Melcher, Hon. John, a Representative in Congress from the State of Mott, Adm. William C., executive vice president, U.S. Independent Nelsen, Hon. Ancher, a Representative in Congress from the State of 107 192 8, 115, 153 Partridge, Robert D., executive vice president, National Rural Elec- Patman, Hon. Wright, a Representative in Congress from the State of Peterson, A. Harold, executive director and counsel, National REA 162 20, 189 Teague, Hon. Charles M., a Representative in Congress from the State 104 Zingmark, Loren A., general manager, East River Electric Power Co- 102 Correspondence submitted to the committee: Armstrong, R. T., manager, Plains Electric Generation and Transmis- ១១១ Boyt, James O., Water Conditioning Association International, Des Moines, Iowa, letter of February 28, 1973_- Brashares, William C., counsel, Peabody, Rivlin, Gore, Cladouhos & Freeman, Andrew L., manager, Minnkota Power Cooperative, Inc., Grand Forks, N. Dak., telegram of March 1, 1973, to Hon. Ancher Grager, Willard, general manager, Cass County Electric Cooperative, Inc., Kindred, N. Dak., letter of March 5, 1973, to Hon. Ancher Madgett, John P., general manager, Dairyland Power Cooperative, La Crosse, Wis., letter of March 2, 1973, to Hon. Ancher Nelsen_- O'Neal, John F., general counsel, House Agriculture Committee, letter 93 Correspondence submitted to the committee-Continued Partridge, Robert D., executive vice president and general manager, Yeutter, Clayton, Assistant Secretary of Agriculture, letter of Febru- Zook, R. G., general manager, Cooperative Power Association, Minneapolis, Minn., letter of March 9, 1973, to Hon. Ancher Nelsen_-_Additional information submitted to the committee: Explanation of amendment to the amendment offered by Mr. Mayne__ Rural electrics face loan crisis__ Statistics of Pennsylvania Rural Electric Association's member cooperatives REA LOAN PROGRAM MONDAY, FEBRUARY 26, 1973 HOUSE OF REPRESENTATIVES, The committee met, pursuant to call, at 10 a.m., in room 1301, Longworth House Office Building, the Honorable W. R. Poage (chairman) presiding. Present: Representatives Poage, Stubblefield, de la Garza, Vigorito, Alexander, Rarick, Jones of Tennessee, Bergland, Denholm, Brown, Rose, Litton, Gunter, Teague, Wampler, Goodling, Mathias, Mayne, Zwach, Sebelius, Mizell, Findley, Baker, Thone, Symms, and Johnson. Also present: Christine S. Gallagher, chief clerk; John O'Neal, general counsel; Hyde H. Murray, associate counsel; Fowler C. West and L. T. Easley, staff consultants; and Martha Hannah, subcommittee clerk. The CHAIRMAN. The committee will be in order. We have met this morning to begin consideration of the legislation to restore the existing law relating to the Rural Electrification Administration and the loans they have formerly made. This morning, we are going to hear the witnesses in favor of the legislation which has been introduced by our colleague, Mr. Denholm, and some hundred other members. Now, I understand a bill similar to this was passed in the Senate last week. Is that right? Mr. DENHOLM. Yes. The CHAIRMAN. I believe Mr. Denholm would like to start. [The bills H.R. 2276 and S. 394 and the Department's report on H.R. 2276 follow:] [H.R. 2276, 93d Cong., First Sess.] A BILL To amend the Rural Electrification Act of 1936, as amended, to reaffirm that such funds made available for each fiscal year to carry out the programs provided for in such Act be fully obligated in said year, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the purpose of this Act is to reaffirm the original intent of Congress that funds made available under authority of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) are to be loaned for the purposes prescribed in such Act during the fiscal year and in the full amount for which such funds are made available. SEC. 2. Section 2 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 902). is amended to read as follows: "SEC. 2. The Administrator is authorized and directed to make loans each fiscal year in the full amount determined to be necessary by the Congress or appropriated by the Congress pursuant to section 3 of this Act in the several States and territories of the United States for rural electrification and the furnishing of electric energy to persons in rural areas who are not receiving central station service and for the purpose of furnishing and improving telephone service in rural areas, as hereinafter provided; to make, or cause to be made studies, investigations, and reports concerning the condition and progress of the electrification of and the furnishing of adequate telephone service in rural areas in the several States and territories; and to publish and disseminate information with respect thereto." SEC. 3. The first sentence of section 4 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 904), is amended by striking out at the beginning thereof "The Administrator is authorized and empowered, from the sums hereinbefore authorized, to make loans" and inserting in lieu thereof the following: "The Administrator is authorized and directed to make loans each fiscal year in the full amount determined to be necessary by the Congress or appropriated by the Congress pursuant to section 3 of this Act". SEC. 4. The first sentence of section 201 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 922) is amended to read as follows: "From such sums as are from time to time made available by the Congress to the Administrator for such purpose, pursuant to section 3 of this Act, the Administrator is authorized and directed to make loans each fiscal year in the full amount determined to be necessary by the Congress or appropriated by the Congress pursuant to section 3 of this Act to persons now providing or who may hereafter provide telephone service in rural areas, to public bodies now providing telephone service in rural areas and to cooperative, nonprofit, limited dividend, or mutual associations.” SEC. 5. Section 306(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926) is amended by inserting immediately after the first sentence thereof a new sentence as follows: "The authority contained herein to make and insure loans shall be in addition to and not in lieu of any authority contained in the Rural Electrification Act of 1936, as amended." [S. 394, 93d Cong., First Sess.] AN ACT To amend the Rural Electrification Act of 1936, as amended, to reaffirm that such funds made available for each fiscal year to carry out the programs provided for in such Act be fully obligated in said year, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the purpose of this Act is to reaffirm the original intent of Congress that funds made available under authority of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) are to be loaned for the purposes prescribed in such Act during the fiscal year and in the full amount for which such funds are made available. SEC. 2. Section 2 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 902), is amended to read as follows: "SEC. 2. The Administrator is authorized and directed to make loans each fiscal year in the full amount determined to be necessary by the Congress or appropriated by the Congress pursuant to section 3 of this Act in the several States and territories of the United States for rural electrification and the furnishing of electric energy to persons in rural areas who are not receiving central station service and for the purpose of furnishing and improving telephone service in rural areas, as hereinafter provided; to make, or cause to be made, studies, investigations, and reports concerning the condition and progress of the electrification of and the furnishing of adequate telephone service in rural areas in the several States and territories; and to publish and disseminate information with respect thereto." SEC. 3. The first sentence of section 4 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 904) is amended by striking out at the beginning thereof "The Administrator is authorized and empowered, from the sums hereinbefore authorized, to make loans" and inserting in lieu thereof the following: "The Administrator is authorized and directed to make loans each fiscal year in the full amount determined to be necessary by the Congress or appropriated by the Congress pursuant to section 3 of this Act". SEC. 4. The first sentence of section 201 of the Rural Electrification Act of 1936, as amended (7 U.S.C. 922), is amended to read as follows: "From such sums as are from time to time made available by the Congress to the Administrator for such purpose, pursuant to section 3 of this Act, the Administrator is authorized and directed to make loans each fiscal year in the full amount deter |