The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1908-01-10
Makers of White Paper, He Says, Have
Been Absorbing Losses on
Long Contracts.
QUE TO NATURAL CONDITIONS
Vice-Prcsident of Great Northern Com.
pany Defines Causes OF Advance
in Cost of Its Product.

paper, Nhlch IS causing much dis
cussion among publishers OF one cent
newspapers, is due solely to natural
and logical causes and in no way
TO arbitrary action on the part OF
monopolistic interests was asserted
yesterday by William b. Dillon, vice
president of the Great Northern
Paper Company. who is recognized
as among the foremost authorities
on American paper manufacturing.
In statement to the Herald he dis
cussed the entire problefh in its many
varied phases This company is the
largest single producer Of paper in
the world, except the International
Paper Company with its more than a
score Of mills.
Mr.. Dillon advanced the conten-
tion that, with the present trend OF
conditions, newspaper publishers
SHOULD base the price OF their publi-
cations on the cost Of raw material
used, just as does the manufacturer
In any section of the Industrial field
The newspaper publisher he assert
ed, is literally a puryeyor to the pub
lie in practically the same way as the
proprietor Of a general store or any
dealer who sells wares that meet A
public demand or necessity.
Under conditions which have been
caused by the progress Of recent
years Mr.. Dillon believes that the
day of cheap newspaper is drawing
20 a close. For several years. he
stated, paper makers have been alb
sorbing losses on long contracts i'm
posed by these altering conditions
and methods. Now, however. the
point has been reached where the
paper manufactures cannot afford to
assume these losses, and a readjust-
rent in the field is necessary.
Cause of Higher Prices.
The increased selling price of
white paper said Mr. Dillon. lis
due solely to the demands of natural
conditions. These altering conditions
have affected practically every other
field of supply and demand. as the
people well know. A number OF the
foremost causes which have demand
ed this price advance may be briefly
enumerated
increased.
Wages paid now are much higher
than few years ago
Second, cost of obtaining pulp
wood has increased. Land on which
'catting rights could be procured for
five dollars an acre eight or nine
years ago now calls for ten dollars
an acre.
Third, there is a great increase
Ia the cost Of maintaining cutting
crews in the woods. At one time
men could be hired for work in the
forests at from fifteen to sixteen dol
lars week and board Now they
must be paid from thirty to thirty
i've dollars a week with their board
provided. AS to the food, there has
been an increased cost. too. Bacon
costs more. Cost of -four. molasses
and beans has gone up. This means
big item of additional expense.
Fourth, the various mills are now
required TO use three shifts OF men,
where formerly but two shifts were
employed. In addition. we are re-
qsired to assign more men than for
merly TO handle the paper making
machines, and this. too, with an ad-
venced scale of wages in effect.
Fifth, freight rates have ad-
vanced. There is no need OF com
ment here. The general public. as
well as the manufacturer and dealer.
knows what this means.
Sixth, warehouse charges have ad-
vrnced. This has brought about
another and important item OF in
creased cost.
Resources Not Wasted.
"Of all the timber cut in this conn
try less than FIVE per cent. is used
ia making wood pulp. The remain
der or ninety-five per cent. goes
chiefly 20 the lumbermsn. The tim
Der which We cut can, OF course. be
used for building as well as for pulp
making purposes Therefore. when
che pulp-maker and the lumberman
are competing for cutting rights in
any district the man who owns the
acres in question naturally takes ad-
vantage OF this combination and the
price goes up. II is this condition
which has advanced the cost OF OBJ
tanning pulp wood
The company with which I am
connected continued Mr.. Dillon.
"swns 10000 acres OF timber land
Now, sciehtifc investigation has
shown that II timber is cut under
the regulations and rules advanced
by the Forestry Department at Wash
fng,on 1000 acres will produce one
ton of paper a day .for-vell. for
eternity. Therefore IL we had $50
600 acres OF timber land We would
be enabled TO meet our present out
put OF $50 tons OF paper a day.
So yoI can see ne have a large mar
gin beyond our actual requirements.