S435 am THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES Trade Unions AND THE LAW. BY WARWICK H. DRAPER, M.A. (of Lincoln's inn, baebistbe-at-law). A Paper read in March, 1906, to the Members of the Hampshire House Social Club, by Hammersmith Mall, and the Peel Institute, on Clerkenwell Qreen. LONDON : STEVENS AND SONS, LIMITED, 119 & 120, CHANCERY LANE, ICato ^ublisl>ers. 1906. PRICE SIXPENCE. TRADE UNIONS AND THE LAW. BY WARWICK H. DRAPER, M.A., OF LINCOLN'S INN, BARRISTER-AT-LA'^. A Paper read in March, 1906, to the Members of the Hampshire House Social Club, by Ham,mer smith Mall, and the Peel InstitxUe, on Clerkenioell Green. LONDON: STEVENS AND SONS, LIMITED, 119 & 120, CHANCERY LANE, Hafo ^ubltdljctd. 1906, NOTE. This Paper was written in its entirety in the interval between the issue of the Report of the Royal Commission on Trade Disputes and Trade Combinations and the sharp debates in the House of Commons on the 28th and 30th March on the Government and Labour Party Trade Disputes Bills, which will be found in an Appendix. As an effort by way of " peaceful persuasion for the purpose of peacefully obtaining or communicating information," it evoked a keen exchange of diverse opinions among those, both unionists and non-unionists, for whom it was primarily pre- pared. They spontaneously asked that it might be printed, and I venture to have this done as a contribution to the public discussion of the questions involved. I write this fore-note on the morning after listening to the former of the debates above referred to, and I feel sure, if I may respectfully say so, that many members may have given pledges on the subject, no doubt honestly, but without ftill consideration of what is involved. The Labour Party will insist on seeing the question thrashed out, but they ought to recognize the fact that the important thing is not whether the " Taff Vale" decision altered the supposed law, but whether it does or does not lay down what social justice requires in accordance ^-ith both law and fair play. W. H. D. 12, New Square, Lincoln's Inn, 2'^th March, 1906. H3) (oHS G7]D7 TRADE UNIO^\S AND THE LAW. (Marcli, 1906.) The increment of Labour Eepresentatives in the British Parliament will, after all, remain the outstanding feature of the General Election of 1906. There is a certain pathos in the lament of the ancient nobleman who wrote to the authoress of some patriotic ballads that he was too distressed by the returns of the polls to read her verse, which he accordingly returned ! The wonder is that the working men of England, in their thousands, should have been so long in giving full play to their franchise. But impartial observers who during recent years have watched the ill-reported deliberations of the annual Trade Unions Congress, or have gauged the sagacity (or lack of it) of some of the well-to-do and even aristocratic supporters of the advanced Socialists, or, best experience of all, have come into personal touch at working-men clubs and institutes with men, unionist and non-unionist, to whom the aspirations and needs of " Labour " are a daily reality, do not pretend to be surprised at the new phase in politics. The native conser- vatism of the British temperament may be relied upon to prevent excess or extravagance in reform, but there is no doubt that Trade Unionism, strongly organised and forceful in fitting plans to ideas, will engage the attention of Parlia- ment and the public in anxious debate for many a day to come. That it cannot be otherwise must be admitted by A 2 405945 those wliose minds may be inclined, consciously or uncon- sciously, against the combination of working men, but must foci the cogency of such facts as that at the end of 1904 there were no less than 1,866,755 registered trade unionists in the country (6'7 per cent, of whom were women and girls) belonging to 1,148 unions, in spite of a declining membership in the smaller unions ; that contributions per head averaged 33s. 5d. in 1904 ; that the income and expenditure had both increased, the former to £2,097,470 and the latter to £2,042,000, while the accumulated funds stood in 1904 at £4,616,230, almost at £4 2.s. per member, or more than twice as much as in 1895. It is noteworthy that there has of recent years been a distinct increase in the groups of employes of public authorities and of shop assistants. The Board of Trade has sho-^Ti the following proportions of every £1 spent during 1904 on the objects of the 100 principal trade unions, viz. : — s. d. (a) Unemployed benefit . . .64 (b) Disputes . . . . .13 (c) Sickness, superannuation, &c. . 