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H E A R IN G

BEFORE THE

m

COMMITTEE ON

INTERIOR AND INSULAR AFFAIRS 

UNITED STATES SENATE

\ EIGH TY -SE VE NT H CONGRESS

FIRS T SESSION

ON

TH E NOMINATION OF KENNETH IIOLUM, OF SOUTH DAKOTA, 

TO BE ASSISTANT SECRETARY OF THE INTERIOR 

(WATER AND POWER)

JANUARY 26, 1961

Pr inted for the use of the Committee on Interio r and Insular Affairs

64844

V co

S

s & < / i r r ^ ’

U.S. GOVERNMENT PRIN TING OFFICE

WASHINGTON : 1961
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COMMITTEE ON INTERI OR AND INSU LAR AFFAIRS

CLIN TON P. ANDERSO N, New Mexico, Chairman

HE NR Y M. JACKSON, Washington

ALAN BIBLE, Nevada

JOH N A. CARROLL, Colorado

FRA NK CHU RCH, Idaho

ERNEST ORU ENING, Alaska

FRA NK E. MOSS, Utah

OREN E. LONG, Hawaii

QUENTIN N. BURDICK , North Dakota

LEE METCALF, Montana

HENRY DWORSIIAK, Idaho 

THOMAS H. KUC HEL, California 

BARR Y GOLD WATE R, Arizona 

GORDON ALLOTT, Colorado 

HIRA M L. FONG, Hawaii 

JACK R. MILLER, Iowa

J. J. HIC KEY, Wyoming

Richard L. Callaghan, St aff Director

N ell D. M cSherrv, Clerk

Stewar t French, Chief Couruel

H
NOMINATION OF KENNETH HOLUM TO BE AN

ASSISTANT SECRETARY OF THE INTERIOR

TH URSD AY , JA NUA RY 26 , 1961

U.S. Senate,

Committee on Interior and

Insular Affairs,

Washington, D.C.

The committee met, pursu ant to other business, at 10:35 a.m., in 

room 3110, Senate Office Building, Senator Clinton P. Anderson 

(chairman of the committee) presiding.

Present: Alan Bible, of Nevada; John A. Carroll, of Colorado; 

Frank Church, of Idaho; Ernest Gruening, of Alaska; Frank E. Moss, 

of Utah; Oren E. Long, of Hawaii; Quentin N. Burdick, of North 

Dako ta; Lee Metcalf, of Montan a; J. J. Hickey, of Wyoming; Henry 

Dworshak, of Idaho; Barry Goldwater, of Arizona; Gordon Allott, of 

Colorado; Hiram L. Fong, of Hawaii; and Jack Miller, of Iowa.

Also present: Richard L. Callaghan, staff director.

The Chairman. We now take up the nomination of Kenneth Holum 

to be an Assistant Secretary of the Interior.

Senator Burdick, of North Dakota, has expressed a desire to 

introduce Mr. Holum.

STATEMENT OF HON. QUENTIN BURDICK, A U.S. SENATOR FROM 

THE STATE OF NORTH DAKOTA

Senator Burdick. Thank you, Mr. Chairman.

I am very pleased to hear the nomination of Mr. Holum. I have 

known him for a great many years. He comes from one of the old 

pioneer families of South Dakota and has devoted most of his adult 

life to the problems concerning water and power, which are problems 

we are all concerned with in the northwest area.

He succeeds a man who was also from the northwest area.

I know that, from my personal association with Mr. Holum, he is 

aware of all our problems in the Missouri River Valley. I consider 

him fully equipped to meet those problems.

He has had a formal education in the public schools, and holds a 

bachelor of arts degree from Augustana College.

As I say, most of his adult life has been concerned with the problems 

of water and power. He has been active in REA associations and 

RTA associations.

I believe in the last 5 years he has been more active in the field 

involving the public, involving the consumers. So I think tha t he is 

experienced in all fields and can represent all interests.

I can’t think of a finer appointment for this particular position.

Thank you, Mr. Chairman.

1
2 NOMINATION OF KE NN ETH HOLUM

Th e Chairma n. Do you have any sta temen Ct o ma ke, Mr. Hol um?

