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FEB 12 1925

KOGDICAL ROOM CENERAL LIBRARY UNIV. OF MICH.

Law and Labor

A Monthly Periodical on the Law of the Labor Problem

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Annual Meeting and Banquet of the League at the Waldorf-Astoria, March 6, 1925.

THE LEAGUE FOR INDUSTRIAL RIGHTS

To

Preserve constitutional rights in industrial disputes.

Protect employer and employe against illegal strikes and conspiracies.

Secure legal responsibility and integrity of contract.

Safeguard industrial liberty.

Create a public policy on industrial warfare.

PUBLISHERS OF Law and Labor

MURRAY T. QUIGG, Editor

50 CENTS THE COPY

THE LEAGUE WILL APPRECIATE THE COURTESY IF DUE CREDIT IS GIVEN WHEN REPUBLISHING MATERIAL FROM LAW AND LABOR

SUBSCRIPTION $5.00 THE YEAR

THE NEW LEADERSHIP OF THE AMERICAN FEDERATION OF LABOR..
RAILROAD LABOR OFFICIALS Ordered to Appear Before the Railroad Labor Board by the Federal
Court

31

32

ALL INTERFERENCE With the Operation of Taxicabs Transporting Interstate Passengers Between Railway Terminals Enjoined by the Federal Court

33

....

THE EXISTENCE OF A STRIKE is Not in Itself Sufficient to Create the Inference of Probable Injury to Employes, and an Employe Suddenly Attacked Cannot Recover Damages from the Employer

35

THE MINNESOTA ONE-DAY-REST-IN-SEVEN LAW Denies the Equal Protection of the Laws and Is Unconstitutional..

37

FREEDOM OF ASSOCIATION AND TRADE UNIONISM: An Introductory Survey by Jean Nicod. Reprint from the International Labour Review, April, 1924

38

THE CONSTITUTIONAL GUARANTEE OF FREEDOM OF SPEECH Protects the Right to Call a Union Deserter a "Traitor" and So Doing Does Not Violate An Injunction Forbidding the Use of the Word "Scab" or Other Opprobrious Epithet

...

45

KU KLUX KLAN OUSTED FROM KANSAS for Doing Business Within the State Without a Charter 47 THE RIGHT OF A LOCAL UNION to Preserve Its Autonomy in Accordance With the Constitution of the Union Will Be Protected by Injunction..

48

CONTRACT IN LIEU OF AN INJUNCTION Accepted by the Parties to a Trade Dispute on the Terms Suggested by the Court...

49

PROGRESS OF UNEMPLOYMENT INSURANCE in the Cloth Hat and Cap Industry. By J. M. Budish

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WORKER AN INVESTOR

52

The New Leadership of the American Federation of Labor

The growth and success of human institutions bears an analogy to the growth and success of human beings. The first problem is to secure that proper and sufficient nourishment to keep the individual alive. That is true of an institution. But as it acquires the physical strength of a vigorous membership, the survival of the institution, like that of the individual, depends upon its ability to lead a life consistent with the well being of the society of which it is a part. The trade union movement is no exception to this rule. A policy of physical agrandisement by the mere acquisition of numbers, however acquired, will not serve to protect it. If it is to survive, its activities must be ordered not only for the satisfaction of its own purposes, but also in a way consistent with the well being of the industrial order.

The bare knuckle days of trade unionism are over. The law has established the trade union not only as a proper but also as a responsible agency. It shall enjoy the common protection and it does enjoy in several respects special protection. It is now established in the federal and a number of state courts that a trade union may be sued at law as an entity distinct from its members and held for damages for unlawful injuries caused by its activities. The trade union must submit its acts to the common tests of lawful conduct. It must mold its aims to purposes which do not conflict with common morality. Whilst the trade union was thus arriving at its majority notable changes have been going on in the industrial terrain. Ownership of the great industries of the United States is now no longer in the hands of the empire builders and their aids and allies. The American Telephone and Telegraph Company is owned by 300,000 people. The United States Steel Corporation is owned by nearly 200,000 people. The Class I railroads are owned by 177,000 people. Many of these owners are banks, trust and insurance companies and other fiduciaries, owning on behalf of other thousands. The welfare of the dominating industrial enterprises is no longer a purely private affair. It is a matter of public interest and concern. The large units of industry have taken on an institutional character. Today, artisans and wage earners, small merchants and professional men,-in other words the majority of those whose collective opinion is public opinion, have substantial ownership in these great enterprises.

These industrial institutions value the good will of their employes. They are willing to pay for it. But having paid for it they want it. They do not intend that it shall become the plaything of misrepresentation. The owners and the managers of these large industrial units are seeking industrial stability. They know that this stability can only exist where the wage bargain is one which the

employes can reasonably agree to. But the mere fixing of "standards" of wages or hours by national agencies does not in and of itself establish fair wages, hours, and working conditions. Fair wages, hours, and working conditions must meet the exigencies of industry. They must take into consideration the circumstances of both employer and employe and the problems which both, as participants in the industry, cannot escape.

