Evening star., 1938-04-10
Inquiry Seen
Far>Reaching
Another Teapot Dome
Called a Misnomer
In This Case.
BY JOHN H. CLINE.

1 against 1t, is about to begin the
widely publicized investigation OF
the Tennessee Valley Authority and the
ACTIVITIES OF the private power companies
competing with the Fededal agency.
Assertions that the inquiry will develop
INTO another Teapot Dome scandal can be
classed as pure nonsense. While no one
KNOWS with certainty what the congress
slonal committee will unearth. it is good
bet that disappointment is in store for
those who like their Investigations favored
with liberal portion of corruption and
scandal
In all probability the legislators will find
That T. " A. has spent public money I'M
= wisely, perhaps even foolishly in some in
stances. 1t is not unlikely that the legisla-
tors. at least those not in sympathy with
T, V. A., will be able to make a showing
that certain of the directors have not been
overly considerate of the rights of the
private utilities, and that the benefits re-
sulting from their power policies have been
Offset to some extent by injury to a SUBJ
stantial number of people owning utility
securities. Such disclosures. however.
have nothing in common with Teapot
Dome.
Philosophy May Be Illuminated.
OF far greater significance is the light the
committee should be able to throw on the
economic soundness of the philosophy un-
derlylng the T. " A. and the manner in
which 1t has been applied. To greater
extent, perhaps, than anything else T. "
A. represents a tangible expression of
President Roosevelt's understanding of the
Arole Government should play in adjusting
Inequalities between big business and the
average citizen
The President often has referred with
pride to the T. V. A. power program as
"yardstlck' to measure the fairness of the
rates charged by the power companies
Mr.. Roosevelt is convinced the T. V. A.
experiment has demonstrated that power
can be produced and sold profitably at rates
substantially under those charged hereto
fore by the utilities Spokesmen for the
latter say that T. V. A. has been able to
make its showing because its power pro-
gram has been subsidized with public
money. The committee can and should
ascertain the truth or falsity of that claim
and make its finding available to the pub
lie.
There Is also the question of whether the
Government should compete directly with
the utilities. As matters now stand the
private companies in the Tennessee Valley
are faced with the choice of selling out to
the T. V. A. or continuing a competition
that probably will prove ruinous to them.
Ii this form of Government competition
with branch of private industry can be
legally, economically and morally justified,
there seems no logical reason Why it might
not be extended to other fields. Should
the legislators be able to answer this uues-
ton satisfactorily they will have rendered
a,public service of incalculable value.
Confusion of Issues Expected
In many respects it is unfortunate that
the committee has been burdened with a
mandate to investigate the activities of the
private power companies as well as T. v. A.
While no investigation of T. " A. could be
complete without touching to some extent
on the utilities. a comprehensive probe of
the latter should have been left to another
committee. Its inclusion in the pending
INQUIRY is certain to confuse the basic issue.
There is good reason to believe the COM
m1ttee will be able to expose activities of
the power companies that may offset evil
aence damaging to T. V. A. That the adj
nl1nlstratlon men on the committee will
use such material for that purpose is a
foregone conclusion, but it is not likely
their case will be a convincing one They
will be able to show that the utility men
delayed the T, V. A. program throughout
protracted litigation, and possibly that at
tempts were made to influence commune
ties against the public power program So
far, however, there has been no evidence
indicating resort to bribery or other cor
rupt tactics by the utilities.
Committee Weakened.
The investigation has been prejudiced at
the outset by the decision to conduct it
through a joint committee, with the spon-
sors Of the investigation excluded from
membership. In the first place the sue
cessful investigations of the past have been
conducted by committees of the House or
Senate rather than joint groups. There
seems to be no good reason why a Joint
committee could not make thorough and
competent investigation, but it just hasn't
worked out that way in the past Secondly
the decision of Vice President Garner to
exclude men like Senator Bridges of New
Hampshire, an ardent opponent of the
present T. v. A. administration, and the
Selection Of Senators whose principal quail
hcation Is that they have taken little in
terest In the controversy or have stayed
on the sidelines during the preliminary
diminishing, is bound to weaken the COM
mittee. The investigation at best will be
complex, tedious affair and if it is to be
productive of worthwhile results great
deal Of work must be done by the commit
tee members The present members may
prove equal to the task, but the chances
would be better if Senators with strong
personal interest in the outcome had been
chosen.
So tar the Republicans have but one
Senator on the committee-Frazer of
North Dakota-Senators Borah, McNary
and Capper having refused to serve. Sen
ator Davis of Pennsylvania is considered
q probable nominee
The Democratic senatorial members in
~y..AA