Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-04-13
BANKER INDICTED
Continued from PAGE One)

Export Paper Co, a selling company
alleged to control the sales between the
Dominion Of Canada and the United
States. with an aggregate output of 500
tons day.
Gould Is president of the Gould Pa
per Co. the Donnacona Paper Co. and
formerly of the ST. Regis Paper Co..
controlling an output Of $50 tons
day.
Sensenbrenner is vice president of the
Kimberly. Clark Co. said to control an
output of 81 tons daily and facilities
for 40 tons more.
Smith is described as a leading bank
er in the United States. in the flota-
ton and sale Of the securities of news
print manufacturing companies" inter-
ested largely In the Minnesota and On
tario Power Co, the Spanish River Pulp
and Paper Mills. Limited, the Lake Su-
perior Pulp and Paper Co., and the Abb
tibi Power and Paper Co.
All but the last two are members Of
the News Print Manufacturers Assotia.
lion executive committee.
Bench warrants for the defendants
were issued and bail fixed at $4,000.
CoIby's Statement
The investigation, it was stated Nv
cambridge Colby who served as spe-
cial assistant to the United States at
torney general In coalition with Mark
Hyman. assistant attorney general. was
Undertaken by the department Of JUS
tice in February "at the request of the
Ieoeral trade commission" Subsequent
iy the commission and the manufac-
turers reached an agreement in respect
to prices
The Federal Trade Commission in it's
preliminary report to Congress declared
that there existed in the news print in
dustry combination in restraint Of trade
and that while there was no actual
shortage in news print paper a very deli
cate equilibrium between the available
supply and the demand had been brought
ABOUT artihcially in the trade" Mr.. Col
by said THE grand Jury as the result
OF its independent investigation has in
effect reached the same conclusion and
has indicted the men whom it regards as
responsible for these conditions brought
about. in its opinion. through a violation
OF the federal antitrust laws.
The grand jury has not sought to in
clude in its arraignment the corporations
and individuals constituting tho entire
membership Of the industry, but has
charged specifications the individuals re-
garded as the originators and directors OF
the alleged illegal combination and con-
spiracy.
The prices charged by members of the
association are greatly in excess of prices
which independent producers. even under
war conditions, are content to receive.
There has been a relatively slight ad-
vance in the cost of materials entering
hut nothing comparable to the advance in
prices which has been made through the
concerted action of the members Of this
combination and under restricted compel
tive conditions brought about by the as
ISOLATION whose purposes and methods
are now directly challenged by the action
Of the federal grand jury
The indictment states the inquiry
covered the period since December,
1914. The total daily output of news
print paper. chiefly used by newspa-
pers, is put at $500 tons in Canada
and the United States, with a value of
$4,000. OF this amount 1t is alleged
$500 tons were controlled by IS spe
cifc companies, whose trade the de-
PENDANTS are accused of engaging in a
conspiracy to restrain.
The association is described in the
indictment as a voluntary trade assoc
citation. composed of As firms and hav-
ing mo constitution. bylaws. nor min
utes of proceedings" The defendants
and Steele. the association secretary,
it is alleged through the association
and the firms. the controlled carrying
on So per cent. of the news print trade
and having facilities to carry on 65
per cent. were able to dominate the
business.