New Britain herald., 1918-01-10
ALLEGE A COMBINE
 TO BOOST PRICES
Resolution to Have NeWs-print Paper in Hands of Government

Washington, Jan. 1o.-Attacks on the News Print Manufacturers asso- citation for the alleged combination to keep up the price of paper for which several of the associations have been indicated, were made in the senate yesterday in debate over the resolu- ton offered by Senator Smith of Arl- zona, authorizing the president to put control over the entire news-print out put in the hands of the federal trade commission. The resolution would give the trade commission authority to distribute the paper output, at price based on the cost of production plus a fair profit.
 Senator Smith alleged that the News-Print Manufacturers associa- tion-or members of it-had con- spired to foist extortionate prices upon the market. As a result, he said, many smaller publications throughout the country, including newspapers and magazines, would be unable to con- tinue in business. The International Paper company and others that, with it, control nearly the entire news print market, Senator Smith asserted, made more than $105, 00O,0 ,0OO profit in 1917, an increase of 50 per cent over the preceding year. Of that amount he said, s17,500,00 represented profit gained through the increase in price forced upon the market.
 The Arizona senator referred to President Wilson's recent order, through the federal trade commis- sion, by which the government was to be charged 2 F cents a pound for paper. That price, he. said, allowed the manufacturers ample profit
 If that is enough for the govern ment to pay, it is enough for the pub Iishers,'' said Senator Smith. These newsprint profiteers have shamefully raised prices in the market. They have resisted every effort of the federal trade commission to control them, and now it becomes necessary for congress to intervene. If the federal trade commission is given au- thority to take over the entire news print output and to distribute it, at 8. price to be fixed by the commission, the country may be assured that no injustice will be done the manufac- turers.''
 One feature of the resolution pro- vides for payment to the manufactur- CTS of 75 per cent of the aggregate of a contract in the event that they de- cline to accept terms fixed by the federal trade commission and seek re- dress in court. Whatever balance is due the manufacturers would be paid after the courts had passed on the matter. Senator Fletcher, who had caused the 75 per cent. clause to be inserted in the resolution, accepted a suggestion today that the payment be raised to 90 per cent. of the total of a contested contract.
 Senator Shoot of Utah opposed the resolution as "almost vicious measure" contemplating special legislation for one industry He argued that the antitrust laws reached any price fixing combination of newsprint or any other manufacturers.
 If our judges don't give sufficient ly severe sentences, let them be urged to apply the limit of the law sug gested the senator. That would stop any more violation in future.
 The resolution means that the president could withhold print paper from any newspaper or magazine. We are told we are fighting for democ- racy; it's just this kind of legislation that cOmpels reasonable men to be- lieve we're fighting for socialism in it's most rampant form. Why stop at government control of print paper? Why not give the president control of every business in the United States ?"
 Senator Smoot also asserted the res- o1ution was introduced at the request of publishers in an effort to reduce the price of paper to rates below those agreed upon by the manufac turers and the government.
 Senator Hardwick of Georgia as- sailed the resolution with an attack on newspapers and q, declaration that regulation of the newsprint paper sit uation was no more necessary tn win ming the war than control of the cot ton or potato fields.
 Surely we are not going to send overzealous newspaper men to fight the Germans" he said, "although [ would like to take a few and stick 1 'em in the front firing ranks of the men they've drafted. If we could win the war with newspapers we'd have had it won long ago. The trouble is that some of our most valiant newspaper fighters and some