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Show and 11 rural electric cooperatives, as well as TVA. Approximately a dozen cities and towns in the area operated their own distribution systems prior to 1933 and looked upon these systems as a source of supplementary municipal revenues which, with high power rates, made it possible to keep taxes low. The great majority of these cities and towns will- ingly joined in the regional power program and ac- cepted the Government view that power revenues should not be used, apart from appropriate pay- ments as or in lieu of taxes, for general municipal purposes; and that instead power rates should be kept low to contribute the advantages of ample use of electricity to homes and farms, stimulate eco- nomic activity, broaden the tax base, and provide other benefits. Two cities in the area, Dyersburg and Covington, Tenn., still distribute electricity at non-TVA rates using their own power generation facilities. Union City, Tenn., followed the same course, but recently, after a referendum, entered into a standard-type contract with TVA. (4) Adequacy of local funds. The per capita income of the area was only 40 percent of the national average in 1933, and is still only about 60 percent of the national average. The relative financial capacity of public and private local or- ganizations has been and is correspondingly low. The lack of local funds has been a real problem. Nevertheless, public services have expanded greatly in recent years. TVA contract funds have been used to support new State activities which contrib- ute to regional improvement. It is significant, how- ever, that sxich funds are provided on a temporary rather than a continuing basis; as soon as the sup- ported activity has won acceptance in the region, it has been financed through regular Government channels, and TVA assistance for the activity has terminated. (5) State and local agency fears of displacement. This apparently has not been a problem in the valley. It often has been suggested in other parts of the country that regional authorities would inter- vene between the States and the Federal Govern- ment, and gradually usurp the States' governmental powers. Had TVA attempted such a course, or had the States or local governments ever feared that it might do so, TVA's relations with them would have been greatly impaired. TVA exercises no governmental authority whatever over the States. The network of cooperative relationships has strengthened the States, added new State agencies and new State responsibilities, and greatly increased the role of the States in resource development and service to the people. As one evidence of this, 1948 State expenditures for resource-related activ- ities in the seven Valley States were 4J/2 times those of 1934. (6) Pressure for attention by some groups. There are a number of organizations in the Ten- nessee Valley, as elsewhere, particularly concerned with some specific aspect of river basin use. This is true in connection with fish and wildlife, agri- culture, public power, forestry, and other activities. In the past, as in the opposition to Douglas Dam, such groups have created troublesome problems. However, no such difficulties were reported for 1950. (7) Educational level of citizens. The average educational level and literacy of the citizens of the Tennessee Valley are below the national aver- age. Fundamentally, this has been the result of low levels of income and inadequate funds for education. This has retarded some actions such as changes in local land use necessary for complete development of the basin. However, significant progress has been made during recent years. The levels of educational attainment in the area are being raised progressively as State and local ex- penditures for education have mounted. The Board of Control for Southern Regional Education is considering an interstate pool of facilities for higher education. Higher educational standards are beginning to be achieved throughout the region. Conclusions The experience of TVA in developing State and local cooperation has shown the importance of stim- ulating local initiative and participation in water and related land resources improvement. While Federal responsibilities for operation of certain basic facilities should be maintained, participation by States and local groups should continue to be encouraged in the valley. The pattern of local-State-Federal cooperation within the Tennessee Valley should be examined carefully for the suggestions it contains and the ex- perience it represents. The success of cities and various cooperative enterprises in financing con- struction of facilities to complement the Federal regional agency's electric program may well be in- cluded in such examination. 762 |