The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-05-19
CONSTITUTIONAL
ISSUE IS REVIVED
BY GUFFEY UPSET
Coal Act Upset Is Termed
Challenge to Carry
Test to Voters.
LABOR MAPS SHOWDOWN
Wagner Act Also Doomed,
Far-Reaching Verdict
Indicates.
BY LYLE c. WILSON
United Press Staff Correspondent

WASHINGTON, May 49,
Supreme Court invalidation
of the Guffey Coal Control
Act challenged President
Roosevelt today to carry the
issue of constitutional amend
ment to the people in the
presidential campaign. The
decision pointed toward po-
litical and economic conse-
quences.
Mr.. Roosevelt may reveal New
Deal strategy at his regular press
conference at 3p. m. indianapolis
time).
LABOR leaders already were PLAN
ming pressure for a campaign year
showdown on constitutional limita-
tions defined by the courts proscrib-
ing Federal regulation of hours,
wages and industrial competitive
conditions generally.
Little NRA" Theory Lost
There was talk in the capital to-
day of possible trouble in the mine
fields. Congressional leaders doubt
ed time would permit patching the
Guffey bill at this session. Lawyers
believe the court blasted beyond re-
pair the Little MIRA" theory of
Federal individual industry control.
There were expressions of hope, also.
that coal control can be achieved
voluntarily.
Scrapping of the Wagner Labor
Relations Act on the Guffey prece-
dent was judged to be only a mat
ter of time. Down with the Guffey
bill went most of the hope of those
who projected legislation to regulate
other individual industries or who
believed Federal 3O-hour- work
week program could be bomb-proof-
ed against high court attack.
The hectic search for a coal con-
troll method to replace the outlawed
Guffey Act today turned to the
minority Supreme Court opinion of
Justice Benjamin NJ Cardozo.
This hint came after hours of
study and conference, participated
in by coal union leaders, operators.
representatives. government officials
and congressional figures.
No Public Comment
No public comment was made inn
mediately, however, by any of the
comforting groups. The prospect re-
NAMED strong that no legal way
would be found around the bars
placed by the high tribunal and that
the issue might be carried into the
national elections.
The ray of encouragement shed by
study of the Cardozo opinion was
found in its discussion of the validity
OF the acts price-fixing provisions
in interstate commerce. This view
OF the three dissenters was shared
by Chief Justice Charles Evans
Hughes, who agreed, however, with
the general findings of the majority.
The New Deal money-raising pro-
gram took another jolt in the Cuff
fey decision. Mr.. Roosevelt had
budgeted for $18,9O0O00 CM) from
coal taxes during the current and
next fiscal years. The sum in
volved is small compared with the
wealth denied the Treasury when
agricultural adjustment was out
lawed but it moves the budget out
of balance little more.
Budget Deficit Boosted
So far, $674, 1893 has been collected
in coal taxes. The Treasury Is
studying the decision to determine
whether this sum would be legally
refunded to mine operators. Secre-
tary of Treasury Henry Morgenthau
Jr. testified recently that New Deal
expenditures, the cost of the bonus
and failure TO collect AAA process
ing taxes probably would boost the
budget deficit to a new high.
Coincident with the Guffey bill
reverse-which brought the New
Deal Supreme Court score to nine
losses against two victories-the
District of Columbia Court of APP
peals outlawed one of DR.. Rexford
@. TugwelPs rural resettlemens
projects at Bound Brook, N. ].
The decision jeopardized similar
projects involving land purchase.
Lawyers said, however, that the 1895
S4.OO0,000.000 relief appropriation
Turn 10 D.