GREAT INCREASE IN PAPER PRICES

Dominion, Volume 9, Issue 2762, 4 May 1916, Page 6

GREAT INCREASE IN PAPER PRICES

UNPRECEDENTED CONDITIONS IN

THE INDUSTRY

WAR AFFECTS SUPPLY OF RAW MATERIALS

.- 1 Recent American newspapers to hand throw light'on the state of the paper industry, tho effects of which are being seriously i'elt by newspaper proprietors and others in Mew Zealand to-day. Tho Boston "Transoript" of "March 14 covers tho situation very well in the following article from. ils,.New. York correspondent:— * ■- Now York, March 14—Conditions ill tho paper industry are-unprecedented. Domestic requirements have never been so large and tho export movement is the biggest ever known. Reserve stocks are practically exhausted, deliveries being made faster than paper can be produced. In explanation of tho increased domestic requirement, it is pointed out thafc : this is a, natural consequence of general business' prosperity. Purchases have increased and moro wrapping paper is needed. Newspapers report a growing circulation. J.t is estimated that consumption of news print has risen 20 per cent, as compared with beforo tho war; production only 10 per cent. Exports to South America and other countries formerly supplied by Europo havo increased to a greater extent than exports, to Europe havo declined, it is said.

Tho supply of practically all Taw .materials is abnormally low, insufficient even for ordinal 1 } - -requirements, and other influences operate to restrict production. • • . •Prices have • advanced to unhearckif levels since the war opened. Quotations have in many' instances been withdrawn, not only by small firms, but by tho largest manufacturers in' t'he'country. No matter how high the pricc, kreje orders arc being refused because of inability to fill them. - Tho greatest expansion, in demand has occurred recently. and manufacturers'under contract have been unable to take advantage of it, while being forced to pay more for their raw materials. Netfs print, wrapping paper, writing paper, book paper,, coated paper, and other varieties are equally affccted. A slight 1 decline in demand during tho summer months is expected in some lines, but not sufficient to improvo the situation materially. Manufacturers who arc not bound by. contract can obtain virtually any price they ask. They are in command of the market. The demand for paper exists and must be filled so far as is possible. Quotations change from day to day, and houses that take orders frequently stipulate that they .will not. guarantee to deliver all that is called tor. Many refuse to quote any prices, while -some hayo'been forced to close bccanse of lack of raw materials. 'Jlieso assertions wero made by tho manufacturers themselves. . ,

The writing paper manufacturers of thn United States. never before —not even during the- period of thn Civil War—faced conditions comparablo with those which now confront them. Hithsrto stable foundations have been on tho move, and that is why it has become .impossible for the mills to guarantee prices, i Since a year ago prices on some of the factors entering into the niaking of fine papers have advanced as follow:— Rags—From 50 per cent, to 400 per cent. Bleaching Powder—looo per cent. Alum—3oo per cent. Sizing Material —Over 100 per cent. Sulphite Pulp—2oo per cent, to 250 per cent. Labour —10 per cent. Felts, Wires, and General Supplie-s-An average of i:,t" least 50 per ccnt. The sales of f:no. writing papers in this country last year amounted to 26,000,'0Q0 dollars, '.and in .this 'Production Western Massachusetts had its lame part. ; Tho dyestuff shortage, constitutes a serious problem which tho ,paper men must face, and paper is now being turned out without the aid of colouring material where it was formerly used. Prices of paper and raw materials hnvo advanced as follow,, sinco tho beginning of the wai;, according to estimates of paper manufacturers:— Nows Print —No nrice established. Contracts call for ; 2dol. 35c. to 2dol. GOe. per 100 pounds, f.o.b. mill, against 2dol. to 2dol. 2c. delivered before the war. Wrapping Paper, base grade.' 50 ner cent.: '50c. per - 100 pounds, against 2d01.' 25c. to'2dol. 60c. before war. Craft Paper—loo per cent, advance. Coated Papers—oo ner cent, advance. Rook' papers—3o-100 per cent, advance. Writing per cent, advance.