1. The Act of October 15, 1914, known as the Clayton Act, in so
far as it grants relief by injunction to private suitors, or
affixes conditions and otherwise modifies the Sherman Act, is
applicable to a suit for an injunction pending at the time of its
enactment. P.
254 U. S.
464.
2. For the purpose of compelling a manufacturer of printing
presses to unionize its factory in Michigan, in which there had
been an unsuccessful strike, and to enforce there the "closed
shop," the eight-hour day and the union scale of wages,
organizations of machinists with headquarters at New York City, and
a larger organization of national scope with which they were
affiliated, entered into a combination to interfere with and
restrain the manufacturer's interstate trade by means of a
"secondary" boycott, centered particularly at New York City and
vicinity where many of the presses were marketed, in pursuance of
which this manufacturer's customers in and near New York were
warned, with threats of loss and of sympathetic strikes in other
trades, not to purchase or install its presses; a trucking company
usually employed by customers
Page 254 U. S. 444
was notified, with threats, not to haul them; employees of the
trucking company and of customers were incited to strike in order
to prevent both hauling and installation; repair hops were notified
not to repair them; union men were coerced by threats of the loss
of their union cards and of being blacklisted as "scabs" if they
assisted in installing them; an exposition company was threatened
with a strike, if it allowed them to be exhibited, etc., etc. --
all of which seriously interfered with the interstate trade of the
manufacturer and caused great loss to its business.
Held,
a combination and conspiracy to restrain interstate commerce
against which the manufacturer was entitled to relief by injunction
under the Sherman Act, as amended by the Clayton Act. Pp.
254 U. S. 461
et seq.
3. A conspiracy is a combination of two or more by concerted
action to accomplish an unlawful purpose or to accomplish a purpose
not in itself unlawful by unlawful means. If the purpose be
unlawful, it may not be carried out by means otherwise lawful; and
although it be lawful, it may not be carried out by means that are
unlawful. P.
254 U. S.
465.
4. A "secondary boycott" is a combination not merely to refrain
from dealing with the person aimed at, or to advise or by peaceful
means persuade his customers to refrain, but to exercise coercive
pressure upon such customers, actual or prospective, in order to
cause them to withhold or withdraw patronage through fear of loss
or damage to themselves. P.
254 U. S.
466.
5. In determining the right to an injunction under the Clayton
and Sherman Acts, the legality or illegality of a boycott under the
common law or under the statutes of a particular State is of minor
consequence, since the acts of Congress are paramount in their
field, and must be given full, independent effect. P.
254 U. S.
466.
6. It is settled by decisions of this court that a restraint of
interstate commerce produced by peaceable persuasion violates the
Sherman Act, and is not justified by the fact that the participants
in the combination or conspiracy have an object beneficial to
themselves or their associates which they might have been at
liberty to pursue in the absence of the statute. P.
254 U. S.
468.
7. Section 6 of the Clayton Act, in declaring that nothing in
the antitrust laws shall be construed to forbid the existence and
operation of labor organizations or to forbid their members from
lawfully carrying out the legitimate objects thereof, and that such
organizations or their members shall not be construed to be illegal
combinations or conspiracies in restraint of trade, assumes that
the normal objects of such organizations are legitimate, but
contains nothing
Page 254 U. S. 445
to exempt them or their members from accountability when they
depart from objects that are normal and legitimate and engage in an
actual combination or conspiracy in restraint of trade. It does not
authorize any activity otherwise unlawful, or enable a normally
lawful organization to cloak such an illegal combination or
conspiracy. P.
254 U. S.
468.
8. The first paragraph of § 20 of the Clayton Act -- which
provides that injunctions shall not be granted in any case between
an employer and employees, etc., growing out of a dispute
concerning the terms and conditions of employment, unless necessary
to prevent irreparable injury to property, or to a property right,
of the party making the application, for which injury there is no
adequate remedy at law, and that such property right must be
described with particularity in the application, which must be in
writing and sworn to by the applicant or by his agent or attorney
-- is merely declaratory of the law as it stood before. P.
254 U. S.
469.
9. The second paragraph of 20 of the Clayton Act, which provides
that "no such . . . injunction shall prohibit" certain specified
acts, manifestly refers to injunctions in any case of the character
mentioned in the paragraph preceding, namely, "a case between an
employer and employees . . . involving, or growing out of, a
dispute concerning terms or conditions of employment;" and the
concluding words of the second paragraph, "nor shall any of the
acts specified in this paragraph be considered or held to be
violations of any law of the United States," are to be read in the
light of the context, and mean only that those acts are not to be
so held when committed by parties concerned in a "dispute
concerning terms or conditions of employment." P.
254 U. S.
469.
10. As the section imposes an exceptional and extraordinary
restriction upon the equity powers of the federal courts, and upon
the general operation of the antitrust laws, conferring a special
privilege or immunity upon a particular class to the detriment of
the general public, the rules of statutory construction forbid that
the privilege be enlarged by resorting to a loose construction or
by ignoring or slighting the qualifying words of the section. P.
254 U. S.
471.
11. This section confines the exceptional privilege to those who
are proximately and substantially concerned in an actual dispute
respecting the terms or conditions of their own employment, past,
present or prospective; it does not use the words "employers and
employees" in a general class sense, or treat all the members of a
labor organization as parties to a dispute which proximately
affects but a few of them. Pp.
254 U. S. 471
et seq.
Page 254 U. S. 446
12. That the Clayton Act was not intended to legalize the
secondary boycott is shown by its legislative history. P.
254 U. S.
474.
13. In construing an act of Congress, debates expressing views
and motives of individual members may not be resorted to, but
reports of committees and explanatory statement in the nature of a
supplemental report made by the committee member in charge of the
bill in course of passage, may.
Id.
252 Fed.Rep. 722, reversed.
The case is stated in the opinion.
Page 254 U. S. 460
MR. JUSTICE PITNEY delivered the opinion of the Court.
This was a suit in equity brought by appellant in the District
Court for the Southern District of New York for an injunction to
restrain a course of conduct carried on by defendants in that
district and vicinity in maintaining a boycott against the products
of complainant's factory, in furtherance of a conspiracy to injure
and destroy its goodwill, trade, and business -- especially to
obstruct and destroy its interstate trade. There was also a prayer
for damages, but this has not been pressed, and calls for no
further mention. Complainant is a Michigan corporation, and
manufactures printing presses at a factory in Battle Creek, in that
state, employing about 200 machinists in the factory, in addition
to 50 office employees, traveling salesmen, and expert machinists
or road men, who supervise the erection of the presses for
complainant's customers at their various places of business. The
defendants who were brought into court and answered the bill are
Emil J. Deering and William Bramley, sued individually and as
business agents and representatives of District No. 15 of the
International Association of Machinists, and Michael T. Neyland,
sued individually and as business agent and representative of Local
Lodge No. 328 of the same association. The District
Page 254 U. S. 461
Council and the Lodge are unincorporated associations having
headquarters in New York City, with numerous members resident in
that city and vicinity. There were averments and proof to show that
it was impracticable to bring all the members before the court and
that the named defendants properly represented them; and those
named were called upon to defend for all, pursuant to equity rule
38 (226 U.S. 659). Other jurisdictional averments need no
particular mention. The District Court, on final hearing, dismissed
the bill, 247 Fed. 192, the Circuit Court of Appeals affirmed its
decree, 252 Fed. 722, and the present appeal was taken.
