Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-01-01
PAPER TRUST
The Most Interesting Episode Of the Tariff
Hearings Up to Date.
Warm Controversy Between q News
paper Manager and Messrs.
Russell and Miller.

and means committee yesterday afternoon,
and furnished the most interesting episode
Of the tariff hearings up to date. There
was a warm controversy between Mr.. John
Morris, the business manager of the New
York World. who attacked the alleged
trust, and ex-Representative William A.
Russell of Massachusetts, who Is reputed
to be at the head of the combination, and
ex-senator Warner Miller of New York,
who has large interests in paper manu-
featuring.
! Mr.. Norris gave a detailed description of
what he understood to be the purposes of
the trust. 1t was formed by twenty or
twenty-five of the managers of the largest
mills in the country, he declared, controlling
90 per cent of the output Of white paper
used for newspapers, and had for one of
Its objects the advancement Of the price
Of tie product from the current rate of 2
cents pound to 2h cents. The combina-
ton had first been talked Of at a meeting
OF the manufacturers held a year and q
half ago, and all Its details had been agreed
upon by the paper men, while the lawyers
were now engaged in drawing up the legal
papers, which, he had been informed, would
be perfe tied within forty-eight hours. The
agents who would represent the trust in
London. New York, Chicago and San Fran
cisco had been selected, and Mr.. Russell
had been decided upon for the presidency
of the corporation.
The result would be increased profits of
four or five millions to the stockholders
and tax on knowledge coming out Of the
pockets of all citizens. He suggested that
publishers might start paper plants of their
own II the trust succeeded and, while max
ing no recommendations as to duties, said
that Congress should take action against
the combination.
The manufacturers, Mr.. Norris said now
had protection of 10 per cent ad valorcm
on pulp and Is per cent on finished paper,
sending n
foreign markets, while, as the duty on
paper was prohibitory, none was imported.
The purpose Of the trust was to keep the
price of paper at about 2h cents, while the
present ruling price was about cents, and,
by cutting off various concessions to news
paper publishers, increase their profits in
that way also. The paper men gave vari-
Gus pretexts for their trust-that they could
not compete with new mills, cuc.-but the
trust was merely an attempt to combat the
law of the survival Of the fittsst. The
manufacturers had acquired monopoly of
the best water powers and tracts of cedar
for pulp. The possible denudation IT the
forests might be a matter for congressional
action.
Mr.. Russelfs Denial.
The next witness was ex-Representative
William A. Russell of Massachusetts, who
said: IT deny that any combination has
been practically formed, or that any con-
sideration of such combination by the
manufacturers has contemplated a rise of
prices.
1.-The newspaper publishers knew that no
rise of prices was contemplate ted, because
they had refused to avail themselves of
opportunities to make contracts for terms
of years at the present prices. 1t may seem
incredulous," he said, but the fifteen or
twenty gentlemen who came together about
year and half ago had for their objects
economy In conducting their plants. They
figured that they might save million and
half a year by reducing their working
forces"
Mr. Russell complained that every time
tariff changes were contemplated the paper
manufacturers were obliged TO defend
themselves against unjust attacks by the
press, and to fight hard to keep paper off
the free list. although the present tariff did
not cover the difference in cost of labor
between the United States and other coun-
tries. He denied that the proposed combi-
nation intended to raise prices to 212 cents
a pound.
did it reduce the price of paper to the
consumers as a result of the economies?"
inquired Mr.. Steele of Indiana.
No Combination Formed.
Mr.. Russell said that no combination had
been formed. A year and half ago the
manufacturers had contemplated CONSOLE
dating their plants. but the consolidation
had not been effected Tney had proposed
to bring the product Of the various mills
to one standard. Recently they had en-
deavored to unite by forming central SELL
Ing agencies, but the union had not been
brought about nor was IT likely. 1t had
been found impossible to agree on valua-
tions Of properties.
In reply to question from Mr.. TaWney
whether the manufacturers had contem-
plated the destruction of competition, Mr..
Russell said: IF prices were cheaper other
manufacturers could nos exist. but II we
put up prices We would hold the umbrella
over ALL"
MI Payne of New York asked: do not
trusts, 10 put up prices, invariably defeat
their own object and fail within a year
by giving opportunity for competition?
There followed passage between Mr..
Payne Of New YORK and Mr.. Tawney of
Minnesota, the latter contending that ad-
vance of prices was not the only thing to
be considered; the sitting of opportunities
to other citizens TO engage in the industry
was important.
Mr.. Russell said that he agreed with Mr.
Tawney on this point. In answer. to more
second attempt to form a combination hsd
not been abandoned, although he thought
1t would be frultless
Chairman Dingley asked: Has there
ever been talk OF q combination of pulp
menufacturersr'
mo. SIR" replied the witness.
Ex-senator MllIer's Statements.
Ex-senator Warner Miller of New York
repeated practically the statements made
by Mr.. Russell. The purpose If the pend
ing attempt to form combination, he
added, was not only to introduce econ
omies, but to enter the markets Of Au-
stralia, South Africa and even England,
which would require strong selling agencies
backed by a dozen strong factories.
The same fight, Mr.. Miller said, had been
carried on before the committee for years;
it was merely one between the paper man
ufacturers and the publishers. Many of
the mills were doing business at a loss,
few were making money. He would like
to see the threat that newspapers would
establish their own factories carried out
It had been tried before and failed show
ing that men had better stick to the busi-
Eess they understa and. Nor did he believe
that Cor gress would permit a paper to
establish mill on one side of the Saul
Ste. Marie and bring pulp across from
Canada free Of duty.
The manufacturers asked only for Is per
cent on paper and about 81 ton on wood
pulp. lower rate than free-traders would
favor on most commodities. Most of the
money invested in paper mills was making
less than per cent interest In reply to
question from Mr.. Norris, Mr. Miller
denied that he held the office of secretary
OF the Manufacturers Paper Company
A North Dakota Bank Closed.