Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-01-05
FOR FREE PAPER
/. and FREE PULP.

New York Times.
The Board of Directors Of the Ameri-
can Newspaper Publishers Association
has forwarded a brief to the United
States and British Joint High Com
missioners asking for the removal of
tariff duties on paper and wood pulp.
After setting forth that the directors
of the association represent 157 daily
newspapers of this country, the brief
requests the American Commissioners
to advocate the inclusion Of free
paper and free pulp in the adjustment
Of our relations with Canada. " 1t
then continues:
1.-THE present tariff rate on printing
paper, unsized, sized, or glued, suit
able for books and newspapers, valued
at not above cents per pound, is
three -tenths Of cent per pound, or Sc
per ton. The tariff rate on mechani-
cally ground wood pulp is one-twelfth
of a cent per pound, or 81. 81 per ton.
During the year ended June Both,
1888, the paper manufacturers of the
United States exported 53,71S tons of
printing paper, tnews and book
valued at S2,702, 351, an average of
news printing is brought into the
/. United States
"The total importations of pulp wood
in the 10 months ended June 30th,
1898, (according to The Paper Mill Of
August 18th, 1885,, were 30, SAG tons,
valued at S60l, 642, against Al, TOT tons
in 1897, valued at ss00,SS6 The entire
revenue received from the importation
of mechanically ground wood pulp last
year was 81, S42, and, as no news
paper was imported, therefore no
serious question of National economy
or threatening deficits could be urged
in opposition to free pulp and free
paper.
y "The tariff on paper Is prohibitory
and the rate for wood pulp is excessive.
The American paper manufacturers
need no protection, because they can
manufacture paper cheaper than is
done in any other part of the world.
The American manufacturers are pro-
tected to the extent of 81. go per ton by
reason Of their proximity to their
customers. American manufacturers
are now supplying the Australian and
Japanese markets and are underselling
the British Swedish, and German
manufacturers in the British market
SIN January, 1893, all the big and
profitable paper mills of the United
States, with a few unimportant ex-
ceptions, were merged into the Inter
national Paper Co., a combination that
absorbed "a mills, producing about so
per cent of the entire American output.
This corporation, or trust was CAPT
talized upon basis of $50, 600, 600,
divided as follows: Bonds, $40, 1000, 900
preferred stock, S25, 900, 600; common
stock, $40, 900, 600.
The pretext given for the organi-
cation of the trust was the inability OF
the mills to make paper at prevailing
prices--that bankruptcy stared them
in the face. This combination was
really formed to protect the proprietors
whose mills were in poor localities, or
on streams that were running dry.
Zone mill included in this COM
bination (Rumford Falls made profits
of s488, 200 in "A months on capita
of 5000, 900, and entered the trust on
basis that yielded 81. 80 for every dollar
OF original investment, so that in AZ
months the total return on an invest.
ment of $500, 600 was S2,75O, 600. Yel
that mill was in such poor shape wher
acquired by the trust that an enormou:
outlay was necessary to bring it into
condition. Another mill averaged profit:
OF from 80 per cent to AS per cent pei
annum, and took "a in trust securitie.
for every one dollar of its stock.
1.-The organizers of the trust frankly
admitted at the outset that its common
stock represented only good will, vet ;
quarterly dividend of per cent on tn,
common stock was declared in Noyem
Der, payable December 31st, 1898. I'm
mediately after the organization of th,
trust it raised the price of paper wher
ever possible. In three cases it raiset
its price $40 per ton, and has average,
an increase of IS per ton on its dali,
output of 1,420 tons, equaling an in
creased tax of 50, 100, 600 per annun
upon the newspapers of the country
which now pay total exceedin,
$40, O0O, 900 per annum for their pape
supply.
Canada for free paper and free pulp i
advisable to insure the continuance a
the present supply of free logs fror
Canada. The threatened retaliator
export duty upon logs to be impose
by Canada would ultimately fall upo
the newspaper consumer. The presen
consumption Of pulp wood by the pull
and paper mills of the United States
including manila, book and writing
is stated upon authority of 'Th
Paper Maker a paper trade journal
at 1000, 600 cords per annum, whicI
consumption requires the entire strit
ping of pulp timber on 625 squar
miles per annum.
Our spruce wood supply is limited
We therefore urge that the Com
mission should take advantage of tn
present opportunity and immediatel
secure sufficient supply of spruc
freed from tariff complications.
Every increase of quarter cent pc
pound in the price of news paper add
S34, 000, 900 to the value Of the tru.
securities. While the enlistment {
capital in American enterprises ma
exercise slightly deterrent influene
on the Paper Trust, the effect canns
be material because the trust owns til
largest and best powers in localiti,
where spruce wood is cheap, and frol
which transportation is prompt an
cheap. A successful and energet
competition cannot be maintaine
within the United States. The GU
side mills that do or can make pap,
are not equipped for the economic
manufacture Of news paper. We mu
look to Canada and the foreis
countries where ground wood can
produced at a cost of $3.50 per ton ar
where news paper can be produced f
one cent per pound. Free paper
therefore the only strong and perm
nent assurance of protection from tn
combination.
The Commissioners should consid
whether they are justified in furnis
Ing protection to a combipati,
organized in restraint of trade al
intended to extort excessive pric
from representative industry. II