the area grows the full utilization of the Hillsboro River becomes more necessary. It is my understanding that if this project is approved, it will become a part of the overall Tampa Harbor project, already authorized. Your approval of the Hillsboro River project will contribute substantially to the growth and progress of the entire Tampa Bay area.

If there is any further information which I can give the committee, I shall be glad to do so.

Mr. CAMPBELL. The port of Tampa is Florida's largest port. In 1952 the report of the United States Army Engineers showed there were 7,422,625 tons of incoming and outgoing tonnage from the port of Tampa.

The Hillsboro River flows right through the heart and center of the City of Tampa. It is very vital to us living down there from the standpoint of economy, sanitation and health because of the flood conditions in that area. I have with me today Mr. Ingram, chairman of our county port authority. He has some pictures on these conditions and since they say 1 picture is worth 10,000 words I will let Mr. Ingram make his statement to you.

Mr. ANGELL. Mr. Ingram, we will be glad to hear from you.

STATEMENT OF J. M. INGRAM, CHAIRMAN OF THE TAMPA PORT AUTHORITY, TAMPA, FLA.

Mr. INGRAM. My name is J. M. Ingram, chairman of the Tampa Port Authority. I am here in behalf of the port authority.

I have a letter here from our engineers to myself which I would like to read to the committee regarding this project between Florida Avenue and the dam, which goes through the Silver Springs district, which is in the northern part of Tampa. It is dated February 9, 1954, and reads as follows:

With reference to the proposed modification to plan D, paragraphs 69 and 70, page 38, House Document No. 567.

This modification consists of removing snags, wrecks, pilings, and similar obstructions from the reach of the Hillsboro River between the upstream end of the existing project to the Florida Avenue Bridge and the city waterworks dam for flood-control purposes.

Attention is called to page 3, paragraph 6, of this document in which, “Local interests request deepening to 3 feet of the natural channel from Florida Avenue Bridge to the dam in addition to the removal of all obstructions in this reach." It is recommended that the above modification include this deepening of the channel so as to alleviate flooding of homes and property along this section of the river, all as indicated on the photographs included herewith.

At this time I have quite a few photographs which I would like to present.

Mr. ANGELL. They may be presented for the purposes of the record. Mr. INGRAM. It continues as follows:

Investigation will show that this part of the city is building up rapidly, both residentially and commercially, therefore damage from flooding will now be more costly than indicated on pages 21 and 22 of the document as $35,000, which was about 8 years ago. This damage from flooding could now well be double

that amount for the same size flood.

While the clearing of this river section by snagging will be of material benefit the deepening of the reach to at least 3 feet at the shoals is definitely required and should be done together with the snagging operation as it could no doubt be done much cheaper in this manner.

I would like to say right here that there are quite a few places in the reach between Florida Avenue and the dam which are only about

3 inches deep at low tide, and you can hardly get a rowboat over them. Taking out the logs and snags we do not think will correct the flooding of these homes up and down the river.

Mr. ANGELL. Are you in favor of the project or opposed to it?

Mr. INGRAM. We are in favor of the flood control but we would like to see the river dredged down to a depth of 3 feet deeper on these bars while they are taking the snags out. We do not feel that will control the floods by just taking the snags out.

At the same time we ask if it is possible to grant enough money to deepen the river and channel 3 feet, which would take away the water and which I think would control the floods better.

Mr. ANGELL. Does that complete your statement?

Mr. INGRAM. Yes, sir.

Mr. ANGELL. Are there any questions of Mr. Ingram by any member of the committee?

(No response.)

Mr. ANGELL. If not we thank you, sir, for your statement. The pictures will be received and the committee will have access to them. Also the statement which you were reading, without objection, may be made a part of the record at this point.

(The document referred to is as follows:)

ERICKSON ENGINEERING CO.,

February 9, 1954.

HILLSBOROUGH COUNTY PORT AUTHORITY,

Tampa, Fla.

Attention: Mr. J. M. Ingram, Chairman.

GENTLEMEN: With reference to the proposed modification to plan D, paragraphs 69 and 70, page 38, House Document 567, this modification consists of removing snags, wrecks, piling, and similar obstructions from the reach of the Hillsborough River between the upstream end of the existing project to the Florida Avenue Bridge and the city waterworks dam for flood-control purposes. Attention is called to page 3, paragraph 6, of this document in which "local interests request deepening to 3 feet of the natural channel from Florida Avenue Bridge to the dam in addition to the removal of all obstructions in this reach."

It is recommended that the above modification include this deepening of the channel so as to alleviate flooding of homes and property along this section of the river, all as indicated on the photographs included herewith. Investigation will show that this part of the city is building up rapidly, both residentially and commercially; therefore, damage from flooding will now be more costly than indicated on pages 21 and 22 of the document as $35,000, which was about 8 years ago. This damage from flooding could now well be doubled that amount for the same size flood.

