Evening star., 1934-09-15
Johnson Wires Boards AC-
ton After Firm Fails
to Comply.
LABOR UNIT CHAIRMAN
EXPECTS PROSECUTION
Garrison Says Case Has Been
Turned Over to Justice
Department.
Nv the Associated Press.

BY the Associated F1eSS.
N. R. A. today removed the Blue
Eagle from the Houde Engineering Co.
Of Buffalo. N. Y, on findings OF the
National Labor Relations Board that
labor's collective bargaining rights had
been impaired by the company's re-
fusal to recognize United Automobile
Workers Federal Union, No. 1889.
N. r. AS decision was communi-
Gated to the company in telegram
from Hugh S. Johnson. The case in
wolves the important question OF
whether majority representation shall
prevail in bargaining between employ
ers and employees. The Labor Board
ruled the automobile union should be
the exclusive agency of the workers in
bargaining with the Houde company
The National Manufacturers Asso-
citation has advised its members to
await court ruling on the majority
representation principle. '
Text of Telegram.
Johnson's telegram to the company
said
THE National Labor Relations
Board has found that you have violat-
ed section IA of the national indus
trial recovery act by interfering with
the self organization of your employees
impairing their right of collective
bargaining and refusing to bargain
collectively within the meaning OF
that section.
"You have failed to notify the board
In writing that by September 10. as
required by the board, that you
recognized the United Automobile
Workers Federal Union, No. 1889. as
your employees exclusive agency for
collective bargaining.
"The board has referred the case
to the compliance division for removal
of your Blue Eagle. Therefore you
are hereby deprived OF your right to
display any N. r. A. insignia in any
manner and you are hereby directed
to surrender all N. r. A. insignia In
your possession to the postmaster in
Buffalo and to refrain thereafter from
using any N. r. A. insignia in your
plant or in advertising, or in any
manner whatsoever.
Prosecution Seen.
Lloyd Garrison, chairman OF the
Labor Relations Board, told reporters
Yesterday he expected the Justice De-
partment to hale the Houde Co. into
court promptly for refusing to recog-
nize the American Federation OF La
Dor unit as representing all of its en-
ployes, although a minority OF them
favored another union.
Justice Department officials were
studying the files in the case even as
Garrison spoke. No immediate COM
ment was forthcoming, however.
Welcome Court Test.
Both the board and A. F. Of L. lead
ers have indicated they would welcome
such a court test of the decision whict
labor chiefs regard as one OF thell
greatest victories during the present
administration.
Garrison said. however, that the
Justice Department had authority Il
refuse to prosecute the Houde Co.
IT have no reason to believe that il
will" he added.
When company refuses to comply
with a Labor Board decision, the board
may cite the company to the N. r. A
compliance division for Blue Eagle
removal and to the Justice Depart
ment for criminal prosecution on the
basis of violating the recovery act.
The board has done both in the
Houde case.
Access to HOude Files.
The Justice Department has hac
access to the Houde files for Severa
days. Garrison expects to confer with
Justice officials the first of next week
The board chairman admits he dis.
agrees with Gen johnson and Donalc
Richberg, former N. r. A. genera
counsel, on majority rule" Botl
johnson and Richberg time and agair
have expressed the opinion that th'
recovery act guaranteed each anc
every employe a right to voice il
drawing working agreement which
would affect him.