Evening star., 1950-03-01
nam Witness Asks
Congress 10 Outlaw
Strikes Curbing Trade
By J. A. O'Leory

By J. A. oLeory
Congress was urged today by
spokesman for the National As
sociation of Manufacturers to out
law strikes or other union con-
duct which substantially re-
strains trade"
Raymond S. Smethurst, former
general counsel for NAM, testi-
fed before a Senate Judiciary sub
committee considering the growth
of monopolistic power in Nation
wide collective bargaining.
The witness Endorsed the bill of
Senator Robertson, Democrat, of
Virginia, to make labor unions
subject to antitrust laws when
they engage in practices alleged
to restrain trade. such as the
ordering of a three-day week in
the coal mines last year. The
three-day week recently was fol-
lowed by a complete stoppage.
Mr.. Smethurst testified, how
ever, that the Robertson bill does
not 60 far enough. He suggested
a series of Tightening amendments.
Not Absolute Ban.
"You are not advocating an alb
solute ban on strikes. are you?"
asked Senator Donnell, Republi-
can. of Missouri.
NO" the witness replied, "only
those which substantially restrain
trade"
Senator Donnell and the wit
ness agreed that prior to passage
of the Clayton Act in 1914 and
the Norris-La Guardia anti-labor-
Injunction law of 1882, the origi-
nal Sherman antitrust law ap-
piled to labor as well as industry.
The Missouri Senator said the
Robertson bill would merely re-
store application Of the Sherman
Act to labor.
Specifically, the Robertson bill
is intended to overcome a Su-
preme Court decision in 1941,
known as the Hutcheson Case.
which held that Congress in
tended to free labor unions from
the Sherman antitrust law as
long as they do not conspire with
non-labor groups to restrain
trade.
I'm my opinion. Congress must
do more than merely indicate to
the courts that the reasoning in
the Hutcheson case is not to be
applied in the future to restraints
of trade in essential articles or
services" Mr.. Smethurst contin-
ued. Let me restate what the
bill actually declares.
Urges Rephrasing.
I'm effect it states to the
courts that when the courts find
that a labor organization restrains
trade in an essential commodity,
the courts may no longer dismiss
that case on the theory that Con-
gress changed the Sherman Act
in enacting the Norris-La Guar
dia Act. The bill does not make
such restraints unlawful, nor are
the courts instructed to change
any other rule Of decision formu-
lated before the Hutcheson case,
20 that such restraints would be
held unlawful.
"Onei of these, unless changed,
could seriously restrict the appli-
cation Of this bill even beyond
its present limited purpose. I re-
fer in particular to the Supreme
Court decision in Apex Hosiery
Co. VS.. Leader, in which the
court held that the Sherman Act
was not intended to reach effects
on commerce caused by strikes,
but only activities which were in
tended to affect prices or the ac-
tual marketing of the product.
In view of this decision I
would urge that the bill be re-
phrased to declare expressly that
strikes or other union conduct
which substantially restrains trade
are unlawful"
Further Legislation Needed.
The NAM spokesman also rec
commended the bill be broadened
to cover ANY substantial restraint
Of trade in any commodity. to
the same extent the law now af-
fects business restraints"
In present form the bill would
deal only with union restraints
affecting commodities or services
essential to the maintenance of
the national economy, health or
safety"
In closing, Mr.. Smethurst ar
gued that, even with these
changes. "the effectiveness of the
bill in preventing the growth of
monopoly power in organizations
which have not yet succeeded in
compelling industry-wide national
bargaining, would be doubtful"
He said its passage probably
would not change the need for
legislation dealing with industry
wide bargaining.
Senator Eastland. Democrat, of
Mississippi, chairman of the sub
committee handling the bill. said
the hearings would continue
through Friday. The subcommit-
tee must then make q report to
the entire Judiciary Committee.
Indorsed by Miller.
Mr.. Smethrust predicted that If
the crippling coal strike is not
ended in a few hours. Congress
will be under pressure to abandon
the Robertson bill and act upon
some temporary expedient to set
tie the coal strike. If any emer-
gency legislation is proposed. the
witness urged that the Robertson
bill be attached to it.