3. There shall have been published and filed under the provisions of chapter 1 of this title, such joint tariffs with rail carriers as shall make generally available the privileges of joint rail and water transportation upon terms reasonably fair to both rail and water carriers; and 4. Private persons, companies, or corporations engage, or are ready and willing to engage, in common-carrier service on such rivers.

I submit to you that on the Missouri River, one of the major navigable tributaries of the Mississippi system, these policies of the Congress, which have not been altered, have not been met.

The Inland Waterways Corporation has had a dual responsibility throughout a difficult period in the development of inland waterway systems.

It has been called upon to achieve the profitable operation of a transportation agency, while at the same time establishing pioneer bargeline service upon such routes as the upper Mississippi and Missouri Rivers before the engineering improvements had been completed on the channel.

Nothing but deficits could be expected during the promotional period from such ventures. It is obvious that the economic merits of river transportation could not be given a fair test under such conditions until the river channels had been canalized to uniform dimensions and coordinated into a system, navigable throughout by standard barge equipment.

As a general rule, there are no published barge-line rates in effect and applicable for the movement of interline traffic between the Missouri River and the other rivers of the inland waterway system.

The handicaps causing these retarding conditions rapidly are being overcome. There is now no physical deterrent to the establishment and expansion of joint, interchange water line service between all ports on the Ohio, Illinois, and Mississippi Rivers on the one hand, and the Missouri River as far as Sioux City on the other.

For the first time, tonnage other than Government construction materials shows a substantial increase.

The practicability of through transportation between ports on the various branches of the system is demonstrated by the statistics of water-borne freight collected by the Corps of Engineers for 1947. Commercial barge traffic on the Missouri for that year totaled 1,000,

159 tons.

Traffic on the Missouri in-bound from Mississippi River ports reached 6,145 tons; from the Ohio River, 6,518 tons; and from the Illinois River, 279 tons. This is a total in-bound of 12,942 tons.

Out-bound from Missouri River ports to the Mississippi River were 73,343 tons, 54,000 tons of that amount being destined for points beyond New Orleans on the Gulf Intracoastal Waterway.

The Warrier waterway received 2,531 tons and the Ohio River, 2,229 tons, a total moving out-bound beyond the mouth of 78,103 tons. The remainder of the 900,912 tons of commercial barge traffic on the Missouri River moves between local ports.

What is needed now is a definite renewal of the mandate of the people to the Inland Waterways Corporation, a mandate not to enter into cut-throat competition with established private bargeline services, but to continue to open the way by pioneering and research to develop the full capabilities of the inland waterways system,

including the Missouri River, and thus to return to the taxpayers the funds invested, by maximum utilization and coordination of the economical transportation thus provided.

We of the Missouri Basin have helped to pay the freight for pioneering and development of navigation on the Mississippi and other tributaries. Until the Missouri River is similarly developed by the agency established by the Congress to do the job, we have every justification and moral obligation to the people of the Missouri Basin to fight for the same treatment.

Therefore, we ask that you support us.

This is the resolution which the Mississippi Valley Association passed unanimously in 1949 at St. Louis:

We approve the continued operation of the Federal Barge Lines on the inland waterways and specifically recommend its continued pioneering work of the Missouri and upper Mississippi Rivers.

We recommend the abolishment of the Federal Barge Lines only when private interests are willing and able to care for the water transportation needs of the communities of the entire Mississippi Valley as provided in the original organic act creating the Inland Waterways Corporation.

My concern is for the people's interests of Omaha and Nebraska. I have paid very little attention to river navigation on the Mississippi or the Ohio.

We believe so sincerely that the development of the Pick-Sloan plan is the biggest thing that has ever hit our country. We believe at least an important part of that Pick-Sloan plan is navigation.

I cant' prove it, but I am of the opinion that every bushel of grain that is raised in the State of Nebraska eventually will reflect a 5-cent increase in its market value from the fact that the river navigation will put us closer to the markets of the world.

I have listened with a great deal of interest to your efforts to try to find out the cost of this. I don't believe anybody would say that you could start by entering navigation on the Missouri River and make a profit right now because the first thing is that you have to develop the traffic.

The traffic is passable, but it is not developed at the moment. But the benefits to our particular country that we can see, in my mind, justifies the expenditure of $18,000,000.

I go along with the $18,000,000 because nobody has suggested any other figure.

Now as to the cost of operating on the Missouri, it is going to be costly, because I understand they have only two power boats that can come up the Missouri.

