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(At the direction of the committee the following reports from executive departments of the Government on these bills; statement showing existing War Department projects by regional areas; statements showing privately and publicly owned existing hydroelectric plants, summary of undeveloped water power; statement showing facts about T. V. A. dams; consumption of fuel by kind by electric power plants; amount of fuel oil used in the generation of electric power in the United States from 1919 to 1937; production of electric power and capacity of generators in public-utility plants during 1935; and statement showing electricity produced, consumption of fuel, and capacity of generators in public-utility power plants, are included in the record:

Hon. JOSEPH J. MANSFIELD,

DEPARTMENT OF LABOR,
Washington, June 11, 1937.

Chairman of the Committee on Rivers and Harbors,

House of Representatives, Washington, D. C.

DEAR CONGRESSMAN MANSFIELD: I have your letter of June 9, requesting my comment of H. R. 7392, "A bill to provide for the creation of conservation authorities, and for other purposes", which has been referred to your committee.

I regret to say that this Department has no specialized knowledge with respect to flood control, or conservation, which would be helpful to your committee in the consideration of this bill, but it is believed that the agencies charged with the conservation duties, such as the Department of Interior, and National Resources Committee, would be able to give your committee such technical advice and information as you require.

I have one suggestion in regard to the labor provisions which are contained in section 13 (d) and incorporate the prevailing wage principle in construction contracts made by the administrative agencies created by the act. As you know, the old prevailing wage law, known as the Bacon-Davis Act, from which some of the language of this subscetion was taken, was amended by the act of August 30, 1935 (49 Stat. 1011, U. S. C., ti. 40, sec. 276 (a)), so as to remedy certain administrative deficiencies in the old statute. It is therefore suggested that subsection (d) should be amended so as to read:

"(d) The Act of August 30, 1935, entitled An act to amend the Act approved March 3, 1931, relating to the rate of wages for laborers and mechanics employed by contractors and subcontractors on public buildings, shall be applicable to all contracts to which an authority is a party and which require the employment of laborers or mechanics in the construction, alteration, maintenance, or repair of buildings, dams, or other structures or facilities, and shall also apply to force account work of this character done directly by an authority."

Sincerely yours,

FRANCES PERKINS.

DEPARTMENT OF LABOR,
Washington, June 12, 1937.

Hon. J. J. MANSFIELD,

Chairman, Committee on Rivers and Harbors,

House of Representatives, Washington, D. C.

MY DEAR MR. MANSFIELD: Thank you for your kind letter of June 5, enclosing a copy of H. R. 7365.

I have gone through the bill with a great deal of interest. I believe that the development, integration and coordination of flood control and reclamation is an end that we should seek to attain at the earliest possible moment.

I regret that I do not know enough about the technical aspects of the problem to be able to make any report on the bill.

Very cordially,

FRANCES PERKINS, Secretary.

UNITED STATES CIVIL SERVICE COMMISSION,
Washington, D. C., June 26, 1937.

Hon. JOSEPH J. MANSFIELD,

Chairman, Committee on Rivers and Harbors,

House of Representatives.

DEAR MR. CHAIRMAN: The Commission refers to H. R. 7392 introduced by Representative Rankin, and to H. R. 7365 introduced by you, which were referred to your committee, to provide for the regional conservation and development of the national resources.

It is noted that in section 13 (a) of H. R. 7392 provision is made that, "each authority may select, employ, and fix the compensation of such officers, attorneys, engineers, special consultants, and experts as it deems necessary to carry out the functions and duties of the authority, without regard to the provisions of other laws applicable to the employment and compsenation of officers or employees of the United States," and that "such other employees" as may be deemed necessary may be appointed subject to the civil-service laws.

H. R. 7365 contains a similar provision in section 204 (a) and also provides for regional planning agencies, which agencies have like authority as to appointments. The Commission feels that in the interests of good administration all employments should be subject to the requirements of the civil-service laws. All citizens, then, who may be interested in competing for the positions will have the opportunity to do so, those who show the best qualifications being the first considered for employment.

