The district court ha no power to decree an injunction against
parties who were not served with process and who appeared only to
object to the jurisdiction over them.
Page 245 U. S. 230
In order that the declarations and conduct of third parties may
be admissible against persons sued with respect to acts done to
carry out an alleged conspiracy, a combination between them and the
defendants must be shown by independent evidence, but the criminal
or otherwise unlawful character of the combination may be shown by
the declarations themselves.
The same liberty which enables men to form unions, and through
the unions to enter into agreements with employers willing to
agree, entitles other men to remain independent of the union and
other employers to agree with them to employ no man who owes any
allegiance or obligation to the union. In the latter case as in the
former, the parties are entitled to be protected by the law in the
enjoyment of the benefits of any lawful agreement they may
make.
The right of action for persuading an employee to leave his
employer, universally recognized, rests upon fundamental principles
of general application.
The right of workingmen to form unions and to enlarge their
membership by inviting other workingmen to join is conceded,
provided the objects of the union be proper and legitimate.
The right of workingmen to enlarge the membership of unions by
inviting other workingmen to join, like other civil rights, must be
exercised with reasonable regard for the conflicting rights of
others, and the members of a union, having notice that the
employees of an establishment are under contract with their
employer not to remain in his employ after joining the union, may
not lawfully, for the purpose of unionizing the establishment
through an actual or threatened strike, induce or seek to induce
such employees to violate their contract by joining the union, or
(what in equity is the same) by secretly agreeing to join, and
thereafter remaining at work until sufficient new members can be
obtained so as to bring about a strike, thus uniting with the union
in a plan to subvert the system of employment to which they
voluntarily have agreed and upon which their employer and their
fellow employees are relying.
An employer is entitled to the goodwill of his employees,
irrespective of the fact that they are employed at will and that
the relation is terminable by either party at any time; he is
entitled to the benefit of the reasonable probability that, by
properly treating them, he will be able to retain them in his
employ and to fill vacancies occurring from time to time by the
employment of other men on the same terms. It is unlawful for a
third party, having notice of this relation, to interfere with it
without just cause or excuse.
Intentionally to do that which is calculated in the ordinary
course of
Page 245 U. S. 231
events to damage, and which does in fact damage, another person
in his property or trade is malicious in law and actionable if done
without just cause or excuse.
A proffered excuse cannot be deemed a just cause or excuse where
it is based upon an assertion of conflicting rights that are sought
to be attained by unfair methods and for the very purpose of
interfering with plaintiff's rights of which defendants have
notice.
Any violation of plaintiff's legal rights, contrived by
defendants for the purpose of inflicting damage or having that as
its necessary effect -- for example, a combination to procure
concerted breaches of contract by plaintiff's employees -- is as
plainly unlawful as if it involved a breach of the peace.
The purpose entertained by defendants to bring about a strike at
plaintiff's mine in order to compel plaintiff, through fear of
financial loss, to consent to the unionization of the mine as the
lesser evil was an unlawful purpose, and the methods resorted to by
defendants -- the inducing of employees to unite with the union in
an effort to subvert the system of employment at the mine by
concerted breaches of the contracts of employment known to be in
force there -- were unlawful and malicious methods, not to be
justified as a fair exercise of the right to increase the
membership of the union.
Convinced by costly strikes of the futility of attempting to
operate under a closed shop agreement with a certain union,
plaintiff established its mine on a nonunion basis, with the
unanimous approval of its employees and under a mutual agreement,
assented to by them all, that plaintiff would continue to run its
mine nonunion, and not recognize the union; that, if any man wanted
to become a member of the union, he was at liberty to do so, but he
could not be a member and remain in plaintiff's employ. Under that
agreement, plaintiff ran its mine for a year and more, and, so far
as appears, without the slightest disagreement between it and its
men, and without any grievance on their part. Thereupon,
defendants, having full notice of the agreement, and acting without
any agency for the men, but as representatives of an organization
of mine workers in other states, and in order to subject plaintiff
to such participation by the union in the management of the mine as
necessarily results from the making of a closed shop agreement,
sent their agent to the mine, who, with full notice of, and for the
very purpose of subverting, the status arising from plaintiff's
agreement and subjecting the mine to the union control, proceeded,
without physical violence, indeed, but by persuasion accompanied
with threats of a reduction of wages and deceptive statements as to
the attitude of the mine management,
Page 245 U. S. 232
to induce plaintiff's employees to join the union and at the
same time to break their agreement with plaintiff by remaining in
its employ after joining, and this for the purpose not of enlarging
the membership of the union, but of coercing plaintiff, through a
strike or the threat of one, into recognition of the union.
Held that plaintiff was clearly entitled to an
injunction.
214 F. 685 reversed.
The case is stated in the opinion.
MR. JUSTICE PITNEY delivered the opinion of the Court.
This was a suit in equity, commenced October 24, 1907, in the
United States Circuit (afterwards District) Court for the Northern
District of West Virginia by the Hitchman Coal & Coke Company,
a corporation organized under the laws of the State of West
Virginia, against certain citizens of the State of Ohio, sued
individually and also as officers of the United Mine Workers of
America. Other noncitizens of plaintiff's state were named as
defendants, but not served with process. Those who were served and
who answered the bill were T. L. Lewis, vice-president of the
U.M.W.A. and of the International Union U.M.W.A.; William Green, D.
H. Sullivan, and "George" W. Savage (his correct Christian name is
Gwilym), respectively president, vice-president, and
secretary-treasurer of district No. 6, U.M.W.A., and A. R. Watkins,
John Zelenka, and Lee Rankin, respectively president,
vice-president, and secretary-treasurer of subdistrict No. 5 of
district No. 6.
Page 245 U. S. 233
Plaintiff owns about 5,000 acres of coal lands situate at or
near Benwood, in Marshall County, West Virginia, and within what is
known as the "Pan Handle District" of that state, and operates a
coal mine thereon, employing between 200 and 300 men, and having an
annual output, in and before 1907, of about 300,000 tons. At the
time of the filing of the bill, and for a considerable time before
and ever since, it operated its mine "nonunion," under an agreement
with its men to the effect that the mine should be run on a
nonunion basis, that the employees should not become connected with
the union while employed by plaintiff, and that, if they joined it,
their employment with plaintiff should cease. The bill set forth
these facts,
inter alia, alleged that they were known to
defendants and each of them, and
"that the said defendants have unlawfully and maliciously agreed
together, confederated, combined and formed themselves into a
conspiracy, the purpose of which they are proceeding to carry out
and are now about to finally accomplish, namely to cause your
orator's mine to be shut down, its plant to remain idle, its
contracts to be broken and unfulfilled, until such time as your
orator shall submit to the demand of the union that it shall
unionize its plant, and, having submitted to such demand, unionize
its plant by employing only union men who shall become subject to
the orders of the union,"
etc. The general object of the bill was to obtain an injunction
to restrain defendants from interfering with the relations existing
between plaintiff and its employees in order to compel plaintiff to
"unionize" the mine.
A restraining order having been granted, followed by a temporary
injunction, the served defendants filed answers, and thereupon made
a motion to modify the injunction, which was refused. 172 F. 963.
An appeal taken by defendants from this order was dismissed by the
circuit court of appeals.
Lewis v. Hitchman Coal & Coke
Co., 176 F. 549. Afterwards,
Page 245 U. S. 234
they applied for and obtained leave to withdraw their answers
and file others; the order, however, prescribed that the withdrawn
answers were "not to be removed from the file." The new answers
denied all material averments of the bill, some of which had been
admitted in the former answers. Plaintiff, having filed
replications, obtained an order that the former answers should be
treated as evidence on behalf of the plaintiff upon the issue
joined. Upon this evidence and other evidence introduced before the
court orally, the case was submitted, with the result that a final
decree was made January 18, 1913, granting a perpetual injunction,
202 F. 512. This was reversed by the circuit court of appeals June
1, 1914 (214 F. 685), but the mandate was stayed pending an
application to this Court for a writ of certiorari. Afterwards an
appeal was allowed. This Court dismissed the appeal, but granted
the writ of certiorari (241 U.S. 644), the record on appeal to
stand as a return.
The final decree of the district court included an award of
injunction against John Mitchell, W. B. Wilson, and Thomas Hughes,
who, while named as defendants in the bill, were not served with
process and entered no appearance except to object to the
jurisdiction of the court over them. Under the federal practice,
the appearance to object did not bind these parties to submit to
the jurisdiction on the overruling of the objection (
Harkness
v. Hyde, 98 U. S. 476,
98 U. S. 479;
Southern Pacific Co. v. Denton, 146 U.
S. 202,
146 U. S. 206;
Mexican Central Railway v. Pinkney, 149 U.
S. 194,
149 U. S. 209;
Goldey v. Morning News, 156 U. S. 518;
Davis v. C., C., C. & St.L. Ry. Co., 217 U.
