New-York tribune., 1920-04-29
Paper Makers
Get Big Profit,
Witnesses Sav
Senate Committee Is Told
of Absurdly High Prices
Paid on Spot Market,
Due to Present Shortage
Remedies Are Suggested
Stop Competitive Bidding
for Supplies as Means to
Lower Cost, Is Advised

WASHINGTON. April %. - CAB
surdly' high prices for newsprint
paper bought on the spot market are
due to corner resulting naturally
from the present shortage, George Nc
Aneny, executive manager of "The New
York Times,' declared to-day before
the Senate Committee investigating
the paper situation. The market price
is twice or three times as much as
that for paper bought under contracts,
he said.
Brokers and small manufacturers
were blamed by Mr.. McAneny for the
high prices. Answering a question by
Senator Reed, Democrat, of Missouri,
as to whether there was protiteering,
he said they are selling the paper"
Frank P. Glass, of Birmingham. Ala.
until recently president of the Amer
lean Publishers Association, describe d
spot market prices as Excessive" and
without distinguishing big and little
makers were making big profits
Publishers from Boston, Philadel-
phia, Providence, Pittsburgh and Balti-
more are scheduled to appear as wit
nesses, and committeeman indicated
le investigation would be directed at
profteering, manufacturing costs, sell
ing prices, paper consumption and ad-
vertising.
Would End Competitive Bidding
Among to-days witnesses, Charlie :
Lane, of "The New York Evening Post,
ard Mr.. McAneny suggested the best
remedy for the spot market condition
was for publishers to stop competitive
bidding.
Price fixing, government control of
distribution and limitation on the size
of publications by postal ban were
opposed by the metropolitan publish
ers. Arthur W. Dunn, representing
the American Press Association, which
serves a number of small dailies. how
ever. declared the smaller publishers
favored government control of dis
tribution, but did not know whether
legislation to that end would be consti-
tutional.
The complaint of the small publish
crs, voiced by Mr. Dunn, was that they
were compelled to pay the high prices,
while the big publishers, able to buy
in larger quantities, bought cheaper
under contracts.
"Is some one profiteering asked
Senator Reed.
"Yes, somebody is making good big
profit out Of it," answered Mr.. Dunn,
adding. however, he was unable to give
any evidence of combinations or price
fixing agreements.
Doubt that the government will be
able to accomplish a great deal in re-
llcving the print paper shortage was
express by Mr.. Glass.
Discuss Advertising
Questioned as to the advisability Of
Congress attempting to reduce con-
sumption by limiting the size of publ
cations admitted to the mails, Mr.. Glass
said he doubted the "justice and feast
biity" of such an undertaking.
Mr.. Glass said he did not believe the
excess profits tax was to blame for tie
increased volume of Advertising
MIR. McAneny agreed with Mr.. Glass
that the increased advertising "was q
coincidence" to the application of the
excess profits tax. He said the demand
for advertising was due to post war
desire to stimulate business.
"The shortage of paper, said Mr. Nc
Aneny. "is due to the abnoral demand
for advertising. There is actually more
newsprint this year than last. The
Federal Trade. Commission reports in
dicate an increased production Of 10
per cent, and the indicated consumption
of The Times for this year is about 7
per cent greater than that of last year"