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Mr. BECKWORTH. Would you draw distinctions as to the purpose of the paper, whether it be a trade paper or a religious paper, or what not?

Mr. TREANOR. I would certainly never draw any distinctions on that.

Mr. BECKWORTH. Or a labor newspaper.

Mr. TREANOR. No, sir; the press is all-embracive, and it has a right to be religious, fraternal, labor, or secular of any type, or daily, or weekly, or monthly, and we certainly would never draw any distinction as to essentiality of the printed word.

Mr. BECKWORTH. You would pass on what you consider the necessity of it, of course?

Mr. TREANOR. We would take into consideration whether it would be of help to the community under distress. If a man came in and said he wanted to start a paper in some town, and he thought he would like to start a weekly there, and would ask us if we could help him get a supply of paper, our disposition would be to say, "Yes," whether it was religious, labor, or fraternal, or anything else. After all, we still are the one country in the world that believes in freedom of the press, and it would be very presumptive on my part to say you can't do that because I don't like your purposes.

Mr. BECKWORTH. You cannot have freedom of the press if there is not freedom to go into the business of publishing.

Mr. TREANOR. That is our view.

Mr. BECKWORTH. That concludes your statement in open hearing, and I think while we have just a little time we will ask those in the room to leave, other than Mr. Treanor, and we shall chat with you further.

The committee is adjourned until 2 o'clock this afternoon.
(The following material was later received from Mr. Treanor:)

DEPARTMENT OF COMMERCE,
NATIONAL PRODUCTION AUTHORITY,
Washington 25, D. C., July 3, 1951.

Hon. LINDLEY BECKWORTH,

House of Representatives,

Washington 25, D. C.

DEAR CONGRESSMAN BECKWORTH: The subject matter of your query of June 23 has also been a matter of concern to us and in an effort to gain further information, we have had to delay our answer.

The detailed usage of newsprint, aside from daily newspapers, has never been accurately established in this country. Total consumption can be figured with reasonable accuracy because it is so closely allied to total production plus imports. Its use by newspapers (weeklies, semiweeklies, community papers, and all classifications aside from dailies) is a question which has never been completely answered.

In the interest of clarity, we make our reply in three divisions (on separate sheets herewith):

1. Newsprint usage statistics gathered by WPB.

2. United States newsprint consumption.

3. Usage of newsprint by weekly newspapers.

You will note that the "country" weeklies apparently use about 1.89 percent of our newsprint, and that all weeklies, paid and unpaid, use about 3.53 percent. We are very appreciative of your interest in our testimony on June 18, and will always be happy to supply any information we have or can secure for you. Sincerely,

ARTHUR R. TREANOR, Director, Printing and Publishing Division.

NEWSPRINT USAGE STATISTICS GATHERED BY WPB

All daily newspapers covered in the 1939 Census of Manufacturers and all members of the American Newspaper Publishers Association were queried as to their consumption of newsprint in 1941. We received and compiled this information in 1943. These figures proved entirely acceptable to the industry. About four-fifths of the dailies replied. Most of the nonrepliers were in that class using less than 100 tons, who were not subject to the first cut.

(a) Those newspapers which did respond were placed in four classes for administratice purposes: (1) those using 20,000 tons and more, (2) those using from 2,000 to 19,999, (3) those using from 400 to 1,999, and (4) those using 100 to 399-all in the base year 1941.

(b) In the year 1941 the first class consumed 1,941,714 tons, the second class 1,124,836 tons, the third class 290,621 tons, and the fourth class 93,861 tons.

(c) These total 3,451,032 tons which sound reasonable when compared with total 1941 newsprint consumption for all purposes of 3,929,773 tons. The difference of 478,741 tons was used by weekly and other nonreporting newspapers, by magazine and comic-book printers.

These divisions of consumption were accurate when made, and stood up during the administration of L-240. Consumption in 1950 increased 51 percent over 1941, many newspapers have disappeared from the scene, and the great increase in newsprint tonnage has been on the largest newspapers.

UNITED STATES NEWSPRINT CONSUMPTION, 1950

Actual consumption 525 ANPA members_
Estimated consumption 1,247 nonreporting daily newspapers, country
weeklies, community newspapers, commercial printers, "pulp" mag-
azines, comic magazines_

Tons

4, 541, 760

1, 395, 181

Total consumption_.

5, 936, 941

The total of 1,395,181 nonreported tonnage is arrived at as a fairly constant 23.5 percent of the newsprint available for use in this country. Newsprint available for use comprises (1) United States production, (2) plus shipments from Canada, (3) plus shipments from Europe, (4) minus United States exports.

USAGE OF NEWSPRINT BY WEEKLY NEWSPAPERS

No consumption statistics have been kept by groups of newsprint users except newspapers, but we have been able to secure some informed estimates in the weekly field which seem reasonable to us.

The National Editorial Association estimates that the 7,000 country weeklies use 70,560 tons, and the 1,500 semiweeklies 42,000 tons-a total of 112,560 tons. Also to be considered are the so-called community newspapers, (including shopping weeklies), comparable with the country weeklies, except that they are distributed free and in general are larger because they serve more populous communities. There are approximately 482 of these and their association estimates their usage of newsprint at 95,000 tons.

