The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-03-03
PILLAGING OF THE PRESS
In
- $50 - How They Were Brohght About.

necessity and as a temporary pinch.
Soon $50 per ton was the price and
then 500; in some instances Of
peculiar atrocity $3.50 and even $14O3
per ton was demanded and received.
The smaller and poorer the con-
sum er, as usual in this world the
higher the price and the more oppres-
sive the conditions, for on top or
these savage increases came the cur
tailment of credits and in many in
stances q policy OF payment on de-
I livery.
Ordinarily where in the past such
combinations were formed, when not
broken legally, they went to pieces
under the. competition of the mills
| making manila or other craft"
| papers, which would turn their ma
chinery to news making when prices
rose. But, for the first time In the
history of the trade, these grades
| joined the procession upward, going
| from 3m to 7 cents per pound, Win
the effect that a considerable ton
mage of news machinery went on the
| coarser product, thus curtailtng
supply soon to be sufficiently scant.
! if all the wheels were turning IN
its behalf. Writing paper followed
suit swiftly, doubling and sometimes
| trebling in cost to the consumer.
The basic excuse for the rise IN
prices of grades outside of news was
| the shortage of sulphite pulp caused
by the extinction of the German and
shortening of the Scandinavian sup.
ply, upon which many book. manila
and writing mills relied, either as
complete resource, or as Q check
upon the American producer. Sui
phite, which costs about $32 per ton
to make, rose abruptly to $500 per
ton-in some cases more. The ex-
pense of manufacturing the article
did not increase. The sulphr mon
opoly, controlled by Standard OH IN
terests, did not raise its price. Most
of the sulphite producers were cover
ed in their wood, lime and coal con-
tracts. There was, however, an IN
sane pressure to buy, and quick ad-
vantage was taken of this ana ~
per cent profits secured.
Nearly all of the news manufac-
turers, and all of the important ones,
make their own sulphite. They also
grind their own wood. The enhanced
cost of book caused a demand for
ground wood stock to take the place
of low priced grades, and thereupon
ground wood went soaring, reaching
in some cases S45 per ton, at which
price, of course. it's cost was less
than half that of sulphite. 1t also
established another basis for estl-
mating the value OF news print.
One reason why the combination
of news print mills delayed getting
into complete operation was because
os the time taken in organizing the
Canadian competition. This was done
by forming the Canadian Export as
sociation" to which customers from
America were referred by the mills.
In this way secret deals were pre-
vented and the situation controlled.
| One western publisher was notified
| in the morning that his mill could
no longer supply him. In the after
noon an agent of the association
called to take his order at a price
of about $25 per ton above the figure
he had been paying. In the state
The com bhation worked as neatly.
but with rougher methods. Each mill
was sold out" when asked to com
pete or to give price. rms iefp
| the publisher the choice oc accepting
the figure named by his existing
source of supply, or going INTO the
market where, despite the shortage"
and desperate conditions, supply
can always De nau ala 91Vo PEI .oi:
In mid-December the international
Paper company, legitimate corpora
tion. announced a uniform price in
the 15-cent freight zone OF $40 per
100 pounds, which with freight and
carriage meant s66 per ton delivered.
against the former average OF $2.15.
or SAB per ton. all charges being In
cluded. net gain of $23 per ton. 1t
should not cost the corporations.
properly managed. more than 1913 per
ton to manufacture paper. Allowing
81 for freight and carriage we have
profit of $29 per ton. A $29 mere
ment on s33 article may be modest
Nv described as handsome!