The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1935-07-11
Especial to The Democracy

(Spec1al TO Tne DemOcrat)
Washington, July 11-Cong. Jo-
seph Smith Of the Fifth District
in Connecticut called upon the
House this afternoon to accept the
IVA bill as presented to the House
by the Military Affairs committee
Of which he is member. AL
though he claims that testimony
before the committee indicated that
there was no fraud or dishonesty,
it is his belief that the Tennessee
Valley Authority project is sur
rounded by an atmosphere of haste
and that a definite check on 1t at
this time is needed.
Congressman Smith pointed out
five basic changes in the law of the
Authority which the House bill
proposes and claimed that these
five changes will place the Author
ity program on sounder basis
than it is at present and will help
to establish very definite pro-
gram for it to follow in the future.
The text of the Congressman's
speech on the floor Of the House
this afternoon is as follows:
There has been a great deal of
talk about destroying the program
of the iva. How will the House
bill destroy it?
The program laid down in the
original act was the construction of
one additional dam at Cove Creek
and the development OF plans for
further dams to be reported to the
Congress. The program followed
by the Authority has been to pro-
coed with two additional dams
without first reporting to the Con-
gress.
This act by reference validates
the action of the Authority in con-
structing those two dams. It also
requires that the directors make
known to the Congress their fu-
ture plans for development.
Directors Able Men
The directors of the Authority
are able men. Their integrity Is
not questioned. But feel that
they are to be criticized for their
impotence with any regulation or
supervision: For their reluctance to
make known to this body their
plans TOT the future.
We know that they plan in gen.
eral a "yardstick" of hydro-electric
power cost. / believe that the vast
majority of this House would like
to see an honest yardstick estab-
lished, to supplement the great
work being done by the Power
Commission in its comparative vote
studies. But before committing
this government to the building of
more dams. not necessary for navi-
cation of flood control, we should
know what power will be produced
by them, what the generation of
this power will cost, and where 1t
will be marketed. When the pres
ent dams are completed, there will
be a dependable capacity of 800, zoe
kilowatts. How many residential
consumers and how many indus
trial CONSUMERS will be necessary
to just that great capacity? Where
will they come from, in view of
the surplus of capacity the Army
engineers claim exists in this Dis
trict?
Five vitsl Changes
This House bill contains five inn
portant changes In the basis law,
First, Sec. 2, validating the con-
struction Of Wheeler and Pickwick
Landing dams and requiring rec
concentrations from the directors
for the unified development of the
river
Second, Sec. 8, allowing the d.
rectors to convey land.
Third, Sec. 8, establishing ac-
counting procedure and limiting
the time during which the Author
ity may sell below the cost of pro-
duction.
Fourth, Sec. 10, bringing the Au-
thority under the supervision OF
the General Accounting Office;
and
Fifth, Sec. IA, providing for con-
demnation of existing transmission
lines rather than duplication by the
Authority If efforts to purchase are
unsuccessful.
1t is claimed that there changes
in the law will Destroy the program
of the Authority. On the contrary,
it will put the work Of the Author
ity on a sounder basis. If no defin-
tie plan exists, one should be de-
cided on before we are committed
to the expenditure of millions for
additional dams.
II the program of the Authority
will be crippled by the limitation
of time with which 1t can sell be-
low cost the Congress should be
informed as to the length of. time
the Authority will need to establish
itself a paying basis. If 1t is neces-
sary to extend this time the rea-
sons for doing so should be shown
to the next Congress.
Controversies
Perhaps the most controversial
of the amendments proposed by
the committee Is that which places
the Authority on the same basis 90
other government departments. In
relation to the General Accounting
Office. There has been great
deal Of talk about the purchase Of
cows, steam ahoveia, and other ar
ticlos without bids, with hints Al
improper conduct. After our ex-
tepsIye hearings IN the Military A.