While the clearing of this river section by snagging will be of material benefit, the deepening of the reach to at least 3 feet at the shoals is definitely required and should be done together with the snagging operation, as it could no doubt be done much cheaper in this manner.

The cost of deepening the present river channel to 3 feet from Florida Avenue Bridge to the dam as required at the shoal areas would have to be determined by survey to ascertain the yardage to be removed.

Yours very truly,

ERICKSON ENGINEERING CO., OLE P. ERICKSON, Consulting Engineer, Hillsborough County Port Authority. Mr. CAMPBELL. I would like for you gentlemen to take a look at these pictures.

Mr. ANGELL. Thank you, sir. Are there any further witnesses on this project?

STATEMENT OF HON. ROBERT L. F. SIKES, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA-Resumed

Mr. SIKES. Mr. Chairman, I want to state very briefly that I have familiarized myself with this project. I believe it is a justifiable project. I recommend it in its entirety, and I want to add this, Mr. Chairman. I have known Courtney Campbell for a long time. He is an industrialist and businessman and a very successful one. He does not believe in spending money unless he can see that there will be beneficial returns from it. I know he feels the same way about the Government's money, and he would not be here recommending this project if he did not believe it a proper and a justifiable project.

Thank you.

Mr. ANGELL. Thank you. If there are no further witnesses, that completes the testimony on this project.

Mr. CAMPBELL. I know that Senator Holland would like permission to insert a statement in the record on this project.

Mr. ANGELL. Without objection, that statement may be incorporated in the record at this point.

(The statement of Senator Holland is as follows:)

STATEMENT OF SPESSARD L. HOLLAND, UNITED STATES SENATOR FROM THE

STATE OF FLORIDA

Mr. Chairman, I appreciate the opportunity to file a statement in support of the modification of the Hillsborough River in Florida, as recommended by the Corps of Engineers in House Document 567, 81st Congress.

This modification is necessary in order to decrease flood danger in that area between the Florida Avenue Bridge and the city waterworks dam in the city of Tampa, Fla. This section of Tampa is subject to infrequent major floods which severely damage this highly urban area and cause destruction of roads, bridges, and other improvements. The most damaging flood in recent years occurred in 1933 when a dam, formerly located at the site of the waterworks dam, failed. The total loss at that time due to the flood was $344,500, of which $129,000 was for the loss of the dam. The city of Tampa has grown to such an extent in recent years that a flood of that magnitude in that area at this time would cause much greater damage.

The proposed modification provides for the removal of snags, wrecks, piling, and similar obstructions from the reach of the Hillsborough River between the Florida Avenue Bridge and the city waterworks dam at an estimated first cost to the Federal Government of $16,560, with no additional allowance for annual maintenance costs in addition to that now authorized. Under this plan, local interests would be required to give assurances that they would

(a) Provide without cost to the United States all lands, easements, and rightsof-way necessary for the construction of the project;

(b) Provide at their own expense all necessary alterations to structures and utilities:

(c) Hold and save the United States free from damages due to the construction works; and

(d) Maintain the cleared channel after completion in accordance with regulations prescribed by the Secretary of the Army.

Mr. Chairman, the benefit-to-cost ratio on this project is 2.43 to 1, and in my opinion it is clearly justified by House Document 567. I hope the committee will give it favorable consideration.

RICE CREEK, PUTNAM COUNTY, FLA.

Mr. ANGELL. We will proceed to the next project which is Rice Creek in Putnam County, Fla. Colonel Milne, the committee will be glad to hear you.

Colonel MILNE. Mr. Chairman, the project on Rice Creek, Putnam County, Fla., is covered in House Document No. 446 of the 82d Congress, 2d session, as authorized by the River and Harbor Act of July 24, 1946.

Rice Creek is a small stream of water rising in the east and north part of the State of Florida. It flows into the St. Johns River near the city of Palatka, below Jacksonville, Fla.

The area it drains is predominantly agricultural. A large paper mill is now operating in the area of Rice Creek. There is no Federal project at Rice Creek at the present time.

In the year 1952 some 26,000 tons of commerce utilized the creek. It was predominantly petroleum destined for the Hudson Pulp & Paper Corp.

The controlling depth in Rice Creek at the mouth is a little over 6 feet. The lack of adequate depth has created a great deal of difficulty to commerce that desires to utilize Rice Creek. Accordingly, local interests have requested that consideration be given to the deepening of the creek to make it suitable for barge traffic.

