Evening star., 1939-12-31
7. Y. 4. Net Income
Is $1,479,o0o, Report
To Congress Says
Wipes Out Previous
Expenses and Leaves Six
Year BoIonce Of $S94, 900
Ry tbz AssociAled Press.

Ry thS ABsociAted Preso.
Directors of the Tennessee Valley
Authority reported to Congress to-
day that the agency's electric power
operations produced q net income
of 81 ,479 900 for the 1889 fiscal year.
The report, covering the IL
months ending last June 80 (prior
to T. v. AS acquisition of the Ten
nessee Electric Power Co. proper
ties). said that this income wiped
out the met expenses" of the power
program for the previous five years
Of development, and left q net in
come of $894, 900 for the six years
Of the Authority's power operations.
The document created widespread
interest in view of congressional
controversy centering around the
public power program and the an
nounced determination Of some
Congress members to oppose further
appropriations for dam construc-
ton.
Five Dams in Operation.
Reporting 1t had completed con-
struction of Guntersville Dam dur
ing the year, making five T. v. A.
dams In active operation, the T.
v. A. said Chickamauga and Hiwas-
see Dams were scheduled for COM
pletion during 1910, the latter al
most a year ahead Of schedule.
Kentucky Dam. better known to
members of Congress as Gilberts-
vile, completed its first year Of
actual construction"
This dam, the T. v. A. report said,
will create waterway almost four
times the length Of the Panama
Canal and provide reservoir with
sufncient controlled storage space
to effect q reduction of flood heights
on the Mississippi by at least 2 feet
from Cairo to the mouth Of the
Arkansas River and by at least
foot between the Arkansas and Red
Rivers"
T. v. A. also reported construc-
ton continuing on Watts Bar Dam
and said its engineers had completed
a full preliminary planning report
on the proposed Coulter Shoals Dam,
the last of the authorized series.
Completion of Guntersville Dam,
the reprt said, extended the navi-
cation channel on the Tennessee to
$50 miles. and commercial tonnages
moving on the river showed "a slow
but steady increase"
Fertilizer Being Tested.
Another chapter revealed that
highly concentrated phosphate fer
tilizer manufactured by T. v. A. at
Muscle Shoals, Ala. was being tested
in 43 States, and being tested and
demonstrated under actual farming
conditions in 20 States. on 25,700
farms comprising 100000 acres.
The Authority reported that after
purchase of the T. E. P. Co. prop
critics August is. the number of con-
sumers using T. V. A. power was
brought to 100000
The T. E. P. Co. purchases brought
to % the number of privately owned
utility systems bought up by T. v.
A. and municipalities, or co-opera-
tives.
The total purchase price, includ-
ing small amount for gas and
water properties bought by some
municipalities, the T. v. A. said,
Appropriated $4,000, 900.
The report said the additional
power made available by the Au-
thority had been absorbed into the
valley region without creating a sur
plus of electricity and that it even
appeared growing power demands
will require new generating capac-
ity in addition to that which has
been supplied by the Authority plus
that which is planned in the 10
dam system for control of the Ten
nessee River"
Apparently m reply to contentious
OF Chairman May. Democrat, of
Kentucky of the House Military
Affairs Committee that the power
program was injurious to coal oper-
ators of Kentucky. the report noted
that the use of coal in utility gen.
Grating plants, which supplement
hydro power dams. had doubled in
the area since 1929.
The financial chapter of the re-
port said:
The power program earned a net
income of sl.948.000 after depreci-
alton of $l.503, 900, but before de-
Quoting common expenses allotable
thereto. and net income of $l,479,-
600 after deducting common ex-
penses which included additional
depreciation of $232 900.
This net income was SUFFICIENT
to absorb the net expenses of $548.-
900 carried forward from the power
operations of the five previous
years. leaving net income for the
six years ended June 80, 1899, Of
1894 ,0O0."
Total power sales revenues for
the fiscal year were reported as
$5,5O7 900.