The Saint Paul globe., 1904-12-28

under the laws Of Wisconsin for the
purpose of creating monopoly of the
print paper trade of the west. 1t was
organized with a capital stock of but
100000, divided into 1000 shares, and
these became the property of the sub
sidiary companies constituting the COR
poration, being distributed pro rata ac-
cording to the average daily output of
the mills owned by the. companies
forming the pool.
Sole Agent for Companies
BY its articles of incorporation, the
General Paper company was authorized
to become the sales agent of other pa
per manufacturing companies, and the
paper manufacturers of Wisconsin,
Minnesota and Michigan conferred
upon 1t the right to become its ex-
elusive sales agent.
Further, it is alleged in the petition,
the manufacturers gave the General
Paper company the right to absolutely
control and restrict the output of the
mills and to determine upon what prices
and terms the output should be sold.
Under the agreement each company
was to pay certain percentage upon
all sales made by its sole agent and
after deducting a margin of expenses,
the balance was turned into dividends
for the stockholders of the General
Paper company, who are the manufac-
turing companies
The petition alleges that the Manu-
facturers Paper company of New York
was organized In Illinois in 1897, and
in 1902 went into combination with the
General Paper company and agreed not
to compete with the General Paper
company in the territory of Wisconsin
and the states west of the Mississippi
river. 1t is alleged to be party to a
conspiracy.
The government alleges that all
competition has, through the creation
and operation of the General Paper
company, been destroyed and prices
have been greatly increased, and that
the price of news print paper has been
increased about so per cent. It is
alleged that no dealers, persons or
newspapers, except a few newspapers
paper except through the General
Paper company.
Company is Combination
1t is alleged that the General Paper
Company Is combination and is In
q SOuo " QU uIlldWIui acts, LQ6I
the acts done by it are in derogation of
the common rights of all the people of
the United States, and that it is in
violation of the so-called Sherman act
OF 1890 to prevent combinations in
restraint of trade.
The court is asked to perpetualIy en-
join the General Paper company from
continuing to act as sole agent for
the manufacturing companies, and the
manufacturing companies from making
1t their exclusive agent, and from au-
sthorizing the General Paper company
to restrict their output and fix terms Of
sale of their product, or to determine
the persons, corporations or newspa.
pers to which it shall be sold, or in
what states
The filing of the suit was a complete
surprise in st. Paul legal circles.
Frank B. Kellogg, the ST. Paul attor-
ney, who appears in the case as special
attorney for the United States, recent
ly returned from Washington, where it
appears he was in conference with At
torney General Moody concerning the
institution of proceedings against the
paper trust. James M. Beck, who is
associated with Mr.. Kellogg in the
conduct of the governments case, was
assistant attorney general for the
United States under the administra-
ton of the office by Philander Knox.
now United States senator from Penn
sylvania. c. c. Haupt appears as
counsel in the case by virtue of his Of
fee as United States district attorney
for Minnesota.
The defendants are expected to an
swer in due time, and with the great
resources at their command it is con-
ceded that there will be legal battle
worthy the name in the federal courts
for Minnesota. The petition filed yes
terday follows:
The Petition
United States of America complainant
vs. General Paper company, the Itasca
Paper company. Hennepin Paper COM
pany, Wolf River and Fiber Paper COM
pany. Atlas Paper company. Kimberly
q Clark Paper company, Riverside
F1ber and Paper company Wausau Pa
per Mills company, Centralia Pulp and
Water Power company, Combined Locks
Paper company, Dells Paper and Pulp
company, Grand Rapids Pulp and Paper
Company, Menasha Paper company, The
G. H. Howard company. The Nekoose
Paper company, the Falls Manufacturing
company. FIambeau- Paper company. the
John Edwards Manufacturing company,
The wisconsin River Paper company,
Tomahawk Pulp and Paper company
Northwest Paper company, Consolidated
Water Power and PAPER Company
Manufacturers Paper company, the Pc
toSkey -flpre Papef company, Rhine
lander Paper company, defendants.
Petition-William HI. Moody, attorney
general of the United States; Frank B.
Kellogg, James NJ. Beck special assist
ant attorneys general of the United
States; Charles C. Haupt attorney of
. the United States for the District of
Minnesota.
PETITION
To the Judges of the Circuit Court of the
United States for the District of Minne-
sofa, Third Division:
And now comes the United States of
America, by Charles c.. Haupt United
States attorney for the District of Mime
sofa, acting under the direction of the at
torney general of the United States. and
brings this its proceeding by wav Of ne
tition against the General Paper COM
pany, Hennepin Paper company Wolf
River Paper and Fiber company Atlas Pa
per company, Kimberly & Clark company.
Riverside Fiber and Paper company, Wau-
sau Paper Mills company, Centralia Pulp
and Water Power company, Combined
Locks Paper company, Dells Paper and
Pulp company, Grand Rapids Pulp and
Paper company, Menasha Paper company.
The c. w. Howard company, the Nekoosa
Paper company: the Falls Manufacturing
company Flambeau Paper company the
John Edwards Manufacturing company
the Wisconsin River Paper and Pulp COM
pany, Tomahawk Pulp and Paper COM
pany, Northwest Paper company, ConsoI-
idated Water Power and Paper company,
Manufacturers Paper company, the Pc
toskey Fiber Paper company, and the
Rhinelander Paper company, corporations
duly organized as hereinbefore more mar
ticularly alleged and for its bill of COM
plant on information and belief, COM
plains and alleges: