Agriculture is not nearly the burden on public funds which most people imagine it to be. As you so accurately pointed out, many of the costs attributed to agriculture should, in fact, be attributed to other offices of the Government. On behalf of myself and many fellow ranchers from the State of Montana I wish to thank you for your stand on the position of agriculture in our economy. Very truly yours, JAMES C. TAYLOR. AUSTIN, TEX., February 2, 1965. Hon. GEORGE AIKEN, Senator, Washington, D.C. DEAR SENATOR AIKEN: I have just read an article in the National FarmersUnion Washington newsletter which tells of your efforts on behalf of rural communities who lack adequate water supply. I wish to compliment you on your keen perception of rural water needs. I live in an area that has only surface rainwater for both domestic and livestock needs and nothing you could do for us would help us more to achieve an American living standard than a dependable supply of fresh water. We have an adequate supply of water stored behind a series of dams on the Colorado River above Austin, but we lack the finances to pipe it over the area. If the Federal Government would pay say half of the cost as you propose we could probably pay for a distribution system. Our source of water is not to healthy and our wives can't have automatic washers and proper bath facilities. I know our property would certainly go up in value if our families could enjoy the same privileges as are enjoyed by others in more fortunate areas. Thank you a million for your interest and efforts. This feeling is shared by hundreds of farmers in this area and I could get a petition signed if it would help. A greater degree of economic justice would also help us so we could meet our expenses. With all the help going to so many foreign countries we are glad to have your concern. The fact that you are a Republican makes your concern all the more impressive to us. Keep up the good work and your name will be hailed by many of my neighbors. Thanks and may God bless you even more in the future than he has in the past. Sincerely, JOE WISCHKAEMPER. BOSTON, MASS., February 24, 1965. Congressman ROBERT T. STAFFORD, DEAR CONGRESSMAN STAFFORD: We were pleased to observe the bill recently introduced to the Senate by Senators Aiken and Mansfield, S. 493, which would assist in the development of water systems for rural areas. In our opinion, the recognition by the Federal Government of the need for adequate rural water supplies is long overdue. The enactment of this bill and a subsequent grant of funds would permit the construction of a water supply and distribution system for the towns of Addison, Bridport, and Shoreham, Vt. From your extensive personal knowledge of the plight of the people there, you can appreciate the extreme need they have for a water system. The three towns have formed the Tri-Town Water District No. 1 for the purpose of supplying water to homes and farms in the district. The district has submitted recently an application to the Housing and Home Finance Agency for an advance of funds for preparation of the final construction plans and specifications. The project which we have recommended and which is contemplated in the application involves construction of a water intake works and pumping facility on the shore of Lake Champlain, in Addison, and a network of water mains to many parts of the three-town area. The initial program would include construction of about 80 miles of 4-inch, 6-inch, 8-inch, and 10-inch water mains and would cost about $2.3 million. This cost, amortized over 40 years, ordinarily would be proportioned among the users. It is obvious that the cost to the area farmers in water rates would be excessively high if they had to bear the entire cost. Our estimate of the cost to a farmer with 50 head of cattle would be $486 per year. In formulating the preliminary design of the system, we decided to recommend a network of minimum-sized pipes to assure adequate quantities of water to the entire district now and in the immediate future. Reducing the sizes still further, say one pipe size for the 6-inch, 8-inch, and 10-inch pipes, would result in a saving of less than 15 percent of the entire project cost, but would increase yearly operating cost, would require excessively high pressures, and would not guarantee adequate service to many users at times of high demand. The slight saving involved in reducing pipe sizes can be visualized by considering that regardless of the pipe size within the range of our recommendation, the largest portion of the cost represented by excavation, place of pipe, and backfill remains the same. We therefore feel that assistance cannot come in the form of reduced construction costs. Senate bill 493, if passed, and if matched by supporting legislation by the State of Vermont, will have the effect of preventing economic depressions in many rural areas. A water system constructed with the aid of a grant under the bill will help farmers in the Tri-Town District meet the requirements of the milk ordinance and code of the U.S. Public Health Service, which