1939 CONGRESSIONAL RECORD-HOUSE 2757.' H. R. 5052. A bill for the relief of "Dionis Moldowan; to the 1757. By Mr. KEOGH: Petition of the National Associa­ Committee on Immigration and Naturalization. tion of Manufacturers, New York City, with reference to the By Mr. LEWIS of Ohio: Barkley amendment to House bill 3791; to the Committee on H. R. 5053 (by request) . A bill for the relief of Fred· WaltP.r; Ways and Means. to the Committee on Claims.· 1758. Also, petition of the Yakima County Education Asso­ H. R. 5054. A bill for the relief of Verdie Barker; to the ciation, Yakima, Wash., concerning the Harrison.:.Thomas­ Committee on Claims. Larrabee bill; to the Committee on Education. By Mr. McANDREWS: · 1759. By Mr. KRAMER: Resolution of the Board of Play­ H. R. 5055. A bill for the relief of William Theodore Her­ ground and Recreation Commissioners of the City of Los bert; to the Committee on Naval Affairs. Angeles, relating to a proposition which, if enacted, would By Mr. McLEOD: grant Reeves Field, now owned by the city of Los Angeles, to H. R. 5056. A bill for the relief of Nicholas Contopoulos; the United States Navy, etc.; to the Committee on the PUblic to the Committee on Immigration and Naturalization. Lands. . By Mr. MAHON: 1760. Also, resolution . of ·the Los Angeles Central Labor H. R. 5057. A bill to relieveR. J. Murray, of Dallas, Tex., Council, relating to the suspension of · Dr. Towne Nylander of all liability for the balance due on a claim of the United from duty; to the Committee on Labor. States against him arising from a contract for the lease of 1761. Also, resolution of the District Council of Painters, post-office quarters at Slaton, Tex.; to the Committee on No. 36, of Los. Angeles, relating to appropriations for con­ Claims. struction to be brought under the Public Works Adminis­ By Mr. MUNDT: tration, etc.; to the Committee on Appropriations. H. R. 5058. A bill granting an increase of pension to Mary · 1762. By Mr. LAMBERTSON: Petition of P. A. Walters· J. Loveland; to the Committee on Invalid Pensions. ~nd 174 other farmers, of Leavenworth County, Kans., Urg­ By Mr. OSM.ERS: ing that the 1938 Farm Act. be repealed; to the Committee on H. R. 5059. A bill to authorize the presentation to Harry H. Agriculture. · ' Weiss of a Distinguished Service Cross; .to the Committee on 1763. By Mr. LANDIS:. Resolution of the Senate General· Military Affairs. ~sembly of the State of Indiana, memortaliztng the Congress By Mr. SCHAFER of Wisconsin: of the United States to enact suitable legislation providing H. R. 5060. A bill granting a pension to Jane A. Baker; to for the general w~lfare of the Natipn, as set out in House bill the Committee on Invalid Pensions. ~.now pending before the Cpngress .of the .United States; tQ By Mr. 'I'Hn.L: the Committee on Ways and Means~ H. R. 5061. A bill for the relief of August H. Krueger; to 1764. By Mr. MOTT: Petition signed by AmeUa ·Wisemari the .committee on Military Affairs. · and 13 other citizens, of Clackamas County, Oreg., urgUig the By Mr. THOMAS of Texas: enactment of legislation which will diminish the advertising H. R. 5062. A bill for the relief of R. M. Derby; to the Com­ of alcoholic beverages by newspapers~ ma·gazines, billboards, mittee on Claims. and radio; to the Committee on Interstate and Foreign Com­ merce. PETITIONS, ETC. 1765. By Mr. POLK: Petition signed by 69 citizens of Cler­ Under clause 1 of rule XXII, petitions and papers were mont County, members of the Bethel

a system of State service bureaus and down to the workers in REPEAL CERTAIN ACTS OF CONGRESS the individual posts. Thousands of men today owe their Mr. SUMNERS of Texas

British Empire Chamber of Commerce, was also associated I rebuilding . a. part of the ·line. The Bonneville administra­ in international banking activities. Mr. Roosevelt was chair- tion purchased the line from a private utility. man of the organization committee of the Federal Interna- Do not cripple our project by 'cutting·. the appropriation at tiona! Banking Co., a corporation organized for the selling of this time. The statement is made that all we wanted last foreign securities and bonds to the American people. Sir year was $3,500,000. we asked for $6,000,000, but we knew Rober-t Rowland -Appleby: ·was-also a big shot· in-this- corpo-· I we needed double that amount. . ration. Your Treasury is also controlled by an international- ' :Mr. -WHITE of Ohio rose. banker-minded new dealer, Secretary·· Morgenthau, ·who is I the SEln of an. international banker, and who married the Mr. PIERCE of Oregon. I do not yield. to the gentleman, not for a word. The gentleman spoke a few days ago and favorite niece of Lehman brothers, who are among the most made so many incorrect statements about the Northwest I . prominent international bankers in America. know he cannot at this time make any _contribution of value. Barney Baruch, your New Deal unofficial president, ·is also ' I invite the gentleman to come to Oregon and waspington an international banker. . and be my guest so we can shpw him ~hat we have-in th~ I welcome the gentleman's presence on the Republican NorthweSt. I ask unanimous consent to insert as part of side today, and I hope that he and ·other Jeffersonian Demo- .my remarks a table of figures on B_onneville costs. crats will join with us and drive the international money chan.gers from the citadels of gdvernment in Washington. Cost of Bonneville power project, 504,000-kilowatt capacity Let us have more action and less talk. Let us drive the Cost of plant fac111tles used for power only______$29,448, OOC. money changers from the temple of our Government and not Cost of dam and flshways, joint costs, $39,179,000 (32.5 into it. [Applause.] percent allocated to power)------12, 733, 000 The CHAIRMAN. The gentleman from Wisconsin yields 42,181,000 back 1 minute. 2768 CONGRESSIONAL RECORD-HOUSE MARCH 15

Cost of Bonneville power fYI'O'/ect, 504,000-kiZowatt capactt~on. Congress to be wise and proper to install at the dam a power TRANSMISSION LINES plant, which naturally produces a great deal of hydroelectric Appropriated, 75th Cong------$3, 500, 000 energy; and so as an incident to this navigation project the P. W. A. appropriation------10, 750, 000 power was harnessed and is being distributed under one of W. P. A. approximate 1 -~------2, 000, 000 Included in 1940 appropriation act______13, 000, 000 the most sensible, beSt-considered, and businesslike programs that haS ever been put into effect. We were fortunate enough 29,250,000 from the beginning to have as the head of the Bonneville Estimated to complete, excluding Coulee______10, 000, 000 authority Mr. J.D. Ross, a man beloved by everyone in the Total transmission costs.._..;______39, 250, 000 Pacific Northwest and one of its greatest hydroelectric engi­ neers. Unfortunately he died at the Rochester hospital yes­ Total power costs, generation. and transmission_ 81, 431, 000 terday. In his death we have suffered a great loss. The NAVIGATION FEATURES work he has done, however, and the policy he created for Lock______5,517,600 Bonneville will continue to endure. Joint fac11ities------..;----- 26, 446, 000 The power generated at this dam must, of course, be dis­ tributed to the markets where the power is to be sold. Other­ 31,963,600 wise the entire investment in the power project will be 1 Report shows $2,843,946 for W. P. A. allotment. This item will be reduced because of reduction of clearing through acquisition of wasted. The program provides that the rates shall be :fixed interurban .right-of-way in Oregon. so that they will return to the Government of the United [Here the gavel fell.] States 3 ¥:z percent per annum upon its power investment, Mr. PIERCE of Oregon. I ask unanimous consent to in­ and that the entire cost of the Bonneville power project, as clude in my remarks figures furnished yesterday by one of the distinguished from the navigation project, will be amortized engineers of the Bonneville plant showing its cost. within a period of 40 years. The CHAIRMAN. The gentleman will have to obtain per­ The Government for reasons you already know has rnade mission in t.Jie House for the insertion of any extraneoUs a large investment in the Bonneville power project, with the material. understanding that the cost would include sufticient money The Chair recognizes the gentleman from Oregon [Mr. to build the transmission lines which were comprehended in MoTT] for 5 minutes. the original scheme, and to extend them out into the ' ~at Mr. MOTI'. Mr. Chairman, my friend, the gentleman from · markets that are already waiting and which are anxiot& to Ohio, has spoken with sincere conviction and, apparently, take this power. Until we can begin selling the power to the after such study of this subject as he thought it properly customers who are waiting for it, the Government: of course, required. The fact is, nevertheless, that we find him in a will not get any reimbursement; and the longer we delay com­ situation very much like that of the gentleman from Penn­ pleting the transmission end of our program the longer it sylvania, in that in offering an amendment to cut the appro­ will be before the Government begins to be reimbtftsed. priation for Bonneville in two he has been talking today Could we have gotten the transmission and sale of power upon a subject with which he is not suftlciently familiar. under way last year-which was impossible because it was Mr. wmrE of Ohio. Mr. Chairman, will the gentleman too big a project and because suftlcient money was not avail­ yield? · · able-the Government now would be receiving its regular 3¥2 Mr. MOTT. I yield to my able friend from Ohio. percent per year upon its investment. To make this pos­ Mr. WHITE of Ohio. Does the gentleman contend that sible is the purpose, and the only purpose, of this appropria­ after sitting in hearings day in and day out, and studying tion. those hearings, listening to all the. testimony, that such a per­ Let us proceed to complete the Bonneville project so that son does not know what he is talking about? the Government may begin receiving its returns upon this Mr. MOTT. I was about to answer that, judging from my sound business investment, and so that this great project friend's remarks in debate, I was sorry to say that that was may serve the interests of the people as it was intended to my opinion. But I will not say that. I have too great respect serve them. [Applause.] for the gentleman's sincerity and his ab111ty. But I will [Here the gavel fell.] repeat that, in my opinion, and in spite of what study he has· The CHAIRMAN. The Chair recognizes the gentleman made, the gentleman has not sufficiently informed himself from Mississippi [Mr. RANKIN] for 3 minutes. upon this subject to warrant his assuming responsibility for Mr. RANKIN. Mr. Chairman, I join the distinguished an amendment such as he has offered-an amendment which, gentleman from Oregon [Mr. PIERCE] in paying tribute to if adopted, would be disastrous to the Bonneville program my friend, J.D. Ross, who p~ssed away on yesterday. His and policy, which has already been given the overwhelming name will live long in the hearts of the people of the Pacific approval of the Congress. Northwest. I know of no man who has passed away in recent Mr. WHITE of Ohio. W111 the gentleman point out any years whose loss will be more greatly felt. misstatement I made in debate? I want to answer one or two questions on this proposition Mr. MOTI'. I will certainly try to. That is the purpose of power lines for Bonneville. In the first place, as to this for which I have taken the fioor. talk of duplication, there is not a really high-powered line The fact is, Mr. Chairman, that the Bonneville project 1s in that territory except in three places: There is a high­ unlike any other project in the United States or in the world. power ·line from Skagit down to Seattle, one from CUshman It is essentially a navigation project and one of the greatest down to Tacoma, and there is one to the west from Spokane. navigation projects in the world. At Bonneville we have a . Outside of that there are no lines that can be used for dam 80 feet high, 150 miles from the sea, on the ·columbia the purpose of transmitting this vast amount of Bonnev11le River. The bottom of the dam, although 150 miles from the power to the points of delivery. sea, is at tidewater. Mr . .RICH. Will the gentleman yield? ·There are ocean-ship locks in that dam. Oceangoing ves­ Mr. RANKIN. I cannot yield now. If that map shows to sels from all parts of the world not only ascend the Columbia the contrary it is wrong. The gentleman should not read a River in a 35-foot channel to Bonneville Dam, but they go red map. [Laughter.] Get a real map. He talks about through the Bomieville locks and proceed for 80 miles far­ the market for power. I am surprised at the gentleman from ther into eastern Oregon, up into the heart of the wheat and Ohio [Mr. WHITEJ saying that there are only two and a half the wool and the cattle country; beyond and through .one of million people within the distribution radius of this plant. the greatest ranges of mountains in the United States, the The radius for Bonneville power will not be limited to 150 Cascades. or 200 miles. In the last conversation Mr. Ross had with It is, as I say, a navigation project. On account of the me in my office a few weeks ago, he said it would only be a great height of the dam, however, and on fJ.CCOUnt of the fact short time until they would be able to transmit the power that this dam is built in a river which in volume of water is for 500 or 1,000 miles to reach all of you people in that great the second largest on this continent, it was deemed by the northwestern country, where It is so badly needed. 1939 CONGRESSIONAL RECORD-HOUSE 2769 The gentleman talks about surplus power. It was stated been let. One was let yesterday. These contracts, when here that they use 1,60Q,OOO horsepower now, and· that this finally let, will take up every single dollar of the funds would ·be doubled. If you were using the power you ought already appropriated for building a portion of this chain of to use now you could absorb all the power generated at transmission lines. Bonneville, to say nothing of the nec~ssity for this line from An additional sum of $13,000,000, included in this appro-. Bonneville up to Grand Coulee.· . priation bill, will be necessary, if we are to extend those The consumption in the States of Oregon and Washington lines so that the users in my district and the other districts is boosted on account of the low · prices at Tacoma, Seattle, surrounding the project may have an opportunity to have and Eugene . . The· average consumption there is about 100 . electrical energy, It would certainly seem useless to build kilowatt-hours per month. However, outside of that im­ . a project of this sort, then provide no funds for the trans­ mediate area, in Idaho and adjoining territory, it is only mission of the product so that it may be sold. Considerable about 50 kilowatt-hours per month, while last month in my criticism was made in the hearings that none of this power home town of Tupelo, Miss., where we are· using electricity is now being sold. That is practically true. None of it is for the purposes for which it was created, we used 215 kilo­ being sold, except a very small pottion, because there are no watt-hours per month on an average. When you people out transmission lines connecting this plant with the trade area in that country get to using power for the purpose for which in which it could be sold. That·is why this money is needed. · it was created you will absorb this load, and the people in If you want to lock up this plant and put a "for sale"· sign the States to the west will get the benefit of Bonneville and. on it, then vote down the appropriation and give it no money; . Gra~d Coulee for all time to come. [Applause.] but, on the other hand, if you ~ want the money already ex­ [Here the gavel fell.l pended to be returned to the Federal Treasury with interest, The CHAIRMAN. The Chair recognizes the gentleman if you want to create a sound investment which will pay from Oregon [Mr. ANGELL] for 5 minutes. fnterest at the rate of 3% percent, then vote for the appro­ Mr. ANGELL. Mr. Chairman, Bonneville happens to be priation. in my congressional. district, and therefore I am quite fa­ Mr. Chairinan, the Bonneville project will not compete miliar with it. In fact, I was born not a great distance with private industry, because the law passed by the Congress from the Columbia River. I have been familiar with the · provides that the power must be sold at wholesale. It is sold sitq.