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F&>i&UL w s m s im a d b ib h ib a io s OF F0B1IG YCEK3 ?MAmWQWB . . Jim® 18, 1908. Hon* Key Httsmn, U n ite d S t a t e s Se n a te , h a sh in g t cti t 3* C* My Soar Senator Pittman: I have your latter of Jan® 7, 1935 Inquiring Aether the fublic tor if® Admin istratl on will make loans and grants to municipalities for the purpose of acquiring or entering into c ompetlti on with on existing privately owned electric power cft water system which is satisfactorily serving the corirmnity* fhe Xbhl io forks, ^dsinistration w01- not make loans or grants for the sole purpose of purchasing: or otherwise acquiring'existing utility systems* fhe puspose® of the Bsiergency'Boliaf Appropriation Act of 1935 are to provide relief, work roller and to.increase er;pa.oymsnt by providing for useful projects* Sons of these purposes would be directly served by aiding municipalities In the- acquisition of axis ting- systems ? ani we. would not be authorised to finance projects which have such acquisition as their sol® objective# Bio Administration will* however, taake loans for the construction of rrmnlaipally creied power and1 water systems when at.eh projects are sound front a social, economic and engineering point of view* Bie question of public policy is for the municipality to pass upon* &vsry such project will be Judged' on its merits Just as any other project tmul& be* Whether a proposed municipal utility would enter into competition with an existing plant Is a factor to be token into account, but the elre ^stance of possible corapetitl on would not of itself prevent a loan or grant being made* Sincerely yours, (%d) HABOhD I* ICKS3, Administrator * ( c o p y *