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THE Rural Electrification Administration (REA) under an Act of Congress of October 1949, has the responsibility for making long-term loans for the construction of telephone systems in predominantly rural areas. Security for loans of this type is represented primarily by the ability of the system to provide good service at reasonable rates over the loan period. To insure that the systems for which loans are made represent adequate loan security, it is necessary to establish standards for the design and construction of such systems. It is the purpose of this paper to discuss some traffic engineering standards used by the more than 50 consulting engineering firms who design the systems.