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Story
December 7, 1939
The Potters Herald
East Liverpool, Columbiana County, Ohio
What is this article about?
Joseph A. Padway, AFL counsel, criticizes Assistant Attorney General Thurman Arnold's use of the Sherman Anti-Trust Law against labor unions in a 1939 speech, asserting that the 1914 Clayton Act exempts unions from such prosecutions and protects workers' rights to maintain living standards.
Merged-components note: Continuation of story across pages.
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Justice and Provisions of the Clayton Act Exempt Labor Unions
SAYS AFL COUNCIL
Laws Designed to Curb Anti-Social Features of Big Business
Recent suits brought by the Sherman Anti-Trust Division of the Department of Justice, under the direction of Assistant Attorney General Thurman Arnold, charging certain American Federation of Labor trade unions and their officials with violating the Sherman Anti-Trust law, recall the strong criticism of Mr. Arnold's activities made by Joseph A. Padway, counsel for the American Federation of Labor, in an address before the 1939 A. F. of L. convention at Cincinnati, Ohio.
After reviewing the recent reactionary legislation passed by a number of State legislatures restricting the ordinary and long-recognized functions of trade unions, with special reference to strikes, picketing and the use of injunctions against unions and their representatives, Mr. Padway took up the procedure against organized labor developed by the Department of Justice Anti-Trust Division under the sponsorship of Mr. Arnold.
"There is one other thing, while I am discussing these legal questions, that I would like to bring to your attention, and that is a certain activity on the part of a certain division of the Department of Justice," Mr. Padway said. "When I talk about this subject I want to make it clear that I am not criticizing the National Administration. It is not my right to do so and I am not doing so. Sherman Anti-Trust Law Was Enacted to Curb Trusts
"I want to make it clear, too, that I am not criticizing the Attorney General of the United States. If anything, I am convinced that his sympathies are not with what is going on in the particular department I am going to talk to you about. The department I have in mind is the Anti-Trust Division, headed by Mr. Thurman Arnold.
(Continued on Page Two)
Arnold's Scheme
(Continued From Page One)
"Most of you have heard at some time or other about the Sherman Anti-Trust Law. Most of you know that this law was passed to prevent large combinations of capital and trusts from imposing their will, by the fixing of prices, upon the community and thus taking from the community things that they ought not take from them. That is the basis of the Sherman Anti-Trust Law. It was passed in 1890.
"When the law was passed it was said that it would not apply to labor organizations or labor unions, that labor unions would be exempt from the provisions of the Anti-Trust Law.
Clayton Act Exempted Labor From Anti-Trust Law
"That is what we believed, and then there came down a series of decisions from courts that said labor was not exempt from the Sherman Anti-Trust Law. Then we had to seek an amendment, and we secured that amendment in the year 1914, through the passage of the Clayton Act.
"What is the Clayton Act? The Clayton Act, besides attempting to exempt labor unions from the Anti-Trust Law, was what Samuel Gompers declared to be the Magna Charta of labor. It says: "The labor of a human being is not a commodity or an article of commerce.' Get the significance of that language: 'The labor of a human being is not a commodity or an article of commerce.' We then thought labor would be exempted from the Anti-Trust Law.
Arnold Uses Anti-Trust Law To Disintegrate Labor Unions
"Within the last year or so there has been undue activity in the Anti-Trust Division of the Department of Justice, and labor organizations as such have been indicted—not only the officials, but the labor unions have been indicted as such for the purpose of invading their treasuries by fines and thus causing the disintegration of many of these organizations.
"It has come to such a pass that a business agent of a labor union is almost afraid to sit down with an association of employers and discuss wages, hours and working conditions, for fear that if the employer later did something that was in violation of the Anti-Trust Law, the labor officials and their unions would be brought under the same charge of conspiracy to violate the Anti-Trust Law.
"I believe that this particular department of the Department of Justice is on the wrong path. I don't believe it has the approval of the Attorney General. I know it was started before he became Attorney General.
Building Trades Unions Are Arnold's Main Target
"There is going on very quietly in several cities throughout the country, perhaps in the city of Cincinnati, an investigation into certain labor activities in the building trades, and, if we are informed correctly, it is intended to dramatize the situation by bringing out indictments against several of the companies and several of the labor unions and their officials in these cities at one and the same time.
In other words, if we are informed correctly, it is the intention of the Anti-Trust Division of the Department of Justice to bring forth a series of indictments at one particular time, and thus electrify the country and have the people believe that labor has committed great wrongs.
Organized Labor Seeks Protection of Workers' Living Standards
"What has labor done to invite the Department of Justice to attempt any such procedure? All it has done is to endeavor to 'maintain the prices of labor,' so that the living standards of the workers will not be lowered. We believe, and we had a right to believe under the old Act, the Clayton Act, that that was the right of labor.
"As a lawyer, I believe that labor could not be charged with violation of the Anti-Trust Act or with price fixing if they combined for the purpose of maintaining and increasing the 'wages and hours and the living standards of the workers. That is the reason for labor combining. That is the reason for labor unions and for their existence.
Now Comes the Anti-Union Crusader!
"And now has come this crusader who has sought and probably procured more indictments against labor unions than he has against capital or industry or other persons who are charged with violating the Anti-Trust Law. He may be a very able gentleman and very well intended. Mr. Arnold may be ever so clever. He is a college professor, and I have come to the conclusion that labor ought to say, 'God deliver us from college professors and from army generals in administrative positions.'
