only two Party members so far. This is not an accurate reflection of our strength, however, as we have many more people in that mill who can be brought into the Party and who will be brought into the Party during the membership campaign. It was possible for me to speak to a group of fifteen of the aluminum workers in the name of the Party very recently, and to play some small part in helping to stop the movement toward a company union. "Individual members of the Party are known to the trade union leadership here and among the progressives. We have some influence, but owing to the semilegal position of the Party our activities do not as yet come to the attention of the workers in such a way as to either attract them to join the Party or to show them that the leadership of the Party is their guarantee that their interests will be best defended by following our Party. Our Party has at the present time representation in the CLU"-meaning Central Labor Union-"and the CIO central bodies. That we have not utilized this membership to advance the position of our Party is due to the newness of our comrades and their inex perience, but more largely due to the failure of the County Committee to organize careful fraction work and to give it the necessary leadership. "Our literature does not get sufficient circulation among non-Party people, but we are taking hold of this problem in an organized way. There are special difficulties in the way of circulating Party press, pamphlets, etc., in the South. It is too complicated. I would like to recommend the election of a special literature commission for the entire southern region that would supervise the rewriting of certain valuable pamphlets in the vocabulary of the Southern worker, as well as pay particular attention to the circulation of leaflets in the name of the Party on particular local issues, always bringing out clearly the role, the special role, of the Communist Party in each leaflet. "Comrade Foster spoke of the need for expanding the work of our Party schools, and this is an imperative necessity. We have too few cadres in local situations. Our small towns do not have any real local leadership when we go into them. We build the Party and are then forced to drive our developed people constantly simply to hold our organizations together. An immediate corrective for this would be schools, short term schools, to which we could send our most capable comrades, where they could get training in the fundamentals of Marxism, etc.: where they could give some undivided time to becoming familiar with the international aspects of our work and our program. "Our work for Spain has been very weak and reflects to a considerable extent the preoccupation with the task of building the Party apparatus to the exclusion of sufficient attention to this task. Our County Committee, as well as our whole Party, has given too little attention to Spain. A Spanish Committee has been formed out of a group formerly attending a Marxist-Leninist discussion class. With the exception of the Party members, and even some of the Party members, knowledge of the conditions of Spain reflected to a large extent the opinions handed out in the bourgeois press. We have asked for a joint committee with the Socialist Party here, and the Socialist comrades have responded favorably. Unity between Socialists and Communists and joint action for the defense of Spanish Democracy is now an established fact. Some liberals have been drawn onto this committee, but not into activity. This is not enough. The trade unions must be drawn into this activity; must be made conscious of the need for their support for Spain. All municipal and cultural organizations must be drawn into this activity. Conscious of its role as the leadership of this movement, the County Committee has the accomplishment of these tasks as an immediate objec tive. The plans of this committee as they now stand are to have a showing of ones of the movies on Spain, to have a speak appeal for funds and membership in the Committee at the showing of this film, to advertise an organized second meeting, and to gain the affiliation of as many trade union groups and individuals as possible. It will be our effort to make this group into the spearhead of the anti-fascist movement in this region. "This brief report represents the activities of the Party in the Knoxville area. We are building the Party, taking steps to build the movement around the Party and to bring the Party and all progressive people into activity that will advance the cause of the people's front and the struggle for socialism. Our County Committee has functioned for six weeks, and the best thing that can be said for the Party in this area is that the County Committee now has an understanding of the problems before the Party here and a definite plan for overcoming the problems of building the Party, extending our literature circulation, and all the other tasks that will help us to take our place in the forefront of the struggle for the People's Front and for Socialism. K. Malcom, organizer, Communist Party of Knox County." EXHIBIT No. 17 UNITED STATES ATOMIC ENERGY COMMISSION, To: Mr. Fred B. Rhodes, Jr., executive director, Joint Congressional Committee on Atomic Energy. From: Mr. Joseph Volpe, Jr., deputy general counsel. Subject: Senator McKellar's suggestion for correction of record with reference to testimony by Mrs. Leitzell, On Wednesday, February 26, Senator McKellar asked the committee to correct the record to show that Mrs. Leitzell gave testimony on the salaries paid to her, Mr. Swidler, and Mr. Booth. I have