Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-16
S2O,ODQ,0OO OFFERED
FOR BOSTON POST
Grozier, Editor, Says Would
Be Purchaser Claimed
Power Backing.
Continued From First Page J.

subsidiary of the paper and power COM
pany, could have an outlet for its news
print paper production.
"GrauStein despite my feeling that it
would damage the New England Power
| Association, felt he should go ahead
with the newspaper investments, :"
Comerford added.
Comerford said that as he was re-
| SponSibie for the actions of the power
| association, he felt that the interest in
! the Boston papers (the Herald and the
| Traveler) would be bad thing for
u.s."
He added that he was not so much
! interested in the acquisition Of interests
In newspapers in other sections of the
country, and under questioning said he
| didn't know whether any other power
companies had financial interest in New
England newspapers.
Fair Treatment by Press.
Comerford testified that the New
| England Power Association has got
fair treatment from newspapers in our
section" but he added that the Boston
Herald and the Traveller have given less
space to the activities Of the power as
ISOLATION than any other newspaper in
| Boston. He said that the power asso-
citation tried to get all the publicity pos
Slole whenever 1t opened up q new hy-
droelectric power project, and this, he
| claimed, was the only type Of contact
OF his association with the newspapers
He testified the power association ad-
Ito sell its appliances" He added that
in 1928 the total expenditure for ad-
vertising was $65,000, although he testi-
ned that the gross revenue of the New
England Power Association for 1929 is
estimated at $40,000,000 He added
! that for the first four months of this
year $1,100 had been spent by the
power association and 1.-The Boston
American got the largest share of this"
Flu Further as testimony by Comerford was
upon the financial relationships be-
tween the International Paper & Pow
er Co. and the New England Power
Association and the International Pa
per Co. He also told of the Massachu-
sets Utilities A2sociateS, which, he
said, was organized by Boston bankers
for financing arrangements of utility
companies. In connection with the
latter organization, he testified that
Philip r. Stockton, president of the
Old Colony Trust Co. of Boston, was a
trustee of the Associates and also was
trustee Of the Boston Herald and
the Traveller voting trust.
Tell Of Negotiations.
Two newspaper publishers-Frank E.
Gannett of Rochester, N. Y, and Sam
uel E. Thomson of Chicago-teStified
yesterday before the commission about
their negotiations with the International
Paper & Power Co. and its subsidiaries
for financial assistance in the purchase
Of newspapers.
Appearing in connection with the
commissions investigation into the In
ternationals financial interest in pa
pers, Gannett testified that he had paid
back 2.781 1880 to the international
Paper Co, subsidiary of the Paper &
Power Co, to free his papers of all OBJ
legations to that concern. ,--,,
Besides listing the $1.630,000 adj
vahced to aid the Bryan homason
Newspapers, Inc, in the acquisition of
the Chicago Journal, Thomson cited
more than score of other large news
papers in the Middle West and South
which he had contemplated purchasing
with the backing of the International
Paper & Power Co.
Thomson is co-owner with John
Stewart Bryan, Virginia publisher, of
the Bryan Thomson Corporation.
The International, however did not
consider the purchase of all the news
papers he listed, Thomson declared.
THE International never gave asSur-
ances or indications that 1t would sup
port the purchase of more than two OF
the newspapers" he said.
Other Papers Owned.
Besides the Journal, he said, the
Bryan Thomson Corporation owns
two other newspapers - the Tampa
tFla) Tribune and the Greensboro
IN. c. Record. He declared there had
never been any attempt of the Inter
national Paper & Power CO; or its sub sub
policies" of any of the newspapers
owned by the Bryan Thomson Co.
He added that the advances of the
International were in the nature of
loan on strictly banking basis.
The third witness, Edwin B. JeffreSS.
president and business manager OF the
Greensboro IN c. News, testified that
William La Varre and Harold Hall. who
purchased four Southern newspapers
with the backing of the international,
had offered him 81 100000 for his
newspapers, but the deal was not con-
Summated.
Hall said there were no power inter- |
ests in back of him, Jeffries testified, |
and asserted that La Varre was a
wealthy young man" who had been |
interested in diamond mines.
Accepts Graustein's Proposal.
Gannett reviewed the negotiations |
leading up to advances made by the |
international concerns to aid him In |
the purchase of the Brooklyn Daily |
Eagle, the Albany Knickerbocker Press, |
the Albany Evening News and the |
Ithaca IN. " Journal-News.
He testified that Archibald r. Grau-
stein. president of the International
Paper & Power Co., approached him in
Mo- orb in CoTtanrhar
a proposal of financial assistance in the
purchases. He added that he accepted
Graustein's proposal as a good business
venture, affording an excellent contact
between his papers and the news print
products Of the company.
IF I had for one moment believed"
Gannett said in statement placed In
with the International Paper Co. could |
possibly involve me with tina so-called
Power Trust would not have touched
one dollar of international money, no
matter how advantageous the circum-
stances i'll which 1t was available TO
me.
Il have, I believe. made it clear that
throughout my life have been opposed
to the exploitation Of public resources,
and specifically water resources, by pub
lie utilities"
Gannett declared In his statement
that i'll his dealings with. Graustein
there had never been any evidence of
any attempt by the International Paper
& Power Co. Ito influence or affect the
editorial or news conduct" of his news
in favor Of either the Power
Trust" or any other special interests.
He added that for himself the ar
with the International en-
abled the obtaining Of funds at rates
lower than from investment bankers,
and for the International Paper Co. it
mos q 0ood Investment &c tha Gappatt |