8 4 (d) Working expenses . . .41 It is not unimportant to note that this amount spent on disputes was less than one-fifth of that spent in 1897, prior to the legal decisions of which the cause of Trade Unionism chiefly complains. The unions actually affiliated with the Labour Representa- tion Committee have a combined membership of over 900,000, each member paying a shilling a year towards its funds. This striking party fund, the development of which many working men even would welcome in lieu of general payment of members of Parliament, with its attendant risks, has gone far to send more than 50 Labour candidates to the hustings, and to seeui-e the return of 60 per cent, of them. That this state of things shoidd not be otherwise in modem industrial England is probably felt even by those friends of progress who are sensible enough to moderate their zeal by judgment and to realize that, in almost every problem, there are " two sides to the question." It is at any rate of the utmost importance that a right and open spirit should be inculcated for the discussion of these questions. The hearing of a trade dispute in the Law Coiu'ts, " not unnaturally " as the scoffer is likely to say, discovers much anger and som* unreasonableness ; contemptuous treatment by employers, often the salaried managers of a limited company, is too frequently contrasted with the foolish obstinacy of the men, connived at, if not fostered, by their leaders. Just as, none too soon, many large firms and corporations employing labour are making the friendliest efforts to emulate that interest in the social welfare of their men which " masters " of guilds and smaller industries exhibited in bygone days, so we have travelled far from the need of saying with even Cobden, who felt that Trade Unions were founded upon principles of brutal tyranny and monopoly, " I woidd rather live under a Dey of Algiers than a Trades Committee." Many an engineer or carpenter can still unfortunately explain, in confidence to a sympathetic inquirer, how hardly the pressure of the union often works upon him, as, for instance, in the broken seasons of the London building trade. But, upon the whole, most reasonable people ^vill subscribe to the opinion given in 1896 by Lord Justice Lindley, that Trade Unions " are the only means by which workmen can protect themselves from tyranny on the part of those who employ them." It is only fair to add his next sentence : " But the moment that Trade Unions become tyrants in their turn, they are engines for evil ; they have no right to prevent any man from work- ing upon such terms as he chooses." It is surely obvious, when a Judge of Lord Lindley's wisdom in human affairs, aloofness from party politics and equitable frame of mind, can speak of these opponent " tyrannies," that there is room for more reasonableness and common sense, not only in the settlement of trade disputes, but in the determination of the spuit in which crowded modern industry shoidd be con- f) (liictod. Ono could have no better waruiug than the short- siglited dooision of the Trade Unions Congress at Leicester, in lOOJJ, not to give evidence before the Trade Disputes Royal Commission which has now at last issued its valuable Report. The abstention of the men, apart from the oppor- timity given to and taken by Sir W. T. Lewis in his power- ful " minority report," must tend to offend that public opinion on which tlioy tliemselvcs rely for a reformation of the law, none the less because they chose, with poor reason, to believe that the Members of the Commission were of a hostile disposition. The results rather show it to have been a most liberal minded Commission for the late Tory Govern- ment to have appointed. It is the issue of this Royal Commission's Report which, in spite of the grumblers who deride such documents and themselves do naught but talk, serves to show tlie magnitude and the imminence of a struggle which the Labour Party will insist upon. Parliament very soon may once again, and under new conditions, be debating a Trade Disputes Bill presented by Mr. Hudson and backed by Mr. Shackleton and other leaders of the Labour Party. ^ Just as so many of the community, as employers or employed, manufacturers or purchasers, were ignorant or affected to be ignorant of the awakening of the Labour Party, so it is remarkable with what confused and timid thinking the essentials of this great question are approached. The " specialization " of society has reached such a pitch that, from many points of view, every group among the professions and trades is a kind of Trade Union. Barristers and doctors in reality rely upon the concept of a " trade combination" just as much as miners and weavers, although their forms and rules may not be, and, as the less favoured working man complains, do not require to be, so closely scrutinized or so jealously regarded. Partly by the sui'vival of customs and partly by reason of the ' Since the above was written this Bill has passed its second reading by the enormous majority of 416 to 65 as a result of pledges given to electors. natural results of competition for life's advantages, the fact is, fortunately or unfortunately for the rest of the community, that a few men become eminent in each trade and, one may also say, a few trades (or " professions ") become eminent among others. But new political conceptions which have arisen since the days of Benthamism recognise that such competition among mankind should at least be so altruistic as to observe the dictates of that justice which regards the rights of others. For example, public opinion is now gene- rally sensible of the fact that the sale of labour is