The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-12
B. F. Nelson Does Not Look for
Reorganization to Cir
cumvent Law.
NEW COMBINATION rs
THREAT OF OTHER MEN
Reorganization of Dissolved Com
pany and Higher Prices, Said
to Be Planned.

"I do not look for any reorganization
Of the General Paper company said
B. F. Nelson, president Of the Henne-
pin Paper company, today. The dis
solution comes at a favorable tina.
Every mill in the company is rushed
for every pound Of paper that can be
turned out and more beside. Stocks
also are low. The companies organized
as the General Paper company will con-
tinue their business as individuals, /
believe, at least the Hennepin company
But opinions vary in interested cir
that Will now be adopted by the former
members Of the General Paper company,
the selling organization Of the paper
trust, which is to be finally dissolved
June 16, by order Of Judge ". 81. Sam
born Of the United States circuit court,
whose decision was fled yesterday.
President James A. Kimberly, presidents
of the General Paper company, declares
| reorganization on new lines as eff
fective as the old, but immune, will be
| effected. He even .intimates that steps
to this end have already been taken.
| An opposite opinion is ventured by
| Vice President George 4. Whiting, one
! Of the wealthiest and heaviest manu-
facturers Of print paper in the United
States.
Hints at Higher Prices.
Mr.. Nelson comedies with Whiting .
view. Speaking Of results Of Judge
Sanborn's decision today, Mr.. Nelson
said: ..ss.
~ do not look for, any reduction in
prices Since the General Paper COM
pany was formed, prices have contin-
ued to fall, and are now less than half
/ what they were before. The first adj
4 vance was ordered less than sixty
days ago. On the other hand, wages
! have increased from 25 to 40 per cent
/ and raw material from 25 to 100 per
cent. By selling thru the General Pa,
/ per company, which was only sales
/ agent for~-the mills represented, we
| were able to save the expense of trav-
cling men. This expense of selling
| amounted to 10 per cent of the cost
Of the goods sold. The General Paper
company handled the business for 8
per cent-a saving to us Of z per cent,
which is considered a good margin in
the paper business. We must put out
tional cost of business must be pro-
vided for in some way.
/ AS rule all large consumers were
| provided under contracts with one mill
! represented in the sales company.
suppose these contracts will be con-
! tinued thru their terms. The contracts
were made thru the General Paper COM
pany, but run between individual mills
of the company and the consumer.
| Bad Taste to Reorganize.
~ do not know what kind Of an
organization could be effected. AS far
as I know there is no plan now under
consideration. After the action taken
yesterday BY, the paper men and the
granting Of their requests by the court.
| It certainly would be in very bad taste
! to Immediately undertake plans for
another combination similar to the one
dissolved. do not believe 1t viii be
possible anyway, at least, not for some
| time. Some man or men with unli tIg
tied means might purchase all the mills
done in the case Of the International
Paper company. am ready at any
time to sell my mill IL psid Its value,
and there are other mills that could Be
bought. But transactions Of this mag
nitude would take time.
"The General Paper company was
merely selling agent marketing our
paper for " at less cost than would be be
killed now, but I believe that further
developments will show that It was an
economical plan for all concerned. !
believe that the Individual mills viii
continue business as individuals as the
4 Hennepin company plans to do. should
say also that If any consolidation is
ever attempted that It will be along the
chase of plants By some Individual or
concern making the ownership Of all
mills private and In the hands Of one
individual or concern as process both
slow and expensive.