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VoL VL—No. 16
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CHARLOTTE, N. C„ THURSDAY, AUGUST 27, 1936
IOURNAL AOVCRVIKRR Odtnvk CON SI O KM A ▼ ION 09 £«) V_
thi raadir i cr I CRT
>.0<f I
SENATE IS DEFIED BY DETECTIVE
AGENCIES WHO DESTROY RECORDS
OF LABOR SPYING ACTIVITIES
WASHINGTON, D. C.—Six officers of the Railway Audit
and Inspection Company, a detective agency with offices in New
York, Philadelphia, Atlanta, Pittsburgh and St. Louis, defied the
- authority of the Senate Civil Liberties Committee in its investiga
tion of industrial espionage by refusing to obey the subpoenas
issued by the committee to appear at the first hearing with the
‘ company’s records and documents.
Not only did the six officials flout
the authority of the committee by re
fusing to appear before it, but, ac
cording to testimony submitted by
the committee’s agents, officers of
the company began a wholesale de
struction of the documents as soon as
I the subpoenas were served on them.
, These astounding facts were re
vealed at the hearing held here by
Senator Robert La Follette, chair
man of the sub-committee authorized
by the senate committee on Education
‘ and Labor to make the investigation.
1 The determination of the company
I to resist the authority of the com
i mittee was made known by its coun
' sel, who declared he had advised his
t clients that the senate resolution un
der which the inquiry was being
held was unconstitutional and ex
ceeded the senate’s power.
During the entire hearing it was
learned that Justice James M. Proctor
j in the United States court for the
j District of Columbia had acted on
1 the request for an injunction, made
{ by L. Douglas Rice, of Philadelphia,
' a stockholder of the company, re
straining the officials from appear
in'” before the committee. Although
Justice Proctor did not issue the in
junction, he directed the defendants
to appear in court four days later
and show cause why a preliminary
j injunction should not be granted.
Despite the refusal of the com
pany’s officials to appear, Senator
j Le Follette continued the hearing by
; placing tse committees’ agents on the
1 stand to tell how they had in part
j circumvented the destruction of the
i company’s documents by requisition
ling from building superintendents
’ the waste paper from the concern’s
| various offices and patching the
fragments together. Twelve pieced
otgether letters and memoranda were
submitted showing the spying activi
ties of the company, while bales of
other torn bits of paper have still to
bef itted into complete documents.
One of the patched up letters was
from W. W. Groves, at Pittsburgh,
addressed to G. E. Ivey, the Atlanta
manager of the spy concern. Much
of it concerned the placing of “hook
ed men,” a term to describe active
spies masquerading as workers who
go into industrial plants with a view
to learning labor secrets and making
friends with the labor leaders so as to
ascertain in advance what is going on.
The “hooked man” in this case was
Mr. W. H. Gray, whom Groves said
was “experienced in hooking and
‘does a first-class job along this line.
When the testimony regarding the
destruction of the documents was
concluded Senator La Follette declar
ed it “disclosed the grossest kind of
contumacy ever witnessed under a
Senate subpoema,” adding:
“It show's the grossest and most
flagrant contempt of the United
States Senate. As far as the chair
man of the committee is concerned,
every legal remedy that can be taken
to punish this flouting of the Senate
will be prosecuted with greatest
vigor.”
The officers of the industrial es
pionage organization thus described
by Senator La Follette are W. W.
Groves, president; W. B. Groves,
vice-president; L. Douglas Rice, vice
president and general manager; 3. E.
Blair, secretary-treasurer; Robert S.
Judge, former counsel, and J. C.
Boyer, alias O’Keefe, an employe in
the Railway Audit and Inspection
central offices in Pittsburgh.
James F. Burns
Friend Of Labor
Is S. C. Nominee
For U. S. Senator
COLUMBIA, S. C., Aug.
2fi.—Senator James F.
i Byrnes, vigorous supporter
of the Roosevelt adminis
tration. and a friend of or
| ganized labor, won an over
whelming victory over his
anti- New Deal foes in
| Tuesday’s Democratic pri
mary on the face of partial
returns.
With 1,272 of 1,474 pre
cincts reported, the State’s
junior senator had 198.813
votes against 17,923 for
Thomas P. Stoney, former
Charleston mayor, and 9,714
for Col. William C. Harllee,
i retired marine of Dillon.
FIRST LESSON
Scotchman: Now then, son, double
p your fist tightly, like this.
His Wife: Say, teaching our boy
bow to fight?
