The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-11-12
EXPORT OF STRAWBOARD
AMERICAN TRUST DECIDES TO
BEARD THE GERMAN MAKERS.
All Mills to Close Down for a
Week-The TVventy-DOlInr-
alton Basis.

The board of directors of the American
Strawboard Manufacturers Association
yesterday held the first meeting since its
final organization in this city. A session
was held in the afternoon at the headQuar-
ters of the association. in the Stevenson
building, and the meeting was continued in
the evening at the Grand Hotel. The pur-
pose was to fix rules for the regulation of
production and arrange to push the export
trade.
1t was decided to shut down all the mills
controlled by the association for one week,
beginning next Monday, in order to reduce
stocks and give those mills out of orders
an opportunity to get business. 1t is not the
intention to boost prices by this shut down.
When the association was first organized
prices were reduced to the basis of $40
ton, and it is the intention to keep them
there. This is the price delivered in the
central West, with Eastern prices based
upon this and the difference in freight
rates, or $40 at the mill for long-distance
shipments Discounts for cash are given
that make the price about SIT at the mill.
The other action taken was the appoint
ment of an export committee, composed of
w. H. Binnian, Crawford Fairbanks and c.
w. Bell. Mr.. Bell will be established in
London to look after the European market
for American strawboard, and the members
of the association believe they can success
fully compete with the German manufac-
turers, particularly in the English and
Frer> n markets. Neither England nor
France manufactures any strawboard to
speak Of and it is maintained that the Ger
man board is much inferior to the American
product.
The officers of the association make the
paradoXical assertion that the association
was formed mainly for the purpose of low
ering prices of the product. The statement
does not seem SO strange when the history
of the trade and it's present condition is
considered. The industry in its present
proportions is comparatively new, not that
strawboard is new invention, but that
during recent years new processes of man
ufacture and a rapidly widening field of
consumption have brought about entirely
new conditions Indiana is now the center
and the leader Of the industry, and yet be-
fore the advent of natural gas there was
| practically no strawbord manufactured in
this State, and the total product of the
United States was but 80 tons day. Now
| Indiana has a large number of mills, and
| the total capacity of all the mills is $50
| tons a day. There have been many COM
| board Association, away back in the
| eighties, put the price up to an abnormal
| figure and collapsed. The American Straw
| board Company was organized in 1885 and
| bought up all the mills. Prices were kept
| at high notch, and capital sought the
! field to such an extent that there are as
1 many mills now outside the American Com
pany there are in it, and for some years
! past there have been big fluctuations in
prices and much uncertainty. A year and
| half ago Mr.. Swinnerton, vice president
| of the American Company, organized the
| Standard on the trust plan. The American
and all the Independent mills were taken
| in, prices and output were regulated and
| all orders were sent to trust headquarters
and there distributed among the mills. The
| Standard forced up prices to $33 ton and
| thereby invited competition in the shape
| of new mills and discouraged consumption.
I 1t went to the wall
THE MILLS IN THE TRUST.
Finally the manufacturers realized that
| economic axiom that the wise monopoly
| is the one that fixes its price at a point
| that will afford a safe and steady profit,
not high enough to either invite more
| capital into the field or discourage con-
| sumption. With this notion they organized
this association, taking in the following
mills: