t - International Brotherhood Of Electrical Workers

64
ARNOLD Iudn Beda
TO ROAST PIG
The Journal of ELECTRICAL WORKERS and Operators
Whatever may have been the doubts
on coengresions intent in the case of the
Sherman Act, with all the agitation in
the intervel.. .ig yauIs, there should have
been litthle doubt of the purpose of the
(layt.on Act menlhdnents. They inlme
as the inswer of labor's incessant t deiland
for clarifiecion of the Sherm.an. Act
in reltion to ,labor unions.
By HENRY E'STEIN, Solicitor General, New York
lABO(R'S "MAGNA CHARTA"
The ClaytoLIn Act was passed in October,
ILI4. Sections 6 and 20 are the
Equliiiy .. der the In. ivj, the Co*at
i it oi g.a..antees lal be violated in
thr.ee ay;t:
First, bit legislation which is onjnlst
in, its icceptint;
Seco'nd. iy jdnitial constrIction
uhich mlrkes what 'ould thewise hj be
a jlst law,. ntnjlf inl its onp.leation;
Third, by tnjlst ditlseinitatilt in
lhe adninisti atiol of law by 9omrernvientfs
efl),ree"net ageinies.
T'here is no nlre Ili.il.l.ii thireat II
labor's right to eqiality ,ndei l he law
thalo the recently e ried ipplationl of
the Sihermllan* Aet by the [. S. DepatnLentl
of Jslice whieh .seeks to soeti l is tiolatinns
under th, third clssijication by
inv okaiq jdicial pi. ecedets . which were
h.em.s.lna 'inat filts ,tide,¢ lthe second
classi.fiction.
in vi.. of this threat, it was fitting
that lhe (Confe~ cce ont (o,,tellpoia.y
I*'bl .e..s in L hboI Latw atd Reintiors,
held at In'shington, D.C., in Jan larmy
tiltdee the sponsorship of the \ationla
L*utL ers G,,ild, selectcld as its first topic
"Allti-TsIt L rid ,irs L.bo, .". The r
foll o..s a c andeitrolt of at, add,'ess o
thin sbject delivered at the corffee.ne
by the ion. Hfeny Ei'stein, solicito,' g,ean
of the state of Ne, York. It is
regretted thrL iace does not jiioenit a
pubieaio*n of the en tire pper, and it is
hoped that the qfality of tie analysis
does not sffer too muic.h by the omissnios.
HE anti trust laws were the first seriou
political efaorts to check the
malignant growth of the corporate
power and by eonral to minimize its
threat to political democracy.
EFFECT OF SHERIMAN ACT
In 1890 the Sherman Anti Trust Law
was enacted. As lawyers, even as laymen,
you know its oinmon and accepted
applicability. Every contract, combinatim,
aid conspiralcy, in the forIn, of a
trust or otherwis', in restraint of trade
or cenimelee among the several states is
'illegal." Each violation is a misdem.ean
l, pnunish abi by file, i mprisonment
or both.
Section 7 enlables a persin damaged to
sue in the distrir toti ard '(cov. three r
times the daniage sustai.nId, plus cIlss
an,, attorneys fees.
The rapid develop.l.lt of large corporate
initrprises, of holing cdompairx es
with widespread power were klnoWln anti
feared. Railroads, sugar refilerlies, ste(el
manufacture, tobacco, oil these were aIready
at th, corporate stnge where the
ilapgor was foc, %eaIhh!. T'IhI purpose of
By administrative
legislation Department of
Justice repudiates dissenting
opinions of liberal
judges
the statute was clar, o pI c..t too
great con.einta.ntion of ,.cononic puower
with the inevitable injury to the conslnnor,
duo, to his lack .of wao.. to
combat such power. CetaiJldy hwhn enactd,
deslito its generai lanwuiage the
evidence does not disclose ..i.y intended
applieability to labor unions.
