4348 CONGRESSIONAL RECORD-SENATE APRIL · 12 summer with a view to construction as soon which are appropriate to authorize the peace. Breathe we Thy breath, our as possible; to the Committee on Public United States to negotiate with other na­ Nation shall not die. 0 God, preserve Works. tions, subject to later ratification, a consti­ Also, memorial of the Legislature of the tution of a world federal government, open us, Thy Nation, a union of States, one Territory of Alaska, urging the construction to all nations, with limited powers adequate and indivisible. of a road between Livengood and Nome, to assure peace, or amendments to the Con­ Grim are the signs we sight as rolling Alaska; to the Committee on Public Works. stitution which are appropriate to ratify any wrecks drift by, nations with decks world constitution which is presented to the awash, nations in frantic fear. Death United States by the United Nations, by a riding at the masthead, with mutiny PRIVATE BILLS AND RESOLUTIONS world constitutional convention, or other­ aboard, against Thy holy will, O God, Under clause 1 of rule XXII, private wise; to the Committee on the Judiciary. 553. By Mr. HESELTON: Petition of the our captain! Preserve us Thy Nation, bills and resolutions were introduced and Board of Aldermen of the City of Holyoke, a union of States, one and indivisible. severally referred as follows: Mass., regarding the immediate repeal of the When a nation drops God as a pilot, By Mr. CLEMENTE: Taft-Hartley law; to the Committee on God abandons the ship of state to gales H. R. 4134. A bill for the relief of Michael Education and Labor. of pernicious doctrines, to cross-currents Zare~hnak; to the Committee on the Judi- 554. By Mr. LECOMPTE: Petition of Robert of greed, to the lash of pirates, to the ciary. R Dalziel, druggist, and other citizens of lot of slaves, to the doom of drowning. By Mr. DINGELL: What Cheer, Iowa, urging repeal of the 20 O God, our captain! Preserve us Thy H. R. 4185. A bill for the relief of Edward percent excise tax on all toilet goods; to the W. Delimater; to the Committee on the Ju­ Committee on Ways and Means. Nation, a union of States, one and diciary. 555. By Mr. SADLAK: Resolution of the indivisible. By Mr. GWINN: Court of Common Council of the City of O Father of the nations! Great is H. R. 4186. A bill for the relief of Jan Liga; Meriden, Conn., memorializing the Congress Thy trust in us, sacred our hope in Thee. to the Committee on the Judiciary. to pass and the President to approve, if In Thee, we pledge our faith with the By l.\l'"JI. JACKSON of California: passed, the General Pulaski's Memorial Day blood and tears of our bravest! Beside H. R. 4187. A bill for the relief of Mrs. resolution now pending in the- Congress; to us lie the tasks of the hour. Before us Ada Svejkovsky; to the Committee on the the Committee on the Judiciary. Judiciary. 556. By the SPEAKER: Petition of the shine the goals to be won. Bless us, O By Mr. TAURIELLO: president, Gulf Ports Association, Inc., Gal­ God, with unity; unity of heads, sharing H. R. 4188. A bill for the relief of Dr. Ferdi­ veston, Tex., stating approval of the wording common counsels; unity of hands, shar­ nando Schiappa; to the Committee on the of the bill H. R. 1340; to the Committee on ing common toil; unity of hearts, shar­ Judiciary. · Merchant Marine and Fisheries. ing common hopes. Our unity reveal­ By Mr. WILLIAMS: 557. A:so, petition of T. S. Kinney and oth­ ing Thy strength and our will. H. R. 4189. A bill for the relief of Charles ers, Orlandq, Fla., requesting passage of H. R. O God, our Father! Preserve us Thy E. Crook and B. L. Fielder; to the Committee 2135 and 2136, known as the Townsend plan; on the Judiciary. to the Committee on Ways and Meanc. Nation, a union of States, one and in­ 558. Also, petition of Mrs. Robert L. Rice divisible. and ?thers, Miami, Fla., requesting passage of THE JOURNAL PETITIONS, ETC. H. R. 2135 and 2136, known as the Townsend Under clause 1 of rule XXII, petitions plan; to the Committee on Ways and Means. On request of Mr. LucAs, and by unani­ and papers were laid on the Clerk's desk 559. Also, petition of Mrs. Ruth Childers mous consent, the reading of the Journal and ref erred as follows: and others, Avon Park, Fla .. requesting pas­ of the proceedings of Monday, April 11, sage of H. R. 2135 and 2136, known as the 1949, was dispensed with. 547. By Mr. ASPINALL: Memorial of the Townsend plan; to the Committee on Ways MESSAGES FROM THE PRESIDENT Colorado State Legislature, memorializing and Iv.eans .. the Congress of the United States to enact 5W. Also, petition of Arthur C. Almy and Messages in writing from the Presi­ · pending legislation for the amendment of others, Orlando, Fla., requesting passage of dent of the United States were communi­ the Social Security Act to provide assistance H. R. 2135 and 21.36, known as the Townsend cated to the Senate by Mr. Miller, one of to unemployables; to the Committee on plan; to the Committee on Ways and Means. his secretaries. Ways and Means. 561. Also, petition of Mrs. Anna Pinckard 548. Also, resolution of the senate of the and others, St. Petersburg, Fla., requesting MESSAGE FROM THE HOUSE State of Colorado, petitioning the President passage of h. R. 2135 and 2136, known as the of the United States to prohibi~ the importa­ Townsend nlan; to the Committee on Ways A message from the House of Repre­ tion of furs from Russia; to the Committee and Means. sentatives, by Mr. Swanson, one of its on Interstate and Foreign Commerce. 562. Also, petition of J.M. Villa and others, reading clerks, announced that the House 549. By Mr. BARING: Senate Joint Resolu­ Tampa, Fla., requesting passage of H. R. 2135 had passed a bill (H. R. 3932) to exempt tion 10, approved by Governor Pittman on and 2136, know"l as the Townsend plan; to artificial limbs from duty if imported for March 29, 1949; to the Committee on Banking the Committee on Ways and Means. personal use and not for sale, in which it and Currency. 563. Also, petition of I. C. Ellis and others, requested the concurrence of the Senate. 550. By Mr. CARROLL: Memorial of the Orlando, Fla., requesting passage of H. R. Colorado State Legislature, urging passage of 2135 and 2136, known as the Townsend plan; TRANSACTION OF ROUTINE BUSINESS the Local Public Health Services Act of 1949 to the Committee on Ways and Means. Mr. LUCAS. Mr. President, a parlia­ and that the appropriation of $10,808,000, "Assistance to States, general public health," mentary inquiry. which was deleted from the appropriation The Ji!RESIDENT pro tempore. The bill H. R. 3333 for the Public Health Service, Senator will state it. passed March 9, 1949, by the House of Repre­ SENATE Mr. LUCAS. Do I understand correct­ sentatives, be restored so that adequate TUESDAY, APRIL 12, 1949 ly that the Senator from New Hampshire financial assistance will be available; to the [Mr. BRIDGES] retained the floor under a Committee on Appropriations. unanimous-consent agreement last eve­ 551. Also, memorial of the State Legisla­ (Legislative day of Monday, April 11, ture of Colorado, urging the Congress to 1949) ning? approve proposed legislation providing for The PRESIDENT pro tempore. There amendments to the Sdcial Security Act in The Senate met at 12 o'clock meridian, was no express agreement, but he had order to provide for assistance to the chroni­ on the expiration of the recess. offered an amendment and was on his cally ill, physically or mentally handicapped, His Eminence, Francis Cardinal Spell­ feet yesterday at the time the Senate or otherwise unemployable persons between man, of City, offered the took a recess. the ages of 18 and 65, who have been deter­ following prayer: will mined by clinical and laboratory tests or Mr. LUCAS. Mr. President, the otherwise to have a chronic or prolonged dis­ O God of our Fathers! In this solemn Senator from New Hampshire yield to me ability which causes them to be unable or hour we call upon Thy name. We are to make a unanimous-consent request? unavailable for gainful employments; to the Thy people. Thou art our God, our The PRESIDENT pro tempore. Does Committee on Ways and Means. watching, mighty God. Thou hast the Senator from New Hampshire yield 552. By Mr. HALE: Memorial of the Senate carved us a nation out of the wilderness, to the Senator from Illinois? and House of Representatives of the State of sealing us with high destiny, to be light Mr. BRIDGES. I yield. ·Maine, asking that the Congress of the United States, pursuant to article V of the Constitu­ to peoples in darkness, to bring freedom Mr. LUCAS. Mr. President, I ask tion give serious consideration to the calling to· nations in chains. Thou didst breathe unanimous consent that Senators be per­ of a convention fqr the sole purpose of pro­ Thy breath into the face of our sires, mitted to present routine business and posing amendments to the Constitution Thy breath of freedom, of justice, of matters for the RECORD without jeopard- 1949 CON_GRESSIONAL R·ECORD-SENATE 4349 izing the parliamentary situation and This affectionate regard for Roosevelt cations and a letter, which were ref erred without debate. endures. Last fall when I was the guest as indicated: ' The PRESIDENT pro tempore. With· of a group of farmers and farm laborers SUPPLEMENTAL ESTIMATES, DEPARTMENT OF out objection, it is so ordered. at an outdoor luncheon in the Mexican INTE:itIOR (S. Doc. No. 46) FOURTH ANNIVERSARY OF DEATH OF countryside, a laborer sitting far down A communication from the President of FRANKLIN D. ROOSEVELT the table finally arose to his feet and the United States, transmitting supplemen­ asked permission to speak. He said I tal estimates of appropriation, amounting to Mr. GREEN. Mr. President, my per· was introduced as a friend of Roose· $152,000, and a proposed provision relating to sonal feelings on this anniversary com .. velt, and then he- burst into praise of the an existing appropriation, fiscal year 1949, pel me to take a few minutes of the time great man and g · ef over his passing. for the Department of the Interior (with an of the Senate to recall to my col- accompanying paper); to the Committee on The tears actual y rolled down his Appropriations and ordered to be printed. leagues-- · cheeks. I have had similar experiences The PRESIDING OFFICER (Mr. in other parts of the world. SUPPLEMENTAL ESTIMATES, DEPARTMENT OF O'MAHONEY in the chair). The unani­ INTERIOR (S. Doc. No. 47) So in th~se few words of eulogy, I want mous-consent agreement under which A communication from the President of the Senate is now operating precludes de­ to emphasize not the leader who by natu­ the United States, transmitting supplemen­ bate, the Chair will say to the Senator ral temperament, expert training and tal estima;tes, in the amount of $5,777,250, from Rhode Island. long experience was best qualified for Indian tribal fund authorizations in the dealing with the great issues first of amount of $103,000, and drafts of proposed Mr. GREEN. Then, Mr. President, I winning the w11r, and, second, of win~ing provisions for the fiscal year 1950, for the · ask unanimous consent that I may be the subsequent peace, not the statesman Department of the Interior, in the form of permitted to make a short address not who led us out of the depression and amendments to the budget (with an accom­ exceeding 5 minutes in length. established the principles of the New panying paper); to the Committee on Appro­ The PRESIDING OFFICER. Is there Deal, but rather the big-hearted man priations and ordered to be printed. objection to the request of the Senator who understood the masses of his fellow SUPPLEMENTAL EsTIMATE, HOUSING ExPEDITER from Rhode Island? The· Chair hears citizens. He had not only the heart to (S. Doc. No. 45) none, and the Senator from Rhode Island sympathize with them, but also the A communication from the President of may proceed. the United States, transmitting a supple­ brain to devise means for helping them. Mr. GREEN. Mr. President, my per­ ment~! estimate of appropriation, amount­ sonal feelings on this anniversary com­ For a short while after his death the ing to $3,000,000, for the Housing Expediter, pel me to take a few minutes of the time people wondered whether his policies fiscal year 1949 (with an accompanying pa­ would be followed. The new President per); to the Committee on Appropriations of the Senate to recall to my colleagues and ordered to be printed. the shock we all received 4 years ago was thinking profoundly and acting today when the news of the death of our slowly. Personally I never doubted that SUPPLEMENTAL EsTIMATE, NATIONAL ARCHIVES President, Commander in Chief, world he would continue along the path blazed (S. Doc. No. 43) leader, and friend came to us over the by his predecessor. He has done so, and A communication from the President of I am sure he will continue to do so. the United States, transmitting a supple­ wires from Warm Springs, Ga. It seemed mental estimate of appropriation, amount­ to many of us as though the world stood It is this American way of life which now faces its greatest travail. It has won ing to $200,000, for the National Archives, still. The nervous strain we had been fiscal year 1950, in the form of an amend­ under during the trying days of the Great the greatest war in history. It must now ment to the budget (with an accompanying War had been eased by the confidence win the peace. The time is approaching paper); to the Committee on Appropriations we had in his leadership, and this leader­ when it will be determined whether de­ and ordered to be printed. ship was gone. For a little while we mocracy can survive, whether we have SUPPLEMENTAL ESTIMATE, VETERANS' groped as though in darkness after the reached and passed the highest point of ADMINISTRATION (S. Doc. No. 44) light had suddenly been extinguished. a thousand years of recorded history. A communication from the President of There followed an upsurge of grief in It is my belief that the clear, unified the United States, transmitting a supple­ all hearts, in the hearts not only of our- will of America will continue to be mani­ mental estimate of appropriation, amount­ fest in the administration which now ing to $12,685,000, for the Veterans' Ad­ 0 represents it. So now, after looking ministration, fiscal year 1950, in the form ~~;~~ f~ed p~~P~ufh:~~~;ou~ ~~!r~:1~: of an amendment to the budget (with an especially the common people. backward for a short while, let us again look forward, and follow upward the accompanying paper); to the Committee on They felt that they had lost an under­ Appropriations and ordered to be printed, standing friend who had their welfare leadership of President Roosevelt's loyal follower, President Truman. DIVISION OF LANDS AND FUNDS OF OSAGE1 at heart. I give a couple of illustrations. INDIANS, OKLAHOMA VISIT OF THE PRESIDENT-ORDER FOR Shortly after his death, I was in the city A letter from the Secretary of the Interior of Bogota and was told how the tele­ RECESS transmitting a draft of proposed legislation'. phone system broke down upon the to amend section 3 of the act of Congress spread of the tragic news. There was a . Mr. LUCAS. Mr. President, I have an important announcement to make which approved June 28, 1906, relating to the Osage strange human reason for this. Thou­ Indians of Ol~lahoma (with an accompany­ sands were calling up to find out whether I want every Senator to hear. The ing paper); to the Committee on Interior and the rumor was true, but the telephone President of the United States has very Insular Affairs. operators were so choked with tears they graciously agreed to come to the Capitol PETITIONS AND MEMORIALS could not answer the calls. In the city today at 1 o'clock and take lunch with all Senators. Today marks his fourth an· Petitions, etc., were laid before the of Caracas I visited a large new housing Senate, or presented, and referred as development erected by the Government niversary as Chief Executive of the Na­ for the occupation of white-collared tion. Under those circumstances, I indicated: workers. I wanted to see the interior think it is most appropriate that the By the PRESIDENT pro tempore: A joint resolution of the Legislature of the of one of the apartments and selected Senate of the United States take a recess State of Colorado; to the Committee on one by lot. When I called, the family from 1 o'clock until_2 o'clock. Therefore Finance: I ask unanimous consent that the Sen­ was having its midday meal, but the "House Joint Memorial 14 mother of the family took pride in show­ .ate stand in recess beginning at 1 o'clock ing me around. Finally she unlocked a until 2 o'clock this afternoon. "Memorializing the Congress of the United States to enact pending legislation for the glass cupboard and took out a cardboard The PRESIDING OFFICER. Unani­ amendment of the Social Security Act to on which was pasted a newspaper por­ mous consent is requested that the Sen­ provide assistance to unemployables trait of President Roosevelt in a little ate take .a recess for 1 hour beginning at "Whereas there is now pending in the Con- frame o~ paper flowers. She said, "He 1 o'clock. Is there objection? The gress of the United States various measures was a f nend of ours, too." Surprised, I Chair hears none, and it is so ordered. for the amendment of the Social Security ~. sked, "How did you know I was his EXECUTIVE COMMUNICATIONS, ETC. Act to provide for more comprehensive pub­ friend?" and she said, "Because I saw lic-welfare programs of assistance and wel­ your picture in the newspaper and am The PRESIDENT pro tempore laid be­ fare services to various categories of needy glad to welcome his friend here." fore the Senate the fallowing comm uni .. persons; and 4350 CONGRESSIONAL· RECORD-SENATE APRIL 12 "Wllereas it is essential that provision be States, and to each of the Senators and Rep­ States, and to each Senator and Representa­ made through Federal legislation in coopera­ resentatives from the State of Minnesota in tive of the State of Nevada in the Congress tion with the States for the assistance of the the Congress of the United States. of the United States." chronically 111, physically or mentally handi­ "C. ELMER ANDERSON, A joint resolution of the Legislature of the capped, or otherwise unemployable persons ''President of the Senate. State of Nevada; to the Committee on Inte­ between the ages of 18 and 65, who by clinical "JOHN A. HARTLE, and laboratory tests, or otherwise, have been "Speaker of the House of RepresentatiVes. rior and Insular Affairs: determined to have a chronic or prolonged "Passed the senate the 15th day of March "Senate Joint Resolution 10 disability which causes them to be unable in the year of our Lord 1949. "'Joint resolution memorializing the Congress or unavailable for gainful employment: Now. "H. Y. TONEY, of the United States to appropriate funds therefore, be it "Secretary of the Senate. for the erection and operation of a new "Resolved by the house of representatives "Passed the house of representatives the . precious- and rare-metals station of the of the thirty-seventh general assembly 29th day of March in the year of our Lord United States Bureau of Mines in Reno, (the senate concurring herein), That the · 1949. Nev. Congress of the United States be and it is "G. H. LEAHY, "Whereas the precious- and rare-metals hereby memorialized to approve such pro­ "Chief Clerk, House of Representatives. station of the United States Bureau of Mines posed legislation providing for amendments· "Approved April 2, 1949. located on the campus of the University of to the Social Security Act in order to provide "LUTHER YOUNGDAHL, Nevada in Reno, Nev., has for many years for assistance to the chronically ill, physi­ "Governor of the State of Minnesota. rendered invaluable service to the mining cally or mentally handicapped, or otherwise "Filed April 4, 1949. industry and to the country at large in solv­ unemployable persons between the ages of "MIKE HOLM, "Seqretary of State." ing problems of metallurgy through exten­ 18 and 65, who have been determined by sive research in precious and rare minerals; clinical and laboratory tests, or otherwise, A joint resolution of the Legislature of the and to have a chronic or prolonged disability State of Nevada; to the Committee on Bank­ which causes them to be unable or unavail­ "Whereas the existing United States Bu­ able for gainful employment; and be it ing and Currency: reau of Mines precious- and rare-metals sta­ further "Senate Joint Resolution 5 tion has been housed on the campus of the University of Nevada for 30 years in a build­ "Resolved, That copies of this memorial "Joint resolution memorializing the Con­ be forwarded to the President of the Senate gress of the United States to repeal all laws ing supplied by the university; and and the Speaker of the House of Represent­ inhibiting free trade in gold in the open "Whereas the University of Nevada is in atives of the Congress of the United States, great and pressing need of the university market building occupied by the precious- and rare­ to the Senators and Congressmen represent­ "Whereas the Congress of the United ing the State of Colorado in the Congress metals station that it may take care of the States has enacted laws restricting free trade ever-increasing enrollment in the Mackay of the United States, and to the Federal in gold produced in the United States, its Security Administrator." school of mines of the university; and territories and possessions, and compelling "Whereas the present headquarters of the A concurrent resolution. of the Legislature that all such gold be sold only to the Govern­ precious- and rare-metals station on the of the State of Minnesota; to the Committee ment of the United States at a price fixed by campus are inadequate to meet current and on Armed Services: statute at $35 per fine ounce; and . growing requirements and for proper labora­ "Whereas the aforesaid fixed price was es­ tory space, and are further inadequate for "Concurrent resolution memorializing the tablished in 1934 at a time when both labor Congress of the United States to enact the engineers and staff of the Bureau, and and materials were readily obtainable at a which requires much of the equipment of legislation securing to all citizens, and par­ reasonable price; and ticularly to its Negro citizens, the right to the mining branch of the Bureau to be placed "Whereas wage costs and material costs in storage; and serve in the National Guard of the United have more than doubled since 1934 and no States without segregation in separate "Whereas the geophysical workers of the longer can be met by gold producers in the United States Bureau of Mines have for years units State of Nevada; and "Whereas equality of opportunity, respon­ been located in a university building also "Whereas gold mining is a major industry needed by the Mackay school of mines and sibility, and privilege of all its people is a in the State of Nevada and has, in the past, matter of vital importance to the people of which, moreover, is inadequate for the pur­ enabled the development of lead, copper, poses of the Bureau; and the State of Minnesota; and zinc, and silver properties which were of in­ · "Whereas it is the policy of the State of "Whereas the University of Nevada has estimable value to the Nation during World deeded to the Government of the United Minnesota that there shall be no discrimina­ War II; and tion between its people by reason of race, "Whereas the restrictions and inhibitions States a tract of land of about 2 acres located _color, religion, or national origin; and on free trade in gold, coupled with the arbi­ on the campus of the University of Nevada, "Whereas the regulations prescribed by the trary and unreasonable fixed price on gold, said tract to be used for the site of a build­ Department of the Army require that all have compelled the closing and abandon­ ing sufficient to house the precious- and Negro manpower subject to its authority, ment of gold mines in the State of Nevada, rare-metals station and various other except Negro manpower with special skills branches of the United States Bureau of resulting in unemployment and hardship for Mines now located in Reno; and or qualifications, be employed in Negro units the people of Nevada and drastically affect­ which will conform in general to other units . ing the economic and tax structure of the "Whereas there is pending in the Con­ of the Army; and State of Nevada; and gress of the United States, H. R. 2386, in­ "Whereas these regulations control the "Whereas there is pending before the Con­ troduced by Representative BARING, which employment of Negro manpower in the Na­ gress of the United States proposed legisla­ directs the Secretary of the Interior to estab­ tional Guard of the United States; and tion to permit free trade in gold in the open lish, equip, and maintain a research labora­ "Whereas these regulations of the Depart­ market within the United States, its terri­ tory in Reno for research and assistance in ment of the Army, in denying to Negro cit­ tories and possessions, and to permit gold to matters pertaining to precious- and rare­ izens of this State equality of opportunity be exported without the imposition of duties, metal mining and metallurgy, and directs and service in the National Guard, are in excise taxes, or licenses, permits, or any re­ appropriation of $750,000 for construction of derogation of the public policy of the State strictions whatsoever; and a building sufficient to house the facilities of Minnesota: Now, therefore, be it "Whereas the enactment of such legisla­ indicated, and also directs appropriation of "Resolved by the Senate of the State of tion will be of inestimable benefit to the peo­ $250,000 annually for maintenance and oper­ Minnesota (the House of Representatives ple of the State of Nevada: Now, therefore, ation of said precious- and rare-metals sta­ concurring therein), That the Congress of be it tion and other Bureau of Mines activities: the United States at its present sitting be "Resolved by the Senate and Assembly of Now, therefore, be it and is urgently petitioned and requested to the State of Nevada, That the Congress of "Resolved by the Senate and Assembly of enact such legislation as will secure to all the United States be, and it is hereby, memo­ the State of Nevada, That the Congress of citizens of the United States, and particu­ rialized to enact Senate bill 13, Eighty-first the United States be, and it is hereby me­ larly to its Negro citizens, the right to serve Congress, first session, or similar legislation morialized to enact said bill, H. R. 2386, to in the National Guard of the United States repealing all restrictions on trade in gold and the end that proper housing and facilities in the same units with all other members permitting gold to be freely bought, held, be furnished the United States Bureau of without segregation of Negro manpower or sold, or traded in the open market, and per- . Mines precious- and rare-metals station, and any other manpower by reason of race, color, mitting gold to be exported without duties, that the University of Nevada may recover religion, or national origin; and be it further taxes, licenses, permits, or any restrictions use of the