The Dickson County herald. (Dickson, Tenn.) 1907-1979, 1916-08-11
EDITORS CLAIM THE I
. TRUST RA|SEDPR|CE
THE PAPER MANUFACTURERS
DENY THAT A COMBINE
WAS FORMED.
PROOF MAY Be SUBMITTED
Publishers View Situation With Gen
uine ACKNOWLEDGEMENTS Face
Failure uniess Increases
Checked Early. -

Washingtou--Charges that the price
Of news print paper has been forced
exorbitantly by n combination OF man
ufacturers were made by publishers
and denied by representatives Of the
manufacturers at hearing which con
ciuded an exhaustive inquiry into the
subject by the Federal Trade Commits
Eion,
Frank +. Glass, OF Birmingham, vice
president OF the American Newspa
per Publishers Association, told the
commission he was morally con
vinced' there was collision amsng the
manufacturer aud expected TO be able
by October to present legal proof
of II.
r. T Dodge, president OF the Inter
national Paper Company, declared high
prices were due TO an enormous In
crease In demand. and Insisted that
the manufacturers were not making a
fair return on their capital.
The commission undertook the in
yestigation under direction OF con
gressional resolution and will begin
work Immediately drafting Il report 80
bo submitted at the earliest possible
moment.
Other witnesses at the hearing In
cluded II Zerbey. chairman Of the
white paper committee Of the National
Editorial Association, aud representa-
tives Of the Pennsylvania Associated
Dailies + X. Stoll, manager OF the
Plttsburg Publishers Association, G.
N Andrews Of the Easton, Pa, Free
Press; W l.. Washington o. the Cam
den, N. J.. Courier, Charles Is spatz
Of the Boyertown, Pa, Weekly, and
George + Steele, secretary, and Tim.
othy A, Ansberry. counsel for the
News Print Manufacturers Associa
ton
MIR. Glass said his associates viewed
the situation with extreme alarm and
had recommended retrenchment In
consumption by smaller editions abol-
ishing returns and circulation activity
lBcreases OF IS 10 80 per cent on
contracts and sometimes 100 per cent
on emergency orders, he declared, had
destroyed the PROFITS OF most newspa
pers, and already had driven some to
the wall
One western paper, he said. reported
an Increased paper cost OF $3.50. 900 an
nually. He claimed II was almost i'm
possible for publisher to get quota.
lions except from the mill no usually
dealt with.
Mr. zerhey charged favoritism In
the sale OF paper, and declared pres
ent prices vary widely according 10
the within OF the manufacturer. the dis.
crepancy running from two TO six
cents q pound He added that while
some publishers can hardly buy paper
for cash even At exorbttant rates. 9th
ers have made two and three.year con
tracts at favored terms
He thought Il apparent that manu-.
sac.arers had united 70 force publish,
ers 10 deal only with the mill they
were accustomed to patronize. and
that any further increase beyond I'VE
per cent would force many OF the
smaller papers under aao0o circnla
tion into bankruptcy ......
In defense OF the manufacturers, Mr.,
Dodge explained that 1000 600 worth
of paper was held in stock by his
company as a necessary safeguard for
contracts In hand. but said the reserve
had been depleted from $4,000 tons 10
! 200 In order to AFFORD relief and that
all new orders, including contracts for
nearly loO,Noo tons frnm abroad had
been refused
The great difficulty, he said. was
that very sudden and unexpected 10.
mand increasing the countrys paper
consumption over 20 per cent In the
past year. had eutIrely outrun the
available supply
Moreover nearly every item OF ex.
pense IN manufacture had been in
creased and the import " timber
bought In Canada for manufacture had
been forbidden Ivy Canadian authori.
ties shortly after the American duty
ON Canadian paper WAS removed
No new mills had been built In the
past year he said, as Il WAS imposst.
HE TO make fair return on capital