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Show Serials Order Department University of Utah City 84112 , SALT LAKE CITY, UTAH VOLUME 17, NUMBER 162 Judge Puts Off Seizure Ruling On Vesco Yacht A federal postponed arguments on Marylands 9 NEW YORK (UPI) judge has whether International Controls Corp. can seize Robert L. Vescos yacht. District Judge Charles E. Stewart on August 15 continued a restraining order ICC had obtained to prevent the 122-fo- yacht, worth ot $1.4 million, from being sailed away. But he permitted the yacht to be moved from drydock to another boatyard. Vesco formerly headed ICC. He currently is in Costa Rica escaping from a federal indictment charging him with conspiring with former John N. Mitchell, former Commerce . Secretary Maurice Stans and former New Jersey Senate Majority Leader Harry L. Sears to halt a probe of Vescos finances blocked' A lawyer, Arthur Christy, told Stewart his client, Andean Credit, S.A., of Panama, owned the yacht, U.S. Atty. Gen. not ICC. The yacht, the Patricia, was seized July 27 in Miami by the U.S. Customs Bureau as having entered the country without payment of about $60,000 duty. SUPEEME COUBT OF THE UNITED STATES GULF STATES UTILITIES CO. v. FEDERAL POWER COMMISSION et al. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT No. 71-11- 78. Argued December 5, 1972 Decided May 14, 1973 Following petitioners application under 204 of the Federal Power Act to respondent Federal Power Commission (FPC) for authorization of a bond issue, two intervening cities opposed the authorization on the ground that the proceeds of the bond issue . would be used to finance or refinance certain anticompetitive activities in violation of the antitrust laws, the Federal Power Act, and the Public Utility Holding Company Act of 1935. Section 204 (a) empowers the FPC to authorize a security issue only if the issue is found to be for some lawful purpose and compatible with the public interest. The FPC granted Hie cities petition to intervene, denied their request for a hearing, and authorized the bond issue, holding that the cities allegations were irrelevant to a requested authorization of securities under 204. The Court of Appeals remanded the case for consideration of the cities claim, holding that, in line with the reasoning in Denver A R. O. W. R. Co. v. United States, 387 U. S. 485, the FPC should have considered the alleged competitive consequences of the bond issue in the 204 proceeding. Held: 1. The FPC, as a general rule, must consider the anticompetitive consequences of a security issue under 204. Pp. 4. (a) The Federal Power Act did not render antitrust policy irrelevant to the FPCs regulation of the electric power industry. Pp. 1. (b) The fact that the FPC has broad authority under other provisions of the Act to determine whether a public utilitys conduct is in the public interest does not mean that the n 11-standard is not equally germane under 204. Pp. (c) Consideration of antitrust policies in the context of 204 provides a first line of defense against anticompetitive practices that might later become the subject of an antitrust proceeding.' P. 12. (d) The FPC, like the Interstate Commerce Commission, has broad regulatory authority, which includes responsibility for considering antitrust policy in discharging its statutory obligations. Cf. Denver A R. Q. W. R. Co. v. United States, supra. Pp. 4. 2. Though the FPC is not necessarily required to hold a hearing or make a full investigation in all cases, its summary disposition of proffered objections to the security issue requires strict scrutiny by a reviewing court in light of the Commissions obligations to protect the public interest and enforce the antitrust laws. Pp. 8-1- 9-1- 12. 12-1- 14-1- 5. 3. Unexplained summary administrative action is incompatible with the requirements of 1 204 and precludes appropriate judicial review. Pp. 15-1-6. 147 U. 8. App. D. C. 98, 454 F. 2d 941, affirmed. Blackuun, J., delivered the opinion of the Court, in which Burger, C. J., and Douglas, Brennan, filed' Wan, and Marshall, JJ., a dissenting opinion in which Stewart joined. Powell, J., and Rehnquht, JJ., joined. U.S. Chief BALTIMORE, MD. (UPI) U.S. District Judge Edward Northrop has announced that none of Marylands nine federal judges six of whom are Republicans would handle any litigation involving Vice President Spiro T. Agnew that might stem from the current federal grand jury Judges Out Northrop Of Agnew Case asked Clement F. Northrop said none of us will handle anything relating to the Vice President because of Agnew's unique position and his relations with the State of Maryland, where he was governor from 1967 until 1968, when he was nominated for Vice Haynsworth, chief judge of the 4th U.S. Circuit Court of Appeals in Richmond, to designate a federal judge from outside Maryland to supervise and handle all future matters arising from the inquiry of the special grand jury which in any President. The judges statement in no way matter whatever pertain to the Vice indicated Agnew would be imPresident of the United States." plicated in the federal investigation of allegations of tax fraud, bribery and conspiracy against him while he was governor. Northrop, a Democrat, also announced he was granting U.S. District Judge C. Stanley Blairs request to be relieved of supervising of Kansas City, Mo., secretary. Elected to the Sections Council the grand jury's investigation, were Russell M. Baker of Dallas, which he has been doing since it was last December. Tex., and