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GOVERNMENT CORPOR
APPROPRIATION BILL |

HEARINGS

BEFORE THE

SUBCOMMITTEE OF TH

U.S. Congress, Senate.

COMMITTEE ON APPROPRI
UNITED STATES SENA

SEVENTY-NINTH CONGRES

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SUBCOMMITTEE OF THE COMMIT

KENNETH MCKELLAR, Te

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THURSDAY, JUNE 20, 1946

UNITED STATES

SUBCOMMITTEE OF THE COMMITTEE ON APP

The subcommittee met at 10:30 a. m., Hon. (chairman) presiding.

Present: Senators McKellar and Ball.

TENNESSEE VALLEY AUTHO

LETTER FROM CHAIRMAN OF TVA REQUESTING

The CHAIRMAN. The subcommittee will be in or
The first thing I want to do is put in the recor
Lilienthal dated June 18, 1946.
(The letter is as follows:)

Hon. KENNETH MCKELLAR,

TENNESSEE VAI
Knoxville,

Chairman, Subcommittee in Charge of the
Government Corporations Appropriation Bill,
Senate Office Building,

DEAR SENATOR MCKELLAR: We have just received your requesting the changes in the Government Corporations fiscal year 1947 as it passed the House of Representatives lutely necessary together with our reasons for the chan

On page 2, line 10, of the bill as passed by the House, that the Senate strike out $25,906,000 and insert $36,572 change we request; the bill in all other respects relating t mended in the President's Budget. This change would recommended by the TVA and approved by the President struction on the upper Holston projects. This increase provide $8,912,700 for gross expenditures and $1,000,000 f ments on the Watauga project on the Watauga River on to resume active construction in July 1946, and $753,300 on the South Holston project on the South Holston River o land purchases, and other work would be done preparat construction in the spring of 1948. The schedule on whi based contemplates completion of Watauga in the summer Holston in the summer of 1951. Complete information these projects, their importance for flood control and ulti the schedule for their construction is fully presented in and the testimony of TVA witnesses in the hearings bef mittee on Appropriations for Government Corporations. Since your committee has this information before it emphasizes the desire to speed action on this measure a are not requesting the committee's time for a hearing

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appear or to supply additional informat wish us to do so.

STATEMENT OF DAVID E. LILIENTE OF DIRECTORS, TENNESSEE VALL BY GORDON R. CLAPP, GENERAL ENGINEER; G. O. WESSENAUER, BASS, CHIEF CONSERVATION ENG BUDGET OFFICER; J. C. SWIDL MARGUERITE OWEN, WASHINGT

AMOUNT OF RESTORAT

The CHAIRMAN. All right, Mr. Lil first.

Mr. LILIENTHAL. Senator, and mer glad of an opportunity to appear in committee for the purpose of asking $10,666,000 as indicated in the letter mittee has just put into the record.

This amount, which provides for work on the so-called upper Holston the bill as passed by the House. We work be resumed and we have here ou Blee, who will be very glad to ind detail the committee is prepared to go be done.

The CHAIRMAN. We will call on there are some general questions that I

Jack CONSTRUCTION SCHEDULE FOR WATAUGA

As I understood your House testimo the larger portion for the Watauga I Mr. LILIENTHAL. That is right.

The CHAIRMAN. And only a small] Dam. Now, what is the state of co dams? We appropriated the money fi worked on it until the war, and the want to go on with the dam but you stand it.

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What I would like to have you do, done, is that the two dams should be sible. Have you any objection to that!

Mr. LILIENTHAL. No. We want to possible. We recommended that we st because of the considerable savings in schedules. Mr. Blee is here to explain the schedule proposed. thing

The CHAIRMAN. We will get his stat ask some questions first.

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HISTORY OF RECOMMENDATION FOR DOUGI

Do you recall that you first recommended the you thought that it would be better to build instead of these dams?

Mr. LILIENTHAL. Yes, sir.

The CHAIRMAN. I believe the House put the Do we agreed to it, or did we agree to it first?

Mr. LILIENTHAL. I do not recall the details but I you stated it is correct.

The CHAIRMAN. Incidentally, that is the only da in the House, of all these dams; is that correct? Mr. LILIENTHAL. I do not recall, but I think tha The CHAIRMAN. That is my recollection.

COMPLETION FAVORED OF WATAUGA AND SOUTH

Now, whatever the past is, you now want to com Mr. LILIENTHAL. Yes. These dams are part they are good projects. They are necessary project is the time to complete them.

The CHAIRMAN. I am glad to hear it.

NO TVA APPOINTMENTS RECOMMENDED BY SENA

In 1945 you were present before the committee question and I want to ask that question again, nov Did I ever recommend any human being to you ity, so far as you know, to hold any office in your position in your organization?

Mr. LILIENTHAL. Senator, so far as I can rec would recall, you have never urged the appointmen The CHAIRMAN. I am sure that is correct, and I for that statement.

Mr. LILIENTHAL. If there are any exceptions I be purely formal recommendations.

ITEMS ON WHICH VIEWPOINTS DIFFE

The CHAIRMAN. I want to ask you another que in any way, try to interfere with your internal a to have you pay your receipts into the Treasury of Mr. LILIENTHAL. Senator, if you mean person course, no.

The CHAIRMAN. Any interference?

Mr. LILIENTHAL. If you mean a difference in vi there have been some differences. They have bee to the Douglas Dam, to section 26, or similar m know.

The CHAIRMAN. What is section 26?

Mr. LILIENTHAL. It concerns TVA's financial, fi The CHAIRMAN. That is, paying your receipts of the United States.

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