The Morgan City daily review. (Morgan City, La.) 1916-1920, 1916-11-14
NEWSPRINT SHORTAGE IS DUE
TO DEMAND FOR KRAFT
PAPERS.


traceable to the increased output O
wrapping paper. The consumption
Of kraft and other wrappings is q
per cent greater than it was tw
years ago. Probably Is per cent; O
45O tons daily, is manufactured OF
machines that were formerly avail
able for the making of white news
print stock. The shortage of news
print is about 500 tons day, ane
this figure is being reduced by thu
economies publishers are adopting
to conserve the supply. Summed up ir
terms of capacity, one year ago, only
IS per cent of the wrapping paper
mills and machines were kept busy
while today they are all in motion
and units that have formerly made
newsprint have been transferred to
the more profitable grades. This
explains the shortage, and the price
of newsprint, as we'll as of kraft,
which has gone up in price from
8 1-2 to 8 1-2 cents pound-ad-
vancing more than white paper. The
authority for these statements is
man well posted in the kraft paper
industry:
individual purchases on the part
of the ultimate consumer declined
Immediately after the opening of the
war. Users of all grades Of wrapping
paper stopped purchases the bottom
fell out of the market, and kraft
went begging. With the return of
prosperity, users who constitute
every person, firm, or corporation
that sells anything around which
paper is wrapped for delivery, placed
hew orders. The demand was soon in
excess Of the supply. Increased pur-
chases meant one more piece of pap
er for every package bought 4. by
Americas millions daily This result
ed in taxing the mills to putting out
25 per cent more wrapping paper
this year. Plus the increase, we have
to make up the shortage caused by
the failure to get the usual supply
from Norway, Sweden and
Germany. Imports, while not large,
figure in the total.
"The situation is one of supply
and demand. It is surely economic
If there was only two hundred pairs
of shoes in the world, they would be
owned by two hundred different
people, for they would bid up the
price, regardless of the actual worth
Of the footgear. Publishers are not
the only ones. who have suffered.
While the price of newsprint has ad-
vanced from $1.84 and 81 at the
mill, to SO a hundred--or less than
so per cent, wrapping paper has
gone up nearly 200 per cent. Pur-
chasers of kraft complain just as
loudly about the increase as the pub
fishers, but they lack the means of
giving their side publicity. They do
something to remedy the trouble
which the newspaper men could
adopt with reason and profit. They
pass the increase cost to the ul;i-
mate customer.
wrapping paper is made entirely
from chemical fiber. No ground
wood is used. Kraft fiber is made by
the sulphate method, while most of
the fiber used for most grades is
made by the sulphite process. About
one-quarter of the 25 per cent in
crease in wrapping paper production
is in craft, being less than 500 tons
a day: More than<1 900 tons a day
are made from sulphite. The extra
demand has increased the price of |
sulphite to $95 and as high as $1O5 |
a ton.
''Now to get down to the costs
the reason for the high prices. Take
the lowest price Of sulphite, s95 and
S39 for ton of ground wood, which |
IS the average price delivered at the
mill. It requires 80 per. : cent of |
ground wood and 25 per cent Of sui
ohite, approximately. to make ton
If newsprint, with 5 per cent of
,ther materials. In other words, it
axes 110 pounds of material to
100 pounds Of paper
| shrinkage Of ten per cent. That
means 1900 pounds Of ground wood, {
which costs $31.20, and 500 pounds
# sulphite, worth s23.75, to which
must be added at least $13 ton
or the cost Of manufacture, which
makes the price at mills compelled
o purchase all raw materials S6T.95
. ton. Sixty per cent If the coGr.try's
nils make newsprint. ard the wrap /