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the union was maintaining a strike for higher wages in violation of their agreement with the Carpenter Contractors Association. A carpenter thrown out of employment and a builder unable to build thereby recovered damages. The combination whose activities injured them was purely defensive and was prompted by the laudable

motive of compelling obedience to an existing contract in the carpenters' trade. Yet this motive could not justify an invasion of the right of a carpenter to work or of an owner to build a house. This decision is one of high authority and should put to rest the claims of the proponents of boycotts that the end justifies the means.

Individual Non-Union Contracts of Employment Will Be Protected

in Equity

A strike is ended when the employer has restored his factory to operation in
the normal and usual manner.

Moore Drop Forging Co. v. McCarthy (Supreme Judicial Court, Massachusetts, January 9, 1923).
Following a strike of the plaintiff's workers in protest
against a reduction of wages, the plaintiff employed its
workmen under individual contracts providing that
during the period of his employment no worker would
be a member of a trade union. Under such a system of
employment, the plaintiff filled all of the positions left
vacant by the strikers and restored the operation of its
factory to the normal and usual manner. Subsequently
the Central Labor Union of Springfield, Mass., com-
menced a campaign to resist the progress of the indi-
vidual contract system of employment and directed most
of its energy to an attack upon the plaintiff through
efforts to ridicule its workers, to advise them of oppor-
tunities of employment elsewhere, and to induce a boycott
of its products.

and recited in his report, it is plain that the third find-
ing was warranted. We are of the opinion that in
view of that finding when considered in connection
single justice was justified.
with the other findings the final decree entered by the

The plaintiff appealed to the court through its attorney,
Herbert A. Baker, Esquire, of Boston, for protection
against this conspiracy, and following a report of
the master, the Trial Court issued an injunction. 4
Law and Labor 286. Both parties appealed to the Full
Bench of the Supreme Judicial Court, which rendered
its decision affirming the decree below on January 9,
1923. The Court, in its opinion, after reviewing the
evidence set forth in our earlier report of the case, said:
"The master, upon all the evidence, made certain find-
ings, including the following: Third. That the Indi-
vidual Contract Committee of the Central Labor Union
about January 1, 1922, undertook to carry on a general
campaign against the "continuance and spread" of the
Individual Contract as a system of employment, and in
carrying on its said campaign against the continuance of
this system of employment did by its acts and doings
intentionally attempt to interfere with the plaintiff and
its business by endeavoring to influence persons not to
use its goods and by acts which annoyed and disturbed
its employes, and that said acts and doings of said com-
mittee were calculated and intended to injure the plaintiff
in the sale of its products and to cause plaintiff's employes
to leave its employ, and if continued are likely to result
in substantial damage to this plaintiff.'

"Upon the subsidiary findings made by the master

"It is obvious that the acts of the committee were for the purpose of endeavoring to influence persons not to use the plaintiff's goods; they were calculated to annoy and disturb its employes, and were intended to injure the plaintiff in the sale of products, and to cause its workmen to leave its employ to its substantial damage. The contention of the defendants that the acts of the committee were in furtherance of an educational campaign against the individual contract form of employment, and were not directed against the plaintiff, cannot be sustained in the light of the facts as found by the master."

Concerning the right of the plaintiff to determine the conditions upon which it would contract for the purchase of labor and its right to be protected in such contracts as it made, the Court said:

"The plaintiff was entitled to make it a condition that those entering its employment should not be or remain members of a labor union, and is entitled to be protected by the law and to receive whatever benefits may accrue from such a contract. * The right

of one to have the benefit of his contract is a right which can lawfully be interfered with only by one who is acting in the exercise of an equal or superior right which comes in conflict with the other."

Defendants contended that their campaign was part of their strike activities at the time complained of, May, 1921, and was justified by their legitimate interest in the strike at the plaintiff's shop in December, 1920. The Court, however, held that upon the restoration of the employer's business to normal the strike was over.

"The finding that in August, 1921, the plaintiff's business was operated in a normal and usual manner and to a normal extent, and that the places of all the union men who had left the plaintiff's employ had since December, 1920, plainly shows that the strike been filled, and that strike benefits had not been paid was over at that time."

Moreover, a strike does not justify interference with contract rights, or even the right to make contracts. The Court said:

"But if the strike was still pending, the members of the Central Labor Union had no right to interfere with the plaintiff's business for the illegal purpose of forcing it to abandon the making of individual contracts with its employes.

