Summary of additional revenue received: Purpose: Conservation. Year: 1961. Value: $118,044.

Value per acre excluding fallowed or idle land, $334.73.

The item "Duplicate areas" appearing in the tabulation above is made of the following:

Source: Compiled by J. F. Chambers, superintendent, irrigation services, Jan. 11, 1963.

Senator HAYDEN. You have demonstrated, sir, that what has been done can continue, and that even a great development can take place if the central Arizona project is constructed.

Mr. CORBELL. That is the only way we can continue, with additional

water.

Senator HAYDEN. It is about 4 o'clock. I think I will adjourn this meeting until 10 o'clock tomorrow morning when we have some 12 other witnesses who desire to be heard, and we will see if we can do that tomorrow.

We stand in recess.

(Whereupon, at 4 p.m., the committee adjourned, to reconvene at 10 a.m., Wednesday, October 2, 1963.)

CENTRAL ARIZONA PROJECT

WEDNESDAY, OCTOBER 2, 1963

U.S. SENATE,

SUBCOMMITTEE ON IRRIGATION AND RECLAMATION

OF THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,

Washington, D.C. The subcommittee met, pursuant to recess, at 10:04 a.m., in room 3110, New Senate Office Building, Senator Frank E. Moss presiding. Present: Senators Moss, Hayden, Kuchel, and Jordan of Idaho. Also present: Senators Bible and Goldwater.

Jerry Verkler, staff director; Roy M. Whitacre, professional staff member; and Stewart French, chief counsel.

Senator Moss. The subcommittee will come to order.

We will continue with our hearing today on S. 1658.

Yesterday we were able to hear from, I think, 13 witnesses, and we still have about that many to go.

And the purpose of the hearing, of course, is to build the record so that the subcommittee and the full committee will have before it all the information necessary when it comes to considering the bill. I would suggest that, because of the pressure of time and the number of witnesses, that wherever possible a witness would submit his written statement to be placed in the record which will then preserve it fully for the committee and as far as his oral presentation is concerned, limit himself to highlighting or calling attention to certain parts that he thinks should be emphasized, if that is what he feels. The thing that I am pointing out is that the record will be just as full as if the witness read orally, every bit of it.

As you recognize, all members of the subcommittee can't be here anyway, to hear the oral presentation and besides, there are many other members of the full committee who are going to have to read the record in order to be fully informed.

I say this also because of the fact that this afternoon in the Senate we have some controlled time on a bill that is before us and it would indicate that there would be a number of votes and when there is a vote, of course we will just have to fold up and all go over and vote. And that will make it more difficult to proceed this afternoon. So I would like to move along as rapidly as we can this morning. I am not going to be able to be here all of the time and when I have to leave I will again ask my colleague, Senator Hayden, to preside. Our first witness this morning is Mr. McMullin, general manager of the Salt River project.

We are very glad to have you, Rod, and you may proceed.

24-493-63-pt. 1- 13

STATEMENT OF R. J. McMULLIN, GENERAL MANAGER, SALT RIVER

PROJECT

Mr. McMULLIN. Mr. Chairman and gentlemen, my name is R. J. McMullin and I am general manager of the Salt River project located near Phoenix in central Arizona.

The Salt River project, as many of you are aware, is the oldest and most successful multipurpose project in the Nation, having delivered water to nearly 250,000 acres of member lands since soon after the turn of this century, and having made low-cost power available to over 5,000 square miles of service area for the better part of this period. I am sure you are also aware that this project has been an instrumental force in support of a burgeoning economy in the fastest growing part of our Nation. At the same time, the Salt River project has been a markedly successful economic entity in itself, having long since paid off its initial Federal loan.

It is my pleasure to have this opportunity to speak to you on behalf of the proposed central Arizona project. You gentlemen have explored and will explore further the many and varied technical features and feasibility of this great and worthwhile project. The Salt River project was also once a dream, then a feasibility study, then a reality and now a worldwide recognized, successful reclamation project.

The Salt River project is located in the central part of Arizona on what was desert wastelands a few short years ago. I would like to enumerate, in general, the project facilities, its effect on the local, State and National economy, and the benefits which it provides. This review will emphasize what the existing water supply has created, what has been done to conserve this supply and the need for additional

water.

The major facilities of the Salt River project include six dams and reservoirs and a diversion dam, together with hydroelectric and thermal generating plants. The reservoir capacity on the Salt and Verde totals in excess of 2 million acre-feet. Our project has constructed, operates and maintains 250 deep well pumps and over 1,250 miles of canals, laterals, and supporting facilities.

The present project works represent an outlay of $200 million. Of that amount, $28 million was advanced by the Federal Government, and the balance financed through the sale of bonds and by retained earnings. Regular payments are being made to the Federal Treasury on $112 million balance. The Salt River project's $101 million bonded indebtedness is exceeded only by the city of Phoenix. It thus becomes the second largest municipal borrower in the State of Arizona.

The project participates directly in the area's economy through purchases of materials and services amounting to over $15 million annually, plus payrolls in excess of $10 million per year to over 1,750 employees.

All annual taxes paid by the project currently approach $1 million, and under a new agreement with the State taxes and annual payments in lieu of taxes within the next 10 years are expected to reach $7 million.

For an initial investment of $10 million the project area has returned to the Federal Treasury $1,046 billion in excise and income