The sun., 1919-09-23
NEWSPRINT MEN
SEE WIDE FIELD
Industry i'm Canada Limited
Only by Supply of Ma
chinery.
ALL ENLARGING PLANTS
Paper Makers Satisfied With
Judgment of Tribunal
on Prices.
ALL ENLARGING PLANTS
Special Correspondence to the Canadian
Section OF THE SUN.

Special Correspondence to the Canadian
Section OF THE SUN.
MONTREAL, Sept. 22.-Extension Of the
capacity of the newsprint making in
dustry in Canada at the present mo-
ment Is limited only by the ability of
tho manufacturers of machinery to sup
ply the necessary machines and by the
suspicious of some paper directors that
the price Of paper making machinery
may possibly go a little lower when the
present demand begins to fall off. AL
most every existing plant in Canada has
orders already placed, or is discussing
the terms of orders, for additional paper
making machinery and several entirely
new enterprises are projected. The out
put of newsprint has been growing in
Canada for some years at a rate of 10
to is per cent per annum, but there
seems to be no doubt that this rate Will
be exceeded during the next few years.
A prominent pulp and paper expert In
formed THE Sun correspondent that he
had not the slightest doubt that In ten
years Canada would be producing 5000
tons of newsprlnt day, or about the
equivalent Of the present total consump-
ton OF newsprint in the United States.
to reflect upon the judgment Of the
paper tribunal which recently knocked
SO of the price of newsprint between
July 1 and December 1, 1918, have come
to the conclusion that the decision is
really much more in their favor than
against them. To understand this con-
clusion 1T Is necessary to consider the
history of newsprint price regulation In
Canada. From March l. 1917, to Feb
rusry l, 1918, an interim price was in
fcrce-hrst upon the initiative of the
Government and subsequently maintained
by the Paper Controller--of $50 ton.
From February 1, 1918, to July /. 1918,
this price was raised to $57 n ton, In
consequence of strenuous representations
by the manufacturers that their costs
had materially increased and that the
$50 price was inadequate and unreason-
able. From July l to December 1, 1918
there was in force a price, originally
fixed by the Paper Controller at $69
but subsequently reduced by the paper
tribunal to S66, and from December l.
1918, to the present time there has been
In force the same price of 500 fixed by
the Paper Controller and not yet re-
viewed by the paper tribunal.
New Basls for Valuation.
The judgment of the paper tribunal,
| in the opinion of counsel for the manu-
facturers. establishes a new basis for
valuation of costs and computation Of
| prices. The original price of $50 was
established by Controller Pringle not
absolutely as fair price having regard
only to current considerations, but as a
price which would to some extent recon-
pense the companies for their losses I'M
der the former regulated price of $50
| and S57. The paper tribunal appears
to have thrown overheard this principle
OF compromising one period out of an
other period, and while they do not ex-
! pltcitly say so in their Judgment, they
are understood to have told Mr.. Pringle
that he erred in taking into considera-
ton for the July, 1918. price any facts
regarding the losses in previous periods.
1t thus becomes possible for the pub
fishers to seek a further review of the
| $50 and s57 price which prevailed from
March, 1917, to June, 1918, and il is
| their intention to ask to have these
prices reconsidered at this weeks sitting
before the controller. AS the controller
has already admitted that they are en-
titled to some consideration for that
period. 1t would seem almost certain
that he Will have to grant them an inn
proved price, in which case the difference
| will be an offset against the SO differ
ence now due to the publishers for the
period OF July to December, 1918. The
| controller has already refused to give
the publishers n blanket order for the
| immediate payment by the newsprint
manufacturers of this SO difference and
| 1t begins to appear extremely uncertain
whether the publishers will ever get any
thing out of the manufacturers, and even
further they may find that they owe the
manufacturers something for excessive
reductions in paper prices in 1917.
Moreover, the price of $50. which is