unlike the sale of goods, or of the truth that an individual probably does not know liis own interest or that of his class as well as the trade society or even the whole community of which he is a member. In the particular sphere in which this pamphlet is a contribution to the solution of a burning question, these conceptions gave rise to the Trade Union Acts of 1871 and 1876, which practically were based on the famous " minority report" of the late Judge Hughes and of Mr. Frederic Harrison. It is now urged by the Trade Unionists that the spirit and intention of that legislation have been violated by recent decisions of the Courts culminating in the " TafE Vale " judgments of 1901 in the House of Lords, and the Bills which the near future will bring before Parliament, like Mr. Whittaker's Bill of 1905, seek to undo much of the validity of those decisions. It is, in the first place, most regrettable that the notion of a deliberate " set " by the Courts against Trade Unions should be fostered. It is in itself a breach of that mutually tolerant spirit in which alone these momentous issues can be decided. Mr. J. Eamsay Macdonald, the able Secretary of the newly-christened Labour Party, ought, as a publicist of growing repute, to know better than to speak of the "absurd decision " of Mr, Justice Farwell, or to say that " the House of Lords supported him in considering that there should be one law for employers and another for combined workmen."^ ^ " Independent Review," March, 1906, 8 Suoli ill-consirlored phrases only alienate the regard of those who wish well to his cause. The regi-et expressed by the Parliamentary Committee of the Trade Union Congress at Leicester in 1901} that "the Law Lords' decision . , . has militated so injuriously against the funds and the position of Trade Unions " is intelligible and correct ; and few should quarrel with the declaration of Mr. W. B. Horridge (Secre- tary of the National Union of Boot and Shoe Operatives), the President for that year, that " he required no more from the other side than that which he was prepared to give. He wanted that they as organised Avorkers should stand on an equality before the law with the emploj'ers of labour." This temperate and irrefutable language contrasts well with the dangerous doctrine expressed on the same occasion by Mr. B. Cooper (Cigar Makers' Mutual Association) that " no inteiTuption of the industrial development of the country could be pleaded as a justification of the policy of restricting the power of trade organisations." The last speaker was better entitled to make his comment that '* the power of attaching Trade Union funds Avas an unjust discrimination between the federations of the employed and those of the emj)loyers, the latter having no necessity for accumidated funds." The truth is that the organisation of labour has come with such a rush during the last thirty years in France, Belgium, Germany, and Switzerland, and in our own colonies even more rapidly than in England, that the old antithesis between " self-help " and " self-defence " has assumed new propor- tions. In this lies the explanation of the batch of important cases which the English Courts have been called upon to decide. The common law, as modified by the several statutes already mentioned, had existed for a number of 3'ears before the most serious litigation began, and except for a few inter- mittent cases, ^ it would seem that, consciously or uncon- ' See the Appendix to Sir Godfrey Liishington's Eeport at p. 95 of the 1906 Report on Trade Disputes, which costs only Is. Id. 9 sciously, everybody was resting on the Hegelian dictum that " true freedom is only found within legal restrictions." But at last the famous " Mogul " case inaugurated the struggle which has familiarised public opinion with such terms as " combinations in restraint of trade," " watching and beset- ting," and " corporate liability for damages." It is this struggle which has given the Labour Party its great oppor- tunity, but there is no reason why Mr. J. R. Macdonald should seek to suggest that " the attack upon Trade Unionism through the Law Courts " came from its antagonists. The whole affair is but a phase of the struggle between " trustified " Capital and organised Labour, in which the representatives of the latter, like the men in Mark Twain's stor}' who, after thinking that for twenty j^ears they were in prison, one morning walked out of the open door, have awakened and stepped out to demand their alleged rights. Before considering the recommendations of the Commis- sioners and the demands of the Labour Party, it will be as well briefly to recapitulate the legal decisions of which the latter complain. The subject is a difficult one. The English language appropriate to it is unfortunately prolific, and it may be confessed that lawyers and Trade Unionists have vied A^ith one another in ingenious attempts to twist the meaning of its phrases. But without entering here into the history of the modern emancipation of Trade Unions,^ an examination of the judgments- and of the elaborate 1906 Report of the Commissioners, seems to justify this summary of the recent ' For which see works by Dr. Baemreither, Mr. Sidney Webb and Mr. Geoffrey Drage. - Even the most accurate and fullest " reports " of the trials cannot repro- duce much of thfi spirit and many of the circumstances of these controversies. It is, moreover, a pity that the jury system is calculated, in this respect, to produce a panel, especially in the case of " Special juries," hkely to incline more to employer than to employed. As any one working in the English Law Courts knows, the subtle and even unconscious prejudices of class- feeling are more apt to be at work in jurymen than in judges and lawyers, whose whole training is calculated to suppress them . 