An interesting commentary on the community newspapers is that a survey in 1947 disclosed almost 250, or around half of the country's total, were published in Los Angeles County, Calif.

(Whereupon, at 12 noon, the committee recessed until 2 p. m. the same day.)

AFTER RECESS

Mr. HELLER. The committee will come to order.
Mr. Walsh, you may make your statement.

STATEMENT OF M. C. WALSH, DEPUTY CHIEF, PULP, PAPER, AND PAPERBOARD BRANCH, OFFICE OF PRICE STABILIZATION, ACCOMPANIED BY FREDERICK MEARS, CONSULTANT, PULP, PAPER, AND PAPERBOARD BRANCH, OFFICE OF PRICE STABILIZATION, WASHINGTON, D. C.

Mr. WALSH. I am M. C. Walsh, of the Office of Price Stabilization, Deputy Chief of the Pulp, Paper, and Paperboard Branch. I am not an expert on newsprint, but I have had my nose rubbed into it pretty much in the last 2 weeks.

We have called on Mr. Mears for help. His name is in the works to be processed as consultant for our agency. The papers have not come through yet. Nevertheless, he is the best consultant we or you could find on the subject of newsprint. He is with the Great Northern Paper Co., which is a great producer of newsprint. In the agency we have known him for some time. If I get into technical questions on newsprint I will toss them to Mr. Mears. Any questions on the agency I will try to handle.

Mr. HELLER. Where is that company located?

Mr. MEARS. We have three mills in the State of Maine, Congress

man.

Mr. WALSH. I prepared a short statement just to introduce the subject, including some tables which summarize what I consider to be the pertinent information although nearly all the information is available in so many records, including Government reports, that it probably is already familiar to you.

During the Second World War and under OPA the price of newsprint moved from $50 per ton in New York in 1941 to $85 per ton in 1946. Since OPA the price advanced further and reached $106 in New York in November 1950. The details of these price changes are shown in table 1.

The price rise for newsprint during this period was equal, percentagewise, to the increase in the prices of all manufactured products, that being a Government figure, but the rise for newsprint was less than the rise in the wood pulp and paper products generally. Between January 1947 and January 1951 the price of newsprint and the prices of all manufactured products rose 26 percent while the price of pulp and paper products rose 40 percent. The details of these percentages are shown in table 2.

The relation of price to production and consumption is shown in table 3.

The cost of production of newsprint in the United States increased rather substantially during the Second World War. Studies by OPA indicated a rise of from $33 total cost per ton in 1941 to $50 per ton in 1945. Members of the Newsprint Manufacturers' Industry Advisory Committee indicated to OPS last week that cost increases since the outbreak of the Korean War would entitle the industry to increases under CPR 22 in their ceiling prices of from $3 to $5 per ton. As you know, Canadian firms have recently announced an increase of $10 per ton in the price of newsprint effective July 1. This pro

posed increase was reviewed by the Canadian Department of Defense Production which notified the United States Office of Price Stabilization that the increase would be approved. Because of the importance of Canadian production, which provides about 80 percent of the newsprint consumed in the United States, Michael V. DiSalle, Director of Price Stabilization, has requested a meeting with Canadian officials to discuss the matter.

Last week the Office of Price Stabilization met with representatives of the American manufacturers of newsprint and with representatives of American publishers to discuss the question of appropriate measures to be taken to stabilize the price situation in these industries. It was decided that OPS would take no price action on newsprint pending consultation with Canadian officials. Copies of the press releases covering these meetings are also submitted.

That is the end of my prepared statement, with the exception of the attachments which I have submitted. The two press releases covering last week's meetings list the industry people present at the meetings and the publishers. So that attendance is made a matter of record.

Mr. HELLER. Without objection the tables referred to in the statement and the releases will be made a part of your statement, following the statement which you have just made.

Mr. WALSH. Thank you.

(The documents referred to follow :)

TABLE 1.--Newsprint, price history, zone 4, 1946 to present

Effective date:

1

Jan. 1, 1946 1. Sept. 1, 1946 1 Oct. 11, 1946 1. Apr. 1, 1947_ Jan. 1, 1948_ Aug. 1, 1948.

Nov. 1, 1950_

1 Under OPA.

Source: Newsprint, United States Tariff Commission, 1951.

Price per ton

$68

75

85

91

97

101

107

NOTE. Under the zoning system the price of newsprint in zone 4 is the base price from which uniform delivered prices for all points within each zone, except zone 10 comprising an area largely west of the Rocky Mountains, are calculated. The price in New York, usually quoted, is $1 per ton less than in zone 4.

TABLE 2.-Index numbers of prices of all manufactured products, pulp and paper, compared with price of newsprint, years 1947 to 1951

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TABLE 3-A.-Newsprint statistics, January 1948 through June 1948

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TABLE 3-B.-Newsprint statistics, July 1948 through December 1948

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TABLE 3-C.-Newsprint statistics, January 1949 through June 1949

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