Mr. ANGELL. Colonel Milne gave a non-Federal contribution of $37,400.

Colonel MILNE. Yes, sir. The non-Federal participation that is recommended in the document is primarily for section A. It consists almost entirely of the furnishing of lands and rights-of-way for this widened channel. It has nothing to do with the money Mr. Ford is talking about for section B.

Mr. FORD. I am glad to have that clarified. I was not certain myself. I might say with reference to the $37,000 that part of that land is currently owned by the Coast Guard. The additional land in here is privately owned. The contribution of $45,500, or 25 percent, is with reference to section B up here. That is over and above anything that was heretofore mentioned.

Mr. ANGELL. How is that made up? In land, or is any of it in cash? Mr. FORD. It is my understanding that will be all in the form of a cash contribution, to be used against the estimated cost of $182,000 for section B, but it might be considered a contribution to the cost of both part A and part B.

Mr. ANGELL. Colonel Milne, may I ask is that in addition to any amounts you reported?

Colonel MILNE. Yes, sir. In our report, Mr. Chairman, local contribution is confined to furnishing of lands and rights-of-way-no cash contribution. This $45,000, Mr. Chairman, that Mr. Ford is talking about, is something in addition to what we have asked for.

Mr. ANGELL. Congressman Ford, what is the population of Holland?

Mr. FORD. I believe the latest figures are around 16,000.

Mr. ANGELL. And they are ready to make a firm commitment on this contribution?

Mr. FORD. Yes, sir.

Mr. Maentz and Mr. Bosch, who are here, have minutes of the city council meeting, indicating that proper local authorities have agreed to make this contribution. The principal benefits of section B are first for the municipal powerplant. The powerplant supplies the city of Holland and parts of the surrounding area. In addition there is a very large, privately owned dock and other transportation facilities, that handle tremendous amounts of coal, cement, and commercial fertilizer. Mr. ANGELL. The powerplant is owned by the municipality? Mr. FORD. By the city of Holland-the board of public works. In addition there is a new Parke-Davis pharmaceutical plant, which is on this side of the channel. They have a plant there primarily for the development and production of some of these new drugs. But there are additional sites available there that could be developed, providing this channel extension is authorized.

Unless there are further questions, I would like to put Mr. Randall Bosch on the stand. He is the vice president or vice chairman of the board of public works in Holland. I believe he is prepared to make a proper statement as to the contribution by local interests for section B. Mr. ANGELL. The committee would be very glad to hear him. First I will ask if there are any questions by members of the committee of our former colleague on the committee, Congressman Ford! (No response.)

Mr. ANGELL. If not, you may proceed to introduce your witnesses. Mr. FORD. I would like to introduce at this time, Mr. Randall C.

Bosch, who is on the board of public works, and is authorized to make a statement on behalf of the city of Holland.

Mr. ANGELL. Mr. Bosch, the committee is very glad to hear you. You may be seated, if you desire.

STATEMENT OF RANDALL C. BOSCH, VICE PRESIDENT, BOARD OF PUBLIC WORKS, HOLLAND, MICH.

Mr. Boscн. Mr. Chairman and members of the committee and Congressman Ford. On behalf of the Board of Public Works of the City of Holland, Mich., and the Common Council of the City of Holland, Mich., we appreciate very, very much, this opportunity to present the matter of section B before your fine committee.

As Congressman Ford advised you, Mr. Henry S. Maentz, another member of our board of public works, and I are interested primarily and are representing the city of Holland, Board of Public Works, for section B, which is the extension of the channel 2,600 feet past the municipal powerplant and the City Coal Co. docks, and also concerns the widening of the turning basin from the present 600-foot width to 750 feet.

Congressman Ford advised us that a contribution of the city to show its real concern over it would be a very fine thing, because we are deeply, deeply concerned over this. We feel that with the tremendous tonnage that is going up our harbor at the present time, and the increased value not only to Holland, as I see it, but the value of the shipments that can even be made on to Grand Rapids, Mich., which is another great industrial city of our State, it would be a considerable benefit to the United States of America.

We had a formal board meeting of the Board of Public Works of Holland, Mich., which was held on February 17, 1954, in our board room in the city hall in Holland, and Mr. Maentz and I were given authority to, and were authorized to offer the United States Government an amount up to 25 percent of the amount of $182,000, which was the estimated cost of improvement B; but not more than $45,500. That is up to 25 percent of the cost of the improvement, but not more than $45,500.

