Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-05-11
THE PAPER TRUST
HAS SURRENDERED.
Government Scores a Complete
Victory in Suit Against General
Paper Co. and Others.
WITNESSES PAID THEIR FINES
We're For Contempt IN Refusing TO
Answer Questions Put to Them
At Former Hearing.

st. Paul, May 1.-THE United States
government today secured an uncon-
ditlonal surrender In the United States
circuit court before Judge Sanborn,
in the suit which the attor-
ney-general began on Dec. u,
1904, To dissolve a combination be-
tween the General Paper company and
20 other defendants on the ground thu
AN agreement had been entered into BY
the defendants in restraint of interstate
commerce.
Atty. Kellogg, for tho government,
and Atty. Flanders for the defendants,
appeared before Judge Sanborn sitting
as a circuit judge, and Mr.. Kellogg
moved that the mandate from the
United States supreme court affirming
the order that the witnesses must testi-
fy be filed
Judge Sanborn ordered the mandate
filed.
The witnesses then appeared before
the United states examiner and Of
fered to testify. The defendants then
withdrew their answers. Air. Kellogg
announced that the government did
not care to examine the witnesses and
moved yor decree In favor OF the
government Judge Sanborn ordered
that the decree be entered for the gov
eminent for the relief prayed and that
the decree should be settled on June
49, and the proceedings were adjourned,
The three witnesses who refused to
testify namely. G. |. McNair Of the
Northwestern Paper companyi A. {.
Bossard, of the Itasca Paper company,
and u. r. Nelson, of the Hennepin
Paper company, paid into court the 500
fine assessed against each for contempt
of court for refusing to answer the
questions put TO them at a former
hearing.
Suit was brought by Frank b. KEEL
logg and James Beck, special assistant
encouragement of the United states
on behalf of the United States against
the General Paper company and % pa
peh manufacturing corporations IN
Wisconsin, Minnesota and Michigan
little over a year ago. The complaint
alleged that the defendants In viola
ton of the provisions of the sherman
act entered into an agreement com
binatlon and conspiracy with eech otn-
or to restrain trade and commerce
among the several states and to con-
trol regulate and monopolze said conf
merce and that this was accomplished
by Organizing the General Paper com.
pany OF Chicago with a capital STOCK OF
100000. divided into $1,000 shares Or
500 each. which stock was divihed
among the paper manufacturing corpor-
atIous I'm the proportion Of their Az
erage daily output of paper; that each
of the corporations thereupon entered
into n contract making the General Pa
per company exclusive selling agent.
The defendants filed answers and testi-
mony was taken for several months
most of the facts showing n combina-
ton was elected from the officeis or
the various defendant companies ~
nallv the defendants refused To furnish
any further testimony or To answer any
aues ions on the ground that the tes.l-
mony would tend to criminate the Nl'-
nesses aud the corporations ana on me
ground that the testimony was irfole-
want and immaterial The case went
To the supreme court or the uint,I
states and was there argued on me
End OF January, III cohneOIloh WI" '"'
tobacco" cases.
In both the paper case and tho TO-
bacco case the question argued and de-
cided was that witnesses were not eN
cmpt from answering ON ehe grouhu
that the testimony would tend TO m
criminate the corporations The SUI
preme court held that the evidence
Was clearly material, that the bill OF
complaint charged an unlawful o9mbi-
nation and conspiracy. and that the
testimony tended 10 show H.
! The decision In this case really left
nothing for the defendants TO do but TO
submit To Judgment and today they
appeared IN coIrt, withdrew their an
swers and ther,upon judgment was or
dered for the government, as prayed III
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
s2.25 to $2.35 per hundred weight The
bringing of this suit already has mad
tho effect Of reducing the price u pa
per 10 about sl.s5.
The decision will be IMPORTANT to
newspaper publishers throughout the
country Competition VIII now be
renewed by all tho mills In tue coun-
ESQ.