The Washington times., 1935-02-28
DEFEATS SLOW
PROGRESS Of.
LEGISLATION
Measures to Extend NRA and
To Set Up Labor Board
Face Delays
BY GEORGE r. HOLMES
international News Service

ueaI reeung ana gEOSSy 1Eom q
series of blows that strike at its
very vitals.
Two of them were delivered in
court decisions that held, in
effect, that the great steel and
coal industries-giant industries
from the standpoint of employ
ment-were practically exempt
from the labor provisions of the
National Recovery act.
IntraState Rules Banned
In the famous Weirton Steel
case, Judge John P. Nields ruled,
in Delaware, that the company
was not engaged in interstate COM
merce and thus was not obligated
to observe the collective bargain
ing clause of the recovery act.
He held that Congress, under the
Constitution, could not extend its
authority to company engaged
in interstate business.
Similarly, Judge Charles I. Daw.
son, in Kentucky, ruled that coal
mining is an intrastate business,
and thus is outside the scope of
the NRA.
The Government will appeal
both decisions. Ultimately the SUI
preme Court of the United States
will have to sustain or reject the
decisions of the lower courts.
Labor Policy Menaced
Administration legalists are
reasonably" confident of obtain
ing Government victory in both
instances. If they don't, then the
whole labor policy envisioned by
MIRA goes into the discard.
Broadly speaking, the Govern
ment's legal authorities said, if
coal and steel are not interstate
businesses, then what businesses
are?
The New Deal has proceeded on
the theory that such basis indus
tries as coal, steel, oil, mining and
manufacturing in general are In
terState in character and thus IL
able to Congressional regulation
under that clause of the Constitu-
tion which gives Congress the right
to deal with commerce that
crosses State lines.
If the Supreme Court ultimately
rules otherwise, then the New Deal
will have to be drastically over
hauled and re-assembled.
Legislation Delayed
Meanwhile, however, the effect
Of the two decisions is further to
delay recovery legislation in a
Congress already exhibiting a dis
position to hardness.
There Is pending IN the Seventy.
fourth Congress the proposal for
a two years extension of NRA
"aS u.s." as far as section IA is con.
Gerned. This is the collective bar
gaining clause which Judge Nields
held Is imperative in the Weirton
case.
Back of this MIRA extension act
Is the Wagner labor disputes bill,
which goes far beyond the Ian.
guage of Section IA. The Wag-
ner bill would, in effect, outlaw
company unions such as the
Weirton Company set up, and
compel employers to recognize
the majority of their employees
as entitled to speak for all the
workers.
3O-HOur Week Hit
The Nields-Dawson decisions in.
evitably will delay action on the
Wagner bill, and also upon the
Black bill, which would impose
q flat 30-hour week in all in
duStry.
Both the Wagner and Black
bills were held to have a fair
chance Of passage, despite Admin
iStration GOODNESS to them. The
adverse decisions of Judges Nields
and Dawson have, at least, placed
both bills in jeopardy.
Organized labor, which already
has demonstrated it's power in
the work-relief bill by blocking
its passage without the McCar.
ran prevailing wage amendment,
Is Solidly back Of the Wagner
and Black bills.
Green Flags Decision
William Green, president of the
American Federation of Labor,
savagely attacked the Nields de-
CiSion today.
II sustained, he said, this de-
ciSion means that labor will be
reduced to a condition of indus
trial Servitude."
Senator agner declined to
comment.
Industry Halls Ruling
On the other hand, James A,
Emery, counsel for the National
Association OF Manufacturers.
hailed the decision in the Weir
ton case as "reviving constitu-
tional government" Mr.. Emery
predicted the decision sounds the
death knell of such "fallacies"
as the Wagner bill and the Black
30-hour bill.
The Supreme Court ultimately
will determine who is right.
But meanwhile, the whole re-
covery program is in state of
pause.