I also have a telegram from A. P. Giannini, who is chairman of the board of directors of the Bank of America, the second largest banking institution in the United States. I also have telegrams from the Western Livestock Journal, and from a number of representatives; inculding Robert E. Smith, who is general manager of the Daily News and Evening News of Los Angeles, in the interest of securing the necessary Federal aid for this project. I have many other letters and telegrams which I have received this morning, which my secretary has said have come in in connection with this, which indicate that the people sending them really feel that this is a worthy project. There is nothing of this kind for exhibition purposes west of Texas, I think. We depended on this project going through after we got these funds, and we are rather embarrassed when we come in here to file our application to find that it will not be received. It is something like going to a banker who has agreed to make you a loan, you let your contract and do everything else necessary and then when you come in he says that something has happened and he cannot give you the loan. That puts you in a very embarrassing position, especially since we had this money appropriated by the State and by the county, and have had these plans drawn up, which, as you can see, are voluminous. This building will employ in labor alone 200 man-hours. Practically 80 percent of the labor comes right from within this area. This project is in my district, where the steel mill, the machine shops, the packing industry, the slaughterhouses, and all of the stockyards are located. They are all in this southeast area. I believe this is something to which you gentlemen should give some consideration. If this resolution is passed, it will give the Administrator the authority which he feels he lacks at the present time. Mr. WOODRUM. Thank you, Mr. Kramer. The committee is very glad to have your statement on this matter. Mr. KRAMER. Would you like to hear Mr. Shanahan, the Secretary? Mr. WOODRUM. Your statement is amply sufficient, but the committee will be glad to hear him, if you wish. However, the committee is glad to attest your very industrious interest in this project. Mr. KRAMER. Mr. Shanahan would simply corroborate what I have said. He is more familiar with the details, although I have worked on this project for the last 3 years, cooperating with these gentlemen whose names I have mentioned. Mr. SNYDER. But the only thing you really want is the money, after all? Mr. KRAMER. Under the act, I think we are entitled to it. Mr. SNYDER. I understand, but that is all that you want, the money? Mr. KRAMER. That is all. We had some pictures taken at the last exhibit that was held there last December. Here are some pictures taken of the boys from this agricultural area who came to this exhibit, which was being put up in a temporary tent. Mr. WOODRUM. We shall be very glad to go into this matter as soon as we get the report from the Public Works Administration. Mr. KRAMER. Thank you very much. 148745-37-44 WEDNESDAY, AUGUST 11, 1937. RIO GRANDE PROJECT, NEW MEXICO-TEXAS STATEMENT OF HON. R. E. THOMASON, A REPRESENTATIVE OF CONGRESS FROM THE STATE OF TEXAS Mr. THOMASON. Mr. Chairman and gentlemen of the committee, as you are aware, the President has signed the Interior Appropriation bill, which carries the following authorization: Rio Grande project, New Mexico-Texas: For operation and maintenance $350,000: Provided, That the Secretary of the Interior is hereby authorized to enter into a contract with the El Paso County Water Improvement District Numbered 1 and the Elephant Butte Irrigation District of New Mexico by which the districts will be relieved of the obligation of making payment of the construction cost chargeable to the development of power of Elephant Butte Dam in the amount determined as equitable by the Secretary of the Interior in return for the conveyance by the said two districts to the United States of all the districts' right, title, interest, and estate in the use of said dam and other project works, including the project water supply, for the development of hydroelectric energy: Provided further, That in such contracts it shall be stated that the use of the dam, project works, and water supply for power purposes shall not deplete or interfere with the use thereof for irrigation purposes: Provided further, That the net earnings of the power plant and system belonging to the United States and any other available revenues shall be applied, until the cost thereof has been met, upon the cost of power development, including (1) the cost of power facilities, (2) the amount invested, as herein authorized, in the cost of Elephant Butte Dam, and (3) the amount invested by the Bureau of Reclamation in Caballo Dam: Provided further, That after the cost of the power development has been met the net earnings of the power plant and system shall be disposed of as Congress may direct. I appear in support of an appropriation of $500,000 to be expended during the next fiscal year in pursuance of this contract, which will start this worthy power development. Caballo Dam on the Rio Grande is being constructed at this time with funds allotted by the Public Works Administration, which increased its appropriation by $1,000,000 in order that the dam might be raised to a sufficient height for power purposes, the lower dam being built in connection with Rio Grande channel rectification. The Secretary of the Interior and the Commissioner of Reclamation have recognized the desirability of hydroelectric development in the Rio Grande Valley as is evidenced by this allotment and we who live in the valley realize that such development would be of incalculable benefit to our section. Mr. WOODRUM. What is the