%ion existing there during all of my life. at wholesale, and the private utilities hRve ·an equal right· · As~as been stated before, Bonneville is not just an ordi­ with any other user to buy this product, except public bodies nary project so far as the production of power is concerned. have a preferential right to buy 50 percent of the energy Pow.~r is purely incidental to the main project itself. until 1941. · · An examination of the hearings held by the committee Mr. Chairman, in consid~ring .the appropriations for the will show that of the total costs expended-joint purposes-­ Bonneville projeet carried in H. R. 4852, Union .Calendar No. for RQWer and other developments on the river in connection 58, as reported by the Committee pn · Apprc;>pr~ations, it. is with this· project-that is, navigation and :flood control­ pertinent to consider briefly a history of this development. only 32¥2 percent was allocated to the power portion of the In 1914 the Reclamation Bureau of the Department of the project. Less than $12,000,000 out of a total expenditure Interior investigated the possibilities of developing tbe Co­ of $53,000,000 was allocated to power development. Of course, lumbia River. Two years later the State engineer of Oregon the cost of the transmission lines themselves is an item in ad­ urged the development of the Bonneville site as a national­ dition to that, but this was all charged to the power develop- . defense measure. He pointed out that this dev:elopm~nt ment. would not only be effective in times of war in the manufactur~ Under the .law passed by the_ Congress, the cost of the of nitrates, but during peacetimes it could be devoted to the project, togetller with interest at the rate of 3 ¥2 percent per manufacture of fertilizers greatly needed in the agricultural annum, will ·be repaid to the Federal Government in the areas of the Northwest. In addition it would make possible course of 40 years. I may say· also that interest has been the development of this great waterway, the Columbia River, computed on the money spent during the course of the con­ for navigation and would , also provide the :flood control of struction of this project. Therefore, Mr. Chairman, this is the waters pouring down tln'ougl_l _the Columbia gorge 'from really a self-supporting project, insofar as power is concerned, the great Columbia River watershed. and the money so expended will be returned to the· Treasury The Bonneville Dam is situated in the heart of the Cascade of the United States. . · Range, where the Columbia Jtiver cuts through these moun­ The question arises with reference to the amount we will tains, being some 40 miles east of Portland. The Rivers and spend for the transmission lines, which is really the only Harbors Act of 1925-Public Law No. 585, Sixty-eighth Con­ point at issue today. Wh~n the project was completed, un­ gress, approved March 3, 1925-directed the Secretary of War, fortunately . no provision had been made for transmission through the Corps of Engineers, United States Army, to in­ lines . . vestigate and report to the Congress the cost and feasibility of The plant is located a considerable distance from the field power developments on the navigable streams and their in which this energy will be used. Portland is some 40 miles tributaries, with the purpose in view of preparing plans for away, but· that city is only one of many places in this great the improvement of these waterways for navigation, :flood territory. There is territory some 300 miles surrounding the control, irrigation, and economic development of water power. project in all directions which will ultimately .consume the Pursuant to this authorization, .the Secretary of War,. on energy. April 12, 1926, submitted to the Congress his report-House In my opinion, the Congress was not farsighted because of Document 308, first session, Sixty-ninth Congress. The re­ its failure to provide the necessary revenue for the transmis­ port, among others, covered the Columbia River and its prin­ sion lines to be completed by the time the project was com­ cipal tributaries. pleted. Mr. Ross, who was selected as administrator of the The Rivers and Harbors Act of 1927-Public Law No. 560, project, was a man of great experience, covering many years Sixty-ninth Congress, approved January 21, 1927-directed with this type of work. He requested that additional ftinds be provided by· the C'ongress for the building of these trans­ the Secretary of War to make the necessary surveys in ac­ mission lines, but the request was denied. cordance with the recommendations of House Document. 308 Last year there was an appropriation made by the Con­ of the Sixty-ninth Congress. Pursuant to this authorization, gress, and then an additional allotment was made through the Secretary of War, through the Corps of Engineers, United the good offices of the President of the United States of states Army, proceeded to make reqUisite surveys, examina­ $10,750,000 from W. P. A. for this item. The gentleman tions, and investigations to formulate- from Ohio has stated that a considerable portion of that The general plans for the most effective improvement of the · Columbia River for the purpose of navigation, and the prosecution money remains unexpended; however, if he will examine of such improvement in combination with the. most efficient de­ the -record, he will find this money is all earmarked and has velopment of the potential water power, the control of fioods, and been set aside for various contracts, many of which- have . the needs of Irrigation.. · · · · 2770 . CONGRESSIONAL RECORD-HOUSE MARCH 15 This report of the Secretary of War was submitted to the as ·40 years and the interest rate of 3% percent. This in­ House on March 29, 1932-House Document 103, first session, terest rate is approximately 1 percent higher than the long.. Seventy-third Congress. The conclusions of the Corps· of time average interest rate, and about 1 percent higher than Engineers were that the· Columbia River and its tributaries the private utilities are paying to R. E. A. for loans covering were capable of being developed into the greatest system of rural line extensions. low-cost hYdroelectric power in the United States in connec­ (9) Section 9A: The administrator shall keep complete and tion with the development of these harbors for navigation, accurate accounts of all operations in line with the require.. Hood control, and irrigation. ments of the Federal Water Power Act. · As a result of these investigations, and pursuant to the rec­ <10) Section 9C: The administrator, in December of each ommendations of the Secretary of War, as set forth in House year, shall file . with the Congress a financial statement and Document 103, Seventy-third Congress. first session, the con­ a complete report, covering the transmission and sale of elec­ struction of the first dam by the United States Government tric energy during the preceding governmental fiscal year. on the Columbia River at Bonneville was initiated Septem­ In line With the requirements of the Federal Water Power ber 30, 1933, under the direction and supervision of the Corps Act of 1920, the appropriation request of the Bonneville of Engineers, United States Army, and was designated "Public project has been divided between operation and construction. Works Project No. 28." The entire project, consisting of the The operation budget for the fiscal year 1940 is $400,000, and dam at Bonneville, the ship locks, fishways, and power plant, is detailed on page 91 of the hearings before the subcom.. were designed and constructed under the direction and super­ mittee of the Committee on Appropriations covering the In.. vision of the Corps of Engineers of the United States ArmY. terior Department, Seventy-sixth Congress, January 1939. being formally authorized by Congress in the Rivers and Har­ The construction projects approved by the Bureau of the bors Act of 1935, Public, No. 409, Seventy-fourth Congress, .Budget for the fiscal year 1940 are detailed on page 93 of the approved August 30, 1935. Later, in the Seventy-fifth Gon .. Interior hearings, and amount to $14,000,000. The followtilg gress, an act, Public, 329, was approved August 20, 1937, pro.. items apply to .Oregon: viding for the completion of the Bonneville project. The act, (1) Substation completion at Oregon City, Salem, Pasco, among other things, provided: Pendleton, Albany, Eugene, and Portland. That for the purpose of improving navigation on the Columbia (2) Feeder lines from existing and proposed substations River, and for other purposes incidental thereto, the dam, locks, to take the marketing load from the substations to the bulk power plant, and appurtenant works now under construction at points of use at ·oregon City, Salem, Albany, Eugene, tfflia.. Bonneville, Oreg., and North Bonnev1lle, Wash. (hereinafter called Bonneville project); shall be completed, maintained, and operated tilla, Pendleton, Bonneville, The nanes, St. JohziS, and Port.. under the direction of the Secretary of War and the supervision of land. the Chief of Engineers, subject to the provisions of this act relating (3) New transmission and transformation facillties ;· into to the powers and duties of the Bonneville power administra­ the Umatilla and Pendleton area, the Dalles area, and a tor • • •. transmission line from Vancouver, Wash., to St. Johns, The administrative act of the Bonneville project Section 7: Rate schedules shall be drawn to recover Eugene, which has the lowest rates in America and perhaps for the Federal Treasury the full· cost of producing and the best and cleanest financial structure. has applied for transmitting such energy, including interest, and the amorti- · Bonneville current and w1ll shortly execute a contract. The zation of the capital investment, over a reasonable period of Northwestern Electric Co., serving a part of Portland, is now years. The adm.in1strator has set the amortization period taking up to the capacity llmits of its tra.nsmission line, 5,000 1939 CONGRESSIONAL RECORD-HOUSE 2771 " to 12,000 kilowatts of current. The Portland General· Elec­ It was the intent of Congress -that ·the rate structure-for tric Co. has applied for 20,000 kilowatts of prime power and electric energy should be based upon these costs properly 80,000 kilowatts of secondary power, which amount should be chargeable and allocated to power development, and should . greatly increased by the time the Bonneville plant can be be fixed for such amounts that the Government will be reim­ completed to its full capacity. bursed within a reasonable time for the cost of the project, As I have stated, the hydroelectric plant in connection with including costs for transmitting and sale of surplus energy the Bonneville project is a part only of the entire develop­ produced at Bonneville, including interest. These rate sched­ ment. Navigation and flood control, it is obvious, constitute ules have· now been made and promulgated for the sale of the major part of the project. Under the provisions of the power ·at wholesale only, and so designed to repay this in 40 law authorizing the construction of these works it was pro- · years, together with interest at 3 ¥2 percent per annum, which vided that the costs should be segregated and that portion is 1 percent greater than the present average cost of money properly chargeable to power development should be allocated which the Government borrows.. The rates were fixed only to such development. · In making this allocation of costs the after public hearings were held in various places fn Oregon~ Federal Power Commission, among other things, said in· its Washington, and Idaho and conferences with groups of citi­ report of February 8, 1938: zens and public officials interested in this matter. Repre­ The Bonneville project on the Columbia River, Oreg.-Wash., in­ sentatives of private utilities, municipalities, power districts, cluding the dam, ship lock, power plant, and appurtenant works, civic, commercial, and farm groups presented their views. for the purpose of improving navigation on said river and for The administrator states that over 30,000 ·questionnaires were other purposes incidental thereto, is now substantially completed; and said power plant, hereinafter called the initial power develup­ sent to officials and organizations throughQut the Northwest. ment, will be ready for commercial operation on or about June 30, The administrator also states in his first annual report, dated 1938, and will produce surplus electric energy as a byproduct of said December 31, 1938: navigation improvement, which will give the Federal Government opportunities to promote the public welfare by increasing the The great majority of citizens appearing at the hearings favored benefits derived from works for navigation through provision of a a uniform wholesale rate for ·electricity throughout the entire trans­ dependable supply of electric energy to potential consumers. mission area. Four out of five replies to the questionnaires favored The actual cost incurred by the United States to and including such a rate policy. By a 2-to-1 ratio, Northwest residents expressed October 31, 1937, for the construction of said Bonneville project approval of the authority vested in the Administrator to contra~ by was.. ..f44,130,859.93, exclusive of interest during the construction contract the resale rates for Bonneville power. periwJ; and on the basis of said actual cost and of estimates of As a result of these investigations, studies, and hearings, costS '~ecessary to complete said · project, including said initial power development with installed capacity of· 86,400 kilowatts, the it was determined that power from BonneVille Dam should aggregate cost of said project, exclusive of interest during the con­ be sold at wholesale in a new measuring unit, namely, the struction period, when said initial power development is completed kilowatt-year, the base rate being for primary power $17.50 on or about JUne 30, 1938, will be approximately $51,892,000. The cost to the United States for the use of money during the for the kilowatt-year-that is, the right to use continuou-sly. 50-month period from November 1, 1933, to D.ecember 31, 1937, rep­ through 1 complete calendar year 1 kilowatt. There being l"esenting the principal period of construction, was 1.54271 percent, 8,760 hours in a year, a kilowatt-year would mean 8,760 kilo­ this being the weighted average rate of interest paid on all money borrowed by the United States dur.ing said 50-month period, includ­ watts pursuant to this rate schedule. The desirability of ing both long- and short-term financing. such a rate from the standpoint both of the Government Including interest at 1.54271 . percent during the construction producing the power and the users is apparent. The Colum­ period, the cost of Bonneville project facilities to June 30, 1938, will bia River is fed by waters from the whole watershed of -the be approximately as follows: Facilities solely for navigation pur­ poses, $5,517,600; facilities solely for power purposes, $9,180,500; Columbia River Basin, and is a continuous flow throughout facilities having joint value for the purposes of navigation and the year. increased somewhat during flood periods. The power development, including fishways, which are a joint responsi­ productive capacity, with the exception of some diminution bility, $38,490,700; the estimated total cost of all Bonneville project facilities to Ju.ne 30, 1938, including interest during construction,· during flood periods, is practically uniform, and it will at being $53,188,800. once be observed that if the Government can develop a continuous use of the power larger revenues will be received Having fixed the costs of the entire· project as of June 30, by the Government, even though the rate is· greatly reduced. 