"The findings of the master were that the individual contract committee by its acts intentionally attempted to interfere with the plaintiff in its business, that such acts were calculated to injure the plaintiff in the sale of its products, and were without lawful justification; the acts above recited were in substance a boycott and illegal."

Concerning the defendant's contention that the plaintiff had been guilty of fraud in failing to confer as to methods to avoid waste when a conference on the subject had been broached and agreed to, the Court said:

"The defendants contend that the plaintiff is not entitled to relief in equity, for the reason that it fraudulently failed to carry out the agreements made by it with the defendants respecting notice, before the working agreements could be terminated; and because Fuller, the plaintiff's manager, failed to meet the committee as agreed on Oct. 27, 1920, for the purpose of considering the question whether the cost of production could be reduced. As to the first of the contentions, the master expressly found that the plaintiff's manager (who gave notice to the committee on October 11 that all agreements would be terminated in thirty days from date) did not at any time state to any person that the notice in question was withdrawn or revoked; but that the committee was led to believe by Mr. Fuller and did believe that the matter of wages, which was the only subject then under discussion, could be disposed of and the plaintiff's employes would be allowed to continue their employment under the terms and conditions then in effect. This finding makes it plain that the notice originally given was not

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at any time withdrawn or revoked, nor were the defendants justified in believing that it would be revoked or withdrawn unless an amicable settlement of the disputed question of wages was reached. Accordingly when the period of the notice expired on November II the agreement ceased to exist, although the employes continued to work for nearly a month thereafter at the same wages they had previously received. The circumstance that the plaintiff's manager failed to meet the committee as agreed on Oct. 27 falls far short of showing that his absence was intentional, and that he did not propose to keep the appointment in good faith. The committee were notified that he was in Detroit on that day and would not be able to meet the committee until a later date; he returned about Nov. 1, thereafter but did not make any attempt to meet the committee, nor does it appear that the latter ever made any effort to confer with him. ***

"The acts complained of committed by the Central Labor Union were entirely apart and distinct from the controversy which in Dec., 1920, had arisen between the plaintiff and its employes; that controversy related to wages and resulted in a strike which on the findings of the master ended in Aug., 1921. The present suit is brought to prevent unjustifiable interference with the plaintiff's employes and with its business. In these circumstances, even if the plaintiff had failed to give due notice before terminating the working agreements, or had intentionally refused to meet the committee as its general manager had agreed, the rule that a plaintiff must come into court with clean hands to be entitled to relief in equity is not applicable to the facts in the present case. The acts now complained of have no direct relation to the original controversy. The plaintiff does not ask for relief arising from any contract or transaction tainted with fraud or bad faith." The decree was affirmed.

Refusal of Material Dealers to Sell to Contractors Employing Union Carpenters During a Strike of Union Carpenters Held Unlawful

John Carlson v. Carpenter Contractors Association, Oscar Carlson v. Edward Hines Lumber Co. (Supreme Court, Illinois, 137 N.E. 222, 1922).

The opinion in this case of the Trial Court was reported at 2 Law and Labor 96 and of the Appellate Court for the First District of Illinois at 4 Lam and Labor 124. The statement of the facts in the opinion of the Supreme Court of Illinois written by Chief Justice Thompson is unusually concise, and is here given in full, as follows:

"John Carlson, plaintiff in No. 14776, is a journeyman carpenter and a member of the Carpenters' Union. July 18, 1919, and for a long time prior thereto, he was in the employ of Simon Hill, a contractor who did not belong to a contractors' organization. Hill had work to be done, and desired to retain Carlson in his employ, and Carlson was able and willing to work, and desired to continue his employment. Representatives of the union of which Carlson was a member had signed a working agreement

with the Carpenter Contractors' Association, one of the defendants, which did not expire until 1921. This agreement provided, among other things, that there should be no strikes or lockouts without the sanction of a joint conference board composed of members of the contracting parties, and that the minimum rate of wages until May 31, 1921, should be 80 cents an hour. Notwithstanding this agreement, the representatives of the carpenters, in June, 1919, presented to representatives of the contractors a demand that the minimum rate of wages be increased to $1 an hour, giving as their reason the increased cost of living. Following this demand the contractors agreed to increase the wages 121⁄2 cents an hour, but refused to grant the rate demanded. Thereupon July 9, 1919, a general strike was called, in violation. of the working agreement. Those contractors or mem

bers of the public who were willing to pay $1 an hour to carpenters were allowed by the carpenters' union to proceed with their work without molestation. Hill agreed to pay Carlson $1 an hour, and Carlson continued in his employ.

