The Washington herald., 1916-12-30
JOBBERS BLAMELESS
FOR High PAPER COST
R. P. Andrew. Takes Exception to Con-
tention of Federal Trade Commission.

r. P. Andrews, president Of the R. p.
Andrews Paper Company. yesterday came
vigorously to the defense Of the paper
jobbers and took issue with the Fed
eral Trade Commission in its contention
that the jobber was partially responsible
for the increased cost of print paper.
"I commend the Federal Trade Com
mission in its work to reach the
real source of high prices" he said, but
I must object to the published state
ments that the jobber Is the real or
contributing reason for the present con-
dition In the paper market.
when the Federal Trade Commission
declares that the jobbers have been man
ipulating the news print paper market,
that assertion is not borne out by fact.
I'VE make no speciality of news paper
but we endeavor to carry a full stock
of such sizes and weights as are used
by the country weekly newspapers in
the territory we cover, which embraces
Maryland, Virginia, West Virginia. North
Carolina and South Carolina. ! know
of no order that we have received from
any of our customers that we have not
been able to 1ll, and the percentage Of
proft we have added to our cost has
not been greater than it has been for
the past five years." said Mr.. Andrews.
Cannot Make Contracts.
As a matter Of fact" he added, I'VE.
land / believe a majority Of the paper
tobbers in the United States) are in prao-
ticaIly the same position as the small
publishers are. We have no contracts
for our supplies with the manufacturers
nor can we make any contracts with
them for the coming year. The quota
| tions we have received during the last
thirty days for sheet news, suitable for
country weeklies are more than double
the prices we understand the large news
papers have made contracts for In view
of these facts you can readily see that
when the legitimate Jobbers' profit Is
added. It brings the price Of news paper
to the country weeklies to a pretty high
price.
Mr. Andrews stated that the Federal
| Trade Commission was unsound in its
unofficial dictum that the jobber should
sell at a reasonable profit and disregard
the market price.
Has Suffered Losses.
1T buy at cents a pound" he said
| in explanation, and my supply is on
hand when the market price reaches .
cents a pound. must sell at a loss. I
cannot expect the retailer or purchaser
to pay me reasonable profit on a
Wholesale figure based at 8 cents a
| pound. when the open market affords
him the fullest opportunity to buy at
! current prices. Therefore, maintain.
! since must pocket a loss in this in
/ stance, and this has occurred in my
| business within the last nve years. 1
should be given the opportunity OF TAX
| ing advantage of present market prices
II have a stock on hand bought below
current wholesale prices.
In that I do not feel that we encour-
age speculation. for the paper market is
not such that speculation Is possible to
any degree worth consideration The
manufacturers will not contract for
| stated delivery on any large quantities.
That condition has been true for a long
| tina
For that reason I feel reflection on
| the tobber is not fair. think that when
the Federal Trade Commission looks into
this phase of the situation II win see
| that my statements are founded upon
fact"