1938, at $53,188,800, which includes interest on the funds used during the construction period, as shown by the quota­ By fixing such a rate, it is believed, as shown by experiences in other distrlcts, the public will be encouraged to and will tion from the Federal Power Commission, it was determined very much augment its use of ..electric energy. By taking that $5,517,600 of this aggregate total represents facilities advantage of this low rate, it will be economical for users used solely for navigation purposes. Initial facilities useful to avail themselves of power throughout the 24-hour period solely for power purposes were fixed at $9,180,500, which was of the day and night for various farm and domestic and allocated to the power development. The costs allocated to power uses, such as irrigation, refrigeration, cooking, water the dam, fishways, and appurtenant works were fixed at heating, mechanical electrical contrivances, house heating, $38,490,700, which it was determined covered values useful for both navigation, flood control, and power production. In ap­ and various other uses which are rapidly being developed by portioning the costs provided by the statute the Federal new electrical utilities. . Power. Commission fixed 32.5 percent of the total cost of these The following is a summary of the wholesale rates estab­ facilities having joint value to power development. At the lished: present time 2 of the 10 generators included in the project Transmission system: plans have been completed and installed, constituting one­ SecondaryPrimary power power------kilowatt-year______do____ $11.50$17. 50 fifth of the total possible power development under the proj­ Optional rate ______kilowatt-hour__ 7'2 cent ect. By reason of this, the Commission allocated one-fifth (Special development rate for 2-year period for small customers whose demands are less than 1,000 kilowatts.) of the power-development costs to the project as now com­ At site rates: pleted, or the sum of $2,501,900. This sum, together with the Primary power______kilowatt-year__ $14. 50 amount determined to be the cost of the facilities used solely Secondary power______do____ $9.50 for power, namely, $9,180,500, make~ a total of $11,682,400, (At site power is available to -purchasers building which the Commission allocated as the total cost for the their own lines for use within 15 miles of the dam.) initial power development. Mr. Ross, in his testimony, also detailed these rates, both It is patent, however, that as future units are added to the wholesale and the objective rate, for homes and farms serv­ power development there will be allocated to the costs of the iced by public-utility districts-page 98, part I, of the hearings power development the proper proportion of the facilities before the committee. jointly used !or power and other purposes. These findings of A simple computation discloses that this rate of $17.50 per the Federal Power Commission provide the formula for the kilowatt-year for continuous use gives a fixed ;rate of 2 mills ascertaining and allocating these costs to the power project per kilowatt. If the energy is used only one-half a day; as the additional units of the 10 contemplated are added from· or 12 hours, the rate would be 4 mills; and if used only 8 hours time to time. · of the· 24-hour period, the rate would ·be 6 mills. As stated,· 2772 CONGRESSIONAL- RECORD-HOUSE . MARCH 15 these are wholeSale rates. · The power is to be disposed of · opposition to another utillty. In the event Woodburn should seek· power from _Bonneville, three appraisals would be made--one by a by the Government at wholesale, either to public bodies or State agency, another by Bonneville engineers, and a. third by Fed­ private utilities, with preference and priority, however, as eral engineers independent· .of Bonneville--to form the basis for · provided by the act, to public bodies and cooperatives. In valuation. Beach said the project representatives have been in­ order to preserve this preferential status, 50 percent of the vited to discuss the program before the city council at its session available energy is reserved until January 1, 1941, for such· . Tuesday night. . . groups. Pending their availing themselves of this preference, . It is unfortunate, Mr. Chairman, that plans were not made however, power wm be disposed of temporarily to other and necessary appropriations provided for the construction applicants. · of transmission lines affording the means to carry the power Section 5, paragraph A, of Public, 329, Seventy-fifth Con­ from the Bonneville project to the market, with the view of gress, approved August 30, 1937, provides: completing the transmission lines by the time the plant was Contracts. entered into wtth any utmty engaged in the sale of · completed, and the power ready for distribution. However, electric energy to the general publlc shall contain such terms and the power project was completed during the year 1938, no conditions, . including among other things stipulations concerning proVision was theretofore made in time to have available resale, and resale rates by any such ut111ty as the Adm1nistrator may deem necessary, desirable, or appropriate to effectuate the purposes transmission lines. Some criticism was made against the of this act and to insUre that resale by such ut111ty to the ultimate project at the hearings, and some on the floor during this consumer shall be at rates which are reasonable and nond!s- debate, that the Bonneville power is not being marketed. cr~atory. · The answer, of course, is that without transmission lines it 1s The Commission is continuing its stUdies for the determi­ impossible to sell the power. The only transmission line nation of resale rates which it will approve through contracts connecting with Bonneville is that of the Northwest Electric in order to comply with the provisions of the Bonneville Act. Co., which furnished power during the construction of the · These studies have not been completed, but the administra­ project, and this company is now taking power over its line tor states in his first annual report: from the Bonneville Dam on a temporary basis. The reports This objective rate which, it is believed, will not only be met . of . the adininistrator, however, are that applications for but will be exceeded, is as follows: power have been made and contracts are pending which will Cents per kilowatt-hour more than absorb all of the power -available for sale. The First 50 kilowatt-hours a month------2¥2 two generators now installed produce 86;400 kilowatts. 'l'here Next 150 kilowatt-hours a month ______2 Next 100 kilowatt-hours a month ______:______1 are .two more generators in process of installation totaling Next 1,700 kilowatt-hours ~ month __;_::.. ___ ..:,______¥2 · 104,000 kilowatts. To complete this will ' require approxi­ Excess above 2,000 ·kilowatt-hours a month______%. mately 2 years. The total 10 units which ultimately may be. Minimum monthly bill, 50 cents per meter. installed, according to present plans of .the project, will. The administrator confirmed these rates in his testimony· P:roduce 504,000 kilowatts. · in the hearings before the subcommittee of the· Committee The administrator testified before the committee-pa.rt I on Appropriations, his testimony being set forth on page 97 of the hearings, page 94--that he had contract applications of part I of the report of these hearings. for 312,000 kilowatts; from public districts formed in Wash­ As I have shown; the development of power in connection ington under existing laws, he had applications for 202,431 - with the Bonneville project is a byproduct and is a minor kilowatts, and in Oregon 13,011 kilowatts, which was in addi­ accomplishment in connection with · the whole development. tion to the requests from the cities of Eugene, Canby, and This is disclosed by the Federal Power Commission in its Cascade Locks, aggregating about 9,000 kilowatts; and that allocation of costs where only 32.5 of the costs of joint facili­ there were reservation. power applications from agencies now ties are allocated to power; the remainder, over two-thirds, in the process of being formed, totaling 60,735 kilowatts. being chargeable to navigation, flood ' control, and other He estimated that in 1944 the requirements for public dis­ facilities. tricts with applications now on flle would total 442,162 ·kilo­ It was not the intent or purpose of the Congress and is not watts. These applicationS and requirements were from pub­ the plan of the administrator, that this power development · lic bOdies. He also stated that Portland General Electric Co.· shall put out of business other utility projects now being had applied for 20,000 kilowatts of prima.ry power, and would maintained by private or public utilities. The Government like to secure up to 80,000 kilowatts of excess power, some ot determined that power should not be -sold at retail, but only it seasonal and some secondary, and that he was at the at wholesale, and although preference was given under the present time selling on· a fluctuating load basis· to the Paci.flc terms of the act to public bodies and cooperatives, private Power & Light Co. up to 12,000 kilowatts. utilities as well were encouraged to make use of this power. There are no power developments now in process of erec­ The rates charged are the same both to the public and to tion-within this territory. Much of the existing power facili­ private utilities. The costs, as shown by the rates fixed by ties are being removed from· a dependable classi.flcation by the administrator. are such that the utility companies can obsolescence. The national power 8urvey of 1934 of the Fed-· afford to take Bonneville pawer rather than generate it era! Power Commission shows the age of hydro and steam themselves, particularly with respect to power needed by plants with their capacities in the Pacific Northwest. Al· them that cannot be produced under their existing facilities. though it is 5 years old, there has been little, if any, devel­ Mr. Ross, at the hearing, testified as follows-part I, pages opment in the territory since that time, aside from the 95 and 96 of the hearings: Bonneville and Grand Coulee projects. Mr. FITzPATRICK. After the whole thing is completed, will you This· table is significant, and is as follows: have a market then for all of the electric power that you can ~b? . Hydro Steam Mr. Ross. Yes; I think as fast as we can get it to market there wm be a demand for more than the installation. Date of installation Mr. FITZPATRICK. Without putting other independent lines out of Kilowatts Percent Kilowatts Percent business? Mr. Ross. Yes, sir. We are not counting on putting out other lines. What we do want is the increase in use, and there is not a Prior to 190L------6,000 g: g ------800------0~2 single plant being projected in the region there, so that every­ 1901 to 1905 ..•• ------24,980 body--companies, districts, everybody-looks toward the Bonneville 1906 to 1910______109,225 10. 2 15, 500 4. 2 as the source of their power. llH1 to 1915------179,963 16. 8 26, ()()() 7. 1 1916 to 1920 •• -·------86,200 8.1 32,500 ' 8.9 1921 to 1925------. 253,330 23. 8 85, ()()() 23. 0 Confirmation of this policy of the administrator was dis-· 1926 to 1930·------239,130 22. 4 169, ()()() 46. 0 closed by a news item appearing in the Portland Oregonian 1931 to 1934. __ ------· 137,700 12. 9 35, 000 9. 6. Year not given.------31,678 3.0 3, 700 1.0 on March 7, 1939, which I quote: ------~------l------l------1.'otaL _------1, 068, 206 100.0 367,500 100.0 WooDBURN, March 6.--City Recorder George Beach said Monday a Nondependable fn 1934, Federal Bonneville representative who conferred with him over the week Power Commission ______232,000 21.7 22,000 6.0 end advised that the 'City of WOodburn· should acquire fac111ties . Estimated nondependable, 1945 ______325,000 75,000 here of the Portland General Electric Co. if Bonnevme power were Total nondependable, 1945 ______400,000 sought, for the Bonnevme project would not put 1n power here 1n 1939 CONGRESSIONAL RECORD-HOUSE 2773

Surveys and studies recently made by the United Stat~s . ·lation" prepared by the Federal Power Commission reports, Geological Survey and Federal Power Commission show the page 116 of the hearings, as it shows for the 9 years-from generating capacity of utility plants in Oregon, Washington, 1920 to and including 1929-preceding the depression there and Idaho for the years 1920, 1929, 1934, and 1937, as follows: was an increase of over 13.5 percent a year on the average. The tabulation is ·as follows: Kilowatts Kilowatts Total, all Year of hydro of steam kinds Production of energy in the States of Washington and Oregon (in 1,000 kilowatt-hours) [Taken from the Federal Power Commission reports] 1920_ ------«2, 740 148,671 591,571 1920 ------·------1, 672, 268 1929______910,731 272,025 1, 18{, 216 1921------1,645,398 1934_ ------~------1, 111, 294 363,100 1, 428, 118 1937------;------1, 222, 039 389,580 1, 616,563 19231922------______:______2,1,789,429 040, 920

19251924------~------______: ______2,352,~662,181,955 From the study of these tables it is noted that in 1937 the total. capacity of the existing plants in· these three States, 19271926-----~------~------______;______.___ .:, ___ .______- ____ .:._.: 2,2,638,927 966, 593 . most of it trade . territory of Bonneville. and Grand Coulee, 1928 ______.__ ..:, ____ _: ______.:. ______. 3, 401, 767 is 1,61.6,563 kilowatts,. but that in 1934, according to the Fed­ ·1929 __ ..:, ______;,.______3, 713, 711 eral Power pommission, 21.7 percent .. was nondependable by This use for power covers a wide variety of demands. ThJ.s · reason of age and o}Jsolescence, and it ·is estimated that by territory is an agricultural country. That portion lying east 1~45 there Will be a totat of 4oo,ooo kilowatts nondependable, ·of the Cascade Mountains is semiarid. ~ It 'is of a character · or approximately 80 percent of the total capacity of the as to soil-content· formation and inherent characteristics as Bonneville plant. . . :to make it available for profitable agricultural use if water - Mr-. Ross'· testimony disclosed that the demand for electrical ·is furnished during certain portions. of the growing season. power in this- Northwest-te:r:ritory, as shown by his exper-ience The water is available in the great Columbia storage basin · covering hi& connections with the power industry, extending back of th~ · Bonneville· Dam. It-·15 a continuous ·uniform over some 20 yea:vs, .would .be-doubled at·least every 10 years. · supply of pure water. With cheap electrical pc)wer,· the-·water In :t'act,'his experience showed-that in·some cases it doubled in .and the broad -acres in . the -Columbia River .Basin nuiy be 5·% ·'flt~U".S·, a_nd t~at under existing conditions of the depres .. iproperly-brought together. In addition,- there· is need ()V~r sion ftle. increase. is 12.85 percent per year_.hearings, part I, 'all of -this area· for domestic and industrial--nirar service of ­ . page io5 •. · -- · -. Ml:~~Ress - stated: 'cheap electric· power. . ~e city of :portla~d _ is some 40 in~e~ ~ ·I ca14 tell yp:u ·this, that out there there were about 1,600,000 ..kllo;;. 'distant froni Bonneville. - -It has a population around 350;000. · watts,. fn the_Northwest; i_n ,those j;hre_e ~tates. - In· 5% -y:ears nor~ mally . that W(!Uld have doubled. _So that in 5¥2 years normally :It and -the contiguous territory is ·now SUJ?plied with nl:liller- : they "Weuld have picked ~P both Bonne~ille and Coulee, 1 ., oo~.oao_ -ous manufacturing plants haVing to do with -the fo,rest indus­ of flr:mi:kilowatts in Coulee and 500,000 in Bonneville: That is an ltJ::y arid utilization of forest products and other .. 41~1;1St~i~l - an.swer :to .tbe question of the nece_ssity of power 'for the -.market, 1 enterp~lSeS . . _There are _ m~~y · n_atuJ:aJ deJ?OSi~ 0~ Inbier_a~ !n : it seems' to. me~ - And if there is a 10-~rcent ·annual 1ncrease there, some' day it ~s going to ~ - Us. . . ·---- .