S. 157,
217 U. S.
174), and, since the injunction operates only
in
personam, it was erroneous to include them as defendants. It
also was erroneous to include personal relief by injunction against
certain named parties who, pending suit, were chosen to succeed
some of the original defendants as officers of the international,
district, and subdistrict
Page 245 U. S. 235
unions, but who were not served with process and did not appear,
they being included upon the ground that they were "before the
court by representation through service having been had upon their
said predecessors in office." This suit was commenced, and was
carried to final decree in the trial court, before the taking
effect of the present Equity Rules (226 U.S. 629), and hence is
governed by the former Rule 48 (210 U.S. 524), under which the
rights of absent parties were expressly reserved.
But these procedural difficulties do not affect that part of the
decree which awarded an injunction against the answering defendants
(Lewis, Green, Sullivan, Savage, Watkins, Zelenka, and Rankin)
"individually," and not as officers of the union or its branches,
except as to Savage, against whom the decree goes in both his
individual and official capacities, he alone having retained at the
time of the final decree the same office he held at the beginning
of the suit. If there was error in excluding the "official"
responsibility of the others, it was not one of which they could
complain, and it was not assigned for error upon their appeal to
the circuit court of appeals. If they were subject to injunction at
all, they were so in their individual capacities. Whether the
decree will bind their successors in office, or their fellow
members of the union, is a question to be determined hereafter, if
and when proceedings are taken to enforce the injunction against
parties other than the answering defendants.
We proceed, therefore, to consider the case as it stands against
the answering defendants.
The district court based its decision upon two grounds: (1) that
the organization known as the United Mine Workers of America, and
its branches, as conducted and managed at the time of the suit and
for many years before, was a common law conspiracy in unreasonable
restraint of trade, and also and especially a conspiracy against
the rights of nonunion miners in West Virginia;
Page 245 U. S. 236
and (2) that the defendants, in an effort to compel the
plaintiff to enter into contractual relations with the union
relating to the employment of labor and the production of coal,
although having knowledge of express contracts existing between
plaintiff and its employees which excluded relations with the
union, endeavored by unlawful means to procure a breach of these
contracts by the employees.
A brief recital of previous transactions between the parties
becomes material. The union is a voluntary and unincorporated
association which was organized in the year 1890 in the States of
Ohio and Indiana, and afterwards was extended to other states. It
is made up of national or "international" district, subdistrict,
and local unions. District No. 6 comprises the coal districts of
Ohio and the Panhandle of West Virginia. Subdistrict No. 5 of that
district comprises five counties and parts of counties in Ohio, and
the Panhandle.
The answering defendants were and are active and influential
members -- leaders -- of the union, as well as officers. Savage,
Lewis, and Sullivan have been members from its formation in 1890,
and have held important offices in it and attended the national
conventions. The others are long time members, and possessed an
influence indicated by the offices they held, but not limited to
the duties of those offices.
From 1897 to 1906, what were known as joint interstate
conferences were held annually or biennially between officials of
the union and representatives of the operators in the "Central
Competitive Field" (which includes Western Pennsylvania, Ohio,
Indiana, and Illinois, but not West Virginia) for the purpose of
agreeing upon the scale of wages and the conditions of employment
in that field. In addition, there were occasional conferences of
the same character affecting other states and districts.
Page 245 U. S. 237
Plaintiff's mine is within the territorial limits of subdistrict
No. 5 of district No. 6. Coal mining operations were commenced
there in the early part of the year 1902, and the mine was operated
"nonunion" until April, 1903, when, under threats from the union
officials, including defendants Watkins and Sullivan, that a
certain unionized mine in Ohio owned by the same proprietors would
be closed down if the men at the Hitchman were not allowed to
organize, plaintiff consented to the unionization of the latter
mine. This went into effect on the 1st or April, 1903, and upon the
very next day, the men were called out on strike because of a
disagreement with the company as to the basis upon which mining
should be paid for. The strike continued until May 23d, requiring
plaintiff to cease operations and preventing it from fulfilling its
contracts, the most important of which was one for the daily supply
of engine coal to the Baltimore & Ohio Railroad at a coaling
station adjoining the mine. The financial loss to plaintiff was
serious. The strike was settled, and the men resumed work upon the
basis of a modification of the official mining scale applicable to
the Hitchman mine.
Again, in the spring of 1904, there was difficulty in renewing
the scale. A temporary scale, agreed upon between operators and
miners for the month of April, 1904, was signed in behalf of the
Hitchman Company on the 18th of April. Two days later, the men at
the Hitchman struck, and the mine remained idle for two months,
during which time plaintiff sustained serious losses in business
and was put to heavy expense in obtaining coal from other sources
to fill its contract with the Baltimore & Ohio Railroad
Company. The strike was settled by the adoption of the official
scale for the Panhandle District, with amendatory local rules for
the Hitchman mine.
After this, there was little further trouble until April 1,
Page 245 U. S. 238
1906, when a disagreement arose between the union and an
association of operators with which plaintiff was not connected,
the association being in fact made up of its competitors, about
arranging the terms of the scale for the ensuing two years. At the
same time, a similar disagreement arose between the operators and
the union officials in the Central Competitive Field. The result
was a termination of the interstate conferences and a failure to
establish any official scale for the ensuing two years, followed by
a widespread strike, or a number of concurrent strikes, involving
the most of the bituminous coal-producing districts. There was
absolutely no grievance or ground of disagreement at the Hitchman
mine, beyond the fact that the mining scale expired by its own
terms on March 31st, and the men had not received authority from
the union officials either to renew it or to agree to a new one in
its place. Plaintiff came to an understanding with the local union
to the effect that, if its men would continue at work, the company
would pay them from April 1st whatever the new scale might be,
except that, if the new scale should prove to be lower than that
which expired on March 31st, there should be no reduction in wages,
while, if the scale was raised, the company would pay the increased
amount, dating it back to April 1st. This was satisfactory to the
men, but, as the question of a new scale was then under discussion
at a conference between the officials of the union and the
representatives of the Operators' Association and plaintiff's
employees wished to get the sanction of their officers, the manager
of the Hitchman mine got into communication with those officials,
including defendant Green, president of District No. 6, and
endeavored to secure their assent to the temporary arrangement, but
without success. Then a committee of the local union, including
Daugherty, its president, took up the matter with Green and
received permission to mine and load engine coal
Page 245 U. S. 239
until further notice from him. Under this arrangement, the men
remained at work for about two weeks. On April 15th, defendant
Zelenka, vice-president of the subdistrict, visited the mine,
called a meeting of the miners, and addressed them in a foreign
tongue, as a result of which they went on strike the next day, and
the mine was shut down until the 12th of June, when it resumed as a
"nonunion" mine, so far as relations with the U.M.W.A. were
concerned.
During this strike, plaintiff was subjected to heavy losses and
extraordinary expenses with respect to its business, of the same
kind that had befallen it during the previous strikes.
About the 1st of June, a self-appointed committee of employees
called upon plaintiff's president, stated in substance that they
could not remain longer on strike because they were not receiving
benefits from the union, and asked upon what terms they could
return to work. They were told that they could come back, but not
as members of the United Mine Workers of America; that
thenceforward the mine would be run nonunion, and the company would
deal with each man individually. They assented to this, and
returned to work on a nonunion basis. Mr. Pickett, the mine
superintendent, had charge of employing the men, then and
afterwards, and to each one who applied for employment he explained
the conditions, which were that, while the company paid the wages
demanded by the union and as much as anybody else, the mine was run
nonunion, and would continue so to run; that the company would not
recognize the United Mine Workers of America; that, if any man
wanted to become a member of that union, he was at liberty to do
so, but he could not be a member of it and remain in the employ of
the Hitchman Company; that, if he worked for the company, he would
have to work as a nonunion man. To this each man employed gave his
assent, understanding
Page 245 U. S. 240
that, while he worked for the company, he must keep out of the
union.
Since January, 1908 (after the commencement of the suit), in
addition to having this verbal understanding, each man has been
required to sign an employment card expressing in substance the
same terms. This has neither enlarged nor diminished plaintiff's
rights, the agreement not being such as is required by law to be in
writing.
Under this arrangement as to the terms of employment, plaintiff
operated its mine from June 12, 1906, until the commencement of the
suit in the fall of the following year.
During the same period, a precisely similar method of employment
obtained at the Glendale mine, a property consisting of about 1,200
acres of coal land adjoining the Hitchman property on the south,
and operated by a company having the same stockholders and the same
management as the Hitchman, the office of the Glendale mine being
at the Hitchman Coal & Coke Company's office. Another mine in
the Panhandle, known as the Richland, a few miles north of the
Hitchman, likewise was run "nonunion."
In fact, all coal mines in the Panhandle and elsewhere in West
Virginia, except in a small district known as the Kanawha field,
were run "nonunion," while the entire industry in Ohio, Indiana,
and Illinois was operated on the "closed shop" basis, so that no
man could hold a job about the mines unless he was a member of the
United Mine Workers of America. Pennsylvania occupied a middle
ground, only a part of it being under the jurisdiction of the
union. Other states need not be particularly mentioned.
