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Importance of the Paper IndustryBy Z. T. Kyi

One of the greatest achievements of mankind thaJt has helped nota little [0 bring to light the civilizations of the past was the invention ofpaper. All the dazzlling conque&ts of masters of war combined could notequal paper i!1 importance. It was first made in China at a time whenthe rest of the world was still in darlrness and ignorance. The honor waslater shared by a similar but le~s sensational! discovery in Egypt.

In the upper Nile a plant technically Irnovm as Cyperus Papyrus hadengrossed in no small measure the attention of primitive wanderers. Itwas used for many purposes the most important of which was in ithemanufacture of a species of paper. For this purpose the pith was curtinto strips which were pnaced side by side on a f1aJt surface, and over thelayer thus formed was piled a second layer of strips aJt right angles cothe first. The whole was then pressed and rolled into a sheeJt, to whichthe natural gum of the plant gave a homogeneous character. The sheetwhen dried was ready for use. Artificial! paste was probably employedto bind together the fibres. The sheet when newly prepared was whiteor brownish white in color, but the element of time has converted whatpapyri that have reached the present day into light or dark brown sheets.

Historically speaking, the growth of ancient libraries accelerated inno small degree the development of paper manufacturing which seems tohave greatly progressed under <the patronage of ancient Greeks. It isonly in comparatively recent times that the attention of explorers hasbeen directed toward the Egyptian and Greek processes of paper-making.The greaJt bulk of the enormous mass of papyri unearthed consists ofofficial documents, nevertheless the volumes brought to night bear testi­mony to the progress thaJt the Egyptians and Greeks had made alongthis line.

What the Egyptians had accomplished must not, however, blind usto the great achievement made in China. Her cui'luran contribution tothe world becomes evident when one realizes <that the beginnings of thepaper industry may be traceable to the genuine paper made by theChinese from times immemorial although the word "paper" owes itsderivation to papyrus, a plant that grows in the Nile vaNey of Egypt.Wom the Chinese the paper-making a.rt spread to other races and wasprobably brought to Europe during <the twelfth century at the' time ofthe Second Crusade. About the year 1150 a paper mill made its ap­pearance in Italy which subsequently became the principal! center ofpaper-making. From Italy the art spread to France and Germany.Thanks to a law of France banishing paper makers to England andAmerica, paper mills sprang up in these countries by leaps and bounds.

Up ,to the beginning of the nineteenth century, though machinerywas used to reduce the rags to pullp the formation of the sheet of paperwas done chiefly by hand. The oldest process in vogue was the makingof paper by hand from the inner bark of the so-called paper mulberry.It is of interest not only on account of its an~iquity but because iJt re­presents in outline all other methods, which merely are adaptations ofthe earliest process. A sheet of paper is an artificial!ly felted web of

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396 CHINESE ECONOMIC JOURNAL

vegetable fibre, purified of perishable maJterials so thalt the remainingfibres are more or less pure cellulose. The process may be outlined ascohlecting the raw maJterials, purging them of foreign particles by boilingmRceraJting them to a fine pulp, diluting with water, forming a sheet; o~

a porous surface that the water may drain olI, and drying the sheet thusformed. In Europe the original raw material was linen rags. As theyare too tenacious to be reduced to pulp by hand, the early European IIlillshad them hammered into bits. Then came the discovery of the mOdernbeating engine or Hollander invented by the Dutch in the laJtter part orthe seventeenth century, which revolutioni3ed essentially the process orpaper-making.