10 (ItMiMioiis w Itli rof^urd to the what is called " Trade Union Couspinicy and Liability for iJamagos." (A) Unfavourable to Trade Unions. (i) A C(;nibiuatioii oi A., 13. uiid C. to damage X. in his trade, and by means of intimidation or coercion (including threats not only of bodily harm but also of serious annoyance and damage) to induce the customers or servants of X. against their will either to break their c(nitracts with him, or not to deal with him, or not to continue in his employment, is, if it results in damage to X., actionable. This decision, in effect, declares that there is a legal duty on A., B. and C. to refrain from intimidating or coercing X., his customers or servants, so as to prevent him from carrying on his own business in any la\\ful way he himself chooses. (ii) If, without any legal justification, A. induces B. to break a contract with X., who suffers damage in consequence, or if A. by coercion or intimidation, or threats thereof, com- pels B. to cease dealing with or staying in the employment of X., who suffers damage in consequence, A. is liable to an action by X., and this even if B., in ceasing to deal with or serve X., does not break any contract with him. (iii) A Trade Union may be sued in tort in its registered name, with the consequence that Trade Union Funds will be liable for any damages that may be awarded.^ (B) Favourable to Trade Unions. (iv) An act which does not in itself amount to a legal injury, cannot be actionable merely because it is done with a bad motive. ' Lords Macnaghten and Lindley, in the " Taff Vale" case, further expressed an unhesitoting opinion that any Trade Union, whether registered or not, can l-c sued in tort by means of a representative action. 11 (v) Acts done in concert by A. and B. solely for the purpose of protecting and extending their trade and in- creasing their profits, and which do not involve means in themselves unlawful, are not actionable, even though such acts cause damage to X. These five propositions, which it is impossible to state accurately in less technical language, appear upon reflection unimpeachable to any mind which honestly examines aU sides of the question. But so far as a problem so complex can be simply stated, most of the members of the new Labom- Party and many of the orthodox Liberals are pledged strenuously to support a Bill, which, in extension of the prin- ciple that Trade Unions are now legal associations, shall give a statutory sanction to the above propositions (iv) and (v), but shall invalidate the " judge-made " propositions (i), (ii) and (iii). In the first place it is to be regretted that so much alliision is made, in a growling spirit, to "judge-made law." It will be a bad and, as one believes, a distant day for England when the community is justified in thinking that the judiciary, as in some countries, is swayed by political or class bias. The truth, obvious upon reflection, is that there can scarcely be a single litigious relation between man and man in which the common law or statiite law has not required some judicial interpretation for the determination of the question between them. For example, in whatever way the House of Lords had decided their judgment in the Irish Trade Union case of Quinn v. LeatJicin, their judgment would have amounted to judicial legislation. The ingenuity of circumstances, as it may be called, must always outdo the wit of a draftsman.^ And in the second place, the union-leaders do their own intelligence an injustice when they cry that "the Taff Yale decision altered the law as to liability." It did nothing of the kind. It removed an erroneous and hitherto untested ' Workers will surely recognise the remarkably liberal interpretation given by the judges, and rightly given, to the "Workmen's Compensation Act. ... 