Omaha daily bee., 1917-02-17
MAKERS OF news
PRINT PAPER ASK
US. TO FIX PRICE
Facing Criminal Prosecution,
Manufacturers Propose to
Trade Commission to Say
What Shall Charge.
VICTORY FOR PUBLISHERS
Boards Statement Says it
Means Millions to Large Con-
Germs, Life to Little Ones.
CHARGES LIKELY DROPPED

Washington, Feb. l6.-News print
paper manufactures, facing criminal
prosecution in United States courts
for alleged participation in restraint
OF trade, proposed to the Federal
Trade commission today that it fix a
reasonable price for the output of the
principal plants of the United States
and Canada. The commission an
nounced it had the proposal under
consideration and would reply imme-
diately 1t is generally believed the
answer will be an acceptance.
The action of the manufacturers
gives signal victory to American
newspaper publishers, who in the face
of advancing paper prices have seen
nothing ahead but ruin for many OF
their number. If the proposal is ac-
cepted, officials say it will mark an
expansion of the functions of the
government, which in arbitrating the
differences between two industries,
opens up wide field of possibilities
for the future.
Move Made to Escape Prosecution
Although nothing has been said
concerning the continuance of grand
jury proceedings in New York, it is
well understood the manufacturers
move was predicated on the assump-
ton that there would be no criminal
prosecutions. The manufacturers in
their proposal while denying there
have been any violations of the law.
agree that the trade commission, if
it finds it necessary may make recon-
mendations for such/changes in the
business of print paper manufacture
that the industry may maintain its
organization, management and con-
duct OF business in accordance with
the law"
The announcement came after sew
eral days conferences between repre-
sentatives OF manufacturers who
make enough of the continents print
paper to control the market, and at
torneys for the commission, headed
by Francis ]. Heney of San Francisco.
who was retained especially for the
commissions investigation of the in
dustry. The administration has shown
the keenest interest in the proceed
ings and it was said today Secretary
McAdoo's aid had made possible the
result. President Wilson has watched,
the situation since the trade commits
sion began its inquiry eight months
ago. s.
Grand Jury Proceedings Effective.
The investigation was put under
way last summer under a resolution
adopted by the senate. Information
gathered tending to show antitrust
law violations was turned over to the
Department of Justice, while all in
formation bearing on economic phases
of the situation was collected by the
commission. AT the hearings, held
last fall and as late as January, the
manufacturers, it is said, discouraged
the commissions efforts to find So
luton for prohibitive prices, After
the grand jury proceedings were
started they came voluntarily to
Washington with their proposition.
1t is estimated if the proposal is
accepted and reasonable prices are
fixed, at least $30,000,000 will be saved
to American publishers this year.
Nothing is said of increased produc-
ton, but it is understood the manu-
facturers are willing to keep enough
machines on news print TO insure a
paper supply for the entire country.
What Canada Will Do.
1t was learned today that the
Canadian government will, under
orders in council, fix a maximum
price Of 21a cents pound on news
print sold to Canadian publishers,
leaving the price to be charged
Continued on Page Two, Column Two.}