Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-12-22
DECISION CLEARS
NEUTRALITY PATH
Supreme Court Encourages
New Bill Granting Presi.
dent Wide Powers.

New Bill Granting PreSl-
| dent Wide Powers.
BY JOHN H. CLINE.
Clear sailing for the New Deals
neutrality program was foreseen in
ofiicial quarters today, following .
Supreme Court decision yesterday up
holding the Chaco arms embargo in
language giving the President wide
latitude in handling foreign relations.
In q 7-to-1 opinion, the court said
legislation concerning international
affairs must often accord the Presi-
dent q degree Of discretion and free
dom from statutory restrictions which
would not be admissible were domes-
tic affairs alone involved"
Associate Justice McReynolds dis
sented, while Associate Justice Stone,
who is Ill, did not participate.
State Department Jubilant.
State Department ofdciaE. already
at work on recommendations for new
neutrality legislation for submission to
Congress, were openly pleased with
the ruling in the Chaco case, and said
1t removed all question as to the con-
stitutionality of the present neutrality
act.
The neutrality law now in force,
which followed the legislation involved
in the Chaco case, will expire so far
as its embargo powers are concerned
on May /. 1t provides for an embargo
on direct munitions Of war immedi-
ately on the outbreak of hostilities
between two foreign nations.
The administration previously sought
to have included authority for the
President to prohibit the shipment Of
auxiliary munitions, such as cotton.
guns and munitions.
This suggested enlargement, how
ever, met with opposition and was
not passed. Oficials close to the ad.
ministration predicted that when the
new Congress convenes, in view Of yes
terday's ruling. efforts to include raw
materials in the munitions ban will
be renewed.
The law on which the court passed
yesterday is non-existent at this time,
since 1t expired with the end Of the
Chaco war.
The Government, however. already
had instituted criminal proceedings
in New York against several airplane
manufacturers and individuals for al
legedly conspiring to sell IS machine
guns to Bolivia, which was at war
with Paraguay, in violation Of the
embargo.
Among the defendants named in
this proceeding were Curtiss-W Wright
Export Corp, Curtiss Aeroplane a.
Motor Co., Inc. and Barr Shipping
Corp.
They were successful in q lower
court attack on the validity Of the
embargo, contending it constituted too
broad a grant of legislative authority
to the President.
Cite Information Open to President.
In reversing this lower court ruling,
the Supreme Court said:
1.-The President, not Congress has
!, the better opportunity Of knowing the
conditions which prevail in foreign
countries, and especially Is this true
in time Of war. >" This considera-
ton, in connection with what we have
already said on the subject, discloses
the unwisdom Of requiring Congress
in this field Of governmental power
to lay down narrowly definite stand
ards by which the President Is to be
governed"
Before adjourning for two weeks
over the holidays, the court agreed to
review a controversy involving con-
stitutionality of the amended Frazier
Lemke act granting three-year mo-
ratorium on farm mortgage foreclos-
ures. Arguments probably will be
held in March, followed by . decision
q few weeks later.
The court refused to review q case
challenging constitutionality Of the
1885 act broadening Federal regula-
ton of commodity exchanges. The ap-
peal was brought here in advance Of
the customarily required ruling by .
Circuit Court Of Appeals.
Passes Over 4-to-4 Decision.
The court did not act on a petition
for reconsideration of its recent 4-to-4
decision upholding constitutionality Of
the New York unemployment tnsur-
ance law, which supplements the Fed
eral social security act.
There was immediate speculation
over whether q decision on rehearing
the controversy might not be post
poned until Justice Stone Is able to
return to his court duties.
The Government, at the request Of
Solicitor General Stanley Reed. was
given permission to participate in ar
guments on constitutionality Of the
railway labor act guaranteeing COL
lective bargaining between representa-
tives of railway employees and rail-
roads.
The case will be argued during the
week Of February 8, just ahead Of
litigation involving constitutionality
Of the Wagner labor relations act.
Security Act Opinion Pressed.
Solicitor General Reed asked the
court to give a speedy ruling on that
part of the social security act levying
tax on employers for the benefit Of
the jobless.
The request for an early hearing
was filed in connection with the at
tack by George P. Davis Of Boston, .
stockholder in the Boston q Maine
Railroad. who sought to prevent the
carrier from paying the assessment.
The Massachusetts, Federal District
Court ruled against Davis, whose suit
was the first attacking the Federal
social security program.
The Government was granted .
review yesterday in its contention
that New York could not prevent It
from collecting approximately So
100000 assigned to it by Soviet Rus
sia.
The Petrograd Metal Works, prior
to 1918 q private Russian corpora
ton, had q deposit Of $25,43S with
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