The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-05-28
Special Wood Pulp and Print
Paper Committee
Submits Its Findings to the
National House.
NO LEGISLATION NOW.
Is the Recommendation Made
by the Majority.
Passage of the Stevens Bill Fa-
vored by the Minority.

-
vored by the Minority.
Washington, May 2s.-The special
committee of six members of the house
appointed on complaint of the Ameri-
can Newspaper Publishers association
to investigate the wood pulp and print
paper situation in relation to the tar
iff and with regard to an alleged con-
spiracy in restraint Of trade today sub
mitted majority and a minority re-
port.
The majority report, which is signed
by Representatives Mann QlL), Miller
(Kan.), Stafford (Wis.), and Bannon
(Oo, is a preliminary report and rec
ommends that no legislation Affecting
wood pulp and print paper be enacted
until the committee has further in
vestigated and reported.
The minority report, which is
signed by Representative Sims
(Tenn.) and Ryan IN. W recon-
mends 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 pres
ent price of paper would not to any
considerable degree be Immediately
affected by the repeal Of the tariff and
co Tic P1SSdS0 Ol IIl6 ClcV0nS O1ll
its present form might spell ruin to
the paper industry and entail ruinous-
~ high prices for paper in the near
future, your committee believes it the
part of wisdom before making recon-
mendations for positive legislation to
await until its investigation has been
completed and thoroughly digested.'
The Minority Report.
The minority report endorses the
Stevens hill in IFS eDfirafv and rocorn
mends its passage. Discussing the is
sues between the publishers and the
paper manufacturers the report states
that an acute situation which might
be termed trade hysteria" was preci-
pitated in 1907 in news print manu-
sin mills known as the Wisconsin
Wood Pulp association bought $4,000
cords of pulp wood in the province Of
Quebec. Canada, which purchase en-
tailed a transportation of that ma
terial a distance of 1900 miles. "It
into what was more or less of a
speculative operation says the re-
port. 'It demoralized the wood pulp
markets Of the United States as we'll
Of Canada, where nearly 100000
cords of pulp wood are bought for ex-
port to the United States.
1T started paper quotations up
ward until one paper trade journal
reported that the current prices for
news print paper on July 1, 1907,
ranged from $50 to $62 per ton This
advance had been foretold by paper
statesmen and others nearly year
prior to SO called paper famine"
The report points out the fact that
more than one-half of the spruce
wood used in American mills for
making news print paper comes from
Canada, and states that at the time
the Wisconsin purchase Of Quebec
wood caused the trade furry, "the
officials Of the International Paper
company Ga corporation producing
about one-third of the entire supply
of news print paper manufactured in
the United States) computed that the
increased cost of their labor by rea-
son of shorter hours had added $780,
their expenses and that their wood
would cost $1,2OO,O0O additional or
$2.40 upon each ton of paper pro-
duced. a total of SO per ton upon
their entire output of about 100000
tons OF news. manila and other
varieties of paper. They also figured
that Of their news print paper output
only 55 per cent could be taxed with
these burdens because the other As
per cent Of their news print produc-
ton had been tied up with low priced
contracts covering the year.
Pr1Ce Fixed at $50.
Accordingly. they decided upon $50
upon all future sales which substan-
tally fked that price for the entire
market. The figure carried with it an
average advance Of about $40 per ton
IN a period Of two years. The action
was too abrupt. It provoked trouble
paper revenues were shrinking because
Of depressed conditions. It brought to
the attention Of the country situa-
ton that demands recti1cation."
j Immediately following the panic Of
October 1907. it is stated newspaper
publishers sought to offset their losses
caused by diminished advertising rev.
enues and by increased cost Of paper,
by reducing the number Of pages Of
their papers, resulting in a diminu-
tion Of consumption. In consequence
the paper mills which had been taxed
stocks accommodating with decreasing
demand for their product. The mar
ket was soon glutted. Confronted with
the alternative Of reducing their prices
or closing their mills and discharging
their labor. the paper manufacturers
1t Is stated, close to maintain the high
prices. They kept their prices SO far
above the normal level says the re-
port, that Canadian mills were able
to pay the duty of S6 a ton and to un-
dersell American mills in the American
market doing this while paying wages
for labor that compared favorably with
the wages paid by the American mills %
The maintenance of high prices un-
der such conditions. 1t is stated, brought
about the unlocked for result of giving
to Canadian labor some of that work
of production which otherwise would
have gone to American labor.
Many cases of hardship among pub
fishers in consequence Of notification
of proposed increase in price are
cited. 1t is pointed out that these pa
pers were forced to the alternative OF
contracting at the higher price or a
suspending of publication.
Weather Indications,
Chicago, May 2S.-Forecast for
Kansas: Generally fair tonight and