The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-11-12
ROOSEVELT TO FIGHT
THE PAPER TRUST
To Urge Abolition Of Tariff, in
Interest of Publishers.
PROMISE MADE AT HEARING
To Investigate Renewed Exactions of
Trust Once Observation-Disclosures
Declared to Surpass All Previous
Crimes Charged to Trusts.

Washington.-Pre Roosevelt
indicated to members of the Commit
tee on Paper of the American News
paper Publishers Association that he
will recommend to Congress the abo-
lition of the tariff on press paper,
wood pulp and the wood that goes
into the manufacture of paper; also
that he will make recommendation
to the Department of Justice that it
take immediate steps to ascertain
whether the antitrust laws are being
disobeyed by the manufacturers of
paper.
The history and facts which make
up the protest were presented by
Medill Mccormick, after which the
President indicated the action he
would take. An investigation of the
so-called paper trust has been in pro-
gress for some time by the Depart
ment of Justice, and it is understood
the President will call for the facts
which have been ascertained up to
the present time.
The appreciation OF the association
was expressed to the President at the
action taken by the Federal Govern
ment last year in ordering the disso-
luton of the General Paper Company.
His attention was then called to what
was termed conspiracy" by which
it was alleged the makers of news
print paper have arranged for an adj
vance of $12 ton upon the supply
of that article for the current year,
and for an additional advance next
year averaging $40 ton. This, it
was explained, means burden i'm
posed on the printing industry of
the country of $10,000,000 for the
present and $40, 100000 for the COM
ing year. The excuse for the advances
on the part of the paper makers is
the cost of wood and labor have in
creased. This excuse was met in the
argument to the President by the
statement that the published report
of the largest manufactures of news
print paper gives the increased cost
of material and manufacture, includ-
ing expense of administration and
sales, as about sixty-four cents ton.
The President was told that the
present plan of increasing the price
of paper had its inception twelve
years ago, In proposition to unite
the paper mills into one pool or cor
poration. The first step had been
accomplished when the promoters in
duced Congress to fix a tariff duty
of Sc a ton on news-print paper. 1t
is this tariff, it is understood, the
President has promised to urge Con-
gress to repeal. The next step which
has encountered many delays, has,
the President was told, just been con-
summated by the creation of a COM
bination to exhaust the surplus stock
of paper, and to raise prices
1t was represented that Canadian
mills can and do pay the Sc per ton
duty and still find it profitable to
same time the American mills are
selling abroad in competition with
Canada, Great Britain, Germany and
Norway. The President was told
that paper makers operating fairly
equipped mills have made large pro-
fits during the last ten years at prices
averaging less than $40 ton, and
that selling price of between $50
and $50 ton, as now proposed,
would mean daily tribute of $45,-
900 paid by the paper consumers to
the alleged combination. Paper mills
in the United States and Canada are
making paper at cost less than $2S
per ton.
Much mystification had been at
tempted to show that the cost of la
Dor had greatly increased, but this
was refuted by the statement that the
entire cost of labor to the manufac-
ture of ton of paper amounted to
less than $2.40. Not one-twelfth of
the advance in news-print paper
would go to labor.
The lack of progressive methods
of manufacture by the International
Paper Company, which furnishes the
bulk of the paper and fixes the price
in the Eastern market, was pointed
out. The export of 10000 tons of
print paper during the past season
and the claim of the manufacturers
that the domestic stock is practically
exhausted, coupled with the shutting
down of the mills on various pretexts,
leads the publishers to the belief that
an attempt is being made to create a
paper famine. Many newspaper pro-
prietors are unable to obtain any
quotations for paper for next year,
and do not know where to obtain a
supply.
The President was told that in all
the history of crimes charged against
trusts such a situation is unprece-
denied.