funds expended and received in connection with transmission and sale of electric energy generated at the Bonneville project.

(b) The administrator may make such expenditures for offices, vehicles, furnishings, equipment, supplies, and books; for attendance at meetings; and for such other facilities and services as he may find necessary for the proper administration of this Act.

(c) In December of each year, the administrator shall file with the Congress, through the Secretary of the Interior, a financial statement and a complete report as to the transmission and sale of electric energy generated at the Bonneville project during the preceding governmental fiscal year.

SEC. 10. The administrator, the Secretary of War, and the Federal Power Commission, respectively, shall appoint such attorneys, engineers, and other experts as may be necessary for carrying out the functions entrusted to them under this Act, without regard to the provisions of the civil-service laws and shall fix the compensation of each of such attorneys, engineers, and other experts at not to exceed $7,500 per annum; and they may, subject to the civil-service laws, appoint such other officers and employees as may be necessary to carry out such functions and fix their salaries in accordance with the Classification Act of 1923 as amended.

SEC. 11. All receipts from transmission and sale of electric energy generated at the Bonneville project shall be covered into the Treasury of the United States to the credit of miscellaneous receipts, save and except that the Treasury shall set up and maintain from such receipts a continuing fund of $500,000, to the credit of the administrator and subject to check by him, to defray emergency expenses and to insure continuous operation. There is hereby authorized to be appropriated from time to time, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this Act, including installation of equipment and machinery for the generation of electric energy and facilities for its transmission and sale.

SEC. 12. The administrator may, in the name of the United States, under the supervision of the Attorney General, bring such suits at law or in equity as in his judgment may be necessary to carry out the purposes of this Act; and he shall be represented in the prosecution and defense of all litigation affecting the status or operation of Bonneville project by the United States Attorneys for the districts, respectively, in which such litigation may arise, or by such attorney or attorneys as the Attorney General may designate as authorized by law, in conjunction with the regularly employed attorneys of the administrator.

SEC. 13. If any provision of this Act or the application of such provision to any person or circumstance shall be held invalid, the remainder of the Act and the application of such provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby. [Italics added.] Approved, August 20, 1937 (50 Stat. 731).

EXHIBIT H

SECTION 5 OF THE FLOOD CONTROL ACT OF 1944

SEC. 5. Electric power and energy generated at reservoir projects under the control of the War Department and in the opinion of the Secretary of War not required in the operation of such projects shall be delivered to the Secretary of the Interior, who shall transmit and dispose of such power and energy in such manner as to encourage the most widespread use thereof at the lowest possible rates to consumers consistent with sound business principles, the rate schedules to become effective upon confirmation and approval by the Federal Power Commission. Rate schedules shall be drawn having regard to the recovery (upon the basis of the application of such rate schedules to the capacity of the electric facilities of the projects) of the cost of producing and transmitting such electric energy, including the amortization of the capital investment allocated to power over a reasonable period of years. Preference in the sale of such power and energy shall be given to public bodies and cooperatives. The Secretary of the Interior is authorized, from funds to be appropriated by the Congress, to construct or acquire, by purchase or other agreement, only such transmission lines and related facilities as may be necessary in order to make the power and energy generated at said projects available in wholesale quantities for sale on fair and reasonable terms and conditions to facilities owned by the Federal Government, public bodies, cooperatives, and privately owned companies. All moneys received from such sales shall be deposited in the Treasury of the United States as miscellaneous receipts.

EXHIBIT I

RESOLUTION OF THE COLORADO STATE ASSOCIATION OF REA COOPERATIVES ON A NEW BUREAU OF RECLAMATION POWER POLICY AND CONTRACT REVISIONS

Annual Meeting, Craig, Colo., September 18, 1953

Whereas the recently announced power policy for the Bureau of Reclamation strikes at the heart of the rural electrification program in Colorado, Wyoming, Nebraska, and in every other State in the Nation where the rural electrics receive federally generated power, and Kansas and other States now planning the integration of Federal power, and

Whereas this attack is all-out insofar as the claimed powers of the Secretary of the Interior will allow, and is a deliberate and open attack upon the preference clause as expressed in the various Federal power statutes and so important to the farmers of this country, and

Whereas the elimination of the withdrawal clause from the contracts with nonpreference customers and the decision to sign long-term contracts with nonpreference customers for all remaining firm energy is a partial abrogation of the rights of preference customers, and

Whereas this new policy will affect the rural electrics in the following ways: (1) It will force them to void old power contracts with the Bureau and accept new contracts or face the loss of all power from the Government projects within 3 years; a loss so devastating as to leave no doubt that new contracts can be imposed.

