The Associated Press

National Labor Relations Board - Board Decisions

May 21, 1936

1 N.L.R.B. 788 (N.L.R.B. 1936)

In the Matter of THE AssocIATED PREss and AMERICAN NEWSPAPER
GUILD
Case No. C-84.-Decided May 01, 1396
News Collecting and Distributing Agency-Interference , Restraint or Coer-
ction: engendering fear of loss of employment for union membership and activ-
ity ; expressed opposition to labor organization ; denial of right of employees
to be represented by non-employees ; questioning employees regarding union
affiliation-Dtscrimination: transfer; discharge-Reinstatement Ordered-Back
Pay: awarded.
Mr. David A. Moscovitz for the Board.
Davis, Polk, Wardwell, Gardiner & Reed, of New York City, for
respondent. Mr. William C. Cannon and Mr. Harry W. Bissell, of
counsel.
Greenbaum,, Wolff ct Ernst, of New York City, for the Union.
Mr. Morris L. Ernst and Mr. Callman Gottesman, of counsel.
Mr. Louis L. Jaffe, of counsel to the Board.
DECISION
STATEMENT OF CASE
On November 7, 1935, Jonathan Eddy, Executive Secretary of the
National Executive Board of the American Newspaper Guild, here-
inafter referred to as the Guild, filed with the Regional Director
for the Second Region a charge that The Associated Press; New
York, New York, had engaged in and was engaging in unfair labor
practices contrary to the National Labor Relations Act, approved
July 5, 1935, hereinafter referred to as the Act. On December 4,
1935, the Board issued a complaint against The Associated Press,
hereinafter referred to as respondent. The complaint was signed
by the Regional Director for the Second Region, and alleged that
respondent had committed unfair labor practices affecting commerce,
within the meaning of Section 8, subdivisions (1) and (3), and
Section 2, subdivisions (6) and (7), of the Act.
In respect to the unfair labor practices, the complaint alleged in
substance that respondent, by its officers and agents, terminated the
employment of Morris Watson, an employee in its New York City
office, for the reason that he joined and assisted the Guild, a labor
organization, and, in particular, The Associated Press unit of the
788
DECISIONS AND ORDERS 789
Guild, hereinafter referred to as the Guild unit, said acts being
contrary to Section 8, subdivisions (1) and (3) of the Act.
The complaint and accompanying notice of hearing were served
on the parties in accordance with Article `T of National Labor Rela-
tions Board Rules and Regulations-Series 1. On December 16, 1935,
the' Board ordered that the hearing in this matter be held in con-
junction with a hearing on a question concerning the representation
of the editorial employees of respondent in its New York City office,
now known as Case No. R-26. The hearing was postponed from
time to time,]. until on April 2, 1936, the Regional Director issued a
notice setting the hearing for April 7, 1936 which notice was duly
served on the parties. Hearings were held in New York, N. Y., on
April 7 and 8, 1936, before a Trial Examiner, Dean Charles E. Clark,
of the Yale Law School, designated by order of the Board.
Respondent filed an answer to the complaint, admitting that it had
terminated the employment of Morris Watson, but denying that the
discharge was based on the fact that he had joined and assisted the
Guild. At the hearing counsel for respondent appeared specially and
moved that the complaint be dismissed on the groundsthat the Act
"attempts to regulate matters not within the powers conferred upon
Congress by the Constitution of the United States and is in violation
of the Tenth Amendment thereto;" that it is in violation of the First
Amendment thereto in that, as attempted here to be applied, it
abridges the freedom of the press, and is in violation also of the
Fifth Amendment thereto. The Trial Examiner overruled the mo-
tion in so far as it rested on points "unconnected with interstate
commerce". After a showing as to the nature of the activity of
respondent, he overruled the motion on all grounds. The ruling is
hereby affirmed. Full opportunity to be heard, to examine and cross-,
examine witnesses, and to introduce evidence bearing on the issues
was afforded to all parties.
