The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-12-01
PAPER TRUST DISSOLVED.
PRICE FIXED FOR PRESENT AT
THREE CENTS.
Five OF Seven Defendants Plead
"NOllO Contendre" Before Federal
Judge.

New York, Nov. 26.-With th,, as
sent of the government the News
Print Manufacturers Association
which represents about IS per cent. OF
the print paper production Of the
United Sttaes and Canada was dis
solved here today as an unlawful
combination in restraint of trade in
violation of the Sherman antitrust
act. Under this decree signed by Fed
eral Judge Mayer and which the de-
fendants counsel said was accepted
by the accused men because of pa
triotic motives and a desire not to en-
barrass the government while engag-
cd in war. evidence Will be adduced
before the federal trade commission
in order to prepare for prices being
fixed.
Pending the commissions decision,
which under the decree may he re-
viewed by the federal circuit court of
appeals here, the price of paper is
fixed at three cents pound. This
contract is understood to be satisfac-
tory to the American Newspaper Pub
lishers Association.
The three cent price will prevail
until April l in the case Of the indi-
vidual and corporated defendants a.nd
until January / in the case of others
The price finally fixed by the federal
trade commission will. it is under
stood. be for the period of the war
Five of the seven individual defend
ants and all but few of the corpor-
ate defendants accused under the fed
eral indictment returned last April
entered pleas today of "nollo conten-
Dire" The five individuals who thus
refused to carry the case to trial were
George Fl. Mead, president Of the de-
fendant Spanish River Pulp and Pa
per Mill, Limited, and other compa-
MES; Phillip T. Dodge, president of
defendant International Paper Com
lpany; Edw. w. Backus president of
the defendant Minnesota and Ontario
Powder Company; Geo. g. Chapoon,
Jr.. president of the defendant Lau-
rentide, Company. Limited, and an Of
nicer OF the Canadian Export Paper
Company. Limited. and F. s. Essen
brenner, vice president of the defend
ant Kimberly-Cl Company. The
first four of these individuals were
fined $4,000 each and Sensenbrenner
was fined $1,000.
q. II. p Gould, president Of the
Gould Paper Company. pleaded not
guilty. AT the suggestion of federal
counsel, who said sufficient evidence
to warrant trial had not been un-
covered, the indictment against Gould
was dismissed.
Alexander Smith, a Chicago bank
er, the seventh individual defendant,
is engaged in Red Cross work in
France. He was allowed until jan
uary 3 to plead.
The defendants were accused OF
creating complete monopolistic ar
rangement" whereby prices were fixed,
the country divided into districts for
trade purposes, new mills suppressed
to avert competition and propaganda
sent to newspaper publishers indicat-
ing increased manufacturing cost at
Time when, according to the govern
ment. it was actually lower than it
mad been in previous months.
Counsel for the defendants assert
ed today that they had not conscious
~ violated the spirit or the letter of
the Sherman law. The association. the
attorney held, was organized as
measure of ''self-defense to meet ag-
gressions" by the American Newspa- /
per Publishers Association which was
described as being a buyers trust !"
The American Newspaper Publishers |
Association was responsible for the |
tariff on print paper being lifted. as
affecting importation from Canada |
John b. Stanchfield of counsel for the
defense asserted, and as the cost of
manufacturing paper in the United
States is greater than in Canada. "the
manufacturers thought they were jus.
titled, he said. in taking reasonable
protective measures.