Evening star., 1943-01-19
Findings by NLRB
Set Aside in RuIinu
By Supreme Court
Cases Involving Orders
Must Receive Fuir
Hearing, Opinion Says

National Labor Relations Board eff.
fective has the right to see that the
case "has been fairly heard" ac-
cording to the Supreme Court.
That principle was laid down yes
terday as the court, dividing 5 to 3
upheld requirement by the Sixth
Circuit Court of Appeals that the
NLRB hear evidence of alleged
dynamiting and other violence by &
local of the AFL international
Brotherhood of Electrical Workers
before the court would enforce q
board order against the Indiana &
Michigan Electric Co. of South
Bend arising from the unions
charges of unfair labor practices.
The board held that the alleged
violence was immaterial to its find
tngs, but the circuit court ruled that
the evidence might be material, and
the Supreme Court, in an opinion
by Justice Jackson, agreed. Justices
Black, Douglas and Murphy dis
Sented. 1t was one of the infre-
ouent instances where the high
tribunal has set aside the findings
OF an administrative agency.
Discretion Granted Courts.
The CWagner) Act accords a
great degree of finality to the
boards findings of fact, and this
court has been insistent that the
admonition of the act be strictly
observed" said the majority opinion.
But courts which are required upon
a limited review to lend their en-
forcement powers to the boards
orders are granted some discretion
to see that the hearings out of which
the conclusive findings emanate do
not shut off a party's right to pro-
duce evidence or conduct cross
examination material to the issue.
The statute demands respect for
the judgment of the board as to
what the evidence proves. But the
court is given discretion to see that
before a party's rights are finally
foreclosed his case has been fairly
heard. Findings cannot be said to
have been fairly reached unless ma
terial evidence which might i'm
peach, as well as that which will
support, its findings, is heard and
weighed"
In another case, the court inter
preted an old law as enabling any
one to sue defrauder of the Gov
eminent for double damages and
collect half the judgment, even
though the Government already has
criminally prosecuted the defender
and the civil suit uncovers no new
evidence. Justice Jackson, in brisk
dissent, observed that "if the statute
all these 30 years authorized this
sort OF proceeding, the legal profess
sion OF the United States has been
strangely unresponsive to a
windfall.
Justice Black delivered the 6-to-1
decision on litigation, based on an
"inforner" statute passed during the
Civil War, in which "informers" sued
the Electrical Contractors Associa-
ton of Pittsburgh and members of
the New Orleans chapter of the As
sociated General Contractors of
America.
Pending legislation would wipe
eut this statute. A bill to that eff
feet was passed by the Senate in
she last Congress, but died in the
House, where it now has been re-
introduced.
Lower Courts Reversed.
The majority opinion reversed de-
tisions by lower courts which had
denied double damages and pen
slties sought by the 'informers. The
tribunal held that this did not con-
stitute double jeopardy"
In the Pittsburgh opinion, Justice
Black said that Even If, as the
Government suggests, the petition
ers have contributed nothing to the
discovery of this crime, they have
contributed much to accomplishing
one of the purposes for which the
act was passed"
Their suit" Justice Black said,
results in a net recovery to the
Government of Sl50,O00, three times
as much as the fines imposed in the
criminal proceedings, and this re-
eovery was obtained at the risk of
q considerable loss to the petitioner
since (the legislation provides that
the tnformer must bear the risk of
having to pay the full cost of the
litigation"
Justice Department Stand.
The Justice Department contended
that the statute was intended to
authorize a suit by private individ-
uals only when they uncover and
prosecute offenses against the
United States and was not intended
to permit them to base a suit on
facts revealed by prior Government
action"
In both cases. 1t was said, many
Of the allegations were copied from
the indictment obtained by the
Government.
Morris L. Marcus instituted the
suit against So members of the Elec-
trical Contractors Association OF
Pittsburgh, Inc, who were charged
with conSpiring to defraud the Gov
eminent in connection with bidding
on PWA projects, and Samuel Os-
tranger sued Is members OF the New
Orleans chapter Of the Associated
General Contractors, who were al
legged to have defrauded the Gov
eminent in bids on the charity
hospital in New Orleans.
Warehouse Decision.
In another labor case. the court
ruled unanimously, that the en-.
ployes of warehousemen and whole
salers who sell and distribute prod.
Ucts entirely within one State are
not subject to the Federal Wage.
Hour Law even though the good,
may come from outside the State.
The decision, in opinions writer
by Justice Douglas, was made ir
cases involving the Jacksonville
tFls-) Paper Co. and Carr Bros. Co
of Portland, Me. The latter con.
ducts a wholesale produce and gro.
cery business.
Justice Douglas said in the Jack
sonville case that we cannot con
clude that all phases of a wholesal,
business selling intrastate are coy
L. ~ /