t i o n p r o j e c t s b e e n t h e r e s u l t o f t h e 

f a i l u r e t o f o l l o w , o r t h e d i s t o r t i o n o f , e x e c u t i v e o r c o n g r e s s i o n a l 

d i r e c t i v e s ? A l s o , w h a t c h a n g e s n e e d t o b e m a d e i n o r d e r t h a t o u r w a t e r ­

w a y p o l i c y r e s u l t i n t h e c o n s e r v a t i o n a n d e f f i c i e n t u s e o f o u r N a t i o n ' s 

r e s o u r c e s a n d i n t h e c o n s t r u c t i o n o f ( on ly ) t h o s e p r o j e c t s w h i c h w i l l 

p r o v i d e a n e e d e d t r a n s p o r t a t i o n s e r v i c e w i t h a d v a n t a g e t o o u r N a t i o n ' s 

t o t a l t r a n s p o r t a t i o n s y s t e m ?

F e d e r a l I n l a n d N a v i g a t i o n P r o g r a m D e f i c i e n c i e s

T h e r e a r e m a j o r d e f i c i e n c y a r e a s w i t h r e s p e c t t o o u r F e d e r a l i n ­

l a n d n a v i g a t i o n p r o g r a m . P e r h a p s t h e m o s t s e r i o u s a r e t h e d e f i c i e n c i e s 

r e g a r d i n g t h e p r o c e d u r e b y w h i c h p r o p o s e d n a v i g a t i o n p r o j e c t s a r e e v a l u -
1 1 7 3

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a t e d w i t h r e s p e c t t o t h e N a t i o n ' s t r a n s p o r t a t i o n s y s t e m a n d t h e o v e r a l l 

p u b l i c i n t e r e s t . T h i s i n c l u d e s t h e e v a l u a t i o n a s t o t h e n e e d f o r t h e 

p r o j e c t , i t s e c o n o m i c f e a s i b i l i t y , t h e c o n s i d e r a t i o n o f p r o j e c t a l t e r n a ­

t i v e s a n d t h e e c o n o m i c , s o c i a l a n d e n v i r o n m e n t a l i m p a c t o f t h e p r o j e c t .

A s e c o n d m a j o r d e f i c i e n c y i s t h e l a c k o f a n y c o s t - s h a r i n g p o l i c y 

f o r n a v i g a t i o n p r o j e c t s . T h e F e d e r a l T r e a s u r y c o n t i n u e s t o a s s u m e 

e s s e n t i a l l y t h e t o t a l c o s t o f c o n s t r u c t i o n , o p e r a t i n g a n d m a i n t a i n i n g 

n a v i g a b l e w a t e r w a y s . A t h i r d m a j o r d e f i c i e n c y a r e a i n v o l v e s t h e 

p r e s e n t F e d e r a l a g e n c y r e s p o n s i b i l i t y f o r t h e e v a l u a t i o n o f n a v i g a t i o n 

p r o j e c t s a n d t h e p r e s e n t i n s t i t u t i o n a l a r r a n g e m e n t s f o r t h e c o o r d i n a t i o n 

a n d r e v i e w o f n a v i g a t i o n p r o j e c t s .

T h e F e d e r a l i n l a n d w a t e r w a y p r o g r a m h a s b e e n a p p r a i s e d b y m a n y 

s t u d y c o m m i s s i o n s o r c o m m i t t e e s . N o t e w o r t h y a m o n g t h e s e a r e t h e 

f o l l o w i n g :

1 . H e a r i n g s a n d r e p o r t o n " T h e C i v i l F u n c t i o n s P r o g r a m o f t h e 

C o r p s o f E n g i n e e r s " D e c e m b e r 5 , 1 9 5 2 f r o m t h e S u b c o m m i t t e e 

t o S t u d y C i v i l W o r k s t o t h e H o u s e C o m m i t t e e o n P u b l i c W o r k s ,

8 2 n d C o n g r e s s , 2 n d S e s s i o n , H o u s e C o m m i t t e e P r i n t s # 1 5 , 2 1, 2 4 .

2 . R e p o r t o n " W a t e r R e s o u r c e s a n d P o w e r " p r e p a r e d f o r t h e C o m m i s s i o n 

o n O r g a n i z a t i o n o f t h e E x e c u t i v e B r a n c h o f t h e G o v e r n m e n t b y t h e 

T a s k F o r c e o n W a t e r R e s o u r c e s a n d P o w e r , J u n e 1 9 5 5 , v o l u m e s t w o 

a n d t h r e e .

3 . " W a t e r P o l i c i e s F o r t h e F u t u r e , " t h e f i n a l r e p o r t t o t h e P r e s i ­

d e n t a n d t o t h e C o n g r e s s o f t h e U n i t e d S t a t e s b y t h e N a t i o n a l 

W a t e r C o m m i s s i o n , J u n e 1 9 7 3 .

A d v e r s e E f f e c t s o f P r o g r a m D e f i c i e n c i e s

T h e s e d e f i c i e n c i e s i n o u r F e d e r a l i n l a n d n a v i g a t i o n p r o g r a m p r e v e n t 

t h e e f f i c i e n t u t i l i z a t i o n a n d c o n s e r v a t i o n o f o u r N a t i o n ' s r e s o u r c e s a n d 

r e s u l t i n u n n e c e s s a r y a n d u n e c o n o m i c a l i n l a n d n a v i g a t i o n p r o j e c t s . T h e y 

g i v e r i s e t o d i s t o r t i o n s i n t r a n s p o r t a t i o n i n v e s t m e n t a n d c r e a t e e x c e s s 

t r a n s p o r t a t i o n c a p a c i t y o f l i m i t e d u s e f u l n e s s . A s p o i n t e d o u t b y M r .

B o y d , a m a j o r a d v e r s e e c o n o m i c e f f e c t i s t h e s i g n i f i c a n t l o s s o f m u c h 

n e e d e d f r e i g h t t r a f f i c a n d r e v e n u e b y t h e u n d e r - u t i l i z e d r a i l r o a d s .

T h e D . O . T . r e p o r t o f M a y , 1 9 7 2 o n " F i r s t A n n u a l R e p o r t o n I m p l e m e n ­

t a t i o n o f t h e S t a t e m e n t o n N a t i o n a l T r a n s p o r t a t i o n P o l i c y " s t a t e d " w e 

c a n n o t p r e t e n d t h a t t h e d i s t o r t i o n s i n t r a n s p o r t a t i o n i n v e s t m e n t d u e t o 

m a s s i v e p u b l i c e x p e n d i t u r e s f o r h i g h w a y s , a v i a t i o n s y s t e m s , w a t e r w a y s 

a n d t h e l i k e h a v e n o t b e e n a s u b s t a n t i a l f a c t o r i n t h e d e c l i n e o f o t h e r 

m o d e s a n d s e r v i c e s . " T h i s r e p o r t a l s o s t a t e d : t h e r e a r e " s i z a b l e c a p a ­

c i t y s u r p l u s e s o f o u r l o n g - h a u l r a i l n e t w o r k s " a n d " i t h a s b e c o m e c l e a r
1 1 7 4

3 -

t h a t t h e r e a r e i m p r e s s i v e o p p o r t u n i t i e s f o r i m p r o v i n g m a n y e l e m e n t s o f o u r 

t r a n s p o r t a t i o n s y s t e m s i m p l y t h r o u g h t h e m o r e e f f e c t i v e u s e o f e x i s t i n g 

f a c i l i t i e s . " T h e r e p o r t f u r t h e r s t a t e d t h a t t h e c o s t o f s u c h i m p r o v e m e n t s 

" i s m i n i m a l w h e n c o m p a r e d t o c o s t s f o r c o m p a r a b l e c a p a c i t y i n c r e a s e t h r o u g h 

c r e a t i o n o f n e w c a p i t a l f a c i l i t i e s , w i t h a l l t h e i r a t t e n d a n t e n v i r o n m e n t a l 

a n d s o c i a l c o s t s . "

S e r i o u s D e f i c i e n c i e s i n P r o j e c t E v a l u a t i o n P r o c e d u r e s

T h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t s t a t e s t h e r e a r e s e r i o u s d e f i ­

c i e n c i e s i n t h e p r o c e d u r e s b y w h i c h i t i s d e t e r m i n e d i f a n i n l a n d n a v i g a ­

t i o n p r o j e c t s h o u l d b e a d d e d t o t h e N a t i o n a l t r a n s p o r t a t i o n s y s t e m , a n d 

p r o j e c t s a r e s t i l l u n d e r t a k e n t h a t c o u l d n o t p a s s t h e t e s t o f a n u n b i a s e d 

e c o n o m i c e v a l u a t i o n . T h e C h a i r m a n o f t h e N a t i o n a l W a t e r C o m m i s s i o n , M r . 

C h a r l e s F . L u c e , i n h i s k e y n o t e a d d r e s s a t t h e N a t i o n a l M e e t i n g o f t h e 

A m e r i c a n S o c i e t y o f C i v i l E n g i n e e r s i n 1 9 7 3 s t a t e d : “ T h e e c o n o m i c s o f 

s o m e w a t e r w a y p r o j e c t s a r e s o d i s t o r t e d t h a t i f y o u t o o k t h e F e d e r a l m o n e y 

s p e n t f o r t h e w a t e r w a y p r o j e c t a n d s e t u p a t r u s t f u n d , y o u c o u l d s h i p a l l 

t h e a n t i c i p a t e d w a t e r w a y t r a f f i c b y r a i l a t n o c o s t t o t h e s h i p p e r s : " [ A 

p a p e r w h i c h I p r e p a r e d , t h a t p r e s e n t s a d e t a i l e d a n a l y s i s o f t h e s e r i o u s 

d e f i c i e n c i e s i n e v a l u a t i n g i n l a n d n a v i g a t i o n p r o j e c t s , i s s u b m i t t e d f o r 

t h e r e c o r d t o g e t h e r w i t h t h i s s t a t e m e n t . ]

F a i l u r e t o E v a l u a t e P r o j e c t N e e d a n d B e n e f i t f r o m t h e P u b l i c V i e w p o i n t

T h e e v a l u a t i o n p r o c e d u r e d e f i c i e n c i e s a r e c a u s e d p r i m a r i l y b y t h e 

f a i l u r e t o e v a l u a t e t h e p r o j e c t n e e d a n d b e n e f i t f r o m t h e n a t i o n a l o r 

c o m p r e h e n s i v e p u b l i c v i e w p o i n t . B o t h t h e n e e d a n d e c o n o m i c e f f e c t o f 

i n l a n d n a v i g a t i o n p r o p o s a l s c o n t i n u e t o b e e v a l u a t e d s o l e l y f r o m t h e 

l i m i t e d v i e w p o i n t o f t h e p o t e n t i a l w a t e r w a y s h i p p e r s . T h e N a t i o n a l W a t e r 

C o m m i s s i o n r e p o r t s t a t e s : " A n e s t i m a t e o f t h e s a v i n g s t o s h i p p e r s i s o f 

l i t t l e v a l u e i n d e t e r m i n i n g w h e t h e r a p r o p o s e d w a t e r w a y s h o u l d b e b u i l t 

. .. " A s s t a t e d b y a b a r g e i n d u s t r y r e p r e s e n t a t i v e d u r i n g t h e H o u s e S u b ­

c o m m i t t e e h e a r i n g o f A p r i l 2 6 , 1 9 6 6 o n t h e p r o p o s e d D e p t . o f T r a n s p o r t a ­

t i o n , i t i s " t h e c o n g r e s s i o n a l m a n d a t e t h a t t h e d e s i r a b i l i t y o f w a t e r w a y 

i m p r o v e m e n t s s h a l l b e d e t e r m i n e d b y t h e p u b l i c b e n e f i t a n d n e e d . " B o t h 

t h e w a t e r r e s o u r c e s p r o j e c t e v a l u a t i o n p r o c e d u r e s i s s u e d b y t h e e x e c u t i v e 

b r a n c h a n d t h e 5 3 1 p a g e , M a r c h 2 7 , 1 9 5 2 r e p o r t o f t h e C h i e f o f E n g i n e e r s 

o n t h e C i v i l W o r k s p r o g r a m o f t h e C o r p s s t a t e t h a t t h e p r o j e c t e c o n o m i c 

e f f e c t s m u s t b e d e t e r m i n e d f r o m a c o m p r e h e n s i v e p u b l i c v i e w p o i n t w h i c h 

r e q u i r e s a c o n s i d e r a t i o n o f a l l e f f e c t s , b e n e f i c i a l a n d a d v e r s e , t h a t c a n 

b e e x p e c t e d t o b e f e l t b y a l l p e r s o n s o r g r o u p s i n t h e e n t i r e r a n g e o f 

i n f l u e n c e o f t h e p r o j e c t .

I n S e c t i o n 1 2 2 o f t h e R i v e r a n d H a r b o r a n d F l o o d C o n t r o l A c t o f 1 9 7 0 

( P . L. 9 1 - 6 1 1 ) C o n g r e s s d i r e c t e d t h a t t h e S e c r e t a r y o f t h e A r m y s h a l l p r o ­

m u l g a t e g u i d e l i n e s d e s i g n e d t o a s s u r e t h a t p o s s i b l e a d v e r s e e c o n o m i c , s o ­

c i a l a n d e n v i r o n m e n t a l e f f e c t s r e l a t i n g t o a n y p r o p o s e d w a t e r r e s o u r c e
1 1 7 5

- 4 -

p r o j e c t h a v e b e e n f u l l y c o n s i d e r e d a n d t h a t t h e f i n a l d e c i s i o n s a r e m a d e 

i n t h e b e s t o v e r a l l p u b l i c i n t e r e s t .

T h e D i r e c t B e n e f i c i a r y V i e w p o i n t G r e a t l y D i s t o r t s t h e

T r u e W o r t h o f N a v i g a t i o n P r o j e c t s

T h e e c o n o m i c a n a l y s i s o f a n a v i g a t i o n p r o j e c t f r o m t h e w a t e r w a y 

s h i p p e r s v i e w p o i n t i s c o n s i d e r a b l y d i f f e r e n t t h a n f r o m t h e n a t i o n a l 

o r c o m p r e h e n s i v e p u b l i c v i e w p o i n t . T h i s w a s c l e a r l y s h o w n i n t h e P i t t s ­

b u r g h D i s t r i c t E n g i n e e r ' s J a n u a r y , 1 9 6 5 r e p o r t o n t h e e c o n o m i c r e - e v a l u ­

a t i o n o f t h e p r o p o s e d 1 2 0 - m i l e , $ 1 b i l l i o n L a k e E r i e - O h i o R i v e r C a n a l 

p r o j e c t . T h i s w a s t h e f i r s t a n d o n l y i n s t a n c e i n w h i c h C o n g r e s s w a s 

p r e s e n t e d i n f o r m a t i o n o n t h e s a v i n g s i n t r a n s p o r t a t i o n c o s t s t o t h e 

n a t i o n f o r a n a v i g a t i o n p r o j e c t . T h e e c o n o m i c a n a l y s i s r e s u l t s f r o m 

t h e t w o v i e w p o i n t s a r e a s f o l l o w s :

P r o j e c t

E v a l u a t i o n

V i e w p o i n t

B a s i s F o r 

P r o j e c t 

A n a l y s i s

E s t i m a t e d A v e r a g e 

A n n u a l V a l u e s

P r o j e c t

B e n e f i t

T o C o s t 

R a t i o

B e n e f i c i a l 

U s a q e , T o n s

T r a n s p o r t a ­

t i o n B e n e f i t s

W a t e r w a y S h i p p e r s R a t e S a v i n g s 

t o S h i p p e r s

9 4 , 3 3 0 , 0 0 0 $ 1 3 8 , 1 0 0 , 0 0 0 3 . 1 2 t o 1

C o m p r e h e n s i v e

P u b l i c

S a v i n g s i n 

R e s o u r c e s C o s t s 5 , 8 0 9 , 0 0 0 $ 1 0 . 1 0 0 , 0 0 0 0 .7 6 t o 1

T h e e s t i m a t e d b e n e f i c i a l u s a g e o f t h e p r o j e c t f r o m t h e s h i p p e r s v i e w ­

p o i n t w a s f o u n d t o b e 1 6 t i m e s t h e b e n e f i c i a l u s a g e f r o m t h e p u b l i c v i e w ­

p o i n t . T h e a n n u a l t r a n s p o r t a t i o n b e n e f i t s t o t h e w a t e r w a y s h i p p e r s w e r e 

e s t i m a t e d t o b e n e a r l y 1 4 t i m e s t h e b e n e f i t s t o t h e n a t i o n . T h i s i s a n 

i n d i c a t i o n o f t h e e x t e n t t o w h i c h t h e d i r e c t b e n e f i c i a r y v i e w p o i n t d i s ­

t o r t s t h e t r u e w o r t h o f n a v i g a t i o n p r o j e c t s .

B o t h t h e r a t e a n d c o s t c o m p a r i s o n e v a l u a t i o n s w e r e d e t e r m i n e d b y 

A r t h u r D . L i t t l e u n d e r c o n t r a c t t o t h e P i t t s b u r g h D i s t r i c t E n g i n e e r . T h e 

t r a n s p o r t a t i o n c o s t o n a t o n - m i l e b a s i s w a s f o u n d t o b e l e s s b y r a i l t h a n 

b y b a r g e f o r t h e m o v e m e n t o f d r y b u l k c a r g o ( i n c l u d i n g i r o n o r e , s t e a m 

c o a l , c o k e i n g c o a l , c o ke , a n d l i m e s t o n e ) w h i c h w o u l d c o n s t i t u t e 9 7 % o f 

t h e i n i t i a l p r o s p e c t i v e c a n a l t r a f f i c . T h e A . D . L i t t l e r e p o r t a l s o s t a t e d :

t h e f a c t t h a t m o v e m e n t b y b a r g e u s u a l l y i n v o l v e d g r e a t e r c i r c u i t y i n 

r o u t e a n d h i g h e r o r i g i n a t i n g a n d t e r m i n a l c o s t s m e r e l y t e n d e d t o i n c r e a s e 

t h e d i s p a r i t y i n i n c r e m e n t a l c o s t s i n f a v o r o f t h e r a i l r o a d s . "

N e i t h e r t h e T r a n s p o r t a t i o n B e n e f i t s t o t h e N a t i o n n o r

I m p r o v e m e n t s i n N a t i o n a l E c o n o m i c E f f i c i e n c y a r e M e a s u r e d
1 1 7 6

5 -

N e i t h e r t h e t r a n s p o r t a t i o n b e n e f i t s t o t h e N a t i o n a s d e t e r m i n e d b y 

e i t h e r (1) t h e s a v i n g s i n t h e c o s t o f t h e r e s o u r c e s n e c e s s a r y t o p r o v i d e 

t h e t r a n s p o r t a t i o n s e r v i c e o r , (2) t h e n e t e c o n o m i c e f f e c t t o a l l o f t h e 

d i r e c t l y a f f e c t e d g r o u p s a r e m e a s u r e d i n t h e C o r p s ' n a v i g a t i o n p r o j e c t 

s t u d i e s . A s s t a t e d i n t h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t , a n a v i g a t i o n 

p r o j e c t i s j u s t i f i e d o n l y i f i t w i l l r e d u c e t h e r e a l e c o n o m i c c o s t t o t h e 

N a t i o n o f p r o v i d i n g t r a n s p o r t a t i o n , y e t t h e C o r p s ' e v a l u a t i o n p r o c e d u r e s 

d o n o t m e a s u r e t h e s a v i n g s i n t r a n s p o r t a t i o n c o s t s t o t h e N a t i o n . W h i l e 

t h e t r a n d i t i o n a l p l a n n i n g o b j e c t i v e f o r w a t e r r e s o u r c e p r o j e c t s h a s b e e n 

t h e n a t i o n a l e c o n o m i c d e v e l o p m e n t o b j e c t i v e , w h i c h i s e n h a n c e d b y i m p r o v e ­

m e n t s i n n a t i o n a l e c o n o m i c e f f i c i e n c y , t h e p r o c e d u r e s b e i n g u s e d d o n o t 

m e a s u r e t h e i m p r o v e m e n t i n n a t i o n a l e c o n o m i c e f f i c i e n c y .

D u r i n g t h e o v e r s i g h t h e a r i n g s b e f o r e y o u r S u b c o m m i t t e e o n J u n e 6 

l a s t y e a r , t h e C o r p s ' D e p u t y D i r e c t o r o f C i v i l W o r k s , B r i g . G e n . J a m e s L .

K e l l y s t a t e d i n r e p l y t o a q u e s t i o n b y S e n a t o r B u c k l e y t h a t t h e C o r p s 

i n i t s e v a l u a t i o n o f n a v i g a t i o n p r o j e c t s " d e t e r m i n e s t h e o v e r a l l s a v i n g s 

i n t r a n s p o r t a t i o n c o s t s t o t h e N a t i o n . " E i t h e r G e n . K e l l y i s c o n f u s e d o r h a s 

i n t e n t i o n a l l y a t t e m p t e d t o c o n f u s e y o u r S u b c o m m i t t e e . T h i s i s p r e c i s e l y 

w h a t t h e C o r p s d o e s n o t d o, a n d i t r e p r e s e n t s t h e p r i n c i p a l d e f i c i e n c y 

i n t h e C o r p s ' p r o c e d u r e s f o r e v a l u a t i n g i n l a n d n a v i g a t i o n p r o j e c t s .

B o t h t h e B e n e f i t s t o t h e N a t i o n a n d t o t h e S h i p p e r s M u s t b e D e t e r m i n e d

W h i l e t h e C o r p s h a s c o n t i n u e d t o c o n f i n e i t s e c o n o m i c a n a l y s i s o n 

i n l a n d n a v i g a t i o n p r o j e c t s t o t h e p r i m a r y d i r e c t b e n e f i t s t o t h e p r o s p e c ­

t i v e w a t e r w a y s h i p p e r s a n d h a v e n o t d e v e l o p e d t h e b e n e f i t s t o t h e N a t i o n , 

f o r m e r C h i e f o f E n g i n e e r s , L t . G e n . W i l l i a m F. C a s s i d y s t a t e d d u r i n g a 

H o u s e S u b c o m m i t t e e h e a r i n g o n A p r i l 7, 1 9 6 6 , t h a t b o t h d e t e r m i n a t i o n s 

m u s t b e m a d e . H i s e x a c t s t a t e m e n t a s i t a p p e a r s o n p . 1 1 5 o f t h e p r i n t e d 

h e a r i n g s o n H . R . 1 3 2 0 0 i s a s f o l l o w s :

" W e m u s t d e t e r m i n e t h e b e n e f i t s t o t h e s h i p p e r s a n d t o t h e

N a t i o n , o f s u c h m o v e m e n t s , a n d t h e n c o m p a r e t h a t w i t h t h e 

c o s t s w h i c h w e r e w o r k e d u p b y t h e C o r p s o f E n g i n e e r s . "

I n t h e 1 9 2 0 R i v e r s a n d H a r b o r s A c t , C o n g r e s s s p e c i f i e d t h a t i n a d d i ­

t i o n t o e v a l u a t i n g t h e b e n e f i t s t o t h e N a t i o n , t h e b e n e f i t s t o t h e s p e c i a l 

b e n e f i c i a r i e s s h a l l b e e v a l u a t e d f o r t h e p u r p o s e o f d e v e l o p i n g a c o s t s h a r ­

i n g r e c o m m e n d a t i o n f o r t h e s p e c i a l b e n e f i c i a r i e s . T h e w o r d i n g o f t h i s a c t 

s u g g e s t s t h a t C o n g r e s s h a s a l w a y s e x p e c t e d a n e v a l u a t i o n o f t h e b e n e f i t s 

t o t h e N a t i o n f o r t h e p u r p o s e o f e s t a b l i s h i n g t h e d e s i r a b i l i t y o f t h e 

p r o j e c t a t F e d e r a l e x p e n s e a n d t h a t t h e r e a s o n f o r d e t e r m i n i n g t h e a d d i ­

t i o n a l b e n e f i t s w h i c h w o u l d o n l y a c c r u e t o s p e c i a l b e n e f i c i a r i e s w a s f o r 

t h e p u r p o s e o f a s s i g n i n g a p o r t i o n o f t h e p r o j e c t c o s t s t o t h e s p e c i a l 

b e n e f i c i a r i e s .

P r e s c r i b e d P r o c e d u r e s f o r E v a l u a t i n g B e n e f i t s

t o t h e N a t i o n W e r e N e v e r F o l l o w e d
1 1 7 7

6 -

P r o c e d u r e s f o r m e a s u r i n g t r a n s p o r t a t i o n b e n e f i t s t o t h e N a t i o n 

c o n s i s t i n g o f t h e s a v i n g s i n t h e c o s t o f t h e r e s o u r c e s r e q u i r e d t o 

f u r n i s h t h e t r a n s p o r t a t i o n s e r v i c e w e r e p r e s c r i b e d b y t h e F e d e r a l I n t e r - 

A g e n c y R i v e r B a s i n C o m m i t t e e i n M a y , 1 9 5 0 ; t h e I n t e r - A g e n c y C o m m i t t e e o n 

W a t e r R e s o u r c e s i n M a y , 1 9 58 ; t h e B u r e a u o f t h e B u d g e t i n C i r c u l a r N o . 

A - 4 7 d a t e d D e c e m b e r 3 1 , 1 9 52 ; a n d b y E x e c u t i v e O r d e r o f t h e P r e s i d e n t o n 

M a y 1 5 , 1 9 6 2 , w h i c h w e r e p r i n t e d i n S e n a t e D o c u m e n t N o . 9 7, 8 7 t h C o n g r e s s

E x c e p t o n a t r i a l b a s i s f o r t h e e c o n o m i c r e - e v a l u a t i o n o f t h e p r o ­

p o s e d L a k e E r i e - O h i o R i v e r C a n a l , t h e s e p r o c e d u r e s f o r e v a l u a t i n g t h e 

t r a n s p o r t a t i o n b e n e f i t s t o t h e N a t i o n w e r e n e v e r f o l l o w e d i n e v a l u a t i n g 

i n l a n d n a v i g a t i o n p r o p o s a l s . T h i s f a c t w a s d o c u m e n t e d i n t h e p u b l i c 

r e c o r d b y t w o f o r m e r s t a f f m e m b e r s o f t h e C o r p s ' B o a r d o f E n g i n e e r s f o r 

R i v e r s a n d H a r b o r s . M r . H o w a r d J . M u l l a n y i n h i s p a p e r o n " C o s t i n g a n d 

E v a l u a t i o n o f A l t e r n a t i v e s " p r e s e n t e d a t t h e D e p t . o f t h e A r m y " S e m i n a r 

o n R i v e r B a s i n P l a n n i n g " h e l d M a y 2 7 - 3 1 , 1 9 6 3 s t a t e d :

" T h e G r e e n B o ok , S e n . D o c . 9 7 a n d t h e ( C o r p s ) E n g i n e e r i n g

M a n u a l a l l i n d i c a t e t h a t t h e p r o p e r m e a s u r e o f b e n e f i t s f o r 

n a v i g a t i o n i m p r o v e m e n t s i s t h e d i f f e r e n c e b e t w e e n t h e i n c r e ­

m e n t a l c o s t s o f p r o v i d i n g t h e s e r v i c e v i a t h e w a t e r w a y a n d t h e 

i n c r e m e n t a l c o s t s v i a t h e l o w e s t c o s t a l t e r n a t i v e m o d e o f t r a n s ­

p o r t a t i o n . U p u n t i l t h e p r e s e n t t i m e f e w i f a n y p r o j e c t s h a v e 

b e e n s o a n a l y z e d . "

M r . J a m e s G . T a n g e r o u s e i n h i s O c t o b e r 2 8, 1 9 6 9 s t a t e m e n t w h i c h 

w a s i n c l u d e d i n t h e t r a n s c r i p t o f t h e N o v . 6 - 7 , 1 9 6 9 h e a r i n g s o f t h e 

N a t i o n a l W a t e r C o m m i s s i o n s t a t e d t h a t t h e C o r p s h a s c o n t i n u e d t o c o m p u t e 

n a v i g a t i o n b e n e f i t s a s t h e d i f f e r e n c e i n e s t i m a t e d b a r g e r a t e s a n d p u b ­

l i s h e d r a t e s o f a l t e r n a t e c a r r i e r s - - e v e n t h o u g h B u r e a u o f t h e B u d g e t

C i r c u l a r N o . A - 4 7 , - - a n d S e n a t e D o c . N o . 9 7 - - r e q u i r e d ( t h a t ) n a v i g a ­

t i o n b e n e f i t s b e c o m p u t e d a s t h e d i f f e r e n c e i n c a r r i e r i n c r e m e n t a l c o s t s .

P r o c e d u r e f o r M o d i f y i n g S h i p p e r s B e n e f i t s t o O b t a i n

N a t i o n a l B e n e f i t s H a s B e e n S p e c i f i e d B u t N e v e r F o l l o w e d

B o t h t h e 1 9 5 0 a n d 1 9 5 8 F e d e r a l i n t e r - a g e n c y e c o n o m i c e v a l u a t i o n 

s t a n d a r d s f o r r i v e r b a s i n p r o j e c t s s p e c i f i e d a p r o c e d u r e f o r m o d i f y i n g 

t h e r a t e s a v i n g s t o t h e p o t e n t i a l w a t e r w a y s h i p p e r s s o a s t o o b t a i n t h e 

s a v i n g s i n t h e c o s t o f p r o v i d i n g t h e t r a n s p o r t a t i o n s e r v i c e . T h e w o r d i n g 

o f t h i s p r o c e d u r e w a s a s f o l l o w s :

" W h e r e i t m a y b e n e c e s s a r y t o u s e r a t e s c h a r g e d f o r t r a n s ­

p o r t a t i o n s e r v i c e s a s t h e m e a s u r e o f c o s t o f t r a n s p o r t a t i o n 

b y a n a l t e r n a t i v e m e a n s , f r o m t h e p u b l i c v i e w p o i n t , t h e b e n e ­

f i t s c r e d i t e d t o t h e p r o j e c t s h o u l d b e r e d u c e d b y t h e a m o u n t 

o f a n y l o s s i n n e t i n c o m e b y t r a n s p o r t a t i o n s e r v i c e s f r o m 

w h i c h t r a f f i c i s d i v e r t e d . "
1 1 7 8

7 -

A s i n d i c a t e d o n p a g e s 6 - 7 a n d o n p a g e 2 5 o f m y d e t a i l e d p a p e r o n 

n a v i g a t i o n p r o j e c t e v a l u a t i o n d e f i c i e n c i e s , r e d u c i n g t h e p r i m a r y d i r e c t 

b e n e f i t s t o t h e w a t e r w a y s h i p p e r s b y t h e l o s s o f n e t i n c o m e t o t h e a l ­

t e r n a t i v e m o d e s o f t r a n s p o r t a t i o n , w h i c h w o u l d m o v e t h e t r a f f i c i n t h e 

a b s e n c e o f t h e w a f e r w a y p r o j e c t , g i v e s t h e s a m e r e s u l t s i n t r a n s p o r t a t i o n 

s a v i n g s t o t h e N a t i o n a s d o e s a d i r e c t c o m p a r i s o n o f t h e r e l a t i v e e c o n o m i c 

e f f i c i e n c y o f t h e t r a n s p o r t a t i o n m o d e s .

A s s t a t e d b y D r . R o b e r t H . H a v e m a n , P r o f e s s o r o f E c o n o m i c s , U n i v e r ­

s i t y o f W i s c o n s i n , i n h i s b o o k T h e E c o n o m i c P e r f o r m a n c e o f P u b l i c I n v e s t ­

m e n t s ( R e s o u r c e s F o r T h e F u t u r e , 1 9 7 2 ), t h a t p a r t o f t h e t r a n s p o r t a t i o n 

r a t e s a v i n g s t o w a t e r w a y s h i p p e r s c o n s i s t i n g o f t h e d i f f e r e n c e b e t w e e n 

r a i l r a t e s a n d r e a l r a i l c o s t s " i • s i m p l y a n i n c o m e t r a n s f e r f r o m t h e 

o w n e r s o f r a i l r o a d s a n d / o r t h e p u r c h a s e r * o f t h e i r s e r v i c e " a n d d o e s n o t 

r e p r e s e n t r e a l s a v i n g s i n t r a n s p o r t a t i o n c o s t . C o r p s E n g i n e e r i n g C i r c u ­

l a r E C - 1 1 2 0 - 2 - 3 3 i s s u e d J u n e 1, 1 9 6 7 f o r t h e C h i e f o f E n g i n e e r s s t a t e s 

t h a t t h e n e t n a t i o n a l b e n e f i t s f r o m w a t e r w a y i m p r o v e m e n t s c o n s i s t s o f 

s a v i n g s i n t h e c o s t o f t r a n s p o r t a t i o n f o r t h e N a t i o n . T h i s c i r c u l a r 

a l s o s t a t e d t h a t t h e r a t e s a v i n g s t o w a t e r w a y s h i p p e r s d o n o t r e p r e s e n t 

t h e s e n a t i o n a l b e n e f i t s s i n c e t h e y i n c l u d e t r a n s f e r p a y m e n t s t o t h e w a t e r ­

w a y s h i p p e r s f r o m t h e t a x - p a y i n g p u b l i c a n d f r o m e x i s t i n g c a r r i e r s .

P e r h a p s t h e m o s t s e r i o u s d e f i c i e n c y i n t h e C o r p s ' u s u a l e v a l u a t i o n 

o f p r o p o s e d i n l a n d n a v i g a t i o n p r o j e c t s i 8 t h e o m i s s i o n o f a d e t e r m i n a t i o n o f 

t h e l o s s o f n e t i n c o m e t o t h e a l t e r n a t e m o d e s o f t r a n s p o r t a t i o n w h i c h 

w o u l d m o v e t h e t r a f f i c i n t h e a b s e n c e o f t h e w a t e r w a y p r o j e c t . I n c o n ­

n e c t i o n w i t h t h e C o r p s ' e v a l u a t i o n o f t h e p r o p o s e d § 6 3 0 m i l l i o n I l l i n o i s 

W a t e r w a y D u p l i c a t e L o c k s a n d t h e $ 4 2 5 m i l l i o n L o c k s a n d D a m 2 6 r e p l a c e m e n t , 

t h e W e s t e r n R a i l r o a d s h a v e o f f e r e d t o d e v e l o p t h e e s t i m a t e d l o s s o f r a i l ­

r o a d n e t i n c o m e w i t h C o r p s c o o p e r a t i o n i n f u r n i s h i n g t h e f o l l o w i n g i n f o r ­

m a t i o n f o r m a j o r c o m m o d i t y m o v e m e n t s :

1 . C o m m o d i t y o r i g i n a n d d e s t i n a t i o n .

2 . A v e r a g e q u a n t i t y o f m o v e m e n t d u r i n g p r o j e c t l i f e .

3 . R a i l r a t e u s e d i n d e t e r m i n i n g t h e r a t e s a v i n g s t o s h i p p e r s .

T o d a t e , t h e C o r p s h a s m a d e n o r e s p o n s e t o t h i s o f f e r .

E x c u s e s f o r C o n f i n i n g t h e P r o j e c t E v a l u a t i o n t o t h e D i r e c t B e n e f i c i a r i e s

T h e C o r p s h a s c o m e u p w i t h v a r i o u s e x c u s e s f o r c o n f i n i n g i t s e c o n o m i c 

e v a l u a t i o n o f n a v i g a t i o n p r o j e c t s t o t h e d i r e c t b e n e f i c i a r i e s ( i . e . t h e 

p o t e n t i a l w a t e r w a y s h i p p e r s ) . O n e o f t h e m o s t f r e q u e n t e x c u s e s i s t h a t 

t h e t r a n s p o r t a t i o n r a t e s a v i n g s t o t h e s h i p p e r s c a n b e a s s u m e d t o b e 

" p u b l i c " b e n e f i t s s i n c e t h e s a v i n g s i n w a t e r w a y r a t e s a r e s u p p o s e d l y
1 1 7 9

8 -

p a s s e d o n t o t h e c o n s u m i n g p u b l i c . F r o m t h e c o m p r e h e n s i v e p u b l i c v i e w ­

p o i n t , i t i s c o m p l e t e l y i m m a t e r i a l a s t o w h e t h e r a n y o f t h e r a t e s a v i n g s 

a r e p a s s e d o n t o t h e c o n s u m e r s . P u b l i c b e n e f i t s e x i s t s o l e l y o n t h e b a s i s 

o f w h e t h e r o r n o t t h e r e i s a s a v i n g s i n t h e c o s t o f t h e r e s o u r c e s n e c e s s a r y 

t o p r o v i d e t h e t r a n s p o r t a t i o n s e r v i c e .

T h e C o r p s * e x c u s e f o r n o t f o l l o w i n g t h e F e d e r a l i n t e r - a g e n c y s t a n d a r d s 

f o r a d j u s t i n g t h e b e n e f i t s t o t h e s h i p p e r s t o o b t a i n t h e b e n e f i t s t o t h e 

N a t i o n w a s p r e s e n t e d a s f o l l o w s o n p a g e 2 9 9 o f P a r t I , V o l u m e 3 o f t h e 

1 9 5 1 A n n u a l R e p o r t o f t h e C h i e f o f E n g i n e e r s :

" L o s s t o c o m p e t i n g l a n d c a r r i e r s . T h e a p p a r e n t l o s s o f 

t r a f f i c b y e x i s t i n g c a r r i e r s f r o m d i v e r s i o n o f t r a f f i c 

t o a w a t e r w a y i s n o t a p p l i e d a s a r e d u c t i o n o f b e n e f i t .

T h e C o r p s o f E n g i n e e r s c o n s i d e r s t h a t t h e r e i s a n o v e r a l l 

e c o n o m i c g a i n t o t h e N a t i o n w h e n t r a n s p o r t a t i o n i s m a d e 

a v a i l a b l e t o t h e p u b l i c a t l o w e r c o s t a n d t h a t , a s h a s 

h a p p e n e d i n m o s t s u c h c a s e s , b e n e f i t s t o o v e r l a n d c a r r i e r s 

f r o m f e e d e r a n d t r a n s f e r t r a f f i c d e v e l o p i n g a s a r e s u l t 

o f t h e w a t e r w a y w i l l i n t h e l o n g r u n o f f s e t l o s s e s b y 

o v e r l a n d c a r r i e r s o f s h i p m e n t s s u i t e d t o w a t e r m o v e m e n t . "

O m i t t i n g t h e a d v e r s e e f f e c t o f a n a v i g a t i o n p r o j e c t i n t h e e c o n o m i c 

e v a l u a t i o n f o r t h e r e a s o n i t h a s b e e n d e c i d e d i n a d v a n c e t h a t t h e p r o j e c t 

p r o v i d e s a n o v e r a l l e c o n o m i c g a i n t o t h e N a t i o n i s u n t e n a b l e . T h e l o s s 

i n r e v e n u e f r o m t h e p r o f i t a b l e l o n g - h a u l r a i l s e r v i c e w o u l d g r e a t l y e x c e e d 

a n y g a i n i n r e v e n u e f r o m r a i l f e e d e r a n d t r a n s f e r t r a f f i c .

C o r p s I n t e r p r e t a t i o n T h a t S e c t i o n 7 ( a ) R e q u i r e s t h e E c o n o m i c A n a l y s i s B e

C o n f i n e d t o t h e W a t e r w a y S h i p p e r s i s U n t e n a b l e

T h e C o r p s s t e a d f a s t l y m a i n t a i n s t h a t S e c t i o n 7 ( a) o f t h e D . O . T . A c t 

( P u b l i c L a w 8 9 - 6 7 0 ) , w h i c h p r e s e n t s t h e p r o c e d u r e f o r e v a l u a t i n g t h e p r i ­

m a r y d i r e c t n a v i g a t i o n b e n e f i t s , r e q u i r e s t h a t i t c o n f i n e i t s e c o n o m i c 

a n a l y s i s o f n a v i g a t i o n p r o j e c t s t o o n l y t h e r a t e s a v i n g s t o t h e w a t e r w a y 

s h i p p e r s . T h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t o f J u n e , 1 9 7 3 s t a t e s , o n 

p a g e s 1 1 7 a n d 1 1 8 , i t i s u n f o r t u n a t e a n d u n n e c e s s a r y t h a t t h i s i n t e r p r e t a ­

t i o n h a s b e e n m a d e .

T h e C o r p s ' i n t e r p r e t a t i o n o f S e c t i o n 7 ( a ) m e a n s t h a t n e i t h e r t h e 

b e n e f i t s n o r l o s s e s t o o t h e r g r o u p s , b e s i d e s t h e w a t e r w a y s h i p p e r s , t h a t 

a r e d i r e c t l y a f f e c t e d b y a n a v i g a t i o n p r o j e c t a r e t o b e e v a l u a t e d , t h a t 

t h e t r a n s p o r t a t i o n b e n e f i t s t o t h e n a t i o n a r e n o t t o b e d e t e r m i n e d , a n d 

t h a t t h e d e s i r a b i l i t y o f t h e p r o j e c t i s t o b e b a s e d s o l e l y o n t h e e x t e n t 

o f t h e p r o j e c t b e n e f i t s t o t h e d i r e c t b e n e f i c i a r i e s ( i . e . , t h e p r o s p e c t i v e 

w a t e r w a y s h i p p e r s ) . T h i s i n t e r p r e t a t i o n w o u l d a p p e a r t o b e u n t e n a b l e i n 

v i e w o f t h e p r o v i s i o n s o f S e c t i o n 1 2 2 o f t h e s u b s e q u e n t P u b l i c L a w 9 1 - 6 1 1 

( R i v e r a n d H a r b o r a n d F l o o d C o n t r o l A c t o f 1 9 7 0 ) . I n S e c t i o n 1 2 2 C o n g r e s s

5 4- 2 5 9 0 - 7 5 - 7 4
1 1 8 0

- 9 

d i r e c t e d t h a t g u i d e l i n e s b e p r o m u l g a t e d w h i c h a r e d e s i g n e d t o a s s u r e 

t h a t a l l p o s s i b l e a d v e r s e e c o n o m i c , s o c i a l a n d e n v i r o n m e n t a l e f f e c t s 

o f w a t e r r e s o u r c e p r o j e c t s a r e c o n s i d e r e d a n d t h a t t h e f i n a l d e c i s i o n s 

a r e m a d e i n t h e b e s t o v e r a l l p u b l i c i n t e r e s t .

N a v i g a t i o n P r o j e c t s A r e N o t P l a n n e d a n d E v a l u a t e d a s E l e m e n t s

o f t h e N a t i o n a l T r a n s p o r t a t i o n S y s t e m

U n f o r t u n a t e l y t h e n e e d f o r i n l a n d n a v i g a t i o n p r o j e c t s , i n a d d i t i o n 

t o t h e e c o n o m i c e f f e c t s , a l s o c o n t i n u e s t o b e e v a l u a t e d a l m o s t s o l e l y f r o m 

t h e l i m i t e d v i e w p o i n t o f t h e p r o s p e c t i v e w a t e r w a y s h i p p e r s . A s s t a t e d i n 

t h e N a t i o n a l W a t e r C o m m i s s i o n R e p o r t , t h e i n l a n d w a t e r w a y s y s t e m i s i n e s ­

c a p a b l y a n e l e m e n t o f t h e n a t i o n a l t r a n s p o r t a t i o n s y s t e m y e t t h e w a t e r ­

w a y s a r e n o t p l a n n e d o r e v a l u a t e d a s a p a r t o f t h i s s y s t e m .

T h e C o r p s h a s i g n o r e d t h e n a t i o n a l e c o n o m i c d e v e l o p m e n t o b j e c t i v e 

f o r n a v i g a t i o n p r o j e c t s i n S e n a t e D o c . N o . 9 7 , w h i c h s p e c i f i e d t h a t n a v i ­

g a t i o n p r o j e c t s " p r o v i d e a n e e d e d t r a n s p o r t a t i o n s e r v i c e w i t h a d v a n t a g e 

t o t h e N a t i o n ' s t r a n s p o r t a t i o n s y s t e m . " F o r m e r C h i e f o f E n g i n e e r s , L t . 

G e n . W i l l i a m F . C a s s i d y s t a t e d i n h i s t e s t i m o n y o n A p r i l 7 , 1 9 6 6 b e f o r e 

t h e H o u s e S u b c o m m i t t e e o n E x e c u t i v e a n d L e g i s l a t i v e R e o r g a n i z a t i o n t h a t 

t h e C o r p s i s c o n c e r n e d o n l y w i t h w a t e r r e s o u r c e d e v e l o p m e n t a n d a r e n o t 

i n v o l v e d w i t h t h e o t h e r f i e l d s o f t r a n s p o r t a t i o n .

T h e r e I s a T o t a l l y I n a d e q u a t e C o n s i d e r a t i o n o f T r a n s p o r t a t i o n A l t e r n a t i v e s

T h e c o n s i d e r a t i o n o f a l t e r n a t i v e s t o n a v i g a t i o n p r o j e c t s i s d e p e n d e n t 

u p o n t h e p l a n n i n g g o a l . A s i n d i c a t e d i n t h e O c t o b e r 2 , 1 9 7 4 c o m m u n i c a t i o n 

f r o m t h e L o w e r M i s s i s s i p p i V a l l e y D i v i s i o n o f t h e C o r p s t o t h e D i r e c t o r 

o f C i v i l W o r k s :

" I f w e s t a t e o u r o b j e c t i v e a s p r o v i d i n g w a t e r n a v i g a t i o n 

f a c i l i t i e s w h i c h p r o v i d e a n e e d e d t r a n s p o r t a t i o n s e r v i c e 

w i t h a d v a n t a g e t o t h e N a t i o n ' s t r a n s p o r t a t i o n s y s t e m a s 

s t a t e d i n S e n a t e D o c u m e n t 9 7 , t h e n w e m u s t l o o k a t r a i l , 

h i g h w a y s , p i p e l i n e s , a n d o t h e r m o d e s a s t r u e a l t e r n a t i v e s 

t o t h e w a t e r w a y . O n t h e o t h e r s i d e o f t h e c o i n , i f w e 

a s s u m e t h e p r o j e c t o b j e c t i v e i s t o p r o v i d e a n a v i g a b l e 

w a t e r w a y s y s t e m , t h e n w e d o n o t h a v e t o a n a l y z e r a i l , 

h i g h w a y s , a n d p i p l i n e s a s a l t e r n a t i v e s . "

T h e O c t o b e r 2 4 . 1 9 7 4 r e p l y f r o m t h e D i r e c t o r o f C i v i l W o r k s , M a j .

