Evening star., 1945-01-27
By the Associated Press.

=
opinion received up to the time
this edition tpent to press.)
This is civIl action under ths
Declaratory Judgment Act of Junt
IL, 1884 (title 20. section 400 USCA)
brought by the United States against
Montgomery Ward g. Co., Inc, ane
16 of it's officers.
This court has jurisdiction of this
suit by virtue Of section "a Cd oi
the judicial Code (2s USCA, section
ii Q),), and under section 274 CD
of the Judicial Code (28 USCA, Sec
ton 400),
The cause was submitted to the
court on the pleadings, afiidavits
and briefs, and counsel agreed that
the heating was on the merits as
well as on the motions for temporary
and permanent injunctions and
declaratory judgment.
Plants Seized December 20.
Under authority alleged to have
been derived from section 8 of the
War Labor Disputes Act. known as
the Smith Connally Act (title SO
app. section 1903 USCA), the Presi-
dent of the United States, by exec
utive order No, 9508, dated Deeem-
ber 27, 1914, directed the Secre-
tary of War to take possession OF
and operate the plants and facilities
of Montgomery Ward & Co. located
at Jamaica, N. Y; Detroit, Dear
born and Royal Oak, Mich; Chicago
St. Paul, Denver, San Rafael, Calf
and Portland, Greg.
On December %, 1914, the Secre-
tary of War took possession of the
plants and facilities described in the
executive order and is now in pos
session thereof. simultaneously, or
December 28, 1914, the complaint
herein was filed, wherein the Gov
ernment asks for a declaratory
Judgment and decree of this court
declaring the rights and status OF
plaintiff, and more particularly de-
claring that under the executive
order of the President issued on De-
cember ~, 1914, the Government is
in lawful possession of the plants
and facilities of the defendant. The
complaint also asks that the court
enjoin defendants from interfering
with plaintiffs possession of such
plants and facilities.
Named Mediation Board.
In 1s40-l, with the greatly ex-
panded war production program
the number of strikes in the country
increased rapidly. To meet this Sit
uation and to provide for the peace
full settlement of labor disputes
while at the same time maintaining
the production of material and
equipment essential to national de-
tense, the President, on March l9
1941, by executive order established
the National Defense Mediation
Board with jurisdiction to hear and
make recommendations in labor con-
troversies or disputes which might
interfere with war production.
The National Defense Mediation
Board functioned until December
1941, when it seemed expedient and
advisable that it be given addi-
tional power. On December II, l94l,
10 days after Pearl Harbor, the
President convened at Washington
a conference of representative lead
ers. of labor, industry and the public
to discuss a national wartime labor
policy. 1t was there agreed and
recommended that for the duration
of the war there should be no strikes
or lockouts, but that all labor dis
putes should be peacefully settled
by board to be established for the
adjustment of such disputes.
Accordingly, the President, on
January IL. 1942, by executive order
No. 9017, established the National
War Labor Board, authorized to take
jurisdiction, either as a result Of
certifcation from the Labor Depart
ment or from its own investigation,
over such labor disputes as might
lead to substantial interference with
the war effort, and which could not
be settled by collective bargaining or
conciliation.
StSCo D1SputCSs
The complaint herein set out that
Montgomery Ward has had a long
history of labor disputes which 1t
has refused to settle peacefully by
the procedures provides in execu-
tive order No. 9017 and the War
Labor Dispites Act; and the Gov
ernment insists this course of action
interferes with or threatens to in
terfere with and delay the effective
prosecution of the war.
Defendant has filed its answer
to the complaint, alleging that the
President issued executive order No
950s on December az, 1914, for the
purpose of enforcing the orders OF
the War Labor Board, which are
only advisory. That the order OF
the President in this case is illegal
and void, and the seizure made
pursuant here to is in violation OF
the Constitution of the United
States. Defendant further urges
that no act of Congress and nc
power conferred upon him by the
oOllot4gQt1Oll ouOllo1 &END VAC iCpi-
dent to enforce the orders of the
War Labor Board by seizure of its
plants and properties.
Numerous Affidavits.
Plaintiff and defendant have both
filed numerous affidavits in support
of their respective positions; the
case has been argued at length and
exhaustive briefs have been fur
nished to the court
Montgomery Ward is admittedly
one of the largest merchandising
organizations in the world, It's busi-
ness is Nationwide in scope. 1t sells
approximately $500, 100000 worth eot
merchandise annually to approxi-
mately 100000 customers, large
percentage of whom are farmers Of
live in rural areas. 1t operates 64t
department stores, 100 catalogue
mail order Offices and 8 mail order
houses. Its general administrative
Offices and warehouse as well as d
mail order division and a retail
store, are located at Chicago, Il
sells building materials, farm ma.
chinery, heating apparatus, plumb.
ing supplies. electrical and .automo.
bile supplies, repair parts, clothing
l,.,,-.