The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-05-12
PAPER TRUST IS
OUT OF BUSINESS:
Competition Will Now Be Re-
Sumed by the Mills of
the Country.
SEVERAL WITNESSES FINED
HISTORY OF THE CELEBRATED
CASE.

St. Paul May 1.-THE United States
government today secured an uncondi-
tional surrender in the United States
circuit court before Judge Sanborn Of
the paper trust. against which the at
torney general began suit on Dec. q,
1904. to dissolve a combination between
the General Paper company and TWEEN
ty-three other defendants on the
ground that an agreement had been
entered into by the defendants In re-
straint of interstate commerce.
Attorney Kellogg, for the govern
rnent, and Attorney Flanders. for the
defendants. appeared before Judge
SanbOTn, sitting circuit judge, and
Mr.. Kellogg moved that the mandate
from the United States supreme court
affirming the order that the witnesses
must testify be filed
Judge Sanborn ordered the mandate
filed.
Threw Up Their Hands.
The witnesses then appeared before
the United States examiner and offered
to testify. The defendants then with
drew their answers. Mr.. Kellogg an
nOunced that the government did not
care to examine the witnesses and
moved for a decree in favor of the gov
eminent. Judge Sanborn ordered that
the decree be entered for the govern
ment for the relief prayed and that the
decree should be settled on June 16, and
the proceedings were adjourned.
The three witnesses who refused to
testify. namely, c. I. McNair of the
Northwestern Paper company, A. G.
BOssard of the Itasca Paper company,
and 3. F. Nelson of the Hennepin Pa
per company. paid into court the 500
fine assessed against each for contempt
Of court for refusing TO answer the
questions put to them at former hear
ing
History of the Case.
Suit was brought by Frank B. KeI-
logg and James Beck. special assistant
attorneys general Of the United States,
IN behalf Of the United States against
the General Paper company and TWEEN
ty-three paper manufacturing corpora
items in Wisconsin, Minnesota and
Michigan a little over a year ago. The
complaint alleged that t,GC Defendants.
violation of the provisions of the
EherTan act. entered into an agree
slment combination and conspiracy with
Mach other TO restrain trade and COM
nerce among the several states and 70
Control regulate and monopolize said
commerce. and that this was accom-
plished by organizing the General Pa
per company % Chicago with a capital
stock of 5000, divided into 1000
shares of S1G0 each. which stock was
divided among the paper manufactur-
ing corpora tiOns in the proportion of
that each of the corporations thereupOn
entered into a contract making the
General Paper company its exclusive
selling agent. The defendants filed an
6w erS and testimony was taken for sew
eral months. most OF the facts showing
combination being elected from the
officers of the various defendant COM
panies. Finally the defendants refused
to furnish any further testimony or to
answer any questions on the ground
that the testimony would tend to GRIM
ipate the witnesses and the corpora
tons and on the ground that the testf-
mOny was irrelevant and immateriaI.
The case went to the supreme court
Of the United States and was there ar
gued on the 2nd of January, in connec-
lion with the tobacco cases.
Witnesses Were Not Exempt.
In both The paper case and the to-
baCcO case the question argued and de-
cided was that witnesses were not ex-
empt from answering on the ground
that the testimony would tend to IN
Criminate the corporations. The su-
pTeme court held that the evidence was
clearly material. that the bill of COM
plant charged an unlawful cOmbfna-
lion and conspiracy and that the tes-
timOny tended to show il.
The decision in this case really left
nothing for the defendants to do but to
submit to Judgment and today they ap-
peared in court, withdrew their an
swers and thereupon judgment was or
fered for the government, as prayed in
th~ bill Of complaint
is a complete victory for the
8 '1ent The price of paper at the
tii- this suit was brought was from
500 90 $3.50 per hundred weight. The
bringing of this suit already has had
the effect Of reducing the price Of paper
TO about S1.S5.
The decision will be important to
newspaper publishers throughout the
country. Competition viii now be re-
newed by all the mills in the country.
CARRIED TO HIGHEST COURT.