"Oscar Carlson, plaintiff in No. 14777, was, in July, 1919, engaged in erecting a building for himself. He is not a carpenter nor a carpenter contractor. After the strike was called he continued to employ union carpenters, and paid them the wages demanded.

"A week after the strike was called the Carpenter Contractors' Association and the Building Construction Employers' Association declared a lockout of all union workmen in the building trades throughout Lake and Cook counties, and the members of such contracting associations ceased operations. This lockout had little, if any, effect on the situation, because all the union workmen had left the employ of the associated contractors before the lockout was declared. After the associated contractors left the field, independent contractors who had been operating in Cook and Lake counties continued to employ union carpenters, and new contractors entered the field and employed the striking carpenters at the wage demanded. In order to make the lockout effective the associated contractors sought and secured the aid of the dealers in building material. After several conferences the material dealers agreed, at the request of these contractors, who had theretofore been their best and largest customers, representing about 80 per cent. of their business, to cease selling and delivering materials to any person employing or about to employ union carpenters or other union labor in the building trades. Thereafter independent contractors, private builders and members of the general public were refused material for the purpose of erecting or repairing buildings, and as a result of their inability. to obtain building materials they were compelled to discharge workmen, although willing to pay the wages demanded and to comply with all other requirements of the unions. As a result of the refusal of the material dealers to sell and deliver material Simon Hill was forced to discharge John Carlson, and Oscar Carlson was not able to complete his building."

The Court's statement of the issue is as follows:

"These are simple actions ex delicto. We are called upon to decide whether (1) a legal right of plaintiffs (2) has been invaded (3) by defendants (4) to the injury of plaintiffs."

Thrusting aside the unrelated issues raised by counsel, the Court said:

“The right of employes to organize and to quit their employment singly or as a group; the right of employers to organize and to discharge their employes singly or to lock them out as a body; the right of dealers to organize and to refuse to sell merchandise to a particu

lar individual, to a group of individuals or to the public at large; the presence of a few crooked business agents in the ranks of labor and of a few criminal profiteers in the ranks of employers and dealers; and the obligation of employers and employes to respect their working agreements-are all subjects full of interest, but which have no bearing whatever on the issues involved in these cases, and a discussion of any of the subjects would be entirely out of place."

plaintiff in a tort action of this sort should be tested, the Considering the principle by which the right of the

Court said:

"Whenever a court permits itself to be led afield into a discussion of the rights of the defendant in tort actions and to become entangled in the subtleties connected with the phrases 'primary purpose' and 'legal justification,' it is apt to have its attention diverted from a consideration of the question whether plaintiff's rights have been invaded by the doing of the act charged. To discuss the rights of the defendant is to confuse rather than clarify the issue. To argue that defendant had a legal right to do what he did, and that plaintiff cannot complain of the damage incidentally following the exercise of defendant's rights, is to approach th question from the rear. Where A. by close attention to business, by aggressive business methods, and by offering better values takes customers from B., and thereby damages B.'s business, B. is not entitled to recover from A. for the reason that he had no legal right to have a monoply on the business in the territory, and not for the reason that A. had a right to enter the field. If A. digs a well on his farm and thereby destroys a well on B.'s farm by intercepting the source of water, B. cannot recover from A. because he had no legal right to a continuance of the exclusive use of the source of water, and not because A. had the

right to dig his well. The court should first determine whether plaintiff has a legal right which it is the duty of defendant to respect, and then proceed from that point to determine the controversy. We shall therefore approach the consideration of this case from the standpoint of the plaintiffs."

Turning then to the right of John Carlson to work, and the right of Oscar Carlson to build his house, unmolested by a combination of dealers, regardless of their purpose, the Court said:

"John Carlson has a right, under the law, as between himself and others, to full freedom in disposing of his own labor according to his own will. He had the right to contract with Simon Hill to work for an agreed wage and under agreed conditions. He was under no contractual relations with any of the defendants which limited this right. He had a right to receive for his services $1 an hour or any other amount to which he and his employer could agree. Oscar Carlson had the right, under the law, to full freedom in investing his capital in the building which he was erecting and in employing any person free to accept employment from him, at a wage and under conditions agreeable to him. He had the right to a free and open market in which to purchase materials with which to

complete his building. These rights being clear, any one who invades them without lawful cause or justification commits a legal wrong, and, the wrong being followed by an injury in consequence thereof, plaintiffs have a right of action for such wrong. Damage inflicted by the use of intimidation, obstruction, or molestation with malice is without excuse. The law seeks to protect every person against the wrongful acts of others, whether committed alone or by combination, and an action may be had for injuries done which cause another loss in the enjoyment of any right of privilege or property. No persons, individually or by combination, have the right to directly or indirectly

interfere with or disturb another in his lawful business or occupation or for the sake of compelling him to do some act which in his own judgment his own interest does not require. Losses willfully caused by another from motives of malice to one who seeks to exercise and enjoy the fruits and advantages of his own enterprise, industry, skill, or credit, will sustain an action." Judgments for the plaintiffs were affirmed.

