The Daily Alaska empire., 1927-12-31
RegTaGing Newspr;nt Production.
lPaeIas Pub and ransr Inanstrv1

(Paoife Pulp and Paper IndustryD
 There Is plenty of talk 10 the effect that the neWsprint industry is in sad state and that "oferprodueton" is word that finds a taker at any opportunity for argument The recent years when Canada has forged to the front n newsprnt production. have witnessed some mighty changes in the industry but those who are willing to speak candidly on the situation are expressing no fears and admit that the in dnstry is in healthy condition The News Print Service Bureau shows that the-Canadian mills op- eratad at S6.5 per cent. of rated capacity in October and that the United States mills operated at I6B per cent. of rated capacity In round numbers the economic group including the rnited states and Canada operated at 80 per cent of rated capacity for October. Stocks on hand were equivalent to 45 days average production
 Looking at these figures inteiigently will give lltue cause for alarm. Production figures for several years back will show that newsprint production has increased at the rate of seven per cent. on annual compounded basis With 20 per cent. of the equipment idle at the present moment and forecasting the future on this basis of seven per cent. annual increase, it will take the newsprint industry about three years to catch up to present rated capacity with it's actual production. Nc argument is offered for the build- ing of new newsprint mills at the present time Increased production for three or four years is unwarranted. but undoubtedly some new mills will be needed then it must be remembered that the newsprint mill of today is an instltn- tion of real size. The older mills where the wood supply has been exhausted are fading out of The picture but, whereas these older mills are of comparatively small capacity several of these old mills must be eliminated before production capacity falls off enough to warrant even new mill. One man of newsprnt authority has placed the minimum capacity of the economic newsnrnt mill of today at 400 tons. It takes no wizard of figures to appreciate that several mills of 40 and 50 100 tons must pass by the boards before one new modern mill is justified in taking it's place
 Some may point to the eighty per cent opera tion as representing heavy loss as uneconomlc To these people it may be pointed out that fexibility in the industry is desirable as we'll as necessary. The steel industry regards eighty per cent. production as normal Other industries regard as normal production that runs 50 per cent. or even less of their full rated capacity Consumption of the product is not something that is fixed like the postage rate a letter It has its fluctuations even the flow in our rivers To expect the newsprint industry to operate at 100 of rated capacity all of the time is to hope not only for the impossible ideal but also to withdraw from that industry any de- sirable hexibility.
 The publishers understand quite well the situation of the mills. This is evidenced in the renewal of the 1928 newsprint contracts for the price 1927. Certainly this is an indication that the publishers not sekng Ia ridculously low price paper based on suicidal competition among the mills, but seeking to find stability in the newsprint market. At S65 ton the mills in serious straits, ac- cording to statement by men prominently iden- tifed with the newsprint industry. although the margin is small and another S5 per ton would help out materially.
 What the future has in store can only be pre- dicted, with mans prediction good as the next. About the only safe statement that can be made is that the war is still showing tremend- ous effects throughout the world, and until sthat postwar effect is entirely eliminated smooth and rosy road be hoped for.