Evening star., 1934-12-14
.T.V.A. MOVE DENIED
BY stockholders
Rates of Alabama Power
Company Upheld by Group
of Owners.
BY DAVID LAWRENCE.

OJIleT Qdy lldG 1lC oucfCSCCd oohAS "a
the power companies were behind the
court litigation seeking to block the
T. v. A., and this has called forth a
vehement protest from group Of
preferred stockholders in Alabama,
whose chairman is Al C. CARRIER Of
Birmingham.
"Your article" telegraphs CARRIER
to the writer, quotes Senator Norris
as stating he suspects some Of the
utility companies are back of the ]iti-
cation to enjoin sales by power COM
panies and other means employed by
the administration proposed in fur
therance of the T. " A. program.
so far as the Alabama suit is con-
cerned that suggestion is unwarrant-
ed. More than 1000 stockholders OF
Alabama Power Co. have authorized
this committee to join their names AS
plaintiffs in pending stockholders
suit.
"Obstacle to Recovery"
"And if there were anything to be
gained, this written endorsement of
the suit could be obtained from
large majority Of the $4,000 stock
holders. representing an investment
Of S35, 100000 which Is being mutt
lated by this program. That program
has no remote relation to recovery
1t Is the most serious obstacle to re-
covery, since recovery must be based
upon confidence in the administra-
tion.
There can be no confidence in the
face Of ruthless duplication and eco
nomic waste. No person is unem-
ployed or suffering or hungry on ac-
count of rates charged by Alabama
Power Co. Those rates have been
publicly acknowledged by T. V. A.
as cheap and low rates. justifying
the use Of electric appliances in the
humblest homes. The power company
has announced that, with the same
taxes and interest rate, it could cut
T. v. A rates by 80 per cent.
Senator Norris statement that a
fair price was offered for the Knox
vile property, even if it were true, is
misleading, since. the price to be paid
cannot be distributed, but must be
impounded to meet deficits in street
railway operations. So far as Ala
bama Power Co. is concerned, the
T. v. A. has not attempted to JUS
tify the price and the company has
repeatedly asserted its manifest in
justice Its $4,000 stockholders, with
out exception, consider that the COM
pany's passive acceptance of this pro-
gram is indefensible and have no in
tention of submitting to its waiver
of the basic right to resist this il
legal seizure by the Federal Govern
ment of utility markets and proper
ties from this company.
Price Held Damaging.
1.-The sworn testimony of the officers
and engineers of the power company
before Alabama Public Service Com
mission, given in response to orders by
the commission, demonstrated that the
cost of reproduction, less observed de-
probation of the properties taken by
the T. v. A., is more than 81 900 900 in
excess Of the price offered by T. v. A.
without allowing one dollar for the
element Of going business and with
10000 attached customers, and that
the damage to the remainder of the
system resulting from making idle ex-
isting generating capacity and uni
versally allowable as severance dam
age amounts to over SO 1000, 900.
In short, this transaction will force
on these stockholders a present dam
age of S4,0O0,000 with the certainty
that the operation will be repeated in
definitely and that their entire invest
ment will be annihilated unless this
usurpation Of Federal function by the
T. V. A. and this assault on recovery
Is declared illegal.
There can be no doubt Of the fact
that the intention of r. v. A. to use
the power Of navigation to monopolize
power production in the Tennessee
Basin, both on navigable and nom
navigable streams, and take the ex-
listing and prospective market for this
power from existing public service
companies destroys their values.
Everybody knows that the sugges-
ton that this program is in aid of
navigation and interstate commerce
Is deceptive. Recovery cannot be
based on injustice and deception. The
confusion referred to by Senator Nor
ris in your interview is not due to
this litigation. 1t is due to the fact
that Senator Norris and the admin
istration have driven forward with
this power program without considera-
tion for its effect upon regulated utili-
ties and because the belated con-
sideration which is now given the
matter was not given before the pro-
gram was announced. vast amount
Of taxpayers money was wasted in
its execution and these suits demon
strated its lllegality.
Delay Laid to T. v. A.
THE delay in reaching a show
down is not due to the plaintiffs
(the stockholders but to the T. " A..
which has in every manner sought
to avoid and postpone the prompt de-
termination of these test cases.
1T is also pertinent with reference
to Senator Norris complaint of de-
lay and confusion to ask why the
plaintiffs in this suit have been sub
jected to an inquiSiti0n by Federal
Trade Commission, why the ice COM
panies complaining Of this appliance
peddling with Federal funds are now
being subjected to an investigation of
their wage scales and their employees
are being asked by Department of
Labor agents If they are satisfied with
their pay, although heavily increased
N. r. A. wages are being paid and
no complaint is pending and why
within the past few days Secret Serv-
ice agents Of the Internal Revenue
Bureau have instituted investigation
of those objectlng to the T. v. A.
program"
The foregoing is given in full text
because the views of Senator Norris
were given equal space earlier this
week and because the controversy be-
tween the stockholders of electric
light and power companies on the
one hand and the T. v. A. on the
other is becoming Of increasing pub
lie importance.
Copyright. 19341