The news print situation is now the livest subject among the trade and
the seriousness of conditions is being brought home to publishers as
never before. The mills are not as alleged by some responsible for it
all. While the war is unjustly charged with many ills in the way of
trade disturbances, to attribute the present state of affairs entirely
to the hostilities in Europe is quite correct, so far as Canada is
concerned. Hundreds of men have joined the colors leaving most of the
plants short of help and owing to abnormal demand and the embargoes
which prevail, abroad--all due to the war,--there is not enough of that
very necessity commodity--white paper--to go around. This in brief is,
the exact state of affairs. In the past Canadian mills were looking
for a market for their surplus product and were glad to make contracts
covering a long period of time. News print was looked upon as staple
and the variation in price from year to year was small indeed. Now the
manufacturers do not know which way to turn. They could sell as much
again as they are marketing if they had the productive facilities but
of late months they have not been able to “pile up reserves”, as the
banks state, and the stocks on hand are rapidly diminishing.
The average publisher has read a great deal about this condition of
affairs but as there have been so many extravagant reports in all lines
prevailing during this stirring period, he did not think there was
much truth in the statement. It was only when the newspaper men tried
to renew contracts that he realized for the first time he was face to
face with a situation such as he has never been up against. There is
no use blaming it on the mills. They have done the best they could
under most trying circumstances. They are running their plants to full
capacity and they have not unduly taken advantage of the situation to
boost prices in Canada. The increase asked is infinitesimal to what the
makers can obtain for their product on the other side.
The story is going the rounds, and so far has not been denied, that one
of the big new plants of Canada was approached by American interests
who offered to take the whole of its output for the coming year at four
and a half one cents at the mill but the proposition flattering as it
was, was turned down as the firm would not under any circumstances
break faith with Canadian customers. Some sixty per cent. of the large
newspapers whose contracts are now being carried until the end of the
year and will have to be renewed are on the anxious seat.
A special meeting of the Canadian Press Association was held in
Toronto last week at which there was a large attendance. The situation
was thoroughly gone into. The statement was made that the output in
Canada is now some eighteen hundred tons a day, yet only one sixth is
consumed in the Dominion, the bulk of the product being exported to
the United States. A deputation was sent to Ottawa to interview the
Minister of Finance, Sir Thomas White. There representatives of the
pulp and paper interest were also assembled and the whole situation
was gone thoroughly into. The result was that an offer was made by the
news print makers of three cents, f.o.b. mill. This applies to large
contracts and on smaller the figures may be higher. It was pointed
out by the paper manufacturers, that everything entering into the
production of news print has gone up from 25 to four hundred per cent.
and that labor has advanced about twenty-five per cent.
The upshot of the whole matter is that the newspaper publishers and
the mill operators have appointed such committees which who will go
exhaustively into the problem. A joint meeting will be held at an early
date before R. W. Breadner, who is the tariff expert for the Dominion
and the question of supply, cost and future outlook will be canvassed
thoroughly. This meeting will be held in Ottawa and if an amicable
arrangement cannot be reached, the federal authorities may fix the
selling price.
One interesting statement was made at the conference and that was
if the fifty to sixty per cent. increase went into effect on new
contracts, it would mean an annual extra cost to Canadian newspapers
of about two million dollars. One peculiar feature is that while
publishers are talking of increased cost of producing papers the
weekly newspaper men are the only ones who have so far raised their
subscription rates. The increase is from one dollar to one dollar and
half a year. A few dailies that have been selling at three dollars in
the smaller cities have jumped their subscription price to four dollars
but the larger dailies still continued to be delivered at the old price
and the wonder is why the proprietors do not raise the figure for same.
In the book and writing line prices are stiff and are now fully fifty
per cent. higher than they were a year ago. The producers think there
will be no further raise for some months and in view of abnormal
conditions generally the users of these kinds of papers appear to be
satisfied that the mills are not asking too much. Tissue plants are
running away behind in orders and have business enough on hand to keep
them going for the next four months even if no more orders were placed
with them. The jobbers report that business is good and the demand for
all lines of paper keeps up well. There has been an advance on “B”
manilla but other lines of wrappings and kraft remain unchanged.
Ground wood pulp is in strong requisition and many inquiries for the
commodity can not be bought filled. The price now quoted at the mill is
from twenty-eight dollars up and some deliveries in Wisconsin and other
states have brought as high as thirty-five dollars. Easy bleaching
sulphite is now sold at one hundred and twenty dollars at the mill and
some large business has been placed at this figure. Sulphate pulp
is quoted at one hundred and twenty dollars at the mill and is going
higher all the time. Very little is being offered.
In the rag and paper stock market manilla, krafts, whites and mixed
papers are all in strong demand and there is a good business being
done. The market for cotton and roofing rags is rather quiet. The
outlook for fall trade at firm prices is most promising.
There has been an increase of a cent a pound on all natural, bleached
and half bleached grease proof. Genuine vegetable parchment is now
quoted from twenty to twenty-five cents. It is likely that the latter
will be made in Ontario before very long. Since the war broke out and
certain mills turned their attention to making specialties and former
brands of paper that have been imported, the manufacturers of these
are not sorry that they took the step. Their goods now have achieved a
fixed place in the favor of customers.
Board of all kinds has taken a jump of about fifteen per cent. and
the mills are a way behind in their orders. The following prices will
prevail until the end of the year and are based on the minimum quantity
of car load lots--grey folding pulp board $100; folding pulp $90; pulp
non bending $80; pulp non bending lined on side $90; filled board plain
$80; filled board lined one side $85; filled board (chip mills) $78;
jute, chip, straw and straw chip $70; same lined one side $75.
The following are the Toronto prices:
Paper.
News (rolls) $3.00 up, at mill, in carload lots.
News (sheets), $3.25 and higher for small lots, at mill,
in carload lots.
Book papers (carload), No. 3, $7.00.
Book papers (ton lots), No. 3, 7.00c to 8.00c.
Book papers (carload), No. 2, 8.50c to 9.00c.
Book papers (ton lots), No. 2, 8.75c to 9.50c.
Book papers (carload), No. 1, 9.00c to 9.75c.
Book papers (ton lots), No. 1, 9.25c to 10.00c.
Sulphite bonds, 11 cents up.
Writings, 9 cents up.
Grey Browns $3.75 to $4.25
Fibre $6.50 to $7.50
Manila, No. 1 $7.00 to $8.00
Manila, B. $5.00 to $6.00
Unglazed Kraft $8.50 to $9.50
Glazed Kraft $9.00 to 10.00
Tissues, bleached $1.60 to $2.30
Tissues, (manila or white sulphite) $1.20 to $1.60
Tissues, cap. 80c to $1.15
Natural, greaseproof 13c to 18c
Half Bleached Greaseproof 15c to 19c
Bleached greaseproof 17c to 21c
Genuine Vegetable Parchment 22c to 25c
Drug papers, whites and tints 9c to 12c
Paper bags, Manila 30% discount.
Paper bags, kraft 15% discount.
Confectionery bags 15% discount.
Pulp.
F.O.B. Mill.
Ground woodpulp $31.00 to $32.00
Easy Bleaching Sulphite 6c
Sulphite, news grade 5c to 5½c
Sulphite (bleached) 8c to 8½c
Sulphate 6c