The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-20
|NjRISYS ruling ON
farm DEBT ACT NOT
WORRYING SPONSORS
Administration Feels Soundness
Adequately Tested Before
June Enactment
|BILL THOROUGHLY STUDIED
Decision Draws Fire From Lem.
Ike; Declares Judge Cor
poration Minded

washington, Sept. 20.-(F)-The
farm mortgage moratorium amend
nent-passed by congress and ap-
proved by the president amid argu-
ment over Observation-Disclosures
dav apparently was headed for a SUI
preme court test.
The amendment to the national
bankruptcy act was held unconstitu-
tional Wednesday in a finding by a
United States District Judge, w. CAL
vim Chestnut, ct Baltimore.
One OF the co-authors OF the
amendment, Senator Frazier (Rep.,
N d. was on record. even before the
Chestnut ruling, as believing an
early decision would be requested Of
the supreme court. The district court
decision, based upon dismissal Of petit
tons filed by two Maryland farmers.
vas looked upon rs starting the case
along the route to the high court.
Confident Bill Is Sound
Administration officials were rep
resented as feeling that the sound
ness of the Ffazier-Iemke farm
mortgage moratorium act was ade-
quately determined before it got
President Roosevelt's last-minute APP
prevail last June.
The measure was placed in the
statutes only after considerable study
| BY various officials. Among others
mr.. Roosevelt asked Attorney General
Cummings for his opinion on 1t.
The executive, who approved the
legislation, for which veto had been
anticipated In many quarters, only
shortly before the 10 days grace per-
iod after congress adjourned had ex-
PRED. conceded 1t was loosely worded
in some respects and would have to
be amended by the next congress.
Nevertheless" said Mr.. Roosevelt
at that time, the reasons for signing
II far outweigh the arguments on the
other side"
Lemke Criticizes Decision
The decision OF a Baltimore judge
drew q critical comment from Con-
|gressman william Lemke Of Fargo.
IN. D., co-author Of the bill.
Lemke was In Des Moines to ad-
dress meeting Of the Iowa Farmers
union.
The amendment Is constitutional"
lemke declared. 1T has been so held
BY the judiciary committee Of the
house consisting Of Is lawyers includ-
ling some Of the ablest in this nation.
1T was held constitutional by the
judiciary committee OF the senate.
the attorney general, the attorneys
Of the department Of justice, the law
yers Of the Farm Credit admins
tration and the attorneys for the de.
partments Of the treasury and agri-
Culture"
Lemke helped to draft the amend
ment passed by congress last June
land known Is the Frazier-Lemke
amendment.
Court Cooperation Minded
Apparently this particular court
Is very corporation minded" Lemke
said.
The court apparently has over
looked the fact that under the pro-
visions Of Section IS Of the act only
a farmer who Is irsolvent under the
definition Of the bankruptcy act can
take advantage Of the amendment,
ne declared.
1T has overlooked the fact that the
Constitution gives full and complete
power-not partial-in bankruptcy
cases. It has overlooked-or appar-
ertly doesn't understand that when
you 90 into bankruptcy all contracts
are abrogated. merged into the BANK
rIptcy proceedings.
The court apparently has not read
the bill-otherwise it would not talk
about confiscation when the bill pro-
v!des the debtor shall turn over TO tne
control Of the court all his past
efforts and accumulations and tnat
the court keeps control until the IAN
value Is paid for"
Lemke described the amendment Is
"stop-gap until the Fra1er-Lemhe
refinancing oct Is passed"