Show k NATIONAL AFFAIRS Reviewed by Ly I CARTER FIELD I So called So-called yardstick becomes be comes a straw man in joint senate house investigation of TV TA A how government government govern govern- ment can sell electricity cheaper than private concerns con can corns cerns explained Appointments Ap ointments present tough problem to President one WASHINGTON One of the most extraordinary developments of any congressional inquiry in the memory memory mem memo ory of the oldest Inhabitants inhabitant Is la what the Joint senate-house senate committee Investigating investigating In in- the Tennessee Valley Authority Is doing with regard to the so-called so yardstick The point is that the committee has heard testimony for days day running run Ding ning about the yard stick Experts Expert for forthe forthe forthe the utilities have occupied ocd oc U X days day of the committees committee's time attacking attacking attacking at at- tacking the concept t seeking to prove that it is I. the bunk that it Is unfair that k it has no relation to what it is really supposed sup up posed to be The committee counsel Francis Frands Francis Diddle has Diddle Biddle spent endless effort i trying to knock down the conten content bons of these experts with some assistance from several of the Democratic Dem members of the committee Which would be all aU right except for one little thing What is happening hap pening is that a straw man has been erected and every everybody be dy Is acting act ing as 81 though he were real The experts for the utilities tie are attacking attack ing the straw man and trying to knock him over Diddle Biddle and the Democrats are also acting as 81 though the straw man were the sacred ark of the covenant and trying to prevent pre vent a single Ingle dent or singe Inge What Is this straw man It is the concept of the TVA yardstick that the public in general and congress In particular held up to last sum um mer met It was the idea that the TVA was going to determine by actual l' l operation what electric rates should be what prices price would be fair and what prices price extortionate This yardstick was to be held up to the country with the general idea I I that the public would then know i. i If whether in any any particular community nily It was being treated fairly by Its utility company r But that concept was thrown to t the winds last summer ummer at Knoxville I by no less leu an authority than David E. E who is the most powerful pow pow- pow erful of the two remaining Tennessee Tennes Tennes- see Ice Valley Authority commissioners O Oc c Tells s How Government Can Cana a Undersell Private late Firms Lilienthal was on the stand before be r fore this same committee He lIe was asked by Rep Charles A A. A Wolver ton what it was that enabled a I government operation to sell electricity electricity elec more cheaply than a privately owned one Lilienthal frankly stated with no no hesitation at all what these elements elements elements ele ele- ments were One was the government government govern govern- ment could borrow money for 2 per percent percent percent cent whereas private capital had to pay much more lie pointed out that In the production of elec elec- iron from water power power the chief element of cost Is Is' Is Inter interest st on the Investment Investment the cost of the dam the theland theland theland land for the reservoir the dynamos the power transmission lines etc i Another element which made government gov fa co cols s cheaper he pointed out was that when the government governments s built a dam It could charge oft off a ac c considerable fraction of the cost to good flood control and navigation whereas where c as a private company had no way I of being able to cash in on such benefits even I if they were admitted Still a third element he admitted was the difference In taxes In some surprise Sen Many Harry H. H T Schwartz one of the Democratic a. a members of the committee asked Lilienthal what In view of what Lilienthal had just said became of the yardstick Lilienthal hesitated if for a moment and then asked the committees committee's permission lon t to tal take taka some time in carefully writing out his answer lIe He would like to produce produce pro pro- duce a definition of the yardstick he said which would be right and ande e could not be attacked ProM Problem in Appointments a Faces Paces President Roosevelt yg President Roosevelt faces laces a real n problem on his approaching Supreme Supreme Supreme Su Su- preme court and department of Justice Jus tide tice appointments As a matter of fact tact the dilemma extends generally general I ly Iy to recruiting for all aU New Deal it officials In such cases casel as appointments appoint y ments require confirmation by the senate before the officials can take office The senate is feeling Its oats It ItIs ItIs Ita a Is returning from the country anti anti- f C. C I I. I O O. sit down strikes anti antl- Corcoran and Cohen and for tu tue tues s first time not afraid of what the u. u l President might be able to do to punish So far as 81 the attorney generalship general ship is concerned the Presidents President's problem is complicated b by phy His HII real choice for ct ne ney general to succeed Homer lIomer S. S Gumming Cummings gs is 11 Robert II U. Jackson But Dut Jackson Is 11 from New York state tate and the Empire state already has hu three cabinet members members henrys Jr