Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-15
THOMASON AYERS
POWER FIRM OWNS
STOCK |N3PAPERS
Publisher Tells of Conferences
Discussing Purchase of
Dozen Others.
RECEIVED COMPANY'S
BACKING IN CHICAGO
Trade Commission Probe Witness
Says Reading Public Got No
Information" About Deals.

BY the Associated Press.
Testimony that he had discussed with
officials of the International Paper &
Power Co. during the Summer of 1925
proposals for the purchase of more
than dozen newspaper properties was
given today before the Federal Trade
Commission by Samuel E. Thomason of
Chicago, co-owner of the Bryan -Thom-
ason Newspapers, Inc.
Mr.. Thomson in his testimony men,
toned the st. Louis Globe Democrat,
the Columbus COhio) Dispatch, the
Kansas City Star, the Milwaukee Jour-
nal, the Detroit Free Press, the Cleve-
land Plain Dealer, the Cleveland News,
the Newark IN. j. Evening News, the
South Bend (IndD News Times, the
Philadelphia Inquirer. the Indianapolis
News, the Minneapolis Star, the Buffalo
Times, 1.-The Booth papers in Michigan
and the Star League newspapers in In
diana"
Thomason, co-owner of the Bryan
ThomaSon Newspapers. Inc, which pub
lish the Chicago Journal, the Green's
boro, N. c., Record and the Tampa,
Fla, Tribune, also testified that the In
ternational Co. and its subsidiaries
owned all of the million-dollar debenture
bonds and all of the $500, 900 preferred
stock issue of his corporation.
Questioned by Robert E. Healy, COM
mission counsel, why he did not in
clude mention of the International's in
terest in the Journal in the post office
statement of April /, Thomson said:
"I think did a stupid and foolish
thing. because 1t gave the appearance
of hiding the International's interest.
"I had advised my competitors in
~ ha
publishers group of the International's
interest and had discussed It freely with
them"
He added he had told Merrill C..
Meigs, Chicago Hearst publisher, Robert
r. Mccormick of the Chicago Tribune;
Walter Strong of the Chicago Daily
News, and John c. Shaffer, Chicago
publisher, about the deal as it was being
negotiated.
The interest of the international in
the journal, he said, was loan from
. paper company, based on the selling
of newSprint of an aggregate value of
$3.50, 900 and was better deal than at
a bank" He declared the best test of
any newspapers control under any cir
cumstances and at all times is the
daily columns of the newspaper"
In support of his statement he placed
in the record as an exhibit the f1les
of the Chicago Journal from June ],
1928, to date, which he said would show
mot only opposition to the insult in
terests," but support of the present
Federal Trade Commissions inquiry.
Nobody in the International has made
suggestions concerning the editorial
policy Of the Journal, Thomason con-
tinued
"A newspaper has to talk honestly to
its readers if 1t wants to keep them,
he said THAT is standard practice. "
He added 1t was not only entirely
papers columns would reflect nothing
of any views of any corporation which
might hold a large part of its stock.
ThomaSon concluded his testimony
at the morning session and Frank e.
Gannett of Rochester, N. Y, newspaper
publisher, was called to testify at the
afternoon hearing.
Received Company's Backing.
Thomason. the first witness at to-
DAYS hearing, testified he and John
Stewart Bryan, Richmond newspaper
publisher, had purchased the Green's
boro and Tampa newspapers before their
transaction with the International Co.
but had obtained the financial backing
of the International in the purchase OF
the Chicago Journal.
Thomason testified that upon his
suggestion, and because he wanted a
Chicago stockholder named, the 10000
shares of common stock in the Journal
held by the International were held in
the name of william A. S. Mulligan. a
Chicago attorney.
The witness also said he had in
formed a meeting of the news print
committee and directors of the Ameri-
can Newspaper Publishers Association
about the transaction.
The reading public got no informa-
tion about it." Healy commented.
Earlier today Thomson testified he
IContinued on page . Column 81