PETROLEUM CONTROL
FEATURE OF "NEW DEAL"
DECLARED UNCONSTITUTIONAL
(Received January 8, 5.5 p.m.)
WASHINGTON. Jan. 7
The first decision questioning the validity of President Roosevelt's "new deal" has been made by the Supreme Court. By eight rotes to one to-day it declared the petroleum control feature of the National Recovery Act unconstitutional.
The Court made it clear, however, that none other of the multiple features of the Act was the subject o£ the judgment.
Presumably under the authority which Congress had granted him in the Act the President had decreed that petroleum in inter-State commerce was under the direct control of the Federal Government, and through various methods his administrators had curtailed production to such an extent that the price of the crude product had increased from 10 to 15 cents a barrel up to one dollar.
According to reports from the midcontinental producing area a severe drop in prices is expected immediately.
The N.R.A. received another blow to-day when the Governor of New Jersey revoked the State Recovery Act designed to supplement and strengthen the national law. He said the privileges given under the code were being abused snd henceforth it would not be operative.
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Bibliographic details
New Zealand Herald, Volume LXXII, Issue 22003, 9 January 1935, Page 9
Word Count
196PETROLEUM CONTROL New Zealand Herald, Volume LXXII, Issue 22003, 9 January 1935, Page 9
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