The Montgomery advertiser., 1908-05-29
COMMITTEE MAKES REPORT Result of Paper Trust
 Investigation. IS ONLY A PRELIMINARY Majority Report is in Favor oi
 Manufacturers. Majority Report Favors Publishers and Urges Removal of Wood Pulp Tariff.
 Nc Combination Exists.
 Says Minority. 
s ONLY A PRELIMINARY

Washington, May 2s.-The special committee of six members of the House appointed upon complaint of the Amer ican Newspaper Publishers Association, to investigate the wood pulp and print paper situation in relation 10 the tariff and with regard to an alleged con- spiracy in restraint of trade, today sub mitted majority and minority re- port.
 The majority report, which is signed by Representatives Mann Qlls.), Miller (Kas.D, Stafford (Wis), and Ramon (O.), is preliminary report, and rec ommends that. no legis1atfon affecting wood pulp and print paper be enacted until the committee has further inves- tieated and reported: The minority report. which is signed by Representa- tfves Sims (Tennl, and Ryan (N. Y.), recommends the passage of the Stevens till. to place wood pulp and print paper on the free list.
 The majority report Is summed up in the following words:
 "As the present price of paper would not to any considerable degree be irn- mediately affected by the repeal of the tarin. and as the passage of the Stevens bill in It's present form might ApeI ruin" to the paper industry and ruinously high prices for paper in the near future, your committee believes lL EnS part or WlSQOn O0IOTe fHaklnk recomme for positive legisla- tion to wait until it's investigation has been completed and thoroughly di- gested.
 The PubIishers' Side.
 The committee listened with inter est. attention and care from April 25 to May 14," says the report, "to the wit nesses appearing in behalf of the con- tentions of the American Newspaper Publishers Association, and followed with painstaking care the statements made and evidence presented by Mir. John Norris, who appeared as the spe- ciaI representative of that association. Every opportunity has been given to the newspaper publishers to present evidence before the committees, though not all of the publishers who offered to appear or whom the committee would like to hear, have yet been examined" The report says that the tabulatton of returned schedules of newspapers by the census office covers but few met ropolitan dailies, which are the heavy consumers
 From these returns, the average price at present, including in many cases freight charges to 919 newspa- pers, is g S6 per hundred pounds; that of these. 361 using paper in rolls have m average price of s2 54 and 55S have an average of $3. OF for paper in sheets. It seems probable that publishers paying high prices most heartily respondd to the inquiries of the committee.
 The report continues:
 While there appears to have been complaint on the part of the paper manufacturers that the selling price of paper for 1906 was too low to be fairly remunerative, yet we are inclined to think 1t was not until the summer of 1907 that there was general increase in print paper prices. That a general increase was, in fact. put into effect on new contracts appears to be unques- toned"
 As to the charge of the existence of a combination in restraint of trade. the report says:
 ''The evidence before the committee so far fails to prove any combination of print paper, offers to advance prices or otherwise In restraint of trade, but considerable evidence was presented which might excite suspicion that such a combination had been made and was "In the course of this preliminary report. there are discussed the in- creased cost of wood pulp. cost of ground pulp, hours of labor in mills, ''some increase in the price of paper justified" Canadian competition expor- tations from Canada, removal of the tariff, and the Stevens bill. Under the sub-head, Removal of tariff." the re- port. in part, says:
 Removal of Tariff
 The question as to the removal of tarin on print paper and wood pulp is intimacy connected with the conserva- ton of the forest resources of the United States as well as its effect on the paper manufacturing industry and the newspaper publishing industry The committee is not yet prepared to make recommendation as to the perrna.
 af hA gard to the duty on paper and pulp except that the committee is firmly ot the opinion that the tariff on news print paper and on wood pulp should not be removed as to paper or pulI coming from any country or place wood, or which levies any export duty on paper pulp, or pulp wood intended for exportation to the United States.
 ''The evidence taken so far woult seem to indicate that the temporary suspension or entire removal of tn, present tariff would not have any grea immediate effect, and if this tariff fl removed at any time. 1t should be cou pled with the right of free exportatior of wood pulp from the Canadian for ests. The removal of the tarin on prin paper and wood pulp. if followed b! an export duty on pulp wood coming from Canada. would probably result fl a considerable increase in the price o print paper and the early destruction of the pulp wood forest in the United States.
 'It would seem that for the Amer ican publisher to be assured of lov prices for his paper, it is essential t. maintain paper. mills in the Unite' States, Any policy that would giv The Canadian mills a preferential ad vantage over American mills in obtain ing the raw material at lower prices must inevitably result in the dismant ling of American paper machines an the ultimate dependence of America publishers on Canadian mills. Unde these conditions. Canada could levy eX port duties' on print paper that woul result in enhanced prices without tn presence of competition from America paper, manufacturers.
 To Continue investigation.
 ''Yo4r committee proposes during tn suunmdr vacation to continue the inves tigations and expects Co be able to pre- sent to the House at the next sessio