and losses and elimination of handling, contracting and billing the individual member cooperatives).

6. The marketing criteria indicated above will apply to firm power, secondary energy, and peaking capacity. Dump energy sales will be made to obtain maxi

mum revenue.

We interpret the effects of the facts outlined above on your cooperative specifically as follows:

I. Your member cooperatives have approved contracts with the Bureau for specified amounts of power which may differ from their latest estimated requirements for the next 3 years. Should any member need additional capacity, it should be requested by that member in writing prior to January 1, 1954.

II. The power which the Bureau is making available in the years 1954 to 1956, inclusive, is only a part of the total to be made available in the future. It, therefore, appears that your member cooperatives will be able to obtain additional power from future offering and it will not be necessary, at this time, for them to request power in amounts in excess of their estimated actual requirements through

1956.

It is recommended that the power cooperative coordinate the activities of the individual member cooperatives in taking the following steps on this supply problem:

(a) Required action to determine as precisely as possible power requirements of each member cooperative to and including 1956. The new rate schedule of the Bureau provides for the payment of a minimum annual capacity charge of $7.20 per kilowatt of contract demand as pointed out in paragraph 4 above. In existing contracts some members may have stated contract demands with a greater margin than necessary in excess of their estimated 1956 requirements In such instances the economic advantages of requesting a reduction in contract demand should be considered.

(b) Make application to the Bureau for the amount of power as determined under (a). Application should be made prior to January 1, 1954.

We are sending a copy of this letter to each of your member cooperatives. It will be appreciated if you will keep us informed of your activities in this connection. Very truly yours,

G. C. WOODWORTH (For O. W. BRIDEN, Director, north central area office.)

REA interest rates

EXHIBIT P

REGION X RESOLUTIONS

Mineral Wells, Tex., October 22-23

MANAGEMENT

Whereas the present 2-percent REA interest rate to borrowers was established for the purpose of bringing electric power to all rural consumers; and

Whereas the financial feasibility of existing cooperatives is based upon this interest rate; and

Whereas over most of the period of REA's existence the Treasury or RFC has profited from the interest rate charged REA borrowers: Now, therefore, be it Resolved, That we express our vigorous opposition to any increase in the REA interest rate which would cause a rate increase to farmers.

Rural electric investment pool

Whereas the problem of finding secure investment outlet for rural electric cooperative surplus funds is one of concern to our enterprises; and

Whereas our cooperatives seek a maximum of security for such surpluses with a maximum interest yield commensurate with that security; and

Whereas we think there is considerable merit to the suggestions embodied in the article by Dr. W. N. Peach in the March 1953 issue of Rural Electrification magazine: Now, therefore, be it

Resolved, That the board of directors and the staff of the National Rural Electric Cooperative Association be requested to conduct an investigation into the possibilities of establishing an NRECA investment function devoted to the purposes discussed in the article mentioned above, and that the board report its findings and recommendations to our association; and be it further

Resolved, That NRECA publish and distribute a manual dealing with the various types of investments available to cooperatives.

NRECA management program

Whereas there is a growing need for study and appraisal of the operational and managerial problem of our program; and

Whereas REA is in the process of restricting services in this field due to slashes in REA administrative funds: Now, therefore, be it

Resolved, That NRECA be requested to study a management assistance and development program designed to replace vanishing REA services.

TVA

POWER AND GENERATION

Whereas one of the world renowned demonstrations of effective democratic government has been the Tennessee Valley Authority; and

Whereas the TVA has resulted in immeasurable benefits to all sections of the United States and has turned a poor and declining area into a prosperous and productive sector of our economy: Now, therefore, be it

Resolved, That we condemn the propaganda talk about TVA being "creeping socialism," subsidized power and so forth, including the loose talk about selling this great public resource to private interests, and urge the President and the Congress to cherish, protect, and honor this great agency; and be it further Resolved, That adequate funds be made available for the construction of adequate steam generation and transmission.

Table Rock Dam

Whereas the power supply of many of the cooperatives of the Southwest is placed in jeopardy by the failure of the Congress to expedite the construction of Table Rock Dam; and

Whereas when the military "conscripted" the power of Bulls Shoals Dam for an aluminum plant there was a solemn agreement that the construction of Table Rock would be expedited: Now, therefore, be it

Resolved, That we urge the Congress to expedite the coastruction of Table Rock Dam in Missouri in order that rural electrics may be served with more adequate and lower cost power.

Southwestern Power Administration contracts

Whereas the rural people of Missouri, Kansas, and Oklahoma have obligated themselves for many millions of dollars of REA loans to build generation and transmission facilities; and

Whereas the Congress, in violation of good faith and contractual obligations, has abrogated the contracts between SPA and the cooperatives: Now, therefore, be it

Resolved, That we condemn this legislation by appropriation and urge that the Congress live up to the contractual obligations and the spirit of democratic government by providing for the revival and consummation of the previously established patterns of power supply in the SPA area.

Federal power policy and resource development

Be it resolved, That the following message be telegraphed to the President of the United States, Dwight D. Eisenhower:

DEAR MR. PRESIDENT: In your 1952 campaign you pledged your support to ȧ "sound rural electrification program." ,, We believe you delivered that pledge in good faith, and we make the following recommendations in that belief.

