Los Angeles herald., 1906-05-12
PAPER TRUST
COMES TO TIME
UNCONDITIONAL SURRENDER
SECURED
Result Is Immediately Apparent
Paper Formerly Sold for $2.S5
Per Hundred Pounds Now
Selling for st.s5
BY Associated Press,

A'S AsdOt4dAtu EEbSHt
ST. PAUL. Mimi. May 1.-THE
United States government today se-
cured an unconditional surrender in
the United States circuit court before
Judge Sanborn of the paper trust,
against which the attorney general be-
gan a suit on December "a, 1904, to
dissolve a combination between the
General Paper company and twenty
three other defendants, on the ground
that an agreement had been entered
into by the defendants in restraint of
interstate commerce.
Attorney Kellogg. for the govern
ment, and Attorney Flanders, for the
defendants, appeared before Judge
Sanborn, 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 filed.
Orders Mandate Filed
Judge Sanborn ordered the mandate
filed.
The witnesses 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
moved for a decree in favor Of the
government.
Judge Sanbcrn ordered that the de-
cree be entered for the government for
the relief prayed and that the decree
should be settled on June 16, and the
proceedings were adjourned.
Many Refuse to Testify
The three witnesses who refused to
~ n al 4 IN T,a. 1f =,
Northwestern Paper company, A. C.
Bossard of the Itasca Paper company
and b. f. Nelson Of the Hennepin Pa
per company, paid into court the $100
fine assessed against each for con-
tempt of the court for refusing to an
swer the questions put to them at a
former hearing.
Suit was brought by Frank B. Kel-
logg and James Beck, special assis-
tant attorneys general of the United
States, on behalf of the United States
against the General Paper company
and twenty three paper manufacturing
corporations in Wisconsin, Minnesota
and Michigan, little over a year ago.
Enter Into Conspiracy
The complaint alleged that the de-
fendants, in violation of the Sherman
antitrust act, entered into a con-
SpIdCy anu agreement WlJn eacn
other to restrain trade and commerce
among the several states and to con-
troll, regulate and monopolize said COM
merce. and that this was accomplished
by organizing the General Paper COM
p2ny of Chicago, with a capital stock
OF 100000, divided into 1000 shares Of
$100 each, which stock was divided
among the paper manufacturing cor
porations in the proportion of their
average daily output Of paper, that
each of the corporations thereupon en-
tered into contract making the Cen
eral Paper company its exclusive SELL
ing agent.
The defendants filed answers and
testimony was taken for several months,
most of the facts showing a combina-
tion was eSicited from the officers of
the various companies.
Refuse to Give Testimony
Finally the defendants refused to fur
nish any further testimony or to answer
any questions, on the ground that the
testimony would tend to criminate the
Witnesses and the corporations, and
on the ground that the testimony was
Irrelevant and immaterial.
The case went to the supreme court
Of the United States and was there
argued on the I'd of January in connec-
liOn Will Tie lODdCCO CASTS.
In both the paper case and the to-
bacco case the question argued and de-
cided was that witnesses were not ex-
empt from answering on the ground
that the testimony would tend to in
crlminate the corporations.
The subreme court held that the evil
dence was clearly material, that the
bill of complaint charged an unlawful
combination and conspiracy and that
the testimony tended to show 1t.
Government Wins Victory
The decision in the case really left
nothing for the defendants to do but to
submit to judgment, and today they ap-
peared in court, withdrew their answers
and thereupon Judgment was ordered
for the government as prayed in the
bill OF complaint.
The price of paper at the time this
suit was brought was from $225 to $235
per hundredweight.
The bringing Of this suit already has
had the effect of reducing the price of
paper to about $1.S5.
The decision will be important to
newspaper publishers throughout the