Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-05-29


about 100000 tons for news, manila
and other varieties of paper They
also figured that of their news PRINT
paper output, only 90 per cent couic
be taxed with these burdens because
the other 40 per cent. OF their news
print production had been tled up
with low priced contracts covering the
year. Accordingly they decided upon
$50 per ton delivered as their minimum
upon all future sales when sunstan-
TALLY fixed that price for the entire
market This figure carried with t an
average advance Of about $40 per ton
in period of two years. The action
was too abrupt. 1t provoked trouble
and resentment at a time when news
naner revenues were shrinking because
of depressed business condltlons. IL
brought to the attention of the coun-
try a situation that demands rectiii-
cation"
Immediately following the panic of
October. 1907, it is stated. newspaper
publishers sought to offset their losses
caused by diminished advertising rev.
enucs, and by increased cost Of paper,
by reducing the number of pages Of
their papers. resulting in diminution
of consumption. In consequence, the
naper mills which had been taxed to
supply the market soon found their
stocks accommodating with decreas-
ing demand for their product. The
market was soon glutted. Confronted
with the alternative of reducing their
prices or closing their mills and dis
charging their labor, the paper manu-
factulers, it is stated. chose to main
tain the high prices. "They kept their
prices 50 far above the normal level,
says the report, that Canadian mills
We're able to pay the duty Of Sc a ton
and to undersell American mills in the
American market, doing this while
having wages for labor that compared
favorably with the wages paid by
American mills. The maintenance of
high prices and such conditions. il is
stated, brought about the unlocked for
result Of giving to Canadian labor
some of the work Of production which
otherwise would have gone to Ameri-
can labor"
Many cases Of hardship among pub
fishers in consequence Of notification
of a proposed increase in price are
cited. It is pointed out that these pa
pers were forced to the alternative Of
contracting at the higher price or
suspension Of publication.
Continuing the report says: "These
hardships and the inability to have
their customers share the added cost
Of paper present case Of urgency
that differentiates this request for tar
if removal from other pending propo-
r ,;,, cna
of a newspaper is like the price of a
postage stamp. 1t is measureably fixed.
it cannot lie raised or lowered to meet
the constantly changing price Of raw
material. In this respect it is unique.
"The testimony showed that the re-
6uction in the hours of labor was not
general throughout the entire country
though all mills raised their prices up
on the allegation that their labor cost
had thereby been increased. The claim
that pulp wood had increased i'll price
has more merit than the claim Of in
creased labor cost, but the increase in
wood cost did not justify the advances
which the paper makers ultimately
adopted"
After calling attention to the ract
that "an extraordinary and unac-
countable secrecy marked the relations
of manufacturer and publisher aQd
that contracts With large consumers
We're made under obligations of Sc
crecy, the report concludes:
1--WE find that the existing duties
have raised the price of wood pulp and
print paper. not only in itself, but by
giving to the paper manufacturers a
~. Iah ioI, nH1I1l
ganize combinations which, il not tech
nically susceptible of proof as unlaw
full trusts, are, in our opinion, in real
ity such. 1t is true that the tariff Of
itself perhaps might not account for
the full advance in the price. but the
tariff, plus the tariff engendercd COM
binations. do account for all of it.
I'VE find that the revenues derived
| from import duties on pulp and print
| ing paper are so small and the benefits
| to be obtained from the abolition OF
those duties are so considerable that
we urge the placing of pulp and print
| ins paper on the free list We believe
| that relief from existing conditions can
| be fully and promptly secured only
| by the immediate consideration and
passage Of H. r. No. 1868, introduced
| by Mr. Stevens"
| The minority report is signed by
| Mcssrs Sims, Tenn, and Ryan, y. Z.
| When Mr.. Mann called up the re-
ports in the House and sought to have
| them read, Mr.. Sims desired to know
| if it was intended to follow that action
| by motion to adopt the majority re-
| port Mr. Mann said that question
could be answered later. Mr.. Sims
/ then moved the adoption Of the min
| GRITTY report, but Mr. Hitchcock. Neb..
objected to the reading of either re-
| port 1t is believed that Mr.. Hitch
cocks action will have the result Of
preventing the question from coming
| up again this session
Bill to Suspend Pulp Import Duty.
| Washington, May 2S-Reprc sentative
Stafford Of Wisconsin. p member of the
| special committee of the House that is
investigating the wood pulp and print Ta-