Evening star., 1937-02-03

Tie commonwealth q oOuGllClh
Corp. announced today his COM
pany would permit its power con-
tract with the Tennessee Valley
Authority to expire tonight. He
added tt would not enter any new
contract until satisfactory policy
for the future sale of T. v. A. pow
er was adopted.
Wendell Willkie, president of Com
monwealth and Southern companies.
was expected to issue statement here
today regarding the power agreement
between the companies and the Ten
nessee Valley Authority.
Accompanied by E. A. Yates. vice
president of Commonwealth and
Southern. and j. c. Wedock, New
York attorney. Willkie, according to
an Associated Press dispatch, left
Knoxville, Tenn. by train last night
after conferences with the three di-
rectors Of T. v. A.
Willkie entraired for the Capital
few hours after the T. v. A. had
announced it had offered 30-day op-
ton on the existing power agreement
with Commonwealth and Southern If
the companies believed an agreement
on extension of the contract could be
reached in that time. The existing
contract is due to expire today.
The announcement said that sin
offering the option the Authority en-
phasized that no extension Of the
present contract could be made II the
Commonwealth g. Southern companies
continued to insist upon receiving as
a condition of purchasing Tennessee
Valley Authority power an exclusive
monopoly over Tennessee Valley Au-
thority power in the area served by the
companies"
Attitude Of Companies.
The statement made no mention OF
the companies attitude on the offer.
The announcement came few
hours after Senator Norris, Independ-
ent, of Nebraska had urged that the
agency end the contract under which
it sells power to the Commonwealth e.
Southern companies and agrees to
stay out of certain power markets.
The T. v. A. contended it was the
position Of Commonwealth g. Southern
that the T. v. A. must give it
monopoly over T. V. A. power, which
would prevent the Tennessee Valley
Authority from selling power to mu-
inequalities, rural co-operatives or in
dustries in any part of the four States
in which the Commonwealth & South
ern operates.
The Authority is not empowered
and should not be empowered to con-
fer such monopoly upon the private
utilities of the Southeast" T. v. A.
said. THE Tennessee Valley Au-
thority statute. the constitutional and
statutory rights Of municipalities and
other public agencies. as well as pub
lie policy. seems clearly to forbid such
monopoly over public property.
Board Statement.
"The board stated to the Common
wealth & Southern that If it was the
company's opinion that further dis
NdooAOiLo 4OSuiV AL q OlltAdIt
covering the sale and exchange of
power only, then the Tennessee VAL
ley Authority was willing to extend
the present contract for the sole pur-
pose Of permitting such discussions" +"
Norris, in talking with reporters,
said. Il can't see any reason for re-
newing that contract so long as T. ".
A Is tied up with injunctions"
President Roosevelt appointed .
committee Of high officials recently to
draft a national power policy and a
short time later terminated negotia-
tions with Commonwealth g. South
en and other private utilities concern
ing the proposed pooling of Federal
and private power.
The President terminated the pool
ing negotiations on the same grounds
that Norris urged an end to the T. V.
A-Commonwealth & Southern con-
tract-injunctions which the private
utilities have obtained against the
Federal power development.