From the above table it is clear that the annual carrying charges are in all cases in excess of the prospective annual revenue from tolls. The proposal under which the lowest expenditure is to be made is contained in House Joint Resolution 104. For the limited work proposed under House Joint Resolution 104, that is, the construction of a 27-foot channel in the International Rapids section and Thousand Islands section in United States territory, the annual carrying charge to the United States would be $5,194,000. The annual carrying charge to Canada on the cost of constructing a 27-foot channel in the St. Lawrence River and in the Welland Canal, so as to provide in conjunction with the work proposed to be done by the United States under House Joint Resolution 104, would be $9,418,000. The United States part of this construction cost would be 33.74 percent, the Canadian part, 66.26 percent. It may be fairly assumed that the revenue to be derived from tolls on traffic using this waterway would be divided between the United States and Canada in proportion to the construction cost of each country. Taking 33.74 percent of the revenue from tolls would give the United States $3,197,000. Canada's share of 66.26 percent would be $6,277,000. The toll revenue to the United States is only 61.6 percent of the United States annual carrying charges. Stated another way, the annual carrying charge is 162 percent of the estimated annual revenue from tolls. To bring revenue from tolls up to the annual carrying charge would require either an increase of 62 percent in the rate of tolls-without diminution of traffic-or an increase of 62 percent in the volume of traffic at proposed tolls, or a combination of these factors. Under House Joint Resolution 195 the annual carrying charges are 224 percent of revenue from tolls for the same work in the International Rapids section. As previously pointed out, under House Joint Resolution 195, the cost of joint-use facilities is divided between navigation and power instead of being charged to power as it is under House Joint Resolution 104. Even if the prospective traffic were doubled, the annual revenue from tolls would fail to cover the annual carrying charges. On the overall project, from Duluth to Montreal, the annual carrying charges would exceed annual revenue from tolls by 188 percent. The improvement of harbors to a depth necessary to accommodate ships using a 27-foot seaway substantially increases the cost of constructing the overall project, and proportionately the annual carrying charges. The figures dealing with harbor improvements the fourth set of figures in the table-show that on the basis of probable costs with harbor improvements, the annual carrying charges for the United States would amount to 378 percent of the annual revenue from tolls. For a 35-foot channel the annual carrying charges for the United States range from a minimum of 761 percent to a maximum of 1,742 percent of the annual revenue from tolls, depending upon what construction is included in making the estimate. POWER PHASE We shall not undertake to express a view on the power phase of the project. The board of directors of the association has not expressed a definitive position on that matter. In our analysis of the evidence relating to the entire project, it was concluded that the power phase would, so far as the United States is concerned, make a relatively minor addition to the power development urged and planned under private management. Furthermore, if it is believed necessary to develop the power phase of the project, it can be done without the development of the seaway and presents, in our opinion, no argument for the construction of the seaway. CONCLUSION May we conclude this presentation by stating that, on the basis of the material presented here and in the more extensive analysis in the booklet "The Great Lakes-St. Lawrence seaway and power project," it is believed that the proposed seaway cannot be soundly advocated in terms of a self-liquidating transportation agency. It is concluded that, if it is constructed, a substantial part of the burden of the construction, maintenance, and operating costs will fall upon the taxpayers of the United States. This project has a strong dramatic appeal. It has had such an appeal since the time when the St. Lawrence River was the only means of transportation between the Atlantic and the interior of our country. However, it is a matter which we believe must be considered primarily in economic terms. It is a matter which must be considered in terms of proper national economy, and in its relation to the serious subjects of balancing the budget, of the national debt, and of Federal taxation, with which the present Congress has such grave concern. While it is our belief that a consideration of this proposal in financial terms will lead to a negative conclusion concerning its development, this committee and the Congress may believe that the matter deserves an intensive and objective study, either by the Interstate Commerce Commission as proposed in H. R. 3799 or by an outside research agency. Either of these steps, in our opinion, might wisely be taken before further serious consideration is given to the proposal. Congress should not approve House Joint Resolution 104 or House Joint Resolution 195 or other similar proposals. CAMDEN, N. J., June 