Thank you for visiting SNEWPapers!
Sign up free
Story
March 27, 1947
Montana Labor News
Butte, Silver Bow County, Montana
What is this article about?
Senate small business subcommittee reveals wholesale diversion of newsprint by Clinton Paper Corp. to publisher John S. Knight, causing shortages for over 50 New York publications including labor and religious papers. Vice Pres. Gellowitz admits selling contract at profit; Sen. Capehart calls Knight to explain.
Clipping
OCR Quality
92%
Excellent
Full Text
SENATE SMALL BUSINESS SUB COMMITTEE FINDS WHOLESALE DIVERSION OF NEWSPRINT
New York. (FP)—Wholesale diversion of newsprint to newspaper publisher John S. Knight preventing regular issuance of more than 50 publications here was revealed in recent testimony before the senate small business subcommittee on newsprint.
The revelation came during the quizzing in Washington of Vice Pres. Samuel Gellowitz of the Clinton Paper Corp. largest newsprint jobber and supplier in New York which had been accused of failing to deliver sufficient paper for normal publication to commercial printers here.
Gellowitz admitted selling a 2 year contract with Bowater mills Newfoundland. calling for 600 tons yearly. to Atty William K Friedman for $160 per ton. a profit of $60 or $36,000 for the year.
Friedman sold the contract to Knight for an undisclosed sum Gellowitz testified Knight publishes the Akron Beacon-Journal, Chicago Daily News. Detroit Free Press and the Miami Herald.
Meanwhile fraternal religious trade and labor papers in a number of print shops were unable to go to press with their normal number of pages because of inability to get sufficient paper from Clinton. Publication dates were delayed. number of pages slashed or press runs trimmed for such publications as: Advance (Amalgamated Clothing Workers. CIO). Justice (Int. Ladies Garment Workers Union. AFL) the Catholic Worker. Holy Name News. the Civil Service Leader and scores of others.
The Bulletin of the American Veterans committee bought three tons of paper at $150 per ton (compared to their printer's usual purchase price of $85) to piece out its run, obtaining it from Clinton (who was unable to sup ply the printer direct) "as a favor to the veterans."
The Clinton-to-Friedman- to- Knight deal "appears rather unusual" com mented Sen. Homer Capehart (R Ind ). chairman of the subcommittee saving Knight would be called to ex: plain the deal.
New York. (FP)—Wholesale diversion of newsprint to newspaper publisher John S. Knight preventing regular issuance of more than 50 publications here was revealed in recent testimony before the senate small business subcommittee on newsprint.
The revelation came during the quizzing in Washington of Vice Pres. Samuel Gellowitz of the Clinton Paper Corp. largest newsprint jobber and supplier in New York which had been accused of failing to deliver sufficient paper for normal publication to commercial printers here.
Gellowitz admitted selling a 2 year contract with Bowater mills Newfoundland. calling for 600 tons yearly. to Atty William K Friedman for $160 per ton. a profit of $60 or $36,000 for the year.
Friedman sold the contract to Knight for an undisclosed sum Gellowitz testified Knight publishes the Akron Beacon-Journal, Chicago Daily News. Detroit Free Press and the Miami Herald.
Meanwhile fraternal religious trade and labor papers in a number of print shops were unable to go to press with their normal number of pages because of inability to get sufficient paper from Clinton. Publication dates were delayed. number of pages slashed or press runs trimmed for such publications as: Advance (Amalgamated Clothing Workers. CIO). Justice (Int. Ladies Garment Workers Union. AFL) the Catholic Worker. Holy Name News. the Civil Service Leader and scores of others.
The Bulletin of the American Veterans committee bought three tons of paper at $150 per ton (compared to their printer's usual purchase price of $85) to piece out its run, obtaining it from Clinton (who was unable to sup ply the printer direct) "as a favor to the veterans."
The Clinton-to-Friedman- to- Knight deal "appears rather unusual" com mented Sen. Homer Capehart (R Ind ). chairman of the subcommittee saving Knight would be called to ex: plain the deal.
What sub-type of article is it?
Historical Event
Deception Fraud
What themes does it cover?
Deception
Justice
What keywords are associated?
Newsprint Diversion
Senate Subcommittee
Publication Shortages
Clinton Paper Corp
John S Knight
What entities or persons were involved?
John S. Knight
Samuel Gellowitz
William K Friedman
Homer Capehart
Where did it happen?
New York, Washington
Story Details
Key Persons
John S. Knight
Samuel Gellowitz
William K Friedman
Homer Capehart
Location
New York, Washington
Story Details
Senate subcommittee testimony reveals Clinton Paper Corp. Vice Pres. Gellowitz sold newsprint contract to Friedman, who resold to publisher Knight at profit, causing shortages for over 50 small publications; Sen. Capehart to question Knight.