Evening star., 1934-12-11
NEW DEAL MEETS
HIGH COURT TEST
Presidents Code Making
Powers Probed by Su.
preme Justices.
~ the Associated Press.

~ the Associated Press.
The first New Deal national legisla-
ton to be argued before the Supreme
Court Of the United States-the oil
code-yesterday attracted the keen at
tention of the members Of the bench.
Both liberal and conservative justices
manifested disposition to inquire
searchingly into the authority. or lack
of authority, of the President to ne
gotiate and proclaim codes.
The oil legislation is only q section
Of the national industrial recovery act,
but the National Recovery Admins
tration, itself, rests upon code making.
For q time the listeners In the
crowded court room thought they
might be listening to an anti-climax.
Harold M. Stephens, Assistant Attor-
ney General, SAID with a rueful smile
that j. w. Smith and five other oil
producers from the Texas field had
been indicted for violating a section
OF the oil code which did not exist.
Flaw Laid to Oversight.
Stephens explained that, through an
oversight, production Of oil in excess
VI IllC 4uOOdo SAAdA &c oSdiAAoo
the companies-had not been declared
q violation of the code.
This inadvertence was remedied last
September, but the Government filed
suits against the oil concerns before
then. Rugged Justice McReynolds of
Tennessee and others asked whether
the Government had any case at all.
Stephens argued. however, that the
constitutionality of the section of the
national industrial recovery act was
directly at issue He said other regu-
lations Of the oil code were involved.
The justices let Stephens proceed
and the Interpretation was that the
court would decide the cases on their
merits.
Justices Argue, Too.
In that case, the court would rule
on the central issue involved in the
law and the regulations under 1.-THE
right of the Federal Government to
control oil production.
The justices did almost as much
arguing and commenting as Stephens
and j. N. Saye, counsel for the Amazon
Petroleum Corp, one of the five con-
Germs involved.
Justice Brandeis commented that In
the delegation of authority by Con-
eress to make codes there had been
no provision requiring the President to
act on any findings Of fact or after a
hearing.
Chief Justice Hughes said:
1.-THE President is required to make
no findings of facts, or to adhere to
any particular standard in making the
codes"
Legal Sufficiency Doubted.
He added that in the oil code the
President declared that excess pro-
duction shall not be permitted to move
in interstate commerce for whatever
reasons he may deem sufficient."
The questions asked indicated that
some Of the justices, at least, doubted
whether Congress In the oil bill and
perhaps N. l. r. A.. itself. had laid
down a proper legal yardstick for the
President to follow.
Stephens, however, insisted that
"certain facts" were required before
the President could approve codes.
Brandeis, a leader Of the courts
liberal group, said also there was no
official publication Of the codes avail
able to the public generally to advise
them what was in the pacts.
Another Measure ON Docket.
McReynolds said the court In prior
decisions had ruled the Government
had no authority to control production
In the States.
The Government counsel said that
Federal authorities had the right to
regulate intrastate commerce where II
directly affected interstate.
The court earlier put another New
Deal measure, the law setting up N
r. A., itself, on its docket yesterday
for decision by consenting to review q
case based on the code for the motor
retail trade.
A three-judge Federal court had up
held the code and Spielman Motor
Sales Co., Inc, of New York, which
challenged the agreement and the
law. appealed.