Mr. H olum. Mr. Ch air ma n, I do no t have a prepare d sta temen t. 

My bio gra phical mate ria l has been subm itted to the com mittee.

Th e Chair man. W ith ou t objection, th at biographical ma ter ial will 

be pla ced into the record at this point.

(Th e material refe rred to follows:)

K e n n e t h H ol um

Born Groton, S. Dak., August 30, 1915.

Married Solveig Myrwang.

Children: Six children—Margaret, Kenneth, Jr., John, Robert, Charles, Knute.

Son of the late Knute Holum, grandson of Nels Holum, who homesteaded and 

established the Holum farm.

Church affiliation: Lutheran.

Educa tion : Attended public schools, Henry Township, Brown County, S. Dak. 

Gradu ated from Groton High School in 1932, B.A. degree Augustana College, 

Sioux Falls, S. Dak., 1936.

Experience: Managed and operated a South Dakota farm from 1933 until the 

present. Taught in the Senior High School, Highmore, S. Dak., 1940-41.

Member, South Dakota Legislature 1949 through 1953. Candidate, U.S. 

Senate, 1954, 1956. Member, Missouri Basin Survey Commission appointed by 

President Trum an, 1951-52.

Vice president, Northern Electric Cooperative (REA) 1948 through 1960. 

Secretary, East River Electric Power Cooperative (REA) 1950-54. President, 

James Valley Cooperative Telephone, 1952-60. President, South Dakot a Rural 

Telephone Association, 1954-60. Executive secretary South Dakota Association 

of Cooperatives, Jan uary 1957 through Jan uar y 15, 1961.

President, Mid-West Electric Consumers Association, Jan uary to July 1957; 

executive director, July 1957 through Jan uar y 15, 1961; chairman, Western 

States Water and Power Consumers Conference, 1956 through Jan uary 15, 1961.

Supervisor, South Brown Soil Conservation District, 1950-54. Vice chairm an, 

South Dakota Association of School Boards, 1951 through 1954.

Political affiliation: Democratic.

Present position: Farmer, Groton, S. Dak.

Tem porary residence: 2401 H Street NW., Washington, D.C.

Legal residence: South Dakota.

Mr. H olum. I am here to answer any que stio ns th at the com mittee 

migh t wish to inq uire of me.

1 p erh aps should say that ou tside of a mo des t farm in South D ak ota, 

I have no inter ests outside of th e Go vernm ent, and I am sure I have 

no conflict of interest prob lems.

Th e C hairman. Your paper shows some activ itie s wi th RE A and 

the Ru ral Teleph one A ssoc iatio n. W ha t experience, if any, have yo u 

ha d in the org anization or dev elo pm ent or opera tion of rec lam ation 

proje cts and the dev elo pm ent o f the wa ter power?

Mr. H olum. In 1951 I served as a me mb er of the Missouri Basin 

Survey Commission. I was appoint ed by Presiden t Tr um an .

M y colleagues were six of th e d isti nguished M em ber s of the C ongress 

and fou r othe r citiz ens from the basin.

I sp en t practic all y all th at ye ar becoming ac qu ainte d with the 

pro ble ms of the Missouri Basin, bu t we also had some o pp or tuni ty to 

get ac qu ainted with problems o uts ide the are a of the Missouri Basin.

Fo r the last 3 y ears I have been exe cutive direc tor of the Midw est 

Electric Con sum ers Association. I have dir ected mo st of my at te ntion to pro blems con nected with the dev elo pm ent of water reso urces 

in the Mis souri Basin.

Th e C hair man. Wh ere is the h ea dq ua rte rs of the M idw est E lec tric 

Consu me rs Asso ciation?

Mr. H olum. Aberdeen, S. Da k.
NOMINATION OF KE NN ET H HOLUM 3

The Chairman. How’inuch of the west does it cover?

Mr. Holum. The eight States of the upper Missouri Basin.

The Chairman. Senator Dworshak?

STATEMENT OF HON. HENRY DWORSHAK, A U.S. SENATOR FROM 

THE STATE OF IDAHO

Senator Dworshak. Mr. Chairman, Senator Miller of Iowa, a 

member of this committee, is detained in his State today and has 

asked me to submit three questions to Mr. Holum.

