Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-12
JUDGMENT CONFESSED ON ALL POINTS
MEMBERS CHARGED WITH CONSPIRACY
ECllNE IN PRICE OF WHITE PAPER
Market Drops Forty Cents a Hundred
since Filing Of the suit and
Further Reduction is
Expected.


! ST. PAUL. Mimi. May 1.-THE United
/ States government today secured an un-
/ conditional surrender in the United States
| cuircuit court before Judge sanborn
in the suit which the attorney general
began on December q, 1904. to dis
solve the combination between the Gen.
| eral Paper company and twenty-three
other defendants on the ground that an
agreement had been entered into by the
defendants in restraint Of interstate COM
meTce.
Attorney Kellogg for the government and
Attorney Flanders for the defendants APP
peared before Judge Sanborn. sitting as a
circuit Judge, and Mr.. Kellogg moved that
the mandate from the United States SUI
preme court affirming the order that the
witnesses must testify, be filed.
Judge Sanborn ordered the mandate fled.
! The witnesses then appeared before the
! United States examiner and Uhered 20
testify. The defendants then withdrew
their answers. Mr.. Kellogg announced that
the government did not care to examine the
witnesses and moved for a decree In favor
Of the government Judge sanborn ordered
that the decree be entered for the govern
ment for the relief of the prayer and the
ceedings were adjourned.
Three witnesses who refused to testify.
namely, c. /. McNair of the Northwestern
| Paper company. A. c. Bossard OF the
Itasca Paper company and B. F. Nelson
Of the Hennepin Paper company, paid into
court the 800 fine assessed against each
for contempt of court for refusing TO
answer the questions put to them at
former hearing.
story of the suit.
Suit was brought by Frank B. Kellogg
and James M. Beck. special assistant at
/ torneys general of the United States on be-
half Of the government against the General
Paper company and twenty-three paper
manufacturing corporations in Wisconsin,
| Minnesota and Michigan a little over year
ago. The complaint alleged that the de-
fendsnts in violation of the provisions OF
the Sherman act entered into an agree
ment, combination and conspiracy with each
other to restrain trade and commerce
among the several states and to control.
regulate and monopoliEe said commerce.
and that this was accomplished by organ
izlng the General Paper company OF Chi
cago with capital stock Of $4,000 divided
into 1000 shares Of 500 each. which stock
was divided among the paper manufactur-
ing corporations in proportion Of their daily
output OF paper InhI the CORPORATIONS
thereupon entered into a contract making
the General Paper company its exclusive
selling agent. The defendants hled answers
and testimony was taken for several
months most OF the facts showing a COM
bination were ELECTED from the officers OF
the various defendant companies. Finally
the defendants refused to furnish any
further testimony or to answer any ques-
tions on the grounds that the testimony
would tend to incriminate the witnesses
and the corporations, and on the ground
that the testimony was irrelevant and i'm
material. The case went to the supreme
court Of the United States and was there
argued on January p 10 connection with
the tobacco cases"
Questions Decided.
In both the paper case and the tobacco
case the question argued and decided was
that witnesses were not exempt from
answering on the ground that the testimony
would tend to incriminate the corporations.
The supreme court held that the evidence
was clearly material. that the bill OF
complaint charged an unlawful combina-
tion and conspiracy and that the testimony
tended to show IT,
The DECISION in this cease really left
nothing for the defendants to do but sub
nit to judgment and today they appeared
in court, withdrew their answers and there
upon judgment was ordered for the govern
ment. as prayed in the bill OF complaint.
This is a complete victory for the gov
ernment. The price of paper at the time
this suit was brought was from s2s6 10
1886 per cwt The bringing OF this suit
already has had the effect of reducing the
price OF paper TO about S1-S5
The result has been very beneficial to the
, newspaper publishers throughout the coun-
try. Competition win now be restored be-
, tween the various mills.
) Attorney General Talks.
Z WASHINGTON, May l1.--Attorney Cen
eral Moody. upon being questioned con
= oerning the Significance of the action or
the defendants in Withdrawing their an
swer to the governments bin in the Paper
, trust case today at st. Paul. said;
! This action on the part OF the constiu-
= ent companies OF the Paper trust ter
. inmates the litigation by the entry OF a
Judgment for all the government de.
manded in it's bill and 10 complete vic
tory for the United States. They manu-
facture substantially the sole supply OF
news print and hhcr paper for the dis
trict west OF Chicago and east OF the
Rocky mountains.
During the summer and autumn OF 1900 a
large amount Of testimony was taken
Which Tended 10 show the existence OF the
allegation combinati ss charged In the
bill. During tie taking OF the testimony
books and answer questions ON the ground
that such evidence was mmaterial and
' that n would tend 10 incriminate them.
3 Proceedings were thereupOn instituted IN
q the United States circuit court for the
, eastern district cf Wisconsin TO punish Tor
contempt for refusing TO produce books
and answer questions. These cases were
argued IN the supreme court Of the United
states ON the "a day OF January, 1905. with
/ the case OF Hale against Henkel commonly
! known as the Tobacco trust case. The
- same questions we're involved In the Paper
! 90 fugplNed the To.
bacco trust case and the decisions Of the
supreme court In the two cases were rem
dercd at the same time. These decisions
, ! practically disposed OF tho defense In the
! Paper trust case aud resulted In the pro-
Q cuedings In the circuit court AZ 81. Paul
Z this morning, by which final judgment
, had been ordered In favor Of the govern
p ment
Company 90 Dissolve.
MILWAUKEE. May ia Journal spe-
cial from Menasha. Wis. says that Georgs
! A. Whiting. first vice president OF the G,n'
. srsl Paper company. says that the compans
9 will now dissolve. When asked whether the