The Birmingham age-herald., 1908-04-30
More Evidence Tends To Show Combination of Mills To
 Control Price
COST OF PRODUCTION
 INCREASES 50 CENTS
Advance In Price of sig Is Considered By the Committee To Be Worthy of an tigation-Several
 Witnesses Are Desired.

Washington, April 29.-More evideL e tending to show that there is a com bination of paper manufacturers to fix the price of news print paper in the United States adduced today be- fore the special committee of the House which is investigating the subject of duty on wood pulp and print paper as affecting the price in the United States
 MT. John Norris of the New York Times and representing the paper com mittee of the American Newspaper 7 Publishers association, continued his testimony and presented numerous let ters and documents to bear out his contention.
 Apparently the committee was par ticulary impressed with the annual statement of the International Paper company for the fiscal year ended June 30, 1907, showing an increased cost of production of 60 cents ton as against the raise in price of paper of SIP ton. Chairman Mann, appreciating the importance of this testimony, an nounced that he would go to the bot tom to ascertain the cause of so large an increase in the print paper
 Terminates Questions.
 During the day MT. Norris formulated a number of questions which he wished the committee to propound at once to the International Paper company and Z others. and also subpitted the names of q dozen persons identified with the paper business whom he desired sub pocnaed.
 Several original letters from pub fishers were put in evidence giving indications of the existence of paper trust" One of these was written in November, 1907, by V s. McClatchy publisher for the Evening Bee, Sacra- mento, Cal, who spoke of a contract he had with the Willamette mill for paper at $2.60 per hundred, but which price was raised to $2.80 at the expira- tion of the contract. At the same timc MT. McClatchy said he had a bid from r. Leadbettef on behalf of the Colum- bia River Paper company for s2.25 f. o. b., Portland, which would mean $2.50 at Sacramento, but that prior to the operation of the mill it was pro vided that the paper would be fur nished by the Crown-Columbia mills.
 From these Crown-Columba mills" MT Clatchy wrote, i've had at times been supplied with paper under the William ette contract, as there some sort of working arrangement between the two'' The result was, he said, that the Will liamette people objected and MT. Lead better asked permission to fill his con tract from eastern mills, which was granted
 As a part of the formulation of the testimony with respect to combinations of the various groups of paper makers Mr. Norris at this point put in evidence list of officers aud bylaws of the new sul- phte pulp association, which were pub lished November g. 1907. These bylaws provided for the tabulation of a monthly confidential report on tonnage, agreed prices names of buyers, terms of tracts, etc. The association, he said, had been in the habit of holding meetings 1t the Hotel Astor. New York, at which prices were fixed. These new bylaws" said MT. Norris, were devised, so we charge and expect to prove, immediately following the complaints of the publish CTS and in order that this association might come within the federal statutes
 Suphite Pulp.
 Responding to question by MT. Mann, MT. Norris said he did not know in what proportion sulphite pulp was made by news print paper manufacturers for themselves. He thought, however, that most of the news print manufacturers did make their own sulphite pulp.
 ''Our contention is.' said he, that to the extent that the sulphte pulp associa- tion fixed the price for the market, 1t did affect the cost of material entering into news print paper
 When at 11:30 o'clock three bells nounced that there was no quorum in the House, MT. Mann remarked:
 Well MT. Norris, you may suspend We are again interrupted In the midst of the hearing by the demand in the House for the senseless roll call. We are required to go over to the capitol, all of us in order to make quorum recess thereupon was taken until o'clock
 Afternoon Session.
 At the afternoon session Mr. Norris read letter from MT G. H. Larke, at one time engaged in the Marselles, H., Independent Paper mill, but now pub fisher of the St. Joseph, Mo-, Gazette. In 1900 or 1901, MT. Larke said he made an exhaustive investigation of the North western pulp wood suppsy and in lesser degree into freight rates ana general traf- fic conditions. In that period he tray eled hundreds of miles through the woods of Minnesota, Wisconsin and Michigan.
 There was plenty of wood, he said, and his conclusion, inevitably reached, was that the mills had to go nearer the wood. large number of confidential ietters to the publishers association, against which the injunction of secrecy had been removed. were read by MT. Norris. These were all dated in the summer of 1907. Mir. Norris in answer to questions, said his object was to fix the dates on which quotations were made by the paper com panies after they announced they were entirely sold out With the view, as he said, to simplifying, MT. Norris asked the committee to immediately ask the Jn- formation Paper company for al detailed list of questions relating to the subject of paper business and it's relation to the publishers of the country.
 MT Norris said he wanted information covering statement of average price per