Evening star., 1938-03-05

an 8,000-Word blast at his tUo CO.
directors OF that agency The at
tack charged obstructive tactics for
policies not in the best public in
tereSt and indicated the damages
claim OF Senator Berry and dSSoci-
ateS ON S5,000,000 marble deposits
flooded by the Norris Dam lake con-
stituted an attempt to "detraud"
the Government.
BY the Associated Press.
President Roosevelt, informed off.
Gals predicted today, will act soon tc
end the feud between directors OF
the Tennessee Valley Authority, re-
gardless of any projected congressional
investigation.
Mr.. Roosevelt was represented as
determined that internal dissension
should not be allowed to imperil the
success of T. V. A., designed as &
broad experiment of his power and
social programs
The President evidenced that he
was following the situation closely
when he himself made public yesterday
the suggestion of Director David
Lilienthal and Vice Chairman Har-
court A. Morgan that Chairman Ar
thur E. Morgan retire.
Two days earlier, Chairman Morgan
had Sharply criticized his colleagues
and in effect had said that the T. v. A
could get along better without them
He also demanded a sweeping con.
gressional investigation of the agency
Several proposals for such an investi.
cation have been made.
Clash on Power.
While Chairman Morgan said The
differences went far deeper, the out.
ward manifestations of the dispute
have been largely over power. Ir
this the clash has been principally
between Chairman Morgan and Mr.
Lilienthal.
DR.. H. A. Morgan. whose forte i.
agriculture. has not taken the initia.
tive on this question, but has sidec
with Mr.. Lilienthal.
The latter has sought to keep th<
T. V. A. as aloof as possible from
private power interests in the Ten.
nessee Basin, whereas his colleague.
adversary has counselled more co.
operation and a long-range program
for joint distribution of power pro.
duced at T. " A. dams.
Two years ago there were report
that Chairman Morgan had asket
President Roosevelt not to reappoin
Mr.. Lilienthal and. when the reques
was denied. threatened to resign him
self. A year ago Mr. Morgan issues
an individual statement of policy ad
vocating the idea of cooperation will
private power interests.
Rule or Ruin.
One result was that the T. v. A
was reorganized, John B. Blandford
jr, becoming general manager ant
the board becoming more of a policy
making body than an administrative,
one.
The Berry marble incident whicl
precipitated the open break, mutua
friends said, was only a manifestation
of long-existing dissension
Chairman Morgan, in his March !:
statement, alleged lack of honesty
openness, decency and fairness" OF
the part of Mr.. Lilienthal and Vic,
Chairman Morgan in "co-operatint
against my advice" with Senate
Berry, Democrat, of Tennessee Oh hi
recently disallowed claims for s5,
100000 flood damages to his marbl,
fields in the Tennessee Valley.
The Lilienthal- Morgan letter to Mr.
Roosevelt, written on January 18
accused the chairman of trying t,
rule or ruin" regardless of hi
minority position on the board.
Meanwhile Senator Berry fount
himself faced with increasing oppo
sition in his announced campaign TO
reelection to the Senate this year
Representative j. Ridley Mitchell an
nounced his candidacy and Repre-
sentative McReynolds said he hat
been authorized to announce tina
Maj. Phil Whitaker of Chattanooga
also would enter the race Their
remained possibility that MIR. Nc
Reynolds would run, too.