Mr. WOODRUM. The items for other obligations and personnel seem to be the same.

Mr. BEEBE. They are

Mr. WOODRUM. When will that survey be completed?

Mr. BEEBE. That is a continuing survey.

NATIONAL DEFENSE ACTIVITIES

Mr. WOODRUM. You also have the following item for National Defense activities:

National-defense activities: For all necessary expenses to enable the Federal Power Commission, during the fiscal year 1942, to continue to perform the functions or activities for the performance of which, during the fiscal year 1941, the Federal Power Commission received ann allocation of funds from the appropriation "Emergency fund for the President" contained in the Military Appropriation Act, 1941, including the objects for which and subject to the conditions under which such allocation was expended during the fiscal year 1941, $150,000.

ALLOCATIONS FROM PRESIDENT'S EMERGENCY FUND

How much of that amount was allocated out of the President's emergency fund?

Mr. SECHREST. The amount was $100,000 for the current year, covering 58 positions on a 6-month basis.

Mr. WOODRUM. What was the date of that allocation?

Mr. SECHREST. November 15.

Mr. WIGGLESWORTH. Out of the War Department or Navy Department fund?

Mr. SECHREST. The War Department fund.

CIVIL SERVICE STATUS OF EMPLOYEES

Mr. WOODRUM. You now have how many people on that roll? Mr. SECHREST. We do not have any as yet. The program is estimated on a 6-month-average employment basis.

Mr. WOODRUM. Are they to be civil service?

Mr. SECHREST. They are to be from civil service.

Mr. WOODRUM. All of them?

Mr. SECHREST. Yes, sir.

Mr. WOODRUM. Are you contemplate increasing the average to 58 full-time employees in 1942?

Mr. SECHREST. The same number of positions, but on a full-year basis of employment.

Mr. WOODRUM. They are all civil-service employees?

Mr. SECHREST. They are all civil-service employees under the terms of the Military Appropriation Act, as I interpret it.

STATEMENT OF SALARIES AND POSITIONS REQUESTED FOR NATIONAL DEFENSE ACTIVITIES

Mr. WOODRUM. Will you submit a statement for the record showing the types of positions and the salary ranges?

Mr. SECHREST. Yes, sir.

Statement showing, by organizational units, additional personnel required for National defense activities during the fiscal years 1941 and 1942

NOTE.-Funds to cover the foregoing positions on the basis of 6 months' employment during the fiscal year 1941 have been provided for by an allotment from the "Emergency fund for the President, War." The estimates for the fiscal year 1942 cover employment for the entire year.

Mr. WOODRUM. The sum of $24,420 is for other obligations?
Mr. SECHREST. Yes, sir.

NATURE OF WORK OF COMMISSION UNDER DEFENSE PROGRAM

Mr. WOODRUM. What is the general nature of that extra work given your Commission by the defense program?

Mr. TATE. The Commission has been working on these defense studies for some time.

Mr. WOODRUM. Out of regular funds?

Mr. TATE. No, out of special emergency funds we had in 1938, with a joint survey with the War Department. This was later taken over by the National Defense Power Committee and, as it had its own funds, the temporary force employed by the Federal Power Commission was transferred to that Committee. The Commission assisted the Committee by the loan of its engineers to supervise and direct.

Considerable information has been collected along this line, which formed the basis of some of our present studies.

But as of June 14 of this year the President called on the Federal Power Commission to make certain studies and maintain contacts with the War and Navy Departments and other Government agencies that are placing these orders for national-defense materials, and to see that adequate supplies of electric energy were availble.

He also requested the Commission to obtain monthly reports from the electrical utilities on their loads and capacities, and plans for future installation of additional capacity, and in cases where companies were unable or unwilling to put in additional capacity, to make specific recommendations with regard to the capacity needed.

The early part of the period after June was the period in which we were organizing the work and having conferences with the utilities, doing general planning of the work and collecting information, and getting the report forms ready.

Monthly report form blanks are now going out regularly to utilities which are reporting on that form information with regard to their present loads and capacities, their estimated loads for the next 3 months, and their estimated maximum within the next 12 months and the capacity which they have on order or under construction to meet the estimated loads. This report which the Chairman handed you was the first of a series of monthly reports on electric power requirements and power supply.

We are also obtaining from the electric equipment manufacturers monthly reports which show the number and sizes of steam turbine generators and water wheels and water-wheel generators on order, and their scheduled delivery dates.

