Martel Mills Corp. v. National Labor Relations Bd., 4628.

• Citation: 114 F.2d 624
• Decision Date: 06 September 1940
• Docket Number: No. 4628.,4628.
• Parties: MARTEL MILLS CORPORATION v. NATIONAL LABOR RELATIONS BOARD.
• Court: U.S. Court of Appeals — Fourth Circuit

114 F.2d 624 (1940)

MARTEL MILLS CORPORATION v. NATIONAL LABOR RELATIONS BOARD.

No. 4628.

Circuit Court of Appeals, Fourth Circuit.

September 6, 1940.

COPYRIGHT MATERIAL OMITTED

George Bell Timmerman, of Lexington, S. C., and J. Vaughan Gary, of Richmond, Va. (Wm. M. Blackwell, of Richmond, Va., on the brief), for petitioner.

Ernest A. Gross, Atty., National Labor Relations Board, of Washington, D. C. (Charles Fahy, Gen. Counsel, Robert B. Watts, Associate Gen. Counsel, Laurence A. Knapp, Asst. Gen. Counsel, and Bertram Edises and Ernest Cook, Attys., National Labor Relations Board, all of Washington, D. C., on the brief), for respondent.

Before PARKER, DOBIE, and NORTHCOTT, Circuit Judges.

DOBIE, Circuit Judge.

The Martel Mills Corporation has petitioned this Court to review and set aside an order issued by the National Labor Relations Board against the petitioner pursuant to Section 10(c) of the National Labor Relations Act, 49 Stat. 449, 29 U.S. C.A. § 151 et seq. In its answer, the Board has requested that its order be enforced.

The Martel Mills Corporation (hereinafter called the Martel Mills) is a Delaware corporation having its principal office in New York City. It is engaged in the business of processing cotton in various mills in the states of North Carolina, South Carolina, and Georgia. The present proceedings are concerned only with the Lexington mill, located at Lexington, South Carolina, and the Red Bank mill, located at Red Bank, South Carolina. During 1938, the Martel Mills used at the Lexington mill about $145,000 worth of raw materials and supplies, more than 50 per cent of which was purchased outside of South Carolina and shipped to Lexington by rail and truck. The Lexington mill, employing about 250 persons, produced approximately $2,800,000 yards of cloth worth approximately $280,000. Over 75 per cent of this cloth was shipped to points outside South Carolina. The Red Bank mill is approximately the same size as the Lexington mill and is engaged in a similar type of operation.

The labor organization involved in these proceedings is the Textile Workers Organizing Committee (hereinafter called the T. W. O. C.), affiliated with the Congress of Industrial Organizations. During August and September of 1938 and January of 1939, it filed charges before the National Labor Relations Board (hereinafter called the Board), against the Martel Mills. On January 25, 1939, the Board issued its complaint alleging, in substance, that the Martel Mills had discharged and thereafter refused to reinstate George P. Schwartz, Buster W. Whittle, Mrs. Pinkie Whittle, and D. B. Waits because of their membership in the T. W. O. C. and because they had engaged in concerted activities with other employees in behalf of the T. W. O. C. for the purpose of collective bargaining and other mutual aid and protection; that the Martel Mills warned its employees not to join or assist the T. W. O. C. on the pain of discharge or other discrimination; that by these and other acts the Martel Mills had engaged in, and was engaging in, unfair labor practices affecting commerce within the meaning of Section 8(1) and (3) and Section 2(6) and (7) of the National Labor Relations Act, supra (hereinafter called the Act). In its answer, the Martel Mills denied the allegations of unfair labor practices and averred that it had laid off Schwartz, the Whittles and Waits, and had refused the Whittles re-employment for cause; that it had re-employed Waits; that it had offered re-employment to Schwartz who did not accept the offer.

On February 2nd and 3rd, 1939, a hearing was held at Columbia, South Carolina, before a Trial Examiner duly designated by the Board. He filed his Intermediate Report on March 13, 1939, in which he found that the respondent had engaged in, and was engaging in, the aforementioned unfair labor practices. He recommended that the respondent cease and desist from such practices and that it take certain affirmative action. The Martel Mills filed exceptions.

Thereafter, oral argument on the exceptions was had before the Board. On February 23, 1940, the Board rendered its decision affirming in substance the findings of the Trial Examiner. The Board concluded:

"2. By discriminating in regard to the hire and tenure of employment of George B. Schwartz, D. B. Waits, Buster W. Whittle, and Mrs. Pinkie Whittle, thereby discouraging membership in Textile Workers' Organizing Committee, the respondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8(3) of the Act.

"3. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the respondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8(1) of the Act.

