Loewe v. Lawlor

Loewe v. Lawlor was the first major application of the anti-trust laws to a labor union.

The end of the nineteenth century and the beginning of the twentieth century was a time of great transition in the United States. Huge corporations, known as trusts, had formed, often creating monopolies that controlled the prices of key products. At the same time, working people had begun to form unions, organizations that enabled them to demand better wages and working conditions from their employers.

In 1890, concerned about the growing power of the trusts, Congress passed the Sherman Anti-Trust Act. This act held, in part:

1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction therefore, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a misdemeanor, and on conviction therefore, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court . . .

3. Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefore in any circuit court of the United States . . . and shall recover three fold the damages by him sustained, and the costs of suit, including a reasonable attorney's fee.

The Congress that passed the Sherman Anti-Trust Act clearly intended it to combat the "restraint of trade" practiced by the big corporations that fixed prices, controlled distribution, and often drove smaller companies out of business. But on 3 February 1908, the Supreme Court made history by applying the antitrust law to the United Hatters of North America Union.