The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-07-25


Makes One Bid for All Mills -conces-
sions Made Since Government Started
Prosecution.
Testimony is being taken in st. Paul
in the government suit against the Gen
eral Paper company, before Robert 5.
Taylor, special examiner. At the ses-
sion yesterday testimony of the great
est interest was brought out by the
prosecution. The defense put up de-
termined fight against the admission of
all damaging statements by witnesses,
and in handling it's own witnesses went
so far as to direct them to refuse to
answer certain leading and incriminat-
ing questions pat by the attorneys for
the government.
Several prominent newspaper publish
ers, representing Minneapolis, st. Paul
and Duluth daily papers, were on the
stand and submitted testimony tending
to prove that the General Paper com
pany had not only stited all competl-
ton, but had brought about consider
able increase in prices also.' Further-
more the General Paper company or the
trust had made contracts for supplying
newspaper print paper in its own name,
no provision being made for ratlflca-
ton of these contracts by the 1ndly1d-
ual mill manufacturing the goods and
making the. shipments on each contract;
The hearing was held in the federal
court, the attorneys for the government
being Frank B. Kellogg and Robert E..
Odds. James G. Flanders of Milwaukee,
William Brace of Chicago and James D.
Armstrong of st. Paul represented the
defendant company. All previous hear
ings in the suit were held in Milwaukee.
~ l.
st. Paul Dispatch until March, 1905,
and formerly manager of the manufact-
uring department. Of the Pioneer Press,
testified that prior to the organization
of the General Paper company, the Dis
patch was buying print paper for ST. 85
a hundred pounds. A 3 per cent dis
count was allowed for cash. making the
net price about $l.79h. The company
was allowed to deduct the weight of the
wrapplngs. and waste, only the paper
which actually went thru the presses
being paid for. In addition an allow
ance was granted for carriage.
Trust Underbid Competitors.
At this time the Dispatch was buy
ing it's paper of the Northwestern Japer
Mill company of Cloquet, MINI. In
April, 1901, the first contract was made
with the General Paper company, which
udOo q lOWeT Dlu Gudu the CtOQueJ com
pany. Wright, Barrett & Stillwell of
st. Paul, the representatives of the Clo-
Quet company, asked permission to meet
the price, stating that the low price Of
fered by the General Paper company
was but part of the campaign to force
the !Cloquet company into the trust by
cutting off it's trade. This was refused
as the Dispat ch had agreed tc accept
the lowest price. This contract with
1o&o
signed in the Dispatch office and deliv.
cred to Mr.. Hornick. Nothing was said
concerning the approval of any CT the
mills for which the General Paper COM
panX, was acting as selling agent:
When the first contract expired on
May 10, 1902, another contract was en-
tered into with the General Paper COM
pany. Mr.. Hornick stated that tho he
made every effort to secure other bid
ders, it was impossible to secure a bid
of any sort from any of the former
bidders for the business. The same con-
dition of affairs prevailed as long as the
witness was connected with the Dis
patch. The witness said that in 1904
the price OF the paper which actually
dred pounds, an advance Of 601b cents
hundred pounds over the price in 1899,
before the organization Of the General
Paper company. A protest against the
advance brought no relief, and the wit
ness stated that all attempts to secure
paper from other companies were un-
successful. Even the agents of the Gen,
eral Paper company admitted that it
could not be bought elsewhere.
Only One Bid Now.
Lucian Swift, manager of TIL {
Journal, the next witness, stated
ho orb of !,
from the time Of its organizational tor in
1899 until 1902, when the Cloquet com
pany went into the General Paper com
pany, after which it was impossible tt
secure paper or even bids from any
other company. In conversation with
c. I. McNair, manager of the North
western company, he was told that the
Northwestern company had received ar
assurance when entering the combina
ton of the General Paper company, thai
TIL e j ourna was to be taken care
of, and be given a fair price, Previou:
to signing the 1908 contract, the wit
ness stated that he went to the Chi
cago office Of the General Paper com
pany and tried to get other bids, O,
even the assurance that he was getting
paper as cheaply as any twin city pa
per. He was told that he had been get
ting a better price for several years
and that he could afford to pay littl
more to even up matters. A contrac
not subject in any way to the approva
Of the constituent companies of tn
General Paper company was signed AM
delivered at the Chicago office. TIL
witness further stated that MI. McNai
Of the Northwestern company ha,
stated that his company would hav
been willing to make better pric
than the witness had been able to Sc
cure on the 1904 contract, but that tn
General Paper company would not al
low it. .+..s
Increased Weights Also
Mr.. Swift stated that, the increas
IN the cost Of paper between 1899 an
ton, Mr. Flanders for the defense, o,
cross-examination, brought out the dam
aging statement that the increase wa
partially brought about by action o
the General Paper company in arb
trari1y increasing the weight Of pape
from twenty-nine pounds to the ream
thirty-two pounds. ,sa..-
Condo Hamlin, general manager o
the Pioneer Press, the next witness, col
roborated the previous testimony. b
fore the organization of the Genera
Paper company, the witness stated tina
the Pioneer Press had bought its pape
of the Hennepin Paper company a
$1.75 hundred pounds. This was a ne
price on paper actually passing thr
Che presses, all tare being returned t
the mill and credit allowed the Pionee
FOR the same. Since the organization G
the General Paper company the witnes
had been forced to buy paper of tn