(2) It will force all of the rural electrics to contract for power capacity beyond their present needs or face the prospect of power shortages within a very short time. This forced contracting for more power than now required will result in a sharp increase in power costs to rural people; however, this increase in power costs to the members of the rural electrics will be accompanied by an actual decrease in Federal revenues from power sales-the benefits of this decrease in Federal revenues being turned over to the profit utilities in the form of cheap, dump energy.

(3) The net effects of the forcing of new contracts is a blow to the entire rural electrification program. The financial feasibility of new extensions to farmers not yet served, the financial stability and loan-repayment ability of already existing rural electric systems and the possibility of maintaining good service to existing customers are all endangered by this new policy. For this policy not only increases our power costs but places a ceiling on our power supply insofar as existing and authorized projects are concerned. And, in addition to all this, the taxpayers of this country will suffer from decreased Federal power revenues: Now therefore be it

Resolved, That we, the delegates to this annual meeting of the Colorado State Association of REA Cooperatives, meeting in Craig, Colo., September 18, 1953, protest this new power policy vigorously and bitterly. We pledge ourselves to every effort to defeat this attempt to cripple our fine program.

To this end, we urge that copies of this resolution be sent to all directors and managers of our association; to the National Rural Electric Cooperative Association with a request that it be distributed to every rural electric system in the country; to our Representatives and Senators in Congress and the Governor of Colorado; and to President Eisenhower, Secretary of the Interior McKay, Assistant Secretary Aandahl, and Reclamation Commissioner Wilbur E. Dexheimer, and that the editor of the Colorado Rural Electric News cause the same to be printed in prominence in its October 1953 issue.

Further, we urge the rural electric system directors and managers of the States of Colorado, Wyoming, Nebraska, Kansas, and other affected States to make a study immediately of the effects of this policy on their systems and to take all possible steps to (1) defeat this crippling attempt to change 50 years of congressional Federal power policy by administrative action and (2) protect themselves as best possible in the interim by preparing for new contract negotiations.

Moreover, we request that the officers and executive manager of the National Rural Electric Cooperative Association and a delegation from each of the States affected seek an audience immediately with President Eisenhower and urge him to intervene in our behalf, explaining to him the consequences of this new policy in terms of his pledges "to support a sound rural electrification program."

And, lastly, we urge National Rural Electric Cooperative Association to employ competent counsel to inquire into the legality of this change in policy, and, if practical, to initiate court action against this shameful attack upon our program

and the equally shameful attempt to reduce the power revenues of the Federal Government to provide a subsidy to the profit utilities.

EXHIBIT J

REGION VI RESOLUTIONS

Rapid City, S. Dak., October 5-6, 1953

MANAGEMENT

Resolved, That we vigorously oppose the proposed increase in interest rates for REA and RTA. We point with pride to the fact that REA has been and is self-liquidating. Feasibility of many of our projects was made possible only by low-cost wholesale power and the reduced interest rates to 2 percent. Increasing this rate, as now proposed, will be a vicious below-the-belt blow to farmers in need of modern electric and telephone service.

We respectfully urge all directors to give continued attention to improving labor relations with their employees, and public relations with the public in general. We also invite the continued cooperation on a legislative level of agriculture, labor, and business to the end that the standard of living of all may be improved. We hereby commend Congress for making reasonably adequate appropriations available for REA and RTA construction loans in the last session, and

We pledge ourselves to so conduct the affairs of our cooperatives in the interests of the welfare of rural peoples and the general economic and social welfare of the Nation as a whole to the end that we may continue to merit the support of the Congress.

