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THE
REVIEW
J1UJIC TIRADE
VOL.
LXXV. No. 4
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Aye., New York.
July 22, 1922
Arbitration Better Than Law Courts
T
H E progress that has been made during the past few years in the movement to settle civil disputes by
arbitration rather than through appeal to the courts is indicated by the recent formation of an organiza-
tion of prominent business men and jurists for the avowed purpose of advocating and carrying out
such a plan in a systematic and effective manner.
It was long ago realized that the handling of civil disputes in the courts was a steadily increasing bur-
den upon business and upon the community at large, for cases of trivial character served to clog up the courts
and to build up heavy expense for the litigants—an expense frequently out of all proportion to the seriousness
of the disagreement.
In several lines of industry it has long been a practice to encourage trade disputants to present their
cases before a disinterested arbitrator, or board of arbitrators, under an agreement to abide by the decision
rendered, and the practice has been found to work out most satisfactorily to all concerned. In the music trade,
although there is no organized agency to provide for the arbitration of trade disputes, there has been shown on
numerous occasions a willingness to settle disagreements of minor importance outside the courts at a material
saving of time and money.
It is a recognized fact that business disputes, like personal disputes, frequently grow out of some
misunderstanding that is in itself insignificant and unimportant. Through constant rehashing the question
begins to become involved and in a surprisingly short time there has developed an argument that has the
appearance, at least, of being formidable. The result in all too many cases is a law suit that causes worry
and monetary loss to those involved, that widens the breach between them, keeps the machinery of the courts
operating at full speed at heavy expense to the community, and enriches no one but the lawyers.
. .••.•>
The development of the arbitration idea is not only desirable from the viewpoint of those who believe
in peace as a doctrine, but is a sound movement from an economic standpoint. Through arbitration minor busi-
ness disputes can be settled fairly and to the satisfaction of both parties involved without tying up production
or otherwise interfering with the normal pursuits of the disputants.
One of the powerful arguments presented for arbitration in inter-trade disputes is the fact that being
perfectly familiar with the various problems of the industry itself, the arbitrators are in a position to weigh
all points carefully and to render a decision that is just and based upon facts as they know them and not merely
upon such evidence as may be presented by clever attorneys bringing out the high lights to their own advantage.
It has happened frequently that the decisions of courts, based upon evidence submitted and upon briefs
rather than upon a knowledge of the trade itself, have be n apparently very unfair, the decision, in more than
one case, without doubt, going in favor of the best lawyer, rather than being based on the actual merits of
the case. Another strong argument for arbitration is that, regardless of the results of a protracted legal battle,
there is bound to have been developed ill-feeling between the litigants that breeds hatreds and frequently leads
to commercial battles that serve to disrupt whole industries. Many of those who ask the courts to settle their
disputes do so only because there is not available machinery for a more peaceful settlement of their difficulties
and it is well that such machinery should be provided either through trade associations or national organiza-
tions to work to the advantage of those who have heretofore gotten into legal tangles from necessity rather
than from choice.
'
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The new organization for arbitration is sponsored by several prominent figures in the business, economic
and legal worlds, and its activities will be watched with much interest by all those who desire to see brought
about a more speedy adjudication of minor disputes and misunderstandings than seemingly is possible under
the present methods of legal procedure in such matters.