The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-04-13
Warrants Are Sworn Out
for Six Paper Makers
and One Banker.
CONTROL THE TRADE
Regulate IS Per Cent Of
Production and Have
Caused Unjust Prices.

New York, April l2.-Charged with
controlling IS per cent Of the news
print production of the country and
using their power in restraint OF trade
in violation of the Sherman ANTITRUST
law. six paper manufacturers and
banker prominent in financing news.
print paper companies were indicted
by the federal grand jury here today.
Five Of the manufacturers constitute
the executive committee of the News
Print Paper Manufacturers associa-
tion whose secretary, George +. Stele,
the indictment says, was not named
as n defendant in view of the fact that
he appeared as witness before the
grand jury.
The men indicted are George II.
Mead. Phillip T. Dodge. Edward Back
us, George Chahoon, Jr., G. II. p.
Gould. Frank J. Sensenbrenner and
Alexander Smith, a Chicago banker.
All but the last two are members
of the Newsprint Manufacturers as
ISOLATION executive committee. Bench
warrants for the defendants were is
sued and bail fixed at $4,000.
Ne~sprint Combination.
The investigation. it was stated by
cambridge Colby, who served as spe-
cial assistant to the United States at
toney general in association with
Mark LYMAN, assistant attorney gen.
eral. was undertaken by the depart
ment of justice in February lat the
request of the federal trade commits
sion" Subsequently the commission
and the manufacturers reached an
agreement in respect to prices.
The federal trade commission in its
preliminary report to congress said
that there existed a newsprint COM
bination in restraint of trade and
while there was no actual shortage
in newsprint paper, a very delicate
equilibrium between the available
supply and the demand had been
brought about artificially in the trade
Mr.. Colby said. The grand jury as
the result of its independent investi-
cation has in effect reached the same
conclusion and has Indicted the men
whom it regards as responsible for
these conditions, brought about, in its
opinion. through a violation of the fed
eral antitrust laws.
Original conspirators.
THE grand jury has not sought to
include in its arraignment the corpora =
tons and individuals constituting the
entire membership of the industry. but
has charged specifically the individu-
ais regarded as the originators and
directors of the alleged illegal COM
bination and conspiracy. The prices
charged by members of the associa-
ton are greatly in excess of prices
which Independent producers, even un-
der war conditions, are content to re-
ceive. There has been a relatively
slight advance in the cost Of materi-
ais entering into the manufacture OF
news print paper. but nothing compar-
able to the advance in prices which
has been made through the concerted
action of the members of this COM
bination and under restricted competi.
tive conditions brought about by the
association. whose purposes and meth
DDS are now directly challenged by the
action OF the federal grand jury"
The indictment states the inquiry
covered the period since December
1914. The total daily output of news
print paper. chiefly used by newspa-
pers. Is put at 6.40O tons in Canada
and the United States with a value OF
$250.O00. OF this amount, it is al
legged. $500 tons were controlled by a
specified companies, whose trade the
defendants are accused of engaging in
conspiracy to restrain. The de-
PENDANTS and Steele. the association
secretary. it Is alleged, through the as
ISOLATION and the firms they con
trolled. carrying on IS per cent of the
ncwsprlnt trade and having facilities
to carry on 65 per cent. were able to
dominate the business.