I am very happy to confirm this as vice president of the Board of Public Works of Holland, Mich. This is a confirmed minute in the records of the city of Holland, and we hereby go on record as making that formal offer to your committee.

Mr. ANGELL. Mr. Bosch, I want to commend you on behalf of the committee for this very excellent offer. It is certainly very interesting to the committee to have the sponsors of the project come in and say that they are willing to make a substantial cash contribution toward the improvement. I agree with my colleague, Congressman Ford, that it is a good policy for the Government, wherever possible, that local interest should participate in public works, and that is being done here.

I do not see, however, that by adopting that policy the Federal Government can step out completely of aid to public works, which can be carried on better by the Federal Government rather than by local government, or private industry, or local municipalities. There seems to be a trend toward the combination of the three interests, that

is, the local and the Federal Government, and the municipality and the State. It seems to be an excellent solution to the problem.

Mr. FORD. If I may interrupt, Mr. Chairman, Mr. Bosch has a copy of the minutes of the board of public works and the city common council's resolution, if you would like to have that admitted for the record.

Mr. ANGELL. We will include that, without objection, in the record at this point.

(The document referred to is as follows:)

SYNOPSIS OF MINUTES OF THE SPECIAL MEETING OF THE BOARD OF PUBLIC WORKS, FEBRUARY 17, 1954

Members present: Messrs. Klomparens, Bosch, Bosman, Klaasen, Maentz, and City Manager McClintock.

Staff' present: Superintendent Rendleman and City Clerk Grevengoed. Purpose of meeting: This special meeting was called to consider the problem of harbor improvement.

Harbor improvement: Mr. Bosch reported that approximately 20 harbor projects are under consideration by the Bureau of the Budget, and that hearings are being held by the Committee on Public Works from February 15 through February 28. He stated that the cash contribution by the interested municipality would probably be 25 percent of the total amount or approximately $45,000. The project would provide a 110-foot channel to a depth of 21 feet LWD, and a 750 foot turning basin. The Federal Government would take care of all future maintenance of this project. It was also reported that if the project is approved by the Committee on Public Works, the appropriation still had to be included in the next fiscal year program, and it would be approximately the end of 1955 or the beginning of 1956 when cash from the municipality would be required. Mr. Bosch emphasized that approvals on various projects are given only every 3 years, so it would be a matter of acting now or sacrificing the project for some time. He also stressed that the St. Lawrence seaway would place the city of Holland in an enviable position if large steamers can get into our harbor. Chairman Klomparens suggested that the general city stands to benefit from such a project, and Mr. Klaasen suggested that other property owners also will benefit from it.

The city manager called attention to additional requirements by the Federal Government such as the furnishing of property for disposal of dirt to be removed from the channel and turning basin. The possibility of using low lands owned by Parke-Davis, Holland Furniture, and other owners was suggested.

The consensus of opinion was that the matter should be presented to the council. On motion of Mr. Bosman, seconded by Mr. Klaasen, approval was given to the suggestion that the board should present this matter to a formal or informal meeting of the council by a committee consisting of Mr. Bosch and Mr. Maentz. and that the same committee be authorized to go to Washington to attend the hearing, with authority to commit the Board of Public Works up to a $45,500 cash contribution for this project, on the basis of 25 percent of the estimated cost with a maximum contribution of $45,500.

All members present voting "aye."

A discussion followed as to whether the cost to the board of public works for the project mentioned above should be considered as a capital expenditure item or an operating expense. No decision was reached.

Adjournment: On motion of Mr. Klaasen, seconded by Mr. Bosch, the board of public works adjourned.

HENRY S. MAENTZ,

Vice President, Board of Public Works, Holland, Mich.

Board of Public Works, Holland, Mich.

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

Mr. ANGELL. Yes, Mr. Neal.

Mr. NEAL. I believe the colonel estimated the tonnage at something around 340,000?

Colonel MILNE. Two hundred and forty-seven thousand tons, sir. Mr. NEAL. Does that tonnage extend all the way up to this section B that you applied for?

Colonel MILNE. The tonnage of 247,000 tons is general throughout the area. In section B I would estimate that something in the neighborhood of 100,000 tons is transported to the several docks in that channel.

Mr. NEAL. That was the tonnage which reached the ultimate destination for the improvements?