On April 23, 1936, the Trial Examiner filed an intermediate report
finding that respondent had violated the Act in the respect and the
manner alleged in the complaint. He recommended that Morris Wat-
son be reinstated to his former position and be made whole for any
loss of pay suffered by reason of his discharge after deducting any
amounts earned elsewhere.2 A copy of the intermediate report was
duly served, and respondent was given ten days to comply or file ob-
1 The postponements were the result of a bill in equity brought by The Associated Press
in the United States District Court for the Southern District of New York to enjoin
the hearing . The bill was dismissed on April 4, 1936, upon the motion of the Regional
Director and Regional Attorney, defendants in the case.
z The Trial Examiner recommended also that respondent cease and desist from refusing
to bargain collectively with its editorial employees through the Guild. Since the com-
plaint did not charge respondent with failure to bargain collectively , we shall make no
order with respect thereto.
790 NATIONAL LABOR RELATIONS BOARD
jections. Respondent has neither complied with nor filed objections
to the intermediate report.
The Board is in accord with the findings made and conclusions
reached by the Trial Examiner in the intermediate report. In,the
decision already issued in the representation case-No. R-26-many
of the findings and conclusions of the Trial Examiner were incor-
porated. These findings, in so far as appropriate, are also embodied
below with the addition of such other of the Trial Examiner's findings
and our own as are necessary and appropriate.
Upon the evidence adduced at the hearing and from the entire
record before it, including the pleadings filed, the transcript of hear-
ing, the exhibits introduced, and the intermediate report, the Board
makes the following :
FINDINGS OF FACT
1. THE ASSOCIATED PRESS
Respondent was organized in 1900 as a membership corporation of
the State of New York, being a non-profit association of certain per-
sons who, owning or representing certain newspapers , operated for
profit, united in a mutual and cooperative association for the collec-
tion and interchange of information and intelligence for publication
in the newspapers owned or represented by them. It has at present
about 1350 members . Of the 2000 daily newspapers in the United
States, approximately 1200 are members of respondent ; included
among them are newspapers in every State . Respondent has mem-
bers also in Alaska, Argentina , Bolivia, China , Colombia, Costa Rica,
Cuba, Dominican Republic , Dutch West Indies, Ecuador, Guatemala,
Hawaii, Mexico, Panama, Paraguay , Peru, Philippines , Puerto Rico,
Spain, Uruguay , and Venezuela . Each member is entitled to at least
a minimum news service, and each member supplies to respondent
local news gathered by him.
Each member of respondent has one vote. However, bonds may be
issued up to the aggregate sum of $500,000 , carrying a vote for each
$25 but not to exceed $1,000 of registered bonds whereon interest is
waived; on December 31 , 1935, such bonds in the sum of $235 ,525 were
outstanding , which, being substantially held by the larger news-
papers, carried increased voting power to such newspapers to the
extent indicated.
The balance sheet of respondent for the year 1935 showed assets of
$2,697 ,128.80 and income of $9 ,404,213.41 , an excess of $141 ,959.55 over
its expenses of $9,262 ,253.86. The income , outside of interest amount
ing to $63,374 .04, consisted exclusively of assessments levied upon its
members according to a formula of assessment which, while adjusted
to the type and amount of service received, is based fundamentally
DECISIONS AND ORDERS 791
upon the plan of distributing the cost of operation among its mem-
bers in proportion to the population of the community served by each
of them.
Advertised statements by respondent contain assertions that "it is
the greatest clearing house for news in the world", and that "the reve-
nues reach an annual aggregate of nearly $10,000,000, while the num-
ber of words daily received and transmitted at each of the more
important offices is over 200,000, or the equivalent of 125 columns of
the average newspaper." These statements were not controverted at
the hearing, and the extensive operations of respondent in all parts of
the world were amply demonstrated by all the evidence. It appears
to be substantially larger than the other competing press agencies in
the United States. These others are organized as commercial
corporations.
Respondent has in excess of 1,700 employees and an annual pay
roll in excess of $3,000,000.
The principal office of respondent is in New York City. It has
its own representatives in important capitals and cities in the United
States and in other parts of the world. It has an affiliate, The
Associated Press of Great Britain, of which there is a branch office
in Paris, whose function it is to obtain news pictures of news events
abroad to be supplied to respondent. It also has an affiliate located
in Berlin. It has reciprocal arrangements with important news
agencies in foreign countries for the interchange of news : with
Reuter, the Canadian Press-modeled after respondent-Domei-
Tsuchin-Sha, a Japanese news bureau.
Respondent has established division points throughout the United
States, each of which is responsible for the collection of news from
its territories and for its distribution. These divisions are the East-
ern, with headquarters in New York City; the Southern, Atlanta,
Georgia; the Central, Chicago, Illinois; the Western, San Francisco,
California; and the Southwestern, Kansas City, Missouri. Each
division has regional offices and member newspapers reporting to it.
In addition, respondent has a special bureau at Washington, D. C.,
and a Foreign Service, operating from its New York City office witli
offices, staffs, and correspondents in Africa, Asia, Europe, and Cen-
tral and South America. The control of news is extremely decen-
tralized or "broken-down." Each collecting agent-regional office,
member newspaper, division point-determines the value to other
regions, divisions, etc. of each item of news collected by or coming
to it and sends it along to other points or distributes it throughout
the territory of which it is the key point according to its judgment
of its interest for those points. Consequently the individual editorial
employee no matter where he may be situated has a measure of
responsibility for the effective functioning of the entire system.
97571-36--vol i- 51
792 NATIONAL LABOR RELATIONS BOARD
The usual method of communication is by "leased wires" (or
special service by contract with the Western Union Telegraph Com-
pany, the American Telephone & Telegraph Company, and the
Pacific Telephone & Telegraph Company ) although all forms of
communication-telephone , messenger , wireless , mail-are employed.
From each division point there stretches out to the East, the West,
the North and South , trunk telegraph wires which are the principal
intake and feeding lines for the division and which provide inter-
divisional communication . Subsidiary regional circuits tie into the
primary circuits . As news is received at a division headquarters, it
is revised by editorial employees under the direction of supervising
editors and then transmitted throughout the division and to the head-
quarters of other divisions to the extent warranted by the news.
Each trunk line is controlled by a "filing editor " who must be aware
of the capacity of the line , i. e., the amount of news which he can
wire out during his shift-usually eight hours-and the amount of
news which his line will be expected to receive ; during his shift he
is responsible for sending out-"filing"-over his line a "balanced"
news report.
Respondent , through itself or its affiliates , also conducts extensive
operations in the collection of photographs of persons and events
which it transmits to and from Europe and among its members;
when the immediate news value of these photographs ' is gone, they
are sold to an agency for eventual use in magazines and other
publications.
H. OPERATION OF TI NEW YORK OFFICE ; THE EDITORIAL EMPLOYEES
The number of employees in the New York office of respondent,
exclusive of the general office executives , is more than 350, and its
annual pay roll in that office in excess of $800,000:
The editorial work in the New York City office of respondent is
divided into various departments to facilitate the speedy and efficient
operation of its business . An executive news editor, assisted by
supervising editors and editorial employees , has general charge of
the revision of the news as it is received from the filing editors in
immediate charge of the wires to and from various places ; and there
are other departments or desks covering Foreign, City, Sports,
Financial, News Photo, and Feature Service , as well as a morgue or
library for retaining items of potential future value.
The filing editors supervise the news as it goes out on trunk or
primary circuits and the secondary wires from New York City,
including the North wire to New York State and New England and
Boston, the South wire to Atlanta, there breaking into subdivided
regional extensions , the main West wire (with a parallel wire for
DECISIONS AND ORDERS 793
financial, commodity, and money market news) to Kansas City with
trunk wires there to the Pacific Coast and the Southwest, a "Metro"
wire for the newspapers of Greater New York City, and state wires
to New York and Pennsylvania. Such editors determine what
news, from the vast amount of copy delivered to them, is to be sent
on their respective wires; they supervise its rewriting, as they deter-
mine to be desirable for the uses of their respective circuits, and its
delivery to teletypewriter operators for transmission over such wires.
The operations described above are carried on in three daily shifts
of employees; the day shift from 8: 00 A. M. to 4: 00 P. M., the night
shift from 4: 00 P. M. until midnight, and the early shift from mid-
night until 8:00 A. M.
