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J N Nn n u around and theLi the tl NATIONAL Li CAP CAPITAL TA By Carter CarterField Field Washington Waterpower Water power development development development devel devel- by the g government and the blessings of cheap electric current were the theme song of President Roosevelt's speeches peeches on his hll western trip and by bya a curious coincidence ItIs it itIs Is I. questions affecting federal powers In this direction which are more important important im im- im- im from the White House standpoint in the term of the Supreme Supreme Supreme Su Su- Su- Su preme court just opened than everything ev ev- everything else put together As AI a matter of fact the high court has haa ruled on most of the questions affecting affecting af at New Deal legislation So that perhaps Mr Roosevelt was wal not Ignoring the high court enlargement enlargement enlargement en en- issue as much as 81 some lome commentators seemed to suspect on that western trip He lie made a flank ank attack and anel It Is ts generally conceded ed b by Washington lawyers that he Improved his position considerably lIe He h. h has now put the court in a position something like this either the court must mud go all aU the way in approving federal power policies or it will strengthen the Presidents President's contention that the court needs need re re- re- re Every correspondent writing from the Presidents President's train stressed the tho apparent fact that the folks folk I out West didn't give a whoop about the tho Supreme Supreme Su Su- preme court issue but that they were mighty strong for federal spending In ho their own necks of the woods And they agreed very generall generally gen gen- also allo that more water resource developments ware wanted The President did not mention the court fight light nor the lena senators tori who beat him on It it but it just so happens happens hap hap- pens that many of the water resource resource re re- source developments are in the states statu of senators who fought him himon himon himon on the court Issue Montana Oregon Oregon Oregon Ore Ore- gon Wyoming and Idaho laxly Expect Court Backing Putting all aU the pieces together experts experts ex ex- pert here are predicting that the tho high court will sustain the government government government govern govern- ment in every phase of its 11 electric electric elec elec- power program For instance on the right of the federal government government government govern govern- ment to subsidize local governments which desire to go into competition with or supersede privately owned electric systems either by outright grants of money or by loaning the monel money at very low rates of interest For Instance on the right of the government government gov to engage in the electric business In the famous TV TVA A case ease the language used by the court held that It was all right for the government govern lovern- ment to sell power Incidentally produced That Is II of course power pow er produced by a project the main reason for which was not the production production production pro pro- of current but for some clearly constitutional reason such as navigation It Is I. true that in all ail the TVA dams there dams there is another TV TVA A case cale coming up before the high court before before before be be- fore long there long there Is the possible contention contention contention con con- that electric power was not the only reason for tor construction But Dut sometimes this is le a hairline hairline decision decision de de- cislon and the government has been uneasy about the attitude the court might take This suspicion among experts here that the court may take an expedient expedient ex ex- course is based very largely large large- ly 11 on the tho general acceptance of the belief bellef that at least two of the Supreme Supreme Su Su- preme court Justices I switched witched Inthe in inthe inthe the Wagner labor act decision The very generally held view In Washington Wash Wash- ington Is I. that at least two justices justices- enough had they stood by their original position to have overturned the act act changed The alleged reason reason rea rea- son Ion for the supposed change is that the justices feared that if It they did not they would contribute Importantly Importantly to President Roosevelt's case against the court then pending Inthe Inthe in inthe the senate High Hopes Hope Always optimistic the Ole chaps who have been predicting erroneously ever since 1933 that President Roosevelt would turn to the right in the near future are at It again This time they base their hoper hope on his hi promises in western speeches that he would balance the e budget in 1939 and would do it by checking spending The implication of course Is that tax raises raises' would not be necessary essary The process of reasoning which arrives at the result that the President President dent will wUl turn to the tho right is II a little intricate but rather interest ing First the optimistic conservatives conserva lives tives point out that the President cannot spending ably The They point out that h in those thole very speeches speech In which be promised to balance the bud budget et he het p made ade lavish promises promise about abou bigger and Dd grander projects proJects more more dams dam on the Columbia Co Co- lumbia river etc Whereas his hi talk of economy conomy y was ai In n most geni general len gen lenI I ere eral terms term I Further th they 1 point out that there I Its is a 11 sorts of pressure for increased spending On top of this they point to the well well known known position of Secretary of ol the Treasury Henry Jr and his aides They are frank ly Iy worried about the tax situation I J For instance the they tn ere sure ure that the income tax returns to be made on March 15 next will win fall fail far fr short