is to be enforced in Vermont beginning January 1, 1966. If there is no water system available, the dairying industry may be lost to this area. We will be glad to furnish any additional information you may desire. CAMP, DRESSER & MCKEE, Senator AIKEN. There are, I think, four or five other Members of the Senate who wish to submit statements for the record, and they will be given until next week to submit those statements. Governor Rockefeller of New York also plans to submit a statement. Senator HOLLAND. Without objection that will be done, and the exhibits will be included in the record. (The statements referred to follow :) STATEMENT OF HON. CLINTON P. ANDERSON, A U.S. SENATOR FROM THE STATE OF Mr. Chairman, I appreciate your granting me this opportunity to make a few brief remarks in support of S. 1766, to amend the Farmers Home Administration Act of 1961 to give the Secretary of Agriculture additional insured loan authority and to make grants with respect to water supply and water systems, and community planning in rural areas. This legislation has long been needed by rural communities and farm families. Increasing the insured loan authority for the Farmers Home Administration from $200 million to $450 million means we are at last matching a program to fit the need—and the need is great. The provisions for permitting loans up to $4 million and of grants up to 40 percent of the cost of development of community water systems when necessary are sound and realistic in terms of the problems facing many rural communities. This is particularly true in my own State of New Mexico. We not only share the same problem of all other States in having many rural communities in need of water systems, but are also constantly faced with the problem of finding adequate water supplies. Finding and developing these water supplies is often a very costly operation. This cost alone is often beyond the ability of a small community to finance. Then after supplies are found and developed, these supplies may be far away from the area to be served. The cost of distribution lines is, therefore, very high. The only possible way, then, for many small rural communities to get a water system is to get a grant in addition to the loan. Raising the loan limit to $4 million and increasing the size of a community or town eligible to get a loan up to a population of 5,000 is also necessary if this program is to achieve the objectives we demand of it. I think the $450 million annual insured loan authorization is the absolute minimum we should set. This increase will not add to the Federal budget because funds will come from private investors and be insured by the Farmers Home Administration. Years of experience have tested the soundness of the insured loan program in financing the needs of rural America and have clearly proven that rural people are good credit risks. A recent check by my office revealed that the Farmers Home Administration has insured some $940 million in loans. Funds for these loans were advanced by some 3,500 banks and other private investors. I am pleased to tell you that losses on this nearly $1 billion in loans funds are only five one-hundredths of 1 percent. The small loss is more than covered by the insurance fees collected by the agency. The insured loan fund, in fact, shows a surplus of $15 million. For this very reason I hope the Bureau of the Budget does not interfere with the allocation of this insured loan authority as it has in some of the other programs. If private and public lenders want to participate in the development and betterment of rural America, then they should be permitted to do so. STATEMENT OF HON. VANCE HARTKE, A U.S. SENATOR FROM THE STATE OF INDIANA Mr. Chairman, when Senator Aiken introduced this bill last April I was one of the seven original cosponsors and I am happy to have this opportunity to go on record before this committee in support of S. 1766. Two years ago, the then Senator Hubert Humphrey and I cosponsored a similar bill because even then it was evident to many of us that tens of thousands of rural communities were in desperate need of community facilities, particularly water systems, if they were to survive and prosper. It seems to us then, as now, that the best possible way to extend needed assistance to these communities was to increase the insured loan authority of the Farmers Home Administration from $200 to $450 million. In many respects, this is a far superior bill. In addition to raising the insured loan authority, it provides for grants when needed by those communities who cannot bear the full cost of a water system; it increases the loan limit from $1 to $4 million; and it extends the benefits of this great program to more communities by increasing the unrealistic and arbitrary population qualifications from 2.500 to 5,000. Mr. Chairman, I speak from personal, firsthand knowledge when I say this program can mean the difference between the life or death of many rural communities. In Indiana, since 1962, 20 small rural communities have installed community water systems as a result of loan