Power & the Press

When the Federal Trade Commission became interested in the newspaper-buying activities of International Paper & Power Co. last spring, the fact was disclosed that two young men named William Lavarre and Harold Hall had been commissioned by I. P. & P. to buy a chain of newspapers in the South (TIME, May 20). They bought four: Augusta (Ga.) Chronicle, Columbia (S. C.) Record, Spartanburg (S. C.) Herald and Journal. Purchase money amounting to $870,000, the buyers told the Commission, was loaned to them by I. P. & P.

Last week one of the young men, Buyer Lavarre, filed suit in Columbia, S. C. against I. P. & P. and its subsidiary, International Paper Co., asking $2,500,000 damages, less the $870,000 already advanced. His allegations:

1) I. P. & P. agreed to lend $2.500,000 for the newspaper purchases. After the Commission's investigations, I. P. & P. withheld the money.

2) Buyer Lavarre still holds options on other southern newspapers amounting to $1,200,000.

3) I. P. & P. conspired to gain control of the four newspapers after their acquisition by Lavarre & Hall.

4) I. P. & P. also conspired with Buyer Hall to violate its agreement with Buyer Lavarre, to embarrass Buyer Lavarre and prevent him from successfully operating his newspapers.

A month ago Buyers Hall & Lavarre came to disagreement over control of their journals. A split followed, Buyer Hall asking for an injunction against his one-time partner to restrain him from obtaining operating control. Buyer Lavarre threatened to "disclose" all negotiations with the power company unless the injunction was withdrawn. The injunction still pending, amicable settlement of Hall-Lavarre differences had not been made last week.