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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON
AGRICULTURE AND FORESTRY

UNITED STATES SENATE

EIGHTY-NINTH CONGRESS

SECOND SESSION

ON

S. 3337, S. 3720, And a Draft Bill Proposed by the Department of Agriculture

BILLS TO AMEND THE RURAL ELECTRIFICATION ACT OF

1936, AS AMENDED, TO PROVIDE ADDITIONAL SOURCES
OF FINANCING FOR THE RURAL ELECTRIFICATION

AND RURAL TELEPHONE PROGRAMS, AND FOR OTHER

PURPOSES

AUGUST 15, 16, 17, 18, AND 19, 1966

Printed for the use of the Committee on Agriculture and Forestry

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COMMITTEE ON AGRICULTURE AND FORESTRY

ALLEN J. ELLENDER, Louisiana, Chairman SPESSARD L. HOLLAND, Florida

GEORGE D. AIKEN, Vermont JAMES 0. EASTLAND, Mississippi

MILTON R. YOUNG, North Dakota HERMAN E. TALMADGE, Georgia

JOHN SHERMAN COOPER, Kentucky B. EVERETT JORDAN, North Carolina J. CALEB BOGGS, Delaware GEORGE MCGOVERN, South Dakota

JACK MILLER, Iowa
ROSS BASS, Tennessee
JOSEPH M. MONTOYA, New Mexico
WALTER F. MONDALE, Minnesota
DONALD RUSSELL, South Carolina

COTYS M. MOUSER, Chief Clerk

SUBCOMMITTEE ON AGRICULTURAL CREDIT AND RURAL ELECTRIFICATION

HERMAN E. TALMADGE, Georgia, Chairman SPESSARD L. HOLLAND, Florida

JOHN SHERMAN COOPER, Kentucky GEORGE MCGOVERN, South Dakota

GEORGE D. AIKEN, Vermont ROSS BASS, Tennessee

JACK MILLER, Iowa

II

CONTENTS

457

273

479

323

195

384

427

Campbell, Birum G., vice president, Consumers Power Co., Jackson,

Mich..

Campbell, Howard V., Acting Assistant General Counsel for Rural

Development and Conservation, U.S. Department of Agriculture --
Cannon, Daniel W., policy executive, Industrial Environment Depart-

ment, National Association of Manufacturers, New York, N.Y.-

Carpenter, L. C., vice president, Midcontinent Farmers Association,

Columbia, Mo.
Christenson, B. Maynard, president, National Telephone Cooperative

Association, Volin, S. Dak.
Clapp, Norman M., Administrator, Rural Electrification Administra-

tion, U.S. Department of Agriculture-
Clapp, William J., president, Florida Power Corp., St Petersburg,

Fla., and president, Edison Electric Institute-

Clark, Hon. Joseph S., a U.S. Senator from the State of Pennsylvania-

Cobb, J. R., general manager, Texas Electric Cooperatives, Austin,

Tex..

Cook, Donald C., president, American Electric Power Co., New

York, N.Y...

Cooper, Hon. John Sherman, a U.S. Senator from the State of

Kentucky-

184

236

453

495

497

504

173

424

433

171

Forsberg, Carl J., chairman of the board, Wisconsin Power & Light

Co., Madison, Wis.

Freeman, Hon. Orville L., Secretary of Agriculture-
Fullarton, David C., executive manager, National Telephone Co-

operative Association

Graham, Harry L., legislative representative, National Grange

Greenleaf, Robert W., president, Iowa Southern Utilities Co., Center-

ville, Iowa.

Griffith, Frank W., president, Iowa Public Service Co., Sioux City,

Iowa.

Gruhl, Alfred, president, Wisconsin Electric Power Co., Milwaukee,

Wis

Guthmann, Harry G., emeritus professor of finance, Northwestern

University School of Business, Evanston, Ill.

Harmon, Eugene J., director, USITA-REA Telephone Program,

United States Independent Telephone Association.

Harris, Hon. Fred R., a U.S. Senator from the State of Oklahoma

Harris, Shearon, president, Carolina Power & Light Co., Raleigh,

N.C.

Hartl, Albert V., president, Otter Tail Power Co., Fergus Falls,

Minn.

Hatch, Edwin I., president, Georgia Power Co., Atlanta, Ga..

Hathway, George W., president, Central Illinois Light Co., Peoria,

Ill

Horton, Jack K., president and chief executive officer, Southern

California Edison Co., Los Angeles, Calif.

Hundley, J. C., executive manager, Tennessee Rural Electric Cooper-

ative Association, Nashville, Tenn.-

Jackman, William, president, Investors League, New York, N.Y.---

Jones, Arthur, Midwest Electric Consumers Association, Britton,

S. Dak.

Jones, J. T., president, Empire District Electric Co., Joplin, Mo..

