Evening star., 1938-08-16
DR.. A. T. MORGAN
SCORED LEASE:
Fly Says EXT. V. A. Chief
Wanted to Take Berry
Claim to President.
BACKGROUND

BACKGROUND
FOLLOWING custer of DR.. Arthur E.
Morgan as chairman of T. v. A. By
President Roosevelt, Congress au-
thorised investigation uith Senator
DonGhey as its head. The commit
tee has been deluing into pdriouS
phases OF T. V. A. activities.
Ey the Associated Press.
KNOXVILLE, Tenn, Aug. 16.-
James Lawrence Fly, general counsel
for the T. v. A., charged today that
Dr. Arthur E. Morgan, ousted T. V. A.
chairman, favored "unethical" and
unfair" methods OF settling the Berry
marble claims.
Testifying before congressional in
vestigation committee. Mr.. Fly Wig
orously criticized the former chairman
and defended the T. v. A. legal staffs
handling of litigation resulting from
claims against the Federal agency for
damages to marble lands leased by
Senator George L. Berry, Democrat,
of Tennessee and associates.
Previously, Mr.. Fly said. DR.. Morgan
favored having President Roosevelt
call Senator Berry "on the carpet" to
settle the claims.
DIR. Arthur Morgan's course was
one of administrative coercion" Mr..
Fly asserted. That is, he suggested
that Senator Berry be called before
the President"
Opposed Method.
Il opposed that because, first, I
thought it hardly the function of Pres
ident Roosevelt to try to adjudicate
these claims; Furthermore. that was
an unfair way of getting adjudication
of personal claims. did not approve
of it from an ethical point of view"
Mr.. Fly declared there never was
any difference of opinion among the
T. v. A. legal staff regarding the
investigation of the Berry claims. DR.
Morganhad charged counsel soft ped
aled" evidence of bad faith" on the
part OF the Berry interests.
Questioned by Representative VOL
verton, Republican, of New Jersey.
Mr. Fly said he had Is assistants at
an average salary of $4,000 annually,
with at least as many clerical
workers.
After Mr.. Fly, the investigators
were scheduled to hear Senator Berry's
associates in the marble case. Senator
Berry was expected to appear to-
morrow.
Talked "of Millions"
Mr.. Fly testified yesterday that
Senator Berry was "just a country
boy trying to pull city slicker trick"
in the claims for damages to his lease
holdings The leases were condemned
last winter as having no commercial
value.
The attorney said that while the
Senator never mentioned definite
value on his property, The talked
expansively in terms of millions"
Representative Thomas jenkins, Re-
publican. of Ohio questioned Mr.. Fly
closely on the conciliation agreement,
which Mr.. Fly said he drafted in such
a way that 1t did not entangle the
Authority.
Didn't you draw up an illegal con-
tract with premeditated plan not to
hold to 1t if you lost before con-
ciliator?" asked Representative Jen-
kins.
Not entirely" Mr.. Fly replied, And
the word 'unenforceable' is much bet
ter than Illegal"
The attorney asserted the Berry in
terests forced the Authority into con-
demnation proceedings, adding: If
they hadn't stuck their neck up. we
could have gone on, and flooded the
land and said nothing about it,"
Not Binding on T. v. A.
MIR. Fly previously has testified he
drew up the conciliation document in
such a manner that the proposed con-
ciliator had no power to make re-
port, finding or award in the case and
that the T. v. A. was not bound by
the agreement.
Didn't you plan to take advantage
Of this poor United States Senator
who didn't know very much?%S Repre-
sentative Jenkins continued. "You
wrote up an agreement that you and
the Board of Directors didn't intend
to live up to. If the geologist had
gone against you, what would you
have done?"
I'VE would have gone to a con-
demnation court" retorted Mr.. Fly.
who has insisted the r. v. A. acted
in good faith.
The committee agreed to hear Di-
rector David E. Lilienthal Friday. to
be followed by T. v. A. Chairman Har-