The times. [volume] (Richmond, Va.) 1890-1903, 1899-01-04
ANEW 1NDUsrRYFoR RICHMOND.

one Of the most promising enterprises
for Richmond during the year 1899 is the
lanes River Falls Paper and Pulp Minis
which IL is proposed by the Richmond
.anitalists TO establish on the site Of the
oid Haxau mills. The impression has gone
ont that this enterprise and the com
,,r, which proposes TO "elecrify' the
James are one and the same but this is
am error The two companies VIII be IN
imatelv associated ana the paper mills
will get their power from the electric
company. but they will be distinct indus
tries each operating in its own sphere
and independently Of the other
The gentlemen who propose to estab-
nsh the paper and pulp mills have not
undertaken the enterprise at haphazard,
out have made dnigent inquiry and their
conclusions were reached after having
satisfied themselves that Richmond offers
peculiar advantages to such an industry
and that if properly conducted, it must
nav handsomely on the capital invested
For one thing they have ascertained
that the poplar wood necessary TO make
soda pulp can be secured here al from
e. to $3.50 less per cord than the same
material can be had in pennsylvania
from which state nearly an the soda pulp
now used i'm Richmond is purchased. III
requires about two cords Of poplar wood
TO make one ton Of soda pulp so mat
this difference in cost would be- good
profit I'm itself
Moreover. the advantages Of water
mower TO be had here will greatly reduce
the making of pulp here as compared
with plants that are operated by steam
many of which are under operation al
the North. 1t has been ascertained by
inquiry that the freight rates on the raw
material shipped to Richmond and on
the manufactured products shipped from
Richmond are highly favorable TO such
an industry The paper mills in this
city already in operation are eminenuy
successful and from the start have been
having handsome dividends.
Bids have been submitted by response
bic persons to build and equip the propos-
cd mills at a total cost Of construction
Of s9ss $50 The cost of the site will be
$4,000. making total cost Of Hoo0S). II
is estimated that the average output OF
the mills would be thirty tons per day or
1000 tons year. at an average net proht
Of one cent per pound, or $50 per ton,
which would yield $4,000. The average
output of pulp would be ten tons per
day al $3.50 per ton. or S225O0, making
am income. IL is claimed. on the basis OF
the lowest estimate of 500 500
I'm purchasing the HaXall property on
share account with the representatives Of
the proposed Electric Power Company.
an agreement was made with the Nir-
einia Electric Railway and Development
Company by which the James River
Paper and Pulp Mills arc TO have cleo
trical power. as the latter company may
desire. not exceeding 1900 electrical
horse power at cost price, thus enabling
tho company to operate its plant at the
lowest possible cost for power. This. it
is clear 20 see, is an advantage which
perhaps no other manufacturing enter
prise OF like character enjoys.
In order to raise the money necessary
TO build the mills and provide liberal
working capital. the company proposes
to sell $4,000 Of first mortgage six per
cent. nfty-year gold bonds. and these are
now being rapidly subscribed for.
Such in brief is the plan and there is
now good reason 20 believe that the ne
cessary capital viii be raised without
trouble. The industry will give employ
ment TO AT least 400 hands. and IL is pro-
posed to begin work on the plant in Feb
ruary. The demand for paper In this day
is enormous and is growing all the time.
As evidence Of this the American News
papers Publishers Association has re-
Gently made the statement TO Congress
that the demands OF the pulp trade strips
tho timber from six hundred and twenty
five square miles annually.
The tendency Of prices is upward and
the estimates which have been made as
10 the profits Of the proposed mills In
Richmond are doubtless below rather
than above ths mark. A pulp mill Of
this character has been IN operation at
Buena Vista for several years. and even