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19

INVESTIGATION OF THE
TENNESSEE VALLEY AUTHORITY

HEARINGS

BEFORE THE

JOINT COMMITTEE ON THE INVESTIGATION
OF THE TENNESSEE VALLEY AUTHORITY,

CONGRESS OF THE UNITED STATES

SEVENTY-FIFTH CONGRESS

THIRD SESSION

PURSUANT TO

Public Resolution No. 83

CREATING A SPECIAL JOINT CONGRESSIONAL COM-
MITTEE TO MAKE AN INVESTIGATION OF THE

TENNESSEE VALLEY AUTHORITY

PART 11
HELD AT WASHINGTON, D. C.
NOVEMBER 30, DECEMBER 1, 2, 3, 5, 1938

Printed for the use of the
Joint Committee on the Investigation of the Tennessee Valley Authority

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CONGRESS OF THE UNITED STATES

Joint COMMITTEE ON THE INVESTIGATION OF THE TENNESSEE VALLEY AUTHORITY

VIO DONAHEY, Senator from Ohio, Chairman
FRED H. BROWN, Senator from New Hampshire
H. H. SCHWARTZ, Senator from Wyoming
LYNN J. FRAZIER, Senator from North Dakota
JAMES J. DAVIS, Senator from Pennsylvania
JAMES M, MEAD, Senator from New York
EWING THOMASON, Representative from Texas
THOMAS A. JENKINS, Representative from Ohio
CHARLES A. WOLVERTON, Representative from New Jersey
GRAHAM A. BARDEN, Representative from North Carolina

W.0. HEFFERNAN, Secretary
FRANCIS BIDDLE, General Counsel
T. A. PANTER, Chief Engineer

II

12139

WITNESSES

Testimony of

Matchett, Francis T..
Morgan, Arthur E...
Owen, William A.
Parker, Col. Theodore B.
Tulloss, Stuart B..
Woodward, Sherman M.

Page 4548, 4578, 4619, 4656

4808, 4827, 4851 4548, 4578, 4619, 4656 4694, 4709, 4748, 4791 4548, 4578, 4619, 4656

5035, 5048

ARRANGED CHRONOLOGICALLY
November 30, 1938 (morning session)

Testimony of: Tulloss, Stuart B.-resumed.
Testimony of: Owen, William A.

Testimony of: Matchett, Francis T.
November 30, 1938 (afternoon session).

Testimony of: Tulloss, Stuart B.-resumed.
Testimony of: Owen, William A.-resumed.

Testimony of: Matchett, Francis T.-resumed.
December 1, 1938 (morning session).

Testimony of: Tulloss, Stuart B.-resumed
Testimony of: Owen, William A.-resumed..

Testimony of: Matchett, Francis T.--resumed.
December 1, 1938 (afternoon session)

Testimony of: Tolloss, Stuart B.-resumed.
Testimony of: Owen, William A.-resumed.
Testimony of: Matchett, Francis T.--resumed.

Testimony of: Parker, Col. Theodore B.
December 2, 1938 (morning session).

Testimony of: Parker, Col. Theodore B.-resumed.
December 2, 1938 (afternoon session)-.-.
Testimony of: Parker, Col. Theodore B.

-resumed December 3, 1938 (morning session) --

Testimony of: Parker, Col. Theodore B.---resumed.

Testimony of: Morgan, Arthur E. resumed.. December 3, 1938 (afternoon session).

Testimony of: Morgan, Arthur E.-resumed.. December 5, 1938 (morning session)

Testimony of: Morgan, Arthur E.-resumed.

Testimony of: Woodward, Sherman M. December 5, 1938 (afternoon session)-

Testimony of: Woodward, Sherman M. -resumed.

4547 4548 4548 4548 4578 4578 4578 4578 4619 4619 4619 4619 4655 4656 4656 4656 4694 4709 4709 4748 4748 4791 4791 4808 4826 4827 4851 4851 5035 5048 5048

III

TABLE OF CONTENTS

Page

Testimony of Stuart B. Tulloss-resumed, with testimony of William A.

Owen and Francis T. Matchett..

4548-4618

(A) Criticisms contained in the 1934 General Accounting Office audit

report.--

4548–4606

1. Sums spent by Tennessee Valley Authority in repairing

plant leased to the Alabama Power Co.

4548-4552

2. Distribution of overhead expense---

4552-4557

3. Accounting for expenditures of other agencies in con-

nection with work done in cooperation with Tennessee

Valley Authority-

4557–4562

4. Relationship between Tennessee Valley Authority and

various cooperative associations ..

4562-4570

5. Mississippi Power Co. purchase-- 4570-4571, 4578-4584

6. Tennessee Valley Authority depreciation policy in

regard to Wilson Dam..

4571-4578

7. Exceptions taken by the General Accounting Office... 4584

8. Basis on which exceptions were made.-

4585, 4594

9. Position of the General Accounting Office as to letting

contracts.

4586

10. Reasons for the Tennessee Valley Authority refusing

certain bids.

4587

11. Provisions of section 3709, Revised Statutes, and

explanation of same..

4589

12. Position of the Tennessee Valley Authority re section

3709, Revised Statutes.--

4595

13. Criticisms of specific Tennessee Valley Authority pur-

chases...

4597-4600, 4604-4606

(B) Statement as to lack of any finding of fraud or corruption in

Tennessee Valley Authority by General Accounting Office. 4601-4604

(C) Status of General Accounting Office audit and exceptions.-- 4606–4610

(D) Statement of exceptions in 1937 annual report of Comptroller

General to Congress-

4611-4614

(E) Prior release of 1934 audit report to private individuals before

it was made to Congress.

4614-4617

Testimony of Stuart B. Tulloss, William A. Owen, and Francis T.

Matchett resumed..

4619-4694

(A) Status of General Accounting Office exceptions to Tennessee

Valley Authority payments, as of June 15, 1938..

4619

4621, 4638–4639

(B) Cost-plus contracts

4621-4623

(C) General Accounting Office preauditing methods..

4623–4628

(D) Tennessee Valley Authority expenditures for books, newspapers,

and periodicals. -

4628-4630

(E) Views of witnesses concerning necessity of prior approval by

Attorney General of title to lands purchased by Tennessee

Valley Authority -

4630-4633

(F) Application of Economy Act provisions to Tennessee Valley

Authority.

4633-4638

(G) Effect of amendments contained in act of August 31, 1935, on

Tennessee Valley Authority purchasing policy

4640–4642

(H) Tennessee Valley Authority cattle purchases -

4642-4645

(1) Tennessee Valley Authority expenditures for medical services - 1646-

4654

(J) Rentals of Tennessee Valley Authority owned houses at Norris

and elsewhere..

4654-4658

(K) Management of stores and other services at Norris.

4658–4661

(L) Prices paid by Tennessee Valley Authority for automobiles. 4661-4665

V

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