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is the greatest power stream in America. It has flooded its lower sections at times, but Congressman Smith can tell you more about that than I can. There is a navigation aspect to all of these things. Bonneville pools the river for a great many miles above that dam.

And as other dams are built, they would pool the river clear up to Snake River and above.

Mr. ANGELL. Senator, the Grand Coulee Dam cuts off the river entirely leaving no means for ships to pass through the dam. There is no navigation from the river below the dam to the lake above the dam made by it. In that respect it is different from Bonneville, and that is the reason that the War Department did not have any thing to do with the construction of the dam.

Senator BONE. There will be a lot of navigation on the river above Grand Coulee.

Mr. PETERSON. Who controls that?

Senator BONE. I imagine that the War Department would have control of the navigation features. The War Department would probably make the necessary regulations as to navigation.

Mr. SMITH. There is nothing new in the bill regarding navigation.

Senator OVERTON. There is nothing with respect to Grand Coulee, but there is with respect to Bonneville.

Senator BONE. That was an outright power and navigation dam. The Bonneville Dam pools the Columbia River for many miles above

. that dam. It opens navigation in the Columbia for quite a distance above the dam.

Mr. ANGELL. Senator, may I observe that the Columbia River is the second largest river in the United States, and it is the largest so far as power is concerned.

Mr. DONDERO. Is there any other agency of the Government besides the War Department that has control over navigation?

Mr. Smith. There is no other agency.

Mr. DONDERO. Whatever navigation will be on the Columbia River above Grand Coulee should be assigned to the War Department to control?

Mr. SMITH. I think that they would have that inherent right, Mr. Dondero, under the statutory law, and we would not attempt to change that, and there is no change in the bill in that respect. We do not interfere with the jurisdiction of the War Department whatsoever. This was primarily a navigation project, and the Grand Coulee project was primarily a reclamation project, and, of course, in the case of one the Bureau of Reclamation had jurisdiction, and in the case of Bonneville, being a navigation project, the War Department had and has jurisdiction, and we do not attempt to change that in any respect in this bill.

Mr. PETERSON. Senator Bone has stated that under the Bonneville Act there are two agencies, that the War Department was to build it and the Interior Department is the distributing agency. It is not quite clear to me who at present is the distributing agency for Grand Coulee, or is there any authorization at the present for that?

Mr. Smith. The Department of the Interior, of course, is acting as that distribution agency at the present time. The Bonneville Power Administration is the only agency that is in position to exercise jurisdiction in regard to that, and they are doing it.

Mr. PETERSON. Do I understand that there is no authority, insofar as an act of Congress is concerned, to distribute this power in both projects ?

Senator OVERTON. No statutory power. One of the purposes of this bill is to give statutory authority to the Columbia Power Administration to distribute that electric energy. .

Mr. SMITH. I believe that that was also covered by the amendment that was enacted in the Seventy-sixth Congress, Public Law No. 429, which was H. R. 7270. That provided for the sale and distribution and marketing by the administrator, which was amendatory of the act of 1937.

Senator OVERTON. That related to both dams?
Mr. Smith. That related primarily to Bonneville.

Some reference has been made to the rates. I believe that the gentleman from Michigan referred to them. Of course, under existing law the rates are subject to approval by the Federal Power Commission, and that continues to be the case under the present act.

Mr. DONDERO. The administrators of these two power projects formulate the rates ?

Mr. SMITH. Yes; and they are subject to approval by the Federal Power Commission.

Senator OVERTON. On page 4 of the Senate bill, lines 4 to 7, there is this language:

The Secretary of War shall schedule the operations of the several electrical generating units and appurtenant equipment of the said project in accordance with the requirements of the administration.

We placed the Secretary of War in absolute control of the Columbia River Power Administration with reference to the operation of electrical generating units on the Bonneville project. As has been pointed out, that project was fundamentally, if not primarily, for the purpose of flood control and navigation.

Should there not be some provision that the authority here proposed to be given shall not injuriously interfere with the navigation and flood control features of the project, in the opinion of the Chief of Engineers?

