Tolls Studies and
Negotiations

The Corporation's Tolls Committee has continued studies and discussions. with the Tolls Committee of the St. Lawrence Seaway Authority of Canada to form the basis for an agreement on rules for the measurement of vessels and cargoes, the establishment of toll rates for the use of the Seaway, and an equitable division of the toll revenues of the Seaway between the Corporation and the authority. The initial meeting between the Tolls Committees of the Corporation and the authority took place in June 1955, and during the year 1957 meetings were held generally on a monthly basis.. The Tolls Committee members of the Corporation are as follows:

E. Reece Harrill, Assistant Administrator, St. Lawrence Seaway Development Corporation; Chairman, Tolls Committee.

Charles A. Taff, Professor of Transportation, College of Business and Public Administration, University of Maryland.

Edward A. Bacon, Deputy Assistant Secretary, Office of the Assistant Secretary of the Army, Civil and Military Affairs.

Several studies have been completed or are underway relating to various complexities on the establishment of toll rates. Among the matters considered are potential tonnage traffic on the Seaway, workable capacity of the Seaway, period for development of the traffic, cost studies and projections of cost for determining annual revenue requirements, and methods of assessment and collection of tolls.

To guide the Corporation in establishing the rates of tolls, the act of May 13, 1954 (33 U. S. C. 981), prescribes several principles to be followed, the most important of which are: (1) The rates shall be calculated to cover, as nearly as practicable, all costs of operating and maintaining the works under the administration of the Corporation, including depreciation, payment of interest on the obligations of the Corporation, and payments in lieu of taxes, and (2) the rates shall provide amounts sufficient to amortize the principal of the debts and the obligations of the Corporation over a period not to exceed 50 years.

The Corporation held public conferences in Washington, D. C., and Chicago, Ill., on September 9 and 11, to permit interested organizations, operators, individuals, and potential users of the St. Lawrence Seaway to submit their ideas on rules for measurement of vessels and the general nature of adequate and effective methods of assessing and collecting tolls.

Prior to the conference a questionnaire was sent to 316 organizations and individuals. This meeting and its purposes were widely publicized by direct mail to interested parties and by a press release carried by newspapers and other publications. Answers were solicited on the following questions included in the questionnaire:

1. Method of assessing tolls.

2. Rules for the measurement of vessels.

3. Distinction between bulk and general cargo.

4. Evidence of cargo actually carried.

5. Tolls for partial transit of Seaway. 6. Method for payment of tolls.

Thirty verbal statements were presented at the conferences by interested organizations and individuals. Forty-five responses were received by letters from interested parties, all of which were made a matter of record. The conference proceedings, together with the responses to the questionnaire. have been published and are available to the public at $1 per copy.

The Corporation anticipates the conclusion of initial toll studies in the first part of 1958 and the holding of a public hearing thereafter before officially establishing rules for the measurement of vessels and cargoes and toll

rates.

Collection of toll revenues is not scheduled to begin until April 1959 when the Seaway is expected to be open to full-scale navigation. It has been decided that tolls will not be collected from the 14-foot traffic vessels using only a part of the Seaway in 1958.

er Activities

SCHEDULING OF COMPLETION

ress on the construction of the United States portion of the St. LawSeaway project continued with accelerated pace during 1957.

construction program is scheduled on a basis which will provide for bening of facilities in the International Rapids Section for 14-foot ation in July of 1958 to synchronize with the creation of a water pool e St. Lawrence power project. The construction timetable calls for pening of the Seaway for navigation at a controlling depth of 27 feet ghout its entire length in the spring of 1959.

COORDINATION OF SEAWAY WORK

he coordination with our Canadian counterpart, the St. Lawrence SeaAuthority, in connection with this important international venture, has n an outstanding example of friendly cooperation. The interchange of as concerning Seaway engineering, bridges, tolls, and other important subts have been conducted in an atmosphere of confidence and harmonious derstanding.

The Corporation's engineering staff, working in close collaboration with e United States Army Corps of Engineers and private contractors, have gether accomplished an enviable record of work completion. The quality the work is also of particular excellence.

ADVISORY BOARD MEETINGS

The Advisory Board of the Corporation has held four meetings during the past year. Three such meetings took place in Washington, D. C., and the other at Massena, N. Y., where the Board members inspected the job site. The members of the Advisory Board have been exceedingly constructive in their counsel concerning policy matters of the Corporation.