The unorganized condition of the mines in the Panhandle and some
other districts was recognized as a serious interference with the
purposes of the union in the
Page 245 U. S. 241
Central Competitive Field, particularly as it tended to keep the
cost of production low, and, through competition with coal produced
in the organized field, rendered it more difficult for the
operators there, to maintain prices high enough to induce them to
grant certain concessions demanded by the union. This was the
subject of earnest and protracted discussion in the annual
international convention of the U.M.W.A., held at Indianapolis,
Indiana, in the month of January, 1907, at which all of the
answering defendants were present as delegates and participated in
the proceedings. The discussion was based upon statements contained
in the annual reports of John Mitchell, as president of the union
(joined as a defendant in the bill but not served with process),
and of defendant Lewis as vice-president, respecting the causes and
consequences of the strike of 1906, and the policy to be adopted by
the union for the future. In these reports, it was made to appear
that the strike had been caused immediately by the failure of the
joint convention of operators and miners representing the central
and southwestern competitive fields, held in the early part of the
year 1906, to come to an agreement for a renewal of the mining
scale; that the strike was widespread, involving not less than
400,000 mine workers, was terminated by "district settlements,"
with variant results in different parts of the territory involved,
and had not been followed by a renewal of the former relations
between the operators and miners in the Central Competitive Field.
Another result of the strike was a large decrease in the membership
of the union. Two measures of relief were proposed: first, that
steps be taken to reestablish the joint interstate conferences, and
second, the organization of the hitherto unorganized fields,
including the Panhandle district of West Virginia, under closed
shop agreements, with all men about the mines included in the
membership of the United Mine Workers
Page 245 U. S. 242
of America. In the course of the discussion, the purpose of
organizing West Virginia in the interest of the unionized mine
workers in the Central Competitive Field, and the probability that
it could be organized only by means of strikes, were repeatedly
declared and were disputed by nobody. All who spoke advocated
strikes, differing only as to whether these should be nationwide or
sectional. Defendant Lewis, in his report, recommended an
abandonment of the policy of sectional settlements which had been
pursued in the previous year. This recommendation, interpreted as a
criticism of the policy pursued under the leadership of President
Mitchell in the settlement of the 1906 strike, was the subject of
long and earnest debate, in the course of which Lewis said:
"When we organize West Virginia, when we organize the
unorganized sections of Pennsylvania, we will organize them by a
strike movement."
And again, towards the close of the debate: "No one has made the
statement that we can organize West Virginia without a strike."
Defendant Green took part, favoring the view of Mr. Lewis that
strikes should be treated nationally instead of sectionally. In the
course of his remarks he said:
"I say to you, gentlemen, one reason why I opposed the policy
that was pursued last year was because, over in Ohio, we were
peculiarly situated. We had West Virginia on the south and
Pennsylvania on the east, and after four months of a strike in
Eastern Ohio, we had reached the danger line. We felt keenly the
competition from West Virginia, and during the suspension our
miners in Ohio chafed under the object lesson they had. They saw
West Virginia coal go by, trainload after trainload passing their
doors, when they were on strike. This coal supplied the markets
that they should have had. There is no disguising the fact,
something must be done to remedy this condition. Year after year,
Ohio has had to go home and strike in some portion of the district
to enforce the
Page 245 U. S. 243
interstate agreement that was signed up here. . . . I confess
here and now that the overwhelming sentiment in Ohio was that a
settlement by sections would not correct the conditions we
complained of. Now something must be done; it is absolutely
necessary to protect us against the competition that comes from the
unorganized fields east of us."
Mr. Mitchell opposed the view of defendant Lewis, reiterating an
opinion, repeatedly expressed before, that West Virginia and the
other unorganized fields "would not be thoroughly organized except
as the result of a successful strike," but declaring that
"they will not be organized at all, strike or no strike, unless
we are able to support the men in those fields from the first day
they lay down their tools. . . . Now I believe it is possible --
indeed I believe it is probable -- that, in the not distant future,
we will be able to inaugurate a movement in West Virginia and the
other unorganized fields that will involve them in a strike, and
then we will expect you to furnish the sinews of war, as you have
done in the past, to keep these men in idleness."
The discussion continued during three days, and at the end of it
the report of a committee which expressed disagreement with Vice
President Lewis' opposition to sectional settlements and
recommended "a continuation in the future of the same wise,
conservative, business-like policies" that had been pursued by
President Mitchell was adopted by a
viva voce vote.
The plain effect of this action was to approve a policy which,
as applied to the concrete case, meant that in order to relieve the
union miners of Ohio, Indiana, and Illinois from the competition of
the cheaper product of the nonunion mines of West Virginia, the
West Virginia mines should be "organized" by means of strikes local
to West Virginia, the strike benefits to be paid by assessments
upon the union miners in the other states mentioned, while they
remained at work.
Page 245 U. S. 244
This convention was followed by an annual convention of
Subdistrict 5 of District 6, held in the month of March, 1907, at
which defendants Watkins and Rankin were present as president and
secretary of the subdistrict. Defendant Lewis, as national
vice-president, occupied the chair during several of the sessions.
Defendant Zelenka was present as a delegate, and also Thomas
Hughes, who, while named as a defendant in the present suit, was
not served with process. Watkins and Rankin, in their reports,
recommended the complete unionization of the mines in the Panhandle
counties, with particular reference to the Hitchman, the Glendale,
the Richland, and two others, and as a result it was resolved
"that the subdistrict officers, together with the district
officers, be authorized to take up the work of organizing every
mine in the subdistrict as quickly as it can be done."
Evidently in pursuance of this resolution, defendants Green,
Zelenka, and Watkins, about July 1, 1907, called at plaintiff's
office and laid before its general manager, Mr. Koch, a proposition
for the unionization of the mine. He declined to consider it, but
at their request laid it before plaintiff's board of directors, who
rejected the proposition, and the manager informed Green of this.
In one of the interviews, Koch informed these defendants of the
terms of plaintiff's working agreement with its employees to the
effect that the mine was to be run nonunion, and they were not to
become members of the union.
About the same time, a Mr. McKinley, who was operating the
Richland mine nonunion, was interviewed by the union leaders,
notified of the resolution adopted by the subdistrict convention,
and, having asked that his mine be let alone, was met with the
threat that they would secure the support of his men, and that, if
he did not recognize the union, they would shut down his mine.
Page 245 U. S. 245
In one of the interviews that ensued, he was told that it was
their purpose to organize the Glendale, the Hitchman, the Richland,
and some other mines; that, at the Glendale, they had twenty-four
men who had joined the organization,
"and that they had sixty men who had signed up or had agreed to
join the organization at Hitchman, and that they were going to shut
the mine down as soon as they got a few more men."
With respect to their progress at his own mine, he was kept in
the dark until about the middle of October, 1907, when, through the
activities of the organizer Hughes, they succeeded in shutting it
down, and it remained closed until a restraining order was allowed
by the court, immediately after which it resumed nonunion.
The evidence renders it clear that Hughes was sent into the
Panhandle to organize all the mines there in accordance with the
resolution of the subdistrict convention. The bill made a statement
of his activities, and alleged that he was acting as an organizer
for the union. Defendants' final answers made a complete denial,
but in this are contradicted by admissions made in the earlier
answers and by other and undisputed evidence. The only defendant
who testified upon the subject declared that Hughes was employed by
district No. 6 as an organizer, but denied that he had power or
authority to shut down the Hitchman mine.
He arrived at that mine some time in September, 1907, and
remained there or in that vicinity until the latter part of
October, conducting a campaign of organization at the Hitchman and
at the neighboring Glendale and Richland mines.
The evidence shows that he had distinct and timely notice that
membership in the union was inconsistent with the terms of
employment at all three mines, and a violation of the express
provisions of the agreement at the Hitchman and Glendale.
Page 245 U. S. 246
Having unsuccessfully applied to Koch and McKinley for their
cooperation, Hughes proceeded to interview as many of the men as he
could reach and to hold public meetings in the interest of the
union. There is clear and uncontradicted evidence that he did not
confine himself to mere persuasion, but resorted to deception and
abuse. In his public speeches, he employed abusive language
respecting Mr. Pickett, William Daugherty, and Jim Jarrett.
* He prophesied,
in such a way that ignorant foreign-born miners such as he was
addressing naturally might believe him to be speaking with
knowledge that the wages paid by the Hitchman would be reduced
unless the mine was unionized. The evidence as to the methods he
employed in personally interviewing the miners, while meager, is
significant. Myers, a Hitchman miner, testified:
"He told me that he was a good friend of Mr. Koch, and that Mr.
Koch had nothing against having the place organized again. He said
he was a friend of his, and I made the remark that I would ask Mr.
Koch and see if it was so, and he said no, that was of no use,
because he was telling me the truth."
He did not confine his attentions to men who already were in
plaintiff's employ, but in addition dissuaded men who had accepted
employment from going to work.
A highly significant thing, giving character to Hughes' entire
course of conduct, is that, while his solicitation of the men was
more or less public, as necessarily it had to be, he was careful to
keep secret the number and the names of those who agreed to join
the union. Myers, being asked to allow his name to be entered on a
book
Page 245 U. S. 247
that Hughes carried, tried to see the names already entered,
"but he would not show anything; he told me he had it, and I asked
him how many names was on it, and he said he had about enough to
crack off.'" To Stewart, another Hitchman miner, he
said
"he was forming a kind of secret order among the men; he said he
had a few men -- he did not state the number of them -- and he said
each man was supposed to give him so much dues to keep it going,
and then he said after he got the majority, he would organize the
place."
