Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-04-12
Its Discussion Before the Industrial
Commission.
STATEMENTS OF MR.. JOHN NORRIS
He Speaks of the international
Paper Company.
EX ECTATIONS FAILED

| The paper trust was discussed before the
industrial commission today, Mr.. John Nor
ris, business manager of the New York
Times, appearing and testifying on the
various phases of the manufacture and sale
of paper. Vice Chairman Phillips presided
the examination generally being conducte ed
by Prof. jerks. Among other commission
ers present were Messrs. A. L. Harris John
NJ. Farquhar, John L. Kennedy, Chas. H.
Litchman and c. J. Harris.
Mr.. Norris said for nine years he has
been engaged in buying paper, formerly
| having been connected with the New York
World.
Failed in Every Expectations.
Il will assert" he said, that the Inter-
national Paper Company has failed in every
expectation it held out to the newspapers
and to the public. The cost of manufac-
ture is greater under consolidation than
under individual ownership of the paper
mills. The economies which were to be OBJ
tanned under the consolidated management
have not been realized. The export trade
has fallen off. or at least has not increased,
though that was to be the strong feature
of the consolidated companies effort. The
promised policy of an enlightened Self-in-
terest has been abandoned and the net re-
suit to newspaper publishers has been an
increase of over 81, 500. 600 per annum In the
cost of news print paper.
The newspaper with which I am con-
nected has always maintained that it's
opinions can only be expressed through its
editorial columns, l will state prelim-
inar1ly that | speak for myself only and
not for any particular newSpa per, though
/ have no doubt that practically all the
newspapers Of the country object to the in
crease OF price. [ am in d position to
know the views of newspaper publishers
a 4 fai ~.
views of all the large consumers of news
print paper.'
Mills and Their Production.
The witness said there Were probably 723
pulp and paper mills in the United States
The value of gross production of the news
print paper mills Of the country will not
exceed S2G,000,op For eighteen years
there has been a steady downward ten
dency in the price Of news print paper
due to many causes, notably the substitu-
ton OF wood for ra gs in making pulp i'm
proVements IN machinery and in methods
OF manufacture, increased consumption and
wholesale production under concentrated
supervision, so that In the year 1887 news
print paper which had sold eighteen years
previous for cents per pound. or $50 per
ton, was sold, delivered in the news rooms
In New York city, at 16O cents per pound
or So per tom
Competition forced economies and I'M
consumption. Within a period of seven
years the speed of paDer making machines
was increased from 2OO to 800 feet per min
Ute
He recited various other ways I'm which
the business had gone ahead under compe-
ttion. These economies under competi-
ton had cheapened the cost Of producing
newspapers and resulted in the enlarge
ment of the size of daily and Sunday edi-
tions. They also resulted in the reduction of
the retail price Of news paper. The paper
maEufacturers appeared before the ways
and means committee Of the House of Rep
resentatfves on December 81 1896. and
urged an increase Of the tariff on pulp and
paper. The first president Of the Interna-
tiGnal Paper Company promised lower
prices for paper. Another member of the
company anticipated the capturing of the
markets Of the world for paper
Relying on these promises the tariff was
increased on paper. Prior to that no news
paper had been imported into this country
and the government derived no revenue
from the tariff. The doubling Of the rate
under those circumstances made the duty
prohibitory and paved the way for the in
crease in price which was subsequently
made.
International Paper Company
The international Paper Company was
incorporated in New York state January
3D. 1898. Its authorized capital stock was
$45, 100000, and power was given to issue
SIC, $1,000 in bonds This stock was divided
into common and preferred 500, ,0OO, 600
common and $25,0GO.000 preferred stock at
g per cent. All of the big and profitable
paper mills, with a few unimportant ex-
ceptions, We're merged into the company
tWenty-four mills in all, producing about
50 per cent of the American output at that
time; subsequently this number of mills
was increased to thirty, and the percentages
OF output was slightly increased.
OI the ninety-eight paper machines in
cinded IN the merger, only forty-eight were
CT ft.N,,
forced to spend S2,oO0,0OO upon its ma
chinery, but during the past three years
no new paper machine has been added
to the company's plant. There We're many
elements OF useless expense which had to
be borne by the company, and finally by
the purchasers Of paper. The combina-
ton bought 600 square miles Of wood land
In the United States, in addition to the
GOO square miles transferred to it in the
consolidation, so that it owns I6UO square
miles In the United States and controls
2,0U square miles in Canada. The effort
of the paper company to acquire wood
lands in Maine stimulated prices so that
tracts which sold three years ago for 65
cents per acre are now held at s. per
acre.
The paper company started in to compete
with itself in acquiring wild lands, conse-
quently the price of wood pulp advanced
and the pay Of the men who cut the wood
naturally participated in this stimulus, and
the eagerness Of the International Paper
Company to insure to itself an ample sup
ply OF wood defeated that economy upon
which its expectations had been based. The
advance In freight rates, some of them re-
sulting from the combination itself, Of
wire and felts also added TO the expense.
Increase in Cost of Production.
II am informed and believe" Mr. Norris
said, that under the present state Of con-
solfdation for a period Of three years the
cost of producing ton of news print paper
has increased So per ton. A system
OF uniform contracts for newspapers, as
adopted by the International Paper Com
pany and by the other interests, has been
so provided as to add So per ton to the
cost Of news print paper upon apparently
the same quotation.
The western paper companies are prac-
tically united in the General fsper Com