New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-16
1919 International
Paper Co. Earnings
Decline SIS a Share
Common Balance Reduced
to 1924; Trying Condi-
tons Handicap Business;
Production Costs Gain

Earnings available for the common
stock Of the international Paper Com
pany declined more than IS share,
according to the report for the year
ending December 81, 1919, issued yes
terday. Net income, after charges and
Federal taxes amounted to $4,121, 494,
equivalent, after deduction of dividends
on the preferred stick, to 1924 a
share on the $19,So3,92o outstanding
common stock, compared with $1847
share earned on $19,764,00S common
stock in 1918.
showing to trying labor conditions and
report points to the necessity of pro-
tecting forests to assure wood sup
plies for newsprint making Of the flu
turc. 1t urges governmental coopera-
ton in this project for the reason
that private capital hesitates to take
the risks involved and the long tie-up
necessitated for forests to mature.
The report also calls attention to the
New York State law, which prohibits
cutting Of wild forests" and suggests
that the state might net substantial
revenue by permitting the administra-
ton Of the forests by competent and
Der might be cut and sold for paper
making.
The company expects to produce
more than 1900 tons of paper day
upon the completion of the new mill
at Three Rivers, Quebec, which will
triple the production IF the company's
nearest competitor. Explaining trying
conditions of the year, the report
says:
"There has been a steadily increas-
ing cost of production, due to the in
creasing cost of lumber. material,
transportation and Of ali other factors
newsprint mills the cost Of labor a
ton has advanced from about IS a ton
in 1913 to above $40 at the present
tlme-a percentage Of increase far be-
You'd the percentage of increase in the
cost of living to the workmen. Not
outstanding this fact, it has been
found necessary to make a new ar
rangement with the various unions
representing further increase of 20
per cent over the present wage, to
take effect on May /, 1920.
lowing to the rapid disappearance
of wood, it Is of vital Importance to
the country at large that steps be
taken without delay to protect existing
forests and to carry on forestaton
scientifically and on a large scale. This
can be done successfully and probably
only by the national, state and pro-
vincial governments.
1.-THE paper mills of the United States
in general are being treated unfairly
and are suffering great disadvantage
because they are prohibited by the
Canadian provinces from bringing into
the United States pulpwood from the
10 mr. 1uhi 0c
pany and others from the Provinces
with the distinct understanding that
the wood should be brought to United
States mills. Wood was permitted to
come in for several years without OBJ
lection, when suddenly further exporta-
ton from Crown lands was prohibited
The price at which producers must
sell their paper to the consumers is
still subject to the domination of
United States officials. The company
supplies paper directly to more than
400 newspapers-large and small. Sen
slbly and fortunately for all concerned
nearly all those dealing with the com
pany elected to waive their rights of
appeal to the complicated, dilatory gov
ernmental tribunals and have agreed
directly with the company for definite
tonnage at specified prices, subject to
revision by agreement from time to
time as the changing cost Of production
may require.
"While the earnings of the company
for. the year have been very substantial
and a gratifying amount has been car
ried to surplus, it is particularly to be
noted by shareholders who are not ia
miliar with such subjects that this sur
plus is not in a form which admits
of distribution in dividends. 1t has
been necessarily absorbed and carried
into the operations Of the company
thus helping to build up the greatly in
creased working capital required to
carry on your large and complicated
business under unprec edented cost con-
ditiOnsV