Senator MCKELLAR. As I understood your view, in the early part of your testimony you said while there were 45,000 kilowatts produced at Wilson Dam, not including the stand-by plant, that by reason of the building of the Cove Creek or Norris Dam, that there would be over three times as much, or about 150,000 kilowatts.

Dr. MORGAN. Yes.

Senator MCKELLAR. Which has a tremendous effect on the cost of current, I imagine.

Dr. MORGAN. It does. As I say, Muscle Shoals taken alone, is an expensive, inefficient thing. With the project taken as a whole, we can produce the cheapest electric power in America, I believe. That is due to the fact that the Government can coordinate these things, and make them into one unit.

Senator DICKINSON. In order to carry out this proposal, I notice that you have built a cement road from Knoxville to the Norris Dam. Dr. MORGAN. From Cove Creek to Norris Dam, a concrete road. We built a less expensive road from there into Knoxville.

Senator DICKINSON. Is that found necessary in order to carry out the purposes of this act?

Dr. MORGAN. That road from Cove Creek to the dam, which was by far the most expensive type of construction we had, we had the alternative of either building a highway to take our heavy material in to the dam or else of building a railroad to take our material in to the dam, which railroad we would have to abandon as soon as the dam was constructed. It seemed to be better to build a highway than to build a railroad. We have carried loads over that road already of 60 tons. There was not a road in that region that would hold up that

amount.

The other roads would not carry that load. The bridge across the Clinchfield River would not carry more than 10 or 20 tons. A 60-ton load was impossible, and it was to carry the heavy equipment for the construction of the dam and the equipment for the power houses, and we had either to build a railroad or a heavy-duty road. We built the road because it would be a permanent improvement and cost only a little more.

Senator DICKINSON. Did the State of Tennessee or the counties adjacent to and immediately affected make any contribution to the road?

Dr. MORGAN. The part from Cove Creek to the dam was paid for by us alone. The part from the dam to Knoxville is being financed jointly by the Tennessee Valley Authority and by the counties involved.

Senator DICKINSON. How many houses are you building at Norris Dam?

Dr. MORGAN. About 350.

Senator DICKINSON. How many people will live there permanently after the Norris Dam is completed?

Dr. MORGAN. We believe all that the town will hold, and we believe that it will grow to a larger town.

Senator DICKINSON. What is there there that would indicate that you will have use for such homes, such number of homes?

Dr. MORGAN. There is cheap power. It is right by the power plant there. It is a good site for a town.

We had the choice of building a camp. The estimate we had to work on when we went there prepared by the Army was a camp costing a million and a half, about, to provide living quarters, and sanitation, and water supplies, and so forth for this job. By adding to that, we can make a permanent town of good homes, and I believe that the salvage to the Government will be greater than though we had put these people into a temporary construction camp and torn it down after the job was completed.

Senator DICKINSON. How expensive are these homes?

Dr. MORGAN. They run from about $1,700 up to about $3,500 or $4,000 for the house and its lot.

Senator DICKINSON. Are you building by contract or by day labor? Dr. MORGAN. We have built most of them by day labor.

Senator DICKINSON. A report has come to me that some of these homes have been replanned and revamped, and built over several times. Have you any information with reference to that?

Dr. MORGAN. There has been no building over at all. The plans have been worked over before the construction began. There has been practically no change. Perhaps you are thinking of a project in another State.

Senator DICKINSON. Was that or was it not under your jurisdiction? Dr. MORGAN. Had no connection with our work at all.

There has been no rebuilding of anything that we have built. Senator DICKINSON. I notice under date of May 1, 1934, in the Knoxville Journal the following:

The Tennessee Valley Authority plans to promote the establishment of a model school for children at Norris, the Tennessee Valley Authority's model town, Miss Marie White, Tennessee Valley Authority educational supervisor, said tonight in an address before the Southern Regional Agricultural and Vocational Conference here.

This is dated at Memphis, April 30:

Miss White also described plans for educational and vocational training of whole families and the town.

