man think some one of the management should be here to answer those questions?

The CHAIRMAN. I just said the directors are here.

Mr. BYRNS of Tennessee. Yes, sir; but you said would make a statement.

The CHAIRMAN. I meant they have come here to testify.

Mr. FITTS. Is that a request?

Mr. Byrns, you are requesting the opportunity to do that?

Mr. BYRNS of Tennessee. Yes, sir.

Mr. FITTS. We will arrange for that, I am sure, if that is the will of the committee.

The CHAIRMAN. I would like for you to comply with any request made by any gentleman to this committee, if that is the will of this committee.

What I thought I was trying to do was to be accommodating to the directors, the officials, and representatives, and that is what I wanted to do.

No one will be cut out of making any showing he wants to make. Mr. COSTELLO. I would like to hear at least one of the directors. The CHAIRMAN. What do you think about adjourning over until Monday?

Mr. SPARKMAN. Mr. Chairman, Mr. Kefauver has just said there are a couple of gentlemen here to whom it would be a great hardship for them to go over and have to remain here until next week. I was wondering if we could hear them tomorrow.

The CHAIRMAN. I have a lot of constituents coming to town, including a commissioner of agriculture of my State, tomorrow, or I can remain over here this evening.

Some of the gentlemen on the committee prefer to have this matter go over until tomorrow morning, and if it is satisfactory to the committee we will adjourn until tomorrow morning.

(Whereupon, at 4:05 p. m., an adjournment was taken until tomorrow, Friday, January 26, 1940, at 10:30 a. m.)

TO AMEND THE TENNESSEE VALLEY AUTHORITY

ACT OF 1933

FRIDAY, JANUARY 26, 1940

HOUSE OF REPRESENTATIVES,
COMMITTEE ON MILITARY AFFAIRS,

Washington, D. C.

The committee met at 10:45 a. m., Hon. A. J. May (chairman) presiding.

The CHAIRMAN. The committee will please be in order. Mr. Rankin, I believe, has something he wants to say.

Mr. RANKIN of Mississippi. Mr. Chairman, I would like to have time some day, and I would like to have the day set, to appear before the committee. I want, to some extent, to answer the Governor of Tennessee and also to express my views on this question.

I am the only man in Congress I know of who has been in this fight from the very beginning. It began in 1921. I was coauthor of the bill that finally became law establishing T. V. A., and I discussed this measure on the floor of the House when it was first passed. I cannot let some of the arguments that have been made here go unchallenged, and I would like to have sufficient time to discuss the proposition, if I may do so, without burdening the committee. I cannot do it in 10 or 20 minutes. I understand the Governor of Tennessee took a day, and I am just as much interested in this proposition as the Governor of Tennessee or anybody else ever has been or will be. But I would like to have ample time to discuss it and to answer such questions as members of the committee or anyone else see proper to propound.

The CHAIRMAN. Mr. Rankin, the chairman of the committee has already announced, and will adhere to that announcement, that as soon as we can dispose of the witnesses who are from the country, representing the various interests down in the States of Tennessee and Alabama, I am going to set the matter over to a day next week for Members of Congress to be heard who are interested in it. And knowing your long interest in the matter-in fact, I think you have been interested in it for about 10 years, since I have been here, and you say you began in 1921, or something of that kind, and that, of course, was when the old Muscle Shoals proposition was up-I will be very glad to give you all the time we can. But I have already tried to rule here that the issue is a question of replacement of these

taxes.

Mr. RANKIN. I understand what the issue is, entirely, and I understand the issues they have raised here, and I know some Members want to come in and make a statement of a few minutes and extend their remarks in the record. I am not asking to extend my re

marks in the record, but I do want to have ample time to discuss this proposition before the committee and to answer whatever questions members of the committee may see fit to ask at least, to try to answer them. And I would like to have ample time, without being limited to just a few minutes, because if I am just going to be permitted to speak for a few minutes and then to extend my remarks in the record, I would as soon not take up the time of the committee to that extent.

The CHAIRMAN. I am sure the gentleman will avoid the question of Nation-wide power rates as much as he can. That has been discussed from year to year. What we will be glad to do

Mr. RANKIN. I will say to the chairman, if I am permitted to appear before the committee, I will make my own speech and won't be dictated to as to what the limitations will be; because there will be some things it will be necessary for me to bring in, to show the reference to these charges that are being made for wholesale power now. What I ask is that I may be given reasonable time to discuss this issue, and what I shall discuss will touch on this issue; but I do not care to be limited by the Chair as to just what I shall say, or shall discuss.

