Milan International Exhibition, 1906.— The Chairman of the Manufacturers' Section of the London Chamber of Commerce, Mr. Arthur Serena, Hon. Executive Commissioner of the British Section of the Milan Exhibition, 1906, wrote, under date October 4th last, asking the co-operation of this Association. A circular letter dated October 26th last, was sent to all members, asking whether they would be willing to send in samples, and thus assist in making a joint exhibition in the name of the Papermakers' Association. Your Council have decided, owing to the few replies received and the little interest in the exhibition taken by members, to take no further steps in the

matter.

Rosin Market.-The year 1905 has been an eventful and puzzling one in the rosin market. It has seen the highest prices reached since the American civil war. The disputes between the rival interests in the United States, reached an acute stage in November; and after violent fluctuations, a modus vivendi appears to have been attained early in December, since which prices have risen rapidly. The low grades have generally been in short supply, and active demand during 1905. The pale grades of American have fluctuated less wildly. The import of American pale rosin in the United Kingdom has greatly fallen off, and French has very largely taken the place. Spanish rosin has also been imported in increasing quantities. The total imports of rosin into Great Britain were :

90,624 92,917 84,538 90,402 80,531

German Paper Industry and Export Trade.-Under this heading extracts appear from the report supplied by Sir W. Ward, C.V.O., Consul-General at Hamburg, to the Foreign Office. This report has already appeared in the pages of the World's Paper Trade Review. Of particular interest to British papermakers is the existence of a powerful syndicate of the "news" mills in Germany. Formed in 1900, a further agreement has been entered into to continue operations until 1910. Arrangements have been made to greatly increase production. What seriously affects the British papermaker is the arrangement that "whenever a falling off sets in as regards the home demand, and production cannot be restricted, to export the surplus output to foreign markets. The price at which printing paper is offered for export under such conditions is, as a rule, from 10 to 15 per cent. less than the home trade price."

State of Trade.-The continued increase in the price of raw material, especially of wood pulp and rosin, has been a very serious matter to British paper mills, as makers have not been able to establish a general advance in the price of paper to compensate for the rise. The imports for the year 1905 show an increase of £240,719 over 1901, whilst

the exports have increased during the same period by only £57,095. These figures clearly show that the paper industry in this country is suffering from foreign competition. The evidence afforded by the above-quoted report of H.M. Consul-General at Hamburg, together with the fact that several new paper machines have been recently erected in Scandinavia, indicate that this competition is more likely to increase than to diminish in the immediate future.

Rating of Machinery.-The recent decision as to the rating of machinery given by the House of Lords, in the appeal of Thomas Kirby v. the Assessment Committee of the Hunslet Union, Monday, 18th December, 1905, has placed it beyond doubt that, in the opinion of the judges constituting that Court, whose decision is final, local authorities have the power when assessing any buildings used for manufacturing purposes to take into consideration the capital value of the machinery present in such building for rateable purposes. The judgment of the Earl of Halsbury, Lord Chancellor, is given, which sets out that, in his opinion, the judgment appealed against is perfectly right. The report points out that the inequality of assessment conditions which prevails, and the pressure to which the English manufacturer is liable to be subjected to, does not affect his Scottish fellow manufacturer. The Royal Commission on Local Taxation in their report (1901) advised that:-"The value of any machinery or plant used in or on the hereditament for producing or transmitting first motive power, or for heating or lighting the hereditament," should only be taken into account in the assessment. The Scottish members practically embodied this recom mendation in a Bill, which passed through Parliament and received the Royal Assent, Session 1904. Consequently in Scotland moveable machinery is exempt from assessment for rateable purposes. The only course now left in the interests of manufacturers is for a Bill to be promoted in the next Session of Parliament on the same lines as the Scottish Bill, by which machinery is exempt from assessment for rateable purposes.

Attendances. The attendance of the Council, Committees, and Sub-Committees at meetings during 1905 is as follows:-

Accounts.-The expenditure during the year ending December, 31st, 1905, amounts to £359 15s. 11 d., leaving a balance of £124 7s. 14d. (including £42 12s. 7d. brought forward from last account). The income from annual subscriptions is £416 8s. The accounts have been duly audited, and the books are open to the inspection of members.

