Evening star., 1938-03-19
Text of Morgan Statement
Chairman of T. Y. Il. Rea6irns Contention That
Only a Congressional Inquiry Would
Disclose True Facts.

Following is the text of the state
ment submitted to President Roosevelt
yesterday by Chairman Arthur E.
Morgan Of the Tennessee Valley
Authority Mr. Morgan claimed his
presentation of the statement was
interrupted so frequently that the
transcript of the hearing did not
represent a clear statement OF his
position.
Dear Mr.. President:
AT the conference held with you
last Friday I stated that could not
participate for the reason that such
a procedure could not bring out the
many pertinent facts which must
necessarily be considered in order to
arrive at an informed and correct
conclusion. stated that the meeting
was not and could not be useful,
fact-finding occasion. You must know
how much I disliked to put myself in
position of even seeming not to
comply with your wishes.
Il took this course-hard for me,
assure you-not in the least in any
spirit of defiance, but with q very
deep sense Of obligation to YOU and
respect for your high ONCE. and 1
feel, with very deep conviction, that
the course felt compelled to take
was altogether in the best interests
of the T. v. A.
Reconsiders Question.
During the week I have reconsid-
cred the question OF the right course
for me to pursue, and want you to
know that I have had uppermost in
my mind the welfare of the T. v. A.
and my relations to you, through
whose appointment have been in
trusted as one OF three to organize
and administer this great undertak-
ing, in such a manner that it would
contribute its part to the achievement
Of the high social objectives of your
administration
THE reconsideration which I have
given to this whole matter in the light
of the record which has been made
thus far has confirmed my opinion
that it really is not possible in sessions
of this sort to 60 deeply and thoroughly
enough into the facts pertinent to the
issues to get the truth with respect to
these matters. I do not believe that
it is either wise or possible to attempt
to arrive at a conclusion by taking
statements Of board
members, including myself.
Cites Berry Case.
May I point out by way OF illustra-
ton one single point raised in the dis
cussion Of the Berry marble case-one
OF the simplest points upon which
statements were made at last Fridays
meeting. 1t was stated that until just
shortly before the hearing of the case
before the commissioners in December,
1887, nobody had any evidence of bad
faith, that there we're only rumors.
The record shows that under date of
July l3. 1886, sconciliation agree
ment' was made with Maj. Berry 1
had no notice Of the meeting at which
the agreement was made and I was
not present. I protested against this
agreement on the ground, among
others, that it recognized value in the
Berry claims which on the facts then
known showed all the earmarks of
being made in bad faith. I continued
to protest. Nevertheless on February
rs. 1887, as shown by the record, the
agreement was again approved. The
record shows that voted against that
resolution. Now the question is, What
were the facts known by all three di-
rectors at that time which led me,
and should have led the other two,
to the inevitable conclusion that there
was bad faith in the presentation Of
these claims?
AT this meeting on February Is,
1887, when the Cancellation contract
was again approved by the board, I
and the other members of the board
had before us the following positive
facts, which to me showed clearly
and assert they would show to any
reasonable and prudent man-that
these claims were made in bad faith:
Il. The T. v. A. geologists, inde-
pendent biologists Of high standing
and a wholly independent committee
OF practical marble experts, after
thorough investigation had reported
that the marble deposits were of alb
solutely no value commercially. DR..
Prouty, professor Of geology of the
University Of North Carolina, had re-
ported, in referring to these marble
deposits, that none of them were
worth quarrying." DR.. Burchard of
the United States Geologic Survey
made similar report. All the others
agreed with this finding of no valve.
Not Named in Titles.
'2. Record titles to the leases were
not in Maj. Berry. He was a stranger
to the record.
'3. Maj. Berry, in August, 1896,
had positively declined to state to the
board at my request what his interest
was, how he had acquired it and the
amount he had paid.
=. There was then and had been
continual improper and unseemly
pressure exerted upon the board on
the part Of Maj. Berry for payment
by way Of. private and non.public