Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-26
What the Committee Wants.

Representative Miller remarked that the
committee intended to have all the facts
in the case. Il, for one" said he, dc
not propose to sign any committee report
except upon the best information an6
substantial proof, for I do not propose tc
be subjected to the sort Of criticism which
your association has already placed upor
this committee. Why you should have
expressed mistrust of q committee Of the
House before i: had even got down to the
work OF the investigation is more than
can understand"
Mr.. Mann said that what the committee
desired to get at at once was whether
the publishers claim that removal Of the
duty on wood pulp would cause a decrease
in the price Of print paper, and whether
the publishers proposed to support be-
o-called paper trust is a conspiracy in re-
straint Of trade within the meaning Of the
law.
Mr.. Sims suggested: II should like to
the Stevens bill. and what the effect would
be II we passed 1t. I ask this question az
one who is in friendly attitude toward
that bill"
In reply Mr.. Norris stated that the
price of paper to the newspapers Is now
$3.50 per 100 pounds, q recent advance
from the former prevailing price of $3.50
He said the publishers would furnish the
committee with exact quotations showing
what print paper was costing publishers
at practically all the consuming points In
the United States.
Control Of Spruce Wood.
Touching the point Of control of spruce
wood from which the pulp is made. Mr.
Norris said that the companies which sup
ply to the paper makers the wood for the
manufacture Of pulp are subsidiary con-
Germs: that the president of the subord
nate company makes contracts with him.
self as general manager Of the parent
company, by which the price to be paid
by the latter to the former is fixed. He
said that the daily output of the 1nterna-
tional Paper Company is 1000 tons OF
print paper, representing the output OF
thirty mills and that this company is &C.
tually producing today less print paper
than 1t turned out ten years ago.
consular board in Canada has fixed the
price Of print paper at $38 ton t. o: b.
at the mills and said that Canadian
companies have been selling their product
in the United States at 81 less tor
duty paid than it can be bought for from
producers in the United States.
Representative Sims of the committee
asked Mr. Norris whether his association
demanded any relief beyond the passage
Of the Stevens bill. to which Mr.. Norris
replied that such legislation would De
satisfactory. Thereupon Mr.. Sims want
ed to know whether in case the Stevens
bill should pass there would still remain
the question Of the existence OF the COM
qbination among paper makers which might
be subject to antitrust laws.
Effect Of Normal Conditions.
Mr. Norris replied that with the tarifi
bars down natural conditions would as
serr themselves and consumers would then
obtain results Of material advantage. not
only to the consumers. but the papermak-
ing industry. In other words. If the duty
on wood pulp were abolished q very
large factor in the conduct Of paper
making establishments would be con-
served, He said that at present In order
to produce wood pulp. 1t was necessary
to have large areas Of timber, plentiful
water power. improved machinery and
concentrated supervision. The most cost
ly item in the papermaking industry IL
the pulp.
II there were free wood pulp it would
be possible to locate paper making plants
in a great many localities. and with free
pulp 1t would be possible to produce the
paper with less than one-fourth OF the
capital now invested in paper-makine
plants.
Mr.. Norris said in answer to a question
that paper is now $50 ton, whereas In
lS(kO II was $Oo d loA.
Mr.. Sims asked whether the removal
of the import duty on wood pulp would
not be a discrimination against American
woods Mr.. Norris replied: my informa-
ton is that the spruce supply in this
country Is largely owned by paper manu-
facturers. and they are holding 1t for the
future and buying their supplies in Can
ada for the present"
Advantage Over Canada.
Quoting from William A. Van Horn,
the principal stockholder in the Lauren
tide Baper Company. to show that in
reality American mills produce under
more favorable conditions than do Can
adian mills, Mr.. Norris said that Can
adian mills are at disadvantage in COM
parison with American mills, because the
latter have more skilled labor, closer
proximity to their markets. cheaper sup
plies and machinery, better rates for ex-
porting and lower marine rates, and that
the superiority of American paper is at
tested by the fact that in foreign markets
1t commands IN per cent more than Can
adian paper.
Mr. Norris instanced a case wherein the
Houston CTexas) Chronicle bought paper
in Canada at $40 ton.
Mr.. Mann then asked why the Canadian
producers were not favored by buyers
Mr.. Norris said the reason was that