Mr. SMITH. Of course, I may say that the War Department has submitted a favorable report on this bill, and they apparently are satisfied with the language in the act as introduced. I do not believe that that could be construed to justify any interference with the prerogatives of the Army engineers, but if the committee should feel that an amendment to clarify that, to make it doubly certain, should be inserted, I could not see any objection to it. But the Army engineers have expressed themselves as being satisfied with this language in the bill.

Senator OVERTON. I understand that, but would it not be well to insert a provision in the bill in order to safeguard that, on page 4, line 7, to the effect that such operation shall not in the opinion of the Chief of Engineers adversely affect navigation and flood control?

Mr. Smith. It might be well to consider such an amendment.

Mr. DONDERO. I think the question that Senator Overton has raised is pertinent. The administration may call for such operation as the Secretary of War would refuse to grant. Suppose that the bill were amended to read that the concurrence of the War Department should be secured; it might remove the point that Senator Overton referred to.

Mr. Smith. Yes; so as not to interfere with navigation and flood control.

Senator OVERTON. I do not think it necessary to have the Secretary of War concur in all of these operations, but certainly in those operations that would detrimentally affect navigation and flood control I think the Chief of Engineers or the Secretary of War should have some authority.

Senator Bons. May I suggest that this has been operating for a good many years, and all that the engineers need do is to open the locks to let the boats through? They cannot control the stages of the river. They operate the dam and power units. Senator MeNary and I worked out the formula and all that the administrator does there is to tell them how much power he wants.

Mr. DONDERO. I take it that the words "schedule the operations" mean simply the physical operation of the plant ?

Senator BONE. It simply means the scheduled timing of operation of generators, concerning which the War Department has nothing to do, and does not want it. The War Department is interested in navigation and the locks, and that is all, and they use some power there for that purpose, and no more, and they are not concerned with the sale of power. They merely produce the power. For instance, if the Administrator wants more power, he simply tells them to turn the water through the turbines, and that is the only relationship existing there, and it has been a pleasant one. The Army engineers do not want to run a power business. They are content to have charge of the dam, and that is the only function they perform.

It has worked out very satisfactorily. The only thing that they can do is to open the locks if the water gets too high, and there is no physical operation that can ever cause any trouble.

Senator BURTON. I understand that both this sentence that we are discussing and the preceeding sentence are practically in the same language as in the existing act?

Mr. SMITH. Yes.

Senator Button. Referring particularly to the sentence to which the chairman referred:

The Secretary of War shall schedule the operations of the several electrical generating units and appurtenant equipment of the said project in accordance with the requirements of the Administration.

I can understand that that would have to do primarily with the use of existing equipment. The only effect that I can see that it would have on navigation might be that it might lower the stage of the water above the dam, and raise it below the dam, if they had a lot of water, but it would not have a permanent effect.

But the preceding sentence I do think might be material to the point that you raise, because it says that

The Secretary of War shall construct, install, and maintain additional machinery, equipment, and facilities for the generation of electric energy at the Bonneville project when in the judgment of the Administration such additional generating facilities are desirable to meet actual or potential market requirements for such electric energy.

That might involve a change in the structure of the plant.

Senator BONE. No. That was put in because the War Department did not want to relinquish control of the dam, and because many people in Washington and in the Administration felt that the War Department should retain control of the structure. So, in practical effect, that simply means that the Department must carry in its budget the required amounts for new generating equipment, and that is aìl. That is what it means.

Senator BURTON. But it says that they shall enlarge it when the Administration thinks that it should be enlarged.

Senator Bone. The plant was built for a power plant as well as for navigation in the river, and, of course, as the power load increased, someone has to enlarge it. I drew a bill last year which turned all of the power facilities, the dam and everything, over to the Administration that we seek to set up here, but that did not meet with approval in some quarters, and we went back to the original formula which has worked all right, of the War Department year by year putting more generation at Bonneville, and there has been no protest that I know of. If this relationship had not worked out smoothly, we would have known about it.

Mr. Smith. It has been in effect 4 or 5 years.
Senator BONE. It has been in effect since 1937.

