Nos. 403 and 404.

297 U.S. 288 (1936)


Supreme Court of United States.

Decided February 17, 1936.

Attorney(s) appearing for the Case

Messrs. Forney Johnston and James M. Beck, with whom Mr. Joseph F. Johnston was on the brief, for petitioners.

Mr. John Lord O'Brian and Solicitor General Reed, with whom Attorney General Cummings, Mr. James Lawrence Fly, General Solicitor, Tennessee Valley Authority, and Messrs. Paul A. Freund and Allan D. Jones, and Miss Bessie Margolin were on the brief, for the Tennessee Valley Authority, respondent.

Mr. W.H. Mitchell submitted for the City of Florence, respondent.

Messrs. Thomas W. Martin, Perry W. Turner, and Wm. Logan Martin submitted for the Alabama Power Co., respondent.

Messrs. Courtland Palmer and Jehu T. Stokely submitted for The Chemical Bank & Trust Co., respondent.

MR. CHIEF JUSTICE HUGHES delivered the opinion of the Court.

On January 4, 1934, the Tennessee Valley Authority, an agency of the Federal Government,1 entered into a contract with the Alabama Power Company, providing (1) for the purchase by the Authority from the Power Company of certain transmission lines, sub-stations, and auxiliary properties for $1,000,000, (2) for the purchase by the Authority...

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