The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-04-30
CHARGE MUCHOVER
INCREASE OF COST
Paper Trust Investigating Com
lnittee Impressed with Statement
as to International's Charges.

WASHINGTON. ID. G., April 29--More
evidence tending to show that there is
a combination of paper manufacturers
to fix the prices of news print paper
In the United States was adduced to-
day before the special committee OF
the House which is investigating the
subject OF the duty on wood pulp ana
print paper as affecting the price u,
the United States. Mr.. John Norris
continued his testimony on behalf OF
the publishers. and presented numef-
piis letters and documents giving indl-
cation of@tl1e existence of q paper trust
Apparently the committee was par.
ticuiarly impressed with the annual
statement OF the International Paper
Company for the fiscal year ended june
80. 1907. showing that the increased
cost of manufacture of the information II.
al Company was substantially SSoo.oVv
on an, output substantially OF eVoVov
tons of product. making an increased
cost of manufacture of approximately
so cents ton of output, not iustifyins
Mr.. Norris said, an increase of 81 q
ton in price.
He contended that the burden of
proof was on the International Com
pany TO show that the increased cost
RI manufacture. as disclosed by the
figures, must be explained away TO
Justify the increased price which the
company set up.
VIII Go to Bottom.
Chairman Mann, approaching the I'M
portance of this testimony, announced
That he would go to the bottom 10 as
certain the cause of so large an NJ
crease OF the paper.
Dnrine the day Mr.. Norris formu-
lated a number Of questions which he
wished the committee to PROFOUND at
once to the international Paper Com
MANY and others. and also submitted
! the names of a dozen persons identliled
with the paper business whom he de-
sired suppoenaed. The committee took
.he several subjects under considera-
I ton. a..
By way of fixing the date when the
Anaper companies refused to make quo
4ations, Mr.. Norris placed in evidence
q. number OF letters from paper manu-
ltacturers in response to requests lor
Snrfces. most of them dated June OF
July, 1907. r,
I Mr.. Norris read letter from G. IL
lIarke, at one time engaged in the MAJ :
settles. Ill. Independent Paper Mil, pu'
now publisher of the St Joseph, W.
| Gazette In 1906 and 1907 Mr.. Larhe
1 said he had made an exhaustive tnNcs.
1 SUNNY. and in lesser degree INTO
freight rates and general trade cohai,
f,ions During that period he traVeie"
hundreds of miles through the Wooas
of Minnesota. Wisconsin and Miehisat,'
rThere was plenty of wood lett, ne sa,o'
and the conclusion inevitably 10 pc
reached was that the mills snouia -
nearer the wood. Mr.. Larke 'saia -.
could not see why consumers s'lou.a
be forced to pay tribute 10 tie ~
mills and for the cost of the mistakes
Of the mills in old territory.
Quotations After Sold Ont.
!. large number OF letters to the
publishers, Association We're read by
NV Norris. They We're all dated IN .ne
summer of 1907. Mr.. Norris SAID MS
object was to fix dates on whlch luo-
tations were made by the paper COM
nnnies after they announced they were
entirely sold out.
Mr.. Norris read extracts from IN
naper trade journal of January 90
ia6s which. he said, purported to give
reports of meetings OF various Pupii
rroups TO show that there had been
M change in prices. He offered In
evidence figures as to the amount Oh
Capitalization and character OF the
several paper plants
..What is the reason for that" MT.
sims inquired, to which Mr.. Norris re-
piled that it was for the purpose OF
showing that the newspapers of the
country are being called upon to bear
the burdens of consolidation and high
finance and that the conditions are
not normal, and that the newspapers
should not be asked to bear burdens
Imposed upon a corporation as re-
isult Of mistakes it makes in undertake
ing to merge thirty or more mills I'M
der one management