The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1904-12-31
PAPER TRUST NOW
.rropNEY GENERAL MOODY
MAKES NEW MOVE.
,,,,oo 10 tnjoin The General Pa
COMPANY and Constituent
onnanies From Doing Bust
&c in Violation of Antitrust
Laws.

n., Mimi, Dec. 90 Attorney
o' III Moody, for the United States,
''sno oah District Attorney Haupt and
tnrOL [ p Kellogg and James M. Beck,
fTaIn assistant attorney general Of
sPs' United States, has filed a petition
tnt Sn limited States districrt sourt in
ID !nI he makes the General Paper
% %nnany principal defendant and its
|om p~ons constituent companies part
1u sndsnts in suit to enjoin them and
ds ,rain them from doing business
r Ta"ab rhe General Paper Company
'1l ."las agent, in violation of the pro-
% o. ?a Of sections 1 and 2 of the act of
'I' a,ross approved July 2, entitled an
V n,1 act to protect trade and commerce
~ :ns+ unlawful restraints and monop-
olies.
Combine Is Alleged.
The petition alleges that the defen-
1.nts entered into an agreement to
u anbiua and control the sale Of the
yadnct of the different companies
tEbronpb the General Paper Company
W that the General Paper Company
-nonIated the prices, sales and ship
ments and territory for the sale of the
came and deducting operating ex-
nonses of the General Paper Company
5irided the surplus among the corpora
tons
The petition recites that the General
paper Company was organized under
tba laws of Wisconsin May 26, 1900,
with a capital stock of 500, 900, di-
yided into 900 shares, which were
distributed among and are now held
by certain of the defendants named
and that later others were taken Into
the combine.
One Selling Agent.
All are named in the order in which
they entered the trust, and the petition
goes on to state that the General Paper
Company became the exclusive selling
agency for the defendants, with abso-
lutte power to control the output of the
various mills, fix the price of all pa
per 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
publishers and other customers each
mill shall supply.
The petition alleges that in conse-
quence of the combination all compe-
tition in the manufacture, sale and
distribution of paper has been restrict
ed and the price Of all paper products
greatly increased, particularly that of
news print paper, which has been in
creased 80 per cent.
Buyers Have No Option.
1t is further stated in the petition
that no dealers or newspapers or other
consumers in the Middle West, with
the exception of certain newspapers
published IN St. Louis and Chicago,
can purchase any paper directly thro'
the General Paper Company and then
only on terms dictated by the latter.
The court has been asked to declare
the combination unlawful and that
the defendants be perpetually enjoined
from doing any act in pursuance of
the same; that the General Paper Com
pany De enjoined from acting as sales
agent Tor the other defendants, and
vna' the latter be enjoined from con-
Inuins their arrangement with the
"eneral Paper Company. The court
IS asked to direct the defendants to
appear IN court and answer all ques-
Sions relating to the allegations of the
P''I'lon that may be necessary.