I Scotchman: No, I am teaching him
how to carry a penny to Sunday
school.
t
t
Roosevelt Workers
To Meet Wednesday
Sept. 2, Moose Hall
A meeting of the Labor Non
Partisan Political League will
be held next Wednesday night at
the Moose Hall, South Tryon
Street, about 8:45, immediately
after Central Labor Union has
completed a curtailed meeting.
The organization has as its main
object the election of Franklin
D. Roosevelt as president, and
all union men and their friends
are urged to be present, when
J. «H. Fullerton, of Charlotte, w’ho
is the North Carolina chairman
of the league, will preside and
an organization perfected. This
League will not, we understand,
work for or against any candi
date in the field, but is aiming
all of its guns against Presi
dent Roosevelt’s enemies. Every
worker organized or unorganized
who stands for Roosevelt and the
New Deal, is urged to be pres
ent. This organization is going
to prove a factor in the Roose
velt campaign and in J. H. Ful
lerton, its state chairman, has an
indefatigable worker and a loyal
supporter.
Be on hand, bring a friend,
and let’s start wtih a banner or
ganization in Charlotte.
Time: About 8:45 P. M.
Place: Moose Hall. Date: Wed
nesday, September 2.
FRANK BARR TO DO UNEXPECTED;
HIS MARRIAGE IS ANNOUNCED;
CEREMONY TO TAKE PLACE AT UNION
Columbia, S. C., Aug. 16.
To the Editor of The Labor Journal:
One of the most interesting and
unique weddings to occur in labor
circles in the state will be that of
Mrs. Ruth Morton, wife of the late
Royal W. Morton, of Charlotte, to
Mr. Robert Francis Barr, recently of
Charlotte, but now residing at Colum
bia, S. C. The ceremony will be per
formed at Union, S. C., home of the
Irrespective bride, on September 3,
936, by the Rev. Dr. Chick, pastor
f the Union Methodist church.
! Mr. Barr has been active in labor
Circles over the state for'many years,
having recently served a term as
president of the Charlotte Central
Labor Union prior to his moving to
Columbia. S. C. He is now on the
production staff of W- B. Guimarin
t Co., of Columbia, S. C., plumbing
^nd heating contractors. Mr. Barr is
a member of the Plumbers and Steam
fitters Union of Columbia.
| The couple, after a short honey
moon, which includes a very interest
ing automobile tour, will make their
home at Columbia, S. C-, where Mr.
Barr is indeed no stranger both to
business men and union men alike,
i Friends and acquaintances in the
labor movement who have for many
years been laying wagers that the
genial labor leader would remain a
bachelor are now quaking in their
shoes as September 3 approaches. So
hopeless seemed the case of Mr. Barr
ever becoming a Benedict that these
skeptics are still saying “it ain’t
so.”
The host of friends and acquain
tances of Mr. Barr in the two Caro
linas will doubtless shower him with
congratulations and good wishes, for
his services in their behalf has been
legion. —F. T
[Going to try to be in Union for the
occasion—Ed.]
[The above article was prepared
for publication last week and was in
the forms, but was “lifted’ awaiting
verification. Mr. Barr was a visitor
to Charlotte last week-end and called
upon The Journal, verifying the
statement. It was the last time, we
guess, that we will see our friend in
the single state of blesesdness, for
when he visits Charlotte on Labor
Day he will have joined the Benedicts
and be enjoying wedded bliss, and
may the Lord have mercy on his
soul.—Ed.l
PUTINtNY OOMMIti *
ON
TlMILr TDfiet
CHATTING
•Y
HARRY
BOATS
It may be recalled by some readers that about a year or more ago two
boys in Chicago, at play in the cellar of the home of one of the boys, did
some digging, as boys frequently do. As a result of their labors they un
earthed a large sum of money which had been buried some time before by
some unknown person. The home was a rented one, and the owner claimed
the find. The money was put into the hands of the court, and finally the
judge decided the money belonged to the boys and it was returned to them.
The above is incidental to the following story which is of a somewhat
similar nature. This story appeared in the daily papers also, but the best
report is discovered in the Christian Century and is here given as pub
lished: .
“The story has a faint flavor of Maupassant’s ‘The Necklace, but Jt
happened last week in New York. A young man named Aleck Krunoclcy,
who had been out of work for many months, got a PWA job and set to work
with a gang that was making a park at the waters’ edge. His own
was not quite so ideally located, for part of the time he had to work in
the water. In delving there he brought up a bag that seemed very heavy.
