Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1917-01-05
LEGAL ASPECT OF
PRINT PAPER PRICES



quent consultation with the trade COM
mission on the situation and are I'M
derstood to have under serious cons1d-
Grafton tn eearly institution Of grand
jury proceedings at which ind1ct-
rlents charging violation of the Grim
inaI section of the law will be asked.
The formal taking over of the in
quiry by the department today was
in response to the following letter sent
the attorney general by Secretary
Brackin of the committee
LAS you know, the federal trade
commission, pursuant to resolutions OF
the senate. has been conducting an
inquiry into conditions in the print
paper market
Department of Justice to Act.
'sThe commission is of the opinion
that the inquiry has now reached a
stage where the further cooperation
of the department of justice would be
advantageous"
1.-The department will at once take
up the matter and to that end 1 will
have attorneys of the department meet
with the commission or with attorneys
of the commission, as may be de-
sired. and go over the data already
collected as basis for determining
what further steps to take.
Serious Condition Exists.
ct know. of course, from what has
already been brought out, that ser1-
that any remedy which the law may
afford should be applied at once"
Beyond asserting that the investiga-
ton and any action the department
might take would be fastened as much
al possible, Mr.. Gregory declined to
comment on the situation.
Dissolution Suits May Be Brought.
1t is understood, however. that de-
partment- officials are prepared to in
stitute speedily dissolution suit
against any manufacturers within fed
eral jurisdiction who are believed to
have conspired in restraint of trade or
to effect a monopoly. AT the same
time it was made clear that the evil
dence adduced by the commission
would be thoroughly digested so that
no injustice might be done manufac-
turers innocent of illegal practices.
In addition, department officials are
understood to be preparing to ask for
criminal indictments, should an ana
ton. and it is believed the criminal
proceedings, if undertaken, would be
pressed ahead of the civil procedures
Officials say they are handicapped |
Ly the fact that more than half of the |
print paper consumed in the United |
STATES is produced in Canada by man |
Ufscturers who would be outside the |
jurisdiction of American courts in any |
proceedings that might be deemed ad- |
vis7ble. This condition, however, |
would not apply OF American agents
or such manufacturers
The trade commissions investigation
was conducted in response to con- /
gressional resolution, and a report to
&C ngress will be made within a few
days. The investigators went into
American and Canadian paper mills
for cost Of production and profit fig
ures and at open hearings the commits
sion sought to ascertain if a, combina-
ton had been formed to control
prices.
Intimidation Of Publishers
Publishers charged at the hearings
that the manufacturers had combined |
Goth to control prices and to restrict
production. Some testified that manu-
facturerss had refused to sell to them
because of their activity in exposing
the Manufacturers methods. Others
declared they had been threatened
with such refusal by manufacturers.
North Carolina publishers recently
fled with the department of justice a
charging that manufacturers
had refused to sell to buying organ
Il ough manufacturers previously had
advised organizations to eliminate the
obber. Other organizations of pub +
ishers filed with the trade commits :
sion letters and kilograms TO support =
heir allegations of an illegal combina- :
ion. :
Paper manufacturers terminated the !.
NAL trade commission hearing sudden
y a little more than a week ago when |
fey refused to discuss figures gather
d by the commission bearing on costs
nd profits. They explained they had
rot had time to study the statistics
I'd probably would not have for sew
raj months.
The commission still has under con-
liberation a plan proposed by manu-
acturers for distribution of the avail
bile paper stock under supervision of
he commission.