The Montgomery advertiser., 1908-04-30
STILL PROBES
 PAPER TRUST
tcontinued from Page one,

MT. Norris, In answer to questions, said that his object was to fix the dates on which the quotations were made by the paper companies after they announced they were entirely sold out. With the view, as he said, to simplifying, Mir. Norris asked the com mittee to immediately ask the Inter- national Paper Company a detailed list of questions relating to the gem eral subject of the paper business and It's relation to the publishers of the country.
 Mir. Norris said he wanted informa- ton covering a statement of average price per annum received by them at points of delivery for news print paper since 1901
 He then requested that a subpoena be issued for each of the following: John Hanrahan. 26 Broadway, New York: Mir. Dean of Dean & Shiblcy, 2s Broadway. New York: N. H. Jones of the Katahdin Pulp and Paper Com. pany; George Hardy a paper mill ar- chitect; W. H. Hurlbut, trafic man. ager for the mills formerly associated sn the General Paper Company, in rout- ing traffic; John Davis of H. c. Craig Co.,; MT. Nussey. Boston. selling agent of the International Paper Company: A. E. Wright, New Ymk. manager of sales. International Paper Company. and David S. Cowles. representing the Lisbon Falls Fibre Company, the Bow doin Paper Manufacturing Company and the Penebscot Paper Company.
 Mir. Norris made the further request that David S. Cowies. President of the American Pulp Company. furnish copies of all letters sent by him urging deal CTS to restrict paper output to main- tain prices.
 Mir Miller. the acting chairman, said the committe would take the several requests under consideration.
 Calls CowIes a Liar.
 Reading from a paper journal re- cent statement by MT. lCowles justify ing the increased cost of paper by a SIP ton increase in the cost of wood pulp. MT Norris declared the state ment to be absolutely false" and he said MT. Cowles knew 1t was false when he made 1t.
 Mir. Norris next declared his ability to "demolish" the reasons for the in- crease in the price of paper given by Chester Lyman, of the International Paper Company and which appeared April 6. 1908. in the paper trade jour nal Mir. Lyman, in the article in question, denied the existence of combination and courted a full inves- tigation. He also said the price in 1908 as compared with 1907 would show an increase; and that that in- crease was on account of increased cost of labor and raw material.
 Asked for a statement regarding tn Canadian mills, Mir. Norris said that they were running at this time because American mills had combined to main tain prices at such a high figure that Canadian mills could pay $6 a ton In freight and still undersell the price which the combination had fixed as its selling basis.
 After submitting q copy of con tract of the International Paper Com pany with a labor union. whereby 1t nxed the three tour system. Mir. Norris said he would submit data as to per centages and as to savings which will completely upset the claim made by MT. cowles as to the labor cost having been increased 50 per cent. and also the implication In Mr. Lyman's state ment that the labor cost has increased 33 per cent"
 Questioned by members of the com mittee about the tarlff on wood pulp. MT. Norris replied that he had no doubt the paper makers would furnish data about that
 Mir. Norris then read extracts from The Paper Trade Journal of Jan. 23, 1908. which. he said. purported to have been reports of meetings of various paper groups to show that there had been no changes in the prices. He of- fered as evidence figures to tho amount of capitalization and character of sev- eral paper plants.
 Papers to Bear Burden.
 What is the reason for that?" Mir. Sims inquired, to which MT. 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 a result of mistakes in undertaking to merge thirty or more mills under one manage ment."
 Mr. Mann protested that the answer was too general and inquired if 1t was for the purpose of showing that the pa- per makers are making larger divi- dends than they are entitled to, or for the purpose of showing that expendit- ures of their plants are greater than they have a right to be.
 Tt is," replied Mr. Norris. for the purpose of showing that they are att tempting to earn as much as they pos sibly can to justify this exceedingly high capitalization"
 Mir. Sims remarked that from the way he looked at the question a tarin duty 1 should not be kept up simply that the Paper Company may | make money out of antiquatsd and | disabled means Of production.
 That Is right" said Mr. Norris. The | tariR Is not for any one especially | but for the promotion of | the general interest"
 Mr. Norris quoted from the annual | statements of the International Paper | Company for the fiscal year ended | June 30. 1906 and 1907. Those reports. | said MT. Norris. showed the amount of Income and the amount of expenses. | and they will especially show the increase in the cost of manufacture rom 1906 to 1907; that up to June 30. 907, the increased cost of manufaet- ire of the international Paper Com ,any, was substantially s30000 on an output substantially of 500. 900 tons of product. making an. increased cost of of approximately so cents ] ton of output, mot dustifylng," he ,aid. "an increase of SIP d ton in )rice."
 He contended that the burden of proof was on the International Com oany to show that the increase cost of as shown by the figures must be explained away to justify the price which the company set ID.
 Mir. Mann agreed that the statement was an important one fin connection with the investigation and said that he committee would go to the bottom of the facts.
 The committee adjourned until 10