Evening star., 1935-10-14
A. A. A. AND 7. VA.
ACCEPTED
BYSUPREME COURT
Decision on Processing Tax
Is Expected by
Christmas.
MOONEY is REBUFFED
IN HIS LATEST PLEA
Opinions on New Deal Measures
May Have Significance on
Farm and Power Policies.
BULLETIN.

BULLETIN.
The Supreme Court of the
United States today refused to re-
view the case of the Park Savings
Bank, as requested by its depoSitors
and John F. Moran, receiver.
Counsel for the depositors imme-
diately after the decision said the
case will now be remanded for fur
ther action to the District Supreme
Court, which will enter final de-
cree on both phases of the LA
bility alleged against the directors.
The Supreme Court today consented
to review the constitutionality of the
agriculture adjustment act and the
Tennessee Valley legislation-two OF
the Administrators most important
legislative experiments.
At the same time. the court re-
fused to consider the latest habeas
corpus proceedings filed by Thomas
]. Mooney. serving a life sentence for
alleged participation in the bombing
of the San Francisco Preparedness
day parade in 1916.
The agriculture adjustment case
was brought before the Supreme
Court In a suit by the HooSac Mills
to test the validity of agricultural
processing taxes. The Government in
this case is asking the Supreme Court
to reverse decision of the Boston
Circuit Court of Appeals invalidating
the processing taxes
Repercussion Seen.
The decision on this point is ex-
| pected to have far-reaching economic
and political significance. since many
New Deal adherentS believe an un-
favorable ruling may precipitate ar
attempt TO amend the Constitution.
The processing taxes are imposed
under the act to pay benefits to farm
ers participating in A. A. A. crop
adjustment programs. If the taxes
are declared unconstitutional, many
believe the President will ask Congress
to enact new general tax legislation
to finance the administrations pro-
gram.
A. A. A. officials have expressed a
desire to expedite the hearing on
this case, and there is a strong prob
ability the Supreme Courts decision
will be announced by Christmas.
Power Policy at Stake.
The future of the Governments ex-
pertinent in power production will be
determined by the decision in the Ten
nessee Valley Authority case. The
constitutionality of the legislation has
been challenged by stockholders OF the
Alabama Power Co. who contend there
is no constitutional authority permit
ting T. " A. to acquire transmission
lines for selling power to municipali-
ties.
The New Orleans Circuit Court has
upheld the constitutionality of the act.
The Alabama case is regarded as
a test for scores of other suits filed
by private power companies through
out the country. The latter attacked
the right of P. w. A. to lend money
to municipalities for construction of
electric light and power plants which
will compete with private concerns.
The power companies say their very
existence is threatened by the Fed
eral participation in power generation
and distribution.
MONEYS petition asked that his
habeas corpus proceedings now pend
ing in the California State Supreme
Court be transferred to the Supreme
Court of the United States.
Charges Witnesses Ignored.
He asserted the California court
had refused to hear his witnesses and
had delegated that judicial duty to a
referee.
MONEYS case has attracted Nation
wide attention because of his repeated
efforts to secure his freedom. He
contends he was convicted by perjured
testimony secured by State officials.
and says some of those who testified
against him have admitted their teSti-
mony was false. The Supreme Court
once before refused to pass upon his
case.
After announcing its decision con-
cerning petitions for review of cases
and admitting several more attorneys
to practice, the court began hearing
its first argument of the year in an
estate tax case.
Gold Case Turned Down.
Other opening day work of the
court included:
Permitted plan of reorganization
under which the Allegheny Corp, a
Van Sweringen holding company, ar
ranged before its recent auction to
(See REVIEWS, Page 81