First, Mr. Holum, are you in favor of a Missouri Valley Authority, 

or some similar single agency having control over development and 

uses of the Missouri River?

Mr. Holum. Senator, if I have the peasure to serve in the Department of the Interior, I shall hope tha t the Department of the Interior 

will be able to execute its responsibilities in such a way tha t the 

Congress of the United States is confident tha t the resources of the 

Missouri Valley are being properly managed.

The Chairman. That is not really an answer, is it?

Mr. Holum. Senator, would you read the question again? Perhaps I missed the question.

Senator Dworshak. The question is: Are you in favor of a Missouri Valley Authority or some similar single agency having control 

over development and uses of the Missouri River?

Mr. Holum. If you want a yes or no answer under the existing 

circumstances, the answer would be “No.”

Senator Dworshak. The second question is: Do you favor emphasizing power development over navigation development of the 

Missouri River?

Mr. Holum. Senator, this, of course, is a question very closely 

related to questions tha t have been discussed with my two superiors. 

It becomes a question involving the interests of the Upper Basin 

States against the Lower Basin States, in this case of the Missouri 

Basin.

I favor full multipurpose development of all of our water resources. 

I think it is absolutely essential for the future welfare of our country 

that we do. I think we must be careful as we develop these water 

resources to make sure tha t we make the maximum beneficial use of 

those water resources.

As I serve in the Department of the Interior, I shall be representing 

certain water users of the Missouri Valley.

The U.S. Corps of Army Engineers has other duties, of course. I 

shall, of course, vigorously represent the interest of the Department 

of the Interior.

Senator D worshak. The third question is: If priority for power 

development of the Missouri River over, for example, navigation 

development, is to be given, do you think tha t this can be done without changing the Flood Control Act of 1944?

Senator Miller has indicated tha t there is no mention of power 

development in this act.

Mr. Holum. I think that Senator Miller is asking me a legal question. As a representative of the Department of the Interior, I am 

not completely competent to answer at this moment. I think I can 

refer back to what I said previously: that I believe in the full multi-
4 NOMINATION OF KE NN ET H HOLU M

purpose, comprehensive development of our water resources, and t ha t 

tha t involves a maximum amount of conservation in all areas.

Wha t the legal status would be, whether or not this situation exists 

or could exist, without an act of Congress, I do not know.

The Chairman. Mr. Holum, I have two questions tha t were sent 

to me by Senator Long of Louisiana. I think it is appropriate tha t 

they be asked.

The first one is: Do you advocate operation of the reservoir systems 

of the United States in a manner such tha t navigation may be 

jeopardized?

Mr. Holum. These questiqns are all very closely related. I can 

assure the Senator tha t while I have been extremely busy in the last 

days t ha t I have been in Washington, I have devoted as much time as 

I could to studying the proposed filling criteria for the Colorado River 

projects, because I think the problem of reservoir filling in the Missouri Basin is a critical problem.

The Chairman. I am not familiar with what Senator Long is 

alluding to, but we have heard stories about the program for slack 

water navigation in the Missouri River below Sioux City and so forth.

I assume that, since his State is on the Missouri River, he wonders 

whether the primary emphasis is going to be such tha t navigation will 

be jeopardized.

Mr. Holum. The U.S. Corps of Army Engineers has the responsibility for operating not only the main stem dams but also the navigational projects on the Missouri River.

It has been my experience as a citizen of South Dakota tha t the 

Corps of Army Engineers is competent in representing those interests.

The Chairman. I will read you the next question.

Do you agree tha t the Senators, Representatives, Governors and 

other officials elected under a statewide basis, from the States which 

have a conflict between fish and wildlife regulations and the needs of 

navigation and other purposes are best able to speak for the overall 

requirements of their State, and, if not, who is?

Mr. Holum. Well, certainly I would recognize th at the Governors 

and the elected officials of any State should be in a position to be 

highly competent to speak for the interests in their States.

The Chairman. Senator Bible?

Senator Bible. I have no questions.

The Chairman. Senator Goldwater?

