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REPORT OF SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION 3

and other purposes; and (5) to coordinate its activities with those connected with the correlated power development.

The Corporation is an instrumentality of the United States operating under the management of an Administrator, a Deputy Administrator, and an Advisory Board, consisting of five members, all of whom are appointed by the President by and with the advice and consent of the Senate.

The officials, the Advisory Board, and the Board of Engineering Consultants of the Corporation are:

Lewis G. Castle, Administrator

Martin W. Oettershagen, Deputy Administrator
Raymond F. Stellar, engineer

E. Reece Harrill, comptroller-treasurer

Edward R. Place, information officer
Edward L. Lacey, administrative officer
Guerin Todd, Jr., general counsel

Advisory Board:

John C. Beukema, North Muskegon, Mich.
Harry C. Brockel, Milwaukee, Wis.
Kenneth M. Lloyd, Youngstown, Ohio
Hugh Moore, Easton, Pa.

Edward J. Noble, New York, N. Y.

Board of Engineering Consultants:
C. E. Blee, Knoxville, Tenn.
F. W. Edwards, Muscatine, Iowa
E. Montford Fucik, Chicago, Ill.
Charles M. Wellons, Pittsburgh, Pa.

On September 2, 1954, pursuant to section 8 of the act creating the Corporation, the Corporation designated the Corps of Engineers, United States Army, to serve as its design, contracting, and construction agent.

The design and construction are subject to the direction and approval of the Corporation. Construction is performed by private con

tractors under competitive bidding. Officers of the Corps of Engineers concerned with this work include: Lt. Gen. S. D. Sturgis, Chief of Engineers, Washington, D. C. Maj. Gen. Charles G. Holle, Deputy Chief of Engineers for Construction, Washington, D. C.

Brig. Gen. Paul D. Berrigan, division engineer, Chicago, Ill. Col. Loren W. Olmstead, district engineer, Buffalo, N. Y. Colonel Olmstead is the contracting officer. These and other officers of the Corps of Engineers and their civilian staffs participate in engineering design, construction scheduling, and construction superintendence.

In addition to its supervisory functions, the Corporation coordinates its activities with other Federal agencies, and the following entities: The St. Lawrence Seaway Authority of Canada Power Authority of the State of New York Hydro-Electric Power Commission of Ontario Saint Lawrence River Joint Board of Engineers International Joint Commission

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VCE SEAWAY DEVELOPMENT CORPORATION

FINANCING

nstruction of the United States portion on is authorized and empowered to issue easury revenue bonds payable from Corpos, with the provision that not to exceed iding at any one time. It is further pro10 percent of the authorized bonds shall be ar and not to exceed 40 percent during any ligations of the Corporation shall have maThe Secretary of the Treasury not in excess of nterest at a rate determined by the Secretary

ce Seaway Development Corporation's projself-liquidating undertaking, the Corporation From toll revenues all costs of operating and under the administration of the Corporation, payment of interest on the obligations of the ments in lieu of taxes. In addition, the Cor

tolls must be sufficient to amortize the obtion over a period not to exceed 50 years.

given special consideration to the subject of er the enabling act and has had extensive coninterested agencies of the Government concernperations of the seaway which should be financed id as to the inclusion of the cost in the toll base.

case relating to the installation, maintenance, o navigation, the Comptroller General rendered dated November 2, 1955, in which he stated: ublic Law 358, 83d Cong.) reasonably establish an intent onsibility for the administration and cost of the United way should be solely that of the Corporation and that onstruction, operation, and maintenance of the seaway n the tolls collected

authorized and directed to negotiate with The Authority of Canada, or such other agency as by the Government of Canada, an agreement as measurement of vessels and cargoes, and the rates be levied for the use of the St. Lawrence seaway, division of the revenues of the seaway between The St. Lawrence Seaway Authority of Canada. ment and summary cost and progress report for 10, 1955, appear at the conclusion of this report.

DE PROGRESS AND STATUS OF PROJECT

Corporation for the past fiscal year were devoted vation, to the initiation of design and construction nice petion with the Corps of Engineers, to coordinating bas the Canadian St. Lawrence Seaway Authority and 3)ty of the State of New York, and to the awarding duration_herters for administrative direction

for the construction effort.

in Was of the &

D. C., in July 1954. The heade Administrator, the engineer, the

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REPORT OF SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION 5

comptroller-treasurer, the information officer, and the administrative

officer.

To provide the most efficient working arrangements at the field level with the Corps of Engineers, United States Army, the Corporation established an office in Buffalo, N. Y., to be operated during the engineering-design and contract-award period in order to expedite day-to-day supervision and processing of engineering and related matters, and supervision of construction activities. The Deputy Administrator with a small staff is presently stationed at Buffalo.

Ground was broken in April 1955 for the excavation of the 10-mile Long Sault Canal and locks. A subsidiary office was established in Massena, N. Y., near the principal work site of the United States seaway construction, for the purpose of coordinating, supervising, and representing the Corporation there. Later the Massena office will be the central office and main point of operation for the Corporation when the seaway is open for traffic. A satisfactory building site has been selected in Massena for an administration building, which is scheduled to be completed for occupancy in June 1957, after which it will become the headquarters of the Corporation.

Throughout the year, concentrated effort was applied to engineering design work originated for the Corporation primarily by the Buffalo district office of the Corps of Engineers, United States Army. Also hydraulic model studies have been underway in laboratories located at Vicksburg, Miss.; Minneapolis, Minn.; and Islington, Ontario; together with extensive hydrographic surveying and probing in the river areas where channel enlargement is involved.