9 12 impression that the unions wero immune from any action at law for tlio wrongs they miglit commit. Tlie qncstion was strictly not one of liability hut of i)roco(]ure, a distinction not of legal language but of substantial importance. And it is as well to note tlmt Mr. U. Boll, M.P., whose union paid £23,000 in lieu of himself being sent to prison, frankly stated to the Congress in 1903 that " in the Taff Vale case the rules (of the Union) were defied ; the rules were violated ; and if the executive had adliered to the rules there would have been no Taff Vale judgment ! " It has only to be added tliat Lord Dunedin, Mr. Arthur Cohen, K.C., and Mr. Sidney Webb, whose recent " majority report " leans favourably to Trade Unionism, express themselves as satisfied that tlie law laid down in tlie case involved no new principle and was not inconsistent with the legislation of 1871. Mr. Frederic Harrison, happily still with us to recall the great and successful effort made by himself and his colleagues of forty years ago ou behalf of Trade Unions, has just vigorously protested that neither they nor Parliament intended, in 1871 and afterwards, that the unions might be sued and made liable in their collective funds for the m rongful acts of their officers and agents ("The Speaker," 17th and 24th March, 1906). One is bound to admit that this view seems to have been shared in by the late Lord Aberdare (Mr. Bruce) when, in introducing the measm-e as Home Secretary, he observed that the statute was not complete like *' the Friendly Societies Act and the Joint Stock Companies Acts and the like, by means of which uniform rules would be framed for the formation, management, and dissolution of these associations." He added that " all questions of crime apart, the objects at which they (the unions) aim, the rights which they claim, and the liabilities which they incur, are for the most part, it seems to us, such as courts of law should neither enforce, nor modify, nor annul. The}- should rest entirely on consent." There is much to be said for this as a proposition of abstract justice, and one has more sympathy with it than with the technical point taken on behalf of tlie Amalgamated Society of Railway Servants, viz., that such a union is neither an individual nor a corporation nor a part- nership, and that they may therefore take advantage of the impossibility of suing and recovering damages from each of many thousands of workmen. But the point is that the Legislature in 1871, in legalizing Trade Unions, made them legal entities with perpetual succession, able to act by agents liable to penalties as well as their oJBficers, capable of holding- property as their own, and invested with the character of a party to appeals and proceedings. It is surely reasonable to say that such capacity, in the absence of express enactment to the contrary, involves the necessary correlative of liability to the extent of its property for the acts and defaults of its agents. If not, it means that the Legislature has authorized the creation of numerous bodies of men capable of owning great wealth and of acting, by agents, with absolutely no responsibility for the wrongs that they may do to other persons by the use of that wealth and the employment of those agents. " They would be at liberty," as Mr. Justice I^arwell continued, " to disseminate libels broadcast, or to hire men to reproduce the rattening methods that disgraced Sheffield thirty or forty years ago, and their victims would have nothing to look to for damages but the pockets of the individuals, usually men of small means, who acted as theii* agents." It is not, indeed, a question of the rights of members of a combination, but of the wrong done to persons outside the combination. Even Mr. Harrison and his col- leagues in 1867, in paragraph 4 of their report, said that "It should be specially provided that, except so far as combinations are exempted from criminal prosecution, nothing should affect . . . the liability of every person to be sued at law or in equity in respect of any damage which may have been occasioned to any other person through the act or default of the person so sued." Given the liability for individual action, it follows that the combination should be liable for concerted action, whether in the case of employers or employed. 14 Tho substance of thu matter is that the 'J'nulo Unions are ill reality askiii}^ for an t'xoini)tion from the well-establislied law relating to cons] )i racy and agency which no individuals or association of individuals have ever aa yet seriously sought, much less been allowc^d. It is, of course, true that in some ways capitalist employers have too long had " the whip liand " of their employes, but sympathy with the weaker multitude should not lapse into a reckless encouragement of extravagant demands. The social order of the whole com- munity and the claims of the " employable unemployed " require the scales to be nicely balanced. Even one of the most advanced leaders of Trade Unionism, Mr. B. Tillett, speaking at the Leicester Congress in 1003, is reported to have said that he *' wanted men to recognise that the common laAvs of the country were as good as they could expect them to be, not to whimper and claim more advantage, but to stand by the common laws of the coimtry, and let the individual who infringed them take his risk and not be sheltered behind his union." The same proposition was stated even more tersely by Mr. Haldaue ^ when he said that for Trade Unions to claim exemption from the general rule that a j)rineipal who delegates part of his business must be held responsible for the acts of his delegate, " would be to set up a claim of privilege." There is no doubt that a mistaken \'iew of a judicial decision taken by four