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Show DEPARTMENT OF JUSTICE AFTER ALLEGEDTRUST Attorney General Gregory Takes Up Federal Trade Commission's Inquiry Into Print Paper. GRAND JURY MAY BE CALLED TO INDICT Evidence Will 3e Carefully Sifted in Order to Avoid Injustice to Manufacturers Manufactur-ers Innocent of Wrong. WASHINGTON, Jan. 4. Attorney General Gen-eral Gregory today took over the yield of the federal trade commission's inquiry ! Into the print paper market with a view t to determining whether there is a paper trust, and to Instituting civil and criminal proceedings against manufacturers or others who may have violated the antitrust anti-trust laws. President Wilson is understood to be following- the inquiry closely. A mass of complaints and testimony and a large number of secret reports from the commission's com-mission's field force of investigators have been placed in the attorney general's hands. For several weeks past department of justice officials have been in frequent consultation con-sultation with the trade commmission on the situation and are understood to have under serious consideration the early institution in-stitution of grand jury proceedings at which indictments charging violation of the criminal section of the law will be asked. Inquiry Taken Over. The formal taking over of the inquiry by the department today was in response to the following letter sent the attorney , general by Secretary Bracken of the com- j mission: j "As you know, the federal trade com- ! mission, pursuant to resolutions of the senate, has been conducting an inquiry into conditions in the print paper market. mar-ket. "The commission is of the opinion that the inquiry lias now reached a stage where the further co-operation of the department de-partment of justice would be advantageous." advan-tageous." The attorney general replied: "The department will at once take up the matter and to that end I will have attorneys of the department meet with the commission or with attorneys of the commission, as may be desired, and go over the data already collected as a basis for determining what further steps to take. "I know, of course, from what has already al-ready been brought out, that a serious condition exists in this trade and that any remedy which the law may afford should be applied at once." Prepared to Act. Beyond asserting that the investigation and any action the department might take would be hastened as much as possible, Mr. Gregory declined to comment on the situation. Tt is understood, however, that department depart-ment officials are prepared to institute speedily a dissolution suit against any manufacturers within federal jurisdiction who are believed to have conspired in restraint re-straint of trade or to effect a monopoly. At the same time it was made clear that the evidence adduced by the commission would be thoroughly digested so that no injustice might be done manufacturers innocent of illegal praciices. In addition, department officials are understood un-derstood to be preparing to ask for criminal crim-inal Indictments should analysis of the evidence warrant such action, and it is believed the criminal proceedings, if undertaken, un-dertaken, would be pressed ahead of the civil proceedings. Officials say they are handicapped by the fact that "more than half of the print paper consumed in the United States is produred in Canada by manufacturers who would be outside the jurisdiction of American Amer-ican courts in any proceedings that might be deemed advisable. This condition, however, would not apply to American agents of such manufacturers. Will Report to Congress. The trade commission's investigation was conducted in response to a congressional congres-sional resolution and a report to congress will be made within a few days. The investigation in-vestigation went Into American and Canadian Cana-dian paper mills for cost of production and profit figures, and at open hearings the commission sought to ascertain if a combination had been formed to control prices. Publishers charged at the hearings that the manufacturers had coivThined both to control prices and to restrict production. Some testified that manufacturers had refused re-fused to sell to them because of their activity in exposing the manufacturers" methods. Others declared they had been threatened with such, refusal by manufacturers. manu-facturers. Paper manufacturers terminated the final trade commission hearing suddenly a little more than a week ago when they refused to discuss figures gat lie red by the commission bearing on costs and profits. They explained they had not had time to study the statistics and probably prob-ably would not have for several months. The commission still has under consideration consid-eration a plan proposed by manufacturers for distribution of the available paper stock under supervision of the commission. |