The Chief of Engineers investigated the area thoroughly and has come to the conclusion that the provision of a channel 12 feet in depth and 100 feet in width from the like depth in the St. Johns River, and then tapering down to 75 feet in width, and carrying on for some 31⁄2 miles up Rice Creek to the vicinity of the Hudson Pulp & Paper Corp., is economically justified.

In addition he also recommends that a certain amount of easing of the bends be accomplished to facilitate the movement of commerce. Those recommendations have been referred to the State of Florida and that State indicated its concurrence.

Likewise they have been referred to the Bureau of the Budget, and I would like to read from the Bureau of the Budget's letter. I am now quoting from a letter of the Bureau of the Budget dated February 19, 1952.

The report also indicates that several letters have been received from the Fish and Wildlife Service advising that gross pollution from the pulp and paper plant has resulted in deterioration of fishery habitat and threatens fishery resources of the St. Johns River. In its letter dated August 19, 1948, this agency states:

"We are opposed in principle to the expenditure of Federal funds on a project that would benefit an industry which, in turn, is destroying natural resources through its operations. There is reasonable evidence in this case that remedial measures, as recommended in the report of the Florida State Board of Health, would at least alleviate the effects of pollution from the pulp and paper mill in question. We, therefore, recommend that if possible the development of Rice Creek navigation if approved by your agency be made contingent upon adoption by the Hudson Pulp & Paper Corp. of the recommendations of the Florida State Board of Health as a local contribution to the project."

No requirement concerning the Hudson Pulp & Paper Corp.'s cooperation in the adoption of remedial measures to alleviate pollution has been included in the local contributions recommended.

The report of the Chief of Engineers recognizes the fact that the major part of the estimated benefits would accrue to a single corporation but states that these benefits would have somewhat "of a general aspect based on the assumption that any savings in transportation costs would be distributed to the consumers of the products through lower selling prices." There is little assurance, however, that the benefits would be passed on to the public in the manner assumed. As stated in our letters October 20, 1944, and December 2, 1948, on Agate Bay Harbor, Minn., and Detroit River, Mich., respectively, the President has questioned seriously the policy of Federal improvement of waterways when the

benefits accrue to a single organization. While the Hudson Pulp & Paper Corp. will be required to contribute 50 percent of the cost of constructing the channel, it will not be required to make any contribution toward the maintenance of the main channel nor to cooperate in the provision of remedial measures designed to alleviate pollution.

In consideration of the above comments, I am authorized by the Director of the Bureau of the Budget to advise you that, while there would be no objection to the submission of the report to Congress, on the basis of the information now available to us, authorization of the proposed improvements to Rice Creek would not be in accord with the program of the President.

The cost as recommended in the original House document shows a Federal cost of $68,150 and a non-Federal cash contribution of a like amount, and the furnishing of certain lands and rights-of-way valued at $1,050, for a grand total of $137,350.

Those costs revised to the fall of 1953 show a Federal cost of $82,200 and a like contribution from local interests and a cost of land and rights-of-way, also non-Federal, of $1,400, for a grand total of $168,200.

The annual charges based on the revised costs are $7,000 of which approximately $760 represent an annual maintenance dredging charge.

The benefit-cost ratio, again based on the revised cost is 10.2 to 1.

I would like to point out to the committee that those benefits as originally estimated in the House document were 3.58 to 1. As a result of a large expansion of the Hudson Pulp & Paper Corp. we now estimate transportation savings will produce a benefit-cost ratio of 10.2 to 1.

The existing Rice Creek, with its controlling depth of just a little over 6 feet is not at all conducive to the generation of any appreciable amount of commerce. That commerce which is presently moving on the waterway is entirely petroleum products, and represents only a small fraction of the actual petroleum that is required by the corporation. If the channel were improved in accordance with the recommendations of the Chief of Engineers we estimate that there would be a very substantial movement of two commodities, petroleum and pulpwood.

The savings on those two commodities is estimated at approximately 39 cents a ton on the pulpwood and about 21 cents a ton on the petroleum products. On the basis of the potential commerce that we estimate will move on the waterway we believe that the project is economically justified.

Mr. ANGELL. Colonel Milne, you say that the benefit-cost ratio is 10.2 to 1. What portion of that is attributable to the private industry operating there?

Colonel MILNE. The commerce that would move on this waterway as near as we have been able to determine and estimate is all destined for the Hudson Pulp & Paper Corp.

Mr. ANGELL. So that practically all of that benefit would accrue to the private industry?

Colonel MILNE. That is correct, sir.

Mr. ANGELL. Are there any questions on my left?

(No response.)

Mr. ANGELL. On my right?

(No response.)

Mr. ANGELL. Thank you, Colonel. Congressman Matthews, the committee will be very glad to hear from you at this point.