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that their development be greatly speeded up. The spirit of the Hoover report is one of slowdown or shutdown. The spirit of America is full steam ahead.

CARL ELLIOTT, M. C. In addition, I have a statement from Mr. Jim Battles, secretarytreasurer of the Alabama State CIO Council, at Birmingham, Ală, to be made a part of the record at this point, without objection.

(The statement referred to is as follows:)

STATEMENT OF JIM BATTLES, SECRETARY-TREASURER, ALABAMA STATE CIO

COUNCIL, BIRMINGHAM, ALA. Mr. Chairman, gentlemen, I appreciate the opportunity of appearing before this distinguished committee today. I appear not as an expert on public power nor as an expert on the operation of the TVA, but I appear as a representative of 90,000 CIO members in Alabama who are stanch friends of the TVA.

The current controversy over TVA is but a part of the overall plot of private power corporations-aided and abetted by certain members of the administration—to turn over the natural resources of our country to private businesses for exploitation. This exploitation will be for the benefit of the few and at the expense of the majority.

The administration and the private power corporations are attempting to confuse the entire electric power issue by their cries of "creeping socialism.” Socialism is not the issue. Neither is any other ism. The issue before the American people in the current flight over the Government's power policy is clear and simple: Are we going to have an adequate and growing supply of electric power at the lowest possible cost? Or, is the Federal Government to abdicate completely from the field of electrical power, leaving the private power corporations to their own monopolistic devices—limited service-higher rates?

If we are to meet the estimate of the President's Materials Policy Commission of a 260-percent increase in electrical power output between 1950 and 1975, it should be obvious that we do not need to cripple or curtail any of our present operations, but rather we should encourage their expansion.

The story of TVA is well known to all of you. It is the story of how waters once wasted and destructive have been controlled and now work day and night creating electrical power to ease the burdens of human labor. It is the story of farmlands which had grown old, barren, and eroded with the years, but which are now green, fertile, and productive. It's the story of forests that were hacked and despoiled, but which are now protected and covered with thousands of young trees. It's the story of a people and how they worked to create a new valley-a prosperous valley.

I am happy that organized labor has had a part to play in the development of this great Tennessee Valley. Organized labor's interest and partnership in the development of the valley was not confined to their paychecks. They saw in the valley and what TVA was doing for it a chance for a better living-higher wages, more jobs—and some of the conveniences of life. Many of them know from bitter experience of the wasting farmlands, of floods that devastated factories, jobs, and homes. They saw in TVA a way to rid the valley of these forces that held them back.

The accomplishments of the TVA are now a part of the record. They need not be reiterated here. In fact, the very success of TVA is behind the campaign of private power interests to destroy it.

The TVA did for the valley what private power companies had the opportunity to do many years ago. Instead, however, they kept their rates at a maximum and their services at a minimum and completely ignored 90 percent of their customers in the rural areas.

Notwithstanding the peacetime pursuits of TVA, the contribution which it made to national defense during World War II and the contribution which it is expected to make should the cold war become a hot one, makes it mandatory that its operations be expanded rather than curtailed.

Private organizations have no inherent right to the exclusive generation and distribution of electrical energy. Private electric utilities are granted certain monopolistic privileges by the people in return for certain public services. Public-owned electric systems are by no means a new innovation. From the very birth date of the electric industry in the 1860's, publicly owned services developed alongside privately owned plants. It is always the people's choice whether to own and operate an electric service themselves or turn it over to private investors.

The recent floods which devastated thousands of suare miles in New England are evidence enough that rather than curtailing operations like the TVA, the Government should be encouraged to undertake similar projects in other areas of our country.

Just as President Hoover's promise of a "chicken in every pot" in the 1930's did not come to pass, we in the CIO do not feel that the Hoover Commission's recommendations regarding power development will provide the necessary power for our expanding economy.

Mr. Jones. Now, is there anybody else who would like to testify? (No response.)

Mr. JONES. That concludes the schedule of witnesses we had for today.

Before we adjourn for the day I want to express for myself and for the committee our appreciation and our gratitude for the kindness that we have experienced and the part of the TVA officials, the chambers of commerce, the mayors, and the splendid witnesses who have appeared and cooperated so well with the committee in the conduct of its official business.

I want to express to you all our sincere thanks for your cordial treatment that you have extended to us on every occasion here. I always like to come home. You have been mighty sweet and mighty kind.

The committee stands adjourned.

Mr. LIPSCOMB. Mr. Chairman, I want to add to your statement and thank you as chairman for the opportunity to come into your district. I am gratified to know that your constituents think so much of you, because I am sure your colleagues in Congress do, too.

Mr. Jones. Thank you very much. Mr. LIPSCOMB. I have enjoyed the hospitality here. Thank you very much, and the committee will stand adjourned until 9:30 a. m. tomorrow at Memphis, Tenn., in the Federal Building.

(Whereupon, at 4:30 p. m., the committee adjourned until 9:30 a. m. the following day, Thursday, November 3, 1955, at Memphis, Tenn.)