The CHAIRMAN. I hope the gentleman from Mississippi does not mean to say the chairman is going to throttle him in any way? Mr. RANKIN. The Chair

The CHAIRMAN. Just a minute. The gentleman knows very well I invited him to come before the committee, voluntarily, knowing his interest in the subject and feeling he was entitled to express his views and, when the time comes, I shall be very glad to give him reasonable time and beyond reasonable time; but I was just merely suggesting to the gentleman that we are having a great deal of difficulty in holding this thing to the issue which is before the committee.

Now, let me say this: The Tennessee Valley Authority Directors are very cooperative in the matter. They are entitled to be heard and will be heard if they wish; or, if Members of Congress desire, we will hear them, and certainly we will hear the gentleman from Mississippi and give him all the time we possibly can.

Mr. RANKIN. What I had reference to is in reference to the national situation. It is impossible to discuss this situation without calling attention to these wholesale rates that are being paid throughout the country, and I have the information, I have the studies to lay before the committee to sustain my argument on that point.

I hope the committee will let me know in advance. My work is very heavy. I am the chairman of a committee also, and my work is very heavy. I cannot stay here to hear all of the arguments, I will have to read the record, if I can; but I should like to know in advance when I can be heard, and I would like at least an hour or two.

The CHAIRMAN. Let the Chair make this statement: You made some remark with respect to statements made by the Governor of Tennessee. Now, the Chair will direct the clerk and the reporter to make available to the gentleman from Mississippi, under the rules of the committee, whatever they are, the transcript of the testimony given by him. And I hope the gentleman will, when he reviews that testimony, try to confine his remarks to the one thing we are trying to determine here, as nearly as possible.

Mr. RANKIN. My remarks, every statement I make, I will say to the chairman, will be with reference to this issue; but I do not want to be put in a strait jacket.

The CHAIRMAN. I am not putting you in a strait jacket, as far as I am concerned. We would be glad to have you remain with us this morning, if you can.

Mr. RANKIN. Thank you; I will stay a few minutes, to hear the first witness.

The CHAIRMAN. Now, gentlemen, we have a situation here this morning which is just this: We have a couple of witnesses from Polk County and Rhea County, Tenn.-Mr. Harry J. Schaeffer, county attorney of Polk County, and Floyd Knight, judge of Rhea County, Tenn.-and on yesterday one of the members of the committee, who is not present at this particular time, requested that he be permitted to question one of the Directors of the Tennessee Valley Authority.

Let the Chair say here and now that Senator Pope, one of the members of the Board, and Mr. Lilienthal, another member of the Board, are present. On yesterday evening, on my own authority, I excused Dr. Harcourt Morgan, on account of the fact he has a bad ear that is giving him trouble and had to go to the hospital for treatment and then had to return to his home, and I permitted him to go with the understanding that Dr. Harcourt Morgan, even with his present physical disabilities, will be glad to return if the committee wants to quiz him, or to ask any questions of him.

Since the gentleman who wanted to ask questions of the member of the Board is not present at this time, we will proceed with the other witnesses from the country until that gentleman comes in. will call first Mr. Harry J. Schaeffer, county attorney, Polk Country. Come around, Mr. Schaeffer, please.

Now, gentlemen, may I ask the indulgence of the members of the committee to allow Mr. Schaeffer to continue with his statement to completion, if possible, and then you will have an opportunity to ask any questions you feel are relevant and competent on this question.

I want to qualify Mr. Schaeffer. Perhaps his position qualifies him, to begin with; but, Mr. Schaeffer, I believe you are county attorney of Polk County?

STATEMENT OF HARRY J. SCHAEFFER, COUNTY ATTORNEY, POLK COUNTY, TENN.

Mr. SCHAEFFER. That is correct.

The CHAIRMAN. As county attorney of Polk County, what connection do you have with the fiscal agencies of the county that have to do with the levying and collection of taxes?

Mr. SCHAEFFER. Well, I advise with them at all the meetings. The CHAIRMAN. Have you some statement with respect to the situation in which your county is placed by reason of the purchase of land and electrical facilities by T. V. A., that you would care to make?

Mr. SCHAEFFER. We have a prepared statement, Mr. Chairman.
The CHAIRMAN. All right, sir.

Mr. SCHAEFFER. I believe it would be better if I could go through that, as it is short; then, if there are any questions, I will be glad to try to answer them.