Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-01
POWER OFFICIAL
DENIES PRESSURE
Graustein Ends Testimony on
Newspaper Ownership Be-
fore Trade Commission.

~SA&@e-@AAAG S~N~N~A@@$-~N
Federal Trade Commission late yes
terday at its hearing into the recent
purchase Of the control Of stock of the
Boston Herald and Traveller. A. r
Graustein Of Boston, president Of the
International Paper a. Power Co, said
no efforts have been made to influence
editorial policies of the papers his
company and its affiliated concerns
had become interested in.
He told the commission that his COM
pany and its afiliated concerns had pur-
chased stock in IS newspapers in vari-
Gus sections of the country, explaining
the company's stock holdings in news
papers were procured to OBJ, ain outlets
for its news print paper products. The
international Paper Co. Is subsidiary
of the International Paper & Power
Co.
Graustein testified that his company
never had sought the control OF the
Boston Herald and the Traveller, al
though it had purchased so per cent OF
the stock. At the time OF the stock
purchase, he added. the company
created a voting trust which effectively
prevents 1t from exercising its voting
rights of stock for the control of the
publishing company.
He said the trustees of this voting
trust are Sidney w. Winslow, jr. OF
Boston, president of the United Shoe
Machinery Co and director OF the
publishing company, John r. Macomber
Of Boston, a director of the 1nterns-
tional Paper e. Power Co. and direc-
tor in several other public utility con-
Germs, and Philip Stockton, PRESIDENT
Of the Old Colony Trust Co. OF Boston
and a director Of the General Elec-
tric Co.
Denies Other Purchase Efforts.
crsustein denied that his concern
ever had made an effort to purchase
either the Boston Globe or the Boston
Post.
Usher of the New York Herald Tribune.
to the best of his knowledge, was the
only director of a newspaper" who was
q director Of the international Paper q
Power Co.
An exhibit placed In the record cited
the stock holding in newspapers OF the
Paper g. Power Co. and its subsidiaries
chicago Daily News. s2so.ooo in pre-
ferred stock and 5000 shares Of COM
mon stock.
Chicago Journal. 81 ,O00. 900 Of deben-
lures and $500, 900 Of preferred stock
of the Bryan Thomson newspapers,
inc, and 10000 shares Of the common
stock of the Chicago Journal
The Bryan Thomson Newspapers,
Inc. also owns the Tampa, Fla,
Tribune and the Greensboro. N. c.,
Record.
The Albany, N. Y, Knickerbocker
Press and the Albany Evening News
rke mn Ne
mon stock shares.
BOSTON Herald and the Traveller,
1928 shares of common stock pur-
chased at S525 per share.
Brooklyn Daily Eagle, Si,S54,SoO IN
notes and 900 shares of common stock.
Augusta. Ca. Chronicle; Columbia,
q. C.. Record and Spartanburg, 3. C.,
Herald journal, through Hall and
IAvarre, Ss55,O0o In notes secured by
the stock Of these newspapers.
La yarre Issues Statement.
A contingent interest in the Ithaca,
n. z, Journal News, 100000 IN no0eS.
William La Varre, who with Harold
Hall publishes the Georgia and South
Carolina newspapers mentioned In the
testimony, issued q statement here, In
which he said the transaction was sole.
" for the purpose of raising capital ana
the four newspapers will be the same
as ever--independent."
He added that he had signed the note
for the loan with the international
Paper Co. last Friday. In no way, ne
said, would the news and editorial col
unns be influenced by the transaction.
In q statement issued following the
Trade COMMISSIONS hearing, Graustein
said that the interest purchased by the
international Paper Co. in the Boston
Herald and Traveller was to remedy the
heavy decline In the news print business.
which had resulted in serious clirtall-
ment In the company's production. BY
the stock purchase the paper company,
he added, secured a very large Gus
toner at a time when it was IN very
serious need of business"
Says Agreement Reached.
eat the outset of the negotiations, he
continued, cit was Immediately agreed
both that the Herald did not want the
international to have any say about the
news or editorial policy and that the
International did not want to have any
say ON either point"
He said o situation exists In England
where by the news print capacity and
consumption is interconnected through
> community of financial interests. In
this country, he added, 1.-The competi-
tors of the International have assisted
in the finsncing Of newspapers.
1.-THE International has no right. abil-
itv or desire" he concluded, lin any
way to influence the news or editorial
policy in any newspaper in the whole
country. The international feels that
1t would be unwise policy from the point
Of view of its power property TO adopt
any other policy and public sentiment
generally, we believe, supports that
viewpoint"