G e n . J o h n W . M o r r i s , s t a t e d :

" I a g r e e w i t h y o u r c o n t e n t i o n t h a t t h e C o r p s c a n n o t a s s u m e 

r e s p o n s i b i l i t y f o r t o t a l t r a n s p o r t a t i o n p l a n n i n g o f t h e 

U n i t e d S t a t e s . T h e f a c t t h a t i n l a n d n a v i g a t i o n i s b u t o n e 

f o r m o f t r a n s p o r t a t i o n , h o w e v e r , i s i n e s c a p a b l e . "
1 1 8 1

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I n h i s r e m a r k s o n A p r i l 2 3, 1 9 7 5 b e f o r e t h e W a t e r a n d T r a n s p o r t a t i o n 

a n d C o m m e r c e p a n e l a t t h e N a t i o n a l C o n f e r e n c e o n W a t e r , G e n . M o r r i s 

p r o p o s e d t h a t t h e p a n e l c o n c l u d e t h a t t h e p l a n n i n g o b j e c t i v e f o r n a v i ­

g a t i o n p r o j e c t s i s t o p r o v i d e o u r N a t i o n w i t h " a f i r s t - r a t e w a t e r t r a n s ­

p o r t a t i o n s y s t e m " H e s t a t e d t h a t w i t h t h i s o b j e c t i v e :

" T h e r e s t i s p r e t t y e a s y b e c a u s e w e d o n ' t n e e d t o d e b a t e 

c o m p e t i t i o n b e t w e e n t h e r a i l r o a d s a n d t h e w a t e r w a y s ; w e 

d o n ' t n e e d t o d r a g t h e w a t e r r e s o u r c e s p r o g r a m t h r o u g h 

t h i s e n d l e s s i t e r a t i o n a n d r e i t e r a t i o n o f a n n u a l j u s t i f i ­

c a t i o n o f b e n e f i t - c o s t a n a l y s i s ; w e c a n g e t a w a y f r o m 

d i s c o u n t r a t e c o n s i d e r a t i o n s ; w e c a n e v e n s e t a s i d e t h e 

i s s u e o f u s e r f e e s . .. "

I t i s c l e a r t h a t G e n . M o r r i s h a s r e j e c t e d t h e n a t i o n a l e c o n o m i c d e v e l o p ­

m e n t o b j e c t i v e i n S e n . D o c . N o . 9 7 t h a t n a v i g a t i o n p r o j e c t s " p r o v i d e a 

n e e d e d t r a n s p o r t a t i o n s e r v i c e w i t h a d v a n t a g e t o t h e N a t i o n ' s t r a n s p o r t a ­

t i o n s y s t e m . "

H o u s t o n U . S . D i s t r i c t C o u r t J u d g e , C a r l 0 . B u e , J r . , i n h i s F e b r u a r y 

1 6 , 1 9 7 3 d e c i s i o n i n S i e r r a C l u b v . F r o e h l k e , 3 5 9 F . S u p p . , 1 2 89 , r e v e a l e d 

t h e i n a d e q u a c y o f t h e C o r p s ' e n v i r o n m e n t a l i m p a c t s t a t e m e n t c o n s i d e r a t i o n 

o f a l t e r n a t i v e s t o t h e T r i n i t y R i v e r n a v i g a t i o n p r o j e c t . H i s d e c i s i o n 

s t a t e d t h a t " c o n s i d e r a t i o n o f a l t e r n a t i v e s t o n a v i g a t i o n w i l l h a v e t o a p ­

p e a r " a n d t h a t " s o m e i n q u i r y m i g h t b e d i r e c t e d t o t h e D e p a r t m e n t o f T r a n s ­

p o r t a t i o n t o d e t e r m i n e w h a t , i f a n y t h i n g , m i g h t c o n s t i t u t e o t h e r r e a s o n a b l e 

a l t e r n a t i v e s . " H i s d e c i s i o n f u r t h e r s t a t e d : " c o m m o n s e n s e d i c t a t e s t h a t 

a n y c o n s i d e r a t i o n o f a l t e r n a t i v e s u n d e r N E P A w o u l d r e q u i r e a n o v e r a l l a s s e s s 

m e n t o f e x i s t i n g t r a n s p o r t a t i o n f a c i l i t i e s i n t h e a r e a o f t h e p r o p o s e d p r o ­

j e c t ."

T h e S t . L o u i s D i s t r i c t ' s a n a l y s i s o f t h e p r o p o s e d r e p l a c e m e n t f o r 

L o c k s & D a m N o . 2 6 i n c l u d e d t h e p r o f o u n d s t a t e m e n t t h a t " T h e p r o j e c t 

i n v o l v e s a t r a d e - o f f i n t h a t m o n e t a r y r e s o u r c e s t h a t w i l l b e u s e d f o r 

t h e p r o j e c t c o u l d b e e m p l o y e d t o i m p r o v e a l t e r n a t e m e t h o d s o f t r a n s p o r t a ­

t i o n . "

R a i l E l e c t r i f i c a t i o n W o u l d C o n s t i t u t e a F a r M o r e W o r t h w h i l e 

T r a n s p o r t a t i o n I n v e s t m e n t T h a n C e r t a i n N a v i g a t i o n E x p a n s i o n P r o p o s a l s

A n i m p o r t a n t t r a n s p o r t a t i o n i n v e s t m e n t w h i c h s h o u l d b e c o n s i d e r e d 

a s a n a l t e r n a t i v e t o c e r t a i n c o s t l y n a v i g a t i o n e x p a n s i o n p r o p o s a l s i s 

e l e c t r i f i c a t i o n o f h i g h t r a f f i c d e n s i t y r a i l l i n e s . I t h a s b e e n w e l l 

d o c u m e n t e d t h a t r a i l e l e c t r i f i c a t i o n h a s o u t s t a n d i n g a d v a n t a g e s . U n ­

d o u b t e d l y t h e t w o p r i n c i p l e r e a s o n s w h y o u r A m e r i c a n r a i l r o a d s h a v e n o t 

f o l l o w e d t h e l e a d o f t h e g o v e r n m e n t - o w n e d E u r o p e a n a n d J a p a n e s e r a i l r o a d s 

i n g o i n g t o r a i l e l e c t r i f i c a t i o n i s t h a t h e r e t o f o r e a n a m p l e s u p p l y o f 

i n e x p e n s i v e d i e s e l f u e l h a s b e e n a v a i l a b l e a n d t h e h i g h i n i t i a l i n v e s t m e n t
1 1 8 2

i ­

e f r a i l e l e c t r i f i c a t i o n r e p r e s e n t s a s u b s t a n t i a l f i n a n c i a l o u t l a y t o o u r 

p r i v a t e l y o w n e d r a i l r o a d s . T o d a y w i t h t h e h i g h p r i c e a n d s h o r t a g e o f 

p e t r o l e u m f u e l s , t h e a d v a n t a g e s o f m a i n l i n e r a i l e l e c t r i f i c a t i o n a r e 

g r e a t e r t h a n e v e r . A s s t a t e d b y t h e t h e n F e d e r a l R a i l r o a d A d m i n i s t r a t o r , 

J o h n W . I n g r a m , d u r i n g h i s p r e s e n t a t i o n a t t h e M a y 6 - 8 , 1 9 7 4 c o n f e r e n c e 

o n " T h e R o l e o f t h e U . S . R a i l r o a d s i n M e e t i n g t h e N a t i o n ' s E n e r g y R e q u i r e ­

m e n t s " a t t h e U n i v e r s i t y o f ’i s c o n s i n i n M a d i s o n , " e v e r y t h e o r e t i c a l a r g u ­

m e n t t h a t c a n b e m a d e i n f a v o r o f e l e c t r i f i c a t i o n o f m a i n l i n e r a i l r o a d s 

i s c l o s e t o f l a w l e s s , " I t h a s s u c h o u t s t a n d i n g e n v i r o n m e n t a l a d v a n t a g e s , 

f o r i n s t a n c e , t h a t e v e n t h e A . T . K e a r n e y F e b r u a r y , 1 9 7 4 s t u d y o f D o m e s t i c 

M a r i n e T r a n s p o r t a t i o n f o r t h e M a r i t i m e A d m i n i s t r a t i o n s t a t e d [ o n p a g e 1 4 5 

o f r e p o r t C O M - 7 4 - 1 0 4 1 2 ] t h a t t h e c o n v e r s i o n o f h i g h d e n s i t y r a i l r o u t e s 

t o e l e c t r i f i c a t i o n " m a y b e s p u r r e d b y e n v i r o n m e n t a l c o n s i d e r a t i o n s a s w e l l 

a s r e s o u r c e c o n s e r v a t i o n . "

I n a d d i t i o n t o t h e e n v i r o n m e n t a l a d v a n t a g e s , r a i l e l e c t r i f i c a t i o n 

c o u l d s i g n i f i c a n t l y r e d u c e o u r n a t i o n ' s c o n s u m p t i o n o f p e t r o l e u m f u e l s , 

s i g n i f i c a n t l y r e d u c e r a i l o p e r a t i n g c o s t s a n d p r o v i d e a 1 5 t o 2 5 p e r c e n t 

o r m o r e r e t u r n o n i n v e s t m e n t . A c c o r d i n g t o a m a j o r m a n u f a c t u r e r o f l o c o ­

m o t i v e s i n t h i s c o u n t r y , e l e c t r i c l o c o m o t i v e s h a v e t w i c e t h e l i f e o f 

d i e s e l l o c o m o t i v e s , a r e t w o - t h i r d s l e s s e x p e n s i v e t o m a i n t a i n o n a h o r s e ­

p o w e r b a s i s , a n d h a v e h a l f t h e o u t - o f - s e r v i c e t i m e . E l e c t r i c l o c o m i t i v e s 

h a v e t h e p o t e n t i a l f o r h i g h e r s p e e d a n d l o n g e r t r a i n o p e r a t i o n s w h i c h c o u l d 

i m p r o v e t h e u t i l i z a t i o n o f f r e i g h t c a r s a n d f u r t h e r i n c r e a s e t h e g r e a t 

l i n e - h a u l c a p a c i t y o f o u r r a i l r o a d s . B a s e d o n a p a p e r p r e s e n t e d A p r i l 2 4 , 

1 9 7 4 b y t h e t h e n M a n a g e r o f R a i l E l e c t r i f i c a t i o n f o r t h e G e n e r a l E l e c t r i c 

C o . , M r . S . G r a h a m H a m i l t o n , r a i l e l e c t r i f i c a t i o n w o u l d c o s t $ 9 0 , 0 0 0 t o 

$ 1 0 0 , 0 0 0 p e r m i l e . T h i s i n c l u d e s o v e r h e a d c a t e n a r y p o w e r l i n e s , t h e n e c ­

e s s a r y c h a n g e s i n t h e r a i l s i g n a l a n d c o m m u n i c a t i o n s y s t e m , a n d e l e c t r i c 

p o w e r s u b s t a t i o n s a l o n g t h e r a i l r o a d . F o r t h e p r o p o s e d 2 2 , 0 0 0 m i l e n a t i o n ­

w i d e r a i l e l e c t r i f i c a t i o n s y s t e m , o n w h i c h m o r e t h a n 5 0 % o f t h e t o t a l 

r a i l r o a d t o n - m i l e s c u r r e n t l y m o v e s , t h e c o s t w o u l d b e o n l y a p o r t i o n o f 

t h e e s t i m a t e d c o s t f o r t h e p r o p o s e d c o m p r e h e n s i v e e x p a n s i o n o f t h e a p p r o x ­

i m a t e l y 1 2 0 0 m i l e s o f c o m m e r c i a l n a v i g a t i o n i n t h e U p p e r M i s s i s s i p p i R i v e r 

s y s t e m . M r . H a m i l t o n a l s o s t a t e d " I f t h e s e 2 2 , 0 0 0 m i l e s o f r a i l r o a d w e r e 

e l e c t r i f i e d t o d a y , i t w o u l d s a v e 2 b i l l i o n g a l l o n s o f f u e l a y e a r . "

T h e D e p a r t m e n t o f T r a n s p o r t a t i o n I s t h e P r o p e r A g e n c y F o r E v a l u a t i n g I f A

N a v i g a t i o n P r o j e c t P r o v i d e s a N e e d e d T r a n s p o r t a t i o n S e r v i c e W i t h A d v a n t a g e

t o t h e N a t i o n ' s T r a n s p o r t a t i o n S y s t e m

C o n g r e s s r e c o g n i z e d t h e n e e d f o r a n a g e n c y t o r e v i e w t h e o v e r a l l 

t r a n s p o r t a t i o n i m p a c t s o f n a v i g a t i o n p r o j e c t s w h e n i t d i r e c t e d t h a t t h e 

D e p a r t m e n t b e i n c l u d e d i n t h e W a t e r R e s o u r c e s C o u n c i l . T h e h e a r i n g s o n 

t h e l e g i s l a t i o n e s t a b l i s h i n g t h e D . O . T . i n d i c a t e t h a t t h e D e p a r t m e n t 

w a s t o p a r t i c i p a t e i n e s t a b l i s h i n g s t a n d a r d s a n d c r i t e r i a f o r t h e t r a n s ­

p o r t a t i o n f e a t u r e s o f w a t e r r e s o u r c e p r o j e c t s . A l s o d u r i n g t h e h e a r i n g s 

o n M a r c h 2 9 , 1 9 6 6 , M a j o r G e n . M a c D o n n e l l , A c t i n g C h i e f o f E n g i n e e r s ,
1 1 8 3

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s t a t e d :

" W e b e l i e v e i t i s l o g i c a l t h a t a D e p a r t m e n t o f T r a n s p o r t a t i o n 

s h o u l d b e t h e f o c a l p o i n t f o r d e v e l o p i n g t r a f f i c p r o j e c t i o n s 

a n d o t h e r e c o n o m i c b a c k g r o u n d d a t a r e l e v a n t t o n a v i g a t i o n a n d 

o t h e r F e d e r a l t r a n s p o r t a t i o n p r o j e c t s , a n d t h e C o r p s o f E n g i n e e r s 

w o u l d , o f c o u r s e , w e l c o m e t h e a s s i s t a n c e o f t h e n e w D e p a r t m e n t i n 

t h i s r e g a r d . "

I n f o r m a t i o n C o n g r e s s S p e c i f i e d f o r E v a l u a t i n g O t h e r T r a n s p o r t a t i o n

I n v e s t m e n t P r o p o s a l s i s A l s o N e e d e d f o r N a v i g a t i o n P r o p o s a l s

I n o r d e r t o c o r r e c t t h e f u n d a m e n t a l d e f e c t t h a t i n l a n d w a t e r w a y 

p r o j e c t s a r e n o t b e i n g p l a n n e d a n d e v a l u a t e d a s p a r t o f t h e n a t i o n a l 

t r a n s p o r t a t i o n s y s t e m a n d t o d e t e r m i n e i f a p r o p o s e d n a v i g a t i o n p r o j e c t 

w o u l d p r o v i d e a n e e d e d t r a n s p o r t a t i o n s e r v i c e w i t h a d v a n t a g e t o t h e 

N a t i o n ' s t r a n s p o r t a t i o n s y s t e m , i t i s i m p e r a t i v e t h a t t h e a g e n c y p l a n n i n g 

n a v i g a t i o n p r o j e c t s h a v e a c c e s s t o c e r t a i n i n f o r m a t i o n o n t h e t o t a l t r a n s ­

p o r t a t i o n s y s t e m i n t h e s t u d y a r e a . T h e s p e c i f i c i n f o r m a t i o n n e e d e d t o 

m a k e t h i s d e t e r m i n a t i o n i s e s s e n t i a l l y t h e f o l l o w i n g w h i c h s e c t i o n 7 ( b ) 

o f P u b l i c L a w 8 9 - 6 7 0 ( t h e D . O . T . A c t ) r e q u i r e s t h e S e c r e t a r y o f T r a n s p o r t a ­

t i o n t o f u r n i s h f o r v a r i o u s o t h e r t r a n s p o r t a t i o n i n v e s t m e n t p r o p o s a l s :

" p r o j e c t e d g r o w t h o f t r a n s p o r t a t i o n n e e d s a n d t r a f f i c i n 

t h e a f f e c t e d a r e a , t h e r e l a t i v e e f f i c i e n c y o f v a r i o u s m o d e s 

o f t r a n s p o r t , t h e a v a i l a b l e t r a n s p o r t a t i o n s e r v i c e s i n t h e 

a r e a , a n d t h e g e n e r a l e f f e c t o f t h e p r o p o s e d i n v e s t m e n t o n 

e x i s t i n g m o d e s a n d o n t h e r e g i o n a l a n d n a t i o n a l e c o n o m y . "

E s s e n t i a l l y n o n e o f t h i s i n f o r m a t i o n i s c u r r e n t l y b e i n g o b t a i n e d 

w h e n d e t e r m i n i n g t h e n e e d a n d e c o n o m i c f e a s i b i l i t y o f i n l a n d n a v i g a t i o n 

p r o j e c t s .

U s e o f C o s t S h a r i n g t o E s t a b l i s h P r o j e c t W o r t h i n e s s a n d P r o m o t e t h e

C o n s e r v a t i o n a n d E f f i c i e n t U s e o f O u r N a t i o n ' s R e s o u r c e s

A n i m p o r t a n t o b j e c t i v e t o b e c o n s i d e r e d f o r w a t e r w a y c o s t s h a r i n g i s 

t o p r o m o t e t h e c o n s e r v a t i o n a n d e f f i c i e n t u s e o f o u r N a t i o n ' s r e s o u r c e s .

F o r e x i s t i n g w a t e r w a y p r o j e c t s , a s e g m e n t e d w a t e r w a y u s e r t a x w o u l d c l e a r l y 

i d e n t i f y t h e u n e c o n o m i c a l s e g m e n t s o f o u r N a t i o n ' s i n l a n d w a t e r w a y s y s t e m . 

J u s t a s i n t h e r a i l r o a d i n d u s t r y , w h e r e t h e r e a r e u n e c o n o m i c a l b r a n c h l i n e s 

t h e r e a r e c l e a r l y u n e c o n o m i c a l s e g m e n t s o f o u r i n l a n d w a t e r w a y s y s t e m . T h e 

M i s s o u r i R i v e r n a v i g a t i o n p r o j e c t i s a c l a s s i c e x a m p l e . T h e c o n t i n u e d i n ­

c r e a s e i n t h e c o s t o f o p e r a t i n g a n d m a i n t a i n i n g t h i s p r o j e c t , t o g e t h e r 

w i t h t h e e s s e n t i a l l y c o n s t a n t a n n u a l w a t e r w a y c o m m e r c i a l t o n n a g e o f o n l y 

a b o u t 2 . 5 m i l l i o n t o n s t h e p a s t e l e v e n y e a r s , h a s r e s u l t e d i n a n a n n u a l 

o p e r a t i o n a n d m a i n t e n a n c e c o s t a m o u n t i n g t o $ 6 p e r t o n o f t r a f f i c . T h e 

p r o j e c t w h e n a u t h o r i z e d w a s t o s a v e s h i p p e r s o n l y § 1 p e r t o n o f c o m m e r c i a l
1 1 8 4

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t r a f f i c .

F o r n e w w a t e r w a y p r o j e c t s , c o n s t r u c t i o n c o s t s h a r i n g b y t h e 

d i r e c t b e n e f i c i a r i e s w o u l d c o n s t i t u t e a p r a c t i c a l a n d t r u l y m e a n i n g f u l 

m e a s u r e o f w h e t h e r t h e p r o j e c t i s r e a l l y n e e d e d a n d r e p r e s e n t s e f f i c i e n t 

u t i l i z a t i o n a n d c o n s e r v a t i o n o f o u r N a t i o n ' s r e s o u r c e s . T h e D e c e m b e r 5 , 

1 9 5 2 H o u s e P u b l i c W o r k s S u b c o m m i t t e e r e p o r t o n “ T h e C i v i l F u n c t i o n s P r o ­

g r a m o f t h e C o r p s o f E n g i n e e r s , ” s t a t e d ( on p a g e 3 4 , H o u s e C o m m i t t e e P r i n t 

N o . 2 1, 8 2 n d C o n g r e s s ) : " A s k e p t i c a l a p p r o a c h s h o u l d b e t a k e n i n t h e a c ­

c e p t a n c e o f f a v o r a b l e e c o n o m i c a n a l y s i s b a s e d e n t i r e l y o n t h e t h e o r e t i c a l 

a n d m a t h e m a t i c a l c o m p u t a t i o n s , " a nd , " A m o r e p r a c t i c a l m e a s u r e o f t h e 

w o r t h i n e s s o f a n u n d e r t a k i n g i s t h e w i l l i n g n e s s o f t h e i m m e d i a t e b e n e f i ­

c i a r i e s t o p a r t i c i p a t e i n t h e w o r k b y t h e c o n t r i b u t i o n o f f u n d s p r o p o r ­

t i o n a t e t o t h e l o c a l b e n e f i t s . "

T h e f o l l o w i n g s i m i l a r s p e c i f i c o b j e c t i v e f o r w a t e r w a y c o s t s h a r i n g 

w a s p r e s e n t e d i n t h e J u n e , 1 9 7 3 r e p o r t o f t h e N a t i o n a l W a t e r C o m m i s s i o n :

" I f n o n - F e d e r a l i n t e r e s t s a g r e e t o r e p a y t h e f i r s t c o s t o f a 

w a t e r w a y , t h e C o n g r e s s a n d t h e p u b l i c c a n b e s u r e t h a t t h o s e 

u r g i n g t h e p r o j e c t a r e s i n c e r e i n b e l i e v i n g t h a t i t i s j u s t i f i e d . 

T h u s , c o s t s h a r i n g w o u l d b e e f f e c t i v e i n e l i m i n a t i n g p o l i t i c a l 

p r e s s u r e s f r o m a g r o u p s e e k i n g a p r o j e c t f o r n o o t h e r r e a s o n 

t h a n t h a t t h e y e x p e c t i t t o b e p a i d f o r b y t h e F e d e r a l T r e a s u r y . "

W o r t h i n e s s o f N a v i g a t i o n I m p r o v e m e n t s i s Q u e s t i o n a b l e B a s e d O n C o u n c i l ' s

C o n c l u s i o n T h a t W a t e r w a y U s e r s C o u l d N o t R e p a y E v e n T w e n t y F i v e P e r c e n t

o f P r o j e c t C o s t s

W h i l e t h e W a t e r R e s o u r c e s C o u n c i l ' s I n t e r d e p a r t m e n t a l T a s k F o r c e 

r e p o r t o f A u g u s t 1 9 7 3 a g r e e d w i t h t h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t 

t h a t " P r e s e n t c o s t - s h a r i n g p o l i c i e s t e m p t F e d e r a l w a t e r p r o j e c t b e n e f i c i ­

a r i e s t o r e q u e s t p r o j e c t s t h a t t h e y w o u l d n o t b e w i l l i n g t o p a y f o r i f 

t h e i r o w n m o n e y w e r e i n v o l v e d . . . ," t h e T a s k F o r c e t o o k e x c e p t i o n t o 

t h e C o m m i s s i o n ' s r e c o m m e n d a t i o n t h a t t h e p r o j e c t b e n e f i c i a r y r e p a y m e n t 

s h o u l d b e a t t h e 1 0 0 % l e ve l . T h e T a s k F o r c e c o n c l u d e d t h a t “ f u l l r e p a y ­

m e n t w i t h i n t e r e s t w o u l d p r o b a b l y e l i m i n a t e f o r t h e f o r e s e e a b l e f u t u r e 

n e w m a j o r m u l t i p u r p o s e w a t e r p r o j e c t s w i t h f l o o d c o n t r o l , n a v i g a t i o n , 

a n d i r r i g a t i o n a s p r i n c i p a l f u n c t i o n s . " I n a d d i t i o n t o t h e 1 0 0 % l e v e l, 

t h e T a s k F o r c e a l s o c o n s i d e r e d t h e w i l l i n g n e s s a n d a b i l i t y o f t h e d i r e c t 

b e n e f i c i a r i e s o f w a t e r r e s o u r c e p r o j e c t s t o r e p a y F e d e r a l c o s t s a t t h e 

5 0 % l e v e l a n d t h e 2 5 % l e v e l . O n t h e b a s i s o f t h e i r s t u d y , t h e T a s k F o r c e 

m a d e t h e f o l l o w i n g c o n c l u s i o n :

" E x c e p t f o r n a v i g a t i o n , i t i s t h e j u d g e m e n t o f t h e T a s k F o r c e 

t h a t a m i n i m u m n o n - F e d e r a l c o s t s h a r i n g o f 2 5 p e r c e n t o f d i r e c t 

i n v e s t m e n t c o s t s o f F e d e r a l a n d F e d e r a l l y a s s i s t e d p r o j e c t s 

c o u l d b e m e t b y a l l p u r p o s e s . "
1 1 8 5

- 1 4 -

B a s e d o n t h e N a t i o n a l W a t e r C o m m i s s i o n p o s i t i o n t h a t a 1 0 0 % r e p a y m e n t 

c o m m i t m e n t b y t h e d i r e c t b e n e f i c i a r i e s i s n e c e s s a r y f o r C o n g r e s s a n d t h e 

p u b l i c t o b e s u r e t h a t t h o s e u r g i n g t h e p r o j e c t b e l i e v e i t i s j u s t i f i e d , 

t h i s c o n c l u s i o n b y t h e T a s k F o r c e r a i s e s a s e r i o u s q u e s t i o n a s t o t he 

r e a l w o r t h i n e s s o f w a t e r r e s o u r c e p r o j e c t s i n g e n e r a l a n d n a v i g a t i o n 

p r o j e c t s i n p a r t i c u l a r . T h e T a s k F o r c e c o n c l u d e d t h a t e v e n a 2 5 % r e p a y ­

m e n t c o u l d n o t b e o b t a i n e d w i t h n a v i g a t i o n p r o j e c t s , y e t t h e w a t e r w a y 

s h i p p e r s o b t a i n 1 0 0 % o f t h e p r i m a r y d i r e c t t r a n s p o r t a t i o n b e n e f i t s c a l ­

c u l a t e d b y t h e C o r p s .

T h e D i r e c t o r o f t h e W a t e r R e s o u r c e s C o u n c i l ' s w r i t t e n r e s p o n s e t o 

t h e q u e s t i o n a s t o w h y t h e i m m e d i a t e b e n e f i c i a r i e s o f n a v i g a t i o n p r o j e c t s 

c o u l d n o t r e p a y a m i n i m u m o f 2 5 p e r c e n t o f f u t u r e d i r e c t i n v e s t m e n t c o s t s 

p l u s t h e o p e r a t i o n a n d m a i n t e n a n c e c o s t s w a s t h a t t h i s c o u l d n o t b e d o n e 

" w i t h o u t s e r i o u s d i s r u p t i o n s t a k i n g p l a c e , t h e r e b y m a k i n g i t i m p o s s i b l e 

f o r n a v i g a t i o n t o r e m a i n a v i a b l e f u n c t i o n . " T h e u n w i l l i n g n e s s a n d / o r 

i n a b i l i t y o f t h e w a t e r w a y u s e r s t o r e p a y e v e n 2 5 % o f t h e f u t u r e F e d e r a l 

c o s t s f o r i n l a n d n a v i g a t i o n p r o j e c t s s u g g e s t s t h a t t h e s e p r o j e c t s a r e 

n o t w o r t h y o f b e i n g u n d e r t a k e n .

C o n g r e s s i o n a l R e q u i r e m e n t f o r t h e R e c o m m e n d e d A p p o r t i o n m e n t o f N a v i g a t i o n

P r o j e c t C o s t s t o t h e S p e c i a l B e n e f i c i a r i e s C o n t i n u e s t o b e I g n o r e d

C o n g r e s s i n t h e R i v e r s a n d H a r b o r s A c t o f 1 9 2 0 e s t a b l i s h e d r e q u i r e m e n t s 

f o r t h e r e c o m m e n d e d a p p o r t i o n m e n t o f n a v i g a t i o n p r o j e c t c o n s t r u c t i o n c o s t s 

t o t h e s p e c i a l o r l o c a l b e n e f i c i a r i e s . H o w e v e r , a s p o i n t e d o u t i n t h e 

1 9 5 5 H o o v e r C o m m i s s i o n T a s k F o r c e r e p o r t o n W a t e r R e s o u r c e s a n d P o w e r , t h i s 

c o s t s h a r i n g p r o v i s i o n h a s n o t b e e n f o l l o w e d .

T h e 1 9 2 0 A c t r e q u i r e s t h a t a l l C o r p s r e p o r t s o n n a v i g a t i o n i m p r o v e m e n t s 

i n d i c a t e t h e e x t e n t t o w h i c h t h e s p e c i a l o r l o c a l b e n e f i c i a r i e s s h o u l d b e 

r e q u i r e d t o s h a r e i n t h e c o n s t r u c t i o n c o s t s a n d t h a t t h i s d e c i s i o n s h o u l d 

b e b a s e d o n t h e p r o p o r t i o n o f t h e i r b e n e f i t s a n d t h e n a t i o n a l b e n e f i t s . I t 

i s t o b e n o t e d t h a t t h i s i s e s s e n t i a l l y t h e s a m e a s t h e 1 9 5 2 H o u s e S u b c o m ­

m i t t e e R e p o r t c o n c l u s i o n t h a t a p r a c t i c a l m e a s u r e o f t h e w o r t h i n e s s o f a n 

u n d e r t a k i n g i s t h e w i l l i n g n e s s o f t h e i m m e d i a t e b e n e f i c i a r i e s t o p a r t i c i ­

p a t e i n t h e w o r k b y t h e c o n t r i b u t i o n o f f u n d s p r o p o r t i o n a t e t o t h e l o c a l 

b e n e f i t s .

T h e C o r p s ' c o n t i n u e d f a i l u r e t o e v a l u a t e t h e b e n e f i t s t o t h e n a t i o n 

f o r n a v i g a t i o n p r o j e c t s h a s p r e v e n t e d c o m p l i a n c e w i t h t h i s c o s t s h a r i n g 

r e q u i r e m e n t . T h e i m p o r t a n t u n a n s w e r e d q u e s t i o n b o t h w i t h r e s p e c t t o t h i s r e ­

q u i r e m e n t a n d t h e w o r t h i n e s s o f n a v i g a t i o n p r o j e c t s i s i W h a t p o r t i o n o f t h e 

p r i m a r y d i r e c t n a v i g a t i o n b e n e f i t s t o t h e w a t e r w a y s h i p p e r s r e p r e s e n t s 

b e n e f i t s t o t h e n a t i o n ?

T h e W a t e r R e s o u r c e s C o u n c i l ' s I n t e r a g e n c y T a s k F o r c e r e p o r t o f
1 1 8 6

- 1 5

A u g . 1 9 7 3 o n c o s t s h a r i n g r e j e c t e d t h e N a t i o n a l W a t e r C o m m i s s i o n ' s r e c o m ­

m e n d a t i o n o f 1 0 0 % r e p a y m e n t o f p r o j e c t c o s t w i t h i n t e r e s t b y t h e d i r e c t 

b e n e f i c i a r i e s b e c a u s e t h e y s a i d t h e s e b e n e f i t s i n c l u d e n a t i o n a l b e n e f i t s .

A t t h e s a m e t i m e t h e W a t e r R e s o u r c e s C o u n c i l h a s n o t r e q u i r e d t h a t t h e 

b e n e f i t s t o t h e n a t i o n f o r n a v i g a t i o n p r o j e c t s b e e v a l u a t e d . C o n s e q u e n t l y , 

b o t h t h e p r o j e c t e v a l u a t i o n f r o m t h e p u b l i c v i e w p o i n t a n d t h e c o s t s h a r i n g 

r e q u i r e m e n t s f o r n a v i g a t i o n p r o j e c t s c o n t i n u e t o b e i g n o r e d .

W e a k n e s s e s a n d D e f i c i e n c i e s i n t h e P r e s e n t I n s t i t u t i o n a l A r r a n g e m e n t s f o r

t h e C o o r d i n a t i o n a n d R e v i e w o f N a v i g a t i o n P r o g r a m s a t t h e N a t i o n a l L e v e l

T h e N a t i o n a l W a t e r C o m m i s s i o n r e p o r t p r e s e n t e d a n e x c e l l e n t a n a l y s i s 

o f t h e w e a k n e s s e s a n d d e f i c i e n c i e s i n t h e p r e s e n t i n s t i t u t i o n a l a r r a n g e ­

m e n t s f o r t h e c o o r d i n a t i o n a n d r e v i e w o f w a t e r r e s o u r c e p r o g r a m s a t t h e 

N a t i o n a l l e v e l . T h e C o m m i s s i o n r e c o g n i z e d t h e w e a k n e s s o f t h e W a t e r 

R e s o u r c e s C o u n c i l t o r e s o l v e c o n t r o v e r s i a l p r o g r a m s a n d p o l i c y i s s u e s , 

e s p e c i a l l y t h o s e w h i c h m i g h t r e s u l t i n f e w e r w a t e r r e s o u r c e p r o j e c t s 

f o r a n a g e n c y . T h e C o m m i s s i o n r e c o g n i z e d t h a t F e d e r a l c o n s t r u c t i o n 

a g e n c i e s t e n d t o c o l o r t h e i r c a l c u l a t i o n s w i t h s e l f - i n t e r e s t i n m a k i n g 

p r o j e c t e v a l u a t i o n s a n d t h a t t h e s e t e n d e n c i e s c a n n o t b e c h e c k e d b y a n 

i n t e r a g e n c y c o o r d i n a t i o n p r o c e s s i n w h i c h a l l p a r t i c i p a n t s a r e e q u a l 

a n d e a c h i s i n c o n t r o l o f h i s o w n s e p a r a t e p r o g r a m . T h e C o m m i s s i o n 

f u r t h e r r e c o g n i z e d t h e n e e d f o r a n i n d e p e n d e n t r e v i e w t o d e t e r m i n e i f 

t h e w a t e r c o n s t r u c t i o n a g e n c i e s * p r o j e c t p r o p o s a l s a r e s o u n d l y c o n c e i v e d 

a n d r e p r e s e n t b e n e f i c i a l i n v e s t m e n t s o f F e d e r a l t a x r e c e i p t s .

W a t e r R e s o u r c e s C o u n c i l ' s P r i n c i p l e s a n d S t a n d a r d s P e r p e t u a t e

T h e C o r p s ' N a v i g a t i o n P r o j e c t E v a l u a t i o n D e f i c i e n c i e s

M o s t i f n o t a l l o f t h e p r e v i o u s l y d i s c u s s e d d e f i c i e n c i e s i n t h e 

C o r p s ' t r a d i t i o n a l e v a l u a t i o n o f t h e n e e d , a l t e r n a t i v e s , a n d e c o n o m i c 

e f f e c t s f o r n a v i g a t i o n p r o j e c t s h a v e b e e n p e r p e t u a t e d b y t h e W a t e r 

R e s o u r c e s C o u n c i l ' s " P r i n c i p l e s a n d S t a n d a r d s " f o r w a t e r a n d r e l a t e d 

l a n d r e s o u r c e s p l a n n i n g , w h i c h w e r e p u b l i s h e d o n p a g e s 2 4 7 7 8 t h r u 2 4 8 6 9 

i n P a r t I I I o f t h e F e d e r a l R e g i s t e r f o r M o n d a y , S e p t . 1 0 , 1 9 7 3 . P e r ­

p e t u a t i o n o f t h e s e d e f i c i e n c i e s w a s a c c o m p l i s h e d b y t h e C o u n c i l ' s a c ­

c e p t a n c e o f t h e C o r p s ' i n t e r p r e t a t i o n o f S e c t i o n 7 ( a) o f t h e D . O . T .

A c t a n d b y d r o p p i n g t h e f o l l o w i n g i m p o r t a n t p r o v i s i o n s i n t h e S e n .

D o c . N o . 9 7 s t a n d a r d s ( a p p r o v e d b y t h e P r e s i d e n t o n M a y 1 5, 1 9 6 2 f o r 

f o r m u l a t i n g a n d e v a l u a t i n g w a t e r r e s o u r c e p r o j e c t s ) n o n e o f w h i c h w e r e 

b e i n g f o l l o w e d b y t h e C o r p s :

1 . T h e n a t i o n a l e c o n o m i c d e v e l o p m e n t o b j e c t i v e t h a t w a t e r 

n a v i g a t i o n f a c i l i t i e s " p r o v i d e a n e e d e d t r a n s p o r t a t i o n 

s e r v i c e w i t h a d v a n t a g e t o t h e n a t i o n ' s t r a n s p o r t a t i o n 

s y s t e m " a n d t h a t m u l t i p l e - p u r p o s e p l a n n i n g b e o n " a f u l l y 

c o m p r e h e n s i v e b a s i s s o a s t o c o n s i d e r - n a v i g a t i o n i n r e l a t i o n 

t o t h e n a t i o n ' s t r a n s p o r t a t i o n s y s t e m . "
1 1 8 7

1 6 -

2 . T h a t t h e " w e l l - b e i n g o f a l l o f t h e p e o p l e s h a l l b e t h e 

o v e r r i d i n g d e t e r m i n a n t i n c o n s i d e r i n g t h e b e s t u s e o f 

w a t e r a n d r e l a t e d l a n d r e s o u r c e s . " A l s o , t h a t " c a r e s h a l l 

b e t a k e n t o a v o i d r e s o u r c e u s e a n d d e v e l o p m e n t f o r t h e 

b e n e f i t o f a f e w o r t h e d i s a d v a n t a g e o f m a ny . "

3 . " A c o m p r e h e n s i v e p u b l i c v i e w p o i n t s h a l l b e a p p l i e d i n t h e 

e v a l u a t i o n o f p r o j e c t e f f e c t s . S u c h a v i e w p o i n t i n c l u d e s 

c o n s i d e r a t i o n o f a l l e f f e c t s , b e n e f i c i a l a n d a d v e r s e , s h o r t 

r a n g e a n d l o n g r a n g e , t a n g i b l e a n d i n t a n g i b l e , t h a t m a y b e 

e x p e c t e d t o a c c r u e t o a l l p e r s o n s a n d g r o u p s w i t h i n t h e

z o n e o f i n f l u e n c e o f t h e p r o p o s e d r e s o u r c e u s e o r d e v e l o p m e n t . "

4 . " N a v i g a t i o n b e n e f i t s : T h e v a l u e o f t h e s e r v i c e s p r o v i d e d 

a f t e r a l l o w a n c e f o r t h e c o s t o f t h e a s s o c i a t e d r e s o u r c e s 

r e q u i r e d t o m a k e t h e s e r v i c e a v a i l a b l e . F o r c o m m o d i t i e s 

t h a t w o u l d m o v e i n t h e a b s e n c e o f t h e p r o j e c t , t h e b e n e f i t 

i s m e a s u r e d b y t h e s a v i n g a s a r e s u l t o f t h e p r o j e c t i n t h e 

c o s t o f p r o v i d i n g t h e t r a n s p o r t a t i o n s e r v i c e . "

[ T h i s c o n s t i t u t e s t h e n a v i g a t i o n b e n e f i t s t o t h e N a t i o n a s 

o p p o s e d t o t h e p r i m a r y d i r e c t n a v i g a t i o n b e n e f i t s t o t h e 

p r o s p e c t i v e w a t e r w a y s h i p p e r s . ]

P r i n c i p l e s & S t a n d a r d s T a s k F o r c e W a s C o r p s D o m i n a t e d a n d W i t h o u t

D e p a r t m e n t o f T r a n s p o r t a t i o n R e p r e s e n t a t i o n

T h e W a t e r R e s o u r c e s C o u n c i l ' s S p e c i a l T a s k F a r c e , w h i c h d e v e l o p e d 

t h e " P r i n c i p l e s a n d S t a n d a r d s , ” w a s d o m i n a t e d b y t h e C o r p s a c c o r d i n g 

t o t h e d e t a i l e d r e v i e w o f t h e w o r k o f t h e T a s k F o r c e p r e s e n t e d i n 

C h a p t e r 8 o f t h e 1 9 7 1 N a d e r T a s k F o r c e r e p o r t o n t h e B u r e a u o f R e c l a ­

m a t i o n e n t i t l e d " D a m m i n g t h e W e s t . " T h e T a s k F o r c e r e p o r t s t a t e d 

t h e C o r p s r e p r e s e n t a t i v e , M r . R o b e r t G i d e z , n o t o n l y d o m i n a t e d t h e 

T a s k F o r c e b u t i n a n A u g . 1 4, 1 9 7 0 i n t e r v i e w h e a s s e r t e d , " I w a s

p r o b a b l y t h e m a j o r a u t h o r o f t h e P r i n c i p l e s d o c u m e n t - - ." I n h i s

i n t r o d u c t i o n o f S . 4 3 3 8 o n S e p t e m b e r 1 4, 1 9 7 0 , S e n a t o r W i l l i a m P r o x m i r e 

e x p r e s s e d c o n c e r n t h a t " n o o n e f r o m t h e D e p a r t m e n t o f T r a n s p o r t a t i o n 

w a s o n t h e T a s k F o r c e w h i c h d e v e l o p e d t h e n e w g u i d e l i n e s . "

T h e D i r e c t B e n e f i c i a r y V i e w p o i n t H a s B e e n P e r p e t u a t e d B y T h e

C o u n c i l ' s D i s t o r t e d I n t e r p r e t a t i o n o f t h e 1 9 3 6 F l o o d C o n t r o l A c t

I n s e c t i o n 1 o f t h e F l o o d C o n t r o l A c t o f 1 9 3 6 , C o n g r e s s e s t a b l i s h e d 

t h e f o l l o w i n g c r i t e r i a f o r t h e j u s t i f i c a t i o n o f f l o o d c o n t r o l p r o j e c t s 

b y t h e F e d e r a l G o v e r n m e n t :
1 1 8 8

1 7 -

" T h a t t h e F e d e r a l G o v e r n m e n t s h o u l d i m p r o v e o r p a r t i c i p a t e 

i n t h e i m p r o v e m e n t o f n a v i g a b l e w a t e r s a n d t h e i r t r i b u t a r i e s 

f o r f l o o d - c o n t r o l p u r p o s e s i f t h e b e n e f i t s t o w h o m s o e v e r t h e y 

m a y a c c r u e a r e i n e x c e s s o f t h e e s t i m a t e d c o s t s a n d t h e l i v e s 

a n d s o c i a l s e c u r i t y o f p e o p l e a r e o t h e r w i s e a d v e r s e l y a f f e c t e d . " 

[ E m p h a s i s a d d e d . ]

T h i s c a n b e r e f e r r e d t o a s t h e " d i r e c t b e n e f i c i a r y " j u s t i f i c a t i o n c r i t e r i a 

s i n c e t h e p r o j e c t n e e d a n d e c o n o m i c j u s t i f i c a t i o n a r e d e t e r m i n e d s o l e l y 

f r o m t h e v i e w p o i n t o f t h e d i r e c t b e n e f i c i a r i e s .

O n p a g e 2 6 o f t h e C o u n c i l ' s P r i n c i p l e s a n d S t a n d a r d s i t i s s t a t e d :

" I n t h e F l o o d C o n t r o l A c t o f 1 9 3 6 , t h e C o n g r e s s d e c l a r e d 

t h a t b e n e f i t s t o w h o m s o e v e r t h e y m a y a c c r u e o f F e d e r a l 

P r o j e c t s s h o u l d e x c e e d c o s t s . "

B y f a i l i n g t o i n d i c a t e t h a t t h i s j u s t i f i c a t i o n c r i t e r i a w a s i n t e n d e d f o r 

f l o o d - c o n t r o l p r o j e c t s o n l y , t h e C o u n c i l h a s p r e s e n t e d a n i n c o m p l e t e a n d 

h e n c e d i s t o r t e d i n t e r p r e t a t i o n o f t h e p r o v i s i o n s o f t h e 1 9 3 6 A c t . I t i s 

q u i t e c l e a r f r o m t h e w o r d i n g o f t h i s a c t t h a t t h i s j u s t i f i c a t i o n c r i t e r i a 

w a s n o t i n t e n d e d f o r n a v i g a t i o n p r o j e c t s . T h i s f a c t w a s c o n f i r m e d i n 

t h e s e c t i o n o n " E c o n o m i c J u s t i f i c a t i o n " o f H o u s e C o m m i t t e e P r i n t # 2 1 f o r 

t h e D e c . 5 , 1 9 5 2 r e p o r t o n " T h e C i v i l F u n c t i o n s P r o g r a m o f t h e C o r p s o f 

E n g i n e e r s . " O n p a g e 3 4 t h i s r e p o r t q u o t e s s e c t i o n 1 o f t h e 1 9 3 6 A c t 

a n d t h e n p r e s e n t s t h e f o l l o w i n g s t a t e m e n t :

" N o s u c h s p e c i f i c c r i t e r i a h a v e b e e n e s t a b l i s h e d b y l a w f o r 

r i v e r a n d h a r b o r i m p r o v e m e n t s i n t h e i n t e r e s t o f n a v i g a t i o n 

a n d r e l a t e d p u r p o s e s . "

T h e r e a r e s i g n i f i c a n t d i f f e r e n c e s b e t w e e n f l o o d c o n t r o l p r o j e c t s 

a n d n a v i g a t i o n p r o j e c t s , e s p e c i a l l y w i t h r e g a r d t o a d v e r s e p r o j e c t 

e f f e c t s , w h i c h m a k e t h e l i m i t e d o r d i r e c t b e n e f i c i a r y v i e w p o i n t t o t a l l y 

i n a d e q u a t e f o r n a v i g a t i o n p r o j e c t s . F l o o d c o n t r o l p r o j e c t s a r e i n t e n d e d 

t o p r e v e n t l o s s e s t o w h o m s o e v e r m a y b e a d v e r s e l y a f f e c t e d b y f l o o ds , 

w h e r e a s n a v i g a t i o n p r o j e c t s a r e p r i m a r i l y i n t e n d e d t o p r o v i d e b e n e f i t s 

t o a l i m i t e d n u m b e r o f l a r g e s h i p p e r s o f b u l k c o m m o d i t i e s . T h e c o n s t r u c ­

t i o n o f f l o o d c o n t r o l p r o j e c t s u s u a l l y d o e s n o t h a v e a n a d v e r s e e f f e c t 

o n a n y p a r t i c u l a r i n d u s t r y o r g r o u p o f p e o p l e , w h e r e a s n a v i g a t i o n p r o j e c t s 

c o n s i s t e n t l y g i v e r i s e t o a l o s s o f i n c o m e t o t h e f o l l o w i n g i d e n t i f i a b l e 

g r o u p s :

a . A l t e r n a t i v e m o d e s o f t r a n s p o r t a t i o n w h i c h w o u l d m o v e t h e b u l k c o m ­

m o d i t i e s i n t h e a b s e n c e o f t h e w a t e r w a y .

b . S h i p p e r s w i t h o u t a c c e s s t o s u b s i d i z e d i n l a n d w a t e r w a y t r a n s ­

p o r t a t i o n t h a t w o u l d c o m p e t e w i t h t h e p r o s p e c t i v e w a t e r w a y 

s h i p p e r s .
1 1 8 9

- 1 8 -

c . S h i p p e r s t h a t w o u l d c o n t i n u e t o r e l y o n t h e a l t e r n a t i v e m o d e s 

m a y b e f a c e d w i t h r a t e i n c r e a s e s t o r e c o v e r t h a t p o r t i o n o f 

t h e a l t e r n a t e t r a n s p o r t a t i o n m o d e s ' f i x e d c o s t s w h i c h h a d 

p r e v i o u s l y b e e n c o v e r e d b y t r a f f i c s u b s e q u e n t l y d i v e r t e d t o 

t h e w a t e r w a y .

T h e o t h e r s i g n i f i c a n t d i f f e r e n c e i s t h e f a c t t h a t w i t h n a v i g a t i o n p r o j e c t s 

t h e r e i s a l m o s t a l w a y s a n a l t e r n a t i v e t r a n s p o r t a t i o n s y s t e m f o r p r o v i d i n g 

t h e t r a n s p o r t a t i o n s e r v i c e .

