Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-12-28
|F0R FREE PAPER.
Argunentof American Newspaper
Publishers Association
ALSO FOR FREE PULP.
Representations Made 10 the Cana
dian Commission.
THE INTERNATIONAL PAPER CO.
How 1t Absorbed Practically All
of the Big and Profitable Paper
Mills I'm the Country>-yts wstsns
ed Stock.
THE INTERNATIONAL PAPER CO.
ed Stock.

WASHINGTON. d. c.. December H.
The American Newspaper Publishers As
sociation has presented TO tho Anglo
American joint high commissioners q
carefully prepared argument in favor OF
free paper and free pulp. The following
is a syllabus Of the argument:
The directors Of the American News
paper Publishers Association, represent
ing l57 daily newspapers of .ha UmteA
States, and representing the bulk Of the
total consumption OF printing paper, ara
I'm favor of free paper and free pulp. The
tariff of Sc per ton on printing paper is
prohbltory, and we believe that the rate
Of $l.67 per ton for mechanically ground
wood-pulp IS excessive; that the American
newspapers need no protection, because
they can manufacture paper cheaper than
1t is done in any other part of the world.
and are now supplying the Australian.
japanese, and British markets In com-
petition with Swedish and German manu-
facturers; that no printing paper Is
brought into the United States, but that
during the last year the export has ave.
ragged over 1,0O0 tons per week, and that the
entire revenue received from the impor-
tation OF acknowledgement wood-pulp
was only 81, ,Sl2 last year. SO that no such
question of national economy could bs
urged in opposition to free pulp and free
paper.
The American manufacturers are pro-
tected to the extent Of 81 per ton by
reason OF their proximity to their GUS
toners The difference in the cost oe
transportation to market Is their guar
antee Of security against Canada or any
foreign country. They are also protected
by reason az their ability to obtain
cheaper and more convenient supplies OF
coal and chemicals, which are not OBJ
tainable in the Canadian forests.
ORGANIZATION OF TRUST.
In January. 1886, all the big and prohta-
Bile paper-mills OF the United States, with
a few unimportant exceptions, were
merged into the international Paper Com
pany, combination that absorbed
twenty-fOur mills, producing about "
per cent of the entire American output.
This corporation, or trust WAS capitalized
upon basis of $50 o00,OO0
The pretext given for the Organization
OF the trust was the inability Of mills to
bankruptcy stared them in the face.
The combination was really formed TO
protect the proprietors whose mills We're
In poor localities, or on streams that were
running dry. Every mil-owner who en-
tered that trust invited a withdrawal OF
government favor. Excessive and i'm
proper prices were paid for many mills
that were located on exhausted water
courses and that were tributary 10 de-
nuded timber tracts, for mills that at
periods of the year have an Insufficient
supply of water. or are under water: Tor
mills that are inferior and worthless in
machinery, equipment, and contents: for
mills that must pay excessive rental for
water-pOwer; for mills that do not own
or control woodlands; for mills that havo
neither pulp-grinding attachments nor
sulphite pulp auxlliaries.
DIVIDENDS ON WATER.
The organizers of the trust frankly adj
mitted at the outset that its common
stock represented no Investment, yet "a
dividend OF / per cent. on the common
stock was declared I'm November. payable
December 81 1898. This compon stock
Is now selling on Wall street at %. \
circular, based upon information furnished
by officers Of the International Paper
Company. showed that I'm July the trust
was making a profit OF SO per ION on its
output. The entire output, representing
1.l40 tons per day for theoretical capacity,
could be reproduced by a present invest.
ment or sl5 10000. so that the American
consumers OF newspaper are forced TO
pay dividends upon an inflated ord wholly
fictitious valuation Of at least 3IO.OOO00o.
INCREASE OF PRICES
Immediately after the organization OF
the trust It raised the price of paper
wherever possible. In three cases II raised
its price $40 per ton, and has averaged
an Increase OF s. per ton on It's daily out
put OF l.l+0 tons, equalling an increased
tax OF s.. 10000 per annum upoa the news
papers of the country. which now pay n
total exceeding S20oOooo per spnum for
their paper supply.
The enlightened policy Of New York and
other States in protecting forests should
be encourageds by putting Canadian pulp
and paper on the free list.
Every increase Of a quarter Of cent
per pound in the price of newspaper adds
s34,GO000o TO the valuation OF the trust
securities.