The herald., 1898-09-13
INTERNATIONAL PAPER STOCKS
CLOSELY ANALYZED
GRAVEYARD INSURANCE PLOTS
Merchandise Exports-Northern Pa
cific's Report for July-Man-
haitian Elevated-Real Estate
OFFICE OF THE HERALD,


The Commercial Bulletin of Boston-a
newspaper of standing here-announced
some time ago that 1t was making special
investigation tnto the status of the Inter-
national Paper company stocks, which
have recently been listed upon the New
York stock exchange. In its latest Issue
the Commercial Bulletin says:
We have been looking into the affairs Of
the International Paper company, whose
securities recently appeared on the New
York stock exchange. The appearance Of
these securities was accompanied by the
most fulsome praise in certain Wall street
papers; in fact. had the horn been blown
less loudly the same degree of suspicion
would not have been excited. The Inter-
national Paper company of New York was
incorporated January /. 1898. 1t at once
took over by purchase twenty-five Of the
principal pulp and paper mills Of the coun-
try, which produce from rs to 30 per cent
of all the newspaper manufactured east
Of Chicago. The average daily output of
these mills 10:
Tons
Ground wood nu,n Per Pax; ? AZ
Sulphte pulp .................".... 256
Finished paper, nearly. ,o0O
The company has authorized the follow
ing named securities, the large majority of
which have been used in payment OF the
mills, water power and wood lands ac-
quired by the new corporations:
First consolidated mortgage 8 per
cent gold bonds, dated Feb. /,
running twenty years, interest
payable half yearly, (Feb. and
Preferred stock cumulative 6 per
cent, payable quarterly.......... % 900 900
Common stock ...........:.......;... 20 900, 600
The property securing abovs-namer
bonds Is appraised at $40 0O0,O0
Paper men here evince by their remarks
hat they do not consider the common stock
a meritorious investment, although ma
nipulation may send the shares a great deal
higher. Fault is found with the trust be-
cause the various manufacturers have not
been obliged 10 pledge themselves not to
build new factories Within given period,
say five years, and that a similar agree
ment 10 pool the stock was not entered
upon. Even now there are well-defined
rumors that Messrs. Schenck and Webster
both intend soon to erect new plants. Mr..
Scherck was until recently a director in the
trust. While he Is planning fresh COM
petition he is reported as saying that In
ternational Paper common stock would
sell at very much higher prices. This re-
minds one Of the tactics Of the late Mr..
Banigan of the rubber trust. While he
latter was talking high prices for rubber
stock he was selling out and getting ready
to build an independent factory.
The trust is now getting cents per pound
for it's paper, the price having been ad-
vanced to this figure by consolidation. 1t
Is admitted that the company possesses an
asset of great value in its large ownership
Of timber lands. some 400 900 acres. Spruce
Is getting scarcer and advancing each year,
and 1t is claimed that this large ownership
of timber lands gives the trust sure grip
on the bustnees in the future. Neverthe-
less, paper men here say that competition
Is certain to increase and that firm price
OF cents per pound for paper is certain
to attract such competition.
At 2 cents per pound the earnings of the
company figure very handsomely for the
common stock, but some time must elapse
before an accurate estimate can be made
OF the enduring character Of the present
Income. The common stock is largely
water" but the same may be said af
nearly all the common stock of industrial
companies. The preferred is undoubtedly
reasonably sure to pay per cent dividends,
but there are a good many uncertainties
in connection with the common which will
require time to clear dnto certainties.-N.
Y. Times.