Increased service families, annual recreation

The same figures that apply above are considered as correct and conservative. Total direct and indirect recreational expenditures reported for increased farm families and increased service force: $450,000 a year with benefits per county as follows:

All percentages obtained from the most exhaustive study to date of the tourist industry made by a private research organization in California, adjusted and applied to total Colorado tourist spending figures. The total value of the tourist industry to Colorado in 1950 was $15,806,000 below that of 1947, a drop of 7.1 percent. Prepared by Colorado State Advertising and Publicity Committee.

Summary of gross annual income for area

Gross income

Farm income-increase based on 1,147 new farms and

supplemental irrigation... Retail sales-increase based on estimated permanent service population increase of 4,069 persons at average per capita sales for area in 1948 of $732.52, plus estimated increase of $1,125,000 for increase in tourist trade of 225,000 persons at $5 each (does not include additional sales arising from increase in manufacturing or tourist trade payrolls). Manufacturing increase based on estimated 20 percent increase in light manufacturing due to availability of cheaper power and additional water..... Hotels, tourist courts, and amusement-increase based on increase in tourist trade of 225,000 persons at $5 each.

Power cost: Savings in electric energy costs-decrease based on availability of cheaper power from dam at 1956 kilowatt-hour requirements..

Gross annual income for area.....

NOTE A.-It is assumed that savings realized through cheaper electric energy will result in additional income in the area.

NOTE B.-It is likely that the area will experience some expansion of mine, lumber, and other industry as a result of construction of the proposed facilities, but no figures are included for increased activity from these sources as the amounts cannot be estimated. The proposed projects will make water and electric energy available for synthetic fuel plants, and if development of this nature occurs, trade in the area could easily increase double the figure of $127,883,681.

NOTE C.-No figures are included for the increased trade activity relative to construction of the proposed facilities. It is believed that trade in the area will increase materially as soon as construction begins, and will remain at a high level throughout the construction period. It is expected that the level of trade from this source will be lower, however, than the estimated permanent annual trade increase of $21,738,221.

Summary of increase in value of farm property in area

NOTE A.-It is expected that increase in population and gross annual income in the area will result in an increase in the number and value of business buildings for retail stores, service industry, hotels and tourist courts, etc. Such an increase in trade will probably cause increases in inventories, equipment, and fixtures as well. As a result of increases in farm and retail trading it is believed that there will also be some increase in other personal property in the area. In view of the study made for Grand County-schedule included in this report-it is believed that the area will realize a substantial increase in capital investment if the proposed projects are built.

NOTE B.-Increases in capital investment in the area will probably result in an increase in the assessed valuation for ad valorem tax purposes. It is expected that construction machinery and equipment used to build the proposed projects will increase the assessed valuation of the area by approximately $750,000 after deduction of the assessed valuation of property taken for reservoir right of way. It is estimated that ad valorem tax levies at 40 mills on the net increase of $750,000 in assessed valuation will produce additional tax revenues of approximately $30,000.

SECTION I, ARTICLE D, INDUSTRY

The communities of western Colorado have been slow to develop all of their resources when compared to the communities of eastern Colorado and many other parts of the Nation. This slowness holds advantages and disadvantages. They are as follows: (1) The advantage is that the undeveloped areas can profit from the mistakes of others who have developed faster and further; (2) the disadvantage is that political strength lays with population and more advanced

industry. This gives the stronger ones the advantage to take from the weaker.

This is the position we in western Colorado find ourselves. Transportation, accessibility to markets, and other such economic factors have kept western Colorado in the background industrially up to this time. The more accessible resources were developed and communities grew around this development. This pattern of growth is, of course, apparent to everyone.

This growth of communities in other parts of the Nation, plus the growth of population in the Nation as a whole, plus two major World Wars has placed a heavy drain on the resources of the Nation. This, coupled with the fact that many areas outgrew their resources, makes it necessary now to decide whether or not the people of the Nation want to face the adjustments necessary to stabilize the country as a whole or whether the small underdeveloped areas are to be suppressed in order that the larger, more populated areas can continue to live the life of "Riley" until national disaster occurs.

