Evening star., 1937-05-14
7. y. A. EXPANSION
BAN IS 0VERRULED
BY APPEALS COURT
New Power Projects Are
Held Legal in Setting
Aside Injunction.
INTEREST OF PUBLIC
DECLARED INVOLVED
Flood Control and Production of
Electricity Regarded Vital
Community Factors.
BACKGROUND

BACKGROUND
With such cities as Knoruille,
Chattanooga and Memphis seeking
cheap po,Uer benefits of T. V. A.,
latter Das hanstrung in extending
serUice into neU territories by in
junction granted private utilities
by Judge Gore last December.
Action of Sirth Circuit Court to-
day dissolues this obstacle and
leaves Authority theoretically free
to 90 ahead ptth expansion pro-
gram. Appeal by private COM
panies inUolUed may impose neU
delays, hoUeuer.
BY the Associated Press.
CONVICTION, KY, May 14.-The
Sixth United States Circuit Court of
Appeals ruled today that a tempo
rary injunction halting expansion of
the Tennessee Valley Authority was
against public interest, both as to
flood control and power production,
and set aside the restraining order
granted last December by Federal
Judge John Gore of the Eastern Ten
nessee district.
1t returned the case for hearing
on the merits of the complaint OF the
19 private utilities which won from
Judge Gore sweeping injunction
forbidding T. v. A. proceeding with
new construction not then under way.
Judge Gore permitted the Authority
to continue construction already
started.
Loss to Public Seen.
The Circuit Court opinion, written
by Judge Charles G. Simons. held
that both the T V. A. and the public
would suffer great loss unless Judge
Cores order was set aside. While
the court was unanimous in agreeing
the injunction should be vacated,
Judges Florence Allen and Charles
Norman disagreed with portions of
the Simons opinion
The question of constitutionality of
the T. v. A. was not involved.
Judge Simons' opinion overruled a
contention of the T. v. A. attorneys
that Judge Gore had no authority to
pass on the question, since T. v. A.
headquarters was in Alabama.
He declared T. v. A. has mo re-
stricted situs.'
THE authority. he said, sis au-
thorized under the act to carry on
operations upon the Tennessee River
and its tributaries without respect to
Stofn linoe ha ife of ,o;o
districts, and may acquire by purchase
or condemnation anywhere lands,
easements or rights-of- necessary
to carry out the provisions of the act"
Public Interest Involved.
ITO appraise the injury to the de-
fendant IT. V. Al from the disorgan-
lzation which must follow substantial
or even partial cessation of activity
Is impossible but that it will be great
cannot be denied. So also in respect
to the public interest involved The
loss, inconvenience and discomfort
of the residents of the area in failing
to obtain cheap electric energy, if it
be found in the end that it may law
fully be supplied to them, may like
wise not be measured but equally in
controvertible is it that it will be
great.
Insofar. also, as restraint will de-
lay effective control of the flood
waters of the Tennessee River and
its tributaries, the public interest in
the achievement of that objective is
similarly beyond appraisal. Human ex-
perience of the catastrophe effect
upon great areas of overf1oWing rivers
is too recent and too painful to permit
of any doubt either as to the existence
or the extent of the public interest
that is threatened by the maintenance
of the injunction and against which
the threat to private interests must
be balanced. From such possible in
jury, it is clear no bond can adequately
safeguard the public interest"
Concurring with Judge Simons' con-
clusion and in the main in the
opinion" Judge Allen, highest ranking
(See T. v. A., Page A-5)