New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-11-17
PAPERMAKING PROFITS.
international Stakeholder Corrects
Publishers.
To the Editor of The Tribune.


Newspaper Publishers Association is circulat-
ing in Influential quarters as the principal part
OF its present war upon the American manufact-
urers of white newspaper includes a statement
of Don c. Seitz. of 1.-The New York World"
which was made by him at the meeting on Sep
TEMPER ~ 1907, Of that association at the Wal
dorf-Astoria Hotel in New York City That part
of the statement of Mr.. Seitz which related to
the International Paper Company was as fol-
lows:
Now look at the International Paper Com
pany. That company has outstanding to-day
in preferred stocks, bonds ETC. 500 OOOO and
II does gross annual business at the outside,
OF about S21,OOOOOO. You are sufficient mathe-
inatlcianS to know how much profit the Inter-
Hd'lohaI Paper Company has got to make
that S2Io0oOO to pay even per cent on
S60OooOOo. Isn't it about 81 per cent? What
manufacturing business, honestly conducted
pays anybody 80 per cent? How many Of your
businesses pay 30 per cent on your gross out
put? The average manufacturing business If II
can make 10 per cent is doing magnihcentIy
well with the tariff behind it. and we haven't
any tariff at all"
Although this statement does not expressly
assert that the International Paper Conpanv
pays TO its stockholders and bondhoIders 3 per
cent on S6o0OOOO0 of stocks and bonds. 1t does
make that implication. and that implication is
the truth is that the International Paper Com
pany pays out interest and dividends on onlv
S4l,l34,1OO of bonds and stocks so that Mr.
Seltz exaggerated nearly 30 per cent the funda-
mental fact upon which he based his statement
In speaking of the gross annual business of
the international company, Mr.. Setz was not
so inaccurate, for he said that it amounts to
about $21.000O00 at the outside; whereas it
really amounted during the year ended June 30
1907, to S21S41.4S6 Sc.
Having stated that its gross business was
s21ooO,o0o and having implied that the company
paid out per cent of S60,O0OO00 as interest and
dividends, he stated that per cent on $50, OOO,-
600 of stocks and bonds amounted to 80 per cent
of $4,000, 900 of gross business. 1t is true that
he made this statement in the form OF ques-
ton which he put to his hearers. but he coupled
that question with statement that his hearers
were sufficient mathematician TO know that the
statement was correct.
Having thus calculated that the International
Paper Company paying out in interest and
dividends IS per cent of its gross business per
anuum. ne criticised that payment much too
large and substantially said that Is per cent
instead OF 80 per cent would be enough. But If
Mr. Seitz will submit his arithmetical calcula-
ton TO some schoolboy who has studied arth-
metic as far as addition. subtraction. multipli-
cation and division, and also as far as percent
age, he viii learn from that schOolboy that
per cent on S60O0o,000 is less than Is per cent
on 100000. instead Of being 35 per cent, as
Mr. Seitz calculated.
It was surprising enough that Mr.. Seitz made
that obvious error in arithmetic but It was still
more surprising that the American Newspaper
| Publishers Association should afterward print
and thus implicitly indorse that calculation and
circulate 1t proof that the international Paper
! Company has been dividing among its stock
| holders and bondholders 80 per cent Of its gross
| income But absurd rs Mr.. Seitz's calculation
| was, and its PRONUNCIATION by the American
Newspaper Publishers Association is, It is really
not as much out Of conformity with truth as
| are several other statements that have been
printed and promulgated under the name OF
i that association against the International Paper
| Company and the other sixty-eight independent
manufacturers Of white news paper in the United
| States
| The truth this particular point is that the
| amount Of interest and dividends paid out by
| the International Paper Company on all its
| bonds and stocks during the fiscal year ended
| June 80, 1907, was almost exactly $2,3SOOOO.
| which was between 10 and II per cent OF the
| S21, 841. 1856 SO which constituted the gross in
| come of the company. This percentage of that
! gross income which was thus distributed as In
| terest and dividends being less than three
| quarters Of 10 per cent which Mr.. Seitz ap-
| pears 70 think would be about fair I should
| like to learn what reason he could give for any
| further complaint that the International Paper
| Company is charging too much for its paper
ALBERT H. WALKER.
New York Nov. 49, 1907