Omaha daily bee., 1906-01-30
LOUIS c. aAuIHoFf ON THE STAN
Former Attorney fer Armour OOmpan.
Tells Of Talk with Garfield.
SAYS COMMISSIONER MADE PROMISES
he Advised Clients 10 Show Books OF
Strength Of Statement.
FEAR the DEPARTMENT or JUSTICE
witness Insists that He Was Told
Evidence Taken for Department of
Justice Would Not He Used by
Attorney General.

CHICAGO, Jan. 2aAThe trial OF the i'm
munity plea OF the packers indicted for al
legged conspiracy In restraint OF trade was
commenced today before Judge Humphrey
in the federal court Louis c. Krauthon.
formerly general counsel for Armour Co.,
was the only witness examined during the
day. He described in detail his interview
with Commissioner of Corporations Garfield
which prepared the way for the commits
sioner's investigation of the packing indus
try and during which. the packers allege.
he promised immunity to the packers pro-
yided they would allow him TO have access
TO their books. He declared that Commis-
sioner Garfield told him that the informa-
ton would not be used In any criminal
prosecution. and that his department had
no connection whatever with the Depart
ment OF Justice Acting these state
nents from the commissioner Mr.. Kraut-
hoff declared that he advised his clients, as
we'll as Nelson Morris & Co and Swift and
Company. to accede to the demands of the
commissioner and give him such informa-
ton as he desired.
In the afternoon Mr.. Krauthoff was cross
examined by District Attorney Morrison.
The examination was slow. as the district
attorney continually objected to the an
swers OF the witness. declaring that they
were argumentative rather than respon-
sive. The court ruled, however, that the
witness had a right to explain his answers.
When court adjourned tonight District At
torney Morrison had not completed his
cross-examination and Attorney Krauthofr
will take the witness stand again In the
morning.
Testimony in Detail.
The first witness was Louis G. krauthof
of New York, formerly general counsel for
Armour x Co. He was placed on the stand
to narrate his interview with Commissioner
of Corporations Garfield At the Chicago
club April l3, 1906. when. The packers aIlege.
Mr.. Garfield said certain things the import
Of which was that II he received the in
formation for which he asked the packers
should never be prosecuted criminally.
Judge Humphrey ruled that IL it were
true that the packers had divulged evidence
themselves under pressure from the gov
ernmcnt It would be competent to show the
nature of the legal advice under which the
lefcndtlses xc-c acting =
Attorney Miter then asked the witness:
did you advise your clients as to the
power Of the Commissioner to compel testi-
Inony?"
Il did, fully"
Did you advise them to comply with his
requirements IN case he should call for
testimony"
That was the principal subject on which
advised them"
Witness then described his meeting with
Commissioner Garfield as follows:
Charles O. Dawes telephoned to me and
said that Mr.. Garfield In the city and
asked if desired TO meet him, l said that
! would, and in company with Mr. Samue
We went to the Chicago club"
Il was introduced to Mr. Garfield by MIR
Dawes. After some remarks about Uthei
mttcrs Mr.. Garfield opened the matter
and IL was discussed for nearly two hours.
GaraeId's Statement.
Alr Carried stated, in formal way. ap
r-,entiy careful of his language, substnu
~ TINS: That the Martin resolution i'm
sed upon him "A duty of investigating tn
iilcking industry: that in order TO do thi
nc must have access to the books of tn
packers. tits purpose in coming TO Chicag
TO gain tn.s information. lie said n
uad held conferences with the presiden
and others in respect to the investigation
and that II was OF very great importance
Ite said he anxious that the invcsti
cation should be fair. exhaustive and tho
.ough. so that the usefulness OF his depart
lent would oc shown.
"A knew the powers of his Office an
pIoduced pamphlet, report Of the secrc
any OF commerce and labor. and remarko
tnat OF course, knew his power To get tn
information.
My first remark was that had occasiu
% look into the law. lie then said I,
wished TO make success and not resoI
TO detective methods and wished 10 repoi
to the president so he could report to col
gress.
He again said he spoke for the presiden
ana that, of course. we would have III
protection necessary under the law crea tin
mis- department
Il told him that my clients were in
very dificult position and that the new,
papers were full of matter pertaining
them. I told him that n the law was val
there was 10 doubt he couid compel n
Information
Fears Department of Justice.
Il told him that II the results OF IN
submission to his requirements were to
further newspaper notOriety and Titigatio
1 would. OF course. contest the law Il
said that the letter OF the law protected N
clients. l called his attention TO the que
tons OF the validity OF the law. He al
swered that his department must nece
ments and particularly the Department
Justice and II IL were known his departmel
was affiliated with the Department of Ju
tice. Of course. people would not give hi
any information lie said that IL l CO.
sented that the law was valid the matu
divided into three classes-that
which the government was entitled. III
which was doubtful and thar to which Il
government was not entitled. He then d
tailed how IL could be done; his speci
agents 20 go to one house and begin q
Investigation.
Il said In view OF his determination
acquire this Information felt-I hesitate
continue"
The witness turned to District Attorn
Morrison and asked;
Mr.. Morrison. do you wish TO object p
Say what you told him." said Jud
Humphrey.
Il then asked him." said Mr. Krautho
Continued on sinh PaaeA