Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1907-05-23
Vermont Sets the Pace.

The decision of the Vermont SUI
preme court last week confirming the
Judgment of the Chittenden county
court in holding the Burlington Rem
dering company in contempt is of
much greater Importance tnan seems
to be generally understood. 1t will
be remembered than when the
encouragement and states attorney
began the investigation of the "Beei
charges" before the Chittenden grand
jury last September the Rendering
company refused to produce its books
of account and the papers called tor,
claiming that they had been sent to
the general office of the COMPANY. in
Boston and were not within the juris-
diction OF this state. There being no
officers of the company in the state
upon whom there could be served a
subpoena duces tecum the state was
powerless to compel the production
of the papers required. The attorney
general asked that the grand jury ad-
jOnrn for a month. In the meantime
the legislature met and there was pre-
sented to the judiciary committee a
bill which was at once favorably re-
ported and it passed both houses and
received the approval of the governor,
all in one day. This rapid. fire legis-
lation created some adverse comment
at the time, but the result has justified
it.
This law provides that corporations
doing business in this state must,
upon being notified so to do, produce
before any court or tribunal under the
jurisdiction OF the state, any books or
papers relating to transactions in the
state OF Vermont which may be called
tor. The failure of the corporation to
comply makes it liable in contempt
and. further, it may be enjoined from
further doing business in the state
Acting under this law, the attorney
i general notified the Rendering com
pany to produce the books and paper.
on the day specified. 1t refused to dc
so and proceedings were brought
against it for contempt. Counsel fol
the Rendering company put up vigor
GUS opposition. claiming that the law
was unconstitutional in that il was al
unlawful search and seizure, that i
compelled the corporation to give evi
dence against itself, thai it was no
due process of law, and that it wa,
taking The property of the corporation
without just compensation.
Chief Judge Rowell presided ant
held the corporation in contempt ant
imposed q fine OF $4,000. Exception
were taken to the supreme court
where the case was argued at thu
January term. The decision of tn,
supreme court, rendered last week
sustains the constitutionality of tn
law and confirms Judge Rowelr
Judgment. 1t is likely that the cas-,
will 90 to the supreme court of tn
United States. Ii the law is final,
sustained, as it seems likely to be,
marks long step forward in stat
control OF corporations. 1t arms tn
state authority with the power to ge
at the facts from the books an,
/ records OF the corporations themselve
and cures defect which has lon
| been recognized. 1t is safe to pIophes,
that Vermont has set the pace in thi
| important measure and that the Law
/ which was rushed through our legi,
lature in its early days last Octo Ne
within very few years will be upo
the statute books OF every state in tn
union Blattlcboro Phoenix.
CA9ToRTA.
Bears the zlhs Kind You Have Always Bougt