The following is a list of persons to whom invitations were sent to testify at Muscle Shoals: Hon. Lister Hill

Hon. George W. Andrews Hon. John Sparkman

Hon. Kenneth A. Roberts Clyde Ellis

Hon, Carl Elliott Alex Radin

Hon. Armistead Selden, Jr. Mayor Leonard Beard

Hon. George Huddleston, Jr. John Carmody

Hon. Albert Rains Walter Harrison

Hon. Joseph C. O'Mahoney Quince Eddens

Hon. James Folsom Thomas Martin

Hon. Thomas G. Abernethy Hon. George M. Grant

Hon. Jamie L. Whitten Hon. Frank W. Boykin

Hon. Frank E. Smith Letters of invitation were sent to members of congressional delegation, Mr. Thomas Martin, chairman of the board, Alabama Power Co., and Governor James Folsom. The letters to the congressional delegation read as follows:

"DEAR SIR: As you know, this subcommittee is conducting hearings on the Hoover Commission Report on Water Resources and Power.

"The subcommittee has scheduled a hearing for November 1 and 2 in the TVA chemical plant auditorium at Muscle Shoals, Ala., with particular reference to the Hoover Commission recommendations with respect to TVA.

“This is to invite you to appear at the hearing as a witness on the Hoover report. I look forward to your participation. “With warm personal regards, I am

(Signed) ROBERT E. JONES, M. C.” The letter to Mr. Martin reads as follows:

"DEAR MR. MARTIN: As you may know, this subcommittee is conducting hearings in various parts of the country on the Hoover Commission Report on Water Resources and Power.

“The subcommittee is holding a hearing at Muscle Shoals on November 1 and 2, and I extend a cordial invitation for you or your representative to testify at the hearing. It will be held in the auditorium of the TVA chemical plant at Wilson Dam.

“Please let me know whether you can accept this invitation and which day you would prefer to appear.

“(Signed) ROBERT E. JONES, M. C.". The letter to Governor Folsom reads as follows:

"SIB: As you know, this subcommittee is conducting hearings on the Hoover Commission Report on Water Resources and Power. On November 1 and 2, the subcommittee will hold a hearing at Muscle Shoals on the Hoover recommendations with respect to TVA and we are extremely anxious to have you as a witness. The hearing will be held in the auditorium of the TVA chemical plant at Wilson Dam.

"Mr. William Wise, staff director, is coming to Alabama early next week and will contact you at your office in Montgomery. He will supply you with the necessary details.

“In sincerely hope you can accept this invitation. "With warm personal regards, I am

“(Signed) ROBERT E. JONES, M. C.”

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EXECUTIVE BRANCH OF THE GOVERNMENT (Water Resources and Power Report)

PART 6-Memphis, Tenn.

Bureau of Government

HD 1694

HEARINGS A4

yotib SPECIAL SUBCOMMITTEE OF THE l.s

1956 W

BEFORE A

Congeeew. Here we COMMITTEE ON

GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES

EIGHTY-FOURTH CONGRESS

FIRST SESSION

NOVEMBER 3 AND 4, 1955

Printed for the use of the Committee on Government Operations

UNITED STATES
GOVERNMENT PRINTING OFFICE

70818

WASHINGTON : 1956

UNIVERSITY OF MICHIGAN LIBRARIES

COMMITTEE ON GOVERNMENT OPERATIONS

WILLIAM L. DAWSON, Illinois, Chairman CHET HOLIFIELD, California

CLARE E. HOFFMAN, Michigan JOHN W. McCORMACK, Massachusetts R. WALTER RIEHLMAN, New York EARL CHUDOFF, Pennsylvania

CECIL M. HARDEN, Indiana JACK BROOKS, Texas

CHARLES B. BROWNSON, Indiana LESTER HOLTZMAN, New York

GEORGE MEADER, Michigan ROBERT H. MOLLOHAN, West Virginia CLARENCE J. BROWN, Ohio L. H. FOI'NTAIN, North Carolina

GLENARD P. LIPSCOMB, California PORTER HARDY, JR., Virginia

B. CARROLL REECE, Tennessee JOHN A. BLATNIK, Minnesota

J. ARTHUR YOUNGER, California ROBERT E. JONES, Alabama

VICTOR A. KNOX, Michigan EDWARD A. GARMATZ, Maryland

OTTO KRUEGER, North Dakota JOHN E. MOSS, California

CHARLES R. JONAS, North Carolina JOE M. KILGORE, Texas

WILLIAM E. MINSHALL, Ohio.
DANTE B. FASCELL, Florida
MARTHA W. GRIFFITHS, Michigan
HENRY S. REUSS, Wisconsin

CHRISTINE RAY DAVIS, Staff Director
ORVILLE S. POLAND, General Counsel
WILLIAM PINCUS, A880ciate General Counsel
HELEN M. BOYER, Minority Professional Staff

SPECIAL SUBCOMMITTEE ON WATER RESOURCES AND POWER

ROBERT E. JONES, Alabama, Chairman MARTHA W. GRIFFITHS, Michigan GLENARD P. LIPSCOMB, California HENRY S. REUSS, Wisconsin

MEMBERS Ex OFFICIO
WILLIAM L. DAWSON, Illinois

CLARE E. HOFFMAN, Michigan
WILLIAM C. WISE, Staff Director
WILLIAM L. STURDEVANT, Jr., Professional staf Member

ROY F. BESSEY, Staff Consultant

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