-. 'Oregon, Washillgton, ~nd Idaho awaiting _development . and 'requiring only cheap power . . Other manufacturing plants : r :M:r: Ross further testified that. the total available p:roduo- -­ will find desirable locations in the vicinity of these ·develop- · tion_p.ossible under the present plans of Bonneville and Grand ments, where cheap·power may be obtained~ . In additi9n~ to . Coulee is approximately 1,500,.000 -kilowatts . per year, being 'these -requirements,- navigation -transportatiower. How fortunate -we are today, in formulating The goal to be achieved is the disposition of this power by our plans for national defense, that this great western coun­ the Government to the citizens of this area at a price com­ try flies the Stars and Stripes, · and our western boundary mensurate with the cost of the project, plus accruing interest, is the· Pacific Ocean. maintenance, and upkeep. The rates established by the The great Columbia River watershed is rich in natural re­ administrator will accomplish this result, and," as shown, sources, minerals, forest products, fertile agricultural-land, power may be supplied to the retail user from the distributing and vast quantities of water power. The Columbia River, agencies buying wholesale from the Government at a price one of the great arteries of commerce in the United States, that will result in great savings to the people. These rates has always dominated the region. In the early days it was recommended by the administrator, ranging from 2 Y2 cents the only means of commerce in this area. As time passed per kilowatt-hour for the :first 50 hours to three-fourths of a the railroads came, then the broad hard-surfaced roads, Cas­ cent for quantities in excess of 2,000 kilowatts per month, is cade Locks, and Cel1lo Canal, improving transportation an exceptionally low rate. The average residential rate in on the river, and at last the United Airways, charting Oregon and Washington is 2.6 cents with the consumption of its course through the gorge cut by the river across the 1,350 kilowatt-hours compared with the national average Cascades. The development of the Bonneville project for :figures for the same service 4.39 cents per kilowatt-hour, navigation and flood control and hydroelectric power is the with the consumption of 793 kilowatt hours. Furthermore, last great advance in utilizing this great river in the interest the private utilities may purchase this power at the wholesale of advancing civilization. The electric energy generated by rate from the Government, and distribute it through their the power project will afford the means to improve the river existing facilities at reasonable profits, and still maintain for navigation, furnish water for the irrigation of the great the retail rates :fixed by the Government. The Bonneville stretches of territory, both north and south of the river, east plant is now completed and standing. practically idle. The of the Cascade Mountains, and electrical power for domestic huge volume of energy-producing water is flowing over the and commercial use. dam. There are no facilities for marketing the power. The . The treacherous rapids, with their hidden, submerged transmission lines and the marketing equipment are an rocks at the Cascades above Bonneville and at Celilo, were absolute necessity if the Government is to capitalize on this barriers to the advance of the pioneers, and exacted the toll investment.· If the people of the district are to be given the of many lives. Now, with the advance of engineering skill opportunity to secure this power at a reasonable rate, these and science, these very obstacles in the great river, by the facilities should be provided at the earliest possible time. ingenuity of man, have been turned to his use. The invisible The funds provided in the bill under consideration will furnish giant of hydroelectric power, which, throughout the cen­ these facilities and will bring back into Government coffers twtes, has- been allowed to waste itself_in _the. rush._of _the · moneys -accruing-from -the investment-through ·t-he sale of- river to the. sea has. been .conquer.ed... and is. now harnessed 1 electrical-energy whieh~ is ·now -being ·wasted. · - - -- · - forever to do man's bidding. in _carrying his commerce;. pull- . · ~ If the ·appropriation requested is denied or is cut down or ing his loads, turning the wheels. of industry, tilling and .irri­ ·materially reduced, it· will mean the Bonneville power project · gating his :fields, lighting his homes, shops, and cities, and will be denied the right to function and the people of the ter­ removing the drudgery of life. ritory serviced wtll·be denied the right of securing this electri­ This huge project now having been completed, . we are_at cal energy now in production and ready for distribution. the threshold of the realization of these benefits from the improvement. There only remains -the furnishing of the · The CHAIRMAN. The Chair recognizes the gentleman transmission. lines and facilities to release this wealth of · from California for 4 minutes. power to the waiting public. Without these transmission . Mr. VOORHIS of California. Mr. Chairman, a compari­ facilities the power project cannot be used. It must lie son was made by one of the previous speakers between the. dormant and the electric energy be allowed to go to waste region served by Bonneville and the T.V. A region. I wish until these lines are constructed connecting the power plant to point out a couple of very important differences. The with the market. Cheap power at the generating plant avails Bonneville region is probably a thousand miles from the nothing. Bringing this energy to the ends of the transmis­ closest deposit of coal and the closest :fields of oil. The. sion lines in the consuming areas is necessary. . This appro­ northwest part of this country is dependent entirely upon priation will supply this need . . The funds advanced by the hydroelectric power for usable power. Second, it is also ~r_ue Federal Government, including all costs for the power proj-_ that ·people from every part of this Nation are pouring into 2776 CONGRESSIONAL RECORD-HOUSE MARCH 15 that section of the country-into the Northwest and into mY Thirteen Colonies and States was a good one. The founders own State of California-by the thousands. We seek to mt:tke in the Original Thirteen States made it possible for 35 provision so our States will be able to meet this great problem children to be born to this family of States and to be admitted which has come to us. as a part of this Union. TQe great Ordinance of 1787 and the I look forward into the future to a time when electric Constitution of the United States, formulated that year, con­ energy will be so cheap that every family in America can tained statesmanlike and liberal provisions for the birth of afford to have it in its home and every industry in America these new Commonwealths. can have power at half what it costs today. [Applause.] I Today we are asking you, the eastern community, to show am convinced that when that time comes the prosperity of the same liberality of spirit and the same statesmanship in this Nation will be greatly increased. Such a development economic matters that our forefathers showed in civil and is not necessarily in con:flict with the prosperity of the .coal constitutional matters in helping the development of the industry for the reason that you can generate electric energy West .. That is a new country out there. I am in that little­ at the mine mouth with coal quite as well as you can generate known part of it way off down yonder in the corner, the least it with water power. known part of it, perhaps, but I agree with the gentleman As far as the Bonneville proposition is concerned, I just from California that the development of these great resources want to show you what .might be a very good reason for being which God has given us in the Northwest will react to the in opposition to the construction of these transmission lines. benefit of the entire Nation. For that reason I am in favor Here is a great Government power project, a project con­ of the orderly development of hydroelectric power throughout ceived with the idea that falling water, after all, is a gift of the West, where we have no coal and very little if any oil. In God to all the American people and should be so used. If, my State it was once thought we were producing too much however, it is possible to prevent getting that power to the electric power but now we find we cannot produce enough. market, if it is possible to prevent its being transmitted to a Not only do we need hydroelectric power in the West, but place where it can be consumed, then the financial showing also as far as agricultural products are concerned I may say I of this project may be hurt at least temporarily. If that· find in my own State that the mining camps of Arizona have should happen, then we will have Members coming into this to import butter, eggs, :flour, and all tqe necessary foods from House and tell1ng us that the Bo~eville project is not pay'...ng outside our borders. We do not produce enough food. its way as it was supposed to do. Therefore, unless you are Therefore, there is no competition with the eastern tloln­ definitely against tl!e development of a project of this kind munity with regard to the production of power or.the prOduc­ for the benefit of the whole American people you have to tion of agricultural products. vote down the amendment offered by the gentleman from Mr. GIFFORD. Mr. Chairm~n. will the gentleman yield? Ohio, for ·it is necessary in the interest of good government Mr. MURDOCK of Arizona. I yield to the gentleman from and in the interest of good financial administration that these Massachusetts, if I have any more time. transmission lines be constructed in order to assure a market Mr. GIFFORD. i want to respond for the East that we for the abundance of power at Bonneville Dam. did help in the development of the West. We loaned you Mr. BATES of Massachusetts. Mr. Chairman, will the billions of ·dollars to build up your West. Now, you want gentleman yield? us to borrow money and give it to you. We usually parted Mr. VOORHIS of California. I yield to the gentleman willingly with the money when we had it, but now you are from Massachusetts. asking us to give you borrowed money. Are you not going a Mr. BATEs of Massachusetts. Does the gentleman see any little too far? reason why the Federal Government should construct trans­ Mr. MURDOCK of Arizona. This is reimbursable; it is not mission lines from Bonneville into the States of Washington a gift. I believe that just as the railroad development that and Oregon, when in the gentleman's own Sta~e his own occurred after the War between the States in the late sixties people built the lines in from Boulder Dam? and seventies helped develop the wealth of the entire country, Mr. VOORHIS of California. I have no objection to the so today, by building dams and producing hydroelectric power people of Washington and Oregon benefiting from a policy and developing irrigation projects, you are doing the same of the Government which may go more directly to a solution thing. It is. part of a Nation-wide constructive piece of of this problem than was the case in California. statesmanship. Mr. BATES of Massachusetts. Why do not the people of Mr. GIFFORD. Is that the gentleman's answer to my the Northwestern States show the interest the people in question? California showed? Mr. VOORHIS of California. Mr. Chairman, will the gen- Mr. VOORHIS of California. I believe we are benefiting tleman yield? tremendously by what was done at Boulder Dam, but there Mr. MURDOCK of Arizona. I should be pleased to yield. are some things about the matter which might have been Mr. GIFFORD. Oh, no; wait a minute. handled better had the present administration been in power at that time. I do not want to get into a controversy about Mr. VOORms of California. I would like to ask the gen­ that except to say that, as a Californian, I am eager to see tleman a question. something done which will be to the welfare and benefit of the· Mr. GIFFORD~ The gentleman is an authority on money. people of another section of the country, for I am convinced Mr. MURDOCK of Arizona. In regard to borrowing the that this Nation is one nation and that what benefits the money, I say that sometimes a businessman finds it necessary people of the Tennessee Valley, or the people of the North­ to borrow money to carry on his business when it reaches a west, or any other section of this country, also benefits the certain·stage rather than let the thing collapse. people in my own district and myself. [Applause.] Mr. GIFFO~D. We can drink ourselves sober, as I have [Here the gavel fell.] said before. If this is borrowed money, the question Js, Shall The CHAIRMAN. The Chair recognizes the gentleman we borrow these funds and continue this period of spending? from Arizona [Mr. MURDOCK] for 4 minutes. Mr. MURDOCK of Arizona. As a parent I have borrowed Mr. MURDOCK of Arizona. Mr. Chairman, I do not really money to educate my children in their formative years. need 4 minutes, because the gentleman from California [Mr. [Here the gavel fell.l VooRHis] has just said what has been going through my mind. Mr. RICH. Mr. Chairman, I just want to exhibit this map I should like to say "amen" to that speech by saying just this: showing the duplication of power lines, and I call your atten­ All through American history there has been a battle, appar­ tion to the fact that they now have power lines built over a ently a political or economic con:flict, between the East and · large portion of the territory. They also have $3,000,000 yet the West. Some in the older and more settled portions of our to expend, which, with the $6,000,000, woUld complete many country have feared the rising West. There was a time when of the power lines which would be duplications of existing the West was just beyond the Allegheny Mountains. I believe power lines that the people of Washington and Oregon have you will agree with me that the generous colonial policy to­ constructed with their private capital. Now the Government ward the great West of our forefathers in the Original wishes to destroy them. 1939 CONGRESSIONAL RECORD-HOUSE 2777

