The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-01-25
NEGOTIATIONS
BY LILIENTHAL
AUTHORIZED
Directors Ready to Move
Into New Policy Phase
for Vast Project
FOLLOWS VALUATION
BY 3.JUDGE TRIBUNAL

WASHINGTON, Jan. 25. (UP)
The Tennessee Valley Authority
today took first steps toward &C.
QUESTION of private properties in
its operating area. authorizing
David E. Lilienthal to open nego-
tiations for possible purchase of
physical holdings Of private OPP
orators.
The move followed by approx
mately 10 days the suggestion Of
President Wendell L. Willkie Of
Commonwealth & Southern Corp,
that the government purchase in
entirety its properties facing COM
petition from the federal "yard
stick" project. Commonwealth &
| Southern valued its holdings in
the IVA area at approximately
$645,OO0,0o0.
The order, approved by the
board of IVA directors, was the
first move toward development Of
new policy for the vast federal
project following it's unanimous
victory in federal court at Chat
tanooga last Friday. Further de-
velopment of policy and possibly
new split in the iva directorate
are anticipated at President Roose-
velt's utility conference Thursday
to consider q proposal that Ten
nessee and the IVA cooperate in
acquisition of properties of the
Tennessee Electric Power Co.
The board of directors an
nounced that in view "of recent
developments" 1t has authorized
L;llenthal to conduct negotiations
with private utilities and with mu-
inequalities, mutual associations.
rural associations and other public
agencies, looking toward the pos.
sible sale by private utilities of
electric properties "to such pub
lie agencies and to the IVA"
"The board further authorized
Director Lilienthal to confer with
other federal branches and agen-
cies having an interest in the sub
ject matter" the announcement
said.
The announcement indicated
that the IVA directorate, support
ed by the unanimous valuation Of
their project by the federal court
last week, are now ready to move
the vast project into a new phase.
DESIGNATION of Lilienthal with
powers of negotiation opens the
door to positive action on the pro.
posal of Gov. Gordon Browning OF
Tennessee, that the state form
cooperative to take over holdings
of Tennessee Power company, to
provide "yardstick" energy to
Tennessee consumers from power
pools generated by the authority:
Browning will visit President
Roosevelt on Thursday to explain
his plan in detail. Also scheduled
to attend the conference are LII
ienthal and his two associate a.
rectors - Arthur Morgan, iva
chairman and minority member
of the board, and Or. =, Harcourt
Morgan. Frank McNinch, chair
man of the federal communlca-
tions commission and President
Roosevelt's utility advisor, also
will attend the conference.
With its right to sell power up.
held by the unanimous decision OF
a three-man federal court, iva
is faced with the necessity OF de-
veloping a broad policy of expan-
sion to dispose Of power SURPRISES
now released for sale in competi-
ton with private operators.
Sen. Kenneth Mcclellan, Tennes-
see, protested vigorously to Presi-
dent Roosevelt against the pro-
posal by Gov. Browning of Ten
nessee for state and federal &C.
QUESTION of private utilities.