Los Angeles herald., 1906-10-24
BEGI MS
WORK OF
PROBING
PleaIs Made to QuaSh
SubpoenaS of
Witnesses
United States Grand Jury
to Investigate
Rebates
Point Brought Up as to Whether
Employees Gould Be Forced to
Divulge Secrets of Their
Employers

A motion to quash the subpoenas is
sued by the federal grand jury Monday
for officers of the Pacific Purchasing
company and the stores forming the
alleged furniture trust in Los Angeles
for which the purchasing company acts
was introduced yesterday by the attor-
neys for the Santa Fe railroad in the
rebate investigat tion proceedings.
The motion was argued by Attorney
A. II. Van Cott that the order of the
grand jury demanding the appearance
of the Witnesses. called for in the sub
poenas. together with the Introduction
of the records of claims, credits and
other negotiaii ions between the Santa
Fe and its customers, was opposed to
the institutional amendment.
In the course of his argument At
torney Van Cott said:
"Unless more specific charge is
brought against the accused than is
already found. it seems to me that it
is contrary to law to demand the en-
ployes Of the furniture companies or
of the railroad to disclose the private
business tranSa ctions of their firms
with the sole intention of searching
for some evidence of crime. No def
mite crime has yet been accused. and
until it is the grand jury has no just
power Of calling upon the employees of
the involved companies to reveal the
secrets of their employers.
LawIer Makes Reply
1t was further argued by the at
torneys for the defense that the en-
ployes of corporation could not be
compelled to give testimony against
their employers when the testimony
would be in danger of discriminating
themselves
United States District Attorney Law
Ter replied to this however, by citing
the decision rendered in the case of
Hale VS.. HenlSel at Chicago. in which
the employees of the tobacco trust
were compelled to testify gainst their
employers and to produce private rec
ords as evidence.
while it is true that a witness cam
not be compelled to offer testimony
which will incriminate himself" said
Attorney Lawler, this privilege of
Withholding evidence does not extend
to the emplcye when in fear of in
eliminating his employer"
Several Firms subpoenaed
District Attorney Lawler stated that
1T was his opinion that the Santa Fe
railroad had induced the shippers in
Volved IN the rebate Investigation to
permit the railroad attorneys to fight
the case of both. He did not give any
grounds for such remark. further
than TO call attention to the fact that
the motion introduced by the railroad
attorneys on behalf of the shippers
to quash the subpoenas did not savor
of good intentions OH the part Of the
shippers
The concerns subpoenaed by the
grand jury Were announced In court
yesterday afternoon by A Attorney Nor
ton, and their names We're as follows:
Pacific Purchasing company, Niles
Pease company, MaclSie- Frederlcks
company, Los Angeles Furniture COM
pany Barker Furniture company,
California implement company. Hey
wood Brothers a Wakefield company,
Studebaker Implement company and
Newell-Mathews company. Severa
trucking ana transfer companies were
also included I'm the list
Judge Wellborn called an adjourn
ment of the case until 10 O'Clock this
morning
At the conclusion of the afternoon
session Judge Wellborn stated that un- =
less the attorneys for the defense sub
mitted better reasons why the subpoe-
mas should be quashed their motion
would be denied today.
Furniture Mans Statement
When asked If he had any statement
to make regarding the action pending
before the federal grand jury W. A.
Barker president of the Barker Bros.
Furniture company. said:
I'VE have no explanation to offer
other than that certain afternoon
sheet has attacked us and urged this
action In the courts because we did
not consider the paper 10 be profit :
able Advertising medium. The charge
that we are conducting trust is
something not TO be settled by a news
paper controversy, We have perfec ted
a cooperation plan whereby we are
able to buy cheaper than indivldua
dealers and we can also handle and
sell furniture cheaper than other con-
Germs The public profits by this and
the public likes It, Witness the fact
we are now selling our goods to a
large and rapidly Increasing circle of
customers. We are constantly giving
-. No.. EV4.,.