C o u n c i l C o n t i n u e s t o I g n o r e t h e C o n g r e s s i o n a l R e q u i r e m e n t f o r t h e

S u b m i s s i o n o f C o m m e n t s o n t h e N a t i o n a l W a t e r C o m m i s s i o n R e p o r t

T h e f i n a l r e p o r t o f t h e N a t i o n a l W a t e r C o m m i s s i o n w a s t r a n s m i t t e d 

t o t h e P r e s i d e n t a n d t o t h e U . S . C o n g r e s s o n J u n e 1 4 , 1 9 7 3 i n a c c o r d a n c e 

w i t h P u b l i c L a w 9 0 - 5 1 5 , a p p r o v e d S e p t e m b e r 2 6 , 1 9 6 8 , w h i c h e s t a b l i s h e d 

t h e c o m m i s s i o n . A n i m p o r t a n t p r o v i s i o n o f t h i s a c t i n S e c t i o n 3 (b ) 

s t a t e s t h a t t h e W a t e r R e s o u r c e s " C o u n c i l s h a l l s u b m i t s i m u l t a n e o u s l y 

t o t h e P r e s i d e n t a n d t o t h e U n i t e d S t a t e s C o n g r e s s i t s v i e w s o n t h e 

C o m m i s s i o n ' s r e p o r t s . "

T h e J u n e 2 3 , 1 9 7 3 h e a r i n g o f t h e S e n a t e C o m m , o n I n t e r i o r a n d I n s u l a r 

A f f a i r s ' S u b c o m m i t t e e r e c e i v e d t e s t i m o n y f r o m t h e N a t i o n a l W a t e r C o m m i s ­

s i o n o n i t s f i n a l r e p o r t . T h e s t a t e m e n t s b y t h e C h a i r m a n o f t h e N a t i o n a l 

W a t e r C o m m i s s i o n , M r . C h a r l e s P . L u c e , d u r i n g t h i s h e a r i n g i n c l u d e d t h e 

f o l l o w i n g r e f e r e n c e s t o t h e W a t e r R e s o u r c e s C o u n c i l :

a ) " A c o p y o f t h e p r o p o s e d r e p o r t h a d b e e n d e l i v e r e d e a r l i e r t o

t h e W a t e r R e s o u r c e s C o u n c i l - - ."

b ) " W e u n d e r s t a n d t h a t f u r t h e r h e a r i n g s w i l l b e h e l d w h e n t h e 

r e c o m m e n d a t i o n s o f t h e W a t e r R e s o u r c e s C o u n c i l a n d t h e 

P r e s i d e n t a r e r e c e i v e d , f o l l o w i n g w h i c h t h e r e w i l l b e t e s t i m o n y 

f r o m t h e g e n e r a l p u b l i c . "

c ) " I b e l i e v e t h a t t h e W a t e r R e s o u r c e s C o u n c i l i s n o w i n t h e 

p r o c e s s o f p r e p a r i n g i t s c o m m e n t s o n o u r r e p o r t a n d i s a b l e 

t o c o m e t o t h e C o n g r e s s u n d e r t h e a c t w h i c h c r e a t e d i t . "

A s e c o n d h e a r i n g b e f o r e t h e S u b c o m m i t t e e o n W a t e r a n d P o w e r 

R e s o u r c e s w a s h e l d o n J u l y 1 7, 1 9 7 3 f o r t h e p u r p o s e o f r e c e i v i n g 

t e s t i m o n y f r o m t h e W a t e r R e s o u r c e s C o u n c i l o n t h e f i n a l r e p o r t o f 

t h e N a t i o n a l W a t e r C o m m i s s i o n . T h e s t a t e m e n t b y t h e C h a i r m a n o f t h e 

C o u n c i l , w h i c h w a s p r e s e n t e d b y h i s a l t e r na t e, i n c l u d e d t h e f o l l o w i n g 

r e m a r k s :

" T h e c o m m e n t s p r e s e n t e d t o d a y w i l l b e o f a g e n e r a l n a t u r e 

a n d w i l l a d d r e s s o n l y a f e w h i g h l i g h t s o f t h e C o m m i s s i o n ' s 

r e p o r t T h e C o u n c i l i s n o w i n t h e p r o c e s s o f c o n d u c t i n g 

a m o r e c o m p l e t e r e v i e w t o d e v e l o p C o u n c i l v i e w s a s r e q u i r e d
1 1 9 0

1 9 -

b y s e c ti o n 3( b ) o f t h e N ati o n al W at er C o m mis si o n A ct,

P u b li c La w 9 0- 5 1 5 I t i s c o nte m pla te d t h a t - i n t h e 

i n t e r e s t o f b ot h t h o r o u g h n e s s a n d ti m e li n e s s - C o u n cil 

vie w s w ill b e t r a n s m itt e d t o t h e P r e si d e n t a n d t h e 

C o n g re s s i n a s e r i e s o f r e p o rt s. T h e f i r s t s u c h r e p o rt 

w ill b e t r a n s m itt e d a s s o o n a s t h e C o u n cil h a s h a d ti m e 

t o c a r e f u ll y c o n si d e r s i g n i f i c a n t i s s u e s i n t h e C o m m is si o n's 

r e p o r t."

W hil e i t h a s n o w b e e n o v e r t w o y e a r s si n c e t h e f i n a l r e p o rt o f t h e 

N ati o n al W at er C o m mis si o n wa s r e l e a s e d , t h e C o u n cil h a s y et t o s u b m it 

e v e n t h e f i r s t i n i t s p r o p o s e d s e ri e s o f r e p o rt s t r a n s m itti n g i t s vie w s 

o n t h e C o m m is si o n's r e p o rt. (I n f a i r n e s s i t s h o ul d b e p o i n t e d o ut t h a t 

i n r e s p o n s e t o t h e N o v. 6, 1 9 7 2 " r e vie w d r a ft " o f t h e p r o p o s e d r e p o rt 

o f t h e C o m mis si o n, t h e C o u n c il's D ir e c t o r s u b m it te d a 3 5 p a g e s e t o f 

o b s e r v a ti o n s o n J a n . 1 8, 1 9 7 3. A n i m p o rta nt f a c t, h o w e v er, i s t h a t n o 

c o m m e nts w er e ma de o n t h e s e c ti o n c o v e ri n g T h e I n l a n d W at er w a y P r o g ra m .)

T h e c o nti n u e d f a il u r e o f t h e C o u n cil t o s u b m it i t s vie w s o n t h e C o m m is si o n's 

r e p o rt h a s u n n e c e s s a ril y d ela y e d f u rt h e r c o n s i d e r a ti o n o f t h i s r e p o rt b y 

C o n g re s s a n d h a s p r e v e n t e d t h e r e c e i p t o f te sti m o n y fr o m t h e g e n e r al 

p u b li c.

S u m mar y a n d R ec o m m e n d ati o ns

T his st a t e m e n t i d e n ti f i e s a n d d i s c u s s e s t h e ma n y s e ri o u s d e fi c i e n c i e s 

i n t h e e v a l u a ti o n o f n a v i g a ti o n p r o j e c t s. I t a s s e r t s t h e s e d e fi c i e n c i e s 

a r e l a r g e l y t h e r e s u lt o f t h e f a il u r e t o f o ll o w p r i o r C o n g r e s si o n al a n d 

e x e c u ti v e d e p a rt m e nt d i r e c ti v e s f o r d et e r m i n i n g t h e d e s i r a b ilit y o f n a v ig a ti o n p r o j e c t s. T h e p ri n c i p a l a n d o v er w h el m i n g d e fi c i e n c y i s t h a t n a v ig a ti o n p r o j e c t s c o n ti n u e t o b e e v al u at e d s o l e l y fr o m t h e li m it e d vie w ­

p o i n t of t h e d i r e c t b e n e f i c i a r i e s . Y et t h e c l e a r m a n d ate fr o m C o n g re s s 

i s t h a t t h e d e s i r a b i l i t y o f n a v i g ati o n p r o j e c t s i s t o b e d ete r m i n e d o n 

t h e b a s i s o f t h e p u b li c n e e d a n d b e n e f it.

C o n fi n i n g t h e a n a l y s i s t o t h e vie w p oi n t o f t h e d i r e c t b e n e f i c i a r i e s 

h a s r e s u lt e d i n u n n e c e s s a r y a n d u n e c o n o m ic al i n l a n d n a v i g a ti o n p r o j e c t s.

I t h a s c r e a t e d d i s t o r ti o n s i n t r a n s p o rt a ti o n i n v e st m e nt a n d e x c e s s t r a n s ­

p o rt a ti o n c a p a c it y o f li m it e d u s e f u l n e s s. C u r r e n t e v a l u a ti o n p r o c e d u r e s 

d o n ot g i v e r i s e t o t h e c o n s e r v a ti o n a n d e f f i c i e n t u s e o f o u r N a ti o n's 

r e s o u r c e s n o r p r o v i d e a d e q u ate c o n si d e r a ti o n o f t h e a d v e r s e i m p a cts o f 

a p r o j e c t.

I n o r d e r t o a s s u r e a s o u n d e v a l u a ti o n o f i n l a n d n a v i g a ti o n p r o p o s a l s,

I rec o m me n d t h a t C o n g r e s s r e a f fir m t h e n a ti o n a l ec o n o mic d e v el o p m e nt 

pla n n i n g o b j e c ti v e p r e s e n t e d i n S e n ate D o c u m e nt N o. 9 7, 8 7t h C o n g re s s
1 1 9 1

2 0 -

t h a t n a v i g a ti o n f a c i l i t i e s " p r o v i d e a n ee d e d t r a n s p o r t a ti o n s e r v i c e w it h 

a d v a nta g e t o t h e N a ti o n's t r a n s p o r t a ti o n s y st e m ." A ls o t h a t t h e U. S. 

D e p a rt m e nt o f T r a n s p o rt a ti o n b e gi v e n t h e r e s p o n s i b ilit y f o r m a k i n g t h i s 

e v a l u a ti o n f o r C o n g r e s s.

I f u rt h e r rec o m me n d t h a t C o n g r e s s t a k e c o r r e c ti v e a c ti o n r e g a r d i n g 

t h e p r o ble m e x p r e s s e d i n t h e N ati o n a l W ate r C o m mis si o n r e p o rt o f J u n e,

1 9 7 3 t h a t t h e W ate r R e s o u r c e s C o u n cil h a s b e e n we a k i n r e s o l v i n g c o n ­

t r o v e r s i a l p r o g ra m s a n d p o li c y i s s u e s, e s p e c i a ll y t h o s e w hic h m i g ht r e s u lt 

i n fe w e r w at e r r e s o u r c e p r o j e c t s f o r a me m b er a g e n c y. A n ot h e r m aj o r w ea kn e s s m e nti o n e d i n t h e C o m m is si o n's r e p o rt i s t h a t F e d e r al c o n s t r u c ti o n 

a g e n ci e s te n d t o c o l o r t h e i r c a l c u l a ti o n s w it h s e l f - i n t e r e s t i n m a k i n g 

p r o j e c t e v a l u a ti o n s a n d t h a t t h e s e t e n d e n c i e s c a n n ot b e c h e c k e d b y a n 

i n t e r a g e n c y c o o r d i n a ti o n p r o c e s s i n w hic h a l l p a r ti c i p a n t s a r e e q u al a n d 

e a c h i s i n c o n t r o l o f h i s s e p a r a t e p r o g ra m . T h e N a ti o n al W ate r C o n m is si o n 

r e p o rt s u g g e st e d t h e W ate r R e s o u r c e s C o u n cil s h o ul d h a v e a n i n d e p e n d e nt 

f u ll - ti m e c h air m a n, o p e r a ti n g w it h i n t h e e x e c u ti v e o f f i c e o f t h e P r e si d e n t 

w h o w o ul d a l s o s e r v e a s t h e c h air m a n o f a n i n d e p e n d e nt b o a r d o f r e vie w .

I n 1 9 7 3 P r e si d e n t Ni x o n re c o m m e n de d t h e e st a b li s h m e n t o f a ne w d e p a rt m e nt 

w hic h w o ul d u n if y w ate r r e s o u r c e s p r o g ra m s a n d t o w hic h w o u l d b e t r a n s ­

f e r r e d t h e s t a t u t o r y f u n c ti o n s o f t h e W ate r R e s o u r c e s C o u n c il. I c o n c u r 

w it h t h i s re c o m m e n d ati o n a n d b e li e v e i t r e p r e s e n t s t h e b e s t s o l u ti o n t o 

t h e s e p r o ble m s.

T h is c o n cl u d e s m y w ritt e n st a t e m e n t f o r t h e r e c o r d o f t h i s h e a ri n g .
1 1 9 2

E C O N O M I C I M P L I C A T I O N S O F N A V I G A T I O N P R O J E C T S

( S e r i o u s D e f i c i e n c i e s i n E v a l u a t i n g I n l a n d N a v i g a t i o n 

P r o j e c t s R e v e a l e d i n t h e N a t i o n a l W a t e r C o m m i s s i o n R e p o r t )

B y

G e o r g e E . A n d e r s o n , W a t e r R e s o u r c e s A n a l y s t 

E x e c u t i v e C o m m i t t e e - W e s t e r n R a i l r o a d T r a f f i c A s s o c i a t i o n 

2 2 2 S o u t h R i v e r s i d e P l a z a

C h i c a g o , I l l i n o i s 6 0 6 0 6

O r i g i n a l l y P r e p a r e d F o r

T h e S e s s i o n O n R i v e r B a s i n P l a n n i n g a n d M a n a g e m e n t 

D u r i n g t h e 3 5 t h M i d w e s t F i s h a n d W i l d l i f e C o n f e r e n c e 

H e l d a t S t o u f f e r ’ s R i v e r f r o n t I n n

S t . L o u i s , M i s s o u r i — D e c e m b e r 2 - 5 , 1 9 7 3

R e v i s e d F o r

T h e S e s s i o n o n M a n a g e m e n t o f t h e A r k a n s a s R i v e r 

W e s t C e n t r a l R e g i o n a l A u d u b o n C o n f e r e n c e 

H e l d a t B e e c h c r a f t A c t i v i t y C e n t e r , 

W i c h i t a , K a n s a s — M a y 3 - 6 , 1 9 7 4
1 1 9 3

E C O N O MI C I M P LI C A TI O N S O F N A VI G A TI O N P R OJ E C T S

( S e ri o u s D e fi c i e n c i e s i n E v al u ati n g I n l a n d N a v i g ati o n P r o j e c t s 

R e v e ale d i n t h e N ati o n al W ate r C o m mis si o n R e p o rt )

S U M M A R Y

T h e r e c e n t N a ti o n al W ate r C o m mis si o n r e p o rt r e v e a l s 

s e ri o u s d e f i c i e n c i e s i n t h e p l a n n i n g a n d e v a l u a ti o n o f i n l a n d 

n a v i g a ti o n p r o j e c t s . T h e se d e f i c i e n c i e s g r e a tl y d i s t o r t t h e 

t r u e w o rt h o f n a v i g a ti o n p r o j e c t s a n d p r e v e n t e f f i c i e n t u t i l i ­

z a ti o n a n d c o n s e r v a ti o n o f o u r N a ti o n's w at e r a n d r e l a t e d la n d 

r e s o u r c e s. T h e r e p o rt s t a t e s n a v i g a ti o n p r o j e c t s a r e b ei n g 

(a n d h a v e b e e n ) " u n d e rta k e n t h a t c o ul d n ot p a s s t h e t e s t o f a n 

u n bia s e d e v a l u a ti o n . "

E v al u ati o n p r o c e d u r e s u s e d b y t h e Ar m y E n gi n e e r s d o 

n o t d et e r m i n e i f n a v i g a ti o n p r o j e c t s a r e i n t h e n a ti o n a l i n t e r e s t 

o n t h e b a s i s o f b e n e f it s t o t h e N ati o n. T h e ir p o li c y i s t o 

o nl y e v a l u a t e b e n e fit s t o t h e w ate r w a y u s e r s. T h e C o m m is si o n's 

R e p o rt s a y s s u c h e sti m a t e s a r e " o f l i t t l e v al u e i n d et e r m i n i n g 

w h et h e r a p r o p o s e d w at er w a y s h o ul d b e b u i l t. " T h e d i r e c t b e n e ­

f i c i a r y v i e w p oi n t g r e a tl y d i s t o r t s t h e t r u e n e e d a n d w o rt h o f 

n a v i g a ti o n p r o j e c t s . F o r t h e 1 2 0 - m il e, o n e b i l l i o n d o ll a r L a k e 

E ri e - O h i o R i v e r C a n al p r o j e c t, t h e e sti m a t e d b e n e f it s t o t h e 

u s e r s a r e n e a rl y 1 4 ti m e s t h e b e n e f it s t o t h e N ati o n.

T h e C o m m is si o n's r e p o rt r e v e a l s i n l a n d n a v i g a ti o n p r o j e c t 

" a r e n o t p l a n n e d, e v a l u a t e d , o r r e g u l a t e d a s p a r t o f t h e 

n a ti o n a l t r a n s p o r t a ti o n s y st e m ." N e it h e r t h e a d e q u a c y n o r r e l a ­

ti v e e f fi c i e n c y o f e x i s ti n g t r a n s p o r t a ti o n s e r v i c e s a r e b ei n g 

d et e r m i n e d. T h e r e p o rt a l s o i n d i c a t e s “t h e r e i s n o l o n g e r a n y 

r a ti o n a l j u s t i f i c a t i o n f o r a s s u m pti o n b y t h e F e d e r al T r e a s u r y 

o f t h e e n ti r e c o s t o f c o n s t r u c ti o n , o p e r a ti n g , a n d m ai n t ai n i n g 

n a v i g a b l e w ate r w a y s." T h e e x i s t e n c e o f a n e f f e c ti v e de m a n d f o r 

a n a v i g a ti o n p r o j e c t c a n b e d e m o n str at e d b e s t b y a n e x p r e s si o n o f 

t h e w illi n g n e s s o f t h e u s e r s t o p a y f o r t h e s e r v i c e p r o v i d e d.

I n vie w o f t h e s e ri o u s n a v i g a ti o n e v a l u a ti o n d e f i c i e n c i e s 

t h e j u s t i f i c a t i o n f o r t h e p r o p o s e d e x p e n d it u r e o f $ 3. 2 b i l l i o n f o r 

c o m m erc ia l n a v i g a ti o n i n t h e U p p er M i s s i s s i p p i R i v e r B a si n t h e 

n e xt 2 7 y e a r s n e e d s t o b e r e - e x a m i n e d. R e g a r d i n g e x i s ti n g n a v i g a ­

ti o n p r o j e c t s , t h e ec o n o m ic f e a s i b i l i t y o f t h e M i s s o u ri R i v e r 

n a v i g a ti o n p r o j e c t h a s g o n e fr o m b a d t o w o r s e, a n d t h e p r o j e c t 

s h o ul d b e a b a n d o n e d.
1 1 9 4

O U T L I N E

I . B a c k g r o u n d I n f o r m a t i o n o n t h e C o m m i s s i o n a n d I t s R e p o r t - - - - - - l

I I . C o m m i s s i o n ' s V i e w s o n t h e M a j o r D e f i c i e n c i e s A f f e c t i n g I n l a n d

N a v i g ati o n P r oje ct D e ci si o n s - - - - - - - - - - - - - - - - - - - 1

A . D e f i c i e n c i e s i n P l a n n i n g a n d E v a l u a t i n g I n l a n d W a t e r w a y

P r o j e c t s - - - - - - - - - - - - - - - - - - - - - - - - - - - 2

B . D e f i c i e n c i e s i n t h e I n l a n d W a t e r w a y C o s t S h a r i n g P o l i c y - - - - 2

C . D e f i c i e n c i e s i n t h e O r g a n i z a t i o n a l A r r a n g e m e n t f o r N a t i o n a l

C o o r d i n a t i o n a n d R e v i e w o f W a t e r R e s o u r c e P r o g r a m s - - - - - - 3

I I I . S p e c i f i c D e f i c i e n c i e s i n E v a l u a t i n g t h e N e e d a n d E c o n o m i c

F e a s i b i l i t y o f I n l a n d N a v i g a t i o n P r o j e c t s - - - - - - - - - - - - - 3

A . P r o j e c t A n a l y s i s i s U n n e c e s s a r i l y C o n f i n e d t o B e n e f i t s t o

W a t e r w a y S h i p p e r s - - - - - - - - - - - - - - - - - - - - - - - 4

B . C u r r e n t P r o c e d u r e s d o n o t D e t e r m i n e S a v i n g s i n T r a n s p o r t a ­

t i o n C o s t s o r I m p r o v e m e n t s i n N a t i o n a l E c o n o m i c E f f i c i e n c y - - 4

C . I n l a n d W a t e r w a y P r o j e c t s A r e N o t P l a n n e d a n d E v a l u a t e d A s

E l e m e n t s o f t h e N a t i o n a l T r a n s p o r t a t i o n S y s t e m - - - - - - - - 4

I V . E v a l u a t i o n P r o c e d u r e s f o r D e t e r m i n i n g T r a n s p o r t a t i o n B e n e f i t s t o

t h e N a t i o n H a v e B e e n P r e s c r i b e d B u t H a v e N o t B e e n F o l l o w e d - - - - 4

V . T h e C o r p s I n c o r r e c t l y A s s u m e s R a t e S a v i n g s T o S h i p p e r s T o B e

P u b l i c B e n e f i t s - - - - - - - - - - - - - - - - - - - - - - - - - - 7

V I . A n E v a l u a t i o n o f A d v e r s e E c o n o m i c E f f e c t s I s R e q u i r e d B u t I s

N o t B e i n g D e t e r m i n e d B y t h e C o r p s - - - - - - - - - - - - - - - - - 8

V I I . C o n g r e s s H a s S p e c i f i e d t h e D i r e c t B e n e f i c i a r y J u s t i f i c a t i o n

C r i t e r i a f o r F l o o d C o n t r o l B u t N o t f o r N a v i g a t i o n - - - - - - - - - 1 0

V I I I . T h e D i r e c t B e n e f i c i a r y V i e w p o i n t G r e a t l y D i s t o r t s t h e N e e d a n d

E c o n o m i c F e a s i b i l i t y o f N a v i g a t i o n P r o j e c t s - - - - - - - - - - - - 1 2

I X . T h e F a i l u r e t o P l a n a n d E v a l u a t e I n l a n d W a t e r w a y P r o j e c t s A s

E l e m e n t s o f t h e N a t i o n a l T r a n s p o r t a t i o n S y s t e m M u s t B e C o r r e c t e d - 1 4

A . T h e C o r p s o f E n g i n e e r s S h o u l d N o t H a v e t h e E x c l u s i v e

R e s p o n s i b i l i t y f o r E v a l u a t i n g N a v i g a t i o n P r o j e c t s - - - - - - - 1 4

B . D e p a r t m e n t o f T r a n s p o r t a t i o n P a r t i c i p a t i o n I s A l s o N e e d e d

. f o r C o n s i d e r a t i o n o f T r a n s p o r t a t i o n A l t e r n a t i v e s t o

N a v i g a t i o n P r o j e c t s - - - - - - - - - - - - - - - - - - - - - - 1 5

C . C o n g r e s s H a s S p e l l e d O u t t h e S p e c i f i c I n f o r m a t i o n N e e d e d

W h e n C o n s i d e r i n g T r a n s p o r t a t i o n I n v e s t m e n t P r o p o s a l s - - - - - 1 5

D . T h e S t u d i e s o f N a v i g a t i o n A l t e r n a t i v e s i n t h e P r i v a t e

S e c t o r S h o u l d B e S i m i l a r t o T h o s e f o r H y d r o e l e c t r i c P o w e r - - - 1 6

X . T h e P l a n n i n g P r o c e d u r e s U s e d i n F o r m u l a t i n g t h e F r a m e w o r k 

P l a n f o r C o m m e r c i a l N a v i g a t i o n D e v e l o p m e n t i n t h e U p p e r 

M i s s i s s i p p i R i v e r C o m p r e h e n s i v e B a s i n S t u d y A r e T o t a l l y D e f i c i e n t - 1 6

A . N o O v e r a l l S t u d y o f t h e B a s i n ' s T o t a l T r a n s p o r t a t i o n S y s t e m

W a s M a d e a n d T r a n s p o r t a t i o n A l t e r n a t i v e s W e r e N o t C o n s i d e r e d - 1 7

B . N o C o s t o r R e l a t i v e E f f i c i e n c y C o m p a r i s o n s W i t h O t h e r M o d e s

o f T r a n s p o r t a t i o n W e r e M a d e - - - - - - - - - - - - - - - - - - 1 7

C . L i t t l e o r N o I n f o r m a t i o n W a s P r e s e n t e d o n t h e C o s t o f t h e

E x i s t i n g N a v i g a t i o n P r o j e c t s . T h e i r R e l a t i v e V a l u e a n d

E n v i r o n m e n t a l I m p a c t - - - - - - - - - - - - - - - - - - - - - 1 8

X I . C o n c l u s i o n s - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 9

A p p e n d i x - P r o c e d u r e s f o r E v a l u a t i n g T r a n s p o r t a t i o n B e n e f i t s f o r

N a v i g a t i o n P r o j e c t s - - - - - - - - - - - - - - - - - - - - - 2 2
1 1 9 5

i . B a c k gr o u n d I n f o r m ati o n o n t h e C o m mis si o n a n d I t s R e p o rt

T h e f i n a l r e p o rt o f t h e N ati o n al W at er C o m mis si o n o n 

" W at er P o li c i e s f o r t h e F u t u r e . " wa s s u b m itt e d t o t h e P r e si d e n t 

a n d C o n g r e s s o n J u n e 1 4t h o f t h i s y e a r. I t p r e s e n t s t h e C o m m iss i o n ' s c o n c l u si o n s a n d re c o m m e n d ati o n s o n t h e p o li c i e s w hic h i t 

b e li e v e s t h e N ati o n s h o ul d a d o pt f o r t h e e f f i c i e n t, e q u it a b l e , 

a n d e n v ir o n m e n t all y r e s p o n s i b l e m a n a g e m e nt o f i t s w at e r r e s o u r c e s. 

T h e C o m m is si o n, c o n s i s ti n g o f s e v e n m e m be rs a p p oi nt e d b y t h e P r e ­

s i d e n t fr o m p r i v a t e l i f e , wa s e s t a b li s h e d b y C o n g r e s s i n 1 9 6 8 a n d 

wa s g i v e n 5 y e a r s a n d $ 5 m illi o n t o p r e p a r e i t s r e p o rt. A f u l l ­

ti m e p r o f e s s i o n a l s t a f f o f a b o ut 4 0 m e m be rs wa s e m pl o y e d a n d o v e r 

6 0 b a c k g r o u n d st u d y r e p o rt s a v a il a b l e t h r o u g h t h e N a ti o n al 

T e c h n i c al I n f o r m ati o n S e r v i c e w ere p r e p a r e d ( m o stl y u n d e r c o n t r a c t 

t o u n i v e r s iti e s , r e s e a r c h o r g a n i z a ti o n s, c o n s u lti n g fir m s o r 

i n d i v i d u a l s ).

T he f i n a l r e p o rt c o n s i s ti n g o f 5 7 9 p a g e s c o n t a i n s 2 3 2 

s p e c i fi c re c o m m e n d ati o n s f o r i m p r o vi n g f u t u r e w at e r r e s o u r c e s 

p o li c i e s . I t i s a v a il a b l e fr o m t h e G o v er n m e n t P ri n ti n g O f fi c e 

u n d e r S t o c k N u m b er 5 2 4 8 - 0 0 0 0 6. T h e C o m mis si o n a l s o i s s u e d I n t e ri m 

A n n u al R e p o rt s f o r 1 9 6 9, 1 9 7 0 a n d 1 9 7 1, p l u s a " R e v ie w D r a ft " o f 

t h e f i n a l r e p o r t. T h e " R e v ie w D r a ft " w as s u b m itt e d o n N o v e m be r 1, 

1 9 7 2 t o t h e P r e si d e n t a n d C o n g r e s s a n d g a v e i n t e r e s t e d p a r ti e s t h e 

o p p o rt u n it y o f p r e s e n ti n g t h e i r vie w s a t f o u r p u b li c c o n f e r e n c e s 

h e l d b y t h e C o m mis si o n d u ri n g t h e p e ri o d fr o m J a n u a r y 8 t h r o u g h 

F e b r u a r y 9, 1 9 7 3.

I I . C o m m is si o n's Vie w s o n t h e M aj o r D e fi c i e n c i e s A f f e c ti n g I n l a n d

N a v i g ati o n P r o j e c t D e ci si o n s

T h e t h r e e m aj o r d e fi c i e n c y a r e a s r e v e a l e d i n t h e N ati o n a l 

W ate r C o m mis si o n R e p o rt w hic h a f f e c t i n l a n d n a v i g a ti o n p r o j e c t 

d e c i s i o n s a n d a s u m m ar y o f t h e vie w s o f t h e C o m mis si o n o n e a c h a r e 

a s f o ll o w s:

A. Vie w s o f t h e C o m mis si o n o n D e fi c i e n c i e s i n P la n n i n g a n d E v al u ­

a ti n g I n l a n d W at er w a y P r o j e c t s :

1. R e c o g niz e s t h e s e ri o u s d e fi c i e n c i e s i n t h e p r o c e d u r e s u se d 

t o e v a l u a t e p r o p o s e d w ate r w a y p r o j e c t s a n d i n d i c a t e s p r o ­

j e c t s a r e b ei n g u n d e rt a k e n t h a t c o ul d n o t p a s s t h e t e s t

o f a n u n b i a s e d e v a l u a ti o n .

2. R e c o g niz e s s e c ti o n 7 ( a ) o f t h e D. O . T . A ct h a s " u n n e c e s ­

s a r il y " b e e n i n t e r p r e t e d a s r e q u i ri n g t h e E x e c u ti v e 

B ra n c h t o c o n fi n e i t s e c o n o m ic a n a l y s i s t o t h e s a v i n g s i n 

f r e i g h t r a t e s t o s h i p p e r s.

3. A s s e rt s t h e la w d o e s n o t p r e v e n t t h e E x e c u ti v e B ra n c h fr o m 

a p p l y i n g a n y t e s t i t c o n s i d e r s e s s e n ti a l t o d et e r m i n e i f

a n a v i g a ti o n p r o j e c t i s i n t h e n a ti o n a l i n t e r e s t.

4. R e c o g niz e s a w ate r w a y p r o j e c t i s j u s t i f i e d o n l y i f i t w ill 

r e d u c e t h e r e a l e c o n o m ic c o s t t o t h e n a ti o n o f p r o v i d i n g 

t h e t r a n s p o r t a ti o n s e r v i c e a n d re c o m m e n ds t h a t a d et e r m i n a ­

ti o n o f s u c h c o s t s a v i n g s b e r e q u i r e d f o r e a c h w ate r w a y 

p r o p o s a l.

5 4- 2 3 9 0 - 7 5 - 7 8
. R e c o g niz e s t h e i n l a n d w ate r w a y s y ste m i s i n e s c a p a b l y a n 

le m e nt o f t h e n a ti o n a l t r a n s p o r t a ti o n s y ste m ; y e t, w at e r ­

w a y s a r e n ot pla n n e d o r e v a l u a t e d a s a p a rt o f t h i s s y ste m .

6. Re c o m me n d s t h e c o n c e pt o f e f f e c ti v e ec o n o mic de ma n d ( w ill ­

i n g n e s s o f u s e r s t o p a y f o r t h e s e r v i c e o r o u t p u t t o b e 

p r o vi d e d ) b e i n cl u d e d a s a n a m e n d m e nt t o t h e p r i n c i p l e s 

a n d st a n d a r d s p r o p o s e d b y t h e W ate r R e s o u rc e s C o u n cil .

7. Re c o m me n ds c a r e b e ta k e n t h a t t h e i n f o r m ati o n u se d i n t h e 

e v a l u a ti o n o f w ate r r e s o u r c e s p r o j e c t s r e v e a l s f u ll y b o t h 

t h e p o s iti v e a n d n e g a ti v e e f f e c t s o f p r o p o s e d p r o j e c t s 

u p o n a l l l o c a l i n t e r e s t s a n d u p o n o t h e r r e g i o n s.

8. Re c o m me n ds w ate r r e s o u r c e p r o g ra m s, w hic h h a v e b e e n a u t h o r ­

i z e d f o r a p e ri o d o f t e n y e a r s o r l o n g e r w it h o u t a n y c o n ­

s t r u c ti o n , b e d e a u t h o ri z e d, a n d a l s o n o f u n d s b e a p p r o ­

p ri a t e d f o r p r o j e c t s a u t h o ri z e d f o r m or e t h a n fi v e y e a r s 

u n t i l r e - e v a l u a t e d a n d f o u n d f e a s i b l e u n d e r t h e p r i n c i p l e s 

a n d st a n d a r d s a t t h e ti m e o f t h e p r o p o s e d a p p r o p ri a ti o n .

Vie w s o f t h e C o m mis si o n o n D e fi c i e n c i e s i n t h e I n l a n d W at er w a y

C o st S h a ri n g P o li c y ' ' ' 

1. R e c o g niz e s t h e r e i s n o l o n g e r a n y r a ti o n a l j u s t i f i c a t i o n 

f o r a s s u m pti o n b y t h e F e d e r a l T r e a s u r y o f t h e e n ti r e c o s t 

o f c o n s t r u c ti n g , o p e r a ti n g , a n d m ai n t ai n i n g n a v i g a b l e 

w ate r w a y s.

2. Re c o m me n ds l e g i s l a ti o n b e e n a ct e d r e q u i ri n g a c o m bi n ati o n 

o f a w ate r w a y u s e r f u e l t a x a n d l o c k a g e c h a r g e s s u f f i c i e n t 

t o r e p a y t h e e n ti r e a n n u al c o st o f o p e r a ti n g a n d m a i n t a i n ­

i n g t h e F e d e r al i n l a n d w ate r w a y s y ste m .

3. R e c o g niz e s i f n o n - F e d e r al i n t e r e s t s a g r e e t o r e p a y t h e 

f i r s t c o st o f a w ate r w a y, t h e C o n g re s s a n d t h e p u b li c c a n 

b e s u r e t h o s e u r gi n g t h e p r o j e c t a r e s i n c e r e i n b e li e v i n g 

i t i s j u s t i f i e d .

4. Re c o m me n ds l e g i s l a ti o n b e e n a ct e d r e q u i ri n g a s a c o n d iti o n 

f o r F e d e r al c o n s t r u c ti o n o f a d d iti o n s t o t h e e x i s ti n g i n ­

la n d w ate r w a y s y ste m a n a g re e m e nt w it h a r e s p o n s i b l e 

f e d e r a ll y c h a rt e r e d o r n o n - F e d e r al e n tit y r e q u i ri n g r e p a y ­

m e n t o f t h e e n ti r e f i r s t c o s t i n cl u d i n g i n t e r e s t.

Vie w s o f t h e C o m mis si o n o n D e fi c i e n c i e s i n t h e O r g a n i z a ti o n a l 

A rr a n g e m e nt f o r N ati o n al C o o r d i n ati o n a n d R e v ie w o f W at er

R e s o u rc e P r o g ra m s:

1. R e c o g niz e s t h e w e a k n e ss o f t h e W at er R e s o u r c e s C o u n cil t o 

r e s o l v e c o n t r o v e r s i a l p r o g ra m s a n d p o li c y i s s u e s e s p e c i a ll y 

t h o s e w hic h m i g ht r e s u lt i n fe w er w ate r r e s o u r c e p r o j e c t s 

f o r a n a g e n c y, a n d rec o m m e n d:, t h e C o u n cil b e p l a c e d w it h i n 

t h e E x e c uti v e Of I ic e o f t h e P r e si d e n t a n d h a v e a n i n d e ­

p e n d e nt, f u ll - ti m e c h air m a n w h o w o ul d b e o n t h e W hit e 

H o u se s t a f f a n d r e p o rt d i r e c tl y t o t h e P r e s i d e n t.
1 1 9 7

- -

2 . R e c o g n i z e s t h a t F e d e r a l c o n s t r u c t i o n a g e n c i e s t e n d t o 

c o l o r t h e i r c a l c u l a t i o n s w i t h s e l f - i n t e r e s t i n m a k i n g 

p r o j e c t e v a l u a t i o n s a n d t h a t t h e s e t e n d e n c i e s c a n n o t b e 

c h e c k e d b y a n i n t e r a g e n c y c o o r d i n a t i o n p r o c e s s i n w h i c h 

a l l t h e p a r t i c i p a n t s a r e e q u a l a n d e a c h i s i n c o n t r o l 

o f h i s o w n s e p a r a t e p r o g r a m .

3 . R e c o g n i z e s t h e n e e d f o r a n i n d e p e n d e n t r e v i e w t o d e t e r ­

m i n e i f t h e w a t e r c o n s t r u c t i o n a g e n c i e s * p r o j e c t p r o ­

p o s a l s a r e s o u n d l y c o n c e i v e d a n d r e p r e s e n t b e n e f i c i a l 

i n v e s t m e n t s o f F e d e r a l t a x r e c e i p t s a n d r e c o m m e n d s t h e 

e n a c t m e n t o f l e g i s l a t i o n t o e s t a b l i s h a n i n d e p e n d e n t 

b o a r d o f r e v i e w w h o s e c h a i r m a n w o u l d b e t h e s a m e p e r s o n 

w h o s e r v e s a s t h e i n d e p e n d e n t c h a i r m a n o f t h e r e c o n ­

s t i t u t e d W a t e r R e s o u r c e s C o u n c i l .

X I I . S p e c i f i c D e f i c i e n c i e s i n E v a l u a t i n g t h e N e e d a n d E c o n o m i c F e a s i ­

b i l i t y o f I n l a n d N a v i g a t i o n P r o j e c t s

W h i l e a r e q u i r e m e n t t h a t n o n - F c d e r a l i n t e r e s t s a s s u m e a n 

e q u i t a b l e p o r t i o n o f t h e c o s t o f i n l a n d w a t e r w a y p r o j e c t s a n d t h e 

c r e a t i o n o f a n i n d e p e n d e n t b o a r d o f r e v i e w t o d e t e r m i n e i f t h e 

w a t e r c o n s t r u c t i o n a g e n c i e s ' p r o j e c t p r o p o s a l s a r e s o u n d l y c o n ­

c e i v e d a n d r e p r e s e n t b e n e f i c i a l i n v e s t m e n t s o f F e d e r a l t a x m o n e y 

w o u l d b o t h h e l p t o w e e d o u t u n s o u n d i n l a n d n a v i g a t i o n p r o j e c t s , 

s u c h p r o j e c t s s h o u l d m o r e p r o p e r l y b e w e e d e d o u t d u r i n g t h e 

i n i t i a l p l a n n i n g a n d e v a l u a t i o n p r o c e s s . U n f o r t u n a t e l y , i n a d d i ­

t i o n t o t h e f a c t ( p o i n t e d o u t i n t h e N a t i o n a l W a t e r C o m m i s s i o n 

r e p o r t ) t h a t F e d e r a l c o n s t r u c t i o n a g e n c i e s t e n d t o c o l o r t h e i r 

c a l c u l a t i o n s w i t h s e l f - i n t e r e s t i n m a k i n g p r o j e c t e v a l u a t i o n s , t h e 

N a t i o n a l W a t e r C o m m i s s i o n r e p o r t r e v e a l s t h e r e a r e b a s i c 

d e f i c i e n c i e s i n t h e p r o c e d u r e s u s e d t o e v a l u a t e t h e n e e d a n d 

e c o n o m i c f e a s i b i l i t y o f i n l a n d n a v i g a t i o n p r o j e c t s . A l i s t i n g a n d 

s u m m a r y o f t h e s e d e f i c i e n c i e s i s a s f o l l o w s :

A . T h e e v a l u a t i o n o f i n l a n d n a v i g a t i o n p r o j e c t e f f e c t s i s u n ­

n e c e s s a r i l y c o n f i n e d t o t h e a n a l y s i s o f b e n e f i t s t o t h e 

d i r e c t b e n e f i c i a r i e s ( i . e . t h e w a t e r w a y s h i p p e r s ) .

B o t h t h e n e e d a n d e c o n o m i c f e a s i b i l i t y f o r i n l a n d n a v i g a t i o n 

p r o j e c t s c o n t i n u e s t o b e d e t e r m i n e d s o l e l y f r o m t h e l i m i t e d v i e w ­

p o i n t o f t h e d i r e c t b e n e f i c i a r i e s . T h e N a t i o n a l W a t e r C o m m i s s i o n 

r e p o r t s t a t e s : " A n e s t i m a t e o f t h e s a v i n g s t o s h i p p e r s i s o f l i t t l e

v a l u e i n d e t e r m i n i n g w h e t h e r a p r o p o s e d w a t e r w a y s h o u l d b e b u i l t - -

W h i l e t h e l i m i t e d d i r e c t b e n e f i c i a r y v i e w p o i n t c o n t i n u e s t o b e 

f o l l o w e d , t h e C o n g r e s s i o n a l m a n d a t e i s t h a t t h e d e s i r a b i l i t y o f 

i n l a n d w a t e r w a y i m p r o v e m e n t s s h a l l b e d e t e r m i n e d b y t h e p u b l i c 

b e n e f i t a n d n e e d . A l s o , p r i o r w a t e r r e s o u r c e p r o j e c t e v a l u a t i o n 

p r o c e d u r e s h a v e s p e c i f i c a l l y s p e l l e d o u t t h a t t h e p r o j e c t e c o n o m i c 

e f f e c t s m u s t b e d e t e r m i n e d f r o m a c o m p r e h e n s i v e p u b l i c v i e w p o i n t 

w h i c h r e q u i r e s a c o n s i d e r a t i o n o f a l l e f f e c t s , b e n e f i c i a l a n d 

a d v e r s e , t h a t c a n b e e x p e c t e d t o b e f e l t b y a l l p e r s o n s o r g r o u p s 

i n t h e e n t i r e r a n g e o f i n f u l e n c e o f t h e p r o j e c t .
1 1 9 8

4 -

B. C u rr e nt p r o c e d u r e s f o r ec o n o m ic e v a l u a ti o n o f i n l a n d w at e r ­

wa y p r o j e c t s d o n o t d ete r m i n e t h e s a v i n g s i n t r a n s p o rt a ti o n 

c o s t s t o t h e N ati o n o r t h e i m pr o v e m e n t i n n a ti o n a l ec o n o m ic

e f f i c i e n c y .

T h e p r i n c i p a l pla n n i n g o b j e c ti v e f o r w ate r r e s o u r c e p r o j e c t s 

h a s b e e n a n d c o n ti n u e s t o b e t h e n a ti o n a l e c o n o m ic d e v el o p m e nt, 

w hic h i s e n h a n c e d b y i m pr o v e m e nts i n n a ti o n a l ec o n o m ic e f fi c i e n c y , 

y et t h e c u r r e n t p r o c e d u r e s f o r ec o n o mic e v a l u a ti o n o f i n l a n d w at e r 

wa y p r o j e c t s d o n ot m e a s u re t h e i m pr o v e m e n t i n n a ti o n a l ec o n o mic 

e f fi c i e n c y . W hil e t h e N ati o n al W at er C o m mis si o n r e p o rt s t a t e s a 

w ate r w a y p r o j e c t i s j u s t i f i e d o nl y i f i t w ill r e d u c e t h e r e a l 

ec o n o mic c o st t o t h e N ati o n o f p r o v i d i n g t r a n s p o r t a ti o n , t h e 

c u r r e n t e v a l u a ti o n p r o c e d u r e s d o n ot d et e r m i n e t h e s a vi n g s i n 

t r a n s p o rt a ti o n c o s t s t o t h e N ati o n.

C. I n l a n d w ate r w a y p r o j e c t s a r e n ot pla n n e d a n d e v al u at e d a s

ele m e nts o f t h e n a ti o n a l t r a n s p o rt a ti o n s y ste m .

T h e s p e c i fi c p l a n n i n g g o al o r c r i t e r i a f o r n a v i g a ti o n p r o j e c t s 

u n d er t h e n a ti o n a l ec o n o m ic d e v el o p m e nt o b j e c ti v e h a s b e e n s p e ll e d 

o ut * a s f o ll o w s:

N a vi g ati o n p r o j e c t s s h a ll "----- p r o v i d e a n e e d e d t r a n s ­

p o rt a ti o n s e r v i c e w it h a d v a nta g e t o t h e N a ti o n's 

t r a n s p o r t a ti o n s y ste m ."

As s t a t e d i n t h e N ati o n al W at er C o m mis si o n r e p o rt, i n l a n d w at e r ­

wa y p r o j e c t s a r e n ot b ei n g pla n n e d a n d e v a l u a t e d a s ele m e nts o f 

t h e n a ti o n a l t r a n s p o r t a ti o n s y ste m . C o n s e q u e ntl y, w h et h e r o r 

n ot p r o p o s e d n a v i g a ti o n p r o j e c t s w o u l d p r o v i d e a n ee d e d t r a n s ­

p o rt a ti o n s e r v i c e w it h a d v a nta g e t o t h e N a ti o n's t o t a l t r a n s p o r ­

t a ti o n s y ste m i s n e v e r d ete r m i n e d.

I V . E v al u ati o n P r o c e d u r e s f o r D ete r m i n i n g T r a n s p o rt a ti o n B e n e fit s T o

t h e N ati o n Ha ve Be e n P r e s c ri b e d B ut Ha ve N ot B ee n F oll o w e d.

P r o c e d u r e s f o r m e a s u ri n g t r a n s p o r t a ti o n b e n e fit s fr o m 

t h e p u b li c vie w p oi n t c o n s i s ti n g o f s a v i n g s i n t r a n s p o r t a ti o n c o st 

t o t h e N ati o n w er e p r e s c ri b e d b y t h e F e d e r al I nte r- A g e n c y R i v e r 

B a si n C o m mitte e i n Ma y, 1 9 5 0, t h e I nte r- A g e n c y C o m mitte e o n W at er 

R e s o u rc e s i n Ma y, 1 9 5 8, t h e B ure a u o f t h e B u d g et i n C i r c u l a r N o. 

A- 4 7 d at e d D ec e m be r 3 1, 1 9 5 2, a n d b y E x e c uti v e O r d e r o f t h e 

P r e si d e n t o n Ma y 1 5, 1 9 6 2. T h e st a n d a r d s f o r t h e f o r m u l ati o n a n d 

e v a l u a ti o n o f w at e r r e s o u r c e p r o j e c t s a p p r o v e d b y t h e P r e si d e n t 

o n Ma y 1 5, 1 9 6 2 w er e p ri n t e d Ma y 2 9, 1 9 6 2, i n S e n ate D o c u m e nt N o. 

9 7, 8 7t h C o n g r e s s. T h e st a n d a r d s i n S e n. D oc. N o. 9 7 w er e s u b ­

s e q u e n tl y r e p l a c e d o n O ct o b e r 2 5, 1 9 7 3 b y t h e " P ri n c i p l e s a n d 

S ta n d a r d s " w hic h w er e d e v el o p e d b y t h e W at er R e s o u r c e s C o u n cil 

a n d p u b li s h e d i n t h e F e d e r al R e g i st e r f o r S e pte m b er 1 0, 1 9 7 3.

T h e p r o c e d u r e s f o r i m ple m e nti n g t h e ne w p r i n c i p l e s a n d st a n d a r d s 

h a v e y e t t o b e d e v el o p e d.

I n S e n ate D oc u m e nt N o. 9 7, 8 7t h C o n g r e s s, 2 n d S e s si o n
1 1 9 9

- 5 -

T h e e v a l u a t i o n s t a n d a r d s i n S e n . D o c . N o . 9 7 a n d t h o s e 

e s t a b l i s h e d b y t h e i n t e r - a g e n c y c o m m i t t e e s s t r e s s e d t h a t t h e 

v i e w p o i n t f o r e c o n o m i c a n a l y s i s o f F e d e r a l w a t e r r e s o u r c e p r o j e c t s 

s h a l l b e t h e c o m p r e h e n s i v e p u b l i c v i e w p o i n t a s c o n t r a s t e d t o t h e 

l i m i t e d p o i n t o f v i e w o f i n d i v i d u a l s o r p a r t i c u l a r g r o u p s . T h e 

e x a c t w o r d i n g o f t h i s e v a l u a t i o n v i e w p o i n t r e q u i r e m e n t a l s o 

a p p e a r e d a s f o l l o w s o n p a g e 2 7 3 o f t h e c o m p r e h e n s i v e C o r p s s t u d y 

o f i t s c i v i l w o r k s a c t i v i t y p r i n t e d a s P a r t 1 , V o l . 3 o f t h e 1 9 5 1 

A n n u a l R e p o r t o f t h e C h i e f o f E n g i n e e r s :

.«<

" T r a n s p o r t a t i o n s e r v i c e i s t h e p r o d u c t o f n a v i g a t i o n 

i m p r o v e m e n t s . T h e e c o n o m i c s o f s u c h s e r v i c e m u s t b e 

d e t e r m i n e d f r o m a c o m p r e h e n s i v e p u b l i c v i e w p o i n t w h i c h 

i n c l u d e s c o n s i d e r a t i o n o f a l l e f f e c t s , b e n e f i c i a l o r 

a d v e r s e , s h o r t - r a n g e o r l o n g - r a n g e , t h a t c a n b e e x p e c t e d 

t o b e f e l t b y a l l p e r s o n s o r g r o u p s i n t h e e n t i r e r a n g e 

o f i n f l u e n c e o f t h e p r o j e c t . " ( U n d e r l i n i n g a d d e d f o r 

e m p h a s i s . ]

I r r e s p e c t i v e o f t h e c o m p r e h e n s i v e p u b l i c v i e w p o i n t r e ­

q u i r e m e n t , t h e C o r p s h a s c o n t i n u e d t o e v a l u a t e b o t h t h e n e e d f o r 

a n d e c o n o m i c f e a s i b i l i t y o f i n l a n d n a v i g a t i o n p r o j e c t s s o l e l y f r o m 

t h e l i m i t e d v i e w p o i n t o f t h e d i r e c t b e n e f i c i a r i e s ( i. e . t h e 

w a t e r w a y s h i p p e r s ) . T h e C o r p s h a s g o t t e n b y w i t h t h i s p r a c t i c e 

f o r m a n y y e a r s l a r g e l y b e c a u s e o f c e r t a i n i n c o r r e c t a s s u m p t i o n s 

w h i c h w e r e m a d e . T h e s e a s s u m p t i o n s a r e t h a t t h e d i r e c t b e n e f i t s 

t o t h e w a t e r w a y s h i p p e r s r e p r e s e n t p u b l i c b e n e f i t s ( s e e S e c t i o n V ) , 

a n d t h a t t h e r e i s n o l o s s o f n e t i n c o m e f r o m o t h e r m o d e s o f 

t r a n s p o r t a t i o n d u e t o i n l a n d w a t e r w a y p r o j e c t s ( s e e S e c t i o n V I ) .