I rode the Harry S Truman from St. Louis to Kansas City, and it took that boat 56 hours to make that trip when the water was high and the current was 7 or 8 miles an hour, and it had the equivalent of about 4,000 tons of weight on it.

The Franklin D. Roosevelt, which is one of these old dilapidated boats that they have talked about, came with the equivalent of about 3,000 tons, and it took it 26 days. That seems like a lot of difference.

The Harry S. Truman probably isn't properly designed. The spread of power isn't properly designed for the Missouri, but it has a lot of power. If we had new equipment like that, and with the very evident saving, we think we could go places.

I haven't the heart to say that the Inland Barge Lines are going to make a profit the first thing on the Missouri River, but I believe this: 10 miles below Omaha

Senator JOHNSON of Texas. What you are saying is that you believe you could go places with equipment of the Harry S. Truman type, and you want more of it?

Mr. MCCAMPBELL. That is right. Ten miles below Omaha the public power system is building a steam plant, and they are going to use approximately 250,000 tons of coal a year. They are providing facilities to receive about 40 percent of that expected demand of coal on the river.

Senator JOHNSON of Texas. Is that a State power authority?

Mr. MCCAMPBELL. No. Our public power-they are political entities; they don't belong to the State. They give them a charter, just like the Omaha Dock Board. We are a political entity set up by the legislature, and these public power districts are very similar-in theory of being set up-to the Omaha Dock Board and to a drainage district.

Senator JOHNSON of Texas. I assume the State legislature authorizes them to issue and sell bonds?

Mr. McCAMPBELL. That is right. This public power district is building this plant, and they hope to be able to get 100,000 tons of coal a year, by river.

The Inland Waterways people tell me this plant, incidentally, isn't finished-that when they are finished and equipped to take this coal by river, and the Inland Waterways can haul it to them-and nobody else is in the territory to haul it to them-that and the expected grain return from Omaha will put the operation of the Missouri River in the black.

They don't say it is going to make a lot of money, but it will keep it from going in the red, and it is awfully important to us, Senator. I thank you.

Senator JOHNSON of Texas. Thank you, sir.

STATEMENT OF WILLIAM MARRIOTT, SECRETARY, SIOUX CITY GRAIN EXCHANGE, SIOUX CITY, IOWA

Senator JOHNSON of Texas. Mr. Marriott.

Mr. MARRIOTT. My name is W. H. Marriott. I am secretary of the Sioux City Drain Exchange, with 21 members and 500 employees. I have had 40 years' experience in the grain business and particularly in grain traffic, all in Sioux City.

Today I am appearing as a member of the Sioux City Dock Commission, representing the city of Sioux City with a population of 100,000 people but serving a metropolitan area with a population of 800,000 people.

The Sioux City Dock Commission is charged with the duty of providing proper river facilities to serve this large population in the most efficient manner possible and for the greatest good.

I am instructed by the commission to urge this committee to recommend the passage of S. 211 known as the Wherry bill. We have a distinct interest in the continuance and improvement of the operations of the Federal Barge Lines for reasons we would like to bring to your attention.

Sioux City is located in the great coarse grain producing area in the United States and we may even say the world. Attached hereto are four maps showing the production of corn, the production of oats, and the production of barley. All these grains are used in the production of livestock.

These are the latest maps we could secure, but even though the production per acre has been increased by the use of better seed, such as hybrid corn, and better farm management, the position of Sioux City in relation to production has remained the same.

You will also find attached maps showing Sioux City as being located in the heart of the territory raising cattle and hogs for sale. Progress in the Sioux City area has been hampered by the fact that we lie 1,100 miles to the Gulf of Mexico, 1,800 to the Pacific coast ports and 1,300 miles to Atlantic coast ports with no economical form of transportation available.

(The maps referred to are as follows:)

The number of cattle, excluding calves, sold by farmers in 1939 reached nearly 16,000,000 head. The area of heaviest sales occurred in the beef-producing area of the western Corn Belt and the adjacent Flint Hills of Kansas. Other areas of less importance were the Bluegrass section of Kentucky; the northern Appalachian area; Lancaster County, Pa.; the northern Panhandle, El Paso County, and southern Texas; also the grazing lands adjacent to irrigated areas in the Western States

The commercial production of hogs is concentrated in the Corn Belt. Fewer hogs were sold from eastern Illinois and western Indiana due to the sale of corn for grain from this area to the Chicago and Peoria markets. With the exception of this area, the sales of hogs follow closely the pattern of corn production throughout the country