The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-13
LAWS HAND IS ON
BIG MeNJPOLIES
Absolute Bar to Illegal Acts of
Corporations, in Paper
Trust Dictum.
Combines Must Reveal Inner
Workings and Risk
Prosecution.

Journal Special Service.
Washington, March 13.-The United
States supreme courts decision In the
paper and tobacco trust cases is of
monumental Importance. Its applica-
ton extends to every corporation whose
books and papers may be examined by
the government.
It means that the investigation Of
the Standard Oil, the steel trust and
the anthracite coal trust, which the de-
partment of commerce and labor has
been making for the last year, will
permit prosecutions of corporations
and some Of their officials.
1t means greater ease in the prosecu-
tion of the tobacco trust and the sugar
trust, the latter case Of direct APP
plication to every person in the coun.
try, which Attorney General Moody has
begun. -
Must Produce Books.
It means also that investigation into
the relations of the railroads and the
Standard Oil company and the rail
roads and the bituminous and anthra-
cite coal mines will not be as innocu-
Gus as the president feared when he
.signed the joint resolution authorizing
the investigation. Those companies
| must produce the books if the court
orders them to do so, and corporations
and their officials. can be prosecuted
| for any violation Of the law that may
be discovered
Beef Trust Must Answer.
So far as the beef packers are con-
! cerned, it was said at thedepartment
cerned, it was said at the department
of justice that the paper trust deci-
The network of defense which the at
torneys for the packers SO laboriously
constructed and strongly supported has
been swept aside by a decision in q
~ interested. It is expected the de-
partment of Justice will transmit the
/ text of the decision to ATTORNEY GEN
/ eral Moody in, order that he may be
Fable to use it In his argument in sup
4 port of "a motion to instruct the jury
j for the government In the pending pros
lecution.
The department of justice is more
confident now than ever that it will
secure conviction of the packers.
No Immunity Loopholes.
Corporations cannot receive immu-
j nifty from determination as individuals.
Officers of corporations may be granted
4 immunity as individuals, but must pro-
duce evidence to convict the corpora
tions in which they are interested. All
corporations are creations Of sover-
eign power and are not, privileged to
commit any illegal act or possess any
thing unlawful. When. q corporation
does either it is placed beyond the
pale of constitutional protection.
/ This is, the principle laid down today
by the decision Of the supreme court in
the four cases affecting the paper and
tobacco trusts. The result will be that
all corporations must produce their
books and papers when actions are
brought against them by the govern
ment and witnesses may be compelled
to answer all questions.
Bar to Illegal Acts.
It is possible under the supreme
court IS decisions for the department
of Justice absolutely to prevent the
commission Of illegal and unlawful acts
by and corporation. Each cor
poration against which proceedings are
instituted hereafter cannot avoid con-
been illegal. The only future safety
for corporation is to obey the laws.
A corporation will henceforth have
no protection in the courts from self
conviction unless it's books and papers
are destroyed by some officer who will
assume responsibility for contempt.
Two opinions were rendered regard.
ing the tobacco trust and two affect
| ing the paper trust. Justice Brown
, bacco trust and Justice McKenna on
the paper trust.
The Paper Trust Cases.
The proceedings In the paper trust
3 cases was an effort ON the part Of the
Z officers of the General Paper company,
) commonly known as the Western
3 Paper trust, to avoid testifying
? in the government IS prosecution
! Of that company under the Sher
: man antitrust law. The original
. was instituted in the circuit court for
the district of Minnesota in December,
! 1904, but the transaction involved in
! the cases decided by the supreme court
: took place in Milwaukee. May 16 last,
, before On examiner sent to that city
: to take testimony in the proceedings
{ against the paper company.
5 The court held that the fifth amend
3 ment to the constitution, which provides
: criminal case to be witness against
: himself, does not apply to corpora
. ton; that a. corporation has NOT the
right to secrecy like an individual; that
every government creating corpora
ton has right to inspect its books
= and papers, and to find whether it has
i violated the law of its creation, and in
s analogy to this the federal government
vi has right always to be informed as to
i whether it has violated any of the fed
|. eral. laws, and may inquire into the
e management and compel its officers to
e produce books and papers. The court
s held that the immunity of the fifth
amendment applied to the witness, but
s. that he could not take advantage of it
in favor of the corporation, his prinei-
g pal; that the witness was protected by
n the immunity statute, which provides
# THAT no person shall be prosecuted on
) account Of anything in relation to. which
d he shall testify-or furnish evidence,
h documentary or otherwise.
d But this Immunity did not extend to
d the corporation, and it was no excuse
G that the testimony might tend to con.
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