The Washington times., 1934-10-09
MIRA SET PRICE
POLICY WINS
SUPPORT
BY WILLIAM S. NEAL

INTERNATIONAL NeWe service
A Supreme Court attack on one
Of the cardinal principles Of
emergency New Dear' legislation
fixing of minimum prices-ap-
peared to be collapSing in the
high court today.
The issue was raised by the
Hegeman Farms Corporation, ois-
tributor of milk in New York city,
in an attack on constitutionality
Of the price-fixing provisions Of
the New York State milk law as
applied to it.
While the high court at It's last
term upheld the law as valid, the
Hegeman Company contended
that it was unconStitutionally ap-
piled.
Loss Alleged
BY fixing a minimum price it
must pay farmers for milk and
minimum retail price in New
York city-which through conlpe-
tition became maximum price,
it was forced to operate at loss,
the company commended.
If a government fixes a mini
mum price the corporation must
pay, it also must fix a selling
price so that it can earn a fair
profit, the company contended.
With the case slated to be
taken under advisement today,
justices had already directed
critical questions to counsel. Both
Justices Butler and Brandeis,
who were on opposite sides in
the original decision, indicated
that a government has no obliga.
ton to assure firm Of a profit.
"YOu can go out of business,
can't yOu?" asked Justice But
Ter, when counsel for the Hege-
man Corporation cOntended
that the New York law forced
1t to operate at loss.
isn't the reason you suffer
because your competitors sell at
the minimum price?" asked
Justice BrandeiS.
Counsel for the milk corpora
tion-using an argument fire.
Quently directed against MIRA
asserted that big corporations
could stand a loss for a time
while the smaller companies
were being driven out of bust
No Precedent
Chief Justice Hughes asserted
that there was no finding by the
lower federal court covering the
point raised.
The Hegeman case had been
expected by some to furnish an
Illuminating decision on activities
of both NRA and the AAA.
In fixing minimum prices milk
distributors must pay farmers,
the AAA follows the New York
example. NRA, in fixing mini
mum wages and shorter hours,
also imposes conditions on bust
ness without guaranteeing a
retail price which will yield a
profit.
Critics of MIRA have asserted
that through this method it
has driven hundreds of small
business men out Of existence.
If the Supreme Coprt decision in
the New York milk case follows
the trend indicated in question
ing, legality Of this action
would be upheld.
Three Cases Reviewed
The high court, however, has
accepted for review three cases in
which New DEAL Federal legisla.
ton is under fire.
In accepting review of the Pan.
ANA and Amazon oil cases, the
high court is expected to decide on
conStitutionality of oil sections
of the National Recovery Act, the
code and orders of Secretary of In
terror Ickes as oil administrator.
ConStitutionality of the con-
gressional act abrogatlng the gold
clause in all bonds is questioned in
the appeal of Norman C. Norman,
which the court will review. Mr..
Norman demanded that the Balti-
more and Ohio Railroad pay bond
interest in gold or Its equivalent
which would be 40 per cent above
the amount stated IN the bond.