268 DOCUMENTARY HISTORY OF THE FLORIDA OANAL

 $700,000. The estimated average annual savings in transportation costs are
 800,000. This gives a ratio of cost to benefit of 1 to 1.05. There are, of course,
 other intangible benefits not directly measurable in transportation savings
 which will result from a protected inner route connecting the harbors of Phila-
 delphia and Baltimore.
 (6) Cape Cod Canl.-The improvement of the Cape Cod Canal now under
 way will result in a small annual saving in present costs for maintenance and
 operation. With interest on the investment at 4 percent, and considering this
 saving, the net annual cost for the canal will be $1,000,000. The transportation
 savings from the increased commerce anticipated to use the improved canal are
 estimated at $910000 annually. The canal will also eliminate loss of life and
 damage to shipping, which has averaged annually about $500,000. The total
 anticipated savings are, therefore, $1,410,000, giving a ratio of cost to benefit of
 1 to 1.8. Other intangible benefits, such as the reduction in delays to ship-
 ping, cannot be estimated in monetary value.
 (c) The upper Mississippi Rver.-The estimated annual cost of the upper
 Mississippi River project is n$7,675000. Potential annual savings are estimated
 at approximately $8,000,000, which gives a ratio of cost to benefit of 1 to 1.04.
 The incidental advantages which will result from this improvement to provide
 an interconnecting inland waterway serving the central United States are difi-
 cult to give a monetary value but will undoubtedly be material.
 (d) New York and New Jersey channels.-The annual cost of this improve-
 ment is estimated at $1,307,000. The transportation savings are estimated at
 $2,575,000 annually, giving a ratio of cost to benefit of 1 to 1.97.
 (e) Delaware River between Philadelphia and Trenton.-The estimated an-
 nual cost of this improvement is $347,000. The estimated annual savings in
 transportation costs are $406,000, giving a ratio cost to benefit of approximately
 1 to 2.
 (f) Missouri River navigation.-The estimated annual cost of this improve-
 ment is $15,400,000. The potential transportation savings below Sioux City are
 estimated at $11,760,000 by the district engineer. The Fort Peck Reservoir has
 an annual value of $500,000 for flood-control purposes. The commerce above
 Sioux City shows a potential annual saving of $2000,000. This gives a total
 annual saving of $14,20,000, which gives a ratio of cost to benefits of approxi-
 mately 1 to 1. However, the incidental benefits from this project are very mate-
 rial. The stabilization of the river channel will be of considerable value in
 reducing blood damages from minor floods and will prevent the annual erosion
 of the banks, which has resulted in enormous damages each year. It is prob-
 able that the incidental benefits from the improvement of the Missouri River
 are almost as great as the benefits to navigation. These benefits, however, have
 not been evaluated and are not included in the above ratio.
 (g) Great Lakes connecting channels.-This improvement will have an annual
 cost of approximately $807,400 but will result in annual savings of $4,67,000,
 the ratio of cost to benefit being approximately 1 to 528.
 (h) Beaver-Mahoning.-The annual cost of the proposed Beaver-Mahoning
 canalization is $2,710,000. The potential savings in transportation costs are
 estimated at $3,120,000, giving a ratio cost to benefit of 1 to 1.15. Included in
 the annual cost is interest at 6 percent on the $10,000,000, which represents the
 cost of the project to local interests. With this cost eliminated, the ratio of
 cost to benefit, insofar as the Federal funds are concerned, would be materially
 decreased.
 Very truly yours,
 Er M. MABKHAM,
 Major General, Chief of Engineers.


 DOCUMENT NO. 116 (FILES OF THE SENATE COMMITTEE ON
 APPROPRIATIONS, MARCH 5, 1936

WAR DEPARTMENT APPROPRIATION BILU FOB 1937-HEARINGS BEFOE
 THE SUBCOMMIITEE OF THE SENATE COMMrrIEE ON APPROPRIATIONS,
 SEVENTT-FOURTH CONGRESS, SECOND SESSION
 The War Department appropriation bill for the fiscal year ending
June 30, 1937, having passed the House, and that body having failed
to include in the bill the budgetary items providing for the Florida