A very important part of the merit system is the authority appearing in the Civil Service Act for the President to make any necessary exceptions, so that if these bills were amended to provide simply for the employment of personnel, the regular provisions of the act and rules would apply. The Commission and the conservation authorities would then hold conferences to determine what positions should properly be exempt from competition, and joint recommendation would be made to the President for approval. Such exemptions for other branches of the service already appear in schedules A and B of the civil-service rules. By direction of the Commission:

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House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: In response to your letter of July 6, 1937, with reference to H. R. 7365, you are advised that the Commission has given most careful consideration to this bill and is in full accord with its basic objectives.

The bill recites in section 1 of title I certain fundamental purposes including, among others, the development, integration, and coordination of plans and projects for or incidental to the promotion and protection of navigation, flood control, and conservation and development of water resources, all of which are within the powers and duties delegated to the Federal Power Commission by the Congress under the Federal Water Power Act of 1920 and the amendment thereto, consisting of title II of the Public Utility Act of 1935.

The Federal Water Power Act of 1920, under which the Federal Power Commission was created, declared it to be the policy of the Congress that the Nation's water resources should be conserved and developed, pursuant to such integrated and coordinated plans as

""*** will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of water-power development, and for other beneficial public uses, including recreational purposes;" (Federal Power Act, sec. 10 (a)).

The act provides that in granting preliminary permits or licenses for projects preference is to be given by the Commission—

"* * *to applications therefor by States and municipalities, provided the plans for the same are deemed by the Commission equally well adapted, or shall within a reasonable time to be fixed by the Commission be made equally well adapted, to conserve and utilize in the public interest the water resources of the region;" (Federal Power Act, sec. 7 (a)).

In addition to development of projects under license as above indicated, the Federal Power Act provides for the development of water resources by the Federal Government:

"Whenever, in the judgment of the Commission, the development of any water resources for public purposes should be undertaken by the United States itself, the Commission shall not approve any application for any project affecting such development, but shall cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the purposed development as it may find necessary, and shall submit its findings to Congress with such recommendations

as it may find appropriate concerning such development." (Federal Power Act, sec. 7 (b)).

From the above citations and other provisions of the Federal Power Act it appears that the main objectives of the bill under consideration, at least insofar as they refer to the development of our national water resources and the incidental development of hydroelectric power, are extensions of a policy long ago declared by the Congress not only in the Federal Water Power Act of 1920, and the amendment thereof in 1935, but also in numerous other acts of Congress, such as those authorizing the Boulder Dam and Tennessee Valley Authority developments and other reclamation, flood control, and navigation improvements.

In the opinion of this Commission, the Federal multiple-purpose projects heretofore authorized by the Congress have justified the widsom of the underlying congressional policy that these public resources be developed by the Government to assure their combined maximum availability to and uses by the public at minimum cost. It is noted that the bill provides administrative machinery and proposes certain policies varying in some respects from those embodied in existing law, but it is our view that the main purposes of the bill are the matters of paramount importance. Even though this Commission's functions may be modified, we would deem that to be of secondary importance, the primary consideration being the social and economic advantages to the public.

Sincerely yours,

FRANK R. MCNINCH, Chairman.

FEDERAL POWER COMMISSION,
Washington, July 15, 1937.

Hon. J. J. MANSFIELD,

Chairman, Committee on Rivers and Harbors,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: In response to your letter of June 9, 1937, with reference to H. R. 7392, you are advised that the Commission has given most careful consideraton to this bill and is in full accord with its basic objectives.

The bill recites certain fundamental purposes, including, among others, the development, integration, and coordination of plans and projects for or incidental to the promotion and protection of navigation, flood control, and conservation and development of water resources, all of which are within the powers and duties delegated to the Federal Power Commission by the Congress under the Federal Water Power Act of 1920 and the amendment thereto, consisting of title II of the Public Utility Act of 1935.

