The Montgomery advertiser., 1908-06-23
PAPER 2UST PAYs ITS FINE Cost E ch Two Thousand
 Dollars. COUNSEL PLEADS GUILTY Plain Violation of the Sherman
 Antitrust Act. The Indictment and Successful Prose- eution of Case Was Victory Fer The American Newspaper Pub-
 lishers' Association.


 companies manufacturing manila wrap ping paper were nned $2.0o0 each by Judge Hough in the United States Cir cult Court today,
 They pleaded guilty Friday last to maintaining illegal combination in re- straint of trade. They were members of the Manila and Fibre Association.
 In imposing the fines Judge Hough said that the combination of paper manufacturers was a clear violation of { the Sherman antf-trust law. but be- cause of extenuating circumstances. he would impose fine only. The compa- nies have arranged to pay their lines through their counsel
 The case against the companies was instituted through the instrumentaIity of the American Newspaper Publishers Association. for which John Norris. of this city, acted as agent The com panfes composed almost the entire membership of the combine of wrap ping paper manufacturers which was organized by John H. Parks in ls06
 On complaint of Mir. Norris, the Fed eral grand jury began an investigation of the combine two months ago. and on Friday last returned indictments against Parks and twenty-five compa- nies Mir. Parks was In Europe. but Solomon M Stroock. counsel for the combine. apeared in the Federal Court and pleaded, guilty for twenty-three of ths comoanies.
 Agreed to Fines.
 District Attorney Stimson, who had charge of the cases, stated in court that in view of the fact that the conn panies had saved the government expense by pleading guilty. he was willing that light fines should be iIn- posed. Counsel for the companies de- clared that the combine was formed two years ago to save them from bank duptcy because of the methods of agents for consumers. who. he alleged. favored nFst one group of paper mills and then another in order te cut prices. Counsel also declared that the combine was dissolved when 1t learned that the associatton caine within the provisions of the Sherman law ,5, sR.8 s8A
 John Norris. chairman of the Com mittee of the American Newspaper Pub fishers Association. describing the case against the wrapping paper manufac- turers, who were fined today, said:
 ''In September, 1906, twenty-five fibre and manila mills formed the Manila and Fibre Association, of which John H. Parks was made manager. Immediately after the formation of the association. the production of pa- per dropped from 64.000 to 50.000 tons per quarter and the price of paper was advanced S5 a ton. Other advances $16 a ton. The admitted profit of the pool was sl.s00,000 annually.
 "one of the companies which pleaded guilty is the Continental Paper Bag Company, which figured in the records of the association as John smith" It is the selling agent of the Interna- tionaI Paper Company, the officers of fhn hfanu Cnrr. mittee of the House of Representatives that tho company was not interested, directly or indirectly, through selling agents or otherwise, in any pool or agreement to restrict production.
 Prohibited By Court.
 The Pestoskey Fibre Company. Sn- 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 disso- lution of the General Paper Comany of which combina tion 1t was a member.
 The company did not figure in to- days verdict. its case having been re- ferred to the attorney general on contempt of court charge.
 John H. Parks, the manager of the Manila and Fibre Association. also ran four other pools or price associations, as he called them. From these he drew an income of $l50.000 annually. When the present investigation open- ed, Parks fled to Europe and has been there ever since"
 The following companies pleaded guilty through counsel to violating the sherman law last Friday: Analomink Paper Company. North Waterp, Penna., Bayless Pulp and Paper Company, Au- stin, Pa.: Bedford Pulp and Paper Company. Big Island. Va; Brownville Paper Company. Brownviile, N. r.; the Champion Paper Company. Carthage. N r.: Central Paper Company. Muske- gon, Mich: Continental Paper Bag Company. Watertan N. J.; eGrasse Pa per Company Pyrites. N Y.; the Dex- ter Sulphite Pulp and Paper Company, Dexter. N r.: Detroit Sulphite Pulp and Paper Company. Detroit Mich; Fletcher Paper Company. Alpena. Mich; Could Paper Company. Lyons Falls. N Y; dartje Paper Manufacturing Company. Steubenville. Ohio: the Is- the Jefferson Paper Company. Black River, N. Y.; the Island Paper Com pany. Menasha. Wis: Newton Falls Paper Company. Newton Falls. Vt: Orono Pulp and Paper Company. Orono, Maine; the Parsons Pulp and Paper Company. Parsons West Virgin la; the Pacduette River Paper Com pany, Pottsdam. N, r.: the York Ha- yen Paper Company. York Haven. Pa; Mover and Pratt. Lyons Falls. N. Y: and Munising Paper Company, Utd( Munising. Mich.
 In addition to the sixty-three com panies that pleaded guilty last Fridsy one other. the Allen Brothers Companv of Sandy Hill. N. r.. was in list of those on which fines were imposed to- day.