16, 1953. Hon. GEORGE A. DONDERO, Chairman, Committee on Public Works, House of Representatives, Washington, D. C.: Unable to attend hearings on St. Lawrence project, therefore respectfully request our views as expressed herein be considered. The Delaware River Port Authority, a bistate agency charged with the development of the Delaware River port area, strongly opposes proposed St. Lawrence waterway which, if constructed would result in substantial diversion of traffic from the port of Philadelphia and other Delaware River ports. Economic well-being of this area is dependent to a very large extent upon the uninterrupted movement of commerce through the port. The estimated diversion of traffic from Atlantic and gulf ports to the proposed waterway by the Department of Commerce is such as to cause grave concern. As to the effect of our port area, national defense argument in our opinion is not valid since one well-placed bomb could bottle up a large portion of our merchant fleet for indefinite periods. It is our feeling that the proponents of the project are telling us that we are not only going to have to pay our proportionate heavy share of building this waterway but that at the same time we are going to lose a substantial share of our foreign commerce when and if it becomes a reality. J. ALEX CROTHERS, Director, Port Development Department, Delaware River Port Authority. Hon. GEORGE A. DONDERO, DEPARTMENT OF THE ARMY, OFFICE OF THE CHIEF OF ENGINEERS, Chairman, Committee on Public Works, House of Representatives, Washington, D. C. DEAR MR. DONDERO: In response to your recent telephone request, I am pleased to enclose a statement summarizing (1) the subsurface investigations conducted along the International Rapids section of the St. Lawrence River and the findings of those studies, with particular reference to the navigation features that are covered by your bill, House Joint Resolution 104, and (2) the contract procedure of the Corps of Engineers. Concerning the availability of plans, attention is invited to the Chief of Engineers' letter of April 16, 1951 (copy attached), appearing on page 1402 of your 1951 hearings. Sincerely yours, B. L. ROBINSON, Major General, Deputy Chief of Engineers. SUBSURFACE INVESTIGATIONS, INTERNATIONAL RAPIDS SECTION, ST. LAWRENCE RIVER Prior to October 1940, the Canadian Government and the United States Government, as well as various private interests, had at different times conducted certain explorations with a view to determining the nature of overburden and bedrock in the vicinity of proposed structures, and at points where excavations would be required in connection with the proposed St. Lawrence River project. These early-day investigations were essentially preliminary in character and consisted chiefly of wash borings through overburden and core borings in bedrock. Some of the data obtained from these studies are available in the files of the Corps of Engineers. Beginning in October 1940 detailed subsurface investigations were conducted by the district office established by the Corps of Engineers at Massena, N. Y., at the sites of proposed channels, cuts, and structures to determine more fully the nature and condition of the overburden and bedrock for design of the project works. Explorations also were conducted to locate suitable sources of materials for use in construction. These operations included drilling in both overburden and bedrock; the determination of bedrock elevations by seismic methods; the excavation of test pits and test trenches; the drilling of auger holes; and probings made both by a probing machine and by manually driven rods. Extensive drilling operations were carried out for the corps under contract by Sprague & Henwood, Inc., of Scranton, Pa. The contract drilling where both overburden and bedrock were to be investigated was accomplished with diamond drilling equipment, using 31⁄2-inch casings in overburden and 2%-inch core bits in bedrock, except for a few holes which were finished with a 1%-inch core bit. Dry soil samples normally were taken at 5-foot intervals or at changes in material. As a rule, holes drilled to determine the elevation of bedrock were extended 20 feet into the rock to verify the fact that bedcok actually had been reached and to obtain rock cores for visual examination. At the proposed sites of large concrete structures, where the character and condition of bedrock would be of greatest importance, some drill holes were carred 100 feet into the rock. Where special conditions obtained, even deeper holes were drilled, some reaching a depth of 200 feet into bedrock. Holes for the investigation of overburden only were drilled using either 22- or 31⁄2-inch casings. Dry samples were usually taken at 5-foot intervals or at changes in material. addition, holes were drilled using 6-inch casing at certain points for the purpose of obtaining undisturbed samples of marine clay deposits. These operations, accomplished under contract, involved in the aggregate the following: Holes in bedrock_. Holes in overburden, 31⁄2-inch casing- Total_-_ In Lineal feet 10,500 17, 400 5,900 750 34, 550 In addition to the contract drilling, further explorations were conducted by the Corps of Engineers forces at many sites. These operations included the excavation of numerous test pits at locations where detailed