Reply #14: You are correct.

[Le Taz Hot]

Here's a good link for the early 20th Century cannabis history:

The Truth About Marijuana

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The actual story behind the legislature passed against marijuana is quite surprising. According to Jack Herer, author of The Emperor Wears No Clothes and an expert on the "hemp conspiracy," the acts bringing about the demise of hemp were part of a large conspiracy involving DuPont, Harry J. Anslinger, commissioner of the Federal Bureau of Narcotics, and many other influential industrial leaders such as William Randolph Hearst and Andrew Mellon. Herer notes that the Marijuana Tax Act, which passed in 1937, coincidentally occurred just as the decoricator machine was invented. With this invention, hemp would have been able to take over competing industries almost instantaneously. According to Popular Mechanics, "10,000 acres devoted to hemp will produce as much paper as 40,000 acres of average pulp land." William Hearst owned enormous timber acreage, land best suited for conventional pulp, so his interest in preventing the growth of hemp can be easily explained. Competition from hemp would have easily driven the Hearst paper-manufacturing company out of business and significantly lowered the value of his land. Herer even suggests popularizing the term "marijuana" was a strategy Hearst used in order to create fear in the American public. "The first step in creating hysteria was to introduce the element of fear of the unknown by using a word that no one had ever heard of before... 'marijuana'" (ibid).

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http://www.erowid.org/plants/cannabis/cannabis_culture11.shtml