members of the Royal Commission on Labour of 1894, is responsible for the erroneous notion that Trade Unions, before the " Taff Vale " case, had enjoyed a freedom from any interference by the Courts of law which " was, after prolonged struggle and Parliamentary agitation, conceded in 1871, and finally became law in 1876. Any attempt," they added, "to revoke this hardly- won charter of Trade Union freedom, or in any way to tamper with the ' "Contemporary Review," March, 190o. Mr. Haldanc. Mr. Asquith, Mr. Morlcy and Sir Edward Grey did not join in the excited voting for the I^aboTir Party Bill on iVIarch 30th. 15 voluntary character of their associations, would, in our opinion, provoke the most embittered resistance from the whole body of Trade Unionists, and would, we think, be undesirable from erer// poi))f of rie/cJ' The assumption that the exemption had been obtained by the legislation is quite mistaken, and tlie misleading case {Te»iperfo)i v. BusseN) now stands overruled. It seems impossible, on a calm and level- headed examination of the Trade Union claim, and even in sympathy with its intention, to discover that a grave injustice would not be done to honest employers and a menace offered to society if the concession of this claim were added to the redress recently and very properly obtained by the toilers of the land. The following statement by Lord Dunedin, Mr. Arthur Cohen, K.C., and Mr. Sidney Webb is surely charac- terised by a kind of final wisdom and common-sense justice : — "There is no rule of law so elementary, so univei'sal, or so indis- l^ensable as the rule that a wrongdoer should be made to redress his wrong. If Trade Unions were exempt from this liability they would be the only exception, and it would then be right that that exception should be removed. That vast and powerful institutions should be permanently licensed to apply funds they possess to do wrong to others, and by that wrong inflict upon them damage, perhaps to the amount of many thousand pounds, and yet not be liable to make redress out of those funds, would be a state of things opposed to the very idea of law and order and justice. On what grounds can such a claim be sui^ported? Trade Unions, which originally were looked upon as illegal combinations, have made out their claim to enfran- chisement and existence. But having done so they cannot put their claims higher than to say that they are institutions which arc beneficial to the couiuuuiity as a whole. But so are many other institutions — banks, railways, insurance companies, and so on. It may have been right to provide, as has been done, that the Courts shall not have power directly to enforce agreements between Trade Unions and their members in the same manner as they can in the case of shareholders and policy-holders in the institutions above mentioned. But when Trade Unions come in contact by reason of their own actions with outsiders, and ex hypothesi wrong those outsiders, there can bo no more reason that they should be beyond the reach of the law than any other individual, partnersliip or institution. Such a claim has indeed 10 ill former times been made by tlio Hpiritual us against the civil authority, ami has been consistoiitly disullowcd. What was denied to ri'ligiou ouf^lit not in our judgment U) be conceded to Trade Unionism." It must, however, be at once recognised that it would be a serious hardship, to say the least, on members of a union paying into the massed funds ^v^th u view to sick-benefits, pensions, and tlie like, that they should lose all at a blow by reason of damages given for unlawful conspiracy in a dispute of which they might not approve but were powerless to prevent. In any union there are always some younger members with no immediate interest in the " benefits," but impatient of what they hold to be cowardice or over-caution. It is curious that the " pro-union " members of the 1867 Commission were opposed to the suggested separation of funds, on the ground that the maintenance of a fund devoted entirely to trade disputes and purposes would increase the temptation to strike. They then stated ^ (and Mr. Frederic Harrison does not seem to have altered his opinion) that : — " The truth is, that the trade objects and the benefit objects are indissolubly connected, and neither could exist without the other It (the separation of the funds) would be an arbitrary interference with the liberty of asso- ciation. If workmen are permitted to raise and expend funds on several objects, it appears vexatious and puerile to insist that these funds should give no mutual support where the several purposes are all part of the original agreement." Moreover, Mr. Ludlow, speaking with special competence before the Labour Commission of 1894, as Chief Registrar of Friendly Societit>s and Unions, and as one convinced that trade protection is the primary legitimate function of Trade Unions, observed as follows : — " The compulsory separation of funds appears to me to be contrar}' to the essential jiurpose of a Trade Union. People must take that risk when they join them — that inasmuch as ' Tiige 60 of the Report of the 1867 Commission. 