Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1906-05-15
Federal VICTORY
over Paper TRUST
JUDGE sANBoRN ORDERS DE-
GREASE AGAINST COMBINE
IN ST. PAUL COURT.

IN ST. PAUL COURT.
COMPETITION WILL BE
RESTORED AS RESULT
Defendant Companies Withdraw An
swers to Suit and Judgment Is
Ordered for Government-Price Of
Stock Reduced.
st. Paul, Mimi, May 1.-THE United
States government Friday secured an
unconditional surrender in the United
States CIRCUIT court, before Judge San
born, in the suit which the attorney
general began on December 81, 1904,
to dissolve combination between the
General Paper company and % other
defendants on the ground that an
agreement had been entered into by
the defendants In restraint of inter
state commerce.
Decides Witnesses Must Testify.
Attorney Kellogg, for the govern
ment, and Attorney Flanders, for the
defendants, appeared before Judge San
born, sitting as circuit judge, and
Mr. Kellogg moved that the mandate
from the United States supreme court
affirming the order that the witnesses
must testify be fled. Judge Sanborn
ordered the mandate filed. The wit
nesses 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 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.
The proceedings before the court and
the examiner were then adjourned.
The three witnesses who refused to
testify, namely, G. l. McNair, of the
Northwestern Paper comapny; A. G.
Bossard, of the Itasca Paper company
and B. F. Nelson, of the Hennepin Pa
per company, paid into court 500 fine
assessed against them for contempt OF
court for refusing to answer the ques-
tiOns put to them ut former hearing
Violation of Law Charged.
Suit was brought by Frank B. KEEL
logg and James M. Beck, special as
sistant attorneys general of the Unit
ed States, on behalf of the United
States against the General Paper
company and % paper manufacturing
corporations in Wisconsin, Minnesota
and Michigan little over year ago.
The complaint alleged that the de-
PENDANTS, in violation of the provi-
sions of the Sherman act, entered into
an agreement, combination and con-
spiracy with each other to restrain
trade and commerce among the sew
eral states and to control, regulate
and monopolize said commerce, and
that this was accomplished by organ
5zing the General Paper company, Of
Chicago, with capital stock of $780,
900, divided into 1000 shares Of 800
each, which stock was divided among
the paper manufacturing corporations
in the proportion Of their average
daily output Of paper; that each of
the corporations thereupon entered
into a contract, making the General
Paper company its exclusive selling
agent. The defendants filed answers
and testimony was taken for several
months, most Of the facts showing a
combination were ELECTED from the
officers Of the various defendant COM
panies. Finally the defendants re-
fused to furnish any further testi-
mony OF to answer any questions, on
the grounds that the testimony would
tend to criminate the witnesses and
the corporations, and on the ground
that the testimony was irrelevant and
tmmaterial. The case went to the SUI
preme court of the United States and
was there argued on the I'd of Jan
uary in connection with the tobacco"
cases.
In both the paper case and the to-
bacco case the question argued and
decided was that witnesses were not
exempt from answering on the ground
that their testimony would tend to
criminate the corporations. The SUI
preme court held that the evidence
was clearly material, that the bill OF
complaint charged an unlawful COM
bination and conspiracy, and that the
testimony tended to show 1t.
Victory Is Complete.
The decision in this case really Left
nothing for the defendants to do but
to submit to Judgment, and they an.
peared In court, withdrew their an.
swers and thereupon judgment was
ordered for the government as prayed
in the bill Of complaint. This is a
complete victory for the government
The price of paper at the time this
suit was brought was from 1925 tc
$2.35 per cwt. The bringing of this
suit has already had the effect of re.
ducing the price of paper to about
$1.S5. The result has been very bene.
fetal to the newspaper publishers
throughout the country. Competition
will now be restored between the va
rinus mills
Capture Of Bandits Near.
Kamloops, b c., May 1.-THE roll
bers who held UP the Imperial Lin