Business: Battered Pulp

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Canada's great pulp companies were truly vexed last week at impish Lord Beaverbrook. When he acquired a dominant interest last June in the venerable firm of Price Bros., Canada's fourth biggest newsprint maker. Lord Beaverbrook said the firm would remain proudly independent. This was a blow to the other companies, whose pet project and apparent salvation is a huge all-embracing merger. Last week Lord Beaverbrook's disregard of a community of interest became clearer when he abruptly, unexpectedly cut the price of newsprint from $53 to $47.50 a ton, a figure at which no concern can make money. Pulp leaders feared retaliating cuts, further demoralization of the industry, postponement of merger plans. The reason given for the move by Price Bros, was that small firms, desperate for cash, are selling newsprint at that price, that big companies have made private concessions.

Other pulp disturbances during the fortnight included the appointment of a receiver for Abitibi Power & Paper; a report from International Paper & Power which showed $1,856,000 loss in the second quarter against a $1,013,000 profit in the same period of 1931. Foreign competition has become intense. Swedish and Norwegian newsprint were offered in New York City and Norfolk at $37 and $40.50. Finnish newsprint at San Francisco for as low as $33.