The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-12-15
TO DETERMINE IVA
LEGALITY LATER
CONTINUED from page one)

seems to me that the damage to
the IVA in preaching the existing
contracts and by hating construc-
ton now under way, outweighs
the damage to the power compan-
les from having this construction
completed.
1.-THE grave issues of law and
fact on the fundamental questions
involved cannot be decided ut u
hearing like this and ! would re-
mind you that anything said yes
terday has no bearing on the
courts opinion on the entire case,
which cannot be formed until the
hearing March s."
He emphasized that very &C
tive competition exists between
some Of the plaintiffs and the de-
Pendants" and that the status quo
should be maintained pending the
ultimate ruling, on the question Of
constitutionalty.
IVA service to the little town
of Gibson, Tenn, chief bone, OF
controversy as the hearing ended,
was left still in doubt in the rul-
ing. O'Brian had made an impor-
tant point of the contention that
IVA had not taken a single GUS
toner from the plaintiff compan-
les and therefore the plaintiffs
had insufficient cause for an in
junction.
RAYMOND Jackson Of Cleveland,
Plaintiff counsel, countered by de-
claring that while O'Brian made
the statement, IVA power was
cut in without warning in Glib
son, hitherto served by the West
Tennessee Power Goa plaintiff
concern. Fly retorted for IVA
that Gibson previously had pur-
chased power from subsidiary OF
Tennessee Electric power-a firm
which is not involved in the litiga-
ton. y
Fly and O'Brian claimed Gibson
was purchasing n monthly total OF
225 XVIII while the attorneys Tor
private firms said the total
amounted to 1900.
Judge Gore ruled finally that
such q relative minute quantity Of
energy is involved in the Gibson
case, he felt that the town should
continue to receive IVA power
unless private operators insist on
breaking the connection.
Jackson reserved his decision
pending a conference with West
Tennessee Power company OIL
Gals.
A few minutes before deliver
ing his oral decision from the
bench, Gore handed down an auxi-
liary ruling safeguarding quar-.
ter million dollar investment OF
the Aluminium Corp. of America.
r. II. Kramer of Knoxville, at
torney for the AGA, asked per-
mission to introduce affidavitS
showing necessity for IVA TO
complete work on it's Norris-Aicoa
power line to meet existing con-
tracts for purchase and exchan &c
of power with the aluminium COR
poration. :,
While iva was not to furnish
AGA. power until June /, 1887,
the company was to provide the
authority power for construction
of the Hiwassee dam as early as
January /, under contract pro-
visions. 1t was pointed out that
although the corporation had and
would maintain contract with
Tennessee Electric power, IVA
energy would be needed to meet
increased demands after its 20
per cent expansion program Is
completed. The company, Kramer
said, has spent more than a quar-,
ter of a million dollars on this ex-'
pansion, which would become use
less unless IVA continues its Nor
ris-Alcoa line to get in power be-
fore the company's own SysteE, on
the Little Tennessee river shuts
down for the dry season.
Cores ruling guaranteed con-
tinuation Of the power line.
The injunction came in the face
of bitter resistance by IVA at
torneys who previously had lost a
supplementary motion to throw
the entire constitutional test out
of court on the contention Cores
court lacks jurisdiction to hear u.
Stand of the iva officials
was summarized by Fly, the au-
thority's chief solicitor in his sum-
nation: ,.,o
eve are carrying out q mandate
of congress that should not pe
stopped as long as the. congTss
sional act is valid" he said. ne
question of whether this Po%ea
we distribute is legal or not mas
already been settled by the u o.
supreme courts ruling IN rt the
Ashwander case Tin which Iva
was granted authority to dlsp %S
of surplus power created at Will
son DAM If it's legal power u.
the dam. it's legal anywhere,
fact which the plaintiffs have
sought to ignore.