Federal Administration of Rural Electrification

Extract

Origin. The Rural Electrification Administration began as one of the “temporary” and “emergency” units in Roosevelt's collection of alphabetical agencies under executive order 7037 of May 11, 1935. The expressed purpose of the President was to promote the generation, transmission, and distribution of electricity in rural areas. Morris L. Cooke, noted management engineer who had served as a member of the Power Authority of New York when Roosevelt was governor, was chosen administrator. Money for loans to coöperatives, public bodies, and private companies was made available from relief funds, with the stipulation that borrowers must use at least 90 per cent relief labor in construction work. All money was to be repaid; no part of the federal funds was to be used for grants or subsidies.