A BB 5 91 Injunctions, labor GRESSIONAL4lEGULAi J OF INJUNCTION'S HEARINGS BEFORE THE I 9 COMMITTEE ON^LABOR .jHOUSE OF REPRESENTATIVES 324 SIXTY-SECOND/ CONGRESS SECOND SESSION PENDING ANTI-INJUNCTION BILLS AUGUST 12, 1912 LIBRARY PUBLIC AFFAIRS SERVICE NOV13 1969 UNIVERSITY OF CALIFORNIA LOS ANGELES WASHINGTON GOVERNMENT PRINTING OFFICE 1912 COMMITTEE ON LABOR. HOUSE OF REPRESENTATIVES, WILLIAM B. WILSON, Pennsylvania, Chairman. WALTER L. HENSLEY, Missouri. FINLY H. GRAY, Indiana. JAMES P. MAKER, New York. JOHN J. GARDNER, New Jersey. ARTHUR B. ROUSE, Kentucky. EDWARD B. VREELAND. New York. DAVID J. LEWIS, Maryland. J. M. C. SMITH, Michigan. WILLIAM S. HOWARD, Georgia. WILLIS C. HAWLEY, Oregon. FRANK BUCHANAN, Illinois. PENDING BILLS FOR REGULATING INJUNCTIONS. COMMITTEE ON LABOR, HOUSE OF REPRESENTATIVES, Monday, August 12, 1912. The committee met at 11 o'clock a. m., Hon. William B. Wilson (chairman) presiding. STATEMENT OF THOMAS CARL SPELLING, ATTORNEY AT LAW, NEW YORK, N. Y. Mr. SPELLING. Mr. Chairman and gentlemen of the committee, a bill known as the Clayton injunction bill passed the House on the 14th of May last by a vote of 243 to 31, no Democrat voting against it and many Republicans for it. It went to the Senate, and reached the Judiciary Committee on the 15th of May, three months ago lacking three days. A subcommittee of the Senate Judiciary Com- mittee was appointed. Hearings began before that subcommittee within a few days after that date, and they continued from day to day, hour by hour, down to three weeks ago. During that time there have been six arguments made of from one and a half hours up. Some of the arguments were an hour and a half in length, some of them were two hours, and some of them ran on from day to day all of them by counsel representing associations, railroad companies, and other corporations in opposition to the bill. At length, three weeks ago, it was announced that the proponents and supporters of that bill (H. R. 23635) would be heard. They appeared, led by the officers and representatives of the American Federation of Labor, with counsel. That was on a Thursday; but the subcommittee adjourned until the next Tuesday, without giving anyone a chance to be heard. The proponents of the measure appeared there on the day and at the hour to which adjournment was taken, as they had done before, and were then ready to proceed. At 10 minutes to 11 o'clock the subcommittee took an abrupt adjournment before a word could be spoken for the bill. As far as any record was made, there was no time set for any further opportunity to be heard. The session now draws to a close and I greatly fear the utter failure of the bill hi the Senate, and of any other bills having the same pur- pose in view. I say this, notwithstanding the fact that notice has been given of a hearing next Tuesday (to-morrow) at 12 o'clock, at which Mr. Gompers and others are expected to be heard. The counsel in opposition to that bill fully understand the far- reaching importance of it; they see that great irrepressible, far- reaching, economic, and social problems underlie it. In their argu- ments they have brought forth, almost from the first, the conflict 4 PENDING BILLS FOR REGULATING INJUNCTIONS. between capital and labor and exploited it to the uttermost. Fully do these trained and well-retained lawyers realize that there is an enormous financial advantage in the prevailing capitalistic view taken by many of the Federal judges on the question of injunctions, relief from which forms the subject matter of the bill. In nothing is the importance of this question so clearly shown as in the personnel and character of the forces arrayed for and against the bill the one class against the other. The labor forces have been accused in the argu- ment, time and again, of trying to unsettle the law; of trying to give an unfair advantage to a class by overturning established laws and paralyzing the powers of the courts; whereas, in truth and fact, the labor representatives are only asking Congress to protect them from judicial actions in excess of proper legal restraints and to put up proper legislative safeguards against aggressive wrongs committed in the interest of a class. Although the bill contains no definition of property or property right, well do the learned counsel in opposition realize that most of the abuses of which labor complains arise from a disregard of the limitation of equitable jurisdiction founded upon the fundamental distinction between the rights of property and personal rights, and that sooner or later that great issue must be met and settled by legislation. Therefore, without reference to any provision in the bill, that question is made the starting and ending of each of their argu- ments, as if they were trying to erect a bulwark against the future and obtain a pre judgment in their favor from Senators and Members of the House. But I have heretofore encountered such so-called arguments as they have here again advanced, and do not regret that they have again thrown upon me the light burden of refutation. Now, gentlemen, we seldom see the extent of an evil until its final development. It has been so in many instances that I might use for illustration. The tendency or the practice in the courts of assuming that the right to do business or the right to continue business regard- less of the consequences to others is entitled to the exercise of juris- diction by injunction, as a protection or safeguard of the men who happen to be business men, as contradistinguished from men in other classes, is going to lead to the unsettling of all social conditions, and, if it is not checked or stayed in some way, will lead to the overthrow of our institutions. In that usurpation consists the vice of personal government, and each judge, if allowed to go on and carry that prac- tice to its logical result, would become a sovereign with absolute powers in his own domain. Now, if the right to do business or continue in business is to be thus protected, notwithstanding the fact that the business man has no such protection against the ordinary obstacles to and vicissitudes of business, and the rule protecting it in labor disputes is given its logical operation, then the remedy by injunction to protect it must be coextensive with all interferences that may affect it. The courts concede now the right to strike for any cause, although some of them have within the last three or four years been trying to inject into it an element of motive and have undertaken to say that they must strike with a good motive. But what is called peaceful picketing and persuasion are also conceded to be legitimate. And yet, if this new idea, that the right to do business can be protected bymjunction against violence, as in the case of the nonunionist seeking the job of PENDING BILLS FOE REGULATING INJUNCTIONS. 5 the unionist, on the ground that such an act is an interference with the right to do business, is sound, then why not enjoin the strike, which is a direct, as well as a more serious, interference with business? So, you see, we can comprehend the full effect of not checking this abuse. I say "we," and in using that word I include all who are really interested in the welfare of the people, the labor class con- stituting a majority. I mean we who are seriously concerned for the perpetuity of our institutions and are able to see the vital im- portance of pressing forward in this fight, and pressing forward with- out compromise, working earnestly for the early passage by the Senate of the bill which I have mentioned as having already passed the House. If in the course of what I say here I appear to go outside the real issue, this is my answer, that by showing hereafter that the courts possess no jurisdiction to enjoin any other injuries than those threat- ened to property, such showing has been made necessary by the course in argument of the opposition. Such showing is not a case of proving too much, but a case in which the greater includes the less. It can not be doubted that some of the wrongs to labor by excesses of jurisdiction are due to willful perversion of judicial authority, but it is evident that most of them are attributable to a false view of social duty. The attitude of the courts of whose conduct complaints have been made has all the dangers and vices of the most obnoxious paternal- ism. Such courts have accepted the abstract right to do or to con- tinue business, which, because of its universality, is clearly seen to be merely personal, as a property right, vested in one class to the exclu- sion of others. Hence, in protecting it by injunction in excess of jurisdiction they are not exercising a judicial function at all but enacting destructive legislation for the benefit of one class and direct- ing it against another. And this is a complete answer to the objec- tion, so often repeated here in argument, that this bill proposes legislation in the interest of a class. The right asserted by the interests here arrayed in opposition to the bill is not merely that of doing business, but of continuing busi- ness under all conditions and circumstances exclusive of the rights of others, and though the exercise of it may mean the subordination of all other rights. Take for illustration the case of Buck's Stove & Range Co. against the American Federation of Labor and others. The evidence in that case showed strong provocation for the hostility on the part of organized labor toward the plaintiff. There was not only a dispute of long standing concerning the hours of service in the works, but plaintiff's open and organized hostility to unionism in general. It was shown that the plaintiff's president was at the head of one national organization whose avowed purpose was to oppose nearly all that union labor stands for, and that he held official positions in otner organizations of employers in his own line of production whose by-laws provided for various forms not only of resistance but of aggressive action hostile to the unions. Under the circumstances the action taken by the labor organizations against the plaintiff might have been fairly considered a legitimate battle of trade, with which a court of equity should not have interfered. The feature of that case which is pertinent here is the viewpoint of the court which granted an injunction against the defendants. 6 PENDING BILLS FOR REGULATING INJUNCTIONS. Among the objects which the president and representative of the plaintiff in the case proposed to accomplish in the labor field was the maintenance of the "open shop," of which his company's plant was an exemplar. In dealing with its customers that company insisted upon and had succeeded in establishing the "closed shop" that is to say, it made a contract with just one dealer and no more in each town or city in the country and bound the customer to deal in its goods exclusively. And it was this right for which it sought and obtained the court's protection. The court saw nothing wrong in the exclusion by con- tract or combination between it and a dealer in each community of all competition and the acquisition of the power to compel working- men and all others to pay its prices or go without stoves and ranges ; but when the union men, to whom that company denied the right of establishing fair and reasonable hours, refused to patronize it and asserted the right of free speech and freedom of the press in calling attention to its unfairness the court concluded that was not permis- sible and that it should be prevented, even if to prevent it required the exertion of all the powers of the court. The plaintiff in that case was, in all other respects, without protec- tion from external forces and competitive enterprises. Other manu- facturers to the number of more than 60 were in the market, each competing, at least with respect to the volume of trade, through the exclusive contract plan probably, and otherwise, each seeking to establish a "closed shop for itself in each town; but they were all members of the Stove Founders' National Defense Association, which exhibited strong hostility to organized labor in its by-laws. Here they stood united; but all the members were otherwise in competi- tion each with the other. The courts afford no remedy against this competition, and we consistently maintain that they should afford none. And yet the court forbade by injunction labor from resorting to effective means of competition for a fair division of the joint prod- uct of capital and labor. The agents of each of the sixty-odd manufacturers were free to make whatever representations they pleased, truthful or untruthful, about plaintiff's goods, and thus to boycott it, if you please, to the fullest extent, and thus narrow its market and destroy its business, and to do this from purely selfish or vindictive motives. Against all this the plaintiff had never thought of seeking an injunction, and if one had Deen sought the courts would have treated the application as an absurdity. But when union labor, seeking the establishment of better conditions for its members, and acting in its own interest in pursuit of its legitimate objects, laid down a fair condition upon which it would patronize the plaintiff and declared that until the condition was accepted it would withhold its patronage, its entire membership was enjoined from maintaining even this negative at- titude toward the plaintiff. In other words, only one thing was deemed important in that case, only one consideration seems to have moved the court, and that was the successful continuance of the plaintiff in business, the preservation of the market for it, at all events, regardless of the interests and opinions of the members of the unions, who were the principal retail purchasers of its products, as to whether it was entitled" to a continuance of their favor. And that case is fairly illustrative of many others. PENDING BILLS FOE REGULATING INJUNCTIONS. 7 JUDICIAL GUARANTIES AGAINST HAZARDS OF BUSINESS. The courts, supposedly the representatives of the Government and handmaids of public justice, are thus guaranteeing to a certain class immunity against the ordinary vicissitudes and hazards of business. And they are doing this in a country of supposed equals, and in order to do it are robbing hundreds and thousands of men of their liberties. They are meantime establishing a preferred class a business despotism and exempting the membership of that class from some of the difficulties and opposing forces which they would have to encounter if recognition were given to the principle of equality before the law and impartiality in the administration of justice. Employing capital is thus exempted, and labor correspondingly discriminated against. It appears that some of the courts ha.ve un- consciously imbibed the spirit of commercialism, and when led by that spirit are no longer able to attach importance to the simple ordinary rights of the citizen. Such courts act as if they considered it the chief purpose of government to promote and encourage the accumulation of wealth in the hands of those in possession of the machinery of production and trade. In the presence of that purpose all conflicting interests must yield. The interests and personal rights of hundreds and thousands must give way whenever the con- flict in court happens to come between the interests of what are desig- nated "business men" and those of "wage earners." The failure of an individual business man, or even an interruption of his operations, is considered a misfortune of direst import as compared to the pa- ralysis of the arms and tongues of any number of men having smaller interests, though those interests be equally dear, or even vital, to the possessors. Gustavus Myers in the preface to his remarkable History of the Supreme Court, of th United States says: Instance after instance occurs where justices, at the end of long service on the bench, have died virtually penniless or possessed of the most scantily moderate degree of means. Yet many of those very justices were the same who by their decisions gave to capitalists vast resources of power translatable into immense wealth. The influences so consistently operating upon the minds and acts of the incumbents were not venal, but class influences, and were all the more effective for the very reason that the justices in question were not open to pecuniarily dishonest practices. From training, association, interest, and prejudice, all absorbed in the radius of permeating class environment, a fixed state of minu results. Upon conditions that the ruling class finds profitable to its aims and advantageous to its power are built codes of morality as well as of law, which codes are but reflections and agencies of those all-potent class interests. In the case of men whose minds are already permanently molded to such purposes, and whose character and station forbid the use of illicit means, immeasurable sub- servience can be obtained which crude and vulgar money bribery would hopelessly fail to accomplish. Under these circumstances a great succession of privileges and powers are given gratuitously, and class corruption appears as honest conviction because of the absence of personal temptations and benefits on the part of the justices. In this deceptive and insidious guise supreme judicial acts go forth to claim the respect and submission of the working class, against whom the decisions are applied. It would be useless to attempt hiding the social and economic struggle out of which this issue has grown. No one who has given thought to the subject can doubt that, among many causes for the high cost of living and the consequently relative low wage rate for labor is overcapitalization by corporations. The payment of divi- 8 PENDING BILLS FOE REGULATING INJUNCTIONS. dends on stocks which often represent no investment, or very little, compels them to force the cost of living up at one end and the wages of their employees down at the other. Thus they exploit both the consumer and the wage earner, oftener than otherwise represented in the same person. In order to pay these dividends they totally ignore the claims of humanity, resort to speeding up, long hours, and other forms of downright cruelty. To such extremes would they go were it not for such resistance as organizations of labor can inter- pose, and were we to leave in their hands the instrumentality of iniunctive processes as now administered, they would soon reduce labor in this country to a worse plight than in any nation of the world worse even than that of Russian exiles in the coal mines of Siberia. Of course, writs of injunction are not recklessly and inconsideratelv granted by all courts, but these large employing corporations, sucn as constitute membership in the associations represented by Mr. Hines, Mr. Dillard, Mr. Davenport, Mr. Emery, Mr. Monagkan, Mr. Herrod, Mr. Drew, and others can always find a judge who fails to properly discriminate between a good complaint and a bad one, a fair order and one that is too drastic and too vague. I will insert some figures furnished by Roger W. Babson, a cele- brated statistician. These figures were obtained by him from the returns of corporations under the corporation-tax law of 1909, and are therefore official. National corporation tax returns. 