I, T. Grady Head, State revenue commissioner, Department of Revenue, State of Georgia, do hereby certify that the attached is a true and correct copy of the 1938 ad valorem tax return of the Tennessee Electric Power Co., covering its electric power properties in the State of Georgia, as per the original of said return on file in this Department. In witness whereof, I have hereunto set my hand and official signature on this the 17th day of January, 1940. [SEAL] T. GRADY HEAD, State Revenue Commissioner. Annual return for taxation of The Tennessee Electric Power Co., of all electric property owned by said company on Jan. 1, 1938, made to T. Grady Head, commissioner, Department of Revenue, State of Georgia, by the president, in pursuance with law, without deducting the indebtedness of said company [This return must be made on or before the 1st day of March, and the State taxes thereon paid by the 1st day of September, other taxes due by Dec. 20] Before me personally appeared B. F. Manning, treasurer, of said company, who being duly sworn, deposeth and saith that the foregoing statement contains by items a true and correct return of all the property owned, controlled, or held by or on behalf of said company therein named, without deducting indebtedness of same on January 1, 1938, and that the value thereof as stated is its full market value. Sworn to and subscribed before me this 28th day of February 1938. [SEAL] B. F. MANNING, Treasurer. H. J. Cox, Notary Public. DEPARTMENT OF REVENUE, I, T. Grady Head, State revenue commissioner, Department of Revenue, State of Georgia, do hereby certify that the attached certificate is a true and correct copy of the 1939 ad valorem tax return of the Tennessee Electric Power Co., covering its electric power properties in the State of Georgia, as per the original of said return on file in this department. In witness whereof, I have hereunto set my hand and official si gnature on this the 17th day of January, 1940. [SEAL] T. GRADY HEAD, State Revenue Commissioner. Annual return for taxation of the Tennessee Electric Power Co., of all electric property owned by said company on January 1, 1939, made to T. Grady Head, commissioner, Department of Revenue, State of Georgia, by the treasurer, in pursuance with law, without deducting the indebtedness of said company [This return must be made on or before the 1st day of March, and the State taxes thereon paid by the 1st day of September. Other taxes due by Dec. 20] Before me personally appeared B. F. Manning, treasurer, of said company, who being duly sworn, deposeth and saith that the foregoing statement contains by items a true and correct return of all the property owned, controlled, or held by or on behalf of said company therein named, without deducting indebtedness of same on January 1, 1939, and that the value thereof as stated is its full market value. Sworn to and subscribed before me this 21st day of February 1939. [SEAL] B. F. MANNING, Treasurer. H. J. Cox, Notary Public. STATE OF TENNESSEE, DEPARTMENT OE REVENUE, STATE OF GEORGIA, Atlanta, January 18, 1940. To the chairman and members of committee having under consideration S. 2925, being a bill to amend the Tennessee Valley Authority Act of 1933. GENTLEMEN: The bearer of this letter, Mr. William Butt, an attorney at law, of Blue Ridge, Fannin County, Ga., is hereby designated by me as my personal representative to appear before you and testify with reference to the measure above referred to. I have furnished Mr. Butt with certain certified copies of records on file in this office and have designated Mr. Butt as my personal representative to appear before you by reason of his familiarity with the questions involved, and because of my absolute confidence in his honesty and integrity to fairly present the interests of this State in the pending legislation. I had expected, and still expect to attend the hearing which I understand is now set for the 25th, but by reason of serious illness in my family, I apprehend that I may be prevented from attending the Committee hearing on the 25th, in which event, I will be represented by the gentleman above named. Respectfully, [SEAL] T. GRADY HEAD, Commissioner, Department of Revenue, State of Georgia. The CHAIRMAN. Now, Mr. Pearson, we will be glad to hear you for a few minutes. You represent what district in Tennessee, Mr. Pearson? STATEMENT OF HON. HERRON PEARSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TENNESSEE Mr. PEARSON. I represent the Seventh District of Tennessee, Mr. Chairman. The CHAIRMAN. And will you make your own statement now in your own way? Mr. PEARSON. Mr. Chairman, I was invited here to make a statement in regard to a bill which I introduced back in January of last year, H. R. 2741, dealing with this tax problem, but if the committee will permit me, as long as my friend, Mr. Butt, has been successful in obtaining the applause of this committee with reference to some of his statements, assuming that the jury is not already influenced against my position, as evidenced by their applause, I would like to make some reference to his philosophy of this tax situation. The CHAIRMAN. Very good. Mr. PEARSON. To begin with, I do not agree in any particular with his theory upon which a tax might be based on the assumption that the Government has engaged in a proprietary enterprise, and undertaking to draw an analogy between this situation and the cases which he cited from corpus juris, because the Government in exercising its right to control the waters of the Tennessee River and utilizing them for such purposes as the Government thinks they should be utilized for, is not engaging in a proprietary enterprise other than to assume control of something which belongs to this Government in the first place, and to the people, who have a right to enjoy the power, the navigation, and the flood-control benefits which this Government alone has a right to control upon navigable streams, and those cases which the gentleman has cited, if this committee will take the time to read them, you will find that there is no analogy whatsoever between the basic reasoning upon which those decisions were founded, and the situation which we have on the Tennessee River today, with |