U.S.A. DISPUTE

Dominion, Volume 31, Issue 152, 24 March 1938, Page 11

U.S.A. DISPUTE

Chairman Removed From Office TENNESSEE VALLEY AUTHORITY Threat To Roosevelt’s Prestige By Telegraph—Press Assn.—Copyright. (Received March 23, 7.5 p.m.) Washington, March 22. A controversy which presents one of the gravest threats to the prestige of President Roosevelt came to a head when the President removed the chairman, Mr. Arthur Morgan, from the Tennessee Valley Authority because the latter refused to substantiate charges he made against the two other members of the body except before a Congressional committee. The chairman, Mr. Morgan, had openly defied President Roosevelt during several hearings by the President, in which the latter called the three members before him.

A bitter controversy has resulted in attracting nationwide attention, ami is expected to have important political repercussions.

The chairman had alleged dishonesty and want of integrity against Dr. Harcourt A. Morgan and Mr. David Lilieuthal. co-members of the body, particularly in connection with a case of the condemnation of lauds by tlie Tennessee Valley Authority. A Congressional investigation into the whole matter is now considered certain. In the meantime the question lias been raised of the President’s power to remove Mr. Morgan.