The sun., 1908-02-19
COURT UPHOLDS A LOCKOUT
AGREEMENT OF EMPLOYERS
AGAINST UNIONS VALID.
Building Trades Association wins Against
ThOmDSOn-Starrett COmDany-LAttcr
Hired Carpenters Belonging TO . Union
which Had Broken the Agreement.

Hired Carpenters Belonging 20 Union
which Had Broken the Agreement.
Justice Greenbaum in the Supreme Court
handed down a decision yesterday uphold
ing the plan Of campaign waged since 1900
by the Building Trades Employers Asso-
citation against the labor unions that had
gone on strike. The decision is against
the Thompson n-Starrett Company and the
Fidelity and Deposit Company OF Maryland
on four bonds guaranteeing the faithful
adherence Of the Thompson-starrett Com
pany to the rules Of the Employers Asso-
citation. The ThompsOn-Starrett Company
broke away in 1905 from the association
and recognized and employed the mem
bers Of the Brotherhood OF Carpenters.
which union had failed to agree TO the terms
laid down by the employers association.
The employers association was organ
lied in 1900 because Of the labor conditions
Affecting the building industry in New York
at that time. A constitution was adopted
by which authority was vested in board of
governors TO decide disputes and regulate
the conduct Of the members in all matters
pertaining TO their common interests. Work
was suspended at the time because of
strikes. and the formation Of the associa-
ton resulted practically in a general lock-
out. Agreements were then made with
some labor unions providing that all con-
troversies between members Of the employ
ers' association and these unions should be
settled by arbitration and that no lockout
L. a a Al.
arbitration had failed.
In August, 1904, the Brotherhood Of
Carpenters, among other unions, repudi-
ated the agreements made with the en-
ployers' association and went on strike.
The board Of governors then passed reso-
lutiOns declaring a general lockout against
the offending unions within a radius of
twenty-five miles from City Hall unless
by August the strikers returned TO work
under the old conditions. The time was
afterward extended TO August n. and on
September IA the board OF governors passed
another resolution declaring that as the
Brotherhood OF Carpenters had refused
to return 70 work it was the sense Of the
board that they be no longer recognized
by the employers association.
Following this the Thompson-Starrett
hood Of Carpenters in it's employ and pro-
ceeded to engage other men not members
Of the union. But on January Is, 1906,
it notified the board Of governors that it
had decided to reemploy members Of the
brotherhood, notwithstanding the resO-
lutiOns passed by the board, and proceeded
TO do 90. After hearing the board de-
cided that the company had violated its
agreement and incurred the forfeiture
Of its bonds given when it joined the as
sociatiOn. Thereafter suit was begun TO
recover the value Of the bonds.
The defence OF the Thompson-Starrett
Company was tourfold: that the action
OF the board OF governors was not in con-
fomity with the constitution Of the asSo-
citation: that the effect Of the regulations
passed by the board was TO restrict com
petition as between members and non
members Of the association. since the latter
could get carpenters while the former
could not: that it was beyond the company's
corporate powers 20 join the association, and
that the whole plan Of the association was
against public policy and therefore void.
Justice Greenbaum says that the history
/ OF the labor troubles preceding the for
nation Of the employers association
shows conclusively that one Of the under
\ lying purposes Of the formation Of the
association was to meet by the very
methods subsequently, employed snch a
contingency a. led to the passing of the
resolutions for q general lookout Of un-
friendly unions. Hence the action Of the
board Of governors was thoroughly In
sympathy with the constitution Of the assO-
citation.
As to the charge that the result was the
restriction Of competition and interference
| with business. Justice Greenbaum points
out that an employment bureau was organ
lied by the board Of governors and enough
carpenters. capable men. procured to meet
all the demands by members Of the asso-
citation. But the Thompson-Starrett Com
pany refused to avail itself Of this bureau.
though II It had IT could have obtained all
the men 1t needed. says Justice Greenbaum.
He adds:
1T therefore follows that the effect Of the
regulations was not to restrict competition.
as the defendant argues. The delay in
prosecuting It's works was a necessary Incl
dent to the agreement into which the
defendant had entered voluntarily with
the plaintiff association. and IL may be said
that Il was q condition that well might be
expected TO arise In order to prevent the
same disastrous delays that might be pro-
duced by labor organizations In the absence
Of such an agreement
The agreerns t. Justice Greenbaum
says further on. was designed to facilitate
the defendant compAny's business opera
tions and TO prevent the nlinous and
hazardous situations with which Il had been
confronted just prior to tho tims whsn Il
became member Of the association. The
act Of becoming q member being In itseh
lawful one and directly related 20 its oor-
porats powers, Il seems clear that lt did
not transcend its powars when it subscribed
to the constitution Of the assoclation.'
The plea that the resolutions passed by
the board OF governors were against public
policy and therefore void uStice Green
baum disniSsss with the remark that con-
trolling decisions have held that such reso-
lutions are not necessarily against public
policy and that bonds given under them
I L.. IL