Contracts for major excavation and related dike construction have been awarded in a total amount of $11 million for the removal of 22 million cubic yards of glacial till, clay, and rock, and for dike and embankment work. At the end of June, the overburden excavation. included in these contracts was approximately 12 percent complete for the Robinson Bay lock site, and about 11 percent complete for the Grasse River lock site.

By the end of 1955, overburden excavation for each lock site was substantially more than half completed, and the excavation for the upper end of the Long Sault Canal was about half finished. The overall design effort was well advanced toward completion. Summing up the first construction season, 9 percent of the total work has been completed in terms of cost, amounting to $8 million.

Seaway contractors are generally working two 10-hour shifts, in daylight, and at night under floodlights, to meet contract completion dates. Construction activity will be restricted during the winter season, but work will be continued to the maximum practicable

extent.

Principal project contractors are:

Peter Kiewit Sons' Co., Omaha, Nebr., and Morris-Knudsen Co., Inc., New York, N. Y. (joint venture), for the main portion of the Long Sault Canal.

Badgett Mine Stripping Corp., Madisonville, Ky., westerly end of the canal.

Tecon Corp., Dallas, Tex., at Robinson Bay lock site.

Dutcher Construction Corp., Queenstown, Md., at the Grasse
River lock site.

6 REPORT OF SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

During the fall, a materials testing laboratory at Massena was erected. Work was well advanced on a 21⁄2-mile section of highway in the Long Sault area.

In February 1955, negotiations were concluded between the United States and Canada, whereby the United States approved deferment of the construction of the authorized Point Rockway Canal and lock below Ogdensburg, N. Y. In lieu thereof, Canada is building the Iroquois Canal and lock on the opposite side of the river. As stated in an exchange of diplomatic notes with Canada, these arrangements "eliminate uneconomical duplication of navigation facilities" and "retain the development on a joint basis.'

By another exchange of notes, agreement was reached by the two seaway entities for the joint construction of a bridge across Polleys Gut between the mainland of the United States and Cornwall Island in Canada. This will be a combined railway-highway bridge crossing the international boundary northeast of Massena, N. Y., in replacement of the existing South Channel bridge at Cornwall Island, a lowlevel fixed structure which will have to be removed to permit passage of seaway shipping.

Members of United States and Canadian committees were appointed on March 25, 1955, to initiate preliminary toll studies. These committees have held several meetings, the first of which took place at Montreal in June. Members designated are:

United States committee:

E. Reece Harrill, chairman

Dr. Charles A. Taff

H. M. Hochfeld

Canadian committee:

Charles Gavsie, chairman

J. C. Lessard

G. A. Scott

On September 22, 1955, Secretary of the Army Brucker made an inspection tour of the project, and proceeded on to Ottawa to meet with the executive staff of the Canadian Seaway Authority, as well as Canadian Government Department of Defense personnel.

Lt. Gen. Samuel D. Sturgis, Jr., Chief of Engineers, United States Army, together with Gens. C. G. Holle, Paul D. Berrigan, and C. R. Smith, and Col. L. W. Olmstead also made an inspection tour of the project in September. Relations with the corps have been exceedingly cordial, and their cooperation and services have meant a great deal in the successful development and progress of the project.

During the year, three meetings were held with the members of the Corporation's Advisory Board. Their contributions have been of great value.

The Corporation's Board of Engineering Consultants is composed of engineers who have specialized in hydraulics, soils, foundations, and canal design, and have had wide experience in other branches of engineering. They have rendered valuable service in the review and solution of major engineering problems.

Several meetings have been held in Ottawa, Montreal, and Washington with the Honorable Lionel Chevrier, President of the St. Lawrence Seaway Authority of Canada, and his staff. The agenda of these meetings included toll studies and also considerable exchange * engineering viewpoints and coordination of design and construction atters which were mutually beneficial. Relations with this Cana

REPORT OF SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION 7

dian counterpart of the Corporation are most harmonious, and the two entities are working in an atmosphere of cooperative understanding.

The Corporation and the Coast Guard have entered into a memorandum of understanding whereby the Corporation will utilize the technical services of the Coast Guard on a reimbursable basis in developing plans and specifications for the installation of the aids to navigation for the United States waters of the seaway. The aids to be installed, operated, and maintained by the Corporation will be within the Thousand Islands and International Rapids section of the St. Lawrence River comprising the 114-mile reach from Lake Ontario downstream to St. Regis.

The Corporation will operate and maintain the locks, canals, channels, and navigational aids, and perform related work, including the collection of tolls. Accordingly, the organization is in the process of expansion to meet these responsibilities.

Cumulative public interest of recent years in the seaway manifested itself during the first construction season by an ever-increasing influx of visitors to Massena and the St. Lawrence Valley. To accommodate visitors desiring to view the seaway-power projects in complete safety and without interference with operations, the Corporation, as well as the New York State Power Authority, provided overlook stations at several vantage points. The two entities jointly published educational folders to satisfy many thousands of requests received from the general public for information.

The Corporation wishes to acknowledge with deep appreciation the wholehearted cooperation it has received from a number of Government agencies, particularly the Department of the Army and the Department of Defense, in the performance of its activities.

Respectfully submitted,

LEWIS G. CASTLE, Administrator, Saint Lawrence Seaway Development Corporation.

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Balance sheet as of June 30, 1955

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