Evening star., 1935-08-21
REPORT ACCEPTED !
ON T.V.A. CHANGES
House Approves COmprO'
mise, Sweeping Aside Ad-
iournment Obstacle.
~ thu A.soeiatsd Press

By the Associated Press.
Sweeping another barrier from the
road to adjournment, the House to-
day accepted report compromising
differences with the Senate over bill
to broaden the powers Of the Ten
nessee Valley Authority.
Prompt Senate adoption would send
1t to the White House
The bill would give T. v. A. def
mite congressional authority TO mar
ket surplus electricity generated In its
huge power 'yardstick" program in
the Tennessee River basin, permit the
authority to lend money to States,
counties and cities to acquire power
distributing systems, and authorize
T. v. A. to manufacture and sell cheap
fertilizers to farmers.
Bonding Authority Granted.
Spokesman for the two chambers, In
reaching their compromise. agreed to
let T. v. A. Use its $50 600, 900 bond
issuing capacity to raise money to help
finance cities and towns in acquiring
their own distributing systems through
which power generated at huge T. V.
A. dams along the Tennessee would
be marketed.
The Senate had proposed to boost
T. v. AS bond limit to $l00 900 900
and permit proceeds to be used to buy
up existing private power lines for re-
sale to communities. The House
voted to leave the limit at $50. 900 900
and let the money be used only for
building dams. power plants and pow
er lines under the original T. v. A.
act.
The compromise" said Chairman
McSwain of the House conferees
would let towns buy up the facilities
out borrow the money from T. V. A..
then buy T. v. A. power"
Quick Production Seen.
He said T. " A. directors had given
assurance that with authority to
make and sell fertilizer, "in one year
they can be producing 10 per cent
of the phosphoric acid being used by
the farmers" He added that the
directors had asserted they could pro-
duce acid of As per cent strength
and ultimately raise it to so per cent
in comparison with q is per cent
commercial product. "and at half the
price,
Another point OF compromise was
over q House provision requiring T.
V. A. to turn into the treasury all
money realized from its power pro-
gram. so Congress might appropriate
it as it saw ft. The Senate wanted
to let T. v. A. use the proceeds for
any of its varied activities.
The conferees decided T. v. A.
should be directed to turn in all but
the amount necessary to operate its
power plants and fertilizer factory,
except for a $1,000 900 reserve for
emergency repairs to prevent inter-
ruption of service.
McCarl Given Right to Audit.
Controller General McCarl was given
authority to audit T. v. AS books.
but T. v. A can send its own finan-
cial report to Congress attached to
McCarls.
house provisions caLlng Tor COM
petitive bidding except for emergency
purchases, purchases under $500 and
for supplies obtainable from only q
single source were accepted in con-
ference. The conferees also retained
q House provision calling on T. v. A.
to dispose of all land not actually
needed for projects now planned.
The latter was directed at two small
tracts T. v. A. bought in an area
which the Aluminium Co. Of America
planned to flood as a reservoir on the
Little Tennessee River. T. v. A. di-
rectors have said the land was OBJ
tanned to give them power to compel
the company to go along with a uni
fed program for development of the
entire Tennessee Basin.