The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-28
A FEDERAL BOMB
FOR PAPERMAKERS
Government Declares That an Un-
lawful Combination Has De-
stroyed Competition.
DISSOLUTION Is ASKED
BEFORE JUDGE LoCHREN
a
Minnesota, Wisconsin and Michi-
gan Concerns Defendants in
Suit at st. Paul.

That the General Paper company,
which includes practically all Of the
northwestern mills, is an unlawful COM
bination and should be dissolved EN- |
bodies the contention of the federal gov |
eminent in q suit instituted to accom- |
plish that end, at St. Paul yesterday.
The proceedings were brought in the |
plainant by William H. Moody, attorney
general, and Frank B. Kellogg, a st.
Paul attorney, and G. 9. Houpt, United
States district attorney for the district
of Minnesota, presented the petition to
Judge William Lochren in federal court.
The action is brought under the Sher-
man antitrust law.
In the petition it is alleged that the
General Paper company of Chicago and
twenty-four paper manufacturing con-
Germs of Minnesota, Wisconsin and
Michigan, with the Manufacturers
Paper company of New York, constitute
a combination joined in an illegal con-
spiracy in restraint of trade. It is re-
cited that the combination was effected
in 1900, and that the General Paper
company has by its workings become an
exclusive selling agent Of the paper
manufacturers. It is further declared
that the result of the combination has
been the restriction of mill output,
regulation Of sales as to price and guam
tity, and that thruout western states
competition has been destroyed.
AS g. result of these alleged actions
the complainant AYERS that the selling
creased until the price of news print
paper is now about so per cent higher
than it was when the combination was
established.
The suit will be brought to trial in
st. Paul and may be taken to the circuit
court of appeals and not tried in the
circuit court. The government seeks to
dissolve the alleged combination, and
an order for the service of subpoenas
outside Of the state Of Minnesota was
made by Judge Lochren..
The government, in joining the Manu-
facturers' Paper company Of New York
in the action, alleges that this company,
organized in 1902 under Illinois law, has
entered into an agreement with the
General Paper company by which they
agreed not to interfere with the bust
to bid on business in Wisconsin or
states west of the Mississippi.
The petitioners in their complaint set
up the following allegations: .' Ii.
That In or about the%month Of May in
the year 1901 the DEFENDANTS Kimberley
& Clark CO., Atlas Paper company. Com
bined Locks Paper company, the CIV.
' Manufacturing company, the Nekoosa Pa
per company, Centralia Pulp and Water
Power company, Grand Rapids Pulp and
Paper company the Wisconsin River Pa
per and Pulp company, Wausau Paper
Mills company, Tomahawk Paper and
Pulp company, Dells Paper and Pulp COM
pany, the Falls Manufacturing company
and the Hennepin Paper company, In
violation of the provisions Of sections 1
and 2, respectively, Of an act of congress
approved July 2, 1890. entitled, IAN act
to protect trade and commerce against
unlawful restraints and monopolies' (26
Stats. 209) entered into an agreement,
} combination and conspiracy with each
other to restrain the trade and commerce
among the several states, and to control,
regulate and monopolize said trade and
: commerce, and thereby, in conjunction and
alliance with defendants who subsequent
), ly joined in the aforesaid agreement
combination and conspiracy as set forth
in the paragraph next succeeding, do now
control, regulate and mOnopolize and re-
strain the trade and commerce not only II
= the manufacture Of news print, manila
l tribution, sale and shipment thereof
< among and thruout the states Of the
q union aforesaid and all states west O.
9 the Mississippi river by means and II
: the manner following, to-wit: On o
t about the 26th day Of May, 1900, the de-
L
: organized, under the laws Of the state o
Wisconsin, corporation styled the Gen
| eral Paper company, with q capital stool
Of s1OO OOO divided into 1000 shares, whicl
were distributed among, and are nov
owned and held by, the said last nance
defendants and the defendants that sub
r seauently joined in the aforesaid com
bination and conspiracy, as hereinafte
set forth in proportions based. as you
petitioner Is informed, upon the averag
daily output of the mills OF each defend
/ ant. which corporation, by Its articles o
incorporation, Is authorized to become
as it's principal business, the sales agen
for any and all kinds of paper and pape
products, and any and all merchandlS
manufactured from paper or paper prod
ucts by mills in the state Of Wisconsin Q
elsewhere: and thereupon, in pursuanc
"a of A. common plan and understanding
re each and all of the aforesaid defendant
1T entered into a contract and agreemer
Y with the General Paper company maxim
e. it the exclusive selling agent Tor the'
"a papers and paper products, and conferrin
n upon it absolute power to control and re
a strict the output of their mills, AK tn
a, price of all papers sold turnout tn
,e states aforesaid, and determine to whol
ne and the terms and conditions upon Wnlc
le paper shall be sold, and into what state
and places 1t shall be shipped, and wht
w publishers and other customers each mi
IT. shall supply. - e.:
=. In the specific complaint the firm
81 named as defendants embrace the Gel
or eral Paper company, the ltasca Papt
y, company. Hennegin Paper compan
ny Wifi River and Fiber Paper compan
ea Atlas Paper company Kimberly
81 Clark Paper company, Riverside Fib'
ne and Paper company, Wausau Pap'
re Mills company, Centralia Pulp al
So, Water Power company, Combined Loci
a Paper company, Dells Paper and Pu
80 company, Grand Rapids Pulp. and Pap
company, Menasha Paper company, II
ne G. n. Howard company, The Nekooo
lr- Paper company, Falls Manufacturil
m, m company, Flambeau Paper company, Il
ny John Edwards Manufacturing compan
he The Wisconsin River Paper compan
es- Tomahawk Pulp and Paper compan
Northwest Paper company, Consoidat
ne Water Power and Paper company, Ma
xe- ufacturers Paper company, the Petosk
m Fiber Paper company, Rhinelander +
per company, defendants.
The complaint sets forth that no de;
!. ers or newspapers or other consumers
ton the territory named in the suit wi
;lali the exception of certain newspape
ide published in St. Louis and Chicago, C
zen purchase any paper except directly
ui- Indirectly thru the General Paper CO
Il Continued on Second Pagas