Actually, the controlling part of the channel is the presence of three ledges of rock-Boiling Rock, the rock just south of Badger Island, and the rock ledge at Gangway. Those rock ledges extend into the natural channel and reduce depths to something like 20 feet. Because of the rock conditions at these points, the oceangoing navigation and the Navy, which has a large establishment, Portsmouth Naval Base, on Badger Island-have been seriously handicapped. The channel is used only during the slack period at high tide, and navigation at night is practically ruled out.

The Corps of Engineers considered the removal of these rock ledges as well as the removal of another ledge in this vicinity. Our analysis brought us to the conclusion that the removal of the rock ledge here [indicating] was not economically justified. However; we felt that the removal of the ledges near Badger Island, Boiling Point, and the two at Gangway were economically justified.

The cost of the project is estimated in the document at $834,000. Based on today's costs, that would be escalated to $912,000. The benefits in the original document were $48,550; those benefits today are estimated to be slightly in excess of $51,000. The benefit-to-cost ratio as contained in the project document was 1.4 to 1. Based on today's cost and new benefits, it would be 1.59 to 1.

The traffic at Portsmouth Harbor in the year 1951 was in excess of 700,000 tons, largely composed of gasoline and petroleum products, coal, and gypsum.

If the bill under consideration is favorably considered by the Congress, we would suggest that the following changes be made in it:

In lines 6, 7, and 8, eliminate the language "a report made upon the preliminary examination and survey thereon" and insert "House Document No. 556, 82d Congress."

Mr. ANGELL. Does that complete your statement?

Colonel MILNE. Yes, sir.

Mr. ANGELL. Are there any questions by members of the committee? If not, we thank you.

Now, Mr. Merrow, you may proceed with your witnesses or may take this time to make a statement if you wish.

STATEMENT OF HON. CHESTER E. MERROW, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW HAMPSHIRE

Mr. MERROW. Mr. Chairman, I have just a brief word; then I would like to proceed with the witness list.

Mr. ANGELL. Very well.

Mr. MERROW. Mr. Chairman and members of the committee, on behalf of the witnesses who are here this morning, I wish to express our deep appreciation to the committee for giving us a hearing on H. R. 4938 for the improvement of Portsmouth Harbor and Piscataqua River. This is a companion bill to a bill introduced in the Senate by Senator Bridges, S. 198.

Over a period of several years, we have been working on this project, and in 1948 held a hearing in Portsmouth on it. I requested your committee to ask for a review resolution, which it kindly passed in 1949, and then a report of the engineers was made in 1952, as has been stated by Colonel Milne.

We feel that this improvement is important for the economic

development of the area in New Hampshire, reaching into Maine and Massachusetts. At the time of the hearing in New Hampshire, incontrovertible evidence was presented that this would be of great assistance to the economic life of the community, and I think the testimony here this morning will bear that out.

I hope this legislation can be considered favorably, and we are very happy to have the opportunity to present our case.

Without further statment, I wish to introduce, Mr. Chairman, Mr. Alvin F. Reddin, executive secretary of the New Hampshire Seacoast Regional Development Association.

Mr. ANGELL. Mr. Redden, we are very happy to have you here. STATEMENT OF ALVIN F. REDDEN, EXECUTIVE SECRETARY, NEW HAMPSHIRE SEACOAST REGIONAL DEVELOPMENT ASSOCIATION

Mr. REDDEN. Thank you. I am going to read this statement, and I have a copy of it for the record.

I am the executive secretary of the New Hampshire Seacoast Regional Development Association, an organization whose purposes are for promoting the economic interests of the seacoast region of New Hampshire and an accredited State agency. This association sponsored the project for improvements of Portsmouth Harbor and the Piscataqua River which would be provided by passage of H. R. 4938, a bill introduced by Congressman Chester E. Merrow.

