Evening star., 1936-02-17
BY JOHN H. CLINE.

The Supreme Court, in an 8-to-l
decision, today upheld the right of the
Tennessee Valley Authority to lease
transmission lines of the Alabama
Power Co. as a means for diSposing
of surplus power generated at Wilson
Dam.
This decision was confined to the
contract between #. v. A. and the
power company, the opinion by Chief
Justice Hughes expressly refraining
from consideration of ANY other dam
or power development in the Tennes-
see Valley"
A new suit would have to be filed and
carried to the Supreme Court before
legality of T. v. A. activities aside
from its contract with the Alabama
utility, could be decided.
Split on Right to Bring Suit.
The opinion on the validity of the
act, with Justice McReynolds dis
senting, was reached after the court
had split, S to 4, on the question of
the right of the power companys mi
nority stockholders to bring the suit.
On this point, Chief Justice Hughes
sided with Justices Butler, Van De-
vanter. McReynolds and Sutherland
Justices Brandeis Roberts, Stone and
Cardozo dissented, declaring the COM
plainants had failed to establish an
"irreparable injury" and had no stand
ing in court.
Hughes Gives Reasons.
After giving the reasons of the
majority in deciding the suit was
properly brought, Chief Justice Hughes
said:
I'VE come then to the question as
to the validity of the method which
has been adopted in disposing of
the surplus energy generated at the
Wilson Dam. The constitutional pro-
vision is silent as to the method of
dispoSing of property belonging to
the United States. That method, of
course, must be an appropriate means
OF disposition, according to the nature
OF the property; it must be one
adopted in the public interest as dis
tlngulshed from private or personal
ends, and we may assume that it must
be consistent with the foundation
principles of our dual system of gov
ernment and must not be contrived
to govern the concerns reserved to the
States.
The transmission lines which the
Authority undertakes to purchase from
the power company lead from the Will
son Dam to large area within about
30 miles of the dam. These lines pro-
vide the means of distributing the cleo
trio energy generated at the dam to a
large population. They furnish a
method of reaching market. The al
Tentative method is to sell the surplus
energy at the dam, and the market
there appears to be limited to one pur-
chaser, the Alabama Power Co., and
It's athl1ated interests. We know of no
ground upon which the Federal Gov
ernment can be denied the right to
seek wider market.
No Invasion Found.
1--WE suppose that in the early days
Of mining in the West, If the Gov
ernment had undertaken to operate a
silver mine on its domain, it could
have acquired the mules or horses and
equipment to carry its silver to mar
ket. And the transmission lines for
electric energy are but a facility for
conveying to market that particular
sort of property, and the acquisition
of these lines raises no different con-
stitutional question, unless in some
way there is an invasion of the rights
reserved to the States or to the peo-
pie. We find no basis for concluding
that the limited undertaking with the
Alabama Power Co. amounts to such
an invasion. Certainly, the Alabama
Power Co. has no constitutional right
to insist that it shall be the sole pur-
chaser of the energy generated at the
Wilson Dam; that the energy shall
be sold to it or 60 to waste.
Eve limit our decision to the case
before U.s. as we have defined it. The
argument is earnestly presented that
(See T. v. A., Page A-6.)