The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-28
PAPER TRUST SCORED
DENOUNCED BY THE AMERICAN PUB
LISTERS ASSOCIATION.
Free Paper and Free Pulp Demanded
by 49, Daily Newspapers-A Tax
ON Intelligence.

WASHINGTON, Dec 27.-The American
Newspaper Publishers Association has pre-
scented to the Anglo-American joint high
commissioners a carefully prepared argu-
ment in favor of free paper and free pulp.
Following is a syllabus of the argument:
The directors of the American Newspa-
per Publishers Association, representing ISL
daily newspapers of the United States, and
representing the bulk of the total consump
ton of print paper, are III favor of free pa
per and free pup. The tariff of So per ton
on print paper Is prohibitory, and we be-
live that the rate of $1.67 per ton for me-
chemically ground wood pulp is excessive;
that the American paper manufacturers
facture paper cheaper than is done in any
other part of the world, and that they are
now supplying the Australian, Japanese ana
British markets in competition with Swedish
and German manufacturers; that no print
paper is bought in the United States, but
that during the last year the export has
averaged over 1000 tons per week, and that
the entire revenue received from the inn
portation of mechanically ground wood pulp
was only ,S42 last year, so that no serious
question of national economy could be urged
in opposition to free pulp and free paper;
The American manufacturers are projected
to the extent of SLIGO per ton Dy reason OF
their proximity to their customers. Inc
difference in the cost of transportation TO
market is their great guarantee of security
against Canada or any foreign country.
They are also protected by reason OF their
ability to obtain cheaper and more conVe-
as yet, are not obtainable in the Canadian
forests
IN January, 1898, about all the big and
profitable paper mills of the United States,
with a few unimportant exceptions, were
merged into the International Paper COM
pany, a combination that absorbed twenty.
four mills. producing about 50 per cent. or
the entire American output. This corpora
ton, or trust, was capitalized upon a oasis
of 100000. The preteXt given Tor the or
ganization of the trust was the inability or
mills to make paper at prevailing prices
that bankruptcy stared them in the race.
This combination was really formed TO pro- pro-
tect the propretors whose mills were in poor
localities, or on streams that were running
dry Every mill owner who entered that
trust invited withdrawal OF governi u, EN-
favor. Excessive and improper prices were
paid for many mills that were located on eX-
hausted water courses and that were trnp-
utary to denuded timber tracts; Tor nllls
that at periods of the year have an lnSut-
ficient supply of water, or are under water,
for mills that are inferior ana worthless IN
machinery. equipment and construction,
for mills that must pay excessive rentals Tor
water power; for mills that do not own OF
control woodlands; for mills that h sS,
neither pulp-grinding attachments nor sui
phite pulp auXiliaries. Five or the paper
mills obtain their power at q total anhudl
cost Of $4,000 per annun Two ononetitdon
impossible. and five others nave lnsuInclenI
power Four owned no woodlands, ana Ten
Of the mills had no suipn1 1ecb aGess We're
comprised in the plant of these mllls, Out
only forty-eight of the ninety-elght ma
chimes were of recent construction or or ueI
sirabIe nattern Not one of the mills in all
the combination possessed all OF the SIX es-
sentials of the cheapest and most successful
manufacture.
The organizers of the trust frankly adj
r,itted at the outset that its common stock
represented no investment. yet dlvluenu
of / per cent upon the common stoch N WoS
declared in November, payable Dec. d. 1880;
This common stock is now selling on wan
street at co. circular based upon lnIor-
scI,o off n
tional Paper Company showed that IN july
the trust was making profit OF $lO per ioll
on it's output. The entire output OF TINS
CORPORATION. representing 1,420 tons per DAY
for theoretical capacity, could be repro
duced by a present investment or $l3,VOOVU'
SO that the American consumers of news
naners are forced to pay dividends on an
inflated end wholly fictitious valuation OF at
least $4e.C0C,OCN
Immediately after the organization On on
the trust it raised the price OF paper
wherever possible. In three cases IL raised
its price $40 per ton and has averaged an
increase of IS per ton on its daily output Oh
420 tons euualng an increased tax OF
80 100 COO per annum on the newspapers or
the country. which now pay total exceed
ing 20,000,OOO per annum Tor thelr paper sup
ply, oo..,,,,,.,o, of min wood nv
the pulp and paper mills of the United
States, including manila book ana Wrltlng.
is stated at 100000 cords per annum, Whlcn
consumption requires the entire strlpplns
of pulp timber on 625 square miles per an
num- Our spruce wood supply is limited.
We therefore urge that the commission
should take advantage OF the present OBJ
portunity and Immediately secure suf1-
cient supply of spruce freed from tariff
complications. The enlightened policy OF
New York and other States in protecting
forests should be encouraged by putting
Canadian pulp and paper on the free list
every increase of quarter ut per
pound in the price of news paper s 54,-
600 GOO to the value of the trust titles
The duty on paper stops cheap and
cheap newspapers. 1t taxes intelllge ce. be-
cause the newspapers are the peoples school
and their library. All taxes upon paper are
taxes upon reading, upon knowledge, upon
the dissemination of information. TO make
newspaper artifcially dear is wantonly to
restrict the number of readers and so in
crease the sum of ignorance. When this is
done or proposed, simply to add to the
profits of a monopoly. the injury to public
interests becomes matter demanding the
Intervention of the government.