The star-progress. (Opelousas, La.) 1917-1921, 1920-08-28

composing room, rressfoons, siereo-
typlng and other departments. Its
payrolIs have recently been increased
Is per cent to so per cent, or more.
Without a substantial increase I'm In
come this increase in labor cost alone
would BANKRUPT most newspapers.
But other increases in cost have 10
be met, which are peculiar to the
newspaper at the same tims that
they are exceptionally heavy. The
cost of postage has been increased to
that extent that the average news
paper is now delivered by mail be-
yond the second zone at a cost, in
some instances, Of twice the sub
scription rate received; and many
newspapers have been compelled to
cut off their country circulation. Most
metropolitan newspapers are now cir
culation, as against the previous per-
sistent campaign for an increase in
that field.
The greatest burden, hwever, of the
newspaper, is the result of the recent
unprecedent leap In the price of
newsprint paper. Within the past
seven years the price Of nswsprint,
under standard annual contracts, has
jumped from $40 per ton, or less, to
800 per ton. But the increase in de-
mand has become greater than pro-
duction capacity. The allotments
which paper mills can make to their
regular customers at the standard
contract price are increasingly in
sufficient to meet requirements, and
the supply of newsprint in the paper
market is inadequate to supply the
required excess over contract quanti-
ties and at the same time supply that
great number of publishers who buy
their newsprint in the transient mark
ct. The result is that within the past
year transient prices for newsprint
have gone to the present figure Of
$3.50 per ton, or over 500 per cent in
crease on the price of seven years ago
and $50 per cent over the standard
contract price fixed in December,
1919 for the year 1920. The result in
newspaper production cost can be
Judged 10 1e fact that metropoli-
tan daily with, say, 100000 circula-
ton, requires around 10000 tons Of
newsprint per year, and that an in
crease OF only $40 ton raises its an
nual production cost by 100000.
The price Of newsprint today is 5000
ton in England, $3.50 in Sweden and
$500 in France and, for transient lots,
$3.50 in the United States. AS point
ed ont by R. S. Kellogg, secretary Of
the News Print Service Bureau, in
his discussion in American Forestry,
the present shortage Of paper is not
-due to decreased production, but to
increased consumption, and with lit
tie prospect OF RELIEF In the near 1u-
ture.
Increases in subscription and ad-
vertising rates are, therefore, compul-
sorry. While snch increases in rates
have not generally been anywhere
near in proportion to the increased
production cost, 1t is a mistake to as
sumo that the newspapers income is
increased to the full extent of its In
crease in subscription and advertising
rates. A substantial part of the In
crease, for instance in subscription
rate, has to be divided with the car
rier or other distributor. An increase
in advertising rates does not mean
the same percentage of increase in In
come, either upon normal or abb
normal amount of Advertising pub
lished Every increase in advertising
space means more newsprint, more
postage, more composition cost-all on
an enormously increased basis. There
is hardly a metropolitan newspaper