Evening star., 1935-02-24
new DEALERS MAP
I:V.A. COURT FIGHT.
Power Program Involved in
Adverse Decision by
Alabama Judge.
Continued From First Page.)

UOnal Qe1enSe anu pIeVcuIlOl Va ooA
erosion, and was regarding this eX-
cess as an unavoidable surplus in
order to distribute it at low rates to
municipalities. An unavoidable sur
plus, he said, might be sold by the
Government.
If the Government cannot sell
power without violating the law
said Judge Grubb. 1T is better to
waste it. If the power was created to
sell, you cannot claim you are selling
a surplus"
Presidential advisers on this subject
gathered from the opinion that 1t did
not question the right OF the United
states to sell such power as is Incl
dental to navigation, flood control or
reclamation. The sale of by-product
electrical power they held to be ad-
mittedly constitutional.
It was pointed out that, while con-
siderable of the power to be generated
at the big dam projects in the West
was to be used by the Government
itself a definite part of the plan was
to sell power to the public and for
the avowed purpose OF driving down
rates In competition with private util-
tiles.
Ofacials explained, however, that
even if the Supreme Court were to
sustain Judge Grub, there would be
ample reason to proceed with the big
dams which the President inspected
last Summer on his overland return
from Hawaii.
Major Projects of U. S.
The Grand Coulee Dam, involving
an expenditure of about $63000,000,
1t was explained, is primarily for rec
lamation purposes; the Fort Peck Dam
for the same purposes and for flood
control, the Bonneville Dam for nav
iaational as we'll as reclamation pur-
poses, and the Caspar-Alcova Dam in
wyoming for reclamation purposes. In
npne of the projects was the power
development aspect so pronounced, Of
fieials said, as in the Tennessee Valley
Authority. Mr.. Roosevelt, with note
OF defiance to private power interests,
served notice during his inspection of
that project last Fall that he was de-
termined to proceed with that
President Roosevelt, during his in
spection of the Western projects last
Simmer acknowledged that it would
be years before markets developed for
al the power these projects would be
capable Of developing. The projects
are so immense that the President
himself was astonished at their size.
A commentator noticed that no man
since the days of the Pharoahs had
undertaken so much building.
The ALLEGATIONS for these projects
funds, some of them against the orig
inal recommendations Of Harold L.
1ckes, public works administrator.
Another object of the expenditures
was to help reduce unemployment. The
Tennessee Valley project represents
an investment of about 500, 100000,
the Bonneville Dam about $4,000
coo, the Fort Peck Dam, greatest
earthworks project in the country,
S37,000,000, and the aspar-Alcova
project, Sl8000,000. The st. Law
renee >project has been held up by
difficulty in negotiating a treaty with
Canada.
Officials believe that the decision
of Judge Grubb will not affect tie
project Of Mayor F. H. La Guardia,
encouraged by President Roosevelt,
t6r a municipal plant to generate the
power used by New York City and
the Federal Government in that area
p. W. A. Offers Help.
THE T. v. A. marshalled its legal
forces, while the Public Works Ad-
niinistration, which was prohibited IN
the same injunction from making
loans to municipalities for erection Of
power distributing systems, offered
help in the coming court battle.
sJudge Grub, an appo1ntee OF for
nier President Taft, who made the
decision on the ground that sale Of
Gpvernment-produced power was un-
constitutional, was sharply criticized
in administration circles.
Senator Kenneth McKellar, Demo-
crat, of Tennessee, one Of the original
# v. A. sponsors, said: Judge Grubb
is entirely mistaken. I believe the
law is absolutely constitutional"
Representative Tom Rankin, Demo-
ciat, Of Mississippi, co-author Of the
T ". A. act, said he believed it was
constitutional, but If not 1--WE will
atlend the law and then, If necessary,
wy will amend the Constitution"
Henry T. Hunt, P. w. A. general
counsel who offered his help in ap-
psaling the injunction, said Judge
Gubb didn't understand the case"
IAN official announcement that the
cSse will be carried to the highest
court is expected shortly and the legal
talent of the New Deal will be mus
tered in defense Of the second Roose-
vslt agency to be declared unconsti-
tQtional by Judge Grub.
= Questioned N. R. A..
.The constitutionality Of the N. r. A.
has already been questioned by the
same judge and an appeal from his
decision is pending before the Su-
pfeme Court. For this reason his
adverse decision on T. v. A. was en-
t9ely expected
iThe decision stimulated the power
liberals within the administration,
VINO have long held that so long as
holding companies continue to exist
in the power utility field the Gov
eminent will be "ham-strung" and
blocked at every turn by legal OBJ
stacles which they contend the super
corporations "at the peak Of the power
pyramid" are able to raise.
in this respect the decision in
cteased the pressure for passage Of
tie Wheeler -Rayburn bill, which
wpuld outlaw utilities holding COM
panies after January !, 1910. and
Weakened the position Of a more
c6nciliatory group which is still ad-
v9cating compromise program Of
evaporation with the power in
t&ests.
in the meantime the general con-
sansus of opinion at T. v. A. head
quarters Is that the decision will not
affect power activities already in
operation. Those municipalities al
ready receiving T. v. A. power will
continue to do SO. r. v. A. is stopped
from purchasing from the Alabama
Pbwer Co. the transmission systems
in IA communities and operating them
with Government-p power.