The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-05-17
NEW SPRINT RISE
Continued From Page onel

Z
The Truman administration i'm
mediately asked the Canadian gov
eminent TO reconsider and reseind
IFS approval of the price hike.
Price Director Ellis Arnall, in a
telegram to c. D. Howe. Canadian
minister of defense production,
said 749 American daily newspa-
perS have disappeared within the
past 90 years through consolida-
tionS. mergers and failures.
If newsprint prices continue TO
rise, Arnall said. the trend will
continue and--in the end-the Ca
madam newsprint industry itself
would ultimately be injured.
Sen. Edwin {. Johnson (D-Colo.) },
chairman of the Senate Commerce
Committee, suggested a study to
determine whether the u. S.
should retaliate by tipping the
price of sulphur. which these news
print producers must get from
Us"
The increase will boost the price
of Canadian newSprint delivered
in New York to an all-time high
of Sl26 q ton.
In the Depression years of the
early 30s newSprint cost $40 a ton.
1t was $50 a ton at the time of
Pearl Harbor.
Here's what happened since:
In 1886 the price mounted to $S4.
The next year it climbed to $50,
md reached 500 by the end of
l94S. A further increase in 1850
raised the price to $106. 1t scared
to S1l6 last July, nudging the pre-
vious high of $500 set in the early
1905.
The Tightening cost squeeze on
the nations newspapers was a
topic of major interest at the re-
cent convention here of the Ameri-
can Newspaper Publishers Associa-
ton.
Subscribers prices have in
creased and apparently ever-rising
costs of operation and inability to
find increasing revenue to meet
those costs, are beginning to won-
der what the answer may be for
them-they are reluctant TO say
that merger and suspension is the
solution
The obvious solution. ii was held.
is bringing in more money and
cutting costs.
Publishers are expected TO give
increasing attention to the delicate
balance between news and adver-
tising-between unpaid and reve-
nue. producing spaee-in their col
umns. Last year the ratio averaged
about 60-40, with news and other
unpaid editorial matter filling 80
per cent Of the space and display
and classified advertising the re-
maInder.
As 10 boosting advertising rates.
many newspapers have liked their
rates several times since the war.
The weightieSt argument in favor
OF higher rates is the unquestioned
impact of newspaper advertising on
retail sales.
Boosts in newsstand and sub.
scription rates appear 10 be en-
countering greater publisher re-
sIstance. Most Los Angeles papers.
however, have now been raised 10
10 cents a copy for weekday edi-
tons and In the East the Macy
chain Of eight Westchester County,
\. Y. dailies recently increased
the newsstand price to seven cents.
The Canadian price increase 10
expected TO spur the search for
other sources N newsprint. As
costs mounted IN recent years.
publishers began TO explore the
possibility Of producing newsprint
from such raw materials as sugar
cane waste (bagasse), straw and
grass. and American hardwoods.
rather than from the soft spruce
timber which abUlnds in canadas
forests.
The appetite Of American news
papers for neWsprint is voraeious.
The AAPA has estimated that by
1880 oar newspapers win be de-
youriBg uewspriBt at the rate u
sesen million tons q year. Ameri-
can consumption last year was
s 80 565 tons compared with s..
90 81 tons in 1850 and 500 20
tons in i949.
Approximately nine tenlhs Of the
newspfsnt used IN the L. S. il
impaired from Canada. and the
Dominion product sets the market
pfice Conterseiy. about 50 per
cent Of Canada total newsprlut
o. lpus IS sold IN this country.
The latest price hike Is slgnifl-
eaagIY different from the previous
Dosa ear Increases. While ths
plet3oas boosts we're Inevitably ac-
eompanled bY . corresponding IN
crease "a ire price 10 Csnadlaa
publishers. th.s tine IL price c.
nad4an neH Es p xs-
r2a Uae.ae Ist & Ala