I also ~sh to can your attention to a st_atement ma~e by Mr. RlqH. Indeed,. it iS. Arthur Krock in the New York Times of March 7·: · [Here the gavel fell.] The President said that for about a year and a half the utility Mr. KLEBERG. Mr. Chairman, I ask un~nimous consent people had known and understood and accepted the fact that there · that the gentleman's time may be extended one-half minute was to be no further expansion of federally sponsored hydroelectric in order that I may ask a question. power developments. The President reemphasized his statement that the administration had no intention of further expanding its The CHAIRMAN. The time of debate has been limited program of federally subsidized electric-power projects. and the Chair cannot recognize the gentleman for that · If this could be understood to mean-which it was generally purpose. taken to mean-that no additional moneys are to be used for such . purposes, then it sho-q.Id cancel a current administration request Mr. WHITE of Idaho. Mr. Chairman-- for $14,000,000 to finance further construction of transmission lines Mr. KLEBERG. Mr. Chairman, will the gentleman yield? from the Bonneville Dam. Mr. WHITE of Idaho. I yield. Now, I wish to say to my good friend from the Northwest Mr. KLEBERG. I have asked the gentleman to yield to that I am not here to fight the Nort}lwest or the Southwest me for the purpose of asking .the proud grandfather over or the Southeast; but when you have appropriated more there [laughter and applause], the gentleman from Pennsyl­ money than will be necessary to sell all the power that you can vania [Mr. RieHl, whether or not the new addition to his develop with the two generators now installed at Bonneville, family is going to be a new dealer. Does the gentleman have and with the two generators on contract which will not be any advice about that? installed for 2 years, and it will not be necessary to take this Mr. RANKIN He is crying for light now. [Laughter.] total amount of money to complete this line, then I cannot .Mr. RICH. Mr. Chairman, the gentleman from Texas; one see for the life of me why · you want to . spend $14,000,000 of .the finest fellows in the House, "overwhelms me. [Laugh­ when $6,000,000 will do the work and take care of all the ter and applause.] power you can develop. Mr. WHITE of Idaho. Mr. Chairman, the question I · 'Mr. WHITE of Idaho. Mr. Cllliirman, will the gentleman wanted to ask my esteemed friend froni Pennsylvania was yield for just .one question? whether the construction ot a four-lane concrete highway Mr. RICH. I cannot yield right now. was duplication when it replaced a dirt road? We have a In this northwest territory you consume 1,800,000 kilowatts; comparable situation here with the map he has exhibited. Yoqobave that territory all covered now. Certainly you do We have a lot of little. power lines with small capacity that not l}eed this power, because that territory is already served, cannot carry the load, and now we intend to build and must and they furnish power for 2.48 cents per kilowatt-hour, build, .to carry. this power to market, a high-volt~e, perma­ nent line, a means of transportation, if you please to bring whicq is 50 ~rcent of the average cost of electricity over the country as a .whole. They are serving the people in that .this power generated by the Government to the ~rket, so locality. Ninety-four percent of all the residents of cities that we can make this project reimbursable and replace the and fil)burban areas are taken care of and 50 percent of the money in the Treasury that has been expended to build one farms. If this was going to hinder or hold up or hamstring of the greatest conservation projects ever set up in the· anybody, inasmuch as they are now building this dam and United States. · power project, I question very much whether I would get up . This water or this power has been running altogether free here and try to oppose it, but I do not think this is good, sound to the sea during all these years and would go on in this way business. My friend, the gentleman ·from Mississippi, said indefinitely. This constitutes a great waste because it re­ they are going to transmit this current for 500 to 1,000 miles. quires the use of oil or petroleum for power' in this market, the supply of which we are using up at a terrific rate--oil The gentlem~n knows there is no wizard in electricity that has yet discovered a means of transmitting current that far. and g~ being lavishly used today that may be at a great premium for aerial transportation in the future and for the It j~t canna~ be done, because nobody in the field of elec­ tricity has been . able to discover a .means of transporting nation~! defense. Mr. Chairman, the day may come when electric CJll'rent . over 300 miles in a satisfactory manner and our children will look upon the people of this generation as at a reasonable cost. the greatest wastrels in history by our lavish use of petroleum Mr. RANKIN. Mr. Chairman, will the gentleman yield? for which succeeding generations may have to depend for Mr. RICH. Yes; for a question. defense and their very existence. Mr. RANKIN. In the report of the Army engineers in 1930, I am sure when the full benefit of thiS conservation utility signed by Mr. Patrick J. Hurley, Secretary of War under Mr. is fully realize(j the succeeding generation will rise up to bless Hoover, it was stated by the Army engineers that they could a far-seeing administration that harnessed the mighty co­ transmit this power from Muscle Shoals 350 miles and sell it lumbia and gave them this great faculty, everlasting in its for about 4 mills a kilowatt-hour at a profit. benefits. · Mr. RICH. The situation in which we find ourselves here It is a great conservation project, and to make it reim­ is that we st~rted in this administration to establish a yard­ bursable, to pay this money that has been expended to con­ stick at T. V. A., and it seems to me when you are going to. struct the project back into the Treasury, it is necessary that spend seven or eight hundred million dollars for one yard­ we provide a means of transportation by building these large-· stick, yoU: ought to be mighty careful before you add inches to capacity power lines. I do not think the gentleman has had a yardstick in the Northwest, where you .are going to spend any experience in building power lines or knows much about almost $1,000,000,000 before you get through with the two the transmission of electriCity, but it is absolutely necessary, projects, Bonneville and Grand .Coulee. · It is going to cost if we are to make this project pay, to_secure the money from you an enormous amount of money. Let us be reasonable; the sale of the energy, that we build these large transmission let us be sensible. Let us take our time about doing these lines to bring the power to market, and we have in the lower things and let us not spend money foolishly. That is the Columbia Valley one of the finest undeveloped sections ·of thing I am interested in avoiding. the United States, and the development of that section will · Mr. BATES of Massachusetts. Mr. Chairman, will the benefit business all over the country. I hope the amendment gentleman yield? will be rejected. Mr. RICH~ I yield. Mr. RANKIN. Mr. Chairman, will the gentleman yield? Mr. BATES of Massachusetts. In view of the fact we have Mr. WIDTE of Idaho. Yes. already a well-established precedent by the State of Cali­ Mr. RANKIN. If we were to kill this appropriation, it fornia in the building of ~ transmission line running from would simply mean bottling this power up, and the Govern­ Boulder Dam into Los Angeles, and in view of the further ment would get no proceeds at all. As a matter of fact, that fact that the State of Oregon prides itself on being out of is exactly what this would mean. It would mean bottling debt while the Federal Government is going into debt at the this power up if we cut the appropriation down to $6,000,000, rate of $3,000,000,000 a year, is not that a more substantial and it would cost the Government money instead of saving reason why we should not embark upon this innovation?. money. 2778 CONGRESSIONAL RECORD-HOUSE MARCH 15 Mr. BATES of Massachusetts . . Mr. Chairman, will the serve for ages and ages to come, when the coal and gas and gentleman yield? oil shall have been consumed, as the willing servant of man­ Mr. RANKIN. The gentleman-from Idaho has the floor. kind, the white coal of the glistening mountain streams will Mr. WHITE of Idaho. I yield to the gentleman from continue to burn on and on toward the end of time. Massachusetts. For ages these mountain streams came rushing down only Mr. BATES of Massachusetts. Does .the gentleman see to be seen and heard in wonderment. Now they are being · any reason why the Federal Government should continue harnessed to bring happiness and contentment into the homes in this innovation of building transmission lines? Have we of millions. This in nowise distracts from their beauty. built them in the case of any other dam? · Take a beautiful young Kentucky filly dashing and prancing Mr. RANKIN. It is not an innovation. over the bluegrass of that famous State. Does it not add to Mr. BATES of Massachusetts. It was built in the T.V. A. the charm and beauty of that colt as she develops into a fine ~y. . mare to have her become accustomed to the bridle, the rein, Mr. RANKIN. The power business is a monopoly on a the saddle, or the harness? Does it not add to her glory that necessity of life. she is useful to her master? Mr. BATES of Massachusetts. From what other dam has So we are taming these teeming, sparkling streams to make the Government built transmission lines except the T.V. A.? them useful as well as beautiful. That· must have been the Mr. RANKIN. Oh, we will be building some in New Eng­ ultimate motive of an omnipotent Providence. land when we improve those water routes up there, in order The mighty Columbia River has for ages rolled on from to save the people of New England from tne enormous over­ its source to the sea--the placid Pacific, a stream so crystal charges they are now paying. clear and beautiful that it must be seen to be appreciated. Mr. BATES of Massachusetts. That is not. an, answer to With its tributaries in Washington State alone, together with my question. streams on the west side of the charming Cascades, it holds · Mr. WffiTE of Idaho. Mr. Chairman, it is my contention within its folds one-fifth of" the Pcitential water power of the that this is a move to hamstring the Government's program United States. I am proud to say that my little county of and is mostly a move on the part of the utilities to discredit Benton is surrounded on three sides-north, east, and south­ one of the greatest conservation projects ever undertaken by this mighty river. For decades development of this water by the Government. power energy has been contemplated. It was visionedl.,.nd The CHAIRMAN. The time of the gentleman from Idaho planned by the Republicans when they were in power. Defi­ has expired. • · nite and actual construction of dams was begun with the Mr. HILL. Mr. Chairman, millions of years ago a kind present administration. So it is. clearly all partisan and non­ Providence, in His infinite wisdom, created this wonderful political. Appropriations for continuation of' these dams earth. Then. He created man and said to him: "This is yours. Develop it. Take care of it. Be fruitful and multi­ have been made by succeeding Congresses as a matter of ply and make this serve the oncoming generations. as God's common sense and necessity. It is a national proposition, footstool." We are but in the dawn of this mighty develop­ not a sectional matter. ment . . We are intensely interested in every phase of it. We Bonneville has been completed. Power 1s being generated glory in being a part of it. and new generators for additional production of power are The forests on the bosom of old Mother Earth, majestic being installed. The Army engfueers have done an excellent and stately, were good to behold. But man has also fash­ job. Countless millions are demanding electric power at rea­ ioned them into dwellings for shelter and into ships that sonable rates. We of the West-yes, the people of the whole ply the seven seas. The soil has given sustenance to United States are dam-minded. They realize that elec­ countless multitudes since first the flight of years began. tricity is as essential to modern life and decency and comfort Beneath the surface is the untold wealth of minerals-the as are sunshine and water and air-and all are the inalien­ brass, the copper, the silver, the gold of ancient times, and able· rights of all alike. What is needed are transmission the coal and 'iron and gas and oil of modem times. But lines. The power is being generated and more to come. the wealth from the bowels of old Mother Earth is being The market, according to Administrator Ross, · is ready for depleted, and in the not too distant future mankind will the present output and will be ready for the increased out­ need some other source for power, for light, for means to put in 2 years to come. The only way the dam can be paid provide the comforts and decencies-yes, the necessities of for is by selling the electric power. This dam belongs to the life. When the great Architect of the Universe threw up the Federal Government. Its output should belong to the Fed­ mountains, His handiwork was beautiful to see: The moun­ eral Government, to distribute to its people-the real sov­ tains, rock-ribbed and ancient as the sun. Time and the ereigns in these United States. I have but two objections to private companies having anything to do with this distribu­ ~lements have fashioned them down to pretty and enchant­ ing hills here in the East. In the West the Rockies, the tion. They restrict their patronage to the select few-the Cascades, and the Sierras still stand in their prime and Government, as in the post-office agency, gives it to all alike. pristine magnificence. They are the delight, of hundreds of Secondly, the rates are too high and too variable. In one thousands of tourists every year-the playground of Amer­ city in the Fourth Congressional District of Washington the ica. The snowcapped peaks, the laughing waterfalls, the people pay 15 cents per kilowatt because there is no comPeti­ crystal streams are a continuous delight to all who are tion; in Tacoma, less than 200 miles distant, under munici­ permitted to visit them. This is as it should be. But man pal ownership, they pay less than 2 cents per kilowatt. cannot live on invigorating climate and scenic beauty alone. I cannot conceive of Members here today voting to ·discon­ Those massive ranges of the West have a potential power tinue this great project now in face of the necessity of appro­ for economic welfare and good not yet realized by the priations to construct transmission lines to dispose of this American people. · · electricity so as to pay for the construction of the dam. In colonial days and at the beginning of this Republic, The power companies are doing their utmost to defeat this the one hundred and fiftieth anniversary of which was so appropriation. They did their utmost to defeat necessary leg­ auspiciously celebrated on March 4 last, lived an American islation in our State legislature which would make it possible who was a scientist and philosopher as well as a statesman. for public-utility districts to utilize the power developed at With his key and kite he snatched from the air one of its Bonneville. But before the new units are ready at Bonneville mighty elements and made it possible to harness this subtle the people of the State of Washington will have an oppor­ force so as to compel service to man. Through the genius tunity to speak at the polls in 1940. Judging by past per­ of an Edison and a Steinmetz, it has entered into the plan formances, the people will speak in no uncertain terms. They of modern everyday life. The electric car, the radio, the will ·elect a Governor and a legislature in definite sympathy eleetric light, the electric motor. Far more wonderful than With the people of the State on the power question and the Aladdin~ magic lamp. So these everlasting hills, these ma­ more reason for this appropriation to build transmission lines jestic mountains, will not only be a thing of beauty but w1ll to reach the remotest parts of the Northwest. 