1910 1911 Increase. Capitalization $52.371,626.752 $57,886.430,519 $5,514,803,767 $31 333 952 6% $30 715 336 008 i $618 616 688 Dividends $3.125.480,000 $3. 300, 250, 642 $234, 779, 642 262,490 270,202 7,712 Of course vou will understand that these are returns only from corporations "having net incomes of $5,000 and over and that some classes of very large corporations are exempted from the tax and are therefore also omitted. Now, by their own showing in the record of the Senate hearings, the gentlemen I have named represent a large number of these cor- porations, which, with others not represented but directly interested, employ the labor of this country. These are some of the corporations which realize in profits and pay to their stockholders in dividends over three and a quarter billions of dollars a year, taken back out of the wages they pay and from moneys otherwise earned by the people of this country. Last year their capitalization increased five and one-half billions of dollars and their profits, represented in dividends, increased over $234,000,000. Such are the opponents of this bill. Such are the institutions that object to loosening even one of the fetters they have placed upon the limbs of labor, fetters which are held through the constant menace of writs of inj unction and the fear of jail sentences. PENDING BILLS FOR REGULATING INJUNCTIONS. 9 I wish to present some further statistics on this subject. The figures which I now present represent the operations of steam rail- roads engaged in interstate commerce: Ratio operat- ing ex- Percent- Total revenue. Total outgo. Net re-enue. penses to age, net operat- revenue. ing reve- nue. Per cent. 1908 $2, 424, 640, 637 $1,695,101,878 $729,538,758 69.91 30.09 1909 2,393,805,989 1,669,547,876 730,235,381 69.75 30.25 1910 2,787,266,136 1, 847, 189, 773 940,076,363 66.27 33.73 It is also eminently proper on this occasion to call attention to a few matters of relevant history. At the close of the Civil War so large a proportion of transportation was by water and railroad mileage and investment were relative^ so small that the latter was not a matter of serious concern in any quarter as a political or financial power. The lines were short ana they were operated merely as feeders of transportation by water. Railroad bond issues outstand- ing did not exceed $400,000,000. Now, it is claimed, or rather admitted, by the highest railway authorities that altogether not more than $8,000,000,000 of cash capital has been invested to date, and yet they claim that the $18,000,000,000 of stocks and bonds out- standing are not in excess of the value of the railroad properties. In other words, that, considering present values, there is no over- capitalization. Accepting all these claims and admissions at face value, what do they prove ? They prove that each investment of $8 has resulted in a net increase in capitalization of $10. Eliminating from the calculation the small beginning that had been made, starting with 1866, and assuming the entire $8,000,000,000 as an investment made at that date, a net increase is shown of 125 per cent in 44 years. But inasmuch as the aggregate of original investment has increased much faster during the last than during the first 22 years of the period, it is at least fair to treat the investment of $8,000,000,000 as one made 22 years prior to 1910. The showing then is of an average annual net profit from investments in railroad properties of a fraction over 5.77 per cent, which is found by dividing 125 oy 22. Now, with one-seventh of the Nation's capital/all in the hands of one small class of business men, withdrawing from all others 5 77 per cent of net profit as against a much smaller percentage withdrawn by the rest (estimated at 3 per cent), it is not difficult to see the end of prosperity in all lines of enterprise other than that of transportation by rail. It is clear that if some peaceable and lawful means be not found to end this grossly unjust disparity the end will be complete financial des- potism on the one hand and abject dependence on the other. Now, that 5.75 per cent is practically guaranteed as a fixed income on $18,000,000,000. But the interest paid on railroad bonds is much less than 5 per cent, and runs as low as 3 per cent. The Interstate Commerce Commission in 1904 made a report showing that the aver- age dividend rate on railroad stocks was tnen 5^ per cent. The com- mission's statistics show that in 1908 and 1909 it was 6.43 per cent, 10 PENDING BILLS FOR REGULATING INJUNCTIONS. and as there was a great increase in net revenues in 1910 it is now over 7 per cent. The bonded indebtedness represents almost the entire investment, and is less than one-half the capitalization; so that 7 per cent dividends is really 14 per cent on the actual investment, assuming, though contrary to the fact, that the present owners of the railroads made the investment, or any part of it. But this does not tell the whole story. At least one-half the oper- ating revenue goes to extensions and improvements which when made belong to the holders of the stocks, who own the railroads. I think that instead of trying to hold down their employees to low wages with the menace of usurped iniunctive powers of the courts, it would be fairer, and cheaper in the long run, to increase wages and shorten the hours of toil. There is another phase of this matter, however, to which I am strongly tempted to call your attention. How long can the people of this country stand these vastly disproportionate returns to class capital ? It would relieve the situation somewhat if they gave their employees shorter hours and better wages. Some of the stupendous exactions from business and industry would thus find its way back to the people who pay freights and fares, instead of creating multi- millionaires, or being squandered in foreign countries and in wasteful luxuries at home. Mr. Hines went into the apparently irrelevant matter of wage increases by the railroads. But in spite of nominal increases, the net earnings of the railroads increased in 1910, when most of the increases took effect over the net earnings of 1909, by more than $110,000,000. I have inserted the foregoing statistics and commented upon their significance because I recognize that the struggle between capital and labor is really competitive. An irrepressible, inevitable conflict be- tween the respective forces, with a just division of the joint products of capital and labor as the issue, and that the unwarranted resort to tlje process of injunction gives to one side of that conflict a grossly unfair advantage. The courts should never interpose between these forces unless the facts would warrant interference in the absence of a dispute, and in other trade conflicts they never do interpose. In Hopkins v. Oxley Stave Co. (83 Fed. R., 912) Judge Caldwell said: While laborers, by the application to them of tie doctrine we are considering, are reduced to individual action, it is not so with the forces arrayed against them. A corporation is an association of individuals for combined action : trusts are corporations combined together for the very purpose of collective action and boycotting; and capi- tal, which is the product of labor, is in itself a powerful collective force. Indeed, according to this supposed rule, every corporation and trust is an unlawful combi- nation, for while its business may be of a kind that its individual members, each acting for himself, might lawfully conduct, the moment they enter into a combination to do that same thing by their combined effort the combination becomes an unlawful conspiracy. But the rule is never applied. Corporations and trusts and other combinations of individuals and aggregations of capital extend themselves right and left through the entire community, boycotting and inflicting irreparable damage upon and crushing out all small dealers and pro- ducers, stifling competition, establishing monopolies, reducing the wage of the laborer, raising the price of food on every man's table and of the clothes on his back and of the house that shelters him, and inflicting on the wage earners the pains and penalties of the lockout and the black list, and denying to them the right of association and com- bined action by refusing employment to those who are members of labor organizations; and all these things are justified as a legitimate result of the evolution of industries resulting from new social and economic conditions, and of the right of every man to cany on his business as he sees fit, and of lawful competition. PENDING BILLS FOE REGULATING INJUNCTIONS. 11 On the other hand, when laborers combine to maintain or raise their wages or other- wise to better their conditions or to protect themselves from oppression or to attempt to overcome competition with their labor or the producers of their labor in order that they may continue to have employment and live, their action, however open, peaceful, and orderly, is branded as a "conspiracy." What is "competition" when done by capital is "conspiracy" when done by laborers. No amount of verbal dex- terity can conceal or justify this glaring discrimination. If the vast aggregation and collective action of capital is not accompanied by a corresponding organization and collective action of labor, capital will speedily become proprietor of the wage earners as well as the recipient of the profits of their labor. This result can only be averted by some sort of organization that will secure the collective action of wage earners. This is demanded, not in the interest of wage earners alone, but by the highest con- siderations of public policy. In Vergelahn v. Guntner (167 Mass., 92) Justice Holmes, now of the Supreme Court of the United States, said : It is plain from the slightest consideration of practical affairs or the most superficial reading of industrial history that free competition means combination, and that the organization of the world, now going on so fast, means an ever-increasing might and scope of combination. It seems to me futile to set our faces against this tendency. Whether beneficial on the whole, as I think it is, or detrimental it is inevitable, unless the fundamental axioms of society and even the fundamental conditions of life are to be changed. One of the eternal conflicts out of which life is made is that between the effort of every man to get the most he can for his services, and that of society, disguised under the name of capital, to get his services for the least possible return. Combination on the one side is potent and powerful. Combination on the other is a fair and equal way. * * * If it be true that the workingmen may combine with a view, among other things, to getting as much as they can for their labor, just as capital may combine with a view to getting the greatest possible return, it must be true that when combined they have the same liberty that combined capital has to support their interest by argument, persuasion, and the bestowal or refusal of those advantages which they otherwise law- fully control. I desire to read from what Lord Coleridge said in the great case of the Mogul Steamship Co. v. McGregor (21 Q. B. Division, 544, 1892). This is a case of conflict between capitalists for the control of the carrying trade of the ocean. The court said: There can be no doubt that the defendants were determined, if they could, to exclude the plaintiffs from this trade. Strong expressions were drawn from some of them in cross-examination, and the telegrams and letters showed the importance they attached to the matter, their resolute purpose to exclude the plaintiffs if they could, and to do so without any consideration for the results to the plaintiffs if they were suc- cessfully excluded. This, I think, is made out, and I think no more is made out than this. Is this enough? It must be remembered that all trade is, and must be, in a sense selfish. Trade not being infinite nay, the trade of a particular place or district being possibly very limited what one man gains another loses. In the hand-to-hand war of commerce, as in the conflicts of public life, whether at the bar, in Parliament, in medicine, in engineering I give examples only men fight on without much thought of others, except a desire to excel or defeat them. Very lofty minds, like Sir Philip Sydney, with his cup of water, will not stoop to take advantage if they think another wants it more. Our age, in spite of high authority to the contrary, is not without its Sir Philip Sydneys, but these counsels of perfection it would be silly indeed to make the measure of the rough business of the world as pursued by ordinary men of business. I have already said that the same conflict goes on between capital for the trade of the world, which is not infinite; goes on and is unavoidable between capitalists, whether in individual hands or in the hands of these mighty combinations and labor, and without organization the tendency inevitably is for labor to descend, and that rapidly, to a condition of absolute servitude and helplessness. I say that, in the nature of things and under present conditions, this warfare is unavoidable, and there is the same justification for organized labor resorting to the legitimate and recognized methods of warfare in its hard and unequal struggle against capital that there is expressed in the foregoing extracts in the conflicts of capital against capital, and the learned justices have shown you what extraordinary lengths are held justi- fiable. 12 PENDING BILLS FOB REGULATING INJUNCTIONS. And in Pickett v. Walsh (192 Mass., 572) Judge Loring, delivering the opinion, said: Further, the effect of complying with the labor union's demands apparently will be the destruction of the plaintiff's business. But the fact that the business of a plaintiff is destroyed by the acts of the defendants done in pursuance of their right of competition is not decisive of the illegality of the acts. It was well said by Ham- mond, J., in Martell v. \Vhite (185 Mass., 255, 260), in regard to the right of a citizen to pursue his business without interference by a combination to destroy it: "Speak- ing generally, however, competition in business is permitted, although frequently disastrous to those engaged in it. It is always selfish, often sharp, and sometimes deadly." The application of the right of the defendant unions, who are composed of brick- layers and stonemasons, to compete with the individual plaintiffs, who can do noth- ing but pointing (as we have said), is in the case at bar disastrous to the pointers and hard on the contractors. But this is not the first. The case at bar is an instance where the evils which are or may be incident to competition bear very harshly on those interested, but in spite of such evils competition is necessary to the welfare of the community. To the same effect is Allis-Chalmers Co. v. Iron Holders' Union (C. C.) (150 Fed. Rep., 155), per Sanborn, J. Great changes are at work in the public thought of the Nation, and labor is abreast of the times. In the report of the House committee on this bill we find this expression: The idea has been advanced and ably supported in argument by one of the pro- ponents of this legislation that liberty and more of it is safe in the hands of the work- ingmen of the country. We are convinced of the merit and truth of that contention. The tendency toward freedom and liberation from legal trammels and impediments to progress and to a great social advance is seen in nearly all civilized nations. It is an unpropitious time to oppose a reform like that embodied in this bill in view of the fact that the abuses of power which it seeks to terminate have been, admittedly, numerous and flagrant. As evidence that organized labor fully understand their rights, I read from the address of President Gompers to the last annual con- vention of the American Federation of Labor, the same having been unanimously adopted as the sense of the members. POLITICAL CHANGES AFFECTING LABOR. At length it has become evident to all open-minded men that important changes are impending in our methods of government, and especially with reference to the status of political parties. Voters are now demanding better reasons for their support of a particular candidate than his nomination by a party or his indorsement by some official or unofficial boss. The spirit of revolt and change is abroad in the land , and the spirit of liberty which first inspired the Revolutionary leaders in 1776 has again entered the hearts of the American people. The people who form the rank and file of political parties are more progressive than their leaders. They will no longer sub- mit to the rule of evasion and false pretenses found in platforms, presidential mes- sages, and public addresses. They demand straight talk and open, honorable methods. I hope to find henceforth that tte millions of intelligent men of labor, having passed beyond the influence of campaign buncombe, have come to understand that the welfare of the people and the promotion of the cause of labor are more important than any party candidacy or empty partisan success. In the progress being made toward popular rule, now seen not only in our own country but in all nations, labor can justly claim an important, if not indeed a leading, part. In this movement international boundaries may be disregarded. The manhood and intellect associated in the war for the rights of men, differentiated from those of wealth, privilege, and hereditary rank, belong to no particular race, class, or nation- ality. The spirit of liberty and self-assertion overlaps mountain ranges and speeds across the seas separating empires and continents. It can not be stayed by kings, nor by injunctions and jail sentences. PENDING BILLS FOB REGULATING INJUNCTIONS. 