STATEMENT OF HON. BARRY GOLDWATER, A U.S. SENATOR FROM 

THE STATE OF ARIZONA

Senator Goldwater. I have a few questions, Mr. Holum.

I note tha t recently in the midwest the electric users association, 

of which you have been executive director, adopted a resolution which 

said, in part:

We believe tha t the manage ment agency in the Missouri Basin should construct 

the transmission facilities necessary to accomplish the economical distribu tion of 

Federal and non-Federal power to the preference customers.

Does not this mean that the Federal Government should provide 

transmission facilities to bring non-Federal power to preference 

customers?
NOMINATION OF KE NN ET H HOLU M 5

*?Mr. Holum. I was not present when the resolution was adopted.

I think the resolution refers to non-Federal power, tha t the members 

of the Midwest Electric Consumers Association were concerning themselves principally with power generated or to be generated by facilities 

that they might have, and tha t they are hopeful tha t that would be 

possible, to use the capacities in the Federal transmission system, 

which is built or might be built, to use the excess capacities in that 

transmission system.

Senator Goldwater. I do not think I have any further questions. 

The Chairman. Senator Bible.

STATEMENT OF HON. ALAN BIBL E, A U.S. SENATOR FROM THE 

STATE OF NEVADA

Senator Bible. What would your interpretation be relative to the 

transmission of non-Federal power? Would you, for instance, be in 

favor of Federal lines being constructed to transmit non-Federal 

power if non-Federal power meant privately developed power?

Mr. Holum. I think tha t all of the facilities related to the development of our water resources should be used to the maximum, both 

from the point of view of receiving the maximum return to the Federal 

Treasury and accomplishing the maximum good.

I would think these facilities would be available to all, recognizing, 

of course, the preference clause.

Senator Bible. Then, if I interpret your answer correctly, you 

would favor public transmission lines being constructed to transmit 

private power and public power?

Mr. Holum. The primary justification, of course, would have to 

be for the transmission of public power, but the excess capacity should 

be available to others, recognizing the preference clause.

Senator Bible. Why should the Federal Government build transmission lines to supply non-Federal power to anyone? Especially if 

the existing companies are willing and able to provide service?

Mr. Holum. It is a matter of economics, in my judgment, Senator. 

The federally developed power, I think, demands a program with it, 

a program for the transmission of tha t power, to the load centers of 

the ultimate users.

If in the design of these transmission facilities there are excess 

capacities, and, in almost every case, there will be, because you cannot 

design to the exact capacity required. Then I think those capacities 

should be made available to interests outside the Government, first, 

to preference customers and then to any other interests.

Senator Bible. Wha t I am getting at is the case of private power 

companies who are willing to finance the construction of the transmission lines.

Do you believe tha t the Federal Government should build lines in 

these areas when private companies are willing to do it?

Mr. Holum. It is a matter of economics. If we can increase the 

return to the Federal Government by constructing Federal transmission lines—and this is tremendously importa nt to protect the payout 

of these projects—then I think the Government should build them.

If the economics are the other way, the situation is different.

Senator Bible. Why should taxpayers’ money be used to construct 

facilities th at private capital is willing to construct?
6 NOMINATION OF KE NN ET H HOLU M

Mr. Holum. To protect the Federal investment in the hydroelectric projects themselves.

Senator Bible. Where we have privately developed transmission 

lines today operating from Federal projects, I cannot recall it ever 

having worked a hardship on the Federal Government.

Mr. Holum. It is a matter, Senator, of what fees the private 

utilities want to charge for the use of their facilities.

If the Government can build facilities and capitalize them and 

built the facilities cheaper than a private company, then I would say 

that the economics require that the Government build the facilities.

Senator Bible. In our position relative to the problems tha t will 

arise in the future where transmission lines have to be built, tha t will 

be an open-minded one and not closed towards the private line in 

favor of the public line?

Mr. Holum. My decisions to make them will be made on economics 

and feasibility.