1939 CONGRESSIONAL RECORD-HOUSE 2779 The onward march of progress is as resistless as the tides The newspapers of this Nation this morning carried· an and depends not on the influence of power companies or the Associated Press dispatch announcing the sudden and unex­ whims of vacillating legislators. The onward march of time pected death of J. D. Ross, Administrator of the Bonneville is as resistless as the law of gravity which· .slowly but surely project, who was one of the best friends that the movement brings these waters from their icy mountain recesses down for a wide and cheap use of the electricity by the common over the rocky canyon beds to generate tne power that has people of America ever had. · With us in the Northwest the become the great giant, the -subtle but willing servant, the name of J. D. Ross symbolized justice, fairness, intelligence, magnificent masterpiece of the human mind. patience, and perseverance in the long struggle of 30 years to The CHAIRMAN. The gentleman from Illinois [Mr. preserve, develop, and utilize for all the people, not alone of MAsoN] was one of the gentlemen on his feet when the time that region but for the Nation as a whole, the untold. energy for debate was fixed. If the gentleman from Illinois is pres­ ·available in our rivers in their onward rush from our snow­ ~nt, the Chair will recognize him. Also the gentleman from clad mountain ranges down to the sea. Michigan [Mr. DINGELL] was on his feet asking recognition, To every Member of this Congress in both the House and and if he is in-the Chamber, the Chair will recognize him. Senate from the Northwest States of Washington, Oregon, Mr. RICH . .. Mr. Chairman, they are both in committee. and Idaho, the passing of a great and good man, such as our The CHAIRMAN. Then the Chair will recognize the friend, that we familiarly called "J.D.," is an irreparable loss. gentleman from Washington [Mr. LEAVY] for 5 minutes. I feel that it is no exaggeration to say that he gave his life . Mr. LEAVY. Mr. Chairman, I intend only to state a few to his country in order that its citizens, both rich and poor, of the salient facts in reference to this Bonneville item and might more fully enjoy those magical blessings that conie with ask that you then draw your own conclusions from them. a liberal use of cheap electric energy. I expect to base my statement on the record of the hearings The great Seattle city-owned municipal system will stand before-our subcommittee, of which both the gentleman from through all time as a monument to the work of this noble Pennsylvania [Mr. RieHl and the gentleman from Ohio [Mr. character, and wisely and well has he laid the ground work for WHITE] are members, and in which hearing they participated. Bonneville and Grand Coulee, assuring the never-ending flow On page 93 of the hearings there is a break-down of every of unseen power into the homes of those who now live in that proposed line that is being built and for which -this appro­ region and those who are to come hereafter. For years after prJel.q on is needed to carry on the work. If the gentlemen will those of us here, Members of this body today, have gone to our reaq further in those hearings, they will find that that work final reward, the name of J. D. -Ross will be synonymous with is already in progress throughout the States of Washington a bountiful supply of cheap electricity, not alone throughout and Oregon. It is true they had something over $14,000,000 the great Northwest but throughout this great Nation. He for this fiscal year, and that it is going to take $35,000,000 to died as he would have wished, fighting for an ideal; and I hope build these distribution lines that reach all over Washington, here today we will not vote for an amendment that would Ore&_on, a great part of Idaho, and into Montana. Again, if cripple and virtually strike down the structure that he has you will examine the record, you will find that there is not a almost completed. single instance of duplicatioQ. I made that statement the Mr. O'CONNOR. Mr. Chairman, will the gentleman yie!d? other day, and I repeat it. There is not a private utility line Mr. LEAVY. I yield to the gentleman from Montana. - in that region that has the capacity to carry the load Mr. O'CONNOR.- Is it not a fact that as we develop these it would have to carry to serve either Bonneville or Coulee; reclamation projects and put people upon the farms we and if you read further in the record you will find that, had create potential users of electricity; and are not the farmers the Government been wise enough a year earlier to have just as much entitled to the use of that electricity as the adopted a policy of looking to the distribution of power when people living in the cities? it came in, they would now be collecting a million dollars a Mr. LEAVY. Exactly. The farmers in that region are year instead ·of just one-fourth of that for the sale of power. largely without electricity because of the prohibitive costs. In other words, we are generating at this moinent 86,000 kilo­ Only half of them can afford electricity. Every time the watts of electricity at Bonneville, and the record shows appli­ Government permits a farmer to go on an irrigated tract cations have been made for 400,000 kilowatts, and the only and there establish a home that farmer in turn supports two possible way to reach anybody who wants the power is over families in the cities and towns, and if you will permit the a little 12,000-volt line. The rest of it is going to waste. Ross yardstick of rates to prevail the use of electric energy The act provides that this money, and every dollar spent will far more than double. in the building of the dams, less navigation and flood control, Mr. WHITE of Ohio. Mr. Chairman, will the gentleman shall be repaid to the Federal Treasury with 3% percent yield? interest. You cannot have it repaid if you deny us the agen­ Mr. LEAVY. I yield. cies to reach the market. Mr. WHITE of Ohio. Is it not a fact that last year you Mr. SIROVICH. Mr. Chairman, will the gentleman yield? had money for building transmissjon lines to a total of Mr. LEAVY. Yes. $17,000,000 in the two projects? Mr. SIROVICH. In other words, if this project were de­ Mr. LEAVY. About $14,500,000. I have covered that, I prived of the $7,000,000 it ought to receive, it would prevent may say to the gentleman. the transmission of electricity already generated, but which Mr. WHITE of Ohio. And would not the $6,000,000 permit needs transmission lines to bring it to all the people. you to build a great many more extension lines? Mr. LEAVY. That is exactly the situation. It is no longer Mr. LEAVY . .The work in that territory is now in progress, a question of the wisdom of Bonneville. Let me correct my employing almost 1,000 people. The engineering has already colleagues from Pennsylvania and Ohio. The total combined been done. Most of the right-of-way has been contracted cost--and you can search the eyidence from the very begin­ for; substation plans drawn; millions of dollars worth of steel ning of both those great projects and you may use the towers and other necessary material contracted for; and to orator's license to exaggerate-still you will find the total reduce this item as proposed would mean a tremendous loss combined cost· of Bonneville and Grand Coulee is not even to the Government. It is now a matter of completing this work. half the sum stated; and we will not see completion for a The surveys have been made and the work is under construc­ quarter of a century hence, and that involves 1,200,000 acres · tion. Simply stated, it is a question of.whether you want to of land, making homes in that great region for half a million take 3 years to do that which you should do in 1, and deny people who are now looking for jobs. the people there the right to use the power at the low rates Mr. Chairman, I have repeatedly in my remarks today and fixed and afford the Government the opport'J,Ulity to amortize those made a few days ago made reference to the hearings the investment it has made out there. that were held on January 26 of this year by our committee, Mr. WHITE of Ohio. Did they not get three times what wherein the Honorable J.D. Ross, Administrator of the Bon­ they asked for last year? neville project, appeared before us and justified in a most able Mr. LEAVY. No; they did not. Last 'year's hearing will and convincing manner the· appropriations that he sought. disclose that Mr. Ross advised the committee that it would 2780. CONGRESSIONAL. RECORD-HOUSE MARCH 15 be desirable to have large appropriations in order to hasten I presUme ·probably the Chair woUld prefer to make sep­ line construction, and we were warned by him that limited arate rulings on the different points? funds would mean a loss. He was much wiser than either The CHAIRMAN. The Chair would prefer to have the the Budget Bureau or this committee on that point. It was gentleman from Ohio state all the points of order now. after the Interior supply bill had ·passed that we passed the Mr. WHITE of Ohio. Very well, Mr. Chairman. On page P. W. A. appropriation and Secretary Ickes, who understood 14 I call attention .to line 7, the language there reading:. this situation better than we did and who had vision enough Not to exceed $25,000 for employing persons or organizations, to see the need of haste in getting these powerful lines built, by contract or otherwise, for special reporting, engineering, tech­ ordered that the additional ten or eleven millions be allowed, nical, legal, and other services determined necessary by the Ad­ ministrator, without regard to section 3709 of the Revised Statutes. and the world's greatest distribution system of electrical energy has taken shape. I urge you to give this undertaking· I contend that that is an enlargement of power which money enough to be made useful and stand as an enduring makes an exemption from existing statute, section 3709 of monument through the years to the memory of the man who the Revised Statutes. largely gave his life to build it for the purpose of blessing The language in line 12, on page 14, reads as follows: his fellow. men. [Applause.] Without regard to the civil-service laws and the Classification [Here the gavel fell.] Act of 1923. The CHAIRMAN. The question is on the amendment ~ submit that that is an exemption from the civil-service offered by the gentleman from Ohio [Mr. WHITE]. Jaw, which is specifically contained in the original authoriza­ The question was taken; and on a division (demanded by tion of this Authority. Mr. WmTE of Ohio) there were ayes 58 and noes 104. · Then the language beginning in line 13, on page 14, the So the amendment was rejected. entire clause, which reads: The Clerk read as follows: Provided, That of the $4,500,000 hereby made available for ad­ UNITED STATES HOUSING AUTHORITY ministrative expenses of the Authority, not to exceed $1,500,000 shall be available for such expenses incurred at the site, and 1n: Salaries and expenses: Not to exceed $4,500,000 of the funds of the. connection with the construction, of the United States Housing United States Housing Authority, established by the United States Authority non-Federal projects, and shall be reimbursed, in the Housing Act of 1937 (50 Stat. 888), as amended by the United States discretion of the Administrator, by the public housing agencies Housing Act amendments of 1938 (52 Stat. 820), shall be available constructing such projects, and such reimbursements sh be during the fiscal year 1940 for administrative expenses of the Au­ available for administrative expenses of the Authority. . thority 1n carrying out the provisions of said acts, including personal 3 services and rent in the District of Columbia and elsewhere; travel­ That is a delegation of authority. It enlarges the scope ing expenses; printing and binding; procurement of supplies, equip .. ment, and services; reproducing, photographing, and labor-saving of the existing authority under the original law, and there­ devices and omce appliances, including their repair and exchange; fore the entire paragraph should be stricken out on these payment, when specifically authorized by the Administrator, of points of order. This is legislation on an appropriation bUL actual transportation expenses and not to exceed $10 per diem in The CHAIRMAN. Does the gentleman from Oklaqpma lieu of subsistence and other expenses to persons serving, while away from their homes, without other compensation from the [Mr. JoHNSON] desire to be heard? United States, in an advisory capacity to the Authority; payment ' Mr. JOHNSON of Oklahoma. Mr. Chairman, we concede of the necessary traveling and other expenses of omcers and em­ the points of order. · ployees of any agency of the Federal, State, or local governments whose services are utilized in the work of the Authority; not to The CHAIRMAN. The points of order are sustained. exceed $5,000 for the purchase and exchange of lawbooks and other · Mr. JOHNSON of Oklahoma. Mr. Chairman, I offer an books of reference, periodicals, newspapers, and press clippings; not amendment. Was the point of order made against the entire to exceed $10,000 for purchase, including exchange, hire, mainte­ nance, repair, and operation of motor-propelled passenger-carrying paragraph? vehicles, to be used only for omcial purposes; not to exceed $2,500 The CHAIRMAN. The points of order were made against for expenses of attendance, when specifically authorized by the the entire paragraph. Administrator, at meetings or conventions concerned with the work Mr. DffiKSEN. Mr. Chairman, will the gentleman yield? of the Authority; not to exceed $15,000 for the preparation, mount­ ing, shipping, and installation of exhibits; not to exceed $25,000 for May I call attention to another point of order that you may employing persons or organizations, by contract or otherwise, for want to correct if you are going to amend the paragraph? special reporting, engineering, technical, legal, and other services The CHAIRMAN. The gentleman will state the point of determined necessary by the Administrator without regard to sec­ tion 3709 of the Revised Statutes (41 U.S. C. 5) and without regard order. to the civil-service laws and the Classification Act of 1923 as Mr. DffiKSEN. It begins on page 14, line 22. amended: Provided, That of the $4,500,000 hereby made available for The language reads: administrative expenses of the Authority, not to exceed $1,500,000 shall be available for such expenses incurred at the site and in That all necessary expenses 1n connection with the management connection with the construction of the United States Housing and operation of projects transferred to the Authority by Execu­ Authority non-Federal projects and shall be reimbursed in the tive Order No. 7732 • • . • may be considered as nonadminis· discretion of the Administrator by the public housing agencies con­ trative expenses for the purposes hereof,. structing such projects and such reimbursements shall be available' for administrative expenses of the Authority: Provided further, I am of the opinion that there is no statutory authorization That all necessary expenses in connection with the management and for that kind of language. operation of projects transferred to the Authority by Executive The CHAIRMAN. Does the gentleman make that point of Order No. 7732 of October 27, 1937, as modified by Executive Order order? No. 7839 of March 12, 1938, may be considered as nonadministrative expenses for the purposes hereof, and be paid from the rents re­ Mr. DIRKSEN. I do, Mr. Chairman. ceived from each transferred project: Provided further, That no part The CHAIRMAN. The Chair is of the opinion that that of the funds made available in this paragraph for administrative language also is bad, and sustains the point of order. expenses of the Authority shall be used to increase the salary of any position which on the date of the approval of this act is provided Mr. JOHNSON of Oklahoma. Mr. Chairman, I offer an for at the rate of $4,000 or more per annum, except in consequence amendment. of a reallocation of position under the Classification Act of 1923, as The Clerk read as follows: amended. Amendment offered by Mr. JoHNSON of Oklahoma: Page 13, line Mr. WHITE of Ohio. Mr. Chairman, a point of order. 1, in Ueu of the matter stricken out insert the following: The CHAmMAN. The gentleman will state it. "UNITED STATES HOUSING AUTHORITY Mr. WHITE of Ohio. In fact, there are four points of "Salaries and expenses: Not to exceed $4,500,000 of the funds of ·the United States Housing Authority, established by the United order which I will include all in one. States Housing Act of 1937 (50 Stat. 888), as amended by the On page 13, line 15, I call attention to the language which United States Housing Act Amendments of 1938 (52 Stat. 820). reads: shall be available during the fiscal year 1940 for admintstrat.tve expenses of the Authority in carrying out the provisions of Daid Actual transportation expenses and not to exceed ·$10 per diem acts, including personal services and rent in the District of Colum­ 1n lieu of subsistence and other expenses to persons serving- bia and elsewhere; traveling expenses; printing and binding; pro­ curement of supplies, equipment, and services; reproducing, photo­ And so forth. I call attention to the fact that that is an graphing, and labor-saving devices and offlce appliances. including enlargement of the statutory limitation of $5 per day which their repair and exchange, payment of the necessary traveling and now exists. other expenses of omcers and employees of any agency of the Federal. 