Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-27

upon the best OF motives-but are still
unauthorized by law"
McCari emphasized that nothing
has been suggested to me even init
mating fraud on the part Of any di-
rector of the corporation" He added
that he had made this statement be-
fore the House Military Affairs Com
mittee. which had the audit under con-
sideration in connection with proposed
new legislation for the T. v. A.. and
that he had also told the committee
that the status of the corporation with
respect to regulatory statutes should
be clarified by additional legislation.
He also informed Norris that where
exceptions taken to the audit could be
supported, action would be taken &C
cordingly.
1T was an audit that was made by
this ofIice-not an investigation-and
the records of the authority were
taken as found" McCarl said. Thus
the audit report was not and was
not intended to be an indictment,
but rather a pointing out OF the mate
rial matters lacking Of record to jus
tify passing the transactions as con-
forming with the laws apparently APP
plicable thereto"
The Tennessee Valley heads. he
continued, apparently understood that
they we're at liberty TO make explana-
ton upon any items questioned.
Since the receipt of your letter.
McCarl continued. Il have searched
for evidence Of any reason or DISPOSE
ton or even inclination on the part
OF the individuals or any Of them who
made the audit for this Office, TO be
hostile or in any manner unfair to
the Tennessee Valley undertaking or
to the officials thereof and have found
nothing. 1 have found, however.
uniform conviction that many excep-
lions might have been avoided If
those acting for the authority had
more carefully and Fundamentally
given effect to laws considered by
this Office applicable to authority
transa ctions and designed to pro-
duce the best results and to minimize
room for criticism, just or unjust, Of
ddiS0StAOAio PubhS Al tidtuiC.
No Power to Ignore Law.
Continuing, McCarl said that while
wide authority was vested In the Ten
nessee Valley Authority, authority
was not specifically granted to disre-
gard all laws applicable to the man
ner of conducting the public business
and involving the paying out of public
moneys" Particularly, he said. the
corporation should have observed the
law which provides for competitive
bidding in the making of Government
purchases. However, he added, the
Authority ofiicials have taken the view
that they were not bound by this law
and. he said, naturally. if in view
of the many purchases they are con-
stantly making and the large amounts
involved they may disregard the
statute that has for so long safe
guarded the public interest in pur-
chases aggregating hundreds Of times
the amount the Authority will expend
even during the next so years, then
there has been granted the corpora
ton q breadth of authority over a
vast sum Of public money far beyond,
in my judgment, than as realized or
intended by major proportion of
those who supported the legislation"
Here he injected warning that
failure to observe competitive bidding
frequently results in waste and al
ways leaves room for charges Of
favoritism." This law, he amplified,
was intended TO secure for the Gov
eminent the benefits of open, COM
petitive bidding on its needs; to per-
NIT all citizens equal opportunity to
bid on the need rs disclosed by the
specifications submitted for bids and
to insure against favoritism. or
worse, in the transaction of public
business"
McCarl said further that If the
project possesses the merit, as ap-
parently so confidently believed by its
sponsors. its accomplishments should
not be handicapped by administra-
tive conduct unnecessarily opened to
question and even charges of waste
and favoritism." His ONCE intends,
he said. to continue to question items
where it is believed such action Is
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