North Carolina Newspapers

    VOL. XIX; NO. 15
Subscription Price $2.00 Year
Judge Holds Federal Rent Law Invalid;
Housing Officials Will Appeal Decision
Chicago Correspondent for
AFL News Service
Chicago.—The 1949 act of Con
gress extending federal rent con
trol was ruled unconstitutional
by Judge Elwyn R. Shaw in U. S.
District Court in a test case. If
upheld by the U. S. Supreme
Court, the ruling will mean the
finish of federal rent control.
Otto Kemer, Jr., U. S. at
torney at Chicago, and Tighe
Woods, U. S. housing expediter,
said an appeal would be taken
immediately to the Supreme
Court. Meanwhile, the adminis-!
tration of rent control will con
Judge Shaw acted in the case
of a co-operative apartment house
— building in Chicago, Shoreline
Apartments, in which owners
tried to evict tenants who re
fused to join the co-operative.
The housing expediter sued for
an injunction to stop the eviction.
The housing expediter argued
the co-operative owners could not
evict the non-co-operative tenants
because the owners’ group did not
own 66 per cent of the property.
Regulations of the expediter's of
fice provide a building must be at
least 66 per cent owned by a co
operative if the co-operative is to
obtain eviction notices against the
Judge Shaw didn’t go into the
merits of the arguments. He
said the act of Congress was an
unlawful delegation to the states
of the powers of Congress, and
therefore, unconstitutional. His
court, therefore, had no jurisdic
tion to stop the evictions, he said.
What made the new rent con
trol act unconstitutional, he held,
was the local option clause, under
which it was provided that states
could withdraw individually from
rent control.
’l can see no ainerence uc
tween this situation,” he ruled,
“and one in which Congress
should pass a selective service
law with the provision that any
state which doesn’t care to send
soldiers may pass a law and say
they did not choose to be in
volved; or an intrastate commerce
act with the provision that any
state that chose not to be govern
ed hereby could declare itself out.
“1 can see no reasonable rea
son to believe that an act of
Congress under its war powers
can contain any such provisions
as might make it inoperative at
the option of any and all of the
various states, by their arbitrary
action and without gudies, stand
ards or specifications of facts.”
Judge Shaw pointed out that
some states already have declared
themselves out of rent control.
Federal control over rent is legal
under the war powers of the fed
eral government, he said, so the
decontrolled states have “repealed
the war efforts” as far as they
are concerned.
“If the other states should see
fit to do likewise,” he said, “the
act of Congress would be utterly
repealed or completely emascu
lated without any further act of
its, own, and without regard to
any power to make or maintain
Judge Shaw’s ruling was not
the first to find rent control un
constitutional. A Cleveland fed
eral judge held the old rent law
invalid in 1948, on ground Con
gress no longer had authority to
exercise war powers. The U. S.
(Continued On Page 4)
Washington. — Federal aid to
unemployed veterans would be
continued under terms of a meas
ure approved by the Senate Labor
and Public Welfare Committee.
The committee acted to extend,
with some modifications, the pres
ent “52-20” program under which
benefit payments have been aver
aging more than $10,000,000 a
President Truman asked that
the program be continued, but the
House version of the extension
bill is given a small chance.
Under the program, unemploy
ed veterans may collect up to $20
a week for 52 weeks.
President Truman had proposed
a modification, saying: “Such
benefits should not be available
to those eligible for unemploy
ment compensation under state
laws except where necessary to
bring state payments up to the
federal level, or when state bene
fits are used up.”
The Senate committee accord
ingly adopted an amendment to
require veterans to file claims
under state programs or any oth
er benefit program available be
fore they could qualify for fed
eral aid. Then if the veteran re
ceived $15 a week for example,
under a state program, the veter
ans’ program would make up the
$5 difference.
Senator Claude Pepper. Demo
crat of Florida, estimated that
amendment would have the fed
eral government about $200,000,
000 a year.
The committee provided, how
ever, that if the bill becomes law
before September 30. veterans
would continue to be eligible for
full federal benefits up to that
The committee voted to drop1
the section covering self-employed
veterans. The provision gave
veterans in that group $100 a
month, less any sum they earned.
Another committee change would
make the state law on waiting
periods appiclable to the vetera
ns’ programs. Thus, if a state
law required a veterans to wait
two weeks after becoming unem
ployed before becoming eligible
for benefits, he would have to
wait that long for federal aid.
Geneva.—Director-General David
Morse announced the appointment
of Luis Alvaado, Peruvian diplo
mat and educator, as Assistant
Director-General of the ILO.
Dr. Alvarado served as minister
counsellor of the Peruvian Em
bassy in Ottawa before being ap
pointed Ambassador to the Do
minican Republic. He has repre
sented Peru on the ILO’s govern
ing body sine 1944 and served
as its chairman in 1948. He will
be the first Latin American to
serve as assistant director gen
eral of the ILO.
Dr. Alvarado was born in Lima
in 1907. In Peru he occupied
professional posts at the Univers
idad Nacional Mayorr de San
Marcos, the Arts and Crafts Na
tional Schooy, and the Universi
dad Catolica.
He has represented hisr coun
try at numerous intrernatironal
conferences, including the 1945
charter session of the the United
Nations in San Francisco. He
was also a delegate to the fist
and third sessions of the UN
General Assembly.
. North Carolina Vet Wins Home
1.000,000 Legionnaire* as part of Schenlejr Post's program at na
tional convention in Miami. Both 22, the lucky couple now live
with bride's mother. Ra >' set veil on a Navy minesweeper
1949 Convention Call
To All Affiliated Unions Greetings:
You are hereby notified that, in pursuance of the Consti
tution of the American Federation of Labor, the 68th Con
vention of the American Federation of Labor, will be held
in the Civic Auditorium, St. Paul, Minn., beginning at 10
o’clock Monday mornng, October 3, 1949, and will continue
in session from day to day until the business of the Con
vention shall have been completed.
Once again we convene in annual convention—four years
after the termination of World War II—moved by feelings
of uncertainty and increasing disappointment. Workers
everywhere are asking why, following such a long period
of time, no substantial progress has been made in the nego
tiation of an international agreement providing for inter
national peace and security. The facts seem to make it
clear that failure to arrive at an .international agreement
is due to the negative, antagonistic and selfish policy of
Soviet Russia. Apparently the Russian government seeks
to extend end expand Communist control over certain na
tions of Europe, Asia and elsewhere throughout the world.
The fight, therefore, for international peace and security
is supplemented by a fight against the aggression of Rus
sia and its Communist philosophy.
We want world peace, but we want it to be based upon
the principles of freedom, democracy and liberty. This is
sue must be faced courageously and in a spirit of determi
nation that the free people of no nation shall be forced to
accept communism and Communist control against their
As we meet in this historic convention, labor throughout
the nation is conscious of the fact -that our enemies are
seeking to destroy, weaken,; and if possible wipe out our
trade union movement through the enactment of vicious,
reprehensible antilabor legislation. As a result, the fight
ing spirit of the workers has been aroused as never before.
That fact was reflected in the election which was held last
November. The record shows that unity of thought and
action was developed to a high degree among working men
and women and their friends everywhere. This fight against
anti-labor legislation is still on. For that reason those
in attendance at this convention will formulate policies de
signed to win victories for labor both on the political and
economic field. Social security and health insurance legisla
tion, federal aid for education, minimum wage legislation
and other social justice and security legislation will and
must command the attention of the officers and delegates
in attendance at this convention.
Our purpose is to bring about the realization of the hopes
and aspirations of labor, to seek to establish a standard of
living commensurate with the requirements of American
citizenship. We cherish the principles of freedom, liberty,
democracy and justice as a common heritage to be pre
served at any cost and transmitted to future generations.
