Evening star., 1938-07-22
PR0BERS S|MP0UND
LEGAL OPINIONS
ONT.V.A. MINUTES
Congressional Body Also
Seizes Changed Records
of Board Sessions.
ALL DIRECTORS SAID
-> TO HAVE MADE SHIFTS
Aide Tells of Farley With DR..
Morgan After Order Not to
Contact Chief.
b. the Associated Press,


KNOXVILLE. July 22.-Congres-
sional Investigators today impounded
all legal opinions by T. V. A. counsel
with reference to changes in minutes
of the Board OF Directors of the
Tennessee Valley Authority.
The action was taken unanimously
on motion of Representative Jenkins,
Republican, of Ohio, the committee
impounding the legal opinions along
with the actual minutes.
Charles Hoffman. assistant to the
board, testified "all three directors"
of the T V. A-fOrmer Chairman
Arthur E. Morgan and Directors David
E. Lilienthal and Harcourt A Morgan
had ordered changes in the minutes.
Mr.. Hoffman said yesterday changes
were made mostly by Mr.. Lilienthal."
Elaborating on this statement to-
day. Mr.. Hoffman said MIR Lilienthal
always called these changes to the
attention of the other directors.
Told Not to See Morgan.
Under questioning by Francis Bid
die. committee counsel, Mi. Hoffman
said the first change in the minutes
was made November ,, 1888, and
others at intervals since.
Mr.. Hoffman, VINO previously said
he had orders not to contact DR..
Morgan. told of a conference last Sum-
day with the ousted chairman and his
attorney, E. H. Cassels of Chicago.
Mr. Cassels told him, he said, that
81 was to give Biddle report on our
confidential interview"
He said Mr. Biddle told him to make
a report on the meeting for our files"
outlining the topics discussed.
Il thought this a rather strange
procedure" Mr.. Hoffman said. but was
interrupted by MIR. Biddle, who asked
him to make no personal observations.
The conference was to discuss the
changes in board minutes, Mr.. Hoff-
man said.
Charges Many Changes Made.
DR.. Morgan concluded four days of
testimony yesterday. most of it directed
against his former associates. Mr..
Lilienthal and Harcourt A. Morgan,
present T. V. A. chairman
Mr.. Hoffman said board minutes
were changed many times mostly
by Mr. Lilienthal" and that he made
> deletions on orders from the director.
One of them, he said. concerned
statement that Wendell L. Willkie,
president of the Commonwealth e.
Southern Corp, had agreed in nego-
tiations with Mr.. Lilienthal to the
transfer Of certain electric properties
in the valley from private to public
ownership
Another, he asserted, was in connec-
tlon with request by Mr.. Lilienthal
that Secretary of Interior Ickes speed
Public Works Administration loans to
Sheffield and Tuscumbia, Ala, for con-
struction of municipality owned plants
for distribution of T. v. A. power.
Lilienthal Gives Explanation.
Within a few minutes after Mr..
Hofman's statement, Mr.. Lilienthal
released letter in which he gave his
explanation of the deleted minutes.
The Willkie statement was deleted,
he said, because the secretary made
an inaccurate summarization of his
statement regarding the negotiations.
Regarding the omission of the item
dealing with P w. A. loans, he said
that although Dr. Morgan charged the
omission gave the T. v. A. an unfair
advantage" in a recent accompany
power suit at Chattanooga, the record
shows conclusively this omission could
have no effect on the litigation - -"
Ruling Changed.
A committee ruling that all T. v. A.
records and personnel be cleared"
through Committee Counsel Francis
'Biddle and T. v. A. officials was
changed yesterday to give Dr.. Morgan
and other witnesses, designated by
Committee Chairman Vic Donahey,
Democrat, of Ohio, free access to T.
v. A. personnel. No reports need be
made either to counsel or T. v. A.
>>~, Mr. Hoffman testified that James
Lawrence Fly, general T. " A. counsel,
told him he could have no contact
with DR.. Morgan land when 1 say no
contact, l mean no contact"
The witness said he protested it
was his right as citizen and tax
payer" to see and talk to DR.. Morgan
If he wished.
Mr.. Fly replied, he said, that IF you
feel there is adequate grounds for
making any exception to the rule in
your case, you have my authority to
take it up with the board"