Salt Lake Telegram | 1936-05-25 | Page 1 | Municipal Debt Act Voided

MUNICIPAL t DEBT ACT VOIDED p Arizona Arizona's s Move To Bring Action Is Turned Down Pow Powers of States Are re Held Infringed d by Congress Congress' WASHINGTON May 2 25 AP After AP-After After declaring unconstitutional the 1934 law to help municipalities reduce th their ir indebtedness indebtedness indebtedness in in- through federal federa bankruptcy co courts the supreme supreme supreme su su- su- su preme court adjourned today until next Monday without passing on the New York minimum minimum min mm- w wage g law for fo women and children Seven of the tho nine pending cases cose were decided today leaving only two for next Monday when the c cour court urt adjourns for the summer The other undecided case involved in in- the contention by Wyoming that Colorado had violated the supreme supreme su su- su- su preme premo courts court's 1922 decree apportioning apportioning apportioning water At if f the tho Laramie river rive between the two states The he municipal bankruptcy do do- cislon was by five to four the majority majority majority ma ma- holding the tho law violated th the rights of f state P. P Loses Losos Sto Stockyards Suit In another of oC today's decisions the government lost in an effort to reduce servi e charges for buyIng buying buy buy buying ing and selling J livestock at th the Kansas City stocky stockyards The court ruled six to three that tha the tho Elgin Joliet Eastern Railway company had not violated the Interstate Interstate in In- In commerce act by carrYing carry carryIng carrY carrY- Ing products of ot other United States State Steel subsidiaries other ther decisions A Massachusetts excise tax on foreign corporations engaged in business within the state was held hel constitutional A 1933 Florida law Jaw giving residents residents resi- resi dents of oC that state priority over other states and the federal government government government gov gov- in payment of claims claim against an insolvent surety company company com corn pany from a deposit re required required required re- re for doing business in th the state was held unconstitutional Arizona's petition for permission to o sue California and five live other othe states for a final determination o of water rights on the Colorado river W was s denied Gold Seizure Upheld The court agreed to pass on the constitutionality of ot New Yorks York's unemployment unemployment unemployment un un- un- un employment insurance lawA law Jaw A Swiss corporation lost in an effort to keep the United States from rom seizing its gold in inthis this country country coun- coun try ry with a face faco value of In a five to four tour decision the court held the bankruptcy act violated vio- vio the rights of states and therefore was unconstitutional Justice spoke e for forth forthe the I majority and Justice Cardozo for forthe forthe the he minority Chief Justice Hughes and Justices Brandeis and Stone agreed with Cardozo If obligations of states or their political subdivisions ma may be subjected subjected sub- sub to the interference here attempted attempted at- at tempted they are arc no longer free to manage their own affairs th tho thoma majority majority ma ma- opinion said It was set forth that tho will of ot congress would prevail over over them should hould the law Jaw be allowed to stan stand Reverses 1 Lower Loner Court Justice Cardozo asserted that great care had been taken under the he legislation to maintain Inviolate ate late the governmental powers of the he state and its subdivisions and the statute is constitutional The ruling reversed a decision by bythe bythe the ho Fifth Filth circuit court of ot appeals which upheld the legislation The Tho act had been challenged by certain bondholders of ot the Cameron Camern Camer- Camer on n county Texas water improvement improve- improve nent ment district No j 1