The New York herald., 1922-08-19
Criminal Suits Are to Be In
stituted Wherever Evidence
Warrants.
SHERMAN ACT is AMPLE
Daugherty to Start Inquiry in
West, Where Trains Were
Tied Up.
Special Dispatch 10 THE NEW YORK HEEaLp.
New York Herald Burean.
Washington. ID. c.. Aug. Is.

dent Harding to-day that ne was pre-
pared to go the limit to enforce the
statutes for the prevention OF inter-
ference with interstate commerce
whether by individuals or organiza-
items, it became known that the De-
partment OF Justice already has set It's
machinery in motion with view TO
nstitutng criminal and civil suits wher-
ever the evidence should be deemed
sufficient to warrant immediate action.
On his return from the Capitol Il
was stated on behalf Of the President
that ne was convinced the powers
OF the Government under the Sherman
antitrust act are sufficient to cope with
any conspiracy or boycott that results
in interference with transportation.
There was every indication that from
now on ''the gloves are OFF, and there
will be no hesitation in starting pro-
ceedings. -
The Department OF Justice feels that
the clauses of the Sherman act for
bidding interference with the trans
portation already have been sustained
by the Supreme Court of the United
States to such an extent that prece-
dents are well established.
Two Cases Are Cited.
Two cases were cited which virtually
ment to bring criminal and civil action
against labor unions as well as against
individual members of a union who are
guilty of attempts to disrupt interstate
commerce. The Coronado Coal Com
pany case, it was pointed out, clearly
has proved the fact that a suit Tor
damages lies against a iabor union as
an entity, and the Danbury matters
case decided several years ago, has
established the precedent of personal
iiaDiity Tor damages through SYM
Pathetic strike or secondary boycott.
Officials believe that the suit for dam
ages caused by members OF a railroad
brotherhood proved guilty of sympathe-
tic action would lie against the entire
property of the organization This was
the outstanding effect of the Corona dc
case which was branded an Outrage
by organized labor
Labor unions with large effects in
property and capital realized that the
liability for damages had been extenda I'd
and opened the way for action against
an entire union. Officials of the Gov
ernment strongly feel that the principe
established by the Supreme Court viii
compel responsible labor leaders to keep
stricter hand on the men.
Government proceedings may be in
tion at the instance of the Departmer,
OF Justice or by injunction proceedings
at the instance of the Federal Judges
The Department cf Justice it was indi-
Gated, is not yet ready TO spring action
but evidence Is being accumulated Il
several points where the interference
and results of the conspiracy were most
acute. Because rf the danger that ne
essary witnesses may get out OF the me-
being spread by the Government IT,
proceedings require to be conducted II
the utmost secrecy.
Daugherty to Act Soon.
Attorney-General Daugherty intends
to appoint Special Assistant Attorne
General who will proceed to the Westers
sections. where the greatest amount q
trouble was encountered. The distric
to which particular attention will b.
given comprises Northern and Southef =
California, New Mexico and Arizona
re test case for conspiracy under th'
Sherman act is forthcoming il Is likely
TO originate in one of three incident:
which in the opinion of the Department
of Justice ccme without question within
the category OF conspiracy against in
terstate commerce or secondary boycott
These three incidents we're: The aban
donment-o passenger trains at Needles
Ariz., on the Santa F'e Railroad the
uncoupling Of fifty coal cars at Cypress
ILL.,. and the incident at Corbin. Ky.
where railroad workers struck out Of
sympathy with miners who were avers'
to the movement OF non-union coal
There were in all these incidents, Gov
ernment ois cials believe, elements o.
conspiracy to interfere with the move
ment of commerce in interstate trans
portation.
Mr.. Daugherty conferred with thu
President for long time after the Cabi
net meeting. 1t is understood that h
told the President what the Department
of Justice was doing by way OF procur
ing evidence and what indictments oi
prosecutions were in prospect
1t was predicted that organized laboi
would, within the next twenty-foul
hours make gesture by way OF denun
ment to proceed with prosecution
against labor under the Sherman act
Samuel Gompers. president OF the Amer
something to say In answer to the Presi
dent some time Tomorrow
II was limited that Mr.. Gompers will
take strong issue With the suggestion
made by the President for the strength
enng OF the railroad labor board. mas
much as organized labor always ha
bitterly opposed granting to the boar,
powers to vote the right to strike. Mr.
Gompers also is expected TO take issu
with the determination OF the Govern
ment TO use the Sherman act as
leverage against labor.