The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-05-30
New, Broad Attack Upon IVA
Is Made in Complaint Filed By
Nineteen Southern Power Firms
"Yardstick" Rates Are AL
legged Dishonest, Un-
fair, Unreasonable, and
Con6scatory," in Bill.

Several weeks probably will elapse
before Federal Judge David ]. Da-
Wis hears the bill of complaint
charging that the IVA and it's
operations are unconstitutional,
said counsel for 10 major power
companies who filed the suit here
yesterday.
The bill charges a much broad
er violation of the constitution by
the New Deal agency than was
brought out in the recent case OF
the Alabama Power company, in
which the United States supreme
court ruled that Wilson dam pow
er could be manufactured and
sold by the government.
"Yardstick" rates for the pro-
duction of electricity, and the
transmission and distribution of
power are dishonest, unfair, UNI
reasonable and confiscatory"
when considered in the light of
plaintiffs problems of manufac-
ture, sale and distribution, the
complaint says. o. -. =.
simultaneously with the filing
of this suit here, joint action was
taken in chancery court in Knox
vile, Tenn, naming the IVA and
its directors defendants in the
suit.
Compartments in the cases are
the Tennessee Electric Power
company, Franklin Power and
Light company, Memphis Power
and Light company, Southern
Tennessee Power company, Birm-
ingham Electric company, Mlssls-
sippi Power company, Appalach-
ian Electric Power company,
Georgia Power company, Carolina
Power and Light company, Ten
nessee Public Service company,
Holston River Electric company,
Alabama Power company, Ken
lucky and West Virginia Power
company, Inc, Kingsport Utilities,
Inc, Kentucky-Tennessee Light
and Power company, West Ten
nessee Power and Light company,
Mississippi Power and Light COM
pany. East Tennessee Light and
| Power company, and Tennessee
Eastern Electric company.
The Tennessee Valley Author
| ity and its operations are uncon-
stitutional, the bill charged, be-
cause: =,
81. They are not authorized by
any power delegated to the fed
eral government by the constltu-
ton or any Of it's amendments.
"2. They attempt to extend
federal power of matters OF mira
state commerce and local police
power, in contravention of the
ninth and tenth amendments.
"3. The act fails to indicate
any adequate legislative standard
to guide the administrative Of
ficers but, on the contrary, at
tempts unlawfully to delegate
,, legislative power to the president
of the United States, and such adj
ministrative officers:
~. The act fails to provide for
any hearing for persons whose
rights will be injured and whose
property will be taken by the
IVA. 80 -
"5. The act and the operations
Hereunder seek to fix the rates
of the utility companies by means
of federally subsidized competi'
ton, without hearing, and with.
out the opportunity for judicial
review as to the reasonableness OF
the rates and thereby deny the
utility companies due process OF
law in violation of the fifth
amendment"
The dual attack in state courts
of Tennessee and federal court
here was believed likely to insure
definite Qualification of all con.
troversial points in the far-flung
power program.