§ Order of the Day for the Second Reading, read.
§ THE EARL OF MORLEY, in moving that the Bill be now read the second time, said, that its object was temporary, being to protect the funds of trades unions until another Bill was introduced next Session on the subject. At present these trades unions were re- 993 garded as private societies, and were prevented from taking advantage of the Friendly Societies Act of 1865. By this Bill they could, by depositing a copy of their rules, as provided by the 44th section of the Friendly Societies Act, be brought within its scope, and a remedy given in cases of misappropriation, where at present there was no remedy at common law. The simple object of the Bill was to prevent the misappropriation of the funds of trades unions, and the Bill would remain in force for one year only.
§ Moved, "That the Bill be now read 2a" —(The Earl of Morley).
§ LORD CAIRNSsaid, the Bill was anomalous and premature, inasmuch as a Royal Commission had sat on the subject, and the Bill was not framed in accordance with any of that Commission's recommendations. The Government evidently hoped by this Bill to get trades unions recognized in some way or other as friendly societies; for the measure recited that although the object of the society might be illegal, inasmuch as it tended to restraint of trade, yet it should rank as a friendly society for the purpose of protecting its funds. If the measure were necessary, there would be some shadow of excuse for accepting it; but it was not—as the Act initiated by Mr. Russell Gurney protected the funds of legitimate friendly societies — and he objected to giving trades unions, illegal in their object, the protection of the law.
THE LORD CHANCELLORsaid, the measure was necessary, and had resulted from a somewhat strict construction having been put on the word '' illegal "as applied to trade societies by the Court of Queen's Bench, which had declared that persons joined together as a trade union, not for the purpose of restricting trade by intimidation, but simply resolving among themselves not to engage in their trade except under certain conditions, were illegal. This decision prevented the societies from recovering money due to them, or punishing those who embezzled their funds. This decision had created great alarm among the trades unions, and, in consequence, a Bill had been introduced in "another place," giving to trades unions all the benefits enjoyed by friendly societies; but, thinking this was out of the question, the Government had re- 994 solved to introduce this temporary measure, in order to protect these societies from robbery, until the whole matter could be dealt with in a comprehensive manner.
§ In reply to Lord CAIRNS,
THE LORD CHANCELLORsaid, the decisions of the courts were that, if a society had anything in its rules which operated in restraint of trade, then it was an illegal society.
§ LORD CAIRNSThe result is, we are now to declare that, although its regulations may operate in restraint of trade, they are, notwithstanding, to make a society a legal society.
§ On Question, Motion agreed to; Bill read 2a accordingly, and committed to a Committee of the Whole House on Monday next.
§ House adjourned at half past Seven o'clock, to Monday next, Eleven o'clock,