TABLE A.-Statement showing estimated diversions of all companies and importation of power into the United States from Canadian companies, vicinity of Niagara Falls, N. Y., for month of December, 1911.

The permit issued to the Niagara Falls Power Co. by the Secretary of War specified 52,500 electrical horsepower as the maximum load that can be brought into the United States, with the provision that "Peaks of load curves due to overlapping loads will not be considered as violations of the permit, provided the duration of any one such peak, measured on the 52,500 horsepower line, does not exceed one hour, and provided that the total duration of such peaks in 24 hours, measured in the same manner, does not exceed two hours."

NOTES. The diversions of the Canadian companies are determined by applying the efficiencies of these plants, as stated in report of Sept. 30, 1911, to the output of power as determined by the inspections of the companies' records.

The Lockport Hydraulic Co. (IIydraulic Race Co.) has been shut down since the close of navigation owing to the reconstruction of canal in that vicinity.

The maximum diversion indicated above for the Niagara Falls Hydraulic Power & Manufacturing Co. is determined by applying the coefficient of relation between diversion and output, as determined by the discharge observations of December last, to the maximum output of the plant in December. This apparent violation of this company's permit occurred after discharge measurements were made and before reductions of the notes had been completed and limitations of output prescribed. Further investigation of this matter is being made preparatory to submitting a special report.

The amount of power imported is determined by direct inspection of graphic records of the transmission companies for December last.

STATEMENT AS TO THE EFFECT ON LAKE ERIE COMMERCE OF A PERMANENT LOWERING OF ONE INCH IN THE WATER SURFACE OF LAKE ERIE.

In view of the general interest in the very important question of the water levels of the Great Lakes, referred to incidentally at the public hearings relative to the Niagara Falls diversion, it is deemed pertinent to invite attention of the committee to the statement of Brig. Gen. William L. Marshall, Chief of Engineers, in transmitting to the Secretary of War Maj. Keller's report of November 30, 1908 (p. 8, S. Doc. No. 105, 62d Cong., 1st sess.), to the following effect:

"As each inch of draft for the modern lake freighter is the equivalent of from 80 to 100 tons of profitable cargo, the aggregate loss per season for the entire fleet using Lake Erie ports as terminals becomes a very large amount." Maj. Keller in his report (p. 15, S. Doc. No. 105, 62d Cong., 1st sess.), said: "The earning capacity of each freighter will be reduced to the extent of $75 to $100 per trip. During an average season the loss for each vessel would total $2,500 to $3,000."

The total commerce using Lake Erie ports may be stated as approximately 63,000,000 tons per annum, of which from 30,000,000 to 40,000,000 tons is now carried in vessels of 10,000 tons burden or over, which may be affected in any lowering of the water surface. Based upon the above figures, and assuming that cargo is available in quantity to permit the loading of each vessel on each trip, to the maximum draft permitted by the controlling depths of Lake Erie ports, the total potential loss to Lake Erie commerce due to a permanent lowering of 1 inch in the water surface may be taken at from $250,000 to $350,000 per annum; and this potential figure will increase with the antici

pated natural increase in the number and size of the larger vessels, and in the total commerce of the lake. When the time comes that a matter of inches becomes a question of immediate importance to Lake Erie commerce, any lowering of that lake due to the Niagara diversions (which affect only Lake Erie and upper Niagara River) can be readily controlled by proper regulation works in Niagara River; although such slight effect and ready control will not be true of the Chicago diversion which is several times greater in amount, and must affect all four lower lakes and the St. Lawrence River, to a serious extent, unless controlled at several places by regulation works of great final cost in time and money.

STATEMENT AS TO THE USE OF WATER DIVERTED FROM THE ERIE CANAL BY THE HYDRAULIC RACE CO. (SUCCESSORS OF THE LOCKPORT HYDRAULIC Co.)

Upon the request of the Hydraulic Race Co. of Lockport, N. Y., there is transmitted herewith for the information of the committee a copy of a letter from the Hydraulic Race Co., dated January 20, 1912, in regard to the use of the water diverted by that company from the Erie Canal for power purposes, under their permit to divert 500 cubic feet per second, granted by the Secretary of War under date of August 16, 1907. While this office has not been able, in the time available since receipt of this letter, to verify the figures stated therein, it is within the knowledge of this office that the general statements made are substantially correct; and in view of the prominence given at the public hearings to the principle that all water diverted at Niagara Falls should be used in such manner as to utilize the maximum possible head, it is deemed to be but fair and just to the Hydraulic Race Co. to place before the committee this statement, showing that while the Hydraulic Race Co. at its own plant uses but a 50-foot head (approximately the fall between the two levels of the Erie Canal at Lockport) the water diverted by them under their permit again passes out of the canal below the locks and is used over and over again by other power users between the Erie Canal and Lake Ontario, so that the total head finally utilized is a very large percentage of the total head available. This successive use of the water is distinctly provided for by the terms of the permit issued by the Secretary of War to the Hydraulic Race Co., as will be seen by reference to that document.

Gen. W. H. BIXBY,

HYDRAULIC RACE CO., Lockport, N. Y., January 20, 1912.