The operations of the editors and editorial employees require a
high degree of skill, for they must be able to determine the news
value of items; and to rewrite copy with speed and the utmost
accuracy, so that in the case of important news all the work on a
particular item may be completed within a few minutes. Thus a
story from abroad may be received, rewritten, and sent out over the
leased wires in from 12 to 20 minutes, and an unusually important
item, such as the death of the King of England, would be sent out
in half that time. Less important news is handled in a more leisurely
way, but all news is perishable and very quickly becomes valueless
for the purposes of respondent as soon as it becomes generally known
through competing press agencies or otherwise.
The Feature Service supplies to the member newspapers special
stories covering particular events, or recurring features, such as
articles on sports or scientific events or surveys of the news. These
are often sent out as the product of special staff employees, and pub-
lished over the "by line" or name of the writer; and such assign-
ments are naturally among those most desired and sought after by
the editorial employees.
The mechanical operations of the transmission of news are coni-
ducted by the Traffic Department, the employees of which perform
no editorial functions and who are not classed as editorial employees.
The actual sending of the news by wire is performed by the tele-
graph companies the use of whose facilities is purchased by the
respondent. At the time of the hearing, approximately 157 of the
employees in New York City were classified'as editorial employees,
including reporters and editors engaged in the preparation or revi-
sion of news for transmission and distribution in this country and
abroad.
The operations of the respondent and of its editorial employees
occur in the course and current of commerce among the several States
and with foreign countries; are an integral part of the operations
of the instrumentalities of such commerce; and constitute commerce
among the several States and with foreign countries.
794 NATIONAL LABOR RELATIONS BOARD
III. THE UNFAIR LABOR PRACTICES
The charge against respondent is that it discharged Morris Wat-
son because he "joined and assisted" the Guild and "engaged in con-
certed activities with other employees for the purpose of collective
bargaining and other mutual aid and protection."
In 1933 the unrest which had developed among editorial employees
and reporters of newspapers had become acute, due to lowering of
wages generally and the elimination of various newspapers, notably
"The New York World," the sale of which threw many such em-
ployees out of work. The remuneration paid such employees was
generally lower than that paid less highly skilled workers in the
mechanical departments of newspaper service who had been organ-
ized in unions, who had had service contracts, and who had suffered
less drastic wage cuts.
In view of these conditions the American Newspaper Guild was
organized to obtain the benefits of unionization for editorial em-
ployees and reporters of press associations and newspapers. It com-
prised a national organization, of which the New York Newspaper
Guild was a branch and of which local units were installed in indi-
vidual newspapers or press associations in about 70 cities. The
Guild is a labor organization.
Watson has been a newspaper man since 1923, serving, on various
newspapers before he went with respondent. He has been a police
reporter, general assignment reporter, motion picture critic, state
editor, and picture editor. In 1928 he joined respondent's organiza-
tion in Chicago. Charles E. Honce was central division news editor
in Chicago for respondent. Watson worked there and in Springfield,
Illinois, as a reporter and rewrite man. He covered important
assignments : the senatorial campaign of J. Hamilton Lewis, the
endurance flight of the Hunter brothers, the National Air Show, the
court contest of the merger between the Bethlehem Steel Company
and the Youngstown Sheet & Tube Company. Charles Honce, who
had since been transferred to New York, praised Watson's work and
in 1930 secured his transfer to the New York office. There he was
given important reportorial assignments. His specialty seems to
have been the covering of court trials : the trial of Senator James A.
Davis on federal lottery charges, of William Graham and James C.
McKay on mail fraud charges. He covered the non-technical angles
of the Lenz-Culbertson bridge match. He interviewed important
personages : William Bullitt, Ramsay MacDonald, Maxim Litvinoff,
J. P. Morgan, he being the only reporter who succeeded at the time
in interviewing Mr. Morgan. As a reporter he scored a number of
"beats"-i. e. he got stories to the newspaper before anyone else. On
a number of these stories respondent received the compliments of
DECISIONS AND ORDERS 795
the newspaper world. For his excellent work in this connection,
Watson was given a raise in salary. Watson also did a great deal
of rewrite work in the office, the Lindbergh kidnapping being. among
the important stories on which he worked.
