The Monticellonian., 1894-10-05

Soil In the Purchase of Paper and Pull
 Mills. Options on Forty Eight of Whici
 Have Be n Secured and Others Pending
 The Deal Likely to be Consummated.
 MILWAUKEE, Oct. 2.-A Daily News Appleton, Wis, special says:
 The greatest syndicate deal since the purchase of the American brewerics by English capitalists has just been concluded, and unless something un- foreseen occurs all the paper and pulp mills on Fox river will pass into the hands of an English syndicate on April 1. It Is learned from parties in- terested in the sale that every paper and pulp maker on Fox river, with two exceptions, has signed contract giving options on all mills, machinery, water rights, leases and other properties The option is good for six months from October l.
 The two firms who have not yet 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-nine paper and twen- ty.onc pulp mills, situated at Neenah, Mcnaha, Appleton, Kimberly, Little Chute, kankauna, Combined Locks and Depere, along Fox river for distance of twenty-five miles. The value of these plants is estimated at Sto, ,O0O,- GOO. The daily product, when run to their normal capacity, amounts to l,"0o miles of paper in sheet seventy SIX inches wide, and 300 tons of pulp The value of the product is about S50,- 900 daily. The terms of the options provide that the value of the plants be rcckoned 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 iu 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 fnan- ciers of London. The project has been on foot several weeks. When first made public it met with consid- erable opposition. It 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- tcrworth to be acting for a 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. It 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 &. 0oo, 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 g1eateat change will be in the clerical departments. An office will be established at G icago 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 cnt 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 nlacencV.