unbleached and constitutes a much larger percentage of total production.

1

Table 58.-Wood pulp: Unbleached and bleached sulphite produced in the United States for consumption 1 and for sale, including exportation, as reported in Census of Manufactures for specified years

Pulp made and consumed in the same plants or transferred to and consumed in other plants operated by the same companies.

Source: Census of Manufactures.

Table 59 shows for each of the four producing regions and for the years 1931, 1933, and 1935 the approximate quantities of unbleached and bleached sulphite pulp used by paper and board mills integrated with the producing pulp mills, the quantities shipped to separate but affiliated converting mills, and the quantities sold.27

27 The table is based mainly upon data obtained from pulp producers by the Commission, but adjustments have been made in some of the figures to take account of the production of mills from which data were not obtained. The figures shown for amounts sold and transferred to affiliates in 1931 and 1933 are the sums of amounts actually reported by the pulp mills as having been so disposed of. It is believed that the figures given for such amounts cover nearly all the sulphite pulp sold or transferred to affiliates in those years since the mills not reporting to the Commission were integrated pulp and paper mills. Further, since the mills not reporting were located in the Northeastern and Lake and Central regions, the adjustments were made in the figures for pulp used by producing mills in these 2 regions. Some of the pulp produced by these mills may have been sold or transferred to affiliates, however, and, therefore, the figures given may somewhat understate the sales and transfers to affiliates in these 2 regions.

The figures given in this and succeeding tables respecting pulp used, sold, or other wise disposed of do not agree precisely with those in table 57 which relate to quantities of pulp produced during respective periods, the difference being due to inventories or stocks on hand. Partly for the same reason, but in greater degree because of the factors set forth in footnote 5, p. 68, the figures for total production do not agree with those published by the Bureau of the Census and shown in tables 54 and 58. It will be noticed that the census figures for production for sale shown in table 58 exceed those shown in table 59 for pulp sold in both years 1931 and 1933. The discrepancies are probably due chiefly to the transfer of some pulp by pulp mills to affiliated paper or board mills but reported to the Bureau of the Census as produced for sale. In the Commission's tabulations only shipments to pulp mills entirely independent of the producing mills have been classified as sold.

The figures shown for the full year 1935 were arrived at by increasing the 9-month figures one-third and correlating the result thus obtained with the total production for each region of all kinds of pulp as indicated by census data. In the case of the Pacific coast and Southern regions the result obtained by increasing the 9-month figures by one-third required very little further adjustment. For the Northeastern and Lake and Central regions substantial adjustments were necessary to account for the pulp produced by mills from which data were not received. These latter adjustments were made on the basis of total sulphite production reported by the census for the full year.

TABLE 59.-Wood pulp: Disposition of unbleached and bleached sulphite produced in each region

Source: Data obtained by the U. S. Tariff Commission in this investigation. Adjusted to reflect production of mills for which production data were not reported to the Commission in the Northeastern and Lake and Central regions, and in 1935 to reflect year's total (see footnote p. 68). Adjustments made to figures "used by producing mill."

In the 3 years shown in table 59 (1931, 1933, and 1935) taken together, the conversion of sulphite pulp, unbleached and bleached combined, in integrated pulp and paper operations accounted_for about two-thirds of the total domestic production of sulphite. Conversions in integrated operations predominate, especially in the instance of unbleached sulphite, the proportions so converted ranging from 72 to 80 percent, whereas the corresponding figures for bleached sulphite ranged from 51 to 58 percent. In spite of the extensive affiliations between pulp and paper mills, the quantity of sulphite pulp shipped to affiliated but not to integrated paper mills is only a small fraction of the total, the bulk of the shipments from the producing mills being either exported or sold to unaffiliated mills in this country.

The Northeastern and Pacific coast regions not only lead in total production of sulphite but are the only regions in which there is any

considerable production for sale. In the Northeastern region the sales are substantially confined to bleached sulphite, but in the Pacific coast region there are also large sales of unbleached. In the Northeastern region well over half of the total production, even of bleached pulp, is consumed by the producing mill, but in the Pacific coast region, although over half of the unbleached is so used, the quantity of bleached sulphite used by the producing mill is much less than the quantity sold.

In the Lake and Central region and in the Southern region the great bulk of the sulphite pulp produced is used by the producing mill in integrated operations. It is noteworthy that in both these regions the quantity shipped to affiliated but not integrated mills is greater, in the case of bleached pulp, than the quantity sold to unaffiliated mills. A large new mill on the Pacific coast began operations in 1936. This mill produces only unbleached sulphite for sale. Unquestionably, therefore, the proportion of the Pacific coast output of unbleached sulphite which is produced for sale has become considerably larger than appears from table 59, and even for the country as a whole the proportion has been increased somewhat. There has also been a considerable addition since 1935 to the capacity of mills on the Pacific coast producing bleached sulphite for sale. However, these developments still leave integrated paper mills much the most important outlet for domestic sulphite production as a whole.

The Pacific coast region supplies the bulk of the sulphite of domestic origin that is sold as pulp, accounting for over 70 percent of all sales of unbleached sulphite and about 65 percent of those of bleached sulphite. The sales of bleached sulphite by mills in the Pacific coast region have been from two to three times as great as their sales of unbleached.

The domestic sulphite pulp sold is produced chiefly by mills which have no integrated paper or board plants. However, some sulphite mills that produce pulp mainly for use in integrated converting plants also sell part of their output. About 17 percent of the total domestic sulphite pulp sold in recent years was produced by integrated mills.

