Arizona republican., 1917-11-27
PAPER
 TRUST
 BROKEN
Republican A. p. Leased WIrel


 NEW YORK. Nov. 26-with the assent of the government the News Print Manufacture' Association, | which represents about S5 per cent of | the print paper production of the | United States and Canada, was dis solved here today as an unlawful | combination in restraint of trade ill violation of the sherman anti trust act. Under this decree, signed by United States Judge Mayer, and which the defendants counsel said was ac- cepted by the accused men because of patriotic motives, evidence will be ad- duced before the federal trade com mission with view to fixing paper prices by the commission.
 Pending the commissions decision. the price of paper is fixed at three cents pound. This contract, of which the United States attorney general is the trustee. Is understood to be satis- factory to the American Newspaper Publishers association. the members of which are included in the consumers of paper.
 Under the decree, the three-cent price will prevail until April 1st in the case of some of the Individual and corporate defendants and until Janu- ary first fin the case of the others The price finally fixed by the commis- sion will, it is understood, be for the period of the war.
 Five of the seven individual de- fendants and all but a few of the cor porate defendants accused under the federal indictment returned last April entered pleas today of "nolo con tendre."
 The defendants were accused of creating a complete monopolistic ar rangement' whereby prices were fixed. the country divided into geographical districts for trade purposes, new mills suppressed 10 avert competition and propaganda sent to newspaper pub fishers indicating increased manufac- turing costs at a time when, according 10 the government, it was actually lower than it had been in previous months.
 The five individuals who refused to carry the case to trial are George II. Mead, president of the defendant spanish River Pulp and Paper Mills, Ltd, and other companies; Philip T. Dodge, president of the defendant In ternational Paper company; Edward W. Backus, president of the defendant Minnesota and Ontario Power com pany; George C. Chahoon. Jr., presi- dent of the defendant Laurentife com pany Ltd, and an officer of the Cana dian Export Paper company. Ltd. and Frank J. Sensenbrenner vice president Of the defendant Kimberley Clark company
 The first four of these individuals were fined s2500 each, and Sensebren- ner was fined S1,0OO.
 C. H. ?. Gould. president of the Gould Paper company, pleaded not guilty. At the suggestion of federal counsel, who said government investi- nh nh C s.t.- ,4 evidence to warrant trial, the indict- ment against Gould was dismissed.
 Alexander Smith, a Chicago banker the seventh individual defendant, is engaged in Red Cross work in France He was allowed until January 8 tC plead.
 Counsel for the defendants asserted today they had not consciously vio- lated the spirit of the letter of the sherman law. The association. the at torneys held, was organized as a meas ure of 'self defense, to meet aggres- sions," by the American Newspaper Publishers association, which was de scrtbed as being a buyers trust. The A. N. r. A. was responsible fol the tariff on print paper being lifted as affecting importation from Canada John B. Staunchfield of counsel fol the defense, asserted; and as the cos VI luAeAbAuAiA6 paper III tlle C AlleN States is greater than that in Canada the manufacturers considered the, were Justified, he said. in taking req sonable protective measures.
 Trial of the cases would bring tn defendants nowhere as neither con viction nor acquittal nor a jury dis agreement would change the situation said MT. Stanchf,ed. who added tha the manufacturers were actuated, il consenting to assent to the price de cree, by the same motives of patriot ism az moved stce, and sugar am other industries to reach understand ings with the government in time O war. In view of this attitude, MI Stanchfield pleaded that no fine ought to be imposed.
 Herbert c. Smyth. of counsel for tn government, urged it would be % serious thing if they go unpunished, as the principle of the Sherman law he said, had been violated.