The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-04-13
INDLCT
MAKERS
OF PAPER

New York. April IS. Six paper
manufacturers and a bank nave been
indicted by the federal grand jury here
on q charge OF controlling 55 per cent
Of the news print paper production OF
the country.
Five of the manufacturers constitute
the executive committee of the news
print paper manufacturers associa-
ton whose secretary. Geo. F. Steele,
the indictment saws. was not named
as a defendant in view Of the fact
that he appeared as a witness before
the grand jury.
The men indicted are Geo. H. Mead,
George Chahoon. ir.. G. H. P. Gould,
Frank J. Sensenbrenner and Alexander
Smith. a Chicago banker.
Mead is chairman Of the executive
committee of the News Print Paper
Manufacturers association and presi-
dent of the Spanish River Pulp and
Paper Mills, the Lake Superior Paper
Co. and of the G. H. Mead Co: of Day
ton, o. The concerns Of which Mr..
Mead is president or of which the G.
H. Mead company is selling agent
have a daily output Of approximately
go tons of news print paper, 1t is
alleged.
Dodge is president of the Interna-
tional Paper Co, with a daily produc-
ton of 1900 tons and an unused cap
acity of 500 tons more.
Backus is president Of the Mime
sofa & Ontario Power Co., and the
Fort Francis Pulp and Paper Co., with
a capacity of $50 tons.
Chahoon is president of the Lauen-
tide Co. and manager Of the Canada
Export Paper Co., a selling company
alleged to control the sales between
the Dominion Of Canada and the
United States, with an aggregate out
put of 500 tons a day.
Gould is president Of the Gould
Paper Co. the Donnacona Paper Co.
and formerly of the st. Regis Paper
Co., controlling an output Of $50 tons
day.
Sensenbrenner is vice-president of
the Kimberly Clark Co., said to con-
troll an output Of 81 tons daily and
facilities for 145 tons more.
Smith is described as leading
banker in the United States in the
f1otation and sale of the securities or
news print manufacturing companies
interested largely in the Minnesota &
Ontario Power Co., the Spanish River
Pulp and Paper Mills, Ltd, the Lake
Superior Pulp and Paper Co.. and the
Abitibi Power and Paper Co.
All but the last two are members
of the News Print Manufacturers
association executive committee.
The investigation it was stated by
cambridge Colby. who served as spe-
cial assistant to the United States
attorney general in association with
Mark Hyman, 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 agree
ment in respect to prices.
THE grand jury has not sought to
include in its arraignment the corpo-
rations and individuals constituting
the entire membership of the industry
but has charged specifically the in
dividuals regarded as the originators
and directors of the alleged illegal
combination and conspiracy.
THE prices charged by members or
the association are greatly in excess
of prices which independent producers,
even under war conditions, are content
to receive. There has been a relative
slight advance in the cost of material
entering into the manufacture of news
print paper but nothing comparable
to the advance in prices which has
been made through the concerted ac-
ton of the members of this comPina-
ton and under restricted competitive
conditions brought about by the assoc
citation whose purposes and methods
are now directly challenged by the &C
ton 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 news
papers is put at $500 tons in Canada
and the United States with a value of
$3.50, 900. OF this, amount it is alleged
5, 500 tons were controlled by As
specified companies, whose trade the
are accused OF engaging in |
q conspiracy to restrain. The defend |
ants and Steele, the association sec |
rotary, it is alleged through the as
ISOLATION and the firms they control, |
carrying on So per cent of the news |
print trade and having facilities to |
carry on SIS per cent, were able to
dominate the business.