SHOCK TO LABOR
It was not until 1895 that the first
S.her.nal law prosecution canet to the
Suprime Court and the resull in the
Sugar Trust case was not .ncoulrauging to
those who had placed faith in the law
the corporations which onstitited the
monopoly of sugar refiling were held not
to be engaged in in erstat i co.inlnelct
But the shock of large coro'Iriate.. entrpise
on the eventual applcati.on of the
Act against railroad poo.s, agrii n t holding
companies, against tie oil ild tobacco
monopolies, was nothilng t th, shoc keceir,d
by labor when the same law was
held equally applicable to labor unions
enaged iin strikes aidii boycott of lnolunion
goods-the famous )anbury Hat
teis ease. At least capital had ample
warning in both the Act and in increased
demands,, for "teeth' in the law's enforcement.
Labor had no such warning.
As you know, in 1008 the highest court
handed down the memorable decision
holding all combination, which interfered
with initerstte commerce to be vioIative
of the Act. The court admitted that the
Sherman Act "had its origin in the evils
of niased capital," but since the Act
covered any combination in restraint of
interstate commerce. and since labor's
aim was here to stop the flow of connierc.--the
effect conplaincl of-the law
wits held operative.
It did not matter that the restraint was
'an incidient to labor's n. jor objective,
,>nelededy lawful, better wages and conditions
through labor's unity.
The statute having been held all in
elusive. the individual members having
known thie meaning of thle 'unfair lists"
which wrre withil the baIn tf the statute
as a restraint of intersateU trade; the
boyco t being proved, the judgjmeirt was
airned. Workers' families were evicted
from heir hoen s sic zed i, execution of
the judgmnet.
key proviions and have been so ttraled
l ll
by the Sliprlue C. .. They ae of sijif
cinct i.l.l.p i llaice to UL rlad in jillter
],,,,I
"Section 'i.h. I ltie labor of a hnlmuin
being is mit a c.i.i.mil.ity or arll, oif
CO hiielco. Nothflid coltainld in th, anltrust
laws llall he construed t, oIiid otie
existlgm s ,ie an leration of labori, griecuiturnd
or hor.ticulural organizatins, ill=
stiutedi for the purposes of nutu;iI help,
and not having capital stock or conductd
for Troe it..r to forbid Ilor rsrail, iidi
vidual n/heris. of such (ignrzatil.
frin lawffilly carrying out the legitinate
Wobjecs thereif; no haI such oI,
anzltkohiLs I ItIe ,nhenbcs thereof Iw
held odr crnsrled to be illegal co.nbilarioIls
or' 0irpirac.. ini restrmint of tade.
n ...h thi .n.. trust laws."
That would .... i fairly clear arid lweeping.
Lat hear I ouo:
"Section 20. I .And no such restrainili
ord er or injun.tion shall plohibi ilt y
e i$ror or persons. whether singly or in
co.crt fi , terminating ...
a)ny rlation
of enplvltlnll, or from ceasing to Ierfillti
any work or labor, or fr.n. rcIoln
eneding, adving,g, or persuading others
by ptaLceful .I.eans so to (do; or fro,, attendijig
at any place where any tuch
person or perl.son may lawfully be, for
tile purpose of peacefully obtaining or
cominutii:ating inJformatio., or roln
peacefully persuading any person to wet k
or to abstain froI. working; or (roI.
ceasing to patronize or to emplpoy all
party to ;uch dispute or fro,' rteon-
.rendinlg, adivillg, or persuading others
by peaceful and lawful means so to dio;
or from I ax ing or giving to, or withholding
fim, anty person engaggl in such
dispute, any strike beliefits or other
moneys or things of value; or from lracefully
iassembling in a lawful manner, and
for lawful purposes; or front lihing allny
act or thing which night lawfully be done
in the absence of such dispute, by any
party tlhreto; nor shall any of the acts
spec ified il this paragraph be coIidored
or held to be violative of any law of the
United States"
Also quit, a sweepinr exemnpLionl in
spirit as well as in terms Small wander
that wh,,l Congress gave this ains r toII
what Gomn pers called "Labor's ill of
Grievances," thte "old man'' haildl these
sectiOIS as labho's 'Magna Charta."'
liE COUP' nE GRACE
Such hop, howeso ver, were soon shatterei
TiLiP, tdi stigma of uniawIlfles
was ren.o.vel fnron labor ul¢los LS such
Ful'ther thon thnat rampant capital would
not yield. The '"rule of reason" was ,li-