SAYS AFL COUNCIL
Laws Designed to Curb Anti-Social Features of Big Business
Recent suits brought by the Sherman Anti-Trust Division of the Department of Justice, under the direction of Assistant Attorney General Thurman Arnold, charging certain American Federation of Labor trade unions and their officials with violating the Sherman Anti-Trust law, recall the strong criticism of Mr. Arnold's activities made by Joseph A. Padway, counsel for the American Federation of Labor, in an address before the 1939 A. F. of L. convention at Cincinnati, Ohio.
After reviewing the recent reactionary legislation passed by a number of State legislatures restricting the ordinary and long-recognized functions of trade unions, with special reference to strikes, picketing and the use of injunctions against unions and their representatives, Mr. Padway took up the procedure against organized labor developed by the Department of Justice Anti-Trust Division under the sponsorship of Mr. Arnold.
"There is one other thing, while I am discussing these legal questions, that I would like to bring to your attention, and that is a certain activity on the part of a certain division of the Department of Justice," Mr. Padway said. "When I talk about this subject I want to make it clear that I am not criticizing the National Administration. It is not my right to do so and I am not doing so. Sherman Anti-Trust Law Was Enacted to Curb Trusts
"I want to make it clear, too, that I am not criticizing the Attorney General of the United States. If anything, I am convinced that his sympathies are not with what is going on in the particular department I am going to talk to you about. The department I have in mind is the Anti-Trust Division, headed by Mr. Thurman Arnold.
(Continued on Page Two)
Arnold's Scheme
(Continued From Page One)
"Most of you have heard at some time or other about the Sherman Anti-Trust Law. Most of you know that this law was passed to prevent large combinations of capital and trusts from imposing their will, by the fixing of prices, upon the community and thus taking from the community things that they ought not take from them. That is the basis of the Sherman Anti-Trust Law. It was passed in 1890.
"When the law was passed it was said that it would not apply to labor organizations or labor unions, that labor unions would be exempt from the provisions of the Anti-Trust Law.
Clayton Act Exempted Labor From Anti-Trust Law
"That is what we believed, and then there came down a series of decisions from courts that said labor was not exempt from the Sherman Anti-Trust Law. Then we had to seek an amendment, and we secured that amendment in the year 1914, through the passage of the Clayton Act.
"What is the Clayton Act? The Clayton Act, besides attempting to exempt labor unions from the Anti-Trust Law, was what Samuel Gompers declared to be the Magna Charta of labor. It says: "The labor of a human being is not a commodity or an article of commerce.' Get the significance of that language: 'The labor of a human being is not a commodity or an article of commerce.' We then thought labor would be exempted from the Anti-Trust Law.
Arnold Uses Anti-Trust Law To Disintegrate Labor Unions
"Within the last year or so there has been undue activity in the Anti-Trust Division of the Department of Justice, and labor organizations as such have been indicted—not only the officials, but the labor unions have been indicted as such for the purpose of invading their treasuries by fines and thus causing the disintegration of many of these organizations.
"It has come to such a pass that a business agent of a labor union is almost afraid to sit down with an association of employers and discuss wages, hours and working conditions, for fear that if the employer later did something that was in violation of the Anti-Trust Law, the labor officials and their unions would be brought under the same charge of conspiracy to violate the Anti-Trust Law.
"I believe that this particular department of the Department of Justice is on the wrong path. I don't believe it has the approval of the Attorney General. I know it was started before he became Attorney General.
Building Trades Unions Are Arnold's Main Target
"There is going on very quietly in several cities throughout the country, perhaps in the city of Cincinnati, an investigation into certain labor activities in the building trades, and, if we are informed correctly, it is intended to dramatize the situation by bringing out indictments against several of the companies and several of the labor unions and their officials in these cities at one and the same time.
In other words, if we are informed correctly, it is the intention of the Anti-Trust Division of the Department of Justice to bring forth a series of indictments at one particular time, and thus electrify the country and have the people believe that labor has committed great wrongs.
Organized Labor Seeks Protection of Workers' Living Standards
"What has labor done to invite the Department of Justice to attempt any such procedure? All it has done is to endeavor to 'maintain the prices of labor,' so that the living standards of the workers will not be lowered. We believe, and we had a right to believe under the old Act, the Clayton Act, that that was the right of labor.
"As a lawyer, I believe that labor could not be charged with violation of the Anti-Trust Act or with price fixing if they combined for the purpose of maintaining and increasing the 'wages and hours and the living standards of the workers. That is the reason for labor combining. That is the reason for labor unions and for their existence.
Now Comes the Anti-Union Crusader!
"And now has come this crusader who has sought and probably procured more indictments against labor unions than he has against capital or industry or other persons who are charged with violating the Anti-Trust Law. He may be a very able gentleman and very well intended. Mr. Arnold may be ever so clever. He is a college professor, and I have come to the conclusion that labor ought to say, 'God deliver us from college professors and from army generals in administrative positions.'
What sub-type of article is it?
Historical Event
Biography
What themes does it cover?
Justice
Crime Punishment
What keywords are associated?
Clayton Act
Sherman Anti Trust Law
Labor Unions
Thurman Arnold
Afl Convention
Indictments
Workers Rights
What entities or persons were involved?
Joseph A. Padway
Thurman Arnold
Samuel Gompers
Where did it happen?
Cincinnati, Ohio
Story Details
Key Persons
Joseph A. Padway
Thurman Arnold
Samuel Gompers
Location
Cincinnati, Ohio
Event Date
1939
Story Details
Joseph A. Padway delivers a speech at the 1939 AFL convention criticizing Thurman Arnold's Anti-Trust Division for prosecuting labor unions under the Sherman Act, despite the Clayton Act's exemptions, arguing it aims to disintegrate unions and chill collective bargaining.