T h e C o r p s h a s a l s o i m p r o p e r l y i n t e r p r e t e d t h e " b e n e f i t s t o w h o m ­

s o e v e r t h e y m a y a c c r u e a r e i n e x c e s s o f t h e e s t i m a t e d c o s t s " 

p r o v i s i o n i n s e c t i o n 1 o f t h e F l o o d C o n t r o l A c t o f 1 9 3 6 t o m e a n 

t h a t o n l y t h e b e n e f i t s t o t h e d i r e c t b e n e f i c i a r i e s n e e d b e d e t e r ­

m i n e d w i t h n a v i g a t i o n p r o j e c t s ( s e e S e c t i o n V I I ) . I n o t h e r w o r d s , 

n e i t h e r t h e b e n e f i t s t o t h e N a t i o n n o r t h e a d v e r s e e f f e c t s t o 

w h o m s o e v e r t h e y m a y a c c r u e n e e d t o b e e v a l u a t e d .

M o r e r e c e n t l y t h e C o r p s j u s t i f i e s i t s f a i l u r e t o e v a l u a t e 

t h e s a v i n g s i n t r a n s p o r t a t i o n c o s t t o t h e N a t i o n o n t h e b a s i s o f 

t h e i r i n t e r p r e t a t i o n o f t h e p r o v i s i o n s o f s e c t i o n 7 ( a ) o f t h e D e ­

p a r t m e n t o f T r a n s p o r t a t i o n A c t ( P . b . 8 9 - 6 7 0 ) . S e c t i o n 7 ( a ) d e f i n e s 

t h e " p r i m a r y d i r e c t n a v i g a t i o n b e n e f i t s o f a w a t e r r e s o u r c e 

p r o j e c t " a s t h e s a v i n g s i n c u r r e n t f r e i g h t r a t e s o r c h a r g e s t o t h e 

p r o s p e c t i v e w a t e r w a y s h i p p e r s . W h i l e S e c t i o n 7 ( a ) d o e s n o t s o 

s t a t e , t h e C o r p s a s s u m e s t h a t t h i s i s t h e o n l y e c o n o m i c e f f e c t 

t h a t C o n g r e s s w a n t s d e t e r m i n e d f o r n a v i g a t i o n p r o j e c t s . T h e 

C o r p s f u r t h e r a s s u m e s t h a t C o n g r e s s i n s e c t i o n 7 ( a ) h a s , i n 

e f f e c t , i n d i c a t e d t h e s e b e n e f i t s r e p r e s e n t t h e b e n e f i t s t o t h e 

N a t i o n o r t h a t C o n g r e s s d o e s n o t w a n t t o k n q w c i t h e r t h e a d v e r s e 

e c o n o m i c e f f e c t s t o o t h e r g r o u p s w h i c h a r e d i r e c t l y a f f e c t e d o r 

t h e n e t t r a n s p o r t a t i o n b e n e f i t s t o t h e N a t i o n . T h e s e a s s u m p t i o n s 

s e e m u n w a r r a n t e d p a r t i c u l a r l y s i n c e C o n g r e s s i n S e c t i o n 1 2 2 o f
1 2 0 0

6 -

P u b li c La w 9 1 - 6 1 1 r e q u i r e s a c o n s i d e r a ti o n o f a l l " p o s si b l e a d v e r s e 

e c o n o m ic, s o c i a l a n d e n vir o n m e nta l e f f e c t s " f o r a n y p r o p o s e d w at e r 

r e s o u r c e p r o j e c t a n d s p e c i fi e d “t h a t f i n a l d e c i s i o n s o n t h e p r o j e c t 

a r e ma de i n t h e b e s t o v e r a ll p u b li c i n t e r e s t. "

A t h o r o u g h r e vie w o f t h e h e a ri n g s a n d c o m m itte e r e p o rt s 

o n t h e p r o p o s e d l e g i s l a ti o n t o c r e a t e t h e D e p art m e nt o f T r a n s p o r ­

t a ti o n i n d i c a t e s t h e o nl y a r e a o f c o n tr o v e r s y r e g a r d i n g t h e 

ec o n o m ic e v a l u a ti o n o f n a v i g a ti o n p r o j e c t s wa s w h et h e r t h e r a t e 

s a v i n g s t o t h e w ate r w a y s h i p p e r s s h o ul d b e b a s e d o n t h e l o n g - st a n d ­

i n g u s e o f “ c u r r e n t " f r e i g h t r a t e s o r o n t h e u s e o f “ w at e r c o m ­

p e ll e d " r a t e s w hic h t h e C h i e f o f t h e C or p s o f E n gi n e e r s h a d p r o ­

m ul g ate d N o ve m be r 2 0, 1 9 6 4 o n a n i n t e ri m b a s i s . T h e c o n cl u si o n 

o f t h e N ati o n al W at er C o m mis si o n o n t h i s i s s u e i s t h a t s e c ti o n 

7 ( a ) i n t h e D. O . T. A ct h a s " u n f o rt u n a t e l y " a n d " u n n e c e s s a ril y " 

b e e n “i n t e r p r e t e d a s r e q u i ri n g t h e e x e c u ti v e b r a n c h t o c o n fi n e i t s 

a n a l y s i s t o a d e t e r m i n ati o n o f t h e r a t e s a v i n g s t o s h i p p e r s. "

A l s o, t h a t " t h e la w d o e s n ot p r e v e n t t h e e x e c u ti v e b r a n c h fr o m 

a p pl y i n g a n y t e s t o f d e s i r a b i l i t y t h a t i t c o n si d e r s e s s e n ti a l t o 

d et e r m i n i n g w h et h e r o r n ot t h e p r o j e c t i s i n t h e n a ti o n a l i n t e r e s t. "

As e x p l ai n e d i n t h e A p p e n di x , t h e s a vi n g s i n t r a n s p o r t a ­

ti o n c o s t s t o t h e N ati o n c a n b e d ete r m i n e d i n d i r e c tl y o n a n e t 

b a s i s fr o m a s u m m ati o n o f t h e b e n e f i c i a l a n d a d v e r s e e f f e c t s t o 

a l l o f t h e d i r e c tl y a f f e c t e d g r o u p s o r c a n b e d ete r m i n e d d i r e c tl y 

o n a g r o s s b a s i s b y t h e s a v i n g s i n t h e v a ri a b l e c o s t t o t h e 

c a r r i e r o f o u r N a ti o n's r e s o u r c e s (l a b o r, m a t e ri a l s a n d c a p it a l ) 

n e c e s s a r y t o p r o v i d e e q u i v a l e n t t r a n s p o rt a ti o n s e r v i c e . T h e 

" d i r e c t " p r o c e d u r e f o r d et e r m i n i n g t h e t o t a l o r g r o s s s a v i n g s i n 

t r a n s p o r t a ti o n c o st s t o t h e N ati o n wa s n o t e v e n i m ple m e nte d b y 

t h e C o r p s * d u ri n g t h e p e ri o d fr o m O ct o b e r 1 7, 1 9 6 0 t o N o v e m be r 2 0, 

1 9 6 4 w h e n i t wa s o f f i c i a l l y p r e s c ri b e d i n t h e C o r p s' m a n u al o n 

S u r v e y I n v e s ti g a ti o n s a n d R e p o rts i s s u e d b y t h e O f fi c e o f t h e 

C h i e f o f E n g i n e e r s.

T h e i m p o rt a n t d i f f e r e n c e b et w e e n t h e " d i r e c t " a n d " i n d i r e c t " 

e v a l u a ti o n p r o c e d u r e s i s t h a t t h e " d i r e c t " a p p r o a c h d et e r m i n e s 

o n l y t h e b e n e f it s t o t h e n a ti o n ( i. e . s a v i n g s i n t r a n s p o r t a ti o n 

c o s t s ), w h e re a s t h e " i n d i r e c t " a p p r o a c h d ete r m i n e s t h e b e n e f i c i a l 

a n d a d v e r s e e f f e c t s t o e a c h o f t h e d i r e c tl y a f f e c t e d g r o u p s i n 

o r d e r t o d et e r m i n e t h e n et ec o n o m ic e f f e c t t o t h e N ati o n. T he 

i n d i r e c t p r o c e d u r e f o r e a c h p a r ti c u l a r c o m m o dit y m o v e m e nt c a n b e 

e x p r e s s e d i n e q u ati o n f o r m o n a p e r -t o n b a s i s a s f o ll o w s:

R ate S a vi n g s 

t o W at er w a y + 

S h i p p e r s

Ra - R w +

I n c r e a s e i n 

N et I n c o m e 

t o W at er w a y 

C a r ri e r s 

R w - C w

L o ss i n N et 

I n c o m e t o 

E x i sti n g 

C a r ri e r s 

Ra - Ca

N et E f f e c t 

t o A ll o f t h e 

D i r e c tl y A ff e c t e d G r o u p s 

Ca - C w 

[ E q u ati o n # 1 )

♦ E x c e pt o n c e o n a t r i a l b a s i s o nl y i n 1 9 6 4 f o r 

O hi o R i v e r C a n al p r o j e c t.

t h e L a k e E ri e -
1 2 0 1

7 -

w h ere R = r a t e s c h a r g e d f o r t h e s e r v i c e

C = v a ri a b l e o r i n c r e m e n t al c o s t o f p r o v i d i n g t h e s e r v i c e 

a = a lt e r n a ti v e t r a n s p o r t a ti o n m o de

w = w ate r w a y m o de o f t r a n s p o r t a ti o n

W it h t h e " d i r e c t ” e v a l u a ti o n p r o c e d u r e, t h e Ca - C w te r m i s d e t e r ­

m i n e d d i r e c tl y f o r t h o s e c o m m o dit y m o v e m e nts w h ere C w i s l e s s t h a n 

C a.

T h e i m p o rt a n t d i f f e r e n c e i s t h a t t h e " i n d i r e c t " p r o c e d u r e 

c o n si d e r s t h e t o t a l a m o u nt o f t r a f f i c t h a t m i g ht b e d i v e rt e d t o t h e 

w ate r w a y b a s e d o n r a t e s a v i n g s, w h e r e a s, t h e " d i r e c t " p r o c e d u r e 

w o ul d n o r m all y c o n si d e r o n l y t h a t p o rti o n o f t h e p o t e n ti a l t r a f f i c 

f o r w hic h t h e r e w o u l d b e a n y r e a l s a v i n g s i n t h e ec o n o m ic c o st o f 

p r o v i d i n g t h e s e r v i c e . T o t h e e x t e n t t h a t a s i g n i f i c a n t p o rti o n 

o f t h e t r a f f i c d i v e rt e d t o t h e w ate r w a y m i g ht i n v o l v e a g r e a t e r 

v a ri a b l e c o st t o t h e c a r r i e r t h a n f o r a lt e r n a ti v e m o d es, t h e n et 

ec o n o m ic e f f e c t t o t h e N ati o n fr o m t h e i n d i r e c t p r o c e d u r e c o ul d 

b e m u c h l e s s t h a n t h e g r o s s b e n e f it s .

. T h e C or p s c o n ti n u e s t o o nl y e v a l u a t e t h e p o t e n ti a l r a t e 

s a v i n g s t o t h e s h i p p e r s, i . e . t h e Ra - R w te r m i n e q u a ti o n # 1 » a n d 

h e n c e e v a l u a t e s n e it h e r t h e g r o s s n o r n e t b e n e f it s t o t h e N ati o n.

V. T h e C o r p s I n c o r r e c tl y A ss u m es R ate S a vi n g s T o S h i p p e r s T o Be

P u b li c B e n e fit s

A p p a r e n tl y, f o r t h e p u r p o s e o f att e m p ti n g t o j u s t i f y 

e c o n o m ic e v a l u a ti o n o f n a v i g a ti o n p r o j e c t s s o l e l y o n t h e b a s i s o f 

s a v i n g s t o t h e d i r e c t b e n e f i c i a r i e s , t h e C o r p s c o n ti n u e s t o ma ke 

c e r t a i n i n c o r r e c t a s s u m pti o n s r e g a r d i n g t h e b e n e f i c i a l a n d a d v e r s e 

e f f e c t s o f n a v i g a ti o n p r o j e c t s . T h e C o r p s c o n s i d e r s a l l o r a s u b ­

s t a n t i a l p o rti o n o f t h e s a v i n g s i n f r e i g h t r a t e s t o t h e w ate r w a y 

s h i p p e r s a r e p a s s e d o n t o t h e c o n s u m er a n d, t h e r e f o r e , c a n b e 

as s u m e d t o b e " p u b li c " b e n e f it s . T his a s s u m pti o n w as p r e s e n t e d a s 

f o ll o w s o n p a g e 1 2 i n t h e H o u se P u b li c W o r ks C o m m itte e P ri n t N o.

2 4, 8 2 n d C o n g r e s s, d at e d D ec e m be r 5, 1 9 5 2 :

" A ll t h e b e n e f it s h a v e t h e a s s u m pti o n t h a t t h e 

s a v i n g s o n t h e w ate r w a y a r e p a s s e d o n fr o m t h e 

o p e r a t o r t o t h e s h i p p e r a n d fr o m t h e s h i p p e r 

t o t h e c o n s u m e r. "

T h e 5 3 1 - p a g e s p e c i a l r e p o rt t o C o n g re s s b y t h e C o r p s o f E n gi n e e r s 

o n i t s c i v i l w or k s a c t i v i t i e s ( p ri n t e d a s P a rt I , V ol u m e 3 o f t h e 

1 9 5 1 A n n u al R e p o rt o f t h e C h i e f o f E n gi n e e r s ) r a i s e s a n d g i v e s a n 

a f fi r m a ti v e a n s w er t o t h e f o ll o w i n g q u e s ti o n :

" A re s a v i n g s i n T r a n s p o rt a ti o n c o s t s (t o t h e s h i p p e r, 

i . e . r a t e s fc ha r g e d f o r t h e s e r v i c e ) r e s u lti n g fr o m 

n a v i g a ti o n p r o j e c t s w i d el y e n o u g h d i s t r i b u t e d t o b e 

c o n si d e r e d p u b li c b e n e f it s , j u s ti f y i n g t h e e x p e n dit u r e o f p u b li c f u n d s i n e f f e c ti n g t h e i m p r o v e m e nts ? " 

[ W or d s i n p a r e n t h e s e s a d de d f o r c l a r i t y . ]
1 2 0 2

8 -

I n c o n t r a s t t o t h e a s s u m pti o n t h a t r a t e s a v i n g s t o s h i p p e r s c a n b e 

c o n si d e r e d a s p u b li c b e n e f it s , t h e C o r p s' E n gi n e e ri n g C i r c u l a r 

E C 1 1 2 0 - 2 - 3 3, i s s u e d J u n e 1, 1 9 6 7 f o r t h e C hie f o f E n g i n e e r s, 

c l e a r l y s t a t e s r a t e s a v i n g s t o s h i p p e r s d o n ot r e p r e s e n t n a ti o n a l 

b e n e f it s b e c a u s e t h e y i n cl u d e t r a n s f e r p a y m e nts O o m 

e x i s ti n g c a r r i e r s a n d fr o m t h e t a x - p a y i n g p u b li c .

T h e k e y st a t e m e n t s i n E C 1 1 2 0 - 2 - 3 3 a r e a s f o ll o w s:

" N et n a ti o n a l i n c o m e b e n e f it s fr o m w ate r w a y i m p r o v em e nts r e p r e s e n t s a v i n g s i n t h e c o s t s o f t r a n s p o rt a ­

ti o n f o r t h e e n ti r e n a ti o n a s w ell a s p o s s i b l e o t h e r 

s a v i n g s d u e t o i n c r e a s e d e f fi c i e n c y i n n o n -tr a n s p o r ­

t a ti o n a c t i v i t i e s . S a vi n g s t o s h i p p e r s b a s e d o n 

p r e v a ili n g a r e a r a t e s i n c l u d e n ot o nl y t h e s e n a ti o n a l 

b e n e f it s b u t t r a n s f e r p a y m e nts t o s h i p p e r s fr o m t h e 

t a x - p a y i n g p u b li c a n d fr o m e x i s ti n g c a r r i e r s . "

T his l a s t st a t e m e n t ca n b e e x p r e s s e d i n e q u ati o n f o r m a s f o ll o w s:

( W + X) - Y - C = N et N ati o n al I n c o m e B e n e fit s [ E q u ati o n # 2 )

w h e r e, C i s t h e p r o j e c t c o s t a n d W, X, & Y a r e t h e p r o j e c t 

e f f e c t s t o t h e s h i p p e r s, b a r g e li n e s a n d t h e e x i s ti n g c a r ­

r i e r s r e s p e c ti v e l y , a l l e x p r e s s e d o n a n a n n u al b a s i s . ( S ee 

A p p e n di x a n d E q u ati o n # 1 f o r d et e r m i n i n g t h e W, X, & Y t e r m s.)

T h es e te r m s c a n b e r e a r r a n g e d i n e it h e r o f t h e f o ll o w i n g w a y s i n 

o r d e r t o d ete r m i n e t h e b e n e f it t o c o s t r a ti o :

W + X - Y W + X

B e n e fit t o C o st R ati o = “ o r 

+ c

 [ E q u ati o n # 3 ]

As wa s c l e a r l y i n d i c a t e d i n t h e N ati o n al W at er C o m mis si o n 

r e p o rt a n d a s c a n b e s e e n fr o m E q u ati o n # 1, p u b li c b e n e f it s fr o m 

n a v i g a ti o n p r o j e c t s e x i s t w h e n t h e r e i s a s a v i n g s i n t h e c o s t o f 

t h e r e s o u r c e s n e c e s s a r y t o p r o v i d e t h e t r a n s p o r t a ti o n s e r v i c e .

W he n e v a l u a ti n g t h e ec o n o m ic f e a s i b i l i t y o f a n a v i g a ti o n p r o j e c t 

fr o m t h e N a ti o n a l ( i. e . c o m p re h e n si v e p u b li c ) v i e w p o i n t, i t i s 

i m m at e ri al a s t o w h et h e r o r n ot a n y o f t h e s a v i n g s t o t h e d i r e c t 

b e n e f i c i a r i e s a r e p a s s e d o n t o t h e c o n s u m e rs .

V I. A n E v al u ati o n o f A d v ers e E c o n o mic E f f e c t s i s R e q uir e d B ut I s

N ot B ei n g D ete r m i n e d b y t h e C or p s

T h e se c o n d e rr o n e o u s a s s u m pti o n w hic h t h e C o r p s m a k es, 

a p p a r e n tl y i n o r d e r t o c o n ti n u e t o e v a l u a t e n a v i g a ti o n p r o j e c t 

e f f e c t s s o l e l y fr o m t h e vie w p oi n t o f t h e d i r e c t b e n e f i c i a r i e s , i s 

t h a t e x t e n si o n s a n d i m pr o v e m e nts i n t h e N a ti o n's i n l a n d w ate r w a y 

s y ste m w ill h a v e l i t t l e o r n o a d v e r s e ec o n o m ic e f f e c t o n e x i s ti n g 

a lt e r n a ti v e c a r r i e r s . O ne e x p l a n a ti o n a s t o w h y t h o C o r p s d o c s 

n ot c o n si d e r i n t h e i r ec o n o mic e v a l u a ti o n o f n a v i g a ti o n p r o j e c t s 

t h e l o s s o f i n c o m e ( i. e . T h e R - C te r m i n E q u ati o n # 1 a n d t h e 

Y te r m i n E q u ati o n s # 2 a n d 3) t o e x i s ti n g c a r r i e r s fr o m w hic h
1 2 0 3

- 9 -

t r a f f i c i s d i v e rt e d wa s p r e s e n t e d a s f o ll o w s o n p a g e 2 9 9 i n P a rt I , 

V ol u m e 3 o f t h e 1 9 5 1 A n n u al R e p o rt o f t h e C hie f o f E n g i n e e r s:

" L o ss t o c o m pe ti n g la n d c a r r i e r s . T h e a p p a r e n t l o s s 

o f t r a f f i c b y e x i s ti n g c a r r i e r s fr o m d i v e r s i o n o f 

t r a f f i c t o a w ate r w a y i s n ot a p p li e d a s a r e d u c ti o n 

o f b e n e f it. T h e C o r p s o f E n gi n e e r s c o n s i d e r s t h a t 

t h e r e i s a n o v e r a ll ec o n o m ic g ai n t o t h e N ati o n w h e n 

t r a n s p o r t a ti o n i s m a d e a v a il a b l e t o t h e p u b li c a t 

l o w e r c o st a n d t h a t, a s h a s h a p p e n e d i n m o st s u c h 

c a s e s, b e n e fit ?, t o o v e rl a n d c a r r i e r s fr o m f e e d e r 

a n d t r a n s f e r t r a f f i c d e v el o pi n g a s a r e s u lt o f t h e 

w ate r w a y w ill i n t h e l o n g r u n o f f s e t l o s s e s b y 

o v e rl a n d c a r r i e r s o f s hi p m e nts s u it e d t o w at e r 

m o v e m e n t. "

T h e se st a t e m e n t s a r e m i sl e a d i n g , i n c o r r e c t, a n d p r e s e n t 

f a l s e p r e m i s e s. T h e l o g i c o f o m itti n g t h e a d v e r s e o r n e g a ti v e 

e f f e c t s i n t h e ec o n o m ic e v a l u a ti o n o f a n a v i g a ti o n p r o j e c t f o r t h e 

r e a s o n i t h a s b e e n d e ci d e d i n a d v a n c e t h e p r o j e c t p r o v i d e s a n 

o v e r a ll e c o n o m ic g ai n t o t h e N ati o n i s i r r a t i o n a l a n d i n e x c u s a b l e. 

T h e st a t e m e n t r e g a r d i n g t r a n s p o r t a ti o n b ei n g ma de " a v a il a b l e t o 

t h e p u b li c a t l o w e r c o st " i s v e r y m i sl e a d i n g . W at er w a y f a c i l i t i e s , 

i n g e n e r a l, a r e r e a ll y o n l y a v a il a b l e t o a r a t h e r li m it e d g r o u p o f 

l a r g e s h i p p e r s, w h o s e e k i n c r e a s e d p r o f i t s fr o m l o w e r s h i p p i n g 

c h a r g e s t h r o u g h f a c i l i t i e s c o n s t r u c t e d , o p e r a t e d , a n d m ai n t ai n e d 

a t p u b li c e x p e n s e. B y l o w e r c o s t s , t h e C o r p s m e r el y m ea ns r a t e s 

t o t h e s h i p p e r a n d n ot t h e c o s t o f p r o v i d i n g t h e s e r v i c e .

T h e p r e m is e o r a s s u m pti o n t h a t t h e l o s s o f i n c o m e b y e x i s ti n g 

c a r r i e r s fr o m w hic h t r a f f i c i s d i v e rt e d w o ul d b e o f f s e t b y i n c r e a s e d 

b e n e f it s fr o m f e e d e r a n d t r a n s f e r t r a f f i c i s i n c o r r e c t. U s u all y 

r a t h e r l i t t l e r a i l f e e d e r a n d t r a n s f e r t r a f f i c d e v el o p s a s a r e ­

s u l t o f a w ate r w a y. W h at i s e v e n m or e i m p o rt a n t i s t h a t i t i s t h e 

l o n g - h a u l p o rti o n o f t h e r a i l s e r v i c e w hic h i s b y f a r t h e m o st 

p r o f it a b l e . As wa s s t a t e d o n p a g e 1 1 4 o f t h e 1 9 0 8 C o r p s o f 

E n g i n e e r s' S p e c i a l B o a r d's R e p o rt ( H o u se D oc u m e nt N o. 4 9 2, 6 0t h 

C o n g r e s s ), o n t h e n e e d f o r n a v i g a ti o n i m p r o v e m e nts o n t h e O hi o 

R i v e r:

" . . . i t i s n a t u r a l f o r t h e r a il r o a d s t o e n d e a v o r 

t o r e a p t h e b e n e f it s o f a l o n g h a u l a n d n ot s u r ­

r e n d e r t h e m o st p r o f it a b l e (l o n g h a u l) p o rti o n 

o f t h e i r t r a d e t o a r i v a l w at e r r o u t e . "

" I t w o ul d b e u n r e a s o n a b le t o e x p e ct t h e m (t h e r a i l ­

r o a d s ) t o a c t a s f e e d e r s t o a w ate r r o u t e ( e s p e ­

c i a ll y ) a t a r a t e p e r t o n - m il e t h e sa m e ( o r 

a p p r o a c hi n g w h at) t h e y n o w c h a r g e f o r c a r r y i n g 

f r e i g h t ( o n a l o n g h a u l) fr o m ( s a y ) Ne w O rle a n s 

t o P itt s b u r g h i n c o m p e titi o n w it h i t (t h e w at e r 

r o u t e ) ... " [ W or d s i n p a r e n t h e s e s a d d e d f o r c l a r i t y . )
1 2 0 4

i o -

T he a s s u m pti o n c u r r e n tl y b ei n g ma de b y t h e N o rt h C e n tr a l 

D i v i si o n o f t h e C or p s i s n ot t h a t o t h e r b e n e f it s w o u l d o f f s e t t h e 

l o s s o f i n c o m e fr o m t r a f f i c d i v e rt e d t o t h e w ate r w a y s b u t t h a t 

t h e r e w o ul d b e n o s o - c a ll e d " d i v e r si o n " o f t r a f f i c w h at s o e v e r.

T h e a d d iti o n a l w ate r w a y t r a f f i c , w hic h w o u l d r e s u lt fr o m i m pr o v e d 

n a v i g a ti o n f a c i l i t i e s b u t w hic h w o ul d m o ve v i a e x i s ti n g a lt e r n a ­

ti v e m o de s i n t h e a b s e n c e o f t h e w ate r w a y i m p r o v e m e nt, i s n o w b ei n g 

r e f e r r e d t o a s "i n d u c e d " t r a f f i c r a t h e r t h a n " d i v e rt e d " t r a f f i c .

T h e i n c o r r e c t a s s u m pti o n w hic h i s a p p a r e n tl y b ei n g ma de i s t h a t 

t h e r e i s n o a d v e r s e ec o n o m ic e f f e c t t o e x i s ti n g a lt e r n a ti v e m o d es 

i f t r a f f i c i s "i n d u c e d " r a t h e r t h a n " d i v e rt e d " ! As h a s p r e v i o u sl y 

b e e n s h o w n, a c o n s i d e r a ti o n o f t h e a d v e r s e ec o n o m ic e f f e c t s , i n 

a d d iti o n t o t h e d i r e c t b e n e f it s t o t h e p r o j e c t b e n e f i c i a r i e s , i s 

n e c e s s a r y f o r a n e v a l u a ti o n fr o m t h e c o m p re h e n si v e p u b li c vie w ­

p o i n t. T h e re i s l i t t l e d o u bt t h a t fe w i n l a n d w at er w a y p r o j e c t s 

c o ul d b e j u s t i f i e d fr o m t h e n a ti o n a l ( i. e . c o m p re h e n si v e o r o v e r ­

a l l p u b li c ) vie w p oi n t i f t h e a d v e r s e ec o n o m ic e f f e c t s w ere t o b e 

c o n si d e r e d.

T h e st a n d a r d s f o r e v a l u a ti n g w at e r r e s o u r c e p r o j e c t s i n 

S e n. D o c. N o. 9 7 w hic h w er e i n e f f e c t fr o m Ma y 1 4, 1 9 6 2 t h r u 

O ct o b e r 3 1, 1 9 7 3 s t a t e d " a l l u n c o m p e n s ate d a d v e r s e e f f e c t s c a u s e d 

b y t h e c o n s t r u c ti o n a n d o p e r a ti o n o f a p r o j e c t, w h et h e r t a n g i b l e

o r i n t a n g i b l e " ----- " ma y b e a c c o u nte d f o r e it h e r b y a d d iti o n t o

p r o j e c t e c o n o m ic c o s t s o r d e d u cti o n fr o m p ri m a r y b e n e f it s . " T h is 

o p ti o n i s i l l u s t r a t e d i n E q u ati o n # 3 w h er e t h e l o s s o f i n c o m e t o 

e x i s ti n g c a r r i e r s ' Y' i s e it h e r a d d e d t o t h e p r o j e c t c o s t, C, o r 

s u b t r a c t e d fr o m t h e p ri m a r y b e n e f it s , W + X. T h e ne w " P ri n c i p l e s 

a n d S ta n d a r d s " i n d i c a t e t h e b e n e f i c i a l a n d a d v e r s e e f f e c t s i n ­

cl u d i n g t h o s e d u e t o "i n c o m e d i s t r i b u ti o n " a r e t o " b e s h o w n t o 

w h o m s o e v er t h e y ma y a c c r u e." C o n g re s s i n S e cti o n 1 2 2 o f t h e 

R i v e r a n d H a r b o r a n d Fl o o d C o n tr o l A ct o f 1 9 7 0 ( P. L . 9 1 - 6 1 1; 8 4 

S t a t. 1 8 1 8 ) r e q u i r e s a c o n s i d e r a ti o n o f a l l " p o s si b l e a d v e r s e 

e c o n o m ic, s o c i a l, a n d e n vir o n m e nta l e f f e c t s " f o r a n y p r o p o s e d w at e r 

r e s o u r c e p r o j e c t a n d s p e c i fi e s " t h a t t h e f i n a l d e c i s i o n s o n t h e 

p r o j e c t a r e ma de i n t h e b e s t o v e r a ll p u b li c i n t e r e s t. " T h e 

N ati o n al W ate r C o m mis si o n r e p o rt re c o m m e n ds " C are s h o ul d b e t a k e n 

t h a t t h e i n f o r m ati o n u se d i n t h e e v a l u a ti o n o f w at e r r e s o u r c e s 

p r o j e c t s r e v e a l s f u ll y ( 1) b o t h t h e p o s iti v e a n d n e g a ti v e e f f e c t s 

o f p r o p o s e d p r o j e c t s u p o n a l l l o c a l i n t e r e s t s a n d ( 2 ) a n y i m p o rt a n t p o s iti v e a n d n e g ati v e e f f e c t s u p o n o t h e r r e g i o n s. "

V I

I • C o n g re s s Ha s S p e c ifi e d t h e D i r e c t B e n e fi c i a r y J u s t i f i c a ti o n C ri -

t g r i a r Fl o o d C o ntr ol B ut N ot F o r N a vi g ati o n

T h e C o r p s' n a v i g a ti o n p r o j e c t f e a s i b i l i t y p o li c y t h a t 

t h e b e n e f it s t o w h o m s o e v er t h e y ma y a c c r u e ( i. e . t h e d i r e c t 

b e n e f i c i a r i e s ) m u st e x c e e d t h e F e d e r a l c o s t o f t h e p r o j e c t c a n b e 

r e f e r r e d t o a s t h e " d i r e c t b e n e fi c i a r y j u s t i f i c a t i o n c r i t e r i a . "

W it h t h i s c r i t e r i a , b ot h t h e p r o j e c t n e e d a n d ec o n o m ic j u s t i f i c a ­

ti o n a r e d ete r m i n e d s o l e l y fr o m t h e li m it e d vie w p oi n t o f t h e d i r e c t 

b e n e f i c i a r i e s .
1 2 0 5

- n -

T h e C o r p s j u s t i f i e s i t s u s e o f t h i s c r i t e r i a f o r n a v i ­

g a t i o n p r o j e c t s o n t h e b a s i s o f s e c t i o n 1 o f t h e F l o o d C o n t r o l 

A c t o f 1 9 3 6 w h i c h r e a d s a s f o l l o w s ;

■ - - t h e F e d e r a l G o v e r n m e n t s h o u l d i m p r o v e o r p a r t i ­

c i p a t e i n t h e i m p r o v e m e n t o f n a v i g a b l e w a t e r s o r 

t h e i r t r i b u t a r i e s , i n c l u d i n g w a t e r s h e d s t h e r e o f , 

f o r f l o o d - c o n t r o l p u r p o s e s i f t h e b e n e f i t s t o w h o m ­

s o e v e r t h e y m a y a c c r u e a r e i n e x c e s s o f t h e e s t i m a t e d 

c o s t s , a n d i f t h e l i v e s a n d s o c i a l s e c u r i t y o f p e o p l e 

a r e o t h e r w i s e a d v e r s e l y a f f e c t e d . "

I t i s q u i t e c l e a r , f r o m t h e w o r d i n g o f t h i s A c t , i t w a s i n t e n d e d 

t h a t t h i s c r i t e r i a w o u l d a p p l y o n l y t o f l o o d - c o n t r o l p r o j e c t s .

T h i s f a c t w a s c o n f i r m e d i n t h e s e c t i o n o n " E c o n o m i c J u s t i f i c a t i o n " 

i n t h e D e c e m b e r 5 , 1 9 5 2 r e p o r t o n " T h e C i v i l F u n c t i o n s P r o g r a m o f 

t h e C o r p s o f E n g i n e e r s , U n i t e d S t a t e s A r m y " f r o m t h e S u b c o m m i t t e e 

t o S t u d y C i v i l W o r k s ( of t h e H o u s e C o m m i t t e e o n P u b l i c W o r k s ) .

T h i s r e p o r t q u o t e s t h e s a m e p o r t i o n o f t h e 1 9 3 6 A c t a n d t h e n p r e ­

s e n t s t h e f o l l o w i n g s t a t e m e n t ;

" N o s u c h s p e c i f i c c r i t e r i a h a v e b e e n e s t a b l i s h e d b y 

l a w f o r r i v e r a n d h a r b o r i m p r o v e m e n t s i n t h e i n t e r e s t 

o f n a v i g a t i o n a n d r e l a t e d p u r p o s e s . "

T h e r e a r e s i g n i f i c a n t d i f f e r e n c e s b e t w e e n f l o o d c o n t r o l 

p r o j e c t s a n d n a v i g a t i o n p r o j e c t s , e s p e c i a l l y w i t h r e g a r d t o a d ­

v e r s e p r o j e c t e f f e c t s , w h i c h m a k e t h e l i m i t e d o r d i r e c t b e n e f i ­

c i a r y v i e w p o i n t t o t a l l y i n a d e q u a t e f o r n a v i g a t i o n p r o j e c t s . F l o o d 

c o n t r o l p r o j e c t s a r e i n t e n d e d t o p r e v e n t l o s s e s t o w h o m s o e v e r m a y 

b e a d v e r s e l y a f f e c t e d b y f l o o d s , w h e r e a s n a v i g a t i o n p r o j e c t s a r e 

u s u a l l y i n t e n d e d t o p r o v i d e b e n e f i t s t o c e r t a i n l a r g e b a s i c i n d u s ­

t r i e s t h a t w o u l d b e i n a p o s i t i o n t o s h i p v i a t h e w a t e r w a y . 

U s u a l l y , t h e c o n s t r u c t i o n o f f l o o d c o n t r o l p r o j e c t s d o e s n o t h a v e 

a n a d v e r s e e f f e c t o n a n y p a r t i c u l a r i n d u s t r y o r g r o u p o f p e o p l e , 

w h e r e a s n a v i g a t i o n p r o j e c t s c o n s i s t e n t l y g i v e r i s e t o a l o s s o f 

i n c o m e t o t h e f o l l o w i n g i d e n t i f i a b l e g r o u p s ;

a . A l t e r n a t i v e m o d e s o f t r a n s p o r t a t i o n f r o m w h i c h t r a f f i c 

i s d i v e r t e d .

b . S h i p p e r s w i t h o u t a c c e s s t o s u b s i d i z e d i n l a n d w a t e r w a y 

t r a n s p o r t a t i o n t h a t w o u l d c o m p e t e w i t h t h e p r o s p e c t i v e 

w a t e r w a y s h i p p e r s .

c. S h i p p e r s t h a t w o u l d c o n t i n u e t o r e l y o n t h e a l t e r n a t i v e 

m o d e s m a y b e f a c e d w i t h r a t e i n c r e a s e s t o r e c o v e r t h a t 

p o r t i o n o f t h e a l t e r n a t e t r a n s p o r t a t i o n m o d e s ' f i x e d 

c o s t s w h i c h h a d p r e v i o u s l y b e e n c o v e r e d b y t r a f f i c 

s u b s e q u e n t l y d i v e r t e d t o t h e w a t e r w a y .

T h e o t h e r s i g n i f i c a n t d i f f e r e n c e i s t h e f a c t t h a t w i t h n a v i g a t i o n 

p r o j e c t s t h e r e i s a l m o s t a l w a y s a n a l t e r n a t i v e ( u s u a l l y i n t h e 

p r i v a t e s e c t o r ) f o r p r o v i d i n g t h e t r a n s p o r t a t i o n s e r v i c e .
1 2 0 6

1 2 -

As w as i n d i c a t e d b y t h e E x e c uti v e C o m m itte e C h air m a n o f 

t h e C o m m on C a r ri e r C o n f e r e n c e o f D o m e sti c W ate r C a r ri e r s a t t h e 

A p ril 2 5, 1 9 6 6 h e a ri n g o n t h e b i l l t o e s t a b li s h a D e p art m e nt o f

T r a n s p o rt a ti o n , " -----t h e R i v e r a n d H a r b o r I m pr o v e m e n t A ct, 3 3

U. S . C . A . C h a pte r 1 2, i s b a s e d u p o n t h e C o n g r e s si o n al m a n d ate t h a t 

t h e d e s i r a b ilit y o f w ate r w a y i m p r o v e m e nts s h a ll b e d ete r m i n e d b y 

t h e p u b li c b e n e f it a n d n e e d -----

V I I I. T h e D ir e c t B e n e fi c i a r y V ie w p oi n t G r e a tl y D i s t o r t s t h e Ne e d a n d 

E c o n o mic F e a s i b ilit y o f N a vi g ati o n P r o j e c t s

T h e g r e a t e x t e n t t o w hic h t h e p r o j e c t e v a l u a ti o n vie w p o i n t 

i n fl u e n c e s t h e e sti m a t e d b e n e f i c i a l u s a g e a n d t r a n s p o r t a ti o n s a v ­

i n g s fr o m c o m m e rc ia l n a v i g a ti o n p r o j e c t s wa s c l e a r l y i n d i c a t e d i n 

t h e P itt s b u r g h D i s t r i c t E n g i n e e r s s u r v e y r e p o rt o n t h e p r o p o s e d 

1 2 0 - m il e, § 1 b i l l i o n L a k e E ri e - O hi o R i v e r C a n al p r o j e c t. T his w as 

t h e f i r s t w ate r w a y p r o j e c t f o r w hic h i n f o r m a ti o n o n t h e r a i l v e r s u s 

b a r g e c o st o f p r o v i d i n g e q u i v a l e n t m o v e m e nt o f b u l k c o m m o ditie s w as 

o b t a i n e d . T a ble I p r e s e n t s t h e p r o j e c t e s ti m a t e s fr o m V ol. 5 o f 

t h e P itt s b u r g h D i s t r i c t E n g i n e e r s' J a n u a r y, 1 9 6 5 r e p o rt o n t h i s 

p r o j e c t.

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P r o vi d e t h e S e r vic e

• A ve r a ge o f fi v e 1 0 - y e a r a v e r a g e s.

•• A ve r a ge a n n u al e q ui v ale n t s a vi n g s a d j u st e d t o p re se n t w o rt h o n t h e b a sis o f a 3- 1/ 8 % dis c o u n t r a t e.

T h e e sti m a t e d b e n e f i c i a l u s a g e o f t h e w ate r w a y fr o m t h e 

li m it e d vie w p oi n t o f t h e d i r e c t b e n e f i c i a r i e s ( i . e . w at er w a y 

s h i p p e r s ), b a s e d o n t h e C o r p s' t r a d iti o n a l c o m p a ris o n o f e sti m at e d 

b a r g e r a t e s v e r s u s p u b li s h e d r a i l r a t e s , wa s f o u n d t o b e 1 6 ti m e s
1 2 0 7

- 1 3 -

t h e e s t i m a t e d b e n e f i c i a l u s a g e f r o m t h e n a t i o n a l o r c o m p r e h e n s i v e 

p u b l i c v i e w p o i n t , b a s e d o n a c o m p a r i s o n o f t h e r a i l v e r s u s b a r g e 

c o s t o f p r o v i d i n g t h e t r a n s p o r t a t i o n s e r v i c e . A s o m e w h a t s i m i l a r 

r a t i o o f 1 4 t o 1 w a s f o u n d t o e x i s t b e t w e e n t h e a v e r a g e a n n u a l 

t r a n s p o r t a t i o n s a v i n g s t o w a t e r w a y s h i p p e r s a n d t'ne g r o s s t r a n s ­

p o r t a t i o n s a v i n g s t o t h e N a t i o n . [ as e x p l a i n e d i n t h e A p p e n d i x , 

t h e n e t t r a n s p o r t a t i o n s a v i n g s t o t h e N a t i o n w a s n o t e s t i m a t e d )

T h i s b i g d i f f e r e n c e b e t w e e n a r a t e c o m p a r i s o n a n d a c o s t o f p r o ­

v i d i n g t h e s e r v i c e c o m p a r i s o n i n d e t e r m i n i n g t h e t r a n s p o r t a t i o n

s a v i n g s i s d u e m a i n l y t o t h e f a c t t h a t r a i l r o a d r a t e s o f n e c e s s i t y 

c o v e r t h e c o m p l e t e c o s t o f c o n s t r u c t i n g , m a i n t a i n i n g , a n d p a y i n g 

t a x e s o n t h e i r r i g h t - o f - w a y , t r a c k a n d s t r u c t u r e s . I n c o n t r a s t , 

t h e h u g e a n n u a l F e d e r a l e x p e n d i t u r e s f o r c o m m e r c i a l n a v i g a t i o n a r e 

n e v e r r e f l e c t e d i n b a r g e r a t e s . T h a t p o r t i o n o f t h e r e g u l a t e d 

i n t e r c i t y c a r r i e r s ' t o t a l o p e r a t i n g r e v e n u e w h i c h i s r e q u i r e d f o r 

r i g h t - o f - w a y c o s t s a n d t a x e s a m o u n t s t o 2 4 . 9 % f o r r a i l r o a d s , 4 . 4 % 

f o r i n t e r c i t y t r u c k s a n d 0 . 0 % f o r w a t e r c a r r i e r s .

B o t h t h e c u r r e n t r a t e a n d i n c r e m e n t a l c o s t c o m p a r i s o n 

e v a l u a t i o n s f o r t h i s p r o j e c t w e r e d e t e r m i n e d b y A r t h u r D . L i t t l e , 

I n c . , u n d e r c o n t r a c t t o t h e C o r p s o f E n g i n e e r s . S i m i l a r c o s t s f o r 

b o t h r a i l a n d b a r g e m o v e m e n t w e r e c o m p a r e d i n t h e i n c r e m e n t a l c o s t 

e v a l u a t i o n . N e i t h e r p a s t c o s t s ( i . e . s u n k c o s t s ) n o r t h e c o s t o f 

c o n s t r u c t i n g t h e w a t e r w a y w e r e i n c l u d e d . T h e o n l y c o s t s c o n s i d e r e d 

w e r e t h o s e a d d i t i o n a l ( i . e. i n c r e m e n t a l ) c o s t s n e c e s s a r y t o p r o v i d e 

t h e t r a n s p o r t a t i o n m o v e m e n t , w h e t h e r b y b a r g e o r r a i l .

F o r t h e m o v e m e n t o f d r y b u l k c a r g o i n c l u d i n g i r o n o r e , 

s t e a m c o a l , c o k e i n g c o a l , c o k e , a n d l i m e s t o n e , w h i c h w o u l d c o n ­

s t i t u t e 9 7 % o f t h e i n i t i a l p r o s p e c t i v e c a n a l t r a f f i c , t h e A r t h u r 

D . L i t t l e i n c r e m e n t a l c o s t c o m p a r i s o n i n d i c a t e d t h e t r a n s p o r t a t i o n 

c o s t o n a t o n - m i l e b a s i s i s l e s s b y r a i l t h a n b y b a r g e . T h e 

A r t h u r D . L i t t l e r e p o r t * a l s o s t a t e d : " . . . t h e f a c t t h a t m o v e m e n t 

b y b a r g e u s u a l l y i n v o l v e d g r e a t e r c i r c u i t y i n r o u t e a n d h i g h e r 

o r i g i n a t i n g a n d t e r m i n a t i n g c o s t s m e r e l y t e n d e d t o i n c r e a s e t h e 

d i s p a r i t y i n i n c r e m e n t a l c o s t s i n f a v o r o f t h e r a i l r o a d s . "

W h i l e t h e P i t t s b u r g h D i s t r i c t E n g i n e e r s ' s u r v e y r e p o r t 

a r r i v e d a t a p r o j e c t b e n e f i t t o c o s t r a t i o o f 3 . 1 2 t o 1 b a s e d o n 

t h e " d i r e c t b e n e f i c i a r y " v i e w p o i n t , t h e C o r p s ' b e n e f i t t o c o s t 

r a t i o b e c o m e s l e s s t h a n 1, a c t u a l l y o n l y 0 . 7 6 t o 1 , w h e n t h e 

t r a n s p o r t a t i o n s a v i n g s a r e b a s e d o n t h e i n c r e m e n t a l c o s t c o m p a r i s o n 

p r o c e d u r e f r o m t h e c o m p r e h e n s i v e p u b l i c o r n a t i o n a l v i e w p o i n t . A s 

i n d i c a t e d i n t h e C o r p s ' r e p o r t , " I f j u d g e d o n t h e b a s i s o f i n c r e ­

m e n t a l c o s t s . . . , t h e p r o j e c t w o u l d n o t p r o d u c e s u f f i c i e n t b e n e f i t s 

t o w a r r a n t i t s c o n s t r u c t i o n . " N o a t t e m p t w a s m a d e i n t h e s u r v e y 

r e p o r t s t u d y t o d e t e r m i n e t h e n e e d f o r t h e p r o j e c t f r o m t h e c o m -

* " L a k e E r i e - O h i o R i v e r C a n a l " r e p o r t t o U . S . A r m y C o r p s o f

E n g i n e e r s * P i t t s b u r g h D i s t r i c t , p r e p a r e d b y A r t h u r D . L i t t l e , 

I n c . , N o v e m b e r 9 , 1 9 6 4 , 1 6 6 p a g e s .
1 2 0 8

1 4 -

p r e h e n si v e p u b li c vie w p oi n t ( i. e . t h a t t h e p r o j e c t p r o v i d e a 

n e e d e d t r a n s p o r t a ti o n s e r v i c e w it h a d v a nta g e t o t h e N a ti o n's 

t r a n s p o r t a ti o n s y st e m .) A c t u a ll y , n o o n e q u e s ti o n s t h e f a c t t h a t 

e x i s ti n g r a i l t r a n s p o rt a ti o n f a c i l i t i e s a r e m or e t h a n a d e q u ate t o 

c o n ti n u e t o h a n d l e a l l t h e t r a f f i c i n t h e a r e a w hic h t h i s w ate r w a y 

w o u l d s e r v e.

