The Washington herald., 1916-11-05
news PRINT INQUIRY
PRACTICALLY ENDED
Preliminary Statement of Trade Boards
Findings Made Public.

Investigation Of the advance in prices
Of news print paper. which was under
taken by the Federal Trade Commission
| by direction Of the Senate has been
practically completed. and the report will
be published in the near future.
This is about the time when negotIa-
lions for renewal Of contracts between
newspaper publishers ana news print
paper manufacturers usually take place.
The commission has, therefore decided to
make public Immediately certain funda-
mental facts established by the fnvestiGa-
tlon. Before the report 10 issued the par
\ ties interested will be given opportunity
70 appear before the commission at a
| hearing.
In tts statement the commission forms
no conclusions. reserving these for the
main report II found that the manufac-
tcrers OF news print paper were not re-
ceiving any such increases in price In the
early part Of 1916 as was shown IN the
current market prices. In the first half
OF the year. according to the statement
the quantity produced was somewhat
greater than In any preceding half year
since the middle Of 1919 While the ex-
ports from the United States Increased,
from Canada.
Advance Began I'm 1915.
The price advance in news-print paper
| OSeoH eoIY IN lslo Most news print
| paper, probably about 80 per cent IA sold
on contract for periods OF a year or more,
| Betore the price advance began. contract
prices for news print paper were Reper-
ally less than 81 per 100 pounds, T. O. b.
niu. During the first half Of 1916 con-
tract prices In some instances went a.
| high as s. and since July / 1915 have
run as high as $50 Most Of the con-
tracts now In operation will expire within
three or four months
| On current market purchases pewspa-
| per publishers have been paying manu-
| iacturers and jobbers very much higher
prices. Before January ] 1916 current
1 market prices ranged generaIIy betxeen
" and s. per hundred pounds. delivered
depending on quantity, freight and other
circumstances. but since that time they
1 nave gone up as high as IS or g. per
hundred pounds for a considerable vol
\ ume Of business and even higher in eD-
| ceptional instances
The commission found that on the Az
eraee The actual net receipts OF domestic
manufacturers for news print paper were
less than y per hundred pounds during
the first half Of 1916
Manufacturing Costs Less,
The average cost Of manufacture OF
| news print paper I'm domestic mills WAS
less than $50 per ton, or SI.S per hun
aIed pounds. during the FIRST half OF
| -N-S- 81 NAlSi liltlF. lntSe average
| were slightly lower than the average
costs IN any year from 1913 to I9.5
! MARKET prices Of some Of the materials
| OF manufacture advanced and were uu-
| usually high. Sulphte and ground wo,d
were produced by mos; paper msnuftc-
uIers "ithout increase in cost. and no,
bought at market price. while some
other manufacturers were protected
| against increased price b. contracts
Other materials which increased ,,
coroing to the commission. were small
| factors in the total cost. " hiIc certain
economies We're practiced in other cN-
pensive materials
| II is generally claimed -, the trado 81
costs ia the future will increase rsrticr,-
larly OF account OF the -. 1-rl,s Of Isl,,-
IN the Canadian woods and the ,,ns,
luent Increase IN labor cost nr brinRi,.
logs l. the mills
II News Print stock. DECLINE
The stocks OF news print paper. wn,h
are very small I'm comparison with lie
production. not only declined during lh,
first half of 1916. but also wert lower than
at any time during the year Iqls.
The quantity OF news print papcr I'm
ported, chiefly from Cansd. =, ,.usr..
ABOUT one-third OF the domestic prodr,--
ton and showed a great Increase in ,r,.
first half Of 1916. Exports also increa seri
during this period. though small compared
with imports
As there was a large increase in produ,-
lion ana imports. accompanied Toy = dc
cline IN stocks. while there was OF ,
small tonnage exported. 1t i evfdcn, that
there was 4 decided increase in ,.rrsIrn.,-
ton during the first half oC 1916
An increase in the demand for news
print paper is also indicated BY tho sworn
statements respecting The circulation OF
newspapers made to tn" Postoffico De
partment generally show larger issues
by the leading newspapers. and hy the
| fact that the number Of pages OF the
| larger newspapers have been generally
increased on account Of large Increases
In advertising and news matter.
Makes No Forecnst
1t is not intended in this statement to
make any prediction about the future
course Of news print paper prices but
merely to indicate some important facts
TO those interested in the buying and
selling OF paper in order that they may
act more advisedly in making new con-
| tracts.
| However. the facts shown here arc con.
fined to matters OF statistical chHrac-
! ter. and do not cover other phases Of
the situation. including various trade ac-
tivities Of the news print paper manufaC-
| turers. jobbers and newspaper publish
ers These questions will he a subject
OF further consideration by the commits
| sion, ana some OF tneln VIII he covered
by the public hearings which. as already
| stated, the commission intends 10 hold I'm
the near future.
| Before the recent price advance Ccr-
tain other grades of paper were showing
higher profits per ton than news print
paper. and there was n tendency to
change from this grade TO other grades.
| This movement seems to have been
checked for the prCCent by the high prices
Of news print paper. Furthermore, Il is
stated that before the end of this year
| four new machines two in this country
and two in Canada, with an aggregate
daily capacity Of about 1GN tons. will bc-
gin operations on news print paper Other
projected or perding Developments ap-
/ parently will require somewhat longer
| time TO become available
HEnDHCT0UTN AIITAEkI