New-York tribune., 1918-04-17
International
Paper Conpany's
Earnings Larger
Reports Great Expansion
Last Year, in Spite of
Many Handicaps

in the price Of every element entering
into production, particularly materials
and labor, the International Paper
Company set a new high record IN
earnings in 1917. The annual report,
/ issued to stockholders yesterday, dis
closed total revenue from operations
of $12,932,172, compared with $780,
S27 in 1916. The company set up re-
serve of $2,5OO,0O to cover taxes ana
allowed 81, 1924 ,GS2 for depreciation and
$726,704 for interest. After these de-
ductions the net revenue remaining
was $S,1S0,7S7, out Of which Sl,Aol'loo
was paid in preferred dividends, leav-
| ing surplus of $6,719,6S6, equal to
$3.50 per cent on the S2O,OO0,00O COM
mon stock, compared with 2l.65 per
cent in 1916. Out of the total surplus
of the company of $22 58,43O at the
close of last year, $7,506,244 was set
aside for stock and cash dividends paid
and reserved for payment in settlement
| Of the deferred cumulative dlvldcndS
on the preferred stock.
Handicapped by Car Shortage
p. T. Dodge, president of the COM
pany. in his remarks to the stockhoid- !
crs lays special emphasis on the difil-
cultics that hampered the 1917 opera
tions "The first and most important
difficulty" says Mr.. Dodge, "was that
Of securing transportation Tor the
enormous quantities of wood and other
materials going to the mills and for
the finished product coming from the
mills In the past this wood was de-
lvcrcd partly by steamers and partly
| by rail. Practically all of the steam
crs have been commandeered by the
government as war necessity. In con-
sequence the larger proportion of the
wood must be transported by rail from
distant points and at great expense.
For government purposes, the railway
cars have been largely Communicated,
and they are obtainable in small num-
bcrs, with great uncertainty and with
increased freight rates. In numerous
cases the mills have been compelled to
discontinue operations for the time be-
ing because Of the inability to secure
cars for the delivery of wood to and
the finished product from them.
"In its extremity the International
Paper Company purchased cars in sub
stantal numbers in order to keep ccr-
tain mills in operation, but the condi-
tlons are such that these cars cannot
be kept constantly in use or moved to
the best advantage. When it is con-
sldcrcd that the wood consumed during
the last year piled in cords end to end
would reach from New York beyond
Chicago, the difficulty Of continuing the
mills in action and producing above
1900 tons of paper t,ay and deliver
ing this to many and distant points of
consumption. will be appreciated.
Suffers from Federal Interference
Aside from the increased difficulty
and cost of transportation, the com
pany has been compelled to meet many
other unusual and serious difficulties
according to the PRESIDENT Among
these are a great shortage and mark d
increase in the cost of labor, de-
crease IN efficiency, a great increase in
the cost of materials and supplies, and
the interruption of business and the
consequent loss of production through
direct interference by the government
In this connection the report says:
: ut is believed that the company has
, IN some ways suffered unnecessarilv
Of course allowance must be made for
the tremendous pressure under which
} officials are acting and their consequent
! inability to consider deliberately OF
carefully private interests. With slight
warning the large mill of the company
at Niagara Fails. producing over 15O
tons OF newspr'nt paper day, was
summarlly stopped by the diversion OF
Its water to other users producing
chemicals for government work. By
TINS action large number of work
men were thrown out of employment
force Of skilled men disspatcd. sew.
cra mllilOnS of capital rendered in
active, and the market deprived OF
nearly $4,000 tons Of ncwsprnt papc,
, day, although a shortage Of produc.
ton was already claimed by some
prahcncs OF the government"
IN the State Of Maine some of the
5 intcrnatonaPs mills were closed, witt
, consequent loss of production, because
OF the shortage Of fuel oil. due to the
TACT that the government had com
mandecrcd the tank steamers This ant
most OF the other Interruptions re
'erred to IN the report occurred thi.
year, and are not reflected in tn,
! figures issued in the annual statement
which are for last year
How Fuel Order Worked
OF the effect on the company Of Tho
e"ofCs or the tucl administration tt
conserve coal early this wear tho rc
port says: an several cases the com
pany has been compelled to close II,
mills, reduce its output and leave
workmcn unemployed to conserve coal
although it was in position to carr,
On operations without interfering j,
| the least with the interests of the rov
crnmcnt or the public.
| "forcsceing the difficulty which nrob
ably would arise later in obtainin,
| transportation for coal, the COMPANY
| carly IN the year. before the congestion
| of the railroads occurred, provided Goa
at it's mills. Although the coal was !,
| ITS BINS and was useless for others i,
'he community, and although the mill.
| were operated by water power. tho,
| We're compelled to close under tn,
| Monday closing order of the Fuel Ad
| mlnlstrator. The result was not onl,
| the immediate loss Of product an,
| nroht, and loss to the wage carners
| but, beyond this, great waste of waite
| running uselessly to the sea and con
| scqucnt reduced production of pulp t,
| oe used IN periods when it could no
| be advantageous!y Produced"
| Wants Higher Prices
During 1917 the company granite,
| two increases II wages to its employees
| IN addition to n bonus of 10 per cen
| distributed at the close of 1916. Th,
report tells in some detail of the con
fcrcnCcS bptWaen tho roro~ ,,,....r