Evening star., 1936-02-18

he contended, are soil erosion ana
reforestation. He added that the
soil erosion and reforestation pro-
grams also are connected with the
question of navigation. because
without them there would come a
time when navigation would cease"
The moving of families and crea-
ton of villages by T. v. A., he de-
clared, were all essential to construc-
ton of the dams, which he said the
court had upheld. The verdict he
continued, makes his proposal for
a similar valley authority in the Mis-
sissippi constitutional beyond doubt, |"
but added he still believed the power
of the court should be curbed.
Senator Dickinson of Iowa, Re-
publican presidential aSpirant, was the
only New Deal foe willing to COM
ment, others remaining silent pend
ing further study of the opinion.
Dickinson declared many Govern
ment activities in the valley had not
been passed upon, and also said the
decision left no constitutional ground
for the gigantic Passamaquoddy tide
harnessing project in Maine. The lat
ter, he asserted, is entirely a power
project"
President Pleased.
President Roosevelt, although OBJ
viously pleased, had no comment for
publication.
Belief that the T. v. A ruling would
apply to the vast Bonneville, Grand
Coulee and Fort Peck projects in the
West was expressed by Frank r. Nc
Ninch, chairman of the Federal Power
Commission; Edward Foley. jr.. chief
counsel of the Public Works Admin
istration. and the two Democratic
Senators from Washington, Bone and
Schwelenbach.
In Florence, Ala, a community
vitally affected by the program, resi-
dents danced in the streets upon
learning of the decision.
Stock traders guessed wrong when
word was flashed that the decision
was being handed down. Expecting a
power company victory, there was
heavy buying Of utility shares. but
prices tumbled when the true nature
Of the decision was learned.
Use Of Power Delayed.
T. v. A. officials said that up to
now the shadow of constitutional
questions had delayed the sale of
power in many municipalities that
had already voted to take it. About
80 communities, including such cities
as Memphis, Chattanooga and Knox
vile, Tenn. have voted to purchase
T. v. A. power, officials said, but have
delayed signing contracts pending the
Supreme Court test.
The question of transmission lines
was the most important element of
the case. Opponents wanted to con-
fine the sale of power to the dam,
contending the Government could not
transmit it elsewhere and then sell it.
This contention was knocked out
by the courts assertion that the Gov
ernmen could not be denied the right
to seek wider market.
Opponents Find Consolation.
Opponents of T. v. A. drew some
consolation from the courts state
ment it did not deal with Govern
ment acquisition Of operation of local
or urban distribution systems"
But T. v. A. officials said this did
not disturb them since the whole pur-
pose Of the law was to sell power to
municipalities and cooperative groups
of farmers, and that it did not con-
template retail distribution.
The court avoided reference to
President Roosevelt's "yardstick pol
ICY designed to test the reasonable.
ness of private utility rates. Many
observers believed, however, that the
decision was sufficiently broad to
enable him to carry out this purpose.
Decision Limited.
The court said its decision was spe-
ciflcally limited to "the case before
us" and that it was not passing upon
ANY other dam or power develop
ment in the Tennessee Valley"
This was construed as leaving the
door open to court tests of other
projects, although New Dealers said
the opinion gives them ample ground
for repelling any new attack.
The decision was the second New
Deal victory in nine Supreme Court
tests, the other being in the gold
clause cases year ago.
Position Of McReynolds.
Justice McReynolds was the lone
dissenter.
"If under the thin mask of dis
posing of property" he said. "the
United States can enter the business
of generating, transmitting and SELL
ing power as, when and wherever some
board may specify, with the definite
design to accomplish ends wholly be-
yond the sphere marked out for
them by the Constitution. an easy
way has been found for breaking down
the limitations heretofore supposed to
guarantee protection against aggres-
SION"
The court split 5-4 on the question
of the right of the minority stockhold-
ers of the Alabama Power Co. to bring
the suit. The minority, Justices Bian-
deis, Roberts, Stone and Cardozo, con-
tended the compliments had failed to
show they were In imminent danger of
being irreparably damaged.
The comrlainants sought an In
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