Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-28
Compromise Provides
For S4-a-7on Rise
In kewsprint
OPA and Conudiuns
Leave Way Open for
Further Review
Ev he Assnc.ated Pres

By the Associated Press.
The Canadian and American
Governments announced yesterday
81 ton increase in the cciline
for standard neWsprint paper. The
announcement was made Jointly By
the Office Of Price Administration
and the Canadian Wartime Prices
and Trade Board The increase be-
comes effective March /.
OPA Administrator Brown sale
the increase was necessary be
cause the neWsprint industry can
no longer absorb the increased cost
which war conditions have brought
about"
The War Production Board re-
Gently postponed a proposed addi-
tional 10 per cent curtailment in
newsprint consumption when it de-
veloped that supplies would be
larger than estimated originally.
Yesterdays OPA announcement
said the price increase will be the
first In five years and bring the So
called port ceiling price to S54 a
ton, with zones adjusted accordingly
Thorough study Made.
The announcement noted the price
increase had been the subject Of
"extended conversations between
tire United States and Canadian
agencies before the agreement was
reached on the 81 figure.
Text Of the announcement fol-
lows:
Joint announcement of an in
crease Of 81 a ton IN the price which
American and Canadian producers
may charge and American and Ca
madam consumers may pay for
standard neWsprint paper, was made
today Saturday by the Once Of
Price Administration and Canadian
Wartime Prices and Trade Board.
The increase, first in five years,
becomes effective March / and brings
the new port ceiling price to s54
per ton with zones adjusted accord
inglv.
The price increase Of 81 a ton
authorized by OPA has been the
subject Of extended conversations
between that agency and the War
time Prices and Trade Board of the
Dominion Of Canada. The agencies
of the two Governments have agreed
on 81 increase at this time. How
CT OF Ic,o
Of the Canadian Government Off
Gals that 81 does not fully reflect
the increas ed cost of the Canadian
industry it was further agreed by
the two agencies that the increase,
which Is substantially smaller than
has been requested by the Canadian
Government, would not prejudice
further review Of the price situation
as between the two agencies on
subsequent date.
Rise Declared Necessary.
According to Prentiss N. Brown,
price administrator. the advance is
necessary because the newsDrint in
oustry can no longer alb orb the in
creased cost which war conditions
have brought about, Woods opera
tons and costs of transportation
have risen and water-born ship
n1ents have decreased, with the re-
suit that the neWsprint industrys
position has deteriorated further,
Nine of the Is United States news
print manufacturers are operating
at loss.
Newsprint is one of the few
major commodities that has not
increased in price since the war
broke out in 1899 Administrator
Brown stated, Ever since that time,
and even more in the past year.
neWspr!nt transportation and pro-
duction costs have risen sharply.
with the result that a large segment
Of the industry is losing money on
every ton Of rcWspriut delivered,
while the profits Of those conlpa-
nioS which still are operating in the
black are shrinking rapidly.
Cost Changes Cited.
The increase in so far as the
American industry is concerned, is
clearly one which is in strict con-
formity with the Emergency Con-
troll Act, as amended. Cost changes
since 1898 have rendered prices cs-
tabllshed five years ago no longer
fair and equitable The Office of
Price Administration must apply
Its standards both impartially and
vigorously. It must act on those