Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-06
SENATE PROBERS .
ASK PROSECUTION
OF PAPER MAKERS
CONTINUED from First Page. }

NOOhliIl0G0 AAOu 1AHe.J
normal flow OF trade and engage In
unfair competition by methods in
some cases of creating an artificial
supply and in others Of resorting in
directly through their bureaus of sta
tistics to an actual fixing Of prices.
Indeed. there Is sufficient evidence
to warrant the finding that there has
been deliberate curtailment Of news
print paper upon the part Of some
news print paper manufacturers to
get even with the government for its
prosecution and also to hold up the
prices.
Although the committee had con-
sidered the various disturbing ele-
ments that tho news print industry
has been subjected to during war
time. and the subsequent period of
quickly rising material and labor
costs. and has also taken into ac-
count increased consumption OF print
paper. the apparent scarcity Of wood
pulp and numerous other unstabiliz-
ing forces common to all business Of
to-day. we feel that the scarcity of the
product was more the result Of arti-
fetal distractions than Of the natural
laws. and that the market prices and
the uniform contract stipulations
were arrived at through the shortage
Of production. the efficient work Of
the Manufacturers' Bureau Of Statis-
tics and the use Of virtual gentle
mems agreement
Profits Declared Unjust.
I'VE believe that the profits taken
by several Of these concerns were
totally out of keeping with the best
business practices; that some manu-
facturers were and are guilty of
breaking the spirit, II not the letter,
of their own previous agreement with
the government, and that they took
advantage Of a condition, attributable
for the most part to their own manip-
ulation. in order to make gains far
out of proportion to those of fair, le-
practices were unjust. illegal and dis
criminatory is established beyond
any doubt. and also that the prices
| charged for news print paper are both
excessive and unwarranted."
The report charged jobbers and
was said. In view of the evidence pre-
scented should more appropriately be
| referred to as "usury."
Price Two-Thirds Too High.
This comittee." said the report, "is
not convinced that over third the
price now asked in the spot market
is warranted. and, in fact, there are
some well regulated firms who, as the
| evidence has shown, consider or
| cents per pound thoroughly fair and
reasonable price for their products"
There is no doubt that 1t is the
manufacturers who have spot paper
to sell that have and are reapinr the
large profits and placed such severe
penalties upon the country press,
There has been evidence presented
which would show that jobbers and
| brokers and commission men are r..
ceiving very large financial returns m
result Of existing high prices, THOUGH
many of them frankly admit THAR
| disgust with the existing Unhealthy
| and immoral conditions Of trade ana
candidly admit that they are ashamed
to sell new print paper for the prices
current today"
Criticises Justice Department.
The committee criticised the agree
ment made by the Department of
Justice with certain print paper man
ufacturers early in tho war. by which
print paper prices would be re9u-
lated, but publishers and manufac-
contracts. IL desired. Such an 'Inef-
fective Decree" according to admis-
sions by the department and the Fed
Ieral Trade Commission, the report
said, not only cannot be enforced. but
is "hilnderance. II not bar, to
| prosecution"
! The report further said that testi-