The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-08
PAPER TRUST CONSPIRACY.
Watered sslndustrfaIr Pre-
pairing for Credulous Investors.
New York Herald

New YORK Herald
The chief makers of newspa2er printing
understanding about nine hundred tons
of paper a day, and owning plants, the
combined value of which Is estimated at
less than 400 900. nave formed a trust
capitalized at So. 0 .ooo.
First of all. Ii is IN attempt TO levy a
tax upon knowledge. It proposes to raise
the price of paper to ~ cents a pound.
where L 60-100 cent Is enough TO afford an
extravagant profit.
over 100 tons Of paper a day. The pro-
posed addition to price amounts 70 a tax
Of H1,eO daily upon knowiedse' OF an an
nual tax Of over $500 600.
The scheme is. secondly. one designed to
induce investors to pay enormously Tor
oSoidoc pro IL propG 5sss So SO. S ssS,ss' would "a COM
pletely replace. That is TO say. IL is an
attempt to get from investors x5 for SO
worth of property. and thus TO secure va
Moreover, some OF the properties involved
are nearly worthless for competitive pur-
poses. Some OF them represent mills 80
badly placed as to be no longer prontable-
Some represent Anticipated machinery no
longer capable OF profitable use. some are
mills operated partly by steam power. cost
ing too much for profit. Many or them are
bought at three and a half times their NOM
inaf value simply, to get ria OF their compe-
trust is formed. That is to say, the In
vestors are expected TO pay S5.UD.ogo TOT
properties nominally worth slo.ooo.oeo. but In
The total output of the mills included in
the trust could be produced on paper ma
shlpe: I, q 800 5e osI la Tne o wster-p oosttrs rights h1s for
nine hundred tons OF paper per day, to-
gether with land. timber. rights. pulp mills.
had for S, 60O,O 900 or less. Paper could be
produced by such mills at IA cents a pound
and delivered in New York or other cities
profit of $500. or an annual net revenue
of sl,S0O,000. 1t would be a profit OF more
than IS per cent. on investment after al
lowing for depreciation. insurance and IN
WHY should the people be expected. or
why should they submit TO pay an enormous
tribute in excess OF this great prontE
Every dollar OF capitalization in excess
of ten millions represents water IN Inc
stock. lax methods Of business or ANTIQUITY
of machinery. The investors who subscribe
for the new trust stock viii pay heavhy
for all these worthless things. How are
they to get their money back! How are
they to get the people OF the country 10
pay them in tribute sufficient TO render
their SIS, 100000 of investment prohtable?
They have no monopoly upon paper-mak-
ing machinery and they cannot secure SUCH
monopoly. Anybody who chooses may buy
the most improved machines and set up q
MONOPOLY upon the wood from which pulp
is ground. In Canada the woods are FUR
of available materials. and there Is EXHAUST
less water power there And there Is ser
tainly no reason TO. suppose that Congress
will refuse TO repeal the protective duties
on pulp and paper when the trust snal
begin to levy it's tribute on knowledge
Yet sensible men are asked 10 go into this
scheme, paying $3.50 for every dollar or
even nominal value. in the expectation tnat
the people will submit 10 an extortion
great enough to make the investment proht-
able.
How foolish such expectation is a few
simple figures will show A newspaper
using only five tons OF daily would
be required, under the trust programme,
above the legitimate cost OF its paper a
newspaper using fifty tons daily could build
a mill of its own for less than the black
mail exacted of II for a single year.
II is conceivable that even with the ald
of a Stock Exchange listing investors VIII
bite at this undated hook?