Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1894-10-03
TEN MILLIONS THE PRICE.
All Paper and Pulp Factories in Fox
River Valley Sold to a
Syndicate.

Appleton, Wis, Sept. 29.--The greatest
syndicate deal since the purchase of the
American breWeries by English capital
lists has just been concluded and unless
something unforeseen occurs all the paper
and pulp mills on Fox river will pass into
the hands of an English syndicate on
April l. 1t is learned from parties inter
eSted IN the sale that every paper and
pulp maker on Fox river with two eX-
ceptlons, has signed 4 contract giving OPP
tons on all mills, machinery, water
rights, leases and other properties The
option is good for six months from Octo-
Der l.. The two firms who have not yet
signed have agreed to do so Monday.
Ihe reason for the delay is to gain time
to complete schedules of the properties
which must be attached to the options
when delivered to the syndicate in Lon
don.
The properties involved in the deal in
clude Twenty-Five paper and twenty-One
pulp mills, situated at Neenah, Menasha,
Appleton, Kimberly, Little Chute. Kau-
kauna. Combined Locks and Depere,
along Fox river for distance of twenty
five miles. The value of these plants
is estimated at S10,O00.000. The daily
product when run to their normal ca
pacity amounts to 1900 miles of paper in
sheet 16 inches wide, and 300 tons of
pulp. The value of the product is about
$4,000 daily. The terms of the options
provide that the value of the plants be
reckoned on the basis of the actual cost
of mills and machinery. the present value
of the water rights and leases, and the
earning capacity OF the mills as shown
by past business records. The payment
Tor the properties is to be half cash and
half in three-year notes to be secured by
mortgages on the mills and power.
The deal has been worked up by Frank
II ffN.
for an English syndicate. composed of
some of the leading fnanciers of London.
The project has been on foot several
weeks. When first made public it met with
considerable opposition. 1t was charged
that Butterworth was acting entirely for
himself; that he would get as many
options as possible and then peddle them
on the money market. Inquiry in England
by interested parties exploded this theory
and showed Butterworth to be acting
for thoroughly organized syndicate with
unlimited backing. This fact established,
the owners took hold of the project with
full confidence and the deal has been
provided for the control of all plants in
the state. 1t is believed that now they,
the Fox river plants. which comprise
three-fourths of the industry in the state,
have been secured. the plants Of the
Wisconsin river and other districts, val
ued at S3.000,00O, will also sell.
Little change will be made in the man
agement of the business under the new
proprietors. The present active owners
are to be retained as managers. as also
are all heads of departments in the me-
chanical portion of the mills The great
est change will be in the clerical depart
ments. An office will be established at
Chicago in which the business of all the
mills will be transacted An immense
warehouse will also be established there
from which all sales and shipments will
be made In this way the cost of mar
keting the product of the fifty mills will
be reduced to small fraction of the
present cost The sale will have no effect
on the general businss of this locality,
generally regarded with comDlacency.