Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-10
OWNER OF PAPERS
TEST|F|ES AT QUIZ
Proprietor of Four Southern
DaiIieS Admits Seeking
InternationaI's Aid.

By the Associated Press
William Lavarre. co-owner Of the
augusta, Ga, Chronicle; the Columbia
S. c., Record, and the Spartanburg
S. c., Herald and Journal, testified to-
day before the Federal Trade Commits
sion that he sought financial aid of
the International Paper Co. of his own
accord in connection with loans for his
purchase of an interest in the four
papers.
=: answer to a question by R. E.
HeaIt, U11.:ef commission counsel, as to
how he came to seek aid from the
International Paper Co., Lavarre re-
piled:
Il suggested it to myself after had
heard about their financing OF the Chi
He added he thought it was "a logical
tie-up between newspapers and paper
company"
Conferred With Officials.
In November, 1928, he declared, he
conferred with Graustein and Joe Scar
ing. vice president in charge OF sales
of the International Paper Co., and
Mr.. Head, vice president and business
manager of that company, before he
made a second trip South, seeking TO
buy newspapers.
said, My own reaction was that he
was paternaIly interested in two young
men going out to buy newspapers. He
had the cash and we the idea"
Mr.. Lavarre testified prior to the ne
Cotiations with Graustein he had met
Harold Hall, who was then business
manager of the New York Telegram,
and they had agreed on the IDEA TO
purchase Southern newspapers.
Firm Held Notes of Two.
It previously had been testified before
the commission that the international
PAPER Co. held notes of Hall and La
yarre totaling $685., 600, secured by the
stock of the four newspapers.
Lavarre testified that in making the
second Southern trip in November,
1928. he and Hall had an arrangement
by which the International Paper Co.
was to pay expenses. He testified that
the company did not pay Hall and him.
self salary, but they paid 1t to them
selves from funds advanced by the
paper company.
Lavarre said before they took the
trip they received a check of SIS 900, adj
vanced by the attorneys for the paper
company, about November 10. He added
he received two other advances later,
one a Geographic deposit of $4,000 to
III I'LL AuSuSOd, A1d'y OcAA1hS
and another $4,000 advance.
Signed No Receipts.
He added he did not sign any receipts |
for these advances, but did acknowledge
them in letters, and these funds were
charged to the open account of Hall
and himself with the paper company.
In his testimony, Lavarre related sew |
eral unsuccessful efforts to purchase
Southern newspapers. On his first trip
South In September 1928, he said he
and Hall and Mr. Dewitt, New York
newspaper broker, visited 3. H. Pease,
publisher Of the Greenville, S. c., News,
and the Piedmont, but Pease would not
consider the sale.
In Asheville, Lavarre testified, he con-
ferred with the owners of the ASheville |
Times and the Asheville Citizen and
suggested purchase prices for the two
newspapers, but made no deal"
Studied Two Other Papers.
In Charlotte, N. c., Mr.. Lavarre said
he also talked with the publishers of the |
Charlotte Observer and the Charlotte |
News but made no offer for these news |
papers.
tavarre testified that he negotiated
the purchase of his first newspaper, the |
Augusta, Ga, Chronicle, on January ID, |
4dSbs he aOQ6Q ne flaQ negOClaVeQ IOE
the sale Of this newspaper through T. J.
Hamilton, its former publisher, and now
its editor.
Asked whether the International
Paper c. supplied all the money paid |
for this purchase, Lavarre replied /
affirmatiyely and said that the COM
pany had loaned him the funds en-
notes secured by the stock of the news
paper.
Earned $4,000 Year.
''The stock of the newspaper has been |
morally turned over to the Interna-
tional Paper Co.." Layarre said, "but |
the stock is physically in a safety de-
post vault in the Chase National Bank |
Of New York" He added that the stock |
certificates of the newspaper had not |
been assigned or delivered to the inter-
national company.
Commission Counsel Healy cited an |
item of $3.50 paid monthly to each of |
the two men, which was mentioned in |
correspondence between Hall and La
varre and the International Paper Co. |
Lavarre said, MY earning capacity has !
been between $4,000 and $4,000 a |
year."