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Engineers, will be imminently dangerous to life and/or property in the valley of the Illinois River, as to be able to promptly reduce the flow of water in the main canal of the Sanitary District of Chicago to that amount which will not allow the waters of the said Sanitary District of Chicago to be diverted into Lake Michigan.

The said Sanitary District of Chicago shall fully comply with any order that may be issued by said Chief of Engineers and at once regulate its such discharge in obedience to any request made by said Chief of Engineers as contemplated in this section.

SEC. 6. That said Sanitary District of Chicago shall at all times keep available to the inspection of said Chief of Engineers, and/or his representatives, and the officials of the State of Illinois, in its offices and stations in Cook County, Illinois, and/or elsewhere, all of its records, data, and reports of its officers and employees, showing the quantity and character of water by it carried through its canals and works, and upon request of said Chief of Engineers, and/or his representatives, and/or the officials of the State of Illinois, shall forthwith furnish him and their representatives with such details and reports as may be requested, and also it shall from time to time, as directed by said Chief of Engineers, furnish him, and/or his representatives, and/or such State officials, with samples of water running through such parts of its canals and works shall be designated.

SEC. 7. The concessions herein made and the permission hereby granted unto the Sanitary District of Chicago relating to the withdrawal of water from Lake Michigan are each extended and granted upon the considerations herein fixed and designated being fully observed and complied with, and nothing herein contained limits or abrogates the power of the Federal Government, and/or its proper officer, and/or the officials of the State of Illinois, in maintaining unimpaired the navigability of the Illinois River, and/or in preserving the purity of the water therein, and/or of controlling the same so as to prevent its contamination to the extent of its becoming a nuisance or menace to the health of any of the people.

SEC. 8. This act shall be in force and effect when the same shall be formally accepted without reservations within sixty days after its passage by an ordinance of the board of trustees of the Sanitary District of Chicago, duly passed and promulgated.

[Senate Document No. 434, Fifty-ninth Congress, first session.]

To the Senate and House of Representatives:

I transmit herewith, for the consideration of the Congress, a report made to the Secretary of War by the International Waterways Commission, under date of May 3, 1906, upon the preservation of Niagara Falls.

THE WHITE HOUSE, May 7, 1906.

THEODORE ROOSEVELT.

WAR DEPARTMENT, Washington, May 4, 1906.

MY DEAR MR. PRESIDENT: I beg to transmit herewith a report made to me by the International Waterways Commission of date May 3, 1906, for submission to Congress.

Very sincerely yours,

The PRESIDENT.

WM. H. TAFT, Secretary of War.

BUFFALO, N. Y., May 3, 1906.

The SECRETARY OF WAR OF THE UNITED STATES and
The MINISTER OF PUBLIC WORKS OF CANADA:

The International Waterways Commission has the honor to submit the following report upon the preservation of Niagara Falls:

The commission has made a thorough investigation of the conditions existing at Niagara Falls, and the two sections have presented reports to their respective Governments setting forth these conditions, to which attention is in

vited. The following views and recommendations are based upon a careful study of the facts and conditions set forth in these reports:

1. In the opinion of the commission it would be a sacrilege to destroy the scenic effect of Niagara Falls.

2. While the commission are not fully agreed as to the effect of diversions of water from Niagara Falls, all are of the opinion that more than 36,000 cubic feet per second on the Canadian side of the Niagara River or on the Niagara Peninsula and 18,500 cubic feet per second on the American side of the Niagara River, including diversions for power purposes on the Erie Canal, can not be diverted without injury to Niagara Falls as a whole.

3. The commission therefore recommend that such diversions, exclusive of water required for domestic use or the service of locks in navigation canals, be limited on the Canadian side to 36,000 cubic feet per second and on the United States side to 18,500 cubic feet per second and in addition thereto a diversion for sanitary purposes not to exceed 10,000 cubic feet per second be authorized for the Chicago Drainage Canal, and that a treaty or legislation be had limiting these diversions to the quantities mentioned.

The effect of the diversion of water by the Chicago Drainage Canal upon the general navigation interests of the Great Lakes system will be considered in a separate report.

The Canadian section, while assenting to the above conclusions, did so upon the understanding that in connection therewith should be expressed their view that any treaty or arrangement as to the preservation of Niagara Falls should be limited to the term of 25 years, and should also establish the principles applicable to all diversions or uses of water adjacent to the international boundary and of all streams which flow across the boundary. The following principles are suggested:

1. In all navigable waters the use for navigation purposes is of primary and paramount right. The Great Lakes system on the boundary between the United States and Canada, and finding its outlet by the St. Lawrence to the sea, should be maintained in its integrity.

2. Permanent or complete diversions of navigable waters or their tributary streams should only be permitted for domestic purposes and for the use of locks in navigation canals.

3. Diversions can be permitted of a temporary character where the water is taken and returned again, when such diversions do not interfere in any way with the interests of navigation. In such cases each country is to have a right to diversion in equal quantities.