Instead of wood or rags, Chinese paper makers use rice straw,bamboo, tree barks, etc. The provinces south of the Yangtsre Riveroccupy a pre-eminent position in the paper-making industry. In fact, asaying goes: Where there is rice or bamboo, there is paper. Generally,Hsuan paper produced e~tensively in the City of Hsuan Cheng, Anhwel,may be chosen Ito represent the first group. The pulp consists of amimure of rice straw and tree bark and the quallity of Hsuan papervaries in direct proportion to the quantity of tree bark pulp added. Inorder to insure an inexhaustible suppay of pulp, tt is not uncommon forpaper makers to grow trees for no other reason than to peel bark fromtheir branches which are usually felled in winter. When subjected toboiling, the bark is quickly reduced to a paper-making pulp. Paper madefrom bamboo is extensively used, ranging from the finest writingmateriall to the coarsest wrapping paper. Bamboo grows in abundancein Central China, forming beautiful groves. In April lit begins to growand must be CUlt by the beginning of June. The young bamboo is prunedof its branches and made into bundles before it is immersed in vats torot. Following a process of maceraJtion, the bamboo stalks are removedfrom the concrete ponds to be cut into chips. Upon the macerated stemsare sprinkled solutions containing lime and alkalli. And it takes twomonths to complete the process of rotting. When the fibrous solutionis washed of its lime and salts, it is dumped int·o a concrete reservoIr.The mass is not ready for conversion into paper until it is reduced to apulp with rakes after vigorous heating. To add cohesive quality to thepullp so made, mucilage is poured into vessels containing the pulp. Uponthe amount of this starchy liquid present, the thickness of each sheetof paper to be made largely depends. A thin layer is crealted by makingpulp to run over the surface of a bamboo screen. To rid the semi-driedsheet of surplus wllJter, a rolling-pin is passed over its surface, and furtherpressure is applied to it to complete ,the f1ai1ltening process. As a rule theframes are brought to the drying chamber for further treatment.

There is Uittle doubt Ithat the equipment of the native paper mill ismOl'e than antiquated. As a matlter of fact it merely is the semblanceof a plant, having only a handful of articles to work with. For washingand soaking bamboo or rice straw the proprietor keeps stone-linedtank. Bamboo fibres or rice stalks are steamed in iron boilers. Forpounding fibres to the fineness of pulp a stone mortar is provided. Anda few concrete tanks take care of whatever raw materials thllJt a papermill owner may need for manufaoturing purposes. Bamboo screens of all

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IMPORTANCE OF THE PAPER INDUSTRY 397

sizes and shapes are widely employed for drying the pulpy mass as wellas for straining ~he surplus water. The chemicals needed are placed inearthenware vessels. Taking all in anI, the capital put in is ridiculouslysmall, and the term in this sense has been much abused. Small esta·blish­ments of this type are found sClbtltered aU over China.

In comparison with modern miJlls operated by ma:hinery, whatequipment rthe native mill operators may possess necessarily looks primi­tive. The preparation of rags is essen~ially rthe same, except that theboiling process is more intensive, varying with the substance chosen. Incountries where machinery dominates in industrial processes, thetendency is to use rags for making pulp and Ithe process may be sum­marized in five words, cleaning, boilling, washing, blea~hing and pulp­reducing.

Rags are received at the mill in the form of bales to be !p.·aded aftercareful ~crting. For manufaoturing fine gra.des of paper only rags thlbtare scrupulously dusted are used. To eliminate foreign subsltances fromthe collection, it is cusltomary to submit rags to a further duslting bymechanicaQ devices of various forms. Ordinarily girls are employed to dothe sorting, allowing the dU8~ ,to filter through a wire-screened table toa receptacle for collecting dust ,thus sifted. The factory hands are con­stantly on the alert for whlbtever rubber articles thalt may remain in thecoJJ!ection, for rubber is a great nuisance to paper makers in that its pre­sence causes black and ugly spo:s to appear on paper besides blocking thestraining screens. In America and Europe rubber in its many forms hasentered so deeply into garment making rthat in ~he eyes of paper milloperators it is something of a necessary evil. The rags are chopped intobits about two inches long before ~hey are despatched for boiling.

