The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-03-03

Don C. Seitz, business manager OF
the New York World, in the North
American Review: The $4,000 news
papers and periodicals published in
the United States are facing not only
complete extinction of profits, but IN
many cases confiscatory losses
through 20 concentrated action or
news print manufacturers imposing
upon them a tax of approximately
81, 100000 a year. The war harvests
|reaped by the makers of seml-manu-
featured material find nowhere a
richer or more undeserved rakeon
than in this raid on the printing
trade. After two languid years OF
moderate demand and reasonable
prices, the print manufacturers, tax
ing leaf from the iron, steel, cop
per and chemical Industries, decided
to suffer no amaZement at their own
moderation, and following the annual
convention of the American Paper
and Pulp association held In New
York, Feb. "a, 1916, began one OF
the most effective pricelifting move
ments in our history. The huge cata-
log contract of the Chicago mail
order houses. amounting to some
SO, $780, 900, having been, safely adj
justed, competition in the print manu-
featuring trade came TO stop.
The first line to test the printers
pocket was that Of the plotting paper
producers. Stock sold ordinarily at
5 and 6 cents a pound was incontl-
nently marked up to 10 and IL cents,
in some instances reaching 13 cents.
Fast on the heels Of this elevation
the book gentlemen discovered that
l. lnI NvnlN W
raw materials were scarce. Book
stock selling at 3A cents or less
moved up to and 7 cents pound!
Special grades selling at ana Q
cents were abruptly lifted from to
I cents additional Jobbers were
given little consideration and custom,
ers none at all.
The improvidence of printers, and
the quick deterioration of supplies.
caused little stock to be kept on
hand by customers, SO the exploit
of elevating was easy. 1t only re-
auired that no dealer should supply
customers other than those on his
books. The few that failed to meet
this condition were speedily without
stock to draw upon.
The book and jobbing houses being
safely cornered it remained to
..handle" the newspapers. This was
hardly so difficult a task as the
earlier performance, though the load
was heavier and handicapped by the
fact that practically all roll paper,
such as dailies use, is provided under
contract. The first warning came
when excess demand for paper above
contracted quantities was called for
because of the expansion of business
in the spring of 1916. For a brief
period the rise was moderate. Al
fecting to be surprised at the de
mand" the manufacturers first check
ed it by a moderate increase OF "
and SO a ton on the open sales. Thls
about represented the early increase
in cost as threatened by the price OF
wires, felts, colors and clay. Colors
and clay soon became prohibitive and
were eliminated from the news max
ing formulas Fourdrinier wires ad-
vanced heavily in price, from ~ to
68 cents per pound and were OF
much poorer quality than before, re-
curing frequent replacement and SO
reducing production.
But all these increases in the ag-
gregate cannot and do not exceed "a
per ton. The federal trade commits
sion has shown that for the first half
OF 1916 the general cost of manufac-
turing news print was slightly less
than during the same period of 1915.
when war conditions also prevailed,
but when publishers were fairly
treated.
The news manufacturers were a
little slower than their brethren in
the book and magazine branch in per-
fecting their organization. but when
completed it operated with a perfec-
ton that now promises to impoverish
the great industry dependent upon
IT. Suddenly publishers who were
short found that paper could be had
only Of jobbers and that there re-
ouired SIS per ton for paper usually
sold at s45. This was accepted as a