Mr. PETERSON. As I recall, the Bonneville project as originally reported by the War Department would require an additional sum of money to complete the project-I believe around $11,000,000.

Mr. Smith. The cost of additional generating equipment and, of course, for the completion of transmission lines, and substations.

Mr. PETERSON. This sentence which the Senator referred to here might be construed, might it not, as an authorization on the part of this committee for the appropriation of that additional fund ?

Senator BONE. I do not think so, because all of those items have to be carried in the War Department budget, and they have been adding to power installations there as rapidly as they could because of the pressing need out there for aluminum production.

Mr. PETERSON. Where would they get the additional funds?

Senator BONE. The War Department puts that in its budget. In other words, that budget has to come before Congress and be approved

Mr. PETERSON. I understand that the budget does, but this would seem to come very close to being an authorization on the part of Congress to appropriate these additional funds.

Senator BONE. As a matter of fact, there has been previously a full congressional appropriation for the full power installation at Bonneville, so the question would be moot in any event. I have forgotten how many generators have been authorized.

Mr. Smith. There have been 10 authorized.

Senator Bone. Full generation has been authorized, so, in any event, that question is water over the dam. We have authorized all the power units they could use.

Senator BURTON. “Water over the dam" is a particularly appropriate phrase in that connection.

Senator OVERTON. Both figuratively and literally.

Mr. Smith. Of course, this same provision has been on the books for 5 years, and we have had to go back to Congress for any addi

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tional funds that have been required, and Congress has had to appropriate those funds.

Now, resuming my statement: I am convinced, however, that the new duties that we impose upon the administration of the tremendous Columbia River development make the position of Administrator one that should properly be filled by appointment by the President with the advice and consent of the Senate.

In rewriting this section we have dispensed with the advisory board of representatives of the Secretaries of War, Agriculture, and Interior and of the Federal Power Commission. Since the Columbia Power Administration is simply a power sales agency, this board does not seem appropriate or necessary to the administration of this program.

Mr. DONDERO. May I ask at that point if the language is the same as that applying to the T. V. A., with regard to the General Accounting Office?

Mr. SMITH. It is, substantially.
Senator OVERTON. What provisions of the bill are you referring to?
Mr. SMITH. Section 2 (f).
Senator OVERTON. It is section 6 in the present bill.
Mr. Smith. It is section 6 in the present bill.
Senator OVERTON. Suppose you read the language.

Senator Bone. The language in the T. V. A. Act is not the same as this. It is on page 5.

Mr. Smith. That is at the bottom of page 5:

Section 2 (f) of the said Bonneville Act is hereby amended by adding at the end thereof the following:

"Other provisions of law governing the expenditure of public funds shall not apply to the Administration's expenditures or to its contracts, agreements, and arrangements. The Secretary of the Interior may prescribe by regulation the Administration's procedure for authorizing or approving its expenditures, contracts, agreements, and arrangements; and the Secretary's determination as to whether this Act authorizes particular expenditures, contracts, agreements, or arrangements of any kind or class shall be final and conclusive upon all officers of the Government.'

Senator OVERTON. It seems that that provision removes all jurisdiction of the General Accounting Office. That gives the Administrator sole and exclusive right to make such expenditures as he deems proper, and his findings are final and conclusive with respect to all officers of the Government.

Mr. SMITH. Of course, in the marketing and sale and distribution of the power, which involves doing a general power business the same as would be engaged in by a private company, it is necessary to vest discretion in those who are in charge of the project. If we have sufficient confidence in those men to have them named to these positions, they are responsible; they are under bond; and I think there is an oath of office required also in the act under the present law which is retained in this amended act. These are all matters of policy, it seems to me, as to the wisdom or lack of wisdom in making these expenditures. The purpose of the General Accounting Office is one of bookkeeping and accounting, it seems to me.

It has been claimed and asserted—I think with some degree of justification-for many years and more recently that oftentimes the General Accounting Office—the Comptroller General-will attempt to usurp the function of the administrative officers and decide whether an expenditure should or should not be made, involving

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