building occupied by said station "Resolved, That a duly authenticated copy whatsoever; and be it further which it so sorely needs; and be it further of this resolution be transmitted to the Presi­ "Resolved, That duly certified copies of "Resolved, That duly certified copies of dent of the United States, to the Presiding this resolution be transmitted by the secre­ this resolution be transmitted by the secre­ Officers of the Senate and House of Repre­ tary of state of the State of Nevada to the · tary of state of the State of Nevada to the sentatives of the Congress of the United President and Vice President of the United President and Vice President of the United 1949 CONGRESSIONAL RECORD-SENATE 435l States, and to each Senator and the Repre­ Aldermen of the City of Derby, both in the . the appeasement of Adolf Hitler when he sentative of the State of Nevada in the Con­ State of Connecticut; the City Council of · began his brutal policy of religious persecu­ gress of the United States." the City of Ecorse, Mich.; the Board of Select­ tion of helpless minorities. We now know A concurrent resolution of the Legislature men of the Town of Palmer, and the Polish that, had we and other Christian countries of the Territory of Hawaii; to the Committee Women's Citizens Club, of Three Rivers, taken a firm and uncompromising stand, Hit­ both ill the State of Massachusetts, favoring ler could have been stopped before be be­ on Appropriations: the enactment of legislation proclaiming came powerful, and the world could have "House Concurtent Resolution 28 October 11 of each year as General Pulaski's been spared the horrors and sufferings of "Whereas it has b·een reliably reported that Memorial Day; to the Committee on the World War II. We call upon our fellow citi­ the Navy Department is contemplating the Judiciary. zens, in America and in all of the Christian placing of the Naval Air Station, at Kaneohe, A letter in the nature of a memorial from countries, to profit from this tragic example T. H., on an inactive status; and the Bermuda Benevolent Association, Inc., by taking a firm stand against Russian "Whereas there has been introduced in the of New York, N. Y., signed by Winnie B. tyranny and persecution of defenseless mi­ House of Representatives of the Twenty-fifth Pitt, secretary, remonstrating against the norities. We believe that the future of the Legislature of the Territory of Hawaii, a bill enactment of House bill 199, to provide the United Nations depends upon its ability and to appropriate the sum of $50,000 for the privilege of becoming a naturalized citizen willingness to deal firmly with any nation construction of much needed wharfage and of the United States to all immigrants hav­ which violates the God-given rights of its harbor facUities in the vicinity of Kaneohe, ing a legal right to permanent residence and citizens. We have learned by experience that Oahu, for use by Hawaiian tuna fishermen; to make immigration quotas available to we dare not sit idly and indifferently by, or and Asian and Pacific peoples; to the Committee remain silent when our fellow man-who­ on the Judiciary. ever he is or wherever he lives-is the victim "Whereas if the wharfage facilities at of persecution and intolerance. Kaneohe Naval Air Station can be made PERSECUTION OF CHRISTIAN PRIESTS, We reaffirm our faith in and devotion to available to the Territory, it would obviate MINISTERS, AND LAYMEN IN SOVIET­ the fundamental principles of Americanism the necessity of the expenditure of the afore­ OCCUPIED TERRITORY that every person, whether in· our own or said sum of money by the Territory and foreign lands, is entitled to enjoy his God­ would be of great value and assistance to Mr. CONNALLY. Mr. President, I given right to absolute and unfettered reli­ the people of the Territory 1n further de­ present for appropriate reference a reso­ gious freedom. We condemn, as un-Ameri­ veloping its fishing resources: Now, therefore, lution adopted by citizens of Angelina can and un-Christian and as unspeakably be it County, Tex., in mass meeting assem­ barbarous, every form, shape, or kind of big­ "Resolved, by the House of Representatives bled, condemning the persecution of otry and intolerance. We beseech our Gov­ of the Twenty-fifth Session of the Legisla­ ernment to go on record, formally and offi­ ture of the Territory of Hawaii (the Senate Christian priests, ministers, and laymen by the Soviet Union and their satellites cially, against bigotry, persecution, intoler­ concurring), That the Congress of the United ance, and the suppression of the rights of States of America l;>e and it is hereby re­ in occupied territory, and I ask unani­ any minority. spectfully requested to make available such mous consent that it may be printed in Be it resolved that the chairman of this facilities to the Territory of Hawaii to be the RECORD. mass meeting be empowered and author­ used for the public purposes contemplated There being no objection, the resolu­ ized to appoint a committee of five members in this resolution; and be it further tion was referred to the Committee on to sign, in our behalf, and certify to this "Resolved, That certified copies of this Foreign Relations, and ordered to be resolution, and to send copies of it to the concurrent resolution be forwarded to the printed in the RECORD, as follows: President and Vice President of the United President of the United States, President of States and to the Secretary. of State and to the Senate, Speaker of the House of Rep­ Be it resolved by, the citizens of Angelina our Texas Representatives and Senators in resentatives of the Congress, the Secretary County, Tex., in mass meeting assembled, Congress, with the request that this resolu­ of Defense, the Secretary of the Navy, the That we condemn and denounce, as un-Chris­ tion be read on the floor of the House of Delegate to Congress from Hawaii, and the tlan and barbaric, the wholesale persecution Representatives and on the floor of the Sen­ Commandant of ·the Navy Yard, Pearl Har­ of Christian priests, ministers, and laymen by ate of the United States and incorporated in bor." the Soviet Union and their satellites in occu­ the records thereof, and that a copy of this pied territory. Freedom of religious worship . A concurrent resolution of the Legislature resolution be sent to the United Nations as and conscience is the most fundamental and a petition, urging the immediate trial of Rus­ of the Territory of Hawaii; to the Committee sacred right which God intended and or­ on Armed Services: sia, Bulgaria, Hungary, and other satellite dained that every person should enjoy. No ·countries, for the high crime of religious per- "House Concurrent Resolution 2 government or king or dictatorship has any secution and bigotry. "Be it resolved by the House of Representa­ right to take away or abridge this God­ BENJAMIN J. WEBER. tives of t1te Twenty-fifth Legislature of the given right. The very foundation of Chris­ ELBERT CLARK. Territory of Hawaii (the senate concurring), tian civilization is the religious and political JOHN B. RILEY. That the Secretary of Defense be and he is freedom of every person, regardless of race, Dr. E. G. TAYLOR. respectfully requested to defer any drastic color, or creed. There can never be peace or Fr. FRED JULmN, M. s. reductions in the force of civi11an personnel justice on this earth, so long as any of the I, Martin Dies, certify that this is a true at Ford Island, Pearl Harbor, and other naval, people are denied the right to worship God and exact copy of the resolution prflsented by military, and air installations and fac111ties according to the dictates of their conscience. me for adoption at a mass meeting of in the Territory and to readjust the over-all It is, therefore, a matter of the deepest con­ Angelina County citizens on March 8, 1949, defense program so that it may be carried cern to us, that our brethren in the Balkan and unanimously adopted. out without undue hardship to the persons states, now controlled by the atheistic and MARTIN DIES, affected, many of whom have faithfully pagan dictatorship of communism, are being Secretary of Mass Meeting. subjected to indescribable torture because of served for many years, and without serious PROTEST AGAINST CONTROL OF NA­ adverse effects on the economy of the their religious faith and practice. It is un­ Territory. believable that, in this age of enlightenment, TIONAL GUARD BY ARMY-RESOLU­ a large part of the world should revert to the "Be tt further resolved, That certified TION OF SCIMETER CLUB OF BOUMI horrors and cruelties of religious persecution TEMPLE, BALTIMORE, MD. . copies of this resolution be forwarded to the and suppression. President of the United States, Secretary of We call upon the President of the United Mr. O'CONOR. Mr. President, the Defense, Secretary of the Navy, Secretary of A. the Army, Secretary for Air, to both Houses States and the other officials of our Govern­ Scimeter Club of Boumi Temple, A. O. of the Congress of the United States of ment to demand that Russia and her satellite N. M. S., of Baltimore, Md., has adopted America, and to the Delegate to Congress countries be summoned by the United Na­ a resolution opposing proposals to have from Hawaii." tions to appear and be tried for the unspeak­ the Army take over control of the Na­ able crimes that are being committed upon A resolution adopted by Summerall Chap­ the persons, rights, and consciences of Chris­ tional Guard of the several States. I ask ter, No. 10, Disabled American Veterans, of tian people and ministers who are now the unanimous consent that the resolution Miami, Fla., protesting against any reduc­ victims of the same kind of persecution and be appropriately referred and printed in tion in the Veterans' Administration hos­ outrages that were inflicted by Nero. upon the RECORD. pital-program; to the Committee on Labor the early Christians. We call upon citizens There being no objection, the resolu­ and Public Welfare. · of every community in the United States tion was referred to the Committee on An excerpt from the minutes of the meet­ to assemble in mass meeting and pass similar Armed Services, and ordered to be ing of the directors of the Lehigh County resolutions, so that the world may know Taxpayers' League, of Allentown, Pa., pro­ that all Americans, regardless of race, color, printed in the RECORD, as follows: testing against the enactment of legislation or creed, condemn any form of religious per­ Resolution of the Scimeter Club of Boumi providing compulsory health insurance; to secution. We denounce, as unwise and un­ Temple, Baltimore, Md. the Committee on Labor and Public Welfare. Christian, any policy that seeks to appease Whereas there has appeared in the publio Resolutions adopted by the Court of Com­ these heinous crimes against God and man. press numerous references to a proposal by mon Council of Meriden, and the Board of We have not forgotten the tragic blunder of the Secretary of Defense to have the Army XCV-275 4352 CONGRESSIONAL RECORD-SENATE APRIL 12 take over the control of the National Guard 2. That the Congress of the United States Memorial Day-resolution-now pending in the of the several States; and be urged to enact basic amendments to the United States Congress. Whereas since the National Guard has social-security law which will assure to all 2. That certified copies of this resolution, proved beyond doubt that its existence is State unemployment compensation agencies properly authenticated, be sent forthwith to justified and through its efforts military adequate annual amounts for the proper the President of the United States, the Vice training can be creditably accomplished at administration of the law payable from the President of the United States, the two the civilian level; and sums raised by the Federal Government by United States Senato.rs from the State of Whereas the integration of the National taxation therein for the administration Massachusetts, and to the Representative in Guard into the Regular Army must ulti­ thereof in order to prevent the annual re­ Cpngress from the First Congressional Dis­ mately lead to a military dictatorship: Now, currence of the present emergent condition . . trict of the St ate of Massachusetts. · therefore, be it 3. Be it further resolved, That the ·secre­ JAMES H. FITZGERALD, Resolved, That the Scimeter Club, a body tary of state is directed forthwith to for­ HERBERT W. BISHOP, composed of 600 members, be recorded as ward copies of this resolution to the Pres­ PETER F. WARAKOMSKI, opposing any change in the control of the ident of the United States· Senate, the Board of Selectmen. National Guard; and be it further Resolved, That a copy of this resolu­ Speaker of the House of Representatives, the PROPOSED REPEAL OF TAFT-HARTLEY tion · e forwarded to the Honorable MILLARD chairmen of the Senate and House of Repre­ LABOR LAW E. TYDINGS, the Honorable HERBERT R. O'CoN­ sentatives Committees on Appropriations, and to the Members of the Congress from Mr. SALTONSTALL. Mr. President, OR, and to each Member of the Hot:se of Rep­ on behalf of my colleague, the junior resentatives from the State of Maryland. the State of New Jersey. (The PRESIDENT pro tempore laid before Senator from Massachusetts [Mr. LODGE] RETURN OF CERTAIN UNEMPLOYMENT the Senate a concurrent resolution of the and myself, I ·present for appropriate TAXES TO NEW JERSEY Legislature of the State of New Jersey, reference a resolution adopted by the Mr. HENDRICKSON. Mr. President, I identical with the foregoing, which was re­ Board of Aldermen of the City of present for appropriate reference Con­ ferred to the Committee on Finance.) Holyoke, Mass., favoring the immediate current Resolution No. 10 of the Legisla­ GENERAL PULASKI'S MEMORIAL DAY- and unqualified repeal of the Taft­ ture of the State of New Jersey, memo­ RESOLUTION OF BOARD OF SELECTI~EN Hartley labor law, and I ask unanimous rializing the Congress to return to the OF PALMER, MASS. consent that it be printed in the RECORD. There being no objection, the resolu­ State of New Jersey sufficient moneys Mr. LODGE. Mr. President, on behalf from taxes raised in the State of New tion was ordered to lie on the table, and of my colleague, the senior Senator from to be printed in the RECORD, as follows: Jersey for the administration of unem­ Massachusetts [Mr. SALTONSTALL] and ployment compensation to provide ade­ myself, I present for appropriate refer­ Resolution regarding immediate repeal of quately for administration of the law in ence a resolution adopted by the Board the Taft-Hartley law that State, and I ask unanimous con­ of Selectmen of the town of Palmer, Whereas there has been enacted by the sent that it be printed in the RECORD. Eightieth Congress of the United States, a Mass., favoring the enactment of legisla- labor bill known as the Taft-Hartley law; The concurrent resolution was re­ . tion proclaiming October 11 of each year and ferred to the Committee on Finance, and, as General Pulaski's Memorial Day, and Whereas since the passage of this law, labor under the rule, ordered to be printed in I ask unanimous consent that it be . organizations have been oppressed and col­ the RECORD, as follows: printed in the RECORD. lective bargaining has been made more diffi.­ Assembly Concurrent Resolution 10 There being no objection, the resolu­ cult to promote the advancement of the Concurrent resolution memorializing the tion was referred to the Committee on American labor movement; and Congress of the United States to return to Whereas the Taft-Hartley law creates an the Judiciary, and ordered to be printed inferior class of citizens, and inferior cate­ the State of New Jersey suffi.cient moneys in the RECORD, as follows: gory and a debased position politically for from taxes raised in the State of New Resolution relative to the General Pulaski's the men and women who toil by hand or Jersey for the administration of unem­ Memorial Day now pending in Congress brain for their daily subsistence; and ployment compensation to provide ade­ Whereas a resolution providing for the Whereas the Taft-Hartley Act, in its en­ quately for administration of the law in tirety, is an insult to the working people of the State of New Jersey President of the United States of America to proclaim October 11 of each year as General the United States, a brand upon their in;. Whereas the Federal Government has Pulaski's Memorial Day for the observance tegrity and decency, and a handicap to all raised by taxation in the State of New Jersey and commemoration of the death of Brig. fair-minded employers; and for administration of the unemployment Gen. Casimir Pulaski is now pending in the Whereas the Taft-Hartley Act.tnvades the compensation law $34,000,000, about 38 per­ present session of the United States Con­ constitutional guaranties of free speech, free cent in excess of the sums actually appro­ gress; and press, and freedom of contract; and priated and expended for the administra­ Whereas the 11th day of October 1779 is the Whereas one of the main issues in the last tion of the law in this State; and date in American history of the heroic death Presidential campaign was the repeal of the Whereas the funds appropriated by the of Brig. Gen. Casimir Pulaski, who died from Taft-Hartley law · and such issue was sup­ Congress of the United States from taxes wounds received on October 9, 1779, at the ported by an overwhelming majority vote raised in New Jersey for administration have siege of Savannah, Ga.; and for candidates to political offi.ce who were on been and are insuffi.cient for adequate ad­ record for the immediate repeal of this Whereas the States of Arkansas, California, vicious and obnoxious law; and ministration of the law which has resulted Connecticut, Delaware, Illinois, Indiana, Ken­ in a drastic, emergent situation in New Jer­ tucky, Louisiana, Maryland, Massachusetts, Whereas the Eighty-first Congress has con­ sey, in that thousands of involuntarily un­ Michigan, Minnesota, Missouri, Nebraska, ducted hearings on a substitute labor bill' employed persons have been unable to secure New Hampshire, New Jersey, New York, known as the Thomas bill and such hearings the compensation to which they are entitled Nevada, Ohio, Pennsylvania, South Carolina, have resulted in needless repetitious testi­ for many weeks after such payments are due, Tennessee, Texas, West Virginia, Wisconsin, mony, consequently delaying action on the as long as 20 weeks in some cases; and and other States of the Union, through legis­ repeal of this law; and Whereas comparable industrial States have lative enactment designated October 11 of Whereas thousands of collective-bargain­ received for administration larger percent­ each year as General Pulaski's Memorial Day; ing contracts presently expiring and will ex­ ages of the sums raised therein; and and pire in the very near future, and labor or­ Whereas immediate action must be taken ganizations and employers cannot negotiate Whereas it is fitting that the recurring an­ with any degree of confidence as to the pro­ by the Congress of the United States to alle­ niversary of this day be commemorated with visions that may be-contained in a new labor viate this distressing situation: Therefore, suitable patriotic and public exercises in ob­ bill, thus creating an air of uncertainty and be it serving and commemorating the heroic death endangering harmonious labor relations be­ Resolved by the House of Assembly of the of this great American hero of the Revolu­ tween labor and management which may State of New Jersey (the senate con­ tionary War; and result in unavoidable work stoppage; and curring)- Whereas the Congress of the United States Whereas the citizens of the United States 1. That the Congress of the United States of America has by legislative enactment cf America have, by their vote last Novem­ be urgently requested to enact legislation designated from October 11, 1929, to October ber, delivered a- mandate to the new Con­ by which sufficient moneys for the adequate 11, 1946, to be General Pulaski's Memorial gress for immediate repeal of the Taft-Hart­ administration of the unemployment com­ Day in the United States of America: Now, ley law: 'Iberefore be it pensation law will be returned to the State therefore, be it Resolved, That the Board of Aldermen of of New Jersey and to other States from the Resolved by the Board of Selectmen, Town the City of Holyoke assert its disapprovai o! sums raised by the Federal Government by of Palmer, Mass.- the Taft-Hartley law; and be it further taxation in the States for the administra­ 1. That we hereby memorialize and peti­ Resolved, That the Board of Aldermen of tion of the law to the end that the claims of tion the Congress of the United States to the City of Holyoke go on record for the im­ unemployed persons entitled thereto may pass, and the President of the United States mediate and unqualified repeal of the Taft­ be promptly paid. to approve, if passed, the General Pu1asl:i's Hartley law and that the President of the 1949 CONGRESSIONAL RECORD-SENATE 4353

Unit~d States, Harry S. Truman, the majori',y "'Whereas the people of Belmont have since EXECUTIVE MESSAGES REFERRED leaders of the House and the Senate, the 1859 been happy to delegate certain func­ Members of Congress from the western Mas­ tions of government to their town govern­ As in executive session, sachusetts area, and the United States Sen­ ment, other functions to their State govern­ The PRESIDENT pro tempore laid be­ ators from Massachusetts, be so notified as ment, and still other functions to their fore the Senate messages from the Presi­ soon as possible after the passage of this reso­ National Government and are now willing to dent of the United States submitting lution so that they may act accordingly. delegate further limited functions of gov­ sundry nominations, which were referred ernment to a world government for the pur­ to the appropriate committees. WORLD GOVERNMENT-RESOLUTIONS OF pose of maintaining peace: Now, therefore, CITIZENS OF SHERBORN AND BELMONT, be it interpret­ Mr. MAYBANK. Mr. President, I pre­ S. 1561. A bill for the relief of Anton Bos; ing, and enforcing world law to prevent war; sent for appropriate reference a resolu­ to the Committee on the Judiciary. · and be it further tion adopted by Buffalo Post, No. 87, the By Mr. MURRAY: Resolved, That a copy of this resolution be S. 1562. A bill conferring jurisdiction upon . American Legion, Department of South the District Court of the United States for transmitted to both Senators from Massa­ Carolina, favoring the extension for an chusetts, the Congressman from the Four­ the District of Montana to hear, determine, teenth Congressional District, the President additional 12 months of readJustment and render judgment upon the claims of of the United States, the Secretary of State, allowance benefits for veterans, and I Caroline Henkel, William Henkel, and George and the United States representative in the ask unanimous consent that the resolu­ Henkel, and granting a preference in hear­ tion be printed in the RECORD. ing on such claims; to the Committee on the United Nations. Judiciary. A true copy, attest: There being no objection, the resolu­ [SEAL] ELIJAH c. BARBER, tion was ref erred to the Committee on S. 1563. A bill to authorize emergency flood Town Clerk. control works on White Bear Island, Mont.; Labor and Public Welfare, and ordered to the Committee on Public Works. to be printed in the RECORD, as follows: By Mr. MURRAY (for himself and Mr. I, Charles B. Wiggin, as I am town clerk "Whereas the deadline on readjustment al­ ECTON): of the town of Belmont, Mass., hereby certify lowanc<' for most World War II veterans is S. 1564. A bill to transfer control over that when article 43 in the warrant for the July 25, 1949; and Indian tribal funds to the Indian tribes; to adjourned s~ssion of the annual town meet­ "Whereas a large percentage of eligible vet­ the Committee on Interior and Insular Af­ ing was before the town meeting of the town erans have never made application for this fairs. of Belmont, Mass., for action on March 21, benefit; and By Mr. LANGER: 1949, as follows: "Whereas many manufacturing establish­ S. 1565. A bill for the relief of Dr. Ludovit "Article 43 ments are curtailing production and dis­ RUhmann; to the Committee on the Judi­ "To see if .the town will adopt a resolution missing employees and the need for this par­ ciary. affording the people of Belmont an oppor­ ticular benefit is very apparent: Therefore By Mr. CONNALLY: tunity to express to their Representatives in be it S. 1566. A bill to authorize the issuance of CongreE:I, in the Executive Department of "Resolved by Buffalo Post, No. 87, American a. special series of stamps commemorative of the Unlted States, and in the United . Na­ Legion, in regular meeting, That this post go the two-hundredth anniversary of the tions, their deep feeling regarding war and on record as favoring legislation extending founding of Presidio La Bahia and the Mis­ peace and to request such representatives to readjustment allowance benefits, under Pub­ sion Espiritu Santo in Goli:ad County, Tex.; take such steps as may be necessary to make lic Law 346, for an additional 12-month tp the Committee on Post Office and Civil the United Nations into a world government period." Service. capable of enacting, interpreting, and en­ The above resolution was unanimously By Mr. TOBEY: forcing world law to prevent war, or in any adopted by Buffalo Post, No. 87, American S. 1567. A bill for the relief of Avner Feld­ way act thereon." Legion, Department of South Carolina, in man; to the Committee on the Judiciary. The following resolution was adopted: regular session on April ~. 1949. By Mr. EASTLAND: "Voted, that the town adopt the following Attest: S. 1568. A bill for the relief of Anna Raj­ resolution: · HAROLD A. LAWSON, mann; and "'Resolved, That- Commander. S. 1569. A bill to confer jurisdiction on the " 'Whereas modern science has now pro­ LLOYD H. FLEMING, district courts to determine income tax de­ .duced means by which mankind can destroy Adjutant. ficiencies asserted against a taxpayer; to the itself; and Committee on the Judiciary. "'Whereas the United Nations was created. REPORT OF A COMMITTEE By Mr. CONNALLY: as an instrument to preserve peace and its The follcwing report of a committee S. 1570. A bill to preserve the export charter is capable of amendment so as to market for surplus agricultural export com­ make it effective for the maintenance of was submitted: modities; to the Committee on Banking and world order; and By Mr. HUNT, from the Committee on the Currency. " 'Whereas disarmament and world peace District of Columbia: By Mr. PEPPER: can only be achieved by world order, world H. R. 3704. A bill to provide additional rev­ S. 1571. A bill for the relief of Sergio Luis law, and some measure of world govern­ enue for t~e District of Columbia.i with Rendon y Acosta, also known as Sergio ment; and amendments (Rept. No. 260). Acosta.; and 4354 CONGRESSIONAL RECORD-SENATE APRIL 12 S . 1572. A bill for the relief of Steven The PRESIDING OFFICER

