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Great Northern Newsletter for Management Employees, 1970

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Great Northern Newsletter for Management Employees, 1970 The University of Maine DigitalCommons@UMaine Great Northern Paper Company Records Manuscripts 1970 Great Northern Newsletter for Management Employees, 1970 Great Northern Paper Company Follow this and additional works at: https://digitalcommons.library.umaine.edu/great_northern Part of the Genealogy Commons, and the United States History Commons This Newsletter is brought to you for free and open access by DigitalCommons@UMaine. It has been accepted for inclusion in Great Northern Paper Company Records by an authorized administrator of DigitalCommons@UMaine. For more information, please contact [email protected]. GREAT NORTHERN PAPER COMPANY NEWSLETTER FOR MANAGEMENT EMPLOYEES Vol. IX No. 7 New York, New York December 14, 1970 Production for the 11 months ended No vember 30. 1970 1969 Tons Daily Avg. Tons Daily Avg. Production: Cedar Springs 645,875 2,051 658,020 2,067 East Millinocket 354,352 1,079 349,073 1,056 Millinocket 297,198 905 291,899 883 1,297,425 4,035 1,298,992 4,006 GREAT NORTHERN NEKOOSA SELLS 500,000 To further explain the corporate SHARES OF NEWLY ISSUED COMMON STOCK reasoning behind this decision, Mr. Paine noted that "this infusion of new capital At the close of business on Monday, should put us in a better position to December 7, GNN sold 500,000 shares of turn to long-term debt financing when the newly issued, but previously authorized, time is appropriate for continued expan­ Common Stock. sion and modernization." Based on the closing market price of Why not borrow the necessary capi­ 40-3/8, the net proceeds from this sale tal, rather than dilute our stock? exceeded $19 million. - Total GNN Common "While this new issue does represent Stock presently outstanding amounts to a net dilution in earnings per share of 4.6 million shares. approximately 4-5%," Mr. Paine explained, According to Peter S. Paine, Great "the present rate of interest if we were Northern Nekoosa’s Chairman and Chief to borrow the money would amount to al­ Executive Officer, "the public’s desire most 11%." to acquire our stock is most heartening. Mr. Paine noted that in today’s In fact, the 500,000 new shares were economic climate, "there is no inexpensive oversubscribed." method of raising capital. However, the The net proceeds received from the result of selling 500,000 shares of new sale of this stock will be added to the Common Stock should improve our future Company’s general funds for corporate balance sheets, and thus almost compen­ capital expenditures. sate for this present, short-term dilution "In these times when the economy is "Looking to the future," Mr. Paine retrenching and we are in the middle of concluded, "we see a recurring need for a cost-price squeeze," Mr. Paine said, capital to keep our mills efficient and to "it is imperative that we prepare our­ continue the process of modernization and selves for the period when once again expansion which has been the basis of our the economy will be looking forward." past success." "It is for this reason," he added, The 500,000 shares of Common Stock "that we have gone to the equity market were bought by an underwriting syndicate for the addition of more than $19 million headed by Lehman Brothers Incorporated of equity capital. Our present debt­ (New York City). equity ratio is high, and we must provide While much of this new issue was sold the capital necessary to protect our pre­ to institutional investors, a good per­ sent investments and future ability to centage was bought by individual investors sustain our operations on a long-term, an indication of strong public confidence continuous basis." in Great Northern Nekoosa. 3. GREAT NORTHERN NEWSLETTER FOR MANAGEMENT EMPLOYEES MONDAY, DECEMBER 14, 1970 Rails Get 9% Increase. On November 5, -having a consulting service for he ICC granted the nation’s Eastern and physicians and management to astern railroads a freight rate increase draw on in evaluating apparent of approximately 9%. Southern railroads drug abusers and referring received a 7% hike. them to rehabilitation services Eastern and Western carriers had when possible; previously requested 15%, and the Southern -research on possible adverse railroads—anticipating that too high a influences on employees not rate increase might drive shippers to using drugs as far as morale trucks and barges—had asked for less than and productivity are concerned; half of that. -development of relationships Nevertheless, the railroad industry with community agencies con­ indicated it was satisfied with the deci­ cerned with welfare; sion. According to the Association of -development of an educational American Railroads, "The railroads are and informational program for pleased that the Commission has recognized employees which provides the industry’s need for immediate relief" accurate factual information (from inflationary costs and declining about the dangers of drug profits). abuse. Unlike many previous rate revisions, which the railroads have adopted almost immediately, this latest change can be­ NORTHERN DIVISION come effective only 15 days after the carriers publish new tariffs. The ICC made this modification at the Snowmobilers Again Asked to Use Only request of shippers who said they needed Unplowed Roads. Great Northern’s policy time to adjust their own prices to reflect on the use of snowmobiles during the 1970- he impact of the higher freight rates. 