Power and the Press (Cont'd)

In the spring of 1929 International Paper & Power Co. was subjected to a Federal Trade Commission inquiry and widespread criticism for its financial interest in 13 newspapers. Straightway I. P. & P. took steps to dispose of those holdings. Last week, through a series of misadventures, I. P. & P. found itself again temporarily in the newspaper business-sole owner of the Augusta (Ga.) Chronicle, Columbia (S. C.) Record, Spartanburg (S. C.) Herald and Spartanburg Journal. In a Federal court sale the paper company was awarded the properties for $983,130.90.

William Johanne La Varre Jr., onetime circulation promoter of the New York Times and New York World, and Harold Hall, onetime business manager of the New York Telegram, bought the four papers last year for $870,000 loaned them by I. P. & P. In return they gave the paper company their joint note, secured by the stock of the newspapers. But the certificates were not turned over (TIME, May 20, 1929 et seq.). Soon after the disclosure of I. P. & P.'s venture, Partners Hall and La Varre quarreled, and Partner Hall sought an injunction to restrain Partner La Varre from obtaining operating control. To protect himself, Hall had to go to the court of appeals for a decision declaring him an equal partner with La Varre. But one J. T. Webb Jr. of Macon, Ga. was appointed by Federal court as commissioner to manage the newspapers pending their sale. La Varre ejected Commissioner Webb from the Columbia Record office, went to jail for contempt. He emerged to fight a petition by Partner Hall for the sale of the papers. He lost.

I. P. & P. was sole bidder at the court sale. Of the $983,130.90 bid, $870,000 is represented by the note it holds, the balance will meet debts incurred by the papers since the note was signed. Its title now clear, I. P. & P. will undoubtedly sell the papers as soon as it is possible to do so.

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