and the ones we bought, now total 450,000 matter an honest difference of opinion land. If the St. Lawren~e seaway were kilowatts-considerably in excess of the ca­ between us regarding the basic premise. to be constructed in the manner pro­ pacity of the presently requested units for Mr. Mc:;:-{ELLAR. I can understand posed, there would be no guaranty that the New Johnsonville steam plant. that." The Senator has always been per­ either the Senator's State or my State Mr. LANGER. Mr. President, will the fectly frank and open. or any of the other New England States Senator yield for a question? Mr. BRIDGES.- In that connection, would be protected · There are any num­ Mr. BRIDGES. I yield. I recall the statement made by the Sen­ ber of sets of figu\es on what the St. Mr. LANGER. In my State we have ator from Vermont a few. moments ago, Lawrence project would accomplish. 600,000,000,000 tons of coal, sufficient to in which he gave figures of the amount The accuracy of all of them is challenged. light the whole world. of taxes paid and the difference in the If there could be written into the St. During all this time the private inter­ showing in the Northeast. Of course, Lawrence seaway law a provision that ests have not used the coal .in the de­ in the Northeast I want to see power the six New Engl:md States would get a velopment of power, so that the farm furnished as cheaply as possible. But I substantial proportion of the power. I families in the vicinity couU get the bene­ do not want to see a great Federal em­ might feel very differently about it. fit of REA. In a situation of that kind pire built up in that section. I want the Mr. AIKEN. Let me ask the Senator, does not the Senator believe that a steam people of our section to have something if the St. Lawrence seaway were so de­ plant should be provided by the Govern­ to say about anything that is to be done. veloped that the entire output of power ment if it-is interested· in the welfare of Mr. AIKEN. Then, am I correct in were made available to the Niagara­ its people? saying that the Senator from New Hamp­ Hudson Power Co., which has the only Mr. BRIDGES. Of course, from the shire would not, as I think he has said, line in that area, I believe. and if New sectional point of view, that may be ar­ oppose development of power with public England were to be guaranteed a pro­ gued, but from the over-all point of view, funds, if the power were to be made portionate share of the power developed I should hate to see such a general pro­ available exclusively to the existing dis­ on the St. Lawrence, does the Senator gram inaugurated. I can see a justifica­ tribution companies at the bus bar? think that would be an improvement? tion for the development of great natural Mr. BRIDGES. What I am saying is Mr. BRIDGES. That is in the field of resources involving hydroelectric power that if we are to have public power de­ speculation. I do not think so. from water which is now going to waste velopment that power should be distrib­ Mr. AIKEN. Does the Senator believe where the full evidence justifies such an uted by existing facilities. that if the power were distributed solely undertaking. From the sectional point Mr. AIKEN. But does not the Sena­ by the Federal Government, New Eng­ of view I can see how the Senator can tor agree that where there is only one land would be assured of a greater share argue his case. But I would not want to existing line to the site of a development, of the power? agree to it. it would be impossible for the REA or Mr. BRIDGES. No. I think the only Mr. LANGER. Would the Senator municipal plants to secure the power way to assure the six New England States agree that, with all the latent power that from the Federal Government or from along that line would be to write it into ·exists in certain places that power should the State at reasonable rates? the law. I see the Senator from New be used, and that e.ven the private inter­ Mr. BRIDGES. It does not follow that York [Mr. IvEs] looking at me. He is out ests should develop it for use in the there would be such an impossibility. I for the New York interests, naturally. enormous areas of the West where hun­ do not think the Senator and I are far I am endeavoring to look out for the dreds of thousands of farm families have apart on this particular question, and I interests of at least a part of the New neither light nor power in their homes? may say that if there is a development England States. · Mr. BRIDGES. Very frankly, I should in a given section, the regulatory bodies Mr. AIKEN. In constructing the St. hate to see the Government of the United should see that there is a lowering of Lawrence seaway, I do not agree that States enter such a broad field. In any rates whenever possible. anyone would be looking after the inter­ event, in proposals of that kind a study Mr. AIKEN. I am in hope, by means ests of any particular State. But I real­ of all tlie facts would have to precede the of this questioning, to get the Senator to ize the Senator from New York is inter­ decision. say he will favor development of the St. ested in the people of his State obtaining Mr. LANGER. Mr. President, will the Lawrence seaway and power project. I power. The Senator from New Hamp­ Senator yield for· a further question? should like to inform the Senator that I shire understands, does he not, that the Mr. BRIDGES. I yield. have received a communication from the Federal Power Commission has no right Mr. LANGER. Under REA, the Gov­ president of one of the largest distrib­ to construct the plant with Federal funds ernment loans the money and it is re­ uting companies in our area, advising and turn it over to the exclusive use of quired to be paid back. The record at me that if we would agree to deliver the any one particular community? the present time shows that there is only power from that project exclusively to Mr. BRIDGES. That is correct. But one cooperative in default. As a matter private distributing companies, they the difference between the Senator from of fact, $17,000,000 was paid back before would not only withdraw their opposi­ Vermont and myself probably is that he it was due. In view of that record, does tion to the development but would get may have complete faith in what a Fed­ not the Senator believe the Government behind it and help push it, even though eral bureaucrat will do. I do not have ought to enter upon the development of it were to be constructed with public such faith. such natural resources? funds. I hope that may change, some­ Mr. AIKEN. The ·senator under­ Mr. BRIDGES. Such a conclusion what, the Senator's mind. stands, does he not, that I have fully should not necessarily follow. In assisting the Senator to arrive at a as much faith In the Federal bureaucrats Mr. MCKELLAR. Mr. President, will correct conclusion in this matter, I as I have in some of the Power Trust the Senator yield? should like also to point out to him that officials. We must trust one or the Mr. BRIDGES. I yield. if the power were turned over to a private other. Mr. MCKELLAR. I shall place in the company at the bus bar, there would Mr. BRIDGES. No; I do not agree. RECORD a little later, figures showing probably be about a $20,000,000 saving We may safely trust State regulatory the extent of TVA's net earnings. - I made available to the people of New York bodies and we may safely trust the Con­ shall not attempt to be accurate about it; and New England. But if it were sold at gress of the United States. The point I never was accurate about figures in a rate which would yield a fair return is that if we have a firm provision of law my life. Figures I have, obtained by the on the public investment, then, un­ any d.istrust can be removed. department, show the TVA has actually doubtedly, the saving would amount to Mr. AIKEN. I am unable to agree earned about 8 percent per annum. possibly $100,000,000 or $200,000,000, for with the Senator on that, I am sorry to Does the Senator not think that it is the simple reason that it would result in say. a fine record for an organization of this a general lowering of rates throughout . Mr. BRIDGES. I have faith in them. kind to show as good earnings as that, the area. But it is possible to write into the bill a without having charged the users of Mr. BRIDGES. I merely want the provision relative to percentage of distri­ electric current a large rate? Senator to understand one thing about bution of power. That is the only sure Mr. BRIDGES. I am interested, I the St. Lawrence seaway. way I can see of completely protecting may say to the Senator from Tennessee. Mr. AIKEN. It is a good thing. the rights of consumers. He knows that while we think alike on Mr. BRIDGES. The Senator comes Mr. HILL and Mr. LANGER addressed many things, there is on this particular from a neighboring State in New Eng_- the Chair. 1949 .. CONGRESSIONAL RECORD-SENATE 4359 . The PRESIDING OFFICER. Does the fields the weaker· our economic structure . in existence up to that time. I rise to Senator from New Hampshire yield; and will become. defend the Senator from New Hamp- . if so, to whom? · I now yield to the Senator from North shire. Mr. BRIDGES. I yield first to the Dakota. .:.. Mr. BRIDGES. I thank the Senator Senator from Alabama. Mr. LANGER. Mr. President, in re­ from Vermont. I recognize that his Mr. HILL. The Senator was speaking sponse to a question from the distin­ statement is true. The ·Senator from of private power companies and rates. I guished Senator from Vermont, the Sen­ North Dakota [Mr. LANGER] suggested merely want to call attention to the fact ator from New Hampshire stated that he something which was more liberal than that, as we know, private power compa­ did not want a large bureaucracy. I could support. · nies do not amortize capital investments Mr. BRIDGES. That is correct. Mr. LANGER. Mr. President, will the in dams and steam plants. So far as I Mr. LANGER. . He did not want the Senator yield·? know, such capital investments continue Government loaning money to a group ·of Mr. BRIDGES. I yield. forever. The bonds are not retired. They cooperatives to develop power. There Mr. LANGER. The Senator's com­ are not redeemed when the term is out. would not be any bureaucracy involved; mittee gave $100,000,000 more for REA · The bonds are refunded or . new bonds there would not be any State regulatory than was requested by the President of issued. Under the law passed several department; there would be only the the United States. The committee not years ago by Congress, TVA is required persons who would borrow the money. only gave $100,000,000 more, but author­ to amortize the entire cost of power What possible objection could the dis­ ized the construction of steam plants for projects. tinguished Senator have to that? REA purposes in the Northwest. Mr. AIKEN. Mr. President, will the Mr. BRIDGES. I recognize the point Mr. BRIDGES. That is correct. Senator from New Hampshire yield for the Senator is trying to make, and I ad­ Mr. LANGER. In other words, the one more question? mire him for his stand, from his point of Senator did a magnificent job, and I Mr. BRIDGES. I yield . . view: But, no matter how he twists it, think he has simply forgotten the fine Mr. AIKEN. Apropos of what the the Senator will not get me to stand on job he did in connection with the steam Senator from Alabama has just said, will the floor of the Senate and say I favor plants for REA. the Senator from New Hampshire point the Federal Government's building com­ Mr. BRIDGES. Mr. President, I ap­ out a single private utility that today -is mercial steam plants under complete preciate all the compliments which are amortizing its investments? Government control at taxpayers' ex­ being passed my way, but, nevertheless, Mr. BRIDGES. I am not familiar pense and in competition with private coming back to the particular project in­ with what many of the private utility enterprise. Mr. LANGER. Mr. President, will the volved, with its particular involvements, companies are doing. But I may say to I have attempted to say that there is a the Senator from Alabama that we would Senator yield further? di1f erence between the Federal Govern­ not have to spend a great deal of money Mr. BRIDGES. Certainly. ment's developing hydroelectric plants on TVA at this time if the money received Mr. LANGER. That is the very last on a large scale, when they are beyond by TVA had actually gone back into the thing I would try to get the Senator to the scope of a private utility, for tlie Treasury of the United States. say. I want to ask him if he does not benefit of the people of the country, pro­ . Mr. HILL. Mr. President, will the believe the Government should loan to vided it is done on a sound basis, and the Senator yield? cooperatives under the REA law suffi­ development of a steam plant such as is Mr. BRIDGES. I yield. cient money so that not only can REA the New Johnsonville steam plant. Mr. HILL. The reason there has not build lines, but also build steam plants to develop power, in view of the fact that Let us get back to REA for a moment. been much money going back into the I appreciate what the Senator from Treasury from the TVA has been that the cooperatives have paid back $17,000,- TVA has been using its revenues to build 000 more than is due from them at this North Dakota and the Senator from Ver­ time. · mont have said about me. I have sup­ other dams to· generate power used for ported REA appropriations, and I think the winning of the war, when we pro­ Mr. HICKENLOOPER. Mr. Presi­ the last Congress did a good job. duced so much of the aluminum that dent, will the Senator yield? went into airplanes and many other war Mr. BRIDGES. I yield. Mr. LANGER. Mr. President, will the products. Instead of turning the money Mr. HICKENLOOPER. Under the Senator yield? back into the Treasury, Congress per­ present law, REA can builc1 plants, I will Mr. BRIDGES. I yield. mitted the TV A to use the money for ex­ say in answer to the Senator's question. Mr. LANGER. All I asked for was a pansion, for the construction of other Mr. LANGER. Mr. President, will the billion dollars, and the committee grant­ dams and other works, which ·has made · Senator yield? ed $100,000,000. the property of the Government of more Mr. BRIDGES. I yield. Mr. McKELLAR. Mr. President, will value. The money is there in capital in­ Mr. LANGER. The Senator does not the Senator yield? vestment, I will say to my friend the believe the Government should loan the Mr. BRIDGES. I yield to the Senator Senator from New Hampshire. · money. The law provides for it, but the from Tennessee. Mr. LANGER. Mr. President, will the money cannot be obtained on certain Mr. McKELLAR. I want to join the Senator yield? occasions. other Senators in what they have 1lad to Mr. BRIDGES. I shall yield when I Mr. BRIDGES. Mr. President, I have say regarding the action of the Senator . reply to the Senator from Alabama. supported REA appropriations. I per­ from New Hampshire in reference to The Senator from Alabama makes a haps have not been so liberal as is the REA while he was chairman of the Ap­ very eloquent plea for his cause, but I Senator from North Dakota, but I sup­ propriations Committee. I think the want to say to him that, as one Senator . ported items that I could see of sound Senator was exceedingly considerate and and one citizen, I shall be very interested advantage to the country through REA. that he did a good job. when some of the cold cash from TV A I think it·has accomplished-a great deal. Mr. BRIDGES. I thank the Senator actually goes into the Treasury of the Mr. AIKEN. Mr. President, will the from Tennessee. If we have all agreed United States and remains there. Very Senator yield? on that, perhaps we can get together little of it has arrived there up to this Mr. BRIDGES. I yield. on the New Johnsonville steam plant. time. Mr. AIKEN. I want to remind the Mr. McKELLAR. I hope we can. Mr. HILL. Mr. President, will the Senator that the Eightieth Congress, Mr. BRIDGES. The issue is very clear. Senator yield? when the Senator ·from New Hampshire It has been discussed pro and con in the Mr. BRIDGES. I yield. was chairman of the Appropriations Senate in previous years. I do not think Mr. HILL. Of course, the Senator Committee, was the most liberal with there is any object in holding a lengthy does not deny the statement I made, 'that REA than was any former Congress. I debate on the subject. The item is a much of the cash which might have gone do not want the Senator from New small one, $2,500,000, but it ultimately into the Treasury went into new con- · Hampshire saying that he has not been means $54,000,000, in all, for the de­ struction, for the development of new so liberal as some other Senator, because velopment of the plant. I do not be­ power and for new generating facilitie·s. the Eightieth Congress made available lieve a case has been made for the New Mr. BRIDGES. Oh, not at all. But almost as much money as was made Johnsonville steam plant. I hope the the more the Government goes into th_ese ·· · available in all the years REA had oeen Senate will amend the bill, and reject 4360 CONGRESSIONAL RECORD-SENATE APRIL 12 that item. I can understand the con­ Mr. WHERRY. Mr. President, will tor from Massachusetts [Mr. LODGE], the cern of the Senators from the TVA sec­ the Senator yield? Senator from New Hampshire [Mr. To­ tion of the country and their desire to Mr. BRIDGES. I yield. BEYJ, and the Senator from Wisconsin build up this additional supplementary Mr. WHERRY. I ask the distin­ [Mr. WILEY] are detained on official power. But they are asking for a spe­ guished Senator from New Hampshire if business. cific appropriation for a specific steam he will yield for a quorum call, with the The PRESIDING OFFICER resident, I hope Senators will Mr. FERGUSON. Mr. President, will prehensive and cogent testimony against bear in mind that there is far more in- the Senator yield? it. Such testimony came from all sorts 4362 CONGRESSIONAL RECORD-SENATE APRIL 12 of people-from private citizens, from do not know whether there is something In other words, -this steam plant is not civic organizations, from divisions of in the name "New Johnsonville" or not. to firm up the power, but is to be built State governments, and from represent­ As I understand, this is the ninth steam in 2 or 3 years so as to provide for an atives of the power companies. The op­ plant to be built. Several have been · increase in the electricity requirements position represented a cross-section of bought from the Alabama Power Co. on the part of the municipalities and various people and interests. Probably The purchase of those plants was upheld cooperatives in that district. In short, some of the opposition was very sound, by the Supreme Court of the United it is for future business, rather than for and perhaps some of it not so sound. States. firming up present tusiness; is that not However, by and large, there was a feel­ · There is no doubt that the principal correct? ing of opposition against the idea of the evidence offered at the hearing by the Mr. KEFAUVER. Mr. President, will Federal Government using the funds of opponents was on the constitutional the Senator yield? taxpayers from all the States of the question, and not on the facts. Every­ Mr. BRIDGES. I yield. Union to build steam plants in a particu­ one seems to be agreed as to the facts. Mr. KEFAUVER. I ask the Senator lar area which would be in competition Mr. FI,iANDERS. Mr. President, will whether the testimony does not show with industries in other sections. the Senator yield? that in 1951-52 there will be an esti­ Mr. FLANDERS. Mr. President, will Mr. BRIDGES. I yield. mated shortage of 274,000 kilowatts? the Senator yield? Mr. FLANDERS. It seems to me that That is shown on page 14 of the House Mr. BRIDGES. I yield. possibly the esteemed Senator from Ten­ hearings and also at page 197 of the Sen­ Mr. FLANDERS. The Senator from nessee has made a good technical case ate hearings. New Hampshire is a member of the Ap­ for not referring to this item in the re­ The testimony further is that the pro­ propriations Committee. I understand port. Frankly, it is a matter which is posed plant, to be built and placed in from what he has just said that this item known to be controversial. It is a matter operation over a period of 3 years, will was thoroughly discussed in the Appro­ with respect to which I ·do not see such deliver 3,000,000,000 kilowatt-hours of priations Committee during the hear­ overwhelmingly clear light on one side prime electricity, available through the ings. What puzzles me-and I should or the other that I could come to the TVA system. like to ask the Senator from New Hamp­ :floor of the Senate committed to one I ask the Senator further if the testi­ shire the reason for it-is that there is no view or the other. It seems to me that mony at the hearings does not conclu­ reference to it in the report. in a case of this kind the report should sively show that there is now a shortage Mr. BRIDGES. I cannot answer that have substantiated the request for the of prime electricity in the Tennessee Val­ question because I did not write the re­ appropriation. I regret that it did not. ley, and a threatened greater shortage port. I shall have to refer to the chair­ Mr. · THYE. Mr. Pi;esident, will the for years to come, and also that the pro­ man of the committee, the able Senator Senator yield? posed plant cannot be built overnight, from Tennessee [Mr. MCKELLAR]. Per- · Mr. BRIDGES. I yield. but that we must look_to the time in haps the Senator from Tennessee, in his Mr. THYE. I should like to ask the 1951 when it can be placed in operation? very able manner, was attempting to put Senator from New Hampshire a question. Does not the testimony further disclose this project through without arousing too Is there an inadequate supply of elec­ that there will be a shortage of 274,000 much antagonism. tricity in the vicinity of Muscle Shoals kilowatts at that time? for the present demands of Jndustry? Mr. THYE. Mr. President, will the Mr. McKELLAR. Oh, no. Senator yield for a question? The PRESIDING OFFICER. Does Mr. BRIDGES. That is a -debatable point. I think the proponents of the Mr. BRIDGES. I yield. the Senator from New Hampshire yield Mr. THYE. The question might be to the Senator from Tennessee? steam plant advance the argument that in order to get the run benefit of TVA's directed to the Senator from Tennessee Mr. BRIDGES. I yield. I am sure the hydro development they must have the if the Senator from New Hampshire will able Senator from Tennessee can ex­ steam plant in order to create firm power. permit. The Senator from Tennessee plain it. Mr. THYE. Mr. President, will the says there will be ·a shortage of electricity Mr. McKELLAR. Mr. President, Senator further yield? in 1951-52. What type of industries are there was no committee amendment on Mr. BRIDGES. I yield. now waiting for the proposed develop­ this subject. The item came from the Mr. THYE. As I understand, during ment, or is it a question of what the House and was agreed to by the commit­ certain seasons of the year there is an junior chambers of commerce in those tee overwhelmingly, as the Senator from ample :flow of water to operate the power­ areas think they will be able to develop New Hampshire, no doubt, recalls. The generating facilities within that area. In in the way of new industries, provided same item was approved last year. fact, at certain seasons of the year.water it can be shown that there will be suf­ I think the two principal witnesses goes to waste. 