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Show tions or principles should be utilized in attempting to make such comparisons? How will each affect national water policy? Please cite any illustrations of present measurement practices which you know to be working well. (13) Inland waterways and freight rates.-Many feel that the chief purpose served by much of our river naviga- tion improvement work is to provide a yardstick for, or bring about reductions in, railway freight rates. Develop- ment of water-borne trade as a result of such improve- ments is envisaged as an objective only to the extent neces- sary to accomplish that end. In certain instances lower rail rates have become effective as a result of such im- provements, "while in others proposed reductions have not been viewed with favor by the Interstate Commerce Com- mission. As an example of this approach many feel that the channel improvements, embodied in the so-called Pick-Sloan piogram for the Missouri River, have as their main purpose, not so much to develop river traffic, as to exert a downward pressure upon railway freight rates. In addition to this yardstick question, which Federal navigation undertakings share with Federally developed power, there is another and probably more basic question. It is to determine the proper economic place of inland waterway transportation in the total transportation system of the nation. More specifically, it is to formulate prin- ciples to guide public expenditures and actions in this field. Is it sound national policy to utilize inland waterway projects to secure lower rail rates? Do you believe that it can be effective? Can regions where opportunity for inland waterway transportation is available depend upon regulation of rail rates to accomplish the same objective? What specific changes in principles or their application affecting appraisal of waterway projects would you pro- pose? Would it be possible to integrate a program for improving thxe nation's waterways into a sound coordi- nated transportation program designed to serve the pub- lic interest on a long-range basis? Along what lines would you suggest that this integration be worked out? (14) Inland waterways and tolls.-Another question relating to navigation concerns the charging of tolls. The traditional policy is to provide free use of improved in- land waterways with channel improvements paid for out of the Federal Treasury. It is now suggested that the cost of major navigation improvements on the St. Lawrence International Waterway be recovered by levying tolls against freight. Tolls are charged on shipments through the Panama Canal. What are -your views on this question of tolls? What economic pr other considerations should govern in any policy decisions with regard to tolls? Is a mixed policy of tolls on certain waterways whose traffic will bear a toll and no tolls on other waterways desirable? If so, how would you formulate the necessary principles? (15) Adjustment of water resources policy to diminish- ing justification ratios.-The tendency has been to con- struct those water resources projects for flood control, irri- gation and navigation which have the highest ratios of benefits to costs under existing standards. The projects remaining for future construction, therefore, are likely to offer lower justification ratios. The time has already ar- rived when few new projects could be justified on the basis of the more limited benefits considered during earlier stages of development of the country's water resources. The question is: should our water resources programs be allowed to taper off short of economically and socially desirable goals because of failure to meet older benefit and cost standards; or should we seek new lines of justifica- tion warranting continuation of otherwise desirable pro- grams which will result in fuller utilization of water? Does the present situation indicate that current prac- tice fails to take long range, social factors sufficiently into account? We should like your comments on this issue. (16) Reservoir projects-conservation storage versus agricultural land.-The portion of river basin programs which can be carried out only by the construction of dam and reservoir projects necessarily involves the flooding of lands. This, in turn, involves provision of conservation storage to control and improve stream flows for many purposes as well as provision of the necessary heads for development of hydroelectric power. Improvement of stream flow may be an important factor in pollution abate- ment, water supply, recreation and improvement in con- ditions for fish and wildlife. Availability of hydroelectric power offers the possibility of regional economic develop- ment. But, in many localities, there is strong opposition to construction of such reservoir projects because they involve the permanent elimination of agricultural lands and the consequent destruction of specific community values. The question is whether it is possible to arrive at a reasonable comparative economic and social evaluation of the gains as against the losses from any specific project of this kind in order to determine whether it should be au- thorized. Can you suggest any guiding economic or social principles to follow? (17) Water resources projects and the business cycle.- As with other public construction programs, expenditures on water resource projects have a definite bearing on economic stability in the business cycle sense. During the 1930's numerous such projects were undertaken largely in an effort to provide employment, increase incomes and purchasing power, and restore prosperous economic con- ditions. Economists and others recognize the importance of timing, sequence, magnitude, location, employment characteristics, and rate of acceleration of the various types of water resource projects and activities in deter- mining their effect on the business situation. The need for advance planning is also recognized. At the same time there is much to the argument that public works ex- penditures contribute most to economic stability by being carried on steadily on a basis of genuine long-range needs without regard to business cycle considerations. For in- vestments in water resources projects this argument may have special force since expenditures for these are not readily accelerated and decelerated. Should the undertaking of such projects be integrated with monetary, fiscal, and other antidepression govern- mental measures? If so, what factors do you consider most important in determining the extent to which and the manner in which water resources should be scheduled for anticyclical purposes? How would you formulate policy statements to cover this issue? Should economic stabilization benefits be taken into account in determining the feasibility or desirability of a project? If so, in what ways? Should the weight given economic stabilization benefits be increased during periods of widespread unem- ployment? (18) The issue of the 160-acre limitation.-In keeping with our traditional policies favoring individual farmer- owned farms and opposing farm-land speculation, Recla- mation Law limits the size of Federally aided irrigation farms to 160 acres per individual. It is claimed that in certain areas of the country efficient farm management and operation, taking advantage of modern technical and other improvements, would require more than 160 acres per individual farm. It is claimed further that in certain semiarid areas in which economic farm units include some acres under irrigation, plus a much larger number in range, units of more than 160 acres are necessary for profitable agriculture. The fact that farmer beneficiaries from projects constructed or operated by other agencies than 312 |