I am a member of the New Hampshire State Advisory Committee for Portsmouth Harbor. I also represent the Portsmouth Chamber of Commerce. Recently I was appointed vice chairman for New Hampshire of the National Rivers and Harbors Congress.

I appreciate the opportunity of appearing before your committee in behalf of H. R. 4938.

Congressman Merrow has given you the background of the project. You are undoubtedly all familiar with Document No. 556 of the 82d Congress, 2d session, which contains the report of the Chief of Engineers, United States Army, with favorable recommendations for the project designated as Plan A.

I am advised that the Department of Defense and the Department of the Army have given favorable recommendations.

It is my privilege to present to you a brief in support of this bill. This has been prepared to provide you with the considerable up-todate information which I believe will be helpful to you in your considerations.

In order to avoid duplication and save time at this hearing, I believe it is advisable that I leave the details of some further information to those who are to follow me.

I have here the original copy of the briefs which have been prepared. It has the signatures of the Governor of New Hampshire, the chairman of the State Planning and Development Commission, the mayor of the city of Portsmouth, the president of the Portsmouth Chamber of Commerce, and my name as executive secretary of the association.

Mr. ANGELL. Without objection, this document will be received. Mr. REDDEN. It also contains supporting statements.

(The matter above referred to is as follows:)

BRIEF IN SUPPORT OF PROPOSED IMPROVEMENTS TO PORTSMOUTH HARBOR, N. H., AND PISCATAQUA RIVER, MAINE-N. H.

PROPOSED IMPROVEMENTS TO PORTSMOUTH HARBOR AND PISCATAQUA RIVERPORTSMOUTH, N. H.; KITTERY, MAINE

This brief contains a summary of evidence in support of advisability of modifying the existing projects on Portsmouth Harbor, N. H., and to determine whether any modification of the recommendation contained in the report on Piscataqua River, Maine and N. H. submitted in Senate Executive Document No. 44, 48th Congress, 1st session, is advisable at this time, and to support resolution adopted February 17, 1949, by the Committee on Public Works of the House of Representatives and the report and recommendations of the Chief of Engineers, United States Army, contained in Document No. 556, House of Representatives, 824 Congress, 2d session. The undersigned wish to be recorded as in complete accord with H. R. 4938, 83d Congress, 1st session, introduced by Hon. Chester Merrow, Congressman, 1st District, New Hampshire, and urge the passage of this bill and the appropriation of the necessary funds to implement it, as recommended by the Chief of Enginers, United States Army, in House Document 556, 82d Congress, 2d session.

Submitted July 17, 1953 by:

STATE OF NEW HAMPSHIRE,

By HUGH GREGG, Governor.

NEW HAMPSHIRE STATE PLANNING AND
DEVELOPMENT COMMISSION,

By JOHN PILLSBURY, Chairman.

NEW HAMPSHIRE SEACOAST REGIONAL

DEVELOPMENT ASSOCIATION,

By ALVIN F. REDDEN, Executive Secretary.

PORTSMOUTH, N. H., MAYOR AND COUNCIL,

By THEODORE R. BUTLER, Mayor.

PORTSMOUTH, N. H., CHAMBER OF COMMERCE,
By LAWRENCE E. MULLONEY, President.

SUMMARY OF EVIDENCE

NOTE. Except for the opening statement the following brief will follow the outline suggested in the questionnaire form submitted by the Corps of Engineers, United States Army, New England Division, dated June 24, 1949. The brief will endeavor to bring up to date the pertinent data contained in the report and recommendations of the Chief of Engineers, United States Army, found in Document No. 556, House of Representatives, 82d Congress, 2d session.

