The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-02
WORK FOR GARFIELD.
He VIII Insert Probe Under
the Williams Resolution.
Lumber Situation to Come in
for an Airing.


missioner of corporations to make a
thorough investigation of these con-
Germs.
The investigation will not only af-
feet newspapers which pay $25.OOO,-
600 annually for the paper they con-
sumo. but book publishers and box
board, writing, and other paper manu-
facturers who consume at least $71,-.
100000 worth of paper.
The General Paper company of Chi
cago, which was a selling corporation,
organized under the laws of the state
of Illinois, and the mills controlled by
1T, scattered among Illinois and other
paper making states of the west, was
dissolved some months ago as a re-
suit of judicial proceedings instituted
in Minnesota. The institution of the
suit was followed by a reduction in the
price of paper to newspapers by 80
per cent, according to information
given to. the attorney general. Now
the department of justice has been in
formed the price of paper has gone up
again and that new combination or
association has been organized which
takes the place of the trust declared
unlawful In this connection the at
tention of the authorities has been
called to the report of the incorpora-
ton of the Kim berly-Clark company
by the secretary of the state of Wis
consfn. The officers of this company
were the officers of the old trust.
Combine to Control Prices.
The investigation which the govern
ment made into the General Paper
company disclosed a working ar
rangement between it and the Inter
national Paper company and the
Great Northern Paper company. Com
plant was made that all the paper
mills of the country precipitated a
panic in prices and in the supply four
years ago by closing their mills; that
the producers of sulphite pulp were in
a com bination to control the price of
Iaf 70 of in
duction; that in all other branches of
the trade in writing, book paper, and
card board similar combinations had
been organized.
The allegation has been made that
the paper trusts now IN existence sell
their product at a lower price abroad
than they do at home. There is no
possible chance of competition be-
cause of the methods pursued by the
paper combinations and because it is
claimed that under. conditions pre-
vailing in the United States it would
take almost two and one-half years to
develop water power and erect pulp
mills. sulphite plants, and paper mills
combined.
Eject of the Tariff.
representations have been made to
congress that if the tariff on wood
pulp, which amounts to $1.67 per ton, |
and on paper for newspaper printing, |
which is $6 per ton, should be remov-
bringing about the erection of mills in |
six months which would entirely re-
neve the situation. The pulp in this |
case would come from Canada, and it |
is declared if it were available there |
would be paper plants operating all |
along the New England and lake Dor |
ders of the west, which would destroy |
the existing combinations.
1t appears. however. that the Inter
national Paper company has had the
Canadian as well as the home situa-
ton in mind for some time. 1t has
possession of 1900 square miles of |
woodland in the United States and |
controls 1000 square miles in Canada.
The International Paper company OPP
posed the movement for Canadian
reciprocity, which resulted in repriSals |
prohibiting the export of any logs cut
from crown lands or imposing high |
license fee upon all logs cut for Amer |
lean use. The chief of the bureau of |
forestry of the American department.
of agriculture declares that the Amer !
lean forests can not long suffice to sup
ply the Increasing demand for spruce |
timber.
Tariff Must Stay.
But there is not the slightest pros
pect of the tariff on pulp or paper be-
ing removed until 1908. That there |
will be at least a modification of these |
duties, if not their removal. is not |
doubted, but whatever action is taken !
ject of tariff revision is considered. |
The president has determined to leave
the tariff alone, and his successor
must handle 1t, perhaps during an ex-
after his Inauguration.
So far as the paper companies al
legged to be in combination are con-
cerned, they deny emphatically they
that there exists any territorial divi-
sion. Indeed, from their claim, 1t
would seem there prevails most &C
tive competition in every branch of /
the paper business.
The investigation of the paper situa-
ton can be conducted by the commits
with that which he has been directed |
to make into the lumber situation.
The pulp now used for the manufac-
ture of paper is obtained from spruce |
and poplar. which are the only kinds
of wood at present suitable for use by
the processes so far perfected for
treatment But manufacturers say the |
time may come when paper will be |
along the Ohio and Mississippi rivers |
and the pine trees of the south.
Inquiry to Be Thorough.
Commissioner Garfield will investigate
every phase. Of course, of both the lum-
Der and paper situations and if he I
should develop that combinations exist |
in the two industries in violation of the |
antitrust law, the facts will be certified |
TO the attorney general LOT MS action. /
Mr.. Garfield will not make any reports /
to congress at this session on any of |
the Investigations he has been making, |
although the inquiry into the tobacco |
trust and the relation of waterways to |
other methods of transportation are |
practically completed.
These reports will be presented to /
congress at the beginning of the next |
session. At about the same time there |
will be transmitted a report on the steel |
Industry. A rumor was in circulation