Evening star., 1940-07-11
Justice Department
Asks Jury Inquiry
In D. {. Sand Strike
Peace Tulks Continue
As Smoot Co. MONOPOLY
Probe Is Ordered
BULLETIN.

Inc NdLlOI1dl defense COUNCIL
today joined in efforts to settle
the our-day-old strike of $50
workers of the Smoot Sand IL
Gravel Corp, which ras resulted
in the layoff of 5000 employees in
construction trades here. Joseph
keenan,. assistant on labor rels-
tions to Sidney Hillman. labor
member of the National Defense
Council, sat in today for the first
time on conferences arranged by
the Cancellation Service of the
Labor Department and attended
by representatives of the strik-
ing union and the Smoot cor
poration.
AS the sand and gravel workers
strike entered its fourth day with
5000 construction workers idle, the
Department of Justice today pre-
pared to ask for a grand jury inves-
tigation of the legality of the
monopoly controlled by the Smoot
Sand g. Gravel Corp employer of
the $50 striking workmen.
Thurman Arnold, Assistant At
torney General in charge of the
Justice Departments anti trust
division, last night notified Federal
Works Administrator John M. Car
mody that an inquiry of the ''practi-
cal monopoly" of the Smoot concern
would be instituted in District Court
here within the next few days"
Poses Two Questions.
The local situation, Mr.. Arnold
said, presents two questions.
/. THE monopoly position of the
Smoot Sand & Gravel Corp.
which constitutes dangerous
bottleneck which at any time may
stop the entire building program in
the city" And
2. The reasons for the strike
which involves the Wages and Hours
Act"
Pressing its efforts to settle the
strike the Labor Department Con-
ciliation Service today held an
other joint conference of repre-
sentatives of the Smoot corpora
ton and the striking local, Sand
and Gravel Workers Union, No.
22075. an A. F. L. affiliate.
1t was stated unofficially that
there was "a bare possibility" that
settlement would be effected to-
day.
The strike was called, union
spokesman said. after the Wage
and Hour Division held that the
Smoot corporation dredge work.
ers were not seamen and, there
fore, were not exempt from the
Labor Standards Act. Under this
ruling, first issued by the Wage
and Hour Division in April, 1899,
and specifically applied to the Smoot
corporation on July after investi-
CATION of complaint. the Smoot
corporation reduced it's work week
to AZ hours, the maximum allowed
without payment of overtime.
In calling the strike, union spokes-
men said they had no dispute with
their employer and placed the blame
for their action on the arbitrary
attitude" of the Wage and Hour
Division. The division, however, re-
piled that there had been no change
in its position since the Labor
Standards Act went into effect in
October, 1898. and that the Smoot
corporation would have been spe-
cifically notified of it's violation" of
the law earlier has a previous COM
plant been received.
Compromise Proposed.
In his letter to Mr.. Carmody, Mr..
Arnold stated, in part:
go Because this company
*the Smoot Corporation) controls
a practical monopoly of the sand
and gravel used in construction in
Washington. the effect of their
closing down is to stop all construc-
ton in the city-to throw out of
work more than 5000 at present and
perhaps more than $4,000 in the
future over dispute involving not
more than $50 men, in addition to
stopping of the supply of sand and
gravel and delaying work on Gov
ernment construction imperatively
needed in the present crisis"
It was reported that the compro-
mise proposed by Conciliators How
ard r. Colvin and John j. Conner
involved application of 10 per
cent wage increase promised by the
company to time-and-a-half over
time payments that would be re-
quired for all work In excess OF a
hours q week.