Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-08

Court suit against the power
agency because they were worried"
that he would throw the case"
Beginning his defense of the Ten.
nessee Valley Authority, Senator
Norris, independent, Of Nebraska, told
the Senate this afternoon he had
been shocked beyond expression" by
the attitude Of DR.. A. Z. Morgan.
chairman Of the T. v. A. board Of
directors.
The bitter controversy between
Chairman Morgan and David E.
Lilienthal. one Of his two co-directors,
has disrupted the functioning Of the
Authority, resulting in the introduc.
ton in Congress Of several resolutions
for an investigation of the agency.
Senator Norris has urged that the
Federal Trade Commission be disignat-
ed to make any investigation.
This suggestion has been opposed
by other Senator's. notably Bridges.
Republican, of New Hampshire. and
King. Democrat. Of Utah, who con-
tended such an inquiry could be Moth
ing more than . "whitewash" Of T.
v. A. ~...s-..
The Nebrsska Senator, known as
''the father of T. v. A." said he had
been intimately associated with Chair
man Morgan until about 4 year ago
and had formed q very deep affection
| for him.
Norris Assails Jealousy.
when DR.. Morgan WAS named to
the board of T. v. A." Senator Norris
declared, Il believed he was in SYM
pathy with the project and would en-
force the laws of Congress with re-
spect to it. Then I was shocked BE-
yond expression, and suffered untold
agony of heart to discover, subse-
quently, that he was moved by such
intense jealousy of his associates that
he could not adopt a reasonable APP
proach to the problems confronting
him.
When Mr. Lilienthal was up Tor
reappointment DR.. Morgan came to
my Office and told me he would resign
If his associate should be restored to
the board. was shocked by his vio-
lent language on that occasion. But
still sought some concrete explana-
ton of his attitude. I had numerous
interviews with DR.. Morgan and spent
many long hours bordering the prob
lem, but I have never been able to
discover any single concrete instance
of wrongdoing on the part Of Mr..
Iilienthal."
Director Lilienthal outlined for pub
lie utilities companies . five-point
basis on which he would negotiate for
the purchase of properties In the
Southeastern States.
The points were covered in letter
to Wendell L. Willkie, president Of
the Commonwealth & Southern Corp,
. billion dollar concern with import
ant subsidiaries in the Tennessee VAL
ley.
Mr.. Lilienthal said the r. v. A. and
private companies would have to take
the following into consideration:
% A study of the operating rec
ords Of the companies for the purpose
OF obtaining electric revenues, ex-
penses and net earnings over . period
Of years.
90 A study Of the fixed capital
records relating to the cost Of the cleo
trio generating, transmission and dis
tribution properties involved.
General Field Survey.
90 A general field survey Of the
electric properties.
a. A study Of the accrued depre-
citation of such electric properties.
(5) A study Of the financial history
of the Tennessee Electric Power Co.
Mr.. Lilienthal wrote in reply to Mr..
Wilkes letter Of March S accepting
the T. v. A. directors proposal for
the resumption Of negotiations be-
tween T. v. A. and private utilities
for acquisition Of electric facilities.
Mr.. Willkie, in public statement on