I X . T h e F a il u r e t o P la n a n d E v al u ate I n l a n d W at er w a y P r o j e c t s As

Ele m e nts o f t h e N ati o n al T r a n s p o rt a ti o n S y st e m M ust Be C o r r e ct e d

As i n d i c a t e d i n t h e N a ti o n al W ate r C o m mis si o n R e p o rt:

"t h e i n l a n d w ate r w a y s y ste m i s i n e s c a p a b l y a n ele m e nt o f t h e 

n a ti o n a l t r a n s p o r t a ti o n s y ste m . Y et, t h e w ate r w a y s a r e n ot p l a n n e d, 

e v a l u a t e d , o r r e g u l a t e d a s a p a rt o f t h e n a ti o n a l t r a n s p o r t a ti o n 

s y st e m . ”

A. T h e C o r p s o f E n gi n e e r s S h o u l d N ot H a v e t h e E x cl u si v e R e s p o n sib i l i t y f o r E v al u ati n g N a vi g ati o n P r o j e c t s

T h e p ri m a r y r e a s o n w h y n a v i g a ti o n p r o j e c t s a r e n ot b ei n g 

pla n n e d o r e v a l u a t e d a s ele m e nts o f t h e n a ti o n a l t r a n s p o rt a ti o n 

s y ste m i s b e c a u s e t h e C o r p s o f E n gi n e e r s c o n ti n u e s t o h a v e t h e 

s o l e r e s p o n s i b ilit y f o r n ot o nl y d e si g n i n g a n d c o n s t r u c ti n g n a v i g a ­

ti o n p r o j e c t s b u t a l s o f o r d ete r m i n i n g t h e n e e d a n d ec o n o m ic f e a s i ­

b i l i t y o f t h e s e p r o j e c t s . ’ W hil e t h e C o r p s h a s m a d e l i t t l e , i f a n y, 

att e m p t t o d et e r m i n e i f n a v i g a ti o n p r o j e c t s a r e n e e d e d o r o f a d ­

v a nta g e t o t h e N a ti o n's t r a n s p o rt a ti o n s y ste m , i t m ust b e re m e m be re d 

t h a t t h e C o r p s h a s n e v e r b e e n gi v e n a n y r e s p o n s i b ilit y f o r o u r 

N a ti o n's o v e r a ll t r a n s p o rt a ti o n s y ste m . C o n g r e s s h a s gi v e n t h i s 

r e s p o n s i b ilit y t o t h e D e p art m e nt o f T r a n s p o rt a ti o n ; h o w e v er, a s y e t, 

t h e D. O . T . h a s h a d l i t t l e o r n o o p p o rt u n it y t o a s s i s t i n t h e p l a n ­

ni n g o r e v a l u a ti n g o f n a v i g a ti o n p r o j e c t s . T his i s s o m e w hat s u r ­

p ri s i n g si n c e C o n g r e s s, w h e n i t c r e a t e d t h e D. O . T . ( P. L . 8 9 - 6 7 0,

O ct. 1 5, 1 9 6 6 ), p r o c e e d e d t o e x p a n d t h e F e d e r a l a g e n c y m e m b er s h i p 

i n t h e W at er R e s o u r c e s C o u n cil "t o i n c l u d e t h e S e c r e t a r y o f 

T r a n s p o rt a ti o n o n m a tt e r s p e rt a i n i n g t o n a v i g a ti o n f e a t u r e s o f w at e r 

r e s o u r c e p r o j e c t s . " [ E m p h as is s u p p li e d .) Fr o m t h e h e a ri n g s o n t h e 

l e g i s l a ti o n w hic h e s t a b li s h e d t h e D . O . T ., i t i s c l e a r t h a t a p ri m a r y 

r e a s o n f o r i n c l u d i n g t h e D. O . T. S e c r e t a r y o n t h e C o u n cil wa s t o p r o ­

v i d e t h e o p p o rt u n it y t o p a r ti c i p a t e i n e s t a b li s h i n g st a n d a r d s a n d 

c r i t e r i a f o r t h e t r a n s p o rt a ti o n f e a t u r e s o f w at e r r e s o u r c e p r o j e c t s . 

As p o i n t e d o ut b y S e n at o r W illi a m P r o x m ir e i n h i s i n t r o d u c ti o n o f 

S. 4 3 3 8 o n S e pte m b er 1 4, 1 9 7 0 : " n o o n e fr o m t h e D e p a rt m e nt o f 

T r a n s p o rt a ti o n w as o n t h e [ W at er R e s o u r c e s C o u n c il's s p e c i a l ) t a s k 

f o r c e w hic h d e v el o p e d t h e ne w g u i d e li n e s. " T h e E d it o r's d r a f t o f 

t h e N ati o n al W at er C o m mis si o n r e p o rt ma de t h e f o ll o w i n g st a t e m e n t:

“ T he e x cl u si o n o f t h e D e p art m e nt o f T r a n s p o rt a ti o n fr o m 

t h e ec o n o m ic e v a l u a ti o n o f p r o p o s a l s f o r t h e i n v e st m e nt 

o f F e d e r a l f u n d s i n w at er w a y t r a n s p o r t a ti o n f a c i l i t i e s 

c r e a t e s a s it u a ti o n i n w hic h i t i s i n h e r e n tl y i m p o s si b l e 

t o a c hi e v e c o n f o r m it y b et w e e n n a v i g a ti o n e v a l u a ti o n 

st a n d a r d s a n d i n v e st m e nt c r i t e r i a f o r o t h e r m o d es o f 

t r a n s p o r t a ti o n . "
1 2 0 9

1 5 -

B . D e p a r t m e n t o f T r a n s p o r t a t i o n P a r t i c i p a t i o n i s A l s o N e e d e d

f o r C o n s i d e r a t i o n o f T r a n s p o r t a t i o n A l t e r n a t i v e s t o

N a v i g a t i o n P r o j e c t s

I n i t s p l a n n i n g a n d e v a l u a t i o n o f i n l a n d n a v i g a t i o n p r o ­

j e c t s , t h e C o r p s h a s y e t t o c o n s i d e r t r a n s p o r t a t i o n a l t e r n a t i v e s 

b a s e d o n e x i s t i n g o r i m p r o v e d f a c i l i t i e s f o r o t h e r m o d e s o f t r a n s ­

p o r t a t i o n . T h e C o r p s * c o n s i d e r a t i o n o f a l t e r n a t i v e s t o t h e u s e o f 

w a t e r r e s o u r c e s f o r n a v i g a t i o n i s e s s e n t i a l l y l i m i t e d t o e i t h e r t h e 

n o n - u s e o f t h e s e r e s o u r c e s o r t h e i r u s e f o r o t h e r w a t e r r e s o u r c e 

d e v e l o p m e n t p u r p o s e s s u c h a s f l o o d c o n t r o l , h y d r o e l e c t r i c p o w e r a n d 

i r r i g a t i o n .

T h e H o u s t o n U . S . D i s t r i c t C o u r t J u d g e , C a r l O . B u e , J r . , 

i n h i s F e b r u a r y 1 6, 1 9 7 3 d e c i s i o n i n S i e r r a C l u b v . F r o e h l k e , 3 5 9 

F . S u p p . 1 2 8 9 , r e v e a l e d t h e i n a d e q u a c y o f t h e C o r p s ' c o n s i d e r a t i o n 

o f a l t e r n a t i v e s t o t h e T r i n i t y R i v e r n a v i g a t i o n p r o j e c t i n h i s 

a n a l y s i s o f t h e C o r p s * e n v i r o n m e n t a l i m p a c t s t a t e m e n t o n t h e 

W a l l i n s v i l l e l o c k a n d d a m p o r t i o n o f t h e T r i n i t y R i v e r p r o j e c t .

T h i s d e c i s i o n s t a t e d : “ c o n s i d e r a t i o n o f a l t e r n a t i v e s t o n a v i g a t i o n 

n e c e s s a r i l y w i l l h a v e t o a p p e a r " ; a l s o " S o m e i n q u i r y m i g h t b e 

d i r e c t e d t o t h e D e p a r t m e n t o f T r a n s p o r t a t i o n t o d e t e r m i n e w h a t , i f 

a n y t h i n g , m i g h t c o n s t i t u t e o t h e r r e a s o n a b l e a l t e r n a t i v e s . " T h i s 

d e c i s i o n a l s o r e f e r r e d t a a n " e n v i r o n m e n t a l r e p o r t " ( " p r e p a r e d b y 

S t e p h e n F . A u s t i n S t a t e U n i v e r s i t y f o r t h e C o r p s i n c o n n e c t i o n 

w i t h t h e p r o p o s e d T e n n e s s e e C o l o n y R e s e r v o i r , a n o t h e r l i n k i n t h e 

o v e r a l l T r i n i t y P r oj e c t , * * ) w h i c h " r e c o m m e n d e d s e r i o u s c o n s i d e r a t i o n 

o f e x i s t i n g o r n e w r a i l w a y f a c i l i t i e s . " T h i s d e c i s i o n f u r t h e r 

s t a t e d " c o m m o n s e n s e d i c t a t e s t h a t a n y c o n s i d e r a t i o n o f a l t e r n a t i v e s 

u n d e r N E P A w o u l d r e q u i r e a n o v e r a l l a s s e s s m e n t o f e x i s t i n g t r a n s ­

p o r t a t i o n f a c i l i t i e s i n t h e a r e a o f t h e p r o p o s e d p r o j e c t . "

C . C o n g r e s s H a s S p e l l e d O u t t h e S p e c i f i c I n f o r m a t i o n N e e d e d

W h e n C o n s i d e r i n g T r a n s p o r t a t i o n I n v e s t m e n t P r o p o s a l s

I n o r d e r t o c o r r e c t t h e f u n d a m e n t a l d e f e c t t h a t i n l a n d 

w a t e r w a y p r o j e c t s a r e n o t b e i n g p l a n n e d a n d e v a l u a t e d a s p a r t o f 

t h e n a t i o n a l t r a n s p o r t a t i o n s y s t e m a n d t o d e t e r m i n e i f a p r o p o s e d 

n a v i g a t i o n p r o j e c t w o u l d p r o v i d e a n e e d e d t r a n s p o r t a t i o n s e r v i c e 

w i t h a d v a n t a g e t o t h e N a t i o n ' s t r a n s p o r t a t i o n s y s t e m , i t i s i m p e r a ­

t i v e t h a t t h e p l a n n i n g a g e n c y o r c o m m i s s i o n h a v e a c c e s s t o c e r t a i n 

i n f o r m a t i o n o n t h e t o t a l t r a n s p o r t a t i o n s y s t e m i n t h e s t u d y a r e a .

T h e s p e c i f i c i n f o r m a t i o n n e e d e d t o m a k e t h i s d e t e r m i n a t i o n i s e s ­

s e n t i a l l y t h e f o l l o w i n g w h i c h s e c t i o n 7 ( b ) o f P u b l i c L a w 8 9 - 6 7 0 

( t h e D . O . T . A c t ) r e q u i r e s t h e S e c r e t a r y o f T r a n s p o r t a t i o n t o f u r n i s h 

f o r v a r i o u s o t h e r t r a n s p o r t a t i o n i n v e s t m e n t p r o p o s a l s :

" p r o j e c t e d g r o w t h o f t r a n s p o r t a t i o n n e e d s a n d t r a f f i c i n 

t h e a f f e c t e d a r e a , t h e r e l a t i v e e f f i c i e n c y o f v a r i o u s 

m o d e s o f t r a n s p o r t , t h e a v a i l a b l e t r a n s p o r t a t i o n s e r v i c e s 

i n t h e a r e a , a n d t h e g e n e r a l e f f e c t o f t h e p r o p o s e d i n ­

v e s t m e n t o n e x i s t i n g m o d e s a n d o n t h e r e g i o n a l a n d 

n a t i o n a l e c o n o m y . "
1 2 1 0

1 6 -

E s s e n ti a ll y n o n e o f t h i s i n f o r m ati o n i s c u r r e n tl y b ei n g o b t a i n e d 

w h e n d et e r m i n i n g t h e n e e d a n d ec o n o m ic f e a s i b i l i t y o f i n l a n d 

n a v i g a ti o n p r o j e c t s .

D. T h e S t u d i e s o f N a vi g ati o n A lt e r n a ti v e s i n t h e P ri v a t e S e ct o r

S h o ul d Be S i m il a r t o T h o se f o r H y d r o e l e c t ri c P o we r

T h e p l a n n i n g o f t h e u s e o f o u r N a ti o n's w at e r r e s o u r c e s 

f o r c o m m erc ia l n a v i g a ti o n s h o ul d i n v o l v e t h e sa m e c o n s i d e r a ti o n o f 

a lt e r n a ti v e s i n t h e p ri v a t e s e c t o r a s d o e s t h e p l a n n i n g f o r u s e o f 

t h e s e r e s o u r c e s f o r h y d r o e l e c t ri c p o w er. I n e a c h c a s e, t h e r e a r e 

s p e c i fi c n e e d s t o b e m et; t h e r e a r e u s u a ll y a lt e r n a ti v e f a c i l i t i e s 

w hic h e it h e r e x i s t o r ca n b e p r o vi d e d f o r i n t h e p ri v a t e s e c t o r f o r 

m e eti n g t h e s e n e e d s, a n d t h e c a p a c it y o f t h e t o t a l f a c i l i t i e s 

s h o ul d b e r e l a t e d t o t h e a c t u a l r e q u ir e m e n t s. A ls o, t h e d e v el o p ­

m e n t o f a d d iti o n a l f a c i l i t i e s i n e a c h c a s e s h o ul d b e b a s e d p r i ­

m a ril y o n t h e c o m p a ri s o n o f t h e r e l a ti v e e f fi c i e n c y o f t h e v a ri o u s 

a lt e r n a ti v e s f o r m e eti n g t h e f u t u r e r e q u ir e m e n t s.

I n t h e c a s e o f h y d r o e l e c t ri c p o w er c o n s i d e r a ti o n , a d e q u ate 

b a c k g r o u n d i n f o r m ati o n i s b ei n g d e v el o p e d t o d ete r m i n e t h e s p e c i fi c 

n e e d s t o b e m et, t h e a lt e r n a ti v e f a c i l i t i e s w hic h e x i s t o r c a n b e 

p r o vi d e d f o r m e eti n g t h e s e n e e d s, a n d t h e r e l a ti v e e f fi c i e n c y o f t h e 

a lt e r n a ti v e s . As a n e x a m ple, f o r t h e C o m p re h e n si v e R i v e r B a si n 

Fr a m e w or k st u d y o f t h e O hi o R i v e r B a si n, t h e p o t e n ti a l d e v el o p m e nt 

o f h y d r o e l e c t ri c p o w er i n t h e b a si n wa s d ete r m i n e d a s p a rt o f a 

c o m p re h e n si v e st u d y b y t h e F e d e r al P o w er C o m mis si o n o f t h e 

c a p a c it y , u s e a n d c o s t o f p r o d u ci n g o f a l l e l e c t r i c e n e r g y i n t h e 

b a si n a r e a. S i m il a r d e t a il e d s t u d i e s o f t h e t o t a l t r a n s p o r t a ti o n 

s y ste m s h o ul d b e m a d e i n o r d e r t o d et e r m i n e i f n a v i g a ti o n i m p r o v em e nts a r e n e e d e d a n d e c o n o m ic all y j u s t i f i e d .

X. T h e P la n ni n g P r o c e d u r e s Us e d i n F o r m ula ti n g t h e Fr a m e w or k Pla n f o r

C o m m eric al N a vi g ati o n D e v el o p m e n t i n t h e U p p er M i s si s si p p i R i v e r

C o m p re h e n si v e B a si n St u d y A re T o t a ll y D e fi c i e n t

T h e 1 9 7 2 r e p o rt o n t h e " U p p er M i s s i s s i p p i R i v e r C o m pr eh e n si v e B a si n S t u d y," w hi c h w as c o m pil e d u n d e r t h e d i r e c ti o n o f 

t h e N o rt h C e n tr a l D i v i si o n o f t h e C o r p s o f E n g i n e e r s, r e p o rt e d l y 

p r e s e n t s a "f ra m e w or k f o r d e v el o p m e nt f o r t h e e f f i c i e n t u s e o f 

w ate r a n d r e l a t e d la n d r e s o u r c e s o f t h e U p p er M i s si s si p p i R i v e r 

B a si n . ” [ E m p h as is s u p p li e d .] I n vie w o f t h e e x i s ti n g e x c e s s 

t r a f f i c c a r r y i n g c a p a c it y o f t h e t o t a l t r a n s p o r t a ti o n s y ste m i n 

t h e B a si n a r e a, t h e r a il r o a d s' f a v o r a b l e c o m p a ri s o n w it h b a r g e 

t r a n s p o r t a ti o n i n t h e c o st o f t h e r e s o u r c e s n e c e s s a r y t o f u r n i s h 

e q u i v a l e n t t r a n s p o rt a ti o n o f d r y b u l k c o m m o dit ie s, a n d t h e s e ri o u s 

d e fi c i e n c i e s i n t h e p r o c e d u r e s u se d t o e v a l u a t e n a v i g a ti o n p r o j e c t 

p r o p o s a l s, i t i s al m o st b e y o n d c o m p re h e n si o n h o w t h e fr a m e w or k 

st u d y p r o p o s al f o r a $ 3. 2 b i l l i o n c o m m e rc ia l n a v i g a ti o n e x p e n dit u r e c o ul d p o s s i b l y r e p r e s e n t e f f i c i e n t u s e o f t h e w ate r a n d r e ­

l a t e d la n d r e s o u r c e s i n t h e B a si n.
1 2 1

- 1 7 -

A . N o O v e r a l l S t u d y o f t h e B a s i n ' s T o t a l T r. ~n . pf r t , ; i o n S y : t r,

W a s M a d e a n d T r a n s p o r t a t i o n A l t e r n a t i v e s W e r e E o t C &r .o jf ’. o r e c l

W h i l e t h e C o r p s m a d e n o s t u d y w h a t s o e v e r o f t h e t o t a l 

t r a n s p o r t a t i o n s y s t e m i n t h e B a s i n a r e a , h a d t h i s b e e n d o n e , i t 

w o u l d h a v e r e v e a l e d t h a t t h e r a i l r o a d s a r c f u l l y a b l e t o c a r r y 

a l l o f t h e p r o s p e c t i v e w a t e r w a y t r a f f i c . A r e c e n t ( A u g u s t , 1 9 7 1 ) 

s t u d y o f " T h e E n v i r o n m e n t a l I m p a c t o f P r o j e c t e d I n c r e a s e s i n 

I n t e r c i t y F r e i g h t T r a f f i c " b y B a t t e l l e L a b o r a t o r i e s i n C o l u m b u s 

e s t i m a t e d t h e t r a f f i c - c a r r y i n g c a p a c i t y o f t h e r a i l r o a d s i n 

A m e r i c a t o b e " t w o t o t h r e e t i m e s t h e c u r r e n t r a t e o f u t i l i z a t i o n . 

T h i s r e p o r t a l s o s t a t e d : " W i t h m o d e r n i z a t i o n ( p a r t i c u l a r l y o f 

s i g n a l l i n g c a p a b i l i t y ) , u s e o f l o n g e r ( h e a v i e r ) t r a i n s , a n d f a s t e r 

o p e r a t i o n , t h e t r a f f i c - c a r r y i n g c a p a c i t y o f m a n y r a i l r o a d s i n 

t h e U n i t e d S t a t e s m i g h t b e i n c r e a s e d b y a f a c t o r o f s e v e n . "

A s t u d y o f t r a n s p o r t a t i o n a l t e r n a t i v e s c o u l d v e r y w e l l 

i n d i c a t e r a i l e l e c t r i f i c a t i o n w o u l d b e a m u c h b e t t e r t r a n s p o r t a ­

t i o n i n v e s t m e n t . E l e c t r i f i c a t i o n w o u l d n o t o n l y r e s u l t i n l o w e r 

l o c o m o t i v e m a i n t e n a n c e c o s t s a n d p r o v i d e t h e p o t e n t i a l f o r h i g h e r 

s p e e d , ' l o n g e r t r a i n o p e r a t i o n s o n h i g h - d e n s i t y l i n e s , i t w o u l d 

a l s o h e l p t o r e d u c e t h e d e m a n d f o r p e t r o l e u m f u e l s a n d p r o v i d e 

e n v i r o n m e n t a l a d v a n t a g e s ^ I r r e s p e c t i v e o f t h e e f f i c i e n c y a n d 

o t h e r a d v a n t a g e s o f r a i l e l e c t r i f i c a t i o n , t h e h i g h i n i t i a l c a p i t a l 

i n v e s t m e n t a n d h e r e t o f o r e a m p l e s u p p l y o f i n e x p e n s i v e d i e s e l f u e l 

h a s p r e v e n t e d e x t e n s i v e r a i l e l e c t r i f i c a t i o n b y t h e p r i v a t e l y 

o w n e d A m e r i c a n r a i l r o a d s . R a i l e l e c t r i f i c a t i o n i s u s e d e x t e n ­

s i v e l y i n E u r o p e , b u t t h e r e t h e r a i l r o a d s a r e g o v e r n m e n t o w n e d 

a n d t h e i n i t i a l i n s t a l l a t i o n c a p i t a l i s a v a i l a b l e f r o m t h e 

G o v e r n m e n t .

B . N o C o s t o r R e l a t i v e E f f i c i e n c y C o m p a r i s o n s W i t h O t h e r

M o d e s o f T r a n s p o r t a t i o n W e r e M a d e

W h i l e t h e d e v e l o p m e n t p l a n p r e s e n t e d i n t h e c o m p r e h e n ­

s i v e b a s i n s t u d y w a s i n t e n d e d t o r e p r e s e n t t h e b e s t a n d m o s t 

e f f i c i e n t u s e o f t h e w a t e r a n d r e l a t e d l a n d r e s o u r c e s i n t h e U p p e r 

M i s s i s s i p p i R i v e r B a s i n , n o i n f o r m a t i o n w h a t s o e v e r w a s o b t a i n e d 

r e g a r d i n g t h e c o s t o r r e l a t i v e e f f i c i e n c y o f t h e v a r i o u s m o d e s o f 

t r a n s p o r t a t i o n , n o r w a s t h e n a v i g a t i o n d e v e l o p m e n t p l a n b a s e d o n 

e f f i c i e n c y c o n s i d e r a t i o n s . T r a n s p o r t a t i o n e f f i c i e n c y i s m e a s u r e d 

i n t e r m s o f t h e c o s t o f t h e r e s o u r c e s n e c e s s a r y t o p r o v i d e t h e 

t r a n s p o r t a t i o n s e r v i c e . A s t o e x a c t l y w h a t c o s t s a r c t o b e c o m ­

p a r e d , t h e I . C . C . A d m i n i s t r a t i v e L a w J u d g e ' s d e c i s i o n o f M a y 7 , 

1 9 7 3 r e g a r d i n g " C o s t S t a n d a r d s i n I n t e r m o d a l R a t e P r o c e e d i n g s " 

s t a t e s s a v i n g s i n v a r i a b l e c o s t s w i l l r e s u l t i n t h e m o s t e f f i c i e n t 

a l l o c a t i o n o f r e s o u r c e s i n t h e p r o d u c t i o n o f v a r i o u s g o o d s a n d 

s e r v i c e s s i n c e

" v a r i a b l e c o s t s t a n d s f o r t h e v a l u e i n e c o n o m i c 

r e s o u r c e s ( l a b o r , m a t e r i a l s , c a p i t a l ) t h a t m u s t 

b e t r a n s f e r r e d f r o m o t h e r i n d u s t r i e s t o p r o d u c e 

a n a d d i t i o n a l u n i t o f g o o d s o r s e r v i c e i n a 

p a r t i c u l a r i n d u s t r y . "

5 4- 2 3 9 0 - 7 5 - 7 7
1 2 1 2

1 8 -

I t i s q u it e c l e a r t h a t d e c i s i o n s r e g a r d i n g t h e m os t 

e f f i c i e n t u se o f t h e w ate r a n d r e l a t e d la n d r e s o u r c e s i n t h e U p p er 

M i s si s si p p i R i v e r B a si n f o r t r a n s p o r t a ti o n s h o ul d b e b a s e d o n 

v a ri a b l e c o s t c o m p a ris o n s. W hil e n o s u c h c o st c o m p a ri s o n s w er e 

ma de f o r t h e U p p er M i s si s si p p i R i v e r C o m p re h e n si v e B a si n S t u d y, 

t h e y w er e ma de f o r t h e P itt s b u r g h D i s t r i c t E n g i n e e r ’ s e v a l u a ti o n o f 

t h e La ke E ri e - O h i o R i v e r C a n al p r o j e c t. T h e e x t e n t t o w hic h t h e 

d i r e c t b e n e fi c i a r y e v a l u a ti o n p r o c e d u r e u se d i n t h e c o m p re h e n si v e 

b a si n st u d y d i s t o r t s t h e t r u e w o rt h o f a n a v i g a ti o n p r o j e c t b a s e d 

o n t h e m o st e f f i c i e n t u se o f r e s o u r c e s f o r t h e p r o d u cti o n o f 

t r a n s p o rt a ti o n s e r v i c e i s c o v e r e d i n S e cti o n V III o f t h i s p a p e r.

C. L it t l e o r N o I n f o r m ati o n Was P r e s e n t e d o n t h e C o st o f t h e

E x i sti n g N a vi g ati o n P r o j e c t s, T h eir R e l a ti v e V al u e a n d

E n vir o n m e nta l I m p ac t

W hil e t h e c o m p re h e n si v e b a si n st u d y r e p o rt d e a li n g w it h 

n a v i g a ti o n ( A p p e n di x J ) d e s c ri b e s t h e e x i s ti n g n a v i g a ti o n p r o j e c t s 

i n t h e b a si n a r e a, i t p r e s e n t s n o i n f o r m ati o n o n t h e p r e s e n t a n d 

e sti m at e d c o s t o f t h e s e p r o j e c t s. L it t l e i n f o r m ati o n i s p r e s e n t e d 

o n t h e e x t e n t t o w hic h t h e v a ri o u s p r o j e c t s h a v e o r h a v e n ot p r o v e d 

t o b e a n e e d e d a n d e c o n o m ic all y j u s t i f i e d a d d iti o n t o o u r N a ti o n's 

t r a n s p o rt a ti o n s y ste m . T h e M is s o u ri R i v e r B a si n C o m pre h e n si v e 

Fra m e w or k St u d y a l s o f a il e d t o p r e s e n t c o s t i n f o r m ati o n o n t h e 

M is s o u ri R i v e r N a vi g ati o n P r o j e c t. O n t h e b a s i s o f s u c h i n f o r m a ­

ti o n , a b a n d o n m e n t o f t h e w at er w a y a s a t r a n s p o rt a ti o n m o d e w o u l d 

b e j u s t i f i e d .

W hil e t h e e x i s ti n g M is s o u ri R i v e r 9 - f t. n a v i g a ti o n p r o j e c t 

wa s a u t h o ri z e d b y C o n g re s s o n t h e b a s i s o f C or p s e sti m a t e s o f a 

p r o s p e c ti v e c o m m erc ia l t r a f f i c m o v e m e nt o f 1 2 m illi o n t o n s a n n u all y 

a n d a s a v i n g s t o s h i p p e r s o f $ 1 p e r t o n , t h e a n n u al t o n n a g e h a s h el d 

f a i r l y st e a d y a t o nl y 2 - 1/ 2 m illi o n t o n s si n c e 1 9 6 5. B ut d u ri n g 

t h i s p e ri o d , t h e a n n u al m ai n te n a n c e c o st h a s i n c r e a s e d 5 0 %l O n a 

p e r t o n b a s i s, t h e m ai n te n a n c e c o s t al o n e i s c u r r e n tl y a b o ut fi v e 

ti m e s a s m uc h a s t h e e sti m at e d $ 1 p e r t o n s a v i n g s t o t h e s h i p p e r s ! 

W hil e o v e r $ 6 0 0 m illi o n h a s alr e a d y b e e n s p e n t o n t h e p r o j e c t (c o n ­

s i s ti n g o f $ 4 0 0 m illi o n f o r c o n s t r u c ti o n a n d $ 2 0 0 m illi o n f o r m ai n ­

t e n a n c e ) t h e C or p s e sti m a t e s a t l e a s t a n o t h e r $ 4 5. 5 m illi o n i n ne w 

w or k w ill b e r e q u i r e d . I t i s d o u b tf u l w h et h e r i n t h e h i s t o r y o f 

F e d e r al n a v i g a ti o n i m pr o v e m e nts s o m u c h h a s b e e n s p e nt w it h s o 

l i t t l e e f f e c ti v e r e s u l t s . W hil e i t i s u n li k e l y a n y o f t h e n a v i g a ­

ti o n p r o j e c t s i n t h e U p pe r M i s si s si p p i R i v e r B a si n h a v e s u c h a p o o r 

t r a c k r e c o r d , c o s t i n f o r m ati o n o f t h i s t y p e i s i m p o rta nt w he n c o n ­

s i d e ri n g a lt e r n a ti v e s .

B a c k gr o u n d i n f o r m ati o n o n t h e p h y si c a l a n d e c o l o g i c a l i mp a ct o f t h e e x i s ti n g n a v i g ati o n p r o j e c t s s h o ul d a l s o b e d e v el o p e d 

i n t h e c o m p re h e n si v e b a si n s t u d i e s . T h e M is s o u ri R i v e r b a si n st u d y 

i s p a r ti c u l a r l y d e f i c i e n t i n f a ili n g t o d e v el o p t h e e x t e n t t o w hic h 

t h e h i g h fl o w r a t e s b ei n g m ai n ta i n e d d u ri n g t h e n a v i g a ti o n s e a s o n 

m a g nif y fl o o d i n g a n d b a n k e r o si o n p r o ble m s. I n f o r m ati o n o n t h e
1 2 1 3

1 9 -

i m p a ct o f a p o rti o n o f t h e e x i s ti n g U p p er M i s si s si p p i R i v e r B a si n 

n a v i g a ti o n p r o j e c t s o n t h e " e n vir o n m e nt," i n c l u d i n g t h e n a t u r a l a s 

w ell a s t h e s o c i a l a n d ec o n o m ic s e tti n g , i s i n t h e p r o c e s s o f b ei n g 

p r e p a r e d f o r t h e C or p s b y a c o n s u lti n g o r g a n i z a ti o n a s s i s t e d b y a 

n u m be r o f i n v e s ti g a t o r s a s s o c i a t e d w it h v a ri o u s c o ll e g e s a n d 

u n i v e r s iti e s . S u c h i n f o r m ati o n s h o ul d b e i n cl u d e d i n t h e c o m pre ­

h e n si v e b a s i n st u d y a n d c o n si d e r e d i n a r e - e v a l u a ti o n o f t h e fr a m e ­

w or k p l a n f o r n a v i g a ti o n .

X I. C o n c l u si o n s;

As s t a t e d i n t h e N a ti o n a l W ate r C o m mis si o n r e p o rt, n a v ig a ti o n p r o j e c t s a r e b ei n g (a n d h a v e b e e n ) u n d e rta k e n t h a t c o ul d n ot 

p a s s t h e t e s t o f a n u n bia s e d e v a l u a ti o n . Mr. C h a rl e s F . L u c e, 

f o r m e r C h air m a n o f t h e N ati o n al W at er C o m mis si o n, i n h i s k e y n ote 

s p e e c h d u ri n g t h e J a n u a r y 2 9 t h r u F e b r u a r y 2, 1 9 7 3 n a ti o n a l m e eti n g 

o f t h e A m er ic a n S o ci et y o f C i v il E n gi n e e r s s t a t e d t h e e c o n o m ic s o f 

s o m e w ate r w a y p r o j e c t s a r e s o d i s t o r t e d t h a t i f y o u t o o k t h e 

F e d e r a l m o ne y s p e nt f o r t h e w ate r w a y p r o j e c t a n d s e t u p a tr u s Y 

f u n d y o u c o ul d s h i p a l l t h e a n ti c i p a t e d w ate r w a y t r a f f i c b y r a i l a t 

n o c o s t t o t h e s h i p p e r s !

T h e a d v e r s e ec o n o m ic e f f e c t s o f u n n e c e s s a r y a n d u n ec o n o m ­

i c a l n a v i g a ti o n p r o j e c t s n ot o n l y i n c l u d e t h e s i g n i f i c a n t l o s s o f 

m u c h n e e d e d t r a f f i c a n d r e v e n u e t o t h e r a il r o a d s , b u t a l s o i n c l u d e 

t h e m is u s e o f o u r N a ti o n's w at e r a n d r e l a t e d la n d r e s o u r c e s, 

c o s tl y e x c e s s t r a n s p o rt a ti o n c a p a c it y , a n d e x t e n si v e u n d e ru t i l i z a t i o n o f t h e r a il r o a d s' v a s t b a s i c t r a n s p o r t a ti o n f a c i l i t i e s 

i n r o a d w a y a n d s t r u c t u r e s .

T h e s e ri o u s d e f i c i e n c i e s i n t h e p o li c i e s a n d p r o c e d u r e s 

b ei n g u se d i n pla n ni n g a n d e v a l u a ti n g i n l a n d n a v i g a ti o n p r o j e c t s , 

w hic h a r e r e v e al e d i n t h e N a ti o n al W at er C o m mis si o n R e p o rt, g r e a tl y 

d i s t o r t t h e t r u e w o rt h o f n a v i g a ti o n p r o j e c t s . T h e c o n ti n u e d u s e 

o f t h e s e p o li c i e s a n d p r o c e d u r e s p r e v e n t s e f f i c i e n t u t i l i z a t i o n 

a n d c o n s e r v a ti o n o f o u r N a ti o n's w at e r a n d r e l a t e d l a n d r e s o u r c e s. 

T h e p r o j e c t e v a l u a ti o n d e fi c i e n c i e s a r e d u e p ri m a ril y t o t h e f a c t 

t h a t t h e n e e d, p r o j e c t e f f e c t s , a n d ec o n o mic j u s t i f i c a t i o n f o r 

i n l a n d n a v i g a ti o n p r o j e c t s a r e b ei n g d ete r m i n e d s o l e l y fr o m t h e 

li m it e d vie w p oi n t o f t h e w ate r w a y s h i p p e r s. N a vi g ati o n p r o j e c t s 

a r e n o t b ei n g e v al u at e d a s ele m e nts o f t h e n a ti o n a l t r a n s p o r t a ti o n 

s y ste m . O v e r a ll t r a n s p o r t a ti o n s t u d i e s a r e n ot b ei n g m a d e a n d 

t r a n s p o r t a ti o n a lt e r n a ti v e s t o n a v i g a ti o n p r o j e c t s a r e n o t b ei n g 

c o n si d e r e d . N o c o st o r r e l a ti v e e f fi c i e n c y c o m p a ris o n s w it h o t h e r 

m o d es o f t r a n s p o rt a ti o n a r e b ei n g m a d e. N a vi g ati o n p r o j e c t p l a n ­

ni n g d e c i s i o n s a r e n ot b ei n g b a s e d o n t h e o b j e c ti v e o f o b t a i n i n g 

t h e m o st e f f i c i e n t u s e a n d c o n s e r v a ti o n o f o u r N a ti o n's w at e r a n d 

r e l a t e d la n d r e s o u r c e s.

T h e a b s e n c e o f a n y w ate r w a y u s e r c o s t - s h a ri n g p o li c y h a s 

a l s o c o n t ri b u t e d t o t h e a u t h o ri z a ti o n a n d f u n di n g o f u n n e c e s s a r y 

a n d u n e c o n o m ic al n a v i g a ti o n p r o j e c t s . C o st- s h a ri n g b y t h e d i r e c t 

b e n e f i c i a r i e s w o ul d b e v e r y e f f e c ti v e i n e li m i n a ti n g p o l i t i c a l
1 2 1 4

2 0 -

p r e s s u r e s fr o m a n y g r o u p s e e ki n g a p r o j e c t p ri m a ril y b e c a u s e t h e y 

e x p e ct i t t o b e p a i d f o r b y t h e F e d e r al T r e a s u r y. I f n o n - F e d e r al 

i n t e r e s t s a g r e e t o p a y f o r a l l , o r a t l e a s t t h e m aj o r p o rti o n , o f 

t h e f i r s t c o s t o f a n a v i g ati o n p r o j e c t. C o n g re s s a n d t h e p u b li c 

c a n b e s u r e t h o s e u r gi n g t h e p r o j e c t a r e si n c e r e i n b e li e v i n g i t 

i s j u s t i f i e d .

W hil e i t i s i m p o rt a n t, a s a f i r s t st e p t o w ar d c o r r e c ti n g 

t h e s e p r o ble m s, t h a t s o u n d p o li c i e s a n d p r o c e d u r e s f o r e v a l u a ti n g 

n a v i g a ti o n p r o j e c t s b e i m ple m e nts, i t i s o b vi o u s fr o m p a s t e x p e r ­

ie n c e t h a t m or e i m p o rta nt c h a n g e s t h a n t h i s a r e r e q u i r e d . W hil e 

C o n g re s s h a s c l e a r l y e x p r e s s e d i t s p o s iti o n t h a t w at e r r e s o u r c e 

p r o j e c t d e c i s i o n s s h a ll b e b a s e d o n t h e p u b li c b e n e fit a n d n e e d, 

t h i s m a n d ate h a s y et t o b e i m ple m e nte d f o r n a v i g a ti o n p r o j e c t s .

I t i s a l s o a f a c t t h a t s o u n d p o li c i e s a n d p r o c e d u r e s f o r p l a n n i n g 

a n d e v a l u a ti n g i n l a n d n a v i g a ti o n p r o j e c t s h a v e b e e n p r e s c ri b e d b y 

t h e E x e c uti v e B ra n c h b ut h a v e n e v e r b e e n f o ll o w e d.

P e r h a p s o n e o f t h e m o st i m p o rt a n t o b s e r v a ti o n s i n t h e 

n a ti o n a l W ate r C o m mis si o n r e p o rt i s t h a t F e d e r al c o n s t r u c ti o n 

a g e n ci e s te n d t o c o l o r t h e i r c a l c u l a ti o n s w it h s e l f - i n t e r e s t i n 

m a ki n g p r o j e c t e v a l u a ti o n s a n d t h a t t h e s e t e n d e n ci e s c a n n ot b e 

c h e c k e d b y t h e e x i s ti n g i n t e r a g e n c y c o o r d i n a ti o n p r o c e s s i n w hic h 

a l l t h e p a r ti c i p a n t s a r e e q u al a n d e a c h i s i n c o n t r o l o f h i s o w n 

s e p a r a t e p r o g ra m . T h e C o m mis si o n wa s p a r ti c u l a r l y c r i t i c a l o f t h e 

i n t e r a g e n c y c o o r d i n a ti o n t h r o u g h t h e W at er R e s o u r c e s C o u n cil. T h e 

C o m mis si o n r e c o g n i z e s t h e w e a k n e ss o f t h e C o u n cil t o r e s o l v e c o n ­

t r o v e r s i a l p r o g ra m s a n d p o li c y i s s u e s, e s p e c i a ll y t h o s e w hic h 

m i g ht r e s u lt i n fe w e r w ate r r e s o u r c e p r o j e c t s f o r o n e o f t h e me m b er 

a g e n c i e s. T h e C o m mis si o n a l s o r e c o g n i z e d t h e n ee d f o r a n i n d e p e n ­

d e nt r e vie w b o a r d t o d ete r m i n e i f t h e w ate r c o n s t r u c ti o n a g e n c i e s' 

p r o j e c t p r o p o s a l s a r e s o u n dl y c o n c ei v e d a n d r e p r e s e n t b e n e f i c i a l 

i n v e st m e n t s o f F e d e r al t a x r e c e i p t s .

I t s h o ul d b e v e r y a p p a r e n t t h a t a ne w o r g a n i z a ti o n a l 

a rra n g e m e nt f o r n a ti o n a l c o o r d i n a ti o n a n d r e vie w o f w ate r r e s o u r c e 

p r o g ra m s i s n e e d e d. I n p a r ti a l r e s p o n s e t o t h i s n e e d, t h e P r e s i ­

d e nt h a s r e c e n tl y re c o m m e n de d t h e e st a b li s h m e n t o f t h e D e p a rt m e nt 

o f E n er g y a n d N at u r al R e s o u rc e s [ S ee H. R. 9 0 9 0 ] t o str e a m li n e 

o r g a n i z a ti o n s t o u n if y w ate r r e s o u r c e p r o g ra m s, t r a n s f e r ri n g s t a t u ­

t o r y f u n c ti o n s o f t h e W at er R e s o u r c e s C o u n cil t o t h e ne w D e p a rt m e nt 

o f E n er g y a n d N at u r al R e s o u r c e s. T h e A d m i n i str ati o n b e li e v e s t h a t 

a D e p art m e nt o f E n er g y a n d N at u r al R e s o u r c e s i s t h e b e s t wa y t o 

a c hie v e b e tt e r c o o r d i n a ti o n a n d r e vie w .

I t i s p a r ti c u l a r l y i m p o rt a n t t h a t t h e D e p art m e nt o f 

T r a n s p o rt a ti o n [ p r e f e r a b l y t h r o u g h t h e D. O . T . A s st. S e c r e t a r y f o r 

P o li c y , P l a n s a n d I n t e r n a ti o n a l A f f a i r s ] p a r ti c i p a t e i n t h e p l a n ­

ni n g p r o c e s s f o r d ete r m i n i n g t h e n e e d a n d ec o n o m ic f e a s i b i l i t y o f 

i n l a n d n a v i g a ti o n p r o j e c t s a n d f o r c o n si d e ri n g t r a n s p o rt a ti o n 

a lt e r n a ti v e s t o t h e s e p r o j e c t s. T his D. O . T . p a r ti c i p a ti o n s h o ul d 

e xte n d t o a l l l e v e l s o f w ate r r e s o u r c e p l a n n i n g i n cl u d i n g t h e c o mp r e h e n si v e fr a m e w or k pla n ni n g a n d s u r v e y r e p o rt p l a n n i n g.
1 2 1 5

- 2 1 -

T h e p l a n n i n g p r o c e d u r e s u s e d i n f o r m u l a t i n g t h e f r a m e ­

w o r k p l a n f o r c o m m e r c i a l n a v i g a t i o n d e v e l o p m e n t i n t h e U p p e r 

M i s s i s s i p p i R i v e r C o m p r e h e n s i v e B a s i n S t u d y a n d a l s o i n t h e O h i o 

R i v e r 6. M i s s o u r i R i v e r B a s i n s t u d i e s a r e v e r y d e f i c i e n t . T h e 

n a v i g a t i o n p o r t i o n o f t h e s e s t u d i e s n e e d s t o b e r e - f o r m u l a t e d w i t h 

a s i g n i f i c a n t i n p u t f r o m t h e D e p a r t m e n t o f T r a n s p o r t a t i o n . I n t h e 

M i s s o u r i R i v e r B a s i n s t u d y , s e r i o u s c o n s i d e r a t i o n s h o u l d b e g i v e n 

t o a b a n d o n i n g t h e M i s s o u r i R i v e r n a v i g a t i o n p r o j e c t .
1 2 1 6

2 2 -

A p p e n di x : P r o c e d u re s f o r E v al u ati n g T r a n s p o rt a ti o n B e n e fit s f o r

N a vi g ati o n P r o j e c t s

F i g u r e I h a s b e e n p r e p a r e d t o i l l u s t r a t e a n d e x p l a i n t h e 

v a ri o u s c o st a n d r a t e te r m s u se d i n t h e ec o n o m ic e v a l u a ti o n o f i n l a n d 

n a v i g a ti o n p r o j e c t s. T h e v e r ti c a l s c a l e r e p r e s e n t s t h e m a g nit u d e o f 

t h e c o st a n d r a t e v al u e s f o r a n o ri g i n t o d e s ti n a ti o n m o v e m e nt o f a 

c o m m o d it y b y t h e a lt e r n a ti v e m o d e ( h e r e i n as s u m e d t o b e r a i l ) a n d f o r 

t h e sa m e o ri g i n t o d e s ti n a ti o n m o v e m e nt o f t h i s c o m m o d it y b y b a r g e o n 

t h e p r o p o s e d ne w o r i m pr o ve d w ate r w a y. T he d i f f e r e n c e b et w e e n t h e 

r a t e c h a r g e d f o r t h i s c o m m o d it y m o v e m e nt a n d t h e v a ri a b l e c o s t t o t h e 

t r a n s p o rt a ti o n m o de i s al w a y s c o n si d e r a b l y g r e a t e r f o r t h e r a i l m o d e 

t h a n f o r t h e b a r g e m o de a n d i s s o i n d i c a t e d i n F i g u r e I. *

A lt e r n a ti v e W at er w a y

M o de T r a f f i c T r a f fi c

E x pla n ati o n o f C o st a n d R ate Te r m s

C g = V a ri a b l e c o s t o f t h e r e s o u r c e s n e c ­

e s s a r y t o p r o v i d e t h e t r a n s p o rt a ­

ti o n s e r v i c e v i a t h e a lt e r n a ti v e 

m o de.

 ” V a ri a b l e c o s t o f t h e r e s o u r c e s, t o 

t h e b a r g e li n e , n e c e s s a r y t o p r o ­

vi d e t h e p r o p o s e d w ate r w a y t r a n s ­

p o rt a ti o n s e r v i c e .

 = E x i sti n g p u b li s h e d r a t e p l u s h a n d li n g c h a r g e s f o r m o v i n g t r a f f i c v i a 

t h e a lt e r n a ti v e m o d e.

Ry, « C o n str u cte d b a r g e r a t e ( si n c e t h e r e 

a r e n o p u b li s h e d r a t e s f o r n e a rl y 

a l l o f t h e i n l a n d w ate r w a y t r a f f i c ) 

p l u s e sti m at e d h a n d li n g c h a r g e s

F i q u r e I - C o st a n d R ate Te r m s 0 i n t h e E c o n o mic E v al u ati o n o f 

I nla n d N a vi g ati o n P r o j e c t s.

* T he r a i l v a ri a b l e c o st i s i n t e n ti o n a ll y s h o w n a s b ei n g s o m e w hat h i g h e r 

t h a n t h e b a r g e v a ri a b l e c o s t 3 0 t h a t C - C w, w hic h i s r e f e r r e d t o a s t h e 

Z te r m , w ill b e p o s iti v e . D e p e n di n g o n t h e c o m m o d it y a n d t h e p a r ti c u ­

l a r m o v e m e nt, t h e r a i l v a ri a b l e c o st ma y b e h i g h e r, e q u al t o , o r l e s s 

t h a n t h e v a ri a b l e c o st o f t h e b a r g e m o v e m e nt. T h e t r a n s p o rt a ti o n 

ec o n o m ic st u d y f o r t h e P itt s b u r g h D i s t r i c t E n g i n e e r ’ s ec o n o m ic r e - 

e v a l u a ti o n r e p o rt o f J a n u a r y, 1 9 6 5 o n t h e p r o p o s e d 1 2 0 m il e, o n e - b illi o n 

d o ll a r L a k e E rie - O hi o R i v e r C a n al i n d i c a t e d C w o u l d b e l e s s t h a n C

f o r a p p r o xi m ate l y 9 7 % o f t h e i n i t i a l p r o s p e c ti v e w ate r w a y t r a f f i c .
1 2 1 7

- 2 3 -

A . P r o c e d u r e F o r E v a l u a t i n g t h e P r i m a r y N a v i g a t i o n B e n e f i t s t o t h e

D i r e c t B e n e f i c i a r i e s ( W a t e r w a y S h i p p e r s ) :

A s d e f i n e d i n s e c t i o n 7 ( a ) o f t h e D . O . T . A c t , t h e p r i m a r y 

d i r e c t n a v i g a t i o n b e n e f i t s t o t h e w a t e r w a y s h i p p e r s a r e d e t e r m i n e d b y 

t h e d i f f e r e n c e b e t w e e n t h e t o t a l f r e i g h t r a t e s ( a n d h a n d l i n g c h a r g e d 

p r e v a i l i n g a t t h e t i m e o f t h e s t u d y f o r t h e m o v e m e n t b y t h e a l t e r n a t i v e 

m o d e a n d t h e r a t e s a n d h a n d l i n g c h a r g e s f o r t h e m o v e m e n t o f t h i s t r a f f i c 

o n t h e p r o p o s e d w a t e r w a y . F r o m F i g u r e I t h i s w o u l d b e R a - R w w h i c h i s 

r e p r e s e n t e d b y t h e d i s t a n c e W . T h u s : R - R w ^ p o t e n t i a l u n i t r a t e 

s a v i n g s t o t h e s h i p p e r s w h i c h c a n b e e x p r e s s e d o n a d o l l a r s p e r t o n 

b a s i s . T h e e s t i m a t e d a m o u n t o f t r a f f i c t h a t w o u l d u s e t h e w a t e r w a y i s 

a l s o b a s e d o n t h i s d i f f e r e n c e i n f r e i g h t r a t e s a n d o n t h e e c o n o m i c g r o w t h 

o f t h e a r e a . I f 

- R

w r e p r e s e n t s t h e a n n u a l e s t i m a t e d t r a f f i c i n t o n s , 

t h e n t h e e s t i m a t e d t o t a l a n n u a l r a t e s a v i n g s t o t h e w a t e r w a y s h i p p e r s i s 

e q u a l t o t h e s u m m a t i o n o f t h e ( R ^ - R ) ( R - R ) t e r m s w h i c h f o r t h e e c o n o m i c 

r e - e v a l u a t i o n o f t h e p r o p o s e d L a k e E r i e O h i o R i v e r C a n a l w a s f o u n d t o b e 

$ 1 3 8 , 1 0 0 , 0 0 0 .