13 True progress has never been by rapid strides, notwithstanding that a change from the old to a new order comes with a suddenness which is almost startling, when after a long period of dissension and preparation the people are ready. Labor has been patient and persistent, enduring many wrongs and sacrifices. There should be no retreat from the points of vantage it has conquered . Labor's contentions of many years have at length become merged into, or have rather coordinated with, those of the progressives of all parties. The people as a whole, irrespective of class, condition, calling, or partisan alignment, have declared for freedom in fact and not merely in name. They are taking affairs political into their own hands. They will no longer tolerate the sale of legislation to the highest bidder or the granting of franchises to the richest bribe giver. Under the coming regime assuredly there are to be no more court decrees entered as prepared in advance and ordered by the attorney for the stronger party stronger politically or financially. Along with these abuses will depart the midnight injunc- tion and the policeman's ready club, at the behest of those claiming a property right in the labor of the vicinage, whether at work or on strike. In lieu of the political boss and his machine we s. all have leadership of intelligence, pleading for public justice, with adherents proportioned in number to the strength of the arguments. The stuffed ballot box, the false count, and the perjured election return will likewise disappear. With these opportunities, with these stimulating inducements to free thought and action, the cause of public justice will be advanced in all directions. Labor, acting from the point of enlightened self-interest, and yet with a full sense of responsibility respecting the just rights of all others in society, will manfully and patriotically meet its enlarged responsibilities. Under the prevailing system of cut-and-dried platforms and slated nominations, preceded by fake primaries, the ballot in our hands has not been, in any adequate sense, either a protecting shield against wrong or a means of redress. We may not for some time be entirely rid of the rule of parties. If they be an evil, they are such as are incident to all governments based on popular suffrage. I deem it unwise, or rather impolitic, to waste our energies now in efforts to abolish political parties. Perhaps they are institutional in all free governments. But if we can not destroy them we may, by more assiduous and regular exercise of our privileges and rights of citizenship, do much in the way of controlling them. Under existing conditions we must obtain various measures of legislation at the hands of dominant parties in legislative bodies, and if party affairs are to remain in the hands of corporate agents and corrupt bosses, as heretofore, then our interests will be imperiled and the desired end retarded no matter which party has the majority. "But political parties should, after all, be treated as means to an end. The success of a party should never outweigh the accomplishment in legislation or administration of the important purposes of labor. In casting our ballots we should ever distinguish whenever possible between our friends and our enemies, and between these should be no division on party lines among us. On general party issues it would be useless to attempt bringing about unity of action, and perhaps it is better in the long run that such is the case. But when we are seeking legislation from Congress on so vital a matter as curtailment of personal liberties, including the right of free speech and free press, we should be a unit in opposition to candidates who stand in the way, no matter how exalted the office sought by them. DO ABUSES EXIST? Abuses in issuing and enforcing injunctions do exist, and so serious have they been that two Presidents, one of whom had been himself a judge, were compelled, presumably by sense of duty, to send mes- sages to Congress calling attention to them and suggesting legislative remedies. Every well-informed lawyer in the country knows that such abuses exist, and some judges have spoken of them in condemnation. And yet there has not been a suggestion from one of the half dozen counsel appearing in opposition to this bill that Congress should amend the law in any particular. On the contrary, you may read each argument in turn and you will find that every single feature and provision of the bill, from the general purport to the minutest detail, is bitterly assailed and the same old decisions and the same old threadbare 14 PENDING BILLS FOB REGULATING INJUNCTIONS. arguments employed in one speech after another. As showing the attitude of the opposition, I call attention to the fact that the char- acter of opposition before the House committee was just as vindictive, just as unyielding, just as uncompromising, just as hardened against reason, as before the Senate committee. At the hearings before the House committee one of the members said to the gentleman whom I consider the leader in opposition, Mr. Davenport: I should like to ask you this question. In the course of an experience which haa been more extensive than that of any other man I know, has it come to your observation that the writ of injunction, in its issuance, is abused in any way at ail? The reply was: Never. They are really very hard to get. Then he was asked : Is there any suggestion that it occurs to you to make for a change in the administra- tion of the law? And he replied: No; not even the one contained in the proposition of Mr. Moon in the last Congress. The Moon proposition was offered in the House as a substitute for the Clayton bill, which passed the House by a vote of 243 to 31. The substitute was defeated by a vote of 48 to 220. I can not, of course, quote from the presidential messages; but during Mr. Roosevelt's incumbency he urged legislation in messages of the following dates: December 5, 1905, January 31, 1908; March 25, 1908; and December 18, 1908.- President Tart included recom- mendations for such legislation in messages dated December 7, 1909, and December 6, 1910. Over and over in these messages it was declared that abuses exist and that it was the duty of Congress to legislate on the subject. Mr. Davis, of West Virginia, a member of the House Judiciary Committee, summed up the principal forms in which these admitted abuses have appeared in a speech in the House on the Clayton bill, May 14, 1912. He was answering another member of the committee, who had asserted, as counsel have asserted in the Senate hearings, that there have been no instances of judicial abuse herein. Mr. Davis said : I accept the challenge of the gentleman from Pennsylvania, Mr. Moon, and assert that if the testimony of the witnesses before the committee did not disclose them, still the reported cases will show at least five glaring abuses which have crept into the administration of this remedy. I name them: The issuance of injunctions without notice. The issuance of injunctions without bond. The issuance of injunctions without detail. The issuance of injunctions without parties. And in trade disputes particularly, the issuance of injunctions against certain well- established and indisputable rights. These are the evils which this bill seeks to cure. But there are other authorities upon the necessity for legislation to correct not only uncertainties hi the practice, but erroneous views of judges as to their powers. I quote from an authority which has been freely quoted by counsel in opposition. I refer "to Martin's Law of Labor Unions. He says in his preface: There is, however, a great lack of harmony in the decisions relating to trade dis- putes, and many of them, it is believed, are erroneous in principle and oppressive and unjust to organized labor. In this category may be placed decisions which hold without qualification that strikes or threats of strikes to procure the discharge or PENDING BILLS FOE EEGULATING INJUNCTIONS. 15 prevent the employment of workmen are unlawful and criminal, as being unwar- rantable interference with the business of the employer, and an invasion of the rights of the workmen against whom these acts are directed; denying unions the right to ex- ercise disciplinary measures in accordance with their rules and by-laws; to compel insubordinate members to join in a lawful strike or continue on strike after going out; holding that all picketing is unlawful; enjoining unions at the instance of an em- ployer against whom a strike is in operation from giving strike pay or using its funds in furtherance of picketing; requiring defendants against whom a writ of injunction, delective and ambiguous in its terms, has been awarded, to ascertain, or, more prop- erly speaking, to attempt to ascertain what is prohibited by reading the writ in con- nection with the bill. In view of all the foregoing utterances, it is surprising to find any- one to claim that the injunctive remedy should not, at any rate, be safeguarded in its issuance and enforcement by all possible checks and formalities to prevent its abuse. No one who has given it proper study will deny that, even when issued within the jurisdiction, it is a species of judicial legislation. And since, as such, it is legislation by one man, the restrictions should be at least equal to those by which Congress is governed in the enactment of statutes. Upon Congress are imposed constitutional requirements; and in addition to these are the rules and committee service, all intended to prevent imposition, possibility of abuse of privilege and surprise, and to guard against ambiguity and vagueness in the language of enactments. In view of all this, it is strange that to this time no restrictions have been placed upon the judiciary with respect to these methods of exercising their extraordinary powers. An injunction may always develop into an ex post facto law, the vindicatory part to be enacted and put in force after the doing of an act which^the court considers or construes to be a violation. Justice Baldwin, in Bonaparte v. Railroad Co. (217 Fed. Cases, 1617), said: There is no power the exercise of which is more delicate, which requires greater caution, deliberation, and sound discretion, or is more dangerous in a doubtful case than the issuing of an injunction. It is the strong arm of equity, and never ought to be extended unless in cases of great injury, where courts of law can not afford an ade- quate or commensurate remedy in damages. The right must be clear, the injury im- pending or threatened, so as to be averted only by the protective preventive process of injunction but that will not be awarded in doubtful cases, or new ones not coming within well-established principles, for if it issues erroneously, an irreparable injury is inflicted, for which there can be no redress, it being the act of a court, not of the party who prays for it. It will be refused till the court are satisfied that the case before them is of a right about to be destroyed, irreparably injured, or great or lasting injury about to be done by an illegal act. PROVISIONS OF THE CLAYTON BILL. The first section of the bill amends section 263 of the Judicial Code so as to safeguard the first step in a proceeding for injunction. It reads as follows: SEC. 263. That no injunction, whether interlocutory or permanent, in cases other than those described in section 266 of this title, shall be issued without previous notice and an opportunity to be heard on behalf of the parties to be enjoined, with notice, together with a copy of the bill of complaint or other pleading upon which the application for such injunction will be based, shall be served upon the parties sought to be enjoined a reasonable time in advance of such application. But if it shall appear to the satisfaction of the court or judge that immediate and irreparable injury is likely to ensue to the complainant, and that the giving of notice of the application or the delay incident thereto would probably permit the doing of the act sought to be restrained before notice could be served or hearing had thereon, the 16 PENDING BILLS FOR BEGULATING INJUNCTIONS. court or judge may, in his discretion, issue a temporary restraining order without notice. Every such order shall be indorsed with the date and hour of issuance, shall be forthwith entered of record, shall define the injury and state why it is irreparable and why the order was granted without notice, and shall by its terms expire within such time after entry, not to exceed seven days, as the court or judge may fix, unless within the time so fixed the order is extended or renewed for a like period, after notice to those previously served, if any, and for good cause shown, and the reasons for such extension shall be entered of record. The formalities and safeguards here provided in section 263 are only such as are necessary, in view of what I have already set forth; also in view of what Justice Baldwin said in the case cited. Section 266a adds a new section to the code to require security hi all cases and reads as follows: SEC. 266a. That no restraining order or interlocutory order of injunction shall issue except upon the giving of security by the applicant in such sum as the court or judge may deem proper, conditioned upon the payment of such costs and damages as may be incurred or suffered by any party who may be found to have been wrongfully enjoined or restrained thereby. I now read from Foster's Federal Practice, page 753: Later the practice (i. e., the practice as to security) was extended to interlocutory injunctions granted upon notice to the defendant, first in special cases, then generally; and now they (i. e., bonds) are usually required as a matter of course in England and in most of the United States, although in some of the circuits the Federal judges are accustomed to grant injunctions without such requirement. Section 255b of the bill also adds a new section to the code. It reads as follows: SEC. 266b. That every order of injunction or restraining order shall set forth the reasons for the issuance of the same, shall be specific in terms, and shall describe in reasonable detail, and not by reference to the bill of complaint or other document, the act or acts sought to be restrained, and shall be binding only upon the parties to the suit, their agents, servants, employees, and attorneys, or those in active concert with them, and who shall by personal service or otherwise have received actual notice of the same. There can be no greater justice than that parties upon whom the edict of a judge falls, often without notice, shall know the exact con- dition in which it places him; and there can be no greater injustice, no greater cruelty, I might say, than to impart to him merely a vague or indefinite understanding that his past or present conduct has been already condemned by the court, leaving him to guess as to his proper deportment, groping in darkness with fear and trembling lest he be dragged before a single judge and sentenced to imprisonment for acts which have been done in a belief that he was not answerable before a court. I can not describe all the defects of process by which the parties served are left in doubt and perplexity and exposed to oppression and injustice. But it is a common bad practice to include in these writs and orders, at the end, an omnibus or basket clause, forbidding all other acts of similar character, or referring for further details to the prayer of the bill, in the hope that anything which might have been omitted by the zealous lawyer will be corrected by the court when the time comes for punishing the party for contempt. It is claimed that the present practice affords ample safeguards, that there are no precedents justifying the provisions of this section. In view of my investigation and study, the result of which I intend laying before the committee, I can scarcely conceive of a greater untruth. The present law affords no security whatever against PENDING BILLS FOR EEGULATING INJUNCTIONS. 