cations now are that not less than $18,000,000 of those two sums will not be used and there is quite a possibility, the committee is advised, that the unobligated balance may reach $24,000,000. Therefore, under the committee's proposal, the way would be clear for proceeding with all of the projects embraced on the consolidated statement commencing on page 6 hereof which are not starred (*). Those so marked, aggregating $9,103,635, are all in augmentation of amounts allocated to projects under the Budget estimate. The extent to which they would participate in the reappropriated funds proposed by the committee would depend upon the amount by which the reappropriation exceeds the difference between $24,000,000 and $9,103,635.

Under the Budget estimate, as previously indicated, $3,000,000 is slated for continuing the canalization of the upper Mississippi River. While that entire amount is intended for work below St. Anthony Falls, the committee has specifically provided in the bill that no funds shall be expended for any work upon or incident to the project to extend the channel of the Mississippi River above St. Anthony Falls. This project was authorized in the River and Harbor Act approved August 26, 1937, subject to the final approval of plans by the Board of Engineers for Rivers and Harbors. The estimated cost of the project to the United States, in accordance with the plans recently approved by the Board, is $7,779,000 for new work, and $1,774,000 to local interests for necessary bridge modifications and adjustments to utility structures.

The committee can see no equity in assessing the latter expense against local interests which cannot possibly be beneficiaries of the extension, and yet that course would be necessary if the project were undertaken under existing authorization. It is the thought of the committee that the matter should be restudied both from the standpoint as to whether or not the project is justified at all, and from the standpoint of caring for the expense the work would occasion private interests.

FLOOD CONTROL

There follows a comparison of current appropriations with the estimates for 1939 and the amounts recommended in the accompanying bill:

In his message of April 14, 1938 (H. Doc. 594), the President stated: I recommend an appropriation of $37,000,000 over and above estimates for the immediate undertaking of flood control and reclamation works to be expended on projects already authorized by this or former Congresses.

The committee proposes the appropriation of $32,000,000 of that amount under the General Flood Control Act of June 22, 1936, as amended, which, added to the regular estimate of $50,000,000, would make available $82,000,000 for the fiscal year 1939 for going forward with projects now in course of prosecution and for the initiation of new projects which have authorization under such Act, as amended.

The remainder of the amount recommended in the President's message ($5,000,000) has been added by the committee to the original estimate of $26,000,000 for proceeding with flood-control projects in the alluvial valley of the Mississippi River under the act of May 15, 1928, as amended by the act of June 15, 1936.

GENERAL FLOOD CONTROL

Existing authorization provides for the construction of approximately 300 flood-control projects throughout the country, exclusive of the alluvial valley of the Mississippi River, at a total construction cost of not to exceed $344,000,000. The current appropriation, made up as indicated in the foregoing comparative table, is the first providing specifically for undertaking such work. There appears on pages 146-147 of the hearings a table showing the allocation of that money as of March 9, 1938.

The committee is without complete detailed information as to the proposed application of the amount it is recommending for appropriation for 1939. Of course, any set-up would not be binding, as the authorization act provides that works thereby adopted and authorized shall "be prosecuted, in order of their emergency as may be designated by the President." Moreover, there are contingent engineering factors involved as well as the matter of having the requisite assurances of local cooperation. The Chief of Engineers has presented his suggested application of the original Budget estimate of $50,000,000, and that appears on pages 150-152 of the hearings. Such table is prepared on two bases-the employment either of $1,000,000 or $4,000,000 of the $50,000,000 upon survey work. The original estimate contemplates $1,000,000.

The committee is recommending $6,000,000 for survey work, onehalf under the Chief of Engineers and the other half under the Department of Agriculture. The excess over the original Budget recommendation would be a charge to the $32,000,000 added in consequence of the President's message, which would leave $27,000,000 for employment both in augmentation of the amounts indicated in the table on pages 150-152 of the hearings and for the initiation of additional projects. The latter most likely would be selected from those embraced on the table appearing on pages 154-155 of the hearings, although other projects not therein appearing may become eligible for consideration by complying with requirements as to assurances of local cooperation.

FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES

The existing authorization permits of a total expenditure of $597,000,000. Roundly $333,000,000 of that amount has been appropriated, including $15,000,000 the present fiscal year by way of allotment of Emergency Relief funds, of which it appears that not more than $2,000,000 will be obligated. This bill provides for the reappropriation of that unused money to river and harbor uses. Therefore, there remains to be appropriated roundly $277,000,000. However, that figure may be very substantially reduced in consequence of a restudy being made of the so-called Eudora floodway project, substituted for the formerly authorized Boeuf floodway by the amendatory act of June 15, 1936. A sum in excess of $100,000,000 would be needed for the Eudora project.

There follows a statement of how the Chief of Engineers proposes to allocate the original estimate of $26,000,000:

Flood control, Mississippi River and tributaries, 1939 program for Budget

Main river:

recommendation of $26,000,000

The additional amount of $5,000,000 proposed by the committee would be employed in augmentation of the amounts in the foregoing table at the discretion of the Chief of Engineers. The total sum of $31,000,000 recommended for appropriation exceeds by about $3,000,000 the total average annual expenditure since the fiscal year 1928, and is about the equivalent of the amount that will be expended or obligated of the $45,000,000 made available the present fiscal year.

EMERGENCY FUND FLOOD CONTROL

For rescue work and for repair or maintenance of any flood-control work on any tributaries of the Mississippi River threatened or destroyed by flood the Budget and the accompanying bill propose an appropriation of $800,000, which exceeds the current appropriation by $500,000.

Since 1930 appropriations have ranged from $300,000 to $811,309, the latter amount having been appropriated for the fiscal year 1937. The average over that period has been $437,500.

This appropriation is made under authorization in the Flood Control Act of June 15, 1936, which authorizes a total appropriation of $15,000,000. The current appropriation of $300,000 is the first chargeable to such authorization.

The appropriation can be and has been supplemented in the past to a limited extent by drawing upon operating funds. Emergency relief funds also have been available in recent years.

UNITED STATES SOLDIERS' HOME

For the maintenance and operation of the United States Soldiers' Home, Washington, D. C., the Budget proposes an appropriation of $801,572. The committee recommends approval of this amount, which is $2,884 (net) less than the current appropriation.

This appropriation is a charge to the Soldiers' Home permanent fund, which had a balance in the Treasury on June 30, 1937, of $2,537,403.95, a gain over the balance at the close of the preceding fiscal year of $160,004.48. The fund was steadily diminishing prior to the act of February 13, 1936, requiring a monthly donation of 25 cents by each enlisted man and warrant officer on the active list of the Regular Army. The revenue from this source during the fiscal year 1937 amounted to $443,879.85.

The details of the estimate appear on page 60 of the hearings. There will be seen a number of relatively small variations between the amounts set up for the current fiscal year and the project allocations for 1939. The principal additions are $13,500 for rehabilitating and enlarging the chicken farm plant and $3,000 for the replacement of four motor vehicles.

There were 1,469 members on the rolls of the home on June 30, 1937. The daily average number present at the home during the last fiscal year was 1,283.

PANAMA CANAL

The current appropriation for maintenance and operation, sanitation, and civil government of the Panama Canal and Canal Zone is $10,568,760. The Budget proposed $10,307,125 for 1939, which is a reduction of $261,635. The committee proposes a further reduction of $57,000, consisting of $42,000 for the employment of additional lock forces in the event there should be an increase in traffic, and $15,000 of the $90,000 estimated for continuing the investigation of means of increasing the capacity of the Canal. For the current fiscal year $60,000 was set aside for the conduct of such investigation.

The details of the estimates are shown in tables commencing or appearing on pages 71, 85, and 86 of the hearings.