The Washington times., 1937-11-19
Big Fight in
Chattanooga

the United States Supreme Court-this case should
get there by next spring The judges Florence E.
Allen Dem.), of Columbus, Ohio, only woman Circuit
Court of Appeals judge appointed by President Roose
vet; John D. Martin (Dem.), of Memphis, Federal
district judge appointed by President Roosevelt; John
j. Gore (Rep) of Nashville Federal district Judge ap-
pointed by President Harding
Parties 10 the suit: Eighteen private power conpa-
nies of Tennessee, Alabama, Mississippi, Virginia,
North Carolina and Kentucky plaintiffs against the
IVA (Tennessee Valley Authority and its directors
defendants. The power companies total book value
is over billion. Twas about half billion Chief
counsel for the power companies is Newton D. Baker,
one-time publicpower mayor of Cleveland; for IVA,
James Lawrence Fly. '.'...
Question at issue: Can the United States Govern
ment, through its agency the TVA generate, transmit
distribute and sell electric power produced at power
dams along the Tennessee River or does the Consttu
ton grant to private business monopo such pro-
duction and sale of power? (The Constitution of
course, says nothing about it. electric power having
been unheard of in 17S7)
The case is immensely important, because electric
power of the great arteries if not the most i'm
portant artery of modern American capitalism 1t is
Tho ro,, mn t a new necessity; by its nature
M,.o.1o SLu1. it encourages monopolies of it's
production and sale and that
natural tendency is increased in every way they can
think of by private power producers sellers and fnan
ciers
This case is the climax of long battle The Wilson
administration, wartime measure, began develop
ment of the Muscle Shoals area source of power
and nitrates The Harding Coolidge and Hoover ad-
mlnistrations by tactics of mutter, humble and fence
prevented completion of the project During all those
years, Senator George W. Norris of Nebraska fought
for its completion repeatedly producing evidence not
seriously disputed at the tme that power production
and power financing throughout most of the United
States headed up in Wall Street at the offices of J. P
Morgan and Company (Insul had a good piece of
the rest)
Came the Roosevelt administration and the New
Deal, and Muscle Shoals took life, under the
aegis of the IVA. Congress and the President ap-
proved the idea Of selling IVA power at cost plus main
tenance, that people might know what fair power
rates In the TWAS sphere of operations The peo-
pie, in so far they expressed Themselves approved
the idea by rejecting Roosevelt
1t now remains to be seen whether the Supreme Court
will veto the President Congress and the people on this
question The Court has the years assumed veto
TUA putoo Osot power over the President and Con-
r mo, .o. gress.
4" 4"/0 DO"e' That question will be decided
by two men, as the Court is now aligned-Chief JUS
tice Hughes who is sometimes liberal and sometimes
conservative, and Associate Justice Roberts, who
turned liberal while the Court under fire from the
President but who recently joined the conservatives in
income tax decision holding peculiarlooking bonus
nontaxabe part of the bonus blessed employees pay
The other Justices McReynolds, Sutherland
and Butler (conservatives); Brandes Stone Cardozo
and Black-iberals. The recent Juror over Blacks
erstwhile Ku Kux connection was raised in part by
big fellows who didn't want another liberal on the
Court.
We do nothing about the fact that at present
Justices Hughes and Roberts hold the balance of power
between the liberals and conservatives and that there
fore the Constitution is what Justice Hughes and Rob
erts say it is Which shows once more why we need
permanent Supreme Court reform; defintive curb on
the Supreme Courts usurped power to nullfy acts of
Congress and the President
The real issue, the actual gravamen in this case is
the fact that IVA has promulgated wholesale and re-
tail power rates 25 per cent to 40 per cent below the
rates charged bv pryate mower companes in TVA fer