WORK OF COMMISSION UNDER OTHER EMERGENCY

PURPOSES

ALLOCATION FOR DEFENSE

Mr. WOODRUM. You said this work had been carried on for some time prior to this allocation of funds from other sources?

Mr. TATE. I meant that previous studies had been made--
Mr. WOODRUM. By the Power Commission?

Mr. TATE. Yes; by the Power Commission, with emergency funds. Mr. WOODRUM. Will you file for the record a statement of those allocations, the dates of them, the number of people employed, and the sources from which the funds were allocated?

Mr. TATE. Yes, sir.

Mr. OLDS. May I qualify that? What Mr. Tate had in mind, I think, was the period in which the Federal Power Commission supplied a technical staff for the National Defense Power Committee. That is with reference to the emergency funds.

Mr. TATE. Before that we had emergency funds for the Federal Power Commission for the joint electric power, in war study with the War Department, which work was later taken over by the National Defense Power Committee, and the Federal Power Commission's engineers supervised that work for that committee.

Mr. WOODRUM. Will you file a statement for the record about that? Mr. TATE. Yes, sir.

(The statement above referred to is as follows:)

NATIONAL DEFENSE ACTIVITIES

The Federal Power Commission has been engaged in making studies of the power required for the national defense for the past several years, such duties being a part of its functions under the provisions of Executive Order No. 6251 dated August 19, 1933, designating the Federal Power Commission as an agency to aid the Federal Administrator of Public Works under the provisions of title II of the National Industrial Recovery Act. With the passage of the Federal Power Act in 1935, the Commission was given authority to collect information for national defense and other purposes and certain emergency powers. It carried on its power survey, therefore, under its regular appropriation. In 1938, at the request of the War Department and by direction of the President, the Federal Power Commission undertook to bring up to date its studies on electric power needed for national defense. For this purpose there was allocated the sum of $50,000 from funds available under the Emergency Appropriation Act for the fiscal year 1935. Of the amount allocated there was expended approximately $32,600.

Approximately 50 temporary employees were engaged for this purpose. Later the work was taken over by the National Defense Power Committee set up at the request of the President in September 1938, and the temporary employees were transferred to that agency. The engineers employed by the Commission's

Division of Electric Resources continued, however, to supervise the national defense studies of the National Defense Power Committee and it is only through experience and information collected by the Commission during all of these previous studies that it was able, in June 1940, when directed by the President, to undertake at once, with its present staff, the handling of the national defense activities of the Commission. A skeleton staff was formed with approximately 55 of the regular employees of the Commission who were assigned to this, work, These include all of the employees of the Division of Electric Resources except five and in addition thereto, several of the employees of other divisions of the Commission.

The set-up of the organization for handling the national defense activities follows along functional lines—that is, one group analyzes all of the orders placed by the War and Navy and other Government departments for national defense, to determine the sources of the raw materials and semifinished products, where the products will be manufactured and the amount of electric energy that will be required. This is a highly difficult technical undertaking as for example, an order placed for destroyers will involve tracing not only the fabrication of steel plates and steel castings, but also all of the gun forgings and mounts, the propulsion machinery, boilers, engines, turbines, etc., and all of the other miscellaneous items that are involved in the construction and erection of destroyers at the particular yard which has received the order.

This group of employees, known as the Power Requirements Section, is also sending out questionnaires to all of the large industries in the United States to ascertain what were their past power loads and what loads they expect to obtain in the near future, whether plants have their own electric generating facilities or purchase their power supply, or both, and the extent or amount of power required by the industrial plants for the production of any orders which they may have for the United States Government, or for others supplying equipment to the United States Government.

Information is collected monthly from all of the principal electric utilities which indicates what their past loads actually were and what their expectations are for the next few months, the generating capacity which they have available in order to meet these loads, and information regarding the shape of the daily peak load during the month.

The Power Supply Section is engaged in continuously checking up all over the country the generating capacity which is available by the electric utilities or under construction and that needed in the future, and the equipment on order at the works of the various manufacturers of steam turbine generators, water wheels, and water-wheel generators, whether there is any conflict between these orders and those for the Navy or Army, and whether there is any need for priority in securing production of electric generating equipment needed to supply national defense loads.

