ities preferred not to have TVA extend lines into those areas, although the areas served are within the legal service area of TVA. If TVA's area is limited to its existing lines, there would be no necessity or incentive for renewal of these agreements when they expire, and those power distributors who receive service over the facilities of the private utility company would be at the mercy of that company for whatever rate and whatever service conditions they might care to negotiate. I feel that this type of situation thrust upon them would be a major breach of faith and I am sure that this committee would not condone such action. The TVA Act of 1933 provides that TVA would be limited to economical transmission distances from TVA dams. Opponents of TVA would have you believe that TVA could build a new steam plant on the perimeter of its area and serve any area within economical transmission distance of that plant. This definitely is not the case, as the act specifically provides "economical transmission distance of TVA dams," and certainly the dam must be built where the water is, on the Tennessee River. It is rather difficult to relocate a river. It is my opinion that the TVA area as we now know it will remain its area from now on and I do not believe that there is any necessity for fixing this limit by law. Gentlemen, we in the Tennessee Valley urge that you consider a Tennessee Valley Authority Act which will enable TVA to finance itself without hampering restrictions in order to provide the necessary power-generating facilities to supply those of us who have committed our economy into the hands and to the guidance of TVA. We also urge that you place no limitations on TVA power-service area other than those already prescribed in the TVA Act of 1933. We have built our entire economic structure in the Tennessee Valley on an abundance of low-priced power. We urge that TVA be placed in a position to continue to supply to us in order that we in the valley may continue to grow and prosper. Thank you. Mr. Chairman, I would like to bring up again something that disturbs us no end, and I am saying this not as a rural electric association but as a member of the executive committee of the A. and I. Board of Mississippi. In my work with the chamber of commerce in Columbus I am on the legislative action committee of our Columbus Chamber of Commerce, and 1 or 2 other committees but in such capacity, and I presume in connection with a committee which I serve, the Mississippi econmic council, I get the special Congressional Action Committee Bulletin that comes out of the United States Chamber of Commerce. I have one here, issued April 26, 1957, by the national resources department of the United States Chamber of Commerce. It starts off: The Tennessee Valley Authority is in a dilemma. It goes through the entire dilemma. It lists the members of the House committee, the Appropriations Committee on TVA, the House Public Works Committee, and the gentlemen of this committee are also listed. It ends up: Congressional action committee members have an expanding opportunity to express their views on the future of TVA controlling the expansion of TVA. Federal power will help promote private enterprise in electrict power development. Private power can be supported in these ways. And it lists three ways: Recommend elimination of appropriations to TVA; recommend that TVA not be allowed to issue reveue bonds; recommend that TVA power supply become a local rather than a Federal responsibility. That is a special report which goes out all over the United States. I have another one here that came out just recently, with copies of the testimony of Mr. Sutton that was given, and a sale order blank, that "this can be distributed at 5 cents a copy." Senator GORE. Do you think it is worth it? Mr. WISE. I frankly think it is not worth 2 cents but I think it is rather unbecoming that anybody, us or them, or the private utilities, should take testimony given to a committee of Congress and sell it out on the open market for distribution. I would like to put that in the record because it is inappropriate and—well, I have other words for it. I would like very much to express our dissatisfaction over that type of work. I also want to say, since I mentioned the A. and I. Board, that we feel that this type of stuff, coming out all over the United States, is not only aimed at TVA. We know, we have reason to believe that the United States Chamber of Commerce purporting to represent all the chambers of commerce of the United States, actually are not representing those in our area. There have been numerous editorials in our local papers and in papers surrounding us, denouncing the statements made here that they do. Senator GORE. Mr. Wise, I don't think we should be too concerned about the unfavorable attitude and recommendation of the United States Chamber of Commerce. It may be that their attitude is one of our principal assets. Mr. WISE. Mr. Chairman, only in that we feel that this is aimed not only at TVA but at the industrialization of the southern area. The fight is not only against TVA but also against the southeast area in its industrial program. Senator GORE. My observation is that the United States Chamber of Commerce usually fights all progress. Mr. WISE. That is being shown, of course. Thank you, Mr. Chairman, for the opportunity. Senator GORE. Thank you very much, Mr. Wise. The committee will next hear Mr. Basil Thompson, Alabama Rural Electric Association. STATEMENT OF BASIL THOMPSON, MANAGER, ALABAMA ELECTRIC COOPERATIVE, INC. Mr. THOMPSON. Mr. Chairman, I am Basil Thompson, and I am manager of the Alabama Electric Cooperative, Inc., a generation and transmission electric cooperative with headquarters at Andalusia, Ala. Senator GORE. The committee is pleased to have you appear. Mr. THOMPSON. I have some other gentlemen here with me from Alabama. Senator GORE. Would you introduce them, and I will ask them to stand as they are introduced. Mr. THOMPSON. Mr. Young, of Sand Mountain Cooperative, Fort Payne, Ala. Mr. Gilbert, of Fort Payne, Ala. Mr. Roy Buford, also of Sand Mountain. Mr. John Hill, of Andalusia, Ala. Mr. Bledsoe, of the Cherokee Electric Cooperative, at Centre, Ala. Senator GORE. The committee is very pleased to have you gentlemen in the committee room, and appreciates the attention which you are giving to the proceedings. Mr. THOMPSON. The Alabama Electric Cooperative membership includes 12 REA cooperatives in central and south Alabama: Central Alabama Electric Cooperative, Prattville, Ala. Pea River Electric Cooperative, Ozark, Ala. Coosa Valley Electric Cooperative, Talladega, Ala. Baldwin County Electric Membership Corporation, Robertsdale, Ala. Choctawhatchee Electric Cooperative, DeFuniak Springs, Fla. Escambia River Electric Cooperative, Jay, Fla. Six municipalities: City of Elba, Elba, Ala. City of