'At such times there is ficient electricity to warrant establishing heard were Mr. Smith, of Washington, not sufficient generating capacity to uti­ new industries there? representing the power companies at a lize all the supply of water power. At Mr. KEFAUVER. I 111ay say to the trifling salary of $65,000 a year, so he other seasons of the year the water sup­ Senator that the greatest percentage in­ testified; and the other was a great con­ ply is low. As I understand, it is desired crease has been in rural electrification. stitutional lawyer from Cleveland, Ohio. to firm up the power by a stand-by steam Over the period of the last 5 years the When he was asked what salary he re­ plant when the water supply is low at amount of electricity used on the farms ceived, he stated that he did not receive certain seasons of the year. has been multiplied by five. The normal a salary, but intended to charge a fee. Mr. FERGUSON. Mr. President, will peacetime growth of the Tennessee Val­ He spoke largely about the constitutional the Senator yield? ley area is fully discussed in the hear­ question. Mr. BRIDGES. I yield. ings. As a matter of fact, there is a As I recall, the testimony was over­ Mr. FERGUSON. I think I can answer shortage of electricity now. whelmingly that the Tennessee Valley that question by referring to the report Mr. THYE. Mr. President, will the Authority was seeking money to build of the House hearings on page 27, where Senator from New Hampshire yield in a steam plant at New Johnsonville in Mr. Clapp, the manager, uses this lan­ order that I may ask another question? order to enable it better to sell the power guage: Mr. BRIDGES. Certainly, I yield. produced by the Government. As the Now, I cannot say, as a matter of fact, Mr. THYE. My question is not only operation is now carried on, it is selling that if this steam plant is not put into the with reference to what the Senator says the product of the Government, at a TV A syst em these transmii;sion lines and the present needs are of t~e REA, but profit to the United States. The TV A these distribut ion systems will not be any also whether there now exist associations is in fine condition. It already owns a good; but they will not be able to perform which are not able to obtain electrical number of steam plants. It bought a the function for which they were bunt. That current from the TVA because not suffi­ number of steam plants from the Ala­ funct ion is to keep carrying whatever in­ cient electricity is being generated there. bama Power Co., and several have been creased electric current is required to pro­ vide the services which the municipalities Mr. KEFAUVER. I am informed that built without objection heretofore on the and the cooperatives have agreed to give in the TVA is having to scan the new con­ part of either the Senate or the House. their area, and which we, in turn, for the tracts for electricity very closely in order I do not understand. the remarakable Government, have agreed to give, and ar­ to be sure that it does not take on an objections which are now being raised range with them, the municipalities and co­ immediate peak load which it will be to the New Johnsonville steam plant. I operatives. unable to meet. 1949 CONGRESSIONAL RECORD-SENATE· 4363 Mr. THYE. Mr. President, will the the Senator is trying to do with the Mr. THYE. Mr. President, will the Senator from New Hampshire yield for steam plant is to fit it into the hydro­ Senator yield for another question? one more question? electric units, so that when the water Mr. BRIDGES. I yield. Mr. BRIDGES. I yield. supply ts ample the steam plant will Mr. THYE. My only reason for mak­ Mr. THYE. When we were at Muscle stand idle; but when the water supply ing inquiries about the matter is simply Shoals in the fall of 1947, an additional tapers off to a low level, the steam plant that in the event there is a water supply hydroelectric unit was being installed will be brought into operation, to sup­ tlfat · will generate electricity for 9 there Can the Senator tell me how plement the electricity generated by months of the year, with a tremendous many additional units they intend to means of the water supply, Is that the electrical output, because the · dams install in the future? Of course, each intention? must be emptied of the impounded water one of the dams has a series of hydro­ Mr. KEFAUVER. Exactly; the Sena­ in order to prepare for the next flood electric generating units. I wonder how tor has certainly expressed it very clearly. period. While the water is being many more it is intended to install. As matters now stand, the Tennessee emptied, it must be run through the dam Mr. KEFAUVER. This appropriation Valley Authority is losing 3,000,000,000 gates, in order to lower the level of im­ carries $450,000 for two generators. I . kilowatts for 3 months of the year. pounded water, to prepare to receive the think one is to be installed at the Fort Mr. THYE. The Senator says there is next flood water. If that water must be Loudon Dam, or perhaps both are to be ample demand for the maximum load of run off and not used in the generation of installed at ·the Wautauga Dam in east both the water power and the steam 'electricity, in order to decrease the Tennessee. power if and when the steam power is amount of impounded water, water power Mr. THYE. After all the hydroelec­ made available; is that correct? will be wasted because of the inability, tric generating units the dams can ac­ Mr. KEFAUVER. That is true. so to speak, to use all the electricity, commodate have been installed, how Mr. THYE. In other words, there ts since the load cannot be assumed. At many months of the year does the Sen­ ample demand now, · without searching the low-water season the water would be ator anticipate the water supply will be for and encouraging the development of insufficient to generate the electricity adequate to operate those generators? new industries, to furnish· a load suffi­ contracted for at a time when the water Mr. KEFAUVER. The testimony cient to use the maximum of the. elec­ was at the maximum level in the spring shows that during an average year they tricity capable of development if and of the year. need the proposed stand-by plant for when the steam plant is constructed; is That is the thought that comes to me 3 months of the year in order to bring that correct? in attempting to arrive at what is the the firm power up by 3;000,000,000 kilo­ Mr. KEFAUVER. The record shows wisest thing to do, whether to provide watts, which would enable the TV A to that fully, I think. for a steam plant or to refuse to provide take care of its contractual commit­ Mr. THYE. Does the Senator mean for it. If the steam plant could firm up ments. there is a need for the electrical current and make the entire unit more efficient Mr. THYE. In other words, there will and more profitable as a Government now? enterprise, then we would be justified in be an ample supply of water 9 months Mr. KEFAUVER. Yes; and with the of the year to operate all the installed · entering into it, but in the event we are normal development of the area, the merely adding electrical output to en­ hydroelectric units at full capacity; is need will be what I have stated, namely, that correct? courage an expansion of industries be­ in 1951 the need will exceed by 274,000 cause it is possible to give them an as­ Mr. KEFAUVER. The answer ts kilowatts the available supply, unless the surance of a low electrical rate, then I given, I think, more clearly than I could proposed steam plant is constructed. would say we are making possible the give it on page 197 of the hearings, in Mr. FERGUSON. Mr. President, will development of the enterprise only by this paragraph: the Senator yield? an enGouragement of low electrical costs. The New Johnsonville steam plant, by Mr. BRIDGES. I yield. Mr. McKELLAR. Mr. President, Will firming up additional portions of the power Mr. FERGUSON. Mr. President, I available from the hydro plants of the TVA the Senator yield? system, will make possible an increase in firm think the question of the able Senator Mr. ·BRIDGES. I yield. power of about 3,000,000,000 kilowatt-hours a from Minnesota is answered from the Mr. McKELLAR. If I may do so in year. To do this, it will be. necessary to op­ record in language just the opposite to the time of the Senator from New erate the New Johnsonville plant about one­ what the Senator from Tennessee has Hampshire, I should like to say to the third of the time, generally at full load, in indicated. I again refer to page 27 of the Senator from Minnesota that his first addition to the present use of the existing House hearings: statement of the case is perfect; it could TVA steam plants, to supplement the sea­ be sonal secondary hydro generation. The function is to keep carrying whatever not improved upon, in my judgment. increased electric current is required to pro­ As we all know, there is a period in the I may say further that the deficiency .vide the service which the municipalities summer and fall of the year when the existing in 1951 is expected to be 274,000 and the cooperatives have agreed to give in water power is very low; indeed, at kilowatts, unless the proposed plant is their areas, and which we, in turn, for the Government, have agreed to give, and ar­ times, almost nonexistent. That is the built. ranged with them, the municipalities, and time we must have steam power, in order The operation of this plant normally cooperatives. to provide a convenient fl.ow of power will be for the purpose of making avail­ to those who use it, including coopera­ able 350,000 kilowatts, but under the In other words, there is in mind the tives, municipalities, people generally, construction program one unit will not idea that we do know the business is and Government agencies. In that come into operation until about the lat­ going to increase, that the municipalities neighborhood, of course, the Atomic ter part of 1952. So they will be just and cooperatives are going to get more Energy Commission and the various other barely above their demands for firm business in the future, but it is the pur­ agencies are located. power, but they will be able to take care pose of the steam plant to generate Mr. FERGUSON. Do they use TVA of their estimated need if this plant is enough electricity as to be able to supply power? constructed. this prospective increased demand in Mr. MCKELLAR. Certainly, they use Mr. THYE. In the event the funds connection with business activities. TVA power. Everyone in . that whole are not made available, so that this There are undoubtedly other rivers and area does. They have entered into an steam plant is not provided, then hydro­ other places where dams could be built, agreement. The agreement was attacked electric generating equipment sufficient according . to the Constitution and ac­ by the private power companies, just as to utilize the maximum estimated gen­ cording to statute. Instead of building the steam plant is now being attacked erating capacity of the water supply dams and using water pawer from such by the power companies. The case went could not profitably be installed, because dams, there are those who at this par­ to the Supreme Court, and is known as there would be a season of the year when ticular time want to install a power plant the Ashwander case. In that case the there would be an inadequate supply of at a cost of $54,0CO ,OOO, a plant which Supreme Court upheld the constitution­ water, although at that time of course will be large enough to furnish firm power ality of TVA. It upheld the purchase of the demand for electricity would be just to a city of over a million people, and the plants. The Supreme Court, speak­ as great as it would be at the time of the yet it is talked about as if it were only ing by Mr. Justice Hughes, one of the maximum of the water supply. So what a firming-up project. most distinguished Justices the Supreme 4364 CONGRESSIONAL RECORD-SENATE APRIL 12 Court ever had, rendered an opinion up­ Court and did not render an opinion. stated when he was appearing in the holding the constitutionality of the Ten­ Mr. Reed was a member of the Court, case. Anyone who i::; familiar with pro­ nessee Valley Authority Act. It had a but, as I recall, he filed a dissenting ceedings in a court knows that counsel right, the Court said, to dispose of the opinion-- lay dovm what they expect the Cot:rt to power to the best interests of the Gov­ Mr. FERGUSON. Oh, no. decide, and their admissions are con­ ernment, and for that reason it affirmed Mr. McKELLAR. Mr. Reed was at that sidered against interest. It is true tha) and confirmed the right of the TVA to time not a member of the Court; he Mr. Justice McReynolds was a dissenter sell power in -~hat manner, which was the was the Solicitor General. It was Mr. in the case, but Justice Hughes in tl1e ordinary thing in business, and which Charles Evans Hughes, one of the most majority opinion recognized ·what was would bring the greatest return to the distinguished jurists who ever sat on the said by John Lord O'Brian and what was United States Government. Under that bench of that Court, who represented -said by Solicitor General Reed at that ruling of the Court, the enterprise has the majority and delivered the opinion. time. been a great success. If my memory is bad regarding the mat­ Mr. Justice McReynolds asked this I want to say again to the Senator from ter, I can read from the book. question: Minnesota that I do not believe his first Mr. FERGUSON. I do not dispute the Is there a steam plant in connection with statement about it could be improved Senator's memory. this project? upon by anyone. I know I could not state Mr. McKELLAR. Oh, yes; the Sen­ Mr. O'BRIAN. Yes, your honor. That was it as well as he has. It is a perfect state­ ator did dispute it. If the Senator will mentioned earlier. There is a large steam ment o( the case, that in order to utilize yield--- plant which was built at Muscle Shoals all the hydroelectric po-vers, we are Mr. BRIDGES. I have yielded to the before the dam was built. obliged to have steam plants, in order Senator from · Michigan. Mr. Justice MCREYNOLDS. For what pur­ to provide an even flow of electricity to Mr. FERGUSON. I shall be glad to pose? those who buy power. yield to the Senator from Tennessee. Mr. O'BRIAN. For the purpose of equipping the war munitions plant immediately, as Mr. HILL. Mr. President, will the Mr. McKELLAR. Mr. President, I quickly as possible, with power. Senator yield? read as follows: Mr. BRIDGES. I yield to the Sena­ The transmission lines which the Author­ Digressing for a moment, there is no tor from Alabama. ity undertakes to purchase from the power contention on the floor of the Senate that Mr. HILL. What the Senator from company lead from the Wilson Dam to a the United States Government cannot Tennessee says is absolutely correct. large area within about 50 miles of the build a steam plant for the purpose of The first statement by the Senator from dam. These lines provide the means of national defense, to manufacture muni­ Minnesota is 100 percent right. The distributing the electric energy, generated at the dam, to a large population. They tions with which to win a war. That is purpose of building the steam plant is furnish a method of reaching a market. The not disputed. That is the reason why to avoid the waste of water, so that the alternative method is to sell the surplus the steam plant was built at Muscle Government properties may be operated energy at the dam, and the market there Shoals, as indicated in the record. with the least possible waste and on the appears to be limited to one purchaser, the I now go back to the record: soundest and most economical and busi­ Alabama Power Co. and its affiliated inter­ Mr. Justice MCREYNOLDS. Is that used to nesslike basis. ests. We lmow of no constitutional ground generate electrici_ty? The Government seeks to build the upon which the Federal Government can be Mr. O'BRIAN. No, sir; it has never been steam plant just as the private power denied the right to seek a wider market. used. It stands idle. Much is made in my companies in the Southeast have built Mr. President, I am reading from the opponents' briefs of the danger of the Gov­ and are today building steam plants. opinion of the Court, and that is what ernment's selling power from the steam plant. The precipitation of rain varies in such That steam plant is not in this case. It counts when it comes to determining has never been used. It has been main­ degree that there is an uneven flow of what the Court said. I am ·not reading tained. It has been leased to the Alabama the rivers. Without an even flow of the what may have been said in the case by Power Co., which has used it as a stand-by rivers, the only way by which a great Mr. O'Brian, who was a lawyer for the facility with which to meet break-downs in wastage of water and water power can Government in the case, or by the other its service. There is nothing in this record be avoided is by the utilization of steam. lawyers. I am reading from the opinion to show that the Authority ever intends I ma:r say to the Senator from Minne­ of the Court itself. to use it for the. purpose of generating power sota, the Alabama Power ·Co. has just for sale, and I disavow any such intention Mr. FERGUSON. Mr. President, will at this time. finished building a large steam plant the Senator yield? in Mobile, Ala., in order to firm up the Mr. BRIDGES. I yield. Those are the words of the counsel who power on the Coosa and Tallapoosa Mr. FERGUSON. Mr. President, I · is arguing the case before the Supreme Rivers. The company is now building also want to read from the opinion of the Court. at Gadsden, Ala., another steam plant Court. I have the same kind of a book I again go back to the record: for the same purpose. here. We shall not disagree on what the Mr. Justice BUTLER. I know; but you as- Mr. FERGUSON. Mr. President, will Court said. But, Mr. President, the way sert the power, do you not? the Senator yield? to tell what is involved in a case is to read He is ·questioning Mr. O'Brian. Mr. BRIDGES. I yield to the Senator further to see what the attorneys are from Michigan. Mr. O'BRIAN. No; I do not. contending for in the case. John Lord Mr. Justice BUTLER. Do you say that: to Mr. FERGUSON. Yesterday, the able O'Brian represented TVA. Mr. Reed, aid in disposing of the electricity incidentally Senator from Tennessee spoke about the then Solicitor General and now a justice produced from this navigation dam, the Con­ Ash wander case,. and again today he has of the Supreme Court of the United gress has no power under the Constitution referred to that case. It is not often States, was one of the counsel for the to build stand-by plants to supply their cus­ that I disagree with the legal reasoning Government. Here is a colloquy between tomers, to keep the current going? or opinion of the able Senator f ram Justice McReynolds and John Lord Listen to what Mr. O'Brian said: Tennessee, but in this particular case I O'Brian. The reason I refer to it is be­ Mr. O'BRIAN. If you mean breakdown fa­ must disagree with him because the cause Justice Hughes, in deciding the cilities, yes, it could. It would have to. Any record in the case, the opinion of the case-- regulated system would have that. court, and the record itself, are quite Mr. McKELLAR. Mr. President, will Mr. Justice BUTLER. And then to meet the opposite of what the able Senator . the Senator yield? great demands upon the peak? from Tennessee has stated. Mr. BRIDGES. I yield. Listen to this answer on the part of I am sure that is so because he has Mr. McKELLAR. Did not Mr. Justice neglected to read the record of the par­ McReynolds dissent? Is it not true that Mr. O'Brian: ticular case. I want to read from the he did not agree with the Court, but Mr. O'BRIAN. No; I do not think that can record in the case what John Lord wrote a dissenting opinion in the case? be done in this case. O'Brian said, what Justice Reed-who What he and Mr. O'Brian may have ex­ Mr. Reed, who was then Solicitor Gen­ was then the Solicitor General-said, and pressed as being their views is of no con­ eral, said this: v1hat Justice Hughes said, as to what sequence in connection with this ques­ From the bench and at the bar this con­ was involved in the case. tion. troversy has come down to a question of this Mr. McKELLAR. Mr. President, John Mr. FERGUSON. I want to give to kind, if we assume that this act was primarily Lord O'Brian was not a member of the the Senate what the counsel for the r::v A for navigation, then it would be valid. If we 1949 CONGRESSIONAL RECORD-SENATE 4365 determine that this act, while stating that it that he may· ask a question of the Sen­ for the measure. But that is what I ts for the navigation, national defense, and ator from Michigan. must have made clear in my mind. flood control, is actually for the purpose .of Mr. FERGUSON. Mr.- President, I developing power and selling it commercially, Mr. THYE. I thank the senior Sena­ the act would be invalid. tor from New Hampshire. I should like shall try to clear up that point for the to address a question to the junior Sen­ record. First, I will say that neither Those are the words of the Solicitor ator from Michigan. The whole purpose the able Senator from Minnesota nor General of the United States in that case. of the TVA project was, first, fiood con­ anyone else is able to change the Con­ I shall now read from the opinion of trol, was it not? stitution. This may become a question the Court. The first line I shall read is Mr. FERGUSON. Flood control and of · the Government trying to make a very significant : navigation. profit. The Government might upon the We limit our decision to the case before us, Mr. THYE. Flood control. same theory the Senator has referred to as we have defined jt. The argument is Mr. FERGUSON. And navigation. says, "Now that we have electric power earnestly presented that the Government, by Mr. THYE. Navigation is secondary. there is no reason why we should virtue of its ownership of the dam and Flood control was the primary purpose. not manufacture automobiles. There is power plant, could not establish a steel mill no reason why we should not manufac­ and make and sell steel products, or a fac­ The purpose was to check the devastat­ tory to manufacture clothing or shoes for ing floods which affected other areas in tu.i:e locomotives. If we use our own the public, and thus attempt to make its the United States. If the river were left energy in the manufacture of automo­ ownership of energy, generated at its dam, a to go its own course it would devastate biles, or in the manufacture of locomo­ means of carrying on competitive commercial other areas. So flood control was the tives, we will be able to sell such automo­ enterprises, and thus drawing to the Federal project first established. Once the water biles or locomotives at a better price than Government the conduct and management had been impounded, there immediately if we could only sell the energy produced of business having no relation to the pur­ was potential power, which could become at a dam." poses for which the Federal Government was If that could be done, then America established. The picture is eloquently effective· the minute the water dropped drawn, but we deem it to be irrelevant to the over the dam. coulc be socialized. If that could be issue here. The Government is not using Then in order to harness the water done, the Government of the United the water power at the Wilson Dam to estab­ power, hydroelectric units were estab­ States could go into every business, from lish any industry or business. lished. The water power was harnessed. the operation of a grocery store to the It is not using the energy generated at the In the course of a season :·here are high­ manufacturing of locomotives, without dam to manufacture commodities of any sort changing the Constitution of the United for the public. The Government is disposing water levels and there are low-water levels in the ponds in which the water States of America one iota. Then all of the energy itself which simply is the that would be necessary would be some­ mechanical energy, incidental to falling is impounded, so in order to have a reser­ water ·at the dam, converted into the electric voir in which to impound water in sea- where in America to harness the power energy which is susceptible of transmission. ·sons of flood or high-water levels it is at a dam, and then it could be said, "Be­ the question here is simply as to the acquisi­ necessary to draw down the water. cause we have that little bit of power we tion of the transmission lines as a facility When all that has been accomplished must firm it up, we must use it to the for the disposal of that energy. And the there has been developed a potential gen­ best advantage so we can make a profit." Government rightly conceded at the bar, in erating unit which is capable of generat­ Under that theory it would not be neces­ substance, that it was without constitutional ing so many hundred thousand or so sary to alter or amend the Constitution authority to acquire or dispose of such en.ergy of the United States in order to enable except as it comes into being in the operation many million kilowatts in a given season of works constructed in the exercise of some of the year. the Government to change the whole power delegated to· the Unlted States. As With all this potential impounding economic and the whole political system. we have said, these transmission lines lead - capacity and potential generating ca­ I shall now try to answer the question directly from the dam, which has been iaw­ pacity, when in the low-water season of about firming up. fully constructed, and the question of the the year, the im·pounded water has - Mr. THYE. Mr. President, will the constitutional right of the Government to Senator yield for one more question? acquire or operate local or urban distribu­ shrunk and there is not sufficient water, Mr. BRIDGES. I yield to the Senator tion systems is not involved. We express no yet the TV A does not dare to impound from Minnesota to ask a question of the opinion as to the validity of such an effort, water any longer because the ponds Senator from Michigan. as to the status of any other dam or power would then be unable to receive the water · development in the Tennessee Valley, in the :fiood season of the year. So for Mr. THYE. We, that is the Govern­ whether connected with or apart from the about 3 months of the year the generat­ ment, must not lose sight of the fact, Wilson Dam, or as to the validity of the Ten­ however, that the Government im­ nessee Valley Authority Act or of the claims ing capacity of all this installation is pounded the water for the purposes of . made in the pronouncements and program of low. Industries cannot be hooked up to stopping the ravages and devastations the Authority apart from the questions we consume more electrical current than resulting from :fioods. That was the first have discussed in relation to the particular is generated at th~ minimum of its gen­ purpose of TV A installation of dams. provisions of the contract of January 4, 1934, erating capacity. Industries cannot be Then, of course, from there on the Gov­ affecting the Alabama Power Company. hooked up to the maximum generating ernment harnessed the potential power The decree of the Circuit Court of Appeals capacity because then there would not is affirmed. of the water in the Tennessee Valley. be ample electricity during the low-gen­ The Government did all that. The Gov­ In other words, the Court did not pass erating season or generating period. ernment stepped into that particular ac­ on the constituthmality of the act., That The steam plant is being discussed, as tivity for the purpose of conservation, by is clear from the language of Chief·Jus­ I see it, to take care of that one period way of stopping :fioods. So the Govern­ tice Hughes, which I repeat: in the year when there is not sufficient ment was not making an attempt to es­ And the Government rightly conceded at electrical power being generated at the tablish business, or to go into business. · the bar, in substance, that it was without ·dams or by reason of the so-called im­ The Government went into the situation constitutional authority to acquire or dis­ pounding of water. If I am wrong in my for the purpose of adopting a safety pose of such energy except as it comes into understanding of the project, I want to measure to prevent :fioods, and, of course, being in the operation of works constructed have it cleared up, because I do not want the impounding of water is necessary to in the exercise of some power delegated to to vote for something that is unneces­ stop floods. That makes possible the • the United States. sary; but I do want to vote favorably generation of power from the drop or That is, energy created by flood-con­ upon projects that are necessary. If the fall of the water over the dam. trol or navigation works comes clearly firming by steam makes the whole Fed­ Mr. FERGUSON. We are talking under the commerce clause, and the Gov­ eral project more profitable, more effi­ about constitutional power, constitu­ ernment would have the power to use cient, and will furnish for 12 months of tional authority. There is no doubt that that energy or power. the year a steady flow of current upon under the commerce clause the United Mr. THYE. Mr. President, will the which industries can depend, and upon States Government can erect dams for Senator yield for a question? which war plants . can depend, if we :fiood control and navigation, and when Mr. BRIDGES. Mr. President, I have should ever again be compelled to re­ it erects a dam, the mechanical power the fioor, but I shall be glad to yield to esta'Jlish war plants of great magni­ from the falling of the water can be gen­ .the Senator from Minnesota in order tude, I would not hesitate at- all to vote erated into electrical power, and the 4366 CONGRESSIONAL RECORD-SENATE APRIL 12· United States Government can, under Mr. FERGUSON. Yes. 1 am talking who do want to see America take the the commerce clause of the United States about the first step in socialization first big step in socialization. Constitution, sell the power so generated. which I see today, and which later can Mr. SPARKMAN. Now that Mr. Jack­ There can be no doubt about that. be extended to cover an attempt to so­ son has been thoroughly identified, I But that is not what is being done cialize the industries in America, be­ should like to say that, according to his now. It is said, "Since we create this cause it will be contended that the Gov­ own statement, he was appearing in be­ power f ram the dam, we can then go a ernment can function more efficiently half of the electric power companies of step further." Remember, from 1933 than can private industry. the United States. Since the matter of down to date they have been generat­ Mr. SPARKMAN. Mr. President, will pay has been brought into the ·debate, I ing power in the particular area by the the Senator from New