Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-27
.NEWsPR|NT PAPER TRUST
FORMALLY IS DISSOLVED
Held as Unlawful Combination in
Restraint of Trade In Viola.
ton Of Sherman Act.
GOVERNMENT GIVES ASSENT
Defendants Counsel Say Accused
Men Accept Decree Because Of Pa.
triotic Motives - Federal Trade
Commission to Fix Prices.
rBy Associated Prsss.1

by hSsoci6tod pTess.I
NEW YORK. November 2S.-With
tho assent OF the government. the
Newsprint Manufacturers Association
which represents about 50 per cent OF
! the print paper publication OF the
/ United States and Canada. was dis.
solved to-day as an unlawful combi-
nation in restraint OF trade in viola
ton OF the Sherman antitrust act.
Under this decree, signed By Federal
Judge Mayer, and which the defend
ants counsel said was accepted by the
/ accused men because OF patriotic mo-
! tivcs and desire not 90 cmbarrass the
government while engaged in war. evil
denco will be adduccd before the Fed
cral Trade Commission with view to
paper prices being fixed by the COM
mission.
! Pending tho commissions decision,
| which. under the decree, may be re-
! viewed by the Federal Circuit Court Of
I Appeals here, the price OF paper IL
/ fixed at cents pound. This con-
tract. OF which tho United States At
torncy- General is the trustee, is under
stood TO be satisfactory to the Amer
! lean Newspaper Publishers Associa-
/ ton.
! THnEE-CENT PRICE TO
; PREVAIL UNTIL APRIL
Under the decree. the scent price
will prevail until April in the case
/ Of some OF tho individual and corporate
I defendants. and until January / in the
case of others. Tho price finally fixed
! by the Federal Trade Commission will,
! IL is understood, be for tho period OF
! the war. Fivd OF the seven individual
defendants and all but a few of tho
corporate defendants accused under the
indictment returned last April entered
pleas to-day OF "nolo contcndere."
The fyc individuals who thus refused
TO carry the case to trial arc George
H. Mead. Philip r. Dodge, Edward W.
BHckus, George G. Chahoon, Jr.. and
Frank j. SenSenbrcnncr. The first four
of these individuals were fined $1,000
each. and Scnscnbrcnncr was fined
$1,000.
u. II. L. Gould pleaded not guilty.
AZ the suggestion Of Federal counsel,
" no said government investigators had
not uncovered sufficient evidence to
warrant trial. the !ndictmect against
him was dismissed.
Alexander Smith. a Chicago banker.
the seventh individual defendant, is
engaged In Rcd Cross work in France
lie was allowed until January TO
plead
/ ACCUSED OF COMPLETE
MoNoPOLIsTIC ARRANGEMENT
The defendants were accused Of ere
atins complete monopolistic ar
ranEcmcnt' whereby, prices were fixed,
the country divided into geographical
districts for trade purposes, new mills
: suppressed to avert competition and
: propa ganda sent to newspaper pub
( fishers indicating Increasing manufac-
turing costs at time when, accord
ing to the government. it was actually
lower than it had been in previous
I months.
Counsel for the defendants asserted
they had not consciously viola cd the
spirit OF the letter OF the Sherman Law.
The association, tho attorneys held. was
organized AZ measure OF self de
tense. TO meet aggressions" by the
American Newspaper Publishers Asso-
citation. which was described as being
buyers trust" The American News
paper Publishers Association was re-.
Spona!ble for the tariff on print paper
being lifted. as affecting importation
from Canada. John Z. Stanch:ield OF
counsel for the defense. asserted. I'd
as the cost OF manufacturing paper In
the United states is greater than that
IN Canada, the manufacturers cons.d-
cred they were JUSTIFIED, he said. in
taking reasonable protective measures.