17 vague, indefinite, ambiguous, misleading, bewildering commands of the courts. The Supreme Court rules, which have been again and again referred to, do not help us any herein. They neither cover the subject nor do they conflict with anything in this section. I will not take your time to read to you the Supreme Court rules, but throw out this challenge, and counsel may call any conflicting provision which they can find to the attention of the committee. Among the many authorities I might cite as to what is proper, commendable, and salutary in practice, which is no more than is aimed at in this section, is Foster's Federal Practice (p. 745), where it is said: The writ should contain a concise description of the particular acts or things in respect to which the defendant is enjoined and should conform to the directions of the order granting the injunction. * * * The defendants ought to be informed, as accurately as the case permits, what they are forbidden to do. It seems that a writ is insufficient which designates the acts sought to be enjoined by a reference to the bill without describing them. Now, in support of Mr. Foster, I will cite Swift & Co. v. United States (196 U. S., 376), where it was said: On the other hand, we equally are bound by the first principles of justice not to sanc- tion a decree so vague as to put the whole conduct of the defendant's business at the peril of a summons for contempt. We can not issue a general injunction against all possible breaches of the law. * * * The general words of the injunction "or by any other method or device, the purpose an^ effect of which is to restrain commerce as aforesaid, " should be stricken out. The defendants ought to be informed as accu- rately as the case permits what they are forbidden to do. That case was followed in New York, N. H. &. H/R. R. Co. v. I. C. Com. (200 U. S., 404), the court adding to what was said in the Swift & Co. case these words, here especially significant and relevant: To accede to the doctrine relied upon would compel us, under the guise of protect- ing freedom of commerce, to announce a rule which would be destructive of the fundamental liberties of the citizen. I call attention to the fact that the words " or by any other method or device, the purpose and effect of which is to restrain commerce as aforesaid/' which the court condemned and ordered stricken out as a menace to liberty, are the rery words (or equivalent words) which several opponents of this provision strenuously insist should be retained as part of the practice pursued in labor cases. In so insist- ing they confess themselves unwilling to conform to correct practice, as laid down by the Supreme Court, and admit that a reprehensible different practice has been pursued. Members of the Senate committee have been calling for some explanation of the purpose of this provision. Some of you may have heard of blanket injunctions. Whether you have or not, the labor people have, and I would not say that their meaning is known to them, because that is something past finding out. But they have learned from sad experience of their effect. Presently I shall exhibit to you several specimens of the article, some placed in the record by Mr. Monaghan and some by myself; but first I wish to call your atten- tion to what I would not call practice, but malpractice, amounting to crime. It is one of the most important phases of this subject, and is alone a justification for all these first three sections. I refer to the devices and tricks of injunction lawyers by which they wreak upon workmen on strike all the disastrous consequences of an injunction 57939 12 2 18 PENDING BILLS FOB BEGULATING INJUNCTIONS. rightfully issued, but without any basis of right, justice, or law, and yet escape all risk and responsibility of being themselves called to account or their clients incurring any liability. In the first place, the complaint, though usually voluminous, is filled with irrelevant and immaterial allegations and is defective in material essential specifications. Such complaint will be presented to a judge, who naturally shrinks from going through and scrutinizing a long doc- ument. He relies in part upon the attorney's representations of what he can prove and issues a restraining order, 'already prepared, and that is usually a drastic, comprehensive injunction, often so stringent that it barely leaves the defendants room to breathe. He serves the order on a few of the leaders among those participating in the trouble and takes care that his sharp practice is immediately exploited hi the press. Now, even the leaders can seldom understand the matter even with the help of such lawyers as they are able to employ. We hear about disobedience in such cases and about the necessity of serving hundreds and thousands of men. It is all moonshine. There may be rare exceptions; but, as a rale, whether several or many are served, all hear of it and all are completely demoralized and discour- aged. No matter how just their side of the dispute, the very fact that a court possessing plenary and arbitrary powers has interfered on the other and stronger side, the side of capitalistic and police power, is an insuperable obstacle to winning the strike. So what is the use to appear and defend? Mr. Monaghan is correct at least in his state- ment as to the effect of a restraining order or injunction. It is true that few injunction cases involving labor disputes are reported. The first act of the judge is as destructive to the strike as would be a volley of musketry, with its incidental carnage. What becomes of the complaint or affidavits ? It is a subject that some committee ought to investigate. As a rule, the complaint dis- appears immediately. The clerks are usually very accommodating to the attorneys for big employers of labor; besides, in some jurisdic- tions the attorneys are allowed to retain the original papers. In 1906, when I first appeared before the House Judiciary Committee, I tried in vain to obtain copies of complaints in some of these cases. About that time an injunction was issued in the District of Columbia, which I thought and still think a clear abuse. I applied at the clerk's office while the case was fresh, but found that the attorneys had withdrawn the papers. Upon application to them it was claimed that they had been mislaid at any rate, I could not get a look at the complaint. All that I could make available was the order. In the course of his argument, Mr. Monaghan made very broad assertions as to the hesitancy of the courts to grant injunctions and their careful scrutiny of applications. He gave a surprisingly small number as having been issued in labor disputes. Being pressed by the committee, he admitted that his estimate was based only on reported cases. He also admitted that in many cases no report was available. Of course not. The injunctions and restraining orders against strikers run into the hundreds every year. He was requested to produce records, orders, and injunctions. He has pro- duced just three complaints, with accompanying affidavits, and the record contains just 15 out of 3 times that number of orders and injunctions issued on application of his clients alone. PENDING BILLS FOR REGULATING INJUNCTIONS. 19 The second clause of section 266b says of the injunction or restrain- ing order that ' 'it shall be binding only on the parties to the suit, their agents, servants, employees, and attorneys, or those in active con- cert with them, and who shall by personal service or otherwise have received actual notice of the same." Notwithstanding all criticisms hurled against this provision by learned and ingenious counsel, I insist that it embodies the law as it now is according to best authorities, and that to have it otherwise, even if courts confined themselves to rightful jurisdiction, leaves the way open to intolerable abuses and judicial tyranny of a character which will, unless corrected soon, overturn the Republic and establish despotism on its ruins. Time and again have we been referred to the Debs case as a prece- dent and basis for the opposition to this provision. I deem it worth while to call special attention to that case again and in this connec- tion. It is first to be noted that the case in the lower court was not the case heard in the Supreme Court. The excesses and superfluities of the writ were not before the supreme court. Debs was a party named in the writ, and had been served. No defect or excess of any pleading or process was there involved. It was a habeas corpus pro- ceeding, and therefore necessarily turned on a question of the lower court's jurisdiction. I claim that the order and writ in the lower court were monstrosities, but whether they were or not is a question never judicially passed upon in that case. In addition to forbidding about everything that men could con- ceive of or imagine, the order named certain defendants, of whom Debs was one, and then commanded and enjoined "all other persons whatsoever." A learned commentator, writing in the Harvard Law Review of the period (8 Harv. L. Rev., 228), and speaking dispas- sionately, said: It is difficult to see how such injunctions can stand the test of precedent and prin- ciple. An injunction issues in a civil suit to any party who has been complained of, at least, and has had notice of the motion of his adversary. To be obliged to wait until the injunction has been violated to determine against whom it was issued ought to be enoiigh to show that it is not an injunction at all, but in the nature of a police procla- mation, putting the community in general in peril of contempt of court if the procla- mation be disobeyed. Courts of equity were evidently not intended to possess such functions, and it must be regretted that Judge Grosscup, in his most commendable eagerness to offset the criminal inaction of Gov. Altgeld, should have been forced to such a legal anomaly. The power of a court to imprison for contempt of its orders or of the persons of its 'judges is an arbitrary one at best, and to stretch it as here in the time of disorders and almost panic in the immediate vicinity would seem to show that the court has been deserted by the calm judicial temper which should always char- acterize its proceedings. But the loose, deplorable, and reprehensible practices w^hich this provision condemns and would end have been expressly condemned by the Supreme Court, both in its rules and decisions. " Equity rule 48 provides as follows: Where the parties on either side are very numerous and can not without manifest inconvenience and oppressive delays in the suit be all brought before it, the court, in its discretion, may dispense with making all of them parties and may proceed in the suit, having sufficient parties before it to represent all the adverse interests of the plaintiffs and the defendants in the suit properly before it. But hi such cases the decree shall be without prejudice to the rights and claims of all the absent parties. Scott v. McDonald (165 U. S., 107) was a case arising under the South Carolina dispensary law. A writ of injunction had been 20 PENDING BILLS FOB KEGULATING INJUNCTIONS. applied for to and issued by the circuit court. The defendants were certain parties named and "all other persons claiming to act as con- stables, and all sheriffs, policemen, and other officers acting or claim- ing to act under the South Carolina dispensary law." When that injunction came before the Supreme Court of the United States it laid down a rule which I claim is that laid down in the provision of this bill now under consideration. The court said: The decree is also objectionable because it enjoins persons not parties to the suit. This is not a case where the defendants named represent those not named. Nor is there alleged any conspiracy between the parties defendant and other unknown parties. The acts complained of are tortious and do not grow out of any common action or agreement between constables and sheriffs of the State of South Carolina. We have, indeed, a right to presume that such officers, though not named in this suit, will, when advised that certain provisions of the act in question have been pronounced unconstitutional by the courts to which the Constitution of the United States refers such questions, voluntarily refrain from enforcing such provisions; but we do not think it comports with well-settled principles of equity procedure to include them in an injunction in a suit in which they were not heard or represented, or to subject them to penalties for contempt in disregarding such an injunction. (Fellows v. Fellows, 4 John Chan., 25, citing Iverson v. Harris, 7 Yes., 257.) The decree of the court below should therefore be amended by being restricted to the parties named as plaintiff and defendants in the bill, and this is directed to be done, and it is otherwise affirmed. Not speaking with especial reference to labor disputes, the unwar- ranted comprehensiveness of restraining orders is well designed to defeat the rule as to parties and drag into the toils of litigation just the number required in order to defeat every purpose of a strike, whether or not those so enmeshed have done more than merely assume a negative attitude by the severance of relations and have patiently and steadily preserved it. It is not every lawyer even who would be able to analyze and draw the line between the legal dis- crepancies in such a case and take the proper steps to preserve the rights of unoffending persons held to account as participants in illegal conduct without being even mentioned by name on the complaint or order. Is it any wonder, then, that advantage has been taken of the loose and inconsiderate practice which these representative orders show the courts have sanctioned and of which workingmen complain ? I will here mention one or two terms often loosely used by the courts: "Combination" and "conspiracy" describe illegal associa- tions, and their meanings are the same for all practicable legal pur- poses. " Association " primarily denotes an entirely legal relation between the members. It is often said, however, by the courts, when a body of organized labor embarks upon an illegal undertaking, that it is a combination or conspiracy, an expression signifying that the association itself has become unlawful or criminal. In legal essence all illegal acts of the membership of such an asso- ciation, whether done by them singly or collectively, are perpetrated beyond and outside its purpose and should impose no legal conse- quence by way of injunction or otherwise upon the association as such or upon its members as such. In Pickett v. Walsh (192 Mass., 572, 589) the court said: There is a point of practice which must be noticed. As we have said, the plaintiffs have undertaken to make three unincorporated labor unions parties defendant. That is an impossibility. There is no such entity known to the law as an unincorporated association, and consequently it can not be made a party defendant. Often has this well-established rule of law been completely over- looked or ignored in labor cases. That this principle was willfully PENDING BILLS FOE REGULATING INJUNCTIONS. 21 and knowingly violated in all the cases in which Mr. Monaghan was counsel for complainants is seen by placing side by side the bills of complaint which he placed in the record and his admission at page 58 of the hearings, where he said: We can not sue the union as a voluntary unincorporated association because there is no statute upon the books of the Federal Government which permits a suit against a voluntary unincorporated organization as such. The doctrine of ultra vires should apply here as in the case of cor- porations. According to that doctrine illegal acts done by officers and stockholders create personal liability only, and in no way bind the corporation. But only in rare instances have the courts given the labor organizations the benefit of the application of the doctrine, and in many cases have brought into the litigation and held to account the entire membership, though the vast majority had never pre- viously heard of the acts done or had any intention to participate in doing them. In Bucks Stove & Range Co. v American Federation of Labor and others the boycott was instituted and prosecuted mainly by the St. Louis Labor Council, not connected in any sense with the national organization. The officers of the latter merely placed the complainant on an unfair list in the official magazine. Not more than a few hundred, or at most a few thousand, persons knew of the boycott. And yet the American Federation, as a volun- tary association, and each of its million and a half of members were enjoined and rendered liable to punishment for contempt. That is therefore a wise provision of this bill which requires per- sonal notice to all parties whom it is sought to bind with orders granting injunctions and restraining orders. In the hearings before the House committee have been placed from time to time various restraining orders and injunction writs. Alto- gether, if inserted here they would needlessly occupy much space. A description of their excesses and omissions alone will suffice to show the necessity of this bill. The first instance to be noticed is Kansas & Texas Coal Co. v. Denney, decided in the district court for Arkansas. And here, as in most of such cases, no full official report of the case can be obtained from the published reports, but only a mere memoranda. The trouble and expense of procuring certified copies of the records have had to be resorted to in some instances. In this case the defendants (strikers) were ordered to be, and were, enjoined from "congregating at or near or on the premises or the property of the Kansas & Texas Coal Co. in, about, or near the town of HurTtington, Ark., or elsewhere, for the Surpose of intimidating its employees or preventing said employees om rendering service to the Kansas & Texas Coal Co.; from inducing or coercing, by threats, intimidation, force, or violence, any of said employees to leave the employment of the said Kansas & Texas Coal Co.; or from in any manner interfering with or molesting any person or persons who may be employed or seek employment by and of the Kansas & Texas Coal Co. in the operation of its coal mines at or near said town of Huntington or elsewhere." It will be observed that a defendant in that suit would render him- self liable to punishment for contempt if he met a man seeking employ- ment in a foreign country and persuaded him not to enter its service. In the case of Adams v. Typographical Union in the Supreme Court of the District of Columbia no mention was made of the 22 PENDING BILLS FOE REGULATING INJUNCTIONS. filing of any complaint or of any reason whatever why the parties were restrained. Striking through the typographical union, all its members were dragged in those who had and those who had not done the forbidden acts were placed on the same