Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1934-12-21
Power CHALLENGE
Is Rejected By
The Government
E Edison Institute Man
Suggested to President
Early Test In Court
ISSUES CRITICISM

The administration tonight re-
jected, through its power commits
sion, the suggestion of Thomas N.
McC arter, president of the Edison
Electric institute, hat the gov
eminent cooperate with the power
industry in seeking an early SUI
preme court test of the constitu-
~tionality of the Tennessee Valley
authority.
Frank R. McNnch, chairman of
the federal power commission, said
in a statement that the Roosevelt
power program had the support of
the people, congress and the excu-
tive departments.
| Of McCarter's suggestion, Nc
lNinch asserted: ''In all the history
of the American government no
PARALLEL for such a proposal can be
found.
The call is not for the govern
ment to halt, but for the industry
to catch step and move forward
along progressive lines" he said.
The memorandum McCarter left
on the Presidents desk declarded
morreould Be obtained BY COOPER
alton between the government and
the power interests to preserve the
"soundness of existing investment"
than by governmental competi-
ton or strangulation."
McNinch said the McCarter "me-
mortal" was Immediately referred
ito the federal power commission"
by Mr.. Roosevelt.
The power commission chairman
termed McCarter's statement, "a
confession of the abuses of the cleo
trio power industry and an appeal
against the efforts of the govern
ment to correct those abuses"
McCarter defended rate making
by the industry McNinch's answer
to this was to refer to Canadian
power public and private, with the
assertion:
"The Canadian paid two and one
fifth cents for his electricity and
the consumer in the United States
five and one-half cents"
McNinch said of the Tennessee
valley act that "the policy en-
bodied in this act was proclaimed
by the President in plain language
in his address at Portland, Oregon,
in the campaign Of 1882"
"This policy was overwhelmingly
approved by the American people
lin the election of that year, he
asserted. .
1.-THE policies of the administra-
Ition were again strongly endorsed
by the American people in 1884.
1--WE are therefore confronted
with this situation: ION the one side
we have the opinion of two emf
nent lawyers retained by Mr.. Nc
Garter.
"On the other we have the opin-
ion of the majority of the Ameri-
can people, the decision of learned
constitutional lawyers in both
houses of congress, the views of the
President and the many able coun-
sci in the executive departments.
"And yet Mr.. McCarter now
suggests that the government cast
doubt upon the validity of its own
legislation by joining with him in
litigation to test the governments
own powers"
/ lust before catching a train for
Newark, McCarter made public
the 5000 word statement he lett
with Mr.. Roosevelt. He emphasiz-
ed that his talk with the President
|had been pleasant and agreeable
land said the brief was distributed
.Ipublicly with his permission.
4 McCarter, in suggesting coop
Grafton by the government to bring
Its power program to a final court
test, declared the industry on its
improper practices" utilized by
members Of the business.