lem, but more importantly, to provide for the further industrial growth the area requires and can reasonably expect.

An adequate year-round supply of water will support increased industrial growth. Improved recreation facilities will attract it. The channel dredging project originally proposed would, alone, clearly be inadequate in the light of present knowledge of the area's potential for economic growth.

TVA engineers have surveyed the small river. Effective design and efficient location of the structure have been determined, their cost can now be estimated, the benefits of their use appraised. They should be built. Based on TVA's research in other smaller, experimental watersheds and on careful analysis of the total cost and income situation in this watershed, it is clear that these projects will be worth more than they cost. Their contribution to long-term economic growth will be substantial.

DISTRIBUTION OF COSTS

We are now endeavoring to develop a method for relating the public benefits of the water control projects to the several objectives of Federal, State, and local governments and institutions in a way that will furnish a key to the proper distribution of costs among them. And we are trying further to develop a method for using some of those future dollar benefits to provide the dollars needed now to build the projects. This idea is supported in a recent publication of the National Academy of Sciences-National Research Council. It has this to say:

Cost-sharing between Federal, State, and local governments, and private owners should be in proportion to benefits, with the possibility for specific adjustments in special circumstances. Moreover, the cost-sharing should be reasonably proportionate in each time period; the Federal Government should not bear all present costs with a vague promise for future expenditures at a later date by other groups. If private owners or local government cannot share in costs from the beginning, special loans for this purpose might be granted by the Federal Government, with a definite repayment obligation established. Sound economic and technical planning, and restriction of programs to economically justifiable levels, will prevail only when those who should be beneficiaries of programs acknowledge and plan to repay their indebtedness.

This is one problem facing us, particularly on some of the larger tributary streams in the Tennessee Valley where development is feasible from the engineering point of view, where there are reasonably substantial benefits to navigation, flood control and power production, but where those benefits are not nearly great enough alone to justify the total cost of the projects. Our inability to solve the problem promptly and without consideration and study has given rise to some criticism and considerable misunderstanding in at least one watershed. A few critics have acused TVA of "dragging its feet" in the development of tributary streams. Misled by these remarks, others have commented that "with completion of development of the main river TVA should now proceed to development of the tributaries." Questions of priority and responsibility do not lie between development of the tributaries and the main river. Tributaries have not been neglected.

DAMS ON TRIBUTARIES

Of the 20 dams built by TVA, only 7 are on the main river; 13 already built and the single dam now under construction are on tributaries. Of the total of 31 structures which now control the river system, only 9 are on the main river; 22 are on tributaries.

There is not now, nor ever has been, any reluctance on the part of TVA to build projects on tributaries. This is clear from the record. Projects have been built at whatever location is best suited to promote the statutory objectives of the act creating TVA.

AVAILABILITY OF LOW-COST TVA POWER

In addition, development means more than just building dams, as I have pointed out. And in TVA's many other important development programs, the tributary areas have not been neglected either. Nearly all of the Tennessee Valley has the benefits of low-cost TVA power. Its availability, for example, was a key factor in determining the location of the Arnold Engineering Development Center's wind tunnel project in the Elk River Basin and the AEC's installation at Oak Ridge in the Clinch River Basin and at Paducah.

NEW POULTRY RAISING INDUSTRY

Midwestern grain, transported on the new barge channel on the Tennessee, has been the key to a vast new poultry-raising industry all through the Tennessee Valley and the Southeast. TVA's agricultural programs, its test-demonstration farms, its program for reforestation and better forest management have not been confined to the banks of the Tennessee River alone. They are valleywide.

New industries at Decatur and Huntsville, Ala., and in the Muscle Shoals area, while located on the banks of that main river, draw workers from many miles away-from the Elk River Basin, from Bear Creek and Yellow Creek, and from other tributary areas.

In its basic statute TVA was directed to control this river system for three major purposes: to create a channel for navigation, to control its floods and the floods below on the Ohio and the Mississippi to which the flow of the Tennessee contributed, and to generate electricity for the people in the region to use. These are the reasons why the projects were built. These are the primary Federal purposes they serve, no matter where they are located.

TVA has, however, an additional responsibility to manage all its programs in ways which realize the greatest return for regional development,

DEVELOPMENT OF FISH AND WILDLIFE RESOURCES

From the beginning, therefore, benefits beyond the three justifying the Federal expenditures have been recognized. Experts in fish and wildlife have worked to make certain that the value of these resources should have opportunity for full development.

In our program of reservoir land disposal, we have from the beginning endeavored to make certain that space for recreation and for industrial growth is provided. Water supplies for industries and general municipal use have been improved, fishing is better-it is better, Senator Hill, except the day you and I tried our luck together.

Senator HILL. You mean the fish are biting now?

Mr. WAGNER. They are always biting when I am not there. Wildlife refuges have been increased, and areas for recreation conveyed for development to States, counties, municipalities, and to private persons.

All these, and other benefits, have accrued because of a Federal investment in structures built to create a navigation channel, control floods, and generate electricity. They are byproducts, immensely important to regional growth. Our experience with them in reservoirs already built and operating encourages us to believe it is feasible to extend development to some of the smaller tributaries in cases where the investment would not be justified to achieve the purposes for which Federal construction is undertaken, but would be justified if Federal and local objectives were combined and joint financing arranged.

FINANCING MULTIPURPOSE DEVELOPMENT

It is natural that devising a new method of financing the multipurpose development of small rivers primarily for local benefits should present difficulties-legal, economic, and administrative. It is not unnatural that an occasional spokesman for a local group should prefer to strive for the assumption by the Federal Government of total responsibility. He sees that in some localities improved water supplies for municipal industrial growth have become available without investment by those localities. He sees that swimming beaches, picnic grounds, and marinas for watercraft have been added to local assets as a byproduct of a Federal program of construction undertaken primarily to accomplish other purposes. To a few, this circumstance has led to the conclusion stated by one community leader. He was quoted as follows:

Fairness demands that the people and communities in the valleys of the small rivers flowing into the Tennessee River enjoy the came benefits as those areas near the main stem of the river.

