Evening star., 1941-04-08
Defense Fights
Medical Case
Convictions
; Motions Filed
To Upset Verdict
Against z Groups
By HAROLD b. ROGERS.

Medical Association and the Dis
trict Medical Society will come be-
fore Justice James M. Proctor In
District Court after the end Of the
Easter recess of court April Il, 1t
was learned today.
The motions were filed late yes
terday afternoon by defense coun-
sci, two minutes before the closing
of the clerks office. They we're:
To set aside the guilty verdict and
substitute a Judgment of not guilty
for the defendants, a motion 1Or
arrested Judgment. and a motion
for new trial.
Government counsel plan to op-
pose The latest moves of the defense,
and probably will file briefs in an
kwer soon.
II is possible the arguments may
he heard before Justice Proctor be-
tween April 81 and April Is.
Split Verdict Point Raised.
The two medical corporations
were convicted late Friday night,
when a Federal jury returned
verdict of guilty against them ana
at the same time acquitted IL IN
dividual doctor defendants. Ine
charges were alleged violation OF the
Sherman Antitrust Act, through
restraint of trade against Group
Health Association, medical CO.
lucrative for Government workers
here.
One of the principal points raised
nv the defense is that the split YER
dict freeing the individual defend
ants leaves the two corporations
without any guilty human agency
10 implement any guilty act.
In their motion to set aside the
verdict. defense counsel declare tine
law holds a corporation can only
act through its officers, agents and
employees. In the present case, as
a matter of fact, the evidence SHOWS
that the two corporations could only
have acted by their officers, agents
and employees, all of whom nave
been acquitted. AS the theory upon
which a corporation can be held
criminally responsible is the theory
that the illegal acts and crimlnai
intentions of its employees can be
imputed to the corporation, it fol-
lows that in the present case there
is no factual foundation for IN
ferring that the corporations are
guilty.
"Not as individuals"
The indictment having charged
that the acts were committed by the
individual defendants, not as mol-
viduals but as agents OF the two
corporate defendants, and the lndl-
viduals having been acquitted, 1t
follows that the corporations can
not be held.
The indictment does not charge
nor does the proof show that the
activities of the defendants, or
either of them, violated any law OF
the United States. There is nothing
to show that they concern trade or
commerce in the District OF Co.
lumbia within the meaning OF sec
ton 8 of the Sherman Act.
THE indictment shows that the
activities of Group Health Associa-
tion, it's doctors and members, con-
stitute the illegal practice of medi-
cine by a corporation, and there
fore such activities could not be
the subject of conspiracy IN re-
straint of trade under section 5
of the antitrust law.
'The activities alleged and proved
against the defendants, or either
Of them, were within their lawful
rights.
The jury having held the indi-
vidual defendants are not guilty,
there is no evidence left in the case
with which to hold the corporate
defendants"
G. M. C. Case Cited.
The question at issue in the split
verdict, defense counsel point out,
is now pending before the United
States Circuit Court of Appeals for
GI16 SSNcllOIl III SdOO o6o
the General Motors Corp. In that
case, it was recalled, conspiracy
In violation of the Antitrust Act,
4 corporations were convicted and
19 individuals, their officers, were
acquitted.
The Supreme Court of the United
States" defense counsel contended,
''is already committed to the view
that the only way in which a cor
poration can be convicted of crime
Is upon the theory that the criminal
acts of its officers and agents can
be imputed to the corporation"
The three motions were filed yes
terday afternoon by Edward M.
Burke, general counsel of the A. M.
A.. and by Warren Magee, also Of
defense counsel Others signing the
motions include William E. Leahy,
Seth Richardson and Charles S.
U1