Results of an experiment
I've always been a history buff. I remember many years ago, when reading a historical cook and homemaking book from the 30's that it was mentioned to wrap potatoes in newspapers to help them keep longer. So... I experimented.
I bought 10lbs of russet potatoes back in October and stored them individually wrapped in newspaper. Keep in mind that my larder, which is in the unfinished part of our basement maintains a constant temp all year around of about 57 - 60 degrees F. I kept the potatoes away from light. This week, I just started unwrapping them and using them, so they were in storage about 2.5 - 3 months.
None of them rotted. They had eyes on them that grew out a few centimeters and the exteriors were a little bit softer than fresh. I'm not sure if it was worth the trouble, as my potatoes last pretty long anyway. However, if you don't have a cool dark place to store them, it might prolong their lives. Just "food" for thought.
Ultimately, I know the best way to store potatoes is in their unwashed, dirty state, but I haven't had room to plant potatoes in the past and don't have a root cellar to really keep them in their natural state. (My grandmother had a root cellar and I remember her keeping her potatoes in this large wooden boxes, with all the soil on them.) Also note that you should keep onions away from potatoes... their gases cause each other to rot.
I'm baking, cooling, peeling and dicing the potatoes to freeze. At least I'll have lots of convenient potatoes for hashes, etc.