(The studies referred to follow :)

STATEMENT: How EXPENDITURES FOR UPPER COLORADO RIVER STORAGE PROJECT ARE DISTRIBUTED THROUGHOUT THE NATION

Construction of the upper Colorado River storage project will consist of 2 large dams, Glen Canyon and Echo Park, and those features included in the 11 participating projects. There will be constructed 2 concrete arch dams, with the combined volume of 7,740,000 cubic yards as well as 7 earthfill dams with approximate embankment volume of 43,140,000 cubic yards. The combined storage capacity created by these structures will be approximately 34,382,000 acre-feet. In addition, there will be 2 diversion dams (145,000 cubic yards), 10 miles of concrete-lined canal, 780 miles of canals and laterals without concrete lining, 40 miles of tunnels, 80 miles of concrete pipelines, 2,575 miles of transmission lines from the Glen Canyon and Echo Park Dams, and about 116 miles of transmission lines in the 11 participating projects. Glen Canyon and Echo Park will have powerplant capacities of approximately 800,000 and 200,000 kilowatts, respectively, and some 61,000-kilowatt capacity will be installed in the balance of the project.

The principal physical features of the Glen Canyon and Echo Park Dams are as follows:

In the construction of the project works on these dams and the participating projects, it is estimated that the expenditures at the site will be $140,766,000, representing 28,154 man-years, or only about 15 percent of the total, and that the off-site expenditures and the number of man-years required throughout the Nation for associated activities will be 51⁄2 times those required at the site of construction. A tabulation of on- and off-site expenditures and man-years for the 2 principal dams and 11 participating projects are shown below:

It should be pointed out that the on-site figures shown in the table represent expenditures primarily for the services of laborers, mechanics, and other skilled construction workmen. The off-site requirements, which represent equipment and material and transportation, are for (a) materials used in construction and incorporated in the physical works (b) equipment installed at the site but manufactured elsewhere and (c) the materials utilized and expended by the construetion forces but not incorporated in the works. About 10 million barrels of cement will be required, some 417,000 tons of steel products, about 41 million

board-feet of lumber products, 350 tons of rubber products and other steel, petroleum, and nonferrous materials will be required. An analysis of the materials requirements shows the following:

PRINCIPAL CONSTRUCTION MATERIALS REQUIRED IN CONSTRUCTION AT SITE BUT PURCHASED OFF-SITE

EQUIPMENT INCORPORATED IN FEATURES AT SITE BUT PURCHASED OFF-SITE

PRINCIPAL ITEMS OF MATERIALS UTILIZED BY CONTRACTOR IN CONSTRUCTION OF FEATURES BUT WHICH ARE NOT INCORPORATED IN FEATURE

It is estimated that on the average about 30 percent of the on-site expenditures to contractors are for payrolls. The contractor's principal items of cost is in the equipment which he must use in the construction of the physical works. On this project it is estimated that some $225,225,000 worth of equipment will be required to carry on the construction operations at the site. The principal categories of equipment consists of those required for moving earth, for the concrete mixing and placing operations, and for the equipment necessary for transportation of the contractor's plant and the materials installed in the project works. These consist of a great variety of such items as tractors, draglines, shovels, cranes, inclined railways, shop and communication equip ment. Approximately 45,000 man-years will be required to manufacture the equpiment that the contractors will require for construction.

The expenditures of some 184,610 man-years include 156,456 that will be required primarily in the industrial sections of the United States, that is outside of the project area, for the manufacture and fabrication of materials and equipment necessary for construction of the project. This represents some $782,286,000 of the total of $923,052,000 for payments for basic products of crucial importance which must be secured from far flung sources, such as iron, steel, cement, electrical equipment and supplies, machine shop products, lumber, etc. Every State in the country is affected. The estimated amount of off-site employment required in each of the States for the construction of the upper Colorado River storage project is given below:

Distribution by States of expenditures for labor and materials-Initial units of Colorado River storage project

DISTRIBUTION BY STATES OF

EXPENDITURES FOR LABOR AND MATERIALS

INITIAL UNITS OF COLORADO RIVER STORAGE PROJECT AND 11 PARTICIPATING PROJECTS

BUREAU OF RECLAMATION ECONOMICS PHONY AS THREE-DOLLAR BILL

(Statement by Hon. Craig Hosmer)

The expressed philosophy of the Bureau of Reclamation embraces the contention that reclamation is all things to all men. As it has done year after year in the past, the Bureau has come forward again with a thesis attempting to illustrate the great benefits to be derived by the Nation from a proposed western irrigation project. The subject this time is the multi-billion-dollar upper Colorado River project. It is the Bureau argument that if the doors of the Federal Treasury are opened to the proponents of this fiscal monstrosity, every State of the Union will get some of the loot.

