The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-02-17
Paper Makers Bend Knee, Fac
ing Conspiracy Trial.
Willing to Let Govt Board FIX
ga Fair Price"
SAVE PUBLISHERS FROM RUIN
Establishes Precedent FOR GOVT
Arbitration of Prices.
Investigation Proved Editors
MuIcted s3O,OOO,OOO Year.
1-HE, wuITE PAPER OFFER.

THE WHITE PAPER OFFER.
s.The offer. with its promise of low
CT prices and more equitable distf1ou-
ton not only means the saving OF mil
lions to the great publishers OF the
country. but .Gvcrts the absolute rum
that now threatens hundreds OF the
smaller publishers.
ut was the evidence procured by
the commission and turned over TO
the attorney general that led to the
recent preparations for criminal prose-
cution nv the department OF justice.
s.For the last two months, the COM
mission has been seeking speedy re-
lief from an intoIcrable situation by
means of conferences between puDnsn-
ers and manufacturers, but oeaulocA
was the only result
washington. Feb. 17.-Whether the
government will go on with criminal
proceedings against certain big news
print paper manufacturers is to be de-
cided probably today by the federal
trade commission.
In its report following nearly year
OF Investigations and hearings, the
commission announced it had reached
the conclusion that the alleged news
print paper shortage is largely artifi-
ciai. prices are eXtortionate and free
competition has ceased to exist
CoincidentaI with this statement
from the commission, that body an
nounced the big newsprint paper man
ufacturers had decided to let the COM
mission arbitrate a fair schedule of
prices" for their production, a sugges-
FOR h n
some time ago fatty turned down
when made to them by the publish
ers in Chicago.
while there were signs today that
there might be many demands for the
government to go thru with its Grim
NAL prosecutions, barely started in
New York under direction of Francis
T. Heney. it was limited here the COM
mission may accept the newsprint pa
Per manufacturers suggestion. Off
Gals explained that since the some
what involuntary suggestion mot only
means the saving of millions to the
great publishers of the country but
averts absolute ruin that now threat
ems hundreds of smaller publishers. >
and since such government Farbitra-
tion of prices will mean also a big
saving to the government in averting
court action, it may be found wise to
accept the belated proffer.
The fact that acceptance will mean
establishment of a radical precedent
4-government arbitration of prices
was also pointed to as an important
argument in favor of peaceful set
Element of the matter
1t is this last phase of the case or
which officials laid most stress. High
est administral heads declared agree
fnent between producers of such g
Widely used commodity as print pa
per. to what is virtually government
fixing e prices and distribution OF
product marks an epoch in the ex.
pansion of governmental functions
II opens up widest and most far.
reaching possibilities for the future
along this line.
Features of the Offer
= The principal features of the Offer
BY the print paper manufacturers are
THAT the federal trade commission
find. fix and determine forthwith:
&s"(A) The probable or estimated
\ Increased cost of production of stan
dard news print paper in the United
States during the period of time com
Tnencing March l. 1917, and ending
September l, 1917, over the cost o
production of news print paper in tn
Emitted States during the year 1916.
"(B) What price per hundred
po -nds at the mill would be the fai
and reasonable price for the sale o
such paper for use in the United
States"
1t is estimated that if the propose
is accepted and reasonable prices ar
fixed, at least $30,0OO.0O0 will b
Saved to American publishers thi
year. Nothing is said of increaset
production, but it is understood tn
manufacturers are willing to kee
enough machines on news print t
tEsure a paper supply for the entir
country. .tt.-s----
1t is learned that the Canadian gov
ernment has fixed a maximum pric
of y cents a pound on ncws print sol
to Canadian publishers, leaving tn
price to be charged Americans to b
determined in this country. The tw
governments have worked in conce1
In the ituation, trying to find mean
10 avert the threatened disaster I
publishers.
Present Contracts Are Good.
ut is agreed by the manufacturer
that they will carry out all eXistin
contracts even if at prices lower tina
those fixed by the commission an
that with respect TO contracts whic
are for higher prices. reductions Wi
be made. Further important CLAUSE
in the proposition are these:
And each of the undersigned do
hereby agree that it will, so far
lies in its power, limit each contra
purchaser to his necessary requir'
inents only and sell to its custome
respectively who have no contract
sufficient paper to meet their nece
sary requirements only during sa
period of time. at price not in e:
cess of the amount determined by IL
federal trade commission.