The times., 1901-04-13

natural advantages, could undersen the
world
/ 1t was evident Mr.. Norris said, that
| Congress relied on the promises and
. pledges of the paper manufacturers, IS
the duty en- chemically ground wood
was increased from $1.20 ton to S167
and the duty on news print paper Cost
ing less than > cents a pound was
( raised by the Dingley bill from So ton
to Sc. This doubling of the rate under
such circumstances made the duty pro-
hibitory, and paved the way for the in
crease in prices which was subsequently
made
The International Paper Company
was incorporated in New York State in
January, 1898, with a capital stock of
s45o0O, coo, $50, 600 in common and
$25.OOO 600 preferred, with the power to
issue bonds to the amount of $40 600. COO
All the big and important paper mills
were merged into the company, thirty
mills in all. producing about so per cent
of the American output. After 'he in
corporation Of the company newspaper
publishers assumed that the price OF the
product would be low one paper,
which relied on that promise was forced
TO pay an excess of $50,050 within six
months by reason of the immediate ad-
vance made by the company.
The savings which it was expected
We're to be effected by displacing the
statesmen, brokers, and shippers un
necessary under the new system, by
purchasing supplies on a wholesale
basis, by railroad freight saving, by
creating q foreign demand. by estab-
fishing uniform contract with consul
mers. and by abolishing long credits,
We're not realized. Officers of Independ-
ent paper mills which had been merged
into the trust were reappointed to posi-
tons under the new concern at double
their former salaries, and because Of
the numerous departments, under nu-
merous high-priced officials, and the re-
sulting red tape, little heed was paid to
complaints by consumers as to inferior
quality or service The eagerness Of
the trust to buy up more than an am
pie supply of wood defeated the econ
omy on which its expectations had been
based.
Manufacturers of wire for use on pa
per machines raised their prices, as did
the makers of felts used in the paper
industry. The transportation COM
panies also upset the proposed econo-
mics by raising rates and refusing to
make special contracts, as they had
done in the days of strong competition.
The export chimera also vanished, and
the figures for the year 1900 showed a
falling off Of S179,0O0 in value Of exports
as compared with the previous year.
Under the present state OF. .consolida-
ton for three years the price of produc-
ing a ton of paper has advanced 50, and
in no respect had the expectations of
the consolidation been realized. Mr.
Norris said that he knew Of two papers
which were paying $15O,0 year more
for paper than before the formation of
the trust.
Western papers, Mr.. Norris said,
were united in the General Paper Com
pany, and an offer was recently made to
unite all outside mills in the East in
scheme to maintain prices at the figure
quoted by the Paper Trust. Sufficient
evidence to show collision was not
Forthcoming, but publishers who ap-
piled for quotations were made to real
ize that their supply had been prede-
termined for them, and that the price
they were 10 pay had been prearanged.
In some cases the publisher found that
all bids but one were at a prohlbitory
urice He also found that ne had no
remedy against the supply of inferior
paper.
In closing, Mr.. Norris said in general
that he thought such conditions were a
menace, and that he considered a tax on
paper as tax on knowledge. and hence
q tax ON the edmcatinn Of the nennIe