The Washington herald., 1917-02-11
GRAND JURY 10 PROBE
ALLEGED PAPER TRUST
Investigation viii Commence This
Week in New York.

Two branches Of the FEDERAL gov
ernm ent-fhe Department ano the
Federal Trade mission--yesterday
announced the initiation OF energetic
steps In the night against the alleged
new print paper trust This com
bination. IL is alleged. is sdreezins the
business life out of small newspaper
publishers by boosting the price Of
paper from ] to 500 per cent and bs
unfairly manipulating supplies and de-
liyertes of paper to the detriment Of
certain publishers.
Attorney General Gregory announced
that Mark Hyman and Bsinbridee Col
by have been retained as special assist
ants TO the Attorney General TO con-
duct grand jury investigation IN New
York City. beginning this week. with
" wv to bringing indictments against
the heads of the paper trust IL 10 hint
ed that criminal prosecution of heads
OF the trust will follow
The Federal Trade Commission an
nounced the retention of Francis J.
Heney. OF Los Angeles, as an expert m
vestigator In charge OF the general eco
nomic inquiry being conducted by the
commission. The commission said Its
preliminary report on the news print
paper situation has been delayed owing
TO the illness of Commissioner Davies.
but that II will be presented 10 Congress
early this week
Data Already Obtsfsed.
Much data already has been turned
over TO the Department OF Justice for its
use in connection with the grand jury
investigation. II was announced. and such
further evidence as may be turned up I'm
the course Of Mr.. Heney's investigate tion
viii be given the Attorney Generals a.
sistsnts. The statement issued BY the
commission last night reads:
Francis J. Heney. OF Los Angeles,
Cal. has been engaged for some time
under special employment by the com
mission on an exhaustive inveetlga-
ton OF the news print paper situation.
Mr.. Heney will continue his work Wig
orously. The report of the findings of
the commission has been delayed by
the Illness Of one of the commissioner,
but will be made TO Congress early In
the coming week. This WIN not com
plete the work Of the commission. but
win set forth findings and recon-
mendations based on data gathered 20
date.
The Federal Trade Commission has
had corps OF Investigators az work
on the news print situation for sew
eral months past and mass of ma
terisl has been gathered II has been
tremendous task, but has been done
efficiently and expeditiousiy The bulk
OF this data was turned over TO the
Department of Justice several weeks
ago. and further data Will be supplied
as fast as IL is secured and coilated-
National Reputation.
Mr.. Heney has a national reputation
as lawyer and Investigator. and sue
cessfully prosecuted the Oregon lane
fraud and the San Francisco graft cases
Evidence already in the hands Of the
department, gathered part by the com
mission and in part by the department.
own staff, is alleged to indicate the exis-
tence OF a combination In restraint Of free
and open trade in the news print paper
market A collection of letters submitted
TO tire government by H b. Warner, a
publisher OF Lexington. n. C., is declared
TO show the big paper manufacturers Of
the country conspire to tx prices Pub
lish rs opposing the paper trust are de-
clared TO be Disseminated as1inst by the
manufacturers TO the extent Of having
their paper supplies cut Of
The report to be submitted by the Fed-
eral Trade Commission this week wfn b.
preliminary. Yesterday the Inquiry
scope took on a wider aspect. and befor.
the work is completed all legal ana ecrS-
nomic phases Of IL will be thraxhed cuf
according 70 the officials.