The machine for boiling rags is made ~o rotate under the pressUl',ecf steam. When ready, the rags are packed in a boiller horizontal inshape with a manhole for adrnirtting and discharging rags and lime.In order ;(,0 reduce impurities including colored and fatty substances toa negligible minimum, a solution containing lime is poured on the rags.After that, the mixture is cooked for several hours. This done, the steamand the solution are let off that the rags may be dumped out of the boilerwhen the manhole is released. As to impuriJties, either insoluble orcolorless compounds are precipitated and can be readily washed out.Af,ter such a chemical Itreatment the rags begin to assume a brownishcclor. A washing or beating machine, technically knownaslthe Hollander,is installed lest dirt should be ground into the fibres. The machine is along metal tub into which is injected a sltream of water together withthe rags to be cleaned. To hold the rags in position, a wire screen isused. As the rags are lowered Ithey gradually lose the characlteristics ofa fabric. The maceralted rags are then automatically thinned int<:> singlefibres, clean and ready for conversion into paper-making puQp which isleft behind for bleaching upon releasing the valve to let out the water.

Generally the puQp is white enough for manufaclturing ordinary paperbut for the finer sorts of paper a solution of bleaching powder is addedto the pulp to bleach it to a creamy whiteness. Processes vary signi­ficant.ly in differenlt counltries. In Europe washing and bleaching aredone simultaneously while in America a distinctly separate operation is

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398 CHINESE ECONO~nC JOURNAL

performed. Afiter bleaching Ithe pulp is removed from the Itank andplaced upon a porous floor for the surPlus water and moisture to drainoff. The pulp is left in Ithe drainer to dry for a few days. And it is notinfliequent Ito take iJt out of the drainers for pressing by mechanicaldevices.

In the final analysis, paper is really made in the beating engine.The beater is composed of a network of knives so arranged as to rapidlymacerate the pulp. A sprinkling of china clay is admitted Ito the mixturewith a view to filling possible pores on the paper. Besides adding to theweight this practice keeps the surface even and fiJt' for printing. Tobring paper up t{) the standard of milky whiteness, a little blue is addedt{) the pulp under prepar3Jtion. The coloring is, in fact, done 3Jt thispoint. As a precaution against the absorption of ink, paper makersgenerailly resol1t to the ant of sizing. As far as this practice is concerned,two m.ethods are in vogue-vegetable sizing and animal-sizing. Theformer operation is completed at the time when Ithe ingredients are beingmixed while Ithe latter is usually done at1~er the pulp is converted inltopaper, and is in th3Jt respect an external application.

The actual process of paper-making C{)mmences \vith Ithe forcing ofpuJlp through a machine conta.ining screens on which myriads of slits arecut for the finest pulp to pass through at Ithe same Itime functioning as IIdevice for throwing out lumps or impur.ties. The pulp thus refined ismade to pass over Ithe surface of extremely fine network of wire placedabove tanks into which the surplus water trickles. The pulp is automa­tically caughlt on the wire. To regulate <the widths of paper Ito be made,adjustable rubber bands are placed around the wire net. Mtached to thetanks are suotion devices for exhausting water therefrom. Any requireddesign may be clapped on a rolder for impressing watermarks in the paper.The damp fibre is again consolidated when the wire returns for furtherpressure. Now the paper is praetically finished except that iJt must bedlied. A series of steamheated cylinders are ereoted in such a mannerth3Jt the wet paper may be made to pass through them. Another maehinetechnically known as the calenders does the smoothing part by applica­tion of its weighlt and pressure on rolls passing under it. As the paperis ~sued from this machine it is rapidly wound on a reel. When littravels through Ithe so-called slitting machine it is trimmed of its roughedges. When rewound it is virtually ready for paeking and ~livery.

Papers go by a host of names. So when we come ,to the classificationof paper we are largely interested in the various processes by which dif­ferent grades of paper a·re manufactured. For making the finest gradeof writing papers the praotice is to dip Ithem in a gelatinous solution.Upon completion of Ithis operation, the paper is subjected to additionalpressing and consolida.ting. Modern methods call for the installation ofsuch drying devices as hOllow drums equipped \vith electricity-driven fansinside. A great valiety of substances have been med to co3Jt paper, andthe application is usually done by rapid-moving brushes. This operationcompleted, the paper is shuffled on to the drying chambers. If a higbftyglossy surface is desired, the paper must be glazed in the calender, andby mixing designated pigments with clay any desired color may be had.To make colored paper stilll more lustrous all the paper maker needs to

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IMPORTANCE OF THE PAPER INDUSTRY 399

do is to add a liWle bee's wax to the coating preparation. As to wall orfancy paper, the deciding factor is no<thing more than the securing ofthe right kind of coating and embossing. When paper is steeped in avat of molten wax or paraffin we get the so-called para.flin paper. News­prints, blotting paper, \Vl'apping paper, strawboard, cardboard, etc., aremerely a host of names given to the ever-increasing number of ways ofpaper-making.

