Evening star., 1934-11-06
COURT WILL RULE
ON GOLD CLAUSE
Hiqhest Tribunal SuStains
New Deal Price Fixing
in Milk Case.

The Supreme Court of the United
States Yesterday sustained one piece
Of New Deal State legislation and
agreed to decide the validity Of the
action removing gold from circula-
ton.
The New Deal case involved the
fixing of maximum prices for milk by
the state of New York. The Hege-
man Farms Corp, of that State,
brought suit contending that the
spread between the price at which 1t
was forced to buy and sell its milk
was not sufficient to give it a fair
margin of profit. The court unanl-
mously sustained the State.
IF the price is not raised" said
the opinion, the reason must be
that efficient operators find that tney
can get along without a change
Either that must be so or else the
industry will perish. The bill does
not suggest that such a catastrophe
is imminent.
"Sman Dealer May Suffer"
"True, Of course, it IS that the
weaker members of the group-tne
marginal operator, or even others
above the margin-may find them
selves unable to keep pace with tne
stronger, but it is their comparative
ineficiency, not tyrannical compul-
sion. that makes them laggards In
the race.
THE smaller dealer may suffer
but the small producer may be
helped, and an industry vital to the
State thus rescued from extinction.
The gold act, on which the court
promised to rule, suspended payment
of contractual obligations in gold, re-
pardless of whether such payment
was stipulated in the contract. The
present case involves the 30-year gold
first mortgage bonds of the st. LOUIS
Iron Mountain & Southern Railway
The highest court agreed to take II
out of the hands of the appellate
courts for decision on the statement
from Solicitor General Biggs that
the financial stability of the Ma
tional Government may be affected
by the determination of this great
issue"
Long Must Stand Trial.
''Succinctly stated" Mr.. Biggs said
"the issue is this: Are all obligations
to be discharged at the rate OF Sl.6s
for each 81 borrowed"
The court held that Senator Huey P
Long of Louisiana was not exempt
from service of civil process while at
tending sessions of the Congress, ano
that he must stand trial in a libel
action brought against him by Brig
Gen. Samuel r Ansell, whom he is
alleged to have called "scoundrel
and thief" in copies of a speech mailed
to persons in and out of the District
1t also agreed to hear arguments on
the Tri-Ergon patent process, as to
the claims of William Fox. The
process is used in making talking pic
ture films, and its ownership is said
to involve millions of dollars. The
court had previously declined to dis
turb lower court decisions favoring
Fox.
Pension Case Decided.
The court ruled that capital gains
may be figured as net income for the
purpose of making charitable deduc-
tions in computing income tax re-
turns. 1t asserted Ohio Federal courts
had authority to decide the validity of
the abolishment of a widows pension
department by the Brotherhood of
Locomotive Firemen and Engineers.
BY declining to review lower court
decisions, the court Cd gave Cincin-
natl scent fare on the Cincinnati,
Newport & Covington Railway running
into Kentucky;
CD Upheld an Indiana law giving
the State the right to define non-in-
toxicating beverages as Intoxicating
for the purpose of regulating traffic
in the latter;
CD Upheld the fight of Federal
courts to name receivers in bankruptcy
and take from State officials property
In liquidation for the benefit of cred
itors;
"a Upheld California's right to re-
quire bond for the payment bf an
oil company of the State tax on gaso-
line;
go Declined to set aside fraud or
ders issued by the Post Office Depart
ment against Dr. Clayton E. Wheeler
self-styled gland specialist of San
Francisco and Los Angeles.
(6) Declined to limit the liability of
the Sabine Towing Co. of Port Arthur,
Tex, for the death of IA crew mem
bers OF the towboat Edgar P. Coney
which sank in 1890:
QO Declined to give John Barrymore
and Dolores Costello priority over other
creditors in obtaining their money
from the Guaranty Building and Loan
Association of Los Angeles.
The court also agreed to pass on the
validity of the Kentucky gross sales
tax law under which an annual levy is
assessed in the form of a license tax
on merchants with the fee figured on
the basis of gross sales.
Ask Increase in Paw.