United States v. E. I. Du Pont De Nemours & Co.

126 F. Supp. 27, 1954 U.S. Dist. LEXIS 2442, 1954 Trade Cas. (CCH) 67,898
CourtDistrict Court, N.D. Illinois
DecidedNovember 16, 1954
DocketCiv. A. 49 C 1071
StatusPublished
Cited by3 cases

This text of 126 F. Supp. 27 (United States v. E. I. Du Pont De Nemours & Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. E. I. Du Pont De Nemours & Co., 126 F. Supp. 27, 1954 U.S. Dist. LEXIS 2442, 1954 Trade Cas. (CCH) 67,898 (N.D. Ill. 1954).

Opinion

LA BUY, District Judge.

There are forty-five exhibits which have been submitted at the close of the trial and offered in evidence subject to further ruling. Thirty-nine are government exhibits offered as rebuttal evidence and six are defense exhibits offered in surrebuttal.

The major portion of the thirty-nine exhibits offered by the government are directed to trade data. Eleven are statistical charts showing the ultimate percentage of business transacted between General Motors and du Pont and its competitors. To meet the evidence in these exhibits, the defendants have offered six surrebuttal exhibits which are also statistical charts. Twelve government exhibits consist of excerpts from Annual Competitive Reports made by the du Pont Fabrics and Finishes Department to the du Pont Executive Committee regarding trade in these products and the factors affecting increases or decreases in sales each year. The balance of the government’s exhibits consist of various letters or reports written in different years relating to a variety of subjects.

Defendants’ principal objections to the government’s exhibits are fourfold and are asserted either separately or in combination. These objections are (1) the offered exhibits are not proper rebuttal evidence and were properly a part of the main case; (2) some of them seek to impeach testimony of certain witnesses without having laid a proper foundation for such purpose; and further to allow these exhibits introduced at the close of the trial would be prejudicial to the defendants because the witnesses have been foreclosed the opportunity of being confronted with the alleged impeaching documents; (3) some of the exhibits are inadmissible as being hearsay evidence, and (4) the statistical exhibits are inaccurate and misleading.

The principal objection to the bulk of these exhibits is that they were properly a part of the government’s case in chief and pursuant to rules governing orderly presentation of evidence should have been so submitted and not reserved until rebuttal. This is one of the criteria followed by this court in its ruling with respect to the government’s motion for discovery made near the close of the trial. In its memorandum this court recognized that the customary order of presenting evidence was not immutable and was subject to the permeating objective of litigation to give opportunity for full disclosure of all facts in order to render a just determination. To this end, discretion reposes in the court to admit or reject evidence proffered out of context mindful that no prejudice should be suffered by the one against whom the evidence is offered. Furthermore, in antitrust cases, if full effect is to be given the anti-trust laws, it is necessary to develop fully the background of facts out of which the alleged conspiracy arose and in which it operated, and that broad discretion and great latitude toward the reception of evidence should be exercised.

In ruling on these exhibits the court considers them in their numerical order.

[30]*30GTX 199

In 1941 W. S. Carpenter, President of du Pont, wrote to Donaldson Brown at General Motors regarding certain proposed changes in the organization of General Motors which were being considered by the Policy Committee expressing concern regarding the shortcomings of moving able personnel, specifically a Mr. Bradley, from the financial department to the operations department without providing for equal caliber to fill the vacancy.- Mr. Brown replied to Carpenter, which letter has been objected to by the defendants.

In this letter Brown seeks to explain a presumed misconception of Carpenter and Lammot du Pont as “to the strength of personnel in the Finance Department of General Motors” saying:

“In the first' place I think you and Lammot have gained somewhat of a false impression for a too-literal reading of the organization chart as it has pictured the financial department. My name has appeared in blocks representing Financial Department and also representing the group of activities embracing GM AC, GEIC, and MIC giving to you the impression that I was to be regarded as in administrative charge of these branches. Such has not been the case, and the new chart that is being prepared will be corrected and thereby remove any possible misinterpretation in this respect. * *
“Now, as to the central organization of General motors, as it may be concerned with the financial aspects there is no weakness existing as I can see it. The application of Mr. Bradley’s knowledge and feel of the financial aspects is not lost. In fact it is enhanced by the new duties he has assumed. The financial department remains separate, organizational-wise from operations and is responsible to the Policy side of management. Effort will continue in training of men in the attainment of experience and skill in dealing with financial aspects and bringing in operating executives to greater consciousness of financial considerations and of the essential principle of coordinated control. * * * ”

The basis of the defendant’s objection to this exhibit is that it is not proper rebuttal evidence and that at one time plaintiff proposed to offer it as a part of its case in chief. The government maintains it is proper rebuttal of “new subordinate evidential facts” offered by the defense — that defendants introduced organizational charts GM 2-6, inclusive, designed to show that although du Pont representation may dominate the financial affairs of General Motors, there was a sharp separation of finances from operations.

The court is of the opinion this exhibit is proper rebuttal evidence. The objection of the defendants is overruled and the exhibit is received in evidence.

GTX 230

This is a letter- written by Sloan on November 28, 1947 to Donaldson Brown concerning General Motors directors. Sloan at the time of this writing was Chairman of the Board and Brown was a member of the General Motors Board, a director of the du Pont Company, a member of the Financial Policy Committee of General Motors, and also a member of the Finance Committee of the du Pont Company. A copy of this letter was sent to W. S. Carpenter, who was also a member of the General Motors Financial Policy Committee, a director of General Motors and du Pont, a member of the Finance and Executive Committees of the du Pont Company and its then President.

The significant part.of the letter from the government’s point of view is the last paragraph:

“I might add to this, that I think the proper group — to the extent that there is a group — to discuss candidates ought to be the members of the Financial Policy Committee. • I do not think it is an operating matter, in any sense of the word: By all-this I mean, that the recommenda[31]*31tions of the Financial Policy Committee, not as a Committee, but as individuals, should determine the recommendations to the Board because I am sure we would feel that the Board should have a voice in determining who is to be added to its membership, aside from the fact that its favorable action is necessary.”

The government states it is offered as rebuttal to the testimony of Sloan concerning the manner of the nomination of men to membership of the General Motors Board of Directors; that Sloan’s testimony that he discussed such directors with the General Motors Board raised the subordinate factual issue that the advice and guidance of the du Pont representatives on the matter of directors was not sought out and followed any more than any other directors.

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Bluebook (online)
126 F. Supp. 27, 1954 U.S. Dist. LEXIS 2442, 1954 Trade Cas. (CCH) 67,898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-e-i-du-pont-de-nemours-co-ilnd-1954.