Evening star., 1916-08-01

all the information possible on the sub
ject should be secured.
He was also questioned by Attorney
Merchant, in the employ OF the 1ederal
trade commission. who is WORKING on
this investigation, regarding whether
publishers could stand an increase IN
paper cost. increase in sales price OF
papers and putting new adVertisihs
rate into operation. He thougnt i.
would be extremely difficult to do any
of these at this time. He told OF one
specific case of an increase In sales
price of a particular paper which I'M
mediately lost 5000 to 10000 in circu-
lation. affecting also the volume OF al
vertising
Secretary and Manager Palmer also
of the American Newspaper Publishers
Association. also spoke, indorslne VIVA.
testimony Mr. Glass had given; anu
appealed to all newspaper publishers
to get in touch with their associatiol,
In bringing all causes of complaint anu
Information on the subject to the at
tention of the association
Price of Sulphites Important.
Mr.. Nesbit. representing the Evening
Journal of Wilmington. Del. asked Mr.
Glass if his association had investi-
gated the subject Of importation OF
sulphite. He said two papers ne rep
resents had given the difhculties over
importation of sulphites as a reason
for Increased cost of paper; MT. 'iass
recognized that this matter was a Sc,
rious consideration In the ihcreaseu
cost of paper. ..,-,,a
Commissioner Hurley said the commis-
10 subject
response to a question from Commissioner
Hnriev Mr. Glass said his association
will he glad to confer with the federal
trade commission. as 1t gets Information
during its Independent investisatlon,
y III. Zerbey of the Pottsviiie Hepuph-
can. chairman of the white paper com,
mittee. the Pennsylvania Associateo
Daiiies and the National Editorial Asso-
citation. testified that some papers nave
been unable to get sumS,eh' .o1d mt Sappy make M
deliveries. He said he managed 10 get
ont his paper by holding down TO SIX
nages. throwing out advertisements etc.
ali this, though he had been dong Dust
ness with the one broker iot '"tns hius
years and always paying his oiiis
promptly.
One Storing Large Quantity.
He oueried thirty or forty manu-
ia ac,urers and received only three re-
n,,es This correspondence showed
| him he said, that the manufacturers
had clearance house Of information
Despite extravagant offers OF advance
| navment he could get no paper except
throueh his original source and Two
small jobbers. He found out that enc
large manufactured, on mis- own testi-
mony, was holding more than mil
lion dollars worth of paper In storage.
| a
| "soueezed." He was told from all
sides to Buy paper at any price; =.
He used to pay s2.o4 t: o. b. his Of
fee and now to one proker ls payihs
s335, he testified.
A great deal of excitement was
| caused when. on being queried by Com
missioner Hurley, Mr.. Zerbey said the
manufacturer was in the room VINO told
him their concern was holding more than
| a million dollars worth Of print paper.
p T. Dodge stood up and said he was
the man referred to and released MT.
Zerbey from any confidence regarding
letter be read showing that this paper
was held in reality for the protection
of the publishers. Mr.. Zerbey said the
reasons given were fro or some such
calamity; but stated his belief that II
one rnanufac acturer was holding q mil
lion dollars worth others are uoing the
same.
Advertisers Urged to Curtail.
Mr.. Zerbey testified that some men,
hers of the association he represents
have been forced to send out word to
their advertisers urging them not to
send in so much advertising.
He also told the commission OF a
number of specific instances in which
| y,o1 IN n iaA
on the sale price Of their papers. He
said that he and others would like to II
they could without throwing away their
circuiation.
He brought out tho fact that under
ass than ,sso in % ss.
States. He thought this q challenge
Turning to Mr.. Dodge, he said: u
wa 1T to pay you this testimony:
wherever 1 have Investigated have
found out that your people are using
your customers whittier than any
others"
nrice. He said that ono cause Of In
creased prices is the heavy selling force
empioyed-"and why employed II there
NJ Dodrs was recognised. He asked
that Mr. Zerbey fle with the commits:
sion the letter referred to. He said
thare is nothing in the correspondence
~ ths International Paper Company he
represents that is not open to the
public. ,....,.,
~onnanv makes one-third Of the paper
Hsed OF, the continent. one-third II
!, made by Canadian mills and tho Other
7 one-third by smaller manufacturers
on hand Is in ease of Hoods. nre
sfrtkee. etc, ahd this has been re-.
duced to less than half what 10 usual,
, held.
Calls Present Liquidation Unjust.
He said its factories are turning
out print paper - fast - possthls
He criticised the present lsg1slattoa Q,
grossly unjust TO the paper mills o.
| the country. -
- He warned that unless conditions q