'Watson joined the Guild at its inception in November, 1933; he
was one of the organizers of The Associated Press Guild unit. He
became Chairman of the unit; then Treasurer of the New York
Guild, and at the same, time Vice President for Wiring Services of
the American Newspaper Guild, a position which he held at the time
of his discharge by respondent. In November, 1933, Watson was a
member of a committee which went to Washington to appear before
the National Recovery Administration (NRA) hearing on the pro-
posed newspaper code. He urged the administration to impose a
code upon the Press Associations as well as on the newspapers. In
December he was again in Washington, this time as a delegate to the
organizing convention of the Guild. In cooperation with the Com-
mercial Telegraphers Union of North America, he submitted to the
NRA a proposed code for the Press Associations. On his return to
New York, Elliott, Assistant General Manager of respondent in New
York, berated Watson for cooperating with the Telegraphers Union;
unionization was "very foolish," he said. Various executives objected
to an open letter he wrote on March 27, 1934, to General Johnson,
NRA Administrator, criticizing the failure to establish a press asso-
ciation code, which letter was published in the Magazine "Editor and
Publisher." Thereafter Elliott talked to him several times to the
effect that unionization was not for newspaper men because of the
special character of their work, stating on one occasion that he could
not understand why a man of Watson's abilities and talent would be
interested in a reporters' union,- and saying, "You are the best
reporter we have"; the General Manager of respondent, Kent Cooper,
in the summer of 1934 told Watson he could not give him a foreign
assignment so long as he was active in the Guild; in December, 1934,
on the occasion of another NRA hearing in Washington, D. C., re-
spondent's executives tried to prevent Watson's going, revoking for
a time the permission for leave which had been given and which was
ordinarily given under the circumstances, Watson having arranged
with his relief man to do his work.
In July, 1934, the Guild unit adopted a resolution sponsored by
Watson, addressed to the Guild, asking the Guild to undertake col-
lective bargaining on behalf of the unit. Among the points at issue
an important one was the securing of a five-day week for editorial
employees, instead of the six-day week then in force.
Thereafter the Guild sent to Frank B. Noyes and Kent Cooper,
respondent's president and general manager respectively, formal let-
796 NATIONAL LABOR RELATIONS BOARD
ters, signed by the executive secretary of the Guild and by Watson,
asking for an appointment for the purposes of collective bargaining.
Thereafter the executives of respondent interviewed the editorial
Employees individually in respect to their Guild connections, and
strongly objected to such connections, so that membership of the
unit fell off sharply and the collection of dues likewise declined sub-
stantially. As a result the unit held a meeting on August 17, 1934,
and suspended its request for collective bargaining pending the cre-
ation and report of a committee from the unit to discuss the matter
with Cooper.
On the following day the committee of the Guild unit met with
Cooper, who declined to bargain collectively, stating that he would
quit his job rather than bargain with "an outsider"-referring to the
Guild-and intimating that, if Guild activities were given up, the
five-day week would be granted. He also stated that he had received
many letters from respondent's members demanding the discharge of
Watson and that every time Watson's "by line" was used on a story
it brought protest from the members of The Associated Press because
of his Guild activities.
Thereafter, on August 21, 1934, the Guild unit voted to suspend
indefinitely its request for collective bargaining at a meeting which
was largely attended, because respondent's executives actively worked
to induce attendance and in some cases themselves relieved the em-
ployees of their duties to that end. The vote was taken against the
protest of Watson that the action was a weakening of the Guild, and
that the employees would hold the five-day week for only a little
while.
Thereupon respondent instituted the five-day week and continued
it in force until October 7, 1935.
Thereafter the executives, at staff meetings held for the different
shifts of employees, protested the action of the Guild unit in only
suspending the request for collective bargaining and not rescinding
it, asking the employees if they were not thereby "binding themselves
to outsiders and ceasing to be free agents," particularly unless they
obtained back their authorizations to bargain collectively, which were
held by Watson as an officer of the Guild unit and which he refused
to deliver up.