The jurisdiction of the federal court was invoked both by reason
of diverse citizenship and on the ground that defendants were
engaged in a conspiracy to restrain complainant's interstate trade
and commerce in printing presses, contrary to the Sherman Antitrust
Act of July 2, 1890, c. 647, 26 Stat. 209. (Comp. St. §§
8820-8823, 8827-8830). The suit was begun before but brought to
hearing after the passage of the Clayton Act of October 15, 1914,
c. 323, 38 Stat. 730. Both parties invoked the provisions of the
latter act, and both courts treated them as applicable. Complainant
relied also upon the common law; but we shall deal first with the
effect of the acts of Congress.
The facts of the case and the nature of the relief prayed are
sufficiently set forth in the report of the decision of the Circuit
Court of Appeals. 252 Fed. 722. The case was heard before Circuit
Judges Rogers and Hough and District Judge Learned Hand. Judge
Rogers, although in the minority, stated the case and the pleadings
for the court (pp. 723-727), and delivered an opinion for reversal
in which he correctly outlined (pp. 734-737) the facts as shown by
the undisputed evidence -- defendants having introduced none.
Judges Hough and Hand followed with separate opinions for
affirmance, not, however, disagreeing with Judge Rogers as to the
facts. These may
Page 254 U. S. 462
be summarized as follows:
Complainant conducts its business on the "open shop" policy,
without discrimination against either union or non-union men. The
individual defendants and the local organizations of which they are
the representatives are affiliated with the International
Association of Machinists, an unincorporated association having a
membership of more than 60,000, and are united in a combination, to
which the International Association also is a party, having the
object of compelling complainant to unionize its factory and
enforce the "closed shop," the eight-hour day, and the union scale
of wages, by means of interfering with and restraining its
interstate trade in the products of the factory. Complainant's
principal manufacture is newspaper presses of large size and
complicated mechanism, varying in weight from 10,000 to 100,000
pounds, and requiring a considerable force of labor and a
considerable expenditure of time -- a week or more -- to handle,
haul, and erect them at the point of delivery. These presses are
sold throughout the United States and in foreign countries; and, as
they are especially designed for the production of daily papers,
there is a large market for them in and about the city of New York.
They are delivered there in the ordinary course of interstate
commerce, the handling, hauling, and installation work at
destination being done by employees of the purchaser under the
supervision of a specially skilled machinist supplied by
complainant. The acts complained of and sought to be restrained
have nothing to do with the conduct or management of the factory in
Michigan, but solely with the installation and operation of the
presses by complainant's customers. None of the defendants is or
ever was an employee of complainant, and complainant at no time has
had relations with either of the organizations that they represent.
In August, 1913 (eight months before the filing of the bill), the
International Association called a strike at complainant's
Page 254 U. S. 463
factory in Battle Creek, as a result of which union machinists
to the member of about 11 in the factory and 3 who supervised the
erection of presses in the field left complainant's employ. But the
defection of so small a number did not materially interfere with
the operation of the factory, and sales and shipments in interstate
commerce continued.
The acts complained of made up the details of an elaborate
programme adopted and carried out by defendants and their
organizations in and about the city of New York as part of a
countrywide programme adopted by the International Association, for
the purpose of enforcing a boycott of complainant's product. The
acts embraced the following, with others: warning customers that it
would be better for them not to purchase, or, having purchased, not
to install, presses made by complainant, and threatening them with
loss should they do so; threatening customers with sympathetic
strikes in other trades; notifying a trucking company, usually
employed by customers to haul the presses, not to do so, and
threatening it with trouble if it should; inciting employees of the
trucking company, and other men employed by customers of
complainant, to strike against their respective employers in order
to interfere with the hauling and installation of presses, and thus
bring pressure to bear upon the customers; notifying repair shops
not to do repair work on Duplex presses; coercing union men, by
threatening them with loss of union cards and with being
blacklisted as "scabs" if they assisted in installing the presses;
threatening an exposition company with a strike if it permitted
complainant's presses to be exhibited; and resorting to a variety
of other modes of preventing the sale of presses of complainant's
manufacture in or about New York City, and delivery of them in
interstate commerce, such as injuring and threatening to injure
complainant's customers and prospective customers, and persons
concerned
Page 254 U. S. 464
in hauling, handling, or installing the presses. In some cases,
the threats were undisguised; in other cases, polite in form, but
nonetheless sinister in purpose and effect.
All the judges of the Circuit Court of Appeals concurred in the
view that defendants' consisted essentially of efforts to render it
impossible for complainant to carry on any commerce in printing
presses between Michigan and New York, and that defendants had
agreed to do and were endeavoring to accomplish the very thing
pronounced unlawful by this court in
Loewe v. Lawlor,
208 U. S. 274, and
Lawlor v. Loewe, 235 U. S. 522. The
judges also agreed that the interference with interstate commerce
was such as ought to be enjoined unless the Clayton Act of October
15, 1914, forbade such injunction.
That act was passed after the beginning of the suit, but more
than two years before it was brought to hearing. We are clear that
the courts below were right in giving effect to it; the real
question being whether they gave it the proper effect. Insofar as
the act (a) provided for relief by injunction to private suitors,
(b) imposed conditions upon granting such relief under particular
circumstances, and (c) otherwise modified the Sherman Act, it was
effective from the time of its passage, and applicable to pending
suits for injunction. Obviously, this form of relief operates only
in futuro, and the right to it must be determined as of
the time of the hearing.
Pennsylvania v. Wheeling &
Belmont Bridge Co., 18 How. 421,
59 U. S. 431,
59 U. S. 432.
See also United States v. Schooner
Peggy, 1 Cranch, 103,
5
U. S. 110;
Sampeyreac v. United
States, 7 Pet. 222,
32 U. S. 239,
240;
Mills v. Green, 159 U. S. 651,
159 U. S. 653;
Dinsmore v. Southern Express Co., 183 U.
S. 115,
183 U. S. 120;
Berry v. Davis, 242 U. S. 468,
242 U. S. 470.
The Clayton Act, in section 1, includes the Sherman Act in a
definition of "antitrust laws," and in section 16 (38 Stat. 737)
gives to private parties a right to relief by injunction in any
court of the United States against threatened loss or
Page 254 U. S. 465
damage by a violation of the antitrust laws, under the
conditions and principles regulating the granting of such relief by
courts of equity. Evidently this provision was intended to
supplement the Sherman Act, under which some of the federal courts
had held, as this court afterwards held in
Paine Lumber Co. v.
