The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1898-12-28
FOR FREE PAPER
And FREE PULP
Newspaper Publishers Submit Argument
In Their Favor
TO JOINT HIGH COMMISSION
The Present Tariff Shown to be Need
leSSly EXOFbitant.
TO JOINT HIGH COMMISSION
AMERICAN PAPER MANUFACTURERS
Need No Protection from the Competi-
ton of Outsiders Can Make the
Product Cheaper Than is
Done Elsewhere.

Washington, December 27.-The American
Newspaper Publishers association has pre-
scented the Anglo-American joint high COM
missioners a carefully prepared argument
in favor of free paper and free pulp. The
following is a syllabus of the argument:
The directors of the American Newspaper
Publishers association, representing 157
daily newspapers in the United States and
representing the bulk of the total con-
sumption of print paper are in favor of
free paper and free pulp. The tariff OF
Sc per ton on print paper is needlessly ex
orbitant and we believe that the rate of
$1.67 per ton for mechanically ground wood
or pulp is excessive; that the american
paper manufacturers need no protection be-
cause they can manufacture paper cheaper
than Is done in any other part of the world
and that they are now supplying the Aus
tralian, japanese and British markets in
competition with Swedish and German
manufacturers that no print paper is 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 importation of mechan-
icallly ground wood pulp was only s41,Si2
last year, so that no serious question of
national economy justiiies opposition to free
pulp and free paper.
Reason of Proximity
The American manufacturers are pro-
tected to the extent of SLIGO per ton by rea-
son of their proximity to their customers.
The difference in the cost of transportation
to market is Their great guarantee of Sc
curity 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 Can
adam forests.
In January, 1898, all the big and profit
able paper mills with few unimportant ex-
ceptions, were merged into the 1nterna-
tional combination, which absorbed twenty
four mills, producing about so per cent of
the entire American output. The corpora
ton of the trust was capitalized upon a
basis of s55, 900 000
The pretext given for the organization of
the trust was the inability of the mills to
make paper at prevailing prices-that bank
ruptcy stared them in the face.
This combination really formed to
protect the proprietors whose mills were in
poor localities or on streams that were run
ming dry. Every mill owner who entered
that trust invited withdrawal of govern
ment favor Excessive and improper prices
were paid for many mills that We're locat-
ed on exhausted water courses and that
were Tributary to denudcd timber tracts;
for mills that at periods OF the year have
an insufficient supply of water, who are
under water, for mills that are inferior
and worthless in machinery equipment and
construction for mills that must pay OK
cessive rental for water power; for mills
that do not own or control wood lands; for |
mills that have neither pulp grinding at
tachments nor sulphite pulp auxiliaries.
Cost of the Power
Five of the paper mills obtain their power
total ANIMAL of Si9S 600
Two others are run by steam, which makes |
impossible, and five others have |
insufficient power. Four owned no wood |
lands and ten of the mills had no sulphite |
auxiliaries.
Ninety-eight paper ma king machines were |
comprised in the plant of these mills, but |
only 4S of the IS machines were of recent |
construction or of desirable pattern. Not !
one of the mills in all the combination pos
sessed all of the six essentials of cheapest |
and most successful manufacture.
The organizers of the trust frankly adj !
mitted at the outset that its common stock |
investment yet dividend |
of l per cent upon the common stock was |
declared in November, payable December |
81, 1898. This common stock is now selling |
on Wall street at 60. A circular based upon |
Furnished by the officers of |
the International Paper Company, showed |
that in July the trust was making a profit |
of $40 per ton on its output.
The entire output of this corporation rep |
resenting APO tons per day for theoretical |
capacity, could be reproduced by present |
investment of SIS 100000, so that the Amer |
lean consumers of newspapers are forced |
to pay dividends upon an inflated and |
wholly fictitious valuation of at least $780, |
000, 000
Immediately after the organization of the
trust they raised the price of paper wher-
ever possible. In three cases it raised its
price $40 per ton and has averaged an in
crease of IS per ton on its daily output of
/ 400 tons, equalling an increased tax of
81 100 900 per annum upon the newspapers |
of the country, which now pay a total ex-
ceeding $40 100000 per annum for their paper
supply.
Consumption of Pulp Wood
The present consumption of pulp wood
by the pulp and paper mills of the United
States. including Manila, book and writing,
is stated 100000 cords per annum which
requires the entire stripping
of pulp timber on CPS square miles per an
mum.
Our spruce wood supply is limited. We
therefore urge that the commission should
take advantage OF the present opportunity
and Immediately secure sufficient supply
of spruce freed from tariff complications.
The enlightened policy of New York and
other states in protecting forestry should
be encouraged by putting Canadian pulp
and paper on the free list.
Every increase of a quarter cent per
pound in the price of newspaper adds s34,-
600 900 to the value of the trust securities.
The duty on paper stops cheap books and
cheap newspapers. 1t taxes intelligence.
because the newspapers are the peoples
school and their library. All taxes upon
paper are taxes upon reading, upon knowl-
edge, upon the dissemination of informa-
ton, to make newspapers artificially dear
is wantonly to restrict the number of read
ers and SO increase the sum of ignorance
When this is done or proposed, simply to
add to the profits of monopoly the in
jury to public interests becomes a matter
demanding the Intervention of the govern