CLAIM FOR £5,000,000.

Shannon News, 17 July 1928, Page 3

CLAIM FOR £5,000,000.

GREAT NEWSPRINT SUIT CAUSES SENSATION. | OTTAWA, July 11. * ■y| The huge suit for £5,000,000 filed by William Randolph Hearst, the American millionaire publisher, against nine j Canadian newsprint manufacturers for alleged breach of contract has created a tremendous sensation. Hearst alleges that he contracted with the Canadian Paper Sales Co., which the manufacturers, -'4 for 3,000,000 tons of newsprint to b* ‘ delivered over 10 years, (He wafc personally to receive certain rebates which he says arc noAV denied him. The contract. AA r as made on April 2, „ ” and three Avecks later,,he says, the Ca- i nadians notified him /they declined to proceed. The price ruling in Canada in the last feAv months has been £l3 a ton, Avith a general understanding that there ' Avould be a reduction to £l2 12s on July 1. It is claimed that the selling agency J contracted Avith Hearst on the latter > J basis, Avith a secret rebate of £l. The secret leaked out Avithin a day or two, and the president off the selling ageney Avhich negotiated Avith Hearst was forced to resign when every other publish- ■ er demanded similar contracts. It appears that the paper interests, which are manufacturing 15,000 tons daily, decided it Avould be cheaper to repudiate the Hearst contract ana'take the consequences rather' than face a general demand for a £1 reduction off the £l2 12s. The net result is a tremendous melee and much hard feeling. Nobody knows how much the price will break before •the fight ia finished. j ■ ■■ ; ; 1