The labor standard., 1918-09-01
SMITH & WESSON
 WILL NOT OBEY
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 of the contracts of employment known to be in force there. unlawful and malicious methods and not to be justified as a fair exercise of the right to increase the mem- bcrship of the union.''
 In the matter of grievances it has dealt only with individuals and has not recognized shop committees. This method of doing busi- ness is its privilege and its right. recognized and accorded by the decisions of the supreme court of the United States having established such system the company is entitled, in the language of the supreme court, to be protected in the employment of the resulting status as in any other right
 Hitchman Coal Coke Co. V. 1 Mitchell, ct als., 245 U. S. 229 1 To induce violation by employees of their contractual obligations, as was admittedly done by labor union officials in this case, is equally wrong for the reason stated by the court in that case; the employer "is entitled to the good will of its employees precisely as a mer- chant is entitled to the good will of his GUS tomers''
 Hitchman case cited supra; see also Tracy V. Osborne. 226 Mass. | Also many other cases cited in counsel's written argument herewith enclosed and here inbefore referred to. The Smith & Wesson Company has at no l time conceded any authority on the part of the War Labor Board to compel the company to change it's usual and efficient method of conducting it's business, the exercises of which | has been held by the United States supreme court to be within it's legal and constitutional rights.
 In u4.451) one of the five contracts ,xl1J -1 g- cepted by the Smith & Wesson Company there is the following provision:-a
 Article 12. In the event that labor dis putes shall arise directly affecting the per- formance of this contract and causing or likely to cause delay in making the deliveries upon the date or dates specified, the contractor I shall address written statement thereof to the chief of ordnance for transmission to the | secretary of war with the request that such dispute be settled, providing such information and access to information within the control of the contractor as the secretary of war shall require, and it is stipulated and agreed that the secretary of war may thereupon settle or cause to be settled such dispute, and that the contractor shall accept and comply with all the terms of such settlement If the con- tractor is thereby required to pay labor costs higher than those prevailing in the performance
  fair addition to the basic purchase price of the articles shall be made therefor; but if such settlement reduces the labor costs of the contractor fair deduction shall be made from the basic purchase price, all as may be deter mined by the contracting officer. No claim for addition or deduction on account of such settlement shall be allowed unless the same has been ordered in writing and actually put into effect-''
 That contract is completed the | satisfaction of the war department In all other contracts accepted by the company there is a stipulation that the company in the execution of such contracts shall not be obliged to recognize any shop committee; and the company is now at work under the latter contracts containing such reservation, and in deed has manufactured and delivered part of the war material called for therein. The company has at all times kept well in advance of required deliveries.
 Rather than voluntarily to continue to con- duct. under the conditions laid down by the War Labor Board, business which 1t has built up to a point of highest efficiency, 1t prefers to see such business lawfully taken over and conducted by the government for the rest of the war. If such a course is adopted by the war department the individual members now comprising the management will be pleased to assist any government officer in charge. in every way to conduct the said business advantageously for the government as is possible with such system in force
 We take this position because the company is convinced that the adoption of any such scheme as that outlined by the War Labor Board would result in such demoralization of business morale. such dissatisfaction of g large number of loyal employees who have been in the service of the company for many years, such lack of respect for the rightful authority of the present managers upon the part of aggressive minority which has in comparatively recent period found employment with the company-in some in stances, the company is informed, for the express purpose of unionizing the plant-as to render the position of such managers in the company intolerable and that it would further result in such loss of efficiency in the pro- duction of material that the management cannot and will not assume responsibility therefor.
 (Signed) Smith & Wesson
 By Board of Trustees,
 George P. Chapin, Secretary. E