New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-14
Federal Trade Commission
Asks Congress to Author
ize Pooling Scheme
Voluntary Plan Fails
Only Legislation Can Avert
Serious Situation Important
to Public, Says Report

Washington, June IS. - Announcing
failure Of its plan 10 relieve the news
print paper situation and predicting
manic prices unless the government
stems in. the Federal Trade Commis-
sion to-day asked Congress to au-
thorize a government pooling scheme
70 insure both an equitable distrlbu-
ton of the product to consumers anu
a fair profit 20 manufacturers.
Under the new plan all producing
pIants would be operated on govern
ment account and a Federal agency
would be created 10 set a fair price
end effect fair distribution. The
Canadian government would be asked
70 create a similar agency to act JOINT
" with officials in this country IN dis
tributing the big Canadian output II
such Canadian agency were not
created all importations into the
United States would be under govern
rient supervision.
The distribution plan TO restore com
petition and give relief from hlgh
rrices failed, the report says, because
there was no authority TO enforce It's
terms and the manufacturers did not
abide bv it. Only legislation alcng the
line recommended can avert now very
serious rise in prices, il is declared,
the prospect being that the 1917 output
will cost consumers S105,0OO,OOO in
stead of 100000 600 as last year, with
half the increase representing addi-
rional manufacturers profits.
Regarded as War Emergency
The commission hopes for action
on its recommendations a. this session
Of Congress, as it regards the situation
facing publishers as a war emergency
recurring speedy relief measures.
The letter accompanying the report
says:
1.-THE news print paper situation is
very serious, not only 10 the consum-
ers of paper but 10 the public gener-
ally and TO the government of the
United States, which is itself a large
consumer of paper. The commission
has reason 20 believe that this situa-
tion will be still more aggravated and
serious in the ensuing months. The
demand for news print paper is con-
stantly increasing and gives promise
Of still greater increase with the con-
tnuance of the war. The supply of
news print poper available to meet this
demand is dependent upon mills al
ready in existence.
at seems probable, therefore, that
with the demand for news print paper
Increasing and the supply remaining
constant or possibly diminishing, there
will be repetition OF the panic market
Of last year and the exaction OF prices
that are entirely out OF measure with
the cost of production. The conse-
quences TO thousands Of smaller news
papers and TO many of the larger ones,
and through them TO the reading pub
lie, will be most serious.
Recommendations TO Congress
"By reason of this condition and be.
cause of the vital interest TO the pub
lie of an efficient dissemination of
news in this crisis, the Commission
recommends as a war emergency meas
ure that Congress by appropriate legis-
lation provide:
"(l) That all mills producing and
all agencies distributing print paper
and mechanical and chemical pulp in
the United States be operated on gov
eminent account; that these products
be pooled in the hands of a govern
ment agency, and equitably distributed
at price based upon cost of produc-
tion and distribution, plus fair profit
per ton.
"(2) That pursuant thereto some
Federal agency be empowered and di-
rected to assume the supervision and
control thereof during the tendency of
the war.
"(3) That by reason Of the fact that
approximately rs per cent Of the pro-
duction Of newsprint paper in Canada
comes into the United States, proper
action be taken 10 secure the coopera-
ton of the Canadian government in the
creation OF similar governmental
agency for the same function, which
shall be clothed with power and au-
thority 70 act jointly with the govern
mental 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.
"(G That in case the Canadian gov
crnment shall not join in such a CO.
operative enterprise, then importation
OF paper and mechanical and chemical