of those thOI made last March There are several everal explanation explanations One U is that the calendar year ear of 1936 for which last lt March returns were made was one of rapidly advancing security prices Hence every one who told sold nearly had a profit The Treasury does doel not give out figures showing the amount of Income taxes resultIng resultIng resulting result- result Ing from security profits but the Treasury officials know them and they are perturbed at the prospect of the decline in revenue unless there Is II a totally unexpected boom In the market between now and De De- De- De cember camber Need Higher Taxes Hence the Treasury is figuring on the necessity for much higher taxes to keep it from going further into red Ink Also it knows know that the real revenue producers are few Sales taxes and lowered income exemptions tion are politically verboten leavIng leaving leav leav- ing lag only boosts in the higher brackets brackets brack brack- ets eta and in levies on corporations as likely Business knows know this too and that is 11 a contributing reason Inthe in inthe inthe the opinion of the Treasury experts for the present timidity of In In In- So 56 the optimists figure the President President President dent cannot stop spending and he cannot head bead of off higher taxation which would seem leem to leave them little lit Ut- tle tie to be encouraged about Except that Except that they then proceed to look Into the reason that made the President promise to do something the they do not think he can do This reason they figure ligure Is concern about the business situation concern about about this same timidity of Investors investors hives tors the unwillingness of present business to expand and new business business busi busl- ness nell to start tart Conceding that the President does want to reassure reassure business and that he will find nd It Impossible to carry carryout carryout carryout out the reassuring promise the alternative al alternative alternative al- al they deduce will be some lome assurance of another breathing breathing breath breath- ing spell a spell a period during which no further government regulation of business will be bo Imposed This some think would be just as 81 satisfactory satisfactory satis satis- factory to business as 81 a tax tion thin But it takes a mighty optimistic mind to go all ail th the way through on this solution and get that answer I Trust Anti-Trust Suit The biggest anti trust anti trust suit In history history history his his- tory involving corporations corporation whose capital runs rune to more than six Ix billion billion bil lion dollars and threatening with jail sentences 58 key officials most of whom are millionaires with a sprinkling of multimillionaires makes Madison Wis the oil oU capital capital cap cap- ital of the country Apparently not one of the 58 officials of is II trusting his own company lawyers to get him out That threatened Jail sentence is too menacing menacing men men- acing the progressive sentiment of La educated Follette-educated Wisconsin Is too disturbing as one contemplates jury material So each of the 58 is dragging along his own lawyers or group of lawyers If It there is a firm of lawyers awyers in the United States which has haa ever had bad any trust anti suit experience and andIs andIs andis Is not employed o on on this case Its It's not the fault of the oil millionaires They have been hiring everybody in sight who had the slightest chance of knowing his way around In a trust suit or with any particular knowledge of the government lawyers law who might be used Accommodations In the town of Madison have long since been snapped napped up Most of the bigwigs both executives executives tives and lawyers have organized in little groups and leased private homes turning them into clubs for forthe forthe forthe the duration of the war Some are wondering plaintively if It they will get home by Christmas Which is very funny to timers old in trust suit matters as they recall the duration du duo ration of some of the more historic antl trust anti suits Ch Charge rge Conspiracy The government alleges in the suit that the big oil companies have been violating the trust anti-trust laws by conspiring on prices The practice practice tice according to government officials cm dais really flowered under the when trust anti-trust laws were virtually virtually vir suspended in return for agreements agree ments by th the employers to certain wage and hour conditions as 81 well as promises with respect to the number number num num- ber of people they would employ Out But on the day that the Supreme court knocked out the all the oil companies and their officials were in technical violation of the trust anti laws The government probably would not have prosecuted ed officials say privately if It the oil men bad had thereupon stopped slopped cooperating cooperating cooperating co co- co- co operating in price fixing But they kept right on the government lawyers law say lay Another wrinkle Is the provision In the trust atoll laws that an aggrieved aggrieved ag ago ag- ag grieved party can cal callue sue lue violators of the law for triple damages Thus if Il some lome one can prove that he lost one million dollars as a result of this price fixing Axing conspiracy by the companies com panics panle alleged to be viola violating tine the anti trust anti trust laws law he can an recover according according ac ac- ac- ac cording to the law three million dollars This Is I. such a serious angle in the situation that there has hu actually been talk of pleading guilty and taking light punishment stipulated with the government in advance The Tho object would be to prevent placing in evidence testimony which would give outsiders all aU the materIal material mate mate- mate rial needed for tor these triple damage suits 6 e B u BeU U Service |