The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-08
INDICTMENT OF
PAPER MAKERS
federal Grand jury Charges
An illegal Combination
ALI PLEAD NOT GUILTY
Men indicted Are All in Paper Board
Association and Organizer
Has Already Been Con-
victed and Fined.
ALI PLEAD NOT GUILTY

New York. January Another paper
association. formed by John H. Parks,
who pleaded guilty and paid nne OF
$4,000 for his connection with the so-ealled
fiber and manila pool. was indicted by
the federal grand jury in New York TO-
day charged with being an illegal eomol-
nation in restraint of trade. The fedora
| ton is the Paper Board association com
prising 40 prominent paper manufactur-
ers. who are indicted individually in ad-
dition to the indictment returned against
the association as such A fine or I'M
lrisonment may be imposed on con-
| vietion.
Today's indictment is but one of many
ramincations of the investigation the
government instituted against paper man
ufacturers The conviction of Parks
brought about the dissolution Of the
Fiber and Manila association, whose
members were fined $1,000 each, and
the action against the Paper Board as
sociation is following similar lines. A
third proceeding directed against news
print manufacturers is now before the
grand Jury.
Ninety of the defendants named in
todays indictments were represented in
court this afternoon and on behalf Of all
a plea of not guilty was entered, with
permission to withdraw it within three
weeks.
The defendants were released on their
own recognizance.
rts fnr Ind 20 ot,t
concerns in New York, New Jersey, In
diana, Illinois, Connecticut, Delaware,
West Virginia, Pennsylvania and Ohio.
Rigid were the rules that bound the
members Of the association to adhere
to prices agreed upon according to the
wording of the indictment. 1t recites
that the association was organized in 1895
with headquarters in New York, and adds
that prices were fixed at the quarterly
meetings.
These prices, It is declared, were not
to have been changed or departed from
except by unanimous vote of the men,
oership. The amount of trade each mem
Der was to enjoy was to be carefully ap-
portioned, it is said while a liberal tax
was levied at the same time to pay the
expenses of the association.
The members have adhered strictly to
the agreements mapped out, according to
the indictment, which has prevented,
eliminated and destroyed competition by
fixing arbitrary and non-competitive
prices.
These prices, 1t is further charged,
were greatly in excess of prices that
would have been fixed by natural compe-
tition, thus levying an unlawful tax upon
the people of the United States, amount
ing to 100000 annually, it is alleged.
Covert acts cited in the indictment in
clude reports of the treasury and the
/ price commission and extracts of the min
utes of quarterly meetings. The minutes
of the quarterly meetings held December
and 5, 1907 included the following items:
Fix your selling price for the ensuing
quarter: fix your pool contributions for
the ensuing quarter; fix the cost schedule
for the ensuing quarter; Ak the sales
allotment for the ensuing quarter and
fix other items.
Among the individuals named In the
indictments are H. L. Beveridge, presi-
dent Beverage Paper company Indiana;
G. z. Frye, treasurer, Ellzhart Bristol
Board and Paper company, Indiana; C. A.
Bislick, president Empire Paper company,
Delaware; Frank L. Harrison, an officer
of Eyster &c Sons West Virginia; George
Little, treasurer and general manager
Franklin Board and Paper company,
Ohio; George Wood, secretary and 1. N.
| Miller, agent, Kokomo Paper company,
Indiana; Thomas G. Bauer president
Lafayette Box Board and Paper company
Indiana; Stanley Reed. secretary and
! treasurer OF. the Manchester Paper and
Irvine company, Virginia; ]. Woodwilson,
president, and ]. G. Mccullough, vice
/ Jpdi
ana; Thomas Ross, general manager of
the Ohio Box Board company; E. T.
Gardner, treasurer Colin Gardner Paper
company of Ohio; C. LaBoitaux secre-
tary Kneed Board and Paper company
West Virginia; Thomas F. Walsh presi-
dent OF the Western Strawboard COM
pany, Ohio; w. H. Holiday, president
of the United States Board and Paper
company. Indiana; A. M. Shepherd, presi-
dent Vincennes Paper company, Indiana
8. B. Sutphin, secretary and treasurer
xenia Paper company, Ohio.
Knew of Investigation.
| Kokomo. Ind, January III. W. Miller,
one of the men indicted in New York
| today in connection with the alleged box
| board combine. is president of the Ko-
komo Paper company. e. P. Wood, the
| second Kokomo man indicted was the
secretary of the company until his death
| was announced two years ago.
| Officers of the Kokomo Paper company
| have been apprised for some time that
| an investigation of the John A. Parks
| Manila Writing Paper company was 60
| ing forward by the federal authorities
| in New York. 1t Is said here that the
| pool was organized more than two years
ago. The organization was perfected
| with President Miller of the Kokomo con-
Germ at its head. He said during his abb
sence the pool was formed and he has
had little rendered him concerning It.
! The details were, he said, in the hands
| Of Secretary Wood, the keeper of the
| archives.
Bauer Not In Agreement
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