Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-11
LAVARRE EXPLAINS
PAPERS PURCHASE.
Denies Power Company At
tempted to Influence or Die
tate Editorial Policies.

By the Associated Press.
The Federal Trade Commission. in
vestigatirg the International Paper &
Power Co.'S interests In newspapers
had before it today testimony and e3-
hibitS introduced to show that the cor
roration made no attempt to influence
editorial policies Of four Southern pa
pers acquired through a loan Of $780,
600 from its subsidiary, the Interna-
tional Pep-r Co.
The testimony and exhibits were put
into the record yesterday by william
Lavarre, who. with Harold Hall. OBJ
teined the loan after the conferences
with Archibald r. Graustein of Boston.
president of the International Paper &
Power Co., and officers of the subsid-
larry. and used it in the purchase of
the Augusta, Ga, Chronicle; the Column
bia, S. c.. Record and the Herald and
the Journal of Spartanburg, S. c.
Testifying that he regarded the loan
as "a proper tie-up between newspapers
and news print paper company" La
varre said the company had made no
effort to influence editorial policies. He
and Hall both asserted that they planned
TO place the newspapers on a profitable
basis, then put them all together and
issue bonds and preferred stock and
pay off the International Paper Co."
To show the caliber of men who are
editing the papers, Lavarre produced
a telegram from Charles o. Hearon. edi-
tor of the Herald and the Journal at
Spartenburg and supervising editor of
the other two. and letter from Fitz-
hugh McMaStsr, editor of the Column
bia Record. Both were received. he
said, after the present investigation
began.
Resignation Threatened.
The Hearon telegram said that II
the papers ARE owned or controlled by
the International Co., I am hereby
rendering my resignation as editor-in-
chief of the Spartanburg Herald and
the Journal and supervising editor Of
the Columbia Record and the Augusta
Chronicle" The McMaster letter stated
that he would not have accented the
editorial pos: ion on the Columbia Rec
ord 4 he hal understood it was owned
or controlled il an way by power COM
panies or pubic utilities.
Both editors, Lavarre testified, had
been assured that the international Co.
did not control the papers and had re-
NAMED in their positions.
$4,000 loan completely financed their
purchase of the four papers.
Sought Dozen Others.
The loan was made on notes given
by them to the International Paper &
Power Co.'s subsidiary, the international
Paper Co., and the notes were secured
by the newspapers stock.
He said he and Hall had made one
trip through the Southeast inquiring
about buying newspapers before they
approached the international concern
and that after the loan was negotiated,
they made other trips through that Sec
ton with the expenses paid by te In
ternational.
In addition to the purchased news
papers, Lavarre testified that he and
Hall had approached or made pro-
posals concerning more than q dozen
other newspapers in the South, but no
deals were contaminated. He mentioned
some papers for which unsuccessful ne
gotiations were made as the Greensboro,
II. c., Record the Asheville, N! c.,
Citizen and the Times; the Charlotte
N. c., News and the Observer; the RAJ
leigh, N. c., Times: thu Macon, Ga,
quire Sun, and the Atlanta Constitu-
ton.
He added that they had carried on
negotiations in Charleston, S. c.; Sa-
vannah, Ga; Bristol. Va.-Tenn., and
johnson City and Elizabethton, Tenn,
but he did not name the newspapers in
those cities.
Lavarre testified that he and Hall had
negotiated for several newspapers at
the same time as the Bryan Thomson
Newspapers, Inc, which also had been
financed by the International Co.'S in
the buying of newspapers, were making
offers for. the properties. After this was
ascertained, he added, his firm with
drew from the negotiations.