Evening star., 1937-09-07
HIGH COURT RULING
/. ON POWER IS SEEN
Federal Attorneys Predict
Settlement of Four-Year
Fight This Term.
BY the Associe ted Press

Attorneys for the T. v. A., P. w. A..
and the Federal Power Commission
predicted today that the Supreme
Court Will settle two major points of
President Roosevelt's power program
in the term beginning October 4.
The questions, which have been
fought back and forth between the
Federal Government and private utili-
ties for four years, are:
l. May the Tennessee Valley Au-
thority sell power in unrestricted
competition with private companies?
2. May the Government help mu-
inequalities finance power plants to
operate in competition with private
companies?
Government victories in the Su-
preme Court, some Federal officials
said, would clear the way basically
for any activity in the power field
the Federal or State governments
should desire. After that, they said,
1t would be just a question of how far
the governments chose to go.
atON As SIduClt&Cu
The legal warfare may be renewed
today in Philadelphia, where the Fed
eral Power Commission has been or
dered to establish the worth of its
investigation of service charges made
by subsidiaries of the Associated Gas
group.
Here, in outline, are the major
cases involving the Governments
power policy now pending:
The 19 companies case: A three
judge District Court in Tennessee,
created under the newly enacted jul
dietary reorganization act, will hear
IN October arguments that the T. v. A.
should be barred from distributing its
power in competition with utilities. At
torreys say the case should reach the
Supreme Court by the first of the
year.
The Public Works Administration
power cases: The point at issue is
whether the Federal Government can
lend money to city to build a power
plant in competition with private in
dustry.
P. w. A. Loans Disputed.
The Supreme Court will hear argu-
ments early in November concerning
such loans made to five Alabama cities
by the P. w. A. Lawyers predicted
that the suit of the Duke Power Co.
against the Buzzards Roost project of
Greenwood County, S, c., will be ar
gued at the same time. Utility law
yers are expected to ask the Supreme
Court on Friday to review that case.
The power companies also have
challenged the right of public power
authorities in Nebraska and in Texas
to erect transmission lines with
w. A. funds.
The public utilities holding COM
pany case: The Electric Bond & Share
Co. has challenged the Governments
right to require registration with the
Securities and Exchange Commission
The case may reach the Supreme
Court this session.
The Coosa River case-The Ala
oama Power Co. challenges the Gov
ernment's proposal to buy back or
recapture' at cost a private power
dam. The case is awaiting decision
by the Court of Appeals here.
Another Probe Hit
Associated Gas subsidiaries In
Pennsylvania-The companies chal-
ienge the power commissions right
to hold hearings and make an in
vestigation of service charges paid ont
by the companies.
The New River case-This is part
OF six-year battle in which the
Appalachian Electric Power Co. has
challenged Federal regulation of dan,
building on what the company con-
tends is non-navigable stream. This
case Is before the Federal District
Court here.
The Santee-Cooper River diversion
case-Carolina power companies have
protested a State project to divert the
waters of the Santee into the Cooper
River to create a new waterway to
the sea and to develop hydroelectric
power. The companies also object
| to the P. w. A. loan and grant made
for the project. The Government won
preliminary decision in the District
Court of Judge j. Lyles Glenn last
week.