Evening star., 1936-11-10
JUSTICES TO HEAR
POWERLOAN CASE
Riqht of Government to Fur.
nish Money for Project
!@ Studied.

Reaching a question that will have
q vital affect on the activities OF the
Tennessee Valley Authority, the Su-
preme Court today began hearing ar
guments on the right of the Govern
ment to furnish money for publicly
owned hydro-electric projects.
The case before the court was
brought by the Duke Power Co.. which
has contested the Governments right
to make a S2,852 900 loan and grant
to Greenwood County. S. c., for a
public hydro-electric project at Bug
zard Roost.
Newton D. Baker, former Secretary
of War, appeared to argue for the
power company, while Solicitor Cen
eral Stanley Reed and Jerome Frank,
special assistant to the Attorney Cen
eral, represented the Government.
The Circuit Court OF Appeals at
Charlotte, N. c.. upheld the legality of
the loan and grant.
Arguments Heard.
After deciding some 20 cases yes
terday and agreeing to review three
new attacks on the legality of the
Wagner labor relations act. the Su-
preme Court heard arguments grow
ing out of the New Deals public hold
ing company law.
The labor relations appeals involved
cases lost by the Government in the
lower courts against the Jones &
Laughlin Steel Corp. of Pittsburgh,
the Fruehauf Trailer Co. of Canton.
Clothing Co., Inc.
The court already had agreed to
pass on suits by the Associated Press
and the Washington, Virginia &
Maryland Coach Co. attacking the
labor legislation. In these cases.
however, the Labor Relations Board
won in the lower courts. Arguments
In all five cases will be heard to-
gether, probably in December, with a
decision due in January or February.
Extradition Refused.
Among the more important decisions
yesterday was one refusing the extra
dition to France of the three Nei-
decker brothers-B. Coles, George w.
and Aubrey-Wanted by the French
authorities on charges of larceny and
other offenSes in connection with the
closing OF their Travellers Bank In
Paris.
The justices held native born Amer
fcan citizens could not be extradited
to Frence under the treaty of 1909
The opinion was delivered by Chief
Justice Hughes.
The court divided. six to two, AS
sociate Justice Stone being i'll and
taking no part in the decisions. in
holding a section of Iowa's chain
store tax law unconstitutional. The
law imposed a graduated levy on
gross receipts. Justices Brandeis and
Cardozo diSSented
A lower court ruding imposing a
$235,082 penalty on on William Fox,
movie producer, and directing his
imprisonment until he paid it, was
affirmed by the high court. The
penalty was imposed after Fox had
refused to obey a subpoena and was
adjudged in contempt in q suit
brought by a creditor.
Source Of Case.
The holding company cae grew out
Of the Governments attempt to post
pone action by lower tribunals on
number of cases challenging the con-
stitutionality of the public utility
holding company act until a final
decision Is reached in proceedings it
has filed against the Electric Bond
IL Share Co.
The Government said it wanted to
avoid flood of complicated and ex-
penSive suits by letting one decide
the issue. Solicitor General Stanley
Reed conducted the argument for the
Government, while John C. Higgins.
New York attorney, represented the
North American Co. and the Ameri-
can Waterworks & Electric Co.
The local Court OF Appeals had re-
fused to hold up trial of cases brought
by these companies, and the Govern
ment appealed from this refusal,