AUDIT OF ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION FOR 93 SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION Headquarters Office: Seaway Circle, Massena, N.Y. Telephone: ROckwell 9-9941 LIST OF EXECUTIVE OFFICERS AND ADVISORY BOARD MEMBERS EXECUTIVE OFFICERS LEWIS G. CASTLE, Administrator JOHN R. O'CONNELL, Administrative Officer ADVISORY BOARD MEMBERS FRANK A. AUGSBURY, JR., Ogdensburg, N.Y. HARRY C. BROCKEL, Milwaukee, Wis. HUGH MOORE, Easton, Pa. Organization and An instrumentality of the United States, the St. Lawrence Seaway Development Corporation operates 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 act approved May 13, 1954, authorized the St. Lawrence Seaway Development Corporation to construct that part of the St. Lawrence Seaway in the United States territory between Lake Ontario and St. Regis, N.Y.. to consummate necessary arrangements with the St. Lawrence Seaway Authority of Canada relative to construction and operation of the Seaway, to cooperate with Canada in the control and operation of the St. Lawrence Seaway and to negotiate with Canada for an agreement on tolls. The act approved July 17, 1957, authorized the Corporation to participate with the St. Lawrence Seaway Authority of Canada in the ownership and operation of a toll bridge company and to provide services and facilities necessary in the maintenance and operation of the Seaway. The Corporation is a wholly owned U.S. Government corporation created by the act approved May 13, 1954, as amended by the act approved July 17, 1957 (33 U.S.C. 981), and is subject to the direction and supervision of the President, or the head of such agency as he may designate. During the first 4 years of the Corporation's existence, responsibility for the direction and supervision of the Corporation was delegated to the Secretary of Defense who designated the Secretary of the Army to carry out the executive supervision of the Corporation. Subsequently, when construction was substantially complete, Executive Order 10771, dated June 20, 1958, limited the responsibilities of the Secretary of Defense to those functions of the Corporation which directly and exclusively concern construction of the St. Lawrence River navigation project and delegated. the responsibility for direction and supervision of the Corporation to the Secretary of Commerce. The Executive order reads as follows: By virtue of the authority vested in me by section 1 of the act of May 13, 1954 (68 Stat, 93; 33 U.S.C. 981), and as President of the United States, it is hereby ordered as follows: SECTION 1. The St. Lawrence Seaway Development Corporation (hereinafter referred to as the Corporation) shall be subject to the direction and supervision of the Secretary of Defense: Provided, That direction and supervision of the Corporation by the Secretary of Defense under this section shall be limited to those functions of the Corporation which directly and exclusively concern the construc tion of the St. Lawrence River navigation project, as authorized by subsection (a) of section 3 of the act of May 13, 1954 (68 Stat. 93; 33 U.S.C. 983 (a)), and shall terminate upon the completion of the construction so authorized. SEC. 2. (a) Except as otherwise provided in section 1 of this order, the Secretary of Commerce shall exercise the direction and supervision, with respect to the Corporation, provided for in the said section 1 of the act of May 13, 1954. (b) Direction and supervision of the Corporation by the Secretary of Commerce under subsection (a) of this section shall extend, but shall not be limited, to: (1) the general policies of the Corporation, (2) the operation and maintenance of the St. Lawrence Seaway, (3) the provision of services and facilities necessary in the operation and maintenance of the Seaway, and (4) the rules for the measurement of vessels and cargoes and the rates of charges or tolls to be levied for the use of the Seaway. SEC. 3. The Department of Commerce shall assist the Corporation in encouraging the development of traffic and maximum utilization of the Seaway, subject to the principles set forth in section 12(b) of the said act of May 13, 1954. SEC. 4. The Secretary of Defense and the Secretary of Commerce shall keep each other fully and currently informed on those matters, including prospective actions, within their respective areas of responsibility under sections 1 and 2 of this order which affect the responsibility of the other thereunder. Although the Seaway was open to navigation for deep draft vessels in 1959, the construction phase of the project is still in progress. Consequently, the Corporation has been under the supervision and direction of both the Secretary of the Army and the Secretary of Commerce. The construction work relates to completion of contracts awarded by the Corps of Engineers, dredging and channel work by Government-owned equipment and the finalization of construction contracts and the settlement of construction claims. The dredging work is expected to continue through the calendar year 1960. The construction activities have been under the supervision and direction of Secretary Wilber M. Brucker, Department of the Army. WORK PERFORMED BY OTHER AGENCIES On September 24, 1954, the Corporation designated the Corps of Engineers, Department of the Army, to serve as its design, contracting, and constructing agent. Subsequently, with construction substantially completed, the Corporation terminated the delegation of authority to the Corps of Engineers effective December 31, 1958. The Corps of Engineers continues to serve as the contracting agent for those contracts which were not completed as of December 31, 1958. All construction work on these contracts was completed as of December 31, 1959. The Corps of Engineers is doing a considerable amount of dredging by Government-owned dredges and hired labor in two sections of the Cornwall Island south channel. The dredging work is being done on a reimbursable basis. On May 3, 1957, the Corporation employed the U.S. Coast Guard to establish, maintain, and operate aids to navigation in the U.S. section of the St. Lawrence Seaway. The aids to navigation have been established |