Hampshire yield? believe Mr. Clapp receives $10,000 a falling of the water. There is no short­ Mr. BRIDGES. I yield to the Senator year of taxpayers' money, and Mr. Pur­ age at the present time. There is no from Alabama. cell L. Smith receives $65,000, plus ex­ evidence showing that they are unable Mr. SPARKMAN. Before we get too penses, paid out of the pockets of the to keep their plants going. No one seems far away from the quotation the able electric power consumers in the United to think that any of the industries in Senator from Michigan gave from John States. Of course, Mr. Jackson would the Tennessee Valley should erect their Lord O'Brian, a member of the legal staff, probably receive a similar fee. ·I do not own power plants and use coal. No one and leading counsel in the case in the know what his pay is. I wish to accept seems to think anything about that. Supreme Court, I should like to quote a part of what the Senator from Michi­ I say, Mr. President, that this is the something from the legal staff of the gan has said, namely, that Mr. Jackson first step, and that is what we -are talk­ private-utilities side. L!sten to this is an outstanding constitutional author­ ing about. Why do I say this is the from Mr. Raymond P. Jackson-I think ity, and I wish to quote him for that rea­ first step? Along the line, not here in that is his name-of Cleveland, Ohio, son. Listen to this: the Senate, but in the administrative of­ whose name was signed to the petition, or Under the Teanessee Valley Authority Act, fices, there will be those who v1ill say, complaint, of the private utilities. as amended, the number and capacity of "You in Congress took this step back in Mr. McKELLAR. And he was a steam- 1949, and now we can take the next witness. Remember the word "steam"- step toward socialization." · Mr. SPARKMAN. He was a witness in Under the Tennessee Valley Authority Act, Mr. President, in the Interior Depart­ this case this year, as he was last year, as amended, the number and capacity of ment budget for reclamation for this and as he will be next year, and on and steam and hydroelectric plants for the gen­ year, in the Central Valley project, those on. He is attorney for the'private utili-. eration of electricity which the defendants in charge are asking that they may take ties, and comes to the committee each may construct and operate in the Tennesee this same step under reclamation, to time in the company of Mr. Purcell L. Basin are wholly undefined. Said act, as build a $26,000,000 steam plant at Anti- Smith. amended, purposes to vest complete and och, Calif. · Mr. KEFAUVER. Mr. President, will uncontrolled discretion in the defendants in Mr. MAGNUSON. Mr. President, the Senator yield? relation to such matters. will the Senator yield at that point? Mr. SPARKMAN. No; let me con­ Mr. FERGUSON. On what page is Mr. BRIDGES. I have the floor. tinue. I wish to quote this witness. that? Mr. MAGNUSON. I wished to ask the Mr. HILL. Mr. President, will tlie ' Mr. SPARKMAN. That is from last able Senator from Michigan if he Senator yield? year's hearings, page 222. thought the situation he just described Mr. BRIDGES. I have the floor. I Mr. BRIDGES. Mr. President, to pro­ might fall in the same category as a sit­ have yielded to the junior Senator from ceed with my remarks, the senior Sena­ uation in Washington. As the Senator Alabama. tor from Minnesota [Mr. THYEl raised knows, we have the Grand Coulee project Mr. HILL. Will my colleague yield to some questions relative to the necessity in the State of Washington. me to identify Mr. Jackson a little of the steam plant, and whether it had Mr. FERGUSON. Yes. further? to do with firming up power. The Sena... Mr. MAGNUSON. In part that proj­ Mr. BRIDGES. I yield. tor from South ·Dakota [Mr. GURNEY] ect is for the development of power, Mr. SPARKMAN. It is all right if I do looked into this matter, and on page 215 which is sold from the lines of the Bon­ not lose my place. of the hearings, where the Senator from neville project; but it is also to aid in Mr. HILL. Mr. Jackson was the at­ South Dakota was addrr.&sing Mr. Clapp, reclamation. The Government is in­ torney in the case of Tennessee Electric we find this: stalling huge water pumps, which are Co. against TVA, in the Ashwander case, Senator GURNEY. Then, on your steam operated by the excess electricity in a in the case of the Alabama Power Co. plants, there is a recoi:d of what portion of great project known as the Columbia against Ickes, and on the question test­ the percentage of the time they have oper­ Basin project. But Columbia Basin is ing the constitutionality of the Norris ated, and we can have those listed also. operated by subdivisions of Government Dam, which went to ·the Sixth Circuit Mr. CLAPP. We cau best do that, if I may say so, on the basis of their past history. k~10wn as irrigation districts. Court of Appeals. He has been the at­ Suppose we should ask for a stand-by torney for the power companies in all Senator GURNEY. That is right. steam plant to operate those pumps, at the cases, and he has lost them all. There follows a record of the existing a time when the water might not be Mr. FERGUSON. Mr. President, on steam plants and the percentage of time available, or the electricity might not be this point will the Senator from New they have been used in the past 3 available, not to sell the electricity, but Hampshire yield? years. Hales Bar was used 42 percent to pump the water which would be con­ Mr. BRIDGES. I yield. of the time; Nashville, 7 percent of the trolled by the irrigation district for the Mr. FERGUSON. I should like fur­ time; Parksville, 4 percent of the time; benefit of the people of the area. Would ther to identify Mr. Jackson. Mr. Jack­ Watts Bar 62 percent of the time; Wil­ the Senator consider that to be prohib­ son was a partner of Newton D. Baker, son, 30· percent of the time; and the ited under his interpretation of the Con­ Democratic Secretary of War under Pres­ smaller plants, 20 percent of the time. stitution? ident Woodrow Wilson, and he is con­ As the distinguished Senator from Mr. FERGUSON. If it comprehended sidered one of the outstanding legal and Minnesota can see, the existing steam • the use of the power by the Federal Gov­ constitutional authorities in the United plants in each and every case have been ernment under one of its constitutional States of America. _ I assume that for used only a small percentage of the time. powers, as reclamation is, because most the brief he has· filed in the Senate he Mr. KNOWLAND. Mr. President, of that land was Government land, and will receive a large fee. But I wish also will the Senator yield for a question? they used the power to pump water on to say that Mr. Clapp, appeared as an ex­ Mr. BRIDGES. I yield. it so that the land could be settled, that pert on Government time and testified. Mr. KNOWLAND. In the normal op­ would be constitutional, and I think So we had special pleaders from both eration of a steam plant which is used proper. sides before the Committee on Appro­ for stand-by services, would it not be Mr. MAGNUSON. In other words, priations. I assume that the Govern­ used for perhaps not more than 20 or the Senator thinks the situation is a ment witnesses were paid tax money, and 30 percent of the time? As I under­ little different from the one in Califor­ I am assuming that the other men were stand, in nontechnical language, the nia, does he? paid larger fees from private interests idea of ·the stand-by steam plant is to 1949 CONGRESSIONAL RECORD-SENATE 4367 :firm up. the power, so that there will peacetime has been responsible for the con­ matter and puts us on record as being against be no hills and valleys caused by water tinued existence of approximately 36,000 com.:. the project. shortages and other factors. So it panies employing more than 1,700,000 Respectfully yours, workers: LOCAL 175, U. W. U. OF A., would not be expected . that a steam With other segments of _New Jersey life EDMOND WARD, President. plant would be used to 100 percent of sharing the load this vast machinery of enter­ capacity, as I understand the situation. prise has made it possible for our State's The article which he encloses reads, in Mr. THYE. Mr. President, will the taxpayers to contribute to the Federal Gov­ part, as follows: Senator yield? ernment more than $1,270,000,000 in Federal era UNIT WANTS PROGRESSIVE CAPITALISM Mr. BRIDGES. I yield. taxes annually. This represents at least $3 UTILITY UNION AGAINST FEDERAL OPERATION ·paid in Federal taxes (or every $1 New Jer­ Mr. THYE. Does the Senator from (By Alan Pritchard, Daily News staff writer) New Hampshire have information as to sey affords for local and State tax purposes. Representing taxpayers, the objection is A CIO union that sees Government owner­ what amount of water must actually be made to the use of tax funds to provide one ship as a dangerous threat to basic Ameri­ let over the dams or through the gates particular section of the country with an can principles is the Utility Workers Union in order to draw down the impounded unfair economic advantage which is entirely of America. water so as to form a reservoir to meet -. aside from navigation and flood control. Their international secretary-treasurer, :flood conditions? The amount of. water ·Appropriations to the Tennessee Valley Au­ William J. Pachler, said here Saturday that deliberately let through the gates in thority for the purpose of increasing its the utility workers are strongly opposed to order to get rid of it could well be har­ power-generating capacity must be paid out Government competition in business-espe­ nessed and made to generate power }f of public revenue, contributed by the people cially in the light and pow!µ" business. there were an outlet or consumer for the of all 48 States, in return for which the I shall pick out a few other statements money will be used to provide, through sub­ electric power which might be generated. sidized power rates, a new inducement to made by the writer of the article: Mr. BRIDGES. I have not that infor­ industries to move· into the TVA area. This "When we say we're against Government mation at hand, but I refer to page 214 imposes a burden on New Jersey and other competition in the power business, we aren't of the hearings, referring to the hydro States in the free and orderly development beating tpe bushes for the power companies,''. plants. On that page there is a table of our respective areas. Pachler emphasized. "There are many showing the names of the hydro plants. things wrong with the way 'some private That is typical of the views of repre­ power companies treat their employees: The first column of figures shows the in­ sentatives of the States. Let us take a We're out to correct those things. stalled capacity December 1948; the sec­ statement from Kansas. The f ollowi::g "We are beating the bush for a t'ype of ond column of figures the expected aver­ is from the statement of Mr. C. C. Kilker, living in which private ownership is funda­ age generation capacity; and the third secretary-manager, Kansas State Cham- mentally ·<:orrect. We're not against pro­ column of figures the stream flow non­ . ber ·of Commerce: gressive social measures under our present usable with present capacity. That is capitalistic set-up, but we are against so­ probably what the Senator is getting at. Mr. KILKER. Mr. Chairman and gentlemen: cialism where the Government competes my name is C. C. Kilker, and I represent the with private enterprise." Mr. THYE. I presume that would be Kansas State Chamber of Commerce, of which the answer. I did not attend the hear­ "The building of power dams and reclama­ I am secretary-manager. The Kansas State tion of unusable land by Government au­ ings, and there!ore I have not the infor­ Chamber of Commerce, which has its head­ thority projects is also not opposed by the mation which is available to members of quarters in Topeka, Kans., is a voluntary union," Pachler said. It is only in the dis­ the, committee who had the benefit of organization composed of approximately 2,000 tribution of electrical power that an issue the testimony. business and professional men of Kansas. arises. Mr. BRIDGES. The table shows that .. - . Pachler believes that the Government the figures vary from 5 percent, which I It is the understanding of the Kansas should turn over power distribution to pri­ think is the lowest figure for stream ft.ow State Chamber of Commerce that this steam vate companies. "Government regulation of nonusable with present capacity, up to power p~ant would be another Federal enter­ the companies might be necessary," he said, 45 percent, with the average probably in prise which would be practically free of taxes "but not absolute Government control." but which would engage i:h direct competi­ The attitude of the union is not altogether the twenties. tion with privately owned and privately oper­ unselfish, Pachler admits. Mr. KEFAUVER. Twenty-five per­ ated business. These privately owned and "From a bargaining point we would be cent. operated companies pay out in taxes approxi­ much better off dealing with private industry Mr. BRIDGES., Twenty-five percent. mately 20 cents of every dollar they take in. than with a Government agency," he said- Mr. THYE. That is the reason why I On the other hand, a TVA steam power plant asked the question, recognizing the fact would. pay no Federal taxes 'and practically And so on. My reason for reading that; that on the average, at all the installed no State or local taxes. This situation is Mr. President, is to show that the oppo­ dams, that amount of water is actually made even more ironic by the fact that it sition to the steam plant has come from permitted to go by without serving any would be built entirely from funds supplied various groups of our country's popula­ by American taxpayers, including those pri­ tion and from various sections of the purpose. If the dams were operating at vately owned companies with which it would full capacity, naturally there would be compete. United States. periods in the year when there would not -Mr. MALONE. Mr. President, will the be an adequate flow of water to generate Through the hearings we find oppo­ Senator yield? sufficient electricity to carry the safe sition' from the utilities, but also from Mr. BRIDGES. Certainly. 1raximum load which the installation many other people, representing their Mr. MALONE. I understand that the could supply. That is the question which respective States; from industrial con­ distinguished Senator from New Hamp­ arises in my mind in connection with a cerns, f iom chambers of commerce, and shire is opposed to financing socialism steam plant. Is it wise to install it to from members of State governments. in the United States. I might ask firm up the entire unit of flood control, In order that the RECORD may be en­ whether it would be any worse to finance for which it was originally constructed?. tirely straight, let me quote a statement socialism in the United States, rather Mr. BRIDGES. Mr. President, I wish from another group. We hear a great than in England? · to consider two or three other angles in­ deal said about labor. We find the CIO Mr. BRIDGES. Of course, I am op­ asmuch as certain Senators have em­ joining in opposition to the New John­ posed to financing socialism anywhere; phasized by the opposition from the pri­ sonville steam plant. I read a letter but if it must be financed, I would rather vate utilities. 0ppc1sition came also from from the CIO Utility Workers Union of have it financed in England than here. many others. I should like to quote a ~merica, Local No. 175, Dayton, Ohio: Mr. MALONE. Mr. President, will the few words from Hon. Charles R. Erd­ DEAR MEMBER _OF CONGRESS: We have read Senator yield for another question? man, Commissioner, Department of Con­ with concern the contemplated action being· Mr. BRIDGES. Certainly. taken by the Congress of the United States, servation and Economic Development of concerning .an appropriation to start a ·steam Mr. MALONE. First let me say that the State of New Jersey, one of whose electric generating plant at New Johnson­ I have listenetl very careful!~ to the ·de­ representatives, Mr. HENDRICKSON, is now ville, and we, as a union, feel this is going bate so far, and I wish to ask a couple in the Chamber. Mr. Erdman said: a little too far toward socialism. of questions in regard to the use of New Jersey enterprise today is striving ene~­ We are very much against this type of steam power in firming up what I sup­ getically to maintain conditions which in action, and the enclosed copy of a news re­ pose is considered secondary power. I wartime gave the State fifth place in the lease given out by our international officer, have had.my assistants and the engineer Union as _a prod~cer of war materiel, and in William J. Pachler, gives our feelings in the . of the Committee on Public Works XCV--276 . 4368 CONGRESSIONAL RECORD-SENATE APRIL 12 searching for several hours for informa­ 10 percent of the time-then rarely is it judged to be approximately 30 percent of tion from which to determine what advisable to build steam plants to firm the total expenditure; flood control, 30 amount of· firm power is furnished by the power. On the other hand, if the percent; and power, 40 percent. each one of the dams mentioned, for in­ secondary power is available 60 or 70 or No data are available apparently, upon stance, on page 842, in part 1 of the hear­ 90 percent of the time, then there is a which we can base feasibility of the pro­ ings before the Committee on Public question of econC'mics as to what amount posed power plant. Works, , 1948. The of such power it is worth while to attempt That would show the use of the 40 per­ same list, or approximately the same list, to firm. Many factors are to be con­ cent or $438,000,000 for power purposes. appears in the hearings held by the Ap­ sidered and in each case certain factors . The other 30 percent, of course, for navi­ propriations Committee on the first de­ would be given different weights. gation and 30 percent for flood control ficiency appropriation bill for 1949, at These factors include fuel costs, avail­ were written off in accordance with the page 214. There is a difference of two ability· of power elsewhere for the pur­ long-established congressional policy. dams, as between the two lists; one list pose, the sale price and use.bility of such There were no interest payments on the sets forth ·23 dams, and the other 25. furn power in comparison to the existing 40 percent allocated to power. For exam­ Nevertheless, I see no place in any of secondary or intermittent power. ple, on the Hoover ropriation of Michigan is of opinion that the Appro­ ville steam plant. In other words, the the money. The provision of the pend ... priations Committee has a function to general language "for capital expendi­ ing bill is very cleverly worded. The able perform, and that even though an appro­ tures'.' is used. Senator from Vermont today wanted to priation is authorized for a given pur­ So I say the answer to the Senator's know why this item was not mentioned pose, it constitutes no legal or moral question is not that the item should be in the report. Let me· read the ap­ obligation upon the Appropriations Com­ taken out of the original act; it should propriation that covers this item. On mittee to appropriate one dollar. If , be defeated in the committee itself. page 12, line 7, "Tennessee Valley that is not the rule, we might as well Mr. WHERRY. Mr. President; will the AuthoritY"-- abolish the Appropriations Committee. Senator yield? Mr. McKELLAR. Mr. President, will Let me explain for a moment what was Mr. FERGUSON. I shall be glad ·to the Senator yield? brought out by th.e able Senator- from yield. Mr. FERGUSON. I am glad to yield. Tennessee. Do we realize the position Mr. WHERRY. Does not the Senator Mr. McKELLAR. The Senator has of the Appropriations Committee, when agree that the duty of the Appropria­ served on the Appropriations Committee the House appropriates a certain amount tions Committee is to determine the of the Senate. in response to a budget request? ·For amount of the appropriation, and not . Mr. FERGUSON. Yes. example, suppose the House authorizes to determine the constitutionality of tne ~ . Mr. McKELLAR. The House commit- the full amount of a budget request. I authorization? I think that should be tee in passing on this bill submitted a have never known the Senate Commit­ tested in the basic legislation. It should report on the Tennessee Valley Au­ tee on Appropriations to go into such an be taken to the Supreme Court for de­ thority, authorizing a certain amount for item at all. It is only when the bureau cision. I agree with the Senator that the construction of the steam plant, with wants more money than is allowed by whether it is $21 ,000,000 or $19,000,000, a full description of it. As the Senator the House that we go into it, and then $2,450,000 or $1,450,000, it is the province knows, it has been the custom of the we only go into the amount asked for. in of the Appropriations Committee to de­ Appropriations Committee of the Senate, addition to what was allowed by the termine it. But after Congress has au­ when the House makes a report to which House. In other words, the Appropri­ thorized it and made it a part of the the Senate agrees, and the House report ations Committee. of the Senate is merely basic law, then it is not proper to decide · has already been printed, not to have it an appellate court, in effect. That is not to grant one dime of the appropria­ printed again. The Senate committee what it amounts to. It considers only tion. After the basic legislation ts does not do that. items on which the House has cut the passed, its constitutionality can be tested Mr. F'ERGUSON. The Senator from budget request, or when an agency wants by the Supreme Court. Michigian is not criticizing the report. I even more than the budget allowance, I was everlastingly criticized a year merely want to read from the bill to show and it comes before the Senate commit­ ago for voting against ECA because I how the matter appears there. tee to justify the demand. At times I did ·not agree with the approach. ' This Mr. McKELLAR. The Senator was feel that is why the people call the Sen­ ate the upper House, because , we are year I have been criticized because I · saying the Senate committee had not voted against it. But, once it is the submitted a report on it. always "upping" appropriations. Why · do we do it? Because the agencies _go policy of Congress, once Congress has au­ Mr. FERGUSON. No. thorized it, then my job, as a member Mr. McKELLAR. The Senate com­ before the House committee, have a com­ plete hearing, and when the House cuts of the Appropriations Committee, is not mittee had not reported on it because to vote against any appropriation; my the House had reported, and the report appropriations, they come to the Senate and put full pressure on the Appropri­ job is to see to it that every project is was before the Senate committee, and justified, and to vote the necessary ap­ it is now before the Senate. It is here ations Committee to get something more than has been allowed by the House. propriation. now. Mr. WHERRY. Mr. President, will Mr. FERGUSON, I think the Sena­ Mr. FERGUSON. I shall answer the the Senator yield? tor's job also.is to screen the projects. Senator a little later, but I want to Mr. FERGUSON. I am glad to yield. Mr. WHERRY. Should I vote for all read-- Mr. WHERRY. I appreciate the ob­ appropriations for ECA after the com­ Mr. WHERRY. Mr. President, will servation just made, and I suppose that, mittee has authorized them? the Senator yield? seated alongside the Senator, I have done Mr. FERGUSON. I think the Senator Mr. FERGUSON. I yield. my level best to curtail appropriations to should consider the question whether it Mr. WHERRY. Does not the junior as great an extent as any other Senator. is constitutional. The Senator from Senator from Michigan feel, however, Mr. FERGUSON. The Senator has Michigan will put into the RECORD, at the that the proper place to take care of done that. end of his remarks, an argument on the such matters is in the basic legislative act Mr. WHERRY. But I ask the Senator basic law, showing that the authoriza­ itself, rather than to circumvent or de­ this question: Is it not true that in the tion is not in the basic law and that, stroy the purposes of the act through event an authorization is not made in therefore, the-Appropriations Committee the secondary method of withholding ap­ the first place, then the Appropriations must pass upon the question. propriations? I ask the question for Committee has no jurisdiction? · If there Mr. WHERRY. Mr. President, will this reason : I believe the place to stop is an authorization, is it not the real the Senator yield further? appropriations is in the authorization function of the Appropriations Commit­ Mr. FERGUSON. I yield. bills. That is the reason .I did not sup­ tee to justify the amount proposed to be Mr. WHERRY. I should like to ask port ECA. I said that I would, if it were appropriated, rather than for the com­ cut 15 percent. I believe the authoriza­ the Senator to answer this question: As tion is the place to stop appropriations, mittee or an individual member of the a member of the Appropriations Com-· otherwise appropriations may be sabo­ committee to attack the authorization? mittee, should I deny every penny of ap­ taged. I ask the junior Senator from Mr. FERGUSON. Let me answer that propriation for the ECA after Congress - Michigan whether the first place, namely, by reading from the bill itself. I defy has authorized the appropriation, or is it the authorization itself, is not the· place anyone to find in the bill itself what is not the duty of the junior Senator from to accomplish what he is desirious of ac­ embraced in this item. There is no ref­ Nebraska to see to it that the projects complishing? Of course, if the Senator erence to a steam plant. On page 12, are justified and to vote for whatever offers an amendment calling for a test line 8, we find: appropriations he feels are justified? of the constitutionality of the act, I may For an additional amount for "Tennessee Mr. FERGUSON. If the Senator say now that I shall support the amend­ Valley Authority," $2,950,000, to remain avail­ wants my opinion, I would say that, able until expended; and the Umitation un­ on the constitutional question, the Sena­ ment, because I feel we have a right to der this head in title I of the Government test the constitutionality of any act. But Corporations Appropriation Act, 1949, on the tor should decide whether, when appro­ I submit to the Senator, is not the place amount available for capital expenditures, priations are made, the project for which to remedy the difficulty in the author­ is increased from "$21,689.,.000" to '''$24,- they are made is constitutional. If the ization, rather than completely to with- 639,000." Senator believes it to be constitutional, 1949 CONGRESSIONAL RECORD-SENATE 4375 then he should decide upon the amount Mr. McKELLAR. I am reading from Michigan is not able to attach to the bill he believes should be appropriated. House bill 2632, page 24. It refers