The Washington times., 1936-01-06
SEVERE BLOW
IS DEALT TO
RAW DEAL
Sweeping De cision
Will Necessitate
Many Changes
CONTINUED from Page u

Tor non-Federal purposes when q
contract with the Government is
being carried out. Justice Roberts
said:
eff this legislation be valid
1t is apparent that it is valid
for Congress to regulate every
act of business within the
States"
Under the AAA, he said, Con-
greSS could have laid a tax on
farmers to pay to professors.
Cites NRA Decision
He referred to the Supreme
Court decision scuttling the NRA
and holding that Congress could
not regulate hours and wages.
If the AAA is sound, he said,
Congress could decide that there
are too many garment makers,
and levy taxes to control the in
dustry. (ThiS scheme Is involved
in the Guffey coal law and is
proposed in bills pending in Con-
greSS.)
Word of the decision was
flashed around the Capital and
created a sensation comparable
only to that of the NRA decision
and the courts decision in the
famous gold devaluation case.
At the White House there was
no comment, and Secretary OF
Agriculture Henry A. Wallace,
who has been the directing head
Of the AAA, declined to see news
paper men or to comment.
Republicans Laugh
Word Of the decision reached
the Senate chamber during the
reading of the Presidents budget
message. AS the news travelled
from lip to lip on the floor,
the Republicans laughed so
loudly that Democratic Leader
Robinson was moved to arise
and request the Vice President
to call for order so that the bud
get message could be concluded.
The sweeping opinion also
doomed the amended AAA, which
was designed to cure the defects
of the earlier act. It invalidates
one billion dollars in processing
taxes. ~-~-g .--. ---
The majority opinion held that
the action of Congress, in ratify'
ing the original AAA processing
taxes, went beyond its authority.
Justice Harlan F. Stone deliv-
cred the minority opinion, in
which Justices Brandeis and Car
dozo joined. /
The majority opinion held that
the AAA, with its processing tax
on cotton in the Hoosac Mills case,
was a scheme to control produc-
ton of cotton. Congress, the court
held, has no such power under the
Constitution.
Other Acts Affected
Acts of the Roosevelt Admins
tration believed to fall within the
decision by inference, include:
/. Bankhead Cotton Act.
2. Amended AAA.
8. Kerr Tobacco Act.
4. Warren Potato Control Act.
5. Guffey Coal Act.
The decision may also affect
other Roosevelt Administration
acts.
The decision was so broad that
some lawyers consideded it doubt
full if Congress can re-enact sat
isfactory substitute for the AAA.
Justice Stone, in the dissenting
opinion, asserted that Congress
under the general welfare"
clause-had power to levy the
taxes and make grants to farmers.
The majority opinion, he said,
may lead to absurd conse-
quences."
The principle Of the majority
opinion, he said, may mean that
the Government can pay the m- :
employed but cannot require
them to work.
It may mean, he said, that Con-
gress can appropriate money to !
aid rural schools but cannot i'm
pose conditions.
Could Pay Bounties
He maintained that the ma
1ority opinion meant that Con-
gress could pay bounties to
farmers but cannot require them
to reduce production.
Proceedings in both Houses OF
Congress were interrupted as
members eagerly discussed the Ad-
ministration's second major re-
versal at the hands of the Court.
and specialized upon what will now
be proposed to take the place of |
the AAA-if anything.
Senator Men airy, Republican
leader, announced Immediately |
that he will introduce a new farm
relief bill, which will include some
of the provisions of the old Nc
Nary-Haugen bill, which Congress
twice passed some years ago only |
to meet vetoes at the hands OF |
Presidents Coolidge and Hoover.
Senator Capper (R0 Kansas,
long a leader in the Farm Bloc,
said the AAA would have to be
revived in some way" Senator |
Capper, although a Republican,
was a supporter of the AAA.
Democrats Gloomy
The Democrats were generally |
gloomy at the reversal. Vice Presi-
dent Gamers only comment was
that the decision was mot unex-
pected." Most of the conStitu- |
tional lawyers in Congress had
considered the doom of the AAA |
inevitable in view Of the NRA de-
cision last May.