Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-02-17
Remarkable Offer to Federal
Body Promises Lower Rates
and Just Distribution; Ruin
to Many Ayerted,
PRICES DECLARED TO
BE EXT0RTI0NATE
Probe Lasting Eight Months
Brings Out That Shortage
Has Been Largely Artifi-
CiaL"
rsr MORNING JOURNAL SPECIAL L.Assp wrs.,

tsy MORNING JOURNAL SPECIAL Lskssn wIRsi
Washington, FebA 16.-The federal
trade commission today announced
that the principal news print paper
manufacturers of the United States
and Canada had proposed that tho
commission determine fair and
reasonable maximum price for paper
from March /, 1917, to septem-
her l. 1911, The proposal, 1t
was said would be taken under ad-
vtsement and an announcement made
within few days. The statement is
sued by the commission says:
The offer with its promise of lower
prices and more equitable distribution
not only means the saving of millions
to the great publishers of the Coun-
! try, but averts the absolute ruin that
now threatens hundreds of the smaller
publishers"
Prices Are "Extortionate."
The statement continues:
| The proposition is the outcome OF
the news print paper investigation
| that the federal trade commission has
| been conducting for the past eight
months. AS a result of public hear
ings and the work of economists ac-
countants and financial experts, the
commission arrived at the conclusion
that the paper shortage was largely
artificial that prices were extortion-
ate and that free competition had
ceased to exist"
1t was not stated whether the prop
osition, If accepted, would affect the
| department of Justices federal grand
jury investigation In New York, but
the lntimation was that there was a
close relation between the two.
t-. leads 10 Prosecution
The statement continued:
ut was the evidence procured by
the commission and turned over to the,
attorney general that led to the recent
! preparations for criminal prosecution
| by the department of justice.
| For the last two months tho COM
| mission has been seeking speedy re-
| lief from an intolerable situation by
means of conferences between pub
| fishers and manufacturers, but dead
| lock was the only result. Determin-
| ing upon decisive measures. the fed
eral trade commission employed Fran
els j. Heney of California, to assist the
commission in securing instant action
and relief 1t is through conferences
between Mr.. Heney on the one hand
torneys on the other, that the proposi-
tion has been made to put the whole
matter up TO the federal trade COM
mission.
Proposition First Refused.
This was the proposition suggested
by the publishers January 81, at q
| Chicago conference. and refused at
that time by the manufacturers Once
convinced of the commissions deter
mination. as well as impressed by It's
presentation of the evils and perils of
the situation, the manufacturers made
the submission In q spirit of fairness
and cooperation.
THE principal features of the offer
are:
Whereas. among manufacturers
and publishers there are differences
of opinion regarding the increase since
January. 1916, in the cost of produc-
tiOn of news print paper in the Unit
cd States and regarding the increased
prices to which manufa cturers are en-
titled for news print paper sold for
use in the United states for the six
months period beginning March /,
1917, taking into consideration the
increase in their cost of production
and other conditions affecting such
manufacturers.
Makers Want to Cooperate.
And whereas, the undersigned
manufacturers are desirous of Coop
Grating in any plan that may be ap-
proved by the federal trade commits
sion. providing for q more effective
distribution of news print paper
among the smaller publishers;
And whereas, the undersigned
manufacturers are desirous of submit
tor 10. fIn nh tfwa
of the federal trade commission:
Now, therefore, each of the under
signed does hereby request the federal
trade commission to find. fix and de-
termine forthwith:
To Fix Probable Cost.
"(A-The probs BILE or estimated
increased cost of production of stand
ard news print paper in the United
States during the period of time be-
ginning March I, 1917, and ending
September /, 1917, over the cost of
production of news print paper in the
United States during the year 1915
"tBD-What price per hundred
pounds at tho mill would be the fair
and reasonable price for the sale Of
such paper for use in the United
States during the aforesaid period of
time, from March |, 1917, to Septem-
Der |, 1917: taking into consideration
such increased cost of production
and other conditions affecting re-
spective manufacturers which the
commission may deem pertinent at
this time.
An important Concession.
1t is agreed by the manufa cturers
that they will carry out all existing
contracts, even if at prices lower than
those fixed by the commission. and
that with respect to contracts which
are for higher prices, reductions will
be made. Further important clauses
in the proposition are these;
'And each of the undersigned does
hereby agree that 1t will. so far as
lies in its power, limit each contract