New-York tribune., 1917-11-27
Print Paper Trust
Dissolved and Flu.
Defendants Fined
Price Fixed at 3 Cent,
Pound From Januaryl
to April l

What is described as the frs, :.
tory of tho government against !.
Gary dinner" and similar pla,, .,|
competition sitting was Registered -.
terday. when Judge Mayer, in Ii. D., M
eral District Court, ordered the A..
luton OF the News Print ManuSu.
ers' Association. controlling moun.
30 per cent of the entire news No..
PAPER output of the country.
Five of the seven leaders in n,
sociation, under indictment for val,
ton of the Sherman act, Withdrew a..
previous pleas of not guilty and v,,.
fined from $1,000 to $500 each
sixth defendant, Gordias II. P. Gous
pleaded not guilty. The indictms,,
against him was dismissed on ~,
ground of insufficient evidence. ALL,
ander Smith, the last indicted ms,..
facturer, is doing Red Cross wort !,
France at present, and his trial h.,
been adjourned until January 3.
Maximum Price Fixed
or eleven companies in the assoc,
tion. and two subsidiaries which wer.
under Indictment also. all eycept IA.
agreed to temporary maximum pri,,
of three cents pound for print pspe,
This agreement is 70 20 into efe,,
January /, when renewals of contraet,
with the manufacturers occur, and is 70
be binding for three months.
For the duration of the war, st,,,
this three-month period. the maYinur
price will be fixed by the FEDERAL Tr,t.
Commission from time to time. II n.
government or the companies afee,,J
are dissatisfied they can appeal fro.
the findings Of the commission to u.
Circuit Court of Appeal of this a..
trict.
Mark Hyman. OF 81 Broadway, ~.
cial assistant 10 the Attorney Gensn
in the prosecution Of the case, d.
clared last night that the decree sigld
Yesterday was only the beginning q
the governments fight against tAs
news print paper makers and similu
associations organized TO control prizes
through understandings
"The eleven companies affected in %.
days agreement" he said. "repres.r.
about three-ffths of the total nsyI
print paper production in the United
States-3,2 200 tons scheduled capacity
daily, making about a million tons an.
nuaily, representing a selling price c. |
$6O,00O,000.
To Press Other Suits
This case is just beginning Of th
action By the government against n
open competition agreement Ike q
Gary dinner plan. IT. purpose IS t
declare illegal any association eonprs
ing most of any trade which hold
meetings TO discuss conditions, VII,
a view to a tacit understanding about
prices.
eleven Of the forty-fye companies
in the News Print Manufacturers A.
sociation were affected by to-day's pr.
ceedings. The government, ] can tel
you, intends to press the case vIs'''
ously against all the defendants
The following paid fines OF siM;
Philip T. Dodge, president OF the lfs
national Paper Company; George
Mead. chairman Of the News Pri'
Manufacturers Association and pres
dent of the q. II. Mead Company: "
Spanish River PulD aud Paper ME-
and the Lake Superior Paper Company
George Chahoon, Jr, president oil ne
Laurentide Company and other eei'
Germs, and Edward W. Bacs1s,, pres'
dent of the Minnesota and Onlsro
Power Company and the Fort Francis
Pulp and Paper Company.
Frank ]. Sensenbrenner, not mem
ber of the association, but said 70 nave
welded considerable influence over y
was fined $1,000. The attorney !a
President Backus declared his eleh
did NOT fight the case because ne hsa
been told by his physician tnst nn
death from heart failure would oe -.
certain consequence Of the eAellen'e"'
Of trial.
Shared sIj,OoO.OOO PrOht
Herbert c. Smyth, the second speel
assistant 10 Attorney General Greg
ory. told the court that IN elghs.
months during which the comolna.,S
existed Sl5.00O,0O0, obtained oy taIsp.
the price of news print paper han
cent, had been shared among 'ne "
PENDANTS. IA.
Mr.. Smyth read excerpts from 3 W
ter which he said he had obtained Nv. l.ss
the files of the association, 10 Sl;,
one of its executive members gave
structions 10 the effect that "the ~
preston must be given 10 buyers .i
the paper costs the trust eens
though in reality II costs only ~,
The defence denied the eSlsten'' "
such a letter. uAN
The two indicted concerns whlslv whv,.
not sign the agreement were the -
nesota and Ontario Power ConEs
and the Fort Francis Paper ana .,rI
Company. They declared they .v
not sell their product at the niat..', a'.s !,
price of three cents. and WIZ "a 4,
examination Of their affairs mSu NJ
the Federal Trade Commission W.
will fix prices at once. ,os
The price of news print papea S,,I
is from 1910 to 1925 a o.s' num-
pounds. and an increase 10 ~ nSs r..
threatened. The Department % ., n