Evening star., 1936-12-19
P. W. A. Loans to Subsidized
Power in Bush Territories

10 the Eoltof OF Inc Sthr-
One of the biggest issues today that
comes before the Supreme Court is the
question of the constitutionality of the
T. ". A. and the right of Federal agencies
to loan P. w. A. funds to further expand
the program of subsidized power in the
bush territories.
We hear a lot these days of the titanic
growth Of holding companies and are
called to witness Uncle Sam as the cham
pion Of the poor. Yet gas and electricity
have never been so cheap nor has any
other fuel successfully competed with
these two. Is it not possible that the
financial practices of these companies
should come under criticism rather than
their sales practices? 1t is in Wall Street
and not in Main street that corrective
measures should be taken.
If we carefully examine the two we
find that the question of constitutionality
Of T. v. A. and of p. w. A. loans closely
parallels the case of the now defunct
A. A. A.
Without doubt the triple A was un-
constitutional on the ground that it
taxed the people as a whole for the sup
port OF the few. The farmers were to re-
celve cash awards for the raising of no
potatoes, no wheat, no hogs and no cane
for sugar. In truth, it was bribe to
raise no political cain, as it was soon
discovered.
But who paid the A. A. A. tax? 1t was
the city consumers everywhere. In the
densely populated East the millions
poured out to pay idle farmers 1t was
a sales tax on the consumers pocketbook,
and that tax ran as high as 100 per cent.
Now where is the parallel between
power expansion in the South and West
under Federal funds and the now illegal
A. A. A.?
1t is just this: These funds that go to
build huge dams in the South and West
come from the centers of population and
wealth. These cash allotments come
from New England to further disrupt in
tributes to T. v. A. and similar loans is
subsidy to the removal of industry
from the North to the South. If manu-
featuring is cheaper in the South it may
be that Northern taxes collected from
these centers of population and wealth
60 far to relieve Southern taxpayers, who
at least know how to distribute P. w. A.
funds even If they make no such con-
tributions.
Now the T. v. A. must be illegal If it
taxes the majority of the people to en-
rich the minority, for most of these dams
for power are built in undeveloped areas.
II the A. A. A. was found unconstitu-
tional, then T. V. A. and the P. w. A.
"loans" must also be found illegal What
ever the decision of the Supreme Court,
one thing we must know in advance: ::
That any decision that is unfair to the
majority must in the end be revoked.
This Federal subsidy for the con-
struction of power dams is illegal. 1t is
a sop to the South that no manufacturer
in the North can ignore. What is now
going on in New England will soon 60
on in the Middle West. Factories will
be forced to move South in order to COM
pete.
But If we are looking to stabilize in
dustry, then such migration of industry
must be checked. And to check it we
must see to it that those who contribute
these taxes for T. V. A. have something
to say about the expenditure of such
taxes. Can the Supreme Court decide
otherwise? j. l.. TURNER.