A somewhat serious crisis has arisen here in the relationship between
the newspaper publishers and the news print manufacturers. A few days
ago a meeting of the Canadian Press Association was held in Toronto
at which the whole paper question was thoroughly discussed and a
representative committee delegated to visit Ottawa and register before
the Minister of Finance their protests in regard to the shortage of
paper in Canada, and the mounting prices of the same. In Ottawa they
were met by representatives of the Pulp and Paper Association, and the
whole situation was carefully considered before the Minister and also
by the two organizations as separate bodies.
The newspaper men complained that they were unable to secure new
contracts for any length of time, and that the prices asked for the
supplying of white paper were prohibitive and if paid would mean the
collapse of many newspapers. They urged upon the Government that an
inquiry should be instituted into the cost of manufacturing news print
in Canada and, following that, such steps be taken by the Government
as it should find necessary to safeguard the supply of news print for
Canadian publishers. The publishers suggested to the Government that
either an embargo or export duty be placed on white paper or that the
Government fix a maximum price above which manufacturers would not be
allowed to charge Canadian publishers.
In refutation of the publishers’ statements, the news print
manufacturers pointed out that the attack on the part of the
publishers had come without warning and that they had not consulted
or tried to negotiate with the news print manufacturers. They further
pointed out that the cost of everything entering into the manufacture
of paper had advanced in price, that old trade channels had been upset,
and that there was a great deal of uncertainty regarding the future
cost of paper making materials. The manufacturers agreed to call a
meeting of all their members and thoroughly discuss the matter and
later meet the publishers in a last effort to arrive at a satisfactory
solution. It is understood that the manufacturers are asking an
increase of from 25% to 33% over the figures now prevailing, and if
the publishers do not see their way clear to accept these terms the
manufacturers will then ask for a Government inquiry into the cost
of paper making, feeling satisfied that such an investigation would
vindicate them in the stand they have taken.
There is no doubt but that manufacturers of news print are being
unjustly blamed for a condition of affairs over which they have no
control. They are not arbitrarily increasing the price of white paper.
Everything entering into the manufacture of news print has advanced
in price; labor is scarce and commands higher wages; dye stuffs have
advanced to almost unheard of prices; in copper wire paper men are
competing against munition makers while a similar story can be told
in regard to every ingredient entering in their finished product. In
addition to that a sudden and unprecedented demand resulting from
improvement in business and a presidential election in the United
States has made the consumption of paper exceed production. Further,
the war has interfered with regular channels of trade and has shut-off
the whole of continental Europe from the markets of the world with the
result that publishers who formerly depended on Europe have turned to
Canada and the United States in an effort to have their needs supplied.
The situation is undoubtedly embarrassing and may possibly work
hardships to some publishers, but the whole of the world’s business
fabric is confronted with extraordinary conditions. It is as
unreasonable to blame the manufacturers of news print for the advance
in the cost of white paper, as it would be to blame the bridge builder
or the man who erects skyscrapers for advancing the price of steel. In
the last analysis it is the war which is to blame. The advance in the
cost of news print is not an arbitrary procedure, but rather the result
of world conditions over which the paper makers have no control.