He succeeded in hiding it fro mhis fellows, got it home, opened it, and found
$1,060 in twenty-dollar gold pieces. He knew that gold could not bte kept
by private owners. At any rate he knew that his title to this treasure trove
was somewhat clouded. Being an honest youth, he wanted a clear title. So
he took the gold to the nearest police station and told his story. He was
congratulated on his find, arid was told that the authorities would keep the
gold six months and then, if ho owner appeared, it would be his. Naturally,
he was very happy, ,and mentally spent his money several times over in
comforts and luxuries for himself, his mother, and his step-father, and still
had enough left to make a large deposit (still mentally) in the savings
bank. His mother had urged him to hold out a few coins for a few press
ing needs. One does have pressing needs after sevral months without work,
and his step-father had no work either. But no, he said, he had no right to
that. He must turn it all in: A few days later he was called to the police
station and the news was brpken to him, as gently as such news could be
broken, that the coins were counterfeit. His fortune had evaporated. The
woman who has the little store down on the corner said: ‘Well, he’s got no
money, but he has credit. Everybody knows he is honest.’ It is something
to have that left after a fortune has evaporated.”
That is the end of the story as written. But there is more yet to be said.
It pays to be honest, even though one may sometimes seem to lose as a re
sult of honesty. It will be retailed his mother urged him to keep out a few
coins for “prssing needs.” No doubt there were pressing needs. Perhaps
many of them. It will also be recalled the coins he found were declared
counterfeit. First, it was unlawful to own gold coins, and he was in danger
of legal entanglements had lje retained them, since Uncle Sam has called
in all gold moneys Again, evjen though it be legal to own gold, had he en
deavored to spend any of the money he would have been in the meshes of
the law for passing counterfeit. Truly this young man found what would
have been a bag of trouble hid he not been born with a mind and determi
nation to be honest with himself and the world.
Place yourself in the position of this young man and decide if you can
what your actions would be in! such case. Honesty is the best policy, but on
the other hand, when one has! been short of cash for a long time and sud
denly comes into possession of a bunch of it, the human mind begins
quickly to work, and it shows many angles to the case in question. Money is
the root of all evil, and had this young man decided on the wrong course his
find would have sprouted many evils and given him a world of trouble, all
caused by the fact that he hajd finally secured a job with the PWA, which
Uncle Sam established With a View to alleviating suffering and need and put
ting more satisfaction and comfort in the way of our unfortunate citizens.
All honor to this young man for his honesty, and here’s hoping the next
time he comes into possession of sudden wealth! it will be the real thing and
that he will know how to handle it.
1,250,000 NEW HOMES NEEDED
ANNUALLY SAYS A. F. OF L SURVEY;
2,300,000 DEPENDENT ON BUILDING
Recent issues of the Monthly Survey of Business have em
phasized the creative possibilities of America’s highly efficient
industrial equipment. If this equipment is used to its full ca
pacity, all American workers may have work and can produce
enough to give every family a comfort level of living. In this issue
we deal with one industry, building, showing its part in creating
this comfort level of living and suggesting steps which may be
taken to help it meet the requirements.
Building construction is one jot our
four great basic producing industries.
Normally, it creates constructions
worth more than 10,000,000,000 each
year, and 2,300,000 workers depend on
it for their livelihood. Beside direct
employment in building, one mpn em
ployed in the materials industries is
needed to provide the building sup
plies for each worker on the construe
tion job, and one in the consumer
goods industries to provide his food
and clothing. Thus far the fate! of the
building industry affects 4,000,000
workers in other industries, ini addi
tion to its own 2,300,000 or a total
of nearly 7,000,000.
Records covering building contracts
awarded in the 37 eastern states
show that about 4% of the wealth
created by building each year| is in
homes and apartments, 30% in | facto
ries, office buildings and public util
ities, 25% in public works an<j pub
lic buildings, and 5% in other build
ings. Home building is the backbone
of the industry, business building
the next most important, and public
construction normally accounts for
about one-quarter of the whole.!
During depression, home building
almost ceased, dropping from 840,000
homes built in 1928 at the peak of the
building boom, to 123,00 Oin 1933, or
less than 15% of its 1928 volumne.
