Milford chronicle., 1936-12-11

DNaAA NeAoG - AGNtu VII
The Supreme Court delivered a
blow Monday at a certain kind OF
price slashing.
II upheld state legislation which
prevents retailers from selling stan
dard articles at prices less than the
figures fixed by manufacturers on
the articles.
In unanimous decisions delivered
by Justice Sutherland, the tribunal
held that these fair trade" measures
enacted by California and Illinois
were constitutional. Nine other
states-IOwa, Ohio, Maryland, New
Jersey, New York, Oregon, Pennsyl-
vania, Washington, and Wisconsin,
have similar statutes.
Sutherland said the sole purpose"
of the laws was Ito afford a legiti-
mate remedy for an injury to the
good will which results from the use
Of trademarks, brands or Names"
Il Other Decisions
Fifteen other decisions were an
nOunced by the high court. all except
one being by unanimous vote.
Though five New Deal controversies
are pending, only one of these was
decided on Monday
In that dispute, the justices di-
rected the Federal District Court for
the District OF Columbia to deter
mine again whether it should hold
up trial of litigation challenging the
cOnstitutiOnality of the public utility
holding company act until a test
case brought by the Department of
Justice against the Electric Bond
and Chare Company is further ad-
Vanced
Pending a plea by the govern
ment, the district court had de-
question. but was reversed by the
District of Columbia Court of APP
peals.
REORGANIZATION Ordered
Justice CardoZO, delivering the
opinion, said the district court had |
acted Il year ago and should re-eX-
anime conditions as they are at |
present. The government, in asking |
for the delay. sought TO avoid what !
it called flood OF complicated and .
expensive suits"
In another ruling the court up /
held a new method of determining
telephone rates. 1t stipulated that .
properties purchased by telephone (
companies shall be entered on the .
companies books at Original cost"
instead OF prudent investment" fig (
ures. Telephone rates would then .
be based on the Original cost" fig .
ures.
A., o,do, Ia, tbo U1odoroI OOv,v,,,
nicatiOns Commission, providing for
the Original cost" figures, had been
attacked by the American Telephone
and Telegraph Company, and other
concerns.
The only opinion not unanimous
upheld, an act of Congress permit
ting government employees and pen
siOners to serve as jurors in the
District Of Columbia in minor cases
in which the United States was
litigant. Justices MCReynOlds, Suth
erland, and Butler dissented.
Justice Stone. i'll with dysentery
since October 18th, did not partici-
pate in any of the cases.
Review Refused
Before starting on another two
weeks of arguments. the court re-
fused to review for the time being
Two attacks on the cOnstitutiOnality
Of the 1886 act broadening federal
of commodity exchanges.
IN the fair trade" decisions. JUS
lice Sutherland said there was moth
ing in the legislation Ito preclude
he purchaser from removing the
mark or brand from the commodity
thus separating the physical prop
,rty, which he owns, from the good
will. which is the property OF an
then selling the COM
modify at his own price. provided he
can do so without utilizing the good
will of the latter as an aid to the
end"
The California act was challenged
by a corporation known as THE
Pep Boys. Nanny, Moe and Jack of
and by Clarence Kuns-
man. operator of a Beverly Hills
lrug store. The Illinois law was
lssailed by the Old Dearborn Dis
ributing Company and McNeils
4iuuOr Store of Chicago.