The Washington herald., 1917-03-05
BOARD HITS PAPER men
CONTINUED FROM PAGE ONE.


an existing contract with any of the
aforesaid signatory manufacturers for
standard news-print paper at a higher
price or prices than Is hereby found to be
fair and reasonable. shall be entitled TO
receive or be given the benefit of such
reduced prices. unless he files with this
commission, prior to March 20. 1917, his
written agreement to waive and release
for sale and distribution to publishers
only, who have no contracts, percent
of the total amount of tonnage specified
in such contract.
That II any extraordinary new condi-
tions hereafter arise, which makes 1t un-
just to the aforesaid signatory manufac-
turers to continue the aforesaid prices
during the full period of the said SIX
months. this commission will readjust the
same for the whole or any remaining part
of the three months. commencing June
and ending August 81. 1917; provided that
said signatory manufacturers file with
this commission their written request 10
do so; and provided. further that III the
opinion OF this commission. the facts pre-
scented in such petition require such ac-
ton in order to prevent plain injustice
The signatory manufacturers VINO
Joined in the arbitration proposal, produce
an aggregate of one-third of the total ton
mage of newsprint paper manufactured
in the United States and Canada. They
are International Paper Company. p. L.
Dodge. president: Abittbi Power and
Faper Company, Ltd, Alexander smith,
vice president; the Spanish River Pulp
and Faper Mills, Ltd. George II. Mead,
president: The Laurentide Company, Ltd,
George Chahoon. Jr.. president: the Bel
CO-Canadian Pulp and Paper Company.
w. H. Bierman. president; The North
west Paper Company, c. 1. McNair. gen.
eraI manager, and the Taggarts Paper
Company. C. c. Sherman. president.
Prices Fixed Fair.
The opinion Of the Commission was
expressed that the prices 1t has hxed
for newsprint paper woud not produce
a fair and reasonable profit for some
Of the smaller mills under the unusual
conditions now existing as to the cost
of ground wood and sulphite. They
however do not produce more than l
per cent of the total output on thesNorth
American continent.
But strong emphasis was placed by
the Commission the fact that the
prices so stablished were entirely fair
and reasonable, for other manufacturers,
based upon their costs Of production,
who refused to join in the price-hxins
proposal Those who failed to sign the
.:roposaI were: Minnesota and Ontario
TOw.r Company. including its subsidiary
he Fort Francis Pulp and Paper Com
= NJ: Gould Paper Company. Finch
iruyn X Company. Great Northern Pa
ger COMPANY, PejepSCot Paper Com
my. Crown, Willamette Paper Com
:, IL. ST. ChOix Paper Company, Price
.,.'rc~s K Company. Ltd. Dannaconna
e. company, Ltd. and the Powell
,..~ Company. In addition to these
"a, lr:i,S the Commission also found
ne consolidated Water Power and
&c.. company and the Wisconsin River
Il" mi Paper Company can sell at
lit tdv-rce over the prices named
q ..a',e ia:r profit The Commission
.I hat ri,c Great Northern Company
.!.., most of its output at prices
..N -" lower than those named.
DiStrIbution Faulty.
g.. .cl!E- prices of newsprint paper
- f0Iind hy the commission to have
IN raost cases greater than could
i':rti!i"d by the increases in produc-
cn=t< The investigation brought out
fact that ~ reason of a faulty sys-
~ distribution followed by the man
turcrs a close balance between sup
-. ard demand could easily be develop
~ IN" a local shortage, and that such
.Gi'ioH was taken advantage of and
- g.. %eTated ny artificial means.
q, orts Of alleged shortages were
;olr circulated for the purpose of jus
>-at"d. Keen competition among the
c"'nE aratively UnOrganized publishers,
who. in their anxiety to assure themselves
81 their necessary supplies of paper. bid
frverishlv in OT"n market. helped to
mai" the situation more acute.
The increase in pr,ces has been due in
"9rt 10 the fact that free competition
mas been seriously restricted in the news
iHlHt rapcr industry. Important manufac-
tuners of the United States and Canada
w"ra banded together to secure unreas-
0Uthle profits
NUCh evidence was uncovered by the
commission showing that manufacturers
ht*tCad of attempting to allay the feel
ii Of panic. played upon it deliberately
70 'oOst prices.
EcTuirements were made to appear
"'"ny tines greater than they actually
were, and fictitious demand was thus
ted. which produced panic with panic
'.".'S. There is some evidence that this
#'Ic Vas stimulated deliberately by the