Colonel NILNE. Yes, sir.

Mr. NEAL. And that would consist of what?

Colonel MILNE. Limestone, coal, cement, and fertilizer.

Mr. NEAL. Thank you.

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

Mr. ANGELL. If not, we thank you very much, and Congressman Ford, you may call your next witness.

Mr. Boscн. Thank you very much, Mr. Chairman and members of the committee.

Mr. FORD. Mr. Chairman, the other witness is Mr. Henry S. Maentz, a member of the board of public works in the city of Holland. He accompanied Mr. Bosch here in an official capacity for the city of Holland.

Mr. ANGELL. Mr. Maentz, the committee will be very glad to hear you.

STATEMENT OF HENRY S. MAENTZ, MEMBER OF THE BOARD OF PUBLIC WORKS, HOLLAND, MICH.

Mr. Maentz. Mr. Chairman and members of the committee and Mr. Ford. I don't think I have anything in particular to add to what Mr. Bosch has had to say. I am glad to verify everything he has said.

I might mention that this participation in the cost which he has said has been underwritten by the city, is also going to be participated in by private interests, so that it will not be entirely another municipality making the contribution.

The interests of the board of public works are probably greater than any of the private interests, as far as this extension is concerned. But there is another dock which is just beyond ours that is also vitally interested and which carried last year, I think, 76,000 tons of coal, that is, it unloaded 76,000 tons of coal, fertilizer, gravel, and cement. That individual, together with the other private properties that will benefit, will all enter into this participation in the contribution we have offered.

Mr. ANGELL. Thank you, Mr. Maentz.

Are there any questions from members of the committee of Mr. Maentz?

(No response.)

Mr. ANGELL. If not, we wish to thank you, sir.

Mr. FORD. I would like to make one or two other comments, Mr. Chairman.

Mr. ANGELL. You may do so.

Mr. FORD. The General Electric Co. has recently announced the construction of a new plant in the Holland area. It is not on this imme

diate portion of the harbor and yet it will certainly increase the industrial development in the area to a sizable degree. I understand that plant is to get under construction sometime within the next several months.

The area has grown both industrywise and populationwise substantially. I think because of our natural harbor facilities, and particularly with the development resulting from this expansion, that we will see even more in the future.

In conclusion I would like to add this: I personally concur in the recommendations of the Army engineers in proposing the authorization of both parts A and B of the overall project. I think the benefitcost ratio in both instances is adequate to justify the Federal Government making the investment.

To reiterate, the benefit-cost ratio of part A is 1.47 to 1, and part B is 1.84 to 1. That is a good, sound investment for the Federal Government. It is even more desirable when you find that the local people over and above any other required investment are willing to put up 25 percent, or not more than $45,500 for a particular portion of the overall project.

I cannot emphasize enough my appreciation for the willingness on the part of the local interests to step in and furnish a cash contribution. I think it is a desirable trend and I personally wish to compliment them for their interest and their concrete willingness to cooperate.

Mr. ANGELL. Congressman, this project is in your district, is it not? Mr. FORD. It is. It is in the southern part of the Fifth Congressional District of Michigan. It is on the extreme southern tip of my district.

Mr. ANGELL. What does your district comprise!

Mr. FORD. Two counties.

Mr. ANGELL. What major cities?

Mr. FORD. The largest city is Grand Rapids, which is 32 miles inland from Holland. It is a city of about 175,000, and a metropolitan district of approximately 225,000 to 230,000.

Mr. ANGELL. Do you know of any local opposition or other opposition to this project?

Mr. FORD. I have heard of no local opposition. I might confirm that by the two gentlement from Holland.

Mr. BOSCH. No, sir.

Mr. ANGELL. Are there any other witnesses you desire to call, or any others who want to be heard?

Mr. FORD. I have no other witnesses, Mr. Chairman. I do appreciate the committee's attention.

Mr. ANGELL. We thank you very much for your cooperation with the committee.

Mr. MACK. Colonel Milne, is the benefit-cost ratio based on the local and Federal contribution?

Colonel MILNE. In the recommendation we made, Mr. Mack, one cash contribution was involved. The benefit-cost ratio was computed on the cost of the total project on an annual basis, as opposed to the benefits that we thought would accrue as a result of that project. The cash contribution that has been volunteered this morning would not alter the benefit-cost ratio at all. It would simply be deducted from the Federal cost of the project.