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...opinion of Federal Judge William Irwin Grubb of Alabama, the Government has no right to engage in the power business except to dispose of a surplus incidental to the exercise of some other Constitutional function. So said the wiry little septuagenarian jurist last autumn during the legal preliminaries of an injunction suit to restrain the Tennessee Valley Authority from buying private Alabama power properties (TIME...

Author: /time Magazine | Title: Business & Finance: Grubb on Surplus | 3/4/1935 | See Source »

Last week in Birmingham Judge Grubb granted the injunction, holding that TVA's power plans far exceeded any reasonable surplus that might be generated in connection with flood control, navigation or national defense. He expressly avoided passing on the constitutionality of the Tennessee Valley Act itself but he did find its chief activity most certainly illegal. Excerpts from his oral opinion...

Author: /time Magazine | Title: Business & Finance: Grubb on Surplus | 3/4/1935 | See Source »

...wherefore are again being asked by the courts, the legislatures, and individuals. It is a healthy sign of a nation's returning to a way of rational thinking, devoid of the supercharged emotionalism and propaganda that has characterized the past few years. On Friday, Judge Grubb, of the U.S. District Court in Birmingham, Alabama, termed the sale of power by the T.V.A. illegal. Moreover, he granted a permanent injunction which will prevent 14 cities from borrowing P.W.A. funds "to provide a market for T.V.A. power...

Author: NO WRITER ATTRIBUTED | Title: CHECKMATE | 2/25/1935 | See Source »

...decision, Judge Grubb trenchantly stated that the evident intention of the T.V.A. was "to pursue the business of a utility." At long last the root of the matter is unearthed. Although it has been clearly demonstrated that private utilities are fairly skillful jugglers of statistics and ideas, they have much to learn from the government. To obscure the issue, and to create a fantastically low rate-base, the Norrisses and Wheelers with the able assistance of Mr. Roosevelt, have written off huge sums as "sinking-fund expenditures" for work relief, navigation, flood-control, nitrate manufacture, and similar projects. This remarkable...

Author: NO WRITER ATTRIBUTED | Title: CHECKMATE | 2/25/1935 | See Source »

Magicians may create optical illusions, but somebody eventually finds them out. Judge Grubb has done just that. He could not see that "the United States had any right, to go into private business." The right, discreetly disguised, will ultimately be brought before the Supreme Court by government attorneys, and decided there. However, some protection of private property has been granted for the mean-time by Judge Grubb, before impetuous governmental authority completely crushed it. As has been demonstrated in the recent Gold Clause decisions, it is extremely difficult to decide a case negatively after a "fait accompli...

Author: NO WRITER ATTRIBUTED | Title: CHECKMATE | 2/25/1935 | See Source »

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