, 1935-06-11
WASHINGTON
BY Ray Tucker

BY Ray Tucker
Mystery-A New Deal experiment
second only 70 NRA Is slipping out
OF President RooSevelt's control. 10
Is the Tennessee Valley Authority.
Unless he can save II Controller
General McCarl and the house APP
propriationS committee will wreck
IL beyond hope OF recognition.
The sabotage Of iva Is n Of
the first : class mysteries Of Wash
ington. Nobody knows how McCarl's
letter questioning certain expendi-
lures and procedure fell into the
hands Of Republican Senators bat
Ting the iva extension and the
holding company bill. II was sup
posed TO be a secret document. But
Il bobbed up on the senate floor and
IL may cripple the Administrators
power program on many fronts.
Some TVA-iteS blame McCaTl in
their private condolences. iva d.
rectors have steadily maintained
that congress empowered them to
operate without regard for govern
mental red tape. McCarl has insist
ed that they must abide by the
same rules which govern purchase
Of a stuffed animal for the Smith
sonian Museum. There has been
constant friction.
JeOpardy-Mr. Roosevelt conceiv-
60 the iva project as an empire
within itself and beyond the control
oil bureaucratS. He clothed II with
powers Of government and tried
70 give IL the fleXibiity and
initiative OF private enterprise
Mr.. McCarl disagrees. He insists
that an engineer supervising a
s20.0O0.0O0 job must account for
every penny spent in driving TO and
tom IL. He demands hat supplies
needed at a moments notice must
b. advertised and awarded TO the
lowest bidder. though II may mean
delay and added expense. Directors
Morgan and Morgan say they can
rot operate under ordinary govern
ment regulations.
iva Is menaced on other fronts.
The house appropriations commit
tee may cut its 1886 funds request
from S42. 100000 to $30,000.000 This
would halt all new construction.
permitting iva to finish only the
four dams now being built. Mr.
Eoosevelt's dream Of utilizing the
basin as a laboratory for power de-
velopment, flood control, aaviga-
ton roper use Of land and rural adj
vancement would thus 90 up IN
smoke.
Stand-JesSe Jones Is preparing
TO make the railroads be good. He
Is tired OF pouring out government
money for lines which refuse 70
face the obvious necessity OF going
| through the wringer under volun-
tary reorganization or bankruptcy
The RFC chieftain has been pa
tient. For a while he deferred harsh
orders for fear Of upsetting condl-
tons. But his demand hat certain
western roads reorganize or DC re-
organized was the most drastic ne
has issued. Six months ago he would
not have issued such an order. Now
he feels that II cannot hurt-mucn.
Many railroads have no private
credit. They cannot put up col
lateral to finance further govern
ment loans. 50 Mr.. Jones thinks II
u time for them TO be sensible. He
has strong support for his stand
from influential but unmentionaole
sources. He may need 10. in view OF
the opposition Of insurance COM
panies and saving banks.
gtubborn-Cordell Hull Is playing
n csgy game with Russia. He would
like to settle all problems OF debts
and trade but he doesn't intend 70
b outsmarted by the Soviet. Mos
COW breeds a slow. wary kind Of
trader and so do the Tennessee
mountains where the Secretary OF
State was born.
Mr.. Hull recently signed a recipro-
CO. tariff agreement with Brazil
which cut In half our duty on man
canese ore. Russian exporters I'M
mediately sought to take advantage
of the reduction under the most.
fayored-nation clause. But Hun
gently told them that the clause was
inoperative so far as the Soviet was
concerned. There Is no sign thai the
stubborn Cordell will change his
mind.
In many subtle ways the admin
~istration has displayed its diSap-
pointment at RuSsia's reaction to rec
ignition. Although II would not DC
automatic TO admit II. hope per-
sists at the state department that
Russia will soon be persuaded" 10
| sit down and talk business on debts
and trade. It Is Problem No. / on
the departmental calendar.
CooIed-Jim Farley does not pro-
fess TO understand the supreme court
but he thanks 1t for taking one PROB
lem off his hands. AS a result Of Us
NRA decision he believes that the
once dangerous threat OF a third
marty has disappeared except for q
few guerilla ventures.
ProgreSsives like the LaFolletteS
will line up with the administration