under construction at the Alma station. The three largest of Dairyland's generating plants, having a total capacity today of 130,000 kilowatts and, with the addition mentioned above, a capacity of 180,000 kilowatts, are steam power stations located on the Mississippi River at Alma, Genoa, and Cassville, Wis. This most recent addition will cost in excess of $82 million and we expect the unit to be on the line before the year's end in 1956. From your past studies and in other hearings, I am sure that you recognize that coal represents the largest single item in the cost of production of electrical energy in steam generating stations, representing approximately 55 percent of the total final cost at the bus bar. These 3 stations presently consume annually 300,000 tons of coal, which is brought by barge up the Mississippi River during the navigation season. Years of competition have established a differential between rail and water transportation in this region so that, at the present time, we are able to get coal by barge at an average of $1.75 per ton cheaper than by rail. Should the price of coal substantially increase for any reason, you can well appreciate the increased cost involved inasmuch as our projected studies show that increased demands for electricity will require the use of a minimum of 550,000 tons of coal annually by 1960 and in excess of a million tons by 1965.

I would like to direct my remarks particularly to the conclusion appearing on page 1311, volume III, of the task-force report, which reads as follows: "For the combined Mississippi River systems, exclusive of the Missouri, and for the Ohio River system, average charges would probably not exceed 1.5 mills per tonmile." I believe you can readily appreciate why I am alarmed at this conclusion. Dairyland Power Cooperative and the 93,000 farmers and rural businesses which it serves will be adversely affected for various reasons should any system of user charges be superimposed or injected into our present economic position. The price of coal will increase and, hence, the cost of electricity will go up. Farmers will be paying more for fertilizer and the grain production revenues will be no further reduced when shipped by barge under the task-force proposal. A wide variety of prices to farmers, as consumers, will increase. As we see the situation, a user charge would result in a major dislocation in the operations of Dairyland Power Cooperative and its service area which extends 400 miles from north to south, and 250 miles from east to west. It would dry up the upper Mississippi industrially and would be a severe blow to the entire economy of America's Midwest. We are convinced that user charges will be detrimental to the many. We recognize that it will be highly beneficial to the few.

We totally disagree with the professor's conclusions that the railroads have paid back in services the subsidies they have enjoyed. It is one American industry that has been subsidized since its inception and is continuing to enjoy Federal subsidies. Water transportation on America's inland waterways needs encouragement and, in equal respects, needs some subsidization that the rail industry enjoys, and, if we can believe the advertising appearing in many of the national magazines, paid for by the Association of American Railroads, they, too, claim that they would like to enjoy free competition without regulation for the benefit of the American public. We attach a copy of an advertisement ap pearing in the U. S. News & World Report under date of November 18, 1955. They further claim that they would like to enjoy greater freedom from regulation, but it has continually been our experience that the various commissions have gone along with discriminatory rates, which rates remained unchanged until river ports were opened for competitive transportation. In 1954 rail rates from Belleville, Ill., to the Ford dock were reduced from $0.84 per ton to $0.70 per ton. The fact that mines located on the Ohio River had recently gone into operation and were loading coal directly onto barges was instrumental in bringing about this reduction. I could state instance after instance of unfair railroad competition which continued to exist until the influences of true competition went to work and reduced railroad rates. We, like the railroads, would like to see less interference and the forces of competition go to work.

A ton of coal brought to Dairyland steam generating stations travels by barge an average of 625 miles upstream, the longest haul being 913 miles. Using an average of 625 miles and a user charge of 1.5 mills per ton-mile, this means that from this cause, alone, the average cost per ton of coal would be increased approximately $0.95. At our present rate of use, this would cost Dairyland an additional $285,000 annually, and by 1965, when our requirements will be 1 million tons of coal annually, this would cost us $950,000. Dairyland supplies electrical energy at cost. The farmer users in the Dairyland system would have to bear this additional cost-an additional burden which they can ill afford to

do from their current harassed state, economically speaking. We believe that America, in the long run, will basically be only as strong as its agricultural economy.

