Evening star., 1937-12-12
IVA. BEGINS CASE
AGAINST UTILITIES
MarshaIs Evidence After
Four Weeks on Defense
in 3-Judge Court.
BY the Associated Press.

BY the Associated Press.
CHATTANOOGA, Tenn, Dec. II.
After four weeks of defensive
fighting, Tennessee Valley Authority
attorneys marshalled evidence today
to take the offensive Monday against
1s private utilities.
The utilities rested their case BE-
fore the three-judge Federal Court
yesterday with the testimony Of
Wendell Willkie, president Of Com
monwealth and Southern Corp. Of
New York.
Using an enormous amount OF tes-
timony with . thoroughness which
allowed the overlooking Of no detail,
utilities attorneys sought to establish
these contentious:
!. That $473,00o, 900 will have been
spent when the unified T. v. A. plan u
completed, primarily for development
OF power to be sold In competition
with the utilities, and that flood con-
troll and navigation are incidental.
Army Colonel Testified.
(R. w. Putnam. former colonel Of
U. s. Army Engineers, and Ford
Hurts, Hollis. N. Y, hydraulic ex-
pert, testified that adequate Hood
control and navigation on the Ten
nessee River could be provided for
about $l56.000. 900. Albert 8. Crane,
consulting engineer Of New York City,
testified that lin my opinion the
T. v. A. system was built primarily
for power)
2. That sale OF Federal power will
require invasion OF company markets
and tnf1ict damages in excess of $3S,-
900. 900 through loss Of facilities and
loss Of $26, 900 900 through de facto
regulation Of rates in States In which
the T. v. A. power Is for sale by vir-
tue Of economic coercion" which
amounts to an unconstitutional In
vasion of State rights"
Millions in Damages Claimed.
2. That the r. v. 4. threat has in
ficted millions Of dollars of dam
ages on the utilities through inability
to refinance and reduce fixed charges.
I. That the completed T. v. A.
system will incur an annual out-of-
pocket deficit of So, ,ooo, 900. fTestifled
to by Edward L. Moreland, director Of
the Massachusetts, Institute of Tech
nology Electrical School)
s. That utility facilities are ade-
quate.
8. Invasion Of utility territories by
r. v. A. (Willkie testified as to this.)
Value Of High Dams Cited.
Among the chief points T. v. A.
counsel sought to establish through
cross-examinations:
l. Superiority Of the Authority's
high dam navigation channel on the
Tennessee to the narrow. circuitous,
swift-moving channel provided by the
32-low dam system recommended by
Putnam"
2. All Authority dams have some
flood control value. (Through tssti-
mony Of Kurtx.)
3. Flood control value cannot be
reduced to dollars and cents because
Of intangible facts such - life, health,
property valuation and population
trends.
I. That the aystsm Of dams sug-
rested by the utilities for Tennessee
River Hood control would not aid
Mississippi River hood control. al
though the T. v. A. high-dana system
would.
Monopoly Of Lines" Claimed.
5. That the Commonwealth and
Corp. and the Electric
Bond and Share 90. have "a virtual
Of Transmission lines in the
vicinity Of T. v. A. DAMS"
{. That the Authority has . policy
II not selling TO complainants' Gus
;omers.
Z. "Fantastically" long transmission
ines have not been built by either
I. v. A. or utilities.
.. The growth In power demand viii
lbsorb all r. v. A. power - It comes
n the market.
.. All utilities have had remark.
Ible increase In business earnings and
'eneral prosperity since 1888"
The court u composed Of Presiding
Judge Florencs Allsn, Cincinnati,
United States Circuit Court Of Appeals,
nd District Federal Judges John D.
6artin and John J. Gore, Tennsssse. |
0reece 6 spendlfnr larre s,Ims far