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The table following gives the estimated revenues from the sale of these wet sheets:

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The 1,748.38 tons would bring, if sold as per plan No. 1..
The costs connected with the collection, handling, etc., are as follows:
Present cost of collecting, handling, etc......

To assort 1,356.61 tons out of the above-mentioned total,
at $1.25 per ton (sold now "unassorted ")....
Difference in freight rates as described in plan No. 1.

Net revenue from 1,748.38 tons..

Gross revenue from 3,964.17..
Total expense costs...

Net revenue from 3,964.17 tons.

$10, 019. 79

1,695. 76 71, 356. 61

$15, 680.97

13.072. 16

2,608. 81

137, 719. 70
79, 269. 72

58,449.98

Net proceeds under plan No. 2...

61, 058. 79

The net proceeds of $61,058.79 shown under the above plan contemplates no change in cost of collecting and handling as compared with the present plan. These costs under the present plan as shown by Exhibit A are $32,742.43 against a revenue of $62,527.95, leaving net proceeds of $29,785.52 annually. The increased proceeds under plan No. 2 over the present plan, therefore, would amount to $31,273.27 annually.

The estimated cost of installing a pulping plant would be about $75,000. This amount would cover all possible contingencies.

THIRD PLAN.

In plan 3 it is thought that, as both plans No. 1 and No. 2 contemplate the selling of either the waste paper as such or the wet sheets as such to paper mills the shipping expense would be a large item, together with the numerous handlings of same, it would be better to remanufacture the waste into new paper in a Governmentowned plant. This paper could be used exclusively by the Government Printing Office, as that office is the largest buyer of paper in the Government service. It is believed that of all the plans described this plan should be followed, owing to the fact that the most favorable conditions would result therefrom.

The figures given throughout this plan are those compiled by the same representative of the Bureau of Standards as mentioned in Plan No. 2.

The 3,964.17 tons of the one class of paper mentioned in plan No 2 would reproduce 3,369.54 tons. This would be divided as follows:

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The cost of manufacturing other than the cost of pulping as shown in plan No. 2 amounts to about $25 per ton. This amount includes depreciation and interest on the investment.

3,369.54 tons, at $25.......

Cost of collecting, handling, assorting, converting to pulp, etc., as shown in plan No. 2.

Value of paper shown above..

Net income from sale of 1,748.28 tons of waste paper, as shown in Table
No. 3 of plan No. 2.....

Less costs as per above...........

Net proceeds under plan No. 3...

$84, 238.50

63,095.93

147, 334. 43

280,223. 90

2,608. 81

282, 832.71 147, 334. 43

135, 498, 28

The net proceeds of $135,498.28 shown under the above plan contemplate no change in cost of collecting and handling as compared with the present plan. These costs under the present plan as shown by Exhibit A are $32,742.43 against a revenue of $62,527.95, or net proceeds from the sales under the present plan of $29,785.52. increased proceeds under plan No. 3 over the present plan, therefore, would amount to $105,712.76 annually.

The

The estimated cost for installation of plant for pulping, manufacturing paper, etc., is placed at a maximum of $600,000. This estimate covers cost of grounds, buildings, necessary machinery, etc.

A preliminary report on the subject of money pulp has been submitted to you under date of September 21, 1912. In this report it was recommended that a plan similar to plan No. 2 be followed. This commission expects within the next two months to submit a final report relative to money-paper pulp.

There is now being erected on the grounds of the Bureau of Standards, to be operated under its supervision, a complete commercial size defibering and deinking machine of the Winestock make. It is anticipated that this machine will be ready for operation during the first week of February, 1913, after which time additional practical tests will be made, and reports relative thereto will be duly submitted. Respectfully submitted.

FREDERICK A. CLEVELAND,
WALTER W. WARWICK,

MERRITT O. CHANCE,

Commissioners.

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1 Burned because of the confidential nature of the written or printed matter thereon.

2 This paper is assorted into the following grades and quantities, bringing prices noted:

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3 Does not include portion of salaries of charwomen and messengers.

Per ton.

$22.00

12.00

4.20

5.00

4.00

4.00

Paper of United States Naval Observatory burned on premises. Paper of Marine Corps (Paymaster's Department) is collected and disposed of by owners of rented buildings.

In Reclamation Service the waste paper is disposed of by owners of rented buildings

In office of Solicitor the waste paper is burned. In Forest Service the waste paper is disposed of by owners of rented buildings.

7 Estimated.

In Bureau of Standards the waste paper is destroyed.

This paper is assorted into the following grades and quantities, bringing prices noted:

Tons.

76.36 shavings from blanks and blank books.. 357.67 shavings from book papers (white).

30.90 monotype keyboard paper..

462.65 shavings from book papers (mixed).

930.92 imperfections from printed paper.

36.46 manila clippings.

97.74 brown wrappers.

341.98 waste sweepings.

193.73 cuttings from strawboard, etc

60.07 discarded publications...

10 The cost of hauling to burning place not included.

"This amount is cost of baling. Does not include cost of collection or other handling.

Per ton.

$38.00

32.00

30.00

14.00

18.00

20.00

4.00

4.00

4.00

10.00

12 This paper is assorted into the following two grades and quantities, bringing prices noted:

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14 This paper is assorted into the following two grades and quantities, bringing prices noted:

Tons.

153.65 waste paper..

2.08 registered package envelopes.

Per ton.

$3.00
8.00

THE RECOVERY OF FIBER STOCK OF

CANCELED PAPER MONEY

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