1971 winter season has been issued again The added transportation cost to Great this year by the Woodlands Department in Northern as a result of this recent freight Bangor. rate increase is projected to exceed $2 Registered snowmobiles will be allowed million (both Northern and Southern divi­ on the unplowed roads listed below. How­ sions) during the November 1970-November ever, in order to ensure the safety of 1971 period. non-snowmobilers, as well as snowmobile enthusiasts, plowed roads on Great Northern lands will be closed to snowmobiles. * * Plowed parking areas for cars and trailers will be provided near the unplowed snow­ mobile roads. "It makes good sense and is good busi In addition to the roadways mentioned, ness to begin a program of drug abuse there are many additional miles of private prevention before the problem requires unplowed roads on Great Northern land. drastic action," says Frederick M. Jarfield However, those using these private roads of the U.S. Justice Department’s Narcotics do so at their own risk. Bureau, in the September 1970 issue of Piscataquis and Penobscot Counties INDUSTRIAL RELATIONS NEWS. 1. For snowmobile access (Mondays The basic function of an industrial through Fridays) to Baxter State Park, program for abuse prevention should Sourdnahunk, Telos and Chamberlain Lake include: and the Allagash Wilderness Waterway, use -instructing supervisors in early the Ripogenus Dam-Sourdnahunk Road via recognition of drug abuse; Frost Pond. Parking for cars and trailers -seeing that industrial physicians will be provided at Frost Pond and the and nurses are up to date on junction of the new Telos road near handling psychiatric as well as Harrington Lake. drug problems; (continued on next page) 2. The new Telos Road, beginning at In the interest of public safety, and the West Branch of the Penobscot, will be because the new trucks and trailers hauling open to automobile traffic from Fridays tree-length loads of wood are particularly at 7:00 P.M. until Sundays at 7:00 P.M. hazardous to the smaller snowmobile, all Cars and trailers may be parked at the plowed roads on Great Northern lands will Telos woods camp for access to the Alla- be closed to snowmobilers. Cars and trailers, gash on weekends. however, will be allowed on plowed roads 3. Jo-Mary road to Johnson Pond: in order to reach those unplowed areas Cars and trailers may be parked at the specified earlier. Great Northern Jo-Mary woods camp for access Great Northern feels that the beauty by snowmobile to many miles of unplowed of Maine’s forests in winter is something roads on Jo-Mary Mountain. You may also everyone should be able to enjoy, and the drive to and park at Jo-Mary Campground for Company is pleased to share its woodlands snowmobiling around Jo-Mary Lakes. with winter sports enthusiasts. Specific 4. There will be an unplowed road questions about the use of GN lands should and/or trail from Smith Pond to Wadleigh be cleared with Great Northern Woodland and North Twin for snowmobile use. Area Superintendents at Pittston Farm, 5. The wide right-of-way on the new Millinocket, Greenville or Sheridan. Local road from Millinocket to Millinocket Lake Snowmobile Clubs in these areas will also will be open this winter to snowmobiles so be able to provide additional information. long as the plowed highway is not used. From Millinocket Lake to Togue Pond, the Millinocket Snowmobile Club, ’’The Northern * * * Cruisers”, will have a marked trail which will give access to the perimeter roads of Baxter State Park and the Allagash "Golden Road” Construction of the Waterway. 65-mile West Branch Road continues on Somerset County schedule. The section from the Millinocket. 1. Seboomook and Northeast Carry for Mill to the dike at Millinocket Lake has access to Moosehead Lake and Lobster Lake: been completed and is now open to Company Park cars and trailers at Seboomook Camp­ vehicles. ground and Northeast Carry and snowmobile Approximately 90% of the stretch from on unplowed roads around the Moosehead and Caribou Lake to the West Branch in T3, R14 Lobster Lake areas. (north of Lobster Lake) is also finished. 2. The North Branch road, just a In addition to actual road construc­ mile or two north of Pittston Farm, will tion, the bridge at Abol is undergoing be open to snowmobiles.
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