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Domestic News January 1, 1909

The Forrest City Times

Forrest City, Saint Francis County, Arkansas

What is this article about?

In Chicago, the U.S. government launches prosecution against packing companies, with District Attorney Sims presenting evidence to a federal grand jury for indictments and contempt charges over violations of a 3-year-old antitrust injunction involving the National Packing Co.

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GOVERNMENT AFTER THE PACKERS
SIMS WILL TRY TO SEND THEM
TO JAIL FOR VIOLATING
INJUNCTION.
20 WITNESSES ON
Hand
Morris & Co. Man Is First Called to
Tell of Big Merger—Secret
Service Men Gathering
Evidence.

Chicago, Ill. - The government began to unlimber its big guns in the prosecution of the packing companies when the federal grand jury reconvened at 10 a. m. Monday.

After 36 hours of almost constant work, United States District Attorney Sims said he was ready to uncover to the grand jury the government's real purpose in the inquiry, though he is still maintaining an absolute silence about what the government has up its sleeve.

That the government probably will attack with a two-edged sword was learned Monday. It is now said that District Attorney Sims proposes not only to seek indictments for the packers by the grand jury, but to use the evidence taken to procure these indictments in proceedings before Federal Judge Grosscup for contempt of court.

Three years ago, when the government inaugurated its fight on the "packing trust," two proceedings were started—one a criminal proceeding and the other an action in equity—to secure an injunction which was broad enough to prohibit rebating. The government will now allege that this injunction has been violated.

Interest Is National.

Interest in the case Monday largely centered in what tack the government will take in its inquiry into the National Packing Co. It is alleged that the government will find it difficult to establish the contention that the existence of this company constitutes a trust agreement.

It is declared that the packing combine is not exactly in the nature of a trust, in the sense that it pools business and divides profits, but is merely an "understanding" that the National Packing Co.'s quotations shall stand as the live stock prices for every day.

The grand jury investigation is expected to show just how far this "understanding" reaches and whether it can be construed under the law as a violation of the Sherman act.

Packingtown was alive with secret service agents Monday, every operative in the Chicago secret service headquarters being detailed to assist the government's inquiry.

What sub-type of article is it?

Legal Or Court Economic

What keywords are associated?

Packing Companies Antitrust Prosecution Grand Jury Injunction Violation Sherman Act National Packing Co District Attorney Sims

What entities or persons were involved?

United States District Attorney Sims Federal Judge Grosscup Morris & Co. Man

Where did it happen?

Chicago, Ill.

Domestic News Details

Primary Location

Chicago, Ill.

Event Date

Monday

Key Persons

United States District Attorney Sims Federal Judge Grosscup Morris & Co. Man

Outcome

seeking indictments for packers and contempt of court proceedings for violating injunction; evidence gathering ongoing.

Event Details

The federal grand jury reconvened at 10 a.m. Monday to hear the government's case against packing companies for violating a three-year-old antitrust injunction. District Attorney Sims plans to seek indictments and use evidence in contempt proceedings before Judge Grosscup. First witness from Morris & Co. called regarding the National Packing Co. merger. Secret service agents assisting inquiry into potential Sherman Act violations via an 'understanding' on livestock prices.

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