In conformity with the record made by previous conven
tions, those in attendance at this 68th Annual Convention
of the American Federation of Labor will make a genuine
contribution toward the realization of this great objective.
President. '
Russian Law Code Exposes
Soviet Reliance On Slaves
Geneva.—Concrete proof of the
existence of the vicious forced
labor system in Soviet Russia is
contained in the translation of a
Russian document released here
by the British government.
The document, containing 147
subsections, is a carefully drafted,
cold-blooded, unequivocal set of
rules for operation of the slave
labor camps operated by the Com
munists for a double-barrreled
purpose; to reeducate Soviet citi
zens who do not toe the line laid
down by the Kremlin and to get
vast public projects built with a
minimum of expense.
Corley Smith, British delegate
to the United Nations Economic
and Social Council, distributed
copies of the document, in both
Russian and English texts, to
members of the council. It will
form the basis for his attacks
against Russian forced labor
policies when the issue is debated
bv the council.
The coming discussion is anoth
er step in the AFL’s long drive
for an international investigation
of the forced labor system. Last
January, the United States dele
gate to the council supported
AFL charges that minion a ot
Russian citisens are held in bond
age by the Soviet state, and urged
action be taken by the United
Highlights from the Soviet
document, which will make it im
possible for the Russian represen
tatives on the council to brush
aside charges against the slave
labor system, include the follow
There are three major divisions
of the law, applying respectively
to “corrective labor without de
privation of freedom," “depriva
tion of freedom" and "exile com
bined with corrective labor.”
Roughly speaking, these run from
the milder to the most severe
Person may be sentenced to
forced labor by decision of a court
or by “decree of an administra
tive organ.” The latter term ap
parently applies to any branch
of Soviet bureaucracy. •
Individuals picked for correc
tive labor not involving depriva
tion of freedom are to report for
work not less than 10 and not
more than 30 days from the time
of sentence. “Persons who do not
report for registration or work
at the time Axed may be enrolled
by force,” the code adds.
The severest punishment, sol
itary conAnement. is reserved for
persons who had been convicted
of no crime but were merely un
der investigation. "Solitary con
Anement in cells is intended sole
ly for persons under investiga
tion or trial,” the codes states.
After that they become subject to
one of various procedures, rang
ing from temporary forced tabor
to exile.
Washington.—The cost of liv
ing for moderate-income families
in the nation’s large cities ended
up slightly during the May 15
June 15 period. The Bureau of
Labor Statistics reported that its
consumers’ price index rose .2
percent, due chiefly to higher
food costs.
This change put the index at
168.6 per cent of the 1935-39
average; but it was 1.2 per cent
lower than a year ago, and 27.2
per cent higher than in June,
1946, when price “ceilings” were
removed. The current figure, too,
(Continued On Page 4)
! —
Washington. — The viciousness
of the injunction provisions of the
Taft-Hartley law was emphasised
by a recent decision of the Na
tional Labor Relations Board
which, ironically enough, favored
the union position.
The board threw out second
ary boycott charges brought
against a group of building trades
unions 10 months ago which were
used to obtain a temporary in
junction forcing the unions tc
continue work on the buildini
Here’s the rub. As might be
expected, the project itself wa*
completed within the 10-month
period required for the NLRB tc
act. So, the union victory before
the board was indeed a hollow
The case also served to high
light the feud between the NLRE
and its general counsel. Robert
N. Denham, over the agency’]
jurisdiction in local labor die
putea. The board contends that
it should keep hands off. Dm
ham argues that the agencj
should take jurisdiction over ever)
case, large or small, “affecting
Mr. Denham is in charge of is
suing unfair labor . practice com
plaints. He issued one last Sep
tember against seven local un
ions, and the Pittsburgh Building
and Construction Trades Council
in connection with the building
of an $80,000 drive-in theater at
Bridgeville. Pa. Mr. Denham al
so obtained an injunction, as re
quired by the Taft-Hartley law,
against the unions pending the
NLRB’s action in the case.