Pickett, the mine superintendent, had learned of only five men
at the Glendale who were inclined to join Hughes' movement, but
when these were asked to remain outside of the mine for a talk,
fifteen other men waited with them, and upon being reminded that,
while the company would not try to prevent them from becoming
members of the union, they could not be members and at the same
time work for the Glendale Company, they all accepted this as
equivalent to a notice of discharge. And, as has been stated, the
owner of the Richland, while repeatedly threatened with
unionization, was kept in the dark as to the progress made by the
organizer amongst his employees until the mine was actually shut
down.
The question whether Hughes had "power or authority" to shut
down the Hitchman mine is beside the mark. We are not here
concerned with any question of
ultra vires, but with an
actual threat of closing down plaintiff's mine, made by Hughes
while acting as agent of an organized body of men who indubitably
were united in a purpose to close it unless plaintiff would conform
to their wishes with respect to its management, and who lacked the
power to carry out that purpose only because they had not as yet
persuaded a sufficient number of the Hitchman miners to join with
them, and hence employed Hughes as an "organizer" and sent him to
the mine with the very
Page 245 U. S. 248
object of securing the support of the necessary number of
miners. They succeeded with respect to one of the mines threatened
(the Richland), and preparations of like character were in progress
at the Hitchman and the Glendale at the time the restraining order
was made in this cause.
If there be any practical distinction between organizing the
miners and organizing the mine, it has no application to this case.
Unionizing the miners is but a step in the process of unionizing
the mine, followed by the latter almost as a matter of course.
Plaintiff is as much entitled to prevent the first step as the
second, so far as its own employees are concerned, and to be
protected against irreparable injury resulting from either.
Besides, the evidence shows without any dispute that defendants
contemplated no halfway measures, but were bent on organizing the
mine, the "consent" of plaintiff to be procured through such a
control of its employees as would render any further independent
operation of the mine out of the question. This is evident from the
discussions and resolutions of the international and subdistrict
conventions, from what was said by defendants Green, Zelenka, and
Watkins to plaintiff's manager, and to the operator of the
Richland, and from all that was said and done by Hughes in his
effort to organize the Hitchman, Glendale, and Richland mines.
In short, at the time the bill was filed, defendants, although
having full notice of the terms of employment existing between
plaintiff and its miners, were engaged in an earnest effort to
subvert those relations without plaintiff's consent, and to
alienate a sufficient number of the men to shut down the mine, to
the end that the fear of losses through stoppage of operations
might coerce plaintiff into "recognizing the union" at the cost of
its own independence. The methods resorted to by their "organizer"
were such as have been described. The legal consequences remain for
discussion.
Page 245 U. S. 249
The facts we have recited are either admitted or else proved by
clear and undisputed evidence and indubitable inferences therefrom.
The proceedings of the international and subdistrict conventions
were shown by the introduction of official verbatim reports,
properly authenticated. It is objected that these proceedings,
especially insofar as they include the declarations and conduct of
others than the answering defendants, are not admissible because
the existence of a criminal or unlawful conspiracy is not made to
appear by evidence
aliunde. The objection is untenable. In
order that the declarations and conduct of third parties may be
admissible in such a case, it is necessary to show by independent
evidence that there was a combination between them and defendants,
but it is not necessary to show by independent evidence that the
combination was criminal or otherwise unlawful. The element of
illegality may be shown by the declarations themselves. The rule of
evidence is commonly applied in criminal cases, but is of general
operation; indeed, it originated in the law of partnership. It
depends upon the principle that, when any number of persons
associate themselves together in the prosecution of a common plan
or enterprise, lawful or unlawful, from the very act of association
there arises a kind of partnership, each member being constituted
the agent of all, so that the act or declaration of one, in
furtherance of the common object, is the act of all, and is
admissible as primary and original evidence against them.
Pleasants v.
Fant, 22 Wall. 116,
89 U. S. 119;
Connecticut Mutual Life Ins. Co. v. Hillmon, 188 U.
S. 208,
188 U. S. 218;
Story, Part. §§ 107, 108; 1 Greenleaf, Ev. §§ 112, 113 (184 b, c);
2 Starkie, Ev. (2d ed.) 25, 26;
King v. Hardwick, 11 East,
578, 585, 589;
Sandilands v. Marsh, 2 Barn. & Ald.
673, 679;
Wood v. Braddick, 1 Taunt. 104, 105;
Van
Reimsdyk v. Kane (Story, J.), 1 Gall. 630, 635;
Aldrich v.
Warren, 16 Me. 465,
Page 245 U. S. 250
468;
Pierce v. Wood, 23 N.H. 519, 531;
Page v.
Parker, 40 N.H. 47, 62;
State v. Thibeau, 30 Vt. 100,
105;
Jenne v. Joslyn, 41 Vt. 478, 484;
Locke v.
Stearns, 1 Metc. 560, 563;
Lowe v. Dalrymple, 117 Pa.
564, 568;
Main v. Aukam, 4 App.D.C. 51, 56.
Upon a kindred principle, the declarations and conduct of an
agent, within the scope and in the course of his agency, are
admissible as original evidence against the principal, just as his
own declarations or conduct would be admissible.
Barreda v.
Silsbee, 21 How. 146,
62 U. S.
164-165;
Vicksburg & Meridian R. Co. v.
O'Brien, 119 U. S. 99,
119 U. S. 104;
La Abra Silver Mining Co. v. United States, 175 U.
S. 423,
175 U. S. 498.
And since the evidence of Hughes' agency is clear and undisputed --
that, as the representative of a voluntary association of which the
answering defendants were active members, and in the execution of a
purpose to which they all had given consent, and in which some of
them were actively cooperating, he was engaged in an effort to
organize the coal mines of the Panhandle district -- it is equally
clear that his declarations and conduct while so doing are
evidential against the defendants.
What are the legal consequences of the facts that have been
detailed?
That the plaintiff was acting within its lawful rights in
employing its men only upon terms of continuing nonmembership in
the United Mine Workers of America is not open to question.
Plaintiff's repeated costly experiences of strikes and other
interferences while attempting to "run union" were a sufficient
explanation of its resolve to run "nonunion," if any were needed.
But neither explanation nor justification is needed. Whatever may
be the advantages of "collective bargaining," it is not bargaining
at all, in any just sense, unless it is voluntary on both sides.
The same liberty which enables men to form unions, and, through the
union, to enter into agreements
Page 245 U. S. 251
with employers willing to agree, entitles other men to remain
independent of the union and other employers to agree with then to
employ no man who owes any allegiance or obligation to the union.
In the latter case as in the former, the parties are entitled to be
protected by the law in the enjoyment of the benefits of any lawful
agreement they may make. This Court repeatedly has held that the
employer is as free to make nonmembership in a union a condition of
employment as the working man is free to join the union, and that
this is a part of the constitutional rights of personal liberty and
private property, not to be taken away even by legislation, unless
through some proper exercise of the paramount police power.
Adair v. United States, 208 U. S. 161,
208 U. S. 174;
Coppage v. Kansas, 236 U. S. 1,
236 U. S. 14. In
the present case, needless to say, there is not act of legislation
to which defendants may resort for justification.
Plaintiff, having. in the exercise of its undoubted rights.
established a working agreement between it and its employees, with
the free assent of the latter, is entitled to be protected in the
enjoyment of the resulting status, as in any other legal right.
That the employment was "at will," and terminable by either party
at any time, is of no consequence. In
Truax v. Raich,
239 U. S. 33,
239 U. S. 38,
this Court ruled upon the precise question as follows:
"It is said that the bill does not show an employment for a
term, and that, under an employment at will, the complainant could
be discharged at any time, for any reason or for no reason, the
motive of the employer being immaterial. The conclusion, however,
that is sought to be drawn is too broad. The fact that the
employment is at the will of the parties respectively does not make
it one at the will of others. The employee has manifest interest in
the freedom of the employer to exercise his judgment without
illegal interference or compulsion, and, by the weight
Page 245 U. S. 252
of authority, the unjustified interference of third persons is
actionable although the employment is at will [citing many
cases]."
In short, plaintiff was and is entitled to the goodwill of its
employees, precisely as a merchant is entitled to the goodwill of
his customers although they are under no obligation to continue to
deal with him. The value of the relation lies in the reasonable
probability that, by properly treating its employees, and paying
them fair wages, and avoiding reasonable grounds of complaint, it
will be able to retain them in its employ and to fill vacancies
occurring from time to time by the employment of other men on the
same terms. The pecuniary value of such reasonable probabilities is
incalculably great, and is recognized by the law in a variety of
relations.
See Brennan v. United Hatters (cited with
approval in
Truax v. Raich, supra), 73 N.J.L., 729, 749;
Brown v. Honiss, 74 N.J.L., 501, 514;
Jersey City
Printing Co. v. Cassidy, 63 N.J.Eq. 759, 767;
Walker v.
Cronin, 107 Mass. 555, 565-56;
Moran v. Dunphy, 177
Mass. 485, and cases there cited;
L.D. Willcutt & Sons Co.
v. Driscoll, 200 Mass. 110, 117, etc.
