The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-02-21

8. There is nothing in the con-
stitution that says the govern
ment can sell only part Of the
electrical energy developed at
dams and must throw the rest
away.
The court made it clear that it
was not passing at this time on
sale Of electricity at other dams
constructed or projected on the
Tennessee river in which questions
other than those decided today
may be involved.
HELD
roo AHEAD SIGNAL
But jubilant IVA supporters to-
night gleefully hailed the ruling
as an unequivocal "go ahead" on
the power program.
One of the fundamental prin-
ciples Of the broad Tennessee val
ley development program is that
it may be financed from the sale
Of power developed at the dams.
Had the court held this to be un-
constitutional, the heart OF the
project would have been crushed.
With the IVA in such an eventu-
atty, probably would have gone
other government power projects,
including Grand coulee and Bonnie
vile, in the northwest on the Col
umbia river; Fort Peck, on the
Missouri in Montana; Boulder dam
the Colorado river development
and the little "TVA" in Nebraska.
SEE GOVERNMENT
IN BUSINESS
Big utilities have fought IVA
on the ground that it was the first
step toward naturalization Of the
electrical industry. This viewpoint
was partly supported by Mercy
nolds today as he said bitterly
that the adverse ruling of the late
Federal Judge William /. Grub
in Alabama should have been up
held.
of under the thin mask of dis
posing Of property, the United
States can enter the business of
generating, transmitting and sell
ing power, as when and where
ever, some board may specify,
with the definite design to accom-
plish ends wholly beyond the
sphere marked out for them by
the constitution" said Mercy
holds, ian easy way has been
found for breaking down the linn
itations heretofore supposed to
guarantee protection against ag-
ression."
ANOTHER
SEPARATE OPINION
An opinion concurring in the
conclusion Of the majority but
holding that George AshwandeI
and other minority stockholders
Of the Alabama Power Co. had nc
legal right to bring the challenge
to iva because they could not
show that they had been irrepar-
ably damaged, was signed by
Justices Louis D. Brandies, Har,
Ian F. Stone, Owen J. Roberts
and Benjamin N. Cardozza. The
four held that the opinion of thC
court Of appeals reversing The
Grub decision should have beer
Ashwander challenge.
No comment on the opinion
came from the White House anC
the IVA officially had nothing tx
say. Edward ]. Foley, chief coun
sci Of the public works admins
tration, however, said the decision
gave the administration unques
toned authority to expand it
power program.
Shouts Of approval came from
two men who guided the destinie
Of IVA through congress-Sena
tor George w. Norris, republican
Nebraska, and Representative Johl
Rankin, democrat, Mississippi.
NORRIS IS
DELIGHTED
Said Norris: ''I am delighted
I'd have been heartbroken if tn
decision had gone the other way
I've thought though, that If con
gress ever passed a measure tia
was surely constitutional this wa
it."
Norris had conducted a runnin
attack on the court since its AAl
invalidation opinion and has dc
manded that the powers of til
tribunal be sharply curtailed.
"I never had the slightest dout
Of it." said Rankin. He charge
the iva challenge was brought b
the power trust and was a
"insidious attempt to mislead tn
supreme court on one of the mo:
vital questions that ever has com