Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-13
Voluntary Plan Failed.

The voluntary agreement arranged with
manufacturers several months ago for
distribution OF paper to publishers at
moderate prices was abandoned. the COM
mission reported. and the plan failed be-
cause no government authority for en-
forcement existed. The situation is seri-
Gus and likely TO reach a panic state in
few months because Of lack OF SUFFICIENT
competition among producers. said the
commission.
preliminary report was presented
March 8. The letter accompanying the
fnal report today said:
The efforts OF the commission to r.
store competitive conditions in the news
print industry expedit.ously and to ar
bitrate and effectively project q fair
prices for news print paper have failed.
The plan failed for several reasons,
the principal reason being that the ar.
rangement was voluntary and the COM
the law to make IL effective. The manu-
facturers sgnatory TO the agreement
notified the commission that they would
not proceed under such arbitration
agreement. The result has been that
news print paper has been billed and sold
at the same exorbtant prices that OBJ
tanned in many instances heretofore
The news print paper situation 10
very serious, not only TO the consumers
of paper. but to the public generally
and to the government of the United
States, which Is itself a large consumer
of paper. The commission has reason
to believe that this situation will be still
more aggravated and serious in the en-
suing months. The demand for news
print paper is constantly increasing and
gives promise of still greater increase
with the continuance Of the war. The
supply Of news print paper available to
meet this demand is dependent upon
mills already in existence. ~
Another Panic Forecast.
TT seems probable, therefore. that
with the demand for news print paper
increasing and the supply remaining con-
slant or possibly diminishing there Will
be a 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 consequences to
thousands of smaller newspapers and to
many of the larger ones, and through
them to the reading public. will DO
serious.
by reason Of this condition and be-
cause of the vital interest to the public
of. an efficient dissemination or news IN
this crisis. the commission recommends as
war emergency measure that Congress
by appropriate legislation provide:
"11 That all mills producing and all
agencies distributing print paper and me-
chanical and chemical pulp in the United
States ne operated On SoNci a.
count; that these products be pooled In
the hands of a government agency and
eouitably distributed at price based
upon cost of production and distribution.
plus fair profit per ton.
"(2) That pursuant thereto soma REQ.
eral agency be empowered and directed
TO assume the supervision and control
thereof during the tendency of the war.
"(3) That, by reason of the fact that
approximately IS per cent OF the pro-
duction of news print paper in Canada
comes to the United States, proper action
he taken to secure the cooperation OF
the Canadian government in the creation
Of a similar governmental agency Tor
the same function, which shall be clothed
with mower and authority TO act Jointly
with the government agency OF the United
states for the protection OF the con-
sumers and manufacturers of print paper
and the pubic OF the United States ana
Canada.
10Y Thar in case the Canadian gov.
ernment shall not join In such CO.
operative enterprise. then Importation
Of paper and mechanical and chemical
NUN into the United States shall be
made only on government account TO
or through the federal agency charged
with such supervision and Distribution