Evening star., 1938-03-11
lPicture on Page BIZ
By JOHN II. CLINE.

Sy S0AA-N SAA4NIs
Refusing to obey the demand fror,
President Roosevelt that he produce
evidence in support of grave charges
against his co-directors of the Tennes-
see Valley Authority, Chairman Arthur
E. Morgan today virtually nullified the
Presidents effort to smooth out the
dissension among the board members.
In an effort to accomplish that OBJ
jective, the President summoned
Chairman Morgan and the other di.
rectors, David E. Lilienthal and DR..
Harcourt Morgan, for lengthy con-
ference.
At the outset of the conference the
President informed the three directors
he wanted only evidence in support of
the charges made by Chairman Nor
gan against his associates. and in turn.
by Mr.. Lilienthal and DR.. Morgan
against the chairman
IF there be no such evidence, then
there should be either a definite end
to such personal attacks and asper-
sions or else resignation from the
board"
Attacks Meeting.
To this Chairman Morgan re-
sponded:
During long period I have re-
peatedly but unsuccessfully endeavored
to secure the Presidents adequate con-
sideration of grave conditions within
the T. v. A. I am of the opinion
that this meeting is not, and in the
nature of the case cannot be, an ef-
fective or useful fact-finding oc-
casion'
During the conference. the President
served notice on the three directors
that he proposes to take such action
as may seem appropriate" to eliminate
the dissension among the boards men,
bers which has substantially crippled
the operations of the Federal power
agency.
Departing from the usual procedure
the President is making public
stenographic transcript of his discus
sion with the T. V. A. directorate.
The first page of the transcript, which
is being released in takes, quoted the
rIeSioent as 1OllOWS.
This is an opening statement by
the President. This conference is
for the purpose of giving hearing on
grave charges which members of the
Board of the Tennessee Valley Auth
ority have directed at each other. As
Chief Executive, I cannoC ignore
charges of this character concerning
an executive agency of the Govern
ment. I have a responsibility to de-
termine whether or not the facts bear
them out and thereupon to take such
action as may seem appropriate"
Il have the right to assume that,
in accordance with the act creating
the T. V. A.. every member of the
board believes in the feasibility and
wisdom of the act and I am asking
you whether that is correct. The law
requires it. Is that correct?
All three directors replied in the af-
firmative
Secondly" the President continued,
II have right to assume every men,
Der of the board entered on his duties
prepared to do his part to cooperate
with his fellow members to make the
act work
This statement also elected af-
firmative responses from the three
directors.
Teamwork Necessary.
And finally" said the President,
Il have the right to assume that every
member of the board is prepared to
recognize that a certain amount Of
team work is necessary to make the
act work. Am I right on that?"
All three directors agreed that he
was.
The next "take" consisted Of q
somewhat lengthy statement from the
President.
Asserting there are persons and
powerful interests" in this country
that profess to disbelieve in the feasi-
bility and wisdom of the act, the Presi-
dent said they are quick to seize on
the simplest act or slightest word of
members of the board to discredit the
administration Of the act"
The President then lectured the di-
rectors on certain principles OF public
administration" declaring action of a
board must be determined by a ma
jority Of its members. This was con-
strued as a rebuke to Chairman Nor
gan, who has been consistently in the
minority.
The President added he has IRE
luctantly become convinced that the
work of the, T. v. A. board is now
being impeded and that the real issues
of public policy which may exist
among it's members are now being