The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-06-13
Federal Trade Commission Re-
ports on Its Investigation.
Publishers Mulcted for $780,
900 Excess in a Year.
SEE new CRISIS COMING
Vital Interest of Public De-
mandS Drastic Action.
Urge Canada Be Asked To Take
Similar Action.

Washington, June 13.-Au paper
mills in the United States will be
placed under government control dur
ing the war, and a request made that
the Canadian government take the
same action, if a recommendation
made to the senate today by the fed
eral trade commission is carried out
The price of newsprint paper, al
ready high in 1916, has risen more
than so per cent since that date, &C
cording to the report, and all efforts
at arbitration 10 restore competitive
conditions have failed
1t is estimated by the commission
that paper manufacturers during 1916
received over $17,500,000 in excess
profits and that paper during 1917
will cost $35,000,000 more to the con-
sumner than last year.
The neWsprint paper situation is
very serious" says the report, mot
only to the consumers of paper, but to
the public generally, and to the gov
eminent 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 aggra
waited and serious in the ensuing
months.
See Repetition of Crisis.
TT seems probable that with de-
inand for newsprint paper increasing
and the supply remaining constant 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 the smaller newSpa-
pers and many of the larger ones and
thru them to the reading public Will
be most serious"
Rv 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 war emergency
measure that congress by appropriate
legislation provide:
Take Over All Paper Mills.
"D-That all mills producing
and all agencies distributing print
paper and mechanical and chemi-
cal pulp in the United States be
operated on government account;
that these products be pooled in the
hands OF a government agency and
euuitably distributed at price be- s.
ed upon cost of production and dis
tribution, plus a fair profit per ton.
"(2)-That pursuant thereto
some federal agency be empowered
and directed to assume the super
vision and control thereof during
the tendency OF the war.
"(3)-That ly reason of the fact
that approximately rs per cent of
the production of newsprint paper
in Canada comes into the United
States, proper action be taken to
secure the cooperation of the Can
adian government in the creation
of a similar government agency for
the same function, which shall be
clothed with rover and authority
to act jointly with the government
al agency of the United States for
the protection of the consumers
and manufacturers of print paper
and the public of the United States
and Canada.
Owners Operate Mills.
"(4)-That in case the Canadian
government shall not join in such
a cooperative enterprise then m
portation of paper and mechanical
and chemical pulp into the United
States shall be made only on gov
eminent account to or thru the fed
eral agency charged with such su-
pervision and distribution ~
This plan contemplates the opera
ton of mills under their present man.
agement and thus therefore prevent
distribution agency but directed by
federal agents. Such a plan has al
ready been successfully operated in
Great britain