Evening star., 1938-04-25

helpless. The natural and reasona BILE
remedy through composition OF the
debts OF the district was not availab BILE
under State law by reason of the re-
striction imposed by the Federal Con-
stitution upon the impairment Of con-
tracts by State legislation.
Power Held Competent,
THE bankruptcy power is compe-
tent TO give relief to debtors in such
q plight and If there is any obstacle
to its exercise in the case OF the
districts organized under State law.
1t lies in the right Of the State to
oppose Federal interference. The
State steps in to remove that obstacle.
The State acts in aid. and not in
derogation, Of its sovereign powers. 1t
invites the intervention OF the bank
ruptcy power to save its agency which
the State itself is powerless to rescue.
tional Government the needed relief
is given.
I'VE see no ground for the con-
clusion that the Federal Constitution,
in the interest OF State sovereignty,
has reduced both sovereigns to help
lessness in such a case
A petition for confirmation OF a
plan for readjustment of its debts
was filed by the l5.260-acre irrigation
district with the Federal District
Court. 1t said creditors owning ap-
proximately 81 per cent OF the securi-
ties affected had agreed to the filing
Of the petition. 1t proposed to pay
slightly less than so cents for each
dollar OF bonded indebtedness.
This payment was to be made from
a loan authorized by the Reconstruc-
ton Finance Corp to the irrigation
district.
Bondholders Attack Proposal.
A group of minority bondholders
attacked the proposal. however. and
the District Court dismissed the
irrigation districts petition on the
ground that the act was invalid as
applied to the irrigation district.
In other cases today. the court:
Refused to review q District Court
decision denying citizenship to Abra-
ham Warkentin. Mennonite minister
OF Chicago. who declined to take the
oath to bear arms in defense of the
United States for religious reasons.
Mr.. Warkentin is q native Of Russia.
The District Court decision had been
affirmed by the Seventh Circuit Court
on the basis of q Supreme Court de-
cision in q similar case several years
ago.
Affirmed . decision by q three
judge District court which dissolved
temporary injunction against a
$4,330,000 P. w. A. loan and grant to
Chattanooga, Tenn. for municipal
power plant to distribute T. v. A.
electricity. The Tennessee Electric
Power Co. had appealed the decision.
Approved an order by the Arkansas
Department of Public Utilities direct
ing the Arkansas Louisiana Gas Co.
to f1le a schedule of rates charged Hot
Springs and Camden, Ark, and 40 in
dustrial plants in rural territory.
Agree to Oral Arguments.
Agreed to hear oral argument May 2
on q motion by the Federal Gov
ernment seeking permission to inter-
vene in litigation involving claims of
Nebraska. Wyoming and Colorado to
water from the North Platte River.
Held that an interstate compact be-
tween Colorado and New Mexico for
apportioning the water OF the La Plata
River between the two States had
priority over previous Colorado Court
DEGREES. Observers regarded the de-
cision as possible boost to the extern
sion Of compacts among States to deal
with their regional problems.
Upheld an Interstate Commerce
Commission order directing several
railroads to cease paying allowances
to industrial plants which perform
switching operations within their own
yards The decision reversed Louis
lana District Court ruling.
Upheld q decision by the Court of
Claims that the United States should
pay $7,2Sl,778 to the klamath and
Moadoc tribes and Yahooskin band
OF Snake Indians as compensation
Tor land taken from them in Oregon
IN 1906. The sum includes $4,420,5
interest at per cent since 1906.