You are right, limiting the role of the clergy and their numbers was one of the biggest services of the Reza Shah's government. I think beating the Akhond symbolises that.

What is the role of Young Turks in this? I know there were close ties with Young Turks in Turkey but I am not sure where they come into introducing such law in Iran?

I was using Young Turks as a general exression meaning the Iranian equivalent to the Young Turks of Turkey (Young Turkish Officers who were behing Atta Turk). There was a core of young educated Iranians who supported the fast modernisation of Iran. Unfortunately we have little in the way of records of their societies because Reza Shah in his impatience forbid such associations and political parties, good or bad.  The Young Iran Society (Iran e Javan) and later Party (the link is to Wiki Persian) or the party created by Ali Akabar Davar namely the Radical Party (we obviously know the names of the leaders such as Davar, Hekmat etc but there were so many technocrats supporting them whose work is not fully recognised, slowly we have recognized the contribution of some such as Dr Abolghassm Bakhtiar and those who helped him create the first Faculty of Medicine in University of Tehran).

I recently found some material including photographs of Iran e Javan gatherings in Elahieh Gardens. I will put them up in my blog soon

http://www.irdc.ir/fa/content/5476/default.aspx

Reza Shah might have been trying to point out that wearing a turban is not a right but a privilege acquired via making effort, like carrying the title of doctor. Similarly, he took away the “-dowlah” & “-saltaneh” suffixes that were handed out by some Qajar Kings for no reason as well. 

Thanks for the link fozolie, which reminded me to mention "Special Clerical Court" of IRI. They made this court to silence clerics who did not belived in governance by clergy at all or had other interpretation of Islam. 

Dear Fozolie,

Thanks for the clarification. It has now made it clear.