The Waterbury Democrat., 1935-11-08
UTILITIES LAW
 WILL BE PUSHED
Despite Adverse Decision of Baltimore Judge; Off,
 ficials Not Worried
BY RONALD c. VAN TINE

BY RONALD c. VAN TINE United Press Staff Correspondent
 Washington, Nov. 8-UP0-The Roosevelt administration apparently determined to-day to proceed with enforcement of the Wheeler Ray burn utilities regulation act despite a smashing federal court decision declaring the entire law unconstitu- tional.
 The decision, whose drastic con- strictions had been totally unanti- cipated, brought yet another new deal measure into the limelight of an extended constitutionality fight already before the supreme court are tests of the Agricultural Adjust ment Act, the Bankhead cotton control act, and the Guffey act that created little MIRA for the bitu- minous coal industry.
 Government Not In Suit
 Whether the first adverse ruling against the utilities act will be c2r- ried to the supreme court will de- pend upon the choice of attorneys for Burco, Inc, the company which defended the law in the proceed ings before Federal Judge William c. Coleman of Baltimore. The gov- ernment technically was not party to the litigation, but Judge Cole mans sharply worded opinion wa, studied carefully by lawyers in the attorney generals office. While stunned by Judge Cole mans decision, new dealers indi- cated it would have little effect upon preparations by the securi- ties and exchange commission tc administer the act.
 Officials declined to comment or Judge Coleman's assertion that con- greSs was guilty of fragrant viola tion" Of its constitutional powers when it approved the law in the closing days of the last session, and explained that inasmuch as the government was not party to the test case, no appeal could be taken by it to the supreme court.
 Utilities Rejoice
 Meanwhile, utilities executives, who had fought bitterly to defeat the fegislatoin when it was before congress, hailed the decision as a boon to investors in utility securi- ties. Their jubiliation came at a time when the house rules commit tee announced plans to resume hearings next week in its investi- gation of lobbying for and against the act.
 Judge Coleman's ruling touched off spark of trading activity m the securities markets that was reminiscent of the boom days of 1929.
 In San Francisco, utilities stocks rose sharplyy on the curb exchange with American Telephone and Tele- graph company shares leading the way. The New York Stock Ex-- change which received the decision too late for any marked effect yes terday, is expected to ract sharp ly to-day.
 New Deal legal experts were pre- pairing defense of several other major acts in the Roosevelt program whn Judge Coleman read his opinion denouncing arbitrary" unreasonable" and "capricious" provisions of the utilities law.
 Not a Fair Test
 Administration officials refused to regard the Baltimore case as a Fair Test" of the Constitutionality of the law. Nevertheless, they par ticipated as "a friend of the court" and filed brief charging collision between all parties, including Burgo, Inc.
 In his decision, Judge Coleman found three separate instances in which congress has exceeded its au- thority:
 l. The commerce clause of the constitution was violated in that the application of the act could not be restricted to companies operating only in interstate commerce.
 2. There was an invalid use of the postal power in denying the use of the mails to companies not CO., operating under the act.
 3. Congress violated the require ments of the due process of law under the fifth constitution amend ment in that many provisions of the act are arbitrary.