Evening star., 1937-09-03
POWER Project
UPHELD IN COURT
P. w. A. Statutes Are Ruled
Constitutional in South
Carolina Battle.
By the Associated Press.


COLUMBIA, S. c., September s.
Federal Judge j. Lyle Glenn has up
held the right of South Carolina and
the Public Works Administration to
build the $37,5O0,000 Santee-C Cooper
power and navigation project. In a
decision yesterday he denied a per-
manent injunction sought by private
power companies.
THE plaintiff companies are not
entitled to an injunction in any event."
Judge Glenn ruled in upholding the
arguments Of the South Carolina Pub
Lie Service Authority and P. w. A.,
defendants to the suit brought by the
Carolina Power & Light Co. of Raleigh,
N. c.: the South Carolina Power Co.
Of Charleston and the Broad River
Power Co. of Columbia.
In a statement accompanying his
decision, he pointed out:
1T is the common impression that
the appeal from this decision will be
direct to the Supreme Court under the
new Federal procedure act. In that
the trial was had before the act was
passed it is thought that the decision
was properly rendered by one Judge
who had conducted the trial.
Gases of this character in the
future will be heard by three judges
instead Of one"
Upholds Statutes.
Judge Glenn's decree in addition to
denying the injunction, held:
That P. w. A. statutes Of the emer-
gency relief appropriation acts are not
unconstitutional and
That it was within the power of
the Federal Power Commission to issue
the license for construction of the
giant project.
One matter Of legal importance has
happened since the conclusion Of the
trial which this court should refer to
in its opinion" Judge Glenn said in
Z note attached to the document
"On June 81. 1887, the United
States Senate had under considera-
ton an amendment to the emergency
appropriation act whereby Federal
emergency administration of public
works was continued the sums
Of sl6,650,000 as grant. and sl4,-
850,000, as a loan, were definitely
earmarked for the Santee-Cooper
project in South Carolina.
1T appears that on June %, 1897,
this ALLEGATION was agreed to by the
Senate and has subsequently become
the law.
This is of Importance as showing
that the funds were earmarked for
the completion Of this project This
has bearing on the plaintiffs con-
tention Of imminent danger. 1t also
shows that the Congress has intention
OF completing this project"
The case he said, involves all OF
the constitutional issues involved in
other suits where Federal funds ap-
propriated by the Congress are being
used under loan and grant agree
ments to construct municipality owned
power plants competing with existing
power companies"
Long Litigation.
The decision came after long liti-
cation over proposed construction of
the development in the Santee Basin
of coastal South Carolina. with three
private utility companies arrayed
against the State Public Service Au-
thority and the Public Works Admin
iStration
The power companies were the
South Carolina Electric & Gas, Caro-
lima Power g. Light and the South
Carolina Power Co.
In the hearings that were begun
before Judge Glenn March 10 they
contended that the gigantic plant
would offer injurious competition"
to existing power plants; that diver
sion OF the waters OF a navigable
stream (Santee River was unlawful:
that the loan the Government would
make through the P. w. A. would be
unsecured and illegal, and that the
P. w. A. was in effect "tampering"
with intrastate power rates.
The defense contended that the
development would enable the power
concerns to purchase electricity
cheaper than they could generate it;
that the agreement between the South
Carolina Authority and the P. w. A.
assured the retention by the author
ity Of the power to fix rates and con-
troll the administration Of the project,
and that the relation between the two
would largely be banking one.
The proposed development was also
pictured as a means of flood and
malaria control.