Immediately after these events Watson was transferred to serve as
filing editor of the South wire, a position for which he was not fitted
either by experience or by temperament, because it involved sitting
at a desk all day and did not employ his experience and skill as a
reporter and was one where complaints were usual and the people
served were difficult to please. The transfer was a punishment for
Watson's Guild activities and was so considered by him and by the
other employees.
DECISIONS AND ORDERS 797
Watson continued his. work on the South wire until about January
1. 1935, and performed it satisfactorily, receiving only one complaint :
respondent's Atlanta office objected to the prefix "Mrs." used in front
of the name of a prominent married Negro woman, stating that they
had repeatedly complained of calling a Negro "Mrs." or "Mr."
Watson continued his Guild activities after his transfer, being one
of a delegation to call upon President Roosevelt in November, 1934,
to request a code for press associations, and in December, 1934, rep-
resenting the Guild at a code hearing in Washington, D. C., against
the protests and objections of respondent, as referred to above.
In January, 1935, a special department or desk was set up in re-
spondent's New York office to handle the copy coming over five spe-
cial wires from the.Hauptmann murder trial in Flemington, New
Jersey, and Watson was assigned as head of the desk with one as-
sistant. During the period of about a month while the trial lasted,
he had full charge on the day shift of supervising the sending out
of news of that trial, which was the most important news event of
the period. Watson was asked to assume this important responsi-
bility because respondent at that time had no other available and
sufficiently experienced and capable man, and his service in that
capacity was much praised by member editors. At the conclusion of
the Hauptmann trial and as a result of the difficult and strenuous ac-
tivities connected therewith, following his harsh and unpleasant ex-
perience on the South wire, Watson had an illness in the nature of a
breakdown, causing him to take two weeks' leave in addition to his
regular vacation period.
Thereafter Watson continued his Guild activities and in the sum-
mer of 1935 was spokesman for the Newspaper Guild of New York
in attempting to negotiate with the "Brooklyn Eagle," a member
newspaper of The Associated Press.
Immediately thereafter Watson was transferred to the early shift,
front 12: 00 midnight to 8: 00 A. M., in spite of the fact that the
clay city news editor had requested his services for that staff and that
by long tradition in respondent's office the day city editor had al-
ways his pick of men, since it was the most desired of the positions
open to editorial employees. Work on the early shift is not desired,
since it is routine activity, without outside assignments of special re-
porting, along the lines for which Watson had shown himself pe-
culiarly fitted, and particularly unpleasant in the matter of hours
for a man who, like Watson, lived with his family. It was custom-
ary for respondent to put its less experienced men on the early
shift, and the assignment of Watson to it was as punishment for his
Guild activities. Watson protested many times against this transfer
to his executive news editor, J. M. Kendrick, and asserted that it
was -punishment for his representation of the "Brooklyn Eagle" ;
798 NATIONAL LABOR RELATIONS BOARD
Kendrick denied that he knew of the affair of the "Brooklyn Eagle,"
but did say that Watson's activities with the Guild had lessened his
value to respondent and that, if he had said the things about re-
spondent which Watson had, then he would quit it.
Thereafter Watson served on the early shift until his discharge.
Even here he was called upon to handle certain important news
items , one being the events wherein the steamer "Dixie" struck a
reef and at the same time a hurricane struck Florida, and the other
being the death of Senator Huey Long of Louisiana. On both of
these the headlines sent in from the local representatives of respond-
ent at the scenes of the news were held unsatisfactory by the news
editor; they were rewritten under Watson's direction though cred-
ited to the local offices, and as a result the local offices were compli-
mented by respondent's general manager and members upon their
handling of the news.
While the story of the "Dixie" was still being reported, Kendrick
wrote a note to the acting early editor on official white paper of the
kind used to make up personnel records of the employees, and not
upon the message paper ordinarily used for general directions to edi-
torial employees, which note stated : "Tell Watson to give it all he
has. His work the last two nights has not been up to snuff."