James A. A Farley and Miss MIu Frances Perkins Perkin The once very imminent prospect that Farle Farley would leave the cabinet has been bern almost eliminated The Roosevelt recession nipped one very good chance for Dig Big Jim to get out and make lome some money moner for his hi lamU family While waiting for or something tome some thing else to turn up Jim through a ghost writer put out his hi book which netted him according to reliable reports Now is not much of a capital capital cap cap- ital If ii a man contemplates retiring and living on the Interest but It isa is 11 isa a nice piece of change I If u one has hu a regular job paying 1000 a year ear So Jims Jim's financial worries are over for the time being lie He need not look around for a business job and Miss IM Perkins Love Their Work Wor WorThe The other two New Yorkers Miss Mill Perkins and Henry Jr could not be pried loose from their jobs job In the first place they love their work In the s i second place they f love the glory of ot It the social prestige in fact everything I about it In the case of M 0 r g e nth a u S lr t Roosevelt would be genuinely sorry to Secretary lose iose him anyhow Perkins the President does not regard as a Bernard Dernard M. M Baruch and he knows that Henry is stubbornly committed to toa toa a lot of Ideas at wide variance from New Deal economics But ho knows also that no one could be more faithful faithful faithful faith faith- ful to him than MI Miss Mist Perkins is is sometimes a worry worry wor wort ry to the President She is doing better now but for a time she could not have stirred up up more trouble for the White House on Capitol Hill if It that had been her particular objective ob simply simply because she rubbed the fur of senators and important representatives the wrong way But Miss Perkins also Is known for her utter loyalty and she has the enthusiastic enthusiastic en en- backing of ot Mrs Roosevelt Roose Roose- velt vell veltIn In addition her leaving the cabinet cabinet cabinet cabi cabi- net would open up a real problem unless the President were were- to appoint appoint appoint ap ap- point Edward F F. F McGrady the only known person who could be appointed appointed ap ap- ap pointed Secretary of Labor without starting something approaching a civil war between the A. A F F. F of L. L I and C. C I. I O. O Not No Easy to Find a Man lUan I Big Enough h for the Job New Dealers generally admitting that the fact there are now three cabinet members from New York which eliminates Robert H. H Jackson Jack son as a serious contender for the attorney generalship are predicting that Gov Coy Frank Murphy of Michl- Michl gan will be appointed No one can be sure what the PresIdent Pres Pres- Ident will do especially as it Is not noton an on easy task he has to pick out a aman aman at atman man who will seem to the country big enough for the job and yet be a militant New Dealer Dealer especially especially as the department of justice Is 11 one onel place where It is extremely I tant from the House standpoint standpoint stand stand- point to have a per cent New Dealer As a matter of fact Homer HomerS S. S Cummings had certain fallings tailings from the New Deal standpoint because because be be- cause every now now and then he would I have a conservative reaction So Murphy once Jackson is passed over would seem a natural 1 al aI for tor the attorney generalship But Dut to appoint him would be to provoke a n new w White House versus senate battle which would approach the Supreme court enlargement fight in bitterness and popular interest in in- terest Moreover the President would be committing himself in advance advance ad ad- vance in this battle batUe to the side which if one is 11 to accept the political political political cal verdict on Capitol Hill Bill is un Un- popular It is generally agreed among politicians poll poli here that the biggest surprise surprise sur sur- prise of this years year's primaries and elections was the reaction of the voters to C. C I. I O. O and the sit down strike The first Important manifestation manifestation tation wai was the Texas primary It cropped out in various other primaries primaries maries but then the verdict became became be be- came confused with the Ohio primary primary mary where C. C I. I 0 O.'s Os most hated governor Martin L. L Davey was de fea tested ted Sit Down Strike Victories Turned Into Inlo Defeats De The confusion was complicated by bythe bythe bythe the fact that Gov Charles Charlea II H. H Mar Mar- tin was defeated in Oregon after a vigorous fight by C. C I I. I 0 O. and blasts by Secretary Harold L. L Ickes But the election changed the Impression Im Im- Impression given by the Oregon and Ohio primaries Sit down strike political political po victories as the primaries had been regarded were turned into bitter defeats defeaU by by the overwhelming overwhelming over over- whelming triumph of the Republicans cans In these two gubernatorial bat ties This added to the Impressive failure fall fail ure of the C. C I I. I 0 O. O to roll roU up big majorities In Detroit and Flint when Governor Murphy was being mowed down by the Michigan voters ll drove most politicians politician to agree that Vice President John Nance Garner was as everlastingly right when he denounced de the sympathetic attitude o othe of the administration towards sit sit- it- it down strikes as bad politics C 0 western Newspaper Union bloat |