to an amendment to provide for a suit to Mr. WHERRY. Mr. President, will the Davis Dam, the Colorado-Big test the constitutionality of the appro­ the Senator yield for another question? Thompson project, and the Columbia priation, no one will ever be able to test Mr. FERGUSON. I shall be glad to Basin project. They are mentioned in the question of constitutionality. Does yield. identical language. It is not an un­ th3 Senator realize that under the case Mr. WHERRY. The basic act estab­ usual procedure. There is no intention of Frothingham against Mellon and the lishing TVA was passed in 1933. The to cover up or to prevent Senators from case of Massachusetts against Mellon, it question confronting the junior Senator knowing what it is all about. has been decided that when Congress from Nebraska at this time is that until Mr. FERGUSON. The Senator is en­ merely makes an appropriation of money the basic legislation is changed, inas­ tirely wrong regarding my statement. there is no way of testing the constitu­ much as a point of order was not made I read the language, and the language tionality of the appropriation? If the in the House, and that a year ago, when as it comes from the House is identical amendment of the senior Senator from the President pro tempore made his find­ with the language in the bill now. There New Hampshire is defeated, I shall later ings, and no appeal was taken, the Sen­ is no covering up in the Senate. The ask that there be attached to the bill a ate has to proceed on the theory that House put it into the bill in that provision giving the right to bring a suit the authorization is in the basic act. If language. in court, to test the constitutionality of it is, then I say it is applicable to ECA. Mr. McKELLAR. And we are follow­ this appropriation. We are finding our­ I agree with the Senator from Michigan ing it. It is the usual course of the Com­ selves now in such a position that, though that the question of constitutionality mittee on Appropriations of the Senate. acts be unconstitutional, if they are ap­ can be tested, and I think an opportu­ We are not doing anything which is propriations, no one can ever raise the nity to do so should be afforded. But it unusual in this matter at all. question of constitutionality against the seems to me that the province of the Mr. FERGUSON. Of course not. The appropriation. That is why we must Appropriations Committee is to deter­ language is just as it came from the exercise our constitutional right to see mine what can be justified, and not sabo­ Ho.use. There is no complaint about that we pass only constitutional laws tage appropriations to the extent that that. · and appropriate money only for consti­ they are denied after the Congress has Mr. MILLER. Having come into the t•1.tional purposes. proceeded to authorize the project to Senate a little late, I ask if it is the Mr. DONNELL. Mr. President, will continue for another year. It is the Senator's view that the bill should be the Senator yield for a question? same way with regard to the steam plant defeated on the ground that it is uncon­ Mr. FERGUSON. I yield. which is involved in this bill. A point · stitutional. Mr. DONNELL. Were the decisions of of order was not made in the House, and Mr. FERGUSON. Yes; as to the par­ the Supreme Court in the cases to which the basic authorization is provided for, ticular appropriation we are discussing. the Senator alluded based on the idea and it is on that basis that we must face Mr. MILLER. Is the Senator aware that no person may show sufficient finan­ the issue. of the provisions contained in the Con­ cial interest in the appropriation to con­ Mr. FERGUSON. The reason why it stitutton to the effect that the Govern­ stitute such an interest as the courts was raised in the Senate last year was ment is divided into three cardinal would recognize? tl)at it involved new legislation in an branches, the legislative, executive, and Mr. FERGUSON. That is correct. appropriation bill. That point of order judicial? Mr. DONNELL. Is there any prece­ can be raised. But if the item is in the Mr. FERGUSON. I am familiar with dent of which the Senator knows for the bill when -it comes from the House, then · that. enactment of such a statute as his no point of order can be raised. This Mr. MILLER. Is not the Senator amendment would make law, authorizing matter was in the bill as it came to us asking that we pass upon this question, any taxpayer to institute a suit to test from the House. being a legislative body, in a judicial ca­ the constitutionality of an appropriation During the debate on the motion to pacity? bill? amend the rules in the present session Mr. FERGUSON . . No; this is the same Mr. FERGUSON. I would say that of Congress, we debated a ruling of the question that has arisen before. As I there is no case absolutely on all fours, Chair. A few Senators on this side of remember, the President of the United as we describe it, but I should like to the aisle voted not to sustain the ruling States once sent word to a Member of refer the Senator from Missouri to the of the Chair. I know of no Senator who Congress that Congr_ess should. pass leg­ case of Associated Industries v. Ickes is forever bound because there is no ap­ islation even though the Members be­ (134 F. (2d ed.) 694). peal taken from the decision of the lieved it to be unconstitutional, and al­ Mr. DONNELL. I thank the Senator. Chair, so that. he can never raise the low the courts to determine the question Mr. FERGUSON. I think that is an point that the decision of the Chair was of constitutionality. That is not my idea authority for what the junior Senator incorrect. I disagree, and I now disagree, of what a legislator should do. He is from Michigan will attempt to do in his with the ruling of the Chair on the ques­ supposed not to vote for any measure proposal for a constitutional test. tion of the right of the Senate under the which he believes to be unconstitutional. Mr. President, as I said before I think rule, to take up a bill. It was debated We cannot shift the burden of our re­ the present appropriation for the New for many days. I disagree with my able sponsibility to the courts~ Johnsonville plant is without constitu­ colleague from Nebraska who states that Mr. MILLER. In asking that the ap­ tional authority. I think it is without this item was authorized in the act itself. propriation be defeated on the ground statutory authority. The junior Senator I have a right to raise the question on that it is unconstitutional, is not the from Michigan sees in it a dangerous the floor now as well as at any other Senator asking this legislative body to intrusion upon the fields which through time. I am not raising it at this time. resolve itself into a court, and pass on its history thJ.s Nation has reserved for I intend to raise it later by motion. the question from that viewpoint? individual enterprise. Mr. McKELLAR. .Mr. President, will Mr. FERGUSON. I am asking Sena­ I am not unaware that the character the Senator yield? tors to perform their functions as legis­ of our Gover'nment has changed and will Mr. FERGUSON. I shall be glad to . lators, which is not to pass any measure · continue to change in response to altered yield. which Senators have reason to believe national and international circum­ Mr. McK;ELLAR. Mr. President, the unconstitutional. stances. Senator took exception a few moments Mr. MILLER. Suppose they do not I hope that I will not be thought of ago to the method by which the $2,950,- believe that; if the Senator is asking as one of those who believe all change 000 was placed in the bill, only $2,500:- them to pass on the question as a legal is necessarily evil. I believe that change 000 being used for the darri. The Sen­ proposition-which the Senator is· ask­ is inevitable, and that change is good ator has been a member of the ing, as I understand his remarks-would where it represents. progress within es­ Appropriations Committee for a long that not be making of this body a judi­ tablished and proven channels. time. Is the Senator familiar with the cial rather than a legislative body? But I am deeply concerned by what I fact that there is an item for the Davis Mr. FERGUSON. No; it is merely see in many directions-the gradual di­ Dam profoct of $4,500,000-- making it a careful legislative body. I lution of our economic system under the Mr. FERGUSON. Will the Senator may say to the Senator that, as the law . pressure of expediency and in the guise tell me from what he is reading? is today, if the junior Senator from of dubious . constitutional authority. 4376 CONGRESSIONAL RECORD-SENATE APRIL 12 I do not presently foresee any prospect Mr. President, I hope that when we take The Bureau of the Budget asked for funds of death by violence for our free eco­ legislative steps we know clearly where to begin building the Watts Bar steam plant to provide for national defense purposes so nomic, social, and political institutions. such steps are leading us. We should as to meet the rapidly increasing demands Such events are rare in the history of determine whether we desire actually to for power from plants engaged in the manu­ men. But I do see the threat of a creep­ destroy the free enterprise system in facture of materials and supplies needed for ing paralysis which sets in upon those America, by taking steps toward social­ national defense purposes. institutions to strangle them and eventu­ ization such as the provision for build­ ally to bring certain death. That suf­ ing the particular steam plant in ques­ [S. Doc. No. 241, 76th Cong., 3d sess.] focation comes readily at the hands of tion. SUPPLEMENTAL ESTIMATE OF APPROPRIATION­ an expanding state. I fear that process Mr. President, if we want to take such TENNESSEE VALLEY AUTHORITY of slow but sure death, and I intend to a step we should take it consciously. We To begin construction of steam electric­ fight it wherever it is cloaked in an au­ should take it because as Americans we genera ting facilities with a rated capacity of thority which does not exist. believe that the socialization of Ameri­ approximately 120,000 kilowatts in the area The TV A steam plant in my mind rep­ can industry is better for America than served by the Authority. resents such a threat. If we do not the free enterprise system. We should This amount is required to enable the Ten­ stand up and draw a line on the exten­ never take such steps in ignorance. It is nessee Valley Authority to provide, for na­ sion of governmental activity such as for that reason I stand upon the floor of tional defense purposes, additional electric­ generating capacity in the area served by the this steam plant represents, we will some this great body today and urge the Senate Authority so as to meet the rapidly increasing day awaken and find that the entire of the United States to look, to watch, and demands for power from plants engaged in body of our free-enterprise system has to beware of the results that may arise the manufacture of materials and supplies disappeared. if we take the step it is now proposed we needed for national defense purposes. It will not have been gobbled up over­ should take. I do so ii1 order that we night in one swoop. It will have been .may not go so far down the way of social­ House hearings on House .:'0int Resolution devoured by the locusts-one bite at a ism that we will b~ unable to return. No. 583, Seventy-sixth congress, third session, time. The proposed step is a very serious one. indicates that the Watts l'ar steam plant The Senator from Michigan earlier I hope the Senate will deliberate upon it was requested completely on the basis of the quoted Harold J. Laski to the able Sena­ and know where that step will take us. . national defense emergency. Mr. President, Senators can say that Page 3: "There is complete agreement tor from New Hampshire, and asked him among those responsible for national defense if he had heard of the quotation. I re­ those who are against taking such a step industrial development that the Tennessee peat what I said. as is now proposed are representing the Valley area is one of the important centers None other than Dr. Harold J. Laski, power interests. One would think from · for the production of such essential national­ the Brttish Labor Party leader and pro­ such statements that it is an evil thing defense materials as aluminum and other fessor of political science at the Univer­ to come before a committee of the United metals, explosives, phosphorous, and other sity of London, has told us what the Ten­ States Senate and represent the free en­ chemicals, and more recently aircraft. Ex­ nessee Valley Authority already means terprise system of America, and be paid pansion in these directions ·is under way. A for doing so. One would think it is all­ deficiency of power sui:ply is the bottleneck. to America. This great experiment of All existing power installations, both those the TVA, he recently told an audience holy for a Government official to come of the Tennessee Valley Authority and pri­ at Howard University, is only one proof before the United States Senate and ad­ vate companies in adjoining territory, are that public ownership and the regulation vocate socialization. Some seem to feel now being taxed to the limit to meet normal of private enterprise has advanced fur­ that one who represents private indus­ demands, and presently scheduled installa­ ther in this country than most Ameri­ try is doing a reprehensible thing, and tions will only care for normal growth in cans are normally inclined to imagine. that the matter of fee determines demands without regard to the superimpo­ whether or not" the individual is honest sition of the new demands of national de­ He added: in the statement he makes. fense. This emergency program is therefore A new epoch in American history began in necessary for national-defense purposes." 1933. The old era of unfettered competition As a judge, I have been accustomed to Page 8: "The increase, in our opinion, is will not return unless the institutions of special pleaders. As a Member of this justified on the aluminum alone, but almost political democracy are overthrown by some body, I think we need special" pleaders every day now there i::; some new national­ cata.strophic development. before the committees of the United defense demand for power directed in the States Senate and the House of Repre­ region of the Tennessee Valley." Mr. President, that was the opinion of sentatives. But after we hear special Page 11 : "Mr. DUNN. And here am I talk­ a man who has gone through socialism pleaders we then should deliberate and ing in favor of Government water power. in England. He has been very near to determine what are the facts. We should The reason for this is, first, that it is a socialism on the Continent. He knows matter of national defense. determine whether the legislation we are Page 13: whereof he speaks. We stand in the Sen­ about to pass is constitutional. If there ate and say we are doing things in behalf is doubt in our minds respecting its con­ "RELATION OF INCREASED POWER PRODUCTION of free enterprise; we give lip service to TO ADDITIONAL DEFENSE-FUND RECOMMENDA• •Stitutionality, we should not pass a !l'IONS free enterprise; but as we take one legis­ measure. lative step after another our action is "Mr. WOODRUM. Mr. Dunn, 1s there any Mr. President, as I have stated before, relation between this necessity for increased used by the agencies in the executive the question before us is a serious one. power and the additional defense recom­ branch of the Government to claim that It represents but one step, but the matter ·mendations that are presently coming before we are taking them deliberately for the which concerns the Junior Senator from the Congress? We are advised through the socialization of American industry. Aft­ Michigan is where that step can lead us. public press that we will probably get a very er we take such steps it is very difficult to That is something which should concern large additional request for defense items. retrace them. "Mr. DUNN. I think, Mr. Chairman, that every Senator. Mr. Stettinius can answer that. Mr. President, in America we are ac­ Mr. President, I ask 'ijnanimous con­ "Mr. STETTINIUS. Yes; it b.ll is a part of a customed to using precedent. Today on sent to have printed in the RECORD at this coordinated whole, in that the plane pro­ the :floor of the Senate we heard the point extracts from pa.st House and Sen­ duction, and specifically aluminum, and the argument made that by reason of the ate proceedings with regard to the Watts powder product\ion that are contemplated to fact that the United States built the Bar steam plant. be financed through this approximately Watts Bar plant we have forever waived There being no objection, the matter $5,000,000,000 request that you will shortly our right to stop the United States Gov­ receive, are all part of the program, and are was ordered to be printed in the RECORD, in proper relation to it. The chemical ernment from going into private indus­ as follows: plants, the ammonium and other plants, and try. We have heard it said on the :floor It has been contended that the Govern­ the aluminum plants must be served by this today that because the United States ment has built the Watts Bar steam plant-­ power increase." Government purchased some hydroelec­ but this plant was for defense purposes. It Page 15: They present this and the Presi­ tric plants in the Tennessee Valley and ls not contended that the Government can­ dent asks us, "Is this a thing that is needed there were connected with them certain not build a steam plant for defense purposes. for the national defense?" We go into it The question here ls, has the Government sufficiently to find that it is, and we say so steam plants, we have given to the United the right to build a steam plant to generate most emphatically. States Government full and complete electricity for commercial sale. The record Page 18: authority to bUild steam plants any- clearly shows the Watts Bar steam plant was "Mr. LUDLOW. As a member of the commit­ where in the United States. · . tor defense purposes, ~ee, I am heartily in favor of this proposition, 1949 CONGRESSIONAL RECORD-SENATE 4377.

but if it were not in a time of emergency CONGRESSIONAL RECORD, House, July 30, "Senator McKELLAR. I want to speak for you would not be in favor of the· Govern­ 1940, page 9698: myself on that. At that time, we were un­ ment engaging in the power business? "Mr. Speaker, when members of the dertaking to get a program completed from "Mr. STETI'INIUS. No, sir. Appropriations Committee came before the Knoxville to the Ohio River so as to make "Mr. DUNN. Neither would I. Committee on Rules on their application that river navigable all the way. At that "Mr. STETI'INius. Mr. Dunn is an expert in for this rule, I raised the query as to whether time, in order to get that dam through-we the field of power. I am not an expert in the bill was business or politics, and I was didn't expect at that time any war-very the field of power, but I subscribe to every­ assured by gentlemen appearing in behalf naturally, I made the statement that this thing that Mr. Dunn has said in his testi­ of securing ·a rule that it was business and completed our program, and said that I would mony." not politics. The reason I made the inquiry never make another suggestion, because we Page 18: · was that I know, as every one of you knows, have a lot of power down there that some­ "SCHEDULE FOR PURCHASE OF EQUIPMENT that different agencies of the Government time has to be developed. There was noth­ "Mr. DUNN. Before I conclude, I would like may be expected to take advantage of this ing like this in contemplation. We did not to mention that in this letter of July 1, from demand for national defense to secure legis­ have this emergency before us. which I have taken the high spots, there is lation that will give them a stronger position "But then this emergency came up, and one point bearing on the time required to in the Government and a larger share of the you gentlemen made the recommendation; get this work started, on which I have not appropriations that are to be made in be­ and I think that this committee ought to dwelt. With these huge expenditures that half of nationa). defense. This very bill hear what you have to say and report this bill Congress has been providing for, the indus­ that is made in order by the rule happens favorably in the interest of our national de­ tries of the country will be filled with orders. to be an instance of that kind. fense. Therefore, it is of the greatest importance, "Mr. Cox. I hope that we may relegate ''And I hope you gentlemen will make such particularly with respect to steam machinery, to the rear our general objections to pro­ a strong case to tliis committee for defense that the orders for the increased TV A equip­ posals of this kind and may unite in sup­ that this committee will have to report it out. ment be placed promptly while there is a port of this measure, because in uniting we "URGENT NEED FOR ADDITIONAL POWER place for them in the factories. In order are expressing a concerted desire and de­ "Mr. DUNN. I would like to go back, if I to place those orders promptly, negotiated termination of giving support to the ad­ may, to the thing that is most on my heart. contracts are much more desirable than com­ ministration in the effort to strengthen the "We are in a dangerous situation in re­ petitive bidding, because of the long time national defense. There is no politics in gard to the national defense. We need this necessary in providing for competitive this proposal and none should be put in it." power. The TVA is the best place in the bidding." CONGRESSIONAL RECORD, House, July 30, country to get it now. 1940, page 9700: Page 31: "NEED TO CATCH FLOODWATERS IN SPRING OF "Colonel PARKER. Furthermore, I do not "Mr. WooDRUM of Virginia. Mr. Chairman, think it is going to be possible in this emer­ I yield myself 10 minutes. 1942 ' gency to get the delivery of very much "Mr. Chairman, the matter presented in "If we don't get this appropriation prompt­ steam-generating equipment. I think that this joint resolution is critically necessary ly approved, if there should be a week's delay, it is going to be a serious difficulty. Do not for the national-defense program." we may lose a whole year in getting 180,000 you agree with that, Mr. Dunn? CONGRESSIONAL RECORD, House, July 30, kilowatts of the power. "Mr. DUNN. I arn sure it will; unless the 1940, page 9705: orders are placed promptly, they will lose "These projects were the logical, the im­ "Mr. DUNN. No; we may have already de­ their place in rank in the factories. perative outgrowth of the Nation's dire need layed too long. "Colonel PARKER. Last month we had a. for war materials in the present emergency." "I do say that if we in the Defense Commis­ quotation from the Westinghouse Co. on a sion who are charged with this responsibility steam-turbo generator, and they gave de­ don't do our duty now and start this thing livery as 14 months. It has now gone up [Hearings before the Subcommittee of the as promptly as we could, and if you in Con­ to 16 months, with the lapse of 2 or 3 weeks, Committee on Appropriations, U. S. Sen­ gress don't do your duty now and start this and next month I hesitate to think what ate, 76th Cong., 3d sess., on S. J. Res. thing as soon as you can, and the odds should it will be. We are right at the point where, 285, a joint resolution making an addi­ then go against us in the spring of 1942 if we delay any longer, it is going to be al­ tional appropriation for the Tennessee before the dam is closed, and if as a result of most impossible to get the steam equip­ Valley Authority for the fiscal year 1941 to this the aluminum for those airplanes is not ment that we can do this thing wit!1." provide facilities to expedi-te the national ready the public will hold us responsible, as defense] it will also hold you. Here in the Senate hearings you will note "A week now may mean a loss of a whole The House report states that this appro­ page 2 that funds for the Watts Bar steam year in getting that power available. We priation should be viewed and judged solely plant had been denied at one time because may already be too late. But if we are, and by its present bearing upon the national Senate committee did not believe that it you approve this matter, we have both done defense program. could be justified at that time-probably our best. [H. Rept. 2749, 76th Cong., 3d Sess.] '39 or '40--on the basis of the national de­ • ADDITIONAL APPROPRIATION, FISCAL YEAR 1941, fense. Also note page 3, Senator McKELLAR's "Mr. DUNN. My answer to that is that un~ TENNESSEE VALLEY AUTHORITY TO PROVIDE statement, that he contemplated no further less we order the steam right away we may POWER FACILITIES TO EXPEDITE THE NATIONAL additions to the TVA system with the excep­ be too late for the steam also. The steam DEFENSE tion of the building of the Watts Bar steam manufacturers of turbines, generators, and Mr. TAYLOR, from the Committee on Ap­ plant because of the national defense boilers are already nearly full of orders, and propriations, submitted the following report emergency. Herein the witnesses bring out unless we place the orders for the steam to accompany House Joint Resolution 583: at several different places the fact that this equipment promptly we are not. going to be recommendation for building Watts Bar able to get deliveries in time. It is even pos­ "The joint resolution carries an appropria­ steam plant is made completely on the basis tion of $25,000,000 in accordance with the sible that the steam plant would take longer of the national defense. to build than the dam. Executive recommendation in Senate Docu­ They are waiting commencement now of ment No. 241 of the present session to en­ "Senator MCKELLAR. We just voted for two another 60,000,000 pounds per annum ca­ gentlemen as members of the Cabinet. It able the Tennessee Valley Authority to pro­ pacity in Tennessee, which is clearly depend­ vide additional electrical generating capacity was done in the interest of national de­ ent upon this power expansion that you fense. You are making this recommenda­ to meet the present and projected require­ gentlemen are considering this afternoon. ments for power from pl~mts engaged and to tion in the interest of nationar defense? be engaged in the manufacture of materials "REASONS FOR COMMITI'EE'S PREVIOUS ADVERSE "1'.1r. DUNN. Absolutely. and supplies for national defense purposes." ACTION "Senator ADAMS. And you are not making Page 2:· "There should not be any confu­ "Senator ADAMS. Mr. Stettinius, I think I the recommendation on any other basis? sion in the public mind with respect to this can tell you briefly the reasons which led the "Mr. DUNN. None whatever. proposal for the Tennessee Valley Authority. committee before not to follow the recom­ "Senator MCKELLAR. To sum up, you think Irrespective of the present or past views of mendation which you made. We had your that it is absolutely necessary in the national anyone with respect to the governmental letter before us. defense to pass a resolution like that so that policy involved in the Tennessee Valley Au­ this work can be done as soon as possible? "The first reason has no relationship to the "Mr. DUNN. Senator, I could not sleep thority Act or the operations thereunder, national defense, but we have a very distin­ this appropriation should be viewed and ad­ nights unless I had discharged my responsi­ guished member of this committee who had bility and had told this committee that it is judged solely by its present bearing upon the been the most ardent advocate of the TVA national-defense program." . my thorough conviction that they should sometime back, when the last appropriation approve this measure. If this is delayed was asked for, who said that he would refuse even by a week, or even if it is not delayed The House debate on the measure states any request for another dam on the Tennes­ at all, I should hate 2 years from now to see no other justification than the national de­ see River. This distinguished gentleman was that spring flood fail to fill the reservoir. fense emergency as a basis for building the somewhat embarrassed, so I am speaking on The public would say, 'Those fellows were Watts Bar steam plant. his behalf. slow about this thing. ::t was presented on 4378 CONGRESSIONAL .RECORD-SENATE APRIL 12 June 14, and they didn't act on it until July in vacuo but only in relation to the context surplus :water power incidentally created by 10.' in which, and the subject matter with re­ navigation improvements. . By section 5 (1) "Now we may not miss it, and I don't spect to 'Which, they are used; the declared the TVA ls authorized "to produce, dis­ think we will if we start right away. But purposes of the enacting legislature; and the tribute, and sell electric power" only as the time that the floods come is an act of powers which the enacting legislature pos­ "herein particularly specified." By section God and cannot be determined exactly in sesses or purports to exercise (Brown v. Du­ 9a the TV A is limited to providing and oper­ advance. Therefore we should do everything chesne, 19 How. 183, l!M; Pollard v. Bailey, ating "facilities for the generation of electric in our power to discharge our responsibility; 20 Wall. 520, 525; Costanzo v. Tillinghast, 287 energy at any such [navigation and flood not to miss it." U. S. 341, 345; Helvering v. Trust Co., 292 control) dam • • • in order to avoid the U. S. 455, 464; Atlantic Cleaners & Dyers v. waste of water power" and to transmit and In the Senate debate Senator McKELLAR United States, 286 U. S. 427, 433-4). In par­ market power so generated, to wit, surplus states categorically that the Watts Bar steam ticular Federal agencies possess only such power generated to prevent waste of water plant was needed for national defense. powers as are clearly delegated to them either power. By section 23, the utmost production - CONGRESSIONAL RECORD, Senate, July 30, expressly or by necessary implication; and of electrical energy under the act is limited 19':i0, page 9687: · a grant of authority to them, particularly of to such production as would be "consistent "Mr. TYDINGS. In other words, unless the a sweeping character, "is not to be presumed with flood control and navigation." action proposed in the joint resolution shall or implied from any doubtful and uncertain All of the sections of the act dealing with be taken, there will be no other place where language" (I. C. C. v. Ry. Co., 167 U. S. 479, the sale and distribution of electrical energy they can get adequate power to operate this 505; United States v. Chicago, etc., R. Co;, are limited to the disposal of "surplus power" plant as it is desired that it be operated? 