Evening star., 1935-05-21

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he considered 1t "a fraud on the COM
mittee, not good evidence and an out
rage"
IF I weren't In Congress and 1t
would not be undignified to say So" he
said. IT would say it's lousy"
The committee is split over the
T. V. A. legislation, already approved
by the Senate, which would give the
Authority specific permission to sell
surplus electricity. 1t also would in
crease the Authority's bond-issuing ca
pacity from $50, 600 900 to $100, 900 900.
No Expectation Of Pay.
Cassidy explained that he was
consulting engineer and that he had
spent week poring over the audit
without any compensation and no eX-
pectation of receiving any. He said he
was responsible for writing into the
original T. v. A. act a provision re-
quiring an annual audit of the author
ity's operations.
He said he had never received a
"thin dime" from any utility, and at
the request of some T. v. A. offlcial
once filled out an application for
T. v. A. job.
Cassidy admitted some portions of
the mimeographed statement were his
own, and pointed them out to the
committee.
Morgan interrupted to say that sew
eral other portions also were Cassidy's
rather than parts of the audit itself.
When Maverick wanted to know
from whom Cassidy had obtained fees
lately, the latter objected that it was
an improper question and refused to
answer
You are mysteriously paid by some
one" Maverick remarked. land then
this power company puts this out"
Its not mysterious" Cassidy re-
torted. II had no knowledge the ex-
tracts were mimeographed until
came to the committee hearing yes
terday."
The audit took exception to many
T. V. A. expenditures. but both Nc
Carl and Morgan have said they
thought all differences might be ad-
justed satisfactorily.
SucStlUucus
Use of rented automobiles, the pur-
chase of dairy COWS and the letting of
contracts without competitive bidding
were disclosed as some of the opera
tons questioned by McCarl.
The T. V. A report was the first an
nual report of the authority as re-
quired by the act setting up the organ
iSation. Four copies were made, one
going to President Roosevelt, two to
the T. V. A. and one retained in
McCarfs office.
The audit was not made public, but
any member of Congress is permitted
to examine McCarl's copy. Repre-
sentative May studied the audit and 1t !
was on his notes that most of the ques-
tioning has been based.
The T. v. A. balance sheet as of !
June 80, 1884, disclosed a net deficit |
of 62,9l0.17. Other data collected by
May showed:
That the agency had taken in re-
ceipts of $1,345 ,o65, as against ex-
penses of s12,438,346, a difference of !
s11, ,0s3,2Sl.
That the T. v. A. act requires the
agency to maintain its principal |
Office in the immediate vicinity of |
Muscle Shoals. Ala.," but that head
quarters of the board. however, and |
the general offices of the organization
were established at Knox
vile, Tenn" and that Knoxville was
designated as the principal Office of
the authority by board (of T. v. A.
directors) resolution in August, 1888.
s24,s2s gDeficit Cited.
That the Electric Farm and Home
had a deficit or loss to June
30, 1884, Of $24,829.
That "the nature Of exceptions
established consist of purchases with
out competition in violation of section
S709 revised statutes; notifications of
specifications; emergency purchases
unsupported by showing of emergency;
awards on basis Of personal prefer
snce; dual compensation excessive al
lowances and reimbursement of travel
ing expenses to prospective employees;
payment Of pay rolls without admin
strative approval; payment for power
plants, transmission lines and real
estate acquired without having clear
title thereto; rent for land occupied
by Civilian Conservation Corps camps
paid at rates higher than for land pur-
chased outright"
May found statements in the audit
that the T. v. A. had invested s161, ,796
In autos and trucks, yet paid as high
as $4,000 a month for rented cars.
The audit also said T. v. A. bought
D herd of IS cows and bull In May,
1884, at prices ranging from $50 to
$3.50 a head. |,