The Wilmington morning star., 1943-11-28
Congressional
'SUTTLETIES'
The inside on the Washington scene Of
interest to the Carolinas.
By HOWARD SUBTLE
(Star-NeWs Washington Rureau,

5. C., out of his post as national rural cleo
trl1lcatlon administrator led by the recently
formed National Rural Identification associ-
alton, has apparently been spiked thro,oh the
efforts OF certain members of the Senate agri-
culture committee and its chairman, the vet
eran senator Ellison Cotton Ed) Smith,
Of South Carolina.
Headed by former Representative Clvde FL
lis, of Arkansas, the associations campaign
to bring about removal Of Slattery because
OF the REA directors opposition to mutual
insurance plan for rural power cooperatves
proposed by Ellis, once reache. point where
it became sufficiently effective to inspire re-
quests for Slatterys resignation from both
Secretary OF Agriculture Claude Wickard and
Jonathan Daniels, White House secretary
But those seeking his custer reckoned not
with the popularity OF Slattery on Capito1
Hill, where members of both the Senate and
the House rallied to his cause AS result
of a resolution by Senator Henrik Shipstead
Farmer-Labor Minnesota, the Senate agri-
culture committee has begun an investigation
Of the so-called ELLIS association and the
REA. Smith is licking his chops in anticipa-
ton of a picnic" when public hearings in
the case are instituted.
Taking the position that Slattery is an in
nocent boy they're trying to railroad,'' Smith
and Shipstead are preparing to give 'em all
help and 'let the chips fall where they may"
Opposed Insurance Plan
Ellis headed the organization OF the National
Rural Electrification association about eight
cen months ago after his defeat by Senator
John Mcclellan, Democrat Arkansas, when he
sought promotion from his House post.
Having been one of the leaders in the en-
actment of legislation formulating the federal
power program, he was nationally known
among rural Identification cooperatives.
Farmers who had reape6 the benefits of the
REA program were approached by members
OF the Ellis organization with proposition
that they join power cooperative that would
help them electrically other farm COOP
eratives were assisting them in the operation
Of their farms.
1t was not long before Ellis had corralled
about 100000 members He cnce claimed a
million members.
The association then SET about. through the
former Arkansas solon, to sci. Slattery upon
a plan OF mutual farm insurance that would
be financed from SURPRISES of the participant
ing REA cooperatives
Contending that the REA groups could not
legally use their surplus funds as proposed
by Ellis, Slattery opposed the program. Such
action was not contemplated under the original
act, said the REA chief. It would put the REA
in the insurance business, he commended, and
the agency has its hands full properly ad-
ministering the rural power program.
Appealed to WIckard
Having been, in private life, member of
the school of cooperative farming and hav-
ing achieved success on his Indiana farm in
hog production under the cooperative plan,
Wickard was apparently inclined to regard
the Ellis proposal with favor.
He might have directed Slattery to cooperate |
in the move had not the South Carolinian
been insistent in his opposition, even to the
point OF demanding that the legal division of
the department of agriculture be requested
for an opinion as to the validity of the mutual !
insurance proposal
When the legal brains Of the department
rendered opinion that the REA cooperatives
could not, under the law, use their SURPRISES
to finance mutual insurance, Slattery was vim.
Dictated in his stand but had not won his
fight.
Claiming to represent lone million farm
ers,' Ellis sent out letters and circulars re-
ferring to the REA administrator as "inef-
ficient''
The campaign was SO effective that Wick
ard, on two occasions, called Slattery from
ST. Louis, where REA headquarters were
moved following Pearl Harbor, and asked him
for his resignation. Slattery declined, contend
ing that his 10-year appointment came from
President Roosevelt. He maintained that he
could not resign under the circumstances
that he was right and would be indicated
in time.
Wickard then sent Investigators to st. Louis. |
Their findings were sent alons with charges
by the Ellis group, to the White House.
Offered Foreigs. Post
1t was then that Daniels, son OF Josephus
Daniels, called Slattery to the White House. |
During this conference it was suggested that
if the REA administrator would resign for
reasons of health,'' he would later be placed
in charge Of a commission to study the rural
identification picture IN other countries
Under this plan, he was to be sent to
South America, and later, t' Europe
Meanwhile, however, the Shipstead resolu-
ton had passed and the Senate investigation
was technically under way. Slattery Informed
Daniels that even if he were inclined to accept
the proposal, he would not be permitted to
leave the country until the investigating COM
mittee was through with him as a witness.
He further stated, however, that he was in
the fight to a finish, regardless of the out
come.
But even if the REA chief has won every
skirmish in the fight, SO far, his victory has,
in a sense been hollow fol Wlckard has ap-
pointed deputy administrator. w. j. Neal
by name, and sent him to ST. Louis in charge
of the REA budget and personnel
Smith Claims Shift Illegal
This shift of power over funds and employ
ment from Slattery to Neal, Senator Smith
believes, is contrary to the act creating the
REA.
The law specifies THAT the administrator,
appointed by the President with the approval
of the Senate. has full power over the oper-
n mace the blIdp