footing of condem- nation. The union, a mere word sign in legal sense, was impleaded as a defendant. We find in the order this broad, almost limitless, command and prohibition, "from interfering with any of the com- plainants in the conduct of their business for the purpose of prevent- ing them from conducting the same hi their own lawful way." Also this: Such injunction to remain in force during the pendency of this proceeding, or until the further order of the court. This was not a restraining order, but an injunction, issued at and upon filing the complaint. There isn't a word in the compliant in tne case about loss or financial detriment to result from the acts of the defendants. It is also observable that the order contained not a word to show why it was issued, not even a mention of the filing of a complaint. It gave the parties no day in court for the purpose of getting rid of it, nor was any other relief prayed other than the advantage to accrue to the complaintants by the issuance of the injunction. There have been many such orders and injunctions issued in the first instance here in the District. In the Bucks Stove & Range case the order was so long and in- volved that a busy man would almost prefer paying a fine to having to read it. Among other matters were these words : And froni interfering in any manner with the sale of the product of the complain- ant's factory or business by defendants, or by any other person, firm, or corporation. Now, if one of the million and a half persons dragged in by using the associate name or anyone else had a stove or range to sell, he was forbidden to tell a prospective purchaser that it was a better article than that offered by the complainant; much less could he tell him that complainant was unfair to labor. They were forbidden "from declaring or threatening a boycott against the complainant or its business or the product of its factory." Such a clause is clearly forbidden by the Supreme Court in Swift & Co. v. U. S. and in the Chesapeake Coal case, elsewhere pited. But if the goods were of inferior quality, the defendants couldn't mention the fact to their friends or relations; neither the American Federation of Labor nor any of its members could declare a primary boycott against the com- plainant for any cause. And I note that the complaint was pro- jected on the theory of a secondary boycott, and toward the close we have in the restraining order this swooping overlapping clause "and in any manner whatsoever impeding, obstructing, interfering with, or restraining the complainant's business, trade, or commerce." This also was exactly the excess which the court in the Swift and Chesapeake Coal cases condemned as dangerous to personal liberty. I will not go into the details of the Alaska case, since we are not much surprised at anything happening there. But the order had all the usual excesses, including the usual catch-all clause running to the end of time and covering all possible activities of the defendants. It also assumed to drag in all tne members of the union, wherever they niight be or however circumstanced, by the simple expedient o"f impleading the union as a defendant. PENDING BILLS FOE EEGtJLATING INJUNCTIONS. 23 In the Massachusetts case it will be noted that the union was impleaded according to the usual bad practice, and with the Supreme Court's decision in rickett v. Walsh staring them in the face. This order enjoins them "to desist and refrain from interfering with the business of the complainants, or any of them, by the use of threats, force, or intimidation, with anyone seeking employment as seaman with any of the complainants or their agents, or by the use of promises to pay board," etc. The order here fan's to state that any complaint had been filed, but, "whereas it has been represented unto us by the complainants," naming them, "that the said complainants have exhibited a bill of complaint," etc. No complaint in such a case under any correct system of pleading could possibly have shown a cause of action in more than one complainant, and yet here were a dozen joined, no doubt with a view to overawing the defendants into submission. The order in the West Virginia case (Hitchman C. & C. Co. v. Mitchell et al.) possesses the vice of not containing the name of either complainant or defendant. It is more in the form of a procla- mation by a military commander or provisional governor of a con- quered province in war times than anything I can think of. Under that order it would have been dangerous for any member of the union to have made any statement or representation whatever about the complainant or complainant's business to anyone seeking employ- ment with the complainant, even if the person seeking employment had asked for information. It was what might be termed a roving injunction, calculated to catch and bind anyone upon whom it might be served or to whose attention it might be called. I will not attempt to make extracts from it. It is all so bad that I would not know where to begin or end. It was issued by United States Judge Dayton, and is attested by the clerk of his court, though not signed by the judge. That thing was entitled and styled a re- straining order, but had all the terms and legal effect to be found hi any permanent inj unction. Its drastic, far-reaching, and stringent prohibitions were introduced with the words "it is therefore ad- judged, ordered, and decreed by the court," etc. There is not in it a line or word to inform the reader as to the offenses or wrongs charged against them. There was no notice nor order nor opportunity to show cause why the order should not stand until the day set for final hearing, nor any way to get rid of it upon any ground until the end of a protracted and expensive litigation. And hi order to make the destruction of the rights of the defendants all the more complete and certain, the hearing was set 2 months and 21 days after the date of its issuance. Before discussing in detail the court records produced by Mr. Monaghan, attorney for the founders' association, I will call atten- tion to the showing of the records produced by him with reference to the practice which has characterized the conduct of such cases. In the first place, we note that each and every attorney lor these industrial corporations denies emphatically that any court has in any instance abused its power or exceeded its jurisdiction and has asserted, apparently with entire candor, that the most that can be imputed to the judges is an occasional error or irregularity. Now, Mr. Monaghan admitted that some injunctions and restrain- ing orders had issued of which he would be unable to obtain any data 24 PENDING BILLS FOE KEGULATING INJUNCTIONS. or record. That sounds a little strange to those familiar with the essentials of proper and regular court procedure. But those at any rate who know the reckless and oppressive uses of injunctions in labor disputes are not surprised. It often happens that they get a drastic order or injunction and then, after it has done its deadly work, it disappears. Mr. Monaghan thought he could at any rate produce a certain number of recorols; and in response to the urgent request of the committee, promised to produce 34 at least. He produced and placed in the record just 3 complaints, and restraining orders and injunctions, both, to the number of 15. It is fair to assume that he did not discriminate against his clients or himself in making the selections. Although those he was unable to locate and pro- duce may be worse than those he has placed in the record, I do not care to see them. These are bad enough. Those produced bear internal evidence of having been prepared by competent and pains- taking lawyers in Cincinnati seeking to make the best possible show- ing with such materials in the way of facts as were available. And yet how utterly lacking in essential allegations as a basis for the exercise of equitable jurisdiction through the extraordinary strong- arm process of injunction. First we have the complaint in the Greenwald Co. case, upon which an injunction was granted by a judge of the Supreme Court at Cincinnati. It recites, of course, that the complainant has large capital, large business, and employs a large number of men, allegations which are always deemed important by counsel who prepare and judges who issue these writs. It impleads three labor unions as defendants, and through that contrivance drags in their members to the number of hundreds, perhaps thousands, as parties to a complaint charging criminal conspiracy, most of whom must have resided at a distance and have been utterly inno- cent of knowledge of the acts charged, or even of the situation at the scene of the dispute. The nearest approach to a charge of trespass, hence the only threatened injury to a property right, found in the complaint is that the defendants selected and detailed " large numbers of persons called pickets to constantly watch and beset the approach to plain- tiff's foundry" without stating whether the congregating was in the street or on private property with the owner's consent, whether it was near the entrance or a mile away. But the real grievance, as is plainly seen by reading the complaint, is the charge that the union was on strike and their officers, associates, and confederates are all combining and confederating together for the purpose of preventing the employees of plaintiff who are desirous of working from contin- uing in its employ, and also of preventing others from entering the employment of plaintiff." It is not necessary to attempt to analyze or to point out the weak features of the two other complaints one in the United States Circuit Court for the Eastern District of Kentucky and the other in the United States Circuit Court for the Southern District of Ohio. They are open to the same criticisms, not differing in essentials from that just noticed. Nor is it necessary to discuss orders or injunctions issued on the complaints further than to speak of their vagueness, comprehensiveness, and utter recklessness and disregard for justice^ legal formalities, and private rights, of which they contain conclusive proof. PENDING BILLS FOB REGULATING INJUNCTIONS. 25 I have also before me as part of the House hearings the complaint in Hitchmaji Coal & Ooke Co. v. John Mitchell and others. This complaint is exceedingly profuse, setting forth many transactions, industrial conditions, and isolated facts of individuals in different parts of the country, but falling far short of an injury to property or property right, as n the pleader were describing the incidents of a political campaign and its effect on business. This complaint is a slight variation from the usual form in the matter of parties. In- stead of making the half dozen large labor organizations parties defendants, it seeks to bring in their memberships, whether within the judicial district, in the Eastern or Western States, or in Alaska, and to subject them to the order then and there made, by suing their officers hi a representative capacity. This is merely a slight varia- tion of the abuse of process and of fraudulent and bogus procedure. The charges, as you would see if you examined the complaint, are of acts and conduct forbidden by the order on the sole ground of their unlawfulness. The legal mind can not conceive of such a thing as proceeding by representation in such a case. It is a maxim of the law that there can not be an agency created to violate the law, nor any such thing as joint recovery against or joint li ability of tort- feasors, nor can individuals be joined as parties defendant in such a case unless they can be shown to have conspired together as such or to have acted or to be acting in concert. But you will search in vain through this complaint to find an allegation showing a coming together 1 hi any act of illegality such as would either show concert of action or anything upon which to proceed against them, except the bare fact that those named were officers of labor organizations and that the vast number not designated by any name were members of such organizations. The prayer simply asked, in minute detail, for restraint and pro- hibition upon every act and proceeding conceivable or which could be imagined tending toward success of the unionists in their attempt to unionize the miners in that region and improve the deplorable con- ditions there existing, and the order followed the prayer, with a few extra dashes and colors. If obeyed according to its letter and spirit, it completely stilled the tongues and paralyzed every activity of the defendants and of their associates and sympathizers. No one reading this record can fail to see that neither the corpus nor the possession of property was endangered or threatened and that the sole purpose of the proceeding was to exile from the district all not willing to renounce their union connections and peacefully and submissively accept em- ployment with the company on its own terms and conditions. Such complaints and orders have common phases, features, and purposes. The injury to property is seldom the thing sought to be provided against, nor is the protection of property or property rights the object in view. Organized strikers always respect property rights. They seldom even disturb peaceful possession. The purpose of these suits is the unfair use of a powerful weapon against labor's side in these legitimate trade conflicts. Kule 86 of the Supreme Court, placed in the Senate hearings at page 68, contains nothing in conflict with the provisions of this section, and the two Supreme Court decisions which I have cited may be treated as a proper construction of the rule. 26 PENDING BILLS FOE REGULATING INJUNCTIONS. IRREGULARITIES IN BRINGING IN PARTIES DEFENDANTS. t I wish, now to point out in a more general way than heretofore the evils which have resulted, and are likely to continue to result, in the matter of parties defendants. Men have been hauled before courts and fined and imprisoned for acts which, though within the terms of an injunction, were not necessarily connected with the controversy between the parties. It is obvious that hi such a case the judge assumes jurisdiction to try the party without indictment, information, or jury, himself the sole judge of the party's guilt, and his will, sometimes his prejudice or passion, the measure of punishment. It is also clear that such a practice might be so extended that jury trials and the usual formali- ties in criminal cases, always deemed essential to the preservation of freedom, might be entirely eliminated, especially in times of strife and excitement, and each judge of a court of equitable powers become an absolute sovereign within his domain. Much needless fear is exhibited by Mr. Hines, counsel for certain railroads, because of the alleged difficulties of obtaining the names of those who are to be enjoined and of procuring service upon them where a railway strike occurs. His information with respect to the mode of living of railway employees and their residential status appears to be more limited than that of the average citizen having no connection with railroad business. He grossly exaggerates the difficulties and inconveniences of reaching and serving those whom it is found or thought necessary to serve in case of the issuance of an injunction or restraining order. The facts, as any railway employee except, perhaps, Mr. Hines, knows are that the nature of the employ- ment is such that permanency of residence is absolutely necessary in the case of any employee whose employment is not merely temporary and free from personal responsibility. Moreover, there can never be the slightest difficulty in getting their names and addresses. It would be shown by the pay rolls. Nor is there anything in the asser- tion that the operations of a railway strike extend over an extensive territory. Such is seldom the case, but even where that condition exists the inconveniences of getting service are negligible. With respect to such acts of vandalism as damaging engines and boilers and separating the cards attached to freight cars, no injunction could anticipate them, no matter how completely or promptly served. Section 266c naturally divides itself into two separate and dis- tinct propositions, contained in two paragraphs, the first of which reads thus: SEC. 266c. That no restraining order or injunction shall be granted by any court of the United States, or a judge or judges thereof, in any case between an employer and employees, or between employers and employee, 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 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. The words occurring therein ' ' between an employee and employers or between employers and employees, or between 'persons employed and persons seeking employment, involving or growing out o:* pute concerning terms or conditions of employment" we f a dis- were con- PENDING BILLS FOB REGULATING INJUNCTIONS. 