The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-04-25
SOUTH CAROLINA JUDGE DECIDES
AGAINST SOCIALISM

AGAINST SOClALlSM
Judge H. H. Watkins of the federal court
in South Carolina has rendered decision
in the appeal of the Duke Power Company
in what is known as the Greenwood county
case and has enjoined that South Carolina
county from proceeding with the building
of a power plant with money supplied by
the federal government. Greenwood coun-
ty proposed to secure PWA funds for the
construction of plant to compete with the
Duke Company in that area and had Sc
cured an allotment of approximately three
million dollars of federal money to be used
for that purpose.
In rendering his decision in extensive de-
tail Judge Watkins held that the Duke
Company as a taxpayer had the right to
seek the Injunction because it's business
would be seriously injured by the construc-
ton of the proposed plant; that the pro
posed loan was not in compliance with the
act creating the Public Works Administra-
ton and that the Duke Company was right
in contending that the cost of the plant
would exceed the amount asked for and
appropriated by the government for its
construction; and that the proposed con-
tract between Greenwood county and the
PWA was unconstitutional.
Judge Watkins designated the proposed
plant as proprietary and not public en-
terprise; and ruled that it cannot be JUST
fed under the plea of interstate commerce,
as it would do a local business, confined to
South Carolina, and would be operated for
private purposes, selling large part OF
the power produced to one cotton mill.
The news story of the decision OF Judge
Watkins sums it up as follows
with respect to rates, he said that his opinion
was that the act creating the public works admin
istration was not intended to give to the President
and the Public Works administration the power to
regulate electrical rates by forcing companies, IL
respective of their ability to lower rates by
of publcly-owned utility plants.
s'He pointed out that there were other agencies
for the regulation of the charges made by utility
companies
"In the specific case he held the Duke Power
company and its subsidiary, the Southern Public
Utilities company, entitled to protection from
unfair competition il section in which they were
thoroughly equipped to meet the needs of cleo
tricity users and had millions of dollars invested
1.-THE proposed competition from the county
owned plant he said, would be unfair and illegal
Judge Watkins pointed out, however, that he
did not challenge the abstract rights of the govern
ment to build utilities to regulate rates but was
deciding the case on proprietary rights
HE said he followed the Interpretation of the
powers of the court as laid down by the late Chief
Justice Taft that government can not be changed
by judicial opinion, but that every guarantee OF
the constitution should be maintained and eyerv en-
croaehment be resisted"
The South Carolina decision adds an.
other to the growing list of adverse opir.
ions of the so-called New Deal policies
handed down by courts throughout the
country. The administration has beer slow
to go into the courts for tests of the con-
stitutionality of its schemes and expert
ments, knowing that most of them, ever
under all of the pressure than can be ex
erted by ballyhoo and propaganda AMI
presidential influence, cannot get by thi
NONAI LII AdSI, LuC duidiIAloL1 dllu tllS
Congress were aware of the fact, when th
federal legislation was enacted, that it wa
unconstitutional. 1t is a we'll known ant
publicly known fact that this legislation
cooked up by radical lawyers for the ad
mlnlstration, had as its first objective tht
clrcumyenting of the Constitution. It's au