Evening Star Newspaper, December 11, 1930, Page 4

' State, conferring with officials of the TOGETTAX CASE From U. S. for Sale of Muscle Shoals Power. An interesting question relating to the right of the State of Alabama to tax the United States Government $1,000,000 for the sale of hydroelectric|® power during the past four years at the much-mooted Muscle Shoals, near Florence, Ala, on the Tennessee River, will be fought out in the Supreme Court of the United States late this month or early in the new year. Thomas E. Knight, jr., attorney gen- eral-elect of Alabama, who takes office on January 19, was in Washington to- day as special counsel, retained by the Department of Justice, who will handle the case in the highest tribunal in the Jand for Uncle Sam and with his asso- ciate counsel here, Oscar W. Under- wood, jr., son of the late Senator, and H. C. Kilpatrick. The lawyers for the State of Ala- bama contend that the Federal Govern= ment should pay taxes on the power it is selling to the Alabama Power Co., for this hydroelectric output represents about one-third of all the electricity in the entire State. Just as the State of South Carolina had to pay taxes when | it was in the whisk lling business, | under its dispensary system, so the Fed- eral Government at Muscle Shoals should pay taxes to the State of Ala- bama for selling power, they assert. Any private power company in Ala- bama, they say, would be handicapped | by reason of the Federal Government's tie-up, for, while the question of what | 1> do with Muscle Shoals has been de- bated vigorously in the halls of Con- gress for years, Uncle Sam for four years has been engaged in the manu- facture of hydroelectric power. Uncle Sam is in the power business, the State’s lawyers contend, and while they are not saying that he cannot do this, they insist that he shall pay a tax into the State treasury. The State of Alabama is belng hampered, Mr. Knight and his associates maintain, by the situation under which it is not col- lecting taxes from Uncle Sam. The big question to be threshed out in the Supreme Court of the United States is—Is the Federal Government exempt from taxation at Muscle Shoals? ‘The Court of Claims said it was, when the State of Alabama lost the case there, but the Supreme Court of the United States, in granting a petition for a writ of certiorari, agreed to pass upon the question. Mr. Knight and his associates were in lerence here today to lay the undwork for their case before the thest tribunal in the land. YOUTH FOUND SLAIN | ON LONELY ROAD| Polios Hold Two in Jail at Dan- ville—Say One Has :'/: Confessed. Special Dispatch to The Star. o DANVILLE, Va., December 11.— George Meuse, 23, and James Meuse, 16, brothers, are under arrest by Pittsyl- vania County authorities in connection with the murder of Claude Alen, 17- year-old farm boy of near Cascade, whase body was discovered yesterday on the side of a lonely road not far from his A A tie , his younger brother, to a tree to whip hifm. Young Allen had been missing from his home since Saturday. SMITH 15 GRILLED HE EVENING ind Government_operation of the ral BY SENATE GROUP Members of Committee Indi- cate Plan for Probe of New Power Commissioners. (Cantinuied From First Page) who had to support the municipal | lant. “If I thought that the case was hopeless,” said Dr. Smith, referring again to_the questions put him by Senator Howell regarding the higher rates charged this country for electrical power, “I would not be in this chair now.” Dr. Smith's statement was interpreted as meaning that he hoped regulation of electrical power in this country would result in more favorable rates for the consumers and in great- er facilities in service. He indicated in his testimony that regulation was a growth and develop- ment. He called attention to the fact recently, it has been stated, that the bill paid for electrical light and power by the people of California had been re- duced about $16,000,000 through the efforts of the regulating commission in that State. Senator Brookhart of Jowa demanded to know whether Dr. Smith would favor the Government's taking over of a great superpower system of electrical development - and distribution at -the end of the 50-year period for which permits have been and are issued by the Government to water power companies. Op} Government Ownership. “I personally will not be called upon %o vote on such a proposition,” replied Dr. Smith, meaning that his term of office as a power commissioner will have expired long before that time ar- rives. “But if I had to vote on such a proposition, I would vote against it.” Senator Brookhart suggested that Dr. Smith was imbued with a fetish a; WobpwAaRrD w=The Christmas Store — during the w:m m:;’“m:“ Ggeen indi- cation enoug! vernment should not undertake such operations, Glenn Is Aroused. Senator Brookhart bhegan a series of questions and an argument to show that the Government tion of rail- roads had not been a fallure, as com- pared to private operation. ‘This roused Senator Glenn of Illinof “I object,” Senator Glenn sald, the witness being asked questions as to what he would do if he were alive 50 years from now and about Government operation of railroads. This is & busy committee.” Senator Couzens, chairman, also sug- gested to Senator Brookhart that the operation of the railroads had nothing to do with the power commission and that he was gett rather far afield in his investigation. Brookhart on Record. ‘The Iowa Senator demurred to this, asserting that the question of Govern- ment ownership and operation did enter into the water power business. He con- cluded his questioning of Dr. Smith, however, after a brief statement placing himself on record in favor of Govern- ment operation of rallroads. Senator Wheeler of Montana took up the interrogation of the witness, “I take it,” said the Montana Senator, “that you are opposed to Government operation.” Dr. Smith replied that Senator Brookhart's question had related to the Government operation of & super-power system. He said that he considered a system of such size too great either for Government operation or for private operation. This led Senator Wheeler to comment that at present the power systems of the country were really controlled by & few men and suterlock- ing corporations. Df. Smith replied that he was aware there was a large amount of inter-connection and that within certain limits this might be proper. “I have no financial interest in any power company whatever,” said Dr Smith. He called attention to the fact that the statutory provision of the law & LoTHRopP e e Chiristmas Shopp‘ing Wwill Be Enjoyable if You . Visit Our Tea Room for Luncheon or Tea Tempting luncheons are 2:30. The atmosphere served from 11:30 to is quiet and refreshing, the service expert and the cuisine excellent. 