Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-02-04
BOYCOTT DECLARED ILLEGAL
United States Supreme Court Holds 1t
Restraint Of Trade.
UNANIMOUS FINDING OF JUDGES
where It Covers Several states Iu-
terstRte Commerce Commission
Penalty May he In
vOked.

WASHINGTON, Feb. 3.-That section
seven Of the antitrust act awarding to the
complainant three times the amount of
damage sustained by commission OF an
act in restraint of Interstate trade can be
invoked to prevent boycott by organized
labor was held today in a decision by tho
supreme court of the United States in the
case OF Ioewe & Co. hat manu-
facturers OF Danbury. Mass. versus Martin
Lawlor and 800 other members Of the
United Hatters union of that city The
decision Of the court was announced by
Chief Justice Fuller and reversed the hold
ing OF the United States circuit court OF
appeals for the second circuit.
Boycott I'm Restraint of Trade.
The opinion Of the court was unanimous
Chief Justice Fuller sadi;
In our opinion the combination described
I'm the declaration Is a combination in re
straint Of trade or commerce among the
several states In the sense In which those
words used in the act and the action
can be maintained accordingly. and that
conclusion rests on many judgments OF
this court to the effect that the act pro
hibits any combination whatever to Sc
cure action which essentially obstructs the
free flow OF commerce between the states,
or restricts. in that regard, the liberty of
trade to engage In business.
The combination charged falls within
the class of restraints OF trade aimed at
compelling third parties and strangers in
voluntarily not to engage in the course OF
trade except on conditions that the COM
bination imposes, and there Is no doubt
that, to quote from the well known work
of Chief Justice Erie on trade unions In
common law every person has individually,
and the public has also collectively, a right
to require that the course of trade should
be kept free from unreasonable obstruc-
tion. But the objection here rs to the
Jurisdiction. because. even conceding that
the declaration states the case good at
law II fa commended that Il dOpc
not state one within the statute. Thus 1t
is said that the restraint alleged would
operate to entirely destroy the defendants
business and thereby include intrastate
trade as we'll; that physical obstruction is
not alleged or contemplated; and the de-
PENDANTS are not themselves engaged in
intrastate trade.
we find none of the objections are ten
able, and that they are disposed of by
previous decisions Of this court.
History of the Case.
The suit was Instituted by Loewe & Co.
in the United States circuit court in Con-
necticut. The company. alleging damages
by a boycott against their factory to the
extent OF $4,000. asked for judgment for
$4,000 in accordance with the terms of
the Sherman act. Not only the members of
the Hatters' union, but the American Fed
Grafton of Labor, of which the union is
subordinate union. are included in the bill.
In the complaint II was alleged that the
labor Organization has undertaken to COM
pei the manufacturers to unionize their
factory, a large majority OF other hat
factories IN the United States had been
forced TO do, and twas asserted that when
| they failed in this effect the union hstters
within the factory. declared a boycott. This
act was followed by the declaration of a
boycott against Loewe's hats wherever
they were found. and as the firm controlled
an extensive trade throughout the country
the boycott extended to many states, which,
in the language of the bill, constituted a
combination to limit and restrain inter-
/ state commerce. The circuit court expert
! enced considerable difficulty In dealing with
this point
Lower Court Reversed.
Declaring that neither the manufacture
nor distribution of hats is interstate in
character, the judge presiding in that
court found it Necessary to decide whether
a combination which seeks to interfere
with both the manufacturer and distributor
at the same time is one which interferes
with business. Accordingly the complaint
was dismissed ON a demurrer and the dis
missal was affirmed by the court of ap-
peals The decision of the appellate court
was today in turn overruled by the supreme
court.
! The portion of the complaint dealing with
the Federation of Labor alleged that the
organization employs 1,COO persons to carry
| into effect its boycotts. 1t says that they
act under the immediate supervision and
personal direction of one Samuel Gompers,
who is chief agent of the combination.
NEppAcHh IhMn NAcE ENnEn