The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-06-23
JUDGE IMPOSED
FINE OF $4,000
Members of the Manila and
Fiber Association Violated
Sherman Law.
ONE PARTY IN CONTEMPT
MANAGER OF THE TRUST A FUeI-
TIVE FROM JUSTICE.

New York. June 22.-Twenty-four
companies manufacturing manila wrap
ping paper were fined 81. 900 each by
Judge Hough in the United States cir
cult court today, They pleaded guilty
on Friday last To maintaining an il
regal combination in restraint of trade.
1ney were members of the Manila and
rider association.
In imposing the fines, Judge Hough
SAID that tie combination of paper
manufacturers was clear violation OF
the sherman antitrust law. but be-
cause of eXtenuating circumstances he
would impose a fine only. The COM
panies have arranged TO pay their fines
through their counsel.
Tally One for Publishers.
The cases against the companies were
instituted through the instrumentality
OF the American Newspaper Publishers
ASSOCIATION, for which Mr. Norris of
this city acted as agent. The cOmpan-
les composed almost the entire member
ship OF the circle of paper manufactu-
fers which was organized by John H
Parks IN 1906. On complaint of Mr..
Norris the federal grand jury began am
Investigation of the combination two
months ago and on Friday last returned
indictments against Parks and twenty
tve companies District Attorney slim
son. who had charge of the cases,
stated in court that in view of the fact
that the companies had saved the gov
eminent expense by pleading guilty, he
was willing that light fines should be
imposed. Counsel for the companies de-
clared that the combine was formed
two years ago TO save them from bank
ruptcy, because of the methods of
agents for consumers, who, he alleged
favored first one group of paper mills
and then another in order to cut prices.
Counsel also declared that the cOmbi-
nation was not dissolved when ii was
learned that the association came I'M
der the provisions Of the Sherman law.
Statement of John Norris.
John Norris, chairman of the COM
mittee of the American NeWspaper
Publishers association, investigating
newspa per print conditions. describing
the case against the wrapping paper
manufacturers, who were fined today,
said:
In September 1905 twenty-five fiber
and manila mills formed the Manila
and Fiber association, of which John
II. Parks was made manager. Imme-
diately after the formation of the as
sOciatiOn the production of paper
dropped from Ga 900 TO $1,000 tons per
quarter and the price of paper was
advanced S. a ton. Other advances fol-
lowed. until the price had been raised
SIC a ton. The admitted profit of the
pool was $1,000. 900 annually.
"One of the companies which pleaded
guilty is the Continental Paper Bag
company, which figures in the records
OF the association as John Smith 1t
is the selling agent for the Information
al Paper company. the officers of which
testified before the committee of the
house of representatives was not inter-
ested. directly or indirectly, through
the selling agents or otherwise, in any
pool or agreement to restrict produc-
ton.
One Company in Contempt.
THE Petersky Fiber company. an
other member of the association, was
prohibited by the federal court from
joining any pool or agreement to re-
strict trade at the time OF the dissolu-
ton of the General Paper company, of
which combination il was a member
The company did not figure in today's
verdict. its case having been referred to
the attorney general on a contempt of
court charge. John T. Sparks. general
mana ger of the Manila and Fiber COM
pany. drew an income of $4,000 annu-
ally. When the present investigation
opened Parks fled to Europe and has
been there ever since. He is the only
individual under indictment The other
indictments We're preferred against the
companies interested.
In addition to twenty-five compan-
les that pleaded guilty last Friday, one
other, the Allen Brothers company of
those on which fines were imposed to-
daVo