This case is an authoritative answer to the oft repeated question whether material dealers, operating open or non-union shops, may combine to refuse to sell to contractors employing union workers.

Lawful Activities of Trade Associations
District Court

Defined by the Federal

United States v. Gypsum Industries Association (U.S. D.C. Southern District, New York, January 3, 1923).

The United States brought action against the Gypsum Industries Association and its members, charging a conspiracy under the Sherman Act to fix prices and restrain. trade. With the consent of the parties, the District Court on January 3, 1923, entered a decree. This decree is of unusual interest because, after setting forth the acts in restraint of trade which are prohibited, the decree enumerates certain acts which are declared to be lawful and from which the defendants are not restrained. Thus the law for the first time attempts to define the proper functions of a trade association. Being a consent decree, it is not appealable, so final determination by the highest court of the legality of the practices herein declared lawful must await review in a subsequent case involving such practices. The decree, in full, is as follows:

"This cause came on to be heard at this term, and upon consideration thereof, and upon motion of the petitioner by William Hayward, United States Attorney for the Southern District of New York, for relief in accordance with the prayer of the petition, and no testimony or evidence having been taken and all the defendants therein having appeared by their attorneys, Scott, Bancroft, Martin & MacLeish, Lyman M. Bass, Montague Lessler, George A. True, Roger I. Wykes, and Frederick J. Powell, and having consented thereto in open court; and upon the reading and filing of the petition herein, and upon the consent of the several defendants, and upon motion of the petitioner for relief in accordance with the prayer of the petition;

"Now, therefore, it is ordered, adjudged, and decreed as follows, viz.:

"(1) That the combination and conspiracy in restraint of trade and commerce, the acts, regulations, rules, resolutions, agreements, contracts, and understandings in restraint of trade and commerce and the restraint of such trade and commerce obtained thereby as complained of in this petition be declared illegal and in violation of the Act of Congress approved July 2, 1890, entitled 'An Act to Protect Trade and Commerce Against Unlawful Restraints and Monopolies' and the acts amendatory thereof and supplemental or additional thereto;

"(2) That the said defendants and their officers, agents, servants, and employes, and all persons acting under, through, by or in behalf of them or any of them, or claiming so to act, be and hereby are ordered and directed to dissolve and forever discontinue said Gypsum Industries Association and be and hereby are perpetually enjoined, restrained, and prohibited directly or indirectly from engaging in or forming any like association or from making any express or implied agreement of association or arrangement similar to or like said agreement or arrangement the effect of which would be to restrain or monopolize said trade and commerce in Gypsum products among the several States of the United States or in the District of Columbia, and from carrying out or continuing in effect the agreements described herein or making any express or implied agreements or arrangements together or with one another like those hereby alleged to be illegal, or using any other means or methods the effect of which would be to prevent the free and unrestrained flow of such interstate trade and commerce in said Gypsum products or to monopolize the same. Provided, however, that the said defendants are not restrained or enjoined from jointly organizing and incorporation of which shall be expressly limited to maintaining a corporation, the charter or articles of the following defined objects and purposes or any of them;

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(a) To advance or promote the use of Gypsum products by publicity, advertisement, and any other activities of like character.

"(b) To deal with engineering and trade problems pertinent to the industry for the purpose of advancing the use of Gypsum products.

"(c) To carry on educational work pertinent to the industry by fellowships in various schools and colleges for research; experimental and research work in and through institutions of learning, scientific bureaus, and societies; and to provide for lectures and the writing and reading of papers upon subjects pertaining to the industry.

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'(d) To maintain a traffic bureau to furnish traffic information upon specific requests from published freight tariffs lawfully issued by the carriers and to assist the industry in transportation questions before Federal and State Commissions and other bodies deal

ing with questions of transportation and with common carriers.

"(e) To deal with improved methods of plant and mine operation, including sanitation, safety appliances, accident prevention, labor, plant and mine development, housing conditions, insurance, and methods of accounting.

“(f) To maintain a credit bureau for the sole purpose of furnishing credit information.

