COURTS AND N.R.A.

Evening Post, Volume CXIX, Issue 51, 1 March 1935, Page 9

COURTS AND N.R.A.

TWO ADVERSE RULINGS

COMPANY UNION ADEQUATE

NO CODE FOE COAL

United Tress Association—By Electric TelC'

Graph—Copyright.

WASHINGTON, February 27.

The Federal Government lost a major battle under the Recovery Act with a ruling by Judge Neilds at Wilmington, Pennsylvania, that the provision for labour to be represented by a spokesman of its own choosing is unconstitutional and vcid 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 employees through a 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.

The Government suffered another legal reverse when the Federal Court at Louisville (Kentucky) granted a temporary injunction on behalf of 39 bituminous coal operators restraining the Administratipn from enforcing the code on that industry.

It declared that citizens had a right to "conduct their business without unconstitutional 'interference or regulation by Government authority," adding that such interference ' "constitutes injury to the property rights of citizens."