checked this matter with the stenographer and others who were present when Mrs. Leitzell testified, and as well against my own notes. I am certain that Mrs. Leitzell's only reference to compensation was with respect to the amount paid Mr. Lilienthal. This appears on page 1409 of the transcript. We ask that the figures furnished by Senator McKellar be stricken from the record, * EXHIBIT No. 18 Tennessee Valley Authority-Power transactions with Alabama Power Co. and Carolina Power & Light Co., June 16, 1933, to June 30, 1946 There has been no interchange with Alabama Power Co., as such, but the foregoing transactions with Alabama Power Co. are exclusive of sale and interchange transactions with Commonwealth & Southern Corp. for the benefit of all its southeastern subsidiaries, including Alabama Power Co. No power has been delivered to Carolina Power & Light Co. by sale or interchange. EXHIBIT No. 19 STATEMENT CONCERNING YOUNG & RUBICAM CONTRACT TVA did enter into a contract with Young & Rubicam for consultant services. Approximately $10,000 was paid under this contract to Young & Rubicam. The contract was for the benefit of the Electric Home and Farm Authority. EXHIBIT No. 20 Tennessee Valley Authority-Net income from power operations, June 16, 1933, TVA has interconnections and interchange agreements with all the principal utility systems serving areas adjacent to the Tennessee Valley; these interconnections are used for purposes of mutual protection of service and for purposes of economy. During the fiscal year 1946, TVA delivered nearly 1,624,000,000 kilowatt-hours to other systems and received 215,000,000 kilowatt-hours. Deliveries of energy to neighboring power systems were considerably greater in fiscal 1916 than in any previous year. This was true both with regard to firm sales and deliveries under interchange arrangements. Sales to electric utilities totaled 730,000,000 kilowatt-hours as compared with 550,000,000 kilowatthours in the preceding year, and billed interchange deliveries to other power systems totaled approximately 1,400,000.000 kilowatt-hours as compared with 640,000,000 kilowatt-hours in 1944, the previous record year. Because of their volume, the interchange deliveries were an important means of disposing of much of the surplus hydroelectric energy which was made available by the combination of the temporary drop in the area's power requirements at the end of the war and the favorable stream flow conditions during the spring of 1946. During the war, interchange transactions have involved, for the most part, steamenergy generation in one area in lieu of generation by less economical steam power plants in another area. After the first 2 months of the fiscal year 1946, however, most of TVA's interchange transaction represented the delivery of surplus TVA hydroenergy to replace steam energy. The purpose of these agreements is to permit increased efficiency in the operation of the systems of the contracting parties by permitting each to use the capacity of the other which would otherwise be idle or to secure power from a more economical source than would be available on its own system. The Authority has entered into such agreements from the beginning, and has consistently followed the practice of strengthening its interconnections with neighboring systems and exchanging surplus power whenever such arrangments would increase the Government's revenues or reduce its expenses. This type of arangement is expressly authorized by section 12 of the Tennessee Valley Authority Act in the following language: ** the Board is hereby authorized to enter into contracts with other power systems for the mutual exchange of unused excess power upon suitable terms, for the conservation of stored water, and as an emergency or break-down relief." * * All firm power sales agreements with neighboring utilities are cancelable with notice, for periods not exceeding 5 years, thereby enabling the growth of load in the TVA power service area to reclaim export power as needed. CORRESPONDENCE Correspondence in reference to testimony appearing on pages 481 and 748 of these hearings: Hon. EDWIN C. JOHNSON, HUBBARD & CARR, Miami 32, Fla., February 26, 1947. United States Senate, Washington, D. C. DEAR SENATOR JOHNSON: According to press reports, Senator Hickenlooper, chairman of the Senate Committee on Atomic Energy, is going to cite me for perjury as a result of alleged false statements made by me to the committee regarding a story which appeared in the Knoxville Journal in 1943. I do not think that you, Senator Johnson, would believe that I would knowingly testify falsely before a committee of the Senate and I would greatly appreciate your courtesy if you would, as a member of the committee, if the committee decides to go into the matter further, see that I am given an opportunity to appear and explain any apparent contradictory testimony. Very sincerely yours, P. S.