"(3) That the said defendants, their officers, agents, servants, and employes and all persons acting under, through, by, or in behalf of them or any of them, or claiming so to act, be perpetually enjoined, restrained, and prohibited directly or indirectly from

"(a) Agreeing to fix or establish by agreement among themselves the prices to be charged for said Gypsum products.

(b) Agreeing among themselves in any manner whatsoever to charge purchasers of said Gypsum products uniform prices or doing by agreement any act or acts which will result in maintaining uniform prices. "(c) Agreeing among themselves in any manner whatsoever to advance or decrease prices for their products to purchasers thereof.

"(d) Agreeing among themselves in any manner whatsoever to advise or communicate with one another as to proposed advances or decreases in prices for their products to purchasers thereof or agreeing among themselves in any manner whatsoever to circulate among themselves in any way information concerning or relating to such proposed advances or decreases, or to the prices charged or to be charged.

"(e) Doing any act or acts by agreement among themselves which will result in advising or communicating with one another as to proposed advances or decreases in prices for their products to purchasers thereof or in circulating by agreement among themselves information concerning or relating to such proposed advances or decreases.

“(f) Agreeing among themselves in any manner whatsoever to limit, curtail, restrict, or otherwise control the amount of said product to be produced for manufacture at any time by any or all of the defendants, or by doing by agreement among themselves any act or acts which will limit, curtail, restrict, or otherwise control the production or manufacture of said products by any or all of the said defendants, such as the withdrawal of salesmen from a certain territory over stipulated periods.

(g) Agreeing among themselves in any manner whatsoever as to the territory in which any or all of the defendants may sell or otherwise dispose of their products.

“(h) Agreeing among themselves in any manner whatsoever to effect any discrimination of any character, whether in prices charged or otherwise, in favor of or against any purchaser of their products by reason of the fact that such purchaser is a mail order house, purchasing agency, coöperative buying association, or so-called dealer,' or for any other reason, or doing any act by agreement among themselves to effectuate any such discrimination in favor of or against any purchaser for any reason, except, of course, that each defendant may independently of the other defendants select his or its own trade and dispose of his or its

products to such persons and on such terms as he or it may choose.

"(i) Agreeing among themselves to use a published credit list and credit information for the purpose of blacklisting an undesirable purchaser or for the purpose of putting the name of the purchaser on such list with the intent of the manufacturer who submits the name reserving the purchaser's business for himself.

"(j) Agreeing to fix, establish, or maintain by agreement among themselves the terms, differentials, discounts, or prices which should be followed by a dealer, jobber, or other middleman upon his resale to a consumer or by any such agreement the uniform discounts which should be subtracted by each manufacturer, as an inducement for cash payment.

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"(k) Agreeing among themselves to adopt or follow any price list, published or compiled, or caused to be published or compiled by themselves or by any newspaper, trades paper, or periodical as a fixed price. (1) Agreeing among themselves to enforce any arbitrary freight rates in excess of those lawfully made. (m) Agreeing among themselves that certain individual manufacturers engage in the manufacture of a certain gypsum product of a certain definite composition, and that all other manufacturers desist from manufacturing a product of such composition.

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(n) Aiding or abetting or assisting individually or collectively others to do all or any of the matters herein set forth and enjoined and restrained herein.

"(4) That nothing herein contained shall be construed to restrain or interfere with the action of any of the said defendants acting with respect to his or its own corporate or individual business property or affairs, or furnishing necessary information to their own customers in connection with bona fide sales of such products; or individually doing any of said act or acts done in good faith to meet competition when such action or the furnishing of such information is not made or done in concert or as the result of any agreement among themselves; or to save any patent rights of any of said defendants; and that this decree and any of its provisions or the entry thereof shall be without prejudice to the rights or interests of any of the said defendants in any proceedings which may be brought by or against them or any of them, except only any proceedings in this cause to enforce the terms of this decree.

"(5) That jurisdiction of this cause be and hereby is retained for the purpose of enforcing this decree, and for the purpose of enabling any of the parties to apply to the court for modification hereof if it be shown to the satisfaction of the court, that by reason of changed conditions or changes in the statute law of the United States or in the interpretation of said law by the courts, or by reason of any new or different activities other than those hereby specifically authorized to be maintained and deemed necessary or desirable by the said defendants for the welfare of the gypsum industry or for any other reason, the provisions hereby have become inappropriate or unnecessary to maintain competitive conditions in interstate trade or commerce in Gypsum products, or have become unduly oppressive to the defendants and no longer necessary to secure or maintain competitive conditions in such interstate trade."

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