assistance under this program. Within a few more months, 15 more small towns in Indiana will have fresh running water in their homes. In all, more than 45,000 rural people in my State are or will soon be receiving the benefits from this program. When Farmers Home Administration funds for this program were exhausted a few months ago, it had a backlog of 40 applications for association loans from Indiana communities, totaling around $7.5 million. How many more applications would have been filed had not the FHA been forced to stop accepting new applications, one can only guess. But from my mail, I should judge that it would be many times that number. I have personally surveyed most of these Indiana communities which have recently installed water systems and it is absolutely amazing to see the transformation that has taken place. New homes are being built. Small industries have come to these towns. People working in nearby larger cities are coming back to live in their home communities. The towns have a new look and the people have a new spirit. Mr. Chairman. I can think of no program that is more sorely needed or can do more to revitalize rural areas than this one. Amount $2,672, 772 Indiana: Amount insured loans made during 1965 fiscal year through May 31 and estimated value of initial applications on hand as of May 31, 1965 Farmownership and soil and water conservation loans made during the period July 1964-May 31, 1965_. Farmownership and soil and water conservation loan applications on hand May 31 which could not be processed because of lack of funds... Loans to rural groups for water systems and other facilities made during the period July 1964-May 31, 1965-- Applications from loans to rural groups on hand May 31 which could not be processed because of lack of funds___. 5, 504, 000 892, 000 7,500,000 STATEMENT OF HON. ROBERT F. KENNEDY, A U.S. SENATOR FROM THE STATE OF NEW YORK Mr. Chairman, I would like to address a few remarks to the committee concerning S. 1766, a bill to amend the Consolidated Farmers Home Administration Act to aid rural communities in the establishment of water systems. I have joined my colleague, Senator Aiken, and the many others who are sponsoring this bill to support legislative action to provide relief to rural communities suffering from water problems. Although the problem of providing adequate water to each home and farm in New York State and the rest of the country is constantly with us, it is even more severe at present. New York State has been suffering from the worst drought in over 30 years. Communities in upstate New York and along the Hudson River and Mohawk River Valleys have seen that existing water systems will not meet their water needs. They have seen individual pumps and wells dry up. As a result they have had to purchase water, to construct lines to draw water from new sources. Many of these arrangements are temporary by nature and will not meet the needs of these communities over a long period of time. These communities will have to construct permanent water facilities and need assistance in order to do so. S. 1766 will authorize additional funds to the Farmers Home Administration to assist rural areas build water systems. It increases the funding limitations on particular loans for water systems. The increase of $250 million will provide funds to begin to meet the backlog of applications for water systems now awaiting action at the Farmers Home Administration. New York State needs this additional assistance. The rural communities and farmers of New York State cannot meet the demands for water without constructing new water systems. The agricultural revolution by which we have managed to feed our population better with fewer workers depends on our ability to provide capital for activities of this nature. The Farmers Home Administration program will meet this need and provide the water that we require. I ask that the committee have printed as a part of the record of these hearings a release from the Geological Survey commenting on the drought in the Northeast. It provides information of the extent of the problem that communities in the Northeast are now facing. I urge that the committee report favorably on S. 1766 so that prompt action may be taken by the Congress to enact this bill as law. [Geological Survey release, June 8, 19651 PERSISTENT DROUGHT CONTINUES IN NORTHEAST, GEOLOGICAL SURVEY SAYS Reports of river runoff and reservoir and ground-water levels for the month of May from Geological Survey's Water Resources Division specialists continue to show record low or below-normal conditions in southern New England, eastern New York State and Pennsylvania, and northern New Jersey, the Department of the Interior reportetd today. "Unless summer rainfall is considerably and consistently above normal," said Elwood R. Leeson, the Survey's Assistant Chief, Water Resources Division, Washington, D.C., "levels in wells and streams are likely to drop to alltime lows by October, and many northeastern communities face water rationing, parched lawns, dirty automobiles, bans on swimming, increased