PUBLIC RELATIONS ACTIVITIES

International interest in the Seaway project is reflected by the large number of inquiries received from foreign countries, in addition to thousands of requests for information from all sections of the United States and especially

States bordering on the Great Lakes. Distribution of printed materials and Seaway films to groups and individuals has been of great volume because of these public requests.

Approximately 500 film showings have resulted from cooperation of the Office of Information with schools and colleges, civic groups, engineering. industrial and shipping organizations, women's clubs, and other groups, including several showings in European countries.

Our construction project has been visited by delegations from a number of foreign countries, including England, Scotland, Norway, Germany, Guatemala, India, Japan, and Formosa.

Considerable interest in the Seaway project has been manifested by grade. high school and college students, as well as teachers in a variety of institutions. The Seaway project is becoming one of the most popular subjects for themes, term papers, and theses.

Members of our staff participated in many conferences, forums, and other meetings to report on Seaway progress and development.

Various departments of Government, many members of Congress and embassies in Washington have been supplied with materials for their use. Nearly 1 million tourists visited the navigation and power job sites during the past year.

We provided a public overlook and parking area for tourists visiting the Eisenhower Lock site, and supplied tourist folders for distribution by chambers of commerce, automobile clubs, and other agencies.

The press have been exceedingly eager in their desire for information on the project, and every effort has been made to keep them and the general public adequately informed.

AMENDMENTS TO LEGISLATION

The basic enabling act of the St. Lawrence Seaway Development Corporation (33 U. S. C. 981, approved May 13, 1954) which, in 1954, created the Corporation and defined its powers and duties, was amended during the year by Public Law 85-108 (33 U. S. C. 984, approved July 17, 1957).

The most important of the amendments increased the borrowing authority of the Corporation from $105 million to $140 million and was occasioned by three factors: (1) The escalation of construction costs between 1952 and 1957; (2) planning and design changes prompted by an experience factor; and (3) construction items added for efficiency and safety.

Another important amendment clarified the Corporation's authority to defer interest on borrowings during construction since there was a difference of opinion between the Treasury Department and the General Accounting Office as to whether this could be done under the enabling act. Without deferment, the increase of it

would have found it necessary to request an hority to meet current charges. In any event,

all interest would be repaid to the Treasury but, under the amendment, it may be repaid at a later date when tolls can be collected.

Other amendments were: (1) To authorize the Corporation to join with its Canadian counterpart, the St. Lawrence Seaway Authority of Canada, in the purchase and operation of a bridge company in order to continue the operation of an international highway facility over the St. Lawrence River under conditions consistent with the operation of the Seaway; (2) to authorize the Corporation to provide auxiliary services and facilities necessary to the navigation project, such as services to vessels in transit; and (3) to require the Corporation to submit special reports to Congress whenever there is proposed a change in any design, feature or phase of the project involving $1 million or more.

AGREEMENT WITH THE UNITED STATES COAST GUARD

An agreement has been reached with the United States Coast Guard by which that agency will be employed by the Corporation (as authorized by sec. 8 of the Seaway Act) to operate and maintain the Seaway Corporation's aids to navigation, both fixed and floating, extending from Lake Ontario to St. Regis, N. Y.

The negotiated agreement is on the basis of a fixed annual charge for the services to be rendered by the United States Coast Guard. The cost agreed upon is to the financial benefit of the Corporation.

PURCHASE OF INTEREST IN BRIDGE COMPANY

On September 30, 1957, this Corporation and the St. Lawrence Seaway Authority of Canada acquired all shares of the Cornwall International Bridge Co., Ltd.

This company operates the Roosevelt International Bridge across the St. Lawrence River, one section over the North Channel from Cornwall, Ontario, to Cornwall Island; the other section over the South Channel from Cornwall Island to the United States mainland at Rooseveltown in New York State.

The two Seaway entities will continue the operation of the toll-bridge system and share equally in ownership and operation of the bridge company.

The Roosevelt Bridge originally carried both motor and rail traffic. Up to February 15 of this year, the bridge was used by the New York Central Railroad system for trains running between Helena, N. Y., and Ottawa, Ontario. At that time, the rail company was permitted by the Canadian Board of Transport Commissioners and the Interstate Commerce Commission of the United States to abandon this operation.