Omaha daily bee., 1899-02-08
INFLATED PAPER rursT.
millions Mruug from the People ON
wntcrcd Capital.
sprlngneld CMassD Republican.

Springfield lMass) Republican,.
The pulp paper trust is hedged behind a
tariff which admits pulp woods free OF duty.
and rules out pulp and paper under heavy
taxes for the protection OF the monopoly.
This concern and its tariff for monopoly
profit constitute today one Of the chief obsta-
cles to an agreement between the Canadian
and United States Joint commi ssioners for
better trade with our neighbors on the north
and better understanding generally in all
matters at issue between them. 1t is further
more standing in the way of changes which
will check the destruction of the forests, the
stripping of the hill and mountain sides and
the consequent injury to the water. power
Of manufacturing New England and other
sections and the proper distribution of
moisture through the seasons,
Among all the inflated trusts OF the day
this is one OF the most inflated. Its total
nominal capital Is $50. 900 OOO-$2O 900, 600 of
common stock, $2j.OOOO 600 of preferred stock
which must be paid 6 per cent annually be-
fore the common gets anything, and 10000
600 per cent gold bonds II is not pre-
tended, we understand. that the common
| stock represents anything but a bonus TO the
original subscribers. Nevertheless II Is now
being offered to the dear public at a current
quoted price of about $65 share of 500
But after excluding the common stock the
trust is still very generously capitalized.
This will appear from the fact to which the
New York journal of Commerce calls atten-
tion, that paper mill of sixty tons daily
capacity is to be built in Wisconsin at a cost
of 100000. An honest capitalization of
$50 600, 600 (stll excluding the common stock
OF the paper trusO would on this basis repre-
sent mills having a daily capacity of at lea st
1900 tons daily, and yet the paper trust has
daily output of hardly 500 tons of fin
ished paper. Presumably the actual capacity
OF all the mills in the trust is considerably
larger than this figure, because one of the
objects of the trust was to restrict produc-
ton which is effected by closing up or giving
light employment to the mills OF older ma
chinery and less advantageous locations.
In any event it would appear that the
preferred stock and bonds of the trust rep
| resent twice as large an amount as the
mills could be duplicated for with up-to-
date machinery, and with the common stock
the Initiation becomes enormous. Mills were
thrown into the pool at practically their own
valuation. Mills which had not earned a
dividend in years went in at swollen figures
along with mills that had paid we'll. Mills
with antiquated and worn-out machinery
joined hands in the broad currents Of the
trust with mills of modern equipment; and
one mill having machinery which ex- Senator
Warner Miller tended when he was a boy
| floats like a cork on the tide of an attempt
to make it pay 100 per cent side by side with
mills of the most improved equipment.
Why should the government at Washing
ton undertake to give such a combination
assistance through tariff laws in eXtorting
large dividends on a grossly inflated capital
from the consumers of paper? Why should
it coddle monopoly which stands like a
| block in the way of forestry preservation
and better trade and political relations with
Canada? The tariff on pulp should be abol-
| ished and tariff on pulp paper which we
export but do not import is a clear and in
defensible trust gratuity.