THE PAPER SYNDICATE.

Gisborne Standard and Cook County Gazette, Volume II, Issue 301, 21 May 1889, Page 2

THE PAPER SYNDICATE.

SPALDING AND HODGE'S AFFAIR.

London, May 18.

Negotiations are still proceeding with the view of forming a syndicate for the controlling of the paper market.

No event has caused so much flutter in the literary world for many a long day as the failure of Messrs Spalding and Hodge. Though their ostensible bufsnasa was that of paper-making, their most important function was the bolstering up of various publishing businesses, Great, therefore, was the consternation among authors when the failure became known, "Do you think my publishers are involved?" wa* the question which every one asked of every one else. The way iu which the fate of several publishing houses Ii mixed up with that of Spalding and Hodge ia thia;—Paper, as every one knows, is the chief element of expense in publishing. Spalding and Hodge used to give very long credit, and their customers were thus able to defer payment for tho raw material of books until the money from the sale of those books had come in. Bui now they will be hit in two ways. First, the Official Receiver will call in all debts due to Spalding and Hodge at once ; secondly, other paper makers, warned by their failure, w|ll probably hesitate to give similarly extended credit. Hence it is quite on the cards that the fall of Spalding and Hodge will cause the fall also of some four or five publishing houses whose financial position i> shaky. Tbit parlous state of things lends additional force, by the way, to some cautions which the Society of Author* it issuing to literary aspirant*—"Never when a MS. ha* been refuted by the wellknown houses, pay email house* for the production of the work. Never enter Into any aomtyondenoe with publisher* who ore not recommended by experienced friend* or by this Society. *’