Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-29
PAPER MILL CONTROL
Continued on Second Page)
trict were anxious to place before the
committee details OF the paper business.
Alleged Collision.

trict were anxious to place before the
committee details Of the paper business.
Alleged Collision.
Mr.. Norris then resumed his testimony
by putting In evidence statements of pub
fishers from every part Of the country to
the effect that there was a constant inter-
change of information among paper
makers respecting prices and that they
knew of quotations made by other agen-
cies or mills. Almost without exception
the publishers stated that the paper
makers were in collision and that the
quotations seemed to be very uniform.
Replying to a question by Mr.. Mann.
the witness explained the method of MAX
ing contracts for paper. In a general
way he said the larger contracts are
made by the papermakers directly with
the newspapers and the smaller custom
ers are served through jobbing houses
on brokerage or commission basis.
What is the object" asked Mr.. A.ann,
''of four or five or a half dozen selling
agents going to a town to see a news
paper publisher when 1t is settled in adj
vance that only one of them can make
sale?'
Mr.. Norris replied that the visits. which
formerly had been frequent, had stopped
and added that no visits from paper sell
ing agencies had been made for a period
before the several inquiries Of the pub
fishers had been made.
In reply to question by Mr.. Stafford
Mr. Norris declared 1t to be the conten-
ton of the publishers that customers
have been apportioned to particular mills.
age houses Mr.. Norris said, we do not
pretend to know" the practice. he de-
clared. had been almost uniform. The
various reasons given by the papermak-
ers for the adoption OF an agreed scale
were stated by Mr.. Norris through quo
NJ oh in
which they ascribed the increased cost of
labor and material as being principally
responsible for the higher cost Of paper
On the other hand. some of the pub. .shers
told them their prices were governed by
uniform raises by the mills. and that adj
vices from one company OF a change
would follow in twenty-four hours by
similar advices from other mills.
The vast forest reserves of the Pacific
coast, available for pulp, were referred
to by Mr. Norris. but he said that be-
cause of an insufficient water power. ad-
vantage could not be taken of the oppor-
tunity to use that timber.
Development of Water Power.
Mr.. Mann called attention to the propo-
sition in Congress for water rights on the
Snake river. WASH. which. he said, the
President had announced his intention to
veto. why don't you go up to the Presi-
dent and use your influence with him."
he inquired.
"If." said Mr.. Norris, "you knew how
amusing your talk is to me you would
appreciate some OF the things you are
saying"
Mr.. Norris said he was personally in
terested in developing a number OF wa
tersheds for the express purpose of stop
ping floods. equalizing river floods and de-
veloping potentialities that were now go
ing to waste. Il have my personal for
tune staked in these ventures
I'VE are told now by Mr.. Clifford Pin
chot. who in this matter speaks through
the voice and tongue of the President of
the United States" asserted Mr.. Mann
that there can be no development Of
water power in this country for some
time to come
Mr.. Norris said he. did not know what
the purpose of the inland waterways
commission was except for the creation
Of water power.
1.-The primary purpose" said. Mr.. Mann.
lis to draw salaries
Adverting to the subject Of an UNDER
standing among papermakers to MAIN
tain uniform prices. Mr.. Norris quoted
the JohnstoWn (Pa.) Democrat as stating
that 1t had evidence that hard and fast
combination among paper manufacturers
exists
Freight Rates.
For the purpose of combating the
claim Of the papermakers that the high
price of paper was due in part to in
creased freight rates. Mr.. Norris read a
statement from the interstate commerce
commission. dated January 3. 1908. in re-
Spouse to an inquiry from the publishers.
covering freight rates from a number of
large mills to the larger points OF con-
or,vr Nv,tin fof ot. xf,~k
where in one or two instances there had
been a slight increase. and In some cases
a reduction in rates. in the great major
ity Of cases the rates In effect on the date
of making the statement had stood for q
number Of years.
The only increase in freight rates he
knew Of other than the one or two cases
mentioned by the interstate commerce
commission. said Mr. Norris. was that
which occurred when w. B. Dillon vice
president of the Great Northern Paper
Company. ''conspired with a shipper to
raise the rate from the Great Northern
mills to Philadelphia from IL cents to
q cents" This overcharge. he declared.
had continued for a period OF years up
to March. 1905.
Asked by Mr.. Mann what he did to
bring this matter to the attention Of the
district attorney. Mr.. Norris said the
New York Times and Philadelphia Ledg-
err which were affected by the CON
spiracy." had used both diligence and
persistence without effect. The case. he
said. had been called to the attention Of
the interstate commerce commission and
by it certified to the Department Of Justice,
but that no final action was taken be-
cause OF technicality- Mr.. Norris said
he had not made representations to the
Department Of Justice because he ac-
cepted as correctSthe information given to
him by special attorney of the inter-
state commerce commission.
1T was a scheme of Dillon's." remarked
Mr. Sims. Ito get cents a pound more
than they agreed to take
you can draw your own conclusions"
Mr.. Norris remarked.
"Simply a piece of fraud" said Mr..
Sims.
A list of reports Of news print mills was |
submitted by Mr.. Norris He said that |
the gathering of small mills into one
agency had the effect of stopping the cut
ting of prices. Answering q question by