T h e e s t i m a t e d a v e r a g e a n n u a l t o n n a g e b a s e d oxi s a v i n g s i n p r e ­

v a i l i n g f r e i g h t r a t e s , - R „ , w a s f o u n d t o b e 9 4 , 3 3 0 , 0 0 0 t o n s . T h e 

w e i g h t e d a v e r a g e r a t e s a v i n g s , ^ -Ry,, i s t h u s e q u a l t o $ 1 3 8 , 1 0 0 , 0 0 0 _

A c t u a l v a l u e s o f R a n d R c a n b e o b t a i n e d f r o m t h e f o l l o w i n g 

e x a m p l e ( p r e s e n t e d i n t h e P i t t s b u r g D i s t r i c t E n g i n e e r s ' J a n . 1 9 6 5 

r e p o r t ) f o r a s p e c i f i c e x i s t i n g r a i l m o v e m e n t o f i r o n o r e f r o m t h e 

s h o r e o f L a k e E r i e t o t h e S t e u b e n v i l l e - W e i r t o n a r e a w h i c h w o u l d m o v e b y 

b a r g e i f t h e $ 1 . 2 b i l l i o n c a n a l w e r e c o n s t r u c t e d :

P r e v a l i n g ( i . e . C u r r e n t ) R a t e s *

R a i l r a t e p e r t o n - $ 2 . 1 2 + h a n d l i n g c h a r g e o f $ 0 . 5 8 = $ 2 . 7 0 = R

B a r g e r a t e p e r t o n = $ 0 . 6 3 + h a n d l i n g c h a r g e o f 0 . 6 2 = $ 1 . 2 5 = R

U n i t t r a n s p o r t a t i o n s a v i n g s p e r t o n = $ 2 . 7 0 - $ 1 . 2 5 = $ 1 . 4 5 = R - R

♦ B a s e d o n c u r r e n t r a i l r a t e s a n d e s t i m a t e d b a r g e r a t e s .

B . P r o c e d u r e s f o r E v a l u a t i n g T r a n s p o r t a t i o n B e n e f i t s t o t h e N a t i o n :

T h e r e a r e t w o p r o c e d u r e s w h i c h c a n b e u s e d t o e v a l u a t e t h e 

t r a n s p o r t a t i o n b e n e f i t s t o t h e n a t i o n d u e t o s a v i n g s i n t h e v a r i a b l e 

c o s t o f t h e n a ti or is r e s o u r c e s ( l a b o r, m a t e r i a l s a n d c a p i t a l ) r e q u i r e d 

t o p r o v i d e t r a n s p o r t a t i o n s e r v i c e . T h e y c a n b e r e f e r r e d t o a s t h e 

" d i r e c t " p r o c e d u r e , w h i c h d e t e r m i n e s t h e t o t a l o r g r o s s b e n e f i t s t o t h e 

n a t i o n a n d t h e " i n d i r e c t ” p r o c e d u r e w h i c h d e t e r m i n e s t h e n e t b e n e f i t s 

t o t h e n a t i o n . V a r i a b l e c o s t r a t h e r t h a n t o t a l c o s t c o m p a r i s o n s a r e 

u s e d s i n c e v a r i a b l e c o s t c o m p a r i s o n s e s t a b l i s h t h e m o s t e f f i c i e n t 

a l l o c a t i o n o f r e s o u r c e s i n t h e p r o d u c t i o n o f g o o d s a n d s e r v i c e s .
1 2 1 8

2 4 -

1. D ir e c t P r o c e d u re f o r D ete r m i n i n g T o t a l B e n e fit s t o t h e N ati o n

A d i r e c t c o m p a ri s o n o f t h e d i f f e r e n c e i n t h e v a ri a b l e c o s t o f 

t h e r e s o u r c e s (t o t h e c a r r i e r s ) r e q u ir e d t o f u r n i s h e q u i v a l e n t t r a n s p o r ­

t a ti o n s e r v i c e c o n s tit u t e s t h e " d i r e c t " p r o c e d u r e f o r d et e r m i ni n g t h e 

t o t a l n a v i g a ti o n b e n e f it s t o t h e n a ti o n . I f C i s t h e e sti m a t e d c o st 

o f t h e r e s o u r c e s t o m o v e p o t e n ti a l b a r g e t r a f f i c a s t h e r e s u lt o f a ne w 

o r i m pr o v e d se g m e n t o f t h e i n l a n d w at er w a y s y ste m a n d C i s t h e c u r r e n t 

c o st o f t h e r e s o u r c e s t o m o v e t h e sa m e t r a f f i c b et w e e n t h e sa m e o ri g i n 

a n d d e s ti n a ti o n v i a t h e a lt e r n a ti v e m o de, t h e n t h e u n it s a v i n g s t o t h e 

n a ti o n i n t h e c o st o f t h e r e s o u r c e s n e c e s s a r y t o m o v e t h i s t r a f f i c i s 

C a- C , w hic h i n F i g u r e I i s t h e d i st a n c e Z. T h e u n it s a v i n g s i n d o ll a r s 

p e r t o n ti m e s t h e a m o u nt o f p o t e n ti a l t r a f f i c i n t o n s f o r w hic h t h i s 

u n it s a v i n g s w o u l d p r e v a il, s a y T g i v e s t h e t o t a l s a v i n g s t o t h e

n a ti o n f o r t h i s t r a f f i c . T h e t o t a ? s u m m ati o n o f t h e ( T _ ) ( C - C )

ci w

te r m s f o r t h e v a ri o u s p o t e n ti a l b a r g e c o m m o dit y m o v e m e nts f o r t h e 

La ke E rie - O hi o R i v e r c a n al p r o j e c t wa s $ 1 0, 1 0 0, 0 0 0. S i n c e t h e e sti m at e d 

a v e r a g e a n n u al t o n n a g e f o r w hic h t h e r e w o ul d b e a s a v i n g s i n t h e c o s t o f 

t h e r e s o u r c e s r e q u ir e d t o f u r n i s h t h e t r a n s p o rt a ti o n s e r v i c e wa s 

5, 8 0 9, 0 0 0 t o n s, t h e a v e r a g e s a v i n g s i n t h e c o s t o f t h e r e s o u r c e s i s 

e q u al t o $ 1 0, 1 0 0, 0 0 0 _ „ , _ _ _ . . .

5 ^ 0 0 9' 0 0 0

$ 1 > 7 4

 P ®

r t o n

[ W hile t h e t o t a l a v e r a g e a n n u al t r a f f i c w hic h w o ul d be 

d i v e rt e d t o t h e p r o p o s e d La ke E rie - O hi o R i v e r c a n al 

b a s e d o n r a t e s a v i n g s t o t h e s h i p p e r s i s e sti m a t e d t o 

b e 9 4, 3 0 0, 0 0 0 t o n s, f o r o nl y 5, 8 0 9, 0 0 0 t o n s o r s li g h tl y 

m o re t h a n 6 % o f t h i s t r a f f i c w o u l d t h e r e b e a n y s a vi n g s 

i n t h e c o s t o f t h e r e s o u r c e s r e q u ir e d t o f u r n i s h t h e 

t r a n s p o rt a ti o n s e r v i c e . Or c o n v e r s e l y , f o r n e a rl y 9 4 % 

o f t h e p r o s p e c ti v e c a n al t r a f f i c , t h e c o s t o f t h e r e ­

s o u r c e s r e q u ir e d t o f u r n i s h t h e t r a n s p o rt a ti o n s e r v i c e 

w o ul d b e g r e a t e r b y b a r g e t h a n b y t h e e x i s ti n g a lt e r n a ­

ti v e m o de ( r a i l ) . T h u s f o r 9 4 % o f t h e p o t e n ti a l b a r g e 

t r a f f i c t h e r e w o u l d b e s a vi n g s t o t h e s h i p p e r s b u t l o s s e s 

t o t h e n a ti o n . T h es e l o s s e s m u st b e c o n si d e r e d i n o r d e r 

t o d ete r m i n e t h e n e t b e n e f it s t o t h e n a ti o n .)

2. I n d i r e c t P r o c e d u re f o r D ete r m i n i n g N et B e n e fit s t o t h e N ati o n

T h e n e t t r a n s p o rt a ti o n b e n e fit s t o t h e N ati o n c a n b e d e t e r ­

mi n e d i n d i r e c tl y fr o m a s u m m ati o n o f t h e b e n e f i c i a l a n d a d v e r s e ec o n o m ic 

e f f e c t s t o a l l o f t h e d i r e c tl y a f f e c t e d i n d i v i d u a l s o r g r o u p s. T h e 

" i n d i r e c t " a p p r o a c h a u t o m a ti c a ll y u n f ol d s i n t h e p r o c e s s o f i m ple m e nti n g 

t h e f o ll o w i n g c o m p re h e n si v e p u b li c vie w p oi n t r e q u ir e m e n t f o r tt e e v al u ­

a ti o n o f p r o j e c t e f f e c t s a s s p e c i fi e d i n t h e Ma y 1 9 5 0 & 1 9 5 8 e v a l u a ti o n 

st a n d a r d s b y t h e F e d e r al I nte r- A g e n c y C o m mitte e o n W at er R e s o u r c e s; 

S e n ate D o c u m e nt N o. 9 7, 8 7t h C o n g r e s s; a n d t h e c o m p re h e n si v e C or p s st u d y 

o f i t s c i v i l w or k s a c t i v i t i e s p ri n t e d a s P a rt 1, V ol, 3 o f t h e 1 9 5 1 

A n n u al R e p o rt o f t h e C hie f o f E n gi n e e r s:
1 2 1 9

2 5 -

" T he c o m p re h e n si v e p u b li c v ie w p oi n t i n cl u d e s c o n ­

s i d e r a ti o n o f a l l e f f e c t s , b e n e f i c i a l o r a d v e r s e, s h o r t - 

r a n g e o r l o n g - r a n g e t h a t c a n b e e x p e ct e d t o b e f e l t b y 

a l l p e r s o n s o r g r o u p s i n t h e e n ti r e r a n g e o f i n fl u e n c e 

o f t h e p r o j e c t. "

T h e d i r e c tl y a f f e c t e d g r o u p s r e g a r d i n g n a v i g a ti o n p r o j e c t s 

a r e t h e p r o s p e c ti v e w ate r w a y s h i p p e r s, w hic h, a s i n d i c a t e d i n s e c ti o n 

A, w o u l d o b t a i n a s a v i n g s i n f r e i g h t r a t e s e q u al t o Ra- R w; t h e p r o s p e c ­

ti v e w ate r w a y c a r r i e r s w hic h w o u l d h a v e a n i n c r e a s e i n n et i n c o m e 

a m o u nti n g t o t h e d i f f e r e n c e b et w e e n t h e i r r a t e s a n d v a ri a b l e c o s t s 

o r R w- C w; a n d t h e e x i s ti n g a lt e r n a ti v e m o de w hic h w o u l d e x p e ri e n c e a 

r e d u c ti o n i n n e t i n c o m e e q u al t o t h e d i f f e r e n c e b et w e e n i t s r a t e s a n d 

v a ri a b l e c o s t s o r R a- C a.

T h e s u m m ati o n o f t h e b e n e f i c i a l o r a d v e r s e e f f e c t s t o a l l o f 

t h e d i r e c tl y a f f e c t e d g r o u p s i s a s f o ll o w s:

R ate

S a vi n g s t o ' + 

W at er w a y

S hi p p e r s

I n c r e a s e i n 

N et I n c o m e 

t o W at er w a y 

C a r ri e r s

P o t e n ti a l L o ss 

i n N et I n c o m e «

t o E x i sti n g 

C a r ri e r s

N et e f f e c t 

t o A ll o f 

t h e d i r e c tl y 

a f f e c t e d g r o u p s

Fr o m F i g u r e I :

( Ra- R w) + ( R w-c w) ( R a- C a) ( Ca- C w )

A ls o fr o m F i g u r e I :

W +

T h e n e t e f f e c t t o t h e d i r e c tl y a f f e c t e d g r o u p s r e d u c e s t o 

( Ca- C w ) o r 2, w hic h, a s s h o w n i n t h e d i r e c t a p p r o a c h i n s e c ti o n B -l, 

i s e x a c tl y e q u al t o t h e t o t a l o r g r o s s t r a n s p o rt a ti o n b e n e f it s t o t h e 

N ati o n. T h e s i g n i f i c a n t d i f f e r e n c e b et w e e n t h e i n d i r e c t a n d d i r e c t 

a p p r o a c h i s t h a t t h e ec o n o m ic e v a l u a ti o n b y t h e i n d i r e c t p r o c e d u r e 

r e f l e c t s t h e t o t a l p r o j e c t e d b a r g e t r a f f i c b a s e d o n r a t e s a v i n g s ( Ra- R w) 

w h e re a s t h e d i r e c t a p p r o a c h m e r el y r e f l e c t s t h a t p o rti o n ( i. e . Ca - C v) 

o f t h e t o t a l p r o j e c t e d b a r g e t r a f f i c f o r w hic h t h e r e w o ul d b e a s a v i n g s 

i n t h e c o s t o f t h e r e s o u r c e s r e q u i r e d t o p r o vi d e t h e s e r v i c e . T h e 

s u m m ati o n o f t h e ( T p - R w)( W + X - Y) te r m s i n c l u d e s t h o s e t r a f f i c m o v e m e nts 

w h er e t h e Z te r m ( i. e . W + X- Y) i s n e g a ti v e. I n t h e d i r e c t a p p r o a c h, t h e 

s u m m ati o n o f t h e ( * c a - c w )( Z ) te r m s, a l l o f t h e Z te r m s a r e, o f c o u r s e, 

p o s iti v e .
1 2 2 0

2 6 -

W hil e t h e " d i r e c t " r a t h e r t h a n " i n d i r e c t " p r o c e d u r e f o r 

d et e r m i n i n g t h e t r a n s p o rt a ti o n b e n e f it s t o t h e n a ti o n wa s u s e d i n t h e 

t r a n s p o r t a ti o n ec o n o m ic st u d y f o r t h e P itt s b u r g h D i s t r i c t E n g i n e e r s' 

ec o n o m ic r e - e v a l u a ti o n o f t h e L a k e E rie - O hi o R i v e r C a n al p r o j e c t, 

s u f f i c i e n t v a ri a b l e c o s t d at a w as s u p p li e d t o ma k e a r o u g h e sti m a t e o f 

t h e n et t r a n s p o rt a ti o n b e n e fit s t o t h e N ati o n. F o r e x a m ple, t h e 

f o ll o w i n g v a ri a b l e c o s t v al u e s w er e p r e s e n t e d f o r t h e m o v e m e nt o f ir o n 

o r e fr o m t h e s h o r e o f La ke E ri e t o t h e S t e u b e n v ill e - W eirt o n s t e e l 

p r o d u ci n g a r e a :

C O S T S

R a il c o s t p e r n e t t o n = $ 0. 3 7 + h a n d li n g c h a r g e o f $ 0. 5 8 - $ 0. 9 5 = Ca 

B ar g e c o s t p e r n et t o n = $ 0. 7 3 + h a n d li n g c h a r g e o f $ 0. 6 2 = $ 1. 2 5 = C w

P o t e n ti a l c o s t s a v i n g, b a r g e v s. r a i l = Ca- C w = - $. 3 0

W hil e t h e p o t e n ti a l r a t e s a v i n g s f o r a r a i l t o b a r g e d i v e r si o n 

o f t h i s t r a f f i c i s Ra- R w ■ $ 2. 7 0 - $ 1. 2 5 = $ 1. 4 5 p e r t o n, t h e p o t e n ti a l 

l o s s o f n e t i n c o m e t o t h e r a i l m o d e i s Ra - R c = $ 2. 7 0 - $ 0. 3 7 = $ 2. 3 3 p e r 

t o n. T h u s t h e r e w o ul d be a n e sti m a t e d n et l o s s t o t h e N ati o n o f $ 0. 3 0 

p e r t o n i f t h i s c o al m o v e m e nt w er e d i v e rt e d fr o m r a i l t o b a r g e. I f , a s 

a f i r s t a p p r o xi m ati o n, i t w er e as s u m e d t h a t t h e r e w o u l d b e a $ 0. 3 0 p e r 

t o n l o s s i n t h e c o s t o f t h e N a ti o n's r e s o u r c e s f o r a l l o f t h e p r o s p e c ­

ti v e t r a f f i c w h er e t h e v a ri a b l e c o s t i s l e s s b y r a i l t h a n b y b a r g e, 

t h e n t h e a p p r o xi m ate a n n u al s a v i n g s i n n et t r a n s p o rt a ti o n c o s t t o t h e 

N ati o n w o ul d b e:

( 5, 8 0 9, 0 0 0 t o n s ) ( $ 1 . 7 4 /t o n ) - ( 9 4, 3 0 0, 0 0 0 - 4, 8 0 9, 0 0 0 t o n s ) ( $ 0 . 3 0/t o n ) =

$ 1 0, 1 0 0, 0 0 0 - $ 2 6, 5 4 7, 3 0 0 = - $ 1 6, 4 4 7, 0 0 0

T his a p p r o xi m ati o n t e n d s t o s u g g e st t h e p r o j e c t w o ul d p r o - 

’ i d e n o n e t b e n e fit s t o t h e N ati o n; i n f a c t, i t i s m or e li k e l y t h e r e 

w o u l d b e a n et ec o n o m ic l o s s t o t h e N ati o n e v e n e x cl u d i n g t h e c o s t o f 

c o n s t r u c ti n g a n d m ai n t ai n i n g t h e p r o j e c t.
1 2 2!

T e s t i m o n y o f 

D o n a l d S . B e a t t i e

D i r e c t o r , G o v e r n m e n t a l A f f a i r s , R L E A 

b e f o r e t h e S e n a t e P u b l i c W o r k s C o m m i t t e e , 

S u b c o m m i t t e e o n W a t e r R e s o u r c e s , O v e r s i g h t H e a r i n g s 

o n t h e I n l a n d N a v i g a t i o n P r o g r a m o f t h e 

U . S . A r m y C o r p s o f E n g i n e e r s ,

W a s h i n g t o n , D . C .

O ct o b e r 8, 1 9 7 5

M y n a m e i s D o n a l d S . B e a t t i e . I a m t h e D i r e c t o r o f 

G o v e r n m e n t a l A f f a i r s o f t h e R a i l w a y L a b o r E x e c u t i v e s ’ A s s o c i a t i o n .

I a m a p p e a r i n g h e r e t o d a y o n b e h a l f o f t h e R a i l w a y L a b o r 

E x e c u t i v e s ' A s s o c i a t i o n t o o f f e r t e s t i m o n y o n t h e I n l a n d N a v i g a t i o n 

p r o g r a m o f t h e U . S . A r m y C o r p s o f E n g i n e e r s , a n d , i n p a r t i c u l a r , 

L o c k s a n d D a m 2 6 a t A l t o n , I l l i n o i s .

T h e R a i l w a y L a b o r E x e c u t i v e s ’ A s s o c i a t i o n , a s y o u k n o w , c o n s i s t s

o f 2 0 o f t h e 2 1 o r g a n i z a t i o n s r e p r e s e n t i n g t h e b u l k o f r a i l r o a d

e m p l o y e e s i n t h e U n i t e d S t a t e s . T h e a f f i l i a t e d o r g a n i z a t i o n s o f t h e

R a i l w a y L a b o r E x e c u t i v e s ’ A s s o c i a t i o n a r e t h e f o l l o w i n g s

A m e r i c a n R a i l w a y S u p e r v i s o r s ' A s s n .

A m e r i c a n T r a i n D i s p a t c h e r ' s A s s n .

B r o t h e r h o o d o f L o c o m o t i v e E n g i n e e r s 

B r o t h e r h o o d o f M a i n t e n a n c e o f W a y E m p l o y e s 

B r o t h e r h o o d o f R a i l r o a d S i g n a l m e n 

B r o t h e r h o o d o f R a i l w a y C a r m e n o f t h e U n i t e d 

S t a t e s a n d C a n a d a

B r o t h e r h o o d o f S l e e p i n g C a r P o r t e r s 

H o t e l & R e s t a u r a n t E m p l o y e e s a n d B a r t e n d e r s ' 

I n t e r n a t i o n a l U n i o n

I n t e r n a t i o n a l A s s o c i a t i o n o f M a c h i n i s t s a n d 

A e r o s p a c e W o r k e r s

I n t e r n a t i o n a l B r o t h e r h o o d o f B o i l e r m a k e r s , I r o n S h i p 

B u i l d e r s , B l a c k s m i t h s , F o r g e r s a n d H e l p e r s

I n t e r n a t i o n a l B r o t h e r h o o d o f E l e c t r i c a l W o r k e r s 

I n t e r n a t i o n a l B r o t h e r h o o d o f F i r e m e n & O i l e r s
1 2 2 2

- 2 -

I n t e r n a t i o n a l O r g a n i s a t i o n M a s t e r s , M a t e s (

P i l o t a o f A m e r i c a

N a t i o n a l M a r i n a E n g i n e e r ■ ' B e n e f i c i a l A a a n .

R a i l r o a d Y a r d m a a t e r a o f A m e r i c a

R a i l w a y E m p l o y e e s ' D e p t . , A F L - C I O

S e a f a r e r s ' I n t e r n a t i o n a l U n i o n o f N o r t h

A m e r i c a

S h e e t M e t a l W o r k e r s ' I n t e r n a t i o n a l A a a n .

T r a n a p o r t W o r k e r a U n i o n o f A m e r i c a

U n i t e d T r a n a p o r t a t i o n U n i o n

A l l o f u a a r e a w a r e t h a t t h e r a i l r o a d ' a a h a r e o f t h e

f r e i g h t m a r k e t h a a b e e n d e c l i n i n g c o n t i n u o u s l y i n t h e p o a t - W o r l d

W a r I I e r a . O n e o f t h e a i g n i f i c a n t c a u a e a o f t h i a d e c l i n e h a a b e e n

t h e e v e r - i n c r e a s i n g e x p e n d i t u r e s b y F e d e r a l , s t a t e a n d l o c a l

g o v e r n m e n t s i n f a v o r o f c o m p e t i n g m o d e a o f t r a n a p o r t a t i o n . I n t h e

l a s t f i f t y y e a r a t h e r a i l r o a d ' s a h a r e o f F e d e r a l f u n d a h a a b e e n i n

s h o c k i n g d i s p r o p o r t i o n t o t h e a h a r e o f f u n d a r e c e i v e d b y t h e o t h e r

m o d e a o f t r a n a p o r t a t i o n .

T h e f i n a n c i a l a p e o i f i c a o f t h i s d i s p a r i t y w e r e p o i n t e d o u t i n

t h e M a r c h 1 0 h e a r i n g s b e f o r e t h e S e n a t e C o m m i t t e e o n t h e B u d g e t ,

w i t n e s s P l k a r a k y s u b m i t t e d a b r e a k d o w n o f f e d e r a l i n v e s t m e n t i n

t h e v a r i o u s t r a n a p o r t a t i o n m o d e a d u r i n g t h e S O - y e a r p e r i o d f r o m

1 9 2 1 t o 1 9 7 1 . O f t h e a m o u n t s e x p e n d e d o n a l l m o d e s , t h e r a i l r o a d s

r e c e i v e d l e a s t h a n o n e - s i x t a e n t h o f o n e p e r o e n t w i t h t h e b a l a n o e

o f m o r e t h a n n i n e t y - n i n e a n d f i f t e e n a i x t e e n t h a g o i n g t o w a t e r

c a r r i e r s , m o t o r o a r r i e r s a n d a i r o a r r i e r a . F i g u r e s c o m p i l e d f r o m

g o v e r n m e n t a o u r o e a b y t h e A a a o o i a t i o n o f A m e r i o a n R a i l r o a d s a h o w

t h a t t o t a l f e d e r a l e x p e n d i t u r e s o n w a t e r w a y s , t o d a t e , e x c l u d i n g

m u l t i - p u r p o s e p r o j e o t a o f t h e C o r p s o f E n g i n e e r s , a m o u n t t o a p p r o x ­

i m a t e l y $ 1 1 b i l l i o n . T h e c o n t r o v e r s i a l C o r p s ' p r o j e c t p l a n n e d f o r
1 2 2 3

- 3 -

t h e u p p e r M i s s i s s i p p i a n d I l l i n o i s w a t e r w a y s c o u l d c o s t a n o t h e r

$ 1 1 b i l l i o n .

D u r i n g a J u n e c o n f e r e n c e i n t h e C a p i t o l B u i l d i n g , a s e n i o r

S e n a t o r a s k e d w h a t i s w r o n g w i t h t h e o p e r a t i o n s o f t h e N o r t h e a s t r a i l ­

r o a d s ; w h y i s i t t h a t t h e i r f i n a n c i a l c o n d i t i o n s h a v e b e e n i n s u c h

d i s a r r a y a s t o r e q u i r e t h e c o n t i n o u s a t t e n t i o n o f t h e C o n g r e s s . T h e

o b v i o u s a n s w e r t o t h i s q u e s t i o n i s t h a t t h e r e i s a n a b u n d a n c e o f

c o m p e t i t i o n i n t h e N o r t h e a s t a n d M i d w e s t r e g i o n s p r i m a r i l y b e c a u s e o f

p u b l i c i n v e s t m e n t i n o t h e r m o d e s o f t r a n s p o r t a t i o n . T h e s e m o d e s , u n ­

l i k e t h e r a i l r o a d s , a r e h e a v i l y s u b s i d i s e d . C o n s e q u e n t l y , t h e r a i l ­

r o a d s a r e f i n d i n g i t i n c r e a s i n g l y d i f f i c u l t t o s u r v i v e i n a m a r k e t

w i t h c o m p e t i t o r s w h o a r e a b l e t o r e l y o n t a x p a y e r s u b s i d i e s w h e t h e r

i t b e i n t h e N o r t h e a s t , M i d w e s t o r e l s e w h e r e i n t h e c o u n t r y . T h e s e

h e a r i n g s s e r v e t o s p o t l i g h t t h i s c o m p e t i t i v e f a c t o f l i f e w h i c h i s

t r o u b l i n g b o t h t h e r a i l r o a d s a n d t h e D e p a r t m e n t o f T r a n s p o r t a t i o n .

A t t h e r e q u e s t o f t h e S e n a t e C o m m e r c e C o m m i t t e e , t h e D O T u n d e r t o o k a

s t u d y o f t h e I n t e r m o d a l I m p a c t s o f t h e L o o k s a n d D a m R e p l a c e m e n t P r o ­

p o s a l . A m o n g t h e D e p a r t m e n t ' s m a j o r f i n d i n g s w e r e t h e s e t w o p o i n t s

r e l a t i n g t o m i d w e s t e r n r a i l r o a d s i

" T h e e x p a n s i o n o f i n l a n d n a v i g a t i o n o s p a o i t y t h a t w o u l d r e s u l t

f r o m t h e L o o k s a n d D a m 2 6 r e p l a c e m e n t p r o g r a m w o u l d s i g n i f i c a n t ­

l y a f f e c t t h e f i n a n c i a l s t a b i l i t y o f s o m e M i d w e s t r a i l r o a d s .

" W i t h m o d e s t a d d i t i o n a l i n v e s t m e n t s ( w h i o h o o u l d b e p r i v a t e

o r p u b l i o m o n e y ) , t h e r a i l r o a d s i n t h e M i d w e s t w o u l d h a v e

s u f f i o i e n t o s p a o i t y a v a i l a b l e t o c a r r y t h e " g r o w t h " t r a f f i c

t h a t a n e x p a n d e d L o o k e a n d D a m 2 6 o o u l d h a n d l e . S u c h i n ­

v e s t m e n t s s h o u l d b e v i e w e d a s p a r t o f t h e l a r g e r p r o g r a m o f

r a i l r o a d r e h a b i l i t a t i o n a n d r e v i t a l i s a t i o n f a v o r e d b y t h e

A d m i n i s t r a t i o n . "
1 2 2 4

- 3 -

t h e u p p e r M i s s i s s i p p i a n d I l l i n o i s w a t e r w a y s c o u l d c o s t a n o t h e r

$ 1 1 b i l l i o n .

D u r i n g a J u n e c o n f e r e n c e i n t h e C a p i t o l B u i l d i n g , a s e n i o r

S e n a t o r a s k e d w h a t i s w r o n g w i t h t h e o p e r a t i o n s o f t h e N o r t h e a s t r a i l ­

r o a d s ; w h y i s i t t h a t t h e i r f i n a n c i a l c o n d i t i o n s h a v e b e e n i n s u c h

d i s a r r a y a s t o r e q u i r e t h e c o n t i n o u s a t t e n t i o n o f t h e C o n g r e s s . T h e

o b v i o u s a n s w e r t o t h i s q u e s t i o n i s t h a t t h e r e i s a n a b u n d a n c e o f

c o m p e t i t i o n i n t h e N o r t h e a s t a n d M i d w e s t r e g i o n s p r i m a r i l y b e c a u s e o f

p u b l i c i n v e s t m e n t i n o t h e r m o d e s o f t r a n s p o r t a t i o n . T h e s e m o d e s , u n ­

l i k e t h e r a i l r o a d s , a r e h e a v i l y s u b s i d i z e d . C o n s e q u e n t l y , t h e r a i l ­

r o a d s a r e f i n d i n g i t i n c r e a s i n g l y d i f f i c u l t t o s u r v i v e i n a m a r k e t

w i t h c o m p e t i t o r s w h o a r e a b l e t o r e l y o n t a x p a y e r s u b s i d i e s w h e t h e r

i t b e i n t h e N o r t h e a s t , M i d w e s t o r e l s e w h e r e i n t h e c o u n t r y . T h e s e

h e a r i n g s s e r v e t o s p o t l i g h t t h i s c o m p e t i t i v e f a c t o f l i f e w h i c h i s

t r o u b l i n g b o t h t h e r a i l r o a d s a n d t h e D e p a r t m e n t o f T r a n s p o r t a t i o n .

A t t h e r e q u e s t o f t h e S e n a t e C o m m e r c e C o m m i t t e e , t h e D O T u n d e r t o o k a

s t u d y o f t h e I n t e r m o d a l I m p a c t s o f t h e L o c k s a n d D a m R e p l a c e m e n t P r o ­

p o s a l . A m o n g t h e D e p a r t m e n t e m a j o r f i n d i n g s w e r e t h e s e t w o p o i n t s

r e l a t i n g t o m i d w e s t e r n r a i l r o a d s i

" T h e e x p a n s i o n o f i n l a n d n a v i g a t i o n o a p a o i t y t h a t w o u l d r e s u l t

f r o m t h s L o o k s a n d D a m 3 6 r e p l a o e m s n t p r o g r a m w o u l d s i g n i f i c a n t ­

l y a f f e o t t h e f i n a n o l a l s t a b i l i t y o f s o m e M i d w e s t r a i l r o a d s .

" W i t h m o d e s t a d d i t i o n a l i n v e s t m e n t s ( w h l o h o o u l d b e p r i v a t e

o r p u b l i c m o n e y ) , t h e r a i l r o a d s i n t h e M i d w e s t w o u l d h a v e

s u f f i o i e n t o a p a o i t y a v a i l a b l e t o c a r r y t h e " g r o w t h " t r a f f i c

t h a t a n e x p a n d e d L o o k s a n d D a m 3 1 o o u l d h a n d l e , l u o h i n ­

v e s t m e n t s s h o u l d b e v i e w e d a s p a r t o f t h e l a r g e r o r o o r a m o f

r a i l r o a d r e h a b i l i t a t i o n a n d r e v i t a l i s a t i o n f a v o r e d b y t h e

A d m i n i s t r a t i o n . *
1 2 2 5

- 4 -

T h e s e h e a r i n g s s h o u l d s p o t l i g h t a n o t h e r f a c t - a f a c t a t w h i c h 

m y t e s t i m o n y t h i s m o r n i n g i s d i r e c t e d . I s p e a k n o w o f t h e c o n t i n u e d 

u n i l a t e r a l a c t i o n s b y t h e A r m y C o r p s o f E n g i n e e r s t o s h a p e t r a n s p o r t a ­

t i o n p o l i c y i n t h i s c o u n t r y i n c o m p l e t e i n d i f f e r e n c e t o t h e r e c o g n i z e d 

n e e d f o r t h e d e v e l o p m e n t o f a c a r e f u l l y t h o u g h t - o u t , c o o r d i n a t e d 

b a l a n c e d t r a n s p o r t a t i o n p o l i c y w i t h o u t c o n s u l t a t i o n w i t h t h e I n t e r ­

s t a t e C o m m e r c e C o m m i s s i o n , a n d w i t h l i t t l e o r n o c o m m u n i c a t i o n w i t h 

t h e D e p a r t m e n t o f T r a n s p o r t a t i o n . I n s h o r t , t h e A r m y C o r p s o f 

E n g i n e e r s h a s b e e n o p e r a t i n g w i t h i n t h e v a c u u m c r e a t e d b y t h i s 

c o u n t r y ' s l a c k o f a n a t i o n a l t r a n s p o r t a t i o n p o l i c y . A n d t h e C o r p s h a s 

b e e n d o i n g s o w i t h o u t a s e n s e o f d i r e c t i o n a n d w i t h o u t C o n g r e s s i o n a l 

a u t h o r i z a t i o n .

T h e a c t i v i t i e s o f t h e A r m y C o r p s o f E n g i n e e r s i n c o n n e c t i o n 

w i t h t h e p r o p o s e d A l t o n L o c k s a n d D a m p r o j e c t i n t h e u p p e r M i s s i s s i p p i 

a n d I l l i n o i s w a t e r w a y s a r e a a r e a n i l l u s t r a t i o n o f t h e C o r p s ' a t t e m p t 

a t p o l i c y m a k i n g . I n d e e d , t h e C o r p s ' a c t i v i t i e s i n t h i s r e g a r d h a v e 

b e e n c h a r a c t e r i z e d b y t h e S t . L o u i s P o s t - D i s p a t c h a s a n a t t e m p t e d 

" e n d - r u n a r o u n d C o n g r e s s " . L e t m e r e v i e w f o r y o u t h i s a t t e m p t e d 

" e n d - r u n " b y t h e C o r p s i n a g a m e p l a n i n v o l v i n g a p r o j e c t w h i c h , b y 

t h e C o r p s ' o w n a d m i s s i o n i n i t s E n v i r o n m e n t a l I m p a c t S t a t e m e n t , i s

t h e " l a r g e s t c o n s t r u c t i o n p r o j e c t i n t h e h i s t o r y o f t h e m i d - w e s t " .
1 2 2 6

- 5 -

B y s t a t u t e , t h e A r m y C o r p s o f E n g i n e e r a l a a u t h o r i z e d

t o p r e s e r v e a n d m a i n t a i n c a n a l s . U p o n t h e r e c o m m e n d a t i o n o f

t h e S e c r e t a r y o f t h e A r m y , t h e C o r p s i s a l s o a u t h o r i z e d t o

r e c o n s t r u c t a c a n a l w h e r e r e c o n e t r u c t i o n i s " a b s o l u t e l y

1 /

n e c e s s a r y . " B u t b e f o r e t h e C o r p s c a n b e g i n c o n e t r u c t i o n

o f a n y d a m o r o t h e r e t r u c t u r e i n a n a v i g a b l e r i v e r , t h e C o r p s

2/

m u s t o b t a i n t h e c o n s e n t o f C o n g r e s s .

H o w e v e r , t o s u c c e e d w i t h i t s " e n d - r u n " a r o u n d

C o n g r e s s , t h e C o r p s a r g u e d b e f o r e U . S . D i s t r i c t J u d g e

3 /

R i c h e y i n A t c h i s o n T o p e k a & S a n t a F e v . C a l l a w a y ,

t h a t t h e L o c k s a n d D a m 2 6 p r o j e c t d o e e n o t r e q u i r e C o n -

g r e s e i o n a l a p p r o v a l b e c a u s e i t i s a r e c o n s t r u c t i o n p r o j e c t

w h i c h i s " a b s o l u t e l y n e c e s s a r y . " A s J u d g e R i c h e y p o i n t e d

o u t i n e n j o i n i n g t h e C o r p s f r o m c o n t i n u i n g w i t h t h e p r o j e c t ,

t h e ' l o g i c a l c o n c l u s i o n o f t h e C o r p s ' a r g u m e n t d e m o n s t r a t e s

t h e l l l o g i c o f t h e C o r p e ’ p o s i t i o n . T h e c o u r t s t a t e d i " I f

t h e A r m y C o r p s o f E n g i n e e r s c a n r e p l a c e a n y e x i s t i n g

s t r u c t u r e m e r e l y b e c a u s e i t c o n s l d e r e i t t o b e o b s o l e t e ,

t h e n n o t o n l y w o u l d t h e r e b e n o d i s t i n c t i o n b e t w e e n [ o t h e r

i / 3 3 U . S . C . J 5.

2 / 3 3 U . S . C . § 4 0 1 .

3 / 3 8 2 F . S u p p . 6 1 0 ( D . C . D . C . 1 9 7 4 ) .
1 2 2 7

- 6

se cti o ns of t he C od * re q uiri n g C o n gre ssi o n al a u t h oriz ati o n 

t o re b u il d ], b ut al s o t he re w o ul d be r ai ee d t he s p ecte r of

a n u nl a w f ul dele g a ti o n of p o wer. "

T he c or ps we nt o n wit h t he atte m pte d "e n d-r u n,

h o we ver, a n d m ai nt ai ne d t h at e ve n i f C o n gre ssi o n al a p pr o v al

of t he pr oj ec t were ne ce ss ar y,t he C or ps h a d o bt ai n e d t h a t

a p pr o v al w he n C o n gress a p p r o p ri at e d f u n ds f or t he pr oj ec t.

T he c o urt w as q uic k t o p oi nt o ut t h at R ule X XI of t he Ma nu al

of t he H o use of Re pre se n t ati ve s dir e ctl y ref ut e d t h is c o nte nti o n of t he C or pe.

C o ns e q ue n tl y, t he "e n d-ru n " w as u n s u cc es sf ul.

B ut t h is atte m pt de m o nstr ates f or us t h at t he

C or ps h as p ai d li t t l e at te nti o n t o st at ut or y m a n d ate, t o

C o n gress or t o a n y of t he tr a n s p or t ati o n a g e n cie s i n p urs ulrt g it s a c ti v it ie s i n t he w ater tr a ns p o rt are a. T he

atte m p t al s o de m o nstr at es t h a t t he C or ps h as p ai d e ve n le ss

at te nti o n t o t he "ec o n o mic f all o ut " w hl o h pl a g ue s t he

r ailr o a ds as a re s u lt of t he C or ps a c ti v it ie s - t he e n d

re s u lt of w hic h is t o s u bsi dise w ater tr a ns p o rt a n d t he s u bsi d y i n t h is are a b e n efit s w ater c a rrie rs w hic h are o nl y

8 perc e nt re g ul a te d as o p p ose d t o t he r ailr o a ds w hic h are

1 0 0 perc e nt re g ul ate d.

4/ Se cti o ns 5 a n d 4 0 1, U. 8. C.

5 4 - 2 3 9 0 - 7 5 - 7 8
W h a t h a v e n a r r a t e d f o r t h i a c o m m i t t e e u l t i m a t e l y 

p o i n t e t o t h e n e e d f o r t h e d e v e l o p m e n t o f a n a t i o n a l t r a n s p o r t a t i o n 

p o l i c y . W i t h s u c h a n a t i o n a l p o l i c y w e w o u l d b e s p a r e d a t t e m p t s b y 

t h e A r m y C o r p s o f E n g i n e e r s a t m a k i n g " e n d - r u n s " a r o u n d C o n g r e s s . 

W i t h s u c h a n a t i o n a l p o l i c y w e w o u l d r e c o g n i z e t h e f o l l y o f s p e n d ­

i n g a s m u c h a s 1 1 b i l l i o n d o l l a r s t o c o m p l e t e t h e m a s s i v e p r o j e c t s 

t h a t t h e C o r p s i s p r o p o s i n g f o r t h e M i d w e s t r e g i o n a t a t i m e w h e n 

1 1 b i l l i o n d o l l a r s a r e d e s p e r a t e l y n e e d e d t o r e h a b i l i t a t e t h e r a i l ­

r o a d i n d u s t r y . A n d m o s t i m p o r t a n t l y , w i t h a n a t i o n a l t r a n s p o r t a t i o n 

p o l i c y w e w o u l d s e e t h a t o u r p r i o r i t i e s , a t t h i s t i m e , m u s t f a v o r 

t h e r a i l r o a d s .
1 2 2 9

Se nat or G r a v e l . T h a n k y o u.

[ W h ere u p o n at 3: 5 8 p. m. t he s u b c o m mitte e recess e d, s u bje ct t o 

t h e call of t he C hair.]

[ A d diti o nal state m e nts s u p plie d f or t he rec or d f oll o w:]

t a t e m e n t Pr e s e n t e d o n Be h a l f o f Sn y d e r Mo l a s s e s C ., Chi c a g o , II I. 

a n d He a d - O Co l li si o n Li n e, Chi c a g o , II I. b y Da vi d M. Wo o d

T his state m e nt is iss ue d o n b e half of t h e a b o ve t w o c o m pa nies, b y its secretar y, 

a n d traffic ma na ger, w h o has bee n wit h t hese c o m pa nies f or t he past t w e nt y-t hre e 

years a n d is ver y fa milar wit h t heir o perati o ns. A d diti o nall y, we ha ve als o bee n 

i n v ol ve d i n t he distri b uti o n of Blac kstra p M olasses t h at e ma nates at t he - G ulf 

p ort s i n L o uisia na a n d sells i n ta n k cars i nt o 1 6 state s t h at are far m stat es as f ar 

west as C ol ora d o a n d W y o mi n g; as far n ort h as t he Da k otas; O hi o o n t he east a n d 

i n t he S o ut h t o Ala ba ma, t he n all states i n b et wee n t h at area.

W he n t he Nati o nal Wate r C o m missi o n iss ue d its re p o rt i n N o ve m b er 1 97 2, we 

f o u n d t h at f or t he m ost part t he r ec o m me n dati o ns were o n s o u n d gr o u n d a n d are 

c orrect as we sa w t he m. As we re vie we d t h at d o c u me nt, we f o u n d t he m ost si g nifica nt c o ncl usi o ns were:

1. F or existi n g w ater w ays, t he ai m s h o ul d be t o rec o ver c osts, t hr o u g h a c o m bi nati o n of f uel ta xes a n d user c har ges. T he re p ort is n ot clear b ut we wis h t o p oi nt 

o ut t h at f uel t o da y is a li q ui d gall o n. It c o ul d i n t he f ut u re be “at o mic p o wer” 

t her e b y n o li q ui d gall o n w o ul d be a vaila ble t o a bs or b t his prese nt e x pe nse. If a 

user c har ge is a p plie d ( we feel it m ust be a p plie d), t ha n a p pl y it t o t he s hi p per of 

a n y c o m m o dit y i n a n a m o u nt necessar y t o re c o ver t he c ost of ser vice re n dere d b ut 

a p pl y it o n a “ per t o n” or “t o n- mile” basis. T he C or ps of E n gi neers A n n ual 

re p orts ite mize t hese fi g ures i n t hese a m o u nts a n d w o ul d be t he basis of eac h 

a p plic ati o n. A d diti o nall y, all “ P ort A ut h orities” s h o ul d pa y t heir o w n wa y as 

t he y, t o o, are t otall y i n v ol ve d i n t his be nefit w hic h t he y s h o ul d pa y.

2. F or ne w w ater w ays, we feel t h at t he f ull c ost s h o ul d be i m me diatel y a p plie d 

t o all users i n a si milar ma n n er as a b o ve me nti o ne d.

3. Users s h o ul d bear a p pr o priat e s hares of de vel o p me nt a n d o perati n g c osts 

o n S pecific Pr oje ct Ser vices, viz.: a. M u nici pal Wat er S u p pl y; b. Irri g ati o n Water 

S u p pl y; c. Na vi gati o n; d. Electri c P o wer; e. Water- Bas e d Recr eati o n; f. M u nici pal Waste C ollecti o n Tre at m e nt; g. Fl o o d C o ntr ol, Drai na ge a n d S h oreli ne 

Pr otecti o n.

We s u p p ort t he a b o ve c o ncl usi o ns of t he Nati o nal Wat er C o m missi o n.

T o f urt he r hel p y o u a n d pr o ve t h at we are i n a p ositi o n of m uc h nee d, we w o ul d 

li ke y o u t o k n o w t h at t he sales area a b o ve descri be d, is al m ost e ntirel y ser vice 

b y t he I nla n d Water wa y s yste m. S N Y D E R M O L A S S E S C O M P A N Y s ol d a n d 

deli vere d b y rail i n ta n k cars a t otal of 1 5 70 carl oa d s i n 1 9 53. I n 1 9 74 t his a m o u nt 

dr o p p e d t o a ne w l o w of 1 71 cars a n d i n t he i nt er ve ni n g years it was o n a c o n sta nt 

d o w n war d tre n d. We ha ve pr o ve d be y o n d a n y d o u bt t h at t he ca use was t he 

I nla n d Water wa y s yste m t h at c o nsist of t h e Mississi p pi, Illi n ois, O hi o, Miss o uri, 

a n d Ar ka nsas ri vers t h at ser ve t he West a n d S o ut h we st stat es a n d s o me easte r n 

stat es. T he O hi o, Te n nessee a n d C u m berla n d Ri vers slice t he S o ut h t o get her 

wit h t he T o m bi g bee i n Ala ba ma. T hese, pl us t he i nter c oastal ca nals, t he Gre at 

La kes f or m a f or mi da ble net w or k t h at attr act a n d dirt y o ur wate r be y o n d t he 

a bilit y t o reclea nse.

T o att e m pt t o offset t he d o w n war d rail tre n d t h at was o ur o nl y mea ns of distri b uti o n, we atte m pte d o n t w o occasi o ns t o get re d uce d rail rates. O n eac h occasi o n, we were c o m pelle d t o a p p ear bef ore t he I nterst at e C o m merce C o m missi o n 

i n f or mal cases I. C. C. D oc ket N o. 3 1 7 93 N A T I O N A L M O L A S S E S C O M P A N Y

v. A B E R D E E N & R O C K FI S H R AI L R O A D C O M P A N Y E T A L. 2 9 9 I C C 2 8 3 

deci de d Oct o ber 1 2, 1 9 56 a n d a gai n i n I. C. C. D oc ket N o. 3 1 9 3 0 M O L A S S E S

F R O M G U L F P O R T S T O T H E MI D D L E W B S T Z W I C C 5 5 7 deci de d Ma y 2 2. 

1 9 57 t o s u p p ort l o wer rail rate s desi g ne d t o r ec o ver l ost t o n n a ge t h at was di verte d 

t o bar ge li nes a n d m o ve d i nt o i nla n d p orts f or ulti mate deli ver y b y ta n k tr uc ks 

t o rail users. S uc h d eli vere d m olasses was s ol d o n a basi s of t he rail deli vere d c ost, 

t he differe nce i n tr u e c ost was t he pr ofit of t he bar g e-tr u c k-te r mi n al seller a n d 

was ver y sizea ble. M olasses is a n e xe m pt c o m m o dit y fr o m t he re g ulati o n of t he 

I nt erstat e C o m merce C o m miasi o n as are ma n y far m a n d relate d pr o d ucts i n c o nnecti o n wit h bar ge traffic. T his mea ns n o re g ulati o n e xists w he n m o ve d b y wat er.

Wit h re gar d t o Re g ulati o n of vari o us m o des of tra n s p ortati o n, Ex hi bit A is

att ac hed t hat is self-e x plai ne d. As y o u ca n see, water Is b y far t he greatest perc e nta ge of n o n-fe derall y re g ul ate d w he n c o m pare d wit h t he ot he r m o des. I n t his
1 2 3 0

re gar d, we q u ote t he f oll o wi n g ta ke n fr o m "I m pr ovi n g R ailr o a d Pr o d uctivity"

iss ue d b y t he Nati o nal C o m missi o n o n Pr o d ucti vit y a n d W or k Q ualit y, Was hi n gt o n, b.c.

“ N ot o nl y has t he frei g ht mar ket gr o w n m ore sl o wl y t ha n t he ec o n o m y as a 

w h ole, b ut t he railr o a d’s s hare of t hat mar k et has decli ne d stea dil y. Ot her f or ms 

of tra n s p ortati o n —tr uc ki n g, pi peli nes, a n d bar ges m o vi n g o ver t h e i nla n d water wa y 

s yste m — ha ve ma de dee p i nr oa ds i nt o t h e frei g ht m ar ket t hat railr oa ds o nce ser ve d 

al m ost e ntirel y b y t he msel ves. As rece ntl y as 1 94 5, railr oa ds carrie d 6 7 perce nt of 

t otal i nt ercit y frei g ht traffic. T o da y t heir s hare is o nl y 3 9 perce nt.” pa ge 6.

Wit h re gar d t o c osts of vari o us water s yste ms, Ex hi bit B is att ac hed t hat s h o ws 

i n t he sec o n d c ol u m n fr o m t he ri g ht t he c ost i n mills t hat it ta kes t o ha ul a t o n. 