That seems to us to reflect considerable misunderstanding, not only of the differing responsibilities of, and the relationship between Federal, State, and local governments, but of the potential of tributary streams for development.

The watercourses vary and the possibility for their development is not the same. The problem and the opportunities of each one differ. We believe every river in the valley should be developed to its full economic potential. We believe it will take the combined resources of all levels of government to do it. It is not a Federal job alone.

ECONOMIC RETURNS FROM WATER CONTROL FACILITIES

Economic returns from Federal investment in water control facilities are calculated in a number of ways. One return rarely evaluated, however, lies in the increased capacity of State and local governments to undertake subsequent programs of water control in cooperation with the Federal Government or alone. The heavy private investment in business and industry and the income from resulting jobs, all stimulated by the Federal investment already made in this region, provide new tax resources for State and local governments. The enhancement of land values is another measure.

In the Tennessee Valley, once wornout cropland, contributing little income to the owner or in taxes to the support of public services, has been transformed to waterfront land that is extremely valuable, as industrial sites, for recreation development, and for residential use.

Even enhanced land value is not the only direct result fo the Federal program, of course. There are other illustrations.

SALE OF FISHING LICENSES

In one State, for example, the sale of fishing licenses brought nearly $1,700,000 last year, a fifteenfold increase over the income reported in 1935. In the same period, sale of out-of-State fishing licenses increased nearly 200-fold.

The increased opportunity for fishing is the result of the Federal investment in water control.

REVENUES FROM VISITORS

States in the Tennessee Valley tax gasoline sales. Last year, TVA projects attracted more than 10 million visitors. We estimate that about one-third of them are from nonvalley States. No estimate can be made of the revenues derived by the States from the expenditures of these visitors, but it must have been considerable.

We believe that this increase in revenues available to local and State governments is one measure of the soundness of the Federal program. It has helped them to accept an increasing share of the total responsibility. We believe it may enable them to participate with TVA in developing those small tributaries where it can be demonstrated that economic growth will result.

We are going to continue to work on the problem.

In one watershed two or three members of the work groups now engaged in analyzing various problems and planning their solutions are members of the State legislature. This participation will, we believe, certainly add to their understanding of the problems.

In another State of the valley, the Governor has already initiated a study of the question of State participation.

Our efforts will continue, and be intensified, in the areas where the people are willing to join in the enterprise, where all that remains is to develop a reasonable framework within which the work can begin. Senator HILL. Senator Dworshak, you have to leave in a few minutes. Do you have any questions?

Senator DwORSHAK. The Interior Committee is holding an important meeting, and I just stepped out a few minutes. May I just ask a few questions on behalf of one of our colleagues on the Appropriations Committee?

REHABILITATION OF LOCK AT WHEELER DAM

General Vogel, in the budget request we have from the White House, there is a request for $7 million for

expeditious rehabilitation of the navigation lock at Wheeler Dam on the Tennessee River in Alabama. This lock is now inoperative due to failure on June 2, 1961, of the landward lock wall.

What was responsible for the failure of that lock?

Mr. VOGEL. We have extensive engineering investigations underway in this connection, Senator. We have employed a board of consultants. Extensive tests have been made of the foundations.

It would appear that the principal fault lies with the underlying shale strata. In order to pin this down specifically and be sure of the actual basic facts, we are now conducting some field experiments, and we will have better information in a short time.

Senator DwORSHAK. Who constructed the lock, the TVA or the Army Engineers?

Mr. VOGEL. It was built by the Corps of Engineers, sir.
Senator DwORSHAK. And how many years ago was it built?

Mr. VOGEL. It was completed in 1935.

Senator DwORSHAK. At that time was there not some kind of a lock in use which was eliminated at the time?

Mr. VOGEL. This lock was built for use in conjunction with Wheeler Dam. During its construction-as plans matured—a larger, higher lock was decided upon and some changes were accordingly made as the work proceeded.

Senator DwORSHAK. There was no lock in that vicinity prior to the building of this landward lock?

Mr. VOGEL. The term "landward" Senator, refers specifically to a wall of the lock.

I might add in this connection that investigations have revealed weaknesses in both of the walls and the river wall also will have to be replaced. I am sure it can be safely stated that under these conditions the lock would have had to be completely rebuilt anyway.

Senator DwORSHAK. It was my impression-you say 1935 when this lock was constructed there was a previous structure of some kind? Mr. VOGEL. No, sir, not at this specific site.

NOTE: There were two small locks at the upper end of the Muscle Shoals Canal at the time Wheeler lock was started. These were built by the Federal Government between 1875 and 1890 as a part of a canal development bypassing Muscle Shoals and Elk River Shoals. Wheeler lock replaced these two structures.

Senator DwORSHAK. And this lock has been in operation for more than 20 years?

Mr. VOGEL. More than 25 years.

Senator DwORSHAK. And it failed on June 2, 1961?
Mr. VOGEL. Yes, sir.

REPORT OF INVESTIGATING BOARD

Senator DwORSHAK. And before you expend this $7 million, will you await the report of the investigating Board so you will

Mr. VOGEL. We already have some money available, Senator, in connection with a new lock which is being constructed next to the old one in order to help take care of growing traffic needs. That money is available to proceed on either or both of these locks until the money now being requested is available.

Senator DWORSHAK. You do not have to wait this report, then, of the Board?

Mr. VOGEL. No, sir.

We will, of course, need the additional money in this fiscal year, before the year is out.