Evening star., 1939-12-04
High Court UphoIds
MI. R. B. Order in
Newport News Case
Protection Of Employees
Interests in RoiIwoy
Leases Sustained
By the Associated Press.

By the Associated Press.
A National Labor Relations Board
order directing the Newport News
Shipbuilding & Dry Dock Co. to dis
establish an employees representa-.
tive committee as collective bar
gaining agency for the workmen was
sustained today by the Supreme
Court.
Justice Roberts delivered the
opinion that reversed ruling by
the Fourth Federal Circuit Court
that the company did not have to
withdraw recognition from the la
Dor organization.
No dissent was announced.
In another case involving en-
ploye-employer relationships tho
court held that the Interstate Com
merce Commission has power to
require that the economic interests
Of employees be protected In approx
ing railroad leases.
'The law" Justice Roberts said
in his decision in the Newport News
case, provides that an employe Or
ganization shall be free from inter-
ference or dominance by the en-
ployer.
Boards Conclusions Upheld.
1--WE cannot say that, upon the
uncontradicted facts, the board erred
in its conclusion that the purpose
Of the law could not be attained
without complete disestablishment Of
the existing organization which had
been dominated and controlled to
q greater or less exent by the re-
spondent.
I'm applying the statutory test Of
independence it Is immaterial that
the plan had in fact not engendered.
or, indeed, had obviated, serious
labor disputes in the past, or that
any company interference in the
administration Of the plan had been
Incidental rather than fundamental
and with good motives. 1t was for
Congress to determine whether, as
a matter Of policy, such a plan
should be permitted to continue in
force. We think the statute plainly
evinces contrary purpose and that
the boards conclusions are in accord
with that purpose.
Use of Case Is Test Claimed.
"The decree must be reversed and
the cause remanded for further
proceedings in conformity to this
opinion
The Circuit Court sustained por-
ton of the boards order directing
the company to cease interfering
with the group. That was not at
issue in the Supreme Court itiga.
tion.
Counsel for the company contend
ed in his argument before the tri.
bunal that the Labor Board wa
using the case to test whether "an
unafdliated union would be tor
Grated"
The board acted after charges
had been filed against the company
by the industrial Union Of Marine
and Shipbuilding Workers of Amer.
lea, q c. I. O. affiliate.
Directly at issue in the I. G. G.
case was an order of the commission
permitting the Chicago, Rock Island
& Pacific Railway Co. to lease the
Chicago, Rock Island & Gulf Rail-
way Co.. providing the interests Of
the employees affected were pro-
tected.
Three Judge Court Reversed.
A three Judge Federal Court for
Northern Illinois set aside the condi-
tions for the benefit of the employees.
but permitted the remainder Of the
order to stand.
Justice Stone said q provision
that business may be required to
carry the burden of employe wastage
incident to its operation" does not
infringe due process
I'VE cannot say" he continued
"that the just and reasonable con-
ditions imposed on appellees in this
case will not promote the public
interest in'1ts statutory meaning by
facilitating the national policy of
railroad consolidation; that it will
not tend to prevent interruption of
interstate commerce through labor
disputes growing out of labor griev-
ances, or that it will not promote
that efficiency of service which COM
mon experience teaches is advanced
by the just and reasonable treatment
Of those who serve"