The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-11
PAPER MILLS IN A BIG POOL.
MEN IN THE COMBINE DENY THAT
PRICES ARE TO DE PUT UP.

A-hACES AXE lU HE POI W.
Economy i'm Manufacture and Dis
tributiOn the END They Claim to
Be Working FOr-EnOrmOus saw
ing in Freight Charges and Rum
ming Expenses Counted On-Thc
Business to BE Conducted on "A Pro
Rata Basis.
New York, Dec. 10.-Conferences of the
principal manufacturers of white paper
used by newspapers have been held in
this city for more than a week past to
consider the formation of a general stock
company to handle the product of the
mills and to act as the general agent for
the allied concerns. These negotiations
eliminated to-day in the practical agree
ment of all concerned to pool their inter
ests and to deal with consumers only
through general agency, which is to
be established in this city. The plan in
! wolves the formation of a national asso-
clatlon capitalized at moderate amount,
| which is to control the product of all
| the mills. By this arrangement the manu-
facturers expect to reduce running ex-
penses, TO reorganize the trade and to
| promote friendlier relations between all
| concerned. They expressly deny that
! prices Will be advanced as a result Of the
! proposed agreement but contend that
they are obliged to follow the example
| Of other men directing other great in
duStrles and cooperate to prevent ruinous
competition.
Thirty companies are interested in the
the movement. They are said to control
| the industry in this country. Among those
interested in the negotiations are
William E. Spier of the Glens
Falls Paper Company, William A.
| Russell of the Fall Mountain Pa
| per Company, H. NJ. Knowles of the Glen
Manufacturing Company, Warner Miller
| OF the Herkimer Paper Company, Hugh j.
! Chisholm Of the Otis Falls Paper Compa-
| ny, William H. Parsons and David Scowles
of the Bowdoin Paper Company, and the
Lisbon Falls Paper Company, G. w.
/ Knowlton, A. d. Remington and G. S.
Sherman of Watertown. representing Wa
| tertown companies; A. p. Agenstetcher of
| the Fall Mountain Paper Company,
| Messrs. Fullerton and Brockelbank of the
Manufacturers Paper Company, w. w.
Brown of the Berlin Falls Paper Company,
j. Fred Webster of the Webster Paper
Company, Garrett Schenck and d. f. EN-
| cry, Jr., of the Rumford Falls Paper Com
pany, and Alvin Record of the Jay Paper
| Company.
Several of the above named gentlemen
attended conferences in this city yester-
day and to-day, and all of them have
been present or represented at previous
consultations held here during the past
| fortnight.
All that now remains to be done is the
agreement to "a general form of contract,
which is now being considered by the at
| torneys.
The proposed joint company will con-
duct its business on pro rata basis This
| will be determined by the extent of the
| previous business done by the allied COM
panies and the capacity of the mills they
| control. No attempt to restrict produc.
ton is contemplated, as the foreign mar
| kets, it isbelieVed will take whatever sup
plies are left over al the end of the year.
| The saving in freight rates. it was said
to-day, will be enormous, and is in Itself
almost sufficient object to warrant such
a movement. The details of the organza-
ton are yet to be decided upon, although
it is probable that the executive officers
| of the new concerns have been selected
All the allied concerns will doubtless be
represented on the board of trustees.
The utmost secrecy has attended these.
negotiations Those prominent in the
movement have refused from time to time
to discuss the plans, or to affirm or deny
the many rumors that have been affoat
One of the manufacturers interested how
ever, said to-day: 1T is true that an agree
ment has been practically arrived at Ne
! gotiations have been carried on with the
idea that the proposed joint company
| should represent all thesmanufacturers or
none We do not intend to advance prices,
but what we are aiming at especially is to
make a material reduction in running ex-
penses This we shall certainly do Pre-
vious efforts in the direction of such pool
ing interests have proved futile, because of
the lack of definite ends in view, and the
! fear that some would not live up to their
contract and thereby gain an unfair ad-
vantage over those in fuller sympathy
with the cooperative movement. We have
profited greatly by this experience, how
ever, and now propose to unite upon such
a basis as will insure complete success.
Newspaper illusions to our conferences
! have been misleading Half truths only
have been given and the public not in
/ formed as to the real motives of those de-
sirous of uniting. The publishers will be
| benefited by the new arrangement almost
/ as much as we. The better papers will
soon notice the change. Quality rather
than quantity will hereafter figure most
prominently in our calculations. How this
policy will affect the penny papers can
not foretell, although it is safe to say
| that poor stock will not be as obtainable,
perhaps. as it was before. Publishers,
doubtless, will get It If they want it; but
/ IL may be made less popular.
1.-The pro rata arrangement has been
adopted, because we believe 1t to be the
| fairest. II obviates the difficulty which
| kept us apart before, and while possess
! ing the advantages of the cooperative
plan. allows the independence which those
i most influential in the trade insist upon.
/ We hope it will work well, and from the
way in which our plan has been received
we believe that it solves the problem
which has been confronting US so long,
uIo, INSURANCE CASE DECIDED.