The new leadership of the American Federation must comprehend this condition of things. Perhaps in a measure it does. Mr. Green, the newly elected president of the American Federation of Labor, says in an editorial in the January issue of the Federationist:

"While striving unceasingly to achieve the objects of trade unionism, we shall bear in mind always our obligations as American citizens and we shall contribute our full part toward the upbuilding and safeguarding of our country as citizens. We shall never permit our devotion to our country and to our American institutions to be successfully challenged.

"Our demand upon society for better wages, for better and fairer conditions of work and living, for freedom and justice in all our relations, rests always upon our inalienable right to liberty and the pursuit of happiness. Our problems must be met and our progress achieved in accordance with American ideals and traditions and on a basis of American fair play."

However, it will serve no purpose to organize workers under the pressure of the picket line merely to increase the apparent power of the union. It will serve no purpose to establish a standard if employer and employe cannot work contentedly together to produce those values which are nesessary to uphold the standard. It will serve no purpose to insist upon the "rights" of "organized labor," if the organized workers cannot compete in peace of mind and public esteem with other employes who are working in effectual agreement with their employers through intrafactory organization plans or in other forms of mutual understanding.

In short the trade unions cannot place themselves on a non-competitive basis either morally or economically. One cannot believe that the shop crafts on the Baltimore and Ohio would have as soon entered into a race of efficiency, if the railroads had been monopolized by the unions as in the case of the building trades. It was the competition of factory representation in transportation which forced the new endevaor. So, in the terms the unions demand, in the service their membership is willing to give, they must compete with the terms and services procurable under other systems of bargaining with those employers who are able, ready and willing to offer the

highest standards which the returns from production dells, Mike Boyles, Fred Maders, John McNamaras and can afford. their ilk. The theory that the American Federation of Labor has nothing to do with the local affairs of its affiliated unions is not applicable on this broad moral field. The American Federation of Labor appeals to the public for moral support of the trade union movement. It owes it to itself and the public to see that no part of trade union movement is permitted to become the instrument of crooks, scoundrels, and thugs.

There is some reason to believe that trade unions have some consciousness of this fact and appreciation of the lessons of their experience. The American Federation has within the last year organized a legal information service. It is giving some attention to the development of law in the field of employer and employe. There is also much more talk in labor circles of labor education. Schools are being established for the training of professional labor leaders and business agents. Some unions are attempting to collect and perhaps actually to study data on the conditions and problems that surround the business features of their trade. Several unions have entered the field of banking. These unions are being forced to give attention to the intricate problems of finance. Other unions have undertaken mining and manufacturing enterprises in which there is a store of practical experience. Some unions, finding themselves in direct competition with labor operating under nonunion plans of mutual understanding are bending their efforts to the making of production records and the reduction of labor costs. these are hopeful signs. They suggest a conscious responsibility for getting along in a world as it is and helping to change it, if at all, by improvement through service rendered.

All

Now would seem a happy time to advance this line of endeavor. Now would seem a happy time to abandon further attempts to establish arbitrary standards that cannot be maintained and that lead only to unrest, disorder, and unemployment, as under the National Agreements on the railroads and the existing agreement in the coal fields. Now would seem the time to abandon the waste and strifeprovoking jurisdictional strike which forces employers and employes alike to stand aside in idleness while two unions exhaust their energies fighting for possession of the same job.

Certainly the time is at hand to cleanse the labor movement of its professional criminals. There is and there. can be no excuse for sanctioning Sam Parks, Robert Brin

The new leadership of the American Federation of Labor comes in at a propitious moment. The spirit of optimism is abroad in the land and in foreign lands. The tide of socialism has been stemmed. Apparently the productive machinery of the world is to be given an opportunity to go ahead again. Quacks are to be relegated to the cushioned parlors and the heated studios which are their natural habitat. This should afford to organized labor the opportunity to be judged upon its merits,-an opportunity which is not always present. This should afford to organized labor an opportunity to demonstrate what service or benefit to it the community may depend upon if the leadership of organized labor in determining and stating the interests of the wage earner is accepted.

The American people are not going to abolish the independence of their judiciary to interpret and uphold their rights against the fanaticism or the subjugation of political majorities in order to permit organized labor to procure the passage of laws granting it special privileges. The American people are not going to put up indefinitely with any labor organization which harbors professional crooks and gives them as a weapon for their purposes the economic power and apparent moral support of thousands of honest wage earners. The American public is not going to suffer indefinitely the losses of protracted large scale strikes when means of agreement upon reasonable terms, through the aid of disinterested agencies, is at hand.

The American people are entitled to know if the American labor movement realizes these things and will take the opportunity which now affords to demonstrate that it does realize these things and will act accordingly.

