Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-11-08

accomplished when the promoters in
duced Congress to fix tarin4 duty OF
SC Il ton on news print paper. 1t Is
this tariff. it is understood. the Presi-
dent has promised to urge Congress to
repeal The next step which has en-
countcred many delays. has. the Pres
ident was told, ust been contaminated
by the creation of a combination to ex-
haust the surplus stock of paper. to
cause a paper famine and to raise
prices.
The President was further informed
that after the disarmament. by order
Of the court. of the General Paper CO..
various meetings of Eastern and West
ern manufacturers have been held to
stimulate prices and to limit the con-
tract period. A conference of Eastern
nanufa :turers was held in New York
during the first week of September
last. when the last advance in prices
was decided upon.
Since that time manufacturers who
had previously solicited the business
Of various newspapers, have withdrawn
all quotations. Publishers who apply
for quotations realize that in some In
tangible way their supply has been
predetermined, and the price they are
to nay also arranged for them. In
each case, the statement continued, the
publisher finds that all bids but one
are at prohibitory price. He also
finds that he has no remedy against
the supply Of inferior paper. Publishers
who make inquiry of one mill find that
the others have been advised Of in
ing an aggregation of previously indie
pendent mills have merged the output
of these mills.
The source of supply OF numerous news
papers has been arbitrarily diverted from
one mill to another without the consent
of the publisher. Jobbers who apply to
selling agents or to mills for quotations
are forced to disclose the name of the
customer and the purpose for which the
paper is to be used. When this disclos-
ure is made, jobbers find that satisfacto-
ry quotations can be obtained from but
one mill in the country. Millmen and pa
per statesmen have admitted that an
agreed scale had been adopted.
1t was represented that Canadian mills
can and do pay the Sc per ton duty and
still find it profitable to sell in the Unit
ed States. At the same time the Amer
lean mills are selling abroad in compe-
tition with Canada, Great Britain, Ger
many and Norway.
1t was stated to the President that pa
permalers have made large profits during
the past 1G years at prices averaging less
than $40 per ton, and that selling price
Of hot
posed would mean a daily tribute of $45,-
COO paid by the paper consumers to the
alleged combination. Evidence is obtain
able in government records. it was claim
ed, that paper mills in the United States
and Canada are making paper as a cost
less than SIS Ter ton.
1t had been attempted, it was asserted,
to show that the cost Of labor had great
ly increased, but this was refuted by the
statement that the entire cost of labor for
the manufacture of a ton Of paper
amounted to less than $40. Not one
twelfth of the advance in news print pa
per. it was stated, would go to labor.
The lack of progressive methods of
manufacture by the International Paper
Co. which furnishes the bulk Of the pa
per ard fixes the price in the Eastern
market, was pointed cut Because of the
export Of c. tons Of print paper during
the past season and the claim Of the man
ufacturers that the domestic stock is
practically exhausted. coupled with tho
down Of the mills on various pre-
texts. leads the publishers to the belief
that an attempt is being made to create
paper famine. Many newspaper pro-
prietors, it is claimed. are unable to OBJ
tain any quotations for paper for mex.
Year. and do not know where to obtain
supply.
Ihe President was told that in all his.
tory of crime charges against combines
and trusts, such situation is unprece-
dented.
Both the policy of the paper manufac-
turers to acquire large tracts OF timber
land for which speculation it is charged
the consumer of paper is obliged to nav.
ana the over-capitalizatjon of the compa-
Mes were subjects Of criticism.
The committee on leaving the White
House seemed highly gratified by the as
surances from the President. Evidence
II was said. for the action of the DEPART
ment OF justice is being supplied and if IS
oeheved that the methods Of tho So
called paper combine may soon he tested
in the courts.