4 Noonday Luncheon, 85¢ Special Luncheon, $1.25 Also a la carte service Afternoon Tea is refreshing after a busy day of shopping and is served— 2:30 to 5:30 Bt e o s 2% any such investments. Questioned on Letters, Smith &% lengtn regaraing s letters a g six which Dr. Smith wrote in 1924 for glblluunn in Maine during the fight that State over a proposal to per- mit the exportation of hydroelectric T ‘The u]:' lnn}:llne tZ!'ohlbl!‘l such e n. water- Companics. havesought, the Fight. io export power. Dr. Smith's letters were in the interest of exportation on the ground that the development of the g power resources of the State would aid materially the le of the State and result in a reduction of taxes on the 0w et thing that “Isn' a singular you should have taken the side of ‘the water-power companies in this con- troversy,” asked Senator Wheeler. “I thought I was on the side of the public,” said Dr. Smith. He explained that he is a citizen of Maine and votes there, although he has lived in Wash- ington as an official of the Government ever since 1896. As a citizen of Maine, he contended, he a perfect right to take part in a fight in which the people of ‘the State were interested. He said he would not think of sending such letters as he did to Maine to Mon- tana or any other State in which he did not reside, Senator Wagner of New York asked ) Dr. Smith if he had taken part in any lied” that the on paign hat repl only cam & he had interested himself in were those relating to water power in his own State and the con y over prohibition. In both, he said, he considered that had acted in the interest of the “I was not making a plea in of the Maine power company,” said Dr Smith, “but on behalf of the people of saine.’ Senator Wheeler wanted to know Wwhether Dr. Smith had consulted with the power company or with any power interests before sending his letters to ublie. half ine. “I consulted with no power interests,” was the reply. Sees No Overlapping. Earlier in his testimony, replying to & question by Senator Couzens, Dr. Smith said that he belleved the Federal Gov- ernment could regulate electric power entering into interstate commerce with- out treading on the toes of the State regulatory bodies. He said that the intra-State produc- tion and distribution of electric power could well be left to the State commi: sion, but that the interstate or inter- national trafic and electric power should be regulated by the Federal Government, “if it cannot be accom- plished by the States involved.” Dr. Smith said that he was concerned with the fact that the people want ade- COAL Special Night Phones For Delivery Tomorrow Phone Us Tonight Nat’l 3068 Met. 4500 to 11 P.M. Physicians to Your Furnace “Ailing furnaces”—furnaces that need expert attention to put them in good work- ing order—are our special- ty. If you have one in your home, we'll clean and in- spect it at nominal cost. We'll also be glad to show you how to get BETTER heat with AGNEW SUPE- RIOR HARD COAL. For furnace first aid, call us. JOHN P. AGNEW & COMPANY, Inc. ' 728 14™ STREET, N.W. Phone : NATIONAL 3068 Look for the Agnew Markers scattered throughout every ton of AGNEW SUPERIOR HARD COAL of electric power at the lowest le rates. He said he be- lleved that the United States was in- sended to be one Nation “in an economic sense” and that in such economic ques- tions he was not governed so much in quate sup he | his opinions by State lines. DR. SIMON TO REPEAT ADDRESS GIVEN IN FORUM Many Requests Have Come for Repetition of “Why I Am a Jew,” Delivered Last Month. In response to numerous requests, Dr. Abram Simon, rabbi of the Washington Hebrew Congregation, will repeat his address, “Why I Am a Jew,” which he delivered in the widely advertised re- ligious forum last month, at 8 o'clock tomorrow night in his temple. Dr. Simon appeared in the forum with Clarence Darrow, nationally known lawyer and agnostic; Dr. Jason Noble Plerce, pastor of the First Congrega- tional Church, representing Protestant- ism, and Quinn O'Brien, Chicago lawyer, who championed Catholicism. Since that forum Dr. Simon has been asked by persons of virtually every sect to repeat his part of the religious dis- cussion. BILL WOULD PUSH TRANLE BUILDING 55 Completion by 1935 or Earlier Seen if Measure Passes Congress. Continuing the present rate of prog- | Tess, the Federa] building program efor | the Mall triangle between Pennsylvania |avenue and | by 1935 and probably sooner if & bill | report favorably today from the House Committee on Public Buildings and Grounds is passed. Acting Supervising Architect James A. Wetmore testified regarding the ac- celeration of work on the Mall triangle and said that the entire building pro- amn’:dmrbolughouz the country can be considerably expedited by the passage |of the bill which Chairman mlmfir the House Committee introduced at the request of the Treasury Department, The House commit! so-called cost-plus Sectetary of the Treass con- to select tractors and direct lhen? to erect " ings on a cost-plus basis. Chairman Elliott explained that those In charge of the Federal buil now “cut across lots” in this work, which will, in a measure, relieve unemployment conditions, the Mall will be completed Assistant Penal Farm Quarantined. VANDALIA, IIl, December 11 (4. The Illinols State Penal Farm, mear here, has been placed under quaran- tine for spinal meningitis, Officials sald yesterday one case had been discovered, but every Eu\l&n had been taken to prevent spread of the disease. W. 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