1939 CONGRESSIONAL RECORD-HOUSE 2781 State, or local governments whose services are Ut111zed in the work · The CHAIRMAN. The Chair will hear the gentleman from of the Authority; not to exceed $5,000 for the purchase and exchange of lawbooks and other books of reference, periQdicals, newspapers, Ohio briefly on the point of order. and press clippings; not to exceed $10,000 for purchase, including Mr. WHITE of Ohio. Mr. Chairman, the amendment I exchange, hire, maintenance, repair, and operation of .motor-pro­ have offered does not provide legislation, because it is simply pelled passenger-carrying vehicles, to be used' only for omcial pur­ poses; not to exceed $2,500 for expenses of attendance, when specifi­ a limitation on the use of the money instead of being an cally authorized by the Administrator, at meetings or conventions enlargement upon the use of the money set forth in this concerned with the work of the Authority; not to exceed $15,000 for paragraph. I contend, therefore, it is not subject to a point the preparation, m.ounting, shipping, and installation of exhibits: of order. · Provided, That no part of the funds made available in this paragraph for administrative expenses of the Authority shall be used to increase Mr. FITZPATRICK. Mr. Chairman., it is not a limitation the salary of any position which on the date of the approval of this on the total amount to be spent but on what they may spend act is provided for at the rate of $4,000 or more per annum, except in for a particular part of the project. Th&rt has already been consequence of a reallocation of position under the Classification Act of 1923, as amended." authorized by law at $4,000 per family unit. The CHAIRMAN. The Chair is ready to rule. Mr. ROBERTSON. Mr. Chairman, a parliamentary inquiry. The gentleman from Ohio [Mr. WHITE] offers an amend­ The CHAIRMAN. The gentleman will state it. ment in the following language: Mr. FITZPATRICK. Mr. Chairman, before the gentleman Provided, That in the use of such funds the total and :final states his parliamentary inquiry, will he yield for a brief cost, including all charges assumed by the Federal Government, question? shall not exceed $3,500 for each family so housed. Mr. ROBERTSON. Yes. The. gentleman from New York [Mr. FITzpATRICK] makes Mr. FITZPATRICK. Is the gentleman now referring to the point of order that this is legislation on an appropriation the $10 expense item? bill. Mr. ROBERTSON. · No. The Chair has carefully examined the amendment, and to The CHAIRMAN. The gentleman from Virginia will state the. Chair the amendment is no more than a restriction on his parliamentary inquiry. the use of money, not new legislation. Mr. ROBERTSON. Mr. Chairman, I have prepared an The point of order, therefore, is overruled. amendment, on page 15, line 15, to add a new sentence pro­ Mr. WHITE of Ohio. Mr. Chairman, I do not believe it viding that the expenditures of the Housing Commission shall will be necessary to take 5 minutes to explain the amend­ be audited by the General Accounting Office. My parliamen­ ment. . It is simply based on a fundamental rule of common tary inquiry is whether it should be offered as an amendment sense, in my opinion. The average American citizen from to the pending amendment or as a separate amendment after one end of this country to the other lives in a house of an action on the pending amendment. average value of $3,000 to $3,500. Now, why should the The CHAIRMAN. The gentleman from Virginia may offer Government compel that average citizen to build a house his amendment as an amendment to the amendment offered for a public charge that is better than the house in which he by· the gentleman from Oklahoma, if he desires. lives himself?. John Q. Public has to buy his own home, and Mr. ROBERTSON. Mr. Chairman, I offer an amendment. yet the slum-clearance law says he must. also provide the The Clerk read as follows: money to build these homes for slum dwellers. Why should Amendment offered by Mr. RoBERTSON to the amendment offered by Mr. JoHNSON of Oklahoma: At the end of the amendment offered he be required to provide them with a better home than by Mr. JoHNSON of Oklahoma insert "Provided further, That all his own? expenditures by the United States Housing Authority out of the Mr. Chairma_n, I think I will rest my case right there. appropriations made by this act shall be subject to audit in the General Accounting omce in the same manner and to the same Mr. CRAWFORD. Will the gentleman yield? extent as expenditures of- the Department of the· Interior." Mr. WHITE of Ohio. I yield to the gentleman from Mich­ Mr. ROBERTSON. Mr. Chairman, I understand this igan, amendment is agreeable to the members of the committee Mr. CRAWFORDf In view of the fact the gentleman from handling this bill. I cannot believe any other Member of Ohio [Mr. WmTEl has not used the full 5 minutes, I should · Congress would object to having the tremendous expenditures like to ask some questions at this point. The Government of this public agency audited just as other expenditures under figures which have recently been published by· the Depart­ this appropriation bill are by law required to be audited. ment of Commerce indicate that some 95,804 individual en­ The CHAIRMAN. The question is on the amendment to terprises in this country employ 2,791,791 workers, to whom the amendment. they paid wages amounting t.o $3,114,059,000 per annum, or The amendment to the amendment was agreed to. an annual wage of only $1,116. I am now referring to factory The CHAIRMAN. The question recurs on the amendment workers who are not on relief but who hold jobs and draw -offered by the gentleman froni Oklahoma, as amended. · wages from pay rolls, and not in the salaried class. The amendment, as amended, was agreed to. I am also informed by Government departments that the The Clerk read as follows: average cash annual income for 1938 for farm families of Annual contributions: For the payment of annual contributions four pefsons amounted to only $959.20 per annum for the to public housing agencies in accordance with section 10 of the . four. United States Housing Act of 1937 (50 Stat. 888), as amended by Can the gentleman inform us whether or not those people the United States Housing Act amendments of 1938 (52 Stat. 820), $5,000,000. to whom I have referred and who draw this low annual wage will have to contribute to this national housing program with Mr. WHITE of Ohio. Mr. Chairman, I offer an amendment. which this section of the bill deals? The Clerk read as follows: Mr. WHITE of Ohio. The answer is yes; they will have to Amendment offered by Mr. WHITE of Ohio: On page 15, line 15, contribute. The burden of cost falls on each and every tax­ after the amount "$5,000,000", insert a colon and the following proviso: "Provided, That in the use of such funds the total and paying citizen. final cost, including all charges assumed by the Federal Government, Mr. CRAWFORD. In other words, these people who are shall not exceed $3,500 for each family so housed.'' thus working and paying a direct or indirect tax Will have Mr. FITZPATRICK. Mr. Chairman, ·I make the point of to pay for this housing program, insofar as Government order against the amendment. . contributions are made? The CHAIRMAN. The gentleman will state it. Mr. WHITE of Ohio. That is correct. Mr. FITZPATRICK. Mr. Chairman, I make the point of Mr. CRAWFORD. What does. the gentleman find has been order that this amendment would constitute legislation on an the cost per room for these dwelling units which have thUs appropriation bill. It amends the original act and has far been constructed under the National Housing Act? nothing to do with lessening the amount of money spent. Mr. WHITE of Ohio. The gentleman from Michigan [Mr. The CHAIRMAN. Does the gentleman from Ohio desire . CRAWFORD l is a member of· the Banking and Currency Com­ · to be heard on the point of order? mittee of the House, which has considered that legislation Mr. WHITE of Ohio. Yes, Mr. Chairma~ and probably could give figures that are later than mine. LXXXIV--176 2782 PONGRESSIONAL RECORD-HOUSE MARCH 15 Mr. CRAWFORD. I may say to the gentleman that this · Mr. FITZPATRICK. In just a niinute. being an appropriation bill, and in view of the fact we have Yet the gentleman criticizes the State .of New York, which not had any amendment to the act offered during the present contributes over 25 percent of the taxes paid to the Federal session of the Congress, his appropriation committee figures Government. . The State of New York asks very little from would be later than the ones I have. the taxpayers of this country, but I believe that State should Mr. WHITE of Ohio. I cited here last Friday some figures receive the same consideration as the other States receive about which there was some · argument. The fundamentals throughout the country. are not changed by variance in the amounts. That should I should like to ask the gentleman from Ohio and other not alter the merits of my amendment. Senator TYDINGS Members how they voted on the Treasury-Post Office appro­ stated that these slum-dwelling facilities were costing $5,500 priation bill when it was before the House about 2 weeks ago? per family, which sum included the original construction cost I could not get the subsidy given to second-, third-, and only. He stated further that the' annual contributions fourth-class mail for 1939, but in 1938 it cost the taxpayers amounted to $12,000 more per family dwelling unit, which of this country for second-class mail $89,608,278.20; for third­ makes a total of $17,000. class mail, $23,352,987.75; and for fourth-class mail, $16,969,- Mr. HAWKS. Will the gentleman yield? 837.46, the total of all being $129,931,103.41, and there was no Mr. WHITE of Ohio. I yield to the gentleman from objection to that subsidy. The Government has contributed Wisconsin. annually for the last 5 years an average of $274,425;ooo for Mr. HAWKS. May I ask the gentleman from Michigan roads, $479,100,000 for agriculture, and $76,373,000 for avia­ [Mr. CRAWFORD] if that farm income was a cash income or a tion, and then the gentleman criticizes the city of New York total income, because there is a considerable difference·? and other localities throughout the country because they are Mr. CRAWFORD. That is the cash annual income for a trying to clear out their slums. · family of four. I want to say to the Committee that I and the oth~r Demo­ Mr. WHITE of Ohio. Let me make ·the further, point, that cratic Members from the State of New York have voted for whether you agree With those figures or not, and it seems most every appropriation requested by the agricultural States. to me you will, I hope you will agree with the fundamental I do not feel I was elected to represent the city of New York idea presented by this amendment, namely, that people who alone, but that I was elected to represent the entire 48 States. live in $3,500 homes should not ·be required to buy more ex­ How have I voted? I have voted for appropriations for Mon­ pensive places for slum-dwelling families. Maybe I should tana, Wyoming, Idaho, Washington, Oregon, California, New add that while this program is designed to take care of Mexico, Alabama, and Tennessee, and most every other State slum dwellers, it misses that target in the final analysis, where I thought they needed public improvements, and because the cost is so great' and the rent is so high, despite will continue as a Member of this House to do so. [Ap­ Government subsidy, that slum families cannot afford to plause.] It is unbelievable that Members should stand up live in them. here and advocate destroying a subsidy of only $18,760,000 a [Here the gavel fell.] year to bring relief to the people in the slums, not of my city Mr. FITZPATRICK. Mr. Chairman, I rise in opposition alone but of 75 different communities in the United States. to the amendment offered by the gentleman from Ohio [Mr. [Here the gavel fell.J WHITE]. Mr. FITZPATRICK. Mr. Chairman, I ask unanimous con­ Mr. Chairman, the Housing Act itself places a limit of sent to proceed for 3 additional minutes. $4,000 per dwelling unit. The gentleman from Ohio [Mr. The CHAIRMAN. Is there objection to the request of the WHITE] wants to reduce this to $3,500. Last Friday he made gentleman from· New Y:ork? a speech here in which he claimed' that the average family There was no objection. unit under the U. S. H. A. program costs $5,520 plus $12,910 Mr. LEAVY. Mr. Chairman, will the gentleman yield? for the annual contribution, which makes a total of $18,430 Mr. 'FITZPATRICK, I yield to the gentleman from Wash- per family dwelling unit. The gentleman well knows what ington. took place at the hearings, insofar as that question was Mr. LEAVY. May I ask the gentleman this: If this limi­ concerned. In some parts of the country the cost will be tation cutting the amoun:t per unit from $4,000 to $3,000 'pre­ more than $3,500. However, the Housing Authority has kept vails, wouid that not mean by reason of the high cost of this cost down. The highest has been about $3,800, which real estate in the p(jpulous eastern ·cities that the development is in Buffalo. The average is approximately $3,087. The of the projects in cities like Chicago, Detroit, Cleveland, average for private buildings is about $3,685. Baltimore, New York, and Boston would be almost stopped? Mr. Chairman, if this amendment is agreed to, certain Mr. FITZPATRICK. The gentleman from Washington sections of the country will be prevented from getting the [Mr. LEAVY] is correct. benefit of the Housing Act. Let me say to the gentleman from Ohio [Mr. WHITE] that The gentleman from Ohio [Mr. WlJITE] also made refer­ last year there was $37,000,000 earmarked for the State of ence to the taxpayers in his State paying for slum clear­ Ohio, and $16,000,000 for the State of New York outstanding. ance in New York and Chicago. When the housing bill was Mr. WHITE of Ohio. Mr. Chairman, will the gentleman passed the sum of $800,000,000 was authorized for slum clear­ yield? ance plus $28,000,000 a year as a subsidy from the Govern­ Mr. FITZPATRICK. I yield to the gentleman from Ohio. ment. The $800,000,000 is to be paid in 60 years with in­ terest at 3 percent. The United States Housing Authority Mr. WHITE of Ohio. By citing what Ohio has got from borrowed this money at the_rate of 1% percent. This spread this project the gentleman l.s merely proving not that I op­ between 1% percent, the present cost of money to United pose it because it has to do with New York but that I am States Housing Authority, and 3 percent, being the interest willing to oppose it even when it comes to Ohio. · rate paid to the Authority for money it lends, is equivalent Mr. FITZPATRICK. The gentleman did not say so last to $9,240,000, which, deducted from the $28,000,000, leaves a week. The gentleman mentioned New York City. net annual cost to the Federal Government of $18,760,000 Mr. WHITE of Ohio. I said "Ohio" just now. to bring light, air, and happiness to the children living in Mr. FITZPATRICK. The gentleman said he did not want the slums not only in the State of New York but throughout the taxpayers of Ohio paying for slum clearance in New York the country. In the gentleman's own State of Ohio an allot­ City. That is what the gentleman said. ment of $72,038,000 has been asked for slum clearance, and Mr. WHITE of Ohio. I said I did not want them to pay in the total amount earmarked for that State is $64,584,000. Podunk or in Norwalk. Twenty-two States have been allocated contributions. Read Mr. FITZPATRICK. I am willing to pay for slum clear­ the table on page 130 of the hearings and see what your ance in Ohio or in any State ·in the Union that needs it. I State is asking. have tried to-help the farmers and business in every part of Mr. WHITE of Ohio. Mr. Chairman, will the gentleman this country, and will continue to do so while I am a Member yield? of this House. [Applause.] 