Evening star., 1938-08-25
I. y. A. QUIZ TOLD
OF AD SWITCH
Power Firm Gave Account
to New Paper Opposed
to Agency.
By the Associated Press.

By the Associated Press.
. CHATTANOOGA. Tenn Aug. 25.-
Ar officer of the Tennessee Electric
Power Co. today informed the con-
gressional T. v. A. Investigating Com
mittee how his company switched its
advertising from newspaper support
ing T. V. A. to new paper opposed
to the Authority.
John c. Costell, utility vice presi-
dent, told the committee the Chatta-
nooga Free Press started as second
afternoon daily here in the fall of 1886
and shortly afterwards the power COM
pany switched most of its advertising
from the Chattanooga News to the
Free Press.
Francis H. Biddle, committee coun-
sci, brought out the information as
part of his endeavor announced yes
.terday to show that Tennessee Electric
had subsidized newspapers in its
fight against T. V A
The power company vice president
said the company's contract with the
News expired in February, 1885.
Cites Circulation Drop.
I'VE didn't renew it ne stated.
"as the papers circulation was going
off considerably at that time and this
was common talk in town.
Since the T. V. A. was created in
1888 the News had fought for munic-
ipal ownership of a power distribu-
ton system here. Under all cir
cumstances l did not consider at that
time that advertising in the News
was worth $101 an inch"
Mr.. Costell said the Free Press al
lowed him a rate of 81 cents an inch
for week days and Sl.05 for Sunday,
which, he added, was the same rate
charged by the Chattanooga Times, a
morning paper.
Sums paid for advertising by the
power company, as submitted by Mr.,
Costel, follow: l934-NewS, So
1928; Times. sl229l49. 1886
News, sl06528; Times, s17,08459.
1e36-NewS, no advertising; Times,
sl4,33420 Free Press, from Septem-
Der, S8,89202. l937-NewS, $4,000;
times, sl3.22e92; Free Press. s19.-
87384; 1888, first six months News,
no advertislng: Times, S7,675 81; Free
Press, Slo,923.24
Milton Owns News.
The Free Press is owned by Roy
Mcdonald, also owner of grocery
chain here. The News has for its
publisher and general manager George
Fort Milton, strong New Dealer and
T. V. A supporter who recently
served temporarily as an aid to Secre-
tary of State Cordel Hull.
Mr.. Bidd.a said yesterday he would
show that private companies "subsi-
died newspapers, purchased lots for
voting purposes and supplied whisky
at polls"
He said that NJ. Mcdonald had in
dorsed note with Harold Humphries,
active opponent OF the local power
project.
Editorial Opposition Cited.
Mr.. Biddie brought out Mr.. McDon-
aids paper opposed the proposed pub
lie power project FOR Chattanooga edi-
torially. and that Mr.. Mcdonald pur-
chased IS preferred shares in the Chat
tanooga News, which favored the pub
llC power eOltCIldIlE.
Mr.. Humphr.es explained that on his
own initiative, ne had drawn up two
petitions for municipal referendum
on the pubic power question. the last
of which he had circulated by women
at the city voting places July II during
the registration for the Democratic
primary Mr.. Biddle charged that the
petition circulated was misleading, and
called witnesses who said signers in
cluded colored persons and others who
did not understand its contents.
Irked by T. Y. i. Indifference"
One witness. l.. j. Wllhoite, head OF
the electric power board, said the T.
v. A. gave no assistance to the pro-
pknents of pubic pCwc. in the 1885
referendum campaign, and added he
was incenSeG at the.y indifference"
Fred B. FraZie", head Of a citizens
and taxpayers association. which op-
posed the power program, testified that
he knew OF no T. V. A. einploye who
sought to influence voters.
He issued q statement subsequently,
however, in which he asserted the gen.
eral activities o. T. V A. and other
Federal agencies. such as indications
the building of the nearby S25 100000
Chickamauga Dam would depend upon
the vote. we're the dominating inf1u-
ences leading to the success Of the
measure.