Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-22
FederaI-OWned Manufacture
ing Plant Urged to End
Alleged Monopoly.
EFFICIENCY OFFICE HEAD
SEES ECONOMY IN PLAN
Representative Treadway of Massa-
chusetts, Whence Material Now
Comes, Leading Opposition.

The proposal of Chairman Wood OF
the House Appropriations Committee to
break up an alleged monopoly held by
Crane & Co., Dalton, Mass, for 90
years for manufacture of distinctive
paper for United States currency by the
erection of a million-dolla Govern
ment-owned and operated paper mill
at the Bureau of Engraving and Print
ing was heard today before the House
Committee on Expenditures in the Gov
eminent departments.
Only Two Witnesses Today.
Representative Wood and Director
. Herbert B. Brown, director OF the united
States Bureau of Efficiency who was
in charge of the investigation ordered
by Mr.. Wood, were the only witnesses
today.
Mr.. Brown has asked that technical
experts from the Bureau OF STANDARDS
and the Bureau of Efficiency who MADE
the studies be called as witnesses TO-
morrow. 1t is probable that winthrop
Murray Crane, head of the Crane Co.,
and others who are opposing this meas
ure will not be heard before SATURDAY
The opposition will be in the charge
of Representative Allen T. Treadway
of Massachusetts. Among those whom
he will present will be Jesse H. Neal,
general manager of the American Paper
and Pulp Association, New York City;
Col. B. A. Franklin of the Strathmore
Co, president of the American Writing
Paper Manufacturers Association ana
president of the Associated Industries
of Massachusetts,; Winthrop M. Crane
and Frederick G. Crane. jr., representing
Crane & Co., Dalton, Mass, and E. H.
Naylor, general counsel.
Gives Two Reasons.
Representative Wood expressed two
principal reasons for this legislation.
First, he said, that the Government has
not been receiving the quality OF paper
-, called for in the specifications. Second,
he declared, that the cost of safeguard
ing the paper money from counterfeit
ing has increased because secret proc
esses for the paper cannot be developed
under competitive bidding. He argued
that the manufacture of this distinctive
paper should be a Government function
lust as much as the printing OF the
currency. He emphasized that it is
unlawful to use this paper for any 9TH
er purpose. &
Mr.. Brown, chief of the Bureau of
Efficiency, stated that the operation OF
this paper mill should be component
part of the manufacture of paper
money and that efficiency and economy
would be promoted by having the mill
located adjacent to the Bureau of En-
craving and Printing.
Mr.. Wood had claimed that there
would be yearly saving of $4,000 in
the cost of manufacture of the paper,
and $4,000 saving annually on trans
portation by express, making total OF
$234,000 a year. This would pay for
the plant within four years, he said.
Defends Government Men.
Representative Schaffer of Wisconsin
insisted that If the Government had
been accepting and paying for de-
livery Of inferior grade some official OF
the Government should be held re-
sponsible Mr. Brown protested that in
this case there was no place else TO
60 for a supply. due to the monopolistic
character Of the contract and the secret
process.
The hearing will be resumed tomor-
row morning.