Neal, 244 U. S. 459,
244 U. S. 471,
that a private party could not maintain a suit for injunction.
That complainant's business of manufacturing printing presses
and disposing of them in commerce is a property right, entitled to
protection against unlawful injury or interference; that
unrestrained access to the channels of interstate commerce is
necessary for the successful conduct of the business; that a
widespread combination exists, to which defendants and the
associations represented by them are parties, to hinder and
obstruct complainant's interstate trade and commerce by the means
that have been indicated; and that, as a result of it, complainant
has sustained substantial damage to its interstate trade, and is
threatened with further and irreparable loss and damage in the
future -- is proved by clear and undisputed evidence. Hence, the
right to an injunction is clear if the threatened loss is due to a
violation of the Sherman Act as amended by the Clayton Act.
Looking first to the former act, the thing declared illegal by
its first section (26 Stat. 209) is:
"Every contract, combination in the form of trust or otherwise,
or conspiracy, in restraint of trade or commerce among the several
states, or with foreign nations."
The accepted definition of a conspiracy is a combination of two
or more persons by concerted action to accomplish a criminal or
unlawful purpose, or to accomplish some purpose not in itself
criminal or unlawful by criminal or unlawful means.
Pettibone
v. United States, 148 U. S. 197,
148 U. S. 203.
If the purpose be unlawful, it may not be carried out, even by
means that otherwise would be legal; and, although
Page 254 U. S. 466
the purpose be lawful, it may not be carried out by criminal or
unlawful means.
The substance of the matters here complained of is an
interference with complainant's interstate trade, intended to have
coercive effect upon complainant, and produced by what is commonly
known as a "secondary boycott" -- that is, a combination not merely
to refrain from dealing with complainant, or to advise or by
peaceful means persuade complainant's customers to refrain
("primary boycott"), but to exercise coercive pressure upon such
customers, actual or prospective, in order to cause them to
withhold or withdraw patronage from complainant through fear of
loss or damage to themselves should they deal with it.
As we shall see, the recognized distinction between a primary
and a secondary boycott is material to be considered upon the
question of the proper construction of the Clayton Act. But, in
determining the right to an injunction under that and the Sherman
Act, it is of minor consequence whether either kind of boycott is
lawful or unlawful at common law or under the statutes of
particular states. Those acts, passed in the exercise of the power
of Congress to regulate commerce among the states, are of paramount
authority, and their prohibitions must be given full effect,
irrespective of whether the things prohibited are lawful or
unlawful at common law or under local statutes.
In
Loewe v. Lawlor, 208 U. S. 274,
where there was an effort to compel plaintiffs to unionize their
factory by preventing them from manufacturing articles intended for
transportation beyond the state, and also by preventing vendees
from reselling articles purchased from plaintiffs and negotiating
with plaintiffs for further purchases, by means of a boycott of
plaintiffs' products and of dealers who handled them, this court
held that there was a conspiracy in restraint of trade actionable
under section 7 of the
Page 254 U. S. 467
Sherman Act, and, in that connection, said (p. 293):
"The act prohibits any combination whatever to secure action
which essentially obstructs the free flow of commerce between the
states, or restricts, in that regard, the liberty of a trader to
engage in business. The combination charged falls within the class
of restraints of trade aimed at compelling third parties and
strangers involuntarily not to engage in the course of trade except
on conditions that the combination imposes. And when the case came
before the court a second time,
235 U. S.
235 U.S. 522,
235 U. S. 534, it was held
that the use of the primary and secondary boycott and the
circulation of a list of 'unfair dealers,' intended to influence
customers of plaintiffs and thus subdue the latter to the demands
of the defendants, and having the effect of interfering with
plaintiffs' interstate trade, was actionable."
In
Eastern States Retail Lumber Dealers' Association v.
United States, 234 U. S. 600,
wholesale dealers were subjected to coercion merely through the
circulation among retailers, who were members of the association,
of information in the form of a kind of "blacklist," intended to
influence the retailers to refrain from dealing with the listed
wholesalers, and it was held that this constituted a violation of
the Sherman Act. Referring to this decision, the court said, in
Lawlor v. Loewe, 235 U. S. 522,
235 U. S.
534:
"That case establishes that, irrespective of compulsion or even
agreement to observe its intimation, the circulation of a list of
'unfair dealers,' manifestly intended to put the ban upon those
whose names appear therein, among an important body of possible
customers combined with a view to joint action and in anticipation
of such reports, is within the prohibitions of the Sherman Act if
it is intended to restrain and restrains commerce among the
states."
It is settled by these decisions that such a restraint produced
by peaceable persuasion is as much within the
Page 254 U. S. 468
prohibition as one accomplished by force or threats of force,
and it is not to be justified by the fact that the participants in
the combination or conspiracy may have some object beneficial to
themselves or their associates which possibly they might have been
at liberty to pursue in the absence of the statute.
Upon the question whether the provisions of the Clayton Act
forbade the grant of an injunction under the circumstances of the
present case, the Circuit Court of Appeals was divided, the
majority holding that, under section 20, "perhaps in conjunction
with section 6," there could be no injunction. These sections are
set forth in the margin. [
Footnote
1] Defendants seek to derive from them some
Page 254 U. S. 469
authority for their conduct. As to section 6, it seems to us its
principal importance in this discussion is for what it does not
authorize, and for the limit it sets to the immunity conferred. The
section assumes the normal objects of a labor organization to be
legitimate, and declares that nothing in the antitrust laws shall
be construed to forbid the existence and operation of such
organizations or to forbid their members from
lawfully
carrying out their legitimate objects; and that such an
organization shall not be held in itself -- merely because of its
existence and operation -- to be an illegal combination or
conspiracy in restraint of trade. But there is nothing in the
section to exempt such an organization or its members from
accountability where it or they depart from its normal and
legitimate objects and engage in an actual combination or
conspiracy in restraint of trade. And by no fair or permissible
construction can it be taken as authorizing any activity otherwise
unlawful, or enabling a normally lawful organization to become a
cloak for an illegal combination or conspiracy in restraint of
trade as defined by the antitrust laws.
The principal reliance is upon section 20. This regulates the
granting of restraining orders and injunctions by the courts of the
United States in a designated class of cases, with respect to (a)
the terms and conditions of the relief and the practice to be
pursued, and (b) the character of
Page 254 U. S. 470
acts that are to be exempted from the restraint, and, in the
concluding words, it declares (c) that none of the acts specified
shall be held to be violations of any law of the United States. All
its provisions are subject to a general qualification respecting
the nature of the controversy and the parties affected. It is to be
a
"case between an employer and employees, or between employers
and employees, or between employees, or between persons employed
and persons seeking employment, involving, or growing out of, a
dispute concerning terms or conditions of employment."