Statistics. - Following the report is a valuable compilation of statistics showing the countries supplying paper and papermaking materials to the United Kingdom and the markets for British paper, etc. The exports of paper, under classified headings, are shown from Great Britain and competing countries to the Australian Commonwealth, British India, Ceylon, Cape Colony, Egypt, Japan, New Zealand, Natal, Straits Settlements, and the Transvaal.

Relations of Employers and Employees.

Mr. T. Y. NUTTALL said there were one or two criticisms of the Annual Report he wanted to make, but to show that he had no ill feeling he would formally move that it be accepted. Members had copies of the Report in their hands, and he asked them to look at page 4 and the last paragraph but one referring to the Workmen's Compensation Acts, 1897, 1900. He submitted that the paragraph was not in the proper spirit in which the Association should approach a matter of this sort. If they wished to maintain a good Association of employing papermakers they should not approach questions of this sort in a spirit of opposition and antagonism. He suggested that it would have been a much better wording of this clause to say, "Your Council will favourably consider and watch in a friendly spirit any legislation that may propose to alter present conditions." To his mind that would be a much more reasonable and milder attitude to take up. He asked them now to turn to page 9 and the last paragraph but two, where it stated that the increased import figures for 1905 over 1904 "clearely show that the paper industry in this country is suffering from

"Foreign Competition.”

(Mr. Nuttall) submitted it did not ve anything of the sort. They might

as well say that these figures proved that it would be Friday to morrow as to say that they proved that the paper trade of this country was suffering. He maintained with confidence that there were no signs that the paper trade of this country was suffering. He did not like this report to go to Scandinavia and the United States and their competitors abroad generally, to show them that we were hauling down the flag and that if the competition continued much longer we should be cut out of it. That was not the fact, and an Association of this sort should speak the truth and report the facts as they were. He suggested a better wording would be to say that "the imports for the year show an increase of £240,719 over 1904, making a total of whilst the exports show an increase of £57,095 over 1904, making a total of These figures prove, not that the paper trade is suffering, but that the consumption of paper in this country is continuing to grow.' That was all it did prove. Then he suggested that they could and should say that the greater part of the increase in the consumption of paper was supplied from foreign sources, but signs were not wanting that the British paper trade had enjoyed prosperity during the past year. This, it appeared to him, would be more in accordance with the spirit and determination of the British papermaker to meet the foreigner and to do his best to compete with him successfully. There were one or two other very slight alterations he wished to suggest. He would not waste time in referring to a suggested alteration on page 12, as Mr. Albert Reed was going to make a motion on that point. Subject to it being understood that the amendments he had suggested should be sent abroad wherever the Report went, or at any rate a report of the proceedings, he had great pleasure in moving that the Report be adopted.

Mr. LEWIS EVANS said he would second the motion. He would like to explain that there were no sort of difference between the feelings of the Northern and Southern Committees. The difficulty arose in this way: the Report was first drafted up by the Secretary and submitted to the Southern Committee. They cut it about a good deal, and then passed it on to the Northern Committee for final revision. Owing to an accident a revised copy was not received in London until the previous Saturday, and it was quite impossible then that any advantage could be taken of the recommendations from the North.

Mr. GEORGE CHATER, referring to the observations of Mr. Nuttall with regard to page 4 of the Report, said his name appeared on the Report as the late Chairman of the Committee, who signed the proof that was sent to Manchester. It did not occur to him that the language implied any animosity to the workmen. He saw it might appear so now after consideration, but it did not strike him so at the time. Mr. Nuttall suggested that they should word it "watch and approach in a friendly spirit any legislation that may propose to alter present conditions." Of course that was what they would do. (Hear, hear.) The paper trade had not, and he

hoped it never would, suffer from animosity between master and man. It was a small trade and had always been carried on with friendly relationships, and he hoped that would long continue. He would like to say that there was no intention on the part of the secretary who drafted the Report to introduce an antagonistic spirit, and it did not occur to him, and he would be sorry to let it be thought, that they were antagonistic to their workmen.