Kammert, D. M., president, Monongahela Power Co., Fairmont,

W. Va

Kennedy, Donald S., president and chairman of the board, Oklahoma

Gas & Electric Co., Oklahoma City, Okla-

Kigar, Donald F., president, Detroit Edison Co., Detroit, Mich..

Leighton, Lawrence W., associate, Kuhn, Loeb & Co., New York,

N.Y., on behalf of the National Rural Electric Cooperative Associa-

tion.

Lilly, C. A., Jr., president, Gulf Power Co., Pensacola, Fla--

Lindberg, Dennis, president, Midwest Electric Consumers Association,

Odebolt, Iowa-

Luthringer, M. S., president, Central Illinois Public Service Co.,

Springfield, Ill.-

Lynn, John C., legislative director, American Farm Bureau Federation.

MacDonald, R. G., president, West Penn Power Co., Greensburg, Pa.

MacInnes, William C., president, Tampa Electric Co., Tampa, Fla.

Madgett, John P., general manager, Dairyland Power Cooperative,

La Crosse, Wis.

Matson, William F., general manager, Pennsylvania Rural Electric

Association, Harrisburg, Pa---

211

529

216

551

173

209

559

443

111

86

206

562

454

83

Statement of-Continued

McDonald, Angus, director of reserach, National Farmers Union.---

McDonald, Mrs. Grace, executive secretary, California Farmer-

Consumer Information Committee, Santa Clara, Calif.

McDowell, A. H., Jr., president, Virginia Electric & Power Co., Rich-

mond, Va---

McElwain, Joseph A., assistant to the president, Montana Power

Co., Butte, Mont--

McGee, Hon. Gale W., a U.S. Senator from the State of Wyoming. -

McGovern, Hon. George, a U.S. Senator from the State of South

Dakota

McGuire, W. B., president, Duke Power Co., Charlotte, N.C.----

McLean, John H., assistant vice president, Wisconsin-Michigan Power

Co., Appleton, Wis.---

Meehan, John J., group manager, Community, Regional, Natural

Resources Development Group, Chamber of Commerce of the

United States.-
Mondale, Hon. Walter F., a U.S. Senator from the State of Min-

nesota.--.
Monroney, Hon. A. S. Mike, a U.S. Senator for the State of Oklahoma-
Montoya, Hon. Joseph M., a U.S. Senator from the State of New

Mexico.
Mueller, A. D., executive vice president and general manager, Indiana

Statewide Rural Electric Cooperative, Indianapolis, Ind..

Muskie, Hon. Edmund S., a U.Š. Senator from the State of Maine...
Nelson, Hon. Gaylord, a U.S. Senator from the State of Wisconsin....
O'Connell, Robert T., secretary, National Council of Farmer Co-

operatives..

Partridge, Robert D., senior legislative representative, National Rural

Electric Cooperative Association.-

Patterson, Dr. Robert T., economist, National Associated Business-

Person, Robert T., president, Public Service Co. of Colorado, Denver,

Colo.; also representing the Edison Electric Institute -

Peterson, Harold, executive director and counsel, National REA

Telephone Association, Minneapolis, Minn.--

Pinson, M. L., general manager, Sulphur Springs Valley Electric Co-

operative, Willcox, Ariz., and president, Grand Canyon State

Electric Cooperative.

Proxmire, Hon. William, a U.S. Senator from the State of Wisconsin..

Purcell, H. C., general manager, Golden Valley Electric Association,

Fairbanks, Alaska.

Rice, J. Lee, Jr., president, Allegheny Power System, New York, N.Y.

Rinta, Eugene F., executive director and research director, Council

of State Chambers of Commerce....

Ritchie, Reeves, president, Arkansas Power & Light Co., Little Rock,

Ark.

Robinson, Charles A., Jr., staff engineer and staff counsel, National

Rural Electric Cooperative Association.

Robinson, P. H., president, Houston Lighting & Power Co., Houston,

Tex.---

Short, Robert H., vice president, Portland General Electric Co.,

Portland, Oreg -

Shouse, J. W., president, Meriwether Lewis Electric Cooperative,

Centerville, Tenn
Sickels, Harvey N., secretary, National Farmers Organization,

Corning, Iowa..

Sinnott, Joseph F., president, San Diego Gas & Electric Co., San

Diego, Calif.

Smiley, 'Arval M., director, National Rural Electric Cooperative

Association, Fowler, Ind..

Smith, Nelson Lee, on behalf of the Edison Electric Institute, New

York, N.Y.

117

577

389

291

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