Dairyland's investment in dock facilities, only, at our 3 steam plants exceeds $500,000. These additions were all made since 1940. The additional 50,000kilowatt unit at Alma, Wis., includes $80,000 for dock improvements alone. Believe me, gentlemen, when I tell you that the bulk of our generating capacity was placed on the Mississippi River only after full recognition was given to the traditional policy of the United States Government in improving the inland waterways of the Nation and our dependence on a continuation of that policy. They were put there, frankly, to take maximum advantage of the long-established differential between rail and water transportation rates. If a system of user charges, such as is indicated in the task-force report, goes into effect, not only our investment, but a truly tremendous investment in all the Mississippi waterways would be rendered useless.

In addition, it would be necessary to install railroad unloading facilities. In the case of Dairyland, it would be necessary for us to spend $200,000 to install these facilities at our 3 steam plants, and it would, of course, be necessary for us to use different methods for unloading and handling the coal. The great area served by Dairyland Power Cooperative has not been blessed with fuel deposits. Nor is the area blessed with large-scale hydroelectric possibilities. Probably no area in the country has used to maximum benefit the few hydroelectric sites that are available. The one compensating factor which our farm people have had is the natural resource of the Mississippi waterway. Their lives and their fortunes and their entire economy has been built around a continuation of historic policies of this Nation. In their behalf, may I urge you to do everything in your power to see that the recommendations of the task force, relative to user charges on the inland waterways of the United States, are never put on the statute books.

This, by no means, is the first attempt to eliminate competition of the vast inland waterway system. I would like to call your attention to Senate bill 951 and my letter to Senator Wiley as reprinted in the Congressional Record of April 14, 1955, page 3726, a copy of which is attached. I hope our viewpoint on the pending matter will be as thoroughly considered as it was on the bulk-commodity legislation resulting in the committee's rejection of the task force

recommendation.

Respectfully submitted.

JOHN P. MADGETT, General Manager.

(The documents attached to the statement are as follows:)

[From the U. S. News & World Report, November 18, 1955]

HOW COMPETITIVE PRICING IN TRANSPORTATION WOULD HELP YOU

In most American businesses, the benefits of greater efficiency can be passed on promptly to the public. In the transportation business, however, this is not always the case.

Consider what has happened on the railroads.

In the last 30 years the speed of the average freight train has gone up more than 50 percent; the load has nearly doubled and the hourly output of transportation has increased nearly three times.

To make possible these and other gains in efficiency, the railroads have spent, since the end of World War II, nearly $11 billion-every dollar of which was financed by the railroads themselves.

But as is shown in the report of a special Cabinet Committee appointed by the President--Government regulation frequently denies to the public the benefit of the lower costs of the most economical form of transportation, so as to protect the traffic and revenues of carriers with higher costs. The result, as the Cabinet Committee says, is that shippers and, ultimately, the consuming public must pay more for freight transportation than would otherwise be necessary.

WHAT CAN BE DONE TO CORRECT THIS UNHEALTHY SITUATION?

The special Cabinet Committee recommended that railroads and other forms of regulated transportation be given greater freedom to base their prices on their own natural advantages. At the same time, Government regulation would con70818-56-pt. 9- -10

tinue to prevent charges which are unreasonably high or unreasonably low, or are unduly discriminatory.

This would make it possible to pass on the benefits of the most efficient operations to shippers, producers and retailers, and to the consuming public which in the end pays all transportation costs.

Bills based on Cabinet Committee recommendations have been introduced in Congress. For full information about this vital subject, write for the booklet, Why Not Let Competition Work?-Association of American Railroads, 924 Transportation Building, Washington 6, D. C.

DESIGNATION OF LAKE BEHIND MCNARY DAM AS ALDRICH LAKE

Mr. NEUBERGER. Mr. President, I present for appropriate reference and ask unanimous consent to have printed in the Record a joint resolution of the Oregon State Legislature asking that the lake behind McNary Dam on the Columbia River be named Aldrich Lake, in tribute to the late E. B. Aldrich, publisher of the Pendleton East Oregonian, and a pioneer in the crusade to develop waterpower and navigation on this great waterway of the Pacific Northwest.