In connection with the imPOl1t of paper, the Customs startistics avail­a1>le show that the demand for mechanical wood pulp in China markethas made a nota1>le increase. It is imported into this country in eitherdry or wet form. The significance of an anaiysis of this raw materialwill be readily 1>rought home when we realize how extensively it is usedin the manufacture of newspaper. The whole process is a simple one.Blocks of wood are pressed aga.inst rapid[y moving grindst<)nes, and thestuff so ground is carried off along WJith water let in for facilitating theoperaJtion. Wood is fed i!1¢o .the machine from pockets which help 1>ringlegs of wood in contact with the grindstones. Whatever impurities mayremain in the pulp are caught in a screen specially provided for thatpurpose. In China the amoun¢ of ground pulp imported in moist formis not as significant as that imported in dry form. It is plincipallly con­sumed in the manufacture of cheap newsprints. If a strong pulp isdesired then a chemical pulp must be used. The manufao<ture of toughboard or \Vl'apping paper requires very strong fibres. A significant pointthat I may mention in passing is that in America and Europe mechanicalinvention has aMained perfeo<tion ro such an extent that much of thesaw-mill waste can be turned into chemical pulp after adequate trea.t­ment. Experiments have 1>een perpetua¢ed aiming a¢ the discovery ofnew methods. Corn st·alk has been used very extensively for turning outa new brand of paper. The devastating influence of rellying on w00dpulp for paper-making is more and more definitely manifested in thedeforesta¢ion going on in places where paper mills are operated.

In endeavoring to place the native method of making paper in com­parison with the modern mechanica. processes of pulp preparing, I aim.at the introduction of modern methods .to put our paper mills on a scien­tific footing. This must not, however, 1>lind us to the fao<\; th",t a numberof midIs in China, although appearing insignificant when compared withgigantic mills in foreign countries, ai'e run on modern lines. Hence theSignificance of an analysis of some of the outstanding paper mills inChina.

Reasons for their establislnnent are not far to seek. The develop­ment of modern printing has created a marked demand for foreign paper.And this demand largely accounts for the heavy import of paper andwood pUlp. Paper made from rice staJks or bamboo is too fragile (<) standvigorous printing by modern machinery, so a number of paper millshave sprung up with the objeCJt of meeting this demand for machine­made paper.

Of the pioneering paper mills in China, the Tien Chang Paper MillCo. is the oldest, if not the 1>est. This plant first came into existenceabout 40 years ago, and was then known by the name Lun Chang PaperMill Co., which was subsequentQy altered to Paa Yua·n Paper Mill before

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400 CHINESE ECONOMIC JOURNAL

it gets its present name. In 1924 reorganization came, and the capi,taliza_tion was definitely fixed at $400,000. Two plants were in operaJtion atYangtzepco Road, Shanghai, and Luchiatsui, Pootung. The Pootung millwas partly razed by fire and partly reduced to financial ruin by a seriesof strikes. As a consequence iJt was closed down in 1927. The mi!l1 nowin operation is equipped with one paper-maki.ng machine, one calender_ing machine, one slibter, two spherical boilers and several beaters andbreakers. The motive power consists of both eleotricity and steam. Thebreaker and ,the pump are run by a steam engine while the boilers andslitters are operaJted by a separate machine with lower power. A fiIltraJtlonsystem consisting of four big reservoirs for storing purified water wasInstalled. As ,the plant is 10caJted alongside the Whangpoo River thequestion of water supply is negligible. The plant is indeed rather out Ofdate in point of equipment but Its output commands a fairily gOOdmarket.

