Mr. ANGELL. Will you point out on the small map at the corner just where that is?

Colonel MILNE. It runs from just east of Lake Michigan at the northern tip of the lower peninsula across the peninsula and enters into Lake Huron at the town of Cheboygan. It is about 35 miles long. Mr. ANGELL. Thank you.

Colonel MILNE. On this larger scale map I think you get a much better picture of the waterway. You see it is a series of lakes connected by the Crooked River and in turn by the Indian River, and through the Black River into Cheboygan.

There is no Federal project authorized for this inland waterway. However, we have utilized our emergency authority and in the year 1948 did a small amount of emergency dredging in an effort to restore some of the depths in the Crooked River.

There is no commercial commerce traversing this waterway. However, there is a tremendous number of lake craft. The local people estimate that as many as 1,200 recreational vessels use that waterway during the summer season. Because of the shoal condition of the waterway, the crooked streams and the lack of a clearly defined channel, navigation interests have experienced considerable difficulty. For that reason local interests have requested that consideration be given to improving the waterway to make it more useful for the recreational vessels.

They have suggested that consideration be given to providing a channel some 7 feet in depth.

The Chief of Engineers made a careful investigation of the area and has come to the conclusion that a modification in the interests of navigation is economically feasible. However, he does not feel that a channel 7 feet in depth is needed. He recommends instead that a channel 5 feet in depth and some 30 feet wide be provided for the inland waterway over its entire length. He also recommends that the project be known by this name.

Those recommendations of the Chief of Engineers have been furnished to the State of Michigan, who indicated their concurrence. They have likewise been furnished to the Bureau of the Budget, who indicated that they had no objection to the transmittal of this report to the Congress.

Based on the original project document the costs were estimated to be a Federal cost of $150,850 and a non-Federal cost of $85,000, for a total of $235,850.

Those costs revised to the fall of 1953 show a Federal cost of $225,000 and a non-Federal cost of $85,000, for a total of $310,000.

Based on the revised cost estimates the annual charges are estimated to be $17,960, of which $3,500 represent an annual maintenance charge. Again based on the revised costs the benefit-cost ratio is 1.57 to 1. Local cooperation requires the furnishing without cost to the United States of all necessary lands, easements, rights of way and suitable spoil disposal areas for initial work and for subsequent maintenance when and as required; hold and save the United States free from damages due to the construction and maintenance of the project; establish a competent and properly constituted public body empowered to control the use and development of boating facilities along the inland route; provide and maintain suitable mooring, supply and landing facilities which shall be open to all on equal terms; maintain and oper

ate the navigation lock in Cheboygan River in a manner satisfactory to the Secretary of the Army; and make a cash contribution of approximately 36 percent, but not to exceed $85,000 of the first cost of construction of the project works.

I would like to return in just a moment to that last item of local contribution.

Local interests have indicated a willingness to comply with the items of local cooperation that I have just mentioned.

The inland waterway is a historical waterway and it has become quite famous as a recreational center. As I said, local interests have indicated that it is used by not less than 1,200 vessels. In our study we made a sampling of the craft and contacted over 400 individuals who owned boats.

Mr. ANGELL. What type of craft use the waterway?

Colonel MILNE. It is recreational craft varying in draft from 2 feet to 5 feet.

Mr. ANGELL. Is it limited to recreational craft, Colonel?
Colonel MILNE. It is limited to recreational craft, sir.
Mr. ANGELL. What is the present depth of the channel?

Colonel MILNE. The controlling depth is 4 feet, Mr. Chairman.
Mr. ANGELL. How long has it been in existence?

Colonel MILNE. It is a historical water route, sir.

Mr. ANGELL. But it required artificial channels connecting the lakes originally, did it not?

Colonel MILNE. No, sir. These are natural rivers connecting each of these lakes. The drainage of the entire area flows in an easterly direction and enters into Lake Huron. It is controlled by a lock which was built by private interests at Cheboygan.

Mr. ANGELL. Originally did the water flow north into the lake there?

Colonel MILNE. Yes, sir. There is no entrance from this waterway into Lake Michigan.

We contacted a number of people who utilized the waterway during the summer season and our study has indicated that, due to this shallow depth in the very meandering and crooked stream plus the lack of a clearly defined channel, navigation interests are experiencing considerable difficulty. They experience extensive damages to their vessels each year and cannot make full use of the craft during the sum

mer season.

Our analysis indicated that the benefits that would accrue make this improvement economically justified, and accordingly we have recommended such improvements.

