Omaha daily bee., 1916-11-05
COST OF PRODUCING
PRINT PAPER is LESS
Expense Lower Than Average,
Despite Price Publishers
Must Pay.
REPORT OF TRADE BOARD


news print paper prices, the Federal
Trade commission declares that dur
ing the first half OF this year when
prices alread" were soaring to I'M
p-eceudented figures. the average cost
OF producing print paper i'll domestic
mills was less than Sl.65 per hundred
rounds. or below the average cost IN
tie last three years.
The commission announces that be-
fore isuing its report public hearings
viii he conducted and manufacturers,
publishers and others interested gwen
an opportunity to appear. No date
IS set for the hearings, but the report
Is said to be ready TO send TO the
press in the near future.
What Publishers Say.
Certain facts developed by the in
curry are made public now, because
most OF the publishers contracts Tor
paper are about to expire. Contract
prices rose this year from less than
81 per hundred to S. and $3.50 and on
current market purchases the pub
fishers have paid 81 or more for paper
bought in the same way prior to Janu-
airy J., for between 81 and S.. The
statement follows: ......
The Investigation of the advance In prices
Of news print paper. which was undertaken
By the Federal Trade commission by diree-
ton OF the senate. has been practically com
pieted and the report will be ready to SEND
10 press In the near future. Considering
the large mass OF data involved the work
has been done In an unusually short lime.
This is about the time when negotiations
for the renewal Of q large number o. con.
tracts between newspaper publishers ana
news print paper manufacturer usually
take place. The commission has therefore,
decided to make public Immediately GER
tain fundamental facts which has been
established by the investigation some o.
the facts stated here have been aHeertained
through computations which have just been
completed
No conclusions are drawn from these
facts In this statement, such matters being
reserved for the official report Before the
report Ia issued the news print manufae-
turers newspaper publishers and other par
ties Interested will be given opportunity 70
appear before the committee before pub
lie hearing.
The price advances In news print paper
which occssioned this Investigation began
early IN 1919 and has continued down TO
the present, Most news print paper, prob
ably ninty per cent. is sold on contract for
periods Of year or more Before the
price advance began contract prices for
~. ,a ra nn"ras ! h mill Dur.
~ ps ~ "s Spst sair ~ ipis. contract prices
&c &c ,srr. nr.nfi,is. /, some u,rtances went
AZ high as 50 per hundred pounds, and
since July 4 1916, have run as nigh a.
49, .,,,,, $3.50 wttbt,, three or four months
eon ~ .,.ra,, ,,ar,sat purchases newspape,
.',,,,s,.Nrs. rave bear navinr manufacturer,
ppo w 1890 ,s,y ,,,,,ch h,gber prIcea pc.
INV INV 1 q,,,ss, ,eis e,,rrsnt market price.
.p.s 1870 ,.a,s.r'i,, hat,.cen 40 and a ne,
sanAnu an,i,,a..a danan,,ry IN onuntity
spnn n,hor eirc,,,nsta ncea, hut ,slnc,
''sHs ""' H. h.ys rnns M ss high n,
~ ~ ans' ,,,rassd ~, conaiderabl,
~ hh,'s,a"ss ma eyar hlrher N ex
- III " u.ssns ' 49,
y. Nai'' '"ss@ave TO
.r,. .s.,aa ,aa.,.aa NJ oamsas,e m,nsfac
4, - 81 news print paper did not edvanc
/. funythine lilo the degree that icurren
ny tet prices advanced. ebucnuse most Q
ID paper was sold under contracts pre-
,io siv made on the average. tho actua
receipts Of domestic manufacturers 70
print paper were ieEs than w pc
= d.'od pounds during the hrst haif 0
tyIg
s.i,e average cost OF manufacture Of new
issnnner n domestic pllls was teas tina
ssa ,,er Inn or slgs pfr hundred. durin
d fFst half Of 1916 as shown both b
tn manufacturers own cost shsa's an
Il, Ma eoEis as reyierd by the accountant
N he commission. Furthermore these AZ
assaxs costs In any year from 1918 /
i@i6
hough the average cost declined IN IN
n al half Of 1915 this market prices Of som
~ the materials Of manufacture advance
and were unusually high
II should be noted that the most import
ant materials which advanced IN prize
go. 4 suar
by most Of the paper manufacturers With
o,,t an increase Ia cost and not bought o
market prioes, while some other menufat
turers were protected against thu tncreas
in prices by contracts, Some Of the oth,
materials which were purchased ~ y.
vaneea ptlpas W., ~. ~ saoan,n,s. aise Ne,
n ~. ~ Inc nse 81 extensive material
p'Nests'~ :" 'N - - ~
Exurevses No Prediction.
:, a.r,,,, e,.imea IN the trade TN,
ssnsi ,,',',r Mn, incr.sss nariie,,ial
costs " Wy ~ W. .saro,,v ~ III or in N
owinh ~ w go ,hs .onsen,,rnt 1,
canau'E mouus , ~ hringiny loss
,,,s ThIs Is necessarily a matter
w ,ss.'i,' ...rni,, ,vhich the romiiissio
preuictv" aon n,,i
expresses no op'p,p" rr,,t narer ny,
sana.tic ,nanufaeturers In Il
49, III ~ 'ints was somewhat great
MY. ~ aoy nreceainn half year since Il
thhh IN any TN s,rrsas, II. nroduetls
iniuoae o ~ Nv runnlng into fuli q
wNs aeco', paenrt,v most mi,ls have be,
p ne.sy. ,nsntvs four hours Der day for 4
~ nor weck
ohSs p ", ~ ,aws mint tpaper in
~ ash{on zane chiefly from canad
por.su a..a,,, nne. third o. The domest
eaus.ev All shoyed great increase
plpus n.uv ~ ~ ipIe The quantity @
Wy ns' Ia in.yaa..d daring this period a
po.asp ST. .s. asaar,s ,vsye small compn r,
Inousn s Tha ,r,res. however, offer,
VIZ .npn e,ysys we're MIN,
~ s,enls ~ news print paper. which a
very small In compa rson with the produ
ton, not only declined uurihE .ns ~.
half OF fslss but ALSO were ,owef '''
at any time during the soAr NV