Evening star., 1936-10-06

OF the Government.
Returning participants have told the
story Of the now famous conference to
their friends and the story is spread
in sthrough the valley. Summed up,
here are the high spots:
l, President Roosevelt Is attempting
to get an agreement upon tempo
rary extension of the present contract
whereby the T. V. A. has undertaken
for a limited period to refrain from
competition with or invasion OF the
territory of the private power COM
panies.
4. The r. v. A. sought to persuade
the power companies to drop their
litigation but the power companies
fatty refused, declaring that they
would not sacrifice their constitutional
rights.
3. Emphasis by the administration
on . short-term agreement, to last
lust a few months beyond the Novem-
Der election, has led to the impression
that the President wished to have a
public statement made before election
which would indicate he was con-
servatiye" because of his effort to
reach some form of accord with the
power companies. The brief period OF
the agreement would not prevent him
from doing what he pleased shortly
after the November election in the
event that he Is reelected.
No Agreement Reached.
The President revealed to his Wis
itors a deep concern over what should
be said to the press after the recent
conference at the White House, and
went so far, 1t Is reported, as to indi-
cate the words and phrases that should
be used so as to give the public the
idea that an understanding OF some
kind was in process which would rep
resent benefits to investors in securi-
ties Of power companies. No actual
agreement was reached at the confer
ence, or anything fundamental. 1t
was merely decided to give further
study" only to the question Of pooling
transmission lines-not power re-
sources. Meanwhile the truce was to
be extended q few months.
Actually what has developed Is .
fundamental difference Of opinion as
to the function Of the Federal Gov
ernment an no amount OF confer
ences will settle this until the courts
do 1t. There can be temporary agree
ments and debate in Congress as to
appropriations for further construc-
ton, but the right of the Federal
Government to build dams supposedly
for food control and navigation, but
actually to set up the Federal Gov
eminent in the power business IS
something which the recent opinion
BY the Supreme Court did not pass
upon and which the pending litigation
attempts to bring to decisive stage.
The law suit Is not aimed at the
present r. v. A. plants that have been
built, but against further construction.
Here We come to a vicious circle. Be
1t said to the credit Of the men work.
ing on the T. v. A.-and they are an
eficient, non-political group who are
doing q fine job-they see enormous
opportunities for development Of q
national policy Of conservation Of i'm
mense social benefit to the American
people. They speak Of the power side
as Incidental" They stress naviga-
ton and flood control and the research
into chemical processes that will help
give the farmer phosphates and ferti-
h1ers and better plant food generally.
Justice Hughes Decision.
But while Chief Justice Hughes up
held the right Of the Federal Govern
lnent to build dams for national de-
fense in war time, and to improve
navigation and control floods in peace
time and to sell whatever surplus
power was generated, he did not say
whether the Federal Government
could engage primarily in the power
business or use p. w. A. money to en-
courage municipalities to destroy pri-
vate power systems and investments
therein.
The T. v. A. in q recent report to
Congress comedies that If it confined
itself entirely to flood control or navi-
cation IL couldn't get all the power
It wants to generate for the so-called
power needs Of the area. Thus the
T.v. A. report to Congress last March
says:
"A storage dam on a tributary In
itself has little value for power pur-
poses when it is operated in the pri-
mary interest Of navigation and flood
control"
In other words, to control floods
and improve navigation, dams are
built.
When the dams are built the sur
plus power has to be sold.
To sell the power . continuous sup
ply is necessary.
To get . continuous supply tribu-
taries Of the rivers have to be de-
veloped 30 that prime power viii be
available In dry as well as dush sea-
sons.
To accomplish continuity Of now an
integrated power system has to be
constructed.
To sell the power emanating from
such Q system, Transmission lines have
to be built 20 as to convey the power
to market.
To get . market for the power,
municipalities have to be persuaded
to make war on private power COM
panies and threaten to build compet-
tng distribution systems which, OF
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