Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1920-06-10
SENATE COMMITTEE
SAYS PAPER MAKERS
ARE LAW VIOLATORS
Report Charges Them With I'm
just, Illegal and Discrim-
ira Practices.
SHOULD C. ;isDICTED
UNDER SHERMAN LAW
NEWSP APE.,.s 4A..E AT MERCY OF
UNSCRUPULOUS PROBITEERS
AND EXPLOITERS.

Washington, June 5.-Holding that
scarcity of news print paper which
Z has handicapped American newspapers
to be "more the result of artificial
obstruction than of natural laws" the
Senate committee which investigated
the paper situation today recommend
ed that the Department of Justice in
stitute proceedings under the Sher-
man and Flag acts against paper
manufacturers.
/ Paper manufacturers We're charged
with unjust, Illegal and discriminatory
practices. Present prices for news
print paper were held to be unwar-
|ranted.
| Other recommendations made by the
Iconmittee include:
Establishment of a Federal news
print board "to supervise the ma lu-
fracture and distribution of print pa
lper," should government efforts to
maintain a reasonable price fail
Amendment of the Lever food con-
troll act to penalize profteering in
news print paper.
/ imposition of a tax of ten cents on
Sunday newspapers weighing more
than 1.28 pounds copy so as to lint
such editions to 80 pages until an
adequate paper supply can be secur-
ed.
| Appropriation of 100000 for the
purpose of experimenting with SUBJ
lstitutes. for wood pulp.
Establishment of rate of one ce-t
a pound on sheet print paper to any
part of the country when sent by par
lcel post without increasing the pres
ent limit of 20 pounds provided under
the postal regulations.
The committee also recommended
that consideration be given by the
government to establishment of
news print paper mill to supply the
governments needs with any surplus
paper to be sold to small consumers.
The report which was submitted to
the Senate just before adjournment.
was drafted by Senator Walsh, Demo-
lcrat. Massachusetts, and was signed
by Senators McNary and Gronna,
lkepublicans.
i Senator Iced, Democrat, missouri,
|who was chairman of the investigat-
ing committee. was unable to 20 over
the report because of his duties on
| the campaign expenditures investigat-
ing committee and did not sign it.
/ The report is based on extensive
hearing held by the committee at
which testimony was received from
newspaper and periodical publishers
and paper manufacturers. dealers and
jobbers. >'''~'
Publishers of small newspapers
were declared by the report to be in
the hands of "unsc1upulous profteers
ana eXploiters," while even the large
newspaper publishers are at thesmercv
Oh the manufacturers. The report
added that it was mot and still is
not policy for publisher in any way
70 cfitlclze OF protest to manufac-
tufer' while the big publishers not
naving mills of their own are in
mold up" market while the small
publishers are being driven from the
business by threatened bankruptcy"
i "All the evidence of the yarious
witnesses and the substantial and
absolutely authentic information we
nave obtained from official reports"
the report said, "seem to indicate that
many OF the newspaper print makers
mere and in Canada, were acting in
coiiuslon with the apparent intent to
bring about restraint of the normal
flow OF trade and engage in unfair
competition bv methods in some cases
OF creating an artificial supply and in
others of resorting indirectly through
Iheir bureaus of statistics to an actual
iXlng OF prices. Indeed there is a
sufficient evidence to warrant the
hndlng that there has been de-
iIberate curtailment of newsprint pa-
per upon the part of some newsprint
paper manufacturers to "get even's
with the government for its prosecu-
ton and also to hold up prices"
The report charged jobbers and
brokers with profteerirZ which it was
lsaid, in view of the evidence present.
ed should more appropriately be re-
ferred to as usury."
This committee" said the report,
is convinced that not over ne-third
of the price now charged in the mar
ket is warranted and in factsthare are
| some well regulated firms who, as
the evidence has shown consider four
Tor five cents a pound a thoroughly
i fair and equitable profit on their pro-
tduct."