The pattern of economics in the Nation is so complicated now and the public is so confused that they understand but little of the factors of their existence and future. No wonder that fear and misunderstanding exist. No wonder people develop selfish attitudes which create tendencies to live for today only. Production has been pointed to by many economists as the solution to maintaining our standard of living. Actually there are three factors. They are in order-natural resources, production, and a stable market. We cannot maintain production in the United States without resources. Resources of the Nation and world are being used up at a rapid rate. We, in this area, are fortunate in having many important undeveloped resources. Many of these resources are important to the future national economy. Their development will depend upon available usable water and for that reason we are attempting to argue and plead for fair play in the consideration of the case of water storage in the upper part of the upper basin of western Colorado. We would be pleased to have the following points reviewed before a decision is made on water-storage facilities in the Gunnison River Valley:

1. That the compact of 1922 had as its intent the division of water between the lower and upper basin States and among the States themselves.

2. That this division guarantees the lower basin States a certain amount of water, leaving the upper basin States to divide the remaining amount.

3. That the upper basin States need storage for 48 million acre-feet of water in order to make accessible to them the amount of water supply intended for them in the compact.

4. That this storage is imperative for the growth and development of the upper basin States.

From an economic viewpoint it cannot be denied that it is desirable for each community to develop its industry and agriculture in a diversified fashion and within the limits of the available resources in that area. The extent of such development should depend upon the stable markets for products produced and the amount of resources or resources available.

Some of the communities in the Gunnison River Valley are now evaluating their resources and find that no new permanent industry of any consequence can be established in the area without water storage.

The so-called available water in Colorado exists in that portion of the runoff that occurs generally in the months of April, May, and June. During the remainder of the year the water is fully (or more so) appropriated by existing uses. Thus no storage of water in the upper part of the Gunnison River means no new industry in that area of any consequence because of lack of water for that industry and the population growth resulting therefrom.

5. There has been too much emphasis placed on normal flow in the discussion of available water. Minimum flow figures must be used until such time as adequate storage will allow additional water to become available during periods of drought. Even then it is dangerous to depend entirely upon storage to guarantee any certain amount of water for permanent industry.

An example of this is the Salt River Basin of Arizona. Apparently the people there built up too much hopes in normal flow and storage. Permanent industry was established with the assumption that water was and would always be available. We have all read about the long drought in that area that has now almost ruined the agriculture and industry there. The fact is that new minimum flow records have probably now been established and permanent industry there would have been better off if it had been established more in line with minimum flow rather than normal flow.

The Lee Ferry water measurement in 1934 was 3,966,000 acre-feet. In 1909 it was 23,295,000 acre-feet. The average up to and including 1943 was 14,400,000 acre-feet. Therefore permanent industry must live within the minimum flow until storage makes more water available. Large investments are impossible in the area under such conditions because, as stated before, there is not always enough water now to fill appropriations 9 months out of each year under normal flow conditions.

It would only be practical to assume that under present conditions, with very little water storage, that further diversions from the Colorado River Basin would endanger the entire economy of western Colorado.

To have several years like 1934 would be disastrous if the emphasis is continued on water available as normal flow.

Under State law the western slope can be placed in a squeeze with the east slope on one side and the lower States on the other.

Without proper storage on the west slope, making the surplus water which exists in April, May, and June available to it, the east slope can divert this so-called surplus under State law. If this water that is diverted is placed to beneficial use, it is lost forever to the west slope. This is morally wrong although it may be legal. The only fair thing is to plan usable storage of water for western Colorado and then provide a potential for industrial development of untouched resources on the west slope. If, and only, after the needs of western Colorado are safeguarded, and a surplus then exists in Colorado water, should diversions be considered.

As it now stands, the diversions apparently will be based on surplus water under normal flow conditions which will place western Colorado in a further squeeze during years when the watersheds produce below normal. Eastern Colorado can argue that the east slope might just as well have the water because, according to the compact, "further equitable apportionment" to the Colorado River Basin States can take place after 1963.

In simple words, if we do not get storage in western Colorado very soon, we have lost forever the surplus water that supposedly exists in the water that flows past us in April, May, and June. If this happens, western Colorado cannot grow to any great extent-ever.

