Los Angeles herald., 1908-04-29
REVEALS WRONGS
OF PAPER TRUST
CONGRESSIONAL COMMITTEE
HEARS TESTIMONY
HEARsT'S DEAL WITH COMPANY
INVESTIGATED
Combination In Restraint of Trade
Alleged Regarding international
concern-Witness Severely
Cross-Examined
BY Associated Press.

BY Associated Press.
WASHINGTON, April 2S.-Before the
select committee of the house which is
investigating the subject of the tariff
on wood pulp as affecting the price
of newspaper print, and also whether
there is combination of papermakers
In restraint of trade, John II. Norris,
representing the paper committee of the
American Newspaper association, to-
day submitted further evidence in sup
port of the associations charges that
such a combination exists and that the
price of paper has been arbitrarily
raised.
He refuted the contention of the
manufacturers that this increase in
price had been partially due 10 higher
freight rates. and submitted a COM
munication from the interstate COM
merce mommission showing the freight
rates from the principal mills 10 the
larger consuming points, from which
1t appeared that with one or two eX-
ceptions there had been no increase
for several years, and in two instances
the statement showed a reduction in
rates.
Members of the committee asked Mr..
Norris many questions about the clos
ing of Canadian mills. Mr.. Mann re-
marked that it seemed rather strange
that with the great advance in the
price of paper and the opportunity of
the Canadian mills TO furnish paper at
the high prices they would be COM
PEELED to close at this time because
they could not be operated protltably.
He thought the publishers association
should seize the opportunity to acquire
the mills.
To that suggestion Mr.. Norris re-
Piled that his association received on
-ff fTTae MOO
containing opportunities for location of
news print paper mills in Canada with
1imitless timber tracts and numerous
power sites. He said that one con-
sular report showed that in the
province of Quebec there were 45,0O0,-
000 cords of wood pulp timber, enough
to keep the United States in spruce
wood for all its paper manufacture for
over 200 years, if there was not par
ticle of reproduction in other Canadian
forests"
Asks About Hearst
Mr.. Norris was subjected to a cross
fire Of questions by the committee
bearing on the quantity of paper con-
sumed by the Hearst publications Mr..
Norris asserted that these publications.
took one fourth of the entire output OF
the International Paper company, or
800 tons a day.
"Do you know at what rate Mr..
Hearst gets his paper?" Chairman
Mann inquired.
Mr.. Norris said he knew only from
street gossip
Asked by Mr.. Stafford if there had
been any talk about Mr.. Hearst's con-
tract Mr. Norris said there had been
considerable. He mentioned prices OF
ST. 92, S.. "a and $1.96 and said he under
stood that some comparatively recent
settlement had been made. but whether
IL s.1I hn
result of an old contract providing for
a readjustment at a given time, he
could not say. He was not, he said,
informed as to the length of the con-
tract period
Mr.. Norris volunteered the statement
that the New York Journal was not in
sympathy with the present inquiry.
The vast forest resources Of the Pa
cific coast, available for pulp, were re-
ferred to by Mr.. Norris, but he said
that because of an insufficient water
power advantage could not be taken
of the opportunity TO take that timber.
Mr.. Mann called attention to the
proposition in congress for water
rights on the Snake river, Washing
ton. which he said the president had
announced his intention to veto.
"Why don't you go up to the presi-
dent and use your Influence with
him." he inquired.
IF you knew how amusing your
talk is to me-" said Mr.. Norris, you
would appreciate some of the things
you are saying"
When. shortly before 3 o'clock the
bell rang for the yeas and nays on a
motion in the house to take recess,
Mr.. Mann, for the second time today,
remarked: 'Well, your self-appointed
prophet has again interfered with this
hearing and requires us to adjourn
contrary to our inclination, and the
committee therefore stands adjourned
until tomorrow at 10 o'clock"
Mr.. Norris made 10 reply.