United States v. Owens-Corning Fiberglas Corporation

271 F. Supp. 561, 1967 U.S. Dist. LEXIS 11207, 1967 Trade Cas. (CCH) 72,217
CourtDistrict Court, N.D. California
DecidedJuly 31, 1967
DocketCrim. 40052
StatusPublished
Cited by8 cases

This text of 271 F. Supp. 561 (United States v. Owens-Corning Fiberglas Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Owens-Corning Fiberglas Corporation, 271 F. Supp. 561, 1967 U.S. Dist. LEXIS 11207, 1967 Trade Cas. (CCH) 72,217 (N.D. Cal. 1967).

Opinion

MEMORANDUM AND ORDER

OLIVER J. CARTER, District Judge.

Defendants are charged by information with engaging in an unlawful combination and conspiracy in restraint of interstate trade in the sale and installation of acoustical ceiling materials in the Northern District of California in violation of 15 U.S.C. § 1 (the Sherman Anti-Trust Act). Defendants have moved on various grounds to dismiss the information. The motions have been briefed, argued and submitted to the Court for judgment. Since one of the grounds for dismissal involved a possible application of Escobedo v. State of *565 Illinois, 378 U.S. 478, 84 S.Ct. 1758, 12 L.Ed.2d 977 (1964), the Court at the suggestion of counsel for the defense by letter of December 20, 1965, has delayed its decision until the disposition by the Supreme Court of Stewart v. State of California. That case was decided June 13, 1966, by the Supreme Court sub nom Miranda v. State of Arizona, 384 U.S. 436, 86 S.Ct. 1602, 16 L.Ed.2d 694 (1966).

The information filed in this Court against the defendants resulted from an investigation of the glass fiber industry conducted by a federal grand jury in the Northern District of Ohio. Defendants argue that the presentation to that grand jury of matters known to have occurred in the Northern District of California was a purposeful abuse of the grand jury system on the part of the attorneys for the Anti-Trust Division of the Department of Justice. They claim that this device was a ruse on the part of the government to trick them into giving self-incriminatory evidence to the government attorneys. The Court finds that there was no abuse of the grand jury system and no deceit practiced on the defendants by the government.

The grand jury in the Northern District of Ohio was properly called, impanelled and charged by the district court in Ohio. Defendants make no claim that the grand jury itself was not a proper statutory body. The attorneys for the Anti-Trust Department were authorized by statute, 5 U.S.C. § 310, to conduct grand jury proceedings and were specifically authorized and directed by the Attorney General of the United States to conduct such investigations in regard to possible Anti-Trust violations in the glass fiber industry. The greatest producer of such glass fibers is the Owens-Corning Piberglas Corporation which has its principal place of business in Toledo, Ohio, a city within, the Northern District of Ohio. The government called the attention of the grand jury in the Northern District of Ohio to possible violations of the Anti-Trust laws in the glass fiber industry in their own district. Defendants do not object to the propriety of such action on the part of the government, nor could they. The investigation of possible federal offenses in their own district is clearly the prime function and duty of the grand jury.

Defendants object to the fact that in the eighth month of the investigation the corporate defendants were subpoenaed to present their corporate documents and records in regard to methods of fixing prices for services and material in the Northern District of California in the acoustical tile industry. Defendants argue that at this time it was known to the government that no overt acts in relation to a conspiracy to restrain trade in such industry in Northern California had taken place in the Northern District of Ohio, and that therefore the grand jury in Ohio had neither venue nor jurisdiction to inquire into such matters. The defendants’ arguments are not well taken. A properly constituted grand jury may inquire into acts occurring in another district if such acts are relevant to possible offenses within the grand jury’s jurisdiction. As stated in Masinia v. United States, 296 F.2d 871 (Cir. 8, 1961) citing Brown v. United States, 245 F.2d 549 (Cir. 8, 1957):

“ ‘ * * * The broad investigatory powers of a grand jury, as an arm or agency of the court by which it is appointed, extend (in its efforts to uncover criminal offenses prohibited by federal law) to an inquiry into facts that occurred in another district provided that that inquiry has to do with relevant matters. For instance, if a conspiracy is what the inquiry is directed at, the acts and conduct of the alleged conspirators that may have occurred in a district other than that where the grand jury is sitting may be gone into.’ 245 F.2d at 554.
“Thus if in the instant case the grand jury was investigating a possible federal offense within its jurisdiction, it could inquire as to any acts, related to such offense, that may have taken place outside of its district.” 296 F. 2d 875.

Moreover, the argument of defendants ignores the fact that under *566 the Sherman Act the conspiracy to restrain interstate trade is itself a violation of the Act, and there need be no overt act in the district alleged in order to give jurisdiction and venue. It is enough if in fact the agreement to restrain trade was entered upon within the district. United States v. Socony-Vacuum Oil Co., 310 U.S. 150, 60 S.Ct. 811, 84 L.Ed. 1129 (1940); United States v. New York Great Atlantic and Pacific Tea Co., 137 F.2d 459 (Cir. 5, 1943); United States v. United States Steel Corp., 233 F.Supp. 148 (S.D.N.Y.1963). So that in the case at bar the grand jury had jurisdiction to' investigate possible agreements made within its district by the largest producer of glass fibers with others to restrain trade in the Northern District of California in the related acoustical ceiling industry regardless of whether any overt act in furtherance of such a conspiracy occurred within the Northern District of Ohio. Thus the information requested was a proper subject of investigation by the Ohio grand jury.

Defendants contend that at the time the particular subpoenas were issued the particular grand jury which had originated the investigation into the glass fiber industry had been dismissed without returning an indictment, and that the government had merely used the device of the subpoena for its own purposes after the grand jury investigation had ceased. The weakness of this contention is that the grand jury making the investigation was called into being by a properly qualified United States District Court under the provisions of Rule 6 of the Federal Rules of Criminal Procedure, and was operating well within the eighteen month time limitation set by the Rule. It is not for this Court to examine into those proceedings, and any effort in that direction should have been pursued in the Northern District of Ohio.

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Cite This Page — Counsel Stack

Bluebook (online)
271 F. Supp. 561, 1967 U.S. Dist. LEXIS 11207, 1967 Trade Cas. (CCH) 72,217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-owens-corning-fiberglas-corporation-cand-1967.