The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-06

The whole scheme of AAA
crop control and reduction.
The Bankhead cotton act.
The Kerr Smith tobacco
act.
The newly enacted potato
control law.
Only by constitutional amend
ment did it Immediately appear pos
sible for the New Deal to repair the
gaping hole rent in its recovery
structure.
AS q breathless audience listened
in the -pillared courtroom,
Justice Roberts, speaking with only
a glance or two at his opinion, con-
demned the AAA as "a statutary
plan to regulate and control agri-
cultural production, a matter be-
yond the powers delegated to the
Federal government"
"1nvades Rights of States"
Not a listener in the quiet ele-
gance of the chamber was in doubt
of the significance of the opinion as
Justice Roberts, with rising voice,
said:
1.-The tax, the appropriation of
the funds raised the direction for
their disbursement. are but part
of the plan. They are but means to
an unconstitutional end.
1.-The act invades the reserved
rights of the states"
The courts decision placed a
crushing financial burden upon the
Administration OH the very day that
President Roosevelt, with optimism,
submitted a 1897 budget. that was
within balance, except for relief ex-
penditures.
Chief Executive Smiles
It meant that the government is
obligated according to latest AAA
estimates to pay 5000 100000 which
it has contracted to give to farmers
under the AAA crop scheme. To
meet the payment, it must find some
new form of taxes as the whole
system of processing levies under
AAA was swept away.
In addition it meant loss of some
5000 100000 impounded in Federal
courts pending the Supreme Court
ruling.
President Roosevelt met the sit
uation with a smile.
Roosevelt Gust Smiled"
Secretary of War George Dern
was with President Roosevelt when
the news was received in the execu-
tive offices.
He just held the sheet of paper
in front of him on his desk" Mr..
Dern reported, and smiled"
Officially, the White House re-
ported mo comment"
In spite of the sweeping nature of
the decision, Agriculture Depart
ment officials chung to hope that
some substitute measure might be
evolved.
They had been prepared, at least
partially, for such ruling and have
been studying substitutes for weeks.
New taxes will certainly be sought
to replace the lost processing levies.
A drive for a constitutional amend
ment to permit such form of con-
troll may be launched. This, how
ever, would take many weeks.
There was some hope that form
of state AAA organizations, roughly
similar to grants-in-aid now made
by the Federal government for state
road systems might be tried.
Reverberations Anticipated
The decision was considered the
most important in political signifi-
canoe since the Civil War.
Briefs and arguments submitted
during consideration of the case
showed the deepest sort of cleavage
between the industrial attackers
and farm defenders of the AAA.
Reverberations over the courts
decision we're expected to sound
furiously through the coming poli.-
ical campaigns.
The issue of constitutional
amendment was regarded as an al
most inevitable outcome. although
the exact form it would take was
uncertain.
The court based it's decision on
the finding that AAA was an in
yaSiOn Of the right of the states If
also held that the plan itself was
in itself not voluntary"
Substitute Bills Ready
1t was planned by Administrator
leaders to submit substitute legisla-
ton to Congress without delay to
replace the AAA to whatever extent