information was desired, particularly near the surface. The pits generally were excavated to a depth of approximately 6 feet and extended by auger borings, with samples being taken at each stratum of material encountered. Many auger holes were drilled and these, in turn, were extended by means of probings. Two types of probings were used to determine the condition of overburden along the alinement of the canals and at the dike sites. Hand probings, using three-fourths-inch rods and a 14-pound sledgehammer, were used to extend auger holes and to supplement the test pits, particularly along the alinement of the Long Sault Canal. A probing machine was used to determine the depth to firm materials and to obtain samples of material at numerous other locations. A field log was kept of each machine probing; this recorded the rates of penetration, as well as a description of samples obtained. A program of investigations by the seismic method also was conducted by Corps of Engineers specialists to supplement the explorations by other means. This program involved the utilization of conventional seismic methods for work on land and also included some underwater work, which necessitated the development of special apparatus and techniques. The operations by Corps of Engineers forces included the following accomplishments: Number of test pits excavated.. Number of auger holes drilled.. Total depth of machine probing (lineal feet). 290 669 731 21,400 392 In general, the geologic formation within the International Rapids section was found to consist of glacial till ranging in thickness from a few feet up to 200 feet or more, including thick beds of marine clay in many locations. These formations overlie the bedrock, which is generally uniform in contour but broken by gentle valleys and ridges, with a general north-south strike, which are, in turn, intersected by depressions from preglacial drainage channels. The glacial till consists principally of clay, sand, gravel, and boulders intermixed in an irregular manner. The bed and banks of the stream are, in general, paved with large poulders and are not subject to erosion. More specific subsurface data pertaining to the major individual features of the navigation phase of the project, with navigation works on the American side of the river, are presented in the following paragraphs: (a) Grass River lock.-The overburden at the site is composed of glacial till and clay, varying in thickness from 65 to 85 feet. The surface material is brown sandy clay varying in depth from 10 to 20 feet. Underlying this material is a stratum of soft, wet, gray marine clay ranging in thickness from about 20 feet at the upper end of the lock chamber to abont 45 feet at the lower end. Underlying the marine clay and extending down to ledge rock is a layer of glacial till varying in thickness from about 30 feet at the upper end of the lock to about 10 feet at the lower end. Ledge rock below the overburden consists of hard dolomite and dolomitic limestone, with some interbedded strata of hard shale, considered to afford an excellent foundation for the heavy structures contemplated at the location. (b) Robinson Bay lock.-The overburden in a high ridge, in which the upstream end of the lock would be located, and underlying the clay flat at the downstream portion of the lock site, is mainly a very hard and compact glacial till composed of silty to clayey gravelly sand. Overlying the glacial till in the flat area downstream from the ridge is clay varying in thickness from 0 to 50 feet. The upper strata of clay is a brown sandy clay which overlies soft, wet, gray marine clay. Ledge rock is found at levels varying from elevations 133 to 146, or at depths of from 24 to 37 feet below the required grade for the bottom of the lock chamber. The ledge rock is of the same general character as that at the Grass River lock site. (c) Long Sault guard gate.-The overburden at the site of the guard gate is glacial till consisting of compact silty, gravelly sand with scattered cobbles and boulders. Ledge rock is found at depths ranging from 42 to 50 feet below the required navigation clearance grade. Consequently, the guard gate was designed to be constructed on the glacial till, with the heavier concrete sections being founded on steel piling driven into the till. (d) Long Sault Canal.-The overburden along the route of the canal is variable and consists of marine clay, glacial till, and water-laid or partially waterlaid sand. Upstream from Robinson Bay lock the overburden is chiefly compact glaciel till, although an area of clay occurs along the canal alinement on Long Sault Island, where canal excavation will vary in depth up to approximately 25 feet. In this area much of the surface material is uniform silty fine to mediums and ranging in depths to 8 feet. Variable sandy clay, which is either exposed or underlies the sand, overlies directly soft gray clay or glacial till at depths up to 20 feet. On the mainland above Robinson Bay lock a few areas of clay also occur, but grade for the canal in these areas generally will be in the overlying variable sandy clay, so that practically no excavation of the soft gray clay will be required. Limited surface deposits of variable sand and gravel and a small deposit of stratified sand between layers of clay also occur above the lock. Below Robinson Bay lock marine clay deposits overlie glacial till between ridges of till. In some areas water-laid or partially water-laid sand deposits exist between the clay and till, but these deposits are limited in extent and thickness. The maximum depth of excavation in clay in the canal proper, exclusive of work at the locks, will be about 30 feet, and the maximum in glacial till will be about 50 feet. Bedrock lies at sufficient depth throughout the length of the canal so that it would not be a factor except in connection with lock construction. (e) Point Rockaway lock.