Troy, Troy, Ala. City of Brundidge, Brundidge, Ala. City of Luverne, Luverne, Ala. City of Andalusia, Andalusia, Ala. And two industries: Opp Cotton Mills, Opp, Ala. Micolas Cotton Mills, Opp, Ala. Some 125,000 families are represented through Alabama Electric Cooperative's membership. Presently this organization is supplying electric power at wholesale to five REA cooperatives: Covington Electric Cooperative Pea River Electric Cooperative South Alabama Electric Cooperative Southern Pine Electric Cooperative Wiregrass Electric Cooperative Seven municipalities: City of Evergreen City of Elba City of Opp City of Troy City of Brundige City of Luverne City of Andalusia And two industries in South Alabama : Opp Cotton Mills, Opp, Ala. Micolas Cotton Mills, Opp, Ala. In presenting this brief statement to the committee, I am also speaking on behalf of the Alabama Rural Electric Association of Cooperatives, the statewide organization of REA cooperatives in Alabama whose membership includes over 115,000 families. Mr. Chairman, we do not come any closer than 200 miles to the area TVA serves in Alabama at any point. So far as I know, there is no possibility that our area of Alabama will ever be served by TVA. Yet, I hope my presence before you today will emphasize how strongly we in all sections of our State feel about TVA being able to put into operation a sound, workable self-financing plan. I know of no way TVA's benefits to all of Alabama-not just to the area it serves could be measured. They have truly been tremendous. One benefit alone-TVA's role as a yardstick, helping to hold down power rates in our State-has in my opinion, saved our people millions of dollars in power costs. As one example of this, it is a matter of record that before the TVA Act, power was being purchased at the bus bar of Wilson Dam, Ala., by the State's largest commercial power company for less than 2 mills per kilowatt-hour, and sold to farmers within sight of the dam at upward of 10 cents per kilowatt-hour. We know, from experience, that the commercial power companies in our State and elsewhere over the Nation, would like nothing better than to eliminate all competition, not only from TVA, but from REA co-ops as well. Anything which these companies can do to cripple and destroy TVA, they will gladly do. These companies are opposing a workable self-financing plan for TVA. I need not, however, remind you gentlemen that for many years these same groups played-over and over-this theme: "Do away with Government financing for TVA. Make the TVA finance new power facilities through bond issues." Now that legislation to put such proposals in effect has been advanced, what do these commercial power companies do? They throw up their hands in horror, and now urge that not only should TVA not be allowed to put a self-financing plan in effect, but that all congressional appropriations for TVA should be discontinued as well. At least these people are now out in the open with their sole aim, which is the total destruction of TVA. If that should ever come to pass, it will be one of the darkest days ever in the history of our State, and the entire Nation as well. In order to be able to plan wisely and efficiently for the future, and meet its obligation to the area it serves, it is vital that TVA be allowed to use a workable, self-financing plan. It is our sincere hope that the Congress will see fit to enact into law legislation which will permit TVA to finance power expansion under a workable, self-financing plan. The proposal of the Bureau of the Budget made in 1955 is, as we understand it, not workable due to the many crippling restrictions on TVA. Other proposals which are now under consideration, including the Kerr bill and its companion bill in the House, the Jones-Davis bill are workable and, we believe, should be passed by the Congress. Mr. Chairman and gentlemen, I thank you for giving me an opportunity to present this statement. Thank you, Mr. Chairman. Senator GORE. Thank you for your appearance, Mr. Thompson. Senator Cooper, do you have any questions? Senator COOPER. I have none, Mr. Chairman. Senator GORE. The committee will next hear Mr. Stanley Stearman, National Society of Professional Engineers. STATEMENT OF PAUL H. ROBBINS, EXECUTIVE DIRECTOR, NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS, AS PRESENTED BY STANLEY STEARMAN, ASSISTANT LEGISLATIVE ANALYST, NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS Mr. STEARMAN. Paul H. Robbins, our executive director was originally scheduled to appear here as a witness today but he is unable to do so. I am here to take his place. I am Stanley H. Stearman and I am the assistant legislative analyst of the National Society of Professional Engineers. The society is a nonprofit, membership organization composed of professional engineers all of whom are registered under applicable State engineering registration laws. The society's 42,000 members are affiliated through 43 State societies and approximately 350 local chapters. I am here today to present the society's views on only one aspect of S. 1869. I refer specifically to the provision appearing at lines 9 and 10 of page 10 of the bill, which would authorize the Tennessee Valley Authority to perform engineering services in connection with the construction of a generating plant or other facilities in which TVA has any interest whatsoever. It would appear that the language would permit TVA to furnish engineering and design services for any private or local agency which was to build and operate power facilities or any other facilities with a tie-in to TVA operations. As indeed, at the 1955 hearings on S. 2373, 84th Congress, pages 207-215, which was substantially similar to the bill presently under discussion, and which contained identical language authorizing TVA to perform engineering services, it was pointed out by Senator Hruska that the engineering services which TVA would be permitted to perform would not necessarily be limited to facilities which TVA expected to acquire, but could be provided as well if merely the purchase of the output of a plant was intended. It is the considered opinion of the National Society of Professional Engineers that such a broad grant of authority to TVA which would allow it to render engineering services for others constitutes an unwarranted interference with the normal functions and operations of private consulting engineers who have been and are available for the rendition of such normal professional activities. We believe, and we think the members of the committee agree, that the Federal Government should not compete with its own citizens in the furnishing of materials or services to non-Federal agencies or persons, except under the most extreme conditions. Such extreme or emergency conditions which would justify the assumption of this broad authority by TVA are not present in this |