Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-10-04
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| tn he 0PIanted,. ON Productive American.
Soil In the Purchase of Paper and Pulp
Mills, Options on Forty-Eight Of Which
Have Been Secured and Others Pending
The Deal Likely to be Contaminated.
MILWAUKEE, Oct. "A Daily News
Appleton, Wis, special says:
The greatest syndicate deal since the
purchase of the American breweries
by English capitalists has just been
concluded, and unless something I'M
foreseen occurs all the paper and pulp
mills on Fox river will pass into the
hands of an English syndicate on
April /. 1t is learned from parties in
terested in the sale that every paper
and pulp maker on Fox river. with two
exceptions, has signed a contract giving
options on all mills, machinery, water
rights, leases and other properties
The option is good for six months from
October 1.
The two firms who have not vet
signed have agreed to do SO Monday.
The reason for the delay is to gain
time to complete schedules of the prop
critics, which must be attached to the
options when delivered to the syndi-
cate in London.
The properties involved in the deal
include Twenty-Five paper and TWEEN
ty-one pulp mills, situated at Neenah,
Menaha. Appleton, Kimberly, Little
Chute, Kaukauna, Combined Locks and
Depere, along Fox river for distance
of twenty-five miles. The value of
these plants is estimated at S1O,O00,-
600. The daily product, when run
to their normal capacity, amounts to.
1900 miles of pape< e a sheet seventy
six inches wide, and 500 tons of pulp.
The value of the product is about $780,
600 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 pres
ent value of the water rights and
leases, and the earning capacity of the
mills, shown by past business records.
The payment for the properties 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 Butterworth, of Chicago, act
ing as agent for an English syndicate,
composed of some of the leading finan--
ciers of London. The project has
been on foot several weeks When
first made public it met with consid-
cradle opposition. 1t was charged
that Butterworth was acting entirely
for himself, and that he would get as
many options as possible and then
peddle them on the money market. In
quiry in England by interested parties
exploded this theory and showed But
terworth 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
pushed to success.
The original plan 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,
valued at $4,000, 900, will also sell.
Little change will be made in the
management 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 mechanical portion of the mills.
The greateat change will be in the
clerical departments. An Office will
be established at Chicago in which the
business of all the mills will be trans
acted. An immense warehouse will
also be established there. from which
all sales and shipments will be made
In this way the cost of marketing the
product of the fifty mills will be re-
duced to a small fraction of the pres
ent cost The sale will have no effect
on the general business of this local
ity. or upon the employees of the mills,
and is generally regarded with COM
placency