Some discussion ensued as to whether the amended wording of the paragraph referring to the Workmen's Compensation Act should be pasted in the Report as an appendix, or a new Report be issued embodying the amendment.

Mr. THOMAS eventually moved that there be printed an appendix to the Report, gummed on the back and members be asked to stick it in.

Income Tax and Depreciation of

Machinery.

Mr. NUTTALL, however, agreed to add that to his motion adopting the Report. With regard to the question of Income-tax referred to on page 4 of the Report, he said that matter was still in the hands of a small committee. They had had a meeting with the authorities at Somerset House on this very important question of the proper rebate to be allowed for depreciation of machinery, and he thought, and Mr. Skelton would agree with him, he believed, that it would be likely to lead to a practical result. Every papermaker would then be allowed 7 per cent. Half the mills in the North of England had been treated in that way, and as a result of that interview he had been able to put it before his own assessor, and he at once allowed 7 per cent., which he had never done before. He felt sure they would have an official intimation that the paper trade, working night and day, was entitled to claim and could get from every assessor 71⁄2 per cent. depreciation on his machinery. The Income-tax people would allow them 7 per cent. on the actual costs and not on the book costs.

Mr. LEWIS EVANS seconded the motion, which was carried.

Trade Customs.-A Complaint.

Mr. J. DIXON said the first remark he would like to make was to assure the company present that the resolution of Mr. Nuttall's which they had just carried was a sort of compromise which the Northern Committee after discussion had agreed upon. Another matter he would like to refer to was with regard to the question of trade customs on page 5 of the Report. He thought they ought to have added to that their hope that the amended code might be of benefit to newspaper proprietors, as well as papermakers and stationers. The very first condition of the papermakers' contract for news said that the actual gross weight, including wrappers and string, was to be invoiced. It would be very unjust to everyone of the people they were doing business with if one man carried out the code of trade customs

and another did not. If one newspaper proprietor, knowing that these were trade customs and conditions of the trade that should be carried out, loyally agreed to them, signed an agreement and abided by it, it was unfair that another one should have undue advantage by getting other papermakers to make allowances for these. During the previous two days he had had the misfortune to have to sue one of his friends for wrappers, string and core, included in the weight. His customer declined to pay for them, and he declined to deduct from his account certain claims for damage in transit. One of the conditions of the contract provided that damage in transit must be based on the paper being returned to the mill, and on reasonable notice being given to the mill that such damage had taken place. His friend was sued because he failed to give him proper notice that this damage had occurred, and his customer deducted a very serious sum from his account for damage in transit. He declined absolutely to make an allowance for the one or the other. He had to sue him in the City of London Court, and he had spent three hours in the witness-box proving his case that he was bound to pay. It was giving his customer a very serious lesson, costing him a heavy sum, and he (Mr. Dixon) had won the case hands down. (Applause.) He hoped all of them would abide by these conditions. If they were not going to do so, let them cast them on the floor and say they would not have any. In the case he had referred to, an independent newspaper came into the witness-box and swore, as did some of his friends in the paper trade, that they made allowances-they dare never chargefor wrappers, string and core, and that they allowed for all damages. If that was the way they were carrying on their business, God help them. He asked them as friends in the same business as himself, to loyally abide by the conditions of this code. Let them reduce their prices if they liked, but let them consistently abide by the rules of their Association. (Hear, hear.) He had a contract for thousands of tons of paper in his hand, that had been signed, sealed and delivered, and the first condition was that the actual cost of the wrappers, string and core be invoiced and paid for. He might be giving the paper away, but he didn't mind that if he was loyally abiding by the rules of the Association.

Rating of Machinery.

Mr. A. REED said with reference to the third paragraph on page 12 of the Report, as to bringing the law of this country into line with Scotland on the subject of the rating of machinery, English papermakers felt it was not fair that the conditions of rating in this country should be different to those in Scotland, especially when it happened that the conditions were altogether against the papermaker. The custom had been very irregular for some years past. Some mills in this country were simply rated as property, whether as walls, land, or buildings; but in some cases where the motive power was water, steam engines, or other