Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-14
POOLING ARRANGEMENT
TO HANDLE PRINT PAPER
Federal Trade Commission Urges
Congress to Enact Appropri.
alto Legislation.
REGARDED AS WAR MEASURE
Plan Contemplates Operation OF
Mills and Distribution Agencies
Under Present Management, but
for Public Good.
IRY Associated Pross.l

TOT olstrlOution 10 pupllSneES AT Il
price providing n fair profit to manu-
faccurers was recommended to-day by
the Federal Trade Commission in a
report on its investigation of the paper
Industry conducted during the last year.
TIE. commission also suggested that
the government seek to induce Cana
dian authorities to establish a similar
sSchcy to cooperate with the Ameri-
can, pool
In letter transmitting the report
to Che Senate. which ordered the in
resGgation, the commission asked
emergency legislation to make the
recommendations effective. 1t declared
that IL the 1916 consumption of l,1T5.-
600 ions of print papers is eQualed this
year, the cost to consumers Will be
si06.oOo.0Oo. an increase of $4,000, 600
over 1915. and that one-half of this
increase represents additional profits
tc manufacturers.
The voluntary agreement arranged
with manufacturers several months
ago for distribution of paper to pub
lishSrs at moderate prices was aban-
doned. the commission reported. and
the plan failed because no government
authority for enforcement existed. The
situation is serious and likely to reach
a panic state ina few months because
OF lack of sufficient competition among
producers, said the commission.
PRELIMINARY REPORT
PRESENTED IN MARCH
A preliminary report was presented
on March 3. the letter accompanying
the final report to-day said
The efforts of the commission to
restore competitive conditions in tho
rewspriat industry expeditiously and
10 arbitrate and effectively project
fair price for newsprint paper have
failed
The plan failed for several reasons.
the principal reason being that the ar
arrangement was voluntary. and the COM
mission had no power or warrant un-
der the law to make it effective. The
manufacturers siEnatory to tho agree
ment notified the commission that they
would not proceed under such arbitra-
ton agreement. The result has been
that newsprint paper has been billed
and sold at the same eNorbitant prices
that obtained in many instances there
tofore.
The newsprint paper situation is
very serious not on.y t the consumers
of paper, but TO the public generally.
and to the government of the United
States. which is itself a large con-
sumner Of paper. The commission has
reason to believe that this situation
viii be still moro aggravated and Sc
rious in the ensuing months. The de-
mand for newsprint paper is constantly
increasing, and gives promise OF still
greater increase with the continuance
of the war. The supply of newsprint
PIPER available to meet this demand
is 'endent upon mills already in ex-
istence.
FEAR REPETITION
OF PANIC MARKET
1T seems probable, therefore, that
with the demand for ncwsprint paper
increasing and the supply remaining
constant or possibly diminishing. there
Will be Il repetition OF the panic mar
ket OF last year and the cxaction Of
prices that are entirel" out of meas
ure 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 4Isrious.
by reason 81 this condition and be-
cause OF the vital interest TO the public
OF an efficient dissemination OF news
in this crisis, the commission recon-
mends as war emergency measure
that Congress by appropriate legisla-
ton provide:
Cd That all mills producing and all
agencies distributing print paper and
mechanical and chemical pulp In the
United States he operated on govern
ment account: that these products be
pooled in the hands o: a government,
agency and equ!tably distributed at a
price based uron cost of production and
distribution, plus a fair profit per ton.
"t2) That pursuant thereto some
Federal agency be empowered and di.
reoted 10 assume the supervision and
control thereof during the tendency OF
the war
"C3) That by reason of the fac,
that approximately 75 per cent OF tn,
production OF newsprint paper in Can
ada comes 10 the United States, prope
action be taken to secure the co-opera
tion of the Canadian government IL
the creation OF similar governments
agency for the same function, which
shall be clothed with power and au
thority TO act jointly with the gov
ernmental agency OF the United State
for the protection Of the consumers ant
manufacturers Of print paper and tn
public Of the United States and Canada
20 That in case the Canadian gov
eminent shall not join III such a CO
operative enterprise, then importation
OF paper and mechanical and chcmica
pulp into the United States shall b
made only on government account to O
through the Federal agency charge
with such supervision and distribu
ton.
PLAN MUCH LIKE THAT
TRIED IN GREAT RRITAI
I'm this connection the commissto
desires TO point out that such pla
contemplates the operation OF mil
under their present management, an
the use Of the present distribute
agencies, hut that such use and opera
ton shall be for the public good, d
Montague Mfg. Co.