Evening star., 1908-02-03


tice Fuller and reversed the holding of
the United States circuit court OF appeals
for the second circuit.
The Court Unanimous
The opinion Of the court was unanimous
and no dissenting view was presented
we think" said Chief Justice Fuller
in conclusion. that a case within tn
statute was set up and that the de-
murrer should have been overruled. fh.
! decision therefore reversed the ruling uf
/ the lower court and the case was rrmal !
| ed. with direction TO proceed accordingly.
/ Chief Justice Fuller said
In our opinion the combination de-
Scrlbed in the declaration is a combind-
I tion in restraint Of trade commerce
among the several states in the sense
i i'll which those words are used in the
act, and the action be maintained
accordingly. and that conclusion rests on
| many Judgments OF this court. 10 the
effect that the act prohibits any combna-
! ton whatever to secure action which es-
sentialy obstructs the free flow OF
| commerce between the states, or restricts,
| in that regard. the liberty of trader 10
| engage in business.
| The combination charged falls within
the class % restraints Of trade aimed at
compelling third parties and strangers
nvoluntarily not to engage in the course
OF trade except on conditions that the
\ combination imposes, and there is no
doubt that To quote from the well-known
wcrk of Chief Justice Erie on trade
/ unions. at common law every person has
| Individually, and the public has also col
lectively, Il right to require that the
II course of trade should be kept free from
unreasonable obstruction But the OBJ
lection here is to the jurisdiction. be-
cause. even concedinG that the declara-
ton states the case good at common law,
ii is contended that it does not state one
within the statute. Thus it is said that
! the restraint alleged would operate TO en-
tfrely destroy the defendants business
and thereby include intrastate trade as
we'll. that physical obstruction IS not
alleged as contemplated. and that de-
| PENDANTS are not themselves engaged IN
IintraState trade.
we think none of the objections are
tenable and that they disposed of by
/ previous decisions of this court
The Suit Described.
The suit was instituted by Loewe 4 Co.
in the United States circuit court for the
district Of Connecticut. The company, al
| iccinS damages by boycott against their
/ factory to the extent of $4,000, asked
! for a judgment for $4,000. III accord
ance with the terms of the Sherman act
/ Not only the memDerS OF the hatters
union. but the American Federation OF
Labor. of which the union is q subordinate
organization. was included in the bill.
/ In the complaint ii WAS alleged that
the labor organization had undertaken 10
| compel the manufacturers to unlonlze
| their factory, as a large majority oi othef
| hat factories in the United States had
been forced to do. and il was asserted that
when they failed in this effort the union
hatters Withdrew and induced other EN-,
ployeS to do This act was 1ohoWfo
| by the declaration Of boycott against
| Ioewe's hats wherever they were found.
| and as the firm controlled an extensive
trade throughout the country, the poScolt
! extended Ia MANY states. WHICH IN tne
, a, nj
nation TO limit and restrain interstate
| commerce.
Ruling of Circuit Court.
! The circuit court experienced consid-
cradle difficulty in dealing with this point.
Declaring that neither the manufacture
| nor distribution of hats is interstate in
/ character. tile judge presiding IN tnat
! court found it necessary TO decide
| whether a combination which seeks To
| interfere with both the manufacture and
; the distribution simultaneously is one
which directly affects transportation from
| one state to another. The erect OF that
| decision was favorable to the union, as IL
| held that the Supreme Court ndd not
! broadened the Sherman act SO as to make
| il tit such Il condition. Accordingly the
| complaint was dismissed on a demurrer,
and the dismissal was affirmed by the
| court of appeals. The decision of the ap-
| pellate court was today in turn over
| ruled by the Supreme Court
/ The portion Of the complaint dealing
| with the Federation of Labor alleged that
that organization employees 900 persons
to carry into effect its boycott. 1t says
| that they act under the immediate super
vision and personal direction Of one sam
! uel Gompers, who IS chlcf agent ot the
| combination. Reference is made 10 the
/ fact that an unfair list is published hy
/ the federation. and il is asserted that
that organization MAS formed for the
Purpose o. facilitating the declaration and
| successful maintenance OF horcottS. la
| compel the unonizinS Of shops. and there
! by control the employment Of labor and
| subject industries to the supervision o.
/ persons other than their owners.
Samuel w. Gompers. president or the
! American Federation of Labor this after
noon refused to comment upon the de-
/ Gig in II a