The Federal Water Power Act of 1920, under which the Federal Power Commission was created, declared it to be the policy of the Congress that the Nation's water resources should be conserved and developed, pursuant to such integrated and coordinated plans as

66* ** will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of waterpower development, and for other beneficial public uses, including recreational purposes;" (Federal Power Act, sec. 10 (a)).

The act provides that in granting preliminary permits or licenses for projects preference is to be given by the Commission

66* * * to applications therefor by States and municipalities, provided the plans for the same are deemed by the Commission equally well adapted, or shall within a reasonable time to be fixed by the Commission be made equally well adapted, to conserve and utilize in the public interest the water resources of the region;" (Federal Power Act, sec. 7 (a)).

In addition to development of projects under license as above indicated, the Federal Power Act provides for the development of water resources by the Federal Government:

"Whenever, in the judgment of the Commission, the development of any water resources for public purposes should be undertaken by the United States itself, the Commission shall not approve any application for any project affecting such development, but shall cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the proposed development as it may find necessary, and shall submit its findings to Congress with such recommendations as it may find appropriate concerning such development." (Federal Power Act, sec. 7 (b)).

From the above citations and other provisions of the Federal Power Act it appears that the main objectives of the bill under consideration, at least insofar as they refer to t1 development of our national water resources and the incidental

development of hydroelectric power, are extensions of a policy long ago declared by the Congress not only in the Federal Water Power Act of 1920 and the amendment thereof in 1935 but also in numerous other acts of Congress, such as those authorizing the Boulder Dam and Tennessee Valley Authority developments and other reclamation, flood control, and navigation improvements

In the opinion of this Commission, the Federal multiple purpose projects heretofore authorized by the Congress have justified the wisdom of the underlying congressional policy that these public resources be developed by the Government to assure their combined maximum availability to and uses by the public at minimum cost. It is noted that the bill provides administrative machinery and proposes certain policies varying in some respects from those embodied in existing law, but it is our view that the main purposes of the bill are the matters of paramount importance. Even though this Commission's functions may be modified, we would deem that to be of secondary importance, the primary consideration being the social and economic advantages to the public.

Sincerely yours,

FRANK R. McNINCH, Chairman.

DEPARTMENT OF AGRICULTURE,

Washington, July 14, 1937.

Hon. J. J. MANSFIELD

Chairman, Committee on Rivers and Harbors, House of Representatives. DEAR MR. MANSFIELD: I have carefully considered the bill, H. R. 7365, entitled "A bill to provide for the regional conservation and development of the national resources, and for other purposes,' upon which you have asked me to submit a report to your committee.

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As I read the bill it seeks to accomplish three major purposes: (1) The formulation, for natural geographic regions, of comprehensive plans in the entire field of conservation and development of the natural and human resources of each region and the systematic effectuation of these plans; (2) the generation and distribution of electric power which will become available as a result of such projects for navigation, flood control, and reclamation as may be included in the plans of the regional agencies and adopted by Congress; and (3) coordination within each region of the various Federal action programs being administered in the region.

With each of these high purposes I am heartily in accord. No one interested in agricultural improvement and in having our natural resources best serve all our people could fail to recognize the necessity for both short-time and long-time planning. The final end to be served, of course, is that which has been so continuously emphasized by this administration-human conservation. This means, I think, that we must have practical, but comprehensive planning on a regional and national basis, just as we now have effective planning on a functional basis and in execution. Certainly plans for reforestation, for soil conservation, for achieving an adequate farm income, for flood control, must harmonize with a general plan that is socially and economically sound for each region and for the Nation as a whole.

Over-all planning will necessarily include plans for the improvement of navigation, flood control, and reclamation of public lands; and, as a necessary incident to such projects, will include plans for generating and distributing electric power. Probably no segment of American life is more interested in electric power at low rates than is agriculture. Electric energy can contribute enormously to the improvement of farming and rural living. In some areas electric refrigeration is the key to a vitally needed diversification. In all areas, for all people, cheap electricity ought to be one of the blessings of modern technology.

