New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-17
gEWsPRINT MEN
Ask U. 5. BOARD
70 NAME PRICES
manufacturers Make Offer
.s Grand Jury Begins
Inquiry
WILL NOT AFFECT
INVESTIGATION HERE
Proposal, Not Yet Accept
ed, Marks New Era
Saws Commission

.,osed that the Federal lraue NoHi
-, shall arbitrate and determine
- and reasonable maximum price for
- from March 1, 1917, TO Septem-
- 1917. The proposition is MADE
.,Itaneously with the meeting IN
- York Of the Federal grand jury TO
,..iosts whether increases IN the
.-i,. Of newsprint paper involve
s-ini7sl violation Of the antitrust law
This announcement was made by the
r.ssrsl Trade Commission to-day foi-
lov;pg a conference between Francis
Hepev. special counsel for the COM
n;,.ion. and officials Of the Depart
-. Of Justice. The proceedings in
..;,r.sd by the Department of Justice,
/. r.s learned. will not be affected
r., nroposition has been taken under
.5v;ssment by the Trade Commission;
II is estimated that II the proposal
h, accented and reasonable prices are
eysS al least S3O,000,000 will be saved
- American publishers this year
Vothing is said Of increased proouc'
ton but il is understood the manu-
sa-,rrers are willing 20 keep enough
rsehiuery on newsprlnt to insure
go sunDlv for the entire country.
i-noASeial advices reaching Washing
.on rerort that the Canadian govern
zen. has fixed the price Of newsprlnt
- nublishers throughout the Dominion
!, S75 so for 100 pounds. While no
Ststsment was forthcoming from the
commission as to what, in its opinion
,ronld be a "fair and reasonable maxi.
MN" price for newsprint in the United
states. the publishers, IL rs understood,
NAV look for q much lower price than
they now are paying.
To Garry Out All Contracts
According 70 the offer of the manu-
faeturers. they agree 20 carry out all
.Yistipg contracts. even If at prices
aver thar those hxed by the commits
sjon. and that with respect to contracts
Which are for higher prices reductions
will be made.
arhe offer. with its promise Of lower
priees and more equitable distribution,
no. onlv means the saving Of millions
- The great publishers Of the country"
ssvs the commission in statement,
int averts the absolute ruin that now
threatens hundreds Of the smaller pub
fishers. .
@The proposition is the outcome Of
me newsprint paper investigation that
the commission has been conducting for
the last eight months As a result OF
publie hearings and the work Of
economists. accountants and field eX-
psrts. the commission arrived at the
conclusion that the paper shortage was
largely artificial, that prices were ex-
tortionste and that free competition
had ceased 20 exist.
1T was the evidence procured by the
commission and turned over 70 the At
torney General that led 70 the recent
preparations for criminal prosecution
By the Department OF Justice.
For the last two months the COM
mission has been seeking speedy relief
IRON an intolerable situation by means
Of conferences between publishers and
manufacturers. but a deadlock was the
only result. Determining upon decisive
measures, the Federal Trade Commits
sion employed Francis J. Heney, OF Cal
ifornis, 20 assist the commission IN Sc
curing instant action and relief. II IS
through conferences between Mr. heney
o. the one hand and the manufacturers
and their attorneys on the other that
The proposition has been made 20 put
he whole matter up 20 the Federal
Trade Commission.
Agreement with Manufacturers
This was the proposition suggested
5y the publishers January q at Chi
eago conference and refused at that
tine By the manufacturers. Once con-
rinesd Of the commissions determine
ton, as well as impressed by its pres
sntsti0n Of the evils ald perils Of the
sItuatien. the manufacturers made the
submission in a spirit OF fairness and
The Federal Trade Commission is
rsqaested 70 find, fix and determine
forthwith:
-s) The probable or estimated in
creased cost Of production Of standard
aeTsprint paper in the United States
during the period Of time commencing
Nsrch ], 1917, and ending September /,
1917 over the cost Of production OF
aeEzprint paper in the United States
during 1916.
-fb) What price hundred pounds at
iae mill would be a fair and reasons-
DE price for the sale Of such paper
Tor use IN the United States during the
Aforesaid period Of time, from March
I, 1911, % September I, 1917, taking
MO confederation such increased cost
o. production and other conditions AZ
iseting respective manufactures which
ne commission may deem pertinent al
MS time
Commission to Pix Price
i il further agreed that the paper
manufacturers will limit each contract
purchaser 70 his necessary require
aents only, and sell 10 customers who
lave no contracts sufficient paper 20
meet their necessary requirements
9aly, during said period Of time, at a
guee not IN seXcess OF the amount
.sorc, fixed and determined By the
FEDERAL Trade Commission 20 be fair
4nd Reasonable maximum price on sucn
PAPER
And the undersigned does also
gree and bind itself 70 cooperate with
ne Federal Trade Commission pa
crying out any plan approved by the
y9nlsaion % bring about the as
.uDalon Of news print paper for the
g-fpose Of securing prompt aud ehec,
s relief % the small publisners Of
~ United States, and which will en-
e,is such small publishers through co
ptfatiYe buying, 10 secure their news
.l.ht paper a. practically the same
re a. that which is hereinunder 20
snioyed By the larger publisher
provision being made for &ny ad-
-ssonsl cost o. distribution
ana each Of the undersigned while
admitting, but on The contrary *
s-eiy denying, that any Law hsf been
natsd ~ b, does nevertheless hereby
gre nat the Federal Trade Commis.
~ nay n ~ finds 10 necessary Or adj
-eif proceed forthwith % make rec
9sneatlons for the readiutmcnt Of
Dssinsss IN order that IL may nsin-