Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-04

Continued From First Pagt.)
the International Paper & Power Co.
his check on the Chemical National
Bank & Trust Co. for more than
S2,7OO,OO0. retiring all of the Inter-
national investments in the Brooklyn
Daily Eagle, the Albany Knickerbocker
Press, the Albany News and the Itaca
Journal News, which are among the
IL papers controlled by Gannett.
Testimony of Archibald r. Graustein,
president of the International, before
the Federal Trade Commission in
washington last Tuesday was that the
international held investments in GER
tain newspapers totaling $4,000, 900. OF
this. approximately $2,700,000 was in.
vested in securities of four of Gan
nett's newspapers.
Editorial States Policy.
Under a heading international Gu.
OF Gannett Newspapers" the Brooklyn
Daily Eagle today publishes the follow
ing leading editorial:
When Frank E. Gannett, controlling
| the Eagle and Is other newspapers, &C
cepted In perfectly good faith a loan
OF approximately $2,700000 from the
International Paper Co., which acted in
! equally good faith, it was because the
! loan could be had at terms better than
were available in the open money
market
The International did not ask and
| did not receive any voice in the policies
OF the Eagle or any Gannett news
paper. International acquired good
investment secured by collateral in the
form OF notes, preferred stock, and, in
the instances of the Eagle and the
| Albany KnicSerbocker Press and Albany
News, common stock equity of less than
oT
Ithaca Journal-News it received only
| notes. The stock control of every Gan
nett newspaper is in the hands of
Frank E. Gannett and the editorial
control is In the hands of the local edi-
tor.
Received Paper Contracts.
I'm return for the International,
loan-terms, that company received con,
tracts for the paper supply of the Eagle
and the Albany papers. More than one
half of the Gannett newspaper supply
is purchased from others than the In
ternational.
1T was and is Mr.. Gannett's belief
that this was a straightforward, legal
business transaction, which should not
be questioned by any one. Criticism
by the majority of the press of the
Nation, however, is that this financial
association with company which also
sells power may not affect the quality
OF the newspaper involved but could
affect that papers influence with its
readers.
Faith in Press.
1.-THE Eagle has faith in the integrity
of the American press. 1t has faith in
sincerity of those publishers who ac-
cepted international loans as they would
any loan without thought of allowing
an outside influence to affect the policy
of their papers.
The Eagle has no quarrel with critics
who condemn its judgment but it re-
gretS the unwillingnesS of some of ~
contemporaries to recognize an honest
motive.
Mr.. Gannett is the head of Ameri-
cas- third largest group of newspapers.
The absolute independence and integrity
of a Gannett newspaper must never
be in doubt. To that purpose, at a
very considerable cost to Mr. Gannett,
the Brooklyn Daily Eagle, the Albany
Knickerbocker Press, the Albany News
and the Ithaca Journal-News have to-
day delivered Mr.. Gannett'S personal
check for better than 81, 100000 upon
the Chemical Bank g. Trust Co. to
retire every dollar of obligation owing
the International Paper Co. or any of
its subsidiaries and to return to Mr..
Gannett's possession every security held
by the company in any Gannett news
paper.
I'm accomplishing this the cheerIuI
willingness of International TO part
with desirable investments not yet call
able is acknowledged"