The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-12-28
Injunction Asked Against
the Paper Combine.
UNCLE SANS DEMAND
The Suit is Brought by the Government
Under the Act to Protect Trade
and Commerce Against Un-
lawful Restraints and
Monopolies.
(By the Associated Press.)


st. Paul. Mimi, Dec. 27-Attorney
General Mody for the United States
through United States District Attor-
ney Haupt and Frank B. Kellogg and
Jas. M. Beck special assistant attor-
ney 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 it's consti-
tuent companies party defendants in
a suit TO enJoin them and restrain
them from doing business through
the General Paper Company as the
sales agent in violating of provisions
OF sections l and of the act of Con-
gress approved July 2 1880 entitled
all Act to protect trade and commerce
against unlawful restraints and mo-
nopolies."
The petition alleges that the de-
PENDANTS entered into an agreement
to combine and control the sale of
the product of the different companies
through the General Paper Company
in that the General Paper Company
regulates prices, sales and shipment
and territory for the sale of the same
ard after deducting operating expen-
seS Of the General Paper Company
divided the surplus among the mem
herS of the corporation
The petition reciteS that the General
Paper Company was organized under
the. laws of Wisconsin May &c, 1900
with a capital stock of 100000 di-
Nided into one thousand shares which
were distributed among and are now
held by certain of the defendants
named and that later the others swere
taken into the combination, naming
them in the order in which they en-
tered the combine The petition goes
on TO state that the General Paper
Company became the exclusive selling
agent for the defendants with ahSo-
lutte 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 compe-
tiuon in the manufacture, sale and
distribution of paper had been re-
stricted and the pr.ce of all paper
products greatly increased particular
iy that of news or print paper which
has been increased about fifty 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 news
paper publishers in ST Louis and
Chicago can purchase any paper ex-
cept directly through the General
Paper Company and then oily upon
terms dictated by the latter.
The court is asekd to declare the
alleged 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 acting as sales agent
for the other defendants and that the
latter be enjoined from continuing
their arrangement with the General
Paper Company. The court is also
asked TO direct the defendants to come
into court and answer all questions
relating to the allegations of the pc
titionS.