I Boom of tfjc Closeti jjop anti Cra&e Agreements WORKINGMEN EMANCIPATED CONTRACTS TO EMPLOY ONLY UNION MEN ARE CRIMINAL CONSPIRACIES EMPLOYERS AND WORKMEN MAKING SUCH CONTRACTS LIABLE TO IMPRISONMENT IMPORTANT COURT DECISION !> "b\ a «-ri o. n ur o h T> The Open Shop Vindicated . Closed Shop Unlawful and Criminal . Subject to Fine and Imprisonment in Penitentiary. Labor Unions a Trust in Restraint of Trade Same as Indus¬ trial Trusts. Every business man, every professional man, every working-man, should read the accompanying quotations from the notable decision of Judges Adams, Windes, and Ball, who constitute the Ap¬ pellate Court of Cook County, Illinois. Under this decision, the “open shop” for which employers have been contending, and which is now being so generally insisted upon by employers under the leadership of the Citizens’ Industrial Associ¬ ation of America, is upheld, while the “closed shop” agreements exacted from employers by labor unions are an illegal infringement of contract rights, and agreements binding employers to hire none but union men are an illegal abridgement of liberty, discriminating in favor of one class of working people and excluding all others. The employer who signs a “closed shop” contract and the union which secures such a contract by threats of strikes, boycotts, etc., are liable to the criminal laws for conspiring to .injure the “prop¬ erty rights” of a workman in his labor. An employer who makes a contract to employ only union men, or only non-union men, lays him¬ self liable to punishment under the criminal and civil law. Any person may enforce his right to be protected against this conspiracy when he seeks employment in any workshop, store, factory, or other place of business. 3 It is a crime to attempt to force a “closed shop” agreement on an employer, or demand his signature to such a contract, because it is a crime to seek to influence any one to commit a crime. The decision is regarded as declaring all “closed shop” agreements to be not only illegal and crim¬ inal, but null and void if secured under duress or threats of strikes, boycotts, etc. Under this de¬ cision, the one per cent, who control the ten per cent, of labor of the country, who are banded to¬ gether as trades unionists, can no longer dictate the terms and conditions upon which the free and independent ninety per cent, of peaceful and law- abiding citizens may be employed. The case came before the court on appeal from the injunction granted by Judge Holdom against the strikers at the plant of the Kellog Switchboard Company. The “closed shop” contract is a viola¬ tion of the provisions of the Constitution of the United States guaranteeing “life, liberty, and prop¬ erty,” together with the further guarantee that the privileges shall never be abridged, and prohib¬ iting discrimination between citizens. In the opin¬ ion of eminent lawyers and judges the decision will be sustained by the higher court, in the event of an appeal. As no question of interstate commerce is involved, it is not probable the case will reach the United States Supreme Court. It will encourage employers in their contention for the universal adoption of the “open shop” pol¬ icy, and will eventually sound the death-knell of the illegal, criminal, and un-American “closed shop.” CHICAGO CHRONICLE EDITORIAL* The following concise review of the decision is quoted from a very able editorial in the Chicago Chronicle: “CLOSED SHOP UNLAWFUL AND CRIMINAL. “Of all the court decisions affecting the right of contract none is of such vital importance to em¬ ployers and employees as the one recently handed down by the Apellate Court of Cook County con¬ cerning what is known as the ‘closed shop’ contract, for it goes to the very heart of the question out of which arises the chief contention between labor unions and employers. “The decision of the Appellate Court specifically declares that the parties to such contracts, if com¬ pulsion be used, are guilty of an unlawful act, and if entered into voluntarily are guilty of a criminal conspiracy. These declarations are based upon the accepted principles of common law, the guarantees of the State and the National Constitution, and the specific language of the criminal statutes. “Under the law of contracts it is not only un¬ lawful to compel one to execute a contract, but a contract executed under duress is voidable. Such is the nature of most of the ‘closed shop’ contracts, for, although the employer apparently may exercise free will, the fact remains that the majority of closed shop contracts are executed to avoid a strike or to end one already existing, and the court de¬ clares that ‘duress exists when a person is induced to perform an act to avoid a threatened and im¬ pending calamity.’ “The ‘closed shop’ contract is in itself a denial of freedom of contract both to employers and to non-union workman, and is therefore a violation of fundamental law. Freedom of contract has been defined by the Supreme Court of the State as both a liberty and a property right. Labor is declared to be property, and, therefore, to deprive the laborer and employer of this right to contract with one another is held to be a violation of Section 2, Arti¬ cle 2, of the Constitution of Illinois, which provides that ‘no person shall be deprived of life, liberty, or property without due process of law.’ The labor unionists have the same freedom of contract as any other persons, but when they enter upon a contract for a ‘closed shop’ they attempt to deprive all who may not bo members of unions of the same right, and therefore are guilty of an unlawful act. “The ‘closed shop’ contract, according to the Su¬ preme Court decision to which the Apellate judges refer, is equally a violation of the provisions of the Constitution of the United States guaranteeing ‘life, liberty, and property,’ as in the Illinois Con¬ stitution, together with the further guarantee that the privileges shall never be abridged, and prohibit¬ ing discriminations between citizens. “The criminal statute governing the offense is explicit. Where two or more persons combine by unlawful means to prevent any person from obtain¬ ing employment Section 158 of the Criminal Code provides for both a fine and imprisonment. “Under this law, as interpreted by the decision, employers and labor unionists who have entered into an agreement for a ‘closed shop’ are guilty of an unlawful act, which, if voluntarily performed, constitutes a criminal conspiracy. Neither employers nor labor unionists who hereafter enter into agree¬ ments for a ‘closed shop’ Can plead ignorance of their legal rights in palliation. If the employer be coerced he is nevertheless guilty of an unlawful act for which there are ample remedies at law ; if he voluntarily enters into such a contract he can be prosecuted under the criminal statutes. “The ‘closed shop’ is the crux of the whole labor union situation. It is not a subject for legislation to be made the shuttlecock of vociferous dema¬ gogues, but one to be dealt with by the dispassion¬ ate judgment of the courts. There is every reason to believe that the Supreme Court will take the same view of ‘closed shop’ contracts as that held by Judges Adams, Windes, and Ball, of the Appel¬ late Court, for the latter are all men of long judi¬ cial experience, and of able and temperate judg¬ ment. “Moreover, the decision of the Appellate Court rests in part upon a decision of the Supreme Court, and there is no utterance of the Appellate Court at variance with that decision.” 6 THE TEXT OF THE DECISION. The following are brief quotations from the de¬ cision, but they are so clear and decided as to merit the careful attention of every good citizen. They are of especial interest to the man who wants to be * a free and independent workman and will welcome deliverance from the bondage of trades unionism. “The purpose of the strike by complainant’s em¬ ployees and their prosecution of it, as described, was to compel the complainant to execute the agree¬ ments referred to and made a part of the bill. The drafts of agreements, three in number, purport to be with the different unions whose members were in complainant’s employ. The draft of agreement with the Metal Polishers, Buffers, Platers, Brass Holders, and Brass Workers’ International Union of North America, International Union of Steam Engineers, and International Brotherhood of Sta¬ tionary Firemen contains the following: “Article 1. The party of the first part hereby agrees to employ none but members of the aforesaid organizations or those who carry the regular work¬ ing card of the said organizations, provided the various crafts will furnish such competent help as may be required by the party of the first part with¬ in twenty-four hours after notification. “Article 7. There shall be a steward for each craft in each factory appointed by the organization, whose duty it shall be to see that the men working in said factory belong to the organizations. “Article 8. It is hereby agreed by the party of the first part that the business agent of the party of the second part shall have the privilege of inter¬ viewing any member of the party of the second part in the offices of the party of the first part dur¬ ing business hours. “Article 10. A sympathetic strike to protect union principles shall not be considered a violation of this agreement. 7 “Article 11. All the apprentices shall belong to the union and carry the working card of the organ¬ ization. “Article 12. The number of apprentices not to exceed one for ten men or less of the different crafts. PURPOSE TO EXFORCE CLOSED SHOP. “That the purpose of the strike was to compel the execution of the drafts of agreement is clear. It is averred in the sworn bill and deposed to in the affidavits of De Wolf, complainant’s president; Kel¬ logg, its secretary and treasurer, and Edwards, its superintendent, that business agents of the different unions called on complainant and insisted on its executing the agreements and that, when complain¬ ant’s president refused, on the ground that the pro¬ posed agreements were unreasonable, it was threat¬ ened by one of said business agents that unless complainant would sign the agreements a strike would be called and that said business agents called a strike, in response to which about five hundred of complainant’s employees quit its employ. Appel¬ lant’s counsel admit in their brief the purpose of the strike is to bring about the execution of the con¬ tracts, and at least three of the appellants so admit in their answers. It is unlawful to compel one to execute any contract. A contract executed under duress is voidable, and duress is present where a party ‘is constrained, under circumstances which deprive him of the exercise of free will, to agree or to perform the act sought to be avoided .’ “Duress exists when a person is induced to per¬ form an act to avoid a threatened and impending calamity. Especially was the purpose to compel complainant to execute the agreements in question an unlawful purpose. Article 1 of the agreement strikes at the right of contract and provides that complainant shall employ none but members of the several unions, thus discriminating in favor of one class of men and excluding all others. In Matthews 8 vs. The People, 202 Ill., 389, the court, discussing the constitutionality of the free employment agency act, says (page 401) : ‘An employer whose work¬ men have left him and gone on a strike, partic¬ ularly when they have done so without any justi¬ fiable cause, is entitled to contract with other labor¬ ers or workmen to fill the places of those who have left him. Any workman seeking work has a right to make a contract with such employer to work for him in the place of any one of the men who have left him to go out upon a strike. Therefore the pro¬ hibition contained in Section 8 strikes at the right of contract, both on the part of the laborer and of the employer. It is now ivell settled that the priv¬ ilege of contracting is both a liberty and a property right. Liberty includes the right to make and enforce contracts . because the right to make and enforce contracts is included in the right to acquire prop¬ erty. Labor is property. To deprive the laborer and the employer of this right to contract with one an¬ other is to violate Section 2 of Article 2 of the Con¬ stitution of Illinois, which provides that ‘no person shall be deprived of life, liberty, or property with¬ out due process of law. 1 It is equally a violation of the Fifth and Fourteenth Amendments of the Con¬ stitution of the United States. The provision em¬ bodied in Section 8 ‘is a discrimination between different classes of citizens founded on no justifiable ground and an attempt to exercise legislative power in behalf of certain classes, and against other classes, whether laborers seeking work or employ¬ ers. It falls under the condemnation of the Consti¬ tution 1 “The agreement in question would , if executed, tend to create a monopoly in favor of the members of the different unions, to the exclusion of workmen not members of such unions, and are, in this re¬ spect, unlawful. Contracts tending to create a mo¬ nopoly are void. “The legislature* of the State cannot create a monopoly. 9 Violated Criminal Code . u The purpose of the strikers is in violation of the criminal code, which provides as follows: Sec. 158. If any two or more persons shall com¬ bine for the purpose of depriving the owner or possessor of property of its lawful use and management, or of preventing, by threats, suggestions of danger, or by any unlawful means, any person from being employed by or obtaining employment from any such owner or possessor of property, on such terms as the parties con¬ cerned may agree upon, such persons so offending shall be fined not exceeding $500 or confined in the county jail not exceeding six months. Sec. 159. If any person shall, by threat, intimi¬ dation or unlawful interference, seek to prevent any other person from working or from obtaining work at any lawful business, on any terms that he may see fit, such person so offending shall be fined not exceeding $ 200 . Not only was the purpose of the strike unlawful but the means used to achieve the unlawful purpose were unlawful. “a man’s business is iiis property. “ ‘The freedom of business action lies at the foundation of all commercial and industrial enter¬ prises.’ “We know of no well-considered case, or. indeed, of any case, holding that a combination of persons to injure the business of another is not unlawful. That the appellants, and other* associated with them, acted in concert, in unlawfully endeavoring to injure, and, in fact, injuring complainant’s busi¬ ness for an unlawful purpose, is fully sustained by the evidence. “Each conspirator is responsible for the acts and declarations of every other conspirator in further¬ ance of the common purpose. It i& an indispensable 10 condition of the enjoyment by each citizen of the liberty and rights guaranteed by the constitution and laws that he shall respect and not unlawfully infringe upon the liberty or rights of any other citizen. This cannot be done with impunity.” Opinions of Prominent Chicago Attorneys. “It is impossible to exaggerate the importance of this decision,” said Horace K. Tenney, in an inter¬ view. “Judge Adams is one of the most eminent jurists on the bench, and I am confident his decision will be sustained in the State Supreme Court, to which the cases are likely to go on another appeal. Briefly, the grounds of the decision may be said to be that the ‘closed shop’ contracts are opposed to sound public policy, as well as the statutory and common law, and the Constitution of the State of Illinois. Why they are opposed to public policy is because they are agreements in restraint of trade. The reasoning and the law upon that point are clear and unmistakable. The strike was called to enforce the contracts submitted by the union for the closed shop; and the court has squarely decided in favor of the open shop, which is the open door of trade and commerce in the nation. The closed shop is simply a boycott of workmen, and no court in this country has yet decided that before a man is eligible for work in a factory or store lie must have a permit or union-labor card from the officials of «* certain organizations whose decrees have no binding force in law. “A remarkable feature of the case was that Judge Adams held the closed shop contract to be a viola¬ tion of the Criminal, as well as the Civil Code of the State of Illinois. On this point the decision is significant, in that it provides the employers with a powerful weapon in future negotiations with labor leaders. It is now clear that by the very fact a labor leader or delegation of members from a union present a copy of a closed shop agreement for an 11 employer’s signature the person or persons doing such a thing are amenable to the Criminal Code, and may be given a term in the county jail for the mere act of demanding or asking the employer’s signature.” employers’ weapon of defense. “It is one of the most important decisions ever rendered in the courts of Illinois,” said Attorney M. L. Coffeen. “It points out clearly wherein the operations of labor unions enter the domain of the criminal. It will be an unassailable barrier and protection for employers, as the terrorism of labor unions is directly rebuked by Judge Adams. It is 'A not likely that the contract agreements for the ‘closed shop’ can survive this decision. The court , holds that the closed shop is a crime. So the em¬ ployer will have unanswerable reasons in future for refusing to become particeps criminis with labor union leaders in any agreement, oral, written, or implied, for the maintenance of the closed shop anywhere in Illinois. It is no exaggeration to say that the opinion means the legal death of the closed shop and the triumph of the non-union man’s right to an open shop, where he may have an equal chance with the union worker to obtain and retain employment.” STOP VIOLENCE and assaults. Attorney A. F. Hatch discussed the decision as follows: “This decision not only is based upon the highest authority but it commends itself to the reason of every dispassionate and fair-minded person. The closed shop is simply an attempt to establish a local monopoly by excluding from the shop all per¬ sons not members of the union or unions there em¬ ployed. It is clearly an illegal combination for the purpose of wu*ong and injury to others for the ben¬ efit of the members of the conspiracy, and is prop¬ erly held to be unlawful and criminal. It follows 12 as a natural consequence that any party to such a conspiracy, either as an employer or as an em¬ ployee, is liable to criminal prosecution and pun¬ ishment. “The promulgation and enforcement of the prin¬ ciples laid down in this decision will be wholesome in many ways and will tend to put a stop to the violence and assaults upon non-unionists who are satisfied to labor upon the terms offered by the em¬ ployers. “Any combination of individuals for the purpose of injuring others or depriving them of their lawful right to contract or to engage in employment ceases to be an organization protected by the law and be¬ comes a conspiracy as criminal as the Molly Ma- quires or Ku-Klux Klan. The sooner such organi¬ zations are rooted out the better for the peace and security of the community.” CLOSED SHOP A CRIME. “The exhaustive and able opinion of the Appel¬ late Court, just rendered by Judge Adams, the pre¬ siding justice, should prove epoch-making,” said Levy Mayer, Esq. “The opinion is a thorough and rugged review, both upon principle and authority, of one of the most important questions that have ever confronted the employer. It is