Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-04-30
the committee would take the several
requests under consideration.

ment to lie absolutely Ialse anu He
said Mr.. Cowles knew it was false
when he made it.
your contention is" inquired Mr..
Sims. that the reasons given by Mr..
COwles are not true?'
absolutely without basis" Mr.. Nor
ris replied; land l think ] can estab-
lish their falsity to the satisfaction of
this committee
Mr.. Norris next declared his ability
to "jemollsh" the reasons for the in
crease in the price OF paper given by
Chester w. Lyman of the International
Paper co. and which appeared April
c. 1908. in the Paper Trade Journal"
Mr.. Lyman, in the article in question
said that that increase was on account
of increased cost of labor and raw ma
terial.
Asked for statement regarding the
Canadian mills. Mr.. Norris said they
were running at this time because
American mills had combined to MAIN
tain prices at such a high figure that
Canadian mills could pay Sc ton in
freight and still undersell the price
which the combination had fixed as its
selling basis.
Discussing the question of improved
machinery as having a bearing on the
cost of production, Mr.. Norris said
that 10 years ago paper rolls We're no
inches wide. whereas they now run l5O
inches: they ran $50 feet Il minute, but
now run 80 10 6l2 minute: 10 years
ago the caracity was 20 t" % tons
cay per machine. whereas now they
mako trom 10 to 30 tons Il day.
of the increased output per machine
tends to reduce the labor cost per ton
OF raper produced with substantially
the same crew" After submitting
COPY Of a contract of the Internation-
al Paper Co. with Il labor union,
whereby il liked the ttree-tour system.
Mr.. Norris said he would submit data
as to percentages and as to saving.
(Which will completely upset the claim
made by Mr.. COwles as to the labor
cost having been increased SO per cent.
Questioned by members of the COM
mittce about the tariff on wood pulp,
Nh Norris replied that he had no
doubt the paper makers would furnish
data about that.
Mr. Norris offered in evidence figures
as to the amount of capitalization and
character IF the several paper plants.
What is the reason for that?' Mr..
Sins inquired. to which Mr.. Norris re-
piled that it was for the purpose OF show
ing that the newspapers of the country
are being called Upon to bear the bur-
dens of consolidation and high finance
and that the conditions are not normal
and that the newspapers should not be
asked to bear burdens imposed upon .
corporation as q result of mistakes it
makes in undertaking 80 or more mills
under one management.
Mr. Mann protested that the answer
was too general and inquired if it was
for the purpose of showing that the pa
per makers are making larger dividends
than they are entitled to. or for the pur-
pose of showing that expenditures of
their plants are greater than they have
Il right to be.
1T is" replied Mr.. Norris. ''for the
purpose of showing that they are at
tempting to earn as much as they pos
sibv can to Justify this exceedingly high
capitalization"
Answering another question by MIR
Mann, Mr.. Norris said it did not res
upon Congress to pallate or make Gooe
the mistakes of gentlemen who consol
idate mills.
"Wcn," said Mr.. Mann. these mills
are in existence The machinery will
which they are supplied is there. Do yol
contend that in considering the matter
Congress- should act on the surpositiol
that I'll should I've thrown away and new
, mills estahlishod?"
No sir was the reply. IF the!
gathered together II collection of old ma
! chinery. and IL in the course of the yea
since that collection the woods shoul'
go farther away from them. that is TIN
availahle timber. there is no obligation
upon Congress to impose burdens Irol
consumers that they shall pay the adde'
cost of that when it is possible to Obtain
that supply in any other way. But w
. will show that there is still within tn
, United States. within the control of tn
mills woods which is available for thei
purpose
+ Mr.. Sims remarked that from the wa,
he looked at the question a tariff dut,
i should rot be kept up simply that the In
ternational might make money out of an
tiquated and disabled means of proCuc
ton.
'"rhat it is right said Mr.. Norris
"The tariff is not for anyone especial,
concerned. but for the promotion of tn
general interest,"
Mr. Norris quoted from the annua
statements of the International Paper &C
for the fiscal years ending June 50. 100
> and 1907 Those reports, said Mr. Nor
, ris. showed the amount of income an
the amount of expenses, land they vii
especially show the increase in the cos
of manufacturing from the year 1906 t
1907 and that up to June 30 1907. the in
c,na sed cost Of manufacture of the Inter
national Co. was substantially 100000 o.
. an output substantially of 100000 tons o
product. making an increased cost o
! manufacture of approximately 60 cents
! ton of output. not justifying. lie said
! "anv increase of ST. a ton in price III
commended that the burden of proof wa
on the International Co. to show tina
the increased cost of manufacture as dis
closed by the figures must he explained
away to Justify the increased price whicl
the company set up.