Donald M. Haskell of impaneled was Blair Maryland secretary of Haskell, outgoing state Chicago. during Agnews governship, secretary, was also named program and was the Vice President's chief of chairman for the Sections 1974 in 1969. Blair became a federal staff annual meeting in Hawaii. judge after he lost to Democrat Marvin Mandel in the 1970 Maryland gubernatorial election. Northrop denied a published report lie had ordered Blair relieved of his duties in supervising the grand jury, and indicated that Blair's request did not personally implicate him in any way in the inquiry into an in- vestigation. Airline Man Now Heads Key ABA Section WASHINGTON, D.C. - S. Maurer of Atlanta, vice Richard president, Delta Airlines, was elected chairman of the Section of Insurance, Negligence and Compensation Law of the American Bar Association at its recent annual meeting here. Maurer Syllabus TUESDAY, AUGUST 28, 1973 succeeds G.. Robert Muchemore of Omaha, Neb., vice president, assistant secretary and general counsel for Mutual of Omaha Insurance Company. Other new officers of the Section are Walter H. Beckham, Jr of Miami, Fla., Finch v. Colson chairman-elect- ; Thomas A. Harnett of New York, vice chairman, and Frank B. Keech Suit Averted Illinois Plans contractors in Maryland. By More Rigorous Welfare Grants to the remaining 130,000 cases. The state's total ADC budget would remain the creases in payments same. California has been able to give a 27 per cent increase in payments to recipients with no other incomes and has saved a projected $1 billion in welfare payments since the switch to flat grants combined with a crackdown on cheaters. Moore said Gov. Daniel Walker has indicated he will sign legislation allowing the state to make the change. Walker recently announced a computer program to crack down on welfare cheaters in Illinois. Retraction LOS ANGELES U. of Michigan (UPI)-For- mei White House aide Robert Finch said. August 16, that Charles Colson had issued a retraction and apology about a memo that contended Finch suffered a mental breakdown in SPRINGFIELD, ILL. (UPI) -Illinois welfare officials have announced plans to switch to a simpler flat grant system of welfare payments, similar to the controversial one enacted last year by California Gov. Ronald Reagan. Joel Edelman, director of the state Department of Public Aid, and state Sen. Donald Moore, told a recent news conference the system could be in effect by Jan. 1. Edelman and Moore said the overhaul involved switching from the present system, which uses about 90 categories to determine the assistance level in each case, to a new system which reduces the categories to nine or 10 and also eliminates many of the special allowances now granted. They said the new system would apply initially to the 200,000 cases in the Aid to Families with Dependent Children (ADC) program. Edelman and Moore, chairman of the Legislative Advisory Committee on Public Assistance, said it would eliminate 10,000 ineligible ADC cases. They said it would mean less payments or payments at the same level in 60,000 ADC cases, but in- alleged kickback and bribery scheme involving government 1970. My lawyer and his lawyer worked out an agreement after we talked about the possibility of a Honors Black Woman Lawyer ANN ARBOR, MICH. (ACCN) r, 0s ; -P- atricia Roberts Harris, prominent lawyer-educatowas among those said Finch, former who received honorary degrees lawsuit, lieutenant governor in California, from the University of Micfiigan at who left that post to join the Nixon its summer commencement here, Administration. August 19. Finch, considered a potential Mrs. Harris, who received an senatorial or gubernatorial canLL.D., addressed the didate next year, said Colson, also a honorary' on The End of Inassemblage former White House aide, made the nocence," a topic having to do with apology in a lengthy telegram. legal, political and ethnic problems The gist of it is that Colson had of the post-196era. libeled and defamed me with the She is a former law professor and memo, and he is apologizing for it dean of Howard University school of and retracting it, Finch said. law, and presently partner in a Apparently a young guy in his Washington, D.C., law firm. From office wrote the memo and I hope 1965 to 1967, she was U.S. amthis lets the kid know you have to be bassador to Luxembourg. accountable for your actions," he Mrs. Harris earned her B.A. added. from Howard and law degree Its typical of some of the back- degree from George Washington Univerdoor mentality in certain parts of the sity. Before beginning her legal Whit House, said Finch, who is career, she was a YWCA program now practicing law here. director and assistant director of the The memo, disclosed by columnist American Council on Human Rights, Jack Anderson, was sent by Colson In 1960-6she was a trial attorney to Caspar Weinberger, secretary of for the U.S. Department of Justice. Health, Education and Welfare. After that, she joined the Howard Anderson said the memo was part faculty. of a campaign to discourage 1, California Republicans from backing Finch for governor next year. Colson told Anderson he sent the memo to Weinberger, a formler California assemblyman and administration official Reagan to him know let that he merely would be a unifying candidate if he chose to run for governor. The memo said Finch had suffered a breakdown and was examined by former Surgeon General Jesse Steinfeld, who has denied it. Supreme Court Decisions (See details page 4) |