-I plan to be here about 2 weeks longer. ROBERT B. BARKER. FEBRUARY 28, 1947. Mr. ROBERT B. BARKER, Care Hubbard & Sarr, Attorneys at Law, Miami 32, Fla. DEAR BARKER: As I understand it, you testified under oath that you did not take the Hart letter to either of the Knoxville newspapers and both claim they received copies from you. Several members of the committee are reported to think that you wrote the Hart letter and planted it. I have formed no opinion and like to believe that you and all men are truthful and honest and above trickery, but there is something very peculiar about that letter which needs clearing up. With kind regard, I am, Sincerely, ED. C. JOHNSON, HUBBARD & Carr, Via air mail-special delivery. Hon. EDWIN C. JOHNSON, United S'ates Sonate, Washington, D. C. Miami 32, Fla., March 3, 1947. MY DEAR SENATOR JOHNSON: Thanks for your letter of the 28th. I am thankful I wrote you because you are certainly in error regarding testimony that I gave both Knoxville newspapers the Hart letter. The Knoxville Journal, a Republican newspaper, published the Hart letter first on June 27, 1943. The story did not state from whom they got the information. I understand now that the committee has testimony from a newspaperman in Washington to the effect that they got the letter from me. One month after the Knoxville Journal printed the Hart letter the Knoxville News-Sentinel, the rival local paper (New Dealer-100 percent pro-TVA), investigated the Knoxville Journal story by contacting Robert E. Stripling, chief investigator for the Dies committee in Washington, on July 26, 1913, who verified the Knoxville Journal story of a month earlier and allowed the News-Sentinel to see the files, gave them copies of records and documents, including the Hart letter, all of which they thereupon published. The photostat of the Hart letter had to be in the Dies committee files then or the News-Sentinel would have exposed the whole matter as a fraud. The News-Sentinel story quotes Mr. Stripling directly on the matter. This occurred 60 days after I returned papers to the Dies committee, which Mr. Stripling says he loaned me in testimony he gave before the Public Works Committee on the C'app nomination, Fehrary 8 (vol. 9). I attach hereto photostat of the News-Sentinel story of July 26 1942, so you can see for yourself what they found in the Dies files and what Mr. Stripling said. The photostat is in evidence in the hearings before the Public Works Committee, together with telegrams from Senator McKellar to the editor of the News-Sentinel and his reply. Lt. Ollie Osborne of the Birmingham police department testified before the Atomic Committee that he was with me when we got the Hart letter, read it, commented on it, went with me to have photostat made of same and then accompanied me back to Communist Party offices in the Clark Building, Birmingham, in April 1940, when we put it back in the files. Lieutenant Osborne further testified that sometime later he saw Martin Dies and Robert Stripling, his chief investigator in Birmingham together and discussed the matter with them. Lieutenant Osborne's testimony is in volume 13 of the hearings. Please read it Senator Johnson. Even Henry Hart in his testimony voluntarily stated to the committee, in your absence, Senator Johnson, that somebody could have planted the letter in the Communist Party headquarters in 1939. Now there had to be some definite proof of communism in the TVA in April 1940 to warrant Martin Dies sending me 500 miles from Washington to make an undercover investigation of this governmental agency for a whole month; almost immediately after Lieutenant Osborne and I had procured the Hart letter from the Communist Party files, when the Government Department in Washington were loaded with Communists right under the nose of the Dies committee! Dies had blasted the Government Departments in Washington on the floor and in the press time and again. Former Congressman Starnes' statements to your committee that the investigation was ordered because of a local taxicab strike and a dispute between the A. F. of L. and the CIO over a labor union, is ridiculous! The taxi strike was in 1938 and the labor-union dispute occurred even earlier, 1937, and was too remote, disconnected with TVA and both had been dormant for years. Some testimony taken in June 1940, after the investigation in April and May 1940, had been completed, showed that TVA employees and Communists were in on these strikes, but that fact was unknown to Mr. Starnes or any member of the Dies committee. until the hearings started in Washington in June 1940 and witnesses from Knoxville were heard. As a matter of fact, I am certain that Joe Starnes never knew an investiga tion was being conducted of TVA until it was completed because he would have objected to it for the reason he had many friends in TVA and has, since the present hearings started, gone all out for both Messrs Clapp and Lilienthal. Senator Johnson, Mr. Robert E. Stripling of the Dies Committee is a very bitter enemy of mine and would do almost anything to injure me. If you have no time to check this testimony, please have your assistant or somebody do it. It is highly important to me. Very sincerely yours, ROBERT B. BARKER. Correspondence in reference to testimony appearing on p. of these hearings: SECRETARY, ATOMIC ENERGY COMMISSION, Washington, D. C. ST. PAUL'S RECTORY, Richmond, Va., March 1, 1947. DEAR SIR: Since on behalf of the Catholic committee of the South I gave testimony on behalf of Mr. Lilienthal, I have been worried about my answer to Mr. McKellar's question. He asked if I believed that Mr. Lilienthal had been the engineer of all the dams in the TVA. My answer should have been, "No." I answered, "Yes," thinking that he meant engineer as a synonym in that case for General Director. Please change my answer. Gratefully yours, Rev. THOS. E. O. CONNELL, The following correspondence was submitted by the chairman of the committee: HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D. C., February 25, 1947. Hon. BOURKE B. HICKENLOOPER, Chairman, Joint Congressional Committee on Atomic Energy, DEAR MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE: We, the undersigned Members of Congress from Kentucky, having watched with deep interest the |