Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-09
SEEK ACTION BY us.
i'm NEWS PRINT COST
Publishers to Put Situation
in Paper Trade Up to
Government.
BY the Associated Press.

! 10 take up Win FeQeral autnOTlJleS IHe
question as to whether there Is any
redress open in the news print situation
| through Federal action was adopted to-
day at the special convention OF the
association called to discuss proposed
+ increases in news print prices.
The resolution, which was introduced
by Fleming Newbold of The Washing
ton Star, said:
Resolved, That the paper committee
and board of directors be requested to
take up with Federal authorities the
question as to whether there is any re-
dress open to this situation through
Federal Government action"
Two Courses Suggested.
Before the resolution was adopted
two courses of Government action had
been suggested S. E. Thomson, pub
member of the associations paper COM
mittee, had suggested a congressional
investigation of the news print industry.
E. K. Gaylord of the Oklahoma City,
Okla, Times, had believed the Attorney
Generals Office should be appealed to
to take action against the alleged mo-
nopoly.
Charges in the report of the paper
committee, which was presented to the
alleged combination of Canadian news
print manufacturers, which amounted
to a monopoly, has been carried out
through the good offices OF the pro-
vincial governments of Ontario and
Quebec" we're denied partly from the
floor.
N. c., Citizen said he believed the
premiers of the two Canadian prov
inces we're without blame in the mat
ter, that their only interest in the Sit
uation was to see a sterilization OF the
neWsprint price, and Adolph Ochs, pub
Usher of the New York Times. added
that he personally believed Premier
Ferguson of Ontario to be without
blame in the situation.
Resolution Is Adopted.
Mr.. Ochs, whose newspaper owns
half interest in a paper mill and whose
paper therefore would not be affected
by any rise in prices, said that his COM
pany was producing paper at cost
less than other paper companies were
credited with saying their costs were.
A. r. Graustein, president of Inter
national Paper and Power Co., which
is credited with controlling so per cent
of the newsprint output of the CONT
nent, was quoted as having said his
company'S costs per ton were $40. An
other company said its costs were $50
a ton. The present price OF newsprint
is SIS per ton and several companies
already have announced they Will ask
SIS per ton more in their new contracts.
With the adoption Of the resolution
the convention was adjourned.
The paper committee Immediately
went into executive session to formulate
its plans for presenting the case to
Government authorities.
Representatives of several news print
manufacturers were said to be In at
tendance at the convention, but none
of them spoke from the floor.
There were about 100 publishers from
the United States and Canada at the
meeting.
An indepenent investigation of news
print production costs was urged today
in a report of the paper committee.
Charging that a virtual monopoly
exists through the formation by most
of the newsprint manufacturers from
which American newspapers secure their
supply of paper of the Newsprint In
stitute of Canada, the committee re-
ports that 1.-The present diff1cultiss COM
planned of which the institute says
necessitates higher rates, ARE the
natural sequence of overexpansion in
the past and the present uneconomic
conditions.
Lack of Information.
Continuing the report says:
"At no time has your committee had
information from the Newsprint 1nsti-
trte or from individual producers con-
corning the actual cost of manufac-
turing newsprint paper, and 1t there
fore recommends that an independent
Investigation be made OF newspr1nt
production costs and the return to the
mills under prevailing price, on actual
investment of capital.
"Since the increased price announce
ment Canadian press agent sources have
sent out to newspapers and news dis
tributing organizations propaganda TO
the effect that publishers, particularly
in the United States, view such price
increases as essentially reasonable and
as an evidence of the desire OF Canadian
procures to stabilize conditions. No such
comment. however, has reached your
committee"
Expanding its charges of monopoly,
the report says:
Following the demise OF the late
Canadian News-Print Co., Ltd, new
group was formed during the Fall OF
last wear, known as the Newsprint In
stitute of Canada, from the ofhcers OF
which we have sought, but failed 10
secure, information regarding its pur-
pose or details OF lCS OpeTdClon.
Extent Of Membership.
From other sources, however, your
committee is informed that the insti-
tute includes among its membership
nearly all of the newsprint mills OF
Ontario and Quebec, some OF Whlch
are said to have become members I'M
der pressure.
while heretofore there has been at
least a semblance of competition and
independent action on the part OF mem
bers of the institute, we are now, ac-
cording to the best information avail
able, confronted with a combination
held together for a period of five years
under penalties for breach of agreements
so great that all must obey the Will
of the majority.
THE tonnage is pooled, production
controlled and price and marketing
conditions fixed to the end that nearly
all mills within the Provinces of On
tario and Quebec, whether of high or
of low cost production, may be kept in
operation on an equal percentage OF
capacity, thus perfecting an absolute
monopoly, wholly eliminating COMPETE
ton, and thereby subverting the law OF
supply and demand"
The newsprint institute, the report
continues, carries on its activities
under the good Offices of the provin-
cial governments Of Ontario and Que
bee" and it charges further that an