The right of action for persuading an employee to leave his
employer is universally recognized, nowhere more clearly than in
West Virginia, and it rests upon fundamental principles of general
application, not upon the English statute of laborers.
Thacker
Coal Co. v. Burke, 59 W.Va. 253, 255;
Walker v.
Cronin, 107 Mass. 555, 567;
Angle v. Chicago, St. Paul,
etc., Ry. Co., 151 U. S. 1,
151 U. S. 13;
Noice, Adm'x v. Brown, 39 N.J.L. 569, 572.
We return to the matters set up by way of justification or
excuse for defendants' interference with the situation existing at
plaintiff's mine.
The case involves no question of the rights of employees.
Page 245 U. S. 253
Defendants have no agency for plaintiff's employees, nor do they
assert any disagreement or grievance in their behalf. In fact,
there is none, but, if there were, defendants could not, without
agency, set up any rights that employees might have. The right of
the latter to strike would not give to defendants the right to
instigate a strike. The difference is fundamental.
It is suggested as a ground of criticism that plaintiff
endeavored to secure a closed nonunion mine through individual
agreements with its employees, as if this furnished some sort of
excuse for the employment of coercive measures to secure a closed
union shop through a collective agreement with the union. It is a
sufficient answer in law to repeat that plaintiff had a legal and
constitutional right to exclude union men from its employ. But it
may be worthwhile to say, in addition, first, that there was no
middle ground open to plaintiff, no option to have an "open shop"
employing union men and nonunion men indifferently; it was the
union that insisted upon closed shop agreements, requiring even
carpenters employed about a mine to be members of the union, and
making the employment of any nonunion man a ground for a strike,
and secondly, plaintiff was in the reasonable exercise of its
rights in excluding all union men from its employ, having learned
from a previous experience that, unless this were done, union
organizers might gain access to its mine in the guise of
laborers.
Defendants set up, by way of justification or excuse, the right
of workingmen to form unions and to enlarge their membership by
inviting other workingmen to join. The right is freely conceded,
provided the objects of the union be proper and legitimate, which
we assume to be true, in a general sense, with respect to the union
here in question.
Gompers v. Bucks Stove & Range Co.,
221 U. S. 418,
221 U. S. 439.
The cardinal error of defendants' position lies
Page 245 U. S. 254
in the assumption that the right is so absolute that it may be
exercised under any circumstances and without any qualification,
whereas, in truth, like other rights that exist in civilized
society, it must always be exercised with reasonable regard for the
conflicting rights of others.
Brennan v. United Hatters,
73 N.J.L., 729, 749. The familiar maxim, "
sic utere tuo ut
alienum non laedas" -- literally translated, "So use your own
property as not to injure that of another person," but by more
proper interpretation, "so as not to injure the rights of another"
(Broom's Leg. Max. [8th ed.] 289) -- applies to conflicting rights
of every description. For example, where two or more persons are
entitled to use the same road or passage, each one in using it is
under a duty to exercise care not to interfere with its use by the
others, or to damage them while they are using it. And a most
familiar application is the action for enticing an employee, in
which it never was a justification that defendant wished to retain
for himself the services of the employe. 1 Black.Com. 429; 3
id. 142.
Now, assuming defendants were exercising, through Hughes, the
right to invite men to join their union, still they had plain
notice that plaintiff's mine was run "nonunion," that none of the
men had a right to remain at work there after joining the union,
and that the observance of this agreement was of great importance
and value both to plaintiff and to its men, who had voluntarily
made the agreement and desired to continue working under it. Yet
defendants, far from exercising any care to refrain from
unnecessarily injuring plaintiff, deliberately and advisedly
selected that method of enlarging their membership which would
inflict the greatest injury upon plaintiff and its loyal employees.
Every Hitchman miner who joined Hughes' "secret order" and
permitted his name to be entered upon Hughes' list was guilty of a
breach of his contract of employment, and
Page 245 U. S. 255
acted a lie whenever thereafter he entered plaintiff's mine to
work. Hughes not only connived at this, but must be deemed to have
caused and procured it, for it was the main feature of defendants'
plan, the
sine qua non of their programme. Evidently it
was deemed to be necessary, in order to "organize the Panhandle by
a strike movement," that, at the Hitchman, for example, man after
man should be persuaded to join the union, and, having done so, to
remain at work keeping the employer in ignorance of their number
and identity until so many had joined that, by stopping work in a
body, they could coerce the employer and the remaining miners to
"organize the mine" -- that is, to make an agreement that none but
members of the union should be employed, that terms of employment
should be determined by negotiation not with the employees, but
with union officers -- perhaps residents of other states and
employees of competing mines -- and that all questions in
controversy between the mine operator and the miners should
likewise be settled with outsiders.
True, it is suggested that, under the existing contract, an
employee was not called upon to leave plaintiff's employ until he
actually joined the union, and that the evidence shows only an
attempt by Hughes to induce the men to agree to join, but no
attempt to induce them to violate their contract by failing to
withdraw from plaintiff's employment after actually joining. But,
in a court of equity, which looks to the substance and essence of
things and disregards matters of form and technical nicety, it is
sufficient to say that to induce men to agree to join is but a mode
of inducing them to join, and that, when defendants "had sixty men
who had signed up or agreed to join the organization at Hitchman,"
and were "going to shut the mine down as soon as they got a few
more men," the sixty were, for practical purposes, and therefore in
the sight of equity, already members of the
Page 245 U. S. 256
union, and it needed no formal ritual or taking of an oath to
constitute them such; their uniting with the union in the plan to
subvert the system of employment at the Hitchman mine, to which
they had voluntarily agreed and upon which their employer and their
fellow employees were relying, was sufficient.
But the facts render it plain that what the defendants were
endeavoring to do at the Hitchman mine and neighboring mines cannot
be treated as a
bona fide effort to enlarge the membership
of the union. There is no evidence to show, nor can it be inferred,
that defendants intended or desired to have the men at these mines
join the union unless they could organize the mines. Without this,
the new members would be added to the number of men competing for
jobs in the organized districts, while nonunion men would take
their places in the Panhandle mines. Except as a means to the end
of compelling the owners of these mines to change their method of
operation, the defendants were not seeking to enlarge the union
membership.
In any aspect of the matter, it cannot be said that defendants
were pursuing their object by lawful means. The question of their
intention -- of their
bona fides -- cannot be ignored. It
enters into the question of malice. As Bowen, L.J., justly said in
the
Mogul Steamship Case, 23 Q.B.Div. 613:
"Intentionally to do that which is calculated in the ordinary
course of events to damage, and which does in fact damage, another
in that other person's property or trade is actionable if done
without just cause or excuse."
And the intentional infliction of such damage upon another
without justification or excuse is malicious in law.
Bitterman
v. Louisville & Nashville R. Co., 207 U.
S. 205,
207 U. S. 223;
Brennan v. United Hatters, 73 N.J.L., 729, 744,
et
seq., and cases cited. Of course, in a court of equity, when
passing upon the right of injunction, damage threatened,
irremediable by action at law, is equivalent to damage done. And we
cannot deem
Page 245 U. S. 257
the proffered excuse to be a "just cause or excuse" where it is
based, as in this case, upon an assertion of conflicting rights
that are sought to be attained by unfair methods, and for the very
purpose of interfering with plaintiff's rights, of which defendants
have full notice.
Another fundamental error in defendants' position consists in
the assumption that all measures that may be resorted to are lawful
if they are "peaceable" -- that is, if they stop short of physical
violence, or coercion through fear of it. In our opinion, any
violation of plaintiff's legal rights contrived by defendants for
the purpose of inflicting damage, or having that as its necessary
effect, is as plainly inhibited by the law as if it involved a
breach of the peace. A combination to procure concerted breaches of
contract by plaintiff's employees constitutes such a violation.
Flaccus v. Smith, 199 Pa. 128;
South Wales Miners'
Federation v. Glamorgan Coal Co., [1905] A.C. 239, 244, 250,
253;
Jonas Glass Co. v. Glass Bottle Blowers' Association,
77 N.J.Eq. 219, 223.
The present is not a case of merely withholding from an employer
an economic need -- as a supply of labor -- until he assents to be
governed by union regulations. Defendants have no supply of labor
of which plaintiff stands in need. By the statement of defendant
Lewis himself, made in his formal report to the Indianapolis
convention of 1907, out of more than 370,000 coal miners in the
States of Pennsylvania, Maryland, Virginia, and West Virginia, less
than 80,000 (about 22 percent) were members of the Union.
Considering the Panhandle separately, doubtless the proportion was
even smaller, and the supply of nonunion labor ample. There is no
reason to doubt that, if defendants had been actuated by a genuine
desire to increase the membership of the union without unnecessary
injury to the known rights of plaintiff, they would have permitted
their proselytes to withdraw from plaintiff's employ when and as
they became
Page 245 U. S. 258
affiliated with the union -- as their contract of employment
required them to do -- and that, in this event, plaintiff would
have been able to secure an adequate supply of nonunion men to take
their places. It was with knowledge of this, and because of it,
that defendants, through Hughes as their agent, caused the new
members to remain at work in plaintiff's mine until a sufficient
number of men should be persuaded to join so as to bring about a
strike and render it difficult, if not practically impossible, for
plaintiff to continue to exercise its undoubted legal and
constitutional right to run its mine "nonunion."