Chief of Engineers, United States Army,

Washington, D. C.

DEAR SIR: We have before us copy of document No. 246 entitled "Preservation of Niagara Falls." On page 16 of this document is a table which indicates that the Lockport Hydraulic Co. is using but 11 per cent of the efficiency of a 220-foot fall, which will, we fear, lead many into a belief that the water granted (500 cubic feet) under the permit is a less economical development than any of the others, when, as a matter of fact, the water is used under a much greater head than any other water diverted from Niagara River.

In explanation, we add that reference to the permit of August 16, 1907, will show that it specifically provided for the use of the water by factories on Eighteenmile Creek, Medina, Albion, and other places after its passage through the development of the hydraulic company. It may fairly be said that no other Niagara River water performs a greater use in promoting the interests of the small consumer and individual manufacturer than that granted to the Lockport Hydraulic Co., nor is any more fully used.

We have taken the water practically at Lake Erie level (the level above the locks being usually between 569 and 570), and of the total fall of about 320 feet from this point to Lake Ontario over 280 feet is available, and, in the end, improved operating conditions and changes will result in utilization of even

more.

We give the following heads as approximately correct for the various sites beginning at Lockport and extending down Eighteenmile Creek to Olcott:

All the plants of Eighteenmile Creek are practically entirely dependent for their operation on the permit of August, 1907, for their water power.

Our company's head will be lessened somewhat under new conditions of the barge canal, and one or two of the falls are not utilized at date, notably that of the western New York Water Co.

All these powers and their operation have been very much disturbed by the building of the new barge canal, but should be greatly improved in the future with more stable conditions, and it is possible that almost the entire fall to Lake Ontario will be utilized, and the total should certainly reach 300 feet, which compares more than favorably with the 220 feet available at Niagara Falls.

While we are not familiar with present conditions at the plants now operating on Eighteenmile Creek, it is fair to state that the head actually in use now is approximately 220 feet, so that the efficiency of this development on this basis should, we believe, be higher than any of the others, and the power even now amounts to several thousand horsepower.

We would appreciate it if the report may be amended in these particulars. lest some injury be done the various interests which have for so many years and before the passage of the Burton Act had the use of this water and upon which water their success now so largely depends.

We are sending this to you rather hastily, as we believe that there is to be a meeting on this whole question on Tuesday next, January 23, and you may wish to have this data before you and the others at that time.

We would appreciate your advices and trust the data may be of service. Respectfully submitted.

HYDRAULIC RACE CO.,
By L. H. KUNHARDT,
Treasurer and Engineer.

PERMIT TO LOCKPORT HYDRAULIC CO. FOR DIVERSION OF WATER AT LOCKPORT, N. y.

Whereas by section 2 of an act of Congress approved June 29, 1906, entitled "An act for the control and regulation of the waters of Niagara River, for the preservation of Niagara Falls, and for other purposes" (34 Stat. L., 626), it is provided that the Secretary of War is authorized to grant permits for the diversion of water in the United States from the Niagara River or its tributaries, for the creation of power, to individuals, companies, or corporations, which are now actually producing power from the waters of said river, or its tributaries in the State of New York, or from the Erie Canal; to an amount not exceeding in the maximum 8,600 cubic feet per second to any one individual, company, or corporation and not exceeding an aggregate amount of 15,600 cubic feet per second; and

Whereas waters are being diverted from the Erie Canal for the creation of power by the Lockport Hydraulic Co., a corporation organized under the laws of the State of New York, at Lockport, N. Y., by the abstraction of approximately 1,000 cubic feet of water per second from above the locks at said place,

which water is returned to the Erie Canal below the locks, of which total quantity 500 cubic feet is required for navigation purposes and the remaining 500 cubic feet is not required for navigation purposes; and

Whereas the said waters not required for navigation purposes, after being returned to the canal below the locks, are again diverted from the canal and are used for power purposes by various persons and corporations located upon Eighteenmile Creek, at and below Lockport, and at Middleport, at Medina, at Eagle Harbor, at Albion, at Holley, and at other places, and are not returned to the canal; many of the persons or corporations on Eighteenmile Creek using the same water in succession, one after the other; and

Whereas application has been made to the Secretary of War by the Lockport Hydraulic Co. for permission to divert 500 cubic feet per second from the Erie Canal at Lockport above the locks, and application has been made by various persons and corporations to divert various amounts from the Erie Canal below the locks; and

Whereas the diversion of water from the Erie Canal below the locks is not properly the diversion of water from the Niagara River or its tributaries, since said water diverted below the locks has already been diverted from above the locks and has been used for power purposes:

Now, therefore, this is to certify that the Secretary of War hereby grants permission to the Lockport Hydraulic Co., said applicant, to divert waters of the Niagara River and its tributaries from the Erie Canal, at Lockport, N. Y., above the locks, for power purposes, not exceeding 500 cubic feet per second, it being distinctly understood that the waters so diverted shall be returned to the canal below the locks, and that this permit shall inure to the benefit of all persons and corporations now using said water for power purposes, whether lessees of the applicant or having the right to be furnished by it with water, and including the persons and corporations now diverting water as aforesaid from the Erie Canal at Eighteenmile Creek, Middleport, Medina, Eagle Harbor, Albion, Holley, and other places on the lower level.