the first opin¬ ion rendered in this State upon the question of the legality of a contract by which the employer agrees not to employ non-union labor. “All other economic and legal questions aside, it now becomes in this State a complete answer to the demand of the. closed shop that the law stamps such an arrangement as a criminal conspiracy. It is elementary that the crime of conspiracy consists of a combination of two or more persons to effect an illegal purpose, either by legal or illegal means or to effect a legal purpose by illegal means. The dis¬ pute has always been as to whether a contract not to employ non-union labor is an agreement to effect an illegal purpose. It has been asserted over and J over again by those advocating the closed shop that an agreement to employ only union labor is per¬ fectly legal and binding. ‘‘The courts have frequently heretofore held ille¬ gal an agreement among members of an association to withdraw their patronage from any one who sold to one who was not a member of the association or an agreement which permitted members of an asso¬ ciation to make purchases only from such as sell exclusively to members of the association. I have never been able to appreciate the distinctions which some courts have endeavored to make between cases % of the kind I have indicated and cases where the right to employ non-union labor was involved. There is no doubt that persons may combine for legitimate purposes and that an individual may re¬ fuse to deal with any particular person or class of persons and base such refusal upon mere whim or caprice, but it has been my opinion, and I am more than gratified to find it sustained by the Appellate Court, that a number of persons cannot combine with the object of compelling the adoption of a con¬ tract which prohibits the employer from employing non-union labor. CONTRACT IS A CRIMINAL CONSPIRACY. “If such a contract is • entered into it is illegal and under the decision of the Appellate Court con¬ stitutes a criminal conspiracy , to tchich not only the union hut the employer becomes a party, and for which not only the employee but the employer is subject to fine or imprisonment in the peniten¬ tiary , or both, under our criminal statutes. There are a vast number of manufacturing concerns that have written contracts with labor unions which prohibit the employment of non-union labor. Un¬ der this decision of the Appellate Court many hun¬ dreds , if not thousands, of employers , as well as many thousands of employees, have thus deliber¬ ately become parties to a criminal conspiracy of which the contracts furnish the written and un¬ it I answerable proof. Where such arrangements exist the crime cannot be wiped out by the cancellation of the contracts, but a continued recognition of the binding force of such contracts, in the light of the recent decision of the Appellate Court, may create trouble of a kind little dreamed of by those who have permitted themselves to be forced or lulled into them. “The fact that laborers have the right to refuse to work for a man who does not employ union labor, or in order to better their condition, or advance their wages, does not authorize the making of a contract under which the employer is compelled to employ only union labor and to discharge non¬ union labor. The rights of the employer and em¬ ployee are and should be synonymous , but em¬ ployees cannot , by combination or union , without committing the crime of conspiracy , force employ¬ ers to agree to employ only union labor. When employer's do become parties to such an agreement they are equally guilty of conspiracy. “The opinion of the Appellate Courts should be studied at once by every employer of labor , and when the employer awakes to the situation that he is a party to a criminal conspiracy , the floodgates will open and non-union labor will, I think, re¬ ceive the protection that all of the injunctions and processes of the courts have heretofore been unable to give them.” 15 / 3 011 2 07284681 The Open Shop Guarantees Industrial Peace and Industrial Freedom. Compliance with the provisions- of t court decision published in this leaflet Wi secure industrial peace and industrial freedor Employers should adopt the “open sho policy, and put it into force and effect quickly as possible. Another duty of the greatest importan devolves on all employers. When reduci the number of workmen, because of the fa ing off in business, they should be loyal the men who have been loyal to them. Yo true and tried friends, good citizens w respect and obey the law, they should ha preference over the anarchists, socialis walking delegates, agitators, trouble makeij who sought to destroy your business, and w are largely responsible for the calamities fro which business men and working men ha suffered. Published by the EMPLOYERS’ ASSOCIATIO Dayton, Ohio. NOTE.—This pamphlet should be read by buj ness men, professional men, and working men. 16