27 stantly called to the attention of the committee by counsel in oppo- sition as a feature giving the bill the distinctive stamp *of class legislation. vVere it not for the discriminations between classes in exercising the jurisdiction, this provision, like many others in the bill, might be stricken out without great public detriment. The paragraph would then state the law as it is uniformly administered between parties where no labor dispute is involved. In many cases where employers seek injunctions against laborers with whom they have a dispute the language of this paragraph is turned around to read thus: That restraining orders and injunctions may be freely granted by the cuorts of the United States, or the judges thereof, in any case between employers and employees, * involving or growing out of a dispute concerning terms or conditions of employment, whether necessary or not to prevent irreparable injury to property or a property right, the party making the application, being a business man, whether or not the party has an adequate remedy at law. In such case no property or property right need be particularly described or even mentioned in the application. The first clause of this paragraph to which I shall direct special attention reads thus: 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. I will call attention to High on Injunctions, fifth and latest edition, section 20b, which is a new section, and to a long list of authorities therein cited, old and new. He says: Equity has no jurisdiction to restrain the commission of crimes or to enforce moral obligations and the pt.i'ormance of moral duties, nor will it interfere for the prevention of an illegal act merely because it is illegal; and in the absence of any injury to property rights it will not lend its aid by injunction to restrain the violation of public or penal statutes or the commission of immoral and illegal acts. Speaking of the remedy by injunction, Pomeroy says: It is necessary to show irreparable injury to a substantial property right, and if such injury is not clearly made out, relief will be refused. (Pomeroy Eq. Juris., vol. 5, sec. 323.) As equity deals with property rights alone, an injunction will not issue to restrain political acts of public officers. (Pomeroy Eq. Juris., vol. 5, sec. 324.) Having shown by these authorities that equity protects property and property rights only, the next proposition is that "Business is not property or a property right." Authorities: E. & A. Encyclo. L., p. 59; E. & A. Encyclo. L.,p. 251 ; Bouvier's L. Diet., title "Property'' ; Black's L. Diet., title "Business"; Schuback v. McDonald, 65 L. R. A., 136; Worthington v. Waring, 157 Mass., 421. Legally speaking, what is property ? What is a property right ? I will first discuss the property right. It is a right essentially connected with property, and I emphasize these words entirely dependent upon the ownership legally or equitably of property. Such being the essential characteristic, there is no real difference between property and the property right. Whoever owns the right owns the property, legally or equitably. In the English and American Encyclopedia of Law, at page 59, we find this definition of property: Property means that dominion of indefinite right of user and disposition which one may lawfully exercise over particular things or subjects, and generally to the exclu- sion of all others. Property is ownership^, the exclusive right of any person freely to use and enjoy and dispose of any determinate object, whether real or personal. 28 PENDING BILLS FOB REGULATING INJUNCTIONS. From Bouvier's Law Dictionary (latest edition) I read the following definition of property: The sole and despotic dominion which one man claims and exercises over the external things of the world in total exclusion of the right of any other individual in the universe. The right to possess, use, enjoy, and dispose of a* thing. On page 261 of the English and American Encyclopedia we find this definition of the property right: In its proper use the term "property right" applies only to the rights of the owner in the things possessed. Now, let's ascertain how business is defined and we shall see that it does not come within either of these definitions. Black's Law Dictionary : * * * A matter or affair that engages a person's attention or requires his care; an affair receiving or requiring attention; specifically, that which busies or occupies one's time, attention, and labor as his chief concern; that which one does for a live- lihood; occupation; employment; as "his business was that of a merchant"; to carry on the business of agriculture. That which is undertaken as a duty or of chief importance, or is set up as a prin- cipal purpose or aim. For instance, "the business of my life is now to pray for you." (Fletcher, Loyal Subject IV, 1.) Black, -Anderson, Bouvier, Century, and Webster, all the lexi- cographers, agree in their definitions of property and business. Business is of innumerable forms. It may be incident to the ownership or use of property or entirely foreign to such use and ownership. It is the business of the naturalist to travel and investi- gate. What I am now doing and what the members of this com- mittee are doing is business, just as much as what any employer of labor is doing or has been doing. All of any employing corporation's property, including its good will, its assets, is the product of labor, rart of that labor and not part of that property is the doing of business. One element of all the definitions of property is that it may be disposed of; that is to say, it is assignable. The only exception is in the case of what is known as a pure equity. One's business has no quality of an equity, and so that need not be considered. Hence, lacking the essential element of assignability, it is neither property nor a property right. It is an indeterminate natural and personal right. If a man die, all his property, including the good will, if any, created by exercising the rights to labor that is to say, by exercising the rights to do business is distributed to his next of kin or devisees. But his business ends. It is gone forever. This applies to men of all conditions and classes. Within the legal definitions there is hardly a man in the world without a business. Even if a man be sick and bedridden, he has as his chief concern to get well if he can. The reasoning in boycott cases is the same as in strike cases. For the same reasons that an employer has no vested or property interest in his employees or ip their capacity to serve him, a dealer has none in his customers. Now, let us take any boycott case before a court for an illustration of my argument. Nobody is threatening to injure the plant or other real property of plaintiff. What is left as property or as a property right to support the action for an injunction ? Merely that imaginary thmg the plaintiff's business. PENDING BILLS FOE REGULATING INJUNCTIONS. 29 Now, I undertake to demonstrate, as a legal proposition, that busi- ness is a mere abstraction and" is not and can not be proved or argued into the legal meaning of property or property right by any amount of proof or argument. I have sought in the opinions of judges a good expression of my idea, and found it in Schubach v. McDonald (a Missouri case reported in 65 L. R. A., p. 136), where the court, speaking of the right which can be made the oasis for an injunction, said : The abstract right must assume a concrete form before it became property in the judicial sense, capable of judicial protection. If "business" be not property, much less is the abstract right designated as "the right to do business." The right to do business clearly belongs hi the class of personal rights; for instance, with one's right to practice law, his right to travel. A complainant's business and right to do business are as unsubstantial and purely ideal and personal as that of a metal polisher or foundryman to seek and obtain employment. As the question of judicial interference in disputes between lab or and capital has never been discussed in any of the cases with any special reference to this point, and as judicial views as well as the decisions, are in conflict, I desire to illustrate this point, and I will begin with a truism and a maxim. My truism is that each man is the equal of every other man before the law. My maxim is that "Equity delight- eth in equality." Now, for the illustration. Here is a man; we will say his name is Smith. He enters the employ (as a polisher) of Mr. Jones, who was the proprietor 30 years ago of a stove factory. By entering such employment he becomes a business man as well as an employee. He is engaged in a business pursuit. He is not engaged in philanthropic work, but business. Polishing stoves is his business. In other words, he is exercising the right to do business. He has police protection against personal annoyance. Would anyone be so absurd as to contend that he could protect by injunction his bare right to polish stoves; that is, his right to accept employment and perform the duties of a stove polisher ? He receives his compensation m definite stated sums at stated periods. There is Mr. Jones, his employer. He stands in the place of the corporation, subsequently succeeding Mr. Jones in business, and the illustration holds good. Mr. Jones works at the same establishment, but mostly with his brains. He gets his pay in the form of profits when there are any. His pay is uncertain and somewhat speculative as to its amount, but that is whoUy immaterial. As to all his tangible property, real and personal, and as to all his property rights, sucn as choses in action and incor- poreal hereditaments, he may in a proper case be protected by injunc- tion, but not as to his personal right to do business. We will suppose that Mr. Jones dies and the corporation takes his place as proprietor and takes over the business. It of course suc- ceeds to no greater personal right to do business than its predecessor enjoyed or that any other business man enjoys. Mr. Brown becomes president and continues devoting labor to the business. He is as much entitled to in junction to protect his employment as Smith, the polisher, to protect his job, or as the corporation to protect its busi- ness; that is to say, the corporation has no such right. The magnitude of the corporation's business cuts no figure. It is in no better position than a match peddler in this respect. 30 PENDING BILLS FOE REGULATING INJUNCTIONS. Suppose now that Smith that's the polisher, the employee hears that the corporation intends to discharge him and files a bill to enjoin it. The corporation's managers would be utterly astounded, as well they might be. And yet that corporation has no more a vested or property right in that abstract thing called business than the workingman has in the use of his hands and faculties. Now, urely it will not be contended that the courts can discriminate in this matter or that any chancellor could establish what we term discrimi- nating, or, to use a vulgar phrase, "jug-handled," equity. At the Fifty-ninth Congress the question of good will and the mooted question of its connection with the right to do business, again brought up before the Senate committee, was brought up and met by me, I think, fully; and any member of this committee will be furnished with a copy of my argument in answer to Mr. Daven- port on that subject. At the close of the Fifty-ninth Congress I presented and filed a reply to a report to a subcommittee which brought up that proposition, and I went into it still more elabo- rately. A copy of that can be obtained by any member of this committee, and I will take special pains to see that any member of the committee that wants it gets a copy. The opposition to the bill have seemed to acknowledge their error in confounding good will and business after hearing the distinction clearly pointed out, as it was by me, both at the hearing in the fifty-ninth" session and in my reply to the report of the subcommittee filed at the same session. At any rate, they nave ceased to harp on it. Good will and business are clearly distinguishable. It often requires some legal acumen to distinguish between things which are similar and yet not identical. But there should be none here. Our conceptions of the difference between good will and business ought to be clear. Permit me to call attention to a fact which ought alone to remove good will from the domain of discussion. No case of injunction growing out of a labor dispute can be found in which the good will was ever referred to, and, indeed, it is impossible to conceive of an attack being directed against the good will by the disputants on either side of such a controversy. Good will as property is produced in the same way that any other property is produced; that is, by labor, by exercising the right to do business. In fact, the good will is a mere fiction as property, and under the modern regime of trade-marks and trade names and registry laws for these the good will never alone becomes the subject of litigation. The trade name covers the good will and is practically the only evi- dence of its existence. There can not, in the nature of the case, be am r infringement of the property right in good will separate and distinct from infringement of the trade name. Infringement can only consist in duplication or simulation. It is enjoined because it is a fraud upon the public as well as upon the owner of the trade name. An infringe- ment is never involved in a dispute between employers and employees nor in any matter involving, relating to, or growing out of a labor dispute. The good will, after its creation, through the exercise of the right to do business, being property, may be sold or inherited after the business is terminated. For illustration, I could cite the case of a PENDING BILLS FOR REGULATING INJUNCTIONS. 31 large publishing house in New York which, after a long and successful career, failed in business, its failure having resulted mainly from dis- agreements with its employees; but the most valuable asset of the insolvent after its doors were closed was its good will, and that was sold to a new companv for a large sum. In Worthington v. Waring (157 Mass., 421) we have a case whose principle and language is a statement in a slightly different form from that I have been using. The facts appear in the part of the opinion I am about to read: We take the substance of the petition to be that the petitioners were weavers by trade and had been employed by the Narragansett Mills, a corporation in Fall River, and that they demanded higher wages, which the corporation refused to give; and they then left work, and th'e defendants sent their names to- the officers of other mills in Fall River, on a list which is called a "black list," and which informed these officers that the petitioners had left the Narragansett Mills on what is called a "strike"; whereupon the defendants conspired together and with the officers of other mills, and agreed not to employ the petitioners, with intent to compel them either to go without work in Fall River or to go back to work for the Narragansett Mills at such wages as that corporation should see fit to pay them. It does not appear by the petition that any of the petitioners had existing contracts for labor with which the defendants interfered. If the petition sets forth such a conspiracy as constitutes a misdemeanor at common law on which we express no opinion the remedy is by indictment. If the injury which had been received by the petitioners at the time the petition was filed constitutes a cause of action on which we express no opinion the remedy is by an action of tort, to be brought by each petitioner separately. The only grievance alleged, which is continuing in its nature, is the conspiracy not to employ the petitioners, and there are no approved precedents in equity for enjoin- ing the defendants from continuing the defendants either to employ the petitioners or to procure employment for them with other persons. (See Workman ?>. Smith, 155 Mass., 92; CarletonV Rugg, Mass., 550, 5 L. R. A., 193; Smith v. Smith, 148 Mass., 1; Raymond v. Russell, 143 Mass., 295, 58 Am. Rep., 137; Boston Diatite Co. v. Flor- ence Mfg. Co., 114 Mass., 69, 19 Am. Rep., 310.) It is plain, however, that the peti- tion was drawn with a view to obtain some equitable relief. It is well known that equity has, in general, no jurisdiction to restrain the commission of crime or to assess damages for torts already committed. Courts of equity often protect property from threatened injury when* the rights of property are equitable or when, although the rights are legal, the civil and criminal remedies at common law are not adequate; but the rights which the petitioners allege the defendants were violating at the tune the petition was filed are personal rights as distinguished from rights of property. Since we have here become so accustomed to the use of the word boycott, I beg leave to submit that here was an instance of a boy- cott one of the most vicious and reprehensible imaginable only it was called a black list. In the Debs case it was not held that a court could, without property right as a basis, enjoin a body of strikers. On the contrary, it was clearly recognized that a basis of property right was essential. In that case (158 U. S. P., 583) the court said: It is said that equity only interferes for the protection of property and that the Gov- ernment has no property interest. A sufficient reply is that the United States have a property in the mails, 'the protection of which was one of the purposes of this bill. And the court proceeds to discuss such property in the mails, citing cases. All such cases as the Debs case, all obstructions of railway trans- portation, can be enjoined by the Government if this bill should pass as before. (See Debs case, 158 U. S., 587, and cases cited.) In- junctions will issue in such cases as heretofore, not only to protect property, but because such obstructions constitute public nuisances. 