Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-30
International Company Head
Testifies Before Federal
Trade Commission.
PURCHASES WERE MADE
FOR OUTLET, HE SAYS
Holdings of Varying Amounts in
Various Sections of Country,
Graustein Relates.
BY the Associated Press.

The holding of stock in 13 newspapers
in various sections of the country was
testified to today by A. r. Graustein
of Boston, president of the Internation-
al Paper & Power Co., before the Fed
eral Trade Commission.
Appearing before the commission as
a witness in its inquiry into the recent
purchase Of the control of stock of the
Boston Herald and Traveller, Graustein
related the negotiations for these news
papers and also purchases of stocks in
other newspapers.
He named as the other newspapers in
which the company had purchased stock
OF varying amounts: The Chicago
Daily News, the Chicago Journal, the
Tampa, Fla, Journal the Tampa Fla.
Tribune; the Greensboro, N c., Record );
the Albany, N. Y, Kniekerbocker
Press; the Albany, N. Y. Evening News;
the Brooklyn Daily Eagle. the Spartan
burg, S. c., Herald-Journal; the Column
bia, S. c., Record: the Augusta, Ga,
Chronicle, and the Ithaca, N. Y,
Journal-News.
Oyertures for Cleveland Stock.
Graustein also testified that the
purchase of stock in the Cleveland Plain
Dealer, but that 1T did not go
through"
He testified the purchases of stock
we're made to get outlets for the news
print paper produced by the Interna-
tional Paper Co., subsidiary of the
International Paper g. Power Co.
In connection with the purchase Of
stock in the Chicago Daily News, Grau-
stein said it amounted to about $3.50, 900
worth of preferred stock. or 4 15-10O
per cent of the total outstanding pre-
ferred stock Of the newspaper, and
5000 shares of common stock. amount
ing to about per cent of the common
stock,
He said that he bought the stock
personally from Walter Strong, the
Daily News publisher, about the time
the late Victor Lawson. He added that
the Daily News was sold at a price be-
tween $l0000.0e0 and $15.000.000 and
Strong had to finance this transaction
by the selling of stock.
s1,6OG, zoo Journal Holdings.
The company had $500. 900 worth of
preferred stock and 10000 common
stock shares. he testified, in the Chi
@GaRO tpLd1 OL FI,-
100000. He added this amounted to
about one-third of the total stock of
the Journal.
He said that In regard to the Knick-
erbocker Press and Evening News of
Albany, $450,000 worth of stock of
these newspapers was owned by sub
sidiary of the International Paper Co..
the International Securities Co.. which
is an affiliated concern of the Interna-
tional Paper & Power Co. and the
Piedmont Press Association, Inc. a
subsidiary of the securities company.
An interest in the Brooklyn Daily
Eagle amounting to about 80 per cent
OF the total stock. Graustein testified,
was held by the Piedmont Press Asso-
citation, Inc. He added that the pur-
chase of this stock was negotiated by
him when he discussed with its pub
Usher, Frank E. Gannett of Rochester.
N. Y. the newsprint contract for 1929.
Graustein said that Gannett told him
he was planning Ito buy some more
newspapers and asked if the Interna-
tional Paper Co. would help in the
financing"
Graustein did not go into details
about the purchases of the other news
paper stock.
Testifies on Herald Deal.
In regard to the negotiations for the
stock of the Boston Herald and Trav-
eler Graustein said the first steps were
taken in May, 1923, with Sidney W.
Winslow, jr.. a director of the Boston
Publishing Co, which publishes the two
newspapers. After some questioning by
Robert E. Healy, chief commission coun-
sell as to the price paid for the Herald
Traveller stock, Graustein said the
price was S525 share for a total of
i0.248 shares.
An exhibit placed in the record
showed that the International Paper
Co.'S interest in the Augusta Chronicle,
Columbia Record and Spartanburg
Herald Journal amounted to 1855 900 in
notes, secured by the stock of these
newspapers.
Graustein appeared after Robert
Lincoln O'Brien, former president of
editor of the Boston Herald. and James
Garfield, secretary of the Boston Pub
fishing Co. had related the negotia-
tions by the International Paper S5
Power Co. leading up to the purchase Of
the control of stock in the Herald and
Traveller.
Telling OF the transaction, O'Brien
testified that Sidney w. Winslow, jr..
Boston attorney. and director of the
publishing company. started negotia-
tions on behalf of the paper company
with the Herald-Traveler stockholders
five months prior to the sale of the
stock which was completed in January.
1929.
He added that Daniel G. Wing of
CONTINUED on Page 2. Column 81