Evening star., 1935-07-11
Provisions Objectionable to
Roosevelt Eliminated
From Measure.
MILITARY AFFAIRS
PROPOSAL REJECTED
Administration Forces to Press
for Compromise on Utilities
Legislation.
BY the Associated Press.

After eliminating every major pro-
vision Objectionable to President
Roosevelt, the House today passed
legislation to broaden the power OF
the Tennessee Valley Authority. The
vote on final passage was announced
as PIT to 100.
The bill now goes back to the
Senate for action on amendments
added by the House. The differences
probably will be adjusted by a con-
ference committee representing the
Senate and House.
Utilities Bill in Conference.
Already, the utilities bill has been
sent to conference by the Senate to
attempt to agree on whether TO re-
tain the provision desired by Presi-
dent Roosevelt to eliminate "un-
necessary holding companies in
seven years.
The House rejected this twice and
the Senate approved it by l-vote
margin.
Twice before the final T. w. A. vote
the House affirmed its action in elm
mating clause that would have given
T. v. A. limited time in which to
work out a self-sustaining power de-
velopment.
BY a 9O-to-38 standing vote and
again by 274-to-102 roll call it voted
down a motion by Representative An
drews, Republican, of New York, to
send the measure back to the Military
Committee with instructions to insert
language that would have forbidden
the agency after July /. 1888, to sell
power and chemicals below production
costs.
The Roosevelt forces drove ahead,
meanwhile, with an attempt to gain
a compromise" in the other major
power struggle, the utilities bill con-
troversy
They were plainly heartened by the
series of encounters they won on T.
v. A. in the House, which only last
week had 'revolted" and turned
thumbs down on Mr.. Roosevelt's plan
for mandatory abolition of "unneces-
sary" utility holding companies.
The Senate, which, unlike the House,
had voted for the compulsory abolition
feature, stuck by ibis stand yesterday
and sent the problem to conference.
When reporters asked Senator Rob-
inSOn of Arkansas, Democratic leader,
whether he thought the chances for
compromise in conference were good.
he said:
"Oh. yes, there's get to be COM
promise"
Modification Proposed.
Though there WAS 20 official state
ment, there was some talk Of offer
ing to make tire Serate dissolution
clause apply only 10 holding COM
panies in the tnifd Cegree or hleher,
instead of prohibiting all except FIRST
degree" holding firms.
"First-degree". holding firms are
superimposed directly on operating
companies. Second-degree holding
companies control the first-degree
firms, and SO on.
The composition of the Senate Con-
ference Committee chosen to meet
tIlC tOlllcICcS was ITc
today from opponents of the Sem
ate bill.
The conferees are Senators Wheeler,
Democrat, of Montana; Barkley, Dem
ocrat, of Kentucky; Brown, Democrat,
of New Hampshire; White, Republic
Labor, of Minnesota. Philip H. Gads-
den, chairman of the Committee of
Public Utility Executives, accused Sem
ator Wheeler. who has been in charge
of the administration fight. of picking
the conferees unfairly.
Bill Drastically Rewritten.
The T. v. A. bill, written to bolster
and broaden the Valley agency's scope.
had been drastically rewritten by
hostile House committeeman before it
came to the voting stage.
Swiftly, the Roosevelt men Sue
ceeded in writing in these amend
mentS:
To delete a clause saying T. v. A.
must sell power or chemicals at not
less than cost after July /, 1887.
Passed, SO to 81.
To let T. v. A. operate without
absolute control by the controller
general over it's expenditures. Passed,
1852 to 120.
To delete a section preventing the
agency from constructing power lines
paralleling existing private ones.
Passed, 237 to 145.
To let the Authority decide whether
private interests may build dams or
appurtenant works on the Tennessee
River or tributaries. Passed by a
voice vote