The Corvallis times. (Corvallis, Or.) 1888-1909, 1906-05-15
PAPER TRUST
GIVES UP AND MAKES AN
UNCONDITIONAL SUR.
RENDER
Officers Pay Fines for Contempt and
Allow Judgment for Govern.
ment Without Opposition
Moody Explains Eff "
fect-Other News. ~

fect-Other News.
| St. Paul, May 1.-THE United
States government today secured an
unconditional surrender In the o.
United States circuit court before
Judge Sand born in the suit which
I the attorney-began on December ~,
1904, to dissolve a combination be-
tween the General Paper Company
land 80 other defendants, on the
| ground that an agreement had been
entered into by the defendants in
restraint of interstate commerce. =
| Attorney Kellogg. for the govern-
ment, and Attorney Flanders, for
the defendants, appeared before
Judge Sandborn, sitting as circuit
4 Judge, and Mr.. Kellogg moved that
the mandate from the United States
supreme curt, affirming the order
that the witnesses must testify, be
! filed. l.f
/ The witnesses then appeared be-
fore the United States examiner and
offered to testify, and the defend.
ants withdrew their answers. Mr.
Kellogg announced that the gov.
: ernment did not csre to examine
the witnesses and moved for a de-
cree in favor of the government
Judge Sanborn ordered that the de-
cree be entered and be settled OF
June 16, when the proceedings were
adjourned. :e
The three witnesses who refused
to testify, namely, G. I. McNair, o
the Northwestern Paper Company
! A. C. Bossard, of the Itasca Pa
per Company, and B. F. Nelson, Q
the Hennepin Paper Company
paid into court the 500 fine as
sessed gainst each for contempt o
court for refusing to answer th'
questions put to them at a forme
hearing.
The decision in this case reall,
left nothing for the defendants tt
Go but submit to judgment. Tn
price of paper at the time this sui
was brought wac from $2.25 to So.
80 per hundred weight. The bring
Ing of this suit already has had tn
eff ct of reducing the price to abon
$1.85.
The decision will be importsn
to newspaper publishers tbroughou
the country. Competition viii
now be renewed by all the mills Ii
the country.
Washington, May 11.-Attorney
General Moody, upon being ques
toned concerning the signi6canc
| of the action of the defendants Il
withdrawing their action to tn
governments bill in the paper trus
case today at St. Paul. said:
This action on the part of con
stituent companies of the pape
trust terminates the litigation b
the entry of a judgment for all th
government demanded in its bill
and is a complete victory for th
United States. They manufactur
substantially the sole supply {
news priat and fibre paper of th
dittrict west of Chicago and East (
the Rocky Mountains.
During the summer and autum
of 1905 a large amount of testimon
| was taken which tended to show th
existence of the illegal combinatlo
| as charged In the bill. During th
taking of the testimony the d.
ifendant corporations refused to sho'
! their books and answer question:
on the ground that such evidenc
| was immaterial and that it woul
| tend to incriminate them. Proceed
| ings were thereupon instituted
| the United States district court fe
| the eastern district of Wisconsi
AID in the United States circu
court for the district of Minnesot
\ to punish for contempt for refusin
! to produce books and answer quel
tions. These cases we're argued
the supreme court Of the Unite
States On January 2, 1905, with Il
case of Hale VS.: Henkel, commonl
known as the Tobacco Trust cast
The came questions were involve
| in the Paper Trust case as were il
volved in the Tobacco Trust cae
, / and the. decisions of the supren
Itcourt in the two cases were rende,
| ed at the same time. aN
| Those decisions practically di
| posed of the defense in the Pap,
Il Trust case, and, resulted in the pr
4 ceedings in the circuitcourt at St Pa,
/lthis morning, by which final jud