Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-12-15
PROBE OF NEWS PRINT
PAPER PRICE RESUMED
Producers, JobberS and Paper
Users Heard by Trade
Board


WASHING, ION, Dec. 1z.-The 1edefal
trade commission reopened hearings
here today in it's investigation of the
rise I'm news print paper prices, present
ing facts gathered by its investigators
in the plants of American and Canadian
manufacturers.
Producers, jobbers and paper users
were heard. Tables prepared by the
commission were brought out to show
the following conditions:
Both Canadian and United States av-
erages show no increase in cost Of pa
per manufacture in the first half OF
1916 as compared with 1915
Selling expenses in the first nalf or
1916 were lower than in 1915 and prohts
per ton were higher. The percentage of
profit on investment, figured on book
investment, increased from SEQ per cent
in 1915 for nineteen companies, to 9.34
per cent for fifteen companies in the
first half of 1916. Rates of profit on the
cost of investment would have been even
higher could the figures have been OBJ
tanned.
Market prices increased in 1915 to a
much greater extent than contract
prices.
Canadian mills are manufacturing
print paper at about $3.50 a ton less
than American mills.
PRODUCTION AND IMPORTS.
Both production and imports increased
in the first half of 1916 over 1915 and
1914 After deducting exports the guam
tity available FOR domestic consumption
in the first half of 1916 was II per
cent greater than in the first half OF
1915 and per cent greater than in the
second half of that year. Deliveries,
however, more than took care of the
increase and stocks on hand at all points
decreased 10,340 tons in the first half
OF 1916.
The statistical data presented by the
commission, phases of which those who
testified were asked to explain, conclud-
ed with series of questions as to pos
sible remedies. They were:
What measures can be adopted to
bring about q more equitable distribu-
tion of paper among publishers?
What measures can be adopted to pre-
vent prices from rising to prohibitive
levels?
Is cooperation between larger pub
fishers and manufacturers feasible?
Would an embargo on exports be adj
visable?
Would publishers profit in the long
run by refraining from entering into
contracts covering a long period Of time
at a fixed price?
Can small publishers profit by adopt
ing the plan of cooperative buying?
PAPER MAKERS SURPRISED.
At the outset il developed that the
commission had surprised paper MAX
ers by the amount of information it had
and upon which 1t asked manufacturers
for explanations The manufacturers
protested that the proceeding was unfair.
that it was not such Treatment as they
would receive in court and asked for an
opportunity to confer. The commission
held decision in allegiance while it heard
publishers.
Paper prices in Georgia vary greatly,
said r. L. Mckinney, of the Macon
News and the Columbus Enquirer-Sun.
He had purchased paper. he said, at 800
cents a pound while a competitor paid
only $40. Some weeklies, he said he
was Informed, were paying $50 cents a
pound.
II. B. Warner, of the North Carolina
Publishers association, said that letters
written to North Carolina publishers by
paper mills declining to sell to them were
in the hands of the department of JUS
tice Some few papers, he said, had sue
ceeded in renewing contracts at advanc-
ed prices but none were able to obtain as
much paper as they needed. The others
were forced to pay higher prices in the
ope nmarket. One paper, he said, will
pay $500 more in 1917, than in 1916.
Many more papers, he said, would
have to go out of business unless prices
come down. One North Carolinian he
said believed the reason he could get no
paper was because he testified at the
trade commissions hearing.