It was one thing for plaintiff to find, from time to time,
comparatively small numbers of men to take vacant places in a going
mine, another and a much more difficult thing to find a complete
gang of new men to start up a mine shut down by a strike, when
there might be a reasonable apprehension of violence at the hands
of the strikers and their sympathizers. The disordered condition of
a mining town in time of strike is matter of common knowledge. It
was this kind of intimidation, as well as that resulting from the
large organized membership of the union, that defendants sought to
exert upon plaintiff, and it renders pertinent what was said by
this Court in the
Gompers case,
221 U.
S. 418,
221 U. S. 439,
immediately following the recognition of the right to form labor
unions:
"But the very fact that it is lawful to form these bodies, with
multitudes of members, means that they have thereby acquired a vast
power, in the presence of which the individual may be helpless.
This power, when unlawfully used against one, cannot be met except
by his purchasing peace at the cost of submitting to terms which
involve the sacrifice of rights protected by the Constitution, or
by standing on such rights and appealing to the preventive powers
of a court of equity. When such appeal is made, it is the duty of
government to protect the one against the many, as well as the many
against the one. "
Page 245 U. S. 259
Defendants' acts cannot be justified by any analogy to
competition in trade. They are not competitors of plaintiff, and if
they were, their conduct exceeds the bounds of fair trade.
Certainly, if a competing trader should endeavor to draw custom
from his rival not by offering better or cheaper goods, employing
more competent salesmen, or displaying more attractive
advertisements, but by persuading the rival's clerks to desert him
under circumstances rendering it difficult or embarrassing for him
to fill their places, any court of equity would grant an injunction
to restrain this as unfair competition.
Upon all the facts, we are constrained to hold that the purpose
entertained by defendants to bring about a strike at plaintiff's
mine in order to compel plaintiff, through fear of financial loss,
to consent to the unionization of the mine as the lesser evil was
an unlawful purpose, and that the methods resorted to by Hughes --
the inducing of employees to unite with the union in an effort to
subvert the system of employment at the mine by concerted breaches
of the contracts of employment known to be in force there, not to
mention misrepresentation, deceptive statements, and threats of
pecuniary loss communicated by Hughes to the men -- were unlawful
and malicious methods, and not to be justified as a fair exercise
of the right to increase the membership of the union.
There can be no question that plaintiff was threatened with
danger of an immediate strike as a result of the activities of
Hughes. The effect of his arguments and representations is not to
be judged from the testimony of those witnesses who rejected his
overtures. Naturally, it was not easy for plaintiff to find men who
would testify that they had agreed with Hughes to break their
contract with plaintiff. One such did testify. But the true measure
of the extent of his operations and the probability of his carrying
them to success are indicated by his
Page 245 U. S. 260
declaration to Myers that he had about enough names at the
Hitchman to "crack off," by the statement to McKinley that
twenty-four men at the Glendale mine had joined the organization,
and sixty at the Hitchman, and by the fact that they actually
succeeded in shutting down the Richland about the middle of
October. The declaration made concerning the Glendale is
corroborated by the evidence of what happened at that mine.
That the damage resulting from a strike would be irremediable at
law is too plain for discussion.
Therefore, upon the undisputed facts of the case and the
indubitable inferences from them, plaintiff is entitled to relief
by injunction. Having become convinced by three costly strikes,
occurring within a period of as many years, of the futility of
attempting to operate under a closed shop agreement with the union,
it established the mine on a nonunion basis, with the unanimous
approval of its employees -- in fact, upon their suggestion -- and
under a mutual agreement, assented to by every employee, that
plaintiff would continue to run its mine nonunion and would not
recognize the United Mine Workers of America, that, if any man
wanted to become a member of that union, he was at liberty to do
so, but he could not be a member and remain in plaintiff's employ.
Under that agreement, plaintiff ran its mine for a year and more,
and, so far as appears, without the slightest disagreement between
it and its men, and without any grievance on their part. Thereupon
defendants, having full notice of the working agreement between
plaintiff and its men, and acting without any agency for those men,
but as representatives of an organization of mine workers in other
states, and in order to subject plaintiff to such participation by
the union in the management of the mine as necessarily results from
the making of a closed shop agreement, sent their agent to the
mine, who, with full notice of, and for the very purpose of
subverting,
Page 245 U. S. 261
the status arising from plaintiff's working agreement and
subjecting the mine to the union control, proceeded, without
physical violence, indeed, but by persuasion accompanied with
threats of a reduction of wages and deceptive statements as to the
attitude of the mine management, to induce plaintiff's employees to
join the union and at the same time to break their agreement with
plaintiff by remaining in its employ after joining, and this for
the purpose not of enlarging the membership of the union, but of
coercing plaintiff, through a strike or the threat of one, into
recognition of the union.
As against the answering defendants, plaintiff's right to an
injunction is clear; as to the others named as defendants, but not
served with process, the decree is erroneous, as already
stated.
Respecting the sweep of the injunction, we differ somewhat from
the result reached by the district court.
So far as it restrains (1) interfering or attempting to
interfere with plaintiff's employees for the purpose of unionizing
plaintiff's mine without its consent, by representing or causing to
be represented to any of plaintiff's employees, or to any person
who might become an employee of plaintiff, that such person will
suffer or is likely to suffer some loss or trouble in continuing in
or in entering the employment of plaintiff, by reason of plaintiff
not recognizing the union, or because plaintiff runs a nonunion
mine, (2) interfering or attempting to interfere with plaintiff's
employees for the purpose of unionizing the mine without
plaintiff's consent, and in aid of such purpose knowingly and
willfully bringing about the breaking by plaintiff's employees of
contracts of service known at the time to exist with plaintiff's
present and future employees, (3) knowingly and willfully enticing
plaintiff's employees, present or future, to leave plaintiff's
service on the ground that plaintiff does not recognize the United
Mine Workers of America or runs a nonunion mine,
Page 245 U. S. 262
etc., (4) interfering or attempting to interfere with
plaintiff's employees so as knowingly and willfully to bring about
the breaking by plaintiff's employees, present and future, of their
contracts of service, known to the defendants to exist, and
especially from knowingly and willfully enticing such employees,
present or future, to leave plaintiff's service without plaintiff's
consent, (5) trespassing on or entering upon the grounds and
premises of plaintiff or its mine for the purpose of interfering
therewith or hindering or obstructing its business, or with the
purpose of compelling or inducing, by threats, intimidation,
violent or abusive language, or persuasion, any of plaintiff's
employees to refuse or fail to perform their duties as such, and
(6) compelling or inducing or attempting to compel or induce, by
threats, intimidation, or abusive or violent language, any of
plaintiff's employees to leave its service or fail or refuse to
perform their duties as such employees, or compelling or attempting
to compel by like means any person desiring to seek employment in
plaintiff's mine and works from so accepting employment therein,
the decree is fully supported by the proofs. But it goes further,
and awards an injunction against picketing and against acts of
physical violence, and we find no evidence that either of these
forms of interference was threatened. The decree should be modified
by eliminating picketing and physical violence from the sweep of
the injunction, but without prejudice to plaintiff's right to
obtain an injunction hereafter against these forms of interference
if proof shall be produced, either in proceedings supplemental to
this action or in an independent action, that such an injunction is
needed.
The decree of the circuit court of appeals is reversed, and
the decree of the district court is modified as above stated, and
as so modified it is affirmed, and the cause is remanded to the
district court for further proceedings in conformity with this
opinion.
Page 245 U. S. 263
* Mr. Pickett was superintendent of the Hitchman and Glendale
mines, and it was with him that the miners made their agreements to
refrain from membership in the union; Daugherty and Jarrett were
miners at the Hitchman, and had been, respectively, president and
financial secretary of the local union at the time of the 1906
strike, when the local deserted the U.M.W.A.
MR. JUSTICE BRANDEIS, dissenting.
This suit was begun October 24, 1907. The Hitchman Coal &
Coke Company, plaintiff below, is the owner of a coal mine in West
Virginia. John Mitchell and nine others, defendants below, were
then the chief executive officers of the United Mine Workers of
America and of its district and subdistrict organizations having
"jurisdiction" over the territory in which plaintiff's mine is
situated, and were sued both individually and as such officers. The
mine had been "unionized" about three years prior to April 16,
1906, and until about that date was operated as a "union" mine,
under a collective agreement with a local union of the United Mine
Workers of America. Then a strike was declared by the union, and a
short shut-down followed. While the strike so declared was still in
force, as the bill alleges, the company reopened the mine as a
closed nonunion mine. Thereafter, persons applying for work were
required as a condition of obtaining employment to agree that they
would not, while in the service of the company, be a member of the
union, and if they joined the union, would withdraw from the
company's employ. [
Footnote
1]
Page 245 U. S. 264
Alleging that efforts were being made illegally to unionize its
mine "without its consent," the company brought in the United
States Circuit (now District) Court for the Northern District of
West Virginia this suit to enjoin such efforts. District Judge
Dayton granted a restraining order upon the filing of the bill. An
order was entered May 26, 1908, continuing it as a temporary
injunction. A motion to modify the same was denied September 21,
1909, 172 F. 963. An appeal from this order was dismissed by the
circuit court of appeals, March 11, 1910. 176 F. 549. The case was
then heard on the merits; defendants having denied in their answer
all the charges of unlawful conduct set forth in the bill, and on
January 18, 1913, a decree was entered for a perpetual injunction
substantially in the form of the restraining order. 202 F. 512.