-The overburden at the lock site is composed of clay, sand, and gravel varying in thickness from about 20 to 35 feet. The upper portion is generally a brown silty clay ranging in thickness from about 4 to 14 feet. Underlying this material is a gray marine clay ranging in thickness from about 4 to 25 feet. Underlying the clay and extending to ledge rock is a thin stratum of water-bearing sand or sand and gravel, ranging in depth from 0 to about 16 feet. Ledge rock is found at levels ranging from elevation 196 to elevation 206, the latter being the depth required to provide navigation clearance through the lock. The rock is the hard dolomite which is characteristic of the region and which is considered generally excellent as a foundation for the heavy structures of the type contemplated at the site. (f) Point Rockway Canal.—The overburden along the canal alinement is variable and consists of marine clay, glacial till, and water-laid or partially water-laid sands. In general the canal site is located in a clay valley between hills composed of glacial till. In some areas water-laid or partially water-laid sands have been deposited between the clay and glacial till. The marine clay deposits consist of soft, gray silty clay underlying at depths of from 0 to about 10 feet a brown sandy clay, the latter being generally deposited on the valley slopes and in the vicinity of the Point Rockaway lock. The deposits of glacial till consist of fairly compact to compact clayey or silty gravelly sand with scattered cobbles and boulders. Overburden other than clay and glacial till consists of water-laid or partially water-laid sands and gravels, muck, and marl. The underlying bedrock is, in general, approximately horizontally bedded dolomite with a very few minor beds of shale and sandstone. Two separate bodies of ledge rock occur along the canal alinement at depths shallow enough to necessitate rock excavation to provide the required navigation clearance. CONTRACT PROCEDURE It is the policy of the Corps of Engineers to accomplish civil-works construction by the contract procedure. This method has been in force for many years and is founded on a provision of law (33 U. S. C. 622) that these construction operations should be accomplished in the most economical and advantageous manner from the standpoint of the United States. As a result, about 95 percent of civilworks construction during recent years has been accomplished by private contractors working under the supervision of the Corps of Engineers. Bids are publicly advertised and awards are made on a lump-sum basis to the lowest responsible bidder when all the necessary prerequisites have been fulfilled. Since this contract procedure has met with little criticism from the construction industry, it appears to have been executed in a fair and equitable manner from the standpoint of both the construction industry and the Government. As a matter of policy, negotiated contracts are not utilized in our civil-works construction. Likewise, in the case of military construction within the continental United States it is the policy of the Corps of Engineers to perform all military construc tion under normal circumstances by fixed-price contracts awarded after receipt of competitive bidding resulting from public advertising. In exceptional cases involving national security or for other special reasons, where public advertising is not feasible, negotiation is used, but only under those circumstances permitted under the provisions of the Armed Services Procurement Act, Public Law 413, 80th Congress. Mr. MCGREGOR. In regard to the announcement by the chairman that the House is going in session at 11 o'clock, attention is called to the fact we have about 50 minutes for the hearing this morning. I ask permission for some of the witnesses appearing this morning to file statements, with the understanding, according to our previous agreement, that their statements will appear in the record as though they were read before the committee. We may be able to hear only 2 or 3 witnesses this morning, and we hope to complete the hearings today. Other subcommittees have hearings scheduled tomorrow which will continue for several weeks. We do not want to interfere with those hearings. Mr. Chairman, I ask permission for Mr. Peters to present the statement of Mr. Shirley, commissoner of commerce of New York City. Mr. DONDERO. The statement will be received for the record. Mr. McGREGOR. The statement of Edward Moore, a consulting engineer of the General State Authority of Pennsylvania. Mr. DONDERO. Without objection, the statement will be received and made a part of the record. Mr. McGREGOR. And Walter J. Holmes, executive vice president of the Chamber of Commerce of the Bronx. Mr. DONDERO. It will be received. |