Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-12-28
AMERICAN NEWSPAPERS FIGHTING
THE PAPER TRUST.
WANT IMPORT DUTY REMOVED
SAY PRESENT DUTY is PROHIBIT
DRY AND UNwARRANTED.
Trust Needs No Protection-Commo
stock of the Trust Paying Dt,i-
dends. Although 1t Is Moth
ing but "Wnter"-Papcr
should he Cheap.

WASHINGTON. Dec. 2..-Tha American
Newspaper Publishers Association has
presented TO the Anglo-Amercan joint high
commissioners a carefully prepared argu-
ment in favor OF free paper and free pulp.
The following is u syllabus OF the argu-
ment:
The directors Of the American News
paper Publishers Association, representing
15I daily newspapers OF the United States,
and representing the bulk of the total
consumption of print paper, are in favor of
free paper and free pulp. The tariff of 81
per ton ON print paper is prohibitory. and
We believe that the rate Of 81 per ton
tor mechanically ground wood pulp is eX-
cessive; that the American paper manu-
facturers need no protection because they
can manufacture paper cheaper than Is
done in any other part of the world, and
that they are now supplying the Australian.
japanese and British markets in competi-
ton with Swedish and German manuIdCl-
urers; that no print paper Is brought into
the United States. but that. during the
last year, the export has averaged over
l,"c tons per week, and that the entire rev
enue received from the importation OF Inc
chanically ground wood pulp was only
S4l.si2 last year. so that no serious question
of national economy could be urged in op-
The American manufacturers are pro-
tected to the extent of sl.60 per ton by rea-
son of their proximity to their customers
The difference in the cost OF transportation
10 market Is their great guarantee Of se-
ourity against Canada or any foreign coun-
try. They are also protected by reason of
their ability to obtain cheaper and more
convenient supplies of coal and chemicals
which. as Yet. are not obtainable in the
Canadian forests.
In January. 1883, all the big and profit
able paper mills of the United States. with
a Few unimportant exceptions. were merged
INTO the International Paper Company. a
combination that absorbed twenty-four
mills producing about 50 per cent of the
Or trust. was capitalized upon basis of
S9"Vp,r" The preteXt given Tor the orgau-
ization OF the trust was the inability of the
mills 10 make paper at prevailing prices
that bankruptcy stared them in the face
This combination was really formed to
protect the proprietorS whose mills Were
IN poor localities or on streams that Were
running dry. Every mill owner who en-
tered that trust invited a withdrawal of
government favor. Excessive and improp-
er prices We're paid for many mills that
We're located on exhausted watercourses
and that were tributary to denuded timber
tracts tor mills that at periods of the year
have an insufficient supply Of water or
are under water: for mills that are in
ferior and worthless in machinery equip
ment and construction; for mills that must
mills that do not own or control wood
! lands: for mills that have neither pulp
grinding attachments nor sulphite pulp
Five of the paper mills obtain their
power at a total annual cost OF $4,000 per
annum. Two others are run by steam.
five others have insufficient power. Four
owned no woodlands and ten OF the mills
had no sulphite auxiliaries:
'Ninety-eight papermakiug machines
y he a of mill
but only forty-eight OF the ninety-eight
machines were of recent construction or OF
in all the combination possessed all of the
six essentials OF the cheapest and most
successful manufacture.
'Organizers of the trust frankly admitted
at the outset that its common stock repre-
Sented no investment. yet dividend of !
per cent on the common stock was declar-
ed in November. payable December 81, lsSs;
| This common stock is now selling on Wall
street at %. a circular based upon infor-
nation, furnished by officers of the In
ternational Paper Company. showed that
so ton on its output.
The entire output of this corporation,
representing l,42e tons per day. for theoreii-
present investment OF sl5,u0J,0J0 SO that
the American consumers of newspapers are
forced to pay dividends upon an inflated
and wholly fictitious valuation OF at least
SO 0.IdJo.
Immediately after the organization of
the trust. II raised the price OF paper
wherever possible. In three cases it raised
the price 80 per ton. and has averaged an
increase of 50 per ton on its daily output of
l. 420 tons, equalinG an increased tax OF
s. .l30 60O per anrum upon the newspapers
of the country which now pay total eX-
ceeding s20.O0o|oJ per annum for their pa
per supply.
The present consumption of pulp wood
, by the pulp and paper mills of the United
States, including Manila. book and writ
ing is stated at 2,OI1.old cords per annum.
which consumption requires the entire
stripping of pulp timber on SO square miles
per anrum. our spruce WOOD supply Is
limited. We. therefore. urge that the COM
mission should take advantage of the pres
ent opportunity and Immediately secure a
sufficient supply OF spruce freed from tar
if complications. The enlightened policy
of New York and other states in protect
ing forests should be encouraged by put
ting Canadian pulp and paper OIL the free
list.
Every increase of a quarter cent per
pound in the price of news paper adds S3i,-
60.GJ TO the value of the trust securities.
The duty on paper stops cheap books
and cheap newspapers. 1t taxes inteilt-
gence because the newspapers are the peo-
pies school and their library. All taxes
upon paper are taxes upon reading. upon
knowledge. upon the dissemination OF in
formation. To make newspapers arti-
fcially dear * wantonly to restrict the
number of readers and so increase the sum
of ignorance. When this Is done or pro-
posed simply TO add to the. profits of n