The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-07-23


mittee of the senate committee
lie preliminary study of REA.
= Shipstead's resolution came
as a surprise although it had
| been rumored around congress
for weeks that an investigation would
be made both by the senate and by
the house. In fact, it was apparent
that an investigation was inevitable
because REA has been seething for
for leadership and as Secretary Wick
ard and the White House were dragged
into the war and charges were hurled
around congressional offices, some
charges so mean and ugly they were
made anonymously.
Briefly the presently written chap
ters of the story are as follows, be-
ginning with Shipstead's resolution
and moving backward:
l. Shipstead called for an inquiry
into political forces which were at
tempting to get control of REA.
g. Immediately thereafter, Judson
King, former president of the Nation
al Popular Government League and
tional figure in the fight for public
Ownership, published an historical
| background for the National Rural
Electric Cooperative Association.
King is presently employed by REA.
The NRECA has been demanding that
King be discharged by REA as dead
wood" and has also demanded that
the White House compel Harry A.
Slattery, administrator of REA, to re-
sign.
3. King published what has become
known as "The Becker memorandum"
in which John A. Becker substan-
tial businessman of Hartford, Wiscon-
sim and Director of Rural Electrifi-
cation for the state under the gov
ernorship of Phil LaFollette" exposed
how Robert B. Craig, recently re-
signed deputy administrator of REA,
had outlined a national organization
of REA co-operatives, and how Craig
udi lOlu MN VI Ills DOllliCdl u dllliI5
in Ohio, and of his plans to run REA
from inside or outside. King said
"the astonishing fact remains that
Craig has apparently put over much
of his plan by essentially the methods
he described to Becker" King de-
scribed Craig's plan and the plan of
the NRECA to show their similarity.
4. King revealed a memorandum
given to investigators of the Depart
ment of Agriculture who called on
me, John Carson, to testify as to a
conference | had with one Max M.
Drofkoff. former employee of REA,
and presently suspended Drofkoff
was leader in the effort to develop
insurance companies which later were
organized by NRECA leaders. King
referred to Drofkoff's statements as l
reported them to the investigators,
Drofkoff saying when | urged the
REA co-operatives to build an insur-
ance program through insurance COM
panies already organized and owned
largely by REA cooperative members,
that 1--WE are going to have our own
company we want our own company
that Bob Craig and / can control"
5. King revealed that Slattery fl
nally became alarmed and urged
Wickard to make an investigation of
Craig and incidentally of the NRECA.
began their attack ON Stat
terry and his associates.
It can no longer be concealed-and
many friends of REA and REA coop
eratives have maintained silence in
the hope that the ugly spots within
REA might be cleared up without too
much internal warfare-that if the
senate thoroughly airs this REA
story, there will be many who will
have to make explanations. Craig re-
signed while this battle was in one
of its most hectic moments. He has
become employed by a supply COM
pany which has been successful in its
dealings with REA and that supply
and its product were the
subjects of criticism throughout the
years.
Wickard, incidentally, may have to
10 some explaining. Very recently,
statement of what pur-
ported to be a legal opinion was is
sued by the Department of Agricul-
.ure. The legal opinion raised very
serious questions about the invest
nent of REA cooperative money in
he NRECA association insurance
recently organized. Sud
lenly, the legal opinion was recalled
md it has been impossible to get adj
litional copies of it. 1t was impossi-
Die, of course, to recall those which
lad gotten into the hands of persons
lot controlled by the Department of
Agriculture. Why Wickard and his
should become involved
n this practice is a question already
)eing inquired into by members of the
senate committee.