Evening star., 1923-07-18
A Proposed Canadian Embargo.

A situation of keen interest and
great Importance to the paper con-
sumers of the United States has arisen
recently through the action by the
house of commons at Qttawa, Canada,
authorizing the Dominion government
TO make regulations prohibiting the
export of freehold pulp wood. used
bv the paper mills OF this country.
This, as has been stated in protest
sent by the American Paper and Pulp
Association to the Secretary of State.
is the legislative elimination Of q
movement started in Canada about
four years ago as threat to the pa
per manufacturers Of this country
who, by virtue of the Underwood reso-
luton of Congress, sought restora.
tion of their rights in certain crown
land leases. Those leases had. II is
held. been arbitrarily and illegally
taken from them by the province of
Ontario in 1900. the province of Quebec
in 1910 and the province Of New
Brunswick in 1912. The American
manufacturers had acquired and paid
for the pulp wood reserves in the
crown lands of the three provinces
named. The annulment Of their rights
brought the growth OF the newsprint
industry of the United States virtually
to a standstill~ in 1910, and as re-
suit of the reciprocity act of 1911 and
the tariff law Of 1913 the Canadian
paper industry doomed. ~.
In 1910 this country supplied prac-
tically the entire demand Of the news.
paper publishers OF, the United States,
Canada supplying but $4,000 tons
Twelve years later Canada exported to
the United States nearly one million
tons, or about one-haff of the consump-
tion. Nearly 80 per cent Of the product
of the Dominion found It's market
here. -.
The obvious. purpose of the proposed
embargo upon the, pulp wood from the
freehold land in Canada IS to complete
the process. of developing Canadian
paper manufacture at the expense of
paper manufacture south of the bour.
dary,. virtually to concentrate paper
making in Canada. The effect would
undoubtedly be to increase the cost of
paper in the United States. It has
been estimated that newsprint would
have to be sold for. $40 a ton more
than the present price, putting an add
ed charge of s25,0O0.0O0 year on pub
fishers in the United States, which, of
course, would be reflected in retail
prices. t >-.-. -
The Importance of this question is
shown by the fact that there are in the
United States 36,403 papernaking
plants. employing at latest figures
509.S75 people, with annual wages ag.
gregating s565,oeeD 900, with a total in.
vested capital of two and a half bill
lions, and a total annual product ex-
ceeding a yalue of three billions.
This immense industry is threatened
with destruction by the proposed move
TO prevent the export of freehold pulp
wood to the United States.
The question has been raised
whether such an: action by the Domin-
ions of Canada would not justify
counter-embargo upon: some of the
products of this country now largely
impefted by Canada from the United
States such as coal; oil, sulphur and
many other supplies upon which Can
ada depends for the maintenance Of
her industries. That suggestion, has
been advanced. and is now under con-
sideration by the Department. of State.
The mere possibility of SO Gripping an
action by this government should give
pause. to the government at Ottawa
before it moves to complete the proc.
ess of destroying the American paper
making industry by cutting off the
supply of pulp wood upon which that
industry now SO. largely depends.
81.