1939 CONGRESSIONAL RECORD-HOUSE 2783 Mr. WHITE of Ohio·. The gentleman is misquoting my while they were improving it? It was necessary for them to statement. move out, and the people that they bring in are investigated, Mr. FITZPATRICK. We in New York pay 25 percent or and they are people who receive a salary of from $450 to over of the entire amount of taxes paid, in the United States, $1,100. and we . ask for less than any other State in the Union. Mr. BENDER. I do not know what the experience has been Therefore, I appeal to the Members to vote down this amend­ in any other part of the country. ment and bring sunshine, light, and happiness to the children Mr. FITZPATRICK. Investigate and find out the truth. of the slums throughout our country. [Applause.] Mr. BENDER. I am citing the circumstances in my home [Here the gavel fell.] city, and there is not a person who lived in this so-called Mr. BENDER. Mr. Chairman, I move to strike out the slum area who is living there today, because he cannot rent a last two words. place for less than $25 and his income Will not warrant his Mr. Chairman, I come from a city where we have two hous­ paying that kind of rental. ing projects now. One project, know·n as the Central Cedar Mr. MARCANTONIO. Mr. Chairman, will the gentleman · project, is built on a site where people lived·who paid $10 to yield? $12 a month rent. This sluin clearance eliminated that sec­ Mr-. BENDER. I yield. tion entirely and the residents of it had to move out. The Mr. MARCANTONIO. Is not the conduct of the work and people who did live in that territory moved into other sections the renting of the apartments in this particular project, of the city and created new problems there. · controlled by the local housing authority? Wnen the project was completed and ready for occupancy Mr. BENDER. I cannot keep up with all of the various we found that apartments in it could not be rented for less agencies that control these things. than $25, so the people whom the project was intended to Mr. MARCANTONIO. It is the Cleveland housing author- benefit were not benefited at all. They are living in other ity, is it not? · parts of the city. [Here the gavel fell.] Mr. FITZPATRICK. Mr. Chairman, will the gentleman Mr. JOHNSON of Oklahoma. Mr. Chairman, I ask unani­ yield? m.ous consent that all debate on this paragraph and all Mr. BENDER. I will yield in just a moment. I shall amendments thereto close in 20 minutes. complete my statement in just another minute or so. Mr. GIFFORD. Mr. Chaiiman, reserving the right to Frankly, those living in the project are people who are object, I was just going to ask unanimous consent to proceed . working and able to pay anywhere from $25 to $40 a month for 10 minutes on this housing matter. · rent. Not one of the families living iri the project today Mr. JOHNSON of Oklahoma. Mr. Chairman, I do not lived in that area before the Government removed the former want to be unreasonable and I wish to give everybody an residents from that section and moved them elsewhere. The opportunity to talk, but unless we can agree on the· time for people whom the project was intended to help are not being debate w_e are not going to be able to come anywhere near helped at all. The poor people of the community, whose getting through this evening. condition was to be improved because of this project, find Mr. Chairman, I ask unanimous consent that all debate their condition has not been improved at all, while others on this paragraph and all amendments thereto close in 40 are benefiting and taking advantage of the expenditure of minutes. your money and my money, because we are having to pay The CHAmMAN. Is there objection to the request of the the difference between the cost of the project, the carrying gentleman from Oklahoma? charges, and the price these people are paying to live there. There was no objection. All of us have a Christian philosophy and have a desire to Mr. TAYLOR of Tennessee. Mr. Chairman, I move to help the poor people, but I believe it is essential that all of strike out the last word. us understand this project is not helping the fellow we want Mr. Chairman, in discussing the Federal housing program . to help. We want to help the fellow who previously lived and as evidence of the tremendous extravagance practiced · in the slum area to live under better conditions. therein, I want to call the attention of the committee to a Now, certainly the amendment that is offered by the gen­ very interesting article which appeared in the Washington tleman from Ohio [Mr. WHITE] restricting the cost to $3,500, Herald a few days ago in the column of Paul Mallon, which makes it possible for the poor fellow to live in a better sur­ said: l'ounding so that he can pay his $10 or $12 or $15 a month Mr. Roosevelt may get a pointed tip on economizing from the and live under better conditions. What can be wrong with Vice President if he can get Mr. GARNER to tell about the Gamer that? If you increase the cost of the project and you make low-cost housing project. It seems Mr. GARNER, who believes in getting a dollar's worth for it prohibitive for the poor fellow to live there, you are not a dollar, has some scattered land near his home in Uvalde and helping the man you want to help -at all. [Applause.] decided to do some resettling and low-cost housing of his own on it. Mr. KELLER. Mr. Chairman, will the gentleman yield? A Government F. H. A. house was being bullt a mne and a half Mr. out of town for $2,700 as a demonstration. It was last summer. BENDER. I yield. - . GARNER had nothing to do. So he decided to try his hand and see Mr. KELLER. Is this in Cincinnati? what he could do. Mr. BENDER. I ain speaking of Cleveland. The result was the Vice President buUt his houses for just about half the cost of the F. H. A. house, 1s renting them for less than Mr. KEIJ·ER. May this not be an unfortunate thing there half as much, and making 15 percent profit whUe F. H. A. 1s and very fortunate at some other place? In other words, breaking even or losing money. may not the conditions vary, which would make it a success This private Garner low-cost housing project to date has com­ pleted 17 houses and several more are under way. The average somewhere else? cost so far has been $1,500, but chiefty because two or three tenants Mr. BENDER. You cannot possibly help the fellow who wanted sleeping porches, and this ran the cost of these few places needs it most if you provide an expenSe beyond what the up to $1,800 eaOration, and this amendment simply . places all ment of the reindeer industry for the benefit at the Eskimos and reservations that have accepted the act on an equal basis and other natives of Alaska, as authorized by said act, including per­ sonal services in the District of Columbia (not to exceed $2,300) makes them eligible to receive loans from the revolving loan and elsewhere, traveling expenses, erection, repair, and mainte­ fund. - - nance of corrals, fences, and other fac111ties, •250,000; in all Mr. RICH. Mr. Chairman, will the gentleman yield? $1,070,000, to be immediately available: Provided, That under this Mr. CASE of South Dakota. Yes. appropriation not exceeding an average of t4 per head shall be paid for reindeer purchased from nonnative owner8: Provided jurt."'J.er, Mr. RICH. Why is it that the :indians cannot incorporate? That the foregoing limitation shall not apply to the purchase of Why should they not incorporate? reindeer located on Nunivak Island." . Mr. CASE of South Dakota. Incorporation is not needed Mr. SCHAFER · of Wisconsin. Mr. Chairman, I make the to establish an effective basis or status for administering the point of order ·against the amendment on the ground that it loans, but if you have reservations· embracing two or three is legislation on an appropriation bill, unauthorized by law, or four counties, and ·several thousand Indians, it is diffi.cult and it delegates to the Department additional authority which for them to incorporate because it is diffi.cult for them to it does not now have. · · understand all of the technical details of corporate law. The The CHAIRMAN. Does the gentleman from Oklahoma result is that those who are unable to understand the details desire to be heard? · of corporate organization vote against the incorporation, be­ cause of some misunderstanding. As a consequence the Mr. JOHNSON of Oklahoma. Mr. Chairman, I feel that smaller reservations incori:>orate and get loans while the it is unnecessary to make an extended argument, as I am larger ones do not and are left out. These loans when finally sure the Chair is fully advised and ready to rule. Certainly · made are available to the individual Indians, and the require­ th~re is no question but that this item is clearly authorized ment of incorporation simply results in discrimination in the by existing law. Authority will be found in the act of Sep­ application and availability of the loans today. tember l, 1937, Fiftieth Statutes, page 900. It plainly au­ Mr. RICH. Does the gentleman think the Indian Bureau thorizes an appropriation of $2,000,000. I call the attention would approve this amendment? of the Chair to section 16 which reads as follows: _Mr. CASE of South Dakota. I have talked with individuals The sum of $2,000,000 is hereby authorized to be appropriated for the use of the Secretary of the Interior in carrying out the pro­ in the offi.ce and they have expressed sympathy for it as a visions of this act. solution of a very diffi.cult problem. · Mr. RICH. Would they recommend or have they recom­ , Mr. KNUTSON. What more authority do you want? That mended it? is enough. . Mr. CASE-of South Dakota. I cannot say that they are on· Mr. CARTER. Mr. Chairman, I would like to be heard on record as haVing recommended it, but this morning-! talked the point of order. 2790 _CONGRESSIONAL RECORD-HOUSE MARCH 15: The · CHAIRMAN. The gentleman from ca.Iifornia 1s Mr. RICH. Mr. Chairman, will the gentleman yield? recognized. Mr. COLMER. I yield for a question. Mr. CARTER. The opening sentence of the amendment Mr. RICH. It was the request of the gentleman from reads: Oklahoma that we permit this item in · the bill to go over For the purchase in such manner as the Secretary of the Interior until tomorrow, and I understood all Members would have shall deem advisable. an opportunity to speak on it tomorrow. · That will give us Now, certainly there is nothing in the statute that gives the an opportunity to conclude the balance of the Indian affairs Secretary of the Interior that much discretion. In addition matter. to that, Mr. Chairman, I desire to call the attention of the Mr. COLMER. Let me say to the gentleman I understood Chair to the proviso in the amendment which reads as the that was not agreed to. proviso in the bill, which is clearly legislation. Therefore I The CHAIRMAN. The gentleman from Wisconsin [Mr. say the point of order must be sustained against the proposed ScHAFER] objected to the request. amendment. Mr. SCHAFER of Wisconsin. Mr. Chairman, in view of' · The CHAIRMAN

2796 CONGRESSIONAL RECORD-HOUSE MARCH 15 a duly authorized subcommittee thereof, to conduct an -inves­ N. Y., urging the establishment of a Coast .Guard station in tigation. of the extent· of unemployment in all cities in the the:vicinity of Dunkirk Harbor, N.Y.; to .the Committee on United States of 5,000 population or over; to the Conimittee Naval A1Iairs. on Rules. 1772. Also, letter from the Licensed Tugmen's Protective Association, Local Union No. 4, Buffalo, N. Y., favoring the MEMORIALS enactment of Senate bill 1007; to the Committee on Inter­ Under clause 3 of rule XXII, memorials were presented and state and-Foreign Commerce. referred as follows: 1773. Also, resolution adopted by the town of Niagara, ' By the SPEAKER: Memorial of the Legislature of the State Niagara County, N.Y., protesting against enactment of legis­ of Indiana, memorializing the President and the Congress lation .to tax municipal securities; to the Committee on Ways of the United States·to consider their Senate resolution with and Means. . referenqe to-House bi11 ·2, known as the general welfare bill; . -1774. By Mr. BROOKS: Petition ·of. American Association to the Committee on-ways and Means. · of University Women, Shreveport Chapter, asking for change in neutrality laws so as to permit the President to designate victim and aggressor nation; to the Committee on Foreign PRIVATE B~ AND RESOLUTIONS Aft'airs. Under clause 1 of rule XXII, private bills and resolutions 1775. By Mr. CHIPERFIELD: Petition of subscribers of the were introduced. and severally referred as follows: Yates City Telephone Co., Yates City; Fairview Central Tele­ By Mr. BATES of Massachusetts: phone Co., FairView; Farmington Telephone Co., Farming­ H~ R. 5077. A bill for the relief of Anthoula S. Maskas; to ton; Fiatt Telephone Exchange, Fiatt; Ipava Central Tele­ the Committee on Immigration and Naturalization. phone Co., Ipava; Summum Mutual Telephone Co., Summum; By Mr. BLAND: Table Grove Telephone Co., Table Grove; Bishop Hill Tele­ H. R. 5078. A bill granting an increase of pension to Mary phone Exchange, Bishop Hill; Dahinda Telephone Co., Da­ W. Osterhaus; to the Committee on Pensions. hinda; Victoria Telephone Go., Victoria; Nekoma Telephone By Mr. CARLSON: Co., Nekoma; Williamsfield Telephone Co., Williamsfield; . H. R. 5079. A bill granting a pension to Rebecca J. Reynard; Altona Telephone Co., Altona; Woodhull Telephone Co., to the Committee on Invalid Pensions. Woodhull; Laura Telephone Co., Laura; Middlegrove Tele­ _By .Mr. DARDEN: phone Co., Middlegrove; Rio Telephone Co., Rio; Wataga H. R. 5080. A bill to extend the benefits of the Employees' Mutual Telephone Co., Wataga;· Henderson Farmer Tele­ Compensation Act of September 7, 1916, to Candace Wiliford phone Exchange, Henderson; and the Orion Telephone Ex­ Duke; to the Committee _on Claims. change Association, Orion, all of the State of Dlinois, urging By Mr. EATON of California: amendment to the Federal Wage-Hour Act to exempt em­ H~R. 5081. A bill granting a· pension to Eleanor Ady; to ployees of the smaller telephone companies in Illinois; to the the Committee on Invalid Pensions. Committee on Labor. By Mr. JEFFRIES: 1776. By Mr. CLASON: Petition of Clara P. Smith and H. R. 5082. A bill for the relief of Harry Thomas;· to the other residents of ~ampden County, Mass., urging the ces­ Committee on Claims. sation of the shipment of weapons and war materials to By Mr. JOHNSON of West Virginia: Jaoan: to the Committee on Foreign A1Iairs. H. R. 5083. A bill granting a pension to Minnie L. Clark; 1777. By Mr. FISH: Petition signed by Rev. Philip M. to the Committee on Invalid Pensions. Styles, rector, and the vestrymen of St. George's Presby­ By Mr. OLIVER: terian Church; of Newburgh, N. Y., protesting against the H. R. 5084. A bill authorizing refund to the McCann Cor­ enact_ment of an amen~ent · to the Social Security Act to portation, of Portland, Maine, of a sum deducted unfairly a5 a include church employees; to the Committee on Ways and penalty and forfeiture on a contract with the .commissioners Means. · of the District of Columbia; to the Committee on the Distzict 1778. By Mr. JENKINS of Ohio: Petition signed by about of Columbia. · 130 members of the Stockdale, Ohio, community, urging Con­ By Mr. SASSCER: gress to pass· House bill 3842, which proposes to amend the . H. R. 5085. A bill granting a pension to Anna 0. Ward; to Fair Labor Standards Act of · 1938 to exempt operators of the Committee on Pensions. telephone exchanges having less than 1,000 subscribers; to H. R. 5086. A bill granting a pension to Mary V. Gesner; to the Committee on Labor. · tbe Committee on Pensions. 1779. By Mr. ~OTHER A. JOHNSON: Petition of F. Wal­ . H. R. 5087. A bill for the relief of Marie B. Neale; to the lace Taber and 24 members of. the Fish and Game Club of Committee on Claims. · - the Texas Agricultw·al and Mechanical College, College Sta­ H. R. 5088. A bill for the relief of Amos B. Cole; to the tion, Tex., favoring House bill 3648; to the Committee on the Committee on the District of Columbia. Public Lands. H. R. 5089. A bill conferring jurisdiction upon the Court 1780. By Mr. MARTIN J. KENNEDY: Petition of the com­ of Claims of the United States to hear, examine, adjudicate, mittee of coast guardsmen, urging support of b1lls introduced and render judgment on the claim of the legal representative in the ·Senate and House