The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-01-01
The Paper Trust Now Formed
First Taken Up.
TO PUT UP PAPER ~ CENT
Setto Between the World and
the Trust Men.
OLD DUTY ON LUMBER ASKED
Charge Denied That There is q Trust
to Control the Output or Price
of Lumber. Saying Trust
Not Possible.

Not Possible.
Washington, Dec. 31.-'Ehe disputed
existence Of paper trust was a bone of
contention before the Ways and Means
committee this afternoon and furnished
the most interesting episode of the tariff
hearings up to date There was a warm
controversy between Mr. John Norris,
the business manager of the New York
World, who attacked the alleged trust
and ex-Congressnan VIM. A. Russell, Of
Massachusetts, who is reputed to be at
the head Of the combination, and ex-
Senator Warner Miller, Of Herkimer, n
Y, who has large interests in paper
manufacturing.
Mr.. Norris gave a detailed description
of what he understood to be the purposes
Of the trust. 1t was formed by 20 Or
% of the managers of the largest mills
in the country, NE declared, controlling
93 per cent OF the outpggt of white paper
used for newspapers and had for one Of
its objects the advancement of the price
of the product from the current rate Of
2 cents q pound to 2la cents.
The co1nbina ton had first been talked
Of at q meeting of the manufacturers
held year and half ago and oil It's
details had been agreed upon by the pa
per manufa cturers, while the lawyers
were now engaged in drawing up the le-
gal papers which he had been informed.
would be perfected within 4S hours. The
agents who would represent the trust in
London, New York, Chicago and San
Francisco, had been selected and Mr..
Russell had been decided upon for the
president Of the corpora tiOn. The result
would be increased profits of four or FIVE
millions to the stock holders and a tax
on knowledge coming out of the pockets
of all citizens. He suggested that pub
fishers might start paper plants Of their
own if the trust succeeded and while
making no recommendations as to duties
said that Congress should take action a.
eainst the combination.
Messrs. Russell and Miller denied alb.
sOlutely the existence of trust. They
said that the manufacturers OF paper
had met n year and half ago thinking
that by means Of combination they
might reduce expenses a million and a
half a year by dispensing with many
agents and supplying all orders from
the nearest mills. This object had fail
cd because of their inability to agree
upon valuations upon their plants There
was now under consideration an arrange
ment by which all the mills would be rep
resented by the same agents, but Mr..
Russell and Mr.. Miller declared they
had no hope that it world be consum-
mated, in any event ther had been
no talk among themanufacturers Of rais-
ing prices.
Mr.. Miller being asked by Mr.. Norris
whether the formation of the trust was
not being delayed by the demand Of the
American Manufacturers Company to
be appraised at 100000, denied that
this was the case.
The lumber and pulp and paper sched-
ules were the order of the day. During
the morning session a big delegation Of
lumbermen appeared with @. w. Good
year, Of Buffalo, as spokesman, the
choice of the convention held in Gin
cinnati. Speaking for S1,000,000,000
capital and 100000 workingmen he ask
ed to have white pine, hemlOck, bass and
sycamore restored to the rate of two
dollars per Thousand feet, from the ex-
listing one dollar rate. The Wilson bill,
he declared had given a market for S13,-
100000 worth of Canadian lumber and
diverted $1,500,000 of revenue.
Representative Boutelle, Of Maine,
spoke at the request of the lumhermen Of
the East. The others who appeared on
behalf Of the lumber trade were Judge
Page Morris, CongressRsan-elect from
Duluth, Minnesota; j. 3. Enochs, OF
Jackson, Miss; I. b. Walker, Of Mime
apOlis and A II. Winchester, of West
Virginia. All asked to have the raw
material kept on Sfe free list.
Other speakers we're: @. n. Lang, OF
Boston, for the rattan manufacturers:
Lewis @. Wagner, of New York, re-
garding cigar labels; Wellington Smith,
of Lee, Mass, for tissue and copying pa
per manufacturers; VIM. G. Reed, Of
Boston, the maker Of Photographic paper:
and Henry Ives, of New York, for the
book interests. All asked for the restora-
ton OF Mckinley schedules or higher
rates.
The forenoon was given to the lumber
interests. @. w. Goodyear, Of Buffalo,
appeared as the representative Of com
mittee of 20 appointed by the convention
Of the lumbermen which met at Cincin-
natl early in December. He appeared,
Mr.. Goodyear said, as the representative
Of fully 1,000,000,000 of capital and 6O0,-
OUU lumbermen. This latter number did
not include those engaged in retail lumber
trade and in transportation of lumber.
He thought it perfectly fair to claim, con
sidering all allied interests, that 3,000,-
600 Of our poulation were dependent on
this industry for a livelihood. It was the
leading industry in over thirty States
Continuing, the speaker went exhaust
lively into the differences between the
conditions in Canada and the United
States TO show the advantagne Of yum.