The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-12-28
PLEA MADE FOR FREE PAPER.
TRUST PROTECTED by PROXIMITY
TO THE CUSTOMERS.

American Consumers Forced TO Ray
Dividends ON an Enormously In
hatcd Capitnl-lncrease of "a QUAR-
ter of n Cent IA Pound Means SAL
OeOOOO Added 20 the Value of the
Trust Securities-JoiRt High Conn
mission Appealed to.
Washington, Dec. 27.-The American
Newspaper Publishers Association has pre-
sented to the Anglo-Amercan Joint High
Commissioners a carefully prepared argu-
ment in favor of free paper and free pulp.
The following is syllabus of the argu-
ment;
The directors of the American Newspa-
pers Publishers Association, representing
157 daily newspapers of the United States,
ana representing the bulk of the total con-
sumption of print paper, are in favor Of
free paper and free pulp,
The tariff of S6 per ton on print paper
is prohibitory, and we believe that the
rate of $1.67 per ton for mechanically
ground wood pulp is excessive; that the
American paper manufacturers need no
protection because they can manufacture
paper cheaper than is done in any other
part of the world and they are now supply
ing the Australian, japanese and British
markets in competition with Swedish and
German manufacturers; that no paper is
! brought into the United States but dur
ing the last year, the export had aver
aged over 1000 tons per week, and that
the entire revenue received from the i'm
portation of mechanically ground wood
pulp was only SAL ,S42 last year, so that no
serious question of national economy could
be urged in opposition 10 free pulp and
free paper.
Have Cheap Transportation.
The American manufacturers are pro-
tected to the extent Of $1.6O 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 obtalnable in Cana
| dian forests.
In January 1885 alr the big and profit
able paper mills of the United States, with
! a few unimportant exceptions, were merg-
ed into the International Paper Company
combination that absorbed twenty-four
mills, producing about 50 per cent Of the
entire American output. This corporation
or trust, was capitalized upon a basis OF
$55.0OO,OO0.
The pretext given for the organization
of the trust was the inability Of mills to
make paper at prevailing prlces-that
bankruptcy stared them in the face
Trust Bought the Mills.
This combination was really formed TO
protect the propretors whose mills We're
in poor localities, or on streams that were
running dry. Every mill owner who en-
tered that trust invited withdrawal Of
government favor Excessive and inn
proper prices were paid for many mills
that were located on an exhausted water
course and that were tributary 20 denud-
ed timber tracts; for mills that at periods
of the year have an insufficient supply
of water, or are under water; for mills
that are inferior and worthless In machn-
cry, equipment and construction; for mills
that must pay excessive rental for water
power; for mills that do not own or con-
troll wood lands; for mills that have neith-
er pulp grinding attachments nor sulphite
pulp auXiliaries.
1.-The organizers of the trust frankly ad-
mitted at the outset that its common stock
| represented no investment, yet a dividend
OF l per cent. on the common stock was
declared in November, payable Dec. 81,
1898. This common stock Is now selling
on Wall street al 60.
Making Enormous Profits.
"A circular based upon information fur
nished by officers of the International Pa
per Company showed that in July the trust
was making a profit OF $40 per ton on its
output The entire output of this corpora
ton representing 1920 tons per day for
theoretical capacity, could be reproduced
by present investment Of $1,000 600 so
that the American consumers of newspa-
pers are forced 10 pay dividends upon an
inflated and wholly fictitious valuation of
at least $4,000 600.
Immediately after the organization of
the trust it raised the price OF paper wher-
ever possible. In three cases il raised It's
price $40 per ton, and has averabed an
increase of s. per ton on its daily output
Of 1i20 tons, equalling an increased tax
Of 81 10000 per annum upon the news
papers of the county, which now pay a
total exceeding $4,000 go per annum for
their paper supply
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-cent peH.
pound in the price of newspaper adds A.
100000 to the valuation of the trust securi.
ties"