Contracts for factory and commer
cial building dropped to less than 17%
of their 1929 value, and although pub
lic building was not so drastically
cut, tax losses reduced it to barely
40% of 1929. This virtual disappear
ance of private buildings so cut em
ployment that by March, 1933, less
than 600,000 of the industry’s 2,300,
000 workers still had jobs—jthree
fourths were out of work. When
those thrown out in ' materials and
consumer industries are added, this
m*nt unemployment for 5,100,000 in
all;
There can be no prosperity [with
out recovery in building, yet building
has lagged behind other industries
on the road out of depression. There
fore. the gains of this year and last,
which have finally lifted building to
nearly half (43%) its 1929 lvalue
and definitely started it towaijd re
covery, have strengthened confidence
throughout the business world. Also
re-employment in building and relat
ed industries has added greatly to the
nation’s buying power. The level of
building activity in the first half of
1936 has been twice that of 1933.
Over 400,000 men have gone back to
work in the industry since March
1933, and probably about dou
ble this number in material and con
sumer goods industries, a total of
about 1,200,000. There are still,
however, 1,300,000 unemployed in
building and over 11,000,000 in Am
erican industry as a whole.
While private building in 1936 is
more than doubling its 1933 volume,
it is significant that the industry still
depends to a large extent on public
funds. In normal times public con
struction is only one-quarter of all
construction, today it is more than
half (51%); private building today
is only 29% of its 1929 value, public
construction 76% of 1929.
The public consctruction being done
today includes road-building (a larger
volume than normal), flood control,
schools, libraries, city halls, water
works, sewers and the like, financed
either through PWA or other public
funds, and housing projects provid
ing some 18,000 homes. In looking
forward to the future we may well
consider whether public building
should not permanently play a larger
part in our national building program
and whether it should not include the
building of lost cost homes which
would not be profitable for private
enterprise. We will consider first
the outlook for private building, next
tho present housing shortage and
the function of public building in
remedying it.
BUILDING OUTLOOK. Private
building in the lats two decades has
been subject to very great changes
from boom to depression and back to
boom. During the war, building
practically ceased, leaving the nation
in 1920 with an acute building short
age. Then began a boom period
when in its efforts to make up the
shortage, building construction ex
ceeded all previous records. This
lasted through the nineteen twenties,
ROOSEVELT LABOR DAY RALLIES
CALLED FOR BY THE NON-PARTLSAN
LEAGUE; FULLERTON N.C. CHAIRMAN
Smaller Demonstrations Everywhere Are Called For in
Proclamation by Labor’s Non-Partisan League
to Back President in Record-Breaking Show of
Workers’ Solidarity.
In a proclamation received here,
Labor’s Non-Partisan League calls
on all League state chairmen tb ar
range a series of mass demonstra
tions in support of President Roose
velt on Labor Day. Plans already are
underway here throughout the state
for a state-wide response to the call
from Washington.
It is planned that there shall be
one principal demonstration in each
men in the state and that there shall
state, to be attended by the state
chairman and all of the vice chair
be other demonstrations in as many
cities and towns as possible through
out the state.
If the plans are carried through
and it is evident they will be — Labor
Day will witness the greatest dem
onstration of American labor politi
cal solidarity ever recorded in all of
our national history.
Maj. Berry has asked all state
chairmen to plan these meetings at
once and to let nothing stand in the
way of their success.
In each meeting a declaration of
support of President Roosevelt will
be adopted.
State chairmen have been asked
to arrange local radio facilities wher
ever possible.
“I believe we can say it is already
assured that there will be Non-Parti
san League Labor Day mass meet
ings in every state in the union, unit
ed by a single purpose, marking in
dramatic fashion the uprising of the
workers in support of the President,”
said Maj. Berry in writing to state
chairmen. “And there will be hun
dreds of smaller meetings through
out, the states. I look for the great
est political spectaclei of our time and
I feel confident we shall not be dis
appointed.”
At the same time Major Berry
announced formation of a Woman’s
Division of Labor’s Non-Partisan
League. All state chairmen have been
asked to begin the building of a wom
en’s division immediately and to en
list in each state the leading women,
including those who are friends and
sympathizers of albor as well as those
who belong to labor organizations.
Major Berry pointed out that there
are fully two million women now or
ganized in women’s auxiliaries of un
ions. “It is a fact beyond doubt that
the overwhelming majority of these
organized women and' their friends
favor the re-election of President
Roosevelt and will want to share ac
tively in the triumph of his re-elec
tion,” he said. “Their economic in
terests are in no way different from
those of the men who make up the
labor movement. Added to the wom
en who are in auxiliaries there are
thousands who are active members of
unions. We can count on the sup
port of at least three million women
for re-election of President Roosev
velt.”