At the present time there are about 51⁄2 million kilowatts of electric generating capacity on order, of which 31⁄2 million kilowatts consist of steam-turbine generators and 2 million kilowatts of water wheels and water-wheel generators. Even with these additions which are scheduled for 1941, 1942, and 1943, it appears that in some areas there will be critical situations in power supply during 1941 and 1942.

The Power Supply Section also investigates all of the interruptions to service in major areas and supervises the investigations made by the regional offices. Recently, interruptions to service were investigated in Richmond, Va.; Alexandria and Arlington County, Va.; Providence, R. I., and Amarillo, Tex.

The Power Supply Section has also made investigations of the need for additional power in Alexandria and Arlington County, Va.; Langley Field and Norfolk, Va.; San Diego, Calif.; Central and Southern California; Arizona; Idaho; Utah; Florida; and North and South Carolina, and is now making a study of the need for additional capacity in 1943 in the Tennessee Valley area.

The defense staff has also been investigating requirements for power by the United States naval stations, army camps, and the new munitions and other national defense plants and works in close cooperation with the National Defense Commission, War Department and the Navy, and other governmental agencies. Recently the staff was able to assist the United States Naval Torpedo Station at Newport, R. I., in securing additional power for its expansion at a favorable rate. Power shortages are now developing in various sections of the country due to the rapidly expanding industries and the effect of national defense production. Out of the present program of 17 billion dollars appropriated by Congress, approximately 9 billion dollars have been awarded in contracts, but these are

not expected to be in full production until early in 1941. Despite the fact that the national-defense loads are not yet very great, tremendous increases in loads are already taking place and may cause serious shortages, in some of our vital war material areas. For example, in the Niagara Falls region it is reported that the peak load this year is 40 percent in excess of the peak load for 1939 and that the company not only is supplying all of the power it can from Niagara Falls and al it can import from Canada, but it is also operating its steam plants at Buffalo at full rated capacity, One large customer there, which in 1939 had a demand of about 80,000 kilowatts, has this year increased its demand about 100 percent to 157,000 kilowatts. In the Detroit region it is reported that the Detroit Edison Co.'s production for the week ending November 30 was 30 percent in excess of its power production for the corresponding week in 1939. Other and similar increases in power loads are taking place in several parts of the country. The present staff of the Commission cannot keep up with these rapidly expanding loads and even with the additional employees to be hired from the special allotment of funds for the present fiscal year it is anticipated that as defense orders get in production the power requirements in various sections of the country will jump up quite rapidly, creating threatened power shortages in many areas and requiring the full cooperation of the Commission and the utilities to work out temporary measures to supply power until new capacity can be provided.

NEED FOR INCREASES DUE TO NATIONAL DEFENSE ACTIVITIES

Mr. WIGGLESWORTH. Under national-defense activities, I notice reference to a plan which is not broken down, in connection with power requirements, including a power requirements section, a power supply section, a liaison section, and so forth. It seems like a pretty complicated set-up for the duties as set forth in the justification, which seem to be largely duties of investigating and maintaining contact with industry and with the Government agencies.

Why do we need such a substantial increase for these so-called defense activities?

Mr. OLDS. Perhaps the titles make it seem a little wider than it actually is.

The work involves first the compiling and analyzing the reports of the companies on their loads and available capacity.

Mr. WIGGLESWORTH. You have done more or less of that all along, have you not?

Mr. OLDS. Yes; we have done this to a considerable extent, but it has been done on an annual basis. Now it is on a monthly basis, and with a good deal more precision in load analysis and as to the type of power available. That covers what is termed the "power supply section." They are analyzing the monthly returns.

I might clarify one thing in reference to the defense situation which I think was not quite understood as the result of this discussion, and that is this: A portion of the defense work has been carried on and will continue to be carried on by members of the regular staff under the regular appropriation. To that extent we are deferring regular work and using about 50 members of the regular staff, either for part time or full time for this defense work.

Mr. FITZPATRICK. How does the prosecution of your regular work compare with its progress before you had this defense work?

Mr. OLDS. There is a certain deferring of the regular work. Mr. WIGGLESWORTH. How can you do that defense work if this additional work of 58 people is on regular work?

Mr. OLDS. You are talking about additional employees?

Mr. WIGGLESWORTH. I am talking about the national defense set-up of 58 workers, with other obligations of $24,420. Mr. OLDS. They are all working on special work.