The first paragraph merely puts into statutory form familiar
restrictions upon the granting of injunctions already established
and of general application in the equity practice of the courts of
the United States. It is but declaratory of the law as it stood
before. The second paragraph declares that "no such restraining
order or injunction" shall prohibit certain conduct specified --
manifestly still referring to a "case between an employer and
employees, . . . involving, or growing out of, a dispute concerning
terms or condition of employment," as designated in the first
paragraph. It is very clear that the restriction upon the use of
the injunction is in favor only of those concerned as parties to
such a dispute as is described. The words defining the permitted
conduct include particular qualifications consistent with the
general one respecting the nature of the case and dispute intended;
and the concluding words, "nor shall any of the acts specified in
this paragraph be considered or held to be violations of any law of
the United States," are to be read in the light of the context, and
mean only that those acts are not to be so held when committed by
parties concerned in "a dispute concerning terms or conditions of
employment." If the qualifying words are to have any effect, they
must operate to confine the restriction upon the granting of
injunctions, and also the relaxation
Page 254 U. S. 471
of the provisions of the antitrust and other laws of the United
States, to parties standing in proximate relation to a controversy
such as is particularly described.
The majority of the Circuit Court of Appeals appear to have
entertained the view that the words "employers and employees," as
used in section 20, should be treated as referring to "the business
class or clan to which the parties litigant respectively belong,"
and that, as there had been a dispute at complainant's factory in
Michigan concerning the conditions of employment there -- a dispute
created, it is said, if it did not exist before, by the act of the
Machinists' Union in calling a strike at the factory -- § 20
operated to permit members of the Machinists' Union elsewhere, some
60,000 in number, although standing in no relation of employment
under complainant, past, present, or prospective, to make that
dispute their own and proceed to instigate sympathetic strikes,
picketing, and boycotting against employers wholly unconnected with
complainant's factory and having relations with complainant only in
the way of purchasing its product in the ordinary course of
interstate commerce, and this where there was no dispute between
such employers and their employees respecting terms or conditions
of employment.
We deem this construction altogether inadmissible. Section 20
must be given full effect according to its terms as an expression
of the purpose of Congress; but it must be borne in mind that the
section imposes an exceptional and extraordinary restriction upon
the equity powers of the courts of the United States and upon the
general operation of the antitrust laws, a restriction in the
nature of a special privilege or immunity to a particular class,
with corresponding detriment to the general public; and it would
violate rules of statutory construction having general application
and far-reaching importance to enlarge that special privilege by
resorting to a loose construction of
Page 254 U. S. 472
the section, not to speak of ignoring or slighting the
qualifying words that are found in it. Full and fair effect will be
given to every word if the exceptional privilege be confined -- as
the natural meaning of the words confines it -- to those who are
proximately and substantially concerned as parties to an actual
dispute respecting the terms or conditions of their own employment,
past, present, or prospective. The extensive construction adopted
by the majority of the court below virtually ignores the effect of
the qualifying words. Congress had in mind particular industrial
controversies, not a general class war. "Terms or conditions of
employment" are the only grounds of dispute recognized as adequate
to bring into play the exemptions, and it would do violence to the
guarded language employed were the exemption extended beyond the
parties affected in a proximate and substantial, not merely a
sentimental or sympathetic, sense by the cause of dispute.
Nor can § 20 be regarded as bringing in all members of a
labor organization as parties to a "dispute concerning terms or
conditions of employment," which proximately affects only a few of
them, with the result of conferring upon any and all members -- no
matter how many thousands there may be, nor how remote from the
actual conflict -- those exemptions which Congress in terms
conferred only upon parties to the dispute. That would enlarge by
construction the provisions of § 20, which contain no mention
of labor organizations, so as to produce an inconsistency with
§ 6, which deals specifically with the subject and must be
deemed to express the measure and limit of the immunity intended by
Congress to be incident to mere membership in such an organization.
At the same time, it would virtually repeal by implication the
prohibition of the Sherman Act, so far as labor organizations are
concerned, notwithstanding repeals by implication are not favored,
and in effect, as
Page 254 U. S. 473
was noted in
Loewe v. Lawlor, 208 U.
S. 274,
208 U. S. 303,
208 U. S. 304,
would confer upon voluntary associations of individuals formed
within the states a control over commerce among the states that is
denied to the governments of the states themselves.
The qualifying effect of the words descriptive of the nature of
the dispute and the parties concerned is further borne out by the
phrases defining the conduct that is not to be subjected to
injunction or treated as a violation of the laws of the United
States, that it to say: (a) "Terminating any relation of
employment, . . . or persuading others by peaceful means so to do;"
(b) "attending at any place where any such person or persons may
lawfully be, for the purpose of peacefully obtaining or
communicating information, or from peacefully persuading any person
to work or to abstain from working;" (c) "ceasing to patronize or
to employ any party to such dispute, or . . . recommending,
advising, or persuading others by peaceful and lawful means so to
do;" (d) "paying or giving to, or withholding from, any person
engaged in such dispute, any strike benefits; . . ." (e) "doing any
act or thing which might lawfully be done in the absence of such
dispute by any party thereto." The emphasis placed on the words
"lawful" and "lawfully," "peaceful" and "peacefully," and the
references to the dispute and the parties to it, strongly rebut a
legislative intent to confer a general immunity for conduct
violative of the antitrust laws, or otherwise unlawful. The subject
of the boycott is dealt with specifically in the "ceasing to
patronize" provision, and, by the clear force of the language
employed, the exemption is limited to pressure exerted upon a
"party to such dispute" by means of "peaceful and
lawful"
influence upon neutrals. There is nothing here to justify
defendants or the organizations they represent in using either
threats or persuasion to bring about strikes or a cessation of
work
Page 254 U. S. 474
on the part of employees of complainant's customers or
prospective customers, or of the trucking company employed by the
customers, with the object of compelling such customers to withdraw
or refrain from commercial relations with complainant, and of
thereby constraining complainant to yield the matter in dispute. To
instigate a sympathetic strike in aid of a secondary boycott cannot
be deemed "peaceful and lawful" persuasion. In essence, it is a
threat to inflict damage upon the immediate employer, between whom
and his employees no dispute exists, in order to bring him against
his will into a concerted plan to inflict damage upon another
employer who is in dispute with his employees.
The majority of the Circuit Court of Appeals, very properly
treating the case as involving a secondary boycott, based the
decision upon the view that it was the purpose of § 20 to
legalize the secondary boycott "at least in so far as it rests on
or consists of refusing to work for any one who deals with the
principal offender." Characterizing the section as "blindly drawn,"
and conceding that the meaning attributed to it was broad, the
court referred to the legislative history of the enactment as a
warrant for the construction adopted. Let us consider this.