Senator Bible. There is another resolution tha t was adopted by the 

same association tha t Senator Goldwater referred to, which reads in 

part:

“ Whereas a committee of the Midwest Electric Consumers Association has been 

working closely with designated represen tatives of both the Depar tment of the 

Interior and the Bureau of Reclamatio n in close harmony for the past 12 months, 

and whereas the combined efforts of the parties has resulted in an acceptable 

plan of meeting the full power requ irem ents of the preference customers in the 

Missouri Basin through December 1963: Now, therefore, be it

Resolved, Th at the Secretary of th e Interior and the Bureau of Reclamation be 

requested not to e nter into any long-term interconnections, integrations, coordination or other wheeling contracts covering suppleme ntal thermal power until 

uniform power marketin g policies concerning these matters be developed and 

published by the Departme nt of the Interior and the Bureau of Reclamation 

after discussion with the Midwest Electric Consumers Association power supply 

comm ittee.

Th at is the end of that particular part of that resolution. This 

mentions in the course of the language meeting the full power requirements of preference customers and the proposal on marketing appears 

to assume tha t Federal power should be marketed so as to meet the 

full requirements of such customers.

My question on tha t is: Do you believe that the Federal Government should build or finance steamplants to supplement power produced from Federal hydroprojects tha t preference customers will not 

have to get any of their power from privately owned electrical companies.

Mr. Holum. Senator, the resolution refers to an arrangement tha t 

Midwest Electric Consumers Association developed with the Bureau of 

Reclamation in the Department of the Interior during the past 12 

months.

This arrangement is an arrangement whereby the Bureau of Reclamation, in order to meet the very severe power shortages in the 

Missouri Basin, agreed to purchase supplemental power from any 

interest, where they could buy the cheapest, to firm up their own 

capacity and meet the growing requirements of the preference 

customers.

I think it is an excellent arrangement. It provides an opportunity 

for all types of power suppliers in the Missouri Basin to participate in 

meeting these growing requirements.
NOMINATION OF KE NN ET H HOLUM 7

Senator Bible. You did not quite answer the question. I asked 

you if you felt that the Government should build or finance steamplants to supplement power produced from Federal hydroplants?

Mr. Holum. I don’t think the resolution adopted by the Midwest 

Electric Consumers Association requests that. I think tha t tha t is a 

policy decision that would be made far above my desk—by the 

Congress of the United States.

Senator Bible. You are going to be asked about it by Secretary 

Udall and others above you. What is your personal feeling about the 

Federal Government investing taxpayers’ moneys in steam plants to 

supplement power produced from Federal hydroprojects?

Mr. H olum. At the moment I am completely openminded about it. 

As far as I know, no study has been made in the Departm ent of the 

Interior as to what the economics would be. If those studies are made, 

the economics would determine my final position.

It becomes, of course, completely a question of whether or n ot you 

can achieve the best financial result for the Government and for its 

customers by firming up the rath er limited amount of hydroelectric 

power in the Missouri Basin with thermal generated power, whether 

it is better to have that generated by a separate source, or to accomplish all the results by the generation under one ownership.

Senator Bible. I still have not had the full answer. The example 

that comes to my mind is TVA, built as a hydroproject, flood control, 

and navigation, et cetera, which now has the great portion of the 

power developed by steamplants.

In fact, barges carrying coal to run the steam plants constitute a 

major portion of the traffic on tha t river.

Again, what is your own feeling about the Government engaging 

in the construction of steamplants to augment hydropower?

Eith er you can say you believe in it, or you do not believe in it 

because whether you think it or not, you are going to be particip ating in decisions relating to this in all probability.

Mr. Holum. Senator, it is completely a matter of economics and 

my mind is open at the present time.

Senator Bible. So you are not for it and you are not against it?

Mr. Holum. No, sir.

Senator Bible. Well, you leave me up in the air on that. I wish 

you could give me an answer on tha t. It is a very im portant question.

I think if you answer tha t you do believe this, tha t it will have a 

decided bearing on the feeling of many on this committee and in 

the Senate as to your confirmation.

If you answer no, it would have a like effect upon others.

I am sorry tha t you cannot take a stand on this. We will have to 

depend on future history to determine what your opinion is.

Let me ask you this in relation to your resolution: Do you feel tha t 

the Federal Government is under an obligation to meet all the power 

requirements of preference customers in the Missouri Basin?

