The Bismarck Tribune Newspaper, October 18, 1934, Page 3

DAVIS WILL GHART CHANGES NEEDED IN FARM LEGSLATIO Administrator to Tackle Divers sity of Problems at Con- ferences Soon Washington, Oct. 18—(#)—Future farm relief legislation will be taken, up soon by Chester C. Davis, farm ad- ministrator, in a series of confer- ences with farm leaders and business ten. The meetings, lasting some two months, will supplement President Roosevelt's discussions with business men on general conditions and ad- ‘ministration activities, Dr. H. R. Tolley, AAA program planner, and his assistant, A. J. 8S. ‘Waver, have begun studying the ad- Justment act with AAA attorneys pre- paratory to any changes needed at the next congress. The strategy was planned to fore- stall agitation against processing taxes, of which the administration al- ready has heard rumblings, and the arguments that, since some farm the adjustment act which failed to! pass in the closing hours of the last | session. e One amendment which Senator Byrd (Dem., Va.) specifically object- ed to, provided more specific defini- tion of the secretary’s powers in li- censing handlers of commodities moving in interstate commerce. Davis has declared his intention of renew- ing the fight for this amendment. The farm legislative program will likely include: | 1, Broadening lending power of the Commodity Credit corporation to carry out Secretary Wallace’s ever- normal granary plan. 2. Provision of regulatory power of Intrastate Commerce when it com- petes with interstate movement of | commodities, 3. Strengthening of AAA control over the marketing of non-basic com- modities. ~ ‘ 4. Power to pool processing taxes and make group benefit payments. 400 Farms Arrange for, Tree Plantings in 1935; Favorable tree planting conditions| next spring will result in the plant- ing of 400 shelterbelts in North Da- kota, according to D. D. Baldwin, ex- tension service forester. He reported this week that approximately that number of cooperators in the demon- stration shelterbelt project have made the necessary land preparation for Prices have reached the “parity lev- el.” the AAA has served its purpose and should be disbanded. Officials also are determined. to week the re-introduction and passage of the “clarifying” amendments to FOUR STARS yw we Ends Tonite 7 and 9:20 p. m. See it from the beginning A SENSATION OF LAUGHTER - SONG AND BEAUTY! —COMING— MIDNIGHT SUN. MON. - TUES. - WED. lanting the trees. ‘ Thorough cultivation of the land a year in advance of tree planting is required of cooperators, Baldwin said. Cultivation improves moisture and soil conditions, he explained, and is: particularly important in years drouth. Projects where the ground was not properly pared this year pre} i} have been postponed until 1936. | This year new shelterbelts and additions to 150 plantings set out previously were planted. About 400,- 000 trees were included in tHe 1934 Planting operations, the trees being furnished from the nursery of the State Forestry School at Bottineau. Since the demonstration shelterbelt work began in North Dakota more than 1,700 windbreaks have been set out. There will be no surplus tree stock available from the state forest nursery for distribution next spring tors, Baldwin declared. JAP CABINET MAY FALL Tokyo, Oct. 18—(#)—A determina- tion by the Japanese army to domi- nate the Japanese empire's Manchu- rian policies, by force if necessary, confronted the three-months old cabinet of Premier Keisuki Okada/ ‘Thursday with the danger of a down-| fall. : | per) with the Federal Securities and tw other than shelterbelt co-opera-_ CONSTITUTIONALITY OF MANY NEW LAWS- FACING CHALLENGE New York Economist Cites Se- curities Act as Example; Says It’s OK By THOMAS J. ANDERSON, Jr. New York Much of the New Deal legislation is being subjected at present to heated discussion with respect to its constitu- tionality as well as its economic de- sirability. In the opinions of a con- siderable number of people, some of this legislation is not in keeping with either the letter or the spirit of the Constitution of the United States. The Supreme Court has just begun a session which is likely to be of epochal importance {n the consideration and determination of the authority of Congress to impose economic regu- lations. A new type of Federal regulation of economic affairs. which is likely to be scrutinized by the Supreme Court jsooner or later is that embodied in the Securities Act of 1933. Much criticism has been directed at the law. The severity of some of the penalties imposed in it and its alleged effect in drying up the issue of new securities have led to much of the criticism. If the law should be attacked as un- constitutional, what is the likelihood that it would be sustained by the Su- preme Court? The aim of the law was indicated by President Roosevelt in his message to Congress, in which he stated that “there is an obligation upon us to in- sist that every issue of new securities to be sold in interstate commerce shall be accompanied by full publicity and information, and that no essentially important element attending the issue shall be concealed from the buying public.” | State Laws Failed The occasion for passage of the law was the failure of state blue-sky laws, adopted in all states except Nevada, to protect the public from enormous |losses due to the widespread sale of worthless or fraudulent securities. The method by which protection to the investing public is sought in the ' Federal law is to require registration of securities (with certain exceptions, such as government and charitable institution issues and commercial pa- Exchange Commission as a pre-re- quisite to their distribution througk the channels of interstate commerce and the mails. As a condition of this registration, cetailed information must be filed relative to the issue pro- posed, the issuing organization and its control, and underwriter or dealer agreements concerning the marketing procedure to be followed: Severe pen- alties are specified for violations of the terms of the Act. State laws to protect investors — generally by requiring registration of security salesmen with an appropriate state authority prior to their under- taking the sale of securities