Evening star., 1898-12-28
FOR FREE PAPER AND FREE PULP
Argument OF the American Newspapers
Publishers' Association.

Argument of the American Newspaper
Publishers' Association.
The American Newspaper Publishers As
sociation has presented to the Anglo Amer
lean joint high commissioners carefully
prepared argument in favor of free paper
and free pulp. The following is a syllabus
of the argument:
The directors of the American Newspa-
per Publishers Association, representing
151 daily newspapers of 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 So
per ton on print paper is prohibitory, and
we believe that the rate of Sl.6I per ton
for mechanically ground wood pulp is ex-
ceSSiVe, that the American paper manu-
facturers need no protection, because they
can manufacture paper cheaper than is
done in any other part of the world and
that they are now supplying the Austria
llan Japanese and British markets in COM
petition with Swedish and German manu-
facturers; that no print paper is brought
into the United States, but that during the
last year the export had averaged over
LOO tons per week, and that The entire
revenue received from the importation OF
mechanically ground wood pulp was only
$41.S42 last year, so that serious ques
ton of national economy could be urged
in opposition to free pulp and free paper.
The American manufacturers are pro-
tected to the extent OF S1tN per ton by
reason of their proximity to their custom
ers. The difference in the cost of trans
portation TO market is their great guaran-
tee of security against Canada or any for
eign country They are also projected by
reason of their ability to obtain cheaper
and more convenient supplies of coal and
chemicals, which, as yet are not obtain
able in the Canadian forests.
In January, 1S9S all the big and profit
able paper mills of the United States. with
few uuimportant exceptions, were merged
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
500. 600, 900.
The pretext given for the organization
of the trust was the inability of mills to
make paper at prevailing prices-that bank
ruptcy stared them in the face.
This combination was really formed to
protect the proprietors whose mills We're
IN poor localities, or on streams that were
running dry. Every mill owner who en-
tered that trust invited a withdrawal Of
government favor. Excessive 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 insufficient supply of water.
or are under water: for mills that are in
ferior and worthless in machinery. equip
ment 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 s196.0o0.
Two others are run by steam, which makes
competition impossible, and five others
have insufficient power. Four owned TO
wood lands and ten of the mills had no
suDhite auxiliaries.
s.Niuatv-eieht M ma kipp machines
were comprised in the plant of these mills,
but only forty-eight of the ninety-eight
machines were of recent construction or
of desirable pattern. Not one of the mills
six essentials of the cheapest and most
successful manufacture
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 December
81. 1898. This common stock is now selling
on Wall street at GO. A circular based
upon information furnished by officers Of
the International Paper Company showed
that in July the trust was making a profit
of so per ton on its output. The entire
output of this corporation, representing
1.42O tons per day for theoretical capacity
could be reproduced by present invest
ment of s15.0Oo0o0. so that the American
consumers of newspapers are forced 10
pay dividends upon an inflated and wholly
fictitious valuation of at least $40 200 Ooo.
Immediately after organization of the
trust 1t raised the price of paper wherever
possible. In three cases it raised its price
so per ton, and has averaged an increase
of s. per ton on its daily output of l. 420
tons. equaling an increased tax of 81 100000
per annum upon the newspapers of the
country, which now pay a total exceeding
s20.00000o per annum for their paper sup
ply.
1.-The present consumption Of pulp wood
by the pulp and paper mills of the United
States, including Manila. book and writing
is stated at 2oeo,609 cords per annum,
which consumption requires the entire
stripping of pulp timber on 625 square
miles per annum.
Our spruce and wood supply is limited.
We therefore urge that the commission
should take advantage of the present op-
portunity and Immediately secure a suffi-
cient supply of spruce freed from tariff
complications.
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 a quarter cent per
pound in the price of newspaper adds s34,-
1000 TO the value of the trust securities.
1.-The duty on paper stops cheap books
and cheap newspapers 1t taxes intefii-
pies school and their library. All taxes
upon paper are taxes upon reading, upon
knowledge, upon the dissemination of in
formation. To make newspapers artificial
ly dear is wantonly to restrict the number
of readers and so increase the sum of ig-
norance. 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