Mr. Aldrich is remembered throughout Oregon as a man of integrity and vision, who defiied carping critics in his persistent advocacy of multipurpose development of the Columbia River. Some of these critics predicted that Columbia River projects never would fulfill their purpose. The success of these projects is the most enduring monument which Mr. Aldrich could have erected to his memory. There being no objection, the joint resolution was referred to the Committee on Public Works; and, under the rule, the joint resolution was ordered to be printed in the Record, as follows:

"HOUSE JOINT MEMORIAL 12

To His Excellency, the Honorable President of the United States; to the Honorable Secretary of the Interior; to the Honorable Senators and Representatives from Oregon in Congress of the United States of America, and to the Board on Geographic Names:

"We, your memorialists, the 48th Legislative Assembly of the State of Oregon, in legislative session assembled, most respectfully represent as follows:

"Whereas in 1954 the President of the United States of America threw the governing switch which sent thousands of kilowatts of electrical energy, from a mighty dam that had just been constructed spanning the Columbia River, a historical day for the Nation marking another milestone in the progress of the Pacific Northwest; and

"Whereas it was proper and fitting that the dam should be named McNary in order to perpetuate the name of this illustrious pioneer statesman, Charles Linza McNary, who, cooperating with his friends and neighbors, had within the span of one lifetime built from an unexplored wilderness and sagebrush country a progressive and stable part of our United States, homes and industries of the Northwest consuming hundreds of thousands of kilowatts provided by McNary Dam and other dams promoted by Senator McNary and his neighbors; and

"Whereas Oregon and Washington owe so much to pioneer citizens whose hard work and fortitude made the Northwest great; and

"Whereas the dam being named McNary after a pioneer statesman, it would be proper and fitting that the waters creating a lake back of McNary Dam be named Aldrich Lake as a memento to that tireless newspaper editor, Edwin Burton Aldrich, who spent his entire life using his pen to achieve greater things for the Pacific Northwest through the development of its water resources; and "Whereas E. B. Aldrich, editor of the East Oregonian in Pendleton, Oreg., was the leader at the first meeting ever called for the development of the resources of the Columbia River; and

"Whereas E. B. Aldrich was one of the Northwest's representatives sent to alert the Congress of our Nation and Corps of Engineers of the power potentialities of the Columbia River; and

"Whereas it was E. B. Aldrich and his associates who secured the first money ever appropriated for the study of the Columbia River; and from that meager appropriation of $50,000 from the Congress of the United States and $10,000 from the State of Oregon an embryo was created from which has emerged multipurpose dams on the Columbia River; and

"Whereas although E. B. Aldrich's pen was forever stilled by his death in 1950, a record of his achievements should be marked for all time: Now, therefore, be it "Resolved by the house of representatives of the State of Oregon (the senate jointly concurring therein), That the Congress of the United States is respectfully memorialized to name this lake Aldrich Lake; and be it further

Resolved, That copies of this memorial be transmitted to the Honorable Dwight D. Eisenhower, President of the United States; the Honorable Douglas McKay, Secretary of the Interior; the Honorable Wayne Morse, United States Senator from the State of Oregon; the Honorable Richard Neuberger, United States Senator from the State of Oregon; the Honorable Walter Norblad, Representative in Congress from the State of Oregon; the Honorable Sam Coon, Representative in Congress from the State of Oregon; the Honorable Edith Green, Representative in Congress from the State of Oregon; the Honorable Harris Ellsworth, Representative in Congress from the State of Oregon; and the Board of Geographic Names.

REMOVAL OF BULK COMMODITY EXEMPTION WITH RESPECT TO INLAND WATER CARRIERS-LETTER

Mr. WILEY. Mr. President, I present a very important letter from John P. Madgett, general manager of the Dairyland Power Cooperative, which serves 87,000 farmers and rural businesses in the 4-State area of Wisconsin, Minnesota, Iowa, and Illinois. Mr. Madgett writes concerning the adverse effect of legislation to remove the bulk commodity exemption with respect to inland water carriers by amending part 3 of the Interstate Commerce Act.

I ask unanimous consent that the letter be printed in the record at this point, and be thereafter appropriately referred.

There being no objection, the letter was referred to the Committee on Interstate and Foreign Commerce, and ordered to be printed in the Record, as follows: DAIRYLAND POWER COOPERATIVE, La Crosse, Wis., March 25, 1955.

Hon. ALEXANDER WILEY,

Senate Office Building,

Washington, D. C.

DEAR SENATOR WILEY: On February 4, 1955, Senator Warren G. Magnuson, chairman of the Senate Committee on Interstate and Foreign Commerce introduced by request Senate bill 951. The purpose of the bill is to remove the bulk commodity exemption with respect to inland water carriers by amending part III of the Interstate Commerce Act. Passage of the bill would have the effect of extending the regulatory powers of the Interstate Commerce Commission to inland water transportation of dry bulk commodities.

