The Washington herald., 1916-08-02
Denies FORCING
UP PAPER COST
International Paper Co. Says
Million-Dollar Storage Was
for Publishers Benefit.

denied that his firm is holding in storage
more than a million dollars worth OF
print paper, as alleged at hearing be-
fore the Federal Trade Commission yes
terday by J. II. zerbey.
He did not deny, however. that his
company had this amount Of stock on
hand explaining that 1t was the boast
of the International Paper Company.
which produces one-third of the print
paper supplies furnished in the United
States, that Il had never failed to supply
an order from one of its customers on
account Of any calamity-fre, flood,
strike, etc.; intimating that II was the
purpose of the company, like all other
concerns in supply business, always
to have on hand a sufficient stock to
meet the demand of the trade. which,
he argued. was legitimate in every sense
OF the word.
Mr.. Dodge took the occasion to crfticise
the Underwood tariff law and made the
statement that his concern is about to
build large new factory in Canada,
because of present conditions inimical
to the welfare of paper manufacturers
in the United States and declared that
unless there is improvement in these con-
ditions the entire industry would move
from the United States into Canada.
Publishers to Present Case.
A promise was made to the commission
by F. B. Glass, vice president Of the
Newspaper Publishers Association. that
within sixty days the association will
place in concise from before the COM
mission its findings and that he believes
that 1t will present legal proof that a
conspiracy exists among the manu-
| facturers, to force up the price of paper
To determine whether there was an un-
due increase in the cost price of news
print paper. the Senate ordered the COM
mission to make the investigation which
started yesterday morning.
Publishers of two thousand daily news
papers and more than four thousand
weeklies have been invited to present tes-
| timony they may wish to make OF record
on the subject.
Special agents of the commission are
now at work examining the books OF the
\ principal manufacturers of paper In this
country and Canada and expect to make
a report by October l.
Edward N. Hurley. acting chairman
| of the commission. who presided at yes
teryiay's hearing. stated that the commits
sion has two purposes In mind. namely
to obtain all information or complaints
and because It was thought publishers
might have valuable suggestions to make
! in reference to the scope of the investiga-
ton.
Fear Shortage of Paper.
The first witness called at the hearing
| was F. B. Glass, who testified that the
consumption of white print paper by the
Association he represented constituted
about one-third of the entire output, and
that difficulties in getting sufficient ton
mage has been recently experienced, in
many cases % to % per cent advances In
prices have occurred and II was almost
| impossible to get contracts after January,
1917. The publishers are fearfully con-
cerned they will be unable to secure SUI
Iicient paper to meet their urgent needs.
Mr.. Glass stated that a number of mills
are making paper cheaper than ever be-
fore and there are opportunities for fac
tories, properly conducted. to turn out
paper cheaper than publishers can buy
II for now. He further said that the as
sociation he represents expects to have
conclusive evidence to present within
sixty days.
Questioned by Attorney Hoover. rep
resenting an editorial association, re
gsrding the advisa bility of having manu-
| facturers take the stand. Mr.. Glass sale
he thought all information possible or
| the subject should be secured.
Replying to a question rega rdins
whether publishers could stand an IN
crease in paper cost increase in sale!
price of papers and putting a new ad
vertising rate in operation. Mr.. Glass
| replied that he thought 1t would be eX
tremely difficult to do any of these thing:
at this time.
Newspapers Greatly Damaged.
He told of one specific case OF this
kind in which an increase Of sales price
of a particular paper had cost the pub.
lication from five to ten thousand sub
scriptions. which affected also the volume
of advertising.
Testimony OF Endorsement OF Mr.. Glass
manager Palmer, of the American News
paper Publishers Association. and urged
that all newspaper publishers get in
touch with his association. Asked re-
garding the subject of importation oi
sulphite. Mr.. Glass said they had no
investigated the question but recognized
that this matter was serious one fol
consideration in the increased cost Of
pa per and said his association will be
glad to confer with the Federal Trade
Commission. as II secures Information
during its independent investigate
]. H Zerbey, of the Pottsville Republi-
can, chairman Of the white paper com.
mittee, the Pennsylvania Associated
Dailies and the National Editorial Asso.
citation, testified that some papers have
been unable to get a sufficient supply OF
paper because brokers could not make
deliveries. He said he managed to get
out his paper by holding down to six
pages, although he had been doing busi.
ness with one broker for twenty years
and always paid his bills promptly.
Some CONSERVATION was caused wher
Mr.. Zerbey made the statement that the
manufacturer was in the room who told
him their concern was holding more thar
a million dollars worth of print paper.
Small Publishers "SqueeHed."
Mr.. Zerbey said he queried thirty ol
forty manufacturers in regard to a sup
ply and received only three responses
The correspondence showed him, he said
that the manufacturers had a clearance