JOHN NORRIS, REPRESENTING AMERICAN NEWSPAPER PUBLISHERS' ASSOCIATION, FILES LETTER OF KANSAS CITY (MO.) STAR. PUBLISHER OF 904 PULITZER BUILDING, New York, January 5, 1909. Hon. SERENO E. PAYNE, Chairman Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: In the matter of pulp and paper schedule, may I submit to you the inclosed letter from W. R. Nelson, publisher of the Kansas City Star and proprietor of the Star Paper Mill, Kansås City? Yours, truly, Mr. JOHN NORRIS, JOHN NORRIS, Chairman of Committee on Paper, American Newspaper Publishers' Association. KANSAS CITY, Mo., December 29, 1908. 904 Pulitzer Building, New York City. DEAR MR. NORRIS: The paper makers and allied interests. have always been exceedingly busy with the Star's paper mill. They have called it "Nelson's white elephant," and they have had me bankrupt several times since the mill has been in operation, but they never have been quite as explicit as in the answer submitted by them to the Ways and Means Committee. The statement, "Mr. Nelson has no hesitancy in stating that his losses amount to over $600,000," has never been uttered by me. It is a deliberate falsehood. When, in August, 1902, I decided to manufacture my own paper the white paper situation was insufferable. It was impossible for a western publisher to obtain paper except through the General Paper Company of Chicago. On January 18, 1902, the Star closed a contract with that concern to supply us with 500 tons per month at $2.10 f. o. b. Kansas City. During the life of this contract the growth of the Star made it necessary to increase the shipments to 700 tons a month, and, although there had been a reduction of 10 cents per cwt. in the freight rates, the best price I could secure for the additional 200 tons was $2.371. There was no apparent reason for this advance. I realized the importance to the Star to control its paper supply. I built the paper mill in Kansas City. It began operations in July, 1903. I have had no reason to regret my action. There probably has been a time when I could have purchased paper for less than it costs me to manufacture it in Kansas City, but I maintain that my average cost price since July, 1903, has been below the Kansas City quotation of the paper makers. In addition to this I have been absolutely independent of the paper trust. It was the Star's paper mill that put a stop to the soaring price of paper in 1902 and 1903. I have always felt that in assuring my own supply of paper I rendered a distinct and valuable service to my fellow publishers. I have enjoyed the paper mill every minute since it has been built, so the paper makers need give themselves no uneasiness on my account. If their predictions come true I can see still greater comfort in store for me in the future. In conclusion I want to say that The Star Paper Mill is in splendid physical condition; it has paid interest and all maintenance charges. It makes 50 tons a day. Twice-when we were threatened with a strike two years ago, and again in October this year, when advertising and circulation increases forced us to look for an extra supply-we purchased white paper, and in each instance had to pay a price far in excess of our cost price. You are at liberty to use this information in any way you like. Yours, truly, W. R. NELSON. ONION SKIN PAPERS. [Paragraphs 396, 397, and 401.] STATEMENT MADE BY A. W. ESLEECK, REPRESENTING THE ESLEECK MANUFACTURING COMPANY. SATURDAY, November 21, 1908. Mr. ESLEECK. I will not burden you with any further statistics, Mr. Chairman, but simply present a few facts in relation to the classification of certain papers that now come in under the schedule of printing papers. Mr. DALZELL. What paragraph? Mr. ESLEECK. Among them are what are termed "onion skin or typewriter papers, japan paper, drawing paper, blueprint paper." All of these have been entered as printing paper at a low classification. Mr. DALZELL. What paragraph of the bill are they in? Mr. ESLEECK. Paragraphs 401, 396, and 397. We established our factory about eight years ago with reference to making light-weight papers. At that time there were few, if any, imported into this country. Since that time the foreign light-weight papers are imported in large quantities, and sold by almost every jobbing house in the United States. These papers are imported as onion skins, advertised as onion skin and typewriting papers, used as such, and come in direct competition with the American product. The price at which they are imported is very low, the price at the port of entry being about 5 or 6 cents a pound, and they are sold in this country at 8 cents. Now, the cheapest paper we can make of that character is from 13 cents to 35 cents, and yet the price of these foreign papers is so low that the trade use them simply because the price is low, and use them in place of the domestic article. They say the papers are not as good, and they are not, but they say they answer the purpose for which they use them, which is manifold purposes. The same is true of blueprint papers. They come in also as printing papers, and without taking up any extra time I would like to read just one or two notations I made here, and leave the brief with the clerk of the committee. Paper designated in the trade as onion skin, glazed or unglazed, white or colored, manifold or typewriter, weighing not more than 8 pounds to the ream of folio 17 by 22 inches, 6 cents per pound and 15 per cent ad valorem; if weighing over 8 pounds and not over 10 pounds to the ream of 17 by 22 inches, 5 cents per pound and 15 per cent ad valorem. This would give this class of paper the same protection as is given to copying paper. But these papers are used for the same purposes as copying