The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1916-11-10
Print Paper Costs Less to
Make; Sells for More
SCARS WITHOUT CAUSE
Heavy Demand Has Aided the
Boost; Publishers Forced
ee Pay Figure
From Saturdays Daily.

washington, NOfcLuUci, T.. IL
statement announcing virtual COM
pletion of it's Investigation of news
print paper prices, the Federal trade
commission declares that during the
first half of this year, when prices
already were soaring to unprecedented
prices, the average cost of producing
news print paper in domestic mills
was less than $1.65 per hundred
pounds, or below the average cost in
the past three years.
The commission announces that be-
fore issuing it's report public hearings
will be conducted and manufacturers,
publishers and others interested given
an opportunity to appear.
Certain facts developed by the in
curry are made public now because
most of the publishers contracts for
paper are about to expire. Contract
prices this year rose from less than
81 per hundred to So and $3.50, and
on current market purchases the
publishers have paid 81 or more for
paper bought in the same way prior
to January 1 for between 81 and So.
The statement follows:
Report Will Be Ready Soon.
The investigation of the advance
in prices of news print paper, which
was undertaken by the Federal Trade
commission by direction of the
Senate, has been practically COM
pleted and the report will be ready
to send to press in the near future.
Considering the large mass of data
involved the work has been done in
an unusually short time.
"This is about the time when
negotiations for the renewal of a
large number of contracts between
newspaper publishers and news print
paper manufacturers usually take
place The commission has, therefore,
decided to make public Immediately
certain fundamental facts which have
been established by the investigation.
Some of the facts stated here have
been ascertained through computa-
tions which have just been completed.
:"No conclusions are drawn from
these facts in this statement, such
matters being reserved for the Of
fetal report. Before the report is is
sued the news print manufacturers,
newspaper publishers and other
parties interested will be given OPP
portunity to appear before the COM
mission at a public meeting.
"The price advance in news print
paper, which 'occasioned this in
vestigation, began early in 1916 and
has continued down to the present.
Most news print paper, probably about
80 per cent, is sold on contracts for
periods of year or more. Before the
price began to advance contract
prices for news print paper were
generally less than 50 per hundred
pounds f. o. b. mill. During the first
half of 1916 contract prices for large
quantities in some instances went
as high as So per hundred pounds,
and since July 1, 1916, have run as
high as So so. Most of the contracts
now in operation will expire within
three or four months,
Current Prices Are Higher.
"On current market purchases
newspaper publishers have been pay
ing manufacturers and jobbers very
much higher prices. Before January,
1916, current market prices ranged
generally between 81 and So per hun
dred pounds, delivered, depending on
quantity, freight and circumstances,
but since that time they have gone
up as high as Sc or>$7 per hundred
pounds for considerable volume Of
business and even higher in excep-
tional instances.
"The average price received by
domestic 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 pre-
viOusly made. On the average, the
actual net receipts of domestic manu-
facturers for news print paper were
less than So per hundred pounds
during the first half of 1916.
"The average cost of manufacture
of news print paper in domestic mills
was less than $50 per ton, or $1.65
per hundred pounds, during the first
half of 1916, as shown 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.
at should be noted that the most
important materials which advanced
in price. sulphite and ground wood,
We're 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
materials which were purchased at
advanced prices were very small
factors in the. total COSTS. Certain
economies were also practiced in the
use of expensive materials.
Anticipated An Advance.
1T is generally claimed in the trade
that costs in the future will increase
particularly on account of the scarcity
of labor in the. Canadian woods and
the consequent increase in labor cost
of bringing logs to the mills. This is
necessarily a matter of prediction
concerning which the commission ex-
presses no opinion.
"The quantity of news print paper
produced by domestic manufacturers