Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-02-28
A.OPENSF|GHT.
ON COURT ATTACKS
New Deal Suffers Two
Blows From Federal
District Courts.
BY the Associated Press.

The New Deal marshaled It's legal
forces today to ward of a blow which
If 1t should gain the added strength
Of Supreme Court approval-would
topple much of N. r. AS vast struc-
ture into the dust.
The blow was the opinion, enunci-
ated by Federal Judge John P. Nields
of Delaware yesterday. that the Con-
stitution did not confer upon Con-
gress the power to regulate manu-
facture.
1t was reinforced by the ruling Of
Federal Judge Charles I. Dawson at
Louisville, KY, who declared that coal
mining Is an intra- State business;
that tntra-State business is beyond
the regulatory power of Congress, and
that therefore the national industrial
recovery act as applied to coal Is un-
constitutional.
New Deal view opposed.
Much of the New Deal is based on
the idea that If a business affects
commerce between the States, Con-
gress can regulate it. But that view
met an obstacle in Judge Nields' fiat
statement that manufacture Is not
subject to such regulation.
In the course Of an opinion in
which he held section IA of N. I.
r. A. unconstitutional as applied to
the Weirton Steel Co., he said Su-
preme Court rulings demonstrated
that the Constitution did not give to
Congress the power to regulate manu-
facture." To regard Weirton'S manu-
featuring operation as instruments for
the interstate movement of goods. he
said. would put practically all Amer
lean manufacturing under the control
of the Federal Government, a result
which has received the unqualified
condemnation Of the Supreme Court. "
The Government plans an imme-
date appeal from Judge Dawson's de-
cision. It did not announce its plans
on Judge Nields' ruling, but Blackwell
Smith. counsel for the Recovery Ad-
ministration. left no doubt In OBJ
servers minds that it would combat
the idea expressed by the Delaware
judge.
Cummings Studies Decision.
Attorney General Cummings and q
staff of lawyers were studying the de-
cision.
Smith contended Judge Nields'
opinion was based on an "out-moded
theory" of constitutional law.
Most New Deal lawyers pinned
their hopes for an ultimate N. r. A.
victory on the power given Congress
to regulate interstate commerce by
this section of the Constitution:
1.-THE Congress shall have power
to regulate commerce with
foreign nations, and among the sew
eral States and with the Indian
tribes"
Although the Government failed to
convince Judge Nields that manufac-
turing is step in interstate COM
merce, N. r. AS legal chief evidenced
confidence that the Supreme Court
will rule differently.
ct seems to me that there Is no
cause for concern on this count in
view of the realistic appreciation Of
modern industry and commerce shown
by the Supreme Court in recent de-
cisions, particularly the Appalachian
Goals case" Smith said.
He referred to the Supreme Courts
decision In 1888 that Appalachian
Goals. Inc, q marketing organization
formed by operators in Southern
fields, could be organized without vio-
lation Of antitrust laws.
The courts opinion in that case,
written by Chief Justice Hughes, said:
when industry is grievously hurt,
when producing concerns fail. when
unemployment mounts and commune
ties dependent upon profitable pro-
duction are Frustrated, the wheels Of
commerce 60 dry"
Judge Nields' decision was praised
by q spokesman for the National
Association Of Manufacturers and de-
nounced by William Green, president
Of the American Federation of Labor
This decision will promote rational
employment relations" said James A.
Emery. general counsel for the Manu-
facturers' Association.
Labor cannot accept the decision"
said Green.
There was speculation on Capitol
Hill as to the possible effect Of the
decisions on renewal Of N. r. A.. in
Line with President Roosevelt's desires.
and on demands in the Senate for
one big investigation Of the Recovery
Administration before any new law Is
enacted