Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-05
A BIG PAPER TRUST.
The Wrapping Paper Manu-
facturers Form a Combine
10 SHOOT UP THE PRICES.
A Local Mill Owner Approached by
Agents of the Trust
OVER 1000 MILLS IN TIE TRADE

Users Of the common grades Of wrapping
paper NAV soon have the doubtful pleasure
Of paying q much higher price than they
now do for the material in which they
''do-up" the packages of their various Gus
toners.
For some years the price Of straw and rag
wrapping has been so low that, according to
the manufacturer story, there has been no
profit for them in either grade; in fact, some
owners of paper mills claim to have been
running at loss. This state of affairs is,
Of course, caused by excessive competition,
and many are the schemes that have been
devised to remedy matters, but, up to the
present time, all have proven futile.
The latest scheme which has been sprung
upon an unsuspecting public, is to form
gigantic trust similar to those formed in
other branches of trade, for the purpose Of
diminishing competition by securing con-
troll Of all the straw and rag wrapping mills
in the country.
WORKING IN THE WEST.
The people back of the trust have as yet
confined their operations to the West, but
are gradually working eastward. Agents
are out, and it is safe to say that there are
very few mills, large or small, which have
not been visited. While talking with a
prominent paper-stock dealer yesterday,
reporter learned that letters explaining the
proposed trust and its methods had reached
Pittsburg, and were then in the hands of
Mr.. Hugh McElroy, a local capitalist, who
is largely interested in several straw paper
mills in Ohio.
When the reporter called upon Mr.. Nc
Elroy, that gentleman admitted that efforts
were being made to form a trust, and that
his partners in Ohio had been approached
by agents who wanted to make arrangements
to secure his mills. As Mr.. McElroy,
through the firms with which he is con-
nected, controls the greater part of the straw
wrapping trade of Pittsburg and vicinity, it
will be seen that the matter at once assumes
proportions of great interest to local con-
sumers.
PURPOSES OUTLINED.
The letters, which were kindly shown to
the reporter state that j. G. Richardson, of
the Haldeman Paper Company, Lockland,
O., and ]. B. Sherwood, of Lafayette, Ind,
were the agents, and had visited various
mills throughout Ohio in the interests of the
trust Among others visited were those at
Coshocton and at Newark, from which
places the letters were written.
According to the letters, sMessrs. Richard
son and Sherwood offered to buy the mills
outright at a fair value, or take them into
the combination, giving in return stock in
trust, or part stock and part cash, the latter
to be paid in time installments, the trust to
have, through the present management, full
control of the property. This arrangement
would enable the combination to smut down
or start up the mills, as best suited their
convenience and profit.
The headquarters of the proposed combi-
nation will likely be at Chicago, though this
is bv no means certain. Just whu else be-
sides the agents are interested could not be
learned, but great progress has been mad,
and in the West the trust is looked upon as
an assured fact.
A LOCAL MANUFACTURER DUBIOUS.
Mr.. McElroy did not say positively that
he would or would not enter into an agree
ment to transfer his mills to outside control,
but said that he would await further infor-
nation on the subject Several other paper
dealers and one manufacturer were seen,
but, while they thought that such a combi-
nation could be made of great benefit to the
trade, they refused to discuss the matter
further.
1t is probable that the last great effort to
form paper trust, and its ignominious fail
ure, is still fresh in their minds. This trust,
or combination, which was called the
Consolidated Paper Company, and which
had its headquarters in Chicago, was COM
posed of a number of mills situated all over
the country. Its primary, and in fact its
only object, was to advance the price of
wrapping paper. 1t was formed some few
years ago, and after a short and precarious
career, failed, pinching every member more
or less. Some members lost thousands of
dollars, and ugly rumors of dishonesty on
some ones part were for time heard.
OVER A THOUSAND MILLS.
Should the present, or rather the pro-
posed, trust be formed, it will be one of the
greatest in the country, as there are over
1000 straw and rag wrapping paper mills in
the United States. These mills are of vari-
Gus capacities. some making 1 ton day
and Others as high as go tons every "a hours,
and millions of dollars are invested in them,
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