OUT OF COURT

Sun (Auckland), Volume II, Issue 429, 10 August 1928, Page 1

OUT OF COURT

HEARST LAWSUIT SETTLED CLAIM FOR £5,000,000 (United P.A. —By Telegraph — Copyright) (United Service) NEW YORK, Wednesday. It is announced that Mr. William Randolph Hearst, the American millionaire newspaper proprietor, and the nine newsprint manufacturing companies he recent’v decided to sue for

£5,000,000, have settled all their pending lawsuits out of Court. It is rumoured that Mr. Hearst has secured credits worth £500,000 and favourable future contracts.

Air. Hearst alleged that he had contracted with the Canadian Paper Sales Company, which represents the manufacturers, for 3,000,000 tons of newsprint to be delivered over 10 years. He was personally to receive certain rebates which he said had been denied him. The contract was made on April 2, and three weeks later the Canadians notified him they declined to proceed. The price ruling in Canada for newsprint in the last few months prior to June had been £l3 a ton. with a general understanding that there would be a reduction to £32 12s on July 1. It was claimed that the selling agency contracted with Mr. Hearst on the latter basis, with a secret rebate of £l. The secret leaked out within a day or two, and the president of the selling agency which negotiated with Mr Hearst was forced to resign when every other publisher demanded similar contracts. The paper interests, which are manufacturing 15,000 tons a day, were said to have decided that it would be cheaper to repudiate the Hearst contract and take the consequences rather than face a general demand for a £1 reducion off the £l2 12s. The net result was much hard feeling.