The Bridgeport evening farmer., 1917-06-13
GOVERNMENT TO POOL ALL PRINT PAPER IS PLAN Exorbitant Prices Charged Now Must Be Reduced
 At Once. REPORT BY FEDERAL
 TRADE COMMITTEE Seek Cooperative Agree ment With Canadian
 Producers.

III news print paper production and im- portation under government agency for distribution to publishers at a price providing a fair profit to nla,nu- factutrers was recommended today by the federal trade commission in. a re- port on its investigation of the paper industry, conducted during the last year. The commission also suggested that the government seek to induce Canadian authorities to establish a similar agency to cooperate with the American pool.
 In a letter transmitting the report to the senate, which ordered the 1nvesti- gation, the commission asked emer- gency legislation to make the recom- mendations effective. It declared that if the 1916 consumption of 1,775.oO0 tons of print paper is eqt1alled this year the cost to consumers will be $105.- O00, 900, an increase of $35, ,o01Oo0 or 90 per cent. over 1916, and that one-half of this increase represents additional profit to manufacturers.
 The voluntary agreement arranged with makers several months ago for distribution of paper to publishers at moderate prices was abandoned, the commission reported, and the plan failed because no government author ity for enforcing it existed, The sit- uatfon is serious and likely to reach a panic state in a few months because of lack of sufficient competition among producers. said the commission.
 A preliminary report was presented on fMarch 3.
 The letter accompanying the final report today said:
 The efforts of the commission to restore competitive conditions in the news print industry expeditiously and to albitrate and effectively project a fair price for news print paper have afIled- The plan failed for several reasons. the principal reason being that the arrangement was voluntary and the commission had no power or warrant under the law to make it ef- fectfve. The manufacturers sigma tony to the agreement notifie,d the commission they would not proceed under such arbitration agreement. The result has been that news print paper has been billed and sold at the same exoraoitant prices that obtained in many instances heretofore.
 The news print paper situation is very serious, not only to the con- sumers of paper but to the public gen. orally and to the government of the United States, which is in itself @ large consumer of paper. The com mission has reason to believe that this situation will be still more az, gravated and serious in the ensuine months. The demands 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 on mills already in existence.
 Tt seems probable, therefore, that with the demand for news print paper increasing and the supply remain ing 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 com parison with the cost of production The conseqtiences to thousands o5 smaller newspapers and many of the the reading public, will be most seri. ous.
 By reason of this condition and because of the vital interest to the public of an efficient dissemination of news in this crisis, the commission recommends as a war emergency measure that congress by appropriate Legislation provids:
 T. That all mills producing an6 ali agencies distributing print paper and mechanical and chemical pulp 1T the United States be operated on gov. ernment account; that these product
 be pooled in the hands of g. govern. ment agency and eduitably distributed at price based on cost of production and distribution. plus a fair profit pel ton,
 "2. That pursuant thereto some fed. eral agency be empowered and direct. ed to assume the supervision and con. trol thereof during the pendeney es the war.
 "3. That, by reason of the fact tha, approximately 75 per cent. of the pro. duction of news print paper in Canada comes into the United States, proper action be taken to secure the cooper atien of the Canadian government iT the creation of similar governments agency for the same function, which shall be clothed with power and au- theFity to act jointly with the govern
 mental agency of the United States fo1 the protection of the consumers and manufacturers of print paper and the public of the United States and Can ada.
 A. That in case the Canadian gov ernment shall not join in such 8 ce- operative enterprise, then importation of paper and mechanical and cflemical