Evening journal., 1917-06-13
GOVERNNEATCONTROL
OF paper PROPOSED
Federal Trade Commission
Makes Recommendation
10 Protect Supply
WANT CANADA
TO COOPERATE

by The Jnitcu Iltao.
WASHINGTON. June 1S.-All pa
per mills in the United States will be
placed under government control
during the war and request mado
that the Canadian government take
the same action. II a Recommendation
made TO tho Senate today by the Fed
eral Trade Commission is carried out,
The price OF news print paper, al
ready high In 1916 has risen more
than 90 per cent. since that date, acc
cording 10 the report. and all efforts
Ct arbitration 20 restore competitive
conditions have failed. 10 - osti-
mated BY the commission that paper
manufacturers during 1916, received
over SIT 500. 900 In excess profits and
that paper during 1917 will cost S35.-
100000 moro 70 the consumer than
last year.
The news print paper situation Is
very serious says the report. mot
only TO the consumers OF paper. but
TO the public generally and 20 the
government OF tho United States,
which is itself q large consumer OF
paper. The commission has reason
20 believe that this situation viii be
still more aggravated and serious IN
the ensuing months.
1T seems probable that with the
demand for news print paper in
creasing and the supply remaining
constant or possibly diminishing,
there will be a repetition Of tho panic
market OF last year and the exaction
of prices that are entirely out or
measure with the cost OF production.
The consequences TO thousands OF
smaller newspapers and 10 many OF
the larger ones and through them to
the reading public will be most seri-
Gus.
~iiy 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
measure that Congress by appropri-
ate legislation provide;
Il. 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 pro-
ducts be pooled IN the hands Of a gov
eminent agency and equitably dis
tributed at a price based upon cost OF
producton aud distribution, plus a
fair profit per ton.
90 That pursuant thereto, some
Federal agency be empowered and
directed 20 assume the supervision and
control thereof during the tendency
OF the war.
g. That. by reason OF the fact that
approximately 10 per cent Of the
production Of news print paper In
Canada comes into the United States,
proper action be taken TO secure the
cooperation Of the Canadian govern
ment IN the creation of a similar
agency for the same function, which
shall be clothed with power and au-
thority 10 act Jointly with the gov
ernmental agency OF the United States
for the protection Of consumers and
manufacturers Of print paper and the
public Of the United States and
Canada.
a. That IN the case the Canadian
government shall not join in such a
cooperative enterprise then importa.
ton OF paper and mechanical and
chemical pulp into the United States
shall be made only on government &C.
count 10 OF through the federal agency
charged with such supervision and
distribution
Such a plan contemplates the opera
ton OF mills under their present
management and the use OF the pres
ent distributing agencies but directed
by federal agents. Such q plan has
already been successfully operated in
Great Britain.