I n 1 9 69 o n t he Mississi ppi Ri ver it c ost 2. 8 7 mills. I n 1 9 70 it c ost 3. 0 4 mills a n d 

i n 1 97 1 it c ost 3. 3 9 mills. Usi n g a s pecific e xa m ple t o C hica g o, Illi n ois, i n 1 97 5 

m olasses c ost 5. 3 mills a n d o n 1 5 00 ri ver miles t h at mea ns it a p pr o xi mates $ 8. 0 0 

per t o n a n d c o ul d be l o wer t o m eet c o m petiti o n. T he pres e nt rail rate t o C hica g o 

fr o m Ne w Orlea ns o n J u n e 1 3t h is 1 20 ce nts per 1 00 l bs. or $ 2 4. 00 per t o n or 

$ 1 6. 0 0 per t o n hi g her t ha n bar ge. T his is s u p p ose d t o be a bar ge c o m pelle d rate 

b ut m o ves ver y little b y rail. A gai n t he differe nce is a n a m o u nt t hat g oes i nt o t he 

ter mi n al o perat ors’ p oc ket as a pr ofit ite m. T his sit u ati o n is a p plica ble at a n y 

ri ver p oi nt. I n s u p p ort, we q u ote fr o m pa ge 6 of t he I C C B urea u of Ec o n o mics 

A u g u st- Se pte m be r 1 97 2 w hic h sa ys:

“ 3. W A T E R C arriers —reven ue, tr affic, a n d avera ge h a ul, 1 9 71- 1. 9 7 0:

“ F oll o wi n g a s u b stat ntial i ncrease fr o m 1 96 9 t o 1 97 0, t otal waterli ne frei g ht 

re ve n ue of 8 3 class A a n d B carriers b y i nla n d a n d c oastal water wa ys r ose t o 

$ 3 4 8. 3 milli o n i n 1 97 1, a sli g ht 1. 9 perce nt i ncrease fr o m t he $ 3 4 2. 0 milli on re p orte d 

f or 1 97 0. Carriers o perati n g o n t he Mississi p pi Ri ver s yste m acc o u nte d f or 5 4. 9 

perce nt of t he t otal frei g ht re ve n ue, 7 3. 1 perce nt of t he t o n na ge, a n d 7 5. 8 perc e nt 

of re ve n ue t o n miles. T he I nter c oastal gr o u p s uffere d t he hi g hest perce nta ge 

decreases i n frei g ht re v e n ue a n d t o n s of re ve n ue frei g ht carri e d.”

T he o nl y reas o n c o m pa nies bar ge o n I nla n d water wa ys is t h at t heir ri g ht- of- wa y 

is e ntirel y pai d f or b y all pe o ple b y ge neral ta xati o n. O n pa ge 7 of “ I m pr o vi n g 

Railr oa d Pr o d ucti vit y ” it f urt he r states:

“ F or e xa m ple, t he Fe deral G o ver n me nt has a d va nce d m uc h of t he c ost of 

c o nstr ucti n g t he I nte rst ate Hi g h wa y S yste m w hic h e na bles tr uc k s t o c o m pete 

s o effecti vel y wit h railr oa ds. T he e x pa nsi o n of t he i nla n d water w a y s yste m is 

carrie d o ut b y t he U. S. Ar m y C or ps of E n gi neers wit h ta x m o ne y. Wit h n o 

user c har ges f or t he bar ge o w ners, t his creates a direct s u bsi d y of water carriers 

b y t he Fe deral G o ver n me nt.”

I n t he case of railr oa ds, t he y pa y f or t heir ri g ht- of- wa y a n d its mai nte na nce. 

It is o nl y o ut of t h e re ve n u e of frei g ht d o t h e y rec o ver t heir o perati o nal e x pe nse. 

T he railr oa ds pa y ta xes i n ma n y f or ms, as d o we car o w ners, t o all stat es t he y 

o per ate t hr o u g h. O ne f or m is A d Val ore m t hat is a p plie d o n railr oa ds a n d pri v ate 

car o w ners. N o state assesses t his f or m of ta xati o n o n a n y bar ge li nes, i n fact, 

m ost stat es are clear i n s pecificall y ma ki n g bar ge li nes e xe m pt fr o m t his ki n d of 

ta xati o n. A gai n t his is a n ot her f or m of discri mi n ati o n e xisti n g a gai nst railr oa ds 

a n d pri vate car o w ners. U nif or mit y s h o ul d be ma n date d of all stat es t o ta x 

e q uall y. T he S u pre me C o urt i n St a n d ar d Oil C o. vs. Peck ( 1 9 5 2) hel d t hat se parate 

state ha ve t he p o wer t o ta x water craft s o l o n g as t he y ta x o n a n e q ual f or m ula 

a n d e q ual ma n n er as t he y d o ot h er tra n s p ortati o n c o m pa nies s uc h as railr oa ds.

W hat f oll o ws ne w water w a ys? Ta ke t he ne wl y de dicate d Ar ka nsas Ri ver w hic h 

was n ot nee de d t o be f or me d, it has re m o ve d fr o m t he railr oa ds lar ge t o n na ge. 

It has, a n d still is, attracti n g ne w P oit A ut h orities t o ser ve t h ose t h at desire t o 

use t heir ser vice. I n t ur n, t he y be gi n t he pr ocess of ma ki n g t he ri ver m ore dirt y 

t ha n bef ore. Grai n m o vi n g t hr u t he P ort of Cat o osa, O kla. o n t he Ar ka nsas 

Ri ver, ori gi nates i n se ve n state s, na mel y, C ol ora d o, Ne bra s ka, I o wa, Ka nsas, 

Miss o uri, O kla h o ma a n d Ar ka nsas, m ostl y b y tr uc k.

Attac he d is E x hi bit C, t h at s h o ws a c h art i n dicati n g t hat traffic o n t h e Ar ka nsas 

Ri ver i n t he first f ull y ear of o perati o n r ose 3 8 0 %. I wis h o ur b usi ness c o ul d sa y 

t h at it i ncrease d e ve n a littl e let al o ne 3 8 0 %.

Ex hi bit D att ache d, s h o ws i n t he ce nterf ol d t he a d v a nta ges of bar gi n g a n d t he y 

are all tr ue. T he c ost sa vi n gs is n ot passe d o n t o t he recei ver b ut is us uall y ke pt 

b y t he s hi p per, ter mi n al o perat or a n d bar ge li ne o perat or. T his is BI G l ucrati ve 

b usi ness a n d it is all d ue t o t he fact t hat t he C or ps of E n gi n eers a n d o ur C o n gressme n pr o vi de t he d ollars necessar y t o o perat e t his b usi ness. Tr u e c osts s h o ul d be 

passe d o n t o t h ose pers o ns t h at use t he m. C o n gress s h o ul d n ot be i n t he b usi ness 

of s u bsi dizi n g t his f or m of tra n s p ortati o n. Let t he user pa y f or it, t he n, a n d 

o nl y t he n, will he pass o n its c osts as t he n t he s h oe will fit ti g ht er. C o n gress
1 2 3

has o nl y pr o vi de d t o t he user of its water wa ys a n a bilit y t o de m o nstrate s u p eri or 

ec o n o mic p o wer or s u peri or b usi ness le vera ge base d o n t he practice of price discri mi n ati o n. It d oes n ot de m o nstrate greater efficie nc y, b ut i n fact, t he re verse 

res ults. A n a p pr o priate a n d o bjecti ve test of relati ve efficie ncy is si milar t o t he 

test a n e n gi neer w o ul d ma ke: W hat i n p ut i n la b or, ca pital a n d materials is ma d e 

t o get t he o ut p ut ? Re gar dless of t he la bel- m ar gi nal c ost, i ncre m e ntal c ost, varia ble c ost or o ut- of- p oc ket c ost — n o f or m of p arti al c ost w hic h o mits a s u bsta ntial 

p orti o n of t he i n p ut ca n p ossi bl y ser ve as t he basis f or deter mi ni n g efficie ncy. 

T he cr uc al pri nci ple i n v ol ve d is t h at w here t he water carrier has t he i n here nt 

a d v a nta ge of c ost, it s h o ul d n ot, t hr o u g h rat e acti o n of a less efficie nt m o de, be 

f orce d —as a c o n diti o n of re m ai ni n g i n t he mar ket —t o l o wer its o w n rat e bel o w 

a le vel w hic h will per mit it t o c o nti n ue t o o per ate efficie ntl y a n d t o ear n a pr ofit 

necessar y t o ass ure fi na ncial via bilit y.

O n pa ge 2 herei n I me nti o ne d t he bar ge rat e t o C hica g o, Ill. o n m olasses. I n 

1 9 54, we di d f or ni ne years bar ge m olasses t o C hica g o a n d distri b ute d it t o o ut ­

l yi n g areas i n Wisc o nsi n, Illi n ois, I n dia na, Mic hi ga n a n d O hi o. M olasses t o n na ges 

reac he d its hi g h pea k i n 1 95 6 w he n 1 4 8,6 2 4 t o ns m o ve d o n t he Illi n ois Ri ve r t o 

C hica g o. I n t he i nter ve ni n g years, it has hel d t o a b o ut 9 8, 0 0 0 t o ns or s o. O ur 

rail ta n k carl oa d b usi ness t o Illi n ois reac he d its hi g h pea k i n 1 9 56 w he n we s ol d 

2 5 7 cars. I n 1 9 73 it dr o p pe d t o 1 2 cars a n d 1 9 74 t o 7 cars.

I n a n ot her c o m paris o n t h at s h o ws t he ma g nit u de of t his sit u ati o n, i n 1 97 3, 

t he t otal bar ge li ne (I nla n d Water wa ys e xcl usi ve of t he Gre at La kes) as r e p ort e d 

b y t he C or p of E n gi neers a m o u nte d t o 5 9 6, 4 5 9, 5 1 3 net t o ns as c o m pare d wit h 

t he nati o n s railr oa d s as ha uli n g 1, 5 3 2, 1 86, 0 0 0 net t o ns. T he water carriers t he n 

ha ule d 3 8. 9 % of t he railr oa ds t otal t o n na g e w hic h was i n 4 8 state s. T he wat erwa ys ha ve 2 5, 5 4 3 miles o n w hic h t o bar ge a n d t he nati o ns railr oa ds m o ve o n 

2 0 6, 4 0 0 miles of trac k. T he water wa ys is 1. 8 % of t he t otal of 1, 4 07, 6 81 miles 

a n d t he railr oa ds is 1 4. 7 %. T o c o m plete t his pict ur e, Air wa ys acc o u nt f or 2 9 1, 23 1 

miles or 2 0. 7 %: Hi g h wa ys acc o u nt f or 6 6 5, 9 0 3 miles or 4 7. 3 %; a n d pi peli nes 

acc o u nt f or 2 1 8, 6 0 4 miles or 1 5. 5 %.

T his mea ns t h at t he water wa y s yste m acc o u nts f or t he least miles ( 1. 8 %) a n d 

m o ves o ver ! 4r d ( 3 8. 9 %) as m uc h as o ur nati o ns railr oa ds w h o ha ve 1 4. 7 % of 

ri g ht- of- w a y.

C A N I N L A N D W A T E R W A Y U S E R S A F F O R D T O P A Y C H A R O E 8 O F S O M E KI N D ?

A lar ge bar ge li ne, a part of a c o n gl o merate, re p orte d i n t heir a n n ual re p ort 

t h at i n 1 9 7 2 t heir re ve n ue s was $ 1 7, 0 0 0, 00 0 a n d t hat i n 1 9 73 at j u m pe d t o $ 2 0, 3 6 0,- 

0 0 0 a n i ncrease of 2 0 %. A n ot her lar ge bar ge li ne, als o a c o n gl o merate, re p orte d 

t h at t hei r re ve n ue s i n 1 96 8 was $ 3 3, 3 5 5, 0 0 0; i n 1 9 69 it was $ 3 6, 6 9 7, 0 0 0; i n 1 9 70 

it was $ 4 2, 9 3 8, 0 0 0; i n 1 97 1 it was $ 4 6, 2 2 4, 0 0 0 a n d i n 1 9 72 it was $ 5 3, 9 1 0, 0 0 0. I 

a m a d vise d t h at t he A merica n Water wa y j o ur nal c o ntai n s m ore s pecific data 

al o n g t his li ne s u p p o rti n g o ur c o nte nti o ns.

S U M M A R Y O F O U R P O SI TI O N

1. We belie ve t h at t he sa me ki n d of c osts t h at railr oa ds face i n mai ntai ni n g 

t hei r ri g ht- of- w a y s h o ul d be a p plie d e q uall y t o t he bar ge li nes. T his i ncl u des 

t he f ull c ost of mai nte na nce a n d c o nstr ucti o n of l oc ks a n d c ha n nels. We d o n ot 

i ncl u de t he c ost of da m s w hic h ar e esse ntial t o fl o o d c o ntr ol.

2. We belie ve t h at t he sa me ki n d of ta xati o n b y t he se p arat e state w here b ot h 

rail a n d water e xist s h o ul d be e q uall y a p plie d o n t he sa me f or m ulas or eli mi nat e d 

b y la w.

3. We belie ve t h at if t he railr oa d s are 1 0 0 perce nt re g ulate d, t he n all ot he r 

m o des of tra n s p o rtati o n s h o ul d e q uall y be re g ul ate d. We d o n ot belie ve t h at 

relie vi n g t hese f or ms w o ul d be be neficial t o s mall s hi p pers a n d mi g ht e ve n be 

detri me ntal t o t he m.

4. We belie ve t h at all p ort a ut h oriti es be c o m pelle d t o fi na nce t heir o w n nee d 

a n d if t he y are tr ul y nee de d, s uc h f u n di n g be se c ure d b y p u blic fi na nci n g.

5. We belie ve t h at all f or ms of pres e nt tra n s p o rtati o n s h o ul d be mai ntai ne d 

o nl y if t he y are o n a bs ol ut e a n d e q ual c o n diti o n s.

6. We belie ve t h at t he less i n v ol ve d o ur Fe deral g o ver n me nt bec o mes i n t his 

matter, t he m ore ca pa ble eac h f or m of tr a ns p ortati o n will be, as t h e y are s pecialists 

i n t heir fiel d.

7. We belie ve t h at acti o ns of o ur C o n gress i n re ctif yi n g t h ese c o n diti o ns s h o ul d 

n ot wait a n y l o n ger. Ti me is of esse nce a n d acti o n is nee de d N O W s o t h at c o n diti o ns of all m o des will be u nif or m.

A c o p y of y o ur re p o rt of y o ur c o m mittee w o ul d be a p pre ciate d.

T ha n k y o u.
1 2 3 2

E X HI BI T 

3. Fe der ally re g ul ated a n d t ot al i ntercity t o n miles, 1 9 78:

T o n miles of carriers re g ulate d a n d n ot re g ulat e d b y t he Fe deral G o ver n me nt 

a n d t otal i nter cit y t o n miles are s h o w n b y m o de of tra n s p ortati o n f or 1 9 72 i n 

t he acc o m pa n yi n g ta ble. I nte rcit y t o n miles were 4. 7 perc e nt greater t ha n t he 

1 97 1 t otal of 2, 2 3 1. 7 billi o n. T his c ha n ge re prese nte d a n i ncrease of 6. 5 perc e nt 

i n re g ulate d traffic, a n d a 1.9 perce nt i ncrease i n u nre g ulate d traffic. T he r e g ulate d 

p orti o n of t otal i ntercit y traffic r ose fr o m 6 0. 3 perce nt i n 1 97 1 t o 6 1. 3 perce nt 

i n 1 9 72. T he s hare of oil pi peli ne, water, a n d m ot or traffic u n de r re g ulati o n 

i ncrease d sli g htl y bet wee n 1 97 1 a n d 1 97 2.

F E D E R A L L Y R E G U L A T E D A N D T O T A L I N T E R CI T Y T O N- MI L E S. B Y M O D E O F T R A N S P O R T A TI O N, 1 9 7 2

|l n billi o n s)

F e d er all y r e g ul at e d N ot e f e d e r all y r e g ul at e d T ot al

T o n- mil e s P er c e nt T o n- mil e s P er c e nt T o n- mil e s P er c e nt

R ail...................... 7 8 2. 8 1 0 0. 0 7 8 2. 8 1 0 0

M ot or' .................. 1 9 8. 0 4 2. 1 2 7 2. 0 5 7 . 9 4 7 0. 0 1 0 0

W at er’ ......................... 4 6 . 3 7. 7 5 5 7. 2 9 2. 3 6 0 3. 5 1 0 0

Oil pi p eli n e 4 0 2. 2 8 4. 5 7 2. 6 1 5. 5 4 7 5. 8 1 0 0

A ir ’ _ _ _ _ _ _ _ _ _ _ 3. 7 1 0 0. 0 3. 7 1 0 0

T o t al............... 1, 4 3 3. 0 6 1. 3 9 0 2. 8 3 8 . 7 2, 3 3 5. 8 1 0 0

 T ot al t o n- mil e s c o m p ut e d fr o m d at a s u p pli e d b y t h e F e d er al H g h w a y A d mi ni s tr ati o n, D e p art m e nt of Tr a n s p ort ati o n.

* F e d e r all y r e g ul at e d t o n- mil e s c o m pri s e o nl y r e g ul at e d tr affi c c arri e d b y r e g ul at e d w at e r c arri er s. All e x e m pt tr affi c i s

e x cl u d e d. T h e t ot al w at er c arri er d at a i n cl u d e d e e p- s e a c o a st wi s e a n d i nt er c o a st al s er vi c e. D at a s u p pli e d b y t h e C or p s of

E n gi n e e r s, D e p a rt m e nt ot t h e Ar m y.

 S o ur c e: Ci vil A er o n a uti c s B o ar d. E x c e pt a s n ot e d, c arri er r e p ort s t o t h e I nt er st at e C o m m er c e C o m mi s si o n. ( E xtr a c t e d

fr o m I C C B ur e a u of E c o n o mi c s, v ol. I N o. 4- 1 9 7 4.)

E X HI BI T B

S U M M A R Y O F R E V E N U E S, T O N S, A N D R E V E N U E T O N- MI L E S, C L A S S A A N D B C A R RI E R S B Y W A T E R,’ 4 T H Q U A R T E R

1 9 6 9, 1 2 T H M O S. 1 9 6 9, A N D 1 S T Q U A R T E R 1 9 7 0

Ar e a a n d p eri o d

Fr ei g ht

r e v e n u e

(t h o u s a n d s )

0 )

T o n s of

r e v e n u e

fr ei g ht

c arri e d

(t h o u s a n d s )

( 2 )

R e v e n u e-t o n s

c arri e d o n e

mi {r e v.

t o n - mil e s)

(t h o u s a n d s)

( 3)

Fr ei g ht

r e v e n u e

p er

r e v e n u e

t o n- mil e

( 1 + 3 )

A v er a g e

h a ul

( m il e s)

( 3 + 2 )

4t h q u art er 1 9 6 9:

Cl a s s es A a n d B. t ot al . $ 7 8, 1 5 4 4 1, 0 7 0 2 1, 0 0 8. 1 7 9 $ 0. 0 0 3 7 2 5 1 2

Atl a nti c a n d G ulf C o a st.................... 6, 1 41 1, 9 8 9 7 6 0, 8 8 6 . 0 0 8 0 7 3 8 2

Gr e at L a k e s ............................. 6. 9 9 6 5, 5 9 3 2, 1 2 5, 8 1 1 . 0 0 3 2 9 3 8 0

Mi s si s si p pi Ri v er a n d tr i b u t a ri e s....

P a cifi c C o a st. . . . _ _ _ _ _

3 9, 9 2 6 2 8, 6 6 3 1 5, 2 8 1, 2 9 5 . 0 0 2 6 1 5 3 3

6, 8 2 3 4, 2 4 2 5 3 5, 0 5 2 . 0 1 2 7 5 1 2 6

I nt e r c o a stal _ _ _ _ _ _ _ _ _ _ 1 8. 2 6 6 5 8 2 2. 3 0 5. 1 3 4 . 0 0 7 9 2 3. 9 6 0

1 2t h m o nt h s 1 9 6 9:

Cl a s s e s A a n d B, t ot al . 2 7 3, 9 9 3 1 3 8, 4 2 8 6 6, 8 6 2, 6 5 4 . 0 0 4 1 0 4 8 3

Atl a nti c a n d G ulf C o a st.. . 2 2, 8 8 6 7. 2 7 3 2, 9 3 4, 5 1 0 . 0 0 7 8 0 7 0 3

Gr e at L a k e s ............................. 2 3. 3 3 6 1 9, 2 8 7 7. 0 9 8. 4 6 3 . 0 0 3 2 9 3 6 8

Mi s si s si p pi Ri v er a n d tri b ut a ri e s .. 1 3 4, 1 5 3 9 1, 9 7 3 4 6, 7 7 2, 5 1 7 . 0 0 2 8 7 5 0 9

P a cifi c C o a st _ _ _ _ _ _ _ _ _ _ 2 8, 2 6 6 1 7. 8 5 0 2. 0 2 9, 8 8 1 . 0 1 3 9 2 1 1 4

I nt er c o a s t al _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 5. 3 5 2 2. 0 4 4 8. 0 2 7. 2 8 2 . 0 0 8 1 4 3. 9 2 7

1 st q u art er 1 9 7 0:

Cl a s s e s A a n d B, t ot al 6 6. 5 0 9 2 8, 2 2 4 1 5, 2 8 6, 0 0 1 . 0 0 4 3 5 5 4 2

Atl a n ti c a n d G ulf C o a st _ _ _ _ _ 4, 3 2 0 1, 2 1 4 7 2 1, 1 3 4 . 0 C 5 99 5 9 4

Gr e at L a k e s _ _ _ 2 1 1 1 01 7, 6 0 0 . 0 2 7 8 3 7 5

Mi s si s si p pi Ri v er a n d tr i b u t a ri e s....

P a cifi c C o a st......... ...............

3 7, 4 2 4 2 1, 8 2 8 1 1, 8 7 2, 2 9 1 . 0 0 3 1 5 5 4 4

6. 3 9 1 4, 5 3 3 5 4 6. 2 3 6 . 0 1 1 7 0 1 2 0

I n t e r c o a st al.......... ................. 1 8. 1 6 3 5 4 6 2, 1 3 8, 7 4 0 . 0 0 8 4 9 3, 9 1 6

■ C o m pil e d fr o m q u art erl y r e p ort s of cl a s s A a n d B c arri er s. Cl a s s A c arri er s ar e t h o s e h a vi n g a n n u al o p e r ati n g r e v e n u e s

of m or e t h a n $ 5 0 0, 0 0 0, cl a s s B of o v er $ 1 0 0, 0 6 0 t o $ 5 0 0, 0 0 0. D at a r e pr e s e nt fr ei g ht s er vi c e s p erf or m e d b y 8 6 c arri er s f or

t h e 4t h q u art e r a n d 1 2 m o s of 1 9 6 9 a n d 8 4 c arri er s f or t h e 1 st q u a rt er of 1 9 7 0.
1 2 3 3

E X HI BI T 

' Tr affi c Ri s e s 3 8 0 %

3 5 0. 0 0 0

T O N S 

3 2 5. 0 0 0

3 0 0. 0 0 0

2 7 5, 0 0 0

2 5 0, 0 0 0

2 2 5, 0 0 0

2 0 0, 0 0 0

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E X I B I T D

a b o ut

e c o n o mi e s of b ar gi n g a d v a nt a g e s of 

b ar gi n g ' d ail y s hi p-t o- s h or e c o m m u nic ati o n c o n v e ni e nt ri v er si d e w ar eh o u si n g f." m o d er n m at eri al- h a n dli n g 

e q ui p m e nt ; a f ull li n e of b ar g e t y p e s □ 

o pti o n al mi xi n g of b ar g e tr a n s p ort ati o n 

wit h r ail or tr u c k 7 o c e a n- g oi n g b ar g e s 

wit h 1 30 0 t o n c a p a citi e s ~ b ar g e s f or 

a b n or m all y b ul k y or h e a v y o bj e ct s w ei g hi n g u p t o 2 00 0 t o n s □ t a n k b ar g e s t h at 

h ol d t h e e q ui v al e nt of 5 0 r ail t a n k c ar s □ 

c o v er e d h o p p er b ar g e s t h at h ol d 1 40 0 

t o n s of f ar m pr o d u ct s or i n d u stri al b ul k 

c ar g o i nt e gr at e d t o w s t h at tr a n s p o rt 

o v er 3, 0 00, 0 00 g all o n s of p etr o c h e mi c al s 

at a ti m e C a b ar g e t h at h ol d s 5 0 0, 0 0 0 

g all o n s a n d p u m p s it s elf dr y i n 8 h o ur s 

[ h e at e d t a n k b ar g e s □ u nl o a di n g i n a 

gr o u n d e d c o n diti o n □ w e at h erti g ht h at c h 

c o v er s LI U B L c a p a bilit y t o h a n dl e j u st 

a b o ut a n y c ar g o w h et h er p a c k a g e d, 

li q ui d, or dr y b ul k □ i m p ort/ e x p ort s er vi c e ~ a c c ur at e i n tr a n sit n otifi c ati o n.
1 2 3 5

tate m e nt Pr e p ar e d f or S u b mis si o n t o t h e 

S u bc o m mitte e o n W at er R es o u rc es of t he 

S e n at e C o m mitt ee o n P u blic W o r ks 

b y Dale M ille r, Pre si de nt

G ulf I n tr a c o a st al C a n al A ss o ci ati o n 

W as hi n gt o n, D. C . — J u n e 1 9, 1 9 7 5

M r. C h air m a n a n d Me m b ers of t h e S u bc o m mitt ee:

M y na m e is Dale Mille r, a n d 1 a m P re si d e n t of t h e G ulf I n tr a c o a st al C a n al A ss oc ­

ia ti o n, wit h pri nci p al offic es i n H o us t o n, T e x as.

T h e G ulf I n tr ac o a st al C a n al A ss o ci ati o n is t h e or ga ni zati o n u n de r w h o se a u s p ic e s 

t h e G ulf I n tr ac o a st al W at er w a y ha s be e n de vel o pe d o v er a l o n g pe ri o d of y e ars. 

F o u n de d i n 1 9 0 5 — a n d wit h it s m e m be rs hi p c o n si sti n g t o da y of g o ve r n m e nt a g e n ­

c i e s, i n d u str ie s, b u si n e ss fi r m s, I n st it uti o n s, a n d i n di v i d u als, pri n ci p all y i n t h e 

fi ve G ulf C o a st State s — t h e A ss o ci ati o n ha s w o r k e d cl o s el y wit h C o n gre ss a n d 

G o ve r n m e nt a g e n cie s i n c o n st r u cti n g a n d m ai nt ai ni n g t h e re m ar ka bl e I n tr a c o a st al 

C a n al s y st e m , w hi c h n o w e x te n d s fr o m t h e M e xic a n b o r d er t o t h e w es t c o a st of 

Fl o ri d a, a dista n c e of ne arl y 1, 2 0 0 m il e s.

Fir st a u t h ori ze d b y C o n gr es s o n t h e e x p ec tati o n t h at it w o ul d ulti m at el y de vel o p 

5, 0 0 0, 0 0 0 t o ns of c o m m erc e a y e a r, t h e G ulf I n tr a c o a st al W at er w a y n o w tr a n s p orts 

m or e t h a n 1 0 0, 0 0 0, 0 0 0 t o ns a n n u all y, or t w e nt y ti m es t h e ma xi m u m ori gi n all y pr edicte d f or it. It ha s be e n a maj or fa ct or i n t h e tr a n sf or m ati o n of t h e G ulf C o as t 

fr o m a virt u al wil d er n es s i nt o o n e of t h e w or l d's b u si e st i n d u st ri al e m pi re s.

T h u s, t h e G ulf I n tr a c o a st al C a n al A s s o cia ti o n, b ec a u se of it s l o n g e x pe ri e n ce i n 

hel pi n g t o st re n g t h e n a n d i n vi g o rate t h e na ti o n al ec o n o m y t hr o u g h l o w -c o st w at er 

tr a n s p ort ati o n, h as a pr o n o u nc e d i n te re st i n i m p o rta nt pr oc ee di n g s de ali n g wit h 

na vi g ati o n p oli c y, s u c h a s t h e h ea ri n gs n o w u n de r w a y be f o re y o ur S u bc o m mitt ee.

M u c h of t h e te sti m o n y de ve l o pe d t h us fa r i n y o u r S u bc o m mitt ee he ari n g s ha s ce nte re d o n c o ntr o v er si al pr o p o sals w hi c h i n v ol v e t h e i m p o siti o n, i n s o m e f or m, of 

t o ll s or u se r c h ar ge s o n o u r i nla n d w at er w a y s.

---------------------------------------------------------------------- F R O M M A I N E T O M E X I C O -----------------------------------------------------------------------

\ \ \ T h » \ A i. I Ij u m m u t u h x F t « H .l T t

c o x m j t i M ' i n i »•i • M i n i t i i ». - » \ r n »i t w i n n t m . * . t \i » h i t i i

Til t t t l H i l l *•' till I t Mil M t t ill. • M il * * I M l M H it « t \ t l . \ » » U I M ill : « K« • »!•• »
1 2 3 6

T h e G ulf I n tr a c o a st al C a n al A s s o ci ati o n h a s l o n g o p p o s e d t h e i m p o siti o n of s u c h 

b ur d e n s o n t h e u s ef ul a n d e s s e nti al s er vi c e s pr o vi d e d t o t h e A m eri c a n p e o pl e b y 

t h eir o w n p u bli c w at er w a y s. W e k n o w fr o m o u r o w n e x p e ri e n c e al o n g t h e G ulf 

C o a st t h at t h e o p p o rt u niti e s pr o vi d e d b y l o w - c o st w at er tr a n s p o rt ati o n h a v e b e e n 

g r e atl y r e s p o n si bl e f o r t h e d e v el o p m e nt of c o u ntl e s s i n d u stri e s, l ar g e a n d s m all, 

w hi c h i n t ur n h a v e pr o vi d e d j o b s i n t h e h u n dr e d s of t h o u s a n d s, a n d t a x r e v e n u e s 

at a ll l e v el s of G o v er n m e nt i n t h e h u n dr e d s of milli o n s — w hil e at t h e s a m e ti m e 

g e n e r ati n g e n or m o u s s a vi n g s i n tr a n s p o rt ati o n c o st s f o r t h e p u bli c a s a w h ol e.

M u c h of t hi s d e v el o p m e nt h a s t a k e n pl a c e i n r e c e nt y e ar s b e c a u s e of t h e c o nfi ­

d e n c e t h at t h o s e w h o h a v e t a k e n s u c h e c o n o mi c ri s k s h a v e pl a c e d i n t h e hi s t o ri c 

w at er w a y s p oli c y of t h e U nit e d St at e s — a p oli c y d a ti n g b a c k t o t h e N ort h w e st 

Or di n a n c e of 1 7 8 7 w hi c h d e cl ar e d o u r i nl a n d w at er w a y s "f o r e v e r fr e e" , a n d r eaffir m e d b y C o n g r e s s a s r e c e ntl y a s 1 9 6 4. M a n y i n d u stri al v e nt ur e s h a v e b e e n 

m a d e p o s si bl e b y pr oj e c ti o n s i n t o t h e f ut u r e of e x p e ct e d tr a n s p o rt ati o n c o st s .

Wit h all of t h e m a nif ol d e c o n o mi c b e n e fit s w hi c h h a v e a c cr u e d t o t h e p e o pl e of 

t h e U nit e d St at e s b e c a u s e of t h e tr a diti o n al a d h er e n c e t o t h e fr e e- w at e r w a y p oli c y, it s e e m s s elf - e vi d e nt t o u s t h at t h e I m p o siti o n of o n e r o u s b ur d e n s s u c h a s 

t o ll s or u s er c h ar g e s o n o u r i nl a n d w at er w a y s c o ul d o nl y pr o v e t o b e s elf - d ef e ati n g. It w o ul d r et ar d i n d u stri al d e v el o p m e nt, di s c o u r a g e i n v e st m e nt c a pit al, a n d 

eli m i n at e m a n y o p p o rt u niti e s t o pr o vi d e e m pl o y m e nt — a ll at a ti m e w h e n a m aj or 

pr o bl e m c o nf r o nti n g o ur c o u n tr y i s t o fi n d w or k f o r o ur j o bl e s s m illi o n s.

A si d e fr o m t h e s e pr a cti c al e c o n o mi c o bj e cti o n s, if t h e i m p o siti o n of u s er c h a r g e s 

s h o ul d b e d e si g n e d t o r e c o v e r t h e c o st of c o n st r u cti o n a n d/ o r m ai n t e n a n c e of o ur 

i nl a n d w at e r w a y s, it s c ar c el y s e e m s p o s si bl e t h at a n y s u c h pr o gr a m c o ul d b e a d ­

mi ni st e r e d wit h o ut di s cri mi n ati o n a n d u nf air n e s s. T o b e gi n wit h, w h at i s a n "i n ­

l a n d w at er w a y " ? A r o uti n e d efi niti o n mi g ht b e t h at it i s a s h all o w - d r a ft i nl a n d 

n a vi g ati o n f a cilit y c o n str u ct e d a n d m ai nt ai n e d b y t h e F e d e r al G o v e r n m e nt; b ut _is 

it ? N e w Orl e a n s a n d B at o n R o u g e ar e b ot h i nl a n d citi e s — t h e l a tt e r b ei n g 2 3 3 

mil e s fr o m t h e G ulf — b ut b ot h ar e s er v e d b y a 4 0 -f o ot d e e p c h a n n el. A n ot h er 

e x a m pl e i s t h e S a bl n e- N e c h e s W at er w a y i n T e x a s, a n 8 2- m il e l o n g i nl a n d d e e pw at er c h a n n el s e r vi n g t h e b u s y p o rt s of P ort A rt h u r, B e a u m o nt, a n d Or a n g e — y et 

it i s a p a rt of t h e G ulf I n tr a c o a st al W at er w a y a s w ell. T h e H o u st o n S hi p C h a n n el 

e xt e n d s 5 2 mil e s i nl a n d, s e r vi n g b ot h d e e p- d r a ft v e s s el s a n d s h all o w - d r a ft b a r g e s. 

Ot h er e x a m pl e s e xi s t i n ot h e r s e cti o n s of t h e c o u nt r y.

I s it t h e p ur p o s e of a d v o c at e s of u s er c h ar g e s, t h e n , t o r e c o v e r t h e c o st s of c o nstr u cti o n a n d m ai nt e n a n c e of all s u c h i nl a n d w at er w a y s, r e g a r dl e s s of t h e d e pt h s 

of t h e c h a n n el s ? If s o , t h e n t h e b ur d e n s m u st of c o ur s e b e i m p o s e d o n o c e a ng oi n g v e s s el s a s w ell a s o n b a r g e s, si n c e t h e y w ill b e u si n g t h e i d e nti c al w at er ­

w a y s w hil e wit hi n t h e U nit e d St at e s. If n ot, t h e n w h at j u stifi c ati o n w o ul d e xi s t 

f o r i m p o si n g t h e b ur d e n s o n s m all b ar g e t o w s w hil e e x e m pti n g t h e bi g fr ei g ht e r s 

a n d t a n k e r s, p a rti c ul a rl y si n c e t h e y c o ul d b e tr a n s p o rti n g t h e s a m e t y p e s of c a rg o e s t o t h e s a m e d e sti n ati o n ? Q u e sti o n s s u c h a s t h e s e d e s e r v e r e s p o n si v e a n s w er s, 

b ut t h u s f a r, t o o u r k n o wl e d g e, s u c h a n s w er s h a v e n ot b e e n f o rt h c o m i n g.
1 2 3 7

- 3 -

Alt h o u g h m o st of t h e dis c u ss i o n s w irli n g a b o u t t h e q u es ti o n of i m p o si n g u se r 

c h ar g es o n o u r i nla n d w at er w a y s ha s c e n te re d o n t h e de pt hs of t h e c h a n ne ls 

a n d t h e t y p es of e q ui p m e nt usi n g t h e m , s o m e a d v o c ate s of s u c h b u r d e n s pr o ­

p o se t h at t h e y be i m p o se d u p o n t h e " b e n efi cia ri e s" of c o m m er ci al tr affic. B ut 

h o w ca n s u c h " b e n ef icia ri es " be is ola te d a n d i d e n ti fi e d ?

C o n si d er, a s a n e x a m ple, o ur o w n G ulf I n tr a c o a st al W at er w a y. F or a n u m ber 

of m o nt h s f oll o wi n g t h e c o m pl eti o n of t h e la st se g m e nt of t h e W at er w a y t o 

t h e M e xic a n b o r d er i n 1 9 4 9 t h e h e a vie st t o n n a g e m o vi n g o v er t h at se g m e nt 

c o n siste d of mi n er al s fr o m M e xic o b o u n d f or t h e G re at L a k es. W h o w er e t h e 

" b e n efi cia ri e s" of s u c h m o v e m e nts? T he mi n er s i n M e xic o? T he c o n si g n ee s 

i n C a n a d a? W hile t h is e x a m pl e ma y a p p ea r t o be e x tr e m e, it se r v es t o il l u s ­

tr at e t h e p ra ctic al i m p o ssi bilit y of deter m i ni n g " b e n efi cia ri e s". C ert ai nl y t h e 

is ola te d l o ca l c o m m u niti es t h at ar e tr a n site d b y t hr o u g h- m o v e m e nts of tr af fi c 

o v er o u r i nla n d w at er w a y s, f or dista n c e s of h u n d re ds of m il es, ar e n ot t h e 

" b e n efi cia ri e s" of s u c h c o m m er ce. I n d ee d, t h e y ar e ofte n di sc o m m o d e d b y 

s u c h m o ve me nt s — a n d yet t h e y s h ar e ulti m ate l y, i n c o m m o n wit h t h ei r f ell o w- A m eric a n s e v er y w he re, i n t h e be n ef it s of l o w -c o st w at er tr a n s p ort ati o n.

T he p o siti o n of t h e G ul f I n tr a c o a st al C a n al A ss o ci ati o n is t h at t h e i nla n d w at er ­

wa y s y st e m of t h e U nite d State s is i n de e d a n ati o n al tr a n s p or tati o n f a cilit y, 

a n d we b elie v e t h at t h e o nl y i d e n ti fi a b le b e n ef icia r y of s u c h a p u blicl y b u ilt 

a n d p u blic o w ne d s y st e m is t h e p u blic its elf . T h e b e n efit s pr o d uc e d b y s u c h 

a s y st e m ar e dif f u se d t hr o u g h t h e w h ol e, a n d ca n n ot be ar bit ra ril y is ola te d 

a n d a s si g n e d t o a n y se g m e nt of t h e p o p u lati o n or of t h e ec o n o m y.

We b eli e v e, i n s h o rt, t h at t h e i m p o siti o n of t o ll s or us er c h ar ge s w o ul d be c o ntr ar y t o s o u n d p u blic p oli c y, b ot h i n pri n ci pl e a n d pra ctic e; a n d we re s p e ctf ull y 

ur g e t h e S u bc o m mitt ee t o re -a ffir m t h e hist o ri c c o n ce pt t h at t h e i nla n d w at er ­

wa ys of t h e U nite d State s ar e p u blic f a cil it ie s, fr ee f or t h e c o m m er ci al a n d re cre ati o n al u se of all.

- - # - -
1 2 3 8

T H E I Z A A K W A L T O N L E A G U E O F A M E RI C A

St at e m e nt of

T he I z a a k W alt o n L ea gu e of A m eri c a

B ef or e t h e

S u b c o m mitt e e o n W ater R e s o ur ce s 

of t h e S e n at e P u bli c Work s C o m mitte e

R el ati v e t o

t h e I nl a n d N a vi g ati o n Pr ogr a m 

of t h e U. S. Ar my C or p s of E n gi n e er s

b y

M aitl a n d S. S h ar pe 

E n vir o n m e nt al Aff air s Dir e ct or

J u ne 1 9, 1 97 5

D e ar Mr. C h air m a n:

I a m M aitl a n d S h ar p e, E n vir o n m e nt al Aff air s Dir e ct or of t h e I z a a k W alt o n 

L e ag u e of A m eri c a. T he L e ag u e i s a n ati o n al c o n s er v ati o n or g a ni z ati o n wit h 

a m e mb ers hi p of a p pr o xi m at el y 5 5, 0 0 0, d e di c at e d t o t h e c o n s er v ati o n a nd 

wi s e u se of t h e n a ti o n' s n at ur al r e s o ur c e s. O ur n ati o n al h e a d q u art er s ar e 

l o c at e d at 1 80 0 N ort h K e nt Str e e t, A rli n g t o n, Vir gi ni a.

We a p p r e ci at e t hi s o p p o rt u nit y t o pr e s e nt o ur vi e w s o n t h e I nl a n d N a vig ati o n Pr ogr a m of t h e C orp s of E n gi n e er s.

E n vir o n m e nt al I m p a ct s

As t h e n a vi g a bl e w at er w a y s s y st e m h as gr o w n t o 2 6, 0 0 0 mil e s a nd c h an g e d 

fr o m o c c a si o n al s n a g gi n g a nd cl e a ri n g o n e xi sti n g w at er w a y s t o c o n str u cti o n 

of s o p hi sti c at e d l o c k s a nd d a ms a nd m ai nt e n a n c e of a 9 or a 12 f o ot c h a n n el,
1 2 3 9

- -

t h e me mb er s of t h e I z a a k W alt o n L e ag u e h av e b ec o me i n cr e a si n gl y c o n c er n e d 

o v er t h e e n vir o n m e nt al a nd r e cr e a ti o n al i m p a ct s of t h e n a vi g ati o n pr o gr a m.

I t i s cl e ar t h at t h e c o n s tr u cti o n, e nl ar g e m e nt, m ai nt e n a n c e, a nd o per ati o n of n a vi g ati o n pr oj e ct s h a ve i m po s ed v er y si g nifi c a nt e n vir o n m e nt al 

c o st s o n t h e s o ci et y, t hr o u g h d e st r u cti o n, m o difi c a ti o n, or d e gr e d ati o n of 

I n cr e a si n gl y s c ar c e n at ur al r e s o ur c e s. Alt h o u g h t h e dir e ct e n vir o n m e nt al 

i m p a ct s of n e w pr oj e ct s h a ve sti rr e d t h e m o st h e at e d d e b at e s, t h e c u m ulati v e eff e ct s of m ai nt e n a n c e a nd b ar g e o p er ati o n ma y e nt ail e n vir o n m e nt al 

c o st s of gr e at er a g gr e g at e si g nifi c a n c e .

Dr e d gi n g a nd t h e di s p o s al of dr e d g e s p oil ma y l e a d t o : cl o s ur e of 

b a c k- w at er s a nd sl o u g h s; c o n stri cti o n of t h e fl o o d w a y; l o s s of s c e ni c v al u e s; 

b uri al of s h or eli n e v e g et ati o n, i n cr e a s e d t u r bi d it y a nd r e s u s p e n si o n of 

p o s si bl y t o xi c s e di m e nt s; d e gr e d ati o n of w il dlif e h a bit at; a nd r e d u c e d bi ol o gi c al pr o d u cti vit y.

C o n stri cti o n of t h e c h a n n el, a n alt er n ati v e s y st e m of c h a n n el m ai nt e na n c e, ma y pr o d u c e e q u all y o bj e cti o n a bl e r e s ult s. A r e c e nt st u d y of t h e 

L o w er Mi s s o uri Ri v e r f o u n d ri v e r mil e s r e d u c ed b y m or e t h a n 8 p er c e nt, l o s s 

of o v er- 6 0 p er c e nt of w at e r s urf a c e, a 9 8 p er c e nt r e d u cti o n i n i sl a n d a cr ea g e, a nd a dr a m ati c d e cli n e 1 n fi s h , wil dlif e , a n d r e cr e ati o n al o p p o rt u niti e s.

I n cr e a s e s i n ti e si z e a nd fr e q u e n c y of b ar g e t o w s h a ve a c c el e r at e d er o ­

si o n of ri v e r b a n k s, a nd i n cr e a s e d t u r bi d it y t hr o u g h t h e s e di m e nt r e s u s p e nsi o n eff e ct s of pr o p ell e r w a s h, t o t h e d etri m e nt of t h e pl a n kt o n a nd b e nt hi c 

or g a ni s m s t h at f or m t h e b ott o m of t h e a q u ati c f o o d c h ai n. Gr e at er v ol u m e s of 

b ar g e t r a ffi c al s o i n cr e a s e t h e p o t e nti al f er w at e r p oll u ti o n fr o m b ot h m aj or 

a c ci d e nt s a nd r o uti n e s pill a g e fr o m b ar g e s a nd t er mi n al s.

E ac h of t h e s e eff e ct s of t h e n a vi g ati o n s y st e m r e d u c e s t h e r e cr e ati o n al 

v al u e of t h e ri v e r: i n cr e a s e d u s e of t h e ri v e r a nd d e cr e a s e d w at er ar e a l e a d 

t o d a n g er ou s c o n g e sti o n a nd fr u str ati n g l o c k a g e d el a y s; cl o s ur e of b a c k w at er s 

r e stri c t s a c c e ss t o v al u e d fi s hi n g s p ot s; l o s s of fi s h a nd w il dli f e a nd d ecli ni n g s c e ni c v al u e s ma y r e m ov e t h e f e at u r e t h at o ri g i n all y attr a c t e d t h e
1 2 4 0

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r e cr e ati o ni st.

E c on o mi c C o nc er n s

As a dir e ct r e s ult of o ur e n vir o n m e nt al c o n c er n s, t h e L ea gu e h as b ec o me 

i n cr e a si n gl y att e nti v e t o t h e e c o no mi c q u e sti o n s s urr o u n di n g t h e n a vi g ati o n 

pr o gr a m. T he hi g h e n vir o n m e nt al a nd r e cr e ati o n al c o st s i m p o se d b y t h e n a vig ati o n pr o gra m h av e l e d u s t o a s k w h et h er t h e y ar e a ct u all y j u s ti fi e d b y 

c o m m en s ur at e e c o no mi c g ai n s t o t h e n ati o n a s a w h ol e. I n cr e a si n gl y, t h e 

a n s wer a p p e ar s t o t h e " N o".

M o u nti n g e vi d e n c e fr o m q u alifi e d e c o n o mi st s i n di c at e s t h at b e n e fit - c o st 

a n al y si s, a s e m pl o ye d i n a s s e s si n g n a vi g ati o n pr oj e ct s, s y st e m ati c all y o v e rst at e s pr oj e c t b e n efit s, t h u s di s t o rti n g t h e all o c ati o n of o ur n ati o n al r e ­

s o ur c e s a nd e n c o ur a gi n g o v er-i n v e st m e nt i n t h e n a vi g ati o n s y st e m. F oll o wi n g 

w h at i t t a k e s t o b e t h e di ct at e s of S e cti o n ( 7 )( a) of t h e D e p art m e nt of Tr a n sp o rt a ti o n A ct of 1 9 6 6, t h e C or ps e v al u at e s pr oj e ct s s ol el y o n t h e fr ei g ht 

r at e s a vi n g s t o s hi p p er s, t h e dir e ct b e n efi ci a ri e s, a nd a ss u me s t h at t h e s e 

c o n stit u t e b e n efit s t o t h e n ati o n b e ca u se t h e y ar e wi d el y di stri b ut e d. Unf o rt u n at el y, t hi s pr o c e d ur e f ail s t o e st a bli s h t h e e c o n o mi c b e n efit s t o t h e 

n a ti o n, t h e r e al s a vi n g s i n r e s o ur c e s r e q uir e d t o pr o vi d e t h e s e r vi c e, p erni ci o u sl y, i t t e n d s t o p o rtr a y l o c al dir e ct b e n e fit s a s n ati o n al ( p u bli c ) 

b e n e fit s.

