The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-13

Wall Street Journal.
The open and admitted breach of contract
by the Amalgamated Association of Iron
Workers in the case Of certain mills is con-
doned by President Shaffer on the ground
that the mems first duty is to the Amalga-
mated Association, and that If the Amalga-
mated Associations interests require "A
strike, the men must break their contracts
with the mill-owners. Mr.. Skaters real
meaning undoubtedly is that the Amalga-
mated Association Is not bound TO respect
any contract made with employers when il
is To the interest of the association 10
break il.
He claims, therefore. for his association
rights that are enjoyed by no other indi-
vidual or corporation under the law. Every
individual or corporation that has a legal
existence may be sued for breach OF con-
tract. If the A~malgamated Association OF
iron Workers Is a corporation or a legal
entity in any form ii may be sued for
breach OF contract. If it is not a corpora
ton or legal entity contracts and agree
ments made with it are not worth the pa
per they are written on.
An important decision has recently been
rendered by the House of Lords on this
point in England. The employers. a rail-
way company, sued the Railway Servants
Union in its registered name. The Court OF
Appeals decided that this could not be done,
but the House of Lords reversed the deci-
sion. The lord chancellor, In giving judg-
ment, said:
IF the legislature has created a thing
which can own property, which can employ
servants, which can infict injury, II must
be taken to have implicitly given the pow
er 10 make Ii suable in a court of law for in
juries purposely done by its authority and
procurement"
II entirely repudiate the notion that the
effect Of the trades union act Of 1871 is to
legalize trade unions and confer on them
rights to acquire and hold property, and
at the same time 10 protect the union from
legal proceedings If their manager or
agents, acting for the whole body, violate
the property or a trade union. For such
violation the property OF a trade union
can in my opinion be reached by legal pro-
ceedings properly framed"
Lord Macnaghten, another of the judges,
gave IL as his opinion that these bodies.
whether registered or unregistered, can be
sued I'm 4 Representative action The
rule in equity permitting representative ac-
lions was long ago adopted by the courts
avowedly TO prevent failure Of justice.
The principle on which il is based. as Lord
Lindley said. forbids its restriction 10 cases
for which an exact precedent can be found.
1t is applicable to new cases as TO old ones
and should be applied as occasion requires.
The executive committee and trustees could
be sued on behalf of themselves and other
members of the union, an injunction and
damages could he obtained and the funds
of the union made liable for damages and
costs.
According 10 the London Times this de-
c;sion entirely alters the privileged posi-
ton which some trade unions in England
believed themselves 70 enjoy and deprives
1 lICIH OF an immunity Viii la Ittn ire
quently abused.
Ii is difficult TO see why "A decision in
England, which is based on an admitted
principle in equity, should not be good law
here. II * very clear, however. that II
there Is any doubt on the point. trades
unions should be compelled 10 incorporate
or in some way become a legal entity. TO
the end that there may be responsibility
where there are rights and where there
il power. The law does not contemplate
power and rights without corresponding
responsibility; unQuestlOnabiy IL does con-
template enforcement OF responsibility
where power and rights are exercised ON
this rests the principle OF Representative
actions"
Unless a union can be made and is able
TO reinforce its agreements with "A money
guarantee OF a bond OF some kind. or un-
less IL can be sued through its officers
FOR breach OF contract, no binding agree
ment can Be- reached betWeen mauufac-
turers and employees. The Amalganated
Association should be suahle for breach Of
agreement in the present case. Perhaps Ii
can be successfully sued therefor.