Evening star., 1938-05-28

now discloses the ~
sensational fact n.,,,
that important
paragraphs were deleted from the OFF,
cial proceedings.
Just how vital the omitted informa-
ton is to the whole controversy being
waged in the courts between the util-
tiles and the T. v. A. may be cleaned
from an examination of various docu-
ments now matter of public record.
First, Chairman Morgan places on
May Is before the congressional in
vestlgating committee the actual min
utes of the T. V. AS meeting of the
board of directors of November 2, 1888,
in which occurs the following text:
David E. Lilienthal reported the
applications of the Alabama towns of
Tuscumbia and Sheffield for loans
from the Public Works Administration
with which to build power distribution
systems had been on file for two
months and that he had consulted
with Secretary of the Interior Ickes
requesting that immediate action be
taken on these applications"
places in the record the revised min
utes in which the quoted paragraph
is omitted altogether and no substi-
tute for it inserted.
Third, David Lilienthal, in his reply
this week to Chairman Morgans state
ment, omits all reference to the deleted
minutes.
Supreme Court Decision.
Fourth, the Supreme Court of the
United States on January 8, 1888, in
deciding that P. w. A. grants of funds
to municipalities were constitutional
did SO on the basis of statements by
the district court to the effect that no
evidence had been adduced with re-
spect to coercion or solicitation of mu-
inequalities. Said Justice Sutherland,
in speaking for the Supreme Court:
Each OF the municipalities involved
In this suit determined to enter into
che electric distribution business of
ITS own free will. There was no
solicitation or coercion on the part
OF any of the defendants, their agents
or subordinates There was and is
no conspiracy between the defendants
and any other persons, nor is there
any other effort on the part of any
of the defendants to, nor are their
actions motivated by a desire to cause
injury or financial loss to the plaintiffs
or to regulate their rates or electric
rates generally or to foster municipal
ownership of utilities"
Fifth, a three-judge Federal court
ruled on January 81, 1888, in a case
brought by 19 utility companies
against the T. V. A. that there had
been no conspiracy between the T.
v. A. and P. w. A. "to finance the
construction of duplicating distribu-
ton lines and systems in various
municipalities and co-operatives for
the purpose of using T. v. A. power
and selling that power at rates so
low as to constitute competition de-
structive to the complainants' busi-
ness"
Evidence Seen Buried.
The chief reason why there was
no evidence was that the T. V. A.
succeeded in keeping it buried. This
was done, it now develops. by delet-
ing evidence from the minute books.
Small wonder that the T. v. A. feared
to put Chairman Morgan on the
stand as a witness in that trial. For,
though an employe of the Govern
ment, he did not feel that he ought
to be party to the suppression of
truth.
What will happen now that the
sensational evidence of a conspiracy
between the P w. A. and T. v. A.,
on the one hand, and the municipali-
ties on the other has been brought to
light? Will the Supreme Court of
the United States take judicial notice
of it when the decree of the three
judge court is up for review soon?
Will the Senate of the United States,
which has before it an amendment
frankly fostering municipal owner
ship, require by law that the T. v. A.
shall neither directly nor indirectly,
openly or secretly, influence the grant,
ing of any loans by the P. w. A. for
the purpose of building municipal
plants?
And, lastly, will the President of
the United States condone the altera-
ton of the official minute book of
one of his own agencies and permit
without punishment one of his own
appointees to do that which he would
be the first to condemn if it were
perpetrated by the directors Of pri-
vate corporation? It would seem that
If the President does have the power
of removal or suspension, enough
evidence has been uncovered already
for him to suspect that maybe he
made a hair-trigger decision when
formally removing Chairman Morgan.
This aspect, however, is secondary.
because the episode itself has use
fully served to bring out into the open
the dangers of bestowing on one-man
administrators those powers which
Congress alone should exercise. II
authority is delegated to boards or
commissions it should be so specific
that conspiracies between Government
agencies to destroy, as in this case,
a $4,000, 100000 industry cannot go
on without some check either by Con-
eress or by public opinion through
rules requiring the fullest publicity
to the proceedings of these Govern
ment agencies.
The T. v. A. is revealed at last as
the motivating influence in getting
the p. w. A. to stimulate municipal
government to go into competition
with private utility companies. 1t ap-
pears to have been Mr.. Lilienthals
concept Of his job that he merely
needed to request immediate action
by the p. w. A. and action was forth
coming,