CONTROVERSY IN AMERICA

Press, Volume LXXIV, Issue 22359, 24 March 1938, Page 11

CONTROVERSY IN AMERICA

President Removes

Official

THE TENNESSEE VALLEY

ADMINISTRATION

(UNITED FBX3S ASSOCIATION COPYRIGHT.)

(Received March 23, 9.30 p.m.)

WASHINGTON, March 22

A controversy which presents one of the gravest threats to the prestige of Mr Roosevelt came to a head when the President removed the chairman (Mr Arthur Morgan) from the Tennessee Valley Authority. It is stated that the reason for this action was Mr Morgan’s refusal to substantiate charges he made against two members of the body, except before a Congressional Committee. Mr Morgan openly defied Mr Roosevelt during several hearings by the President in which Mr Roosevelt called the three men before him.

The bitter controversy has resulted in attracting nation-wide attention, and it is expected to have important political repercussions. Mr Arthur Morgan had alleged dishonesty and want of integrity against Mr Harcourt Morgan and Mr David E. Lilienthal, two fellow directors of the body, particularly in the case of the condemnation of lands by -he Tennessee Valley Authority. _ A Congressional into the whole matter is now considered certain.

In the meantime the question has been raised of the President’s power to remove Mr Arthur Morgan.

The Tennessee Valley Authority was created by Congress in 1933, to develop the Tennessee river system in the interests of navigation, flood control, and national defence. It was also empowered to generate and sell surplus electricity to avoid the waste of water power. Mr Arthur E. Morgan was appointed chairman of the board of directors, his term of office to expire in 1942. There are two other directors, Mr Harcourt A. Morgan, whose term expires in 1939, and Mr David E. Lilienthal, who was reappointed in 1935 for a further term to expire in 1945. /