Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-19
Canadian News Print
Industry in Difficulty
BY HARDEN CoLFAx.

Announcement this week Of the
merger of a number of the largest and
most influential Canadian news print
companies calls attention TO situation
in the world paper industry which Is
not without its effect on American In
terests. The troubles of the Canadian
news print industry, which Is second
of what Is going to happen in the in
dustry in the United States. Paper is
used so universally and is relatively so
cheap that the demand for 1t does not
f1uctuate greatly. Overproduction, with
out an understanding of markets, Is ad-
mittedly its chief danger.
One of the concerns involved in the
merger, which has large holdings and
business in Minnesota and Ontario, is
now in the hands of receivers Its de-
clared policy Of endeavoring to secure
orders at any price, even at loss, is
an indication of the condition to which
the entire paper industry has been re-
duced by that economic nlalady over
production.
According to a member of the On
tario Parliament, the interests involved
In the deal recently consummated ag-
producers but also banks in Canada are
endeavoring. to make the merger sue
cess. The largest corporation involved
represents one-f1fth of Canada's total
news print capacity and holds some OF
the largest world news print contracts.
The president of this company gives
1t as his opinion that the news print in
duStry OF the entire Western World is
now operating at a Scanty IS per cent
OF capacity. Generally speaking, he
says, thespaper industry has been over
built and overcapitalized, and there
seems to be no adequate understanding
among its leaders as to their common
welfare. It seems to be the general
opinion that there are too many COM
petitivs paper lines being pushed now,
most OF them approximately equal in
quality. In fact, for years the paper
industry OF Canada as well as that of
the United States has been overbuilt
and 1t has become the practice to force
markets by acquiring controlling inter-
estS in publications, which need sup
plies at regular intervals. Canadian
paper interests own print mills in the
United States and American concerns,
in their turn, control plants in the
Dominion.
The position of the United States and
Canada in the world production of
news print paper IS forcefully told in
figures. Last year the world produced,
accorong 10 OmclaI ngureS, just under
100000 tons, of which the share of
Canada and the United States was close
to 100000, or more than half. Next
in order was Great Britain, followed
by Germany, Newfoundland, Japan.
France and the three Scandinavian
countries. According to the Paper Dr.
vision Of the Department of Commerce,
world production of news print paper in
1880 was approximately $4,000 tons,
or w per cent, less than in 1929.
There were decreases of 225, 900 tons
in Canada and 10000 tons in the
United States, of 10000 tons in Great
Britain, of $4,000 tons in Sweden and
OF nearly $4,000 tons in Germany.
There were increases in Newfoundland.
France and Norway and, apparently, a
considerable quantity in Russia, but no
satisfactory figures are available from
that country
(CopyriRl1t 1917