Evening star., 1940-02-26

To Pass on Apex
Damage Claims
Also Denies Unions
Right to Bring
Contempt Action
BY ]. A. FOX.

The Supreme Court today agreed
to pass on the right of an employer
to collect triple damages from q
union for injury growing out Of
strike disorders and in another case
held that union could not prose-
cute a contempt action against an
employer who was accused of violat-
ing an order of the National Labor
Relations Board which had peen
affirmed by court.
The case in which review was
granted was that involving the Apex
Hosiery Co. of Pennsylvania, which
had been awarded damages of $711,-
600 from the American Federation Of
Full Fashioned Hosiery Workers as
the result of plant damages grow
ing out of a strike in June. 1887.
After lower court had awarded
the triple damages under the Sher-
man Act. the decision was reversed
by the Third Circuit Court of Ap-
peals, which held that Apex's rem.
edy. If any. lay in the State courts.
The appeals court contended that
the effect on interstate commerce Of
the stoppage of the company's busi-
ness was indirect and remote and
holding that the restraint of trade
must be an unreasonable amount Of
the national volume Of commerce in
the commodity in order to constitute
a violation of the Serman Act.
Florida Citrus Case.
The case on which the court deci-
sion was handed down concerned the
attempt of the Amalgamated Utility
Workers to push contempt charges
against the Consolidated Edison Co..
which 1t contended had continued
unfair labor practices in violation of
the Labor Board order.
In another decision today the
court declined to pass on a Florida
law requiring that citrus growers be
paid at least the cost of producing
their product. The court said that
an injunction against the law had
bee improperly issued by three
Judge court and that the case should
be heard on its merits.
This decision. read by Justice Rob-
erts. brought c!ssents from Justices
Frankfurter, Black and Douglas
Justice Murphy did not participate.
TIE Apex case has been watched
with particular interest in labor cir
cles, particularly in view of the anti
trust drive the Justice Department
now has on against building trades
unions Of the American Federation
of Labor
In both cases G. I. O. unions were
involved.
The Apex Case.
The Apex Hosiery. the second
largest hosiery concern in the United
States, operates non-union shop
with $500 employees. The Full
Fashioned Hosiery Workers sought
a closed shop agreement at a time
when the company contended thay
had about only eight members
among it's employees.
When no agreement was reached
a demonstration was organized with
union members of other hosiery
mills being called out with the re-
suit that mob gathered at the Apex
plant, forced its way inside, de-
stroyed equipment and records and
then when collective bargaining
still was denied, forcibly organized a
sit-down strike.
The strikers eventually were
evicted by court order on June %,
1887. but plant operations were not
resumed until August and normal
operations until November of that
year.
While the strike was in progress,
the company contended, the strikers
had refused to permit orders to be
filled for $4,000 dozen pairs of
finished hosiery. Apex then brought
suit for damages to plant and busi-
ness under the Sherman Act, and
when the trial jury returned a ver-
dict for $237 7.310.85, the court trebled
it under the triple-penalty provisions
of the Sherman Act.
The Amalgamated case, in which
the unanimous opinion of the court
was read by Chief Justice Hughes,
was the result of charges of unfair
labor practices filed against the Edi-
son company. The Labor Board en-
(See COURT, Page A-4.)