Evening star., 1938-01-24
T.V.A.POWERSALE
PLAN DEFENDED
Mcclellan Explains Contracts
In Prepared Speech In
Senate.
By the Associated Press,

DJ Viz hsSVClAD9u FIeeo.
Senator McKellar. Democrat, Of
Tennessee told the Senate today that
the Tennessee Valley Authority's con.
tracts to sell power to ive private con-
Germs permitted disposition Of elec-
tricity banked up by Injunction
suits.
The Injunction suits were brought
by private utilities to stop sale Of
T. v. A. power to municipalities.
The Tennessee Senator, who has
been active in the debate against the
anti-lynching bill. began delivery Of
prepared speech shortly after the
Senate convened
1t was in reply to q speech last
week by Senator Bridges, Republican,
Of New Hampshire that T. v. A had
signed contracts lin the dark of night"
with favored companies"
Senator McKellar asserted that only
temporary contracts were made with
the Monsanto Chemical Co., the
Aluminium Co. of America. the Electro
Metallurgical Co., which Senator
Bridges said is subsidiary OF the
Union Carbide Co.; the Victor Chemi-
cal Works and the Arkansas Light g.
Power Co.
Large Yield Predicted.
The Arkansas Light g. Power con-
tract will yield the T. v. A. $4,000, 900
annually during the five-year life OF
the contract, the Tennessee Senator
declared. quoting lengthy statement
by David Lilienthal. T. v. A. director.
as saying the contract was entered
into in order to produce revenue from
water that would otherwise be wasted"
Senator McKellar added that Ar
kansas light customers were given
rate reduction as soon as the T. v.
A. contract went into effect
The Senator (Bridges)." McKellar
asserted in his discussion OF the con-
tracts. evidently imagines that he
is Republican candidate for Presi-
dent on an old-time Hoover platform,
which no one ever was able to under
stand and no one ever will be able
10 unQeTStdNQ.
The Tennesseean then went on to
say that the contract with the Alumi-
mum Co. Of America was highly bene-
fcial to the T. " A." because it made
possible the disposition Of . large
amount Of reserve power.
THE Senator says" Senator Nc
Kellar declared, "the Aluminium Co.
Of America is saving by its contract
with the r. v. A. perhaps 100000 a
year plus an indefinite sum which he
does not state OF course, this Is a
mere statement from the Senator and
Is not backed up by the facts at all
and could not be.
But suppose such were the facts.
the T. v. A. makes $4,000, 900 out Of
the contract during its term. S3,0oo.-
600 that is simply taken out Of the
water, so to speak, because nobody IS
using that power and will not use that
power during the term Of the con-
tract"
Effort to Avoid Waste.
In answer to a question by Senator
nuiNOI. DciIiuCidI, VI 1uUldHd SENATOR
McKellar said that If surplus" power
was not sold 10 industries It would
60 to waste"
Senator Vandenberg, Republican,
Of Michigan, then asked why. with
surplus power now available. It was
necessary to build 50 many moro
T. V. A. dams"
Senator McKellar replied that con-
tracts to supply power to Memphis
Chattanooga, Knoxville and other
cities. which had been blocked By in
functions, would call for the new
power developed
The Tenneseean asserted that the
T. V. A. and other power policies Of
the administration had resulted in re-
ducing power rates in this country
S556,000,0o0 a year.
Senator McKellar refused to permit
Senator Bridges to question him.
THE Senator (Bridges) refused to
yield to me the other day" Senator
Mckellar said. II now refuse to yield
to him."