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DEPARTMENT OF AGRICULTURE
APPROPRIATIONS FOR 1951

DOCUMENT DIVISION

HEARINGS - DEBSITOWY

BEFORE THE CT
SUBCOMMITTEE OF THEMA 6 Tau
COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

EIGHTY-FIRST CONGRESS

SECOND SESSION

SUBCOMMITTEE ON AGRICULTURE
· JAMIE L. WHITTEN, Mississippi, Chairman
WILLIAM G. STIGLER, Oklahoma H. CARL ANDERSEN, Minnesota
EDWARD H. KRUSE, JR., Indiana WALT HORAN, Washington

Ross P. POPE, Executive Secretary to Subcommittee

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COMMITTEE ON APPROPRIATIONS

CLARENCE CANNON, Missouri, Chairman JOHN H. KERK, North Carolina

JOHN TABER, New York GEORGE H. MAHON, Texas

RICHARD B. WIGGLESWORTH, Massachusetts HARRY R. SHEPPARD, California

CHARLES A. PLUMLEY, Vermont ALBERT THOMAS, Texas

ALBERT J. ENGEL, Michigan MICHAEL J, KIRWAN, Ohio

KARL STEFAN, Nebraska W. F. NORRELL, Arkansas

FRANCIS CASE, South Dakota ALBERT GORE, Tennessee

FRANK B. KEEFE, Wisconsin
JAMIE L. WHITTEN, Mississippi

BEN F. JENSEN, Iowa
GEORGE W. ANDREWS, Alabama H. CARL ANDERSEN, Minnesota
JOHN J. ROONEY, New York

WALT HORAN, Washington
J. VAUGHAN GARY, Virginia

GORDON CANFIELD, New Jersey JOE B. BATES. Kentucky

IVOR D. FENTON, Pennsylvania
JOHN E. FOGARTY, Rhode Island RALPH E. CHURCH, Illinois
HENRY M. JACKSON, Washington LOWELL STOCKMAN, Oregon
ROBERT L. F. SIKES, Florida

JOHN PHILLIPS, California
ANTONIO M. FERNANDEZ, New Mexico ERRETT P. SCRIVNER, Kansas
WILLIAM G. STIGLER, Oklahoma FREDERIC R. COUDERT, JR., New York
E. H. HEDRICK, West Virginia

CLIFF CLEVENGER, Ohio
PRINCE H. PRESTON, JR., Georgia
OTTO E. PASSMAN, Louisiana
LOUIS C. RABAUT, Michigan
DANIEL J. FLOOD, Pennsylvania
CHRISTOPHER C. MCGRATH, New York
SIDNEY R. YATES, Illinois
FOSTER FURCOLO, Massachusetts
EDWARD H. KRUSE, JR., Indiana

GEORGE Y. HARVEY, Olerk

I

MONDAY, JANUARY 30, 1950. RURAL ELECTRIFICATION ADMINISTRATION

WITNESSES

CLAUDE R. WICKARD, ADMINISTRATOR, RURAL ELECTRIFICATION

ADMINISTRATION GEORGE W. HAGGARD, DEPUTY ADMINISTRATOR, REA WILLIAM C. WISE, ASSISTANT ADMINISTRATOR, REA ROBERT T. BEALL, EXECUTIVE OFFICER, REA EVERETT C. WEITZELL, PROGRAM ANALYST, REA ROBERT MacCLINCHIE, ADMINISTRATIVE OFFICER. REA K. WILDE BLACKBURN, ASSOCIATE SOLICITOR, OFFICE OF THE

SOLICITOR RALPH S. ROBERTS, DIRECTOR OF FINANCE AND BUDGET OFFICER,

DEPARTMENT OF AGRICULTURE

Mr. WHITTEN. The committee will come to order, please.

We are glad to have with us today Mr. Wickard, head of the Rural Electrification Administration, and his associates.

At this point in the record, I would like to have inserted page 468 of the justification, pages 1, 2, and 3 of the supplemental justification material, and the tables on pages 384 and 387 of the committee print.

(The material referred to is as follows:)

PURPOSE STATEMENT

The Rural Electrification Administration was established by Executive Order 7037 of May 11, 1935, to make loans for the extension of central station electric service to unserved rural people. The agency was continued by the Rural Electrification Act approved May 20, 1936, and became a part of the Department of Agriculture, effective July 1, 1939, under Reorganization Plan II. Although on June 30, 1949, service had been extended by REA borrowers to 2,778,180 farms and rural establishments, approximately 3,400,000 rural dwellings and an additional number of other rural establishments did not have central station service, and it is expected that about 85 percent of these will be electrified through the rural-electrification loan program.

Loans for construction of electric facilities are self-liquidating within a period of not to exceed 35 years, and they bear interest at the rate of 2 percent. Loans for consumer facilities are also at 2-percent interest but for shorter periods.

Fifty percent of the funds available for loans in any given year are reserved for loans in the various States on the basis of the proportion that each State's unelectrified farm bears to the total number of farms in the country which are without central-station electric service. The other 50 percent and unobligated balances from prior years may be loaned at the discretion of the Administrator, but not more than 10 percent may bo loaned in any one State or all of the Territories.

The principal borrowers of this Administration are cooperative associations formed solely for the purpose of making electricity available in rural areas. The Administration gives technical review and approval to construction plans and approves the completed construction of the electric systems. Selective

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