Since the document was prepared there has been a change in handling projects of this type. This change would require a larger cash contribution. The project document shows a cash contribution of 36 percent, but not to exceed $85,000. Projects now being studied and previously discussed with this committee during these present hearings, show greater local participation. If the new principles were applied to this project, the cash contribution would be increased to 66 percent or approximately 206,000.

Mr. ANGELL. That would exceed the Federal costs?

Colonel MILNE. Yes, sir.

Mr. ANGELL. Which is $310,000.

Colonel MILNE. The total cost of this project is $310,000.

Mr. ANGELL. That is due to the fact that it is used completely for recreational craft?

Colonel MILNE. That is correct, sir.

Mr. ANGELL. Are there any questions by members of the committee? Mr. MACHROWICZ. You have not contacted the State of Michigan authorities on that revision of the figures, have you?

Colonel MILNE. No, sir.

Mr. ANGELL. Colonel, may I ask, is the Chief of Engineers recommending that this project be approved and requiring that additional contribution by the local interests?

Colonel MILNE. To be consistent with recent recommendations made to the committee, the local cash contribution would be increased to 66 percent.

Mr. ANGELL. Again, what amount in dollars is that, Colonel?
Colonel MILNE. That would be roughly $206,000.

Mr. WATTS. Mr. Chairman, may I ask a question?

Mr. ANGELL. Yes, Mr. Watts.

Mr. WATTS. Is this a rather fast-flowing stream through there? Colonel MILNE. No, sir. It is not. The drainage area of the Crooked River, is a flat marshy land. It is not a fast-falling stream. Mr. WATTS. The deepening of the channel, then, will not affect the flow of the water out of Lake Michigan, will it, Colonel?

Colonel MILNE. It will not, sir. In the first place, Mr. Watts, there is no connection between Lake Michigan and this inland waterway. The flow of water is entirely local drainage not influenced by Lake Michigan. Furthermore, the flow of water out of this inland waterway is controlled by a lock at the mouth of the Cheboygan River.

Mr. WATTS. In other words, you do not go by boat from Lake Michigan?

Colonel MILNE. You cannot go from Lake Michigan into the Inland Waterway. You can come through Lake Huron.

Mr. WATTS. Yes. I thought it looked like there was a direct connection.

Colonel MILNE. No, sir. There is not.

Mr. WATTS. If some boats that are on there draw a draft of 5 feet, would a 5-foot channel be sufficient to take care of them?

Colonel MILNE. The majority of the boats have drafts of less than 5 feet. There are some boats that have as much as 5, and a few that have more than 5. But the greater part of the using craft could utilize and would utilize a 5-foot channel.

Mr. WATTS. Would it be necessary to do any dredging in the lakes? Colonel MILNE. Very little sir. The dredging would be confined almost entirely to the Crooked River and Indian River. A little dredging in Mullett Lake, but most of the lakes are rather deep. I believe Crooked Lake has a depth in places of 1,000 feet.

Mr. WATTS. Is the silting up of the parts you dredge presenting any problem?

Colonel MILNE. We believe it would require annual maintenance. We estimate $6,000 a year as an annual maintenance which should keep the inland waterway open to the 5-foot depth.

Mr. WATTS. Would there be any local contribution on the annual maintenance?

Colonel MILNE. In computing the local cash contribution we have considered the annual Federal maintenance. And the local contribution does include their proportionate share of maintenance.

Mr. WATTS. You mean the 66 percent would take care of the maintenance from now on?

Mr. ANGELL. Colonel Milne, did I understand you to say that craft at the present time cannot proceed from Lake Michigan clear through to Lake Huron?

Colonel MILNE. No, sir. Not through the inland waterway. And they would not be able to under the recommendations of this project either.

Mr. ANGELL. But there would be a channel all the way through, wouldn't there?

Colonel MILNE. No, sir. It would run from Lake Huron through the Crooked River and end at Burt Lake.

Mr. ANGELL. And there is no channel from there on into Lake Michigan?

Colonel MILNE. No, sir. There is none.

Mr. ANGELL. And none contemplated?
Colonel MILNE. None contemplated.

Mr. ANGELL. Is there a natural waterway or stream through there now?

Colonel MILNE. There is no connection at all between the inland waterway and Lake Michigan.

Mr. ANGELL. Are there any further questions of Colonel Milne?
Mr. WATTS. I want to ask one.

You say the average depth of the channel now is 4 feet?
Colonel MILNE. Yes.

Mr. WATTS. Is it less than that in some places?