A close perusal of this bill leads us to the conclusion that we oppose passage of the legislation for the following reasons:

1. The time schedule, geographic rights, and commodity rights provisions of the bill are needlessly restrictive. They are unrealistic, unfair, and in our opinion totally unconscionable.

2. It will discriminate against the Mississippi waterway while still exempting traffic in the Great Lakes and in the offshore trades.

3. We believe it is a needless extension of Federal authority.

4. It will throttle and kill present healthy competition.

5. It will promote monopoly and a cartel type of economy.

6. It will unduly benefit few carriers to the detriment of the many.

7. Because of the operation of the price structure for water transportation when under Interstate Commerce Commission regulation as exemplified by 15 years past experience, we are convinced that the enactment of S. 951 will have the effect of substantially increasing the rates for shipment of bulk commodities and will signal the end of low-cost inland water transportation.

8. Dairyland Power Cooperative and the 87,000 farmers and rural businesses which it serves will be adversely affected for various reasons. The price of coal will rise and, hence, the cost of electrical energy will go up. Farmers will be paying more for fertilizer, and profits on grain sales when shipped by barge will go down. A wide variety of prices to consumers will increase.

In contrast we believe that under existing law:

1. We have open, free and fair competition among all carriers. Even certificated common carriers are free to and do compete with the unregulated carriers for liquid and dry bulk cargoes.

2. There has been a healthy and continuing expansion of the transportation industry without regulation. The bulk commodity field is one in which "small business" has had a chance and where there is presently a minimum of monopoly. 3. Competition has held the price structure in line to the mutual benefit of shipper, carrier, consumer, and the general public. None has been hurt, everyone has benefited.

4. Long-term "tailor-made" service contracts between carrier and shipper or buyer characterizes much of the current contract carrier business. Dairyland Power Cooperative, one of the many large buyers of coal, sees no valid reason why this system should not continue.

As you know, Dairyland is now supplying electrical energy to 87,000 farmers and rural businesses in the 4-State area of Wisconsin, Minnesota, Iowa, and Illinois, of which 60,000 are located in the State of Wisconsin. Of Dairyland's 9 generating stations, with a total capacity of 165,000 kilowatts, the 3 largest are steam power stations located on the Mississippi River at Alma, Genoa and Cassville. An additional 50,000-kilowatt unit is now being installed at Alma and will be on the line in late 1956. Coal represents the largest single item in the cost of production of electrical energy in steam stations, representing approximately 50 to 55 percent of the total final cost. These 3 plants annually consume 300,000 tons of coal which is brought by barge up the Mississippi River during the navigation season. Years of competition have established a differential between rail and water transportation in this region so that at the present time Dairyland can get coal by barge at an average of $1.75 per ton cheaper than by rail. Should the price

of coal substantially increase for any reason you can well appreciate the increased costs involved inasmuch as we anticipate that increased demands for electricity will require us to use a minimum of 500,000 tons of coal annually by 1960.

We appreciate the heavy duties which you are carrying and that this is just one of many bills which you must consider. However, we, the directors, management, and farmer members of the Dairyland Power Cooperative, would sincerely appreciate any effort that you can make before either the Senate or House Committees on Interstate and Foreign Commerce in order to get the foregoing viewpoints before the committee. Should you desire further information from us as to our operations and as to our opposition to this bill, kindly feel free to write. Yours very truly,

JOHN P. MADGETT, General Manager. Mr. JONES. The Chair would like to state we have some 13 more witnesses here, so we are going to have to go ahead pretty rapidly. Our next witness is Mr. Edward Baur, director of the National Association of Soil Conservation Districts.

STATEMENT OF R. EDWARD BAUR, LIVESTOCK FARMER, SOUTHERN IOWA, DIRECTOR, NATIONAL ASSOCIATION OF SOIL CONSERVATION DISTRICTS

Mr. BAUR. Ladies and gentlemen, I am Edward Baur, livestock farmer of southern Iowa, privileged to serve as a soil conservation district commissioner and a director of the National Association of Soil Conservation Districts. I have worked with soil and water problems for 12 to 13 years. I am one of 13,000 soil conservation district supervisors or commissioners all over America. I represent the National Association of Soil Conservation Districts and am a commissioner in the Madison County Soil Conservation District.