GENERAL ECONOMIC FACTORS RELATING TO PORTSMOUTH HARBOR AREA

The seacoast region of New Hampshire, with the port of Portsmouth as its focal point, is one of the most important industrial regions of the State because of its high percentage of skilled production workers, good transportation facilities and available industrial sites, including those adjacent to tidewater. It is felt that this region now offers the best potential for further industrial and commercial development, especially for heavy industry, of any in the State; but whether or not this development takes place depends to a large degree upon accomplishing badly needed improvements to Portsmouth Harbor and the Piscataqua navigation channel, principally those which are the subject of this hearing. The importance of this region to the economy of the State is substantiated by the fact that it has become one of the fastest growing regions from the point of view of numbers of new manufacturing industries which have located in the State during the period 1939-52.

In the tributary area to the port are some 60 industrial plants included in which are such recently established firms as the General Electric Co. in Somersworth, Clarostat Manufacturing Co. of Dover, and the Simplex Wire and Cable Co. in Newington. The combined employment of these three new concerns will shortly total 3,600 people, with a strong possibility that within a year this figure

may double. Further evidence of the industrial importance of the region will be found in the attached exhibits.

Late in 1952, a major manufacturer of submarine cable, much of which is in demand for defense purposes, acquired a sizable acreage of industrial land adjacent to tidewater at the head of the navigable water. This firm is now constructing a major industrial plant and dock facilities estimated to cost $2,750,000. With the development of this particular site, with such services as water supply, power, railroad facilities and other services, other industries have started preliminary negotiations for the acquisition of lands where water shipment of raw materials or manufactured products will be possible.

The above illustrate the types of manufacturing enterprises which are being established in the area, many of them seeking new tidewater locations. Tidewater oil storage and distribution centers constructed by several of the large oil companies, construction of a large new mercury vapor power generating plant by the Public Service Co. of New Hampshire and construction of a large new coal dock and coal distribution center for the Sprague Coal Co. are examples of the types of new commercial or distributive developments which have been established and are of great importance to the region and State.

With the current trend toward decentralization of industry from the highly congested metropolitan areas and the growing importance of foreign sources for raw materials which must be carried by water, the State of New Hampshire can expect further industrial development in both light and heavy industry. Furthermore, we expect that with improvements to the harbor, the distributive facilities for coal and petroleum products can be enlarged and improved thus providing substantial savings to industry and other consumers of these products throughout New Hampshire, Vermont, and Maine.

The population growth of the area tributary to the port is indicative of its growing importance. The growth during the census period 1940-50 was somewhat over 20 percent with several communities showing growth trends over 30 percent and as high as 54 percent.

Since the seacoast region, and principally the area adjacent to Portsmouth Harbor and the Piscataqua River, offers many of the best potential sites for this development, it is important that the hazards to navigation, which now exist and limit the amount and size of shipping which can serve the area, be eliminated at the earliest possible date.

The following data follows an outline of presentation prepared for the United States Army Corps of Engineers. Reference will be made from time to time to House Document 556, 82d Congress, 2d session, containing the recommendations and findings of the Chief of Engineers, United States Army, and which recommendations this brief supports.

1. State full description of improvement desired, and furnish map or sketch showing its location and dimensions.

Specifically this project calls for the removal of obstacles to navigation as listed hereinafter to depths of 35 feet at mean low water: (1) Removal of Gangway Rock at the entrance to Portsmouth Harbor. (2) Removal of rock at the southwest point of Badgers Island. (3) Removal of Boiling Rock in the Piscataqua River. Additional improvements as might be required to improve navigation into Portsmouth Harbor and up the Piscataqua River. The accompanying map, reproduced from House Document 556, 82d Congress, 2d session, indicates the location of the proposed improvements.

2. What is the necessity for such improvements? The necessity for these improvements is based on:

(1) The need to facilitate the movement of shipping in and out of Navy Department facilities at the Portsmouth Naval Base; including fuel oil ships and naval vessels.

(2) Increased use of Portsmouth Harbor and the Piscataqua River in the transportation of coal for electric power development and for distribution throughout northern New England.

(3) Growing use of the shores of the Piscataqua as a terminal point for storage and distribution of petroleum products.

(4) Increased and continuing industrial and commercial development of sites adjacent to the shores of the Piscataqua.

