Evening star., 1938-03-13
INQUIRY ON T.v.A.
BYCONCRESSSEEN
Dr.. Morgan's Friends Claim
. Enough Senate Votes for
Thorough Probe.

DeSplte pressure on DemOcrdtlc
Senators to block a congressional in
vestigation of the Tennessee Valley
Authority, friends of Chairman Arthur
E. Morgan declared last night check
of Senators had disclosed there are
sufficient votes to secure the thorough
investigation of the Authority asked
by the King-Bridges resolution.
The first test in the House will come
when the conference report on the
Gilbertsville Dam is submitted. The
Senate bill includes an appropriation
OF S2,700,000 for starting construction
on this so-called key" of the T. V. A.
system. The conference is in dis
agreement on retaining it and If there
Is a House vote it is expected the whole
T. V. A. matter will be gone into and
will furnish an accurate forecast of
what may be expected on vote for
an investigation.
Senator Norris, Independent, of Ne
braska, who has been the leading de-
fender of the T. v. A.. yesterday was
still considering whether to introduce
a resolution calling Cor the custer of
DR.. Morgan. He said yesterday the
refusal of DR.. Morgan Friday to answer
questions by President Roosevelt were
unjustitiable and demonstrated Dr.
Morgan was not fit to remain as the
T. V. A. chairman
Refuses to Retreat.
ut seems to me- said the Nebraska
Senator. that DR.. Morgan has pretty
we'll demonstrated that he isn't fit to
be on the T. V. A. Board l can't un-
derstand why he didn't answer the
Presidents questions. 1t seems to me
that he just wants to smear"
In an all-day session Friday Dr.
Morgan doggedly refused to retreat
from his stand that the publicized
meeting at the White House with the
other two directors, David E. Lilien-
thai and Harcourt A. Morgan. lis not
and, in the nature of the case, cannot
be an effective or useful fact-finding
occasion"
Opinion was expressed on Capitol
Hill yesterday that if Senator Norris
does press for the custer of Dr. Nor
gan it will really play into DR.. Nor
gan's hands. in that it will effectively
force congressional investigation. So
intrenched is this idea among the
friends of DR.. Morgan they are now
planning deliberately to introduce a
resolution demanding the removal of
DR.. Morgan's co-directors. A leader
in the movement is Senator Bridges,
Republican, of New Hampshire.
Probable Motive Explained.
Those sympathetic to DR.. Morgan
say they believe the chairman was
not ready Friday to submit actual
proof of the Wrongdoing and corrup-
ton which he had charged against the,
other two members of the board. His
lnsistence on congressional inveSti-
cation is thought to be based on the
idea that only in that way, with full
publicity and with the power of sub
pocna to get at records which he has
been denied access to by the other
members, can he make out a case.
All the activity and maneuvering
which is going on, by administration
WheelhorSes in the Senate to line up
other Senators behind the Norris reso-
luton for a Federal Trade Commits
sion investigation, was aScribed by
Senator Bridges to desperate fear
of the administration that the flood
gates will be opened by congress
sional inquiry.
Whatever the case, no direct action
is expected until Friday, when Dr.
Morgan will submit further state
ment to the President.
Although Dr. Morgan was mac
cessible here yesterday his friends as
serted with finality that he won't re-
sign 'if his health holds out" DR..
Morgan is troubled with a bronchial
affection.
suggestion ascribed to Vice Pres
ident Garner that ''all three should
resign" is not regarded with favor
in DR.. Morgan's camp. 1t was point
ed out that, since President Roose-
welt already has shown his sympa-
thies by permitting the use of let
ter to him written by the majority
members of the board the resignation
of all might result in acceptance Of
all with later reappointment of Mr..
Lilienthal and Harcourt Morgan.
Deal Reported Confirmed.
Senator Bridges is said to have con-
firmed reports that the International
Corp, sold phosphate
rock land to the T. V. A. for $678,00O,
the land having cost the corporation a
few years earlier only $l50,815. This
represents a profit of S527.l85, or
nearly 400 per cent.
President J. J. Watson of the In
ternational Agricultural Corp. in
formed stockholders of the profitable
deal at the annual meeting of the
stockholders January Is.
The acreage involved was $50 acres
in Williamson County, KY.
According to c. Neil Bass, admin
istrative assistant to Director H. A.
Morgan, the only consideration which
the T. V. A. had in the matter was to
get rock phosphate for their needs.
I'VE bought it on the basis Of what
1t was worth to us" he said.
Senator Bridges remarked yester-
day, 1T would be reasonable to sup
pose that the land could be purchased
for price somewhere near the pur-
chase price. At all events, condemna-
tion proceedings would have been the
ordinary course to pursue"
100000 Fund for Plant.
From an authoritative source it was
learned last night that Secretary of