the $100,000,000 loan authorization of the Congress for the present fiscal year. A substantial portion of these applications are from areas where the extension of service and added generating capacity will facilitate defense activities. The consummation of the $100,000,000 program of the Congress will permit the extension of service in areas where additional power lines and generating plants will facilitate needed defense activities and may be distributed among the systems shown on the State maps in exhibit 1 in accordance with defense needs.

Dur

Off-peak power supply provides a substantial part of the power demand of rural power systems.-Inasmuch as a substantial part of the demand of farms for electric service is off peak in areas of intense urban defense production, the extension of Rural Electrification Administration-financed systems will not affect the problem of national generating capacity adversely. The nature of the offpeak power requirements of these systems is shown in detail in exhibit 5. ing the present emergency small generating units that can be built within short periods of time by manufacturers with available productive capacity can be in cluded in the Rural Electrification Administration program. These units use fuels that are not only economical but also plentiful in many rural areas and they are so designed that they can be readily moved from place to place. At the present time there are in operation on the systems 25 mobile Diesel generating plants of which some are supplying power to defense projects on a temporary basis pending the completion of stationary generating facilities. Further, some systems have secured idle generating facilities to meet the increasing loads occasioned by defense requirements.

Rural electric service contributes to alleviation of growing labor shortage.In the principal sections producing protein foods, such as dairy and poultry products which are needed in enlarged quantities to meet domestic and export demands, there has developed a serious shortage of farm labor. For the Nation the index of farm labor supply dropped from 100 in April 1940 to 82.2 in April 1941. The index for agricultural regions in April 1941 varied from 74.1 to 88.4, as is shown by the following table:

As a result of these labor shortages, there is a growing demand for labor.. saving equipment, much of it requiring electricity as the source of power, such as milking machines, water pumps, brooders, and ensilage cutters. The effect of farm labor shortage will be diminished through adequate provision of electric power in at least two important respects: The production of critically important protein foods may be enlarged to meet lease-lend arrangements, and the normal production of such foods may be maintained to meet the domestic requirements as provided for by the national nutritional program. The extent of the rural labor shortage which may be largely compensated for by electric power is explained more fully in exhibit 6, enclosure I.

Electric power is a technical factor essential to production of needed protei foods.-Electricity in the form of heat and cold as well as of power is an essential technical factor in the processing of those forms of food of which increased production is urgent because of developing shortages. A detailed explanation of the contributions of electricity to the production of these foods is given in exhibit 6, enclosure II. Electric brooding and hatching produce a larger output of poultry per unit of expense and manpower; dairy and poultry products are handled, processed, and preserved with less wastage with electrical equipment; and the preparation of feed for animals is promoted by electrically driven equipment. Exhibit 7 presents the extent of use of many types of income-producing and labor-saving electrical equipment in use on the lines of Rural Electrification Administration Financed systems. A recent survey of the Curtis Publishing Co. shows that 60 percent of the farmers interviewed employ electricity for powering some tool or other piece of equip

ment used in farm operations. In detail this survey showed the following

percentages of use:

These statistics indicate significantly the extensive use to which electric power is used by farmers in the production and processing of foodstuffs.

Many types of defense projects in rural areas receive electric power from R. E. A. financed power systems.-The value of widespread electric service in rural areas extends far beyond farm uses alone as is revealed by the number of defense projects and industrial and commercial enterprises depending on these systems for electric service. Exhibit 8 and enclosures III, IV, and V of exhibit 6 show in detail the variety and number of military camps, areas surrounding military camps, and industrial and commercial enterprises, served at present by Rural Electrification Administration financed rural power systems. A summary of these exhibits shows the following types and number of principal users:

Military camps in vicinity of which service is rendered.

Industrial enterprises-total

Farm industries__

Government services and institutions.

Food processing_.

Forest products__.

Mineral products.

Stone, clay, and glass products_

Textiles and textile products____

Chemicals____.

Miscellaneous industrials..

9

17

16

150

30

92

5, 365

2, 207

772

846

117

169

101

33

23

1,097

In consequence of the location of many military projects in rural areas one of the most important types of defense service rendered by Rural Electrification Administration-financed systems other than to the defense projects themselves is to collateral service establishments in the vicinity of the projects.-These collateral service enterprises require light, heat, power, and refrigeration in order to carry on their activities of supplying the requirements of defense personnel.

Availability of electric power in rural areas also has been an important factor in the development of numerous types of decentralized small industries many of which may make a substantial contribution to national defense when and if requirements call for the distribution of production of military needs among many small isolated units. Already many of the industries served by rural power systems are engaged in defense production. The list of mineral products shown

The cinnabar mines in Arkansas, for example, were reopened because of the availability of cheap power from a nearby rural cooperative system and higher mercury prices and are today contributing to the production of that strategic metal.