By repeated decisions of this court, it has come to be well
established that the debates in Congress expressive of the views
and motives of individual members are not a safe guide, and hence
may not be resorted to, in ascertaining the meaning and purpose of
the lawmaking body.
Aldridge v.
Williams, 3 How. 9,
44 U. S. 24;
United States v. Union Pacific R. R. Co., 91 U. S.
72,
91 U. S. 79;
United States v. Freight Association, 166 U.
S. 290,
166 U. S. 318.
But reports of committees of House or Senate stand upon a more
solid footing, and may be regarded as an exposition of the
legislative intent in a case where otherwise the meaning of a
statute is obscure.
Binns v. United
States,
Page 254 U. S. 475
194 U. S. 486,
194 U. S. 495.
And this has been extended to include explanatory statements in the
nature of a supplemental report made by the committee member in
charge of a bill in course of passage.
Binns v. United States,
supra; Pennsylvania R. R. Co. v. International Coal Co.,
230 U. S. 184,
230 U. S.
198-199;
United States v. Coca Cola Co.,
241 U. S. 265,
241 U. S. 281;
United States v. St. Paul, M. & M. Ry. Co.,
247 U. S. 310,
247 U. S.
318.
In the case of the Clayton Act, the printed committee reports
are not explicit with respect to the meaning of the "ceasing to
patronize" clause of what is now § 20.
See House
Rept. No. 627, 63d Cong., 2d Sess., pp. 33-36; Senate Rept. No.
698, 63 Cong., 2d Sess., pp. 29-31; the latter being a reproduction
of the former. But they contain extracts from judicial opinions and
a then recent textbook sustaining the "primary boycott," and,
expressing an adverse view as to the secondary or coercive boycott,
and, on the whole, are far from manifesting a purpose to relax the
prohibition against restraints of trade in favor of the secondary
boycott.
Moreover, the report was supplemented in this regard by the
spokesman of the House committee (Mr. Webb) who had the bill in
charge when it was under consideration by the House. The question
whether the bill legalized the secondary boycott having been
raised, it was emphatically and unequivocally answered by him in
the negative. [
Footnote 2] The
subject -- he declared in substance or
Page 254 U. S. 476
effect -- was under consideration when the bill was framed, and
the section as reported was carefully prepared with the settled
purpose of excluding the secondary boycott and confining boycotting
to the parties to the dispute, allowing parties to cease to
patronize and to ask other to cease
Page 254 U. S. 477
to patronize a party to the dispute; it was the opinion of the
committee that it did not legalize the secondary boycott; it was
not their purpose to authorize such a boycott, not a member of the
committee would vote to do so; clarifying amendment was
unnecessary; the section as reported expressed the real purpose so
well that it could not be tortured into a meaning authorizing the
secondary boycott. This was the final word of the House committee
on the subject, and was uttered under such circumstances and with
such impressive emphasis that it is not going too far to say that,
except for this exposition of the meaning of the section, it would
not have been enacted in the form which it was reported. In
substantially that form, it became law; and since, in our opinion,
its proper construction is entirely in accord with its purpose as
thus declared, little need be added.
The extreme and harmful consequences of the construction adopted
in the court below are not to be ignored. The present case
furnishes an apt and convincing example. An ordinary controversy in
a manufacturing establishment, said to concern the terms or
conditions of employment there, has been held a sufficient occasion
for imposing a general embargo upon the products of the
establishment and a nationwide blockade of the channels of
interstate commerce against them, carried out by inciting
sympathetic strikes and a secondary boycott against complainant's
customers, to the great and incalculable damage of many innocent
people far remote from any connection with or control over the
original and actual dispute -- people constituting, indeed, the
general public
Page 254 U. S. 478
upon whom the cost must ultimately fall, and whose vital
interest in unobstructed commerce constituted the prime and
paramount concern of Congress in enacting the antitrust laws, of
which the section under consideration forms after all a part.
Reaching the conclusion, as we do, that complainant has a clear
right to an injunction under the Sherman Act as amended by the
Clayton Act, it becomes unnecessary to consider whether a like
result would follow under the common law or local statutes, there
being no suggestion that relief thereunder could be broader than
that to which complainant is entitled under the acts of
Congress.
There should be an injunction against defendants and the
associations represented by them, and all members of those
associations, restraining them, according to the prayer of the
bill, from interfering or attempting to interfere with the sale,
transportation, or delivery in interstate commerce of any printing
press or presses manufactured by complainant, or the
transportation, carting, installation, use, operation, exhibition,
display, or repairing of any such press or presses, or the
performance of any contract or contracts made by complainant
respecting the sale, transportation, delivery, or installation of
any such press or presses, by causing or threatening to cause loss,
damage, trouble, or inconvenience to any person, firm, or
corporation concerned in the purchase, transportation, carting,
installation, use, operation, exhibition, display, or repairing of
any such press or presses, or the performance of any such contract
or contracts, and also and especially from using any force,
threats, command, direction, or even persuasion with the object or
having the effect of causing any person or persons to decline
employment, cease employment, or not seek employment, or to refrain
from work or cease working under any person, firm, or corporation
being a purchaser or prospective purchaser of any printing press or
presses from complainant,
Page 254 U. S. 479
or engaged in hauling, carting, delivering installing, handling,
using, operating, or repairing any such press or presses for any
customer of complainant. Other threatened conduct by defendants or
the associations they represent, or the members of such
associations, in furtherance of the secondary boycott should be
included in the injunction according to the proofs.
Complainant is entitled to its costs in this court and in both
courts below.
Decree reversed, and the cause remanded to the District
Court for further proceedings in conformity with this
opinion.
[
Footnote 1]
"Sec. 6. That the labor of a human being is not a commodity or
article of commerce. Nothing contained in the antitrust laws shall
be construed to forbid the existence and operation of labor,
agricultural, or horticulatural organizations, instituted for the
purposes of mutual help, and not having capital stock or conducted
for profit, or to forbid or restrain individual members of such
organizations from lawfully carrying out the legitimate objects
thereof; nor shall such organizations, or the members thereof, be
held or construed to be illegal combinations or conspiracies in
restraint of trade, under the antitrust laws."
"Sec. 20. That no restraining order or injunction shall be
granted by any court of the United States, or a judge or the judges
thereof, in any case between an employer and employees, or between
employers and employees, or between employees, or between persons
employed and persons seeking employment, involving, or growing out
of, a dispute concerning terms or conditions of employment, unless
necessary to prevent irreparable injury to property, or to a
property right, of the party making the application, for which
injury there is no adequate remedy at law, and such property or
property right must be described with particularity in the
application which must be in writing and sworn to by the applicant
or by his agent or attorney."