On October 7, 1935, the editorial employees were notified that the
five-day week was withdrawn and that a six-day week was effective
at once. On October 9, 1935, Watson introduced before the Guild
unit a resolution, asking the Guild to begin collective bargaining on
behalf of the unit. The resolution recited particularly the fact that
the respondent had rescheduled the six-day week without notice to
the workers and without affording opportunity for discussion or ad-
justment; it asserted that an agreement continuing the policy of the
five-day week was needed to safeguard the interests of employees
and was otherwise fair and equitable. It was resolved that the Guild
by its proper committee should act as the exclusive representative of
the unit for the purpose of collective bargaining in respect of con-
ditions of employment and particularly in respect of hours of em-
ployment. A referendum on the resolution was completed on Oc-
tober 11, 1935. Seventy-two voted on the referendum and the vote
was all but unanimous in favor of and adopting the resolution. At
the time, the Guild contained about 95 or 96 members.
On October 17, 1935, the Guild, by its National Executive Board
(that being the board or committee which, under the constitution
of the Guild, was authorized to conduct collective bargaining for
guild units), wrote to Kent Cooper, respondent's general manager,
referring to the resolution by the unit adopted on October 11, 1935,
and asking for an opportunity to "discuss with you the subject of
DECISIONS AND ORDERS 799
hours and conditions of employment, with the purpose in view of
negotiating a collective agreement."
This letter was received by respondent the next day, October 18,
1935. Thereupon Watson was discharged, with a month's pay in
advance, the executive news editor Kendrick stating to him as the
reason, "Because we are dissatisfied with your work, you are dis-
satisfied with us, and I am convinced that you will be happier else-
where." Kendrick on that day had recommended to Cooper, re-
spondent's general manager, that Watson be discharged for five
reasons, of which the second was, "He is an agitator and disturbs the
morale of the staff at a time when we need especially their loyalty
and best performance". Cooper had approved the recommendation
with the notation, "But solely on grounds of his work not being on
a basis for which he has shown capability," with the "But" heavily
written in pencil and the "solelyy" 'underlined.
Since October 18, 1935, Watson has not been employed by respond-
ent, and has been refused re-employment, although he has been ready,
able, and willing to work for respondent. Watson secured work from
the Federal Theatre Project of the Works Progress Administration
of the United States Government, and was employed by them from
November 21, 1935; to the time of the hearing as manager-producer
of "The Living Newspaper," at a salary of $200 a month; whereas
his salary paid by respondent prior to November 18, 1935, had been
at the rate of $295 a month.
On October 22, 1935, Cooper replied to the letter of the Guild of
October 17, 1935, and stated among other things, that he could not
without instructions from his board of directors "consider negotia-
tions with outsiders looking toward such an eventuality as you have
suggested." Thereafter further correspondence was had between the
attorneys for the Guild and respondent's executives, wherein the
former pressed for a hearing to discuss collective bargaining and the
latter referred the matter to the meeting of respondent's board of
directors to be held in January.
After the discharge of Watson membership in the Guild unit fell
off to about 85 and there was a falling off in the collection of dues;
at the time of the hearing the membership was increasing and the
collection of dues had improved. The reduction in Guild member-
ship was due directly to the opposition of respondent to the Guild
activities and the fear of the employees of reprisals for such activities.
We think that it is beyond dispute that Watson was discharged and
discriminated against in regard to hire and tenure of employment to
discourage membership in the Guild. Respondent did not choose by
evidence to rebut the clear implications of the Board's testimony, but
chose, rather, to rely on its point that the Board is without jurisdiction
800 NATIONAL LABOR RELATIONS BOARD
in the premises. We find further that by the discharge.of Morris
Watson respondent has interfered with, restrained and coerced its em-
ployees in the.exercise of the rights guaranteed in Section 7 of the
Act.
The aforesaid acts of respondent tend to lead to labor disputes bur-
dening and obstructing commerce and the free flow of commerce.
Watson and the other editorial employees of respondent at its New
York office in the activities hereinbefore described were directly
engaged in interstate and foreign commerce by facilitating and mak-
ing possible the flow of news from place to place throughout this
country and other countries; and any interference with or cessation
of such activities would hamper, impede, and interfere with such
commerce.
