The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-24
FIRING OF THREE
STIRS BITTER
CAPITAL ROW
Angry Senators to Demand
New Chief of Board
Be UnSeated.
HINT SWIFT REPRISALS
Walsh, Who Voted for
Smith, May Lead Battle
on His Action.
HINT SWIFT REPRISALS
BY THOMAS L. STOKES
United Press stan Correspondent


WASHINGTON, Dec. 24.-Dis-
nissai of three federal power COM
mission employees by George Otis
Smith, chairman, has created a
critical situation that was expected
today to develop swift reprisals ano
to have bearing upon the whole fu-
ture policy Of government water
power regulations.
Senate champions of two of the
dismissed employees who have in
sisted upon rigid government water
power control-Cbarles H. Russell
solicitor, and William v. King
chief accountant-now are bent
upon removal Of Smith and posi-
bly, other members of the new COM
mission. Smith was confirmed by
the senate only last Saturday.
The third employe to be dis
missed was F. E. Bonner, execu-
tive secretary.
Bonner has been at odds re-
peatedly with Russell and King
who have charged him with fayorit-
ism toward power companies.
- Bonner. likewise, has been the
target of some senator's who are
championing King and Russell.
Minor Sensation Caused
Smith explained he dismissed all
three to stop "squabbling" within
the commission and in order that
The newly organized commission
might get a fresh start.
Smiths order of disnissal-the
FIRST act since his confirmation
caused a minor sensation at the
capital, and the repercussions con-
tinued today in what promises to
develop into a major battle in the
senate when congress reconvenes
Jan. 5.
Friends of King and Russell are
laying their plans to remove Smith,
If possible. Senator Brookhart
Rep, Ia announced he would
seek reconsideration of Smiths con-
firmation, which was voted 38 to
%. A switch Of nine votes would
reject him.
Criticised by Walsh
Senator Walsh Dem., Mont)
criticised Smith in a letter to the
chairman for dismissal of Russell
and King, and since he voted for
confirmation, it is possible he may
lead the fight by moving for recon-
sideration.
When the Montana senator, who
achieved national fame in the Tea
pot Dome oil investigation, gets into
a fight. he makes it real one.
This issue perhaps is broader
than the oil lease matter, as it in
wolves q permanent policy rather
than isolated cases.
If Democrats generally join
against Smith, real battle would
ensue.
King and Russell are planning a
fight for reinstatement, contending
the chairman had no power. under
the act creating the commission, to
dismiss them. Smith argues that
all appointments lapsed with the
expiration of the old commission.
But the real fight hinges on the
deeper issues involved.
Accounting System Fought
When King became chief account
ant he instituted an accounting sys-
tenn which denied applicants for
waterpower licenses the right to in
clude various items in their invest
ment figure. This is fundamental,
since rates are based upon invest
ment.
Bonner criticised this method,
saying the chief accountant was
too meticulous."
There was an open break when
King reduced. by nearly half, a
s11.0000O0 investment claim made
by the Clarion River Power Com
pany of Pennsylvania, which King
revealed had included such things
as cost of a celebration at opening
of the place, of cigars, and $l44 for
neckties.
This case attracted nationwide
attention, bringing to Kings de-
Tense such outstanding figures as
Governor Elect Clifford Pinchot OF
Pennsylvania. The case now is
pending in the courts.
Fundamental Issues
Other fundamental issues are in
yolved in another case which enters
into the intra- commission friction
the so-called New River (Va) case
Charges have been made in the
senate that Bonner made the rec
concentrations to Attorney-General
Mitchell which we're carried out II
Mitchell's decision holding that New
River was a non-navigable stream
and, therefore, the Appalachian
Power Company was entitled to 9
minor part" license for proposed
6o,000-horse kO-~ plant. Such g
license valves all government regu-
lation, and leaves only the right tc
recapture after fifty years.
Since that decision. which also Is
70 be taken to the courts for f1nal
action, several other companies have
applied for minor part" licenses.
Russell denounced this decision as
nulNfving the whole water power