The times., 1901-06-24
TRUST MAKING IN CANADA.
a Tendency to Consolidate Large
Industrial Concerns.

Industrial Concerns.
TORONTO, Ont. June 23.-The tendency
toward consolidation in large industrial
concerns. which has of late been such
conspicuous feature in the United
States. is extending to Canada and the
indications are that in the near future
the scattered forces of many leading Ca
madam industries will be combined under
several powerful companies. Arrange
ments are now under way for the con-
solidation of all the paper and pulp in
terests of the Dominion. 1t Is proposed
to organize one powerful concern with
capital of $25.OOO,OOo. which win absorb
the thirty paper companies and the forty
pulp mills now carrying on operations IN
the Dominion.
According to charges made by the
Canadian Press Association there already
exists an understanding or pool between
the paper makers by which the prices
are maintained at a high level, and a
Government commission is now enquiring
into the matter and lately held sessions
in this city, when the complaints of the
newspaper men were heard. The organi-
zation of all the paper and pulp interests
into one powerful concern would, Of
course, be different matter. but it would
reach the same end There has been
remarkable: development in the Canadian
pulp industry in the last few years, but
there is now the danger of overproduc-
tion and one Of the principal mills, the
Clergue mill. has just closed down for
the season.
The reason given for the present depres-
sion in the Canadian trade is that the
United States mills have lately been cut
ting extensively into the European trade
of the Canadian exporting mills. The
rapid extension of the Canadian pulp in
dustry is shown by the fact that pulp
factories were not even mentioned in the
Canadian census of ISL. In 1881 there were
five factories with IN invested capital of
$92, geo; in 1891 the ndmber of factories had
increased to twenty-four and the capital
invested to 81 $685. 600. The exact position
of the industry at present will not be
known until the forthcoming census ap-
pears, but 1t is estimated that there are
now nearly forty pulp factories in the Do
minion. and the capital invested is over
Si5,0J0,OO0. The yearly output of the mills
is estimated at more than 900 tons The
bulk of the output is made into paper
mostly consumed in Canada, but several
of the factories, notably the Laurentian
mills, in which General Alger and other
American capitalists are interested, and
the Clergue mills at Sault Ste. Marie,
manufacture pulp for export
Canada offers a magnificent field for the
pulp and paper industry. 1t contains inn
mense forests of spruce which is regard
ed as the best timber for making wood
pulp. With the possible exception of
Siberia the Canadian spruce forests are
the most extensive in the world, stretch
ing as they do from the Atlantic to the
Pacific. The Province of Quebec contains
some of the best soruce lands in the
Dominion Formerly a great deal of pulp
wood was exported from that province TO
the United States, but several years ago
the Quebec Government enacted that
stumpage dues of sl.90 a cord of 100 cubic
feet should be paid on all pulp wood cut,
a rebate of $3.50 being allowed on all wood
manufactured into pulp in the Province
of Quebec. The effect of this enactment,
which was virtually an export tax of
$l-50 cord, was to prevent Americans
purchasing spruce lands in the Province
of Quebec, and there was a decided de-
cline in the value of these lands. The
Quebec Government has now realized the
injurious effects of its short-sighted
policy and has reduced the stumpage dues
from sl-90 to 65 cents a cord. thus reliev-
ing American pulp manufacturers of
serious handicap.
There is now expected to be Il large in
crease in the expert of Canadian pulp TO
the United States. During the last ten
years the exports Of pulp wood from Can
ada have shown steady increase, the fig
ures having increased from $S0G00 in 1890
to more than 81, 900. .000 at the present time
The United States and Great Britain have
bttA tIlt ltIBtAk CUSTOMERS IOT
the Canadian pulp. but it is believed that
large trade will soon be built up with
France. the Clergue interests at Sault
Ste. Marie having arranged for a fast
steamship service TO carry their products
to the French Republic.
Another important consolidation scheme
arrangements for which are now under
way, and which Is likely to be effected in
the near future. is an amalgamation of all
the cotton mills IN The Dominion. There
are now some ten cotton mills in Canada
with an INFESTED capital of $2i 900 0OO
There has of late years been considerable
cutting in prices and to prevent this in
future and TO regulate the production of
the various lines a consolidation is pro-
posed. These big consultations are like
ly to be followed by others. as it is being
realized that under such consultations
important economies can be effected and
earnings largely increased