Evening star., 1935-03-15
THE EVENING WASHINGTON, FRIDAY,
400 Ne,u Deal Cases Heading
For Supreme Court Decision
Government Lawyers Worried by Threat
to Foundations of Ambitious
Plans of Roosevelt.

lions OF the corporation 90 not con-
stitute interstate commerce"
4. That industrial relations between
the corporation and its employees dc
not affect interstate commerce.
S. AS applied to the corporation's
manufacturing operations and its in
dustrial relations, section 7(a) is un-
constitutional and void because 1t Is
beyond the power of Congress to regu-
late these operations and relations
under the interstate commerce clause
or any other delegation of authority
in the Constitution.
In a suit filed against the Houde
Engineering Corp, the Government
raised again the issue of the company
union. This suit sought to compel
the corporation to recognize commit
tees of the United Automobile Workers
Federation Labor Union. No. 1889, as
exclusive collective bargaining agent
of its employees under section 7(a),
and to restrain the corporation from
bargaining collectively with a COM
mittee representing the Houde Welfare
and Athletic Association. The court
has made no decision in this case.
Criminal Case Pending.
A criminal case instituted under the
N. R. A. codes is pending before the
Supreme Court Known as the United
States versus William Ebert Belcher,
the proceedings arose out of an in
dictment returned last August in the
northern district of Alabama charging
violations of the lumber code as it
relates to minimum wages and maxi
mum hours of labor. The lower court
sustained the demurrer which attacked
the indictment on the ground that
the N. r. A. act is unconstitutional
because, first, it improperly delegates
legislative powers; second, 1t imposes
regulations without due process OF
law. and. third, it invades States
rights by going outside the interstate
commerce clause.
Exceedingly important are issues
raised in certain cases challenging the
constitutionality of processing, floor
stock and other taxes levied under
the A. A. A., the Bankhead cotton
control act, the Kerr-Smith tobacco
act and the silver purchase act.
The Government to date has COL
lected nearly three quarters of a bill
lion of taxes under these acts. and
by the time the cases are settled by
the Supreme Court the total of reve-
nues undoubtedly will pass the billion
mark. The gravity of these tax cases
therefore is obvious. The Government
must win them or suffer a blow OF
I inestimable consequences. The tax
! cases are being handled by the Justice
Departments Tax Division of which
Assistant Attorney General Frank J.
Wideman is the head.
A. A. A. Tax Outlined.
The most important of the tar
cases is the So-called Hoosac Mills
suit. attacking constitutionality of the
processing and floor stock taxes i'm
posed under the A. A. A. statute. The
Federal District Court in Boston, pre-
sided over by Judge Elisha Brewster
upheld the Government in the first
round, but the case was appealed to
the Circuit Court of Appeals and is
headed Tor the Supreme Court.
This is the first case raising as a
major issue the constitutionality OF
the A. A. A. taxes, and while it di-
rectly concerns less than $4,000 in
levies which receivers for the Hoosac
Mills have refused to pay, it affects
indirectly all A. A. A. taxes so far
collected by the Government. These
revenues are the backbone of the
administrations farm relief program
Six other cases touching on the
same questions as those in the Hoosac
Mills case are pending. Three are
in New England. one in Pennsylvania
one in New Jersey and one in Ala
bama.
Regulatory Tax at Issue.
Perhaps the most important of the
cotton act cases is Therrell vs. Fly. a
suit brought to enjoin the collection
OF taxes on ginning Of cotton under
the Bankhead act. This will come
10 trial next month in Mississippi
The taxes are aSasiled on the ground
that their purpose is not raising oi
revenue. but regulation of an intra-
state business. in violation of the
constitution.
The first case brought under the
kerr-Smith tobacco act. Penn Bros
VS.. Glenn. was tried last week before
Judge Dawson in Louisville. KY. His
decision has not been announced. The
case OF Motsinger vs. Robertson will
be heard next week in the Distric,
Court at Greensboro, N. c. No date
has been set for the third case, Ghol-
son VS.. Wallace ct al, In the middle
district Of Tennessee.
The one case questioning consu-
tutionality of the silver purchase act
is Hudson VS.. United States, pending
before the Court of Claims. The suit
attacks the Federal tax imposed on
transfers of silver bullion under the
statute enacted last year.