Mr. Holum. No, sir.

Senator Bible. If the Federal Government should build transmission lines to supply non-Federal power to preference customers 

and should take steps to meet their full power requU 

building or financing steam plants, then what in your qpin.wn 

be th e role or function of the privately owned electrical compahies?'

tip </5
8 NOMINATION OF KE NN ET H HOLUM

Mr. Holum. I think tha t the great challenge of the sixties,r of the years ahead, is the challenge of providing the growing needs of energy 

and an expanding economy, to meet this Nation’s responsibilities at 

home and worldwide.

I think that every segment of the electric industry is going to have 

a real challenge—a real job to move ahead fast enough to meet these 

growing requirements.

I am sure tha t everybody will be extremely busy and find lots of 

work to do.

Senator Bible. Do you feel tha t the Federal Government has a 

responsibility in this field where private companies can and are 

willing to operate?

Mr. Holum. I think the Federal Government has a responsibility 

of making sure tha t ample electric energy is available to meet the 

growing requirements of a growing economy.

Senator Bible. Even when private companies can fill tha t 

responsibility?

Mr. Holum. I did not say that. All I said is th at I am sure that 

it is the responsibility of the Government to make sure that the 

energy is available.

If it is being made by available sources, fine, but if it is not being 

made available, then it is the responsibility of the Government to do so.

Senator Bible. The original concept of the Federal role was, when 

the private companies could not do it by virtue of not seeing any 

possible return on their investment or the project was too large, then 

the Federal Government would accept it and step in.

Lately the Federal Government, in my estimation, has taken the 

attitude that it is its responsibility to provide electricity for the people 

of this country. Federal power has grown rather markedly in the 

last several years.

I think the Government now produces 16 percent of all the power 

produced in this country.

While that is a relatively small percentage, that could become 20, 

25, and 50, and eventually we would find the Federal Government in 

the power business and private electric companies with private capital 

completely out of it.

Is it your opinion tha t this relationship still exists between the 

Federal Government and the private power companies?

Mr. Holum. Which relationship, Senator?

Senator Bible. Namely, the Federal Government supplying power 

through its sources, where the private companies can not do it for 

economic reasons.

Mr. Holum. Yes; I think tha t the Government’s responsibility is 

perhaps the same in the electric energy as it is all over, to make sure 

that the economy is moving ahead and that the country is in a position 

to meet its growing requirements.

Senator Bible. Of course, if the Federal Government makes all the 

power, then the Federal Government is denying one segment of the 

economy any chance of moving ahead at all.

Is your attitude going to be one of a limited Federal role in the 

power picture?

Mr. Holum. I think my position will be the historic role of the 

Government, the Department of the Interior, as far as the power 

industry is concerned.
NOMINATION OF KE NN ET H HOLU M 9

I think there is plenty of room for all segments.

Senator Bible. In the complete development of the Missouri Basin, 

would you like to see t ha t developed along the lines of the TVA?

Mr. Holum. I would like to see the economic development of the 

Missouri Basin that we have had in the Tennessee Valley, very much.

Senator Bible. Would you say tha t again?

Mr. Holum. I would like to see the economic development in the 

Missouri Valley as we have had in the Tennessee Valley. The 

Tennessee Valley has moved ahead, and the Missouri Basin has lost 

population and it is going backward.

Senator Bible. Of course, there are quite a few depressed areas in 

the Tennessee Valley. My personal feeling is tha t the TVA has not 

done as much for the Tennessee Valley area as people think th at it has.

But suppose legislation were put before the Congress to create a 

TVA type of project in the Missouri Valley. Would you favor that?

Mr. Holum. I previously answered tha t question negatively.

The Chairman. The questioning of Senator Goldwater interested 

me because he referred to the resolutions of the association.

What sort of a group is that? Who finances it?

Mr. Holum. It is the rural electric cooperatives, the municipal 

utilities, and public power districts in the eight States of th e Upper 

Missouri Basin.

The Chairman. Senator Carroll.

Senator Carroll. I have no questions. I know the background of 

this gentleman.

The Chairman. Senator Church.

Senator Church. No questions.

The Chairman. Senator Fong?