Naturally I favor the regionalization of many activities. I think the Department of Agriculture has helped point the way to a desirable regionalization of Federal programs, and has striven to coordinate its work in each region so as best to supplement related activities of State and local agencies. The work of the Forest Service, Soil Conservation Service, Resettlement Administration, Bureau of Public Roads, and the Biological Survey is regionalized; the programs of the Agricultural Adjustment Administration and of the Extension Service are regionalized, though on a different basis. Only recently, to help meet the acute situation in the so-called "dust bowl" area of the southern Great Plains, I designated a regional coordinator with authority to unify the Department's programs. Fortunately, the coordinator has the active support of the State and local agricultural agencies in the five States concerned.

Therefore, I have not the slightest reservation to make about the ultimate objectives at which this bill is aimed. I should like, however, to submit, for the consideration of your committee, a few suggestions for revision of the bill. I am offering these in the hope of improving its administrative features.

H. R. 7365 may be summarized as follows: It establishes seven regional planning agencies which, between them, embrace the continental area of the United States. These regional agencies are directed to prepare and to submit annually to the President, comprehensive plans for integrated regional development in the entire field of the conservation and utilization of natural and human resources, including plans for navigation, flood control, reclamation of the public lands, and generation and distribution of hydroelectric power. The regional agencies are further empowered to devise and effect coordination within the region of the programs of the various departments and agencies of the United States. The bill then provides, in a series of provisions which are marked off as title II, that the President may establish by Executive order corporate regional power authorities which shall have complete power to administer facilities for generating and distributing electric energy developed as an incident to projects for flood control, navigation, or reclamation of the public lands. Two revisions are, I believe, imperatively needed:

1. The bill should make explicit the policy which is now merely implicit, that projects other than facilities at which hydroelectric power may be produced should be administered by those departments and agencies regularly charged with the same or similar work, and should confer the necessary authority upon those departments and agencies.

I take it to be the purpose of the present bill to serve as a general enabling act under which regional planning agencies are established, and the general basis is laid for the future administration of such action programs as are to be covered in the plans later submitted and adopted by the Congress. It is therefore a serious omission that the bill, while providing for the administration of projects at which hydroelectric power may be produced, fails to provide for the administration of such other action programs as are to be adopted. It is implicit in the bill that all projects, other than power projects, are to be administered by the departments and agencies regularly charged with the same or similar work. In short, there is apparently a strong desire to avoid any duplication in administering erosion control, forestry, flood control, and other programs. To make this explicit, however, I suggest that a new title II should be inserted after the present title I (with succeeding titles of course renumbered) and that this new title II confer those administrative powers which will be needed by the departments and agencies whenever the Congress adopts programs submitted to it in the plans of the regional planning agencies.

It may be noted in passing that failure to have these provisions explicit might make the bill seem to be more concerned about power projects than about the numerous other types of projects which may be provided for in the plans of the regional planning agencies. The inclusion of the suggested new title will serve to prevent such a misconception of the purposes of this legislation.

2. The final determination with reference to coordination of action programs within each region should rest with the departments and agencies whose programs are to be coordinated rather than with the regional planning agencies.

Section 4 (b) of the bill provides that each regional planning agency shall survey within its region the programs of the existing Federal departments and agencies, and "shall endeavor to coordinate and integrate plans for projects, activities, and regional developments by devising and effecting arrangements for the cooperation of the field offices and services of the departments and agencies of the United States." The regional planning agencies may call upon the field offices and services for any information, and it is made the duty of the Federal departments and agencies "to have their field offices and services take such action as may be necessary or appropriate to cooperate with each regional planning agency." This language may be interpreted to mean that final responsibility and authority for bringing about "coordination" of all Federal programs in the region is to rest with the regional planning agency. Now, the essence of a program lies in the way in which it is administered in the field. If the regional agencies can set aside administrative procedures devised by each Federal department in Washington, and can give countervailing instructions to the field offices, then genuine responsibility for the administration of the programs will shift from the Federal departments to the planning agencies. Furthermore, inasmuch as the several planning agencies may each devise different arrangements for such coordination in each region, the Federal departments in Washington may well find that the programs which they are charged with administering are being differently administered in each

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