282 U.S. 311, 324). Another pertinent canon and preference is provided for public cus­ "Mr. MCKELLAR. For the best interest of of construction is that a statute should be tomers because the energy to be disposed national defense. construed "so as to avoid not only the con­ of by TVA is only "surplus power" and there­ "Mr. TYDINGS. Is that correct? fore limited in quantity. Sections 10, 11, clusion that it is unconstitutional but also 12, 12a, 14, 24. Manifestly, either Congress "Mr. McKELLAR. That is a correct state­ grave doubts upon that score" (I. C. C. v. ment. purported to authorize TVA to construct Oregon-Washington R. & N. Co., 288 U. S. steam plants without limit anywhere in the "Mr. TYDINGS. There is no other way by 14, 40). which they can get the power except by Tennessee waters)led or it did not authorize building these two dams i:g. order to furnish The declared purposes of the TV A Act are TVA to construct steam plants at all. But, it? found in section 1 (16 U. S. C. 831). Apart if Congress had intended to authorize con­ "Mr. MCKELLAR. One dam and one steam from the maintenance and operation of the struction of steam plants anywhere in the plant, That is what the engineers testified." national defense facilities at Muscle Shoals Tennesse~ watershed, no question of surplus not here involved, the sole declared purpose power or need for priorities would have exist­ Mr. FERGUSON. Mr. President, I is to provide navigation and flood-control im· ed; for obviously there is no limit upon the also ask to have printed in the RECORD provements; and the sole constitutional quantity of power which could be generated the argument . that the TV A Act as power invoked is the commerce power. But by steam in the Tennessee watershed. amended does not purport to authorize navigation and flood-control improvements Other clauses of the act demonstrate by TVA to construct steam-generating cannot incidentally or otherwise produce any necessary implication that the Congress con­ plants. ·The matter referred to appears type of energy or powel" except water power; templated and intended that TVA could con­ and the exercise of the commerce power can­ struct only hydroelectric plants. Thus sec­ in the Senate Committee on Appropria­ not involve or result in the creation of tion 4 (k) (c), and authorizing the TVA tions hearings on the first deficiency ap­ energy or power of any kind except insofar Board to transfer real estate of the Authority propriation bill for 1949, beginning on as water power may be Incidentally created to any other governmental department or page 237 and ending on page 249: by navigation improvements. The entire act agency, specifically provides that no land There being no objection, the matter must be construed in the light of this de­ should be transferred upon which "there is was ordered to be printed in the RECORD, clared purpose and of the nature of the con­ located any permanent dam, hydroelectric as follows: stitutional power invoked; and both nega­ power plant, or munitions plant heretofore tive any intent to authorize construction or hereafter built by or for the United States L. THE TVA ACT, AS AMENDED, DOES NOT PURPORT of powerhouses other than for the conver­ or for the Authority," with the exception of TO AUTHORIZE THE TVA TO CONSTRUCT STEAM­ sion of water power into electric energy .1 Nitrate Plant No. 1 and Waco quarry. Had GENERATING PLANTS All the provisions of the act dealing with Congr.ess contemplated or intended that TVA Whether the TV A Act purports to author­ the generation and sale of electricity are might construct steam plants as part of the ize TVA to construct steam plants is not im­ plainly incidental and subordinate to this TV A power system, it is incredible that a like portant upon the question of constitutional purpose and related to the generation and restriction would not have been placed upon authority; for if the Congress does not have disposal of electricity produced solely from the transfer of such plants. constitutional authority to grant such power Under section 12 (a) TVA ls authorized to TVA, an ostensible grant of that power in to· extend credit to preferred customers "in the present TVA Act could not supply a con· 1 TVA advances the curious argument that order to facilitate the distribution of sur­ stitutional basis for the requested appropria­ the foregoing construction of section 1 is plus power" only when such customers tion. However, this question of statutory fallacious because opponents concede that should be "situated within transmission dis­ construction has importance in another as­ TVA may generate and sell hydro~lectric tance from any dam where such power is pect. This is an appropriations committee~ power; and "section 1 does not refer specifi­ generated.'' This language is consistent only If the TVA Act does not authorize the Ten­ cally to the generation of hydroelectric pow­ with the obvious congressional purpose to essee Valley Authority to construct steam er any more than to steam power." Senate provide only for the generation and sale of plants in the Tennessee watershed, it would subcommittee hearings, 296. The argument hydroelectric energy incidentally produced seem that an appropriations committee is more disingenuous than ingenious. The by navigation structures. would not have authority to de~l with an purpose of constructing the dams and reser­ Although Congress was turning over to the appropriation of money for that purpose voirs authorized by the act was not to create TVA the steam plants which had been con­ whatever may be the constitutional author­ hydroelectric power. Nevertheless, the ines­ structed at Muscle Shoals under the National ity of the Congress under its legislative capable consequence of concentrating the Defense Act of 1916 (sec. 7), Congress deemed powers. fall of the streams and impounding their it necessary expressly to grant TVA author­ Some of the proponents of the TVA New waters behind dams constructed for naviga­ ity to complete the steam plant at nitrate Johnsonville steam plant seemingly recog­ tion improvement in the exercise of the com­ plant No. 2 (sec. 16). Manifestly, if Con­ nize the absence of authority under the merce power would be to create raw water gress had Intended, or understood, that it TVA Act to provide for its construction sim­ power; and since this raw water power would was granting to TVA authority to construct ply by an appropriation, inasmuch as two become the property of the United States, it steam plants anywhere in the Tennessee bills were introduced in the first session of was constitutional and appropriate for the Valley, it is inconceivable that Congress the Eighty-first Congress; namely, Senate Congress to provide in the act for its conver­ would have deemed it necessary or appro­ Joint Resolution 1 by Mr. MCKELLAR on Jan­ sion into electrical energy and the sale of priate to include this express and special uary 5 ands. 177 by Mr. KEFAUVER on Janu­ that energy in the disposition of the Federal grant in the act. ary 5--to grant direct authority for the pro­ property which would be thus incidentally Section 19 gives TVA access to the United posed construction. Be that as it may, the but inescapably acquired. On the other States Patent Office files to enable it to em­ TVA Act, when fair.ly construed, does not sup­ hand, the construction of these navigation ploy the most efficacious and economical port the TVA claim of ostensible statutory improvements in the exercise of the com­ process for the production of fixed nitrogen, authority to construct steam plants in the merce power could not, incidentally or other­ or fertilizer, "or any method of improving Tennessee watershed. wise, result in the acquisition of any steam and cheapening the production of hydro­ The TVA claim of ostensible statutory au­ power by the United States. Indeed, if the electric power.'' Significantly there is no thority for construction of steam plants, so Congress had declared that an independent reference to methods for improving and far as material, must be examined in the purpose of the TVA Act was to create even cheapening the production of steam power. light of certain well-settled rules of statu­ hydroelectric power, the TVA Act would have All bf these foregoing provisions are wholly tory construction. Words, phrases, clauses, been plainly unconstitutional upon that inconsistent with any other construction of or sections of a statute may not be construed ground alone. (See secs. II-A, B, infra.) the act than that the authority of TV A is 1949 CONGRESSIONAL RECORD-SENATE 4379 limited to constructing and operating hydro­ see River and its tributaries and control While section 15 originally authorized TVA electric plants to convert into electric energy destructive floodwaters in the Tennessee and to issue bonds in an amount not exceeding water power incidentally created by naviga­ Mississippi River drainage basins; and shall $50,000,000 for the construction of any future tion structures in accordance with the de­ have power to acquire or construct power­ dam, steam plant, or other facilities it is quite clared purpose of the Congress in section 1 houses, power structures, transmission lines, clear that Congress intended this power to be of the act. navigation projects, and incidental worlcs in exercised only for the construction of certain Thus in TEP Co. v. TVA (21 F. S. 947, 959), t}'>.e Tennessee River and its tributaries, and , dams and completion and preservation of the the Court, after reviewing the foregoing sec­ to unite the various power installations into Muscle Shoals defense plants, including their tions of the act, including section 4 (j) upon one or more systems by transmission lines. steam-generating facilities (H. Rept. No. 48, which TVA presently relies, said: The directors of the Authority are hereby 73d Cong., 1st sess. pp. 8-9). See also TVA "Under the statute, therefore, the genera­ directed to report to Congress their recom­ Act, sections 7, 16. In any event, any effort tion of electric energy is specifically required mendations not later than April l, 1936, for to imply authority for construction of steam to be incidental to the exercise of constitu­ the unified development of the Tennessee plants from this section is foreclosed by the tional powers under the interstate-commerce River system.'" amendment of July 26, 1939, under which the clause, • • *." Plainly section 4 (j) merely authorizes Congress forbade TVA to issue any bonds un­ It is significant to note the construction TVA to construct projects necessary to im­ der this section after that date. Section 15 of TVA's statutory authority to generate prove navigation and to control floods and to (b). and dispose of electricity, which was stated construct other incidental structures in­ Nor does section 31, to which a belated on· behalf of TVA in the hearings before the cluding powerhouses. Powerhouses were reference is first made in the TVA supple­ Joint Committee on the Investigation of the necessary to convert into electrical energy mental statement, lend any support to the Tennessee Valley Authority (75th Cong., 3d the raw water power incidentally created by TVA position. That section provides that sess., December 1938). In that hearing Mr. · the navigation improvements; and plainly the act shall be liberally construed "to carry J. A. Krug testified (hearings, ·5199): the words are used in that sense in section out the purposes of Congress to provide for 4 (j). the disposition of and make needful rules "Turning to the first of these, I should TVA in its e:upplemental statement.seeks and regulations respecting Government like to remind the committee that the gen­ to avoid this result by arguing that section properties entrusted to the Authority, pro­ eral limitations under which the TVA power 4 (j) as originally enacted did not include vide for the national defense, improve navi­ program was inaugurated were outlined by the present first clause (said to be wholly gation, control destructive floods, and pro­ Congress. The Authority has a definite con­ the result of the 1935 amendments) but mote interstate commerce and the general gressional mandate to follow in developing only the present second clause and that welfare" (Senate subcommittee hearings, p. the power program. The act itself outlined consequently, the second clause cannot be 296). Section 31 did not become part of the the policies to be followed in utilizing the act until the 1935 amendments. . electric power creat€d by the Authority's construed as incidental to the first clause. flood-control and navigation structures. This argument is plainly unsound for several As used in section 31 "national defense" reasons: plainly relates to the national defense facili­ "The Board was authorized to install hy­ First. We are .here dealing with the statu­ ties at Muscle Shoals not here involved. And drogenerating equipment at the dams and tory authority of TVA under the act as it the words "improve navigation, control de­ directed to sell the surplus power so pro­ now exists. structive floods, and promote interstate com­ duced for the benefit of the public, and to Second. The inescapable conclusion that merce" plainly and consistently relate to the assist .in liquidating the cost of the develop­ this section refers only to hydro-generating second purpose declared in section 1 of the ment. plants is compelled by many other provisions act to provide navigation and flood-control "I might call attention to the following of the act as hereinbefore shown. improvements under the interstate com­ provisions of the TV A Act" (quoting in part Tr.ird. Original section 4 (j) did not in­ merce power. The language with respect to from secs. 9a and 10). clude either the first or second so-called disposal of Government property plainly and Subsequently, in comparing the problems clause of present section 4 (J). Instead, consistently refers to the water power which of TV A in production, marketing, and rates present section 4 (j) is, with respect to both would be incidentally but inescapably cre­ with those of private power companies, Mr. so-called clauses, an amplification of original ated by the foregoing navigation improve­ Krug testified (hearings 5243) : section 4 (j) which, even considered alone, ments. It would be unthinkable that a mere "Now, the position of the TVA, I think, is would require the same construction. Sec­ statutory rule of construction, plainly ,ap­ entirely differ·ent. Under the terms of our tion 4 ( j) as enacted in 1933 read: plicable to the disposition of Government act our power supply is controlled by our " ( j) Shall have power to construct dams, property thus incidentally and inevitably but navigation and flood-control program. We reservoirs, powerhouses, power structures, constitutionally acquired, could be con­ must, therefore, try to develop a market transmission lines, navigation projects, and strued as an implied assertion of a much which will fit into that program of construc­ incidental works in the Tennessee River and broader constitutronal authority never be­ tion for flood control and navigation, in that its tributaries, and to unite the various fore claimed by the Congress. While Con­ our power-generating facilities are limited to power installations into one or more systems gress presumably exercises all of the dele­ what can be included in those structures." by transmission lines" (48 Stat. 61). gated powers for the "general welf?-re," it Unable to cite any express statutory au­ Plainly, the dams, reservoirs and navigation cannot be supposed that TVA intends to as­ thority for the construction of steam plants, projects were navigation and flood-control sert that Congress was claiming an inde­ the TVA opinions referred to above seek to improvements which would necessarily create pendent power to legislate for the general imply such authority from a few isolated raw-water power. Powerhouses were equally welfare or that any such power exists in our . words and phrases in certain sections of the necessary to convert this raw-water power Government of limited and delegated powers. act considered in vacuo without regard for into electrical energy and it is clear that this Thus, when considered alone, the sections the context in which, or the subject with re- was the sense and ·meaning of the word cited by TVA, both individually and collec­ . spect to which, they are used. Even if it "powerhouses" in section 4 (j) as originally tively, fall far short of granting authority to were permissible, as it is not, to construe enacted. TVA to construct steam plants anywhere in these sections without regard to the con­ Section 14 merely provides for allocation of the Tennessee watershed; but any such con­ trolling considerations hereinbefore cited, costs; and manifestly no power to construct struction, were it othe'rwise permissible, is they fall far short of a grant of such projects not otherwise authorized under the foreclosed by the congressional declaration authority. act may be implied from that section. The of purpose, the constitutional power involted Thus section 4 (f) merely authorizes TVA reference to allocation of costs of steam by the Congress, and the other provisions of .to purchase or lease and hold real estate and plants is explaine.d by those which had been the act hereinbefore cited. personal property. Section 4 (i) merely au­ constructed in part or in whole at Muscle Indeed, although TV A is now claiming sta­ thorizes TV A to acquire real estate, by pur­ Shoals during World War I and were being tutory authority to construct steam plants chase or condemnation, for the construction turned over to TVA (secs. 7, 16) and the anywhere in the Tennessee watershed, TVA, of various structures. Plainly these sections possibility that the Congress might subse­ in its verified answer in TEP Co. v. TVA (21 do not authorize the construction of any­ quently authorize other steam plants for F. Supp. 947) expressly denied that it had thing and the powers thereby granted can be some constructional purpose such as national authority even to construct hydro plants ex­ exercised only for purposes expressly author­ defense, which, in the words of the last sen­ cept where the dams would improve navi­ ized in other sections of the act. tence of the first paragraph of section 14, gation or flood control, and alleged: TVA relies principally upon section 4 (j), might also be "turned over to said Board for "* • • There are numerous sites upon which reads: the purposes of control and management." the Tennessee River system which are valu­ "Shall have power to construct such dams, TV A futilely seeks to escape the foregoing able for the development of power, but dams and reservoirs, in the Tennessee River and conclusion by asserting that the foregoing constructed at such sites would not con­ it: tributaries, as in conjunction with Wilson language referred to the alloGation of costs tribute substantially to the improvetnent of Dam, and Norris, Wheeler, and Pickwick of Cove Creek (Norr~s) Dam. However, since navigation or the control of destructive Landing Dams, now under construction, will the first sentence of section 14 expressly re­ floods, although their construction would be provide a 9-foot channel in the said river fers to allocating the costs of Cove Creek more feasible for the development of power and maintain a water supply for the same Dam, the last sentence of the first paragraph than any of the dams constructed, under con­ from Knoxville to its mouth, and will best of this section manifestly could not . have struction, or recommended for construction serve to promote zravigation on the Tennes- been intended to refe·r to that dam. by the Authority; but the Authority ha.i. not 4380 CONGRESSIONAL RECORD-SENATE APRIL 12 constructed or recommended for construc­ was my intention to address myself to Mr. DONNELL. Mr. President, will tion and has no intention and no authority certain of the points which have beeri the Senator yield for a further question? under the Tennessee Valley Act to construct ma