4. No obstruction or diversion shall be permitted in or upon any navigable water crossing the boundary, or in or from streams tributary thereto, which would injuriously affect navigation in either country.

5. Each country shall have the right of diversion for irrigation or extraordinary purposes in equal quantities of the waters of nonnavigable streams crossing the international boundary.

6. A permanent joint commission can deal much more satisfactorily with the settlement of all disputes arising as to the application of these principles, and should be appointed.

The American members are of opinion that the enunciation of principles to govern the making of a general treaty is not within the scope of their functions; moreover the jurisdiction of the American members is restricted to the Great Lakes system.

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Hon. S. W. DEMPSEY,

CHICAGO ASSOCIATION OF COMMERCE,
Chicago, March 21, 1924.

Chairman Rivers and Harbors Committee,

House of Representatives, Washington, D. C.

DEAR MR. DEMPSEY: While testifying before your committee March 17 in support of the Hull bill (S. 2327) you requested me to furnish your committee with rates from Chicago, lake and canal, to New York and thence from New York to Pacific coast ports via Panama Canal, as compared with river-andocean rates from St. Louis to Pacific coast points.

We have searched and find that there are no rates eastbound from Chicago in connection with the Lake and New York Barge Canal except as might be made on contract, which have heretofore been restricted to grain in bulk. In other words, there are no published class and commodity rates from Chicago to New York via the lake-and-canal route.

With reference to rates from St. Louis in connection with the MississippiWarrior bare line, beg to advise there are through published rates, river and ocean, to Pacific coast ports which are uniformly 20 per cent less than the allrail rates. The combination on New Orleans in many cases makes less than the published through rates.

We trust this information will answer your inquiry.
Very truly yours,

J. P. HAYNES.

Hon. WILLIAM E. HULL,

CHICAGO ASSOCIATION OF COMMERCE,
Chicago, January 14, 1924.

House of Representatives, Washington, D. C. DEAR MR. HULL: This will confirm my conversation with you in your office Friday, January 11, relative to the use of the Mississippi River south of St. Louis, Mo., and Cairo, Ill., on traffic moving in connection with railroads to and from 11 States, shown on the statement attached herewith. You will note this statement shows the tonnage moving between January 1, 1923, to November 30, 1923.

Experience has shown that our American transcontinental commerce has been completely revolutionized through the building of the Panama Canal.

This great project has had a tremendous effect upon industrial enterprise in the great State of Illinois and in adjoining territory, in that many products manufactured and produced in this State and those of Minnesota, Wisconsin, Iowa, Missouri, and Indiana have been restricted through failure to meet competition of centers more adjacent to the Atlantic coast, where cheaper transportation is available through the canal.

It is possible to ship many articles from these Midwestern States by rail to Atlantic seaboard and thence by water through the canal to Pacific coast markets more cheaply than by rail direct, or by rail to St. Louis then barge to New Orleans and then by vessel through the canal.

We have seen instances where electric motors from Beloit, Wis.; plumbers' goods from Sheboygan, Wis.; corn sirup, glucose, etc., from Cedar Rapids, Iowa; farm implements from Waterloo, Iowa; pianos from Rockford, Ill.; and multitudes of articles from Chicago, Ill., were moving eastward to Atlantic seaboard to be reshipped by vessel to Pacific coast markets because transportation costs were much less than the all-rail or barge rates through New Orleans. In many instances it is impossible to meet the competition of eastern manufacturers and producers, and in those cases business is lost to the Middle Western States only because it does not enjoy cheaper transportation routes such as the Illinois waterway would provide. (Business is forced to relocate: Crane: Butler Bros.: Seft Manufacturing Co.)

Illinois and her sister States should be given an equal opportunity to distribute their products in the domestic markets and in foreign fields by the development of cheaper transportation facilities.

It is true that the Mississippi Valley district now enjoys the benefits of the barge-line service from St. Louis and Cairo to New Orleans now offered by the Mississippi-Warrior River barge line backed by the Government and many of our shippers in Illinois have been availing themselves of this service when found to be of advantage and as evidenced by the splendid showing in tonnage

by that route. We believe, however, that such service should be extended northward as far as possible to give necessary relief and assistance to this great producing section and to encourage its future growth, as well as enable the Western States to successfully compete with producing sections in the area now receiving the gull benefits of the Panama Canal.

During past years shippers have experienced periods of acute car shortages due to heavy seasonable movements and congestion in the vicinity of the Atlantic seaboard, and it is during such times that the needs of water transportation are keenly felt.

It is our view that it will not be many years when the railroads of this country will be unable to adequately handle the freight offerings, which justifies the full development of inland waterways as a supplemental facility at this time.

