Evening star., 1937-05-16
BY the Associated Press.

The Supreme Court met in secrei
conference yesterday to prepare for &
session tomorrow which may produce
an epochal opinion on constitution.
ality of the administration 3 social sc.
curity legislation, the major contro.
versy among the 28 cases awaiting
decision before the justices adjourn
for the Summer early next month.
The Electric Bond Il Share CO. anc
rs utility subsidiaries meanwhile
threw into the lap of the court the
fight over another top-ranking Roose-
velt administration law-the 49,: act
regulating public utility holding COM
panies. The utilities asked the court
to review decision by Judge Julian
w. Mack Of the New York Federal
District Court requiring that they
comply with the law by registering
with the Securities and Exchange
Commission for regulatory purposes
If the court agrees to review the
controversy, arguments probably will
be heard next October, followed by q
final decision few weeks later. The
lltigants sought a Supreme Court re-
view without waiting for the Gus
tomary ruling by the Circuit Court
of Appeals. Litigants sometimes are
permitted to skip Circuit Court II
the controversy is considered to be OF
outstanding public Importance.
Utility Companies Contention,
In their petition the utility COM
panies said that from the standpoint
OF the public interest, the urgency
and Importance of a prompt and final
determination by this court of the
question presented in this case can
not be exaggerated
Through Attorneys Thomas D.
Thacher and John F. MacLane they
argued that the sole purpose and
effect" OF the registration requirement
is to prohibit the use of the mails
and the facilities of interstate COM
merce unless the holding company by
registration submits to an unconsti-
tutional regulation of its affairs"
Government attorneys have sought
to delay prosecution of other utiga-
tion involving the act until a final
decision could be obtained on the
Electric Bond e. Share case. They
have picked this litigation as q test
case.
Social Security Issues.
At stake in the social security It'll
cation are:
l. Constitutionality OF the old-age
pension provisions of the Federal act
under which employers and nployes
are taxed to provide benefit for the
workers when they reach IS. A total
of 26,6l0,000 employees and 2,7O0, ,00o
employers are paying the assessment
George P. Davis Of Waltham, Mass.
challenged the pension system in q
suit to prevent the Edison Electric
Illuminating Co. of Boston, OF which
he Is q stockholder, from paying the
levy. The Circuit Court at Boston
held the legislation unconstitutional
2. The unemployment insurance
provisions Of the Federal act under
which employers Of eight or more
persons are taxed to provide bene-
fits for the jobless. They may de-
duct 30 per cent Of the assessment
provided it is paid into q State un-
employment compensation fund ap-
proved by the Federal Social Security
Board.
This part Of the act was attacked
by the Charles c. Steward Machine
Co. Of Alabama. The Circuit Court
at New Orleans upheld the le9isla-
ton.
3. Constitutionality Of laws passed
by 43 States and for the District of
Columbia to provide unemployment
compensation in line with the pur.
pose Of the Federal measure. These
States protect 1880, 900 workers.