Evening star., 1935-12-15
Waterpower Rights
Before the Court
By Oioen L. Scott.

G1IC 4NCW ONul, llLVl6 CIl66T lOT Il.
Roosevelt. But in the midst of official
pessimism there is about to emerge one
case that the Presidents legal aides tell
him is in the bag, even before the argu-
mentS start.
Court justices did not spare Mr.. Roose-
velt's feelings in their opinion that the
United States Government, by devaluing
the dollar, had violated its solemn con-
tract. They administered a personal re-
buke when baking his effort to remove
a member of the Federal Trade Commits
sion. The jolt wrapped up in the death
of N. r. A. codes staggered the whole
New Deal. Now officials are steeled for
what they believe is going to be an end
of compulsory control of farm marketing
in cotton, tobacco and potatoes and for
an outline of rigid limits to its regular
farm program, financed by processing
taxes.
Those all are issues in which the PreSi-
dent has a vital interest. But the issue
in which his interest is peculiarly per-
Sonal reaches the court next week. Then
on December 10 the justices are sched-
uled to start to ponder vital phase of
the presidential pet" among all New
Deal planning projects.
the Federal Government may sell at the
switchboard all of the power produced
by water from navigable river flowing
over a OBSERVATION-DISCLOSURES dam.
On that issue, raised by stockholders
of power company who question the
right of the Tennessee Valley Authority
to sell electric power developed at Muscle
Shoals, legal experts of the Government
are highly optimistic over a decision
favorable to T. v. A. They talk OF
belated Christmas present when the court
makes up its mind.
Just what Importance is attached to
the question involved?
First. If the court finds that the Nation
has authority to harness the power OF
its navigable rivers and then to sell that
power, a means will be provided for
financing large-scale regional plans.
But. next, if the court should find that
the Nation lacks authority to develop,
and sell power, then the Tennessee VAL
ley Authority and any other similar
authorities to be set up would become
Just more agencies for spending Federal
tax revenues.
Whose interests chiefly are concerned?
Mr.. Roosevelt would feel most severe
personal setback as the result OF de-
cision against the Government. T. v. A.
was his first New Deal project, announced
in the days before he took Office. 1t is
the venture in which he has the deepest
interest.
Then there are the power companies.
They dislike and fear the Tennessee VAL
ley Authority even more than they do
the utility holding company act. T. V. A.
holds out to them the threat of large
scale Government competition, with its
effect on rates and profits.
Next come the people of the six States
making up the watershed of the Ten
nessee River. Several of their large
cities have made plans to buy T. V. A.
power. People generally in the region
are interested in the planning projects
for flood control, navigation development,
industrial expansion. reforestation, i'm
proved farming methods.
4 x
But most important is the effect Of
Supreme Court decision on plans to start
similar planning projects in other water
sheds Senator George Norris has an
nounced his interest in a Mississippi
River Authority. Other authorizes are
projected for the Columbia River and the
Arkansas River. Mr. Roosevelt prefers
10 keep these new ventures in the back
ground until T. v. A. has proved itself.
What is going on down in the Ten
nessee Valley to cause the stir OF interest
in other regions?
There is a corporation, chartered, not
in Delaware, but by the Congress OF the
United States.
This corporation, the Tennessee VAL
ley Authority, has about 1900 employees,
who by law are independent of poll
ticians. Judged by some other New Deal
agencies, that is not large pay roll.
Congress has made available 1000,-
900 for spending. About $7o0Oo,0O0 has
been spent.
And what is there to show for the
money?
There are improvements on Wilson
Dam, at Muscle Shoals, where 6l2,0OO
horsepower of electric production capacity
will be available. There is Norris Dam,
30 miles northwest of Knoxville, soon
to be completed at cost OF S34,0OO,O0O.
This is on the Clinch River, and Will
be a strong dam, holding back nooo
waters and feeding them into the river
In dry seasons.
Then there is Wheeler Dam, just west
of Wilson Dam in Alabama, also to be
completed early in 1896, at cost OF
500, 600 900. Pickwick Landing Dam,
being built at cost of $4,000, 900, VIII
be completed later. T. V. A. has just
authorized construction of Guntersvllle
Dam, east of Wilson Dam, to cost S29,-
100000. Four other of these dams nave
been authorized by Congress.
Tied together, the series OF dams Is
designed to generate about l,5OOOOO
horsepower of electricity. individually
and in series, they are intended to pre-
vent floods on the river, to provide
year-round navigable channel and TO
provide a steady flow of hydroelectrlc
power.
Sale of this power is involved in the
suit now to be argued before the Su-
preme Court.
It. v. A., if able to find market for
the electricity that its dams could gen.
crate, insists that all of the money the
Nation pours into the region for power
development, food control and naviga-
ton improvement, will be paid back
with interest.
But. if unable to sell that power, then
the whole development becomes a bur-
den ON the Treasury, juStif1able only
on the basis of other river and harbor
DEVELOPMENTS, and other expenditures
for the general welfare.
X X X X
What does the power market situa-
ton look like, if the Supreme Court