Thompson v. United States

• Decision Date: 28 January 1926
• Docket Number: No. 3615,3616.,3615
• Parties: THOMPSON et al. v. UNITED STATES.
• Court: U.S. Court of Appeals — Seventh Circuit

10 F.2d 781 (1926)

THOMPSON et al. v. UNITED STATES.

Nos. 3615, 3616.

Circuit Court of Appeals, Seventh Circuit.

January 2, 1926.

Rehearing Denied January 28, 1926.

Elwood G. Godman and James Hamilton Lewis, both of Chicago, Ill., for plaintiffs in error.

Ralph F. Potter, of Chicago, Ill., for defendant in error.

Before EVANS, PAGE, and ANDERSON, Circuit Judges.

EVAN A. EVANS, Circuit Judge.

Defendants were convicted of violating section 37 of the Criminal Code (Comp. St. § 10201), the alleged conspiracy being to defraud the United States in the location and building of certain government hospitals.

Defendant Forbes was the director of the Veterans' Bureau, the chief of a board authorized to locate hospital sites and to let contracts for the construction of hospital buildings. Congress appropriated $17,000,000 for this purpose. The appropriation for this department was later increased, and the bureau, with Forbes at its head, paid out $425,000,000 in one year.

Defendant Thompson was a contractor, whose principal place of business was in St. Louis, though he transacted business in Chicago and other cities, often under different firm names. James W. Black was a contractor interested in many contracting firms, in Chicago and other places, and associated with defendant Thompson in certain contracts. The Chicago firm name was Thompson-Black Company.

Elias H. Mortimer was the chief witness for the government. He was a lobbyist, a go-between, and is described as "a fixer" for contractors who were seeking government contracts. He represented Thompson-Black, and became intimate with Forbes. His story was a full and complete recital of the details of the illegal project. He told how it started, and how it grew into concrete, definite form, fattening on corruption, and its companion, free and lavish entertainment. The details need not be recited. Mortimer testified to the actual transfer of money for corrupt purposes, the letting of at least one contract pursuant thereto, and of the plans to erect other buildings in accordance with these illegal and corrupt understandings.

Briefly outlined, the scheme contemplated the selection of sites and the building of various hospitals; the submission of bids that would include in each one $150,000 for certain of the officials and a further division of the profits; the insertion in the bid of a provision calling for early completion of the building, so that Forbes could let the contract to Black and Thompson, though they were not the lowest bidder. Mortimer's story reflects no credit upon himself. It was shockingly repulsive. But, if believed, it was sufficient, especially in view of its documentary corroboration, to support the verdict. In fact, neither defendant took the witness stand, and so Mortimer's story, in many respects, was undisputed.

The assignments of error, while numerous, are for the most part hardly worthy of serious consideration. It was only through a studied and labored effort of experienced counsel that any could be presented. This was natural, for throughout the trial the defendants met with fair or favorable rulings, and rarely could they except.

Defendants complain because the court took a recess during the trial of the cause. To borrow their own language:

"Our complaint is that * * * the trial of this case was by the court adjourned for a period of six consecutive days, from January 9th to January 15th, inclusive, during which time both the court and the jury were attending to other matters than this trial. Our suggestion is that a trial by jury, guaranteed by the Constitution, is one where during reasonable hours continuous and uninterrupted attention to the vital issues of the trial in a criminal case should be given by the court and the jury. Our claim is that the return of the jury to their homes and customary avocations and businesses in the midst of the presentation of the defense by these defendants, for a period of almost a week's time, thus having their minds distracted by their own personal affairs, and their memory and recollection of testimony and incidents necessarily dimmed, and probably confused, together with the opportunity for contact with newspaper articles concerning the case, takes away from the accused the benefit of the undivided and undistracted attention to his trial which he was entitled to receive from each and every juror, and which we believe was the kind of jury trial which the Constitution guarantees."

The cause for this adjournment does not appear. Apparently both parties acquiesced in it, and, we assume, for their own convenience. If an adjournment be taken during a trial without sufficient ground, either or both parties may object. But one cannot speculate on the verdict, and later avoid the result, if unfavorable. Moreover, we are unable to appreciate the ground upon which defendants base their claim of prejudice.