T he si g nifi c a n c e of t hi s c o nf u si o n b et we e n b e n e fit s t o s hi p p er s a nd b e n efit s t o t h e n ati o n i s vi vi d l y ill u str at e d b y t h e t w o st u di e s i n w hi c h b ot h 

t y p e s of b e n efit s w ere c al c ul at e d. I n t h e c a s e of t h e pr o p o s ed L a ke Eri e - 

O hi o Ri v er C a n al, t h e r e al n ati o n al b e n efit s c o m pri s e d o nl y 7. 3 p er c e nt of 

t h e b e n efit s (tr a n s p ort ati o n r at e s a vi n g s) t o s hi p p er s wit h t h e diff e r e n c e 

mad e u p b y tr a n sf e r p a y m e nt s fr o m e xi sti n g c a rri e r s . An a n al y si s of t h e 

Illi n o i s W at er wa y s ho we d p u bli c b e n efit s f or mi n g o nl y a b o ut 4 0 p er c e nt of t h e 

s hi p p e r' s r at e s a vi n g s.
1 2 4 1

4 -

T h es e d efi ci e n ci e s, i n h er e nt i n t h e r at e- b a s e d a n al y si s, w ere di s c u s s e d 

i n t h e Fi n al R e p ort of t h e N ati o n al W at er C o m mis si o n, w hi c h o b s er v e d:

" W hil e t h e r e c an b e n o o bj e cti o n t o r e q uiri n g t h e r e p o rt o n 

a w at er w a y t o s ho w t h e p o t e nti al s a vi n g s t o s hi p p er s, t hi s i s 

n ot a m e a s ur e of t h e e c o n o mi c b e n e fit s of a w at er w a y" . . .

" A n e sti m at e of t h e s a vi n g s t o s hi p p er s i s of lit tl e v al u e 1n 

d et er mi ni n g w h et h er a pr o p o s e d w at er w a y s h o ul d b e b uilt . .

[ a n d c o n cl u d e d t h at] " It f oll o w s t h at a c o m p ari s o n of e c o n o mi c 

c o st s m u st b e mad e t o d et er mi n e w h et h e r t h e c o n str u cti o n of a 

w at er w a y w o ul d r e d u c e t h e r e al c o st t o t h e n ati o n of pr o vi di n g 

n e ed e d tr a n s p ort ati o n s e r vi c e s."

Si g nifi c a ntl y t h e a d v a nt ag e of c o st- b a s e d a n al y si s wa s e n d or se d b y G e n er al

Gri b bl e i n r e s p o n s e t o a w ritt e n q u e sti o n p o se d at t h e J u ne 4, 1 97 4 C or ps of 

E n gi n e er s O v er si g ht H e ari n g s b ef o r e t hi s C o m mitt e e, wh en h e st at e d t h at, 

"I d e all y, l o n g-r u n i n cr e m e nt al c o st s pr o vi d e t h e r e al m e a s ur e of s a vi n g s i n 

e c o no mi c r e s o u r c e s." ( p. 1 3 6)

A war e of t h e v a g ari e s of t h e b e n efit/ c o st c al c ul ati o n s a p pli e d t o n a vi ­

g ati o n pr oj e ct s a n d c o n c er n e d t h at e n vir o n m e nt al v al u e s ar e b ei n g s a crifi c e d 

t o pr oj e ct s t h at ar e e c o n o mi c all y u nj u stifi e d, t h e L e ag u e s u b mit s t h at a s y st e m ati c c o st- s h a ri n g p oli c y s h o ul d b e i n stit u t e d t o r e c o v er, fr o m t h e dir e ct 

b e n efi ci a ri e s, t h e c o st s of c o n str u cti o n (f o r n e w p r oj e ct s ), o p er ati o n, a nd 

m ai nt e n a n c e. T hi s a p pr o a c h, w hi c h i s c o n si st e nt wit h t h e r e c o n m e n d ati o n s of 

t h e N ati o n al W at er C o m mi s si o n, w o ul d pr o m ot e a r ati o n al all o c ati o n of c a pit al, 

e ffi c i e n t u s e a n d c o n s er v ati o n of n at ur al r e s o ur c e s, a nd pr ot e cti o n of t h e 

e n vir o n m e nt.

N u m er ou s s u g g e sti o n s f o r c o st r e c o v er y t hr o u g h u s er c h ar g e s, f u el t a x e s, 

a nd a d va n c e r e p a y me nt a gr e e m e nt s, h a v e b e e n a d v a n ce d. W hil e t h e m erit s of 

t h e v ari o u s pr o p o s al s r e m ai n t o b e e x a mi n e d, we b eli e v e t h at t w o pri n ci pl e s 

ar e cl e ar: ( 1) r e c o v er y of c o n str u cti o n c o st s t hr o u g h u s er c h ar g e s f ail s t o 

pr o vi d e a p ri o r t e st of t h e w o rt hi n e s s of t h e pr o p o s al; ( 2) s m all r e cr e ati o n al
1 2 4 2

5 -

c r aft s h o ul d n ot b e f or c e d t o p a y f o r t h e u s e of f a ciliti e s c o n str u ct e d f o r 

c o m m er ci al u s er s a n d w hi c h c o n stit u t e a n o b str u cti o n t o t h e r e cr e ati o n al 

b o at e r.

T he b e n efi ci a ri e s' willi n g n e s s t o p ay i s , ulti m at el y t h e m o st r eli a bl e 

t e st of t h e e c o n o mi c vi a bilit y of a gi v e n pr oj e c t a nd t h e b e st a v ail a bl e c h e ck 

o n t h e a c c ur a c y of t h e b e n efit/ c o st a n al y si s. A d o pti o n of a c o m pr eh e n si v e 

c o st- s h a ri n g s y st e m w o ul d b e a m aj or a d va n ce t o w ar d s a tr a n s p o rt ati o n s y st e m 

t h at m e et s t h e c o u ntri e s tr a n s p ort ati o n n ee ds at l e a s t e c o n o mi c c o st.

R e pl ac e m ent A ut h o rit y a nd S e g m e nt ati o n

D uri n g t h e N ati o n al C o nf er e n c e o n W at er, Mr. J a me s R. S mit h, Pr e si d e nt 

of t h e A m eri c a n W at er wa y O p er at or s, o b s er v e d t h at t h e b a si c w at er w ay s y st e m of 

t hi s c o u ntr y i s alr e a d y i n e xi st e n c e, t h at t h er e w ill b e v er y f e w m aj or 

a d diti o n s , a nd t h at 1n t h e f ut u r e , t h e e m ph a si s w ill b e o n o p er ati o n a nd 

m o d er ni z ati o n of t h e e st a bli s h e d 2 6, 0 0 0 mil e s of w at er w a y s.

I f h e i s c o rr e ct, a s s ee ms pr o b a bl e, f ut u r e n a vi g ati o n s y st e m i n v e st ­

m e nt a nd p oli c y d e ci si o n s w ill f o c u s o n t h e e nl ar g e m e nt of t h e c a p a cit y of 

t h e pr e s e nt s y st e m, r at h er t h a n o n e x p a n di n g t h e s y st e m b y t h e a d diti o n of 

n e w w at er w a y s. We b eli e v e t h at t hi s o b s er v ati o n r ai s e s s e v er al f u n d a m e nt al 

q u e sti o n s i n li g h t of e xi sti n g pr o c e d ur e s.

At pr e s e nt, t h e C orp s e nj o y s e xtr a or di n a r y l a tit u d e t o r e p air a nd r e ­

c o n str u ct e xi sti n g n a vi g ati o n f a ciliti e s wit h o ut s p e cifi c C o n gr e s si o n al 

a u t h ori z ati o n. T he C orp s h as li b e r all y i nt er p r et e d t h e 1 90 9 A ct ( 3 3 U. S. C. 

S e cti o n 5) a s pr o vi di n g i t wit h a ut h orit y t o r e pl a c e e xi sti n g str u ct ur e s 

a n d e x pa n d t h eir c a p a cit y t o e nc o m pa ss a n ti ci p at e d f ut u r e t r a ffi c n e e d s, 

wit h o ut f u rt h e r a u t h ori z ati o n.

E x er ci si n g t h at a ut h orit y, t h e C or ps h as att e m pt e d t o mo ve f or w ar d wit h 

c o n str u cti o n of a r e pl a c e m e nt f o r L o c k s a nd Da m 2 6 o n t h e U p per Mi s si s si p pi, 

w hi c h w o ul d a c c o m od at e a f o ur f ol d i n cr e a s e i n t r a ffi c a nd a t w el v e f o ot 

c h a n n el. On t h e O hi o Ri v e r, t h e C orp s c o nt e m pl at e s r e pl a c e m e nt of ni n e l o w 

li f t d a ms wit h t hr e e l a r g er o n es w hi c h w o ul d a g ai n a c co m od at e a 1 2 f o ot
1 2 4 3

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c h a n n el, alt h o u g h t h e pr oj e c t i s a ut h o ri z e d f o r a ni n e f o ot d e pt h.

T he q u e sti o n i s w h et h er t h e C or ps s h o ul d b e u nil at e r a ll y e st a bli s hi n g 

r e gi o n al tr a n s p ort ati o n p oli c y wit h o ut b e n e fit of C o n gr e s si o n al a ut h ori z ati o n, a nd a b s e nt h e ari n g s b ef or e t h e P u bli c W ork s C o n mitt e e s. T he pr oj e ct s 

i n q u e sti o n s i n v ol v e si g nifi c a nt e n vir o n m e nt al, e c o n o mi c, a nd s o ci al i mpli c ati o n s. T h ey s h o ul d b e s u bj e ct e d t o a c o m pr e h e n si v e e x a mi n ati o n of:

( a) t h eir w ort h a s p u bli c i n v e st m e nt s; ( b) t h eir c o nt ri b uti o n t o t h e n a ti o n' s 

t o t al tr a n s p ort ati o n s y st e m; ( c) alt e r n ati v e i n v e st m e nt s i n ot h er tr a n s p o rt a ti o n m o d e s; ( d) t h eir p o t e nti al e n vir o n m e nt al i m p a ct s. We b eli e v e t h at 

o nl y t h e C o n gr e s s c an pr o vi d e t hi s br o a d e v al u ati o n of t h e n ati o n al i n t e r e st.

T he C or p s' i nt e r p r e t a ti o n of it s a ut h orit y u n d er t h e 1 90 9 A ct ma y al s o 

f a cilit a t e t h e a rtifi c i a l s e g m e nt ati o n of a s y st e mi c pr o gr a m I nt o a s eri e s 

of di s cr et e, i s ol at e d "r e pl a c e m e nt" pr oj e ct s. S uc h s e g m e nt ati o n ma y o b s c ur e 

t h e tr u e n at u r e of t h e pr oj e ct, t h er e b y o b str u cti n g p u bli c a nd C o n gr e s si o n al 

s c r uti n y of it s i m p a ct s, i m p e di n g c o n si d er ati o n of alt e r n ati v e s, mi ni mi zi n g 

o bj e cti o n s a nd c o ntr o v er s y, a nd f a cilit a ti n g pr oj e ct j u s ti fi c a ti o n . At t h e 

s a me ti m e, s e g m e nt ati o n i s t h e cr u ci al fi c ti o n w hi c h, b y s u p p orti n g t h e "r e ­

pl a c e m e nt" t h e o r y, p er mit s t h e C or ps t o u nil at e r all y ma ke m aj or tr a n s p o rt a ­

ti o n p oli c y d e ci si o n s u n d er t h e 1 90 9 A ct.

L o c k s a n d Da m 2 6 off er s a n e x c ell e nt c a s e i n p oi nt. T he D r aft EI S o n 

t h e pr oj e ct a d mit s t h at " T he c o n str u cti o n of L o c k s a nd Da m 2 6 w ill . . . 

cr e at e i m p et u s t o r e vi s e ot h e r p o rti o n s of t h e s y st e m t o cr e at e t h e m o st 

e ffi c i e n t u tili z a ti o n of t h e a d d ed c a p a citi e s of L o c k s a nd Da m 2 6. B ut t h e 

C or ps h as c o n si st e n tl y c o nt e n d e d t h at it 1 s a di s c r et e r e pl a c e m e nt pr oj e c t 

a nd d e cli n e d t o e x a mi n e t h e e n vir o n m e nt al or e c o no mi c I m p a ct s of t h e s y st e mi c 

e x p a n si o n of w hi c h i t c o n stit ut e s t h e fi r s t st e p. By s e g m e nti n g t h e pr oj e ct, 

t h e C or ps h ad a v oi d e d mu ch of t h e c o ntr o v er s y t h at a m ulti- billi o n d oll a r, 

s y st e m wi d e pr o p o s al w o ul d g e n er at e, f a cilit a ti n g j u sti fi c a ti o n of t h e fir s t 

st a g e. Y et, t h e d e ci si o n t o b uil d t h e fi r s t s e g m ent e s s e nti all y c o n mit s t h e 

n ati o n t o e x pa n d t h e c a p a cit y of t h e e ntir e s y st e m, wit h o ut e v er h a vi n g 

e x a mi n ed t h e n e ed f o r, or w ort hi n e s s o f, t h e e ntir e pr oj e ct.

5 4- 2 3 9 0 - 7 5 - 7 9
1 2 4 4

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We b eli e v e 1t i s e s s e nti al t h at pr oj e c t pl a n n er s b e r e q uir e d t o l a y 

t h eir c ar d s o n t h e t a bl e, b ef o r e t h e p u bli c, all aff e ct e d I n t e r e st s, a nd 

t h e C o n gre s s. It i s c e rt ai nl y n ot i n t h e p u bli c I n t e r e st f o r n a vi g ati o n 

pr oj e ct s t o b e j u s ti fi e d o n t h e b a si s of a s s u m pti o n s t h at c an b e r e ali z e d 

o nl y b y t h e e x p e n dit ur e of f u rt h e r billi o n s f o r c o n str u cti o n of a d diti o n al 

f a ciliti e s a nd at gr e at a dd e d c o st t o t h e e n vir o n m e nt. We r e s p e ctf ull y 

ur g e t hi s C o m mitte e t o c a r e f ull y e x a mi ne t h e I m pli c ati o n s of mi s u s e of t h e 

1 90 9 A ct a nd t h e pr a cti c e of s e g m e nt ati o n.

T h an k y o u.
1 2 4 5

S O U T H C A R O L I N A S T A T E P O R T S A U T H O R I T Y

C H A R L E S T O N • G E O R G E T O W N • P O R T R O Y A L • PI E D M O N T

R. O. B O X * 1 7 C H A R L E S T O N. S O U T H C A R O LI N A I S 4 0 2

T E L E P H O N E ( 0 3/ 7 7 1 - M S 1

W. D O N W E L C H

e x e c u t i v e d i r e c t o r O ct o b er 2 3, 1 9 7 5

T h e H o n o r a b l e M i k e G r a v e l , C h a i r m a n 

S u b - C o m m i t t e e o n W a t e r R e s o u r c e s 

C o m m i t t e e o n P u b l i c W o r k s 

U n i t e d S t a t e s S e n a t e

W a s h i n g t o n , D . C .

S U B J E C T : C o r p s o f E n g i n e e r s O v e r s i g h t H e a r i n g s

D e a r S e n a t o r G r a v e l :

T h e S o u t h C a r o l i n a S t a t e P o r t s A u t h o r i t y i s t h e a g e n c y o f 

t h e S t a t e o f S o u t h C a r o l i n a w i t h g e n e r a l j u r i s d i c t i o n o v e r a l l p o r t 

a n d h a r b o r a c t i v i t i e s w i t h i n t h i s s t a t e . W e a r e t a k i n g t h e o p p o r ­

t u n i t y h e r e w i t h e x t e n d e d b y y o u t o s u b m i t i n f o r m a t i o n f o r c o n s i d e r a t i o n 

a s p a r t o f t h e c a p t i o n e d h e a r i n g s .

W e a r e p a r t i c u l a r l y c o n c e r n e d w i t h t h o s e p o l i c i e s , p r o g r a m s , 

a n d p r o j e c t s o f t h e f e d e r a l g o v e r n m e n t c a r r i e d o u t b y t h e C o r p s o f 

E n g i n e e r s r e l a t i v e t o h a r b o r m a i n t e n a n c e . W e w o r k c l o s e l y w i t h t h e 

C o r p s o f E n g i n e e r s o n a c o n t i n u i n g b a s i s a n d h a v e g r e a t r e s p e c t f o r 

t h e p r o f e s s i o n a l i s m a n d c o m p e t e n c e o f t h e i r p e r s o n n e l .

W e p r e s e n t t h e s e c o m m e n t s b e c a u s e l e g i s l a t i v e a c t i o n i s 

n e e d e d t o c l a r i f y a n d s u p p o r t C o r p s o f E n g i n e e r s h a r b o r m a i n t e n a n c e 

a c t i v i t i e s .

T h e n a v i g a t i o n p r o g r a m o f t h e C o r p s o f E n g i n e e r s s e r v e s 

t h e p u b l i c i n t e r e s t t h r o u g h t h e w i d e s p r e a d e c o n o m i c a n d s o c i a l b e n e f i t s 

g e n e r a t e d b y t r a d e a n d c o m m e r c e . I n S o u t h C a r o l i n a , l i k e m a n y o t h e r 

a r e a s , t h e d e v e l o p m e n t o f a h a r b o r s y s t e m h a s b l a z e d t h e t r a i l f o r 

i n d u s t r i a l p r o g r e s s . A c c e s s t o w o r l d m a r k e t s f o r i m p o r t s a n d e x p o r t s 

h a s b e c o m e t h e k e y f a c t o r i n t h e s u c c e s s o f c o m m e r c e , m a n u f a c t u r i n g 

a n d a g r i c u l t u r e . W i t h i n S o u t h C a r o l i n a , t h i s p o s i t i v e e c o n o m i c b e n e f i t 

i m p a c t s n o t o n l y t h o s e s e a b o a r d c o u n t i e s w h e r e h a r b o r f a c i l i t i e s a r e 

l o c a t e d , b u t a l s o m a j o r n o n - c o a s t a l m a n u f a c t u r i n g c o u n t i e s . T h e r e i s 

a s u b s t a n t i a l u s e o f a n d d e p e n d e n c e o n o u r h a r b o r s b y s t a t e w i d e , a g r i ­

c u l t u r a l a n d m a n u f a c t u r i n g i n t e r e s t s . A r e c e n t s t u d y b y t h e U n i v e r s i t y
1 2 4 6

S O U T H C A R O LI N A S T A T E P O R T S A U T H O RI T Y

T he H o n ora ble Mike Gra vel 

Oct o ber 23, 1975 

Pa ge T wo

of S o ut h Car oli na s h o ws t h at t he i m pact of t he P ort o n t he Sta te's i n ­

c o me is m ore t ha n h al f a billi o n d oll ars. T he dir e ct a n d i n di re ct p ortde pe n de nt e m pl o y me nt is 30,00 0. Als o, S o ut h Car oli na e x p ort s 29 pe rce nt 

of it s a g ri c u lt ural pr o d u cti o n, t he hi g he st per ce nta g e i n t he nati o n.

T he St at e of S o ut h Car oli n a has a vit al i n te re st i n se v er al 

of t he maj or iss ue s pr es e ntl y pe n di n g bef ore t he C o m mittee. We s har e 

t he se c o nce r ns wit h m ost ot he r c o astal maj or p o rt s t hr o u g h o ut t he nati o n. 

T hese iss ue s are :

(1) T he mai nte na n ce of o ur n ati o n's f or ei g n c o m merce is 

de pe n de nt u p o n t he a de q u ate mai nte na nce of har b o r de pt h s. A de q uate 

st at ut or y a ut h orit y e x ists f or C or ps of E n gi neer s i n t his fi el d . H o we ver, 

t he lac k of c o nti n u o us ass ure d f u n di n gs at a de q uate le v el s, t he 

u n ce rtai nt y a ve r t he di re cti o n t he C o n gress will ta ke re g ar di n g t he 

Nati o nal Dre d gi n g P olic y, a n d t he c o nse q ue nt lac k of a de q u ate dre d gi n g 

e q ui p me nt ha ve le d t o ver y seri o u s pr o ble ms.

We are n ot dir e ctl y c o ncer ne d wit h t he iss ue of w het her 

t he p u bli c or t he pri v at e se ct or ca rrie s o ut t he w or k of har b or mai nte ­

na nce. H o we ver, t h is w or k m ust c o nti n u e as a st a b le o n- g oi n g pr o gra m.

I n t he P ort of C ha rlest o n al o ne, se v er al h u n dre d milli o n d oll ar s of 

n o n-f e de ral p u blic i n vest me nt a n d pri v at e i n v est me nt, t o g et h er wit h 

billi o n s of d oll ar s of c o mnerce de pe n d u p on t h is mai nte na nce dre d gi n g.

(2) T he c u rr e nt met h o d of dis p o sal of dre d ge d material 

c all s f o r t he use of dis p o sal are as l oc ate d eit h er i n mar s h-l a n d, 

wet-la n d, or u p-la n d sit e s. T he re s p o n si bilit y f o r pr o vi di n g t he 

dis p o sal si te s f all s u p o n o ur a ge nc y, a n d t he c o st is b or ne b y t he 

St at e of S o ut h Ca r oli na. T he r o uti n e pra ctic e n o w is t he use of di ke d 

mars h la n d s f o r t he rec e pti o n a n d dete nti o n of m at erials fr o m t he 

c ha n nels. T his met ho d ca use s t he c o m plete de st r u cti o n of e xisti n g 

li f e i n t he mars h es. St u die s al s o i n di cate t h at t he r u n- of f fr o m t he 

dis p o sal ar ea s ma y ha ve a n a d vers e i m pact o n wat er q u alit y. I n 

a d diti o n t o t he e n vir o n me ntal c o nse q ue n ces, t he pr o ce d ural a n d ec o n o mic 

b ur de ns i m p ose d b y t he re q uire me nt t o ma ke a v aila bl e dis p o sal are as 

are e n or m o us.

I n vie w of t h is , it is u nli k el y t h at t he est a blis h m e nt of 

a d diti o nal dre d ge d m ate rial dis p o sal sit e s will be p o ssi ble. T his is 

tr u e i n C ha rlest o n a n d a mo ng ot he r ha r b or s. Dre d gi n g tec h n ol o g y 

e x ists t o i m ple me nt t h is alt er n ati v e, b ut t he s p ecial dre d ge s a n d 

e q ui p me nt re q uire d are n ot a v aila bl e i n t he U nite d State s. As a n 

a d diti o nal pr o ble m, t he m orat ori u m o n dre d ge c o nstr u cti o n a n d t he 

c o nti n ue d u n ce rt ai nt y of t he q u esti o n of p u bli c ver s u s pri v at e dre d gi n g,
1 2 4 7

S O U T H C A R O LI N A S T A T E P O R T S A U T H O RI T Y

T he H o n ora ble Mike Gra vel 

Oct o ber 23, 1975 

Pa ge T hree

has f o r ye ars bl oc k e d t he pr o d ucti o n of s uc h e q ui p m e nt. T he o bje cti v e 

of t he m orat ori u m o n dre d ge c o nstr u cti o n has bee n ac hie v e d, a n d t he 

ti me has c o me t o li f t it.

(3) We belie ve it s h o ul d be Nati o nal P olic y t o e nc o ura ge 

t he a p plic ati o n of t he m ore c o st ef fe cti v e a n d le ss e n vir o n m e nt all y 

da magi n g dre d gi n g tec h ni q ue s. T he C or ps of E n gi n eers has f o r years 

bee n st u d yi n g t he se tec h ni q ue s. T hey are k no wn her e a n d else w here 

i n t he w orl d. To gat he r a d diti o nal c oll ate ra l k n o wle dge a b o ut t he 

ef fe ct s of dre d gi n g, t h e C or ps of E n gi n eers is pr es e n tl y i n t he mi d dle

of a 5- y ear $30 milli o n st u d y of dre d gi n g i m p acts. T he Nati o nal Dre d gi n g 

St u d y has bee n c o m plete d. Y our C o m mittee is i n t he p o siti o n no w t o 

d efi niti v el y st ate w hat t he Nati o nal Dre d gi n g P olic y s h o ul d be. We 

ur ge pr o m pt c o nsi d er ati o n of t h is p olic y a n d pr o m pt e nact me nt of it 

i nt o la w, a n d dir e ct t h e C or ps t o i m ple ment e x isti n g tec h n ol o g y 

pr o m ptl y. We d o n ot ta k e a sta n d o n w het her dre d gi n g s h o ul d be s olel y 

p u blic, s olel y p ri v ate, or s o me c o m bi n ati o n t h er e o f, b ut feel str o n gl y 

t h at t he C or ps of E n gi n eers is t he pr o per a ge nc y f o r a d mi nist rati o n 

of dre d gi n g a n d har b or mai nte na nce pr o je cts.

(4) Yo u ha ve rec ei v e d e xte n si v e testi m o n y o n t he t o pi c of 

c o st s hari n g t hr o u g h us er c har ges o n t he n ati o n's water w a ys. We ur ge 

y o u t o di sti n g u is h bet wee n mai ntai n e d water wa ys a n d mai ntai n e d c o astal 

har b ors. I n t he maj or c o astal ha r b or s, e xte n si v e n o n-fe d er al p u bli c 

a n d pri v at e i n ve st m e nt s ha res wit h t he fe de ral g o ver n me nt t he c o st of 

t he mai nte na nce a n d o p er ati o ns of t he p ort. C ost s h ari n g alr ea d y e x ists 

i n p o rt s t hr o u g h t he massi v e ca pital i n vest me nt b y st ate a n d l oc al 

a ge ncie s i n p o rt c o nstr ucti o n. N o n-fe de ral i n te re st s al s o s har e t he 

c o st s of mai nte n a nce t hr o u g h dre d gi n g o utsi de of fe d er all y mai ntai ne d 

c ha n nels. Als o, a us er c har g e alr ea d y e xis ts, i n e ff e ct, t hr o u g h 

C usto ms d uti es. I n t he P o rt of C h arl est o n, t he fe de ral g o ver n me nt 

c oll ec ts m ore t ha n $70 milli o n a n n uall y t hr o u g h C usto ms c o ll ec ti o n s.

T he a n n ual c o st of n o n-fe d er al p u blic a n d pri v at e f a cili ti e s is 

esti m ate d at m ore t ha n d o u ble t he fe d er al mai nte n a nce c o st. T his 

c o m pares wit h a p p r o xi mat el y $3 milli o n a n n uall y s pe nt b y t he fe d er al 

g o ver n me nt o n c ha n n el mai nte n a nce.

T ha n k y o u f o r t he o p p o rt u nit y t o pr es e nt t h es e vie ws t o y o u 

a n d f or i n c o r p or ati n g t he m i n y o ur Heari n gs re c o r d. We l o o k f or war d 

t o w or ki n g wit h y o u a n d y o ur sta ff i n t he ne xt fe w m o nt hs as y ou 

c o nsi der t he se is s u es a n d pre pare le gislati o n o n t he se t o pic s.

Si nc er el y y o ur s,

' 2/ /f cv 7/ ^ ^ ^

W. Don Welch

W D W: pji
1 2 4 8

N A TI O N A L C O A L A S S O CI A TI O N

S t a t e m e n t b y

C A R L E . B A G G E

P r e s i d e n t

N A T I O N A L C O A L A S S O C I A T I O N

B e f o r e t h e

C O M M I T T E E O N P U B L I C W O R K S

S u b c o m m i t t e e o n W a t e r R e s o u r c e s

U N I T E D S T A T E S S E N A T E

O c t o b e r 2 0 , 1 9 7 5
1 2 4 9

M y na m e i s C a rl E. B a g g e. I a m p r e s i d e n t o f t h e N ati o n al

C o al A s s o c i a ti o n , a n a ti o n a l t r a d e a s s o c i a ti o n r e p r e s e n ti n g t h e

m aj o r p r o d u c e r s a n d s e l l e r s o f c o al i n t h e U nit e d S t a t e s . I a m 

h e r e t o d a y t o v o i c e t h e o p p o siti o n o f t h e n a ti o n 's c o a l i n d u s t r y t o

t h e i m p o siti o n o f w ate r w a y u s e r c h a r g e s.

I . I n t r o d u c ti o n

C o al, t h e n a ti o n 's m o st a b u n d a nt s o u r c e o f e n e r g y, h a s b e e n

c a ll e d u p o n t o h el p r e d u c e o u r n a ti o n 's d e p e n d e n c e o n f o r e i g n o i l.

T he i n c r e a s e d u s a g e o f l o w e r - c o st c o a l w ill r e s u lt i n t h e d e g r e e

o f e n e r g y s e l f - s u f f i c i e n c y w hic h i s v i t a l t o a s s u r e o u r n a ti o n a l 

w e l f a r e a n d s e c u rit y , n o w a n d i n t h e f u t u r e .

C o al, t h e se c o n d l a r g e s t c o m m o dit y w hic h m o v es o n t h e i n l a n d

w ate r w a y's, a c c o u n t s f o r o n e - f o u rt h o f t o t a l w at e r b o r n e c o m m er ce.

T he l a t e s t a v a il a b l e fi g u r e s fr o m t h e U . S . C o r p s o f E n g i n e e r s s h o w

t h a t t h e t o t a l c o al t r a f f i c i n 1 9 7 3 w as 1 1 7. 2 m illi o n t o n s o r

al m o st 2 0 p e r c e n t o f t h e c o a l i n d u s t r y 's a n n u al p r o d u c ti o n .

P r e s e n tl y , c o al i s t r a n s p o rt e d t o m a r k et e it h e r b y r a i l , b a r g e 

o r t r u c k , o r a n y c o m bi n ati o n o f t h e t h r e e f o r m s o f t r a n s p o r t. B ar g e 

t r a n s p o r t a ti o n i s n ot o nl y t h e m o st e c o n o m ic al t o t h o s e w h o c a n 

t a k e a d v a nta g e o f i t , b u t i t a l s o s e r v e s a s a c h e c k o n r a i l a n d

t r u c k r a t e s i n a r e a s w h ere t h e y c o m p ete . T h e r e f o r e, w at e r t r a n s ­

p o r t a ti o n i s p r e s e n tl y a c ti n g t o h o l d t h e li n e o n h i g h e r t r a n s p o r t a ti o n 

c o s t s i n a ti m e w h e n i n f l a ti o n i s r a m p a nt.
. C o al a s a C o m p etiti v e F u el

T h e u s e o f i n l a n d w ate r w a y s f o r t r a n s p o rti n g c o al t o 

m a r k et i s t h e o ut g r o w t h o f t h e f r e e w ate r w a y s p o li c y , w hic h h a s 

a s o n e o f i t s b a si c o b j e c ti v e s t h e d e v el o p m e nt o f t h e n a ti o n 's 

r e s o u r c e s. S i n c e d o m e sti c o il a n d g a s a r e t r a n s p o rt e d b y p i p e li n e 

fr o m t h e r e fi n e r y t o t h e m a r k et p l a c e, c o a l i s t h e o nl y f o s s il f u e l 

t o u s e t h e i n l a n d w ate r w a y s t o s u c h a l a r g e e x t e n t a s a d i r e c t 

li n k b et w e e n t h e p r o d u c e r a n d t h e c o n s u m e r.

B e c a u se o f t h e f r e e w ate r w a y s p o li c y , c o a l h a s b e e n a b l e t o 

m ai n t ai n i t s c o m p e titi v e p o s iti o n i n m a r k ets al o n g t h e M i s s i s s i p p i 

a n d O hi o R i v e r s. C o al d e p o s it s i n t h e A p p al a c hi a n s a n d i n t h e 

I lli n o i s - I n d i a n a b a si n ma de i t p r a c ti c a l t o u s e b ot h t h e O hi o a n d 

M i s si s si p p i R i v e r s t o t r a n s p o rt c o a l e c o n o m i c all y. W at er w a y 

d e v el o p m e nt e n a ble d l a n d -l o c k e d c o al m i n e s t o e x p a n d t h e i r m a r k ets 

b y c o n n e cti n g s h o rt r a i l h a u l s t o r i v e r t e r m i n a l s t h a t w o u l d n ot 

h a v e b e e n e c o n o m ic al o r f e a s i b l e e x c e p t f o r t h e l o w c o s t.

L o w -c o st b a r g e t r a n s p o r t a ti o n all o w e d c o a l t o r e m ai n c o m p e titi v e 

w it h i t s t w o m ai n c o m p eti n g f u e l s — o il a n d g a s. S i n c e o il a n d g a s 

c a n b e d e li v e r e d t o m a r k et b y l o w - c o st p i p e li n e , t h e l o w - c o st b a r g e 

wa s a b s o l u t e l y n e c e s s a r y f o r c o al t o m a i n t a i n i t s c o m p e titi v e p o s iti o n 

I m p o siti o n o f a u s e r t a x w o u l d h a v e r e s u lt e d i n u s e r s o f c o al 

s w it c h i n g t o o il a n d g a s. T o d a y t h e u s e r s o f g a s w o ul d be s u b j e c t 

t o p o s s i b l e c u rt a il m e n t s a n d t h e u s e r s o f o il w o ul d be c o n t ri b u ti n g 

t o o u r d e p e n d e n c e o n f o r e i g n o i l.
1 2 51

• - 3 -

At t h e p r e s e n t ti m e, a u s e r c h a r g e w o ul d s t i l l h a v e a 

n e g a ti v e e f f e c t o n c o a l' s c o m p e titi v e p o s iti o n w it h o i l a n d g a s. 

T h is w o ul d e s s e n ti a ll y p r o m ote t h e u s e o f o i l a n d g a s w hic h a r e 

i n s h o rt s u p pl y d o m e s ti c a ll y , a t t h e e x p e n s e o f c o a l w hic h t h e 

n a ti o n h a s i n a b u n d a nt s u p p l y. T he i m p o siti o n o f a u s e r c h a r g e 

o n c o al a t a ti m e w h e n g o v er n m e nt p o li c y i s g e a r e d t o p r o m oti n g 

g r e a t e r c o a l u s e d o e s n ot ma ke s e n s e. N ot o nl y w o ul d i t b e 

d i a m e t ri c a ll y o p p o se d t o t h e g o v e r n m e n t's e s p o u s e d p o li c y o f 

e n e r g y c o n s e r v a ti o n t h r o u g h t h e s u b s tit u ti o n o f p l e n ti f u l f u e l s 

f o r t h o s e i n s h o rt s u p pl y ; i t w o ul d a l s o b e c o n t r a r y t o o u r 

n a ti o n * 8 w e l f a r e a n d s e c u rit y b y e x p o si n g u s t o t h e t h r e a t o f 

e v e n m or e f o r e i g n f u e l e n t e ri n g t h e c o u n t r y .

I I I . E f f e c t s o f U s er C h a r g e s o n t h e C o al I n d u st r y

S e v e r al c o a l p r o d u c e r s a r e d e p e n d e nt u p o n l o w - c o st w at e r 

t r a n s p o r t a ti o n i n o r d e r t o r e m ai n c o m p e titi v e w it h i n t h e c o a l 

i n d u s t r y . N e a rl y 8 0 p e r c e n t o f t h e 4, 7 4 4 c o a l m i n e s i n 

o p e r a ti o n d u ri n g 1 9 7 3 w ere c o n si d e r e d s m all m i n e s, p r o d u ci n g 

l e s s t h a n 1 0 0, 0 0 0 t o n s d u ri n g t h e y e a r. A n y o n e o f t h e s e m i n e s 

w hic h d e p e n d s o n w ate r t r a n s p o rt i n o r d e r t o m o ve t h e c o a l t o 

m a r k et c o u l d b e v u l n e r a b l e t o l o s i n g i t s m a r k et. E ac h s m all 

p r o d u c e r d ri v e n o ut o f t h e c o a l i n d u s t r y b e c a u s e o f t h e h i g h e r 

t r a n s p o r t a ti o n c o s t w o ul d r e s u l t i n a m or e h i g h l y c o n c e n t r a t e d 

c o a l i n d u s t r y . T h is w o ul d n ot o nl y b e d e t ri m e n t a l t o t h e c o a l 

p r o d u c e r, b ut a l s o t o t h e l a b o r f o r c e a n d t a n g e n ti a l i n d u s t r i e s
1 2 5 2

c a t e d i n t h e c o m m u nitie s i n v ol v e d i n c o a l p r o d u c ti o n a n d

r i v e r t r a f f i c .

Se me c o al i s mi n e d i n a r e a s w hic h a r e r e s t r i c t e d t o 

t r a n s f e r ri n g t h e c o al fr o m w ate r t o r a i l t r a n s p o r t a ti o n . T h e 

o v e r ri d i n g c o n s i d e r a ti o n i n m o vi n g t h e c o a l o n t h e r i v e r a n d t h e n 

o n r a i l i s t h e l o w c o s t. I f t h e w ate r w a y w ere s u b j e c t t o a u s e r 

c h a r g e s o m e t r a n s f e r s w o ul d be c o m e u n e c o n o m ic. T his w o ul d r e s u lt 

e it h e r i n a n a lt e r n a t e m ea ns o f t r a n s p o r t o r a l o s s o f m a r k et f o r 

t h e c o a l. E it h e r w a y, t h e o ut c o m e w o ul d m ea n t h a t t h e r e v e n u e 

e x p e cte d t o b e g ai n e d t h r o u g h t h e u s e r c h a r g e w o ul d n ot b e a s 

l a r g e a s h o p e d f o r d u e t o t h e r e d u c ti o n i n t r a f f i c v ol u m e.

M o re o v e r, i t s e f f e c t o n o t h e r s e g m e nts o f t h e ec o n o m y 

c o ul d n e g at e a n y r e v e n u e s t h a t m i g ht b e g e n e r a t e d t h r o u g h s u c h 

a c h a r g e. T h e n e t e f f e c t o f s u c h a c h a r g e, t h e r e f o r e , w o ul d be 

p u n iti v e a n d d e t ri m e n t a l t o a v i t a l se g m e nt o f o u r ec o n o m y w hic h 

r e l i e s o n t h e m i n i n g o f c o al a n d t r a n s p o rti n g i t b y w a t e r.

I V . E f f e c t s o f U se r C h a r g e s o n C o al C o ns u m er s

T he l a r g e s t c o a l c o n s u m ers — e l e c t r i c u t i l i t i e s , s t e e l m ill s 

a n d i n d u s t r i a l p l a n t s — h a v e ma n y p l a n t s a n d m ill s l o c a t e d al o n g 

t h e n a ti o n 's w ate r w a y s i n o r d e r t o t a k e a d v a nta g e o f t h e l o w c o st 

s hi p m e nt o f c o a l b y b a r g e. Ma n y o f t h e s e u s e r s a r e o nl y e q ui p p e d 

t o r e c e i v e o r u nl o a d c o a l b y b a r g e. I n t h e e v e n t a u s e r c h a r g e w ere 

i m p o se d, t h e h i g h e r c o s t w o ul d e it h e r b e ( 1 ) p a s s e d o n t o t h e

c o n s u m ers o f e l e c t r i c i t y , s t e e l a n d o t h e r i n d u s t r i a l p r o d u ct s
1 2 5 3

- 5 -

t h e r e b y a d di n g t o o u r i n f l a ti o n p r o ble m s o r ( 2 ) a b s o r b e d b y 

t h e c o n s u m e rs , t h e r e b y m a k i n g t h e m , i . e . , t h e , a f f e c t e d p l a n t s

o r m ill s , l e s s c o m p etiti v e w it h t h e r e s t o f t h e p r o d u c e r s i n

t h e i r p a r ti c u l a r i n d u s t r y .

E l e c t r i c u t i l i t i e s c o ns u m e m ore c o a l t h a n a n y o t h e r s e c t o r.

I n 1 9 7 4, t h e y c o ns u m e d 3 9 0. 1 m illi o n t o n s, o r n e a rl y t w o -t h i r d s

o f a l l t h e c o a l p r o d u c e d. T h e i m p o siti o n o f u s e r c h a r g e s a p p li e d

t o t h e c o a l m o v e d b y w ate r t o v a ri o u s p o w er p l a n t s w o ul d r e s u l t

i n h i g h e r c o s t e l e c t r i c i t y f o r t h e c o n s u m e rs s e r v e d b y t h e a f f e c t e d

p o w er p l a n t s .

I n t h e c a s e o f a p o w er p l a n t w hic h r e c e i v e s c o a l b y b a r g e, a

u s e r c h a r g e w o ul d r e s u lt i n a h i g h e r o p e r a ti n g c o s t. S i n c e m o st

p o w er p l a n t s a r e c o n n e cte d t o a p o w er g r i d , w h e n t h e c o s t o f

o p e r a ti n g t h e p l a n t i s h i g h e r t h a n t h e n ei g h b o ri n g p l a n t s , i t i s

o nl y u s e d w h e n ( 1 ) a l l a v a il a b l e e l e c t r i c i t y i s n e e d e d b e c a u s e o f 

a l a r g e de m a n d o r ( 2) i t i s s t i l l c h e a p e r t o o p e r a t e t h a n t h e o t h e r 

p l a n t s i n t h e g r i d . B e c a u se o t h e r p o w er p l a n t s ma y h a v e t h e c o a l

mi n e d a t t h e p l a n t s i t e o r h a v e t h e c o a l d e li v e r e d b y r a i l , t h e i r

t r a n s p o r t a ti o n c o s t s w o ul d n o t g o u p, t h e r e b y p u tti n g t h o s e p l a n t s

d e p e n d e nt o n w ate r w a y s a t a d i s a d v a n t a g e. T h e o u t p u t o f t h e p o w er

p l a n t c o u l d c o n c ei v a b l y d e c r e a s e o v e r t h e y e a r s, w hic h i n t u r n

w o ul d r e s u l t i n l e s s c o a l s hi p p e d b y b a r g e a n d l e s s r e v e n u e.

S t e e l m ill s a r e a n o t h e r l a r g e u s e r o f c o a l. I n 1 9 7 4, t h e y

c o ns u m e d a b o ut 8 9. 7 m illi o n t o n s o f c o a l t o m a k e c o k e. B a r g e s

a r e a l s o u s e d b y t h e s t e e l i n d u s t r y t o t r a n s p o r t t h e c o a l fr o m t h e
1 2 5 4

m i n e t o t h e c o k e o v e n. T he h i g h e r c o s t o f m o v i n g c o a l b y

b a r g e a s a r e s u lt o f a u s e r c h a r g e c o ul d r e s u lt i n ( 1 ) h i g h e r 

s t e e l p r i c e s , ( 2) h i g h e r p r i c e s i n p r o d u c t s d e ri v e d fr o m c o k e,

( 3 ) t h e s t e e l p r o d u c e r s u si n g b a r g e s b ec o m i n g l e s s c o m p e titi v e 

i n t h e s t e e l i n d u st r y a n d ( 4) d i v e r s i o n o f w at e r t r a f f i c t o r a i l 

a n d / o r l o c a ti n g ne w c o k e o v e n s a t t h e m i n e.

V. C o n cl u si o n

I f we a r e t o e x p a n d o u r c o a l p r o d u c ti o n , t h e n a ti o n r e q u i r e s 

l e g i s l a ti o n t h a t w ill p r o m ote a n o r d e rl y d e v el o p m e nt o f o u r a b u n d a nt 

c o a l r e s e r v e s . A u s e r c h a r g e w o ul d h i n d e r o r d e rl y d e v el o p m e nt 

si n c e i t w o ul d p r e c i p it a t e ti m e -c o n s u m i n g a n d c a p it a l - i n t e n s i v e 

a d j u st m e n t s t o t h e e x i s ti n g t r a n s p o r t a ti o n n et w o r k w hic h i s s o v i t a l

i n g e tti n g t h e c o al fr o m t h e m i n e t o t h e m a r k et. T h e n a ti o n c a n n ot 

a f f o r d t o s p e n d i t s r e s o u r c e s re v a m pi n g a s y ste m w hic h i s w o r k i n g 

t o t h e b e n e f it o f t h e n a ti o n a t t h e p r e s e n t ti m e.

T he l o n g -te r m o u tc o m e o f a u s e r c h a r g e ma y w ell b e t h e o p p o sit e 

o f w h at i s i n t e n d e d . C o al p r o d u c e r s l o c a t e d i n a r e a s w hic h p r e s e n tl y 

u s e w ate r w a y t r a n s p o r t a ti o n ma y c o n si d e r t h i s m o de o f t r a n s p o r t a ti o n 

t o o e x p e n si v e. T his w o u l d m ea n e it h e r t h e c o al c o n s u m er l o c a ti n g 

h i s p l a n t a t t h e mi n e s i t e o r t h e p r o d u c e r s h i p p i n g t h e c o a l t o 

m a r k et e n ti r e l y b y r a i l . E it h e r c h o i c e w o ul d m ea n t h a t, a s o l d 

m i n e s w hic h p r e s e n tl y u se b a r g e s t o t r a n s p o r t t h e c o a l t o m a r k et 

a r e w or k e d o u t, n o ne w m i n e s t h a t u s e t h e w ate r w a y s w ill t a k e t h e i r 

p l a c e . T h is w o ul d r e s u lt i n a n et r e d u c ti o n o f t o n n a g e h a n dle d 

b y t h e w at e r t r a n s p o r t a ti o n i n d u s t r y a n d l e s s r e v e n u e.
1 2 5 5

I n a d d it i o n, t h e r a il i n d u str y w ill be u n d er a tr e m e n d o u s 

b ur d e n j u s t t o ke e p u p w it h t h e p r o j e cte d gr o w t h n e c e s sit a t e d 

b y i n c r e a s e d c o al p r o d u cti o n, I f t h e w ate r tr a n s p o rt a ti o n 

i n d u str y i s u n a ble f o r a n y re a s o n t o c a r r y e x i sti n g or a d d iti o n a l 

t o n n a g e, t h i s w ill u n d o u bte dl y p l a c e a n a d d iti o n al b u ra e n o n 

t h e r a il r o a d s. I n t h e i r p r e s e n t s t a t e , s u c h a t a s k ma y be i m p o s si b le 

a n d t h e e n ti r e c o al t r a n s p o rt a ti o n s y st e m, w hi c h i s e s s e n ti a l f o r 

m o vi n g c o al fr o m mi ne t o m ar k et, ma y be str e t c h e d be y o n d i t s 

li m it s. At a ti m e w he n e v er y e f f o r t i s b ei n g ma de t o u p gra d e a n d 

e x pa n d a ll m o d es o f c o al t r a n s p o rt a ti o n , t h e i m p o sit i o n o f u s e r 

c h a r g e s w o ul d i n d ee d be c o u n te r - p r o d u cti v e.

T he i m p o siti o n o f a u s e r c h ar g e c o ul d o nl y hi n d e r c o a l's 

c o m p eti ti v e p o siti o n i n t h e e n er g y m ar k et. W hile i t w o ul d c e rt a i n l y 

i n c r e a s e t h e c o st o f sa me 1 1 7. 2 m il li o n t o n s o f c o a l, i t w o ul d

ha ve l i t t l e e f f e c t o n t h e p ri c e o f o t h e r f u e l s.

At a ti m e o f gr o w i n g c o n c er n a b o ut i n c r e a s e d e n er g y c o st s, 

t h e i m p o sit i o n o f a n a d d iti o n a l t r a n s p o rt a ti o n c o st i n t h e f or m 

o f a u s e r c h ar g e w o ul d o nl y c o m p o u n d t h e pr o ble m. T his a d de d 

c o st w o ul d be p a ss e d o n t o i n d u s t ri a l c o al u s e r s. T he se i n c r e a s e d 

c o st s, i n t u r n, w o ul d t h e n be p a s s e d o n t o t h e c o n s u m er s o f 

e l e c t r i c it y , st e e l a n d o t h e r i n d u s t ri a l p r o d u cts . U n n e ce ss ar y 

c h ar g e s s u c h a s t h e s e s h o ul d n ot be all o w e d t o a d d t o t h e alr e a d y 

si g n i fi c a n t c o st s b ei n g b o r n e b y f u el p r o d u c e r s, i n d u str y a n d

c o n s u m er s.
1 2 5 6

'-

A n y att e m p t t o i m p o se a u s e r t a x w o ul d d e f e a t t h e p u r p o s e 

f o r w hic h t h e d e v el o p m e nt o f o u r w ate r w a y s w as o r i g i n a ll y c o n c ei v e d. 

I t w o ul d b e d e t ri m e n t a l t o c e r t a i n p r o d u c e r s i n t h e c o a l i n d u st r y 

a n d t h e s h i p p e r s o f c o al w h o r e l y o n t h e w ate r w a y s f o r t h e i r 

li v e li h o o d .

O n b a l a n c e, t h e d i s a d v a n t a g e s o f i m p o si n g u s e r c h a r g e s 

o n w ate r w a y t r a n s p o r t a ti o n f a r o ut w ei g h a n y p o t e n ti a l b e n e f it s .

We u r g e t h i s c o m m it te e, t h e r e f o r e , t o s u p p o rt t h e s o u n d d e v el o p m e nt 

a n d u s e o f o u r d o m e sti c e n e r g y r e s o u r c e s b y r e j e c ti n g t h e c o n c e pt 

o f w ate r w a y u s e r c h a r g e s.


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