Provision of construction materials is necessary to continuance of R. E. A. program. It is recognized of course that mil.tary requirements for every type of material must be given primary consideration in the allocation of available supplies. However, in view of the defense and quas-military importance of widespread rural electrification to which references have been made, it is essential that priorities be made for the continuance of the Rural Electrification Administration program from materials remaining available after all direct military requirements have been satisfied. A summary of the material requirements, including those for steel, of the Rural Electr.fication Administration program, exclusive of the construction now in process which also requires materials, based on calculations shown in detail in enclosure VI, of exhibit 6, follows:

Priorities are hereby requested for these materials in order to assure the continuance of the Rural Electrification Administration program.

In addition it is requested that provision be made for construction now in process, of which the material requirements are not included in the above figures. It is estimated that an additional 2,500 tons of copper per month for 6 months, an additional 2,800 tons of steel per month for 6 months, and other materials in proportion will be required to complete this construction in process. The granting of these priorities will enable an important phase of the defense program to continue and will enable Rural Electrification Administration-financed power systems to extend electric service into rural areas for the purpose of furnishing power to military and industrial defense projects of many types, providing means for increasing the production of urgently needed protein foods, and alleviating rural labor shortages.

Sincerely yours,

HARRY SLATTERY, Administrator.

JULY 11, 1941.

MEMORANDUM TO MR. JESSE L. MAURY, CHIEF, NONFERROUS METALS SECTION, CIVILIAN ALLOCATION DIVISION, OFFICE OF PRICE ADMINISTRATION ANL CIVILIAN SUPPLY

Subject: Justification of Rural Electrification Administration Needs for 4,000 Tons of Copper Per Month Required for the Execution of the 1942 Federal Rural Electrification Program as Provided for by the Congress

DEAR MR. MAURY: The provision for making available construction materials that are subject to priorities, particularly copper, for the maintenance and extension of the program of Rural Electrification Administration as provided for by the Congress is an important aspect of national defense for the following reason: Rural Electrification Administration-financed rural power systems are so widely distributed throughout the Nation that even though they do not impose a serious demand on the Nation's generating capacity because a substantial part of their primary demand is for off-peak power or can be met by small generating units, in the aggregate the power supplied by them to farms, rural industries, military, and other rural defense projects may exert a significant influence on the following preparedness problems: Increasing the production of critical protein foods, alleviating a growing rural labor shortage, and providing electric power to military and other defense projects located in rural areas.

It is generally recognized that in the major European countries widespread rural electrification has long been considered a tool for "total defense" or "total war" and in consequence was included in the military programs of

prepartaion for defense or war; and wider availability of rural electric service in the United States will be more strongly called for as our preparedness activities are intensified and become more widespread.

Rural Electrification Administration-financed power systems are widely distributed throughout the Nation.-Because of the wide geographical distribution of these rural systems-projects are located in 2,300 or 3,070 counties in every State except Connecticut, Massachusetts, and Rhode Island, and in Alaska and the Virgin Islands-plans may be readily made to proceed promptly in extending service for any essential purpose to nearly any rural section of the country. During the 6 years since the establishment of Rural Elec rification Administration, allotments totaling $368,000,000 have been made to borrowers on a self-liquidating basis for the construction of power systems, including approximately 375,000 miles of line to serve over 1,175,000 consumers of which approximately 1,000,000 are farms. The progress in cari ying out this program is indicated by the fact that already there have been constructed approximately 330,000 miles of line and service is being rendered to 775,000 consumers of which about 650,000 are farms, 6,000 industrial, commercial and military establishments, and the balance other types of rural users. Notwithstanding this accelerated pace, the volume of requests for service from farms and industrial, commercial, and military establishments continue undiminished; already the applications on hand exceed the $100,000,000 loan authorization of the Congress for the present fiscal year. It is significant that a substantial portion of these applications are from areas where the extension of service and added generating capacity will facilitate defense activities. The consummation of the $100,000,000 program of the Congress will permit the construction of approximately 135,000 miles of line and necessary generating facilities in important rural areas to make electric power available for the first time to over 400,000 consumers of which approximately 350,000 will be farms and the balance military and industrial establishments and other types of rural consumers.

Rural power systems do not constitute a burden on generating capacity because they require much off-peak power and may utilize small generating units.-As a substantial portion of the demand for electric energy on farms is off-peak, further extension of Rural Electrification Administration financed systems will not affect generating problems adversely. Rural industrial power requirements and electric power for military purposes in many areas, however, fall within the scope of the Rural Electrification Administration program. Wherever the need for added generating equipment exists the Rural Electrification Administration and its borrowers stand ready to meet the situation. In the present emergency small generating units that can be built within short periods of time by manufacturers with available capacity can be included in the Rural Electrification Administration program. These units use fuels that are not only economical but also plentiful in many rural areas and are so designed that they can be readily moved from place to place. At the present time there are in operation on the systems 25 mobile Diesel generating plants, of which some are supplying power to defense projects on a temporary basis pending the completion of stationary generating facilities. Further, some systems have secured idle generating facilities to meet the increasing loads occasioned by defense requirements. It is important to note that investments in generating equipment to meet defense needs will continue to have operating value after the emergency because the plants will be used to supply the peacetime demands of the rural communities.

