I'm not a big fan of Estes Wadding. When packed correctly, it does work well.
I just don't like paying $4.99 retail for treated toilet paper.
So, I make my own from cheap crepe paper. See HERE
In 1954, Orville Carlisle devised a Parachute Wrapper. Note the paper cap on the bottom. This is from the instructions of the old Bal-Rock series.
Enlarge and check out Step 10, the nose cone is called the "Warhead!"
In 1958, Model Missiles had a variation on this. It was made from a single piece of (flame resistant?) paper without the cap on the lower end.
This illustration is from www.oldrocketplans.com
From the 1960 Estes Catalog, you are told a carefully packed piece of typing paper could protect your parachute.
This is from Ninfinger at: http://ninfinger.org/rockets/rockets.html
Click and enlarge the copy below:
Today I use a variation on the parachute protector.
In addition to packing my homemade crepe paper wadding inside the tube, I'll take just one square of the expensive Estes wadding and wrap it around the bottom of the parachute or streamer. It's just extra insurance especially when using a Mylar chute or streamer.