RECOVERY ACT IN AMERICA

Press, Volume LXXI, Issue 21411, 1 March 1935, Page 13

RECOVERY ACT IN AMERICA

# Provision Held To Be Void REPRESENTATION OF LABOUR (UNITED TRES3 ASSOCIATION—BY EI-ECTEIC TELKGRAI'H—COPYRIGHT.) (Received February 28, 11.30 p.m.) WASHINGTON, February 27.

The Federal Government lost a major battle under the Recovery Act with the ruling of Judge Nields, at Wilmington that the provision for labour to be represented by a spokesman of their own choosing is unconstitutional and void, as applied to the Weirton Steel Company and its business. ' The decision denied the Government's plea for an injunction to restrain the company from dealing collectively with its employees through the so-called company union, and held that the union was adequate under the act. The company contended that its relationship with its employees did not constitute interstate commerce, and that Congress was empowered to regulate business only of an interstate nature.

There was a serious labour crisis in America in March last year when there were many strike threats. It was claimed by the American Federation of Labour that the workers had not had free opportunity to choose between their organic Hon and the so-called company unions. The Weirton Sleei company refused to accept the provision for a spokesman chosen by the workers The Federal Government brought a suit in equity against the company, alleging violation of the National Recovery code. ANOTHER LEGAL REVERSAL INJUNCTION FOR COAL WORKERS WASHINGTON, February 27. The Government suffered another legal reversal when the Federal Court at Louisville, Kentucky, granted a temporary injunction on behalf of 39 bituminous coal operators, restraining the administrator from enforcing the code on that industry. It declared that citizens had a right to "conduct their business without unconstitutional interference or regulation by a Government authority," adding that such interference "constitutes injury to the property and rights of a citizen."