The charges were based on an
attempt by a business agent for
Local 5 of the AFL Electrical
Workers to persuade members of
the electrical union. Some of the
sub-ocntractors’ employes, at
least, were members of a non
AFL union.
The board found that the con
tractor and all the subcontractors
but one bought all their materials
from suppliers within the state
and performed all their work
within the state. That one did
only $800 worth of work on the
The board decided, therefore,
that the impact of the dispute on
interstate commerce was not
great enough to take up the
1 board’s time.
The board has been trying to
stay out of local disputes, but
(Continued On Page 4)
The reason thia issue of The
Journal is late is due to an ex
tensive job of remodeling which
has been going on in our plant
since the first of May which put
our facilities out of order until
it was completed.
The back wall on our building
was ready to topple over and the
landlord was compelled to rebuild
the wall at once. The need was
so urgent that only little notice
could be given us. While this
work was underway we asked the
landlord to make other improve
ments and from now on we will
have The Journal to you on time
each week.
For this delay we are deeply
apologetic and thank our sub
scribers and advertisers for their
patience. All back issues of The
Journal will be coming to you
in short order.
New York.—A rosy picture of
the economic future of the United
States was painted here by the
Twentieth Century Fund in a re
port based on an exhaustive
study of the nation’s needs and
Decrying gloomy implications
i that our economic system was
J ‘‘running down,” the report said
the nation faced the future with
the greatest assets ever possess
ed by a nation and with “enor
| mous” opportunities for both pub
, lie and private investment and
business growth.
By stepping up our output only
8 per cent above normal expecta
tions, based on the actual past
performance of the American eco
nomic system, this country could
I produce enough by 1960 to pro
| vide adequate standards of food,
, housing, education and medical
| care for every American, the re
port said.
The fund's appraisal was con
tained in a illustrated booklet,
i **U. S. A.—Measures of a Na
tion,” written by Thomas R.
Carskadon and Rudolf Modley.
The volume draws upon the find
ings of a nation-wide survey
made by J. Frederic Dew hurst
and Associates.
“By I960,” the report said, “we
j shall have an opportunity to put
, $45,000,000,000 a year into needed
capital goods. On the basis of
oar best sustained record in the «
pest, during the 19990, we would
I be likely to put in about $39,000,
“The extra $6,000,000,000 is a
measured margin of our great
ability to absorb huge additional
investment funds, the frontier on
which our system ean grow and
expand indefinitely.”
I Discussing the present busi
ness recession, the report said:
“For the long pull, we can see
that both boom and bust are
passing phases in the steady rec
ord of our long-term advance.
Wherever we may stand at any
given moment—in boom or de
pression—or at any point in be
I tween—we should remember our
tremendous underlying strength.
We can expand.”
The report made this observa
tion on the basis of an examina
tion of every phase of the coun
try’s economic system:
“From it we get one overriding
impression — our immense power
to produce. We now have the
highest standard of living ever
attained by man. The average
American earns more money, eats
better food, has a better house,
better clothes, schools, theaters,
more conveniences, than the av
erage citisen of any other country
anywhere, any time.”
By 1960, the report declared,
the country’s expected population
of more than 156,000,000 “will
offer a probable market of at least
$159,000,000,000 in money spent
by consumers.”
“This would be a market spend
ing three-quarters more than the
$90,000,000,000 we spent in our
hig ‘boom’ year of 1929,” the re
port added.
The Twentieth Century Fund
was founded in 1919 and endowed
by the late Edward A. Filene.
The fund’s income, administered
as a public trust by a board of
trustees, is devoted entirely to its
own activities.
afl electrical workers
Albany, N. Y.—The wage scale
for union electricians in the Al
bany area has been increased 20
cents an hour. Under a 1-year
contract signed by Local 724, In
ternational Brotherhood of »l««
trical Workers, AFL^ and the
Electrical Contractors Associa
tion of Albany, the new rate, ret
roactive to July 1, is $2.60 an
hour, About 226 electrician are

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