THE LITTLE MAN

In an effort to check the granting of injunctions against governmental agencies, including the T.V.A. and possibly the N.R.A., Senator Norris and Representative Rankin are proposing the posting of a bond by the petitioner. This would be large enough to cover "all expenses to T.V.A. in defending the suit and all its losses pending a final decision, including the income from the sale of power of which it was deprived." Hidden in this terminology is a serious menace to the freedom of the courts.

Even now it is admitted that individuals and small concerns generally lack sufficient capital to carry on a protracted legal battle to protect what they regard as their rights. The proposed legislation intends to make prohibitive what was improbable before. It is the small stock holder in public utilities who is the chief sufferer as T.V.A. plans are being carried out, and it is the small business man who finds the N.R.A. particularly oppressive. It requires little imagination to see the administrative statisticians conjuring up a fantastic loss from the hypothetical "sale of power," plus extravagant legal charges. An "adequate" bond would undoubtedly require a large slice of a millionaire's fortune. Large, wealthy corporations also would hesitate about putting up such a bond, particularly when the bond would be for-felt if their suit failed in the highest court.

Although the proposed legislation may or may not be pigeon-holed, it is significant as another example of high handed governmental procedure, and is said to be favorably regarded by the administration. Certainly the bill must be strenuously resisted, unless the people are willing to have it forced down their throats. It is well to remember in connection with the governmental attempt to invade the territory of private business, that Public Utilities Commissions have been set up in the public interest and may be made more effective. Further, consumers may compel the commission to fix "fair" rates (usually a 6 per cent return on invested capital) by obtaining a court writ of mandamus, and stockholders may receive an injunction from the court when the commission's rulings amount to confiscation of invested capital.

The present plan, practically speaking, proposes to eliminate injunctions against the T.V.A., even though Alabama Power Co. stockholders, for example, realize that T.V.A. invasion of the power field will mean virtual sequestration of their property. At present it is usually too expensive for small groups of vitally interested individuals to engage in a long legal battle with the government. To make it practically impossible, several of our "public servants" are vigorously pushing a bill to require the posting of bonds. The small man would thus have to mortgage everything he had to file a bond with astronomical figures.