Omaha daily bee., 1916-12-29
The Drsye IN Print Paper

The year 1916 will close as the most remark
able and profitable in the history OF the paper
trade and prospects it will be exceeded IN TINS
respect-by 1917
be said the larger percentages of the l9lI output
have been contracted for. Reports from canada
state 80 per cent OF that countrys output mas
been placed under contract at prices ~ per Sent
to 100 per cent higher, than current rates. ne ne
international Paper company, whose output IS on
per cent news print is understood to have VIZ,
tuay sold its possible production OF this material
for next year.
Other companies are in the same condition and
spot material in 1917 will be scarce and obtainable
at prices materially above the prevailing contract
price of $50 net
The markets in wrapping and other papers and
paper products are not protected by contract 10
the same extent as news, but prices have shown
a larger percentage Of increase. These products
will Be more subject to price fluctuations during
the coming year. There is an acute shortage OF
all lines and the present trend of prices is upward
with not even the remotest sign OF recession in
either demand or price.
Consumers are buying only to the extent OF
their current requirements and there are no signs
Of stocking up in any quarters. This is consid-
cred favorable sign for continued high prices.
The Union Bag and Paper company probably
has shown the largest increase in net earnings,
which are now understood to be at the rate OF
W,
share on the outstanding capital stock. Earnings
in the first six months Of the current fiscal year
were at the rate of $l23 500 monthly, which was
an increase OF 500 per cent over the last half OF
the l9l5-l6 fiscal year.
Earnings Of $500OO0 monthly are almost $50
per cent in excess Of the monthly earnings during
the period from August |, 1915 to January 81,
1916. For the fiscal year ended January 81, 1915,
the company showed deficit Of $s4,4so
The International Paper company i said to be
earning at rate of $3.50 900 to 100000 monthly.
Predictions are freely made that the net earn
ings in January will exceed 100000. For the
full year 1915, net profits were only $1,219,515,
Current reported earnings are, therefore, about
$50 per cent higher than they were in the COM
pany's last fiscal year.
The American Writing Paper companys cur
rent earnings are understood to be between
S3s0,00O and 100000 monthly. These earnings
compare with deficit of $26,955 shown for 1915
operations. The United Paper Board company,
which has not yet been listed on the New York
Stock exchange, is earning between $4,000 and
100000 monthly. Net earnings after charges for
the fiscal year l95-l6 was only slightly in excess
Of $159,000
Stocks of news print paper on hand with
United States and Canadian mills in November,
according to figures compiled by the News Print
Manufacturers association, show the heaviest de-
cline this year.
Tonnage on hand on October 81 was 60,312
compared with 1924 on November so, decrease
Of more than 7000 Stocks now are at the low
est point they have reached this year and show
decline of $1,000 tons from the high level
The output Of forty-three mills reporting aver
aged 522l tons daily, new high record, exceed
ing the return of any previous month with <the
exception of May when forty -four mills reported
daily production Of 5,305 tons. Shipments in
November totaled 145,0os tons.
Demand on Canadian mills was particularly
heavy during the month, as stocks in that terri
| tory show decline of $500 tons, compared with
| minor increases shown in both October and Sep
| TENDER. These mills, however, showed substan-
| tial increases in production the daily average
| being 1897 tons, compared with low for the
month Of 1918 tons. The daily average output
! Of mills in American territory showed small
decrease II is evident that unless economies
practiced by the publishers result in material
| decrease in consumption. the market will face ar
| even more serious shortage when the spring de-
/ mand sets IN as the mills promise little in the
way Of increased production.