32 PENDING BILLS FOE REGULATING INJUNCTIONS. In the memorandum of authorities placed in the record by Mr. Hines we find an extract from section 20 of High on Injunctions, reading thus: The subject matter of the jurisdiction of equity being the protection of private property and of civil rights, courts of equity will not interfere for the punishment or prevention of merely criminal or immoral acts unconnected with violations of private rights. This was produced to give a color of justification to the use of injunctions in labor disputes for the assertion and enforcement of such personal rights as that of doing or continuing business, inasmuch as they belong to the class designated "civil rights." But if the whole of that section 20 were inserted it would clearly appear from the context that the purpose of using the words "civil rights" was to exclude from the category of acts which might be enjoined those rights which are infringed by criminal violations of the law. This is also shown by section 20b of the same authority, as before quoted by me. It has been often remarked that liars should have good memories. This does not, of course, refer to the counsel in opposition to the bill, because from the nature of their employment they must be regarded and treated as eminently respectable members of the bar. But they appear unable to avoid occasional lapses of memory in recitals of then' respective parts in the farce of killing time before committees and during those lapses inadvertently admit the fundamental limi- tation of equitable jurisdiction to property rights. As instances in point, I quote the following: Mr. MONAGHAN (p. 87). Under and by virtue of the Constitution of the United States no citizen can be deprived of life, liberty, or properly without due process of of a restraining order to the end that his property may be preserved. The denial of this right is a denial of due process of law. Mr. DAVENPORT (pp. 22, 23, pt. 3). Under the decision of the United States in this Adair case, and supported by a very large number of decisions everywhere, those things that in the Pearre bill were sought to be declared not to be property rights are property rights, and would be covered by the first clause of this bill. But the bill goes on, then, "to say that a certain class of acts attacking your property shall not be enjoined against, and this is the way it reads. Senator SUTHERLAND. May I interrupt you again? I had understood I do not know where I saw it or where I heard it that it had been claimed that the provision in this bill now pending, with reference to property rights, would not include the right to do business. I wondered what the foundation of that was. Mr. DAVENPORT. In construing this bill I suppose the courts would say that what the courts have said time out of mind are property rights would be covered by that first section, and that when it says that unless to prevent irreparable injury to property or to a property right whatever fell within that definition of property would be cov- ered by the terms. Senator ROOT. You dp not find anything in this language, do you, which under- takes to change the law in that respect? Mr. DAVENPORT. Not in that respect. Mr. HINES (pp. 30, 31). Limitation to property rights seem designed to exclude remedies to protect the person and to protect personal freedom, although those rem- edies are particularly necessary in labor disputes. The limitations absolutely to property or to property rights seems to narrow, at least somewhat, the basis for equitable intervention. Pomeroy, in the sixth volume of his work on equity, page 579, seems to recognize that equity will intervene to protect the right of personal freedom of a man to come to and from his work and puts the intervention on the ground of protecting that element of personal freedom. We find in other cases the general statement that while equity jurisdiction will not be PENDING BILLS FOE REGULATING INJUNCTIONS. 33 exercised for the enforcement of criminal law, yet it may be exercised for the pro- tection of civil rights. It is true generally, and perhaps it is particularly true in the case of a railway company, that it will always be possible to demonstrate the existence of a property right; but nevertheless, if the general doctrine of equitable intervention is somewhat broader than that, it seems particularly unwise to put this limitation here, where undoubtedly one of the things which is most infringed is the right of personal liberty. The CHAIRMAN. Would that term include the mere right to do business; for exam- ple, where a man "has a stock of goods, the goods themselves not being interfered with? Could you say that the right of that man to continue his business and dispose of his goods was a property right? Mr. HINES. I should say it would be an open question in the construction of this section. Undoubtedly he has a right equity ought to protect, and this section would seem to make it a question whether it is such a right that equity would protect in the labor disputes. The point I urge is, in view of the doubt that is cast upon the extent of the foundation of equitable interference in these cases, that the provision ought to be omitted, because if there is any class of cases where equity ever goes beyond these bare property rights, certainly this is the class of cases where it ought to do that thing, because the things that are 'involved here are so largely matters of liberty and so largely matters of protection of the persons of individuals who ought to be regarded as entitled to equitable protection when no other remedy is available. Mr. DILLARD (pp. 8 and 9, pt. 3). I trust it will not be extended; I hope it will not be. I desire to call attention to the fact, however, in passing, and in doing so to say this: The purpose of the injunction sought is, we will say, for the preservation of property. This being true, if it appears to the judge by a preponderance of the evi- dence that irreparable injury is likely to result, that property is likely to be destroyed, then it would seem to me sufficient foundation has been laid for the issuance of the injunction. Senator 0' GORMAN. I have always understood that to be the accepted rule in all jurisdictions, and the case you speak of seems to be the exception. Mr. DILLARD. I am sure the rule as I stated it has been held in several jurisdictions. Counsel in opposition are utterly destitute of English authority for their extraordinary, contention that injunction can properly issue to protect the mere right to do business and other personal rights. There are none, and consequently none are produced. But in an effort to make plausible an objection against a point of practice covered by a provision in the bill they bring forward two decisions of the Supreme Court establishing one of the most important propo- sitions for which labor has ever contended, namely, that nothing has been added to the jurisdiction in equity since the adoption of the Constitution. Mr. Monaghan quoted from Pennsylvania v. Wheeling Bridge Co. (13 Hows., 563) as follows: In exercising this jurisdiction the courts of the Union are not Umited by the chan- cery system adopted by any State, and they exercise their functions in a State where no court of chancery has been established. The usages of the high court of chancery in England, whenever the jurisdiction is exercised, govern the proceedings. This may be said to be the common law of chancery, and since the organization of the Government it has been observed. Mr. Herrod quotes the same doctrine from the Debs case (158 U. S., 564) and cites Mississippi, Mills v. Cohn (150 U. S., 202). ERRONEOUS DECISIONS HAVE ORIGINATED BY LOSING SIGHT OF FUNDA- MENTAL PRINCIPLES. I cite: Kidd v. Horry, 28 Fed. K., 774; Arthur v. Oakcs, 63 Fed. R., 310; Nat. Protect. Assn. v. Cumming, 170 N. Y., 315; 58 L. R. A., 135. It will be found upon close scrutiny of the cases that in many of the State cases where injunctions were issued in labor cases the juris- 57039" 12 3 34 PENDING BILLS FOB REGULATING IN JT NOTIONS. diction was acquired under statutes expressly conferring the juris- diction and that they found sanction in the decisions of the English courts, which was likewise conferred by statute. And the Federal judges in, I dare say, the most of the cases overlooked this fact and based their decisions on precedents which, if they had been closely scrutinized, would have been found not authoritative. Attention is also called to this by Mr. Justice Bradley, presiding at circuit in Kidd v. Horry (28 Fed. R., 774). The English statute, after which some of the State statutes are patterned, reads in part as follows: In all breaches of contract or other injury, where the party injured is entitled to maintain and has brought an action, he may claim a writ of injunction against the repetition or continuance of such breach of contract or injury, etc. In part, Justice Bradley said in Kidd v. Horry: As the high court of justice established by the judicature act of 1873 was an amal- gamation of all the courts of original jurisdiction of Westminster Hall, including the court of chancery, which became merely one of the divisions of the high court, it fol- lows that the court of chancery became invested with the jurisdiction which was given to the common-law courts by the common-law procedure act of 1854, and hence became invested with the power to grant injunctions to prevent the continuance or repetition of an injury which was actionable in any court, and for which an action was brought, although the power to grant injunction in cases of libel was resisted, in several instances, by very nigh authority; as in the case of Prudential Assur. Co. v. Knott (10 Ch. App., 142), by Lord Chancellor Cairns and Lord Justice James, and in that of Bcddow v. Beddow"(9 Ch. Div., 89), by Sir George Jessel. The practice of issuing such injunctions, howeyer, finally prevailed. This statute law of Great Britain is sufficient to account for the English cases relied on by the complainant, and is undoubtedly the basis on which they really stand. The error in the first of these decisions occurred in the same way that most erroneous decisions are given; that is, by overlooking fun- damental principle and failing to reexamine the ancient and well- established boundaries of the jurisdiction. If we go back to the period of the struggle between the law and chancery courts, we find the limitation of equity in injunction cases to property and property rights often referred to and discussed. Subsequently it was so well understood that it was deemed neces- sary to only occasionally refer to it. Bulwarks of erroneous deci- sions have been erected on other subjects, to be subsequently demol- ished. Some isolated erroneous decision was tamely and blindly followed as a precedent, without investigation as to whether it was sustained by principle or not, the supposed exigency or hardship of a case before the court being elaborated and the 'precedent being accepted as binding, or if not binding, at least strongly persuasive. Next we have the requirement added to the foregoing provision that the restraining order or injunction shall not be granted unless the property or property right be described in the complaint or appli- cation "with particularity." Much error and abuse in labor cases are due to defects and shortcomings of complaints upon which re- straining orders and injunctions are granted at the outset. I deduce three causes, any one of which, or all together, may operate to bring about the miscarriage of justice seen in each instance. These are, first, an insufficient complaint; second, a mistaken view of duty as a matter of law; third, an unfortunate environment preventing a comprehensive view of the rights of citizenship, or a false conception of the relation between capital and labor. But I discuss now only the insufficiency of complaints. PENDING BILLS FOE EEGULATING INJUNCTIONS. 35 I may safely assert, as a general proposition to which, if there be an exception, I have not seen it, that on two essential facts in all the cases the complaints are insufficiently specific to warrant the grant- ing of the relief prayed. The complaints do not show (1) specifically that any property or property right is menaced with injury, or (2) in what way or by what means an irreparable injury would result if the alleged threatened act were done. INSUFFICIENT DESCRIPTION OF PROPERTY RIGHT. I need not here make any such point as that the right to carry on business is not property. For present purposes that is to say, in this immediate connection that is waived. But I make the point that the allegations in the complaints with reference to property and property rights are insufficiently specific. In Hitchman Coal & Coke Co. v. Mitchell (172 Fed. Rep., 963), in which one of the restraining orders already noticed was granted by Judge Dayton, taking that as fairly representative, the complaint recited that the complainant owned valuable coal mines, mining machinery, etc., that it had large capital invested, that its operations were extensive and its sales large. Figures of aggregates were given in connection with some of the recitals and there was a general asser- tion of damages. No interruption of its operations was alleged up to the date of fifing the complaint, nor any shown to be imminent. Whether, therefore, any property or property right was involved at all in what the defendants were alleged to be doing was left to infer- ence and conjecture. DEFECTIVE ALLEGATIONS OF IRREPARABLE INTURY. But the complaint fell stiU further short of the legal requirement that irreparable injury must be specifically alleged. Nothing is better understood, as the authorities used in the report from the House committee show, than that a mere general allegation ot irre- parable injury is not sufficient. And yet that is all that the com- plaint in trie Hitchman case contained. The complaint asserted, as also in the case of Adams v. Typothetae of America, brought in the District of Columbia, that the strikers were under contract, which, by striking, they were violating; but it will be borne in mind that a long line of decisions, among which is Arthur v. Oakes, has settled the rule that courts have no power to forbid men to strike merely because of their being under contract to serve for a term which has not expired, and any other rule would violate the constitutional amendment against slavery and involun- tary servitude. And there is another reason recognized in all other cases, but too often ignored in strike cases, namely, that a violated contract is compensable and hence reparable in damages. But there is ordi- narily, in fact, no damage or injury whatever in strike cases, because the injury actually suffered is such as was designated in National Fireproofing Co. v. Mason Builders' Association and other cases, as damnum absque injuria; that is to say, injury- suffered by a party by action of another in the exercise of a lawful right. The complaint in the Hitchman case, like those in many others examined by me, was, notwithstanding its glaring defects, exceed- 36 PENDING BILLS FOE EEGULATING INJUNCTIONS. ingly verbos^ and voluminous, as if to make up in quantity what it lacked in quality. But it and the others contained the defects above noted and others as well. To take up even one of these cases, analyze the pleadings, and apply the law to the many and complicated facts, and then present the arguments necessary to overthrow the fallacies of counsel and subtle errors which have crept into the decision of the court, would bs a serious and stupendous undertaking. The fact is not to be over- looked that the wealth of the complainants hi these cases enable them to employ the ablest counsel, to produce witnesses without limit, and to make extensive preparation precedent to sending out the thunder- bolt in injunctive form; also that strikers have not the advantages and facilities just mentioned at hand to meet such a situation. There is always present the most important fact of all that whether an injunction be issued rightfully or wrongfully, it usually does its fatal work, paralyzes the defendants, and ties the hands of their leaders, before even such presentation as they could make is heard. Hence the importance of the establishment of correct rales to govern the courts, the same to be in force before the injunction or restraining order issues; hence also the importance and justification of the prohibitions contained hi the second clause of section 266c. IMPORTING A NEW ELEMENT INTO STRIKE CASES. Of recent years counsel for employing corporations became con- scious that, without the importation of a new theory or doctrine into the law, most of the applications for injunctions in strike cases must be denied, upon well settled principles. Hence they imported the element of motive, and made a distinction founded upon the purpose or incentives with which a strike was instituted. They undertook to analyze the feelings at work in the bosoms of the strikers. It must be apparent to ah 1 fair-minded and thoughtful members of the legal profession that where the thing done is itself lawful the motive with which it is done or undertaken is unimportant, and that to allow courts of equity to sit in judgment upon the question of mental attitude in such cases is to completely unsettle all the law governing them and set up the chancellor in the midst of the labor organization at the inception of a strike as an arbiter of their con- duct as well as a controller of their fates. It is not difficult to foresee the utter disruption and dispersion of labor organizations and com- plete failure of ail efforts of workingmen, through organization and association, to improve conditions if the attitude toward them thus assumed by the courts be maintained and no relief he afforded by legislation. It is exceedingly difficult to see or even to admit any consistency or possibility of a reconciliation between the -views of those who stand for such a doctrine and their professions of a belief in the right of wage earners to freely assemble, to discuss without restraint those business and social matters which vitally concern them, to form and maintain an organization ; in short, to exercise in a collective or organized capacity any rights except such as are purely academic and consistent with subjection to ^uch industrial conditions as employers choose to impose upon them, however tyrannical, miserable, and inhumane. PENDING BILLS FOB REGULATING INJUNCTIONS. 