Major Berry expressed himself as
more confident than ever of the suc
cess of the campaign. “Not only are
we assured of success in achievement
of our immediate objective, but we
shall go on from there with the
building of a strong, permanent or
ganization reaching into every Con
gressional district in the United
States.
“The case of the opposition re
veals its weakness every day. The
banding together of the great ex
ploiting interests of the nation in the
opposition camp is impressing upon
labor, with fresh emphasis the vital
necessity of uniting solidly in support
of the President. No amount of Re
publican oratory can conceal or dis
tort the issues. The forces that drove
the nation to the very brink of ruin
are supporting Governor Landon and
he welcomes their support, making
his cause one with theirs. Our task
is to mete out overwhelming defeat
to that menace to everything that
American labor values, preserving lib
erty and the fundamental remocracy
of our country. Labor’s Non-Parti
san League is in action everywhere
with that single objective as our task
for 1936.”
State chairmen will be responsible
for arranging the nation-wideseries
of mass meetings.
[J. H. Fullerton, first vice-presi
dent of N. C. State Federation of La
bor and president of Charlotte Cen
tral Union, is the North Carolina
Chairman of the League.]
THE CONSTITUTION WAS
MADE FOR THE PEOPLE
The Constitution was made for the people of the United States, not
the people for the Constitution. This is the fundamental fact which eco
nomic Tories overlook in the howling that accompanies the conflict between
the progressive social legislation recently enacted by Congress, and the re
actionary majority of the Supreme Cpurt.
It is along this line that Associate Justice Harlan F. Stone, who is
usually found in the progressive minority of the Supreme Court, sounded a
call for common sense and a broad consideration of the rights of the masses
in interpreting the Constitution in his address at the Harvard Tercentenary
Conference on the future of the common law.
Justice Stone said:
“We are coming to realize that law is not an end, but a means to an
end—the adequate control and protection of those interests, social and eco
nomic, which are the special concern of the Government and hence of law;
that that end is to be attained through reasonable accommodation of law
to changing economic and social needs.
i “Just where the line is to be drawn which marks the boundary between
the appropriate field of individual liberty and right and that of Government
action for the large good is the perpetual question of constitutional law. It
is necessarily a question of degree which may vary with time and place.”
|t is apparent to all sincere citizens that the aims of the framers of the
ConAitution and those responsible for the Federal social legislation enacted
by the last two sessions of Congress are the same—both desire a just bal
ance between individual liberty and the authority of the Government.
Those who framed the Constitution were not confronted with child
labor, starvation wages paid to large groups of workers, denial by many em
ployers of the essential right of their employes to organize for the protection
of their economic liberties, and an industrial system so managed that mil
lions of toilers are thrown into the unemployed army.
In these directions it is clear that the spirit of the Constitution confers
on the Federal Government the duty to enforce the intent of the Consti
tution in protecting the general welfare of the people.
In discussing the guarantees of the Constitution relative to personal
liberty and property rights, Justice Stone said:
“The chief and ultimate standard which they exact is reasonableness
of official action and its innocence or arbitrary and oppressive exactness.
“There is need for a continuity not of rules but of aims and ideals j
which will enable government, in all the various crises of human affairs,
to continue to function and to perform its appointed task within the bounds
of reasonableness.”
As Justice Stone views the question, the text of the Constitution al
ways means the same thing, but in translating its ideals into Federal law
Congress should take into consideration the social needs and institutions of
the time.
Justice Stone has hit the nail squarely on the head by directing public
attention to the fact that the Constitution was meant for living people—
that it is not a set of static rules by which men long since dead sought to
hamper the legitimate aspirations of succeeding generations and impose
servitude and poverty on a large portion of our citizens and their depend
ents.
“No,” said the union man to the
company “union” stool pigeon, “I
haven’t anything up my sleeve, but I
have a union label in my pocket.”
reaching a peak in 1928. During the
present depression, private building
has again dropped to almost nothing,
leaving the country today with an
acute housing shortage. Now that
the industry is again on the upward
| road, with a shortage to make up, we
• may expect another period of high
building activity.
JOHN FERGUSON, SR.,
LEAVES FOR UNION
HOME IN COLORADO
J. L. Ferguson, Sr., who has been
connected with the Charlotte Ob
server as linotype operator, for near
ly 18 years, left Monday for Colo
rado Springs, Col., where he will en
ter the Union Printers’ Home. Mr.
Ferguson recently suffered a ner
vous breakdown. His friends hope
for him a speedy restoration to
health.