Salt Lake Telegram | 1936-10-15 | Page 5 | New Gold Law Decision Seen

NEW GOLD LAW DECISION SEEN WASHINGTON Oct 15 UP UP- UP The supreme court has prepared the way for a new decision on the governments government's governments government's governments government's gov gov- gold policy observers believed believed believed be be- today It wa va however the decision would be confined confined confined con con- fined to extremely narrow limits Such a decision was virtually assured when the court accepted jurisdiction in a case involving the American Writing Paper company and the Holyoke Water Power company com com- pany The Tho action concerns a peculiarly worded contract which provided that in return for a lease of ot water waterpower waterpower waterpower power supplied by a dam in the Connecticut river the paper company company company com com- pany would make payment in gold of ot a weight and fineness equal to 1 1500 of gold at the time of ot the contract Since the number of ot contracts so worded is known t to be very small it was not believed the courts court's opinion of ot the tho clause would have much Immediate effect However should the c contract be upheld it might affect future contracts contracts contracts con con- tracts since the court would then have ruled that such clauses were were legal despite the governments government's gold devaluation action Even Even so so however the effect was not believed to be potentially large unless the free circulation of ot gold should be restored It is the contention contention of ot the power company that tha the the agreement nt to pay constituted a contract to deliver a certain commodity gold commodity gold or an amoun amount of currency sufficient to purchase tIlls this commodity Since the dollar was devalued by congress the company seeks to force payment in a a. sufficient number number number num num- ber of ot devalued dollars to buy the amount of gold specified in the contract