Evening star., 1935-02-24
Entire Program Seen En-
dangered by Decision
in T. v. A. Case.
PRESIDENT MUST CHART
COURSE, LEADERS SAY
Federal Right to Sell Direct to
Communities Must Be Defended
in U. S. Arguments.
BY THEODORE c. WALLEN.

tCOpyr1Rnt. 1851
Presidential advisers took counsel
together yesterday on means to seek
prompt removal of the shadow cast
on the Presidents power program. a
major phase of the New Deal. by
Judge William I. Grubb's decision in
the Federal District Court of Alabama
holding it unconstitutional for the
Federal Government to make electrical
energy for sale in competition with
private utilities.
1t was agreed that this decision
If upheld finally by the Supreme Court
of the United States, would render
useless much of the electrical gen.
Grating equipment planned not only
for the Tennessee Valley Authority,
but also for the Grand Coulee. Bon
neybille, Fort Peck and Casper -Alcova
Dam projects in the West and the
ultimate development of the st. Law
renee.
Several of the projects in this pro-
gram Of S250,000,000 or more are al
ready we'll under way Rather than
risk construction delays. it was con-
sideced advisable to take whatever
steps might be necessary to obtain an
early definitive decision from the Su-
preme Court. Responsible administra-
ton lawyers felt that it might take a
year or more to get final decision in
the normal course if the private power
interests should avail themselves of
all the devices at hand for delaying
the case.
May Ask Cooperation.
This brought up the question
whether the Roosevelt administration
should ask the private power interests
to join in steps to expedite decision.
High oficials felt that this would not
be inconsistent with the administra-
tion's sharp rejection of a similar
proposal less than two months ago
1t was pointed out that the inter-
vening decision OF Judge Grubb had
now put the New Deal definitely on
the defensive on this issue, whereas
previous participation by the admin
istration in such move would have
amounted to questioning the author
ity of Congress to enact legislation
which the President himself had
urged.
officials made it clear that the
course to be followed would have to
be charted by President Roosevelt on
the basis Of legal studies still in
complete. Among the many pro-
posals under consideration was one
to try to skip the Circuit Court of
Appeals and carry the case direct to
the Supreme Court. But even such
a plan, if found feasible, would fail
to bring a final decision before Fall.
it was felt, if then. unless docketed
before April IS.
While New Dealers disagreed on the
seriousness of the situation caused by
Judge Grubb's decision, following his
earlier decision holding the N. r. A.
unconstitutional, Senator George w.
Norris, Republican insurgent, of Ne
braSka, enthusiastic co-SponSor of the
multi-million T. v. A. program, de-
clared:
The effect Of this injunction is
practically to nullify the entire T. V.
A. act. I have no doubt but that the
decision will be reversed by the Su-
preme Court Otherwise the admins
tration will be deprived Of the yard
stick il plans to use as a measuring
rod and as level to force power
rates down"
Powers Ruled Out.
While Judge Grubb did not hold the
T. v. A. act itself was unconStitu-
tional, he ruled that the directors of
the authority had assumed powers not
granted them in the act. and that the
assumed powers were unconstitutional.
In effect. he said that the Govern
ment has not the privilege to enter
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