within the state—have been attacked as un- fonstitutional. The contention was made that these laws interfered with freedom of contract; resulted in an unconstitutional delegation of legisla tive powers to administrative bodies; and placed an unreasonable burden upon interstate commerce, Although in the lower federal courts some of ihe earlier state laws were declared un- fconstitutional, the supreme court, in later cases, has definitely established the constitutionality of- several of these laws. The court held that the right to freedom of contract may be reasonably modified in the interest of public welfare; that the laws reviewed did not unconstitutionally delegate legislative powers; and that their re- strictions upon interstate security sales were not unreasonable burdens upon interstate commerce. Commerce Clause Rules ‘The constitutionality of the recent federal law depends mainly, without doubt, upon the adequacy of the com- Merce clause of the constitution as a basis for its passage. Under the com- merce, clause, congress SSeS AU: thority to regulate all interstate and foreign commerce. Not all transactions of business among the several states, however, are considered as interstate “commerce” by the supreme court. For example, the court has held that policies of in- surance are not articles or subjects of “commerce.” Hence, interstate sales of insurance policies have not been considered by the court to comprise a part of the interstate commerce. On the other hand, the court has held that lottery tickets are articles of commerce; that interstate shipment and sale of them constitutes interstate commerce; and that congress, relying on the commerce power, possessed adequate authority to prohibit their interstate distribution. In the lottery case, the court said that “undoubted- ly, the carrying from one state to an- other by independent carriers of things or commodities that are ordi- nary subjects of traffic, and which have in themselves a recognized value in money, constitutes interstate com- merce.” Securities are “things,” al- though probably not thought of as “commodities.” They are ordinary SSS == | subjects of traffic and they would ap- They said it was- “TOO INTIMATE TO BE PRINTED!" ‘TOO DARING TO BE FILMED!" ... Yet herep it is! FRANCIS HOWARD "BRITISH AGENT" THE BOOK THAT MADE THE WORLD TREMBLE! CAPITOL —= THEATRE es— at 8 a. m. “Listen, pal, have you heard Lucky 13 Tune in Tomorrow Station KFYR (CST) pear to have as definitely a recognized value in money as lottery tickets. Cites Decisions in Point While the foregoing analysis shows that securities meet the tests laid down by the supreme court in the lot- tery case for a thing which should be considered an article of commerce, the court has not definitely held that securitfes are articles of commerce. Lower courts, however, have so ruled. In a Michigan case, arising in 1914 in connection with a blue-sky law of the state, the district court said: “We cannot doubt that stocks and bonds are now subject to interstate com- merce, and that shipments and sales of them, between the states, are in- terstate commerce.” Another federal district judge, in a case involving an Towa blue-sky law, stated that “no reason is left for doubt but that nego- tiable securities, shares, Promissory notes, corporate and mu- bonds, absolute in form, are the subjects of interstate commerce.” Other lower federal courts have ex- pressed similar views. In a state blue- sky law case anpealed to the supreme court in 1916, the court assumed the interstate commerce character of in- terstate sales of securities but held that the state restrictions imposed in connection with such sales did not constitute a substantial and direct burden upon such interstate com- merce. Unless the supreme court should hold that the interstate shipment and sale of securities is not a part of in: terstate commerce, there is little rea. son to believe the securities act would be held unconstitutional on other grounds. The power to regulate in- terstate commerce “is vested in con- Gress as absolutely as it would be in a law. Congress, in the court, “has a large dis- 4s not to be controlled simply because, in their ulations may not be most effective.” . Farmers should not be permitted to bump their heads against a stone wall—Harry L. Hopkins, relief ad- ministrator. Easy Pleasant Way To Lose: Fat lke to lose 15 & month and at the inerease your energy and th? like to lose your y your too prominent and at the same time mjke lean and clear that it seales today and see you weigh—then go to Drug Store—get an 85 cent Kruschen Salts which will four weeks. Take one half teaspoonful in a cup of hot wa- very morning and when you finished the contents of this bottle weigh yourself again. ter that you'll want to walk say to your friends— 85 cent bottle of Kruschen Salts one hundred dollars of any y .— Advertisement. ALL DRUGCISTS “It's the LITTLE DAILY DOSE that Does it —_- rH Ee se Extortionist Awaits _ Transfer to Prison Detroit, Oct. 18—()—A crestfallen youth of 20, who muttered to him- self as he left the courtroom that “ten years is a long, long time,” awaited transfer to Leavenworth prison Thursday to begin his sen- tence for a plot to extort $5,000 from Edsel B. Ford. Edward Lickwala's air of bragg: doccio was unshaken while the m chinery of federal law was moving! rapidly to indict, arraign and sen- tence him after his confession Wed- nesday, but sharp words of Judge Edward J.: Oinet, the sentencing judge, finally broke through his bravado. “Your letter was not a joke,” spoke | the judge to the youth who had | claimed he “only meant to scare” the 4l-year-old president of the Ford , Motor Co, The young extortionist was arrested, | Monday night. Sensational New Brand new! Radiates and circulates heat! Looks like fireplace! Heaviest quality con struction! Burl wal- nut porcelain! See it! Wools and Crepes! 395 The smartest frocks are known by their colors! Rich woodsy greens! Tiles, in gay glowing shades, for brisk . days! New Autumn-leaf browns! All very dashing un- der dark coats... all thriftily Do your buying at the Peo- ple’s Department store and save. priced! In elses for misses! New Hearthglow Design! 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