6. If western Colorado had little to offer to the wealth of the Nation besides water, it might be planwise to ignore its existence. However, it does have vital resources that will be needed to bolster the Nation's economy. However, these resources cannot serve much use if water is not established for their development. If western Colorado is ignored in matters of water, it may result in many vital mineral resources remaining with Old Mother Nature because of the lack of water to make them available. That will affect the national economy

as well as that in western Colorado.

Hon. Toм WALLACE,

ADDENDA B

MONTROSE, COLO., May 21, 1954.

Editor Emeritus, Louisville Times,

Louisville, Ky.

DEAR MR. WALLACE: I have been informed through the wire services that you have proposed a march on Washington by 100,000 persons, protesting what you call "the destruction of the Dinosaur National Monument" in Colorado and Utah, by construction of hydroelectric dams.

My attitude on the construction of a dam in the monument is opposite to yours. I do not believe that the enjoyment of the public domain should be restricted to a few people, as Dinosaur National Monument now is. Roads are now absolutely inadequate. Certainly, you do not believe that the general public should be encouraged to take boat trips through the rapids within the monument, considering the number of fatal and near fatal accidents that have occurred in these rapids.

Perhaps you are unaware that the water height in Lodore Canyon will be only 350 feet if the Echo Park Reservoir is created, while the present canyon walls rise to 3,000 feet; therefore, the diminution is only one-tenth. Also, you may not know that there is more scenery, of the same or even more magnificient character, in the same general area outside the Dinosaur National Monument, than there is within it.

49500-54-26

Very likely, you, as myself, have never been in the Dinosaur National Monument. (I planned the trip once with my family but was advised against making it in a regular passenger car.)

Before you march on Washington, I want to provide you the opportunity to visit the Dinosaur National Monument. We could journey into the monument together, each of us choosing an authority on natural history as an advisor, so as to keep any discussion on a factual basis. If you would care to expand the scope of our "personal inquiry," each of us could invite a water engineer of his own choosing.

I would be honored by your company on a trip into the monument territory, and if you are so kind as to accept my invitation, I should like to have you as my guest from the time you arrive in Colorado.

You could travel to Denver by plane or train; then as my guest, journey on to Craig, Colo., by chartered plane, where accommodations would be ready at the beautiful Cosgriff Hotel. Or, you could come to Montrose, Colo., by airline, and we would proceed on to Craig from there. I will provide a four-wheel drive vehicle by means of which we will explore the monument country.

My plan is that we would make a series of tape recordings right on the spot, describing factually, insofar as possible, what the results of a dam and reservoir at Echo Park will be.

I shall anticipate your acceptance and the pleasure of your company.
Most cordially yours,

GEORGE CORY,
General Manager, Community Network.

MONTROSE, COLO., June 7, 1954.

Hon. Toм WALLACE,

Editor Emeritus, Louisville Times,

Louisville, Ky.

DEAR MR. WALLACE: I am indeed sorry that you have not, as yet, acknowledged my letter of May 21, by accepting the invitation to visit the Dinosaur National Monument. Your response will be deeply appreciated.

MY DEAR MR. CORY: I didn't answer your May 21 letter because I supposed you were merely daring me to subject myself to the persuasive influence of the visit you proposed. It did not occur to me that you expected me to accept your invitation.

Except that I should enjoy the trip you propose I do not see what would result from it. I know the argument on both sides in the Dinosaur controversy. Seeing what you might show me would not disturb my conclusions. Dinosaur is one of various points of attack. The national reservations are imperiled by eagerness of enterprisers to break in wherever they might. The argument that Dinosaur would not be injured, actually would be improved, by the proposed dams is nothing new in my experience. It is the time-worn recreational paradise argument that is used to popularize projects all over the map.

I thank you for your proffered hospitality. And I would like the visit.
Sincerely,

Hon. Tом WALLACE,

Editor Emeritus, Louisville Times,

TOM WALLACE, Office of the Editor Emeritus,

MONTROSE, COLO., June 21, 1954.

Louisville 2, Ky.

DEAR MR. WALLACE: My letter of May 21 was written with the desire to reconcile divergent points of view in a friendly manner. I should like to set definite dates now for your visit. Your statement, however, that seeing what