that news paper was then sold in the United States more cheaply than in any other market, it is absurd to claim that there could be a consolidation of two-thirds or three-quarters of the existing plants without such consolidation being of a high grade of efficiency as to its physical condition. As an illustration of the falsity of the statements recently made to you, we quote the following: An allowance of nearly $8,000,000 was made for a mill (Glens Falls), one-half of which might better be located upon Boston Common or in New York City. Five years previous the stock capital of that concern had been $300,000. This same statement was made before the Committee on the Judiciary in its hearings on Lilley resolution, No. 243, in 1904, and a specific answer was made thereto, which is as follows: The total capitalization of the Glens Falls Paper Mill Company issued and paid up was considerably more than $3,000,000, instead of $300,000, as stated. But the capitalization did not by any means cover the whole amount of money invested. The original Glens Falls Paper Company was organized and began business in the year 1864. It was owned and controlled by a few individuals who were directly interested in and connected with the management of the property, and who were more interested in building up a large and valuable manufacturing plant than they were in paying dividends. Consequently, they devoted the greater part of the earnings for many years to the enlargement and extension of the plant, the acquisition of woodlands, and other property necessary for their purposes. In this way, prior to the formation of the International Paper Company, the Glens Falls Company had acquired and built up a valuable and successful plant and property, a large part of which was provided for out of earnings for which no capitalization had ever been issued. This property included, among others, the following: 1. Paper mill at Glens Falls, making paper and ground wood pulp, with the use of its own very valuable developed water power on the Hudson River at that point. 2. Mills at Fort Edward, making paper, ground wood and sulphite pulp, with the use of its own very valuable water power on the Hudson River at that point. 3. Undeveloped water power on the Hudson River and other property above Glens Falls. 4. A great undeveloped water power with 250 feet head on the Saranac River at Cadyville. 5. 62,990 acres of woodland in the Adirondacks tributary to said mills, and also a large amount of woodland in Canada held under Canadian permits. 6. A fine water-power of about 100 feet head, partly developed, on the Lamoille River, in Vermont, since utilized by the erection by the International Paper Company of a pulp mill. 7. A valuable undeveloped water power with a head of over 65 feet on the Lamoille River, in Vermont. The plants above mentioned, purchased from the Glens Falls Company, have an aggregate capacity of over 300 tons of paper per day. For the plants and property so purchased the International Paper Company paid, in its securities, about $6,000,000, instead of $8,000,000, as stated, and we confidently believe that the properties enumerated are worth more than the amount paid for them. STATE OF NEW YORK, City and County of New York, ss: Frederick H. Parks, being duly sworn, deposes and says that he is the first vicepresident of the International Paper Company; that he has read the foregoing statements, and that the allegations contained in the same are true to the best of his knowledge and belief. Sworn to before me this 21st day of April, 1904. [SEAL.] Certificate filed in New York County. FREDERICK H. PARKS. E. W. KENNEDY, Notary Public, Kings County, This is but a fair sample of the misrepresentations which have been made to you. Each and every one could be as readily disproved, but we regard this matter as irrelevant, and, besides, the charges are so voluminous that we doubt whether you desire to have us reply to them in detail. We respectfully refer you for additional information upon this point, or any other which has not been covered by our statements to your committee, to the hearings before the Committee on the Judiciary above referred to, and to the hearings last spring before the Select Committee of the House of Representatives on Pulp and Paper Investigation. We believe that you will find that every unfavorable allegation which has been made in regard to this company has been conclusively disproved. Very truly, yours, EXHIBIT A. CHESTER W. LYMAN, Weekly and hourly rates of wages, International Paper Company, compared with Canadian mills. SUMMARY OF TOTALS. Average weekly rate for Canadian mills.. Average weekly rate for International Paper Company. Average hourly rate for Canadian mills..... Average hourly rate for International Paper Company. $19.28 25. 17 30.6 .1655 .2656 60.5 Nine and seven-tenths per cent of positions are weekly; 90.3 per cent are hourly. International Paper Company more than Canadian mills for all positions, 57.6 per cent. December 18, 1908. EXHIBIT B. Weekly and hourly rates of wages, International Paper Company, compared with Canadian |