paper; they are used for manifolding purposes. With this classification and rate of duty the German article could then be sold in this market for several cents per pound less than the cheapest of the domestic papers. There are other grades of writing papers manufactured in this country that are seriously affected by the present classification, notably blueprint papers, hand-made papers-whether genuine or imitation, cover papers, Japan papers-genuine and imitation, these papers have been entered as printing paper at a duty of eight-tenths of a cent per pound. We are not asking any increase in these papers, but we do ask that these papers be properly classified, and we do believe that all these papers I have referred to onionskins, manifold, Japan paper, and blueprint paper-should come under paragraph 401, which refers to writing paper. Mr. UNDERWOOD. What is the volume of those papers consumed in this country? Mr. ESLEECK. You mean the light-weight papers? Mr. UNDERWOOD. The papers you are referring to. Mr. ESLEECK. Of the light-weight papers which I am personally most interested in I should say, without having exact data, that there was probably a thousand tons imported. Mr. UNDERWOOD. Then how much is consumed in the United States? Mr. ESLEECK. That is a hard question. It is a growing trade. Mr. UNDERWOOD. You have no comparison of the importations. with the consumption in the country? Mr. ESLEECK. I should say that the importation was probably onethird of the consumption on the manifold papers; the onion skins and the typewriter manifold papers, I should say that the importation was probably one-third. Mr. UNDERWOOD. Two-thirds produced in the United States? Mr. UNDERWOOD. That is under one-eighth of a cent duty now? Mr. UNDERWOOD. If we put on the duty that you ask, what effect would that have on the importations? Mr. ESLEECK. The imported article could be sold for about 3 cents a pound less than the cheapest paper we make in this country. Mr. UNDERWOOD. You think the importation would be as large as it is at present? Mr. ESLEECK. I do not know that it would affect it very much, but it would bring the two papers, domestic and foreign, nearer together, so that there would not be that inducement for the people to buy the cheaper article. Now it is so cheap that they use the imported. Mr. UNDERWOOD. Would not the effect of that duty be to cut off importations entirely? Mr. ESLEECK. No, sir; they could import it and sell it 3 cents a pound cheaper than our cheapest paper. Domestic prices run from 133 up to 25 cents, and even higher than that. BRIEF SUBMITTED BY A. W. ESLEECK, REPRESENTING THE WRITING-PAPER BRANCH OF PAPER INDUSTRY. Hon. SERENO E. PAYNE, WASHINGTON, D. C., November 21, 1908. Chairman Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: We appreciate the courtesy extended to us by 'your honorable committee in giving us the opportunity to present some facts that have a most important bearing upon that branch of the paper industry with which we are connected and which vitally affects its interest. First. The importation of German light-weight papers. These are manufactured on a basis of from 7 pounds to 9 pounds to the ream of 480 or 500 sheets, 17 by 22 inches, and sold in this country as onionskins and manifold typewriter. These papers are imported by the Germania Importing Company, of New York; O. M. Steinman, of New York; and also by several of the large jobbing houses in this country. These papers are advertised as onionskin and typewriter papers, sold as such, and as such they are universally used; and while the quality is much inferior to the domestic product, and the price at which it is sold is so attractive to the average buyer (being approximately 8 cents per pound) that it is rapidly crewding out the American product. (See exhibit A attached, which are the foreign papers; Exhibit B are of domestic manufacture.) These papers are not covered either by section 397 or 401 of the present tariff, but have, we understand, been entered under section 596 as printing paper at a valuation carrying eight-tenths of a cent per pound. The injustice of this classification is so manifest, and its effect on American manufacturers of paper used for identically the same purpose so disastrous, we feel that it is only necessary to place these facts before your honorable committee to have them receive your most favorable consideration. Section 397 places a duty on copying and tissue papers weighing not over 6 pounds to the ream of 20 by 30 inches of 6 cents per pound and 15 per cent ad valorem; if weighing over 6 pounds and not over 10 pounds to the ream, 5 cents per pound and 15 per cent ad valorem. The quantity of paper used in duplicate work, i. e., carbon copies, is vastly in excess of that used in the manufacture of copy books, and inasmuch as the foreign importations of onionskin and typewriter manifold seems to be unclassified under the present tariff that was framed prior to the advent of this class of paper into this country, we beg to suggest to your honorable committee for your favorable consideration the following classification: Paper designated in the trade as onionskin, glazed or unglazed, white or colored, manifold or typewriter, weighing not more than 8 pounds to the ream of folio, 17 by 22 inches, 6 cents per pound and 15 per cent ad valorem; if weighing over 8 pounds and not over 10 pounds to the ream of 17 by 22 inches, 5 cents per pound and 15 per cent ad valorem. This would give this class of paper the same protection as is given to copying paper. With this classification and rate of duty the German article could then be sold in this market for several cents per pound less than the cheapest of the domestic papers. |