Erik D. Demaine, Martin L. Demaine, and Anna Lubiw, “Folding and One Straight Cut Suffice”, in Proceedings of the 10th Annual ACM-SIAM Symposium on Discrete Algorithms (SODA'99), Baltimore, Maryland, January 17–19, 1999, pages 891–892.
Updates:
Ivars Peterson wrote an article describing these results, “Fold-and-Cut Magic”, Science News 162(22), November 30, 2002.