This permit is granted upon condition and with the understanding that it does not confer upon the applicant, or said other persons or corporations, any authority whatever to divert water from the Erie Canal without the consent of the State of New York, and that this permit is subject to any and all regulations which may be imposed upon the diversion of water from said canal by said State; and, further, that this permit is made subject to the jurisdiction of said State to alter, improve, or abolish the said canal and to prevent the diversion of any water whatever therefrom, and this permit shall not be taken to impose any obligation whatever upon the said State or the authorities thereof. It is intended to confer only so far as the Federal Government is concerned, and the Secretary of War is authorized, the right to take the water and to claim immunity from any prosecution or legal obligation under the first section of the act approved June 29, 1906, above mentioned. Witness my hand this 16th day of August, 1907.

WM. H. TAFT, Secretary of War.

Extended September 2, 1911, to March 1, 1912.

PERMIT TO NIAGARA FALLS HYDRAULIC POWER & MANUFACTURING CO. FOR THE DIVERSION OF WATER FROM THE NIAGARA RIVER FOR POWER PURPOSES.

Whereas under the provisions of an act of Congress approved June 29, 1906. entitled "An act for the control and regulation of the Niagara River for the preservation of Niagara Falls and other purposes." it is provided that the Secretary of War may grant permits for the diversion of water in the United States from said Niagara River or its tributaries for the creation of power, and that it shall not be lawful to divert water from said river for power purposes except in accordance with permits so issued by the Secretary of War; and

Whereas upon the applications, hearings, reports, and all the proceedings by applicants for permits under the provisions of the said act the Secretary of War, under date of January 18, 1907, filed a written opinion directing, among other things, that a permit be issued to the Niagara Falls Hydraulic Power & Manufacturing Co. for the diversion of 6.500 cubic feet per second;

Now, therefore, this is to certify that the Secretary of War hereby gives permission to the Niagara Falls Hydraulic Power & Manufacturing Co. to 28305-12-21

divert 6,500 cubic feet of water per second from the Niagara River upon the following terms and conditions:

First. The amount above named, 6,500 cubic feet per second, represents the maximum quantity of water that can be diverted at any time under the terms of this permit.

Second. The grantee shall make, under the supervision of an authorized inspector of the United States, measurements in its intake canals of such a eharacter and at such times as may be deemed necessary to show the amount of water diverted.

Third. The grantee shall keep such records as will show at any time the combined continuous output of its power stations and of the power stations of its customers to whom water power or mechanical horsepower is furnished.

Fourth. The power stations of the grantee and of its customers, to whom water power or mechanical horsepower is furnished, together with their operating records, shall be subject to inspection at all times by authorized inspectors of the United States.

Fifth. This permit is issued without any determination of priority of right to divert water from the Niagara River between the parties to whom permits for diversion may be issued.

Sixth. The grantee shall carry out in good faith the obligations which it assumed in its letters to the War Department, or to the representative of that Department, concerning the improvement of the scenic conditions on the American side of the gorge below the Upper Arch Bridge.

Seventh. The Secretary of War reserves the right at any time to modify the form of this permit, to change the method or plan of measurement herein prescribed, or to substitute other methods of measurement whenever, in his judgment, such modifications, changes, or substitutions are necessary to carry out the provisions of the act of June 29, 1906, under which this permit is issued. Witness my hand this 16th day of August, 1907.

WM. H. TAFT, Secretary of War.

Extended September 2, 1911, to March 1, 1912.

Permit to Niagara Falls Power Co. for the diversion of water from the Niagara River for power purposes.

Whereas, under the provisions of an act of Congress, approved June 29, 1906, entitled "An act for the control and regulation of the Niagara River for the preservation of Niagara Falls, and other purposes," it is provided that the Secretary of War may grant permits for the diversion of water in the United States from said Niagara River or its tributaries for the creation of power, and, that it shall not be lawful to divert water from said river, for power purposes, except in accordance with permits so issued by the Secretary of War; and Whereas, upon the applications, hearings, reports, and all the proceedings by applicants for permits under the provisions of the said act, the Secretary of War, under date of January 18, 1907, filed a written opinion, directing, among other things, that a permit be issued to the Niagara Falls Power Co. for the diversion of 8.600 cubic feet per second:

Now, therefore, this is to certify that the Secretary of War hereby gives permission to the Niagara Falls Power Co. to divert 8,600 cubic feet of water per second from the Niagara River, upon the following terms and conditions: First. The amount above named. 8,600 cubic feet per second, represents the maximum quantity of water that can be diverted at any time under the terms of this permit.

Second. The grantee shall make, under the supervision of an authorized inspector of the United States, measurements in its intake canals of such a character and at such times as may be deemed necessary to show the amount of water diverted.

Third. The grantee shall keep such records as will show at any time the combined continuous output of its power stations and of the power stations of its customers to whom water power or mechanical horsepower is furnished.

Fourth. The power stations of the grantee, and of its customers, to whom water power or mechanical horsepower is furnished, together with their oper