"And no such restraining order or injunction shall prohibit any
person or persons, whether singly or in concert, from terminating
any relation of employment, or from ceasing to perform any work or
labor or from recommending, advising, or persuading others by
peaceful means so to do; or from attending at any place where any
such person or persons may lawfully be, for the purpose of
peacefully obtaining or communicating information, or from
peacefully persuading any person to work or to abstain from
working; or from ceasing to patronize or to employ any party to
such dispute, or from recommending, advising, or persuading others
by peaceful and lawful means so to do; or from paying or giving to,
or withholding from, any person engaged in such dispute, any strike
benefits or other moneys or things of value; or from peaceably
assembling in a lawful manner, and for lawful purposes; or from
doing any act or thing which might lawfully be done in the absence
of such dispute by any party thereto; nor shall any of the acts
specified in this paragraph be considered or held to be violations
of any law of the United States."
[
Footnote 2]
Extracts from Congressional Record, vol. 51, part 10, 63d Cong.,
2d Sess.:
(Page 9652.)
"Mr. Volstead. Would not this also legalize the secondary
boycott? . . ."
"Mr. Webb. Mr. Chairman, I do not think it legalizes a secondary
boycott."
"Mr. Volstead. Let me read the lines, if the gentleman will
permit. And no such restraining order or injunction shall prohibit
anyone --"
"from ceasing to patronize
those who [or to] employ any
party to such dispute, or from recommending, advising, or
persuading others by peaceful means so to do."
"Now, does not the word 'others' in that instance refer to other
than parties to the dispute?"
"Mr. Webb. No, because it says in line 15:"
"from ceasing to patronize or employ any parties to such
dispute."
"Mr. Volstead. . . . Can there be any doubt this is intended or
does, in fact, legalize the secondary boycott?"
"Mr. Webb. I will say frankly to my friend, when this section
was drawn, it was drawn with the careful purpose not to legalize
the secondary boycott, and we do not think it does. There may be a
difference of opinion about it, but it is the opinion of the
committee that it does not legalize the secondary boycott, and is
not intended to do so. It does legalize the primary boycott; it
does legalize the strike; it does legalize persuading others to
strike, to quit work, and the other acts mentioned in section 18
[now section 20], but we did not intend, I will say frankly, to
legalize the secondary boycott."
(Page 9653.)
"Mr. Webb. I will say this section was drawn two years or more
ago, and was drawn carefully, and those who drew this section drew
it with the idea of excluding the secondary boycott. It passed the
House, I think, by about 243 to 16, and the question of the
secondary boycott was not raised then, because we understood so
clearly it did not refer to or authorize the secondary
boycott."
(Page 9658.)
"Mr. Webb. Mr. Chairman, I should vote for the amendment offered
by the gentleman from Minnesota [Mr. Volstead] if I were not
perfectly satisfied that it is taken care of in this section. The
language the gentleman reads does not authorize the secondary
boycott, and he could not torture it into any such meaning. While
it does authorize persons to cease to patronize the party to the
dispute and to recommend to others to cease to patronize that same
party to the dispute, that is not a secondary boycott, and you
cannot possibly make it mean a secondary boycott. Therefore, this
section does not authorize the secondary boycott."
"I say again -- and I speak for, I believe, practically every
member of the Judiciary committee -- that if this section did
legalize the secondary boycott, there would not be a man vote for
it. It is not the purpose of the committee to authorize it, and I
do not think any person in this House wants to do it. We confine
the boycotting to the parties to the dispute, allowing parties to
cease to patronize that party and to ask others to cease to
patronize the party to the dispute."
MR. JUSTICE BRANDEIS, dissenting, with whom MR. JUSTICE HOLMES
and MR. JUSTICE CLARKE, concur.
The Duplex Company, a manufacturer of newspaper printing
presses, seeks to enjoin officials of the machinists' and
affiliated unions from interfering with its business by inducing
their members not to work for plaintiff or its customers in
connection with the setting up of presses made by it. Unlike
Hitchman Coal & Coke Co. v. Mitchell, 245 U.
S. 229, there is here no charge that defendants are
inducing employees to break their contracts. Nor is it now urged
that defendants threaten acts of violence. But plaintiff insists
that the acts complained of violate both the common law of New York
and the Sherman Act, and that, accordingly, it is entitled to
relief by injunction under the state law and under § 16 of the
Clayton Act, October 15, 1914, c. 323, 38 Stat. 730, 737.
The defendants admit interference with plaintiff's business, but
justify on the following ground: there are in the United States
only four manufacturers of such presses, and they are in active
competition. Between 1909 and 1913, the machinists' union induced
three of
Page 254 U. S. 480
them to recognize and deal with the union, to grant to
eight-hour day, to establish a minimum wage scale, and to comply
with other union requirements. The fourth, the Duplex Company,
refused to recognize the union; insisted upon conducting its
factory on the open shop principle; refused to introduce the
eight-hour day and operated, for the most part, ten hours a day;
refused to establish a minimum wage scale; and disregarded other
union standards. Thereupon, two of the three manufacturers who had
assented to union conditions notified the union that they should be
obliged to terminate their agreements with it unless their
competitor, the Duplex Company, also entered into the agreement
with the union, which, in giving more favorable terms to labor,
imposed correspondingly greater burdens upon the employer. Because
the Duplex Company refused to enter into such an agreement, and in
order to induce it to do so, the machinists' union declared a
strike at its factory, and, in aid of that strike, instructed its
members and the members of affiliated unions not to work on the
installation of presses which plaintiff had delivered in New York.
Defendants insisted that, by the common law of New York, where the
acts complained of were done and where this suit was brought, and
also by § 20 of the Clayton Act, 38 Stat. 730, 738, the facts
constitute a justification for this interference with plaintiff's
business.
First. As to the rights at common law: defendants'
justification is that of self-interest. They have supported the
strike at the employer's factory by a strike elsewhere against its
product. They have injured the plaintiff not maliciously, but in
self-defense. They contend that the Duplex Company's refusal to
deal with the machinists' union and to observe its standards
threatened the interest not only of such union members as were its
factory employees, but even more of all members of the several
affiliated unions employed by plaintiff's competitors, and
Page 254 U. S. 481
by others whose more advanced standards the plaintiff was, in
reality, attacking; and that none of the defendants and no person
whom they are endeavoring to induce to refrain from working in
connection with the setting up of presses made by plaintiff is an
outsider, an interloper. In other words, that the contest between
the company and the machinists' union involves vitally the interest
of every person whose cooperation is sought. May not all with a
common interest join in refusing to expend their labor upon
articles whose very production constitutes an attack upon their
standard of living and the institution which they are convinced
supports it? Applying common law principles, the answer should, in
my opinion, be yes if, as a matter of fact, those who so cooperate
have a common interest.
The change in the law by which strikes once illegal and even
criminal are now recognized as lawful was effected in America
largely without the intervention of legislation. This reversal of a
common law rule was not due to the rejection by the courts of one
principle and the adoption in its stead of another, but to a better
realization of the facts of industrial life. It is conceded that,
although the strike of the workmen in plaintiff's factory injured
its business, the strike was not an actionable wrong, because the
obvious self-interest of the strikers constituted a justification.
