Philip Murray, the president of the Congress of Industrial Organizations (CIO), had established a permanent political action committee (PAC) known as "CIO-PAC" in 1942.
Section 304 amended Section 313 of the Federal Corrupt Practices Act to make it unlawful for any labor organization to make a contribution or expenditure in connection with any election in which presidential and vice presidential electors or a member of Congress are to be voted for or in connection with any primary election, political convention or caucus to select candidates for such offices.
On the front page was a statement by Murray, who urged members of the CIO in Maryland to vote for Judge Ed Garmatz, a candidate for Congress in a special election to be held July 15, 1947.
However, such contradictory statements could be dismissed as not indicative of the sense of Congress, Reed said, as "the language itself, coupled with the dangers of unconstitutionality, supports the interpretation which we have placed upon it.
"[3] Justice Felix Frankfurter issued a concurring opinion: "A case or controversy in the sense of a litigation ripe and right for constitutional adjudication by this Court implies a real contest — an active clash of views, based upon an adequate formulation of issues, so as to bring a challenge to that which Congress has enacted inescapably before the Court," Frankfurter wrote.
The district court, Frankfurter said, had three times argued that the government had admitted that Section 304 abridged rights guaranteed by the First Amendment.
Rutledge argued that a close reading of the legislative history finds "a veritable fog of contradictions relating to specific possible applications" of Section 304.
Rather, it imposed a blanket prohibition on labor union participation in the political process, and that was patently unconstitutional: "To say that labor unions as such have nothing of value to contribute to that process and no vital or legitimate interest in it is to ignore the obvious facts of political and economic life and of their increasing interrelationship in modern society.
"[7] The majority, Rutledge pointed out, also cites Congressional debate, which indicates a purpose of the statute was to protect minority interests within labor unions.