Railroad Labor Officials Ordered to Appear Before the Railroad Labor Board by the Federal Court

Railroad Labor Board v. McGuire. (United States District Court, January 12, 1925.)

The Railroad Labor Board brought proceedings in the United States District Court to compel the attendance before it as witnesses of certain men who are officers of train service brotherhoods. Motion was made to dismiss the proceedings. The motion was overruled, 6 Law and Labor 318. Motion for the issuance of the order for attendance of the witnesses came on to be heard. The

motion was granted and the Court filed an opinion.

It was urged that the order should not issue because in effect it compelled the employes represented by the witnesses as officers of their unions to become parties against their will to a proceeding before the Board. The Court held otherwise, saying:

"The action of the Board does not force the em

ployes to become parties to a proceeding. It does not place them in a situation different from that of any other witness. The statute invests the Board with power and imposes upon it the duty to investigate the matters in controversy between the carriers and their employes and to report concerning the same. It is given authority to summon witnesses to ascertain the facts upon which to make this report. Certainly a witness is not exempt because he happens to be an employe of one of the carriers or is interested on one side or the other of the controversy."

It was contended that the Court in this proceeding was being used as an aid to the formulation of a public policy in violation of the theory of its judicial functions. The Court held this to be without foundation, saying:

"The Court is not called upon here to aid in the formulation of a public policy. The Labor Board is charged with the duty, in certain situations, of rendering decisions concerning disputes between carriers and their employes. While the decision upon the issues involved (using that term in a broad sense) is not enforceable by process, it does have behind it the force of public opinion. "The function of the Labor Board is to direct public criticism against the party who, it thinks, justly deserves it.' Under some circum

stances this is more effective than fines or jail. The Court is called upon to enforce the right of the Board to the evidence required as a basis for a decision concerning the dispute which it is investigating. And, as I have already held, this function is a judicial one."

Objection was made that the chairman of the Railroad Labor Board was disqualified because of his public utterances and that the Board with a disqualified chairman sitting was not entitled to the aid of the Court. The Court held otherwise, saying:

"It is contended that the prayer of the petition should be denied because of alleged disqualification of the Chairman of the Labor Board. The disqualification, it is asserted, arises from certain public statements manifesting prejudice against the defendant. The Labor Board does not act as an arbitrator within the true meaning of that term. It is an administrative body clothed with certain statutory powers. Its acts, if arbitrary, are void. Whether it has acted arbitrarily, however, must be determined not from the state of mind of one or more of its members but from the inherent quality of the acts themselves."

The decree for the attendance of witnesses was granted.

All Interference With Operation of Taxicabs Transporting Interstate Passengers Between Railway Terminals Enjoined

by the Federal Court

Toledo Transfer Company v. International Brotherhood of Teamsters, Local No. 20. (United States District Court, January, 1925.)

The Toledo Transfer Company operates taxicabs in Toledo, Ohio. It has contracts with various railroads entering Toledo, to transfer their passengers from one line to another upon their through tickets in interstate transportation. Under these contracts the company is obliged to meet all trains and to transfer to other stations passengers who present coupons issued by the railroads. These coupons are redeemable by the railroad at an agreed price. The drivers of the company who were unorganized, struck. The Central Labor Union of Toledo undertook to help them and to direct the strike. The strikers picketed the railroad station and the offices of the company. The picketing was so successful that the company contracted with the Toledo Brown & White Cab Company to perform its contract for it while it was hindered by the strike. The company, by its attorneys, Tracy, Chapman & Welles, finally brought action in the Federal Court against the Teamsters' and the Central Labor Union to enjoin the picketing on the ground that it constituted interference with interstate commerce. The Federal Court issued a restraining order.

Upon the return of the restraining order counsel for the defense objected that the Court was without jurisdiction to entertain the complaint. The Court, Killits, J.,

sitting, answered this objection from the bench, saying:

"So far as the objection to the jurisdiction of the court is concerned, we have to say this, and we will say it somewhat emphatically: on the showing made in the petition, it appears that The Toledo Transfer Company, and its agents lawfully employed by it, are, in one line of the activities of that company, engaged in interstate commerce. There cannot be any question about that, because such a company as this is a necessary connecting link in the transportation of passengers from one railroad to another engaged in interstate commerce; and if this company is engaged lawfully in a contract to carry passengers in interstate commerce, then it is entitled, to the extent of that much of its business, to the protection of a federal court. That much of its business is as much entitled to the protection of this court as if it were the New York Central Railroad. There cannot be any question about it."

Explaining the power of the court to afford adequate protection to interstate commerce, the Court addressed some of the individual defendants who were present. After stating that the Court assumed that it was a real strike, but that the Court was not concerned with the merits of the strike, Judge Killits said:

"We do not care about the benefits or disasters of

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