EXPORTS

In the United States official statistics, exports of wood pulp are reported under three classifications: "sulphite wood pulp", "soda wood pulp", and "other wood pulp." Information obtained by the Commission indicates that during the period covered by the investigation exports reported in the official trade returns as "other wood pulp" consisted almost entirely of sulphite. The shipments of sulphite to export markets reported directly to the Commission by pulp mills in fact exceeded the exports of both sulphite and other wood pulp combined as reported in Commerce and Navigation in 1933. This may have been due to the fact that some of the shipments reported to the Commission for that year were included in the Commerce and Navigation data for the following year. The only shipments of pulp to export markets reported to the Commission were of sulphite and soda pulp and a small amount of screenings. It is probable, therefore, that some exports of sulphite were reported in the official trade returns as "other wood pulp" because of the lack of information as to the kind on the export declarations, and that the official figures for exports of "sulphite" and "other wood pulp" combined are more nearly indicative

of United States export trade in sulphite pulp than are the official figures for exports of sulphite alone. Table 60, therefore, gives the quantity, value, and average unit value of the two export classifications combined, as reported in Commerce and Navigation.

TABLE 60.-Wood pulp: Domestic exports of sulphite pulp 1 to principal markets

1 Includes exports classified as "other wood pulp."

Source: Foreign Commerce and Navigation of the United States.

Japan, especially in the last few years, has been by far the most important market for exports of sulphite pulp. Exports to all other countries in the past decade have amounted to from 23,000 to 40,000 tons annually. Exports to Japan during the same period increased from a small fraction to about four-fifths of the total, and in 1936 amounted to about 164,000 tons. The export trade in sulphite to Japan, and to a less extent to other countries, has been closely related to the development of the pulp industry in the Pacific coast region, and more especially to the development of the production of rayon grade pulp in that area. About nine-tenths of the total sulphite pulp exported, and practically all of such pulp going to Japan, is shipped by West coast mills.28

28 Additional information on the export trade in sulphite pulp is given in connection with the analysis of the distribution of the production of the various regions between domestic and foreign markets.

It is probable that Pacific coast mills have an advantage over European mills in transportation costs to the Far Eastern markets, but definite information is not available. Mills on the West coast have an advantage in such costs over mills in the eastern part of the United States. This is due chiefly to the inland location of the eastern mills with consequent greater freight costs to port of loading, since there is only a slight variation in the ocean rates. Since October 1936 ocean rates per ton of 2,000 pounds from primary West coast ports have been $3.75 to Japanese ports and $4.25 to Shanghai for wood pulp other than rayon pulp, and $4 and $4.50 per ton, respectively, for rayon pulp.29 The rates from Atlantic and Gulf ports since January 1, 1936, have been $4 per ton to Japanese ports and $4.50 per ton to Shanghai. No separate classification of rates from Atlantic ports is shown for rayon pulp. Eastern mills that might export are subject to a substantial freight cost to port of loading, such costs from typical points ranging from $3.70 to $5 per ton. Some West coast mills also incur costs from the mill to the loading port, the lighterage or freight in the case of mills regularly incurring them ranging from about $1.30 to $2.10 per ton or slightly higher. Also some of the West coast mills which are not located at primary ports must comply with certain minimum requirements in order to obtain the above ocean rates. When these requirements cannot be met, it may be necessary to transfer the pulp to a primary port.

However, the predominance of the West coast in exports is due not so much to the transportation advantages which Pacific coast mills enjoy in shipping to Far Eastern markets as to the fact that a much greater part of the pulp there is produced by nonintegrated mills for sale in open markets, and that the smaller quantities produced for sale by eastern mills may be more advantageously disposed of in the large pulp markets in the eastern part of the United States.

DOMESTIC AND FOREIGN OUTLETS FOR THE SULPHITE PULP PRODUCED IN DIFFERENT REGIONS

Tables 61 to 64 show for the sulphite pulp produced in each of the main producing regions the distribution between the main domestic consuming areas and the export market. In these tables the figures given for pulp used in integrated pulp and paper operations are, of course, the same as those shown in table 59, but with respect to the pulp sold and transferred to affiliates by producing mills, the totals shown in table 59 have been broken down in order to show the quantities that go to the various domestic consuming regions and to foreign markets.30 The main points of additional information contained in the tables are summarized in the following paragraphs together with references to the grades of pulp represented in the various movements. In the case of the Northeastern and Lake and Central regions,

29 These rates apply to pulp condensed to not over 50 cubic feet per ton of 2,000 pounds. For pulp measur ing over 50 cubic feet per ton the contract rates are $0.25 per ton more. Noncontract rates are $3 per ton higher than contract rates.

30 The data shown in tables 61 to 64 are, like those given in table 59, based on information supplied by pulp mills to the Commission and some of the figures have been adjusted as descriped on p. 68.

In view of the small quantities of unbleached sulphite shipped by domestic mills, the opening of a large unbleached sulphite mill on the Pacific coast in 1936 has doubtless resulted in a larger proportional increase in the shipments of such pulp at the present time over the quantities shipped during the period covered by reports to the Commission. Also, in view of the small quantities of sulphite pulp shipped by reporting mills in the Northeastern and Lake and Central regions, shipments by mills in these regions not reporting to the Commission might be large relative to the figures for shipments by these regions. The sales of such mills are probably not large, however, since all of them are integrated pulp and paper mills.