New-York tribune., 1908-05-17
PRINT PAPER HEARING.
international Company Submits
Statement Denung ImprODer Acts.

| Washington. May 16.-"Ths Investigation will
| have 10 be brought to close within the next few
days If we to make report this session of
Congress- said Representative Mann, chairman of
the special House committee inquring into the wood
pulp and print paper question to-day. Il have let
| ters from number OF people who wish testify
| but we will not have time to hear them The TAX
| ing Of testimony probably will close Monday or
| Tuesday"
| David s. Cowles. the paper manufacturer,
sumed the stand to-day He gave additional figures
to the cost of production of paper and the selling
price at the mills In reply a series of questions
by Chairman Mann, Mr.. Cowies said he had
knowledge of any coordination, agreement
derstandng among paper manufacturers to fix
price for paper, did he know any understand
ing agreement among managers or sales agents
not 10 compete in order TO obtain the business of
a paper which had contract with other
manufacturer
Mr.. Cowles alleged that there was a concerted
effort TO break the paper market. He denied that
his mills had shut down In order to restrict the
output. In reply question by Mr. Sims, the
witness said eventually he would out of the paper
business unless the price of paper up.
g H p Gould of the Gould Paper Company
Lyons Falls, y. Y. testified that the cost Of the
paper T. o. H. at their mill 500 81 per ton. In
1900 he said. it about go. Mr.. Gould said
he knew Of no agreement understanding among
the pa per manufacturers He said that if the duty
we're removed Canadian mills would add the $6
ton to their selling price and take the whole
amount
Chester W. Lyman, of New York. assistant to
the president of the International Paper Company,
rcaQ = statement declaring that careful ex-
animation of all the evidence submitted on be
half of the publishers would fail show any
proof of any unlawful or improper act upon the
part OF the International Paper Company.
The statement says it is not disputed that the
rrIce of paper has risen in the last year. but,
il continues. there has been utter failure to
prove or TO present TO the committee any real
evidence sustain any of the main charges made !
by the publishers.
The charges and the alleged testimony in sup |
mort OF then it says, nothing but reitera-
lion of substantially the assertions made |
bv Mr. Norris on several previous occasions, and |
which 1t says. have been refuted. Continuing the
statement says:
The International Paper Company has not nov now
and has not had agreement or undeI IstthulIs
fixing or maintaining prices OF otber
ppaner manufacturer or sales agency whatever II
is party to any comonafi9 Is or nGa anS
oofheT agreement Affecting prices or output It has
alone in the sale of ] papsr and IN the oohdD'' oi
The only suggestion to the contrary in the state
ments submitted, and it has been only the mere merest
fs ebishers These statements denied No
tr eRsr eS nor
does such exist to-day. ~ , 80
mfttee Of decided dsiheFateIy and
careful # rssDedf 1 he se of @
its Contracts with the publishers and in pursuance
oondifions 81 the price of paper raised by the |
comnanV without the slightest reference to what |
other manufacturers might or might not do
According to the statement a floating debt of
"a 100000 which had been created was liqudated
in 1905 from the proceeds of the sale of sO0ocO
+ ner cent bonds but by the summer of 1907 a new
floating debt OF about 100000 had again been
created No dividends bng paid upon the
common stock. although the actual value OF the
plant and property of the company exceeded the
value of its total capitalization and bonded in
debtedness" The statement continues:
within the control of the management
yere as low possible consistent with the grade |
II PAPER produced the for diminishing earn
ngs clearly was that the paper was pelnS sofa at |
90 low a price and upon conditions which were |
.rossly unfair to the company The executive com
nittce and the officers determined upon complete
hange OF policy. They decided to make more |
ontracts for more than one year which bound the
eler but did bind tue purchaser. They also de- Z
ided to fix fair price for paper with reference to
he cost of manufacture and to insist upon receiv-
np that price without any reduction the allow &
pce Of nv rebate whatsoever unless justified. They
and 70 treat ali purchasers similarly situated 8
l ~ It, resrects equally desira bIe absolutely
like
Th. increase IT. the price OF paper justified in |
he statement by the assertion that the previous ! =
,ric. had besn too low and by the alleged increase
n the cost OF manufacture. and the allegation is
nsd. that under present conditions the price of
.aper now yields only fair return upon the capi- ,
al invested. +
Regarding possible effect of tile removal of
=. t,r,n the statement says is questionable n ,
uch remoysI would have vary much immediate ef-
ect but f what she publishers claim Is true. it
,Anada-"~