in any way possible to complete arr~nge­ Mr. FERGUSON. I should like to know war, and expect another 65-percent in­ ments for supplying the ~ecessary additional whether the letter which the Senator just crease on top of that. Not only the TVA, power. read into the RECORD was written prior Very truly yours, but the whole Nation; is short o.f power. R. w. Cook, Deputy. to the Appropriations Committee's hear­ ·The growth, prosperity, and develop­ (For J. c. FRANKLIN, t,ngs? ment of our State, the capacity of our Manager, Oak Ridge Operations). Mr. HILL. It was not. I asked for the many plants, and the development of letter. I was not a member of the sub­ our many farms, and especially the war Mr. LUCAS and Mr. FERGUSON ad­ committee which held the hearings. plants now existing in the State, will all dressed the Chair. When I began to study the hearings I be put in jeopardy if we fail to have a The PRESIDING OFFICER. Does the found that the House committee had proper supply and a continuous supply of Senator from Alabama yield; and, if so, asked questions about the matter, but power from TVA. to whom? the information was not in the record That evidence was presented before Mr. HILL. I yield first to the Senator and was not available to me. I did not the committee. from Illinois. I shall yield to the Sen­ find anything in the Senate hearings on Mr. FERGUSON. Not this year. a tor from Michigan in a moment. the matter, so I went to work on my own Mr. McKELLAR. The Senator is in- Mr. LUCAS. These are not normal initiative to inquire about it. . volved in a technicality. The Constitu­ peacetimes in which we live, in the opin­ Mr. FERGUSON. The Senator agrees tion was not written this year. I believe ion of the Senator from Illinois. that there is nothing in the hearings it was written several years ago. I think Mr. HILL. I shall come to that in a about it; is that correct? the Declaration of Independence was moment. Mr. HILL. The House committee re­ written sometime ago, strange as that Mr. LUCAS. I think we are probably ferred to the fact that it had inquired may appear to ·my good friend from traveling through the most precarious into the matter, but the information Michigan. These things happened some so-called peacetimes in the history of was given off the record and was not years ago. But this particular question the Republic, and I do not want to be disclosed. was not only before the committee, but caught with my plants down in another Mr. McKELLAR. Mr. President, will the evidence was before the committee. grave emergency that might arise. We the Senator yield, so that I may clear The committee held hearings and passed hope it will never arise, but with the it up? upon the facts. The Senator was a North Atlantic Pact coming along, to­ Mr. HILL. . Yes. If it can be cleared member of the committee. gether with a few other things we are up, I shall be very glad. Mr. HILL. Mr. President, the com­ talking about constantly in the Senate, Mr. McKELLAR. Every Senator mittee not only passed upon them, but such a thing could happen. knows that this exact question was it threshed the whole matter out. I cannot for one moment believe that fought out a year ago. The testimony Mr. FERGUSON. Mr. President, will the erection of a steam plant is not inci­ adduced before the committee was to the Senator yield? dental to power development by the Ten­ this efI ect: Mr. HILL. I yield to my friend from nessee Valley Authority. It is being cre­ First. The Tennessee Valley Authority Michigan. ated for the sole purpose of firming the is the one and only power and light plant Mr. FERGUSON. Is the Senator fa­ power to the point where we shall know in the State of Tennessee. miliar with the fact that there are 2,203,- exactly at all times the power that we Second. There is no question of com­ 102 kilowatt-hours of hydroelectric are able to produce in any great emer­ peting private plants in the State. power produced, and that would be suf­ gency that might arise. If the building Whether that is right or wrong, that is ficient to furnish firm power, as shown of the New Johnsonville plant is not a · the situation which exists in the State. by this year's record, to all war plants part of the national defense, I may say The Tennessee Valley Authority is the and all Government agencies in the Ten­ as a result of what I have heard here one and only source of power. There nessee Valley? this afternoon and from what I know are no private power companies. Mr. HILL. Mr. President, I do not about the Tennessee Valley Authority, Third. The New Johnsonville power know that the Senator's figures are cor­ then I am constrained to ·believe that I plant is absolutely necessary to firm up rect. I do not mean to challenge them; do not know very much about what is the water power so that no city, no town, I simply do not know. But, assuming the necessary for the ncitional defense. It no farm, ·and no factory in the State figures are correct, the Senator is saying may be we shall never have to use it in which needs power and light will be with­ that what we should do is to cut out every the national defense, but certainly now out them. light from every farmhouse in the Ten­ is the time to prepare for any emergency Fourth. It is absolutely necessary that nessee Valley, cut out every light on every that may arise, by authorizing the con­ this dam be built to give manufacturers street in every city in the Tennessee Val­ struction of the New Johnsonville steam and other users a steady and uninter­ ley, close every plant-- plant, so that it may be available in the rupted flow of power and light. event we have to use its power in the Mr. McKELLAR. Mr. President, will Fifth. ~here has been a tremendous the Senator yield? · future for the production of articles growth of manufacturing business in our Mr. HILL. I yield to the Senator from which may be necessary in providing for State since we have had this water Tennessee. the defense of the Nation. power, and the needs are tremendously Mr. McKELLAR. The Senator from Mr. HILL. The Senator is exactly increasing in city, town, and State. It Michigan said that the testimony was not right, and I may say to him that that is absolutely necessary that we know in in this year's hearings. Of course it was. was precisely the reason which impelled advance that there will be no shortage If he will look on page 180 of the hear­ the National Security Resources Board to of power and light. ings he will find-a letter from Mr. Gordon recommend construction of the plant Sixth. This plant is absolutely neces­ R. Clapp, of the Tennessee Valley Au­ some 10 months ago. So far as I know, sary for defense purposes. thority, the last paragraph of which I there was not at that time any question I call the Senator's particular atten­ shall ask the Senator from Alabama to about additional power for the atomic tion to this. read. It shows that the evidence was energy plant. There are other great This plant is absolutely necessary actually before the committee this year. plants there, upon which we are depend­ for defense purposes. The Oak Ridge It was before the committee last year-and ent in time of war, and which made tre­ Atomic Energy Plant, the plants of the before the committee this year. mendous contributions to the winning of .Aluminum Co. of America, the plants of Mr. HILL. In the concluding para­ the last war. There is a great deal of the Reynolds Metal Co., which will be graph of the letter to which the Senator aluminum produced in the valley. It is called upbn to produce aluminum for the from Tennessee has referred, which was the source of chemicals of all kinds, in­ 70-group air force which Congress has written by Gordon R. Clapp, Chairman cluding phosphorus and nitrogen. just voted, will need the additional steam of the Board of the Tennessee Valley There are alloys produced in the valley power. Aluminum production requires Authority, to the Senator from Tennes­ which are used in the manufacture of enormous quantities of power. see, I find this language: steel for many purposes. The municipalities and the coopera­ The urgent need for the New Johnsonville Mr. FERGUSON. Mr. President, will tives which distribute TV A power in the steam plant, and for additional hydroelectric the Senator yield? Tennessee Valley have experienced a 60- generating capacity in the TVA area was fully Mr. HILL. I yield. percent increas·e in demand since the described last year in both House and Senate XCV--277 4384 CONGRESSIONAL RECORD-SENATE APRIL 12 hearings on the regular TVA appropriation increased their consumption by nearly efficient, and now that the cost of pro­ for the current year. The facts presented 300 percent. Whereas in years gone by a year ago were brought up to date in the ducing the power is down to almost 3 recent hearings before the Deficiencies Sub­ farmers used a thousand kilowatts a mills, it is getting more and more difficult committee of the House Appropriations Com­ year, they now average 3,000 kilowatts for water-power sites of the same volume mittee. Because of the extremely tight sched­ a year. All over the United States tpe to compete, which would have been able ules, we respectfully urge early consideration people are desperately trying, by various successfully to compete with the steam of the supplemental request by the Senate means, to increase their supply of elec­ plants only a few short years ago. Appropriations Committee, and stand ready tric energy, In some areas the private Mr. HILL. The Senator is exactly to supply any additional information which utilities are increasing the amount of correct. may be required. available power as much as they possibly Mr. ROBERTSON. Mr. President, In his letter Mr. Clapp referrecl to the can. will the Senator yield for just one ques­ presentntion before the House Subcom­ Mr. HILL. They are doing so in the tion? mittee on Appropriations. Before that Southeast, I may say to the Senator. Mr. HILL. I yield to my colleague subcommittee Mr. Clapp submitted this Mr. AIKEN. In other areas the State from Virginia. letter, under date of January 25, 1949, in authorities are attempting to increase Mr. ROBERTSON. In line with the which he had this to say: the supply. In still other areas mu­ observation made by the Senator from This region is a major producer of chemi­ nicipal or cooperative organizations are Vermont, but with a little different cals, aluminum, and ferro-alloys which are undertaking to increase the supply of analogy, those living in the Tennessee required in large quantities for consistent power so as to meet the demand, which Valley area, served by TVA, are now get­ maximum national productivity, and which is increasing almost 10 percent every ting their power for about one-third of require enormous amounts of power. A year. power shortage would force interruptions in the average rate charged by private utili­ In my section of the country, in New ties, and the steam plant, I have been the production of these vital materials and England, the private utilities are de­ handicap the Nation's ability to prepare for told, would furnish sufficient additional national emergencies. A power shortage at pended upon to furnish an assured sup­ power to supply a city of a million peo­ any time is a serious condition for any region ply of power. In the TV A area the TVA ple. I can understand why they would to face. It would be especially damaging in is depended upon to furnish a constant want it. I wish to ask the Senator from this area, in view of the kind of industry supply of power not only for the coop­ Alabama whether he knows of any area located here. Surveys by the National Se­ erative and municipal distribution sys­ in the United States where the inhabi­ curity Resources Board show that, aside tems, but for some of the private systems tants would not like to get their power from the Northwest, this area is in more as well. serious ·need of expansion of power supply for one-third of what they are now pay­ than any other part of the country. Would it not be just as reasonable to ing. , say that we will not permit the private Mr. HILL. I do not agree with the As I have said, the National Security utility interests of New England to in­ Senator at all. Resources Board, under the chairman­ crease the power which that area needs ship of Mr. Arthur Hill, 10 months ago Mr. ROBERTSON. About what? so desperately as it would be to say we Mr. HILL. That'the people served by recommended the construction of the will not permit the TVA to increase the New Johnsonville steam plant. I point power for which their area depends upon TVA are getting power at one-third of · out, .first, that the only generators having them? what those in other places are paying. power in the Tennessee Valley area, I should like to make one other point. Mr. ROBERTSON. That is in our which takes in parts of seven States, are Mr. HILL. Before the Senator gets hearing. The Senator should read the the generators of the Tennessee Valley to the other point, let me answer him. hearings. Authority, the generators of the United Mr. AIKEN. Very well. Mr. HILL. I will say it is much higher States Government. There is no other Mr. HILL. The Senator's analogy of in some places. . source of power there. No matter how course is 100 percent correct. It is not Mr. ROBERTSON. I said the average. important it might be, no matter how any more reasonable to deny the TV A Mr. HILL. There is no "water" in the necessitous might be the situation from the authority to increase and step up TVA dams. The people of that area are the power standpoint, it is not possible its power than to deny a private power not paying on watered stock. to get any power except from one source, company the right to increase and step I will say also that under a law passed and that is the Tennessee Valley Au­ up its power. As I stated earlier, in by Congress several years ago, TVA has thority. If the Tennessee Valley Au­ 1940, when we were confronted with the to fix it rates so as to amortize the cost thority U.oes not provide the power, there emergency of that year, there was a over· a period of 40 years. In other will be no power there. surplus of 25 percent in electric power words, at the end of 40 years every power Surely no Senator will disagree with in this country. Today, as the Senator project must be paid for with money the proposition that in the operation of knows, there is no surplus. turned back into the Treasury of the the Tennessee Valley Authority, the op­ Mr. AIKEN. No. The fact is that United States, something the private eration of the Government's business, we today the utility companies are using power companies never have done. . No should operate in a businesslil{e manner, practically all their reserves in order to one ever heard of a private power com­ should operate as a private utility would furnish their. customers with enough pany ever paying off any bonds. operate, in the most economical and in day-to-day energy, leaving us in a Mr. AIKEN. Mr: President, will the the wisest manner. That is exactly what rather dangerous situation. It would Senator yield? we are asking to have done through the be just as fair to tell the Nebraska Power Mr. HILL. I yield to the Senator from construction of the steam plant, to put Authority that they cannot increase Vermont. an end to waste, to operate the Govern­ their energy and output to meet the de­ Mr. AIKEN. Let me point out that a ment's p:-:operties in a wise, economic, mands of that State as it is to tell the Federal development, such as TV A, is businesslike manner. TVA that they cannot increase their out­ able to pay back the investment over a Mr. AIKEN. Mr. President, will the put to meet the demands of the TVA period of 40 years on a 4-percent-earning Senator yield? area. capacity, whereas the private companies Mr. HILL. I yield. The second point I wish to make is estimate an 8- to 10-percent-earning Mr. AIKEN. I should like to point in answer to a question propounded on capacity necessary in order to keep them out that the shortage of power in the the floor early this afternoon as to why on an above-water level. Tennessee Valley area is not peculiar to the TVA did not construct more of the Mr. HILL. I think the Senator is en­ that area. I do not know of any area small dams which might furnish more tirely correct. in the United States where additional power. I understand that the New Mr. KEFAUVER. Mr. President, will power is not needed. The shortage is Johnsonville generating plant is ex­ the Senator yield? not among any particular class of peo­ pected to produce power at slightly over Mr. HILL. I yield. ple. Industry is using much more than 3 mills a kilowatt hour, and I believe in Mr. KEFAUVER. I should like to an­ ever before. Our homes are using much that we find the answer. Steam, coal, swer the questions which have just been more than ever before. Our farms have gas generating plants are becoming more raised. F1irst, the Senator from Michi- 1949 CONGRESSIONAL RECORD-· SENATE 4385 gan stated .that TVA could divert all ·its Mr. McKELLAR. I should -be de­ INVESTMENT IN POWER PROGRAM OF TVA power to war industries. If it did so it lighted to have the Senator place it in The following table inserted in the hearings would be violating the plain mandate of the RECORD. on the pending deficiency bill before the Sen­ Mr. FERGUSON. Mr. President, I ate subcommittee shows the break-down of sections 2 and 3 of the TVA Act which the TV A power program assets as of June require that preference be given to rural ask unanimous consent to have the state­ 30, 1948: ' and agricultural users. Certainly the ment placed in the RECORD at this point. There being no objection, the state­ ExHIBIT I.-TVA power program assets,1 Senator wo-1Id not want TVA to violate June 30, 1948 the direct mandate of Congress. ment was ordered to be printed in the RECORD, as follows: The power investment includes the follow­ Then, something has been said this ing assets: afternoon about how much money TVA TENNESSEE VALLEY A UTHORIT·Y Completed plant in service ____ $479, 566, 650 has paid back to the Federal Govern­ Total funds made available to TV A and total Less reserve for depreciation___ 72, 136, 307 ment, or how much has been reinvested investment as of June 30, 1948 in TVA power-producing property.. I (1) Appropriations_:. ______$736, 223, 000 Net plant in service ____ _ ·107, 430, 343 should like to call the Senator's attention (2) Transfer of property from Funds held for futur·e use under to the reference on page 894 of the hear­ other agencies______41,107,000 sec. 26, in the form of cash (3) Proceeds from sale of and current receivables ___ _ $7,551,476 ings in the House Appropriatior:s Com­ Long-term receivables ______84,832 mittee on the ·rndependent Offices Ap­ bonds______65,072,000 (4) Net income from power op- Inventories------7,344,984 propriation Act of 1950, to which he has erations ______1 109,184,000 referred. It is shown there that there Total assets employed in power program ______has been repaid into the Treasury $34,- Total funds provided__ 951, 586, 000 422, 411, 635 Construction in progress ______27,093,750 131,519; retirement of bonds whi~h were (5) Less following amounts: issued pursuant to the purchase of Ten­ 449,505,385 nessee Valley electric power property, (a) Bond redemption___ 11, 072, 000 (b) Payments into This investment was fin~nced with capital $11,072,000; reinvested by authorization Treasury______30,970,000 from the following sources: of Congress, $75,052,967; making a total (c) Net expenditures of U. S. Treasury funds: of about $120,000,000 which has been re­ non - income - pro- Appropriations and trans­ paid or reinvested in property as of this ducing programs_ 104, 685, 000 fers of property: Total ______$309,379,918 time. 146,727,000 Less payments under Mr. HILL. Mr. President, I am sure sec. 26______23,059,019 the Senator is correct, and I thank him Total investment, June for his contribution. 30, 1948 ______804,859,000 Net outstanding__ 286, 320, 899 Mr. FERGUSON. The Senator from 1 The net income from power operations fig­ Bonds: Alabama has indicated that TV A has ure of $109,184,000 is arrived at in the follow­ Issued______65,072,500 paid back certain sums of money into ing manner: Retired------$11,072,500 the Treasury. Gross income from power ______$308, 656, 000 Net outstanding____ f?4, 000, 000 Mr. HILL. I said some money, but not a great deal. · Less 'following amounts: Total U. S. Treasury Depreciation ------72,021,000 fundsoutstanding_ 340, 320, 899 Mr. FERGUSON. Of course, the Sen­ Interest (net) ______4,646,000 ator is familiar with the fact that· pri­ Other expenses ______122,805,000 vate companies are paying into the Earnings of the power busil~ess: Treasury yearly large sums of money as 199,472,000 Gross earnings ______$114,973, 122 income taxes. Less interest paid______5, 788, 636 Net income from power 109, 184, 000 Mr. HILL. Yes. The remainder represents the Mr. FERGUSON. I wonder whether TOTAL ASSETS OF TVA AS OF JUNE 30, 1948 net earnings invested in the Senator would say that the following As of June 30, 1948, the total assets of the power assets, including $34,- figures are correct. As of June 30, 1948, TVA w~s in the amount of $819,942,171. 131,519 paid to the Govern­ total assets of the TVA, $819,942,171. Funds paid into the Treasury ment for retirement of bonds (1) From power proceeds ______$23, 059, 000 and as an offset to appropria­ Mr. HILL.. That is the total assets. tions and $75,052,967 used But that figure does not represent only (2) From a~tivities other than power______7,911,000 directly in the business_____ 109, 148, 486 power. It represents flood control, navi­ gation, production of fertilizer, and other 30,970,000 449,505,385 items. (3) Bonds retired from power 1 Exclusive of general assets not segregated Mr. FERGUSON. I want to put into revenues ------11, 000, 000 by programs and exclusive of construction in the RECORD the sums of motley paid into (4) For interest------5,789,000 progress relating to multiple-use facilities at the Treasury. projects for which an allocation of costs to First, fr9m power proceeds, $23,059,000. Total------47,759,000 programs has not yet been made. Second, from activities other than EXHIBIT II.-TVA power income and expense, by years, summarized from annual finan­ power, $7,911,000. cial statements Or a total of $30,970,000. Depreciation The third item is bonds retired from Operating Operating provisions Net operat· Interest Gross earn· power revenues, $11,000,000. Fiscal year revenue expenses and amorti· ing revenue income ingi; Fourth, for interest on the bonds, $5,- zation 789,000. ---- Which makes a total of $47,959,000. 1933-38 ____ ------· $6, 732, 447 $3, 870, 994 $3, 610, 118 . ($748, 665) $164, 946 ($1iS.3, 719) 1939 ______------·------5, 507, 077 2, 332, 604 1, 731, 593 1, 442, 880 95, 954 1, 538, 834 The appropriations for TVA to June 1940 ______------15, 285, 074 7, 081, 735 3, 615, 623 4, 587, 716 143, 595 4, 731, 311 194L _____ ------21, 137, 371 9, 264, 242 4, 546, 547 7, 326, 582 148, 798 7, 475, 380 30, 1949, were $736,223,000. 25, 329, 954 15, 819, 351 5, 230, 350 4, 280, 253 136, 078 4, 416, 331 Mr. President, I should like to place ~~~:::::::::::::::::::::::::: 31, 674, 210 11, 935, 739 17, 937, 886 l 11, 800, 585 126, 559 I 11, 927, 144 in the RECORD a statement of the total 1944 _____ --• ------35, 429, 546 13, 815, 808 19, 876, 468 1 11, 737, 270 115, 04/i I 11, 852, 315 1945 .••• -•• ------39, 383, 231 12,891, 642 18, 885, 7157 '17, 605, 832 102, 409 ~ 17, 708, 241 sums made available to TVA and total 1946 ____ • ·------35, 264, 545 9,875, 814 8, 605, 731 16, 783, 000 78, 591 16, 861, 591 investments of TVA, as of June 30, 1949. 1947 ---··------44, 144, 090 13, 588, 931 8, 716,410 21, 838, 749 25, 198 21,81i3,947 1948 ______------48, 769, 524 22, 328, 321 9, 264, 755 17, 176, 448 5, 299 17, 181, 747 Mr. McKELLAR. Mr. President, is that the statement the Senator has just Total ••••••••••••••••• 308, 657, 069 122, 805, 181 1 72, 021, 238 1 l't3, 830, 650 1, 142, 472 I 114, 973, 122 secured from me? 1 ~efl.ects accelerated amortization of electric-plant acquisition adjustment by write-ofi against accumulated Mr. FERGUSON. Yes. earnmgs: 1943, $2,000,000; 194.4, $3,000,000; 1945, $1,000,000. 4386 CONGRESSIONAL RECORD-SENATE APRIL 12 E~:n-usn llI.-Ret urn on the TVA power age, only 40 percent of a multipurpose the atomic bomb he was speaking of the i nvestm ent dam is charged to electric operation. So atomic energy plant at Oak Ridge, Tenn., I think the figure of investment for the . which must secure a large part of its Annual Average return purpose of the electric business is about power from the Tennessee Valley Au­ Fiscal year invest· Gross on in· $450,000,000 instead of the $800,000,000 thority. That plant is depei.ldent upon mentl earnings vest· as stated by the Senator from Michigan. the Tennessee Valley Authority for the ment The Senator did not mention the other additions and expansions which it now calculation, which is that $75,052,000 of feels necessary to make. The Atomic Percent 1941______$190, 000, 000 $7, 475, 380 3. 9 earnings of the TVA had been reinvested, Energy Commission advised in its letter 1942 ______220, 000, 000 4, 416, 331 2. 0 with the approval of Congress, for elec.. to Mr. Clapp that it must have this New 1943 ______295, 000, 000 13, 927, 144 4. 7 trical · purposes, such as transmission 1944 ______360, 000, 000 14, 852, 315 4. 1 Johnsonville plant if it is to have the 1945_-·------300, 000, 000 18, 708, 241 4. 8 lines. power for these additions and these ex­ 1946 ______400, 000, 000 16, 861, 591 4. 2 Mr. HILL. Yes. In other words, pansions. We must build this plant, Mr. 1947 _ ------400, 000, 000 21, 863, 947 5. 5 1948 ______405, 000, 000 17, 181, 747 4. 2 TVA has been in a growing, expanding President. We must build it for the de­ stage, and instead of putting the money fense of our country. SUMMARY into the Treasury, Congress has per­ Mr. McKELLAR obtained the :floor. mitted the TVA to expend it on power Mr. MAGNUSON. Mr. President, I 1934-40, 7 years (de· Percent facilities, transmission lines, and other wanted to ask the Senator from Alabama velopment period)__ $60, 000, 000 $5, 686, 426 1. 4 investments in the project. a question, but I can make this observa­ 1941-48, 8 years ______330, 000, 000 2109, 286, 696 4. 1 1934-48, 15 years______205, 000, 000 2114, 973, 122 3. 7 Mr. MAGNUSON. Mr. President, will tion on my own account. the Senator yield? The PRESIDING OFFICER. Does the 1 Average net book cost during the year of plant in Mr. HILL. I yield. Senator from Tennessee yield to the Sen­ service plus Jong-term receivables and an allowance for Mr. MAGNUSON. Of course, the inventories and general plant used for the power pro· ator from Washington for that :r>urpose? Senator will agree that multiple-purpose Mr. McKELLAR. I yield. g r ~~ e fl ect s acceler!tted amortization of electric-plant ac· projects pay back tl)e most money on the quisition adjustments by write-off against accumulated Mr. MAGNUSON. I am glad the Sen­ earnings: 1943, $2,000,000; 1944, $3,000,000; 1945, $1,000,000. investment, and the returns are the s,tor from Alabama discussed the impor­ quickest. - EXHIBIT IV.-Disposition of gross TVA power tant defense angles, because there is no earnings Mr. HILL. There is no question about doubt in the mind of anyone familiar that. GROSS EARNINGS with the projects at Oak Ridge and Han­ Mr. MAGNUSON. The power is readily ford that had it not been for Tennessee available in these areas, and is in de­ Fiscal year From Valley power and Bonneville Authority exhibit II mand. Should the bonds of such projects ·power the atomic bomb would not have be put on the private market they would been built in the time it was built. The 1933-39 ______------·------$955, 115 sell far above par, because they are the great advances in the science of nuclear 1940______4, 731, 311 finest kind of investment, whether it be 1941______7, 475, 38() fission are going to require mor'e power. private or public business. A similar HJ42 •••••• ------· - 4, 41G, 331 There is no question about that. 1943 ------~ ------·-· ------I 11, 927, 144 situation exists in my section of the 1944 ______111, 852, 315 country. There we have the Grand These two great developments, one in 1945-·-·-- --· --·- · -----·· --····------I 17, 708, 241 the southeastern part of the United 1946______16, 861, 591 Coulee and the Bonneville projects: 1947 ______21, 863, !)47 They operate under the same schedules States and the other in my area, are just 1948______17, 181, 747 as TV A, though not at the same cost, as important today, in the judgment of the Joint Chiefs of Staff or of any mili­ TotaL .---···-··· ···· ··· ----·--·---·- 114, 973, 122 and they make the same type of repay­ ment. I should say that Grand Coulee tary man, as are tanks, battleships, or DISPOSITION OF GROSS EARNINGS and Bonneville are 9 years ahead of their airplanes. 40-year schedule in repayment to the Mr. HILL. Mr. President, will the Sen- Paid to Used di· United States Government. ator yield? · Fiscal Bond re­ U.S. rectly in year Interest tirement Treasury the power Mr. McKELLAR. Mr. President, it is Mr. McKELLAR. I yield. (sec. 26) business evident we cannot have a vote on the Mr. HILL. Does not the Senator from amendment tonight. Washington agree that they are far more 1933-39___ _ $60, 479 ------$894, 636 Mr. HILL. Mr. Presiden\ is it the important. 1940______432, 082 ------4, 299, 229 purpose of the Senator to move that the Mr. MAGNUSON. They are far more 1941______484, 602 ------·-- 6, 990, 778 1942______742, 978 ------3, 673, 353 Senate take a recess? important. 1943______778, 291 ------····-·- 111, 148, 853 Mr. MCKELLAR. Yes. Mr. HILL. Because we are in · the 1944______736, 624 $2, 000, 000 - ·-·------19, 115, 691 1945______726, 207 2, 000, 000 ------114, 982, 034 Mr. HILL. Mr. President, I should atomic age. 1946______647, 867 2, 300, 000 $7, 087, 741 6, 825, 983 like to say a few words before the Senator Mr. MAGNUSON. Yes. 1947______615, 570 2, 272, 500 7, 971, 278 11, 004, 599 makes the motion. I desire to empha­ Mr. HILL. I thank the Senator. 1948 - -· - - - 563, 936 2, 500, GOO 8, 000, 000 6, 117, 8ll size that the New Johnsonville plant is a TotaL __15, 788, 636 11, 072, 500 23, 059, 019 2 75, 052, 967 very integral part of the national defense MEESAGE FROM THE HOUSE system of the United States. It has been A message from the House of Repre­ 1 Reflects accelerated amortization of electric-plan, said here that we built the Watts Bar sentatives, by Mr. Maurer, one of its acquisition adjustments by writ<> -ofl' ag:iinst accumu· lated earnings: 1943, $2,000,000; 1944, $3,000,000; 1945, steam plant as an emergency or war reading clerks, announced that the $1,000,000. measure. We built that plant 17 months House had passed the bill