Evening star., 1947-07-18
Some Papers in U. 5.
Pay Ny-High Prices
For Scarce Newsprint
By the Associoted Press

United States newspaper publishers
are paying sky-high prices for
newsprint in an international free
market that stretches from New
York to the Orient.
Paper from Canada. Sweden.
France and Poland is being sold
and offered at prices from around
$500 a ton up-with the accent on
the up" At least one publisher
has paid $500 a ton.
This $500 charge Is 2le per cent
above the so-called contract price
of $9l ton delivered in New York.
the price at which the great bulk
of newsprint. mostly from Canada,
is sold in the United States.
Publishers Of metropolitan dailies
as well as small-town papers are
paying fancy prices to pad out dan
gerously low supplies Stocks Of
newsprint held by all American
publishers at the end of May were
the lowest level on record and only
slightly hicher at the end of June.
according to the latest report of the
American Newspaper Publishers
Association.
Rate Of Use Increases.
A total of l,72o,637 tens of news
print was used during the first six
months of l947 by daily newspapers
reporting to the ANPA, which said
this amount represented an increase
of 1873 per cent over the same period
a. year ago.
Today's high-priced supplies.
small in relation to total United
States consumption, find their way
into domestic trade channels by de-
vious routes Most of the dealers
are relatively small operators deal
ing in newsprint for the first time.
1t is a temporary market for them.
and they are making the most of it
while they can. Some dealers call
this free market-as contrasted with
the contract market at s9l-a gray
market"
One paper dealer is currently
Offering 500 tons of quality
Swedish newsprint at s240 a ton
at Curacao, Netherlands West In
dies This Is equivalent to about
$3.50 ton delivered in New York.
Asked for the reason he based his
price at Curacao, he explained that
the tonnage was shipped from
Sweden and destined for Latin
American consumer. Due to a
friendly connection between the
Latin American agent for the Swed-
ish manufacturer and his own firm.
he said, this tonnage was diverted
from its scheduled destination. He
said that 500 tons would be avail
able about every four to six weeks.
French Supplies Sold.
French neWsprint is offered for
August delivery at 1925 a ton. a s5-
a-ton boost within the last month.
Sales of this newsprint have already
been made, or arranged. to papers in
the Midwest and South in amounts
ranging from SO to ITO tons.
French ewsprint has been
shipped to his country despite a
desperate shortage in France and
statements by French offlcials that
such exports are frowned upon by
the government. Exports are subject
to license. A French Embassy
spokesman said the paper had been
exported through some "mix-up' In
export permits.
Another source of supply for The
high priced free market is the di-
version of Canadian paper consigned
to New York for re-export.
| A typical transaction occurred
several weeks ago, one paper dealer
said, involving shipment of news
print to Shanghai from a Canadian
mill through the port of New York.
The exporter in New York learned
that his Shanghai customer had
gone bankrupt after the paper had
arrived in New York, the dealer
said. The paper eventually filtered
into the free market. This same
story was told by another source
who said the Shanghai consignee
hed reneged on his contract.
One Deliberate Case.
informed sources in the in
dustry stated they knew of only one
instance, involving about 81 tons
of newsprint. in which a Canadian
mill deliberately arranged with its
New York agent to divert into the
free market neWsprint which was
ostensiblv bound for re-export from
New York.
A New York trade paper few
days ego carried an advertisement
Offering 900 metric tons Of Polish
newsprint s21O a ton fob. the
Polish seaport of Gdynia. Delivery
price at New York would be about
1925 plus insurance, commissions
and possibly other charges.
Another lot Of newsprint which
NAV enter the free market Is at
Sakhalin. the Russia an controlled
island north of Japan. A spokesman
for Amtorg. the Soviet trade agency
in New York. said the paper was OF
inferior" quality and that price
had not been decided on. He added
that export from Russia would De
an isolated case. inasnluch as the
Soviets could use all the newsprint
they produced.
The whole problem of the news
print shortage. despite somewhat
higher production in Canada. the
main world producer and this coun-
try's chief source of supply, now Is
being investigated by two commit
tees of Congress. The Canadian
combines investigating commission
er has made CONFIDENTIAL report
regarding an alleged combine" in
the newsprint industry in Canada.
Hedy Lamar Divorces
1 oder for