The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-12-28
Exhibits the International
Paper Co. in Its True Light
IN A COMMUNICATION
To the AngIO-American Joint
High Commission.
Asks That Protective Tariff on
Paper and Pulp Come Off.

high commissioners, a carefully pre-
pared argument in favor of free paper
and free pulp. The following Is a sylla-
bus Of the argument:
The directors of the American News
paper Publishers association. represent
ing 157 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 Sc per ton on print paper
is prohibitory, and we believe the rate
of 81. 81 per ton for mechanically ground
wood pulp is excessive; that the Ameri-
can paper manufacturers need no pro-
lection, because they can manufacture
paper cheaper than is done in any other
part of the world, and that they are
now supplying the Australian Japa-
nese and British markets in competl-
ton with Swedish and German manu-
facturers; that no print paper Is
brought into 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 mechanically ground
wood pulp was only $41,S 42 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 pro-
tected to the extent of S1.6O per ton by
reason of their proximity to their Gus
toners. The difference in the cost of
anSpOrtatiOn to market is their guar
antee of security against Canada or
any foreign country. 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 Canad-
In January 1898. all the big and
a. Init n
States with a few unimpOrtant eXcep-
tions, were merged into the Internation-
al Paper company, a combination that
absorbed "a mills, producing about 80
per cent of the entire American output.
This corporation, or trust, was cap
italized upon a basis of fifty millions.
The pretext given for the organizations
of the trust was the inability or nllIlS
to make paper at prevailing prices
that bankruptcy stared them an 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 entered that trust invited
withdrawal of government favor. Ex-
cesslVe and improper prices were paid
for many mills that were located on
exhausted water courses and that were
tributary to denuded 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 machinery equipment
and construction; for mills that must
pay excessive rental for water power;
for mills that do not own or control
wood lands; for mills that have neither
pulp grinding attachments nor sulphite
pulp auxiliaries.
Five of the paper mills obtain their
power at a total annual cost of 1886 900
per annum. Two others are run by
steam. which makes competition i'm
possible, and five others have INSULT
cient power. Four owned no wood lands
and ten of the mills had no Sulphlte
auXiliarieS.
Two hundred and ninety-eight paper
making machines were comprised in the
plants of these mills but only 48 of the
29S machines were of recent cOnStruc-
ton or of desirable pattern Not one of
the mills in all the combination possess
ed all of the six essentials of the cheap
est and most successful manufacture.
Organizers of the trust frankly ad-
mitted at the outset, that its common
stock represented no investment, yet
dividend of one per cent on the common
stock was declared in November, pay
able Dec. 81, 1898. This common stock
is now selling on Wall street at so. A
circular based upon information, fur
nished by officers of the International
Paper company, showed that in July
the business was making a profit of $40
a ton on it's output.
The entire output of this corporation,
representing 1920 tons per day of theo-
| retical capacity, could be reproduced by
| a present investment of SIS, 100000, so
| that the American consumers of news
papers are forced to pay dividends upon
| an inflated and wholly fictitious valu-
| alton of at least $40,000,000
| Immediately after the organization of
| the trust it raised the price of paper
| wherever possible. In three cases it
| raised its price SO per ton, and has
| averaged an increase of IS per ton on its
| daily output of ], APO tons, equalling an
| increased tax of 81 100, 600 per annum up
| on the newspapers of the country,
1 which now pay total exceeding $780,
/ 100000 per annum for their paper sup
ply.
| The present consumption Of pulp
| wood by the pulp and paper mills of
| the United States, including manila
book and writing, Is stated at 100000
| cords per annum, which consumption
| requires the entire stripping of pulp
| timber on 625 square miles per annum.
Our spruce wood supply is limited.
| We therefore urge that the commission
| should take advantage of the present
| opportunity and Immediately secure a
sufficient supply of spruce freed from
| tariff complications.
| The enlightened policy of New York
and other states in protecting forests
| should be encouraged by putting Can
adam pulp and paper on the free list
| Every increase of a quarter cent per
| pound in the price of newspaper adds
| $34,000,00O to the value of the trust Sc
| curities.
The duty on paper stops cheap books
| and cheap newspa pers. It taxes intelIi-
| gence because the newspapers are the
| peoples school and their library. All
| taxes upon paper are taxes upon read
| ing, upon knowledge. upon the dissent
| nation of information. To make news
| papers artificially dear is wantonly to
| restrict the number of readers and so
| increase 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 a, matter
demanding the intervention of the gov
/ eminent