POWER AND GENERATION

Whereas the rural electrification program was relatively late in coming to much of the Missouri Valley area due to lack of adequate power supply, high rates and the sparseness of rural settlement, and

Whereas many rural electrification loans in the Missouri Valley States have been made in anticipation of the borrowers' ultimate access to Missouri River power and the economic justification of these loans is based on the responsibility of the Bureau of Reclamation to market Missouri Basin power in accordance with the preference clause of the Flood Control Act of 1944, and the traditional Federal power policy established over a 40-year period, and

Whereas many rural electric cooperatives throughout the Missouri Valley area already are experiencing difficulty in economically meeting their rapidly growing power demands, and

Whereas the Department of the Interior has now announced a new power policy and new power marketing criteria for the Missouri Valley which seeks to relieve the Bureau of Reclamation of its responsibility for marketing Missouri Basin power in accordance with established policies by making firm power available to nonpreference commercial power companies on a 20-year nonwithdrawable basis, and

Whereas the new power policy will raise wholesale power rates to preference customers, and

Whereas the new criteria minimizes purchase by the Government of thermal energy, which fact will further raise the wholesale rates of some preference customers and which will reduce the guaranties of power available to preference customers from the Missouri Basin hydro projects, and

Whereas the new criteria will cause insufficient power to be available from the Missouri Basin dams for the rural electrification program for even reasonable load growth over a number of years, because certain rural electric systems will be unable to accept immediate delivery of large blocks of power because adequate transmission facilities cannot be made available within the stipulated 90-day period, and

Whereas the Department of the Interior has allowed the rural electric systems but 90 days to apply for the available power, and

Whereas the commercial power companies of the Missouri Valley are already receiving substantial benefits and are about to receive other substantial benefits from Missouri River hydro projects completed and under construction, and

Whereas it is our opinion that the almost complete reversal by the Federal Government of its long-established power program, including the weakening, if

not the destruction, of the preference clause, will have the effect of delaying rural electrification service to many unserved farms and ranches and of making power scarcer and costlier for those already served, and

Whereas the administration in power, through its party platform and the President of the United States in many speeches last year, assured the people that both the rural electrification program and the Federal power program would go forward, not backward, and

Whereas it is hard for us to believe that the President of the United States and the Secretary of the Interior are sufficiently aware of the destructive effect of these policies which evidently are being sold to the administration by commercial interests: Now, therefore, be it

Resolved, That we express our great disappointment in the announcement of these new policies which will retard or wreck our rural electrification program in many areas, and that we appeal to the President and the Secretary of the Interior to reverse the Administration's announced policies and return to the Bureau of Reclamation power marketing policies which have grown up over a period of some 40 years and have become a major factor in the progressive economy of this great valley and other parts of the United States, and that we ask each of our governors and Members of Congress to appeal to the President and the Secretary of the Interior quickly to not fasten this harsh and destructive policy upon us; and be it further

Resolved, That all member cooperatives take immediate steps through their newsletters, State publications, and all other means at their command to acquaint all of their consumer members with the details of this insidious campaign that is apparently underway to undermine the very existence of the electric cooperatives and to make nonexistent the long-time Federal preference policy.

Whereas the natural resources of our Nation are diminishing; and

Whereas the development of our river basins by the construction of multipurpose dams by the Federal Government has given the people the ultimate benefits of the related natural resources: Now, therefore, be it

Resolved, That we urge the Congress and the President of the United States to do everything within their authority to restore the development of Hells Canyon and similar projects to the people through our Federal Government.

TELEPHONES

We urge Congress to make available adequate appropriations to permit speedy completion of modern telephone service to all rural people. We urge expeditious administration of the program by REA itself. We urge wholehearted cooperation of the entire telephone industry to that end. We commend all cooperation already given in that direction. We urge rapid completion of the telephone service field both as a highly desirable phase of a sound defense program and as a desirable extension of a decent American standard of living and efficient production on the land.