population that would be served in event this hydroelectric development should take place? Mr. THOMASON. Approximately 150,000 people, a great many of whom are engaged in irrigated farming. For all this population, and all of this area, which is an isolated little empire of its own, surrounded as it is by arid lands, the most important thing that can be brought about is the installation of machinery at Elephant Butte Dam for the purpose of utilizing the electric energy that is already available and going to waste, and when the Caballo Dam is completed additional facilities for the generation of hydroelectric power will be available. This proposed power development, according to the Cone report, made to the Secretary of the Interior, and concurred in by the Bureau of Reclamation, is sound. And there is a market to take are of the power. In other sections of the country gas, oil, and coal deposits are being used in place of water power, while the abundant energy we have on hand at Elephant Butte is flowing away and from now on the waste will be greater on account of additional facilities for storage furnished by Cabello Dam lower down the Rio Grande. Mr. WOODRUM. You state there is a market for this power. Will you tell the committee a little about that? Mr. THOMASON. The last annual report of our local power company at El Paso shows a substantial increase in the domestic use of electric energy during the years 1928-36 and this company has shown a definite increase in earnings during that period. We hope that with the funds on hand herewith to develop power at Elephant Butte, the price of power will be reduced and our project managers have assured me that the Reclamation Service and both irrigation districts will not only get back their investment in the plant and equipment, but will realize a profit that can go toward the repayment of the original cost of the dam itself. In addition to the cities of El Paso and Las Cruces, the valley for 150 miles below the dam is becoming thickly populated. A dozen other towns in the valley and in New Mexico will be accommodated. Mines and factories have resumed operation. The farmers need and are entitled to this convenience and necessity. The market is there. The Government already has a large investment and this is the only way it can get its money back. In this connection permit me to quote the statement made by Hon. John C. Page, Commissioner of the Bureau of Reclamation, before the committee on March 15, 1937: Mr. PAGE. From the report we have made on this (Elephant Butte Dam) development, I feel that it is a good investment for the United States, because of the very direct return which will come from the revenues derived from the sale of power. Likewise, it can be made a perpetual asset of the United States if it is developed with appropriated money and retained in the hands of the Bureau of Reclamation or the Federal Government. In all of these projects the title to the works is held perpetually by the United States. It seems to me highly important and consistent with the national policy that the natural opportunities for hydroelectric power be grasped, and that these developments should be completed as soon as it is possible to do so. Water is a precious resource, especially in the semi-arid and arid regions. Where the overall efficiency of our use of it can be increased by making it do double duty, provide for irrigation and generate power, this possibility of increasing the benefits should not be disregarded. Great benefits can flow to the local community as well as to the Nation from this double use of water. Regardless of the present status of the local power companies which now serve the territory, a block of new power from any source is of benefit to a community of this kind. I recently made a trip through the territory, and I met a large number of people there. My own reaction was that the development of 100,000,000 kilowatthours of power a year at Elephant Butte Dam will be no handicap to the power company, because of the new markets which can be developed. Especially is this true in view of the mining activity which has been so intense during the last few months, with the increased prices of metals. The mining industry can absorb the power without encroaching in any way on the territory of the local outlet. I think, to some extent, it was submitted at the various meetings which I attended, by the representatives of the power company and others who were well informed in the matter, that there was a potential market there that the company could not hope to take care of at this time without material expansion of its generating facilities. For these reasons I feel that the development of this power by the United States is meritorious and is simply a matter of good business. Mr. THOMASON. I urge that the deficiency bill now in course of preparation carry this item of $500,000 for the purposes aforesaid. Thank you, Mr. Chairman, and gentlemen of the committee. INDEX A Page Achilles, T. C., statement of 537 Ackerman, Miss., post-office building.. 189 Ackia National Memorial Commission and Battleground National Monu- 603 Activity already carried on under funds supplied in regular 451 Estimate, distribution of 441 Experiments, advisability of confining to one county in each State.. Farms selected, character of types of 606 607 613 607 608 612 440 619 627 662 623 629 · 631 640 630 Methods suggested.. 635 Forestry lands acquired. 646 Funds required under title I, distribution of.... 636 Funds required under title III, distribution of 651 Land acquisition and land utilization, development of program 647 Departmental and field personnel, number and salaries of. Lands, development, maintenance, and operation of... 667 Number and salaries of, for program of land conservation and |