17 it exists, as I have stated, for the maintenance and improve- ment of the condition of the worker, they must take the risk of every individual benefit being made subordinate to that. If they did not choose to take that risk, they ought not to join the Trade Union." The Majority Eeport of the 1903 Eoyal Commission, how- ever, boldly recommends *' the facultative separation of the proper benefit funds of Trade Unions, such separation if effected to carry immunity from these funds being taken in execution." Lord Danedin and Mr. Cohen, K.C., would limit this separation to sick, accident, and superannuation funds ; while Mr. Sidney Webb would add the out-of-work fund, frankly making this benevolent fund available for indirect militant purposes. All three contemplate elaborate schemes of trust, limiting the purposes for which the moneys might be applied. It will at once be seen that, except for a certain moral check on the members, this proposal will not operate to protect the "benefits" or "pensions" unless the new statute enacts immunity from execution as proposed. And before the Legislatui'e would pass this, the same considerations of " privilege " again arise as in the general claim for exemp- tion from the law of Conspiracy. Moreover, as Sir Godfrey Lushington forcibly points out in his separate report, " Thrift is a good object ; but thrift conies after payment of just debts, and certainly not least, debts incurred in consequence of wrong-doing to others," and he reminds us that in the case of an individual debtor all insurance policies pass to his trustee in bankruptcy. lie also alludes to practical difficulties, such as the absence of public audit and the non-separation in the accounts of many Trade Unions of payments to members who are out of work from slackness of trade and payments to members who are out of work because of a strike. Sir "W. Thomas Lewis, the representative employer sitting on the Commission, goes so far as to say that " the Trade Unions of workmen have always been opposed to the separation suggested." is It woultl coitalnly seem to Ravour too inurli of partiality to tho cause of Trade Unionism to grant this particular form of " facultative sf'j)aration." The Lost solution of a (lifficult question might Ho in a statutory provision for such a separa- tion of militiinf an)Our as ho wills. 4.— (1) Where n committee of a trade union constituted as hereinafter mentioned lias lieen appointed to conduct on hehalf of the union a trade dispute, an action whore>>y it is sought to charge the funds of tlio union with damages in respect of any tortious act committed in contemplation or furtherance of the trade dispute, shall not Ho, unless the act was committed by the committee or Ity some person acting under their authority : Provided that a person shall not be deemed to have acted under the authority of the committee if the act was an act or one of a class of acts expressly prohibited by a resolution of the committee, or the committee by resolution expressly repudiate the act as soon as it is brought to their knowledge. (2) The committee may be a committee appointed either generally to conduct all trade disputes in which the union may be involved, or to conduct any trade disputes of a specified class or in a specified locality, or to conduct any particular trade dispute. {Note. — It is noteworthy that in introducing this Bill the Attorney-General declared his opinion that it would leave no opening for a question for a jury, as he could not conceive a case whicli would not be determined as a matter of law. This is at any rate doubtful as to the picketing that is legalised.) B. The Laboui- Party Bill read a second time on the 30th March, 1906, proposes as follows : — "1. It shall be lawful for any person or persons acting either on their own behalf or on behalf of a trade union or other association of individuals, registered or unregistered, in con- templation of or during the continuance of an}' trade dispute, to attend for any of the following purposes at or near a house or place where a person resides or works, or carries on his business, or happens to be — "(1) for the purpose of peacefuUy obtaining or communi- cating information ; " (2) for the purpose of peacefull}' persuading anj' person to work or abstain from working. '31 " An agreement or combination by two or more persons to do or procure to be done any act in contemplation or further- ance of a trade dispute shall not be ground for an action, if such act when committed by one person would not be ground for an action. " 3. An action shall not be brought against a trade union, or other association aforesaid, for the recovery of damage sustained by any person or persons by reason of the action of a member or members of such trade union or other association aforesaid." PRINTED BY 0. F. EOWOETH, GREAT NEW STEEET, FETTER LANE, E.O. UNiVtRSIlY Ot (,Al.I10KiMA LIBRARY Los Angeles This book is DUE on the last date stamped below. 4357. "^ HD Draper - 6495 Trade unions ED 6495 G7D7 u LOS AisviELES LIBRARY UCLA-Young Research Library HD6495.G7 D7 III II III lllllllllllll i^lflfj^: "%.