This decree was reversed by the circuit court of appeals on June 1,
1914. 214 F. 685, but a stay was granted pending an application to
this Court for a writ of certiorari. The company appealed to this
Court and also applied for a writ of certiorari. The appeal was
dismissed, as the jurisdiction of
Page 245 U. S. 265
the circuit (district) court was rested wholly upon diversity of
citizenship, plaintiff being a corporation organized under the laws
of West Virginia and all the defendants citizens and residents of
other states. 241 U.S. 644. A writ of certiorari was granted,
however, March 13, 1916. The case was argued at that term and a
reargument was ordered.
The district court held that the United Mine Workers of America,
with its subordinate branches, constitutes an unlawful organization
-- illegal both under the law of West Virginia and under the
Federal Anti-Trust Act; that its long continued effort to unionize
the mines of West Virginia had not been
"in the interest either of the betterment of mine labor in the
state or of upholding that free commerce in coal between the states
guaranteed by federal law, but to restrain and even destroy it"
for the benefit of rival operators and producers in Ohio,
Western Pennsylvania, Indiana, and Illinois, competitive fields in
which the mines had been unionized, and that, "in pursuit of its
unlawful purposes," the union
"have sought and still seek to compel the plaintiff . . . to
submit to contractual relations with it as an organization relating
to the employment of labor and production contrary to the will and
wish of the company; that its officers in pursuance of such
unlawful effort to monopolize labor and restrain trade, and with
knowledge of the express contracts existing existing between the
plaintiff and its employees have unlawfully sought to cause the
breach of the said contracts on the part of its said
employees."
The decree, besides the usual injunction against threat,
intimidation, force, or violence, and against inducing breaches of
employees' contracts or trespassing upon plaintiff's property,
enjoined defendants (and others hereinafter described), among other
things, from:
1. "Representing ["for the purpose of unionizing plaintiff's
mine without plaintiff's consent"] . . . to
Page 245 U. S. 266
any of plaintiff's employees or to any person who might become
an employee of plaintiff, that such person . . . is likely to
suffer some loss or trouble in continuing in or in entering the
employment of plaintiff, . . . representing . . . to such employee
. . . that such loss or trouble . . . may come by reason of
plaintiff not recognizing the United Mine Workers of America, or
because plaintiff runs a nonunion mine."
2. " . . . Knowingly and willfully enticing ["for the purpose of
unionizing plaintiff's mine, without plaintiff's consent"]
plaintiff's employees present or future . . . to leave plaintiff's
service, giving or assigning . . . as a reason . . . for leaving of
plaintiff's service, that plaintiff does not recognize the United
Mine Workers of America, or that plaintiff runs a nonunion
mine."
3. " . . . Knowingly and willfully enticing plaintiff's
employees, present or future . . . to leave plaintiff's service
without plaintiff's consent, against plaintiff's will and to
plaintiff's injury."
4. " . . . Establishing a picket . . . for the purpose of
inducing . . . by . . . persuasion . . . any person . . . coming to
plaintiff's mine to accept employment . . . to refuse . . . to
accept service with plaintiff."
5. " . . . Interfering in any manner whatsoever, either by . . .
persuasion or entreaty with any person in the employ of plaintiff
who has contracted with and is in the actual service of plaintiff
to . . . induce him to quit the service of plaintiff . . . or
assisting or abetting in any manner" his doing so.
Three of the defendants -- Mitchell, Wilson and Hughes -- were
never served with process and did not enter any appearance except
to object to the jurisdiction of the court over them. Of the
remaining seven, all but two had, prior to the entry of the final
decree, ceased to hold
Page 245 U. S. 267
any office either in the United Mine Workers of America or in
any of the district or subdistrict organizations. Nevertheless, the
decree directed that the injunction issue against each of the ten
original defendants, "individually," and also in their official
capacities against their successors in office (who were named in
the decree) although these had not been served with process or been
named in the bill; the court declaring such persons to be
"before the court by representation through service having been
made upon their said predecessors in office, sued as such officers
and as members of the United Mine Workers of America."
The decree extended the injunction, among others, also to
"all persons now members of said United Mine Workers of America,
and all persons who though not now members do become members of
said United Mine Workers of America."
The circuit court of appeals, reversing the decree of the
district court, held that the United Mine Workers of America was
not an unlawful organization under the laws of West Virginia, that
its validity under the federal Anti-Trust Act could not be
considered in this proceeding; that, so long as defendants
"refrained from resorting to unlawful measures to effectuate" their
purpose, "they could not be said to be engaged in a conspiracy to
unionize plaintiff's mine;" that "the evidence failed to show that
any unlawful methods were resorted to by these defendants in this
instance," and specifically that there was nothing in the
individual contracts which barred defendants from inducing the
employees to join the union. With these conclusions I agree
substantially.
First: The alleged illegality of the United Mine Workers of
America under the law of West Virginia.
The United Mine Workers of America does not appear to differ
essentially in character and purpose from other international
unions which, like it, are affiliated with the American Federation
of Labor. Its membership is said
Page 245 U. S. 268
to be larger than that of any other, and it may be more
powerful. But the common law does not limit the size of unions or
the degree to which individual workmen may by union increase their
bargaining power. As stated in
Gompers v. Buck Stove &
Range Co., 221 U. S. 418,
221 U. S.
439:
"The law therefore recognizes the right of workingmen to unite
and to invite others to join their ranks, thereby making available
the strength, influence, and power that come from such
association."
We do not find either in the decisions or the statutes of West
Virginia anything inconsistent with the law as declared by this
Court. The union is not an unlawful organization, and is not, in
itself, an unlawful conspiracy. We have no occasion to consider the
legality of the specific provisions contained in its constitution
or bylaws.
Second: The alleged illegality of the United Mine Workers of
America under the federal Anti-Trust Act.
The district judge undertook to pass upon the legality of the
United Mine Workers of America under the federal Anti-Trust Act,
but the question was not in issue in the case. It had not been
raised in the bill or by answer. Evidence bearing upon the issue
was properly objected to by defendants and should have been
excluded.
Third: The alleged conspiracy against the West Virginia
Mines.
It was doubtless the desire of the United Mine Workers to
unionize every mine on the American continent, and especially those
in West Virginia which compete directly with the mines of Western
Pennsylvania, Ohio, Indiana, and other states already unionized.
That desire and the purpose to effect it were not unlawful. They
were part of a reasonable effort to improve the condition of
workingmen engaged in the industry by strengthening their
bargaining power through unions, and extending the field of union
power. No conspiracy to shut down or otherwise injure West Virginia
was proved, nor was there
Page 245 U. S. 269
any averment in the bill of such conspiracy, or any issue
otherwise raised by the pleadings which justified the consideration
of that question by the district court. [
Footnote 2]
Fourth: "Unionizing plaintiff's mine without plaintiff's
consent."
The fundamental prohibition of the injunction is against acts
done "for the purpose of unionizing plaintiff's mine without
plaintiff's consent." Unionizing a shop does not mean inducing the
employees to become members of the union. [
Footnote 3] It means inducing the employer
Page 245 U. S. 270
to enter into a collective agreement with the union governing
the relations of the employer to the employees. Unionizing implies,
therefore, at least
formal consent of the employer. Both
plaintiff and defendants insisted upon exercising the right to
secure contracts for a closed shop. The plaintiff sought to secure
the
closed non-union shop through individual agreements
with employees. The defendants sought to secure the
closed
union shop through a collective agreement with the union.
Since collective bargaining is legal, the fact that the
workingmen's agreement is made not by individuals directly with the
employer, but by the employees with the union and by it, on their
behalf, with the employer is of no significance in this connection.
The end being
lawful, defendant's efforts to unionize the
mine can be illegal only if the methods or means pursued were
unlawful, unless indeed there is some special significance in the
expression "unionizing without plaintiff's consent."
It is urged that a union agreement curtails the liberty of the
operator. Every agreement curtails the liberty of those who enter
into it. The test of legality is not whether an agreement curtails
liberty, but whether the parties have agreed upon something which
the law prohibits or declares otherwise to be inconsistent with the
public welfare. The operator by the union agreement
Page 245 U. S. 271
binds himself (1) to employ only members of the union, (2) to
negotiate with union officers instead of with employees
individually the scale of wages and the hours of work, (3) to treat
with the duly constituted representatives of the union to settle
disputes concerning the discharge of men and other controversies
arising out of the employment. These are the chief features of a
"unionizing" by which the employer's liberty is curtailed. Each of
them is legal. To obtain any of them or all of them, men may
lawfully strive and even strike. And, if the union may legally
strike to obtain each of the things for which the agreement
provides; why may it not strike or use equivalent economic pressure
to secure an agreement to provide them?