Senator Fong. I have no questions.

The Chairman. Senator Moss.

Senator Moss. I have no questions. I know Mr. Holum and have 

worked with him. I am very well satisfied with his qualifications.

The Chairman. Senator Long?

Senator Long. No questions.

The Chairman. Senator Burdick.

Senator Burdick. No questions.

Senator Anderson. Senator Metcalf?

STATEMENT OF HON. LEE METCALF, A U.S. SENATOR FROM THE 

STATE OF MONTA NA

Senator Metcalf. Mr. Holum, in the State of M ontana the Missouri River rises and the Columbia River rises. We are upstream of 

two great river basins.

The Senator from Louisiana has asked some questions about an 

attitude toward downstream development, and the Senator from 

Missouri has suggested something about part way downstream 

development.

We are concerned in Montana, as you are in South Dakota, with 

power, with reclamation, adjusting uses of water, and are very little 

concerned with navigation and a slack-water channel.

I would like to have you state just for the record your attitud e 

whether you believe, as an Assistant Secretary of the Interior, you
10 NOMINATION OF KE NN ET H HOLUM

can resolve in an objective way these conflicts so that the State of 

Louisiana and the State of M ontana and the State of Missouri and 

other States, are protected in the Missouri Basin.

Mr. Holum. Senator, I find, of course, myself, in this position: 

That all I can do is give you my assurance tha t, as I approach these 

responsibilities, I shall look at it objectively.

I come from an upstream State. I am completely familiar with the 

problems and the needs for the development of these upstream States.

My background is upstream. I come to the Department of the 

Interior and pledge myself to look at all these problems from an 

objective point of view.

Senator M etcalf. Thank you. I am glad to have those assurances.

I would like to pursue just a little further the topic th at the Senator 

from Arizona raised.

I feel tha t in the Columbia Basin we have arrived at a happy 

marriage between Federal public power and non-Federal public 

power, especially the public utilities districts and private power 

companies.

For instance, in the State of Montana, you start downstream and 

you have the Hungry Horse Dam, a Federal development. Then 

you move down to Kerr Dam, a Montana power company dam, and 

on down through to the Washington Water Power Co. Dam, and we 

market to the Bonneville authority.

Do you see any reason to disturb what I feel is a very sensible 

relationship between the private and the public power companies in 

their separate spheres in tha t area?

Mr. Holum. No, sir.

Senator Metcalf. Do you feel tha t in the Missouri Valley, where 

we do not have much development but where we have possibilities 

for private and public development, that we can achieve somewhat 

of the same relationship?

Mr. Holum. I would hope so.

Senator M etcalf. Thank you.

The Chairman. Senator Hickey?

STATEMENT OF HON. J. J. HICKEY, A U.S. SENATOR FROM THE 

STATE OF WYOMING

Senator Hickey. Mr. Chairman, I have had the privilege of associating with Mr. Holum on the Missouri Valley projects in the past 

as a Governor.

I only have one question: I think the initial concept of the Missouri 

Valley was a flood control concept. I think important to the Upper 

Basin States is small dam retaining type of flood control dams, not 

directed toward public power or any of the other facets.

What is your concept of this flood control aspect as it affects the 

Upper Basin States?

Mr. Holum. It is my basic believe that every drop of water should 

be stored just as close to its point of origin as possible, first in the sale, 

itself, if tha t is possible, and then in small dams on the tributaries, 

and it should be used and reused in developing the economy of 

America. It is demanded that it be used and reused many, many 

times.
NOMINATION OF KE NN ET H HOLUM 11

I think we have a lot more developing to do upstream in the Missouri Basin, and I am sure all over the West, to put water to maximum 

use.

Senator Metcalf. And some of this can be done by local irrigation 

districts?

Mr. Holum. Yes.

Senator Metcalf. You agree with that?

Mr. Holum. Yes, sir.

Senator Metcalf. Th at is all.

The Chairman. There appears to be no further questions. Thank 

you, Mr. Holum.

(Thereupon, a t 11 a.m., the committee proceeded to other business.)

7 /

REF ERENCE

LI BRARY

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DEPARTMENT 5 o

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