The Washington herald., 1916-08-12
Publishers Up Against 1t.

Possibly there is no manufacturing business
in the United States so thoroughly unonized and
operated by union as the printing and pub
fishing industry. 1t is seldom, however that
there is any serious trouble between employers
and employees.
1t is the business of the publisher to keep
we'll posted on the general condition of the
country and the cost Of living. Printers or work
men in printing and publishing offices arc of an
intelligent class and come into pretty close con-
tact with their employers. The union demands
OF the printers and allied trades have heretofore
not been out OF proportion to the cost OF living
and the general tendency to shorten the hours
of labor. The publishers by installing typesettng
machines automatic casting machines, fast-run-
ming presses, etc, have been able to absorb the
increased cost of labor, which is today just 100
per cent more than it was twcnty-slx years
ago, and those who could increase their circula-
tion have been able to live. Few, however, have
grown rich. Three out Of every four have failed,
but the proportion Of failures among publishers
is no greater than in other lines, according to
w. D. Boyce, publisher of the Chicago Blade.
The item OF greatest expense in the publish
ing business is the paper, which is made mostly
from spruce pine. Now, result of combina-
tions and the condition OF the export trade, the
publishers of the country called upon to pay
paper, over the past year. No other commodity
in the United States or Canada has had rise
Of more than IS per cent, with the excep-
ton of materials. The cost of producing
paper has not advanced over per cent during
the past two years.
How are the publishers going to absorb this
increase Of so per cent in the cost Of their print
paper? The cost of paper is usually 40 per cent
OF the total cost Of operating newspaper plant.
Fifty per cent OF 40 per cent is equal to a gross
increase, in the cost OF the whole business, of
20 per cent. Heretofore few successful publish
crs have made more than ;, or per cent on
the capital used. A per cent increase in cost
simply puts them out Of business. Only the old,
strong papers will be able to live through the
next year.
A Congressional investigation is loot,
but like all these Investigations, it will amount
10 nothing There is relief in sight until six
months after the war closes, when foreign pulp
and paper will supply the foreign market and the
United States and Canada will again have a
shortage in tonnage. In the meantime deaths"
in the publishing business will add to that short
age and it will be mighty strong combination
"gentlemens agreement" that will hold when
il will be necessary for one-third Of the mills
in the United States and Canada to shut down
and for the others to make a market price for
paper lower than the price when the war began.
The present profit the manufacture of
paper will pay the full cost OF building and
equipping any mill in the United States during
the next twelve months. In fact | know OF two
paper manufacturers who have cleaned up in the
last six months profit greater than the amounts
for which they were willing to sell their whole
property at the start of the year.
The general tendency among daily newspaper
publishers is to raise the price per copy or sub
scription rates 1t is not likely that there will
be any change in the subscription price Of
weekes