37 If the Federal judges, sometimes overawed by the presence before them as litigants of financial magnates and powerful interests, and often unduly impressed with the importance of large property in- terests and the promotion of commercial prosperity as against the lesser interests of labor, are to pass upon the motives or moral in- centives instigating labor's side in a labor dispute, then every word and act at their assemblages and meetings are proper subjects for investigation and scrutiny, such, and only such, allowance to be made for human frailty, excitement, passion, and bias of self-inter- est as the judge sees fit to make. Under such a dispensation what becomes of the constitutional guaranty of free assemblage, freedom of movement, and free speech ? What becomes of the prohibition against involuntary servitude embodied in the thirteenth amend- ment, so eloquently expounded in Robinson v. Baldwin (165 U. S., 292), and more recently in Arthur v. Oakes (63 Fed. R., 310) ? Could any more complete and despotic one-man power over or- ganized labor be conceivable than will result if this new absolutism be not stayed ? It was first evolved and enforced by Judge Taft in Mopres v. Bricklayers' Union (10 Ohio Dec., 165; 23 Ohio L. J., 48), while he served as a judge of the superior court at Cincinnati, and was followed up in similar cases decided by him while on the Federal bench. The language of Judge Xoyes in National Fireproofing Co. v. Mason Bricklayers' Association (145 Fed. R., 260) is the mildest and most reasonable statement of that false doctrine that we have found. And yet it is not difficult to see that if the question of whether, in deciding to strike, the men are influenced by good or bad motives, is to be judicially injected into a case, it means the trial in each instance of an issue of reasonableness or unreasonableness of their demands upon the employer and gives the court an almost unlimited discretion. Especially is this so since there is no jury trial in such cases, they being treated as of purely equitable cognizance. Another and more recent application of this device for dealing with strikers is found in Paine Lumber Co. v. Xeal, in which an injunction was issued in the southern district of Xew York in October, 1911, but not yet reported. But there have been many such subsequently to Moores v. Bricklayers' Union. I can not discuss them with any attention to details, although some account of them can be found in the hearings before the House Judiciary Committee, especially those the Fifty-ninth and the present Congresses. It is well, however, to state and to show that the new element above discussed has not been admitted into such cases without differences among the judiciary and a consequent conflict of authority. While the tendency to accept it as settled law is clearly eA'inced in a few Fed- eral decisions, a respectable number, if not a majority, of the State courts of last resort which have spoken have rejected it. Xow, let us carry along in adverting to a few State cases what Justice Bradley said in Kidd v. Horry, already cited, and remember that if I have a legal right to do an act my motives are absolutely immaterial. In McCawley Bros. v. Tierney (19 R. I., 255) the court said: To maintain a bill on the ground of conspiracy, it is necessary that it should appear that the object relied on as the basis of the conspiracy or the means used in accom- plishing it were unlawful. What a person may lawfully do a number of persons may 38 PENDING BILLS FOR EEGULATING INJUNCTIONS. unite with him in doing without rendering themselves liable to the charge of con- spiracy, provided the means employed be not unlawful. In Clemmitt v. Watson (14 _lnd. App., 38) the court, in passing upon the conduct of the defendants in a strike case, said: What each one could rightfully do, certainly all could do if they so desired, espe- cially when their concerted action was taken peaceably, without any threats, violence, or attempt at intimidation. Chief Justice Parker, speaking for the court of appeals in National Protective Association v. Gumming (170 N. Y., 315), said: Whatever one man may do alone he may do in combination with others, provided they have no unlawful object in view. Mere numbers do not ordinarily affect the quality of an act. In Vegelahn v. Guntner (167 Mass., 92) Justice Holmes, now of the Supreme Court, but then a member of the Supreme Judicial Court of Massachusetts, hi a dissenting opinion, said: But there is a notion, which lately has been insisted upon a good deal, that a com- bination of persons to do what any one of them lawfully might do by himself will make the otherwise lawful conduct unlawful. It would be rash to say that some as yet unformulated truth may not be hidden under this proposition. But in the general form in which it has been presented and accepted by many courts I think it plainly untrue, both on authority and on principle. In Lindsay & Co. v. Montana Federation of Labor (37 Mont., 273) the Supreme Court of Nebraska said: But there can be found running through our legal literature many remarkable statements that an act perfectly lawful when done by one person becomes, by some sort of legerdemain, criminal when done by two or more persons acting in concert, and this upon the theory that the concerted action amounts to a conspiracy: but with this doctrine we do not agree. If an individual is clothed with a right when act- ing alone, he does not lose such right meiely by acting with others, each of whom ia clothed with the same right. If the act done is lawful, the combination of several persons to commit it does not render it unlawful. In other words, the mere combi- nation of action is not an element which gives character to the act. A review of judicial history bearing on the question immediately under consideration discloses that this modern doctrine of the Federal courts and some of the State courts is a resurrection, to meet the sup- posed necessities of particular cases, of an ancient English decision holding that the preconcerted refusal of certain workingmen to con- tinue their employment, even though an advance of wages was their object, constituted a criminal conspiracy, which was an indictable offense at common law, although the same act done by only one indi- vidual would not have been unlawful. (See Rex v. Journeymen Tai- lors, 8 Mod., 11.) Of course the case just cited is not the only case of that and the immediately ensuing period holding to that view; but a further investigation discloses that most or all of them were con- trolled by drastic and harsh statutory enactments of that period. Judge Parker called attention to this and to probable neglect of the courts to note the statutory origin of these early English decisions in the case decided by him as before cited. The next clause requires that ''the application must be in writing and sworn to by the applicant or by his agent or attorney." Many allegations in complaints and affidavits filed in labor cases are made upon information or belief, which is a vi >lati >n of well-settled rules of pleading. No provision in this bill is aimed at that reprehensible practice. It was probably thought that none was needed because defendants may always make that defect a ground for objection. PENDING BILLS FOR REGULATING INJUNCTIONS. 39 The defect can be seen in bills of complaints placed in the hearings by counsel in opposition at the present session. The second paragraph of section 266c reads as follows: And no such restraining order or injunction shall prohibit any person or persons 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 or near a house or place where any person resides or works, or carries on business, or happens to be for the purpose of peacefully obtain- ing or communicating information, or of 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 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 peace- ably assembling at any place 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. The words "and no such restraining order or injunction," in this paragraph, limits all that follows. First, the acts mentioned in this paragraph which can not hereafter be forbidden must be such as are done in cases where employers and employees, etc., are parties; and, secondly, such as are done in cases ' ' involving or growing out of a dispute concerning terms or conditions of employment." And the order or injunction shall not prohibit "any person or persons from terminating any relation of employment." I have already shown how the bogus element of malicious motive has been introduced into strike cases, and there have been some statements by opposition counsel, and consequently some misrep- resentation, as to what Justice Harlan actually decided in Arthur v. Oakes (63 Fed. R., 310, 317). But really there is no room for a misconstruction. He said: The rule, we think, is without exception that equity will not compel the actual, affirmative performance by an employee of merely personal service any more than it will compel an employer to retain in his personal services one who, no matter for what cause, is not acceptable to him for service of that character. The right of an employee engaged to perform personal service to quit that service rests upon the same basis as the right of his employer to discharge him from further personal service. If the quitting in the one case or the discharging in the other is in violation of the contract between the parties, the one injured by the breach has his action for dam- ages; and a court of equity will not, indirectly or negatively, by means of an injunc- tion restraining the violation of the contract, compel the affirmative performance from day to day or the affirmative acceptance of merely personal services. Relief of that character has always been regarded as impracticable. Sitting with Justice Harlan at circuit in that case were other learned jurists, but there was no dissent from these views. And in this connection I call attention to the priority of Judge Taft's decisions in Moores v. Bricklayers' Union, in the Thomas case, in the Toledo and Ann Arbor case to this decision of Justice Harlan. It would appear, however, that Mr. Taft has never seen or had his attention called to the decision in the Arthur v. Oakes case. This must be true, because the most recent expression of his views are directly opposed to those of Justice Harlan as expressed in that case. The most extreme opponents of effective legislation, formally at any rate, concede great latitude in the matter of severing the rela- tion of employer and employee; in other words, the right to strike. But they make the concession with reservations and qualifications which deprive their concession of nearly all its value. They say to the wage earners, "Yes; you may strike for a lawful purpose, but if 40 PENDING BILLS FOR REGULATING INJUNCTIONS. the circumstances give warrant to a belief that you are inspired by malicious motives in striking, then your act of striking falls within the definition of conspiracy." This view was fairly expressed by President Taft in the June number of McClure's Magazine, 1909 (p. 204). In that article Mr. Taft refers to several cases of injunc- tions granted by himself when a judge into which, for the purpose of giving effect to an injunction greater saction of authority, he had imported from afar the theory of a boycott and strike combined. But he finally reached the strike question pure and simple and showed his complete surrender and subservience to P. very thing that is extreme and nostile to workingmen in the shape of judicial utter- ance, by approving the doctrine of his own early decision hi which we first meet the strange doctrine that a court may inquire into the motives of strikers. In the same article he attributes the growth of organized labor in recent years to such injunction decisions as he had rendered in the Bricklayers', the Phelan, the Toledo and Ann Ar- bor, and similar cases. But he did not fairly or truly state the result of the Arthur case. He stated that "it was left open as an undecided question whether men who were inciting employees to quit then* employer in a violation of some legal duty might be re- strained from doing so." In that case the court clearly and emphat- ically denied the jurisdiction of a court of equity to restrain men from striking in violation of a contract, as is shown by words just quoted from the opinion. The twisting and perverting a boycott element into strike cases, a feature of every decision of Judge Taft, in order to give some color of legality to an injunction, subsequently became a feature of many strike injunctions. It was a feature in Fame Lumber Co. v. Neal in the District Court for the Southern District of New York, not offi- cially reported, and in Sailors' Union v. Hammond Lumber Co., decided by the circuit court at San Francisco in 1907. Opposition counsel, in referring to what Justice Holmes said in Vergelahn v. Guntner (167 Mass., 92), never omit to mention the fact that he was giving the opinion for the minority in that case, but never do mention the fact that these have since become the settled law in that State. I refer to Pickett v. Walsh (192 Mass., 572), already quoted. The next limitation upon the power of the courts to be noticed is that whereby they are forbidden to enjoin any person or persons "from ceasing to perform any work or labor." In discussing this provision Mr. Hines, as representative of the railroads, said: Section 10 of the act to regulate commerce imposes penalties not only upon the com- mon carrier which violates provisions of the act, but also upon agents or persons acting for or employed by such common carriers. Now, section 10 of the interstate commerce act contains many penal clauses of a similar character. Is each of them to stand as a separate argument against any legislation to regulate the issuance of injunction now and forever? It would be difficult or impossible ever to make any such regulations unless the regulation of interstate commerce and of the conduct of carriers were simultaneously aban- doned. It should be a sufficient answer to all that to say that the Constitution of the United States supersedes the jurisdiction of courts of equity and prohibits involuntary servitude. PENDING BILLS FOE REGULATING INJUNCTIONS. 41 Justice Harlan, in Arthur v. Oakes, said something about certain circumstances under which men might be enjoined even from strik- ing. Although it was a dictum, I respect it. He clumsily expressed the idea which Justice Holmes made clear in Aikens v. Wisconsin (195 U. S., 205). Any constitutional right may cease to become such when embraced within a comprehensive scheme of illegality. And that holds true whether or not a labor dispute exists. But here we must distinguish between a mere strike and a scheme of illegality extending beyond and outside the strike. A strike which includes trespassing or destroying property or interfering with possession and use of property can of course be enjoined in so far as the strike becomes a component part of the conspiracy, but no further. On the other hand, if the act in contemplation be merely a strike the motives are immaterial. The argument of Mr. Hines is too broad and is easily reducible to absurdity by extension to other duties or liabilities of railroad com- panies. A conclusive answer is that both the companies and em- ployees are subject to penalties, and the companies are not prohibited from discharging unfaithful employees. Human nature can not be dealt with by statutes, directing persons to continue in incompatible relations, or to endure intolerable condi- tions. The most solemn and formal contract is merely a social treaty, and contracts for personal service are in their very nature terminable. Specific performance through injunction process, even if practicable at all, would be a cruel remedy. Even with respect to domestic rela- tions, injunctions are confined to property rights. The next clause with its connection forbids an order or injunction to prevent any one "from recommending, advising, or persuading others by peaceful means, so to do"; that is, to terminate the relation of employment, or to cease to perform any work or labor. This is fully covered by what has been or will be said under other heads. We next have the prohibition against restraining or enjoining any person or persons "from attending at or near a house or place where any person resides or works, or carries on business, or happens to be, for the purpose of peacefully obtaining or communicating informa- tion, or peacefully persuading any person to work, or to abstain from working." The objections to this clause are based wholly on misconstruction. Indeed, the only way to even plausibly oppose it is to extend its mean- ing by false construction. Even without the word " peacefully," as here used, the courts would never construe it to authorize an illegal act. Counsel in opposition, either innocently or willfully overlook the fact that the formation of a conspiracy is itself an illegal act. And as to the difficulty of drawing the line between legality and illegality, it is not real but purely imaginary. At any rate, any practical difficulty of discriminating would be no reason for opposing the legislative asser- tion of a correct legal principle. (Hale v. Henkel, 201 U. S., 43.) Though out of its proper order, it seems more conducive to a clear understanding to here call attention to the last clause which qualifies and gives its tenor and tone to all the other clauses in the last para- graph. It will be for the courts to construe the section; and if any one attempts to defend a conspiracy, coercion, threats, or any illegal act however peaceable in form, because the word "peaceably" or 42 PENDING BILLS FOB REGULATING INJUNCTIONS. "peacefully" is used, the court will give effect to the entire section and read the last clause into every part of it as evidence that Congress did not intend to sanction as single unlawful act. The last stands as a saving clause, though appearing to be scarcely needed, since all the acts and conduct specifically mentioned in section 266c of the bill are lawful at all times and under all circumstances. \\ ho will say that it is unlawful for any one to terminate, for any cause appearing to him sufficient, the relation of employer and employee? If conditions become intolerable one should be, and is by law, excused for ceasing to perform any work or labor; and surely the giving of advice, whether wisely or unwisely, so to