The Savannah morning news., 1904-12-28
PAPER TRUST is
CALLED. TO TIME
GOVERNMENT BRINGS SUIT
no HAVE THE COMBINATION DE-
CLARED UNLAWFUL.

Alleged the General Paper Company
Has Been Controlling Paper Trade
of the Country, BOssing All the
Mills That Do Business Throus h.
TyrannicnI Action ON the Part of
the Trust AIIeged-ExOrbitant mt
Prices Demanded.
St. Paul, Mimi, Dec. 27.-Attorney
General Moody for the United States
through United States District Attor-
ney Haupt and Frank B. Kellogg and
James M. Beck, special assistant at
torneys general of the United States,
late this afternoon filed a petition in
the United States District Court in
which he makes the General Paper
Company, as principal defendant, and
its constituent companies party de-
PENDANTS in a suit to enjoin them and
restrain them from doing business
through the General Paper Company
as their sales agent in violation of pro-
visions of Sections 1 and 2 of the act
of Congress approved July 2, 1890, en-
titled IAN act to protect trade and
commerce against unlawful restraints
and monopolies."
The petition alleges that the defend
ants entered into an agreement to COM
bine and control the sale of the pro-
duct of the different companies through
the General Paper Company in that
the General Paper Company regulated
prices, sales and shipment and terri
tory for the sale of the same and aft
er deducting operating expenses of the
General Paper Company, divided the
surplus among the members of the cor
poration.
How 1t Was Organized.
The petition recites that the Cen
eral Paper Company was organized
under the laws of Wisconsin, May 26,
1900, with a capital stock of 100000 di-
vided into 1000 shares, which were dis
tributed among, and are now held by,
certain of the defendants named, and
that later the others were taken into
the combination, naming them in the
order in which they entered the COM
bine, and goes on to state that the
General Paper Company became the
exclusive selling agent for the defend
ants with absolute power to control
the output of the various mills. fix the
price of all paper sold and to whom
and upon what terms and conditions
the paper should be sold; and into
what states and places it shall be
shipped and what customers and
which mills each shall supply.
The petition alleges that in conse-
quence of the combination all COM
petition in the manufacture, sale and
distribution of paper had been restrict
ed and the price of all paper products
greatly increased, particularly that of
news print paper, which has been in
creased about so per cent
1t further states that no dealers or
newspapers, or other consumers in the
territory west of the Mississippi, with
the exception of certain newspaper
publishers in ST. Louis and Chicago,
can purchase any paper, except direct
ly through the General Paper Com
pany and then only upon terms dictat-
ed by the latter.
Want 1t Declared Unlawful.
The court is asked to declare the al
legged combination unlawful and that
the defendants be perpetually enjoined
from doing any act in pursuance of the
same, that the General Paper Company
be enjoined from action as sales agent
for the other defendants and that the
latter be enjoined from continuing
their arrangements with the General
Paper Company. The court is also
asked to direct the defendants to come
into court and answer all questions re-
lating to the allegations of the petit
tion as may be necessary.