Any cessation of editorial activities at the New York office would
cause a break in the flow of foreign news and of some of the important
domestic news and, until such break could be repaired or in some
manner overcome, would seriously impede, if not prevent, the issuance
of newspapers in all parts of the country. Random daily tests of the
dependence of newspapers variously located on respondent's continued
service showed a paper in Dayton, Ohio, with nineteen stories and
one photograph on its front page credited to respondent; one in Port-
land, Maine, with eight such stories and one photograph; one in San
Francisco, California, with nine such stories; one in Phoenix, Arizona,
with eleven such stories; one in Memphis, Tennessee , "with twenty-
seven such stories; and with each of such papers carrying, in addition
to such stories appearing on its front page, many other such stories on
other pages.
The facts as to the wide extent and character of respondent' s busi-
ness were presented by the assistant general manager of respondent
(produced as a witness at the request of the Board), by documentary
evidence , by the allegations of the respondent in its answer and mo-
tions in this matter, and by its affidavit in the injunction suit brought
to restrain these proceedings. While respondent took no part in the
production of evidence referring to the discharge of Watson, never-
theless the documentary and other evidence respecting it was clear
and decisive. It is clear that respondent's challenge to these proceed-
ings is based not on any substantial dispute as to the facts, but upon
its claim that there are factors peculiar to its business , requiring
accuracy in news gathering and freedom of the press, which make the
Act inapplicable or invalid with respect to it. Yet the policy of the
Act seems clearly applicable to the situation here disclosed; and,
pursuant to its policy, accuracy or other requirements of this form of
employment would appear not to be hampered, but even promoted by
the presence of contented employees under labor relations determined
DECISIONS AND ORDERS o 801
by the Congress to be generally desirable , and freedom of the press
would be facilitated by a freedom of organization granted to its
highest skilled , equally with its other , employees.
CONCLUSIONS OF LAW
Upon the basis of the foregoing findings of fact and upon the
entire record in the proceeding the Board finds and concludes as a
matter of law :
1. The American Newspaper Guild is a labor organization, within
the meaning of Section 2, subdivision (5) of the Act.
2. Respondent, by discriminating in regard to the hire and tenure
of employment of Morris Watson, has engaged in and is engaging in
unfair labor practices, within the meaning of Section 8, subdivision
(3) of the Act.
3. Respondent, by interfering with, restraining and coercing its
employees in the exercise of the rights guaranteed in Section 7 of the
Act, has engaged in and is engaging in unfair labor practices, within
the meaning of Section 8, subdivision (1) of the Act.
4. Such unfair labor practices are unfair labor practices affecting
commerce, within the meaning of Section 2, subdivisions (6) and (7)
of the Act.
ORDER
On the basis of the findings of fact and conclusions of law and pur-
suant to Section 10, subdivision (c) of the Act, the Board hereby
orders that respondent, The Associated Press, and its officers and
agents shall :
1. Cease and desist :
(a) From discouraging membership in the American Newspaper
Guild or in any other labor organization of its employees, by dis-
charging, threatening to discharge, or refusing to reinstate any of
its employees for joining the Guild or any other labor organization
of its employees; and
(b) From in any other manner discriminating against any of its
employees in regard to hire or tenure of employment or any term
or condition of employment for joining the Guild or any other labor
organization of its employees; and
(c) From in any other manner interfering with, restraining, or
coercing its employees in the exercise of their rights to self-organiza-
tion, to form, join or assist labor organizations, to bargain collectively
through representatives of their own choosing, and to engage in con-
certed activities for the purpose of collective bargaining or other
mutual aid or protection, as guaranteed in Section`7 of the National
Labor Relations Act.
802 NATIONAL LABOR RELATIONS BOARD
2. Take the following affirmative action which the Board finds will
effectuate the policies of the Act :
(a) Offer to Morris Watson immediate and full reinstatement, to
his former position, without prejudice to any rights and privileges
previously enjoyed by him.
(b) Make whole said Morris Watson for any loss of pay he has
suffered by reason of his discharge, by payment to him of a sum of
money equal to that which he would normally have earned from the
date of his discharge to the date of offer of reinstatement, computed
at the rate of $295 per month, less the amount earned by him in that
period.
(c) Post immediately notices to its employees in its New York
office stating (1) that respondent will cease and desist in the manner
aforesaid, and (2) that such notices will remain posted for a period
of at least thirty (30) consecutive days from the date of posting.