Evening star., 1947-04-16
Canadian Accuses
Press Of Disioriine
Facts on neWsprinf
By me Associated prss.

MONTREAL, April 1e.--R. M
Fowler, president Of the NewsprinI
Association OF Canada. said in .
statement last night that sections
of the Canadian and American pres
recently have carried distorted ane
incomplete reports concerning
newsprint supply. price and dis.
tribution.
Terming 1t extraordinary that thu
criticism about the profits Of news.
print producers should come from
any newspaper publisher" Mr.
Fowler said such publishers seen
to overlook the fact that free anc
prosperous newsprint industry Is
necessary foundation for their owr
enterprises and for the system ir
which they believe"
His statement said that while
Canadian newsprint mills were
making more profits than formerly
they also were making more paper
and American mills had decided te
reduce their production of newsprint
and turn to other products" He
said the Canadian newsprint indus
try was operating at capacity. which
had been increased by the expendi-
ture of large sums to improve op-
Grating efficiency.
Forced to Expand Wood Production
( Canadian mills have been able te
increase production only by "ex-
traordinary efforts" to expand wood
production and this had involved
going farther and farther to OBJ
tain pulpwood," Mr.. Fowler said
He added that both types Of ex-
penditures-in the mills and in the
woods-had expanded because low
prices for newsprint during the de-
preston years before and during the
war had made 1t necessary to defer
needed improvements.
His statement said that almost
every Canadian newsprint manu-
facturer" had been approached with
offers. to pay greatly in excess OF
the market price but such offers had
been refused. Fantastic prices OF
SITS and 5000 per ton on spot sales
Of newsprint are frequently report
ed," Mr.. Fowler said.
The association president said
there was mo known case" of any
small publisher being forced to sus-
pend publication through failure OF
newsprint supply from a Canadian
mill. Canadian producers have
sought, he said, to provide a fair
share of their production to theiI
smaller customers and to many
other publishers, small and large
left stranded" by diversions oi
United States newsprint mills te
other products.
Charges Hoarding by Some Firms.
Mr.. Fowler said that If smaller
users were unable to obtain suff1-
cient supplies for their needs, i,
could only be because other users
were keeping more than their share
Mr.. Fowler said an example O.
distorted reports was recent bulle'
tin of the American Newspaper
Publishers Association. He sale
the entire issue had been devoted
to collection of press reports care.
fully selected to leave the impres.
sion that Canadian newsprint mill.
were making enormous profits ane
were taking advantage OF the pres.
ent paper shortage to get all the
traffic would bear.
He continued: I'm these
press reports no attempt is made
to point out that newsprint sold a,
depression levels during most o1
the war years when prices were
frozen. There Is no reference to
the fact that price adjustments
granted by the Government neal
the end OF the war and after the
war did little more than compen.
safe for increased production costs
and loss Of exchange premium"
The last increase In price of news.
print went into effect April / TO,
several leading companies and 9TH
ers followed. Canadian Interna.
tional led the way with announce.
ment March II of the April in.
crease, raising prices $6 a ton te
the basic figures of s86 in Canada
and $50 in the United States.