Electric power is an essential technical factor in the production of protein foods of which there is a shortage.-Because electric energy supplies heat, cold, power, and light it has become an essential technical factor in the production, processing, and preservation of many protein foods such as milk, eggs, pork, poultry, and other protein foodstuffs of which there is a serious shortage and of which increased production is imperative. The cumulative effect of small increments of power economically applied on the numerous farms located in Rural Electrification Administration financed system areas on the output of these critical foods cannot be overemphasized. Light, heat, cold, and power applied to farm chores can enhance the productivity of protein and vitamin foods on the average farm 20 to 25 percent without increasing farm labor requirements and with little added investment in equipment. The number of pigs, for example, that will reach maturity is larger when the farmer uses electrically heated brooding pens which he may make himself and which, as a consequence, does not affect the market for industrial equipment. Poultry, milk, cheese, and similar protein foods are processed, handled, and marketed

with less wastage and better quality when electric power is available. A 15-watt light in the henhouse, for instance, operating in the early morning and evening increases egg production and a similar light in the brooder house speeds up the growth of chicks. Chick brooders that reduce loss and speed growth may economically be made by the farmer himself. Lights for early morning and late evening make it possible to perform farm chores more efficiently with the result that more milk, eggs, meat, and vegetables are produced with little added mechanical equipment. Better care of livestock, poultry, and garden results in incremental gains far out of proportion to the increased costs involved. Further, it should be noted that a substantial part of this important load is off peak and will operate to improve the utilization of existing generating equipment. The very essential foods of which there is developing a critical shortage, and of which it is imperative that production must be increased in order both to safeguard our national health and make good on our promises to democracies overseas, are generally those in which electric power is an essential technical factor in their production.

Electric power takes the place of manpower to alleviate problems of rural labor shortage.--A serious shortage of farm labor has already developed in the principal sections of the country producing dairy and poultry products, meat and vegetables. The movement of workers from rural areas to urban defense industries is accelerating. The index of farm supply in the United States fell from 100 in April 1940 to 82.2 in April 1941. For this reason there is a growing demand for labor-saving equipment on farms. Provision of electricity for the operation of such labor-saving equipment will cushion the effect of labor shortage on farms and permit expansion in the production of vital foods that are required to meet the increasing needs of our domestic population and the requirements under the lend-lease arrangement. The value of electricity as a substitute for manpower has not been realized widely. The statement has been made that electric energy applied generally to the average farm with an investment of less than the annual wage of a farm laborer will provide the equivalent of an additional farmhand.

Rural Electrification Administration financed systems supply electric power to many varieties of defense projects in rural areas.-During the past year Rural Electrification Administration financed systems have been called on to serve over a score of military camps, bases, forts, and housing projects, several mercury, vanadium, and other enterprises producing essential raw materials; nearly 200 airports, landing fields, air beacons, and radio beams; and many lesser loads related directly to the defense program. Already these defense projects have necessitated construction of substations, transmission and distribution lines with a firm capacity of more than 35,000 kilovolt-amperes. In consequence of the location of some military camps in rural areas, critical collateral problems of adequate community services have developed, and nearby Rural Electrification Administration financed systems have been called on to meet the power, light, and refrigeration needs of these essential services as well as the camps themselves. The availability of electricity in rural areas has also been instrumental to the development of numerous decentralized small industries, many of which may become very important if and when the defense program requires the distribution of the production of military materiél among many small units. The growth in both the number and size of these small, rural industrial loads on Rural Electrification Administration financed systems is shown by the following statistics for the year ending January 1, 1941: a 20 percent increase in types of industrial loads, a 53-percent increase in total number of services; and an 86-percent increase in the total connected transformer capacity. Among the small industries now being served are a number of mines producing strategic raw materials. In Arkansas, for instance, there were a number of cinnabar mines closed because not profitable. With the availability of cheap power from a nearby Rural Electrification Administration cooperative and an advance in the price of mercury, these mines were enabled to reopen and are now producing cinnabar from which mercury is obtained.

Continuance of Rural Electrification Administration program is dependent on availability of copper.-Military requirements for copper needed in the production of such items as shell casings and other vital items of war must, of course, be given first priority on the available copper supply. However, in view of the military and quasi-military importance of the widespread availability of electric power throughout rural areas, to which reference has already been made, it is essential that a priority for the copper requirements for the Rural Electricfication Administration program should be established. Conservative estimates indicate