1. We urge you to support adequate administrative and loan funds for the Rural Electrification Administration in order that vital technical services and adequate development funds be available to the rural electric systems. We call

to your attention that the funds requested in your budget for fiscal 1954 for administration and loans were not adequate.

2. We urge you to take the action necessary to reverse the power policy of the Department of the Interior as it affects the rural electric program in the 10 Missouri Basin States and in any other area in which such policy may be applied in the future. We call your attention to the fact that the new policy announced by Secretary McKay and elaborate upon by Assistant Secretary Aandahl in & speech at Fargo, N. Dak., is crippling and destructive of rural electrification, and that this announced policy will increase the power costs and place a ceiling over the power supply of many cooperatives in this 10-State area and in any other areas where it may be applied.

3. We urge you to exercise your great prestige with the American people and with the Congress to reverse the action by the Congress in the last session on the Southwestern Power Administration, action utterly destructive to the rural electrification program in the SPA area.

4. We urge you to protect the so-called preference clause, the "equality of opportunity" clause in Federal power legislation in order that the rights of farmers to Federal power not be diminished or destroyed by legislation or administrative action. The present power marketing criteria in the Missouri Basin amounts to administrative repudiation of the preference clause.

5. We urge you to support the right and opportunity of farmers' cooperatives to generate and transmit their own power. The protection of this right and opportunity demands adequate REA loan funds, adequate REA power division staff and organization, sympathetic interpretation of the law and a willingness to face up to realities in power supply matters.

6. We urge you to continue the great tradition of Federal power development to build a more prosperous, stronger America. The continuation of this program necessitates new starts, adequate funds to complete projects under construction, and adequte planning funds for the development of new programs. We urge an end to the undeceiving neutrality of Secretary McKay, on Hells Canyon Dam, the threatened giveaway of Niagara Falls to five private power companies, and the slowdown on Federal resource development.

7. Above all, we urge that you recognize the National Rural Electric Cooperative Association as the spokesman for 4 million rural families and other consumers, and that you inquire into our policies and consult with our representatives before making innovations in the field of REA and our power supply. This means that ill-advised policies such as those enunciated by the Bureau of Reclamation would be checked with us before their announcement; it would mean that the new Hoover Commission would contain members sympathetic to rural electrification and would not be loaded with persons antagonistic to the power program so vital to rural America.

We urge these recommendations upon you for the benefit of all our people, in all walks of life.

LEGISLATIVE

Accelerated tax amortization benefits

Whereas the accelerated tax amortization program has resulted in interest free loans to the private utility companies of over $800 million, with ultimate total benefits to such companies running in excess of $2.8 billion; and

Whereas these total benefits to the private utility companies are greater than the total cost of all Federal power facilities or all REA loans, both of which are repayable to the Treasury with interest: Now, therefore, be it

Resolved, That we call this matter to the attention of all rural electric leaders in order that they may use this information (1) to press for lower wholesale power rates to our members and (2) to offset the vicious propaganda campaign that we benefit from subsidies while the commercial companies pay their own way without Government aid.

Power company propaganda

Whereas over the years the private power companies have flooded this country with advertising propaganda designed to prejudice citizens and legislators of this nation against Federal power and the program of rural electrification; and

Whereas this propaganda has been paid for by all electric consumers including our own members because under the existing Internal Revenue Act the cost of such propaganda is deductible as an expense; and

Whereas such propaganda has influenced elections, legislation, and public policy to the detriment of the interests of millions of American farmers and other consumers and is repugnant to our whole system of democratic government: Now, therefore, be it

Resolved, That we urge the Senators and Congressmen from these States and all other States to amend the Internal Revenue Act to provide that no advertising for the purpose of influencing elections or legislation or public policy shall be deductible as an expense from income before taxes.

Opposition to the reorganization or loss of identity for REA

Whereas the Congress has approved legislation making possible the reorganiza tion of the Department of Agriculture, including REA; and

Whereas we are opposed to the reshuffling of REA in such a manner as to divide its functions or change or eliminate its present name and identity: Now, therefore, be it

Resolved, That we express our opposition to any such changes to the President, the Secretary of Agriculture, and the Administrator of REA. We favor the retention of REA as a separate agency, possessed of its joint lending-service functions and with no change of name.

Rural telephones

TELEPHONES

Whereas the rural people of this region have dire need for adequate telephone service; and

Whereas the rural telephone program seems to be moving slowly after 4 years of operation; and

Whereas we feel that the delay in development is primarily the result of the failure of the Congress to provide adequate funds: Now, therefore, be it

Resolved, That we urge the REA Administrator to take all possible steps to speed up this program with the funds and personnel available; and that the Congress make adequate loan and administrative funds available to do the job.

INSURANCE AND EMPLOYEE WELFARE

Job training and safety national funds

Whereas the appropriations for vocational education are made under the George Barden Act of 1946 as part of the appropriations for the Department of Health, Education, and Welfare; and

Whereas the funds for our statewide vocational education programs are allocated to the States and matched by the States; and

Whereas the funds are used to pay part of the salaries of vocational instructors, including the job training and safety instructors, and the agricultural and homemaking teachers; and

Whereas the Federal vocational educational $25 million appropriation for this prupose met with very limited support in the past session of Congress: Now, therefore, be it