The times., 1901-04-13
TRUST PROMISES NOT KEPT
The Paper Combine Failed to BE of
ANY Advantage.

.~Jhn Norris Attacks the ConsoIida
ton before the Industrial Com
mission-Hoyv Prohibitivc THrif
Allowed an Increase i'm Prices
John Norris. business manager Of tn
New York Times" and formerly pub
Usher of the New York World" t,sd
fed before the Industrial Commission
Yesterday c.r eTninS tl1lesults brought
about by q '-l,n If numbel
Of mills into a. paper trust under lAo
name Of the International Paper Com
rany. He asserted that the paper truss
had failed TO realize in every respect
the advantages it had held out to the
newspapers and TO the public The
economies which were TO be obtained
under the centralized management had
not been realized. and the export trade
had fallen off considerably although
that was primarily the strong feature
of the consolidation.
The promised policy cf an enlightenei
self interest had been entirely aban-
doned. and the net result to newspaper
nublishers had been an increase Of
more than S4,S00. GOO a year in the cost Of
pauer. For eighteen years p.ior to the
formation Of the trust there had been a
steady downward movement in the
price Of news print paper, which was
due to various causes. notably the sub
stitution Of wood for rags in making
pulp the improvements in the methods
of manufacture and in machinery, the
increased consumption, and the whole
sale production under concentrated SUI
pervision. so that in 1887 news print pa
per. which had sold eighteen years pre-
vfouslv for 9 cents a pound, was sold.
delivered in the news rooms OF New
York city for Is cents pound, or $S2 a
ton.
Competition between manufacturers
was so intense that they frequently
gave long credits to weak newspapers
and carried the burden of bankrupt
concerns TO the disadvantage of those
who were solvent This competition
had many advantages, however, as II
forced economies. necessitated improve
ments in manufactories. and increased
the consumption Of the product
The gradual reduction in the price Of
news print paper worked much good.
1t resulted in cheapening the cost Of
producing newspapers, and made posi-
bic the enlargement Of daily and sun
day editions at a reduction in the retail
cost. 1t was also directly responsible
for the enormous increase in newspaper
circulation. and. working around the
circle. there were corresponding de-
mands on the manufacturers for news
print paper.
This was the situation. Mr.. Norris
said. when q committee Of representa-
tive paper manufacturers appeared be
fore the Ways and Means Committee in
December. 1896, and urged an increase
Of the tariff on pulp and paper. At the
time OF this meeting Mr.. Norris charged
that the manufacturers then present
were planning to consolidate all the
large news pint paper mills of the
country, that they proposed to increase
the price Of their output, and that they
were seeking Congressional aid through
the tariff to assure protection for them
selves against the possible competition
of Canada. which had limiuess possi-
bilities, cheap and ample water power,
and timber supplies, as well as cheap
water routes to market.
The manufacturers protested against
the intimation that they proposed rails
ing prices. They declared at the time
that if they should consolidate, and Mr.
Norris quoted the exact words of VIII
liam !. Russel. first president Of the IN
ternationaI Paper Company, they
would save $4,000 per annum by re-
ducing their working force" and also
that they would make great gains by
developing an immense export trade.
None Of these expectations, Mr.. Nor
ris said, had been realized. The man
also declared that every die
tate Of enlightened self interest would
Impel them to keep prices down. They
realized that their customers were rich
and powerful, and that a paper concern
could not exist under a policy which
dictated exorbitant prices.
When asked at the time If destruction
Of competition was contemplated, Mr
Russei replied: If prices were cheaper. !
other manufacturers could not exist !
but if we put UP prices, we would hold !
the umbrella over all"
Mr.. Norris said at that time that the |
paper manufacturers were taking ad-
vantage of tariff protection to combine
against their customers for the purpose
Of raising prices. and that there was no
need for such legislation, because the
American manufacturer, by reason Of