It is also urged that defendants are seeking to "coerce"
plaintiff to "unionize" its mine. But coercion, in a legal sense,
is not exerted when a union merely endeavors to induce employees to
join a union with the intention thereafter to order a strike unless
the employer consents to unionize his shop. Such pressure is not
coercion in a legal sense. The employer is free either to accept
the agreement or the disadvantage. Indeed, the plaintiff's whole
case is rested upon agreements secured under similar pressure of
economic necessity or disadvantage. If it is coercion to threaten
to strike unless plaintiff consents to a closed union shop, it is
coercion also to threaten not to give one employment unless the
applicant will consent to a closed nonunion shop. The employer may
sign the union agreement for fear that
labor may not be
otherwise obtainable; the workman may sign the individual agreement
for fear that
employment may not be otherwise obtainable.
But such fear does not imply coercion in a legal sense.
In other words an employer, in order to effectuate the closing
of his shop to
union labor, may exact an agreement to that
effect from his employees. The agreement
Page 245 U. S. 272
itself being a lawful one, the employer may withhold from the
men an economic need employment -- until they assent to make it.
Likewise an agreement closing a shop to
non-union labor
being lawful, the union may withhold from an employer an economic
need -- labor -- until he assents to make it. In a legal sense, an
agreement entered into under such circumstances is voluntarily
entered into, and, as the agreement is, in itself, legal, no reason
appears why the general rule that a legal end may be pursued by
legal means should not be applied. Or, putting it in other words,
there is nothing in the character of the agreement which should
make unlawful means used to attain it, which in other connections
are recognized as
lawful.
Fifth: There was no attempt to induce employees to violate
their contracts.
The contract created an employment at will, and the employee was
free to leave at any time. The contract did not bind the employee
not to join the union, and he was free to join it at any
time. The contract merely bound him to withdraw from plaintiff's
employ if he joined the union. There is evidence of an attempt to
induce plaintiff's employees to
agree to join the union,
but none whatever of any attempt to induce them to violate their
contract. Until an employee actually joined the union, he was not,
under the contract, called upon to leave plaintiff's employ. There
consequently would be no breach of contract until the employee both
joined the union
and failed to withdraw from plaintiff's
employ. There was no evidence that any employee was persuaded to do
that, or that such a course was contemplated. What perhaps was
intended was to secure agreements or assurances from individual
employees that they would join the union when a large number of
them should have consented to do so, with the purpose, when such
time arrived, to have them join the union
Page 245 U. S. 273
together and strike -- unless plaintiff consented to unionize
the mine. Such a course would have been clearly permissible under
the contract.
Sixth: merely persuading employees to leave plaintiff's
employ or others not to enter it, was not unlawful.
To induce third persons to leave an employment is actionable if
done maliciously and without justifiable cause although such
persons are free to leave at their own will.
Truax v.
Raich, 239 U. S. 33,
239 U. S. 38;
Thacker Coal Co. v. Burke, 59 W.Va. 253. It is equally
actionable so to induce others not to enter the service. The
individual contracts of plaintiff with its employees added nothing
to its right in this connection, since the employment was
terminable at will.
As persuasion, considered merely as a means, is clearly legal,
defendants were within their rights if, and only if, their
interference with the relation of plaintiff to its employees was
for justifiable cause. The purpose of interfering was confessedly
in order to strengthen the union, in the belief that thereby the
condition of workmen engaged in mining would be improved; the
bargaining power of the individual workingman was to be
strengthened by collective bargaining, and collective bargaining
was to be insured by obtaining the union agreement. It should not
at this day be doubted that to induce workingmen to leave or not to
enter an employment in order to advance such a purpose is
justifiable when the workmen are not bound by contract to remain in
such employment.
Seventh: There was no "threat, violence or
intimidation."
The decree enjoined "threats, violence or intimidation." Such
action would, of course, be unlawful though employed in a
justifiable cause. But there is no evidence that any of the
defendants have resorted to such means. The propaganda among
plaintiff's employees was conducted almost entirely by one man, the
defendant Hughes, a District No. 6 organizer. His actions were
orderly and
Page 245 U. S. 274
peaceable, consisting of informal talks with the men, and a few
quietly conducted public meetings [
Footnote 4] in which he argued the benefits of
organization and pointed out to the men that, although the company
was when paying them according to the union scale, there would be
nothing to prevent a later reduction of wages unless the men
united. He also urged upon the men that, if they lost their present
jobs, membership in the union was requisite to obtaining employment
in the union mines of the neighboring states. But there is no
suggestion that he exceeded the moderate bounds of peaceful
persuasion, and indeed, if plaintiff's witnesses are to be
believed, men with whom Hughes had talked, his argument made no
impression on them, and they expressed to him their satisfaction
with existing conditions at the mine.
When this suit was filed, no right of the plaintiff had been
infringed, and there was no reasonable ground to believe that any
of its rights would be interfered with; and, in my opinion, the
circuit court of appeals properly reversed the decree of the
district court, and directed that the bill be dismissed.
MR. JUSTICE HOLMES and MR. JUSTICE CLARKE concur in this
dissent.
[
Footnote 1]
About two months after the restraining order was issued in this
case, the plaintiff company began the practice of requiring
applicants for work to sign employment cards in the following
terms:
"I am employed by and work for the Hitchman Coal & Coke
Company with the express understanding that I am not a member of
the United Mine Workers of America, and will not become so while an
employee of the Hitchman Coal & Coke Company; that the Hitchman
Coal & Coke Company is run nonunion, and agrees with me that it
will run nonunion while I am in its employ. If at any time I am
employed by the Hitchman Coal & Coke Company I want to become
connected with the United Mine Workers of America or any affiliated
organization, I agree to withdraw from the employment of said
company, and agree that, while I am in the employ of that company,
I will not make any efforts amongst its employs to bring about the
unionizing of that mine against the company's wish. I have either
read the above or heard the same read."
Prior to that time, the agreement rested in oral understanding
merely, and is sufficiently indicated in the following excerpts
from the testimony of the mine superintendent as to what he told
the men applying for employment:
"I also told them that any man who wanted to become a member of
the United Mine Workers -- that that was his business -- but he
could not be a member of the United Mine Workers and be affiliated
with the United Mine Workers and be under the employ of the
Hitchman Coal & Coke Company, or be under the jurisdiction of
the United Mine Workers; that the mine was run nonunion so far as
the United Mine Workers of America were concerned."
"Q. You mean you made every man understand that, while he worked
for the Hitchman Company, he must keep out of the union?"
"A. Yes, sir; or at least they said they understood it."
[
Footnote 2]
This alleged conspiracy not being in issue, the district court
improperly allowed the introduction, and considered, a mass of
documents referring to various mine workers' conventions, and joint
conventions of miners and operators held years previous to the
filing of the bill. Judge Dayton laid great stress on reported
declarations of the delegates to these conventions, although the
declarations of alleged coconspirators were obviously inadmissible,
there being no foundation for the conspiracy charge.
[
Footnote 3]
A witness for the defendants testified as follows:
"There is a difference between unionizing a mine and unionizing
the employees in a mine; unionizing the employees is having the men
join the organization; unionizing a mine is creating joint
relations between the employers and employees; a mine cannot be
unionized unless the employer enters into contractual relations
with the union; it is not the policy or purpose of the United Mine
Workers as an organization to coerce a man into doing a thing
against his will; this distinction between unionizing a mine and
unionizing the employees of a mine has existed since the
organization came about, and this method of unionizing a mine
existed in 1906 and 1907."
A witness for the plaintiff testified that
"the term 'union,' when applied to mining, means the United Mine
Workers, and a union mine is a mine that is under their
jurisdiction and so recognized. . . ."
The contrary is "nonunion or open shop." And further:
"The men might be unionized at a mine and the mine owners not
recognize the union. That would in effect be an open shop. When I
said 'unionize the employees,' I meant practically all of the
employees; but a union mine, as I understand it, is one wherein the
closed shop is practically enforced."
In such case, the witness explained, the operator would be
practically in contract relation with the organization.
It was also testified:
"The difference between organizing the men at the mine and
organizing the mine is that, when the miners are organized, the
work of organizing the mine is only just started. They next proceed
to meet with the operator who owns the mine, or operates it, for
the purpose of making contracts or agreements. Under the
constitution and methods of the United Mine Workers, a mine cannot
be organized without the consent of the owner, and it is not the
object or purpose of the United Mine Workers to do so, and never
has been; it has never been attempted, as far as witness knows.
After a mine has been organized, the agreement between the employer
and the organization is paramount. The constitution of the
organization has nothing to do with the workings afterwards; that
agreement does not take away from the operator the control of his
men."
[
Footnote 4]
Following is a notice of one of Hughes' meetings which was torn
from a telegraph pole in the street by the plaintiff's mine
superintendent:
"Notice to the miners of the Hitchman mine. There will be a mass
meeting Friday evening at 6.30 p.m. at Nick Heil's Base Ball
Grounds, for the purpose of discussing the principals of
organization. President Wm. Green will be present. All miners are
cordially invited to attend."