The San Francisco call., 1908-05-29
AGAINST REMOVAL
OF PAPER TARIFF
Majority of Committee So Re-
ports, While Minority Fa-
vOrS Stevens. Bill

WASHINGTON, May 2S.-The special
committee of six members of the house
appointed upon complaint of the Amer
lean newspaper publishers association
10 investigate the wood pulp and print
paper situation in relation to the tariff
and with regard to an alleged conspir-
aey in restraint of trade today submit
ted q majority and a minority report
The majority report, which is signed
by Representatives Mann of Illinois,
Miller of Kansas. Stafford of wiscon-
sin and Bannon of Ohio. is a prelimi-
nary report and recommends that no
legislation affecting wood pulp and
print paper be enacted until the COM
mittee has further investigated and re-
ported.
The minority report, which is signed
by Representatives Sims of Tennessee
and Ryan of New York, recommends
the passage Of the Stevens bill 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 any
considerable degree be Immediately affected by
The repeal OF the tariff and as the passage of the
stevens biu IN its present form might spell
lIlees tor paper In the near future, your commit
Tee believes il the part Of wisdom before making
ltcoh lamentations Tor POSITIVE legislation TO await
suhih us investigation has been completed and
thoroughly dgested.
The committee listened with interest. attention
Sn0 care from April - 10 Nav a to the wit
nesses appearing in behalf Of the contentious Of
me American newspaper publishers association,
and followed with painstakina care the state
ments taken and evidence presented by John Nor
us, who appeared the special representative
oi that association Every opportunity has been
~ ffa ,ffef,
dcnce before the committee. though not all pub
fishers who offered to appear whom the com
ined.
GENERAL INCREASE IN COST
The report says that the tabulation
OF returned schedules of newspapers by
the census Office covers but few of the
metropolitan dailies. which are the
heaviest consumers. From these re-
turns the average price at present, in
cluding in many cases freight charges.
10 SlS newspapers is S2.S6 per 100; that
OF these, 3s1 using paper in rolls have
an average price Of s2.54, and 55S have
an average Of S307 for paper in sheets.
It seemed probable that publishers pay
ing high prices most readily responded
10 the Inquiries Of the committee.
The report continues:
While there appears 10 have been complaint on
the part Of the paper manufacturers that the
selling price Of paper for 1906 was too low 10 be
fairly remuneratiFe, yet we are inclined TO think
u was not until the summer OF 1907 that there
was a general increase IN print paper prices.
That general increase was in fact put into
tracts appears TO be unquestioned
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
p prove any combination Of print paper manufsc-
Of trade. but considerable evidence was presented
which would excite suspicion that such COM
bination hsd been made and was in existence.
AGAINST REMOVING TARIFF
Under the subhead Removal of the
Tariff" the report in part says:
The question as TO the removal OF the tariff on
print paper and wood pulp is ultimately con
nected with the conservation Of the forest re-
sources in the United States wei its effect
upon the paper manufacturing industry and the
newspaper publishing industry. The committee
is not yet prepared 10 make recommendation
10 the permanent policy OF the United States in
regard 10 the duty on paper and pulp. except that
the committee is firmly Of the opinion that the
tarlm on news print paper and on wood pulp
should not be removed as TO paper pulp
ing from any country OF place which prohibits
the expectation OF pulp wood. ar which levies an
export duty paper pulp pulp wood makes
any higher charge IN any way upon wood and
lgIlp pulp wood intended Tor expectation to the
United States.
The evidence taken 50 far would seem to indi-
cate that the temporary suspension entire re-
lnOval IF the present tariff would not have any
great immediate effect, and il the tariff is re-
moved ~ any time Il should be coupled with the
Canadian forests. The removal Of the tariff on
print paper and wood pulp II followed by an ex-
port. duty on pulp wood coming from Canada
would probably result in considerable increase
ID the price OF print paper and tie early drain
Of the pulp wood forests in the United States.
IT would that for American publishers 10
he assured Of low prices for paper II is essential
10 maintain paper mills In the United States
Any policy that would g.se tie Canadian mills a
preferential advantage over American mills in
obtaining the raw material at low price must
Inevitably result in the dismantling Of American
of
American publishers Canadian mills
MINORITY FOR STEVENS BILL
The minority report indorses the Ste
vens bin in its entirety and recon-
mends its passage Discussing the is
sues between the publishers and the
paper manufacturers, the report says
that an acute situation, which might be
termed trade hysteria," was precipi-
tated in 1907 in newspaper print paper
manufacture when a group of Is Wis
cOnsin mills known as the Wisconsin
wood pulp association, bought $4,000
cords Of pulp wood in the province of
Quebec, Can, which purchase en-
tailed a transportation of that material
distance of 1.500 miles.
The report points out the fact that
more than half of the spruce wood
used in American mills for making
news print paper comes from Canada,
and states that at the time the Wis
cOnsin purchase Of Quebec wood caused
the trade furry the officials of the In
tsrnational paper company "a corpora
tiop producing about one-third of the
entire supply of news print paper man.
ufactured in the United States) COM
puted that the increased cost of their
labor. by reason OF shorter hours had
added 100000 per annum, or 6Oc per
ton, TO their expenses. and that their
wood would cost 81, 900 additional,
or $40 upon each ton of paper pro-
duced. a total of SO per ton upon their
entire output Of about 500 600 tons for
. news, manila and other varieties of
raaner