The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-04-05
new NRA TEST
IN COURT WILL
Be PREPARED
Believe Validity Can Be
Ruled on Before Present
Legislation Expires
Bv JOHN r. BEAL

WASHINGTON, April 5. (UP)
The department of justice an
nounced yesterday that it will ask
the supreme court at once to test
the fundamental principles of the
National Industrial Recovery Act
by applying for a review of a
complicated New York poultry
case.
The announcement came just as
Rep. E. E. Cox, Georgia DEM cat,
arose in the house to criticize the
government for avoiding test in
the Belcher lumber case.
The case to be used as a test
involves the A. L. A. Schechter
Poultry Corpn. The Schechter live
poultry market, and Joseph, Mar
tin, Alex and Aaron Schechter are
accused on 10 counts of criminal
violation of the NRA poultry code
in New York City.
A circuit court of appeals held
all defendants guilty of II counts
in the indictments, charging con-
spiracy to violate the poultry
code, sales contrary to code pro-
visions, and sales of diseased and
uninspected poultry. The court
ruled against the government,
however, in two counts alleging
violations of code wage and labor
provisions.
Recovery Board Chairman Don
aid R. Richberg said the Schechter
case presented a "test case ten
times the value of anything that
could be secured in a decision on
the Belcher case"
at sustains constitutionality of
MIRA right across the board" he
said.
To bring up the Schechter case,
the justice department will apply
to the supreme court for a writ Of
certiorari, which is simply tech
nical way of asking the court to
review it..
If the request is granted the
case may be heard in May. The
supreme courts last decision day
is June 8, and the present NRA
expires June 16. Thus congress
may have the benefit of court
ruling before it enacts new legis-
lation.
Lowell JASON, counsel to the
barrow board that reviewed al
legged monopolies under the NRA,
did Thursday what few would
have dared to do in the summer
Of 1888. He defended the So
called "chiseler."
Some business men branded
with this term, he indicated, have
been the consumers sole protec-
ton against high prices. He criti-
cized the steel, cement, ice and
coal codes as examples of the use
of codes to restrict production or
of the use of code authorities for
the benefit of restricted group.
He compared the NRA to a fascist
corporate state.
The fight over power policies
proceeded with David E. Lilien-
thai, IVA director, and Henry |.
Hartman, president of the United
States Chamber of Commerce,
presenting opposite views before
the house interstate commerce
committee considering the Ray
burn utility holding company bill.
Lilienthal asserted that electric
rates could be cut 35 to so per
cent - tomorrow" - if holding
companies were eliminated. Har-
riman urged elimination from the
bill of the provision proposing to
dissolve some utility holding COM
panies by 1910.
Lilienthal defended iva ac-
counting and rates, saying that lts
rates for the output of the Muscle
Shoals plans not only cover al
costs of producing the electricity
and transmitting it, but will per-
nit congress to salvage the gov
wartime investment
and pay back to the treasury
every penny that was invested.
Hartman favored reasonable
of holding companies
gradual and orderly rearrange-
ment of holding company owner,
ship into regional inter-connected
groups of not too great size, ana
federal regulation of interstate
electric transmission where sucA
regulation cannot be exercised by
the state. He proposed a series OF
nine amendments carrying out
this program.