The Fargo forum and daily republican., 1916-11-04

fishers and other parties interested
will be given opportunity to appear be-
fore the commission at a public hear
ing.
THE price advance In news print
paper which occasioned this investiga-
tion began early in 1916 and has con-
tinued down to the present. Most
news print paper, probably about 80
per cent, Is sold on contracts for
periods Of a year or more. Before the
price advance began, contract prices
for news print paper were generally
less than 81 per hundred pounds {. o. b.
mill. During the first half Of 1916,
contract prices for large quantities in
some instances went as high as SO pet
hundred pounds and since July 1, 1915,
have run as high as $3.50. Most Of
the contracts now in operation will
expire within three or four months.
"On current market purchases news
paper publishers have been paying
manufacturers and jobbers very much
higher prices. Before January, 1916,
ly between 81 and So per 100 pounds,
delivered depending on quantity,
freight and circumstances, but since
that time they. have gone up as high
as Sc or 81 per hundred pounds for a
considerable volume of business and
even higher in exceptional instances.
The average price received by do
mestic manufacturers of news print
paper did not advance in anything like
the degree that current market prices
advanced, because most OF the paper
was sold under contracts previously
made. On the average. the actual net
receipts of domestic manufacturers fof
news print paper were less than 81
per hundred pounds during the first
half Of 1915,
"The average cost Of manufacture
Of news print paper in domestic mills
was less than $S3 per ton or $1.65 per
hundred pounds, during the first half
Of 1916, as shown both by the manu-
facturers' own cost sheets and by the
costs as revised by the accountants
Of the commission. Furthermore these
average costs were slightly lower than
the average costs in any Year from
1913 to 1915.
Though the average cost declined
in the first half of 1916. the market
prices Of some OF the materials of
manufacture advanced and were un-
usually high.
1T should be noted that the most
important materials which advanced
In price. sulphite and ground wood,
were produced by most of the paper
manufacturers without an increase of
cost and not bought at market prices,
while some other manufacturers were
protected against the increase in
prices by contracts. Some other ma
terials which were purchased at ad-
vanced prices were very small factors
in the total cost. Certain economies
were also practiced in the use OF ex-
pensiYe materials.
1T is generally claimed in the trade
that costs in the future will increase
particularly on account Of the scar
city of labor in the Canadian woods
and the consequent increase in labor
cost of bringing logs to the mills.
This is necessarily matter OF pre-
diction concerning which the COM
mission expresses no opinion.
THE Quantity of news print paper
produced by domestic manufacturers
in the first half of 1915 was somewhat
greater than in any preceding half
year since the middle of 1913. The in
crease in production was accomplish
ed by running mills to dull capacity.
Recently most mills have been oper-
ated "a hours per day for six days per
week.
The quantity of news print paper
imported, which came chiefly from
Canada, equalled about one-third of
the domestic production and showed a
great increase in the first half of 1916.
The quantity exported also increased
during this period, though the exports
were small compared with imports.
the prices, however, offered by for
eign buyers were high.
The stocks of news print paper
which are very small in comparison
with the production, not only declined
during the first half Of 1916. but also
were lower than at any time during
the year 1915.
'As there was a large increase in
production and imports, accompanied
by decline in stocks. while there was
only a small tonnage exported, it Is
evident that there was a decided in
crease in consumption during the first
half OF 1916.
An increase in the demand for news
print paper is also indicated by the
fact that the sworn statements re.
specting the circulation of newspapers
to the postoffice department generally
showed larger issues by the leading
newspapers and by the fact that the
number of pages by the larger news
papers have been very generally in
creased on account of large increases
in advertising and news matter.
Before the recent price advance
certain other grades Of paper Were
showing higher profits per ton thar
news print paper and there was a ten
ldency to change from this grade tC
Iother grades. This movement seems
Ito have been checked for the present
by the high prices OF news print paper
Furthermore, it is stated that before
1.-THE end OF this year four new ma
Ichines. two in this country. and two
lin Canada, with an aggregate dali,
capacity of about 100 tons will begir
Operations on news print paper. Other
protected or pending development
Twill apparently require somewhat
Ilonger time to become available,
1T is not intended in this statement
Ito make any prediction about the fu'
lture course of news print paper prices
lbut merely to indicate some important
lfacts to those interested in the buyins
land selling OF paper In order that they
lmay act more advisedly In making
lnew contracts Moreover. the facts
Ishown here are confined to matters o
La statistical character and do no
Ilcover other phases OF the situation
Including various trade activities o
1.-THE news print paper manufacturers
ijobbers and newspaper publishers
THESE questions win be subject o
. further consideration by the commits
sion and some OF them will be covere'
lby the public hearings. which. as al
Iready stated. the commission intend
Ito hold in the near future"