water-treatment costs, and perhaps some unusually stagnant streams.' Leeson said that the scattered showers and thundershowers of the first week of June did little more than "wet the dust" as far as their effects on the overall drought situation. The Geological Survey's May Water Resources Review-a monthly tabulation of the water situation around the Nation-showed that at the end of May New York City's Pepacton and Neversink Reservoirs located in the Catskills in the Delaware River Basin were only 39 percent full, the lowest level reported for this time of the season since the reservoirs began operation in 1955. Normally, they are nearly full or overflowing by June 1. Reports from the Survey's Water Resources Division specialists in Trenton, N.J., show that the Delaware River at Trenton had an average flow in May of only 5,218 cubic feet per second (3,400 million gallons per day), the lowest May flow since records began there in 1913. Leeson pointed out that, at Trenton, the deficiency below normal flow in the 7 months since November was 1,200 billion gallons, whereas the accumulated deficiency for the previous 3 years of drought was only 2,200 billion gallons. "This accumulated deficiency in flow," said Leeson, "is the equivalent of 1 years of normal flow in the Delaware River." Leeson noted that Wanaque Reservoir, the largest in New Jersey, is at recordlow level; this in spite of almost continuous pumping this past winter from the nearby Ramapo River, and the shifting of part of Wanaque's customers to another water system. Newark's Pequannock reservoirs, and those in the Hackensack River Basin are also far below seasonal normal levels. Only Jersey City's Boonton Reservoir, and the new Spruce Run Reservoir, recently completed by the State in the Raritan River Basin, are nearly full. Another aspect of the water resources situation-ground water (water stored in subsurface rocks)—was noted by Leeson. "Ground-water levels at the end of May," Leeson said, "were generally below normal in the five-State area from Massachusetts to Pennsylvania. In New York about one-fourth of the wells were at the lowest levels since records began. In Connecticut, of seven wells observed regularly each month by Survey hydrologists, three were at record low levels, and three at second lowest levels. In Pennsylvania, 72 percent of the wells observed monthly were below average levels, including most of the observed wells in the southeastern part of the State." Scores of communities in the Northeast drought area, including New York City, have begun to limit the use of water. This rationing now is a prudent measure to help avoid serious water shortages during the coming autumn and winter months. "Stringent rationing can be very effective for cities depending on marginal reservoir supplies such as New York City and many smaller cities in New England," said Leeson, adding that, "for example, New York City reduced the consumption of water in 1950 during a dry period by 20 percent." The Geological Survey hydrologist terms the outlook for water supplies in the Northeast as "bleak." "From May to October," Leeson pointed out, "streamflows and ground-water levels normally decline, even with average rainfall and temperatures. Normally, at the end of the growing season-when the water requirements of vegetation drop-ground-water levels begin to rise. However, if the ground freezes before rain-water soaks below the root zone, the ground-water levels and streamflows may remain low until spring. This happened last winter. It could happen again next winter." "There are some exceptions," Leeson pointed out. "For example, some cities with large reservoir supplies, such as Boston's Quabbin Reservoir, are in good shape. So are the cities that use large rivers for water supply, like Trenton and Philadelphia." "However," said Leeson, "all in all, taking into consideration the more rapid dropping off of streamflow in recent months, and the fact that neither surface nor ground-water reservoirs recharged to anything near normal levels this winter and spring, we would have to term the current Northeast drought, especially in southeastern New York and northern New Jersey, as definitely greater in both severity and duration than the previous record drought in these areas during 1929-32." "Perhaps the most widespread problem from the drought," said Leeson, "will be dried-up supplies for farms and country homes that depend on shallow wells. On areas where present ground-water levels are 2 to 4 feet below normal for this time of year, a relatively large part of the normal supply to a shallow well is not available." STATEMENT OF HON. WINSTON L. PROUTY, A U.S. SENATOR FROM THE STATE OF VERMONT Mr. Chairman, it is a privilege to be heard today by this distinguished committee on S. 1766 introduced by Senator Aiken. I am glad to have been a cosponsor of it and to add whatever assistance I can to urge this committee to act favorably on it. There are thousands of rural people in the State I represent and millions throughout rural America whose needs would be overlooked, except for the |