(5) Availability of sites on tidewater for industrial and port development together with excellent rail and highway facilities to permit easy transshipment of goods overland.

(6) The very marked population growth of the area, indicative of a healthy economic climate for further industrial growth.

The area around Portsmouth Harbor and the Piscataqua River, both in New Hampshire and Maine, offer excellent opportunities for industrial expansion in the future which will be stimulated by the increase in electric power and by adequate supplies of oil. The growing use of the Piscataqua and Great Bay in fisheries and recreational use add to the total significance of the economic development of the area.

3. State whether difficulties are now experienced in navigating vessels in the waterway and describe these difficulties if any.

A public hearing before Congressman Chester E. Merrow of New Hampshire on the development of Portsmouth Harbor held at the Rockingham Hotel in Portsmouth, N. H., on December 22, 1948, and the record of public hearing held by the New Hampshire Seacoast Regional Development Association at the Rockingham Hotel in Portsmouth on January 14, 1949, give ample evidence that navigating vessels of the 10,000-ton class and over, in the harbor and river is extremely hazardous. The report cites two instances of vessels which have hit one or the other rock. They indicate that because of the existence of the above-mentioned ledges, vessels of over 500 feet have extreme difficulty in maneuvering. The economic loss from one accident in which the vessel struck a ledge in order to avoid collision with another vessel, amounted to $300,000 in damage plus an estimated $4,000 a day for 30 days while the vessel was laid up. Added justification for removal of the hazards is found in the danger from fire should a petroleum-carrying tanker become involved in a service accident and spread oil or gasoline on the waters of the river and harbor. 4. What specific savings could be effected by the desired improvements? The savings which could be effected can be measured in insurance dollars since, as is pointed out, the insurance companies will increase the rates on ressels using the harbor unless the impediments are removed. The use of the harbor at the present time by large vessels is limited to a few hours each day, but the harbor could be utilized at almost any time if the suggested improvements together with navigation aids were provided. Furthermore, as has been pointed out, a large mercury vapor plant has been developed for production of electric power. In the past 2 years, the construction of new dock facilities for the unloading of coal for use in the new powerplant, has brought in a new coal-distribution service, which, because of its increased capacity, is now offering savings of 90 cents per ton to bulk users of coal in the State. The lower costs for coal are further reflected in lower costs for electric power. The expected improvements to navigation will permit larger tankers to be brought in and will result in the construction of more storage capacity for petroleum products. These developments will also result in savings to the ultimate consumer.

5. What new business will the desired improvement produce? Kindly submit complete statement of data, all on an annual basis, as follows:

(a) Kind of business.

(b) Anticipated increase in employment and expenditures if any.

The new powerplant has a capacity of 127,000 kilowatts currently and plans are to increase this capacity in the near future. This will be an important factor in the location of new industry in the area, as stated in the opening statement of this brief. It is estimated that the present oil shipments which amount to 110,000 tons at the Atlantic Terminal alone, would be increased to nearly a million tons annually. Comparable increases in tonnage to other oil terminals are anticipated. Increased tonnage coupled with the proposed pipeline to the interior would result in savings to the people and industries of the State.

Currently, there is under construction at tidewater a $2,750,000 manufacturing plant and dock structure (Simplex Wire & Cable Co.) for the manufacture of submarine cable. This is the first industrial plant to locate in the tidewater area along the Piscataqua. With the improvements to the site which include a dock structure capable of handling the larger oceangoing vessels, railroad spurs, water supply, power, etc., the adjoining sites are already being viewed by other manufacturers who are seeking tidewater locations in uncongested

areas.

Furthermore, a recently completed study by the A. D. Little Co., Inc., of Boston, made for the Federal Reserve Bank of Boston, suggests some very real opportunities for industrial development at tidewater sites in New England. These include refining of petroleum products, cement manufacture, fabrication of steel products, any of which are potentialities for Portsmouth.