New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-22
Tell Senate They Are Will
ing to Pay Same Rate as
Other Businesses
"No Profit from War"
Delegate Declares U. S. Com
mission LAX in Dealing
with High Prices"

Washington, June 21.-After a meet
ing of the American Newspaper Pub
fishers Association here to-day COM
mittee Of publishers appeared before
the Senate Finance Committee 20 pro-
test against any discriminating war tax
levied on the newspaper business.
The delegation, headed by (. II.
Baker, told Senator'S that publishers
were assisting the government in every
way possible in carrying on the war
that they recognized the need Of spe-
cial war taxes and were willing to pay
the rate which was imposed on other
legitimate and necessary businesses.
Postal rates, they declared. should
not be increased without a careful in
vestgstion, and if they were TO be
changed il should be done in the pub
lie interest and not as a war tax on a
business that does not profit by the
war.
+. ". Kellogg, of San Francisco, told
the publishers at the meeting that the
Federal Trade Commission had been
lax in dealing with the high price OF
paper.
Would Have Kept Price Down"
"The commission has known for a
long time of the fact that prices were
extortionate," he said, but has taken
10 action 20 remedy the situation. Fed
eral orders a long time since would
have put stop to the soaring prices OF
paper
The recent report Of the Federal
Trade Commission on the print paper
situation was discussed AZ length, but
no recommendation will be made 70
Congress concerning proposed Federal
control OF manufacture and dlstrlbu-
ton.
The association indorsed the Walsh
bill. providing for development of
water power and urged newspapers 20
support the measure. Members of the
association gave assurance that they
were in touch with interests ready %
proceed Immediately with such deyel-
opment If Congress enacts the legisla-
ton. The Paper Committee reported
that manufacturing plants employing
thousands of men and turning out in
dispensable products have been forced
70 locate IN Europe solely because OF
the restrictive waterpOwer laws Of the
United States.
New Shortage Threatened
I The newsprint situation, it was
| brought out, is still far from sstisfac
tory. Canada's high excess profits tal
on newsprint mills, 1t was said. Is dis
coursglng production and threatens C
create new shortage. Agents oil
South American and Australian pub
| fishers are in this country 70 buy 100.
/ 600 tons of newsprint, which 1t IS said
may have A decided effect on the
market. Members of the association
/ are for prohibiting the export of news
print under provisions OF the export
control law.
Ottawa, June 21.-Ths newsprint
paper investigation here to-day
brought out that, by using arbitrary
cost figures for the chief items OF
paper manufacture instead OF actual
cost of production, paper manufac-
turers made profits appear as losses.
The items were the cost OF ground
wood and sulphite. One company S
treasurer testified he used arbitrary
figures instead of actual cost, on in
structions from the concerns presI-
dent, who told him the price had been
agreed upon.
This change, testimony showed, made
an actual profit in one company's 1916
business Of S7.37 appear as loss OF
S10.45 a ton.