Detroit evening times. (Detroit, Mich) 1921-1958, 1942-04-17
Unions Boss
Congressmen
PegIer Says
Our Churches Get Le&
Consideration at Law
By WESTBROOK PEGLER

SOIlSlO6I oIIOIi al Low
BY wEsTBROOK PEGLER
TUCSON, Ariz.. April ltd
L the politest temper and from
a strictly objective view, lest
ugly passion be aroused and dis1
unity provoked among us,
should like to present today
some facts OF interest concern]
ing the status of unions in tho
presence of our national legis1
lature and their status undef
the income tax provisions of the
Internal Revenue Act.
In both areas they enjoy very
special privilege and under the
income tax law they are privi-
legged even more than churcheS
and charitable organizations.
Now, in that recent decision
of the Supreme court in the so-
called Transfers case. the ma-
jority opinion of the court
written by Justice Byrnes. re-
views the legislative history oi|
the notwithstanding Act UNI
der which the prosecution was
brought.
II is pointed out that back inl
1888 the late Senator ROYAL 81
Copeland ran an investigation OF
rackets and introduced bill
providing penalties 10 be inflicted
on any person who obtains or
tries to obtain money by using
or threatening 10 use violence
or coercion in connection With
interstate commerce.
THIS proposal went through
L the Senate sailing but after|
il was passed, Will Green, the
president of the American Fede-
ration of Labor. which then hal1
the field TO itself. expressed
fear that such law might in-'
iure the interests of his organ
ization which he presumptuously
: refers TO always as Labor or
American Labor.
There was an implied sugges-
ton that Mr.. Green knew that
some of his unions were guilty
of the practices condemned by
the bill, for he wanted a special
exemption for unions.
Otherwise. why did he object
10 bill for such plainly noble
intent?
However, in those days. the
laracter of certain unions was
not as we'll known 10 the public.
or even 10 Congress, as II is
today.
So the department of justice
redrafted the bill al Green's sug-
gestion providing that the pay
ment Of wages by a bona fide
employer 10 bona fide employe
should not be precluded.
That. of course. was SUI
perfuous provision. because good
faith always is and necessarily
must be absent from any pay
ment induced by violence or
threats and. by the same token.
any payment Of wages made in
good faith could not even be
challenged under the original
version of the act.
Nevertheless. the attorney
general of the time. who was
our old friend, Homer Cummings.
wrote, 10 the House judiciary
committee. stating that the new
version had been approved by
Green and his counsel
| am not certain. but I believe
Brother Green's counsel then. as
now. was Joe Padway. the gen.
eral counsel of the AFL. who
was and remains general coun-
sci Of the notorious Browne.
Bioff-Circella movie union an&
who also did law work for
George Scalise of the Building
Service Union or racket and
publicly and unbluShingly praised
Browne as great labor leader
when II was common knowledge
that the dirty racketeer was
traitor TO all labor.
WELL, as l say, the public.
w Congress and, we may be
kind enough TO grant, even old
Homer. himself, did not then
realize the extent of the corrup-
ton in unions and the brutal
violence of common union prac-
tees, so the amendment was
agreed 10 by both houses with
out debate and became law.
II still did not legalize racket
eering. even by unions. because
il exempted only payments of
wages in good faith. but il re-
manned for the Supreme Court
in this recent decision to find
good faith even where violence
and threats had been used and
where the employer had no use
for another employe.
AS 20 income tax law. we find
that labor unions are just fatty
exempt from the tax and i'm
mune TO inspection.
For them the income tax
simply does not exist. although
they collect much more than one
billion--not million but billion
dollars out of the wages OF
American workers every year
and account for very little of it
and so far as any law Is con-
cerned. don't have to account
for a nickel to any one.
But the Methodist Church or
D-s,rs