Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-06
SENATE PR0BERS
ASKPR0SECUT|ON
Of PAPER MAKERS
Committee Report Alleges
News Print Shortage Due
to Illegal Practices.

Prosecution by the Department Of
Justice Of the manufacturers Of news
print paper under the Sherman and
Clayton acts is urged by the Senate
committee, which investigated the
print paper situation. The commit
tee, in a report made late yesterday,
found that the shortage Of news print
paper. which has Handicapped Ameri-
can newspapers. Is more the result Of
artificial obstxvctions 2than Of natural
laws" [zs3..
Should tho governmentss efforts to
maintain a reasonable price be frus-
trated by the manufacturers. the Sem
ate committee recommended that a
federal news print board should be
established "to supervise the manu-
facture and distribution Of print
paper"
Illegal Practices Charged.
Manufacturers were charged by the
committee with unjust. illegal and
discriminatory" practices. Present
prices for news print paper were held
by the committee to be excessive and
unwarranted."
Other recommendations made by the
committee include:
Amendment Of the Lever food con-
troll act to penalize proflteering in
news print paper.
Imposition Of an excise tax Of 10
cents on Sunday newspapers weigh
ing more than 1928 pounds q copy. so
as to limit such editions to eighty
pages until an adequate paper supply
can be secured.
Appropriation OF 100000 for the
purpose Of experimenting with sub
stitutes for wood pulp.
Establishment Of a rate Of l cent
a pound on sheet print paper to any
part Of the country when sent by
parcels post without increasing the
present limit Of 70 pounds provided
under the postal regulations.
Suggest Government MIL.
The committee also recommended
that consideration be given by the
government to the establishment of
a 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-
crat, Massachusetts,. and was signed
by Senators McNary. Oregon. and
Gronna, North Dakota, republicans.
Senator Reed. democrat, Missouri,
who was chairman OF the investigat-
ing committee. was unable to go
over the report because OF his duties
on the campaign expenditures in
vestigating committee. and did not
sign the report
The report Is based on extensive
hearing held by the committee, at
which testimony from newspaper and
periodical publishers and paper manu-
facturers, dealers and jobbers was
heard.
Smaller Publishers Hard Hit.
Publishers of small newspapers
were declared by the report to be
in the hands of ''unscrupulous prof.
teers and exploiters," while "eyen
the large newspaper publishers are
at the mercy of the manufacturers"
The report added that it was not and
still is not safe for publisher in
any way to criticise or protest to a
manufacturer" while the big pub
fishers not having mills of their own
are in a 'hold-up' market and the
small publishers are being driven
from the business by threatened bank
ruptcy."
"All the evidence Of the various wit
nesses and the substantial and ab-
solutely authentic information we
have obtained from official reports"
the report declared. seem to indicate
that many of the news print paper
makers here and in Canada were act
ing in col1usion. with the apparent in
tent to bring about restraint of the
.(Conttnued on Page II, Column 81