Evening star., 1935-12-18
HIGH COURT HEARS
5 LAWS DEBATED
Swelling Tide of New Deal
Litigation Reaches
New High.
Hx the Aasociatsd Prssa. /.


cation in the Supreme Court reached
new high yesterday as that tn
bunal:
i. Heard concluding arguments In
the attack by eight Louisiana rice
millers on validity Of A. A. A. amend
ments passed last August.
2. Received q request to review the
constitutionality Of the securities act
of 1888.
3. Turned its attention to the suit
brought by the Alabama Power Co. to
test the legality Of President Roose-
velt's "yardstick policy" as embodied
in T. V. A.
The A. A. A. amendments. through
which Congress tried to ratify actions
Of the Secretary Of Agriculture to
meet objections raised in the N r. A.
decision, were submitted to the nine
justices after final pela for their
constitutional justification.
Frank j. Wideman, Assistant Attor-
ney General, told the court A. A. A.
was a Legislative enactment within
the Constitution, based on the use Of
revenue and cooperation to bring
about a Nationwide economic bal
ance."
Injunction Is Urged.
He spoke for an hour after John P.
Burlington, counsel for the rice millers,
had urged again that an injunction be
granted to restrain the Government
from collecting processing taxes until
validity Of the act has been deter
mined.
After Burlington had asserted an
injunction to prevent collection Of the
taxes was necessary because "the Gov
eminent can withdraw its consent to
be sued" Chief Justice Hughes told
him the court must assume Congress
would pay any judgment obtained
against the collector Of internal rev.
enue.
Otherwise" said the Chief Justice,
government breaks down."
Widemar defended the provision of
the amendments requiring professors
to show they had not passed the taxes
on to the consumers or back to pro-
ducers before being allowed to sue for
recovery.
Homer L. Bruce, also appearing for
the rice miilers, said farmers, under
the A. A. A., had to accept Govern
ment contracts to control production
in return for benefit payments.
"The farmer who Is in gets a
bonus" inquired Justice Sutherland,
"and the one who is out does not?"
That's right" Bruce replied.
The A. A. A. and its amendments
are generally regarded as the most
vital Of the New Deal measures up for
review. 1t is believed an unfavorable
decision would make controlled pro-
duction the leading political issue in
1886 and might result in new taxes to
pay the benefits that have been swell
ing the farmers pocketbook
The attack by Hoosac Mills On the
original A. A. A, the Amendments and
the Bankhead cotton control act al
ready are under consideration by the
court and may be decided early next
month. ...-
]. Edward Jones, New York securi-
ties dealer, submitted the request for
review of the new securities law. The
court probably will grant or refuse
his request January c or Is.
Unlimited Powers" Seen.
Through his attorneys. James NJ.
Beck and Bainbridge Colby, Jones
called the law IAN attempt to invest
in the National Government new and
virtually unlimited powers of regula-
ton over the minutest details Of the
business and affairs of men who issue,
purchase and sell securities"
He said the law violated States
rights and delegated power unconsti-
tutionally to Government board. The
Government. 1t vas indicated, may
JOIN in the request for q review in the
bsllef the law will be upheld.
Several months ago Jones filed with
the Securities and Exchange Commits
sion q plan for q $l00, 900 issue of Sc
curitieS. After the commission had
questioned the truth and fullness Of
information in the application, he
sought to withdraw the plan, but the
commission fought this attempt.
There followed series of legal moves
in lower courts, which ruled against
Jones.
The Alabama Power Co. told the
Supreme Court in q brief filed yes
terday that its existence and buSi-
ness in its entirety" we're threatened
by the Governments Tennessee VAL
| ley activities.
Earlier the city Of Florence, Ala,
contended it had right to construct
a municipal system to use electricity
supplied by T. v. A.
Their briefs were presented as a
prelude to argument tomorrow before
the high tribunal on validity Of leg
islation intended to establish "a yard
stick" to measure the proper cost Of
power.