The Wilmington morning star., 1945-11-20
Fair Enough
nv WESTBROOK PEGLER


reads that the natlonal government under
President Roosevelt delivered MIN into the
power Of gansters, tn1eVes' sluggers and
racketeers operating under union charters, he
NAV think that that is an exaggerated state
ment.
However this is literally true and the De-
nartnoent of Justice did consult the wishes of
Joseph Padway, lawyer and counsellor and
friend of some of the most loathesome under
world criminals of our time, in modifying the
language of the anti-racketeering act. This
modification made it possible for union gang
sters to continue to prey on the public and
it still protects them.
Padway is the general counsel Of the Ameri-
can Federation of Labor. He is loud-mouthed
and pushful and has long purported to be a
spokesman for American labor when the fact
is that he holds no credentials at all from
labor and is merely lawyer with a rich
practise specializing in union law. He repre-
sents various unions as distinguished from
American labor, only in the role of counsel
acting fol- his fee. For long time he got
away with the role of spokesman for America
labor and statesmen were afraid to cross him.
However publicity has shown him up so that
if TODAY he should start believing demands
and threats to committees of legislative bodies,
a sergeant alarms or exasperated law-maker
should not hesitate to treat him as they would
any obstreperous person.
Padway was general counsel for the dirty
Bioff- Browne underworld gang in the movie
industry and did some legal work for George
scalise of the Building Service Workers I'm
ion racket who, like Willie Bioff, began his
career as a bargaining agent by sharing in
the wages of prostitution. At least he says
he did some legal work to justify a fee of
$1,000 from Scalise. Both Of these rackets were
operations Of the Capone gang.
Tn those early DAVIS and before the facts of
his practice and clientele were known, Pad
way could walk in on the Attorney General Of
the United States to lay down demands in the
name Of labor.
In the particular case referred to here, the
flaw in the anti-racketeering act is still pre-
served, enabling gangsters of the Teamsters'
Union to practise highway robbery against the
owners of trucks freighting food and other con-
sumner goods across state lines. That this privi-
lege obviously increases the cost Of living to
those citizens who must eventually pay the
amount thus extorted goes without argument.
This was the celebrated teamsters' case in
which Local 8O7 of the teamsters and rs indivi-
duals were convicted of shaking down the
owners OF trucks entering New York from the
south by way of New Jersey. They charged
$8.41 to let small truck enter the tunnel and
50 AZ for free passage for big truck. A num-
Der of the individual defendants were ordinary
police characters with FBI. records, and
weren't even eligible for drivers licenses, and
therefore couldn't have been hired.
On the appeal to the Supreme Court, Justice
James Byrnes, now our Secretary OF State,
wrote the majority opinion, affirming the
Court Of Appeals which had reversed the Dis
trict court He admitted that the gansters did
use violence to obtain the money and, in some
cases, refused to perform even the nominal
work which was the pretext for the holdup
namely driving or merely riding the trucks
under the river.
Justice Byrnes held that the law against
racketeerfng in interstate commerce expected
"any person. who attempted to obtain
wages frcm bona fde employer to a bona
fide employee. This was the exception which
was inserted in the law before its final pas
sage by Congress, at the demand Of Padway
and William Green, president Of the A. F. of
L. Congress gave way, never imagining that,
in few years, the court would hold that this
language, offered as an honest and legitimate
protection to labor gave immunity to crin1i-
nails who got the money by violence and
threats and then refused to do any work.
Chief Justice Stone, for the minority, wrote
that when Congress was considering the act
no member "and no labor leader had the
temerity to suggest that such payments. made
only to secure immunity from violence. could
be regarded as the payment Of wages And
he added that the compulsion of such pay
ment never was made legitimate object OF
any union by any statute.
Padway remains general counsel of the
Transfers Union. Many Of its locals are mere
fronts for racketeers but nevertheless. as re-
Gently as the start of his fourth term cam
paign, Roosevelt selected the arrogant bosses
of the union as the primary audience for his
first big speech.
Padway tried to disown his old Friend Sea-
lise after these dispatches revealed Scalise's
criminal record and Tom Dewey uncovered
the racketeering of the Capone gang in the
guise Of the Building Service Workers Union.
But finally, he was confronted with letter
that he had written to Scalise, promising to
intercede for him with the Attorney General
in Washington and closing with the pledge
you can certainly count on me to help you
in every way possible and I will consider it
privilege"
Legislative committees and government Off
Gals onto him and other lawyers special
izing in union law are grabbing big fees from
the faceless people who have to belong or
starve.
Nevertheless the law stands today as Mr..
Byrnes Interpreted it. And the citizen, includ-
ing the worker and union members as we'll,
thus remains in the power of gangsters,
thieves, sluggers and racketeers. Because,
having planned it that way, the Roosevelt gov
eminent passed the word to some henchmen
in the Senate who quietly killed bill passed
by the House which would have revoked this
special privilege of Pathways client the