The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-12-20
PROOF OF PAPER
COMBINE SEENIN
CONTRACT ACTION
Manufacturers Refuse Bids ON
Others Customers.
Force New York Publisher to
Accept Their Terms.
PRESENTS COMPANY $500, 900
Had to Cancel Old Contract for
Paper Supply.
And Take New One at Much
Higher Price.
PRESENTS COMPANY $500, 900
Had to Cancel Old Contract for
Paper Supply.
And Take New One at Much
Higher Price.

Washington Dec 20.-Another
phase of the news print situation has
arisen which is considered as being
conclusive proof that the present high
price of news print paper and present
apparent shortage are due to a COM
hination of the paper manufacturers in
restraint of trade and therefore it is a
case for the department of justice.
This is that an important New York
newspaper had a contract for paper
at the former reasonable prices which
contract Appropriated $4,000 tons per
year. The expiration date of this con-
tract was April 1, 1917.
This publisher, in order to protect
his supply for the year 1917, began
negotiations with the paper manufac-
turer with whom he had the contract
for a renewal of his contract after
April l, 1917. The manufacturer told
him that he was ready to take care of
his requirements in 1917. provided the
publisher was willing to listen to
reason"
When they got down to detail the
paper manufacturer made the astound-
ing proposition to the publisher that
he should give up and relinquish his
present contract and let that contract
terminate on the 31st day of Deem
| Der, 1915, instead of the first day of
April, 1917. and that he should sign a
new contract for his paper require
ments for 1917 at the new price of an
proXimately s23 ton over and above
the present contract
Gives Company 100000.
The publisher did not see why he
should make the paper company a
present of about $500. 900. because
that is exactly what the proposifion
meant, and in addition have the privi-
lese OF paying $23 a ton more for his
paper Tor the year 1917
nan
lne attitude of the publisher, but ex-
plalned to him very politely that If was
necessary for him to get more money
Tor MS product and if the publisher
couid not see his way clear to can
oe!liIls ms present contract, the paper
company would not feel obligated to
reserve for the publisher his REQUIRE
! hlents or paper after April /. 1917
me New York publisher imn3e-
dlately saw the force of the arp,,-
llleIlt. he Knew that under the agree
nent existing no paper manufac f,,ra-
would bid to supply him with na,,e,.
AFTER April l, 1917 He realized tbet
the agreement between the name
companies that they would not hid ~.
Sach othefs customers would prevent
MIN from making a contract for his
| requirements and he would have to o.,
INTO the open market to purchase pa
/ per as he needed it. with a strono
probability that he would NOT he ahle
TO get the paper.
Nearly Million More Year.
The New York publisher asked for
Tune TO consider the proposition b,,t
was told that he would have to decide
at once as the manufacturer would
not otherwise guarantee 10 reso,,.1
paper to meet the publishers reouire-
mentS. "ii &
Therefore in order to insure his
pubIlcation the paper which il rea5a1
to get out its daily issues the pub1isbor
e oan+ three months of his paper
contract or little less than Q 400
TONS OF paper. at cost to him Of
apout 100000 and agreed to mr.
ehase ms entire supply for the wear
1877 beginning January /, at the new
prlce-$23 a ton over the nrice which
he had been paying.
ne new contract means that this
puolsher will pay 100000 more for
ms print paper in 1917 than he did
! this year.
| 1t was also said that exa ctIy similar
| propositions have been made TO otbar
/ publications by other paper manufac-
: tUrerS.