"Mechanics and common laborers, who never before had a chance to satisfy man's innate longing for the soil, are receiving training in scientific agricluture through the Tennessee Valley Authority educational program," Miss White said. "Vocational educatlon at Government expense is being offered all the workers on the Norris Dam and building of the town of Norris, and a similar project will soon be started at Wheeler Dam."

Now, you are not only working these fellows, paying for their work, but also educating them.

Dr. MORGAN. Yes.

Senator DICKINSON. And what type of education are you giving them?

Dr. MORGAN. Well, a large part of these are farm boys of that region who plan to go back on the farm, and a good part of the farming in that country is very primitive; a good part of the farms in that country are very primitive farms. We are training them in dairying, in egg production, in care of farmers' tools, and the ordinary carpentry work that goes around the farm. We are trying to teach those things that make a decent farm.

Now, I think the Government is saving money by that training, if I may state it just a minute. You know, perhaps, what the ordinary construction-casual construction-labor is.

Now, we are not requiring them TO MAKE LIT Training. a buletin on the board saying that there is going to be a class here: if you want to sign up for it, sign your name. We have got in £nbitions lot of fellows, and here is one result. We are gating such a qually of lovey and such a quality of labor there as I never bad on a job before in me. Eere is (De Castanon of the point. The first thing we have gone finished on that job so far, substantially, is the work of excavating in the bed of the river for the power plants. Now, the Amoy estimates for that work was $4 a cuble rand. Conni ing in every item of expense, overhead, everything that entered into it, just as the Army counted in, it cost us about $1.51 a ezbie yard. We are getting really low cost on that thing, and we are getting young men, who are just working their bea is off on that ich. We have gonen korally and energy and thoroughness, and the fact that we are giving the fellows a little something besides the day's work. I think, is being paid back in the quality of labor that we are getting. Sector HANDEN. How abozi run-ove?

Dr. MORGAN. Up to the present time we have had about 10 perCELT TID-OVEr, which is vet low.

SELATO HANDEN. That is remarkable.

Dr. MORGAN. It is remarkable. On an ordinary construction job, Senator, you get a turn-over of 40 percent a monik, Now, we Esre had 10 percent in 4 months.

The casual labor is often unsatisfactory, and we have just gotten rid of that problem and have got an entirely different class of labor. Senator DICKINSON. The question involved is how many will want to go back into the mountains and till their little farms after they get through.

Dr. MORGAN. Well, Senator

Senator DICKINSON. It is just like the young lady who goes to town and gets a job. She never wants to go back on the farmi

Dr. MORGAN. In those mountains there are now twice as many farm laborers as necessary to farm those farms. There is great distress in that region. They are just farming up and down the steep hillsides, as steep as a house roof. They get three or four crops, and the soil washes away, and then they have to clear away more timber. The people are just overrunning those mountains. Now, we would like to help to train them. We are training some of them in making the things that can be used in those mountains. If a chap back in

the mountains can make the furniture that his neighbors would like
to use, if he could make the tools his neighbors would like to use,
if they can begin to make the things for each other, they will be
better off if they can do something besides just raise corn.
Senator DICKINSON. We can raise all of the corn that they need in
Iowa, and sell it to them cheap.

Dr. MORGAN. Yes; but they are more familiar with raising corn. Now, we are trying to teach them other crops. Then, in other parts of the South they raise cotton and tobacco.

We are trying to promote the raising of vegetables. We would like to teach them to can vegetables. We have got 300 acres of gardens, and we have got them most interested, and they are raising vegetables they did not know anything about. We are trying to get them to live in a little different way; and by the time the dam is built, we will have gotten more than a dam.

Senator DICKINSON. I find in the Knoxville News-Sentinel, April 28, 1934, that the Tennessee Valley Authority is to censor speeches. A notice to this effect was posted on Tennessee Valley Authority bulletin boards today, signed by John B. Blandford, Jr., coordinator.

The purpose of this order is to "coordinate properly information concerning policies and activities of the Tennessee Valley Authority."

The Tennessee Valley Authority information department will be at liberty to suppress the speeches entirely or blue-pencil those parts that do not conform to Tennessee Valley Authority policies.

