The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-08
INTERNAL. PAPER co.
INCOME DECREASES
Annual Report Shows Net for
s. 1918 Is $5,152,577, or
$18.47 q Share.
SURPLUS IS S19,1Q4,768
President Dodge Puts Blame
for Company's Situation
on War Conditions.

The net income OF me international
Paper Company for 1918. according to
its annual report made public yesterday.
was s5.1B2.577. after all charges and
Federal taxes, or s1s.t7 . share on .he
common stock after deduction OF pre-
ferred dividends. In 1917 ss4.o3 q share
was earned. The 1918 showing Is con-
siderably larger than was expected In
the financial district In gpite OF restric-
tons imposed on the Industry during
the war.
The total income for 1918 was $780,
ss4, against s12,e3a.173. Depreciation
was only slightly higher and taxes and
interest charges decreased materially.
A million and q half was paid in divi-
dends on the preferred stock. leaving q
surplus for the year Of sa.eb2,677.
against s6.71s.ss7 IN 1917 The total
PROFIT ana loss surplus on December 81.
1918. stood at Sle,l04,768. The company
ran into many snags during the year.
according to the remarks of President
Phillip T. Dodge. accompanying the re-
port
Throughout the year." he said, "busi-
rsss operations were attended by I'M
usual and dangerous conditions ana It
was only by exceptional care and effort
on the part OF all in the service that
disaster was avoided. There was a con-
slant shortage OF labor. marked inef-
ficiency OF new labor. an increase Of
great increase in the cost Of all ma
terials and in frelghts. Aside from these
drawbacks there was constant Govern
mental interference with means Of trans
portation by land and water, affecting
the delivery Of supplies to the mills and
the delivery OF paper, particularly for
export.
Much Government Interference.
Beyond these difficultes there was
constant uncertainty and great expense
and waste OF money due to Govern
mental interference, cost Investigation
for price. fixing. brought about mainly
By the influence OF uniformed and mis-
guided publishers who apparently be-
lieved that hugo profits were being made
and that there was q conspiracy to main
tain prices. The decision OF the arbi-
tratins Judges proves the fslsity OF these
IDEAS
Special taxation has been a heavy
burden. A single payment to the Fed
eral Government was for an amount
sufficient to build and equip a mill pro-
ducing 10000 tons of newsprint paper
per year.
Labor conditions throughout ths year
have been uncertain and variable, due
to the number OF your employees who
entered the service and to inability to
secure qualified men in suffieient num-
bers. Tho floating LABOR was far less
efficient than the old and loyal men
lost to the Government.
lowing TO the vast consumption for
various uses the wood Of the continent
suitable for pulp IL rapidly disappearing.
The remaining stand 10 largely In the
Canadian provinces where your company
has very extensive holdings In fee and
Under crown leases. In addition TO its
large holdings in the United States. The
strength OF every newsprint manufac-
turing company must be large in its tim
Der holdings, the value of which will
steadily increase as the supply decreases
In time the cost Of producing paper must
rise to levels which to-day seem impossi-
BILE.