Rural Electrification 



(Continued from page 18) 

 payment of its obligations to REA when 

 they fall due. 



This is no more, and no less, than REA 

 must require of every other agency with 

 which it does business. 



We f>re ready to extend to coopera- 

 tives one form of special service — advice 

 as to organization and methods. 



A staff member, well-acquainted with 

 cooperative methods, has been assigned 

 to enter into preliminary discussions, and 

 to advise cooperatives as to what is nec- 

 essary to safeguard REA's loans. 



One way of helping to start a power 

 and light project for your neighborhood 

 is to discuss plans with your county ag- 

 ricultural agent. He may know of other 

 people who also want electricity, and 

 who can unite their efforts with yours. 

 He may also know of others who pro- 

 pose to build electric lines in your coun- 

 ty, so that your line can be combined 

 with other lines to make up a project. 



Electricity on-the farm must do more 

 than light the house and pump the wa- 

 ter, in order that rural power and light 

 projects may be established and operated 

 successfully. Electricity for lighting 

 alone will not yield a sufficient return 

 to warrant building a project. 



To make a project economically sound 

 and self-supporting it will be necessary 

 that as a general rule an electric re- 

 frigerator, kitchen range, or water heat- 

 er be used in each household, or else that 

 a piece of electrical farm equipment, 

 such as a milk cooler or a feed grinder, 

 or a utility motor, be used on the farm. 



The greater the extent to which the 

 farmer makes use of his electric supply 

 to operate farm machinery or house- 

 hold appliances, the greater the contri- 

 bution he will make to the successful and 

 sound operation of the system. On the 

 other hand, as the farmer's consumption 

 of electricity increases with the use of 

 such equipment, the price per unit at 

 which that electricity will be sold to 

 him will decrease. Lower unit prices, as 

 has been amply demonstrated, quickly 

 lead to larger use. 



Rural electrification is being under- 

 taken with the assurance of the whole- 

 hearted cooperation of the American 

 Farm Bureau Federation and other farm 

 groups, the public utility industry, the 

 n'anufacturers of electrical and plumb- 

 ing equipment, the Master Plumbers As- 

 sociation, and various other agencies. 

 Many of these groups see in REA's pro- 

 gram, not only a new standard of farm 

 life, but an increase in industrial activity 

 which will help substantially to lift the 

 Nation out of the depression. 



REA will lend the money to build rural 

 electric lines. No grants or subsidies are 

 contemplated, rural lines being expected 



20 



to pay for themselves. The loans will 

 be made to those undertaking to build 

 and operate the lines. 



Normally, borrowers will be allowed 

 twenty years to pay back the loans. The 

 normal interest rate will be quite low, 

 only three per cent. 



REA is so confident of the ability of 

 these projects to pay their own way that 

 under suitable conditions, it will lend the 

 entire cost of building the lines, in areas 

 now without electric service. 



No farmer will be required to mort- 

 gage his home. Loans to private utility 

 companies will usually be secured 

 through the general credit of the bor- 

 rower. In certain instances, and espe- 

 cially in loans to non-profit agencies, the 

 line itself will pro\ ide the security. 



The erection of the lines will be di- 

 rected by contractors, utility companies, 

 states and subdivisions of the .states, 

 farmers, and in certain instances, by the 

 Federal Government itself. 



It is intended that purchases of house 

 wiring, appliances and sanitary equip- 

 ment shall be made on an easy payment 

 plan. Installments probably will be pay- 

 able monthly. 



Payments would probably be spread 

 over the useful life of the appliances 

 and equipment, and over a long period 

 for the wiring. The interest charge 

 would be kept down to say three per 

 cent. Consequently, the monthly pay- 

 ments required for many appliances 

 would be far less than those now in 

 effect. 



In approaching REA about a loan to 

 build rural lines, it is extremely helpful 

 to furnish us at the outset with certain 

 specific information. Particularly, we 

 need to know whether the private power 



company nearest to you is willing to co- 

 operate, what other local group might 

 build the line, and about how big the 

 project probably would be. We will do 

 most of the figuring if you will give 

 us the facts. 



To guide you in preparing a brief 

 statement of your local situation, we 

 present herewith an' outline of the in- 

 formation which we would like to have 

 you send us. Simply write your answers 

 in the blank spaces provided. Then tear 

 off the pages containing the questions 

 and answers, and mail them to Morris L. 

 Cooke, REA .Administrator, 2000 Massa- 

 chusetts Avenue, Washington, D. C. 



Along with these answers, we would 

 like to have you send us a county, town- 

 ship, or automobile road map which 

 shows clearly all the roads on which 

 farms are located. Put a cross at each 

 point on the map where there is a pros- 

 pective user, who would be willing to 

 pay for low cost electricity if lines were 

 built. Indicate on the map the length of 

 the proposed lines. This may be deter- 

 mined by driving an automobile over the 

 road and taking the speedometer read- 

 ing. On the same map draw lines to 

 show the existing electric lines from 

 which new lines to serve your neighbor- 

 hood might be extended. 



All this information will be helpful 

 in making an estimate of the possibilities 

 for rural electrification in your area. 



INFORMATION DESIRED IN AP- 

 PLICATION FOR RURAL ELECTRI- 

 FICATION LOAN 

 1. ORGANIZATION INITIATING 

 PROJECT 



A. Name of group 



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4-H CLUB WINNERS AT STATE FAIR. "They All Made Their Own Dresses." 

 ,Left to right: Arline Jay, Oswego, party dress; Martha Finley, Lawrenceville, church dress; 

 Mary Ellen Trenter, Virginia, house dress; Dorothy Whitlocl, Litchfield, best dress; Ruth Irwin, 

 Port Byron, school dress; Louise Bolin, Sullivan, tailored school dress. 



1. A. A. RECORD 



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