Colonel MILNE. No, sir. That is the controlling depth, 4 feet. Mr. WATTS. How many boats out of the 1,200 use a draft of over 4 feet?

Colonel MILNE. This will not answer your question specifically but it may give you some idea. In 1949, something in excess of 2,000 vessel trips; 2 were of drafts in excess of 5 feet, and 14 were over 4 feet 11 inches.

Mr. WATTS. But we do not know what was over the 4 feet?

Colonel MILNE. I have no data on that. On 5 feet and over I only have 2 vessel trips.

Mr. WATTS. That was probably brought about by the fact that that they could not make it.

Colonel MILNE. We studied the provision of a deeper channel of 7 feet, but it was not in our opinion economically justified.

Mr. WATTS. I was wondering if there was enough traffic of boats over 4 feet in draft. I assume you investigated that to determine whether or not it was justifiable to extend the money to deepen it. If you have only a few boats that are going to use it that is one thing, but if you have many that is another thing.

Colonel MILNE. As a matter of fact, in our study of the 7-foot channel we discussed that very thoroughly with local interests, pointing out what a 7-foot channel would cost, and the lack of justification. It was the unanimous opinion of local interests that a 5-foot channel would adequately serve the needs of the bulk of the using craft.

Mr. WATTS. It is your opinion 4 feet would serve the bulk of the boats now using it?

Colonel MILNE. Four feet? No, sir.

Mr. WATTS. That is what I am trying to get at.

Mr. ANGELL. Are there any further questions of Colonel Milne? (No response.)

Mr. ANGELL. We thank you, Colonel.

Senator Potter has requested permission to have his testimony inserted in the record at this point. He is unable to be present at this time but may be here later. Without objection, his testimony will be extended at this point in the record.

(The statement of Senator Potter is as follows:)

STATEMENT BY UNITED STATES SENATOR CHARLES E. POTTER (REPUBLICAN OF MICHIGAN) RE CROOKED AND INDIAN RIVERS, MICH., PROJECT

Mr. Chairman, I wish to thank you for the opportunity to reiterate my strong feelings in favor of the immediate development of Michigan's famous inland water route.

It is a well-known fact that our economy in northern Michigan is mainly dependent upon the tourist trade. Not so many years ago, and for many years before that, the inland route, with its interlocking streams and lakes, was one of our greatest tourist attractions. At one time, steamers carried thousands of summer vacationers through this scenic paradise from Conway on Crooked Lake to Cheboygan on Lake Huron and return. Hundreds of pleasure craft ply our Great Lakes, taking advantage of the safety provided by our chain of refuge harbors. When they get into our vacation land they seek to leave the big water and go into our smaller inland lakes for an extended vacation. Craft owners have been pressing for improvements to the inland route for the past decade. Many resort hotels and private summer homes are located in the area with a large State park along the south shore of Burt Lake. Public and private docks as well as marine railways for servicing and storing recreational craft are among the facilities available on this waterway.

In view of the importance of the foregoing and because of existing marine hazards, such as shoals, poorly defined channels, and the absence of aids to navigation, we are in urgent need of improved facilities. These improvements would not involve a heavy expenditure on the part of the Federal Government. On the contrary, so strong are our interests to improve the inland route that we and many of our summer vacationers have over the past 8 years put aside a sizable fund to help underwrite this imperative and much needed development. You are familiar with the recommendations of the Corps of Army Engineers on this project. The total cost of the project is indeed nominal in relation to the economic benefits which would result for northern Michigan. Our major concern at the moment is to obtain the approval of this committee and get things underway. Other proponents who will speak here today will give your committee detailed information as to rights-of-way and attendant requirements. We may be confident of wholehearted local cooperation.

This small investment will improve the scenic beauty of our great inland water route; it will remove existing navigation difficulties, and, most important, it will increase the economy of the area from threefold to tenfold. I, therefore, respectfully urge that this committee give this project its most prompt and favorable consideration.

I should like to have incorporated into the record a letter from Mr. Charles T. Lathers, president, Inland Water Route Improvement Association, Inc.

Hon. CHARLES E. POTTER,

Senate Building, Washington, D. C.

PETOSKEY, MICH., February 6, 1954.

DEAR SENATOR POTTER: We understand that the improvement of the Inland Waterway is coming up for a hearing before the Subcommittee on Rivers and Harbors of the House of Representatives, some time next week.

There is now, and has been from the beginning, keen interest among, not only local people, but our good resorters, in having this improvement completed. We feel that this project is somewhat different than the usual waterway develop