GENERAL

Whereas the Honorable Ancher Nelsen has been appointed as Administrator of the Rural Electrification Administration; and

Whereas the said Ancher Nelsen, because of his experience with farming in region VI, is cognizant of the needs of electric and telephone service for our rural families residing in the Midwestern States: Now, therefore, be it

Resolved, That we, the members of region VI, extend our congratulations and best wishes to Mr. Nelsen on his appointment as Administrator, and we pledge our support and cooperation to him in the furtherance of our program.

APPRECIATION

Resolved, That we again pledge our confidence and support of our NRECA. We recognize the untiring efforts of the national board of NRECA, and particularly of Clyde T. Ellis, executive manager, as they seek to serve the real interests of rural America. Through disappointments and the relentless efforts of adverse interests, we pledge to them our support.

We, the members of region VI, hereby express our sincere thanks and appreciation to Rapid City for its genuine hospitality, and to all our speakers and entertainers, and to each and everyone who helped to make this convention an outstanding success.

EXHIBIT K

REGION IX RESOLUTIONS

Billings, Mont., October 8-9, 1953

Be it resolved by the duly authorized delegates of region IX of the National Rural Electric Cooperative Association, comprising representatives of the rural electric systems of Alaska, California, Idaho, Utah, Washington, Oregon, and Montana, assembled at Billings, Mont., October 9, 1953, that we endorse and adopt the following policies; and, be it further

Resolved, That the board of directors and officers of NRECA are requested to take such action as they deem appropriate for the furtherance of these policies: 1. We reaffirm our support of the policies and program of the National Rural Electric Cooperative Association, and we express our confidence in the administration of these policies.

2. We endorse the NRECA policy of publishing the voting records of Congressmen and Senators.

3. We issue a standing invitation to REA administrative and field personnel to attend future region IX meetings.

4. We urge REA to continue the bookkeeper course, or in the alternative, provide for its publication by the Government Printing Office.

5. We reaffirm our support of the G. and T. program to the full extent provided by law.

6. We urge REA and NRECA to study present depreciation and amortization policies and determine whether these policies are placing an excessive burden on rural electric cooperatives

7. We oppose any artificial inflation of the REA interest rate above the present level of 2 percent.

8. We urge amendment of the REA Act to provide for optional repayment period of 50 years.

9. We express concern regarding the withdrawal of the REA telephone film, and we urge its early reissue.

10. We urge continued support of the Wisconsin Electric Cooperative aluminum conductor program.

11. We urge every rural electric system in region IX to prepare a written record of future cases of pirating of member consumers and to forward copies of these cases to NRECA and other association offices as appropriate, and to their neighboring cooperatives.

12. We support the continuation of the Montana district office of the Bonneville Power Administration at Kalispell.

13. We strongly support the present customer service policy of the Bonneville Power Administration with its provision for delivery of power at load centers at primary distribution voltage.

14. We recommend the amendment of the Bonneville Act so as to enable the Administrator to purchase power under contract and under appropriate standards for the purpose of encouraging non-Federal agencies to install new generating facilities.

15. We recommend that Congress provide for a nationwide study of the propaganda, lobbying, and political activities and expenditures of private electric utility corporations and of any organizations and associations supported by them, and that this study look toward the preparation of legislation to curtail these activities and expenditures as being contrary to the public interest.

16. We disapprove of the increasing practice of the Appropriations Subcommittee of the Congress to enact legislation via committee report.

17. We oppose the Capehart bill providing for the extension of the accelerated tax writeoff privilege, and secondly, we urge the repeal of section 124A of the Internal Revenue Code which now provides for accelerated amortization.

18. We oppose the Ellsworth bill, H. R. 4646, which would increase the cost of power projects by requiring that timber companies be guaranteed substitute forest land for any land used for reservoirs.

19. We urge the continued public control by the Government of the United States over atomic energy, and we also urge the Congress to authorize the construction of pilot atomic energy plants for electric power generation.

20. We oppose the Dondero bill to curtail the TVA program, and we endorse the proposal of TVA to construct the Fulton steam plant.

21. We reaffirm our view that Niagara Falls and the St. Lawrence River should be developed under public auspices with provision for preference in the sale of power to nonprofit agencies.