Error is assigned over the reception of evidence which disclosed some questionable negotiations or transactions on the part of Forbes, Black, and Thompson. It is contended that they were in no way connected with the offense charged, and therefore should not have been received in evidence. From Mortimer's testimony we gather that Thompson had a large claim ($700,000) filed against the United States government, which was pending at this time. It grew out of the requisition of a boat which the government needed during the war. The government paid a price which it considered ample. Thompson asserted the sum thus allowed him was inadequate. He proposed a fee of $100,000 to be divided equally between Mortimer, Forbes, and another, contingent upon the allowance of his claim. Forbes was to get official influence back of the claim.

This testimony was received without objection. The refusal to strike it out upon motion made at the close of the trial was properly denied.

Likewise it appears from the testimony of this same witness that Thompson-Black Company contemplated the securing of building contracts from the republic of Colombia, South America, and planned to use Forbes. Through him they were to meet this government's president and ambassador at Washington. With proper official introduction, and with indorsement of a very high authority at Washington, which Forbes was to secure, it was expected that large contracts might follow, and for Forbes' services a large annual salary or retainer was proposed. These conversations and negotiations respecting these two transactions were between Mortimer, Forbes, and Thompson, all participants in and parties to the alleged conspiracy. They were but a part of conversations that Mortimer related, which included the hospital contracts, the goal towards which Thompson and Mortimer were at all times striving.

Had there been proper objections to the reception of this evidence, they should have been overruled. Although appearing on its face as relating to separate matters, this transaction was involved in the conspiracy charged in the indictment. It evidenced the technique — the camouflage — the smoke screen of the briber as he approached his goal. By advancing proposals, not illegal in themselves and less offensive and repulsive than the real business upon which they were bent, the conspirators gave Forbes a colorful picture of themselves, and held out vague, but alluring, suggestions of large remuneration, and by these means ascertained Forbes' reaction to their unethical and immoral proposals. This is not a mere matter of deduction from all the evidence. It was testified to as being a part of Thompson's, Black's, and Mortimer's shameless scheme. The last-named individual said:

"Mr. Black, Mr. Thompson, and I talked the hospital situation over, and finally Mr. Black and Mr. Thompson thought it would be very advantageous for us in the hospital situation to make a proposition to Col. Forbes to represent Black and his associates down in the Colombian proposition, making him consulting engineer, in that and the others, so that we would have him in with us, and assure getting the hospital contracts and making it advantageous to him."

In other words, defendants reasoned that, if Forbes would sell political influence, if he would traffic in the trust and confidence and esteem of his superior, he would accept a bribe. Doubtless the conspirators overestimated Forbes' sensitiveness, for the evidence of subsequent transactions showed that he promptly accepted the bribe when it was offered. The evidence was receivable, first because it was a part of the conversations between the conspirators, the defendants. Moreover, it was in furtherance of the conspiracy. Fahy v. U. S., 10 F.(2d) 409. No error was committed in its reception.

Defendants assign error because of alleged invasion of the rights guaranteed them under the Fourth and Fifth Amendments to the Constitution. The facts are not in dispute. The government served two subpœnas — one addressed to J. W. Thompson Company, a corporation, and John Doe, its secretary, and the other addressed to Thompson-Black Company, a corporation, and to James B. Weisl, its manager. In each case the secretary thus served notified Mr. Thompson, who consulted his attorney. About a week later, the two secretaries appeared with books and papers, which they turned over to the grand jury.

The government was within its legal rights in securing through a subpœna duces tecum the papers and books of a corporation. Hale v. Henkel, 201 U. S. 43, 26 S. Ct. 370, 50 L. Ed. 652. But it later appeared that neither J. W. Thompson Company nor Thompson-Black Company was a corporation; the latter being a copartnership and the former the trade-name adopted by J. W. Thompson.

For several days after these papers were turned over to the grand jury, defendant Thompson persistently endeavored to go before the grand jury and testify. His letters written to the prosecuting attorney about this time suggest that he was acting under advice of counsel, and that he was...