The Bureau undoubtedly employs accomplished hydrologists and construction engineers, but when it comes to economists the Bureau is woefully deficient. The economics of the Bureau of Reclamation are as unsound and as phony as a three-dollar bill.

If the Congress were to accept the Bureau's affirmations, then it follows that the Federal Government should subsidize all new industrial development in the United States on the ground that the spending of such public money would benefit all States.

The Bureau's thesis is that if General Motors, for instance, desires to build a new plant at Denver, the Federal Government should put up the money for it, because construction materials, equipment, and labor would come from many States, and thereby those States would benefit.

The Bureau's policies have been called creeping socialism. I submit that the Bureau's economics wouldn't be tolerated by the most ardent Socialist. And they certainly are not creeping policies. They are advancing with the speed of a jet plane, and if the Congress does not halt them, they will have the taxpayers of the Nation burdened to the point of complete collapse, the national debt will be increased beyond any hope of future reduction, and the national economy will be in a straitjacket.

The Bureau has furnished the House Interior Committee with a statement purporting to show how many dollars each State will get from the building of the upper Colorado River project. This is the largest conglomeration of dams and irrigation ditches ever put together under one title. It contains either 2, 4, or 6 power dams, and either 11, 12, or 33 irrigation projects. seems to know exactly what it contains, how much it will cost, or much else about it.

Nobody

In its learned paper analysing the dollar benefits to be derived for each State, however, the Bureau conveniently has omitted mentioning anything about subsidy. This is considerable. In other reports the Bureau has admitted that the project would cost the taxpayers $1,153 million in lost interest. Evidence has been presented to the Congress showing that this subsidy by the Federal Treasury would amount to $1 billion, possibly more.

In its analysis, the Bureau presents a table which is intended to show the amount of money to be spent in each State for materials and equipment for the project.

I have appended to this table the amount of money which the taxpayers of each State will have to pay if the project is built.

The comparisons are somewhat startling.

For instance, the State of New York will receive, according to the Bureau, $77,398,000, but the taxpayers of New York will have to fork out $193,600,000 for the project.

Who does the Bureau of Reclamation think it's kidding?

59799-55-pt. 1-22

All told, the Bureau claims that $923,052,000 will accrue to the 48 States. The Bureau says nothing about the fact that the taxpayers of the same 48 States will spend $4 billion.

Thus, if the upper Colorado River project is built the States stand to lose a cool $3,076,948,000.

In the depth of the recent great depression, there was little argument against public spending. Pump priming was necessary for the simple reason of sustaining life and to give our battered economy a chance to recuperate.

The Bureau of Reclamation is advocating the upper Colorado River project in the face of the greatest prosperity we have ever known.

When the warehouses and storerooms of the country are bursting with $8 billion worth of surplus food and fiber, the Bureau of Reclamation wants Congress to authorize a gigantic loss to the taxpayers of the Nation so that a desert project can be built to grow more surplus food.

With only a comparatively small amount of unemployment in the country, largely consisting of unskilled and white-collar workers, the Bureau of Reclama tion asks Congress for permission to transport thousands of skilled men thousands of miles to build a project that cannot be justified on any sound basis.

Most of the dams and irrigation works in the proposed upper Colorado River project are located in the most remote sections of the United States. Some of them are in places accessible only to mountain goats or intrepid explorers. Some of them have been seen by only a few persons, most of whom have been Bureau engineers who get a wild gleam in their eyes every time they see an undammed canyon.

Construction of the various, widely separated units of this project would involve, in addition to the transporting of thousands of men from all parts of the Nation, the building of towns, business houses, and perhaps brothels. The workers who would be uprooted from their home communities would also be taken from their families. There would be no schools, no churches, few physi cians in these wind-swept, barren desert towns that would have to be built.

Of course, it is possible the Bureau of Reclamation intends to ask Congress for another subsidy for churches and schools. The Bureau will build anything. All it needs is more taxpayers' money. The zeal and spirit of the Bureau officials are boundless and inborn.

I forgot to mention that the Bureau also would have to build highways, utility plants, fire and police stations, and motels for visitors.

Now, what happens to all this after the dams are built? Let's consider Echo Park Dam. It would stand in one of the most magnificent canyons in the world,