Evening star., 1946-03-26
Supreme Court Holds
'Tie-in' Sales Legal
lin 5-to-3 Decision

"Tie-in sales" in which a mer-
chant is required to buy some sec
ondary product in order to obtain
scarce commodities do not violate
OPA regulations, If the articles
forced on the purchaser have some
value.
This principle was laid down by
the Supreme Court yesterday in a
5-3 decision written by Justice
Murphy Justices Black, Reed and
Burton dissented.
In another So decision the court
held that union leaders accused of
pocketing funds collected from work.
men could not be prosecuted under
the Federal "Nckback" act.
Justice Murphy, who wrote this
majority opinion also, said the law
was designed to protect workers
from INSCRIPTIONS contractor en-
ployers, and that there was moth
ing IN the legislative history to sup
port the thesis that the statute was
intended to affect legitimate union
activities"
Justice Frankfurter dissented.
along with Chief Justice Stone and
Justice Burton.
Will Rule on Clusters.
In another action, the court
agreed to rule on the constitution
allty OF the congressional fiat deny-
ing pay to three employees of the
executive department who were ac-
cused OF subversive activities. The
three and their Jobs were: Robert
Morss Lovett, executive assistant to
the Governor of the Virgin Islands;
Goodwin B. Watson and William E.
Dodd, jr., both connected with the
foreign broadcast intelligence serv-
Ice OF the Federal Communication
Commission. The men won a suit
Tor back pay in the Court of Claims
In the "tie-in" sales case. M
kraus d Bros, Inc. New York CITY
wholesalers, were fined s22 500 in
Federal District Court on charges
growing out of the sale of turkeys
prior to Thanksgiving Day, 1s43.
1he Government charged the
concern required buyers to purchase
chicken skin and feet as a condi-
tlon OF the sale of turkeys. The
conviction was upheld by the Fed
eral Circuit Court.
In the majority opinion, Justice
Murphy said the court interpreted
an OPA regulation ''as prohibiting
only those tie-in agreements in
volving secondary products that are
worthless or that are sold at arti-
nclal prices. 1t follows that the
conviction below cannot stand"
Judges Charge Held Erroneous.
He said that while the informa-
ton could be interpreted as charg-
ing crime under OPA regulations
the trial judges charge to the jury
was clearly erroneous.
There was evidence. at first ex-
cluded. but later admitted that the
chicken parts which the petitioner
sold did have value and were sold
at their market value"
In remandlng the case for a new
trial, the court said. Full opportu-
nifty for the introduction of evidence
as to the value Of the chicken parts"
should be allowed.
In his dissenting opinion. Justice
Black said
In my opinion, petitioners prac-
tice ip forcing the butchers to buy.
chicken feet in order to1
get wanted turkeys amounted to a
direct violation Of the Price Con-
troll Act -, /
Four Union Officials Accused. !
In the "kickback" case the Justice
had contended that
four union officials collected IS
weekly from construction employees
at Fort Devens, Mass, to apply on
union initiation dues of the work
ers, then concealed from the union
the money collected from men who
quit and did not become union mem
bers.
The Supreme Court upheld the
action OF the District Court in dis
the indictment.
1T is enough to note that the
act was designed solely to prevent
workers from wrongfully being de-
prived OF their full wages and that
evils relating to the internal man
aeement of unions were matters
with which Congress did not concern
itself in enacting the kickback act
Justice Murphy said
In dissenting. Justice Frankfurter
said the act should not be inter
preted so as to protect those de-
scribed in the indictments as collect
ing funds by coercion, through their
control over jobs, for their own
personal advantage"
In another case involving unions,
the court refused to pass on the
of 4 Florida constitutional
banning the closed
union shop until the Florida State
courts had passed on the matter. A
Federal District Court in Florida
!, . u al xho