South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-11-04
FIND NO REASON
FOR PRICE BOOST
Paper Mill Owners Boosted
Figures Although Ex-
penSeS Are Lower.

WASHINGTON. Nov. Ain a
statement last night announcing viz
tuaI completion OF its investigation
OF news print paper prices the fed
eraI trade commission declares that
during the first half OF this year.
when prices already were soaring
TO unprecedenteG figures, the average
cost OF producing news print paper
in domestic mills was less than 81
So ger hundred pounds, or below
the average cost in the past three
years.
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 rose this year from less than
50 per hundred TO 50 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 in part:
THE investigation Of the advance
in prices of news print paper which
was undertaken by the federal trade
commission by direction of the SEN
ate has been practically completed
and the report viii be ready 10 send
10 press in the near future.
Advance Began Early i'm 1915.
The price advance in news print
paper which occasioned this inves-
tigation began early in 1916 and
has continued down TO the present.
Most news print paper. probably
about 80 percent is sold on con-
tract for periods Of "A year or more.
Before the price advance began, con-
tract prices for news print paper
were generally less than $500 per
hundred pounds f. o. b. mill Dur
ing the first half of 1916 contract
prices for large quantities in some
Instances went as nigh as s pei
hundred pounds and since July i
1915. have run as high as $3.50
Most Of the contracts now in opera
ton will expire within three or four
months.
ION current market purchases
newspaper publishers have been
paying manufacturers and jObbers
very much higher prices. Before
Jan. i. 1916. current market prices
ranged generally between 81 and 50
per hundred pounds, delivered de-
pending on quantity. freight and
other circumstances; but since that
time they have gone up as high as
Sc or 81 per hundred pounds for .
considerable volume Of business
and even higher in exceptional in
stances.
THE average price received by
domestic manufacturers OF news
print paper did not advance in any
thing 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 for new;
print paper were less than 81 pei
hundred pounds during the first hall
OF 1916
Manufacture Cost Lower.
The average cost OF manufacture
OF news print paper in domestic
mills was less than S3S per ton, oil
S1.65 per hundred pounds. durinl
the fret half Of 1915. as shown boil
by the manufacturers own cos
sheets and by the cost as revised
by the accountants or the commits
sion. Furthermore. these average
costs were slightly lower than th'
Il average costs in any year from 1917
20 1915.
Though the average cost declin
ed i'm the first half Of 1915. the mar
ket prices of some of the materials
Of manufacture advanced and wer,
unusually high.
1T should be noted that the mos
important materials which advanced
in price. sulphite and groundwork
were produced by most of the papei
manufacturers without an increas,
in cost and not bought at marke
prices. while some other manufac
turers we're protected against tn,
i increase in prices by contracts. Som,
OF the other materials which weT,
purchased at advanced prices werl
very small factors in the total cost
Certain economies were also prac
ticed in the use OF expensive mater
81 rrH