Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-06-23
MANILA COMPANIES FINED
Judge Hough Imposes Penalty Against
Confessed Trust.
TWO THOUSAND DOLLARS EACH
Prosecution First of Those Brought
About by American Newspaper
PubIishers-Combin Now
Dissolved.

NEW YORK. June 22-Twenty-four
companies manufacturing manila wrapping
paper were fined 5000 each by Judge
Hough in the United States circuit court
today. They pleaded guilty on Friday last
to maintaining an illegal combination In
restraint Of trade They were members OF
the Manila and Fibre association.
In imposing the fines. Judge Hough said
that the combination Of paper manufac-
turers was a clear violation of the Sher-
man antitrust law. but because OF eN-
tenuating circumstances he would impose
a fine only. The companies have arranged
to pay their fines through their counsel.
The case against the companies was In
stituted through the instrumentality OF
the American Newspaper Publishers as
sociation, for which John Norris OF this
city acted as agents. The companies COM
posed almost the entire membership OF the
combine Of paper manufacturers which
was organized by John II. Parks in 1906
Or complaint of Mr. Norris the federal
grand jury began an investigation OF the
combine two months ego, and on Friday
last returned indictments against Parks
ana twenty-five companies.
District Attorney stmson. who had
charge Of the case stated in court that
in view OF the fact that the companies
had saved the government expense by
pleading guilty. he will be wiling that
light fines should be imposed Counsei
for the companies declared that the com
bine was formed two years ago to save
them from bankruptcy because OF the
methods of agents for consumers, VINO ne
alleged, favored first one group or paper
mills and then another in order TO cut
prices. Counsel also declared that the
combine was dissolved when 1t learned that
the association came within the provisions
of the Sherman act.
Norris Describes Case.
John Norris chairman Of the committee
OF the American Newspaper Publishers
association, investigating news print cases.
describing the case against the wrapping
paper manufacturers, who were fined to-
day, said;
In September, 1906, twenty-five fiber and
manila mills formed the Manila and Floer
made manager. Immediately after the
formation of the association the P1q1uctIoil N .
OF paper dropped from $4,000 to oO'On tons
per quarter and the price of paper was ad-
Vanced IS ton. Other advances tolowed'
until the price had been raised sle a sSd sSh,
one of the companies which pleaded
guilty y the Continental PAPER scorss 6ss Of the
sPssociation as SJohn Smith" IT is the sell
| ing agent of the International Paper COM
| the Mann committee of the house of rep
resentatives that the company was not IN
srestsd directly or nSi5set thTSuSo Soo set or
| agreement to restrict production.
( The Petoskey Fiber company apotheS
member Of the association, was pronioited
pool or agreement to restrict trade at the
| time of the dissolution OF the General IA
per company, of which combination II was
! q member. The company did not figure ir
| today's verdict, it's case having been re-
ferred to the attorney general on con-
John II. Parks, the manager of the Ma
nila and Fiber association, also ran foul
other pools, or price associations" as he
come of $4,000 annually. When the pres
ent investigation opened Parks fled to Eu'
| is the only individual under indictment
| The other indictments were preferred
agaipst the companies interested.
List of Companies.
The following companies pleaded guilty
through counsel, to violating the Sherman
law last Friday:
Analomink Paper company, North Water
Gap, Pa; Bayless Pulp and Paper com
pany, Austin, Pa; Bedford Pulp and Paper
company Big Island, Va; Brownsville
! Paper company, Brownsville, N. y; thu
Champion Paper company. Carthage. n: Y,
|
! Continental Paper Bag company, Water
town, NJ; Y; Degrasse Paper company
| Pyrites, N. Y; the Dexter Sulphite PulI
and Paper company, Dexter, n. Y: Detroi
Sulphite Pulp and Paper company, Detroit
| Mich, Fletcher Paper company, Alpena
Mich; Gould Paper company, Lyons Falls
n. Y; Harte Paper Manufacturing com
pany, Steubenvile, o.. the Island Pape
company, Carthage, n. Y; the Island Pape
company. ManashA. Wis. the jefferson
Paper company, Black River, n. Y; New
ton Falls company, Newton Falls, VT.
Ororo Pulp and Paper company Orono
Me; the Parsons Pulp and Paper company
| Parsons, w. Va. the Racquette Rive
| Paper company. Potsdam, N. Y; the Yorl
Haven Paper company. York Haven, Pa.
Meyer and Pratt, Lyons Falls n. Y, ant
Munishing Paper company, Qimited), Nun
| isinR. Mich
In addition to the twenty-three compan
les that pleaded guilty last Friday on,
other. the Allen Brothers company o
Sandy Hill. N. Y, was in the list OF thos
on which fines were imposed today.