Capital journal. (Salem, Or.) 1919-1980, 1921-05-03
(From the Eugene Guard. }

(From the Eugene Guard.)
The Crown Willamette and
Hawley paper companies, two of
the largest concerns of the kind in
the northwest, have given notice
OF cut of 20 per cent in wages.
At the beginning of the present
year, in the face of failing prices
In nearly all other lines, the north
west paper mills dubbed their con-
tract customers into signing up for
raise from approximately 5A to
S1h cents per pound for print pa
per. At that time, In the east,
where pulp is scarce and high and
working conditions in winter un-
favorable, the price was about 6 "
cents, but tonnage was difficult to
secure, and freight rate of near
ly two cents a pound from the east
gave the northwest mills their op-
portunity to gouge newspaper pub
fishers to the limit, They can
manufacture news print on the
Pacific coast for half the cost at
mills in the east, but at sthe pres
ent time are asking about 70 per
cent more, the eastern market hav-
ing slumped very materially in the
past ninety days. The paper mills
Of Oregon, Washington and British
Columbia are generally supposed
to be controlled In the main by
big San Francisco bankers and
prices are fixed at the general Of
fices in that city. The price set
on news print at the first Of the
year probably gave the print paper
combine a net profit Of 500 per
cent on their product.
What the idea is now for the
attempt to reduce wages in the
northwest mills is not apparent at
this time. Whether the San Fran
cisco bankers who control the sit
uation are not satisfied with 500
per cent profit, and want to re-
duce operating expenses in order
to increase 1t, or fear they will he
forced to cut prices on account of
of Swedish news
print will probably develop later.
Il may be that a strike is desired
to restrict the output OF the mills,
In an effort to maintain prices,
since eastern mills have served no
tice on their employees of 80 per
cent reduction In wages, and II has
the appearance OF an understand
Ing between the International Pa
per company Of the east, and the
mill combine in the Pacific north
west.
The point which concerns the
general public most in this most
recent development In the print
paper situation is the attitude of
big business" In its determina-
ion to force wages down and at
he same time maintain the high
sst prices for industrial products
known In the history of the ma
ion. Furthermore, all these great
Industrial combines are demanding
he repeal OF the excess profits tax
and the levy in its place OF sales
AK which the consuming public
must pay. This will leave the
yreat trusts of the country, Stand
lrd Oil, Bell Telephone company.
United States Steel corporation.
Harvester company,
american Wooden Mills company.
Paper company and
he Pacific northwest paper mill
as well as many other gil
,antic corporations. free to distri-
'ute all tlSir fabulous profits as
dividends. instead of being COM
'elled 20 pay a large part of them
lver to the government under an
Ncess profits tax law. The con-
umers, who are at the mercy OF
he trusts. must il congress follows
ut the Instructions Of the repre-
entatives Of big business" pay
II the great war debts and cur
ent running expenses OF the gov
rnment through a sales tax to be
dded TO the price OF every article
hey buy.
Verify, the triumph OF the eapf-'