Evening star., 1934-01-19
Cites Decisions That Only
Court May Fix Compensa-
ton for Seized Property.
QUOTES FROM SAME CASE
SUBMITTED BY CUMMINGS
Passage of Bill by Tuesday Is
Held Imperative to Aid
Refnancing.
By the Associated Press.

by the Associated Press
A challenge of the constitutionality
OF the Roosevelt dollar devaluation bill
was given to the Senate today by Sen
ator Glass, Democrat, of Virginia. as
the administration speeded efforts to
obtain enactment of the legislation by
Tuesday.
The outspoken Virginian, who was
Secretary of the Treasury in the Will
son administration and rejected the
same position with MI. Roosevelt, as
serted that Attorney General Cum
mings, in upholding the constitution
atty of the measure. had omitted Su-
preme Court decisions pertinent to the
question.
The administration earlier had passed
the word that passage of the measure
by Tuesday was imperative" because of
refinancing operations to be undertaken
soon.
Amendments Looming.
After conferring with President
Roosevelt and Secretary Morgenthau,
Chairman Somers of the House Coin
age Committee told newspaper men
some amendments were under cOnsld-
Grafton and left no doubt that one was
to ease the requirements ON public re-
ports of the operation of the proposed
S200O,000,000 stabilization fund.
TOO many reports to Congress- he
said, might defeat our purpose"
Increasing fluctuation in the dollar
on the foreign exchange was another
reason for administration haste to get
y, tra1 10 ir7t0
In response to inquiries, Somers said
he did not favor making the stabiliza-
ton fund temporary proposition.
Glass Cites Decisions.
Glass, in a memorandum placed in
the Congressional Record, cited two Su-
preme Court decisions which, he said,
held that the fixing of compensation for
property seized by the Government is
judicial and not legislative function.
Pointing out that though the bill is
being considered in secret executive
session" of the Senate Banking Commit
tee Cummings opinion upholding the
constitutionality of seizing the Federal
Reserve gold had been made public.
Glass said he wanted to place in the
record some statements bearing on the
question which the attorney, I sup
pose inadvertently, omitted
He said Cummings had referred to
the case of the Monangahela Naviga-
ton Co. against the United States, but
had omitted very vital" part of the
Supreme Courts decision holding that
Congress could decide what property
could be taken by the Government, but
not the compensation.
Function Held Judicial.
Glass read from the decision state
ment that ''the Legislature may deter
mine what private property is needed"
by the Government, "but when the TAX
ing has been ordered then the amount
of compensation is judicial matter
and mot legislative function"
The Virginian also cited decision
in the case of the United States VS..
the New River Colleries. saying the
entertainments of compensation is a
judicial function and no power exists in
any other department of the Govern
ment to declare what the compensation
shall be"
The House agreed to meet at III
o'clock tomorrow, an hour earlier than
usual. to hasten passage Of the bill
Both Senate and House committees
prepared for hearings this afternoon
on the legislation, and House Demo-
Gratis hope to pass the measure tomor-
row and send it on to the Senate Tor
enactment early next week Repupncan
Representatives however, were prepar-
ing amendments which might cause
delay.
In connection with Secretary Nor
genthaus statement to Ma!orlty ;sated neaae5
ByrnS urging speed, 1t was pointed
out that the Treasury has an $50 0OO,-
600 certificate issue maturing Wednes-
off this is COrnDara-
lively small sum, congressional leaders
said the new bill would facilitate
reflnancing.
Byrns told reporters cit is costing
the United states s2,coo,O0O a day
for every day this bill is delayed
He referred to increasing value OF
the dollar in relation to foreign cur
rencies, holding that every point rise
in the dollar costs American citizens
100000 day.
Predicts Quick Action.
He predicted that when the bill
was brought up on the House floor
tomorrow it would be passed without
any amendments except those offered
by the Coinage Committee"
The Coinage Committee yesterday
amended the bill so as to require that
the Secretary of the Treasury report
to the President on operations OF the
huge fund. A..
SThe more I think about that, the
more I become disinclined to agree
that the Secretary should report to
any one" Somers told reporters.
He then indicated he might ask the
committee to reconsider its previous
action. l..
"The dollar went up again today in
london" Somers said. IT'S going to
be up to 10 cents by the time this bill
is passed. We've got to hurry. now, to
get our stabilization fund into opera
ton"
Somers said he thought it was neces,
sary for absolute secrecy 70 surround
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