RULED OUT.

Auckland Star, Volume LXVII, Issue 193, 15 August 1936, Page 20

RULED OUT.

CANADIAN 'NEW DEAL.'

LAWS UNCONSTITUTIONAL

TWO ABE UPHELD.

OTTAWA (Canada), July 20.

After prolonged consideration the six judges of the Supremo Court of Canada have passed on references submitted to them by 'the present Government of Mr. Mackenzie King concerning eight reform laws enacted by Parliament ill 1934 and 1935 when Mr. R. B. Bennett headed a Conservative administration.

Two of the most advanced laws written into the Statute Books in years were declared unconstitutional —the Natural Products Marketing Act and the Employment and Social Insurance Act.

One was declared unconstitutional in part —the Dominion Trade and Industry Commission Act.

Two were upheld—the Farmers' Creditors Arrangement Act and Scction 498 A of the,. Criminal Code.

The unices were divided three to three on the Minimum Wage Act, 48-liour week and the weekly day of rest.

Law officers of the Dominion are studying the judgments, hut there is one thing'certain—there will he appeals to the I'rivv Council in England,- prooably bvagreement with the provinces who attacked the eight laws before the Court.

-The decision of., the Court will lia\ e .no immediate repercussions .because ltje not binding, merely an- opinion. When the final decision of the Privy Counc ' is made, the Government will *ta>t recasting -the. laws in the light of the judgments, but this will, take months. It was the end of the longest and most important constitutional reference in the 01-year history of the Supreme Court. The hearing took two weeks, with the evidence running to ->00,000 words. The judges took five months to write their decisions. Hero is a short description of each law; — . Natural Products Marketing Act. A device to permit groups of producers o natural products to set prices and regulate marketing of their products both as to quantity- and quality. There are le> marketing schemes in operation fiorn Nova Scotia to British Columbia, but they will not be affected directly by the judglnent which went against the law. Employment and Social Insurance Act. This Act never came into operation, although preliminary appointments of commissioners'were made. It established a system of unemployment insurance, with a central, fund "to which .the Dominion and workers contributed, When out of work, men and women could draw doles for stipulated periods. It was declared unconstitutional.

Dominion Trade and Industry Commission Act.—This resulted from the Price Spreads Report, the commission to act as a sort of referee over industry. It was declared unconstitutional in its most important aspect, the right of the commission to approve price and production agreements among industrialists. Farmers' Creditors Arrangement Act. — This Act, approved by the Court, enables farm debts to be scaled down, and has been used by thousands of debt-embar-rassed farmers to stay on the laud.

Section 408 A of the Criminal Code.— This also resulted from the Price Spreads report, and inserted in the code fines and imprisonment for unfair, unethical business practices. It was upheld.

Minimum, Wage Act. —This was the first of the three laws on which the court was divided three to three. It never came into operation but provided for Dominionwide minimum wages to take the place of provincial laws which vary both as to standards and efficiency.

Forty-eight-hour Week.—This was another Act that never came into operation, but provided for a maximum working week of 48 hours 111 a long list of industries.

Weekly Day of Rest.—This also never came into operation, but stipulated that workers in most industries must have one day's rest in seven. In a general way the Dominion argued before the court that each of the eight laws was constitutional,-that Parliament was within its legal rights in passing it. The provinces attacked the laws, insisting the Dominion invaded their legislative fields as defined by the British North America Act, the constitution of the country.