See Pickett v. Walsh, 192 Massachusetts 572. Formerly,
courts held that self-interests could not be so served. Commons,
History of Labor in the United States, vol. 2, c. 5. But even after
strikes to raise wages or reduce hours were held to be legal
because of the self-interest, some courts held that there was not
sufficient causal relationship between a strike to unionize a shop
and the self-interest of the strikers to justify injuries
inflicted.
Plant v. Woods, 176 Massachusetts 492;
Lucke v. Clothing Cutters' Assembly, 77 Maryland 396;
Erdman v. Mitchell, 207 Pa.St. 79.
Page 254 U. S. 482
But other courts, repeating the same legal formula, found that
there was justification, because they viewed the facts differently.
National Protective Association v. Cumming, 170 N.Y. 315;
Kemp v. Division No. 241, 255 Illinois 213;
Roddy v.
United Mine Workers, 41 Oklahoma 621. When centralization in
the control of business brought its corresponding centralization in
the organization of workingmen, new facts had to be appraised. A
single employer might, as in this case, threaten the standing of
the whole organization and the standards of all its members; and
when he did so, the union, in order to protect itself, would
naturally refuse to work on his materials, wherever found. When
such a situation was first presented to the courts, judges
concluded that the intervention of the purchaser of the materials
established an insulation through which the direct relationship of
the employer and the workingmen did not penetrate, and the strike
against the material was considered a strike against the purchaser
by unaffected third parties.
Burnham v. Dowd, 217
Massachusetts 351;
Purvis v. United Brotherhood, 214
Pa.St. 348;
Booth v. Burgess, 72 N.J.Eq. 181. But other
courts, with better appreciation of the facts of industry,
recognized the unity of interest throughout the union, and that, in
refusing to work on materials which threatened it, the union was
only refusing to aid in destroying itself.
Bossert v.
Dhuy, 221 N.Y. 342;
Cohn & Roth Electric Co. v.
Bricklayers Union, 92 Connecticut 161;
Gill Engraving Co.
v. Doerr, 214 Fed.Rep. 111;
State v. Van Pelt, 136
N.C. 633;
Grant Construction Co. v. St. Paul Building Trades
Council, 136 Minnesota 167;
Pierce v. Stablemen's
Union, 156 California 70, 76.
So, in the case at bar, deciding a question of fact upon the
evidence introduced and matters of common knowledge, I should say,
as the two lower courts apparently have said, that the defendants
and those from whom they
Page 254 U. S. 483
sought cooperation have a common interest which the plaintiff
threatened. This view is in harmony with the views of the Court of
Appeals of New York. For, in New York, although boycotts like that
in
Loewe v. Lawlor, 208 U. S. 274, are
illegal because they are conducted not against a product, but
against those who deal in it and are carried out by a combination
of persons not united by common interest, but only by sympathy
(
Auburn Draying Co. v. Wardwell, 227 N.Y. 1), it is lawful
for all members of a union by whomever employed to refuse to handle
materials whose production weakens the union.
Bossert v. Dhuy,
supra; P. Reardon, Inc., v. Caton, 189 App.Div. 501;
compare Paine Lumber Co. v. Neal, 244 U.
S. 459,
244 U. S.
471.
"The voluntary adoption of a rule not to work on nonunion-made
material and its enforcement differs only in degree from such
voluntary rule and its enforcement in a particular case. Such a
determination also differs entirely from a general boycott of a
particular dealer or manufacturer with a malicious intent and
purpose to destroy the goodwill or business of such dealer or
manufacturer."
Bossert v. Dhuy, supra, p. 355. In my opinion,
therefore, plaintiff had no cause of action by the common law of
New York.
Second. As to the antitrust laws of the United States,
Section 20 of the Clayton Act declares:
"Nor shall any of the acts specified in this paragraph be
considered or held to be violations of any law of the United
States."
The acts which are thus referred to are whether performed singly
or in concert:
"Terminating any relation of employment, or . . . ceasing to
perform any work or labor, or . . . recommending, advising or
persuading others by peaceful means so to do, or . . . attending at
any place where such person or persons may lawfully be, for the
purpose of obtaining or communicating information, or . . .
peacefully persuading
Page 254 U. S. 484
any person to work or to abstain from working, or . . . ceasing
to patronize or employ any party to such dispute, . . . or . . .
recommending, advising, or persuading others by peaceful and lawful
means so to do, or . . . paying or giving to, or withholding from,
any person engaged in such dispute, any strike benefits or other
moneys or things of value, or peacefully assembling in a lawful
manner and for lawful purposes, or . . . doing any act or thing
which might lawfully be done in the absence of such dispute by any
party thereto."
This statute was the fruit of unceasing agitation, which
extended over more than 20 years and was designed to equalize
before the law the position of workingmen and employer as
industrial combatants. Aside from the use of the injunction, the
chief source of dissatisfaction with the existing law lay in the
doctrine of malicious combination, [
Footnote 2/1] and, in many parts of the country, in the
judicial declarations of the illegality at common law of picketing
and persuading others to leave work. The grounds for objection to
the latter are obvious. The objection to the doctrine of malicious
combinations requires some explanation.
Page 254 U. S. 485
By virtue of that doctrine, damage resulting from conduct such
as striking or withholding patronage or persuading others to do
either, which without more might be
damnum absque injuria
because the result of trade competition, became actionable when
done for a purpose which a judge considered socially or
economically harmful and therefore branded as malicious and
unlawful. [
Footnote 2/2] It was
objected that, due largely to environment, the social and economic
ideas of judges, which thus became translated into law, were
prejudicial to a position of equality between workingman and
employer; that, due to this dependence upon the individual opinion
of judges, great confusion existed as to what purposes were lawful
and what unlawful; [
Footnote 2/3]
and that, in any event, Congress, not the judges, was the body
which should declare what public policy in regard to the industrial
struggle demands.
By 1914, the ideas of the advocates of legislation had fairly
crystalized upon the manner in which the inequality and uncertainty
of the law should be removed. It was to
Page 254 U. S. 486
be done by expressly legalizing certain acts regardless of the
effects produced by them upon other persons. As to them, Congress
was to extract the element of
injuria from the damages
thereby inflicted, instead of leaving judges to determine according
to their own economic and social views whether the damage inflicted
on an employer in an industrial struggle was
damnum absque
injuria, because an incident of trade competition, or a legal
injury, because in their opinion, economically and socially
objectionable. This idea was presented to the committees which
reported the Clayton Act. [
Footnote
2/4] The resulting law set out certain acts which had
previously been held unlawful, whenever courts had disapproved of
the ends for which they were performed; it then declared that, when
these acts were committed in the course of an industrial dispute,
they should not be held to violate any law of the United States. In
other words, the Clayton Act substituted the opinion of Congress as
to the propriety of the purpose for that of differing judges, and
thereby it declared that the relations between employers of labor
and workingmen were competitive relations, that organized
competition was not harmful, and that it justified injuries
necessarily inflicted in its course. [
Footnote 2/5] Both the
Page 254 U. S. 487
majority and the minority report of the House committee indicate
that such was its purpose. [
Footnote
2/6] If, therefore, the act applies to the case at bar, the
acts here complained of cannot "be considered or held to be
violations of any law of the United States," and hence do not
violate the Sherman Act.
