The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-02-27
GOVERNMENT Loses
IMPORTANT BATTLE
ON RECOVERY ACT
Decision Denies Plea for Iniunc.
ton Restraining Steel
Company's Union
PRESENT PLAN ADEQUATE
Weirton Firm Wins Case on
Contention Its Dealings Not
Interstate Commerce

Wilmington, DEL. Feb. 27.-ReThe
federal government lost q major bat
tie under the national industry re-
covery act Wednesday with q ruling
by Judge John p. Neilds that section
IA Is unconstitutional and void" as
applied to the Weirton Steel company
and its business.
The decision denied the govern.
lnent's plea for an injunction to re-
strain the company from dealing col
lectively with its employees through
the So-called company union and
held that the union is adequate under
the act.
THE enactment Of section IA
either is authorized by the commerce
clause Of the constitution or 1t Is un-
authorized and void" Judge Neilds
ruled. He further ruled that the
manufacturing operations conducted
by the defendant In its various plants
or mills do not constitute interstate
commerce.
Holds Present Plan Adequate
by q clear preponderance Of eu-
dence this court finds that the plan
Of employee representation IN effect
among the employees Of the defendant
affords lawful and effective organ
ization Of the employees for collective
bargaining through representatives OF
their own choosing. 80"
In point Of law, the Weirton COM
pany won its case clearly on the con-
tention that It's relationship with it,
employees does not constitute Inter.
state commerce and therefore any In
depreciation Of the section which
would regulate that relationship would
make the section void because con-
gress is empowered only to regulate
business Of an interstate nature.
Judge Neilds dismissed the govern.
ments bill Of complaint for an in
junction to restrain the company
from alleged. interference In its work
ers' selection Of collective bargaining
representatives.
Judge NeildS said:
There is no showing on the part
Of the plaintiff warranting the court
in issuing an injunction.
Section IA Void
Section 7-A, as applied to defend
ant and Its business, Is unconstttu-
tional and void"
The government In its suit con-
tended the Weirton employe repre-
sentative plan. or so-called company
union, did not constitute an adequate
arrangement Of collective bargaining.
The Weirton case was generally re.
garded as one Of the most important
tests Of the labor guarantee provis-
ions Of the national industrial recov-
cry act.
The government instituted the pro-
ceedings nearly year ago and lost
the first skirmish when Judge Nields
refused to issue preliminary injunc-
ton, holding that under the Norris
LaGuardia act hearing with wit
lesses In open court was necessary.
The trial began last October and
lasted about seven weeks.
The government contended the en-
ployes' representation plan, or So
called company union, did not ade-
quately serve the purposes Of section
IA Of the recovery act because It
did not permit collective bargaining
by the employees through represen.
tatives Of their own choosing.
It was argued that the company In.
stituted the employees organization,
financed it and conducted . campaign
Of intimidation against employees de-
sirous Of affiliation with the Amalga-
mated Association Of Iron Steel and
Tin Workers.
The company employs normally
about $4,000 men in Weirton and
Clarksburg, w. Va, and in Steuben-
vile, @.