New-York tribune., 1919-04-08
international
Paper Profits
Slumped i'm 1913
Balance for Common Re.
dliced to sI8.47 a Share:
Dodge Complains Of High
ly Unfavorable Conditions

Earnings available for the common
stock Of the international Paper Com
pany were only slightly more than half
as large in 1913 as In 1917. The com
pany's total income last year was
$8,194,884, compared with $I2,932 l73
the year before, while deductions of
$1,556,78O for depreciation, $1,100,000
for taxes and $3S5,552 for interest left
a surplus Of $5,152,577. After allowing
for preferred dividends this was
equivalent to S18.47 share on the
$19, 9,764,OO8 common stock. The 1917
surplus equalled S3402 share
The relatively unfavorabe showing
was explained by p. 7. Dodge, presi-
dent, in statement relating that "un-
usual and dangerous" conditions were
encountered during the year. Only by
exceptional care and effort, he said,
was disaster avoided. The difficulties
encountered were due largely to con-
slant shortage of labor, marked ineffi-
cheney of new labor, increase in wages
to an unprecedented level, increase in
the cost of materials and in freights
and governmental interference with the
means of transportation.
beyond these difficulties" Mr..
Dodge stated, "there was constant un-
certainty and great expense and waste
of money, due to governmental inter-
ference, cost investigation and price
fixing, brought about mainly by the
influence of uninformed and misguided
publishers, who apparently believed
that huge profits were being made and
that there was a conspiracy to main
tain prices"
Concerning the burdens of taxation
Mr.. Dodge said that a single payment
to the Federal government last year
was for an amount sufficient to build
and equip mill producing 10000 tons
of news print paper a year.
Inability of the company to import
wood from it's Canadian crown lands
was called grossly unfair and attrb-
uted by Mr. Dodge to the failure of the
Washington legislators and officials to
protect a home industry "The re-
suit he added, "has been the steady
growth of Canadian mills, with no in
crease in the United States for some
years"
Certain it is" Mr.. Dodge informed
International Paper stockholders. Chat
many of the news mills in the United
States-outside of those owned by your
company-will be compelled to discon-
tlnue and that the industry will be
confined largely to Canada and Euro
pean countries. 1t is equally certain
that your company, to protect its inter
ests and secure proper profits, will be
compelled to transfer its operations in
part to Canada in order to utilize its
unexcelled wood holdings and water
powers.
"When the publishers of this coun
try are compelled to deal principally
with foreign makers. both they and
Congress will awake to the harm and
folly of neglectng proper protection
to an immense home industry. Com
mon justice and common sense demand
that reciprocity on the part of Canada
should be compelled. They should per
NIT pulp wood to continue its course to
the United States or obvious retail
atory action should be taken by Con-
gress."
The 1918 balance sheet showed notes
payable Of $9,365 0O0 against notes re-
ceivable of only $0O1, ,384. Accounts
payable were $1.124,85i, against nc
counts receivable of $5.368.2oa. Mr..
Dodge stated that the increase in bor-
rowings was due largely to conditions
that would disappear when the war
conditions md restrictions came to an
end. He said that substantially one
half of last yoar's profits resulted from
the manufacture of special papers