The Duplex Company contends that § 20 of the Clayton Act
does not apply to the case at bar, because it is restricted to
cases
"between an employer and employees, or between employers and
employees, or between employees or between persons employed and
persons seeking employment, involving, or growing out of, a dispute
concerning terms or conditions of employment,"
whereas the case at bar arises between an employer in Michigan
and workingmen in New York not in its employ, and does not involve
their conditions of employment. But Congress did not restrict the
provision to employers and workingmen
in their employ.
Page 254 U. S. 488
By including "employers and employees" and "persons employed and
persons seeking employment," it showed that it was not aiming
merely at a legal relationship between a specific employer and his
employees. Furthermore, the plaintiff's contention proves too much.
If the words are to receive a strict technical construction, the
statute will have no application to disputes between employers of
labor and workingmen, since the very acts to which it applies sever
the continuity of the legal relationship.
Iron Moulders' Union
v. Allis-Chalmers Co., 166 Fed.Rep. 45, 52-53;
Louisville,
Evansville & St. Louis R.R. Co. v. Wilson, 138 U.
S. 501,
138 U. S. 505;
cf. Rex. v. Neilson, 44 N.S. 488, 491. The further
contention that this case is not one arising out of a dispute
concerning the conditions of work of one of the parties is, in my
opinion, founded upon a misconception of the facts.
Because I have come to the conclusion that both the common law
of a state and a statute of the United States declare the right of
industrial combatants to push their struggle to the limits of the
justification of self-interest, I do not wish to be understood as
attaching any constitutional or moral sanction to that right. All
rights are derived from the purposes of the society in which they
exist; above all rights rises duty to the community. The conditions
developed in industry may be such that those engaged in it cannot
continue their struggle without danger to the community. But it is
not for judges to determine whether such conditions exist, nor is
it their function to set the limits of permissible contest and to
declare the duties which the new situation demands. This is the
function of the legislature, which, while limiting individual and
group rights of aggression and defense, may substitute processes of
justice for the more primitive method of trial by combat.
[
Footnote 2/1]
See "Malice and Unlawful Interference," Ernest Freund,
11 Harv.L.Rev. 449, 461; "Rights of Traders had Laborers," Edw. F.
McClennen, 16 Harv.L.Rev. 237, 244; "Crucial Issues in Labor
Litigation," Jeremiah Smith, 20 Harv.L.Rev. 429, 451; Principles of
Labor Legislation, Commons and Andrews, pp. 95-116; Hoxie, Trade
Unionism in the United States, p. 231; Groat, Attitude of American
Courts towards Labor Cases, pp. 76-77; 221; 246; J. W. Bryan, The
Development of the English Law of Conspiracy, p. 147
et
seq.
Report of the Industrial Commission, 1901, vol. XVII, p. cxiv,
p. 515, 556; Report of Royal Commission on Trade Disputes and Trade
Combinations, 1906, p. 12; Report of Commission on Industrial
Relations, 1915, pp. 135, 377.
For attempts to reach this doctrine by legislation
see
also 52d Congress, H.R. 6640, § 1; 56th Congress, H.R.
11667, § 7; 57th Congress, S. 649, § 7.
[
Footnote 2/2]
See James Wallace Bryan, The Development of the English
Law of Conspiracy:
"We find little difficulty in attributing the illegality of
combinations to strike or otherwise to advance the interests of
labor not to the material loss inflicted upon the employer
concerned, but to the harm supposed to result from their activities
to the public at large. And since the judge or jury believe the
conduct socially bad, and since it is admittedly done
intentionally, not inadvertently, they declare that the actors are
animated by malice which negatives the justification of 'fair
competition,'
e.g., Lord Bowen in
Mogul S. S. Co. v.
MacGregor, Gow & Co. 1892 A.C. 25, 'intentionally to do
that which is calculated . . . to damage . . . and does damage
another in his property or trade is actionable if done without just
cause or excuse, and . . . is what the law calls a malicious
injury.'"
[
Footnote 2/3]
See A. V. Dicey, "The Combination Laws as Illustrating
the Relation Between Law and Opinion in England During the
Nineteenth Century," 17 Harv.L.Rev. 511, 532: "The very confusion
of the present state of the law corresponds with and illustrates a
confused state of opinion."
[
Footnote 2/4]
It was said that this doctrine
"completely unsettle[d] the law . . . and set up the chancellor
in the midst of the labor organization at the inception of a strike
as an arbiter of their conduct, as well as a controller or their
fates."
62d Congress, 2d Sess. Hearings Before a Subcommittee of the
Senate Committee on the judiciary on H.R. 23635, p. 429.
Again, it was pointed out that the incorporation of this idea in
the Sherman Law had "done violence to the right to strike -- to
cease work collectively . . . and to the right to withhold
patronage and to agree to withhold patronage." Brief by Samuel
Gompers, Hearings before the House Committee on the Judiciary on
Trust Legislation, 63d Congress, 2d Sess., vol. 2, p. 1808.
[
Footnote 2/5]
Compare the following:
"There are apparently, only two lines of action possible: first,
to restrict the rights and powers of employers to correspond in
substance to the powers and rights now allowed to trade unions, and
second, to remove all restriction which now prevent the freedom of
action of both parties to industrial disputes, retaining only the
ordinary civil and criminal restraints for the preservation of
life, property and the public peace. The first method has been
tried and failed absolutely. . . . The only method therefore seems
to be the removal of all restrictions upon both parties, thus
legalizing the strike, the lockout, the boycott, the blacklist, the
bringing in or strike-breakers, and peaceful picketing."
Report of the Committee on Industrial Relations, 1915, p.
136.
[
Footnote 2/6]
The majority declared that the section sets out "specific acts
which the best opinion of the courts holds to be within the right
of parties involved upon one side or the other of a trade dispute,"
which it has been necessary to affirm because of "the divergent
views which the courts have expressed on the subject and the
difference between courts in the application of recognized rules."
The minority insisted that the section prescribes
"a set rule forbidding under any circumstances the enjoining of
certain acts which may or may not be actuated by a malicious motive
or for the purpose of working an unlawful injury, etc."
63d Congress, 2nd sess., House Report 627, p. 30;
id.,
Part 2, Appendix A, p. 20.