The more compelling reason why the Illinois waterway project should receive the support of industrial enterprise in this State of the Chicago district especially, is because their business activities are becoming more and more circumscribed by various elements, including a keener competition by industries more favorably situated to water transportation and by the administration of the fourth section of the interstate commerce act. By way of illustration, we can take the steel industry of Chicago and show that it is steadily losing its markets in the South, Southwest, and the Pacific Coast States due to the ability of eastern mills to lay their products down in some of these markets at from $1 to $7 per ton less than the Chicago mills.

The Pittsburgh steel mills are making intensive use of water transportation through the Ohio and Mississippi Rivers, which enables them to lay their products down at New Orleans at a transportation cost of about $6 per ton, while the all-rail transportation cost is $10.30 per ton, and because of these conditions we say that Chicago mills and other industrial enterprise should be given an equal opportunity to secure its share of the business in these important markets.

The same can be said of many other lines of industry-canned goods from Iowa and Wisconsin, which compete with New England products; machinery from Illinois, Iowa, Wisconsin, etc., against Atlantic seaboard territory, and

so on.

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'Machinery from Cedar Rapids, Iowa, to Pacific coast by rail would take a rate of $2.28 hundredweight, while Atlantic seaboard can obtain rates ranging from 90 cents to $1.25 via the Panama Canal.

"Cedar Rapids can at present ship this machinery to Baltimore, and thence steamer through the Panama Canal, at a rate of $1.96 to $2.15 hundredweight (via Gulf, 5 to 10 cents lower)."

There are large movements of freight from Middle Western States to the Atlantic seaboard for reshipment by vessel through the Panama Canal and we consider that such instances result in the economic waste of transportation and facilities. It takes many western line cars into a very congested territory from which very little return loadings are available, thus necessitating the return of those cars empty after long delays, sometimes extending beyond months and yet we wonder why shippers can not get cars at times.

In discussing the waterway project now before us with the vice president of a large western road some six or eight months ago I was surprised to have him tell me that he favored it. Upon asking his reason, I learned that he believed the waterway would increase the business on his line because it would bring tonnage to his rails and that the car supply would be greatly increased due to the release of equipment upon his own rails on such tonnage delivered to the waterway.

The reality of a 9-foot waterway from Chicago to the Mississippi River would greatly assist in the development of commerce between interior points such as Peoria, St. Louis, and Detroit, Cleveland, Buffalo, in connection with lake vessels.

The large quantities of iron ore required by St. Louis furnaces could be moved by barge from Chicago at low cost and coke brought back.

It is a fact that rail development has not kept pace with the growth of population and commerce, which in a large measure accounts for the traffic jams which become periodic, oftentimes threatening the health of the country in certain sections during winter months, due to the inability to deliver coal. Again during periods of great business revival the country's continued prosperity has frequently been threatened by freight jams and car shortages, and it is because of these conditions that we appeal to you for assistance in solving

our problem by providing a 9-foot continuous waterway from the Great Lakes to the Gulf.

Congress follows:

has committed itself in 1920, under the transportation act, as "SEC. 500. It is hereby declared to be the policy of Congress to promote, encourage and develop water transportation, service and facilties in connection with the commerce of the United States, and to foster and preserve in full vigor both rail and water transportation."

This policy, we believe, will result in the beginning of a new era in transportation, consequently we urge Congress through your committee to give favorable consideration to the 9-foot waterway project, which would give full effect to its policy.

If at any time there is additional information we can furnish you with, please do not hesitate to call on us.

Closing with kindest personal regards.
Yours very truly,

J. P. HAYNES.

Statement of tonnage handled from and to the following States for period January 1, 1923, to November 30, 1923, via Mississippi River Barge Line in connection with railroads.

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Address delivered before

[Suggestions for relief, by Halleck W. Seaman, of Clinton, Iowa.
Farmer-Manufacturer Convention, Chicago, Ill., January 15, 1924.]

As civilization advances and population becomes more congested, the business of society becomes more and more complex. An interdependence of town and country is developed-the tendency toward industrial specialization is accentuated. The old time days of barter, when the shoemaker traded the product of his bench for potatoes or flour, have long since disappeared. Large scale operations on the farm and in the factory are the rule. Our big fortunes are built up from quantity production and quick sales on small margins. The penny, the nimble nickel, and the thin dime are the money symbols that make the world go 'round these days. The Woolworth tower and the Wrigley spire tell the story. They are fine examples in decimal fractions and multiplication.

It is the ups and downs of the humble ha'penny, for instance, and not the scream of the Yankee dollar that determines whether or not the farmer can sell his wheat at a profit. The price is fixed at Liverpool and not at Chicago or New York. Wheat is a world commodity. It is grown in surplus quantities in the four quarters of the globe-in Canada and the United States, in the Argentines and Australia, in Russia, Algeria, and the Transvaal. In all of these producing sections, other than the United States, the wheat lands are comparatively new, of fresh fertility and low-priced, and cheap labor does the work. Their standards of living are below ours-it happens just now that conditions are everywhere abnormal. Therefore, whenever there is a world wide surplus of wheat, as now, if our American wheat is to find a market abroad, it stands to reason that it must be sold on at least an even

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