"4. The aforesaid unfair labor practices are unfair labor practices affecting commerce, within the meaning of Section 2(6) and (7) of the Act."

Upon the basis of its findings of fact and conclusions of law, the Board ordered the Martel Mills to cease and desist from engaging in the unfair labor practices, to reinstate, with back pay, the persons found to have suffered discrimination, and to post appropriate notices.

In reviewing this order of the Board, we are not unmindful of the recent mandate of the Supreme Court in the case of National Labor Relations Board v. Waterman S. S. Corp., 309 U.S. 206, 60 S.Ct. 493, 495-496, 84 L.Ed. 704, wherein it was said: "In that Act, Congress provided, `The findings of the Board as to the facts, if supported by evidence, shall be conclusive.' 49 Stat. 449, Sec. 10(e), 29 U.S. C.A. § 160(e). It is of paramount importance that courts not encroach upon this exclusive power of the Board if effect is to be given the intention of Congress to apply an orderly, informed and specialized procedure to the complex, administrative problems arising in the solution of industrial disputes. As it did in setting up other administrative bodies, Congress has left questions of law which arise before the Board — but not more — ultimately to the traditional review of the judiciary. Not by accident, but in line with a general policy, Congress has deemed it wise to entrust the finding of facts to these specialized agencies. It is essential that courts regard this division of responsibility which Congress as a matter of policy has embodied in the very statute from which the Court of Appeals derived its jurisdiction to act." In Appalachian Electric Power Co. v. National Labor Relations Board, 4 Cir., 93 F.2d 985, at page 989, Judge Parker speaking for this court said: "We are bound by the Board's findings of fact as to matters within its jurisdiction, where the findings are supported by substantial evidence; but we are not bound by findings which are not so supported." See, also, National Labor Relations Board v. A. S. Abell Co., 4 Cir., 97 F.2d 951, 958; Burlington Dyeing & Finishing Co. v. National Labor Relations Board, 4 Cir., 104 F.2d 736, 739; National Labor Relations Board v. Asheville Hosiery Co., 4 Cir., 108 F.2d 288, 292, 293.

The recognition of a rule, however, does not always simplify its application. It is one thing to state that the findings of the Board will be deemed conclusive where they are sustained by substantial evidence; it is quite another thing to define precisely what is meant by the term "substantial", and to apply that definition to the concrete case. The Supreme Court has stated: "Substantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion." Consolidated Edison Co. v. National Labor Relations Board, 305 U.S. 197, 229, 59 S.Ct. 206, 217, 83 L.Ed. 126. Again it has been said that substantial evidence is evidence that affords a substantial basis of fact from which the fact in issue can be reasonably inferred. See National Labor Relations Board v. Columbian Enameling & Stamping Co., 306 U.S. 292, 299, 59 S.Ct. 501, 505, 83 L.Ed. 660. There must be sufficient evidence to justify, if a trial were to a jury, "a refusal to direct a verdict when the conclusion sought to be drawn from it is one of fact for the jury. See Baltimore & Ohio R. Co. v. Groeger, 266 U.S. 521, 524, 45 S.Ct. 169, 170, 69 L.Ed. 419; Gunning v. Cooley, 281 U.S. 90, 94, 50 S.Ct. 231, 233, 74 L.Ed. 720; Appalachian Electric Power Co. v. National Labor Relations Board, supra, page 989 of 93 F.2d." 306 U.S. at page 300, 59 S.Ct. at page 505, 83 L.Ed. 660.

Variations in the definitions of this elusive term could easily be repeated. It seems quite clear, though, that the Act does not permit a court to substitute its judgment for that of the Board. Although we might differ from the conclusions reached by the Board, we are bound by these conclusions where there is a reasonable amount of evidence to support them. National Labor Relations Board v. Waterman S. S. Corp., supra, 309 U.S. 206, 60 S.Ct. at page 504, 84 L.Ed. 704. On the other hand, where the findings are unsupported by a substantial amount of evidence, or where they are based upon a mere suspicion, it is the duty of this Court to set aside such findings or order based thereon. National Labor Relations Board v. Sands Mfg. Co., 306 U.S. 332, 59 S.Ct. 508, 83 L.Ed. 682; National Labor Relations Board v. Columbian Enameling & Stamping Co., supra.

The Board found, and it was not disputed, that the reduction in the personnel in the Lexington and Red Bank mills in February, 1938, was due to economic considerations. Before that time, the Martel Mills operated two shifts a day at Lexington and three shifts a day at Red Bank. However, on February 23, one shift was cut off at Red Bank and Waits and the Whittles were dismissed at that time along with about one-third of the employees at the Red Bank mill. On March 2, the second shift at Lexington was discontinued and Schwartz, along with approximately half of the Lexington employees, was...