Frank Murphy

“ Section 1 of the Kickback Act punishes 'whoever' induces another person employed on a federally financed project 'to give up any part of the compensation to which he is entitled under his contract of employment, by force, intimidation, threat of procuring dismissal from such employme t, or by any other manner whatsoever.' The United States contends that this provision applies to the instant situation inasmuch as the appellees induced certain workers on a federal project to give up part of the compensation to which they were entitled by threatening to procure dismissal from their employment. ”

“ Much has been said on the floor recently about what is known as the 'kick-back' where employer or sub-employers have indecently and immorally taken from employees a part of the wage which it was supposed they were being paid. ”

“ It must be assumed from the indictment as construed below that the assessments were lawful when made and that the appellees had the right to make them on behalf of the unions. If the appellees thereafter converted the money to their own use in violation of union rules, the evil falls outside the scope of the Kick-back Act. Embezzlement and failure to obey union rules are matters vastly different from an unlawful demand upon an employee to return part of the wages he has earned. ”