Why was it necessary to have censorship?

to

Dr. MORGAN. That is the Knoxville Journal, is it not? Senator DICKINSON. This is the Knoxville News-Sentinel. Dr. MORGAN. Why, upon this one point, we have had in a few cases the people that were thoroughly interested and enthusiastic over their subject that have possibly gone out and suggested ways make changes in the State governments, such as the article that you read to us before, and we think it is suitable before people go out and talk about things outside of their field, to let us know about it. That is, for a man to go over and give a lecture on what the State government ought to do may be bad taste, and we would like to see that we are not getting outside our field too much.

Senator DICKINSON. Have you a break-down of what you are expending on publicity, and what you are spending for traveling agencies to sell your program, and so forth and so on?

Dr. MORGAN. We have no traveling agents to sell our program. Senator DICKINSON. Now, let me read you this. This is in the Knoxville Journal, April 28, 1934:

There are six men and two women attending a 1-week institute designed to enable them to show the housewives of the Tennessee Valley how to get the most out of their electricity.

They will go from here to Muscle Shoals and then to Tupelo, Miss., where they begin work next month.

The representatives attending the institute at University of Tennessee home economics department are

and then gives the names. I care nothing about putting those names in the record.

Dr. MORGAN. Yes; that is this Electric Home and Farm Authority. We had eight people for about a week or two, at Tupelo, as an example. We gave them a week or two training as to the use of electrical appliances, as to how many a family with an income of, say,

$1,500 could afford in the way of electrical appliances at these rates; and they went to Tupelo, and went from house to house and explained the best way to use electric appliances, refrigerators, and so on and so forth. That was before these utensils were offered by the dealers. We are not selling anything ourselves. We put on this short campaign to tell the people about the use of the electrical utensils.

Senator HAYDEN. But you are not in the business of selling utensils. Dr. MORGAN. We have no utensils to sell.

Senator HAYDEN. In our own case, in Arizona, in the Salt River Valley project, the Salt River Valley Association was formed, composed of 14,000 farmers on the reclamation projects, and they went into the business of furnishing the farmers' families with all kinds of electrical equipment.

Dr. MORGAN. Yes.

Senator HAYDEN. Established a store.

Dr. MORGAN. We do not do that.

Senator HAYDEN. And bought the equipment at wholesale and sold it at a discount to the farmers, at a considerable saving to them.

Dr. MORGAN. We believe that with these low rates that people can afford more appliances than they had before. Unless they know how to take care of them you would find some of the utensils out of use for months at a time, because the people do not know how to adjust equipment, and with a short training we can make this much more effective.

Senator DICKINSON. Talking about advertising, are you running advertisements of the sort that I show you here [exhibiting newspaper clipping "T.V.A. electricity for all"], appearing in the Chattanooga News, April 17, 1934?

Dr. MORGAN. That advertisement is by the Tennessee Electric Power Co. That is an insignia that is put upon the appliances that are approved by the Tennessee Valley Authority. We will not help in financing, that is, this Electric Home and Farm Authority will not help in the financing of any appliances which have not been approved. We ask our technical committee to go over any utensil, that is, any appliance that is offered and that is a part of this program, and if they approve them, we allow this insignia to be put upon them and the householder knows that it meets in quality and price the standard that we have set. That is the meaning of that insignia.

Senator DICKINSON. Under date of February 6, 1934, in the Chattanooga News press reports. Dr. Morgan said:

Muscle Shoals is going to be the turning point in American history", he continued. Plans are under way, he revealed, for the manufacture of elemental soil foods at the Shoals plants.

And then you go on to discuss

Dr. MORGAN. I beg your pardon, but that is Dr. H. A. Morgan speaking, another member of the board. He is no relation of mine. Senator DICKINSON. I thought that it referred to you.

But, about all I want to say in conclusion is that the compass of your job, as you get it, is not only to put on a demonstration with reference to the production of electricity at a rate that you think is very advantageous to the consuming public, but it is also to rehabilitate practically every phase of private life in that entire locality, then; is that right?