Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-11-08
Publishers Explain Man
ner Paper Combine
Treats Them.
IS NO COMPETITION
Purchaser Can Buy From but
One Mill and Has No Re-
course If DispIeased.

Washington, Nov. S.-A clear state
ment of the position of the publishers
OF the United States was laid befora
the president yesterday in the inte,-
view with a committee from the ma
tiOnal association that resulted in d
promise On the part of the executive
TO recommend to the next session OF
congress the abolition of the tariff on
paper plup and an investigation as to
whether the paper makers of this
country are violating the law in their
present methods of doing business.
The president was informed that
after the disbandment, by order of the
| court, of the General Paper company
various meetings of eastern and wes.-
eIn manufacturers have been held to
stimulate prices and to limit the con-
| tract period. A conference of eastern
manufacturers was held in New York
during the first week of September
last, when the last advance in price
was decided upon. Since that time
manufacturers who had previously So
| licited the business of various news
papers have withdrawn all quotations.
Everything Arranged.
| Publishers who apply for quotations
realize that in some intangible way
their supply has been predetermined,
and the price they are to pay also ar
ranged for them. In each case the
president was Informed the publisher
makes bids, but they are at d prohib-
iitory price. He also finds that he has
no remedy against the supply of in
ferior paper. Publishers who make
inquiry of one mill find that the others
have been advised of that inquiry.
New selling agencies, representing an
aggregation of previously independent
mills, have merged the output of those
mills.
The source of supply of numerous
newspapers has been arbitrarily di-
vertcd from one mill to another with
lOut the consent of the publisher. JoJ-
berS who apply 10 selling agents or 70
mills for quotations are forced to dis
close the name of the customer and
the purpose for which the paper is to
| bS hoCN- w hti lHlo diSCiOSuIt 10
made jobbers find that satisfactory
Quotations can be obtained from bt.t
one mill in the country. Mill men
and paper statesmen have admitted
that an agreed scale has been adopted.
Dcarer Labor Used as a Blind.
1t was represented that Canadian
mills can and do pay the Sc per ton
6Itx cti EnJ -
: in the United States. At the same
: time the American mills are selling
abroad in competition with Canada.
Great Britain, Germany and Norway.
I 1t was stated to the president that
5 paper makers operating fairly equip
| ped mills have made large profits dur
; ing the last 10 years at prices averaS-
: ing less than $40 per ton, and that a
selling price of between s55 and $50
per ton. as now proposed would mean
a daily tribute of $4,000 paid by the
lpaper consumers to the alleged com.
. bination.
} Evidence is obtainable in govern
ment records. it was claimed. that
paper mills in the United States ari
Canada are making paper at cost Of
less than SIS per ton.
Much mystification had been at
tempted. ii was asserted, to show that
= the cost of labor had greatly increase l.,
4 but this was refuted by the statement
I that the entire cost of labor in the
s manufacture of ton of paper amount
:. ed to less than s2.40. Not onetwen-
: tieth of the advance in news print
s paper, it was stated, would go to labor.