Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-13
us. CONTROL OF
PRHVTPAPER URGED
Federal Trade Commission
Asks Senate to Take
Drastic Action
ARBITRATION A FAILURE
WASHINGTON. June "a.

WASHINGTON, June lS.
The first step toward the practical seizure
by the Federal Government OF all news
print paper mills in the United states ano
the appointment OF a paper dictator to con
troll supplies was taken today when the
Federal Trade Commission recommended e
the Senate;
That all mills producing and all agen-
cies distributing print paper and mechan-
ical and chemical pulp In the United
States be operated On Government ac-
count; that these products be pooled in
the hands Of a Government agency and
equitably distributed at a price based
upon cost Of production and distribution,
plus fair profit per ton.
That pursuant thereto some Federal
agency be empowered and directed to
assume the supervision and control there
Of during the pendency Of the war
That, by reason Of the fact that APP
proximatey 75 per cent Of the production
Of news print paper In Canada comes into
the United States, proper action be taken
to secure the cooperation Of the Cana
dian Government In the creation Of a
similar governmental agency for the same
function, which shall be clothed with
power and authority to act Jointly with
the governmental agency Of the United
States for the protection Of the consumers
and manufacturers Of print paper and
the public Of the United states and Can
ada
That in case the Canadian Government
shall not Join in such a cooperative en-
terprise. then importation Of paper and
mechanical and chemical pulp into the
United States shall be made only on
Government account 10 or through the
Federal agency charged with such super
vision and distribution.
PRICE-FIxING SCHEME FAILS
In letter to the President Of the Senate
today the commission, which has been in
vestigating the news-print paper situation
for more than a year, states that these ex-
harsh measures must be adopted
as war expedents because Of the failure Of
the commission by arbitration TO settle the
long standing controversy between news
paper publishers and manufacturers of
print paper
The commission frankly announces COM
plete failure of the scheme under which
Il sought to fix prices It states that four
of the manufacturers signatory to the
price-hxing agreement have been indicted
by Federal Grand Jury for the Southern
District Of New York in antitrust proceed
ngs brought by the Department of Justice.
Upon indictment these manufacturers re-
scinded their participation in the arbitra-
lion agreement. 1t has generally been un.
1erstood in washington that the manu-
tacturers considered the Government had
broken faith in seeking the indictments
when the arbitration agreement had been
reached
In its letter the commission states that
In 1915 news-print paper consumption
amounted to 1,775000 net tons, valued at
more than S7O,O00,0OO. At prevailing
prices, the commission says, this paper
would cost consumers $105, 900, 900, an in
crease of S35,OOO,OOO, or SO percent. The
commission reports that the increase in the
cost of manufacture amounts to only $40
per ton, giving half of the s35, 900 900 price
Increase to the manufacturers as additional
profits
Under the plan for Government opera
tion, the commission says prices to pub
fishers would be based on fair costs Of
production and distribution and a reason
able profit. The commission says similar
plan has worked successfully in England
and If put into operation here will increase
production and diminish cost to consumers.