Evening star., 1934-10-07
T.V. A. PURCHASE
PLAN DRAWS FIRE
Power Company Deal Held
Effort to Escape Results
of Mistakes.
By the Associated Press.

BY the Associated Press.
NASHVILLE, Tenn, october O.
Resisting a proposal for the Tennessee
Valley Authority to purchase pri-
vately owned electric properties at
Knoxville, Forney Johnston, Birming-
ham attorney, charged today that ap-
proval of the deal would permit the
Il. ". A. to saddle its mistakes on the
State as a part of its guinea pig ex-
pertinent on the people of Tennessee y
Johnston appeared before the State
Railroad and Public Utilities Commis-
sion on behalf of objectors to the plan
which the commission has been asked
to approve, for the Government
agency to acquire holdings of the
Tennessee Public Service Co. at and
near Knoxville for S6,191.0 900.
James L. Fly and William C. Fits
tr., attorneys for the T. V. A, de-
clared the Authority planned to hold
the properties only for limited pc
ried. probably not exceeding two years,
at the er.d of which time the properties
will be sold to local public agencies.
Service Is Guaranteed.
"For the commissions information,
they said, the Authority is in position
to render the highest type of service
to all classes of customers and Tor
that purpose proposes to extend, re-
habilitate and improve" the holdings.
In a motion asking dismissal of the
cross petition, Fly and Fits declared
the Authority was taking part with
out submitting to the general Jurlsdlc-
ton of the commission.
ut seems a little ungraciouS for this
T. V. A. corporation, which denies the
authority of the commission, to come
in here and try to deny US the right
to intervene" declared Charles Trabue,
Nashville, also of the counsel for the
obiectors.
Are we, as citizens and taxpayers,
he asked, Ito be forbidden the court
at the instance of corporation that
denies your jurisdiction? The whole
proceedings rests on the assumption
that this commission is going to ao-
dicate its functions"
Validity Is Attacked.
After the Tennessee Public Service
Co. had petitioned the commission fol-
approval of the sale. objecting petit
tions were filed by Mrs. w. G. Ruble
and Mrs. M. Yrtle johnson, preferred
stockholders in the company, and by
13 Tennessee ice and coal companies
Among other things, the objectors
attacked the proposed transaction as
unconstitutional.
In his argument, johnson declared
that in procuring the contract to buy
the properties, the T. v. A. committed
an unmistakable act of duress."
Counsel for the T. V. A. argued
that matters of "constitutionality anc
legality were outside the commission
jurisdiction, and that if the petitioner:
had suffered injury they could seel
redress in the courts. Fits said the
intervening petitioners have onl!
private rights as compared to tht
broad question of public interest"
Basis Is Suggested.
He argued that the commission
should consider the public interest, >
approving or disappearing the SALE
of the properties on the following
basis:
Whether or not the transfer will
result in the consumers to be served
receiving just as good service aftel
the transfer at just as good rates, a!
they are now"
Trabue declared the commission hac
no precedents to follow. There il
no other case like this he explained
What you decide here will find echt
in years to come"
After listening to argument
throughout the day, the commission
recessed the hearing until Monday.