Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-29
SHORTAGE IN PAPER
BLAMED ON LACK
Of UNDERSTANDING
Producers Didn't Explain Sit
uation. Baltimore Publisher
Tells Senators.


between the publishers aud print paper
manufacturers was held to be respon-
sible in part for the present paper
shortage by Paul Patterson, one of
the publishers of the Baltimore Sun.
in testimony today before the senate
manufactures subcommittee invests
eating the paper situation. lie said
| that while there would be no increased
production this year. production IN 1921
would be 100000 tons over that OF 1920
The present shortage. the witness
| told the committee, resulted from IN
crea sed consumption beyond the ca
pacity of the paper mills saying
| that Increased prices for paper We're
necessary about three years ago, he
asserted that the producers 1alied to
| take the publishers into their conf
dence at that time. with the result
| that an agitation was started against
! increased prices and for PUBIC con-
| troll of the paper industry. Also the
! manufacturers. he said. failed TO eX-
ipand their plants, due TO the ZACH of
! Understanding between them and the
! publishers.
Lack of Understanding and Publicity
Then you think the position taken
| by the newspaper publishers was a
! mistake?" Chairman Reed of the sub
committee asked.
Yes" was the reply. 1t was a
lack of understanding between them,
and also a lack of proper publicity.
AS a result of this situation, Mr..
Patterson said, when the publishers
came to renew their paper contracts
this year insufficient paper to meet
demands was discovered 50 that they
entered 1920 with a shortage OF paper
on every hand.
Regular manufacturers of print pa
per, he said, showed moderation in the
prices they fixed in the contracts, allow
ing for reasonable increase due to
changed conditions Mr.. Patterson told
the committee that universal prac-
tice of curtailment in the use of pa
per" is being observed by the newSpa-
| pers. and predicted because of this
practice. there would be a marked
effect on the market by fall"
Consider Scent Papers.
publishers are now seriously con-
sidering a 3 cent price for papers in
the cities and this move already has
been taken by certain papers, notably
the New York Journal" Mr.. Patterson
said.
But some newspapers are very re-
luctant to do this and this is the view
Of the Baltimore Sun, for it feels that
the reader is not responsible for the
situation. We do not feel it is a prop
er policy to curtail the distribution
of newspapers"
Other Economy Methods.
The witness said the newspapers are
practicing various methods of economy
to meet the paper situation. One is to
hold down the size of the newspapers,
while some are limiting the amount of
reading matter
But nothing effective can be accom-
plished unless there is a definite cur
tailment in the amount of advertise
ments.' he said, land the only way that
can be done is to increase advertising
rates-not for the purpose of increasing
revenues, but to hold down the amount
of advertising"
Sees "COrner" in Paper.
"Absurdly' high prices for news print
paper bought on the spot market are
due to corner" resulting naturally
from the present shortage. George
McAneny, executive manager of the
New YORK Times, declared before the
committee yesterday. 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
; nigh prices. Answering a question
by Senator Reed, democrat, Missouri
as to whether there was profiteering,
he said: They are selling the paper"
Would Stop Bidding.
Charles Lane of the New York Even
ing Post and Mr.. McAneny suggested
the best remedy for the spot market
condition was for publishers to stop
competitive bidding
Price-fxing, government control of
distribution and Limitation on the size
or publications by a postal ban were
opposed by the metropolitan publish
ers. Arthur w. Dunn, representing
the American Press Association, which
serves number of small dailies, how
ever, declared the smaller publishers
favored government control and dis
tribution, but did not know whether
legislation to that end would be con-
stitutional.
The complaint Of the snail pub
fishers. voiced by Mr. Du 4, was that
they were compelled to the high
prices, while the big publishers, able
to buy in larger Quantities, bought
cheaper under contracts
rs some one profiteering" asked
Senator Reed.
Yes. somebody is making a good
big profit out of it," answered Mr..
Dunn, adding. however. that he was
unable to give any evidence of COM
bfnations or price fixing agreements.