Show RAIL PENSION ACT DECLARED I COURT Injunctions Granted on Unconstitutionality Appeal Seen WASHINGTON June 26 AP Declaring AP-Declaring Declaring the governments government's governments government's governments government's govern govern- ments ment's 1935 railroad retirement retirement retirement retire retire- ment plan unconstitutional Justice Jennings Bailey of the District of Columbia supreme court today granted injunctions injunctions injunctions against its enforcement Tho The decision affects virtually all nIl the n nations nation's tion railroads and their Justice Bailey forbade the railroad retirement retirement retirement retire retire- ment board to pay payout out money under tinder the rail pension act and the internal revenue commissioner to collect taxes under tho the companion companion com corn panion revenue measure First pension payments under the plan had been scheduled by law Jaw for July 1 Cites Prior Rulings Government attorneys attorneys' made no immediate comment but during hearing of the th case h had bad d s' s said ld they would appeal if It the decision went vent against them hem Justice Justl Bailey Balley held that both the ilie pension law Jaw and the tax L' measure were Inseparable parts of a 11 single scheme scheie unconstitutional under prior rulings of or the supreme court In Iii In granting the injunctions which had been requested by first class railroads and other railroad enterprises enterprises enterprises en en- ho said interlocking provisions provisions provisions pro pro- visions of the two laws showed an attempt of congress to accomplish under certain powers an end which has been held unconstitutional Quotes Decision Of the tax measure which sought to raise in the tho plans plan's first year ear of operation through a 3 34 per cent tax tac on rail wages and an equal levy on payrolls Justice Bailey said it was clearly enacted to provide funds for pensions under the retirement act Ho He quoted a supreme court decision decision de de- de- de which said A federal statute passed under the tho t taxing power may be so o arbitrary arbi arbi- tra and capricious as to fall before before be be- fore oro the due duo process clause of ot the fifth amendment o of the constitution constitution tion Such would seem to be the character character char char- char I acter of ot this tax tat were wera tho the court confined in its consideration to the taxing act itself Justice Bailey commented Request that hearing on the suits fi filed d by tho Id Utah Idaho ho Central railroad railroad railroad rail rail- road attacking new deal railroad legislation be postponed at least 30 days will ill be bo m made de by Assistant uS u U.S. U.S. U. U S. S District Attorney Scott M. M Matheson Matheson Mathe- Mathe son in federal court Saturday In response to a a. telegraphed d re request request re- re quest from the tho U. U S. S attorneys attorney's office office of of- fice flee here a 11 representative of the attorney general telephoned from Washington D D. D C C. late lato Thursday urging that the tho hearing originally set for Saturday be bo continued at least 30 days das Whether Federal Judge Tillman D. D Johnson will be bo Inclined to continue con con- the hearing until an nn expected decision from the tho United States supreme supreme supreme su su- su- su preme court on railway legislation is issued could not be determined Friday |