Evening star., 1940-04-13

Move Is Made to Suve
Labor From Running
AfouI Of Lows
In a move to save labor organiza-
tions from running afoul Of the
antitrust laws, the Justice Depart
ment will rule on activities that
might restrain commerce before they
are put into operation by the unions,
Thurman Arnold, head of the Anti
Trust Division Of the department,
has advised John p. Coyne, presi-
dent Of the Building Trades Depart
ment Of the American Federation Of
Labor.
This new development in the cur
rent Government campaign against
restraints in the building industry
was disclosed late yesterday by Mr..
Coyne in an address to the 21st an
nual convention of the International
Union Of Operating Engineers when
he discussed the controversy be-
tween the department and organized
labor which vigorously has opposed
the application of antitrust laws to
labor
The convention today was In re-
cess until Monday. .s....., ....
Describing q meeting with Mr..
Arnold which followed q number of
conferences, Mr.. Coyne told the con-
vention that to his great surprise"
they carried on q conversation
which permitted us to arrive at con-
clusions that he did desire to modify
his program, at least to q certain
extent"
Not Policy Of Persecution.
Il discussed certain cases." he con-
tinued, "and while he stated that it
was not the policy of his department
in any way to persecute labor organ
lzationS as such, that it was their full
intention to carry out the purposes of
the investigation and If such in
vestigations warranted, to seek in
dictments before the Federal grand
jury and to prosecute such indict-
ments if the findings warranted"
Mr.. Coyne then read letter from
Mr.. Arnold in which he outlined the
course which labor might follow to
avoid criminal prosecutions, such as
already have been instituted in a
large number of cases.
First" the Assistant Attorney
General wrote, "the labor organiza-
ton may submit to the Department
OF Justice full statement of the
Facts about any activity which it has
undertaken or desires to undertake
which restraints interstate commerce
IN a. way the union considers rea-
sonable. If the department finds
that such activity violates the law
1t will so inform the union which
thereafter must act at its peril in
the event it disagrees with the de-
partment's position.
If Department Can't Advise.
1T the department is not in
position to state positively that the
practices are illegal at the time the
plan Is submitted, either because of
lack OF personnel to investigate or
for any other reason, and the union
decides to 60 ahead with the pro-
posed activity, any future action on
the part of the department will be
through civil proceedings. This
policy has been adopted because it
is not fair to keep any organization
under the hazard of criminal prose-
cutlon where 1t has submitted to
the department all the facts and
has been unable to receive a definite
answer" This policy, he amplif1ed,
was that applied in connection with
the pending case in which the de-
partment has instituted civil pro-
ceeolngs against the Association of
American Railroads because of an
agreement designed to KEEP etraffic
away from motor carriers.
Civil DEGREES.
Second" Mr.. Arnold said, I'VE
come to the civil decree. Business
groups some time desire to secure
the sanction Of a court decree for
q proposed course of action because
they intend to borrow money and
wish to assure the lender that no
risk OF prosecution Is involved. or
because in some other respect they
feel the need Of the utmost possible
advance guarantee of the legality
OF what they are doing. take it
for granted that the desires for
judicial sanction OF labor activities
Will seldom arise and therefore
there will seldom be occasion for
labor organizations to seek such q
decree. The procedure may be used,
however, wherever q labor group
now engaged in practices which the
department has questioned or is
likely to question believes there is
an advantage in obtaining q final
determination by a court as to the
legality of proposed activities.
I'm any such case q labor organ
ization may propose a decree to the
department with the assurance that
If the proposal appears to be in the
public interest the department will
submit the plan to q court with Q
recommendation that II b incor.
porated Ia q consent decree"