Chronologically arranged, the next Important mlli to be studied is theLung Chang Paper Manufacturing Co. It began In 1906 and was capi­talized at half-a-million Mexican dollars. At first, the technicaQ phaseof ~he management was left to a Japanese engineer. He was the operaJt­Ing technician. Contrary to the expectations of the share-holders theplant was never a paying proposition. Reorganization plans were thenmapped out fol~owing ,the removal of the Japanese engineer from office.And the mlli has paid handsome dividends ever since. The control ofthe mill is vested in a Board of Directors who are responsible for theappointment of a manager under whose direction are three distinct divi­sions, namely, t·he Treasury, the General Affairs, and the Works Depart­ment. The present manager holds concurrently the position ofengineer. In the Works Depaclment a number of foremen have beenappointed by the Management to aot as gang-masters. In the event ofany dispute arising between laborers and foremen, the right to arbitrateis vested in the Manager. Ordinarily labor disturbances here are not aserious question.

The mill is located aJt Hwai Jih Hwel Jiao in a southern suburb ofShanghai. It had 10 Hollanders, two revolving boiJIers, one packingmachine, two ma<fuine-controlled beaters and two paper-making machinesincluding a number of drying devices. The rags are sorted out by ma­chines. steam power is extensively applied in the various stages of paper­making. A reservoir with a carrying capacilty of one million gallons wasconstructed for storing filltered water. Chemicaily pure water, It· mustbe borne In mind, has a vital bearing on the quality and cdlor of paper,to be made. The volume of output from this mill runs in the neighbor­hood of 30,000 pounds a day if the mlli is operated on a full schedule of24 hours daily. Figured at 10 cents a pound, the annuaQ productionreaches a value of over $1,000,000.

In 1924, ,the Ching Cheng Paper Manufacturing Co. made its appear­ance. Two mills are in operation at Shanghai and in Tientsin,respectively. For the first time in the history of paper-making in Chinaan endeavor may be said to have been made in ~-he direction of estab­lishing a system of chain factories. The Shanghai MID is located at 82,Chengtu Road, with 787 Tungfoo Road functionll>g as iJts town office.

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IMPORTANCE OF THE PAPER INDUSTRY 401

The Tientsin mill has its town office in the British Concession. As regardsthe Shanghai pilant, the following equipment may be mentioned: onecardboard making machine, one calender, eight Hollanders, 10 dryingrolls, three revolving boilers, one paper-making machine, etc. For thetreatment of rags and other raw materials, steam power is used. It isworthy to note that this plant specializes in the produclion of cardboardand wrapping paper. Here division of labor exists on a sma[l scale. Itis premature to say that specialization in China has advanced S') ,

to make the product,ion of pulp and the manufacture of paper two dis­tinct operations done at different mills.

In point of time of e~tablishment, the Kiang Nan Paper Manufactur­ing Co. ranks third, but in point of productivity and modernness ofmachinery it has at'tained quite a predominent status among Chinesepaper mills despite its recent organization. It was organized in 1925,capitalized at $400,000, divided into 20,000 shares of $20 each. The mi[lis [ocated at Zauchiadoo, with a sales office at 32 Avenue Edward VII. TheBoard of Directors is headed by Mr. Woo Yao-ding. Important per­sonages, including Messrs. S. U. Zau, Y. C. Yu, etc., have been invited toserve as advisers, and a number of industrial magnates have also pledgedtheir support for the development of this gigantic und€rtaking. Theregulations governing the subscription of shares state that any share­holder having in his possession 200 shares may be elected to the office ofdire<:tor. For the post of supervisor the candida.te must fu[flll theminimum requirement of 100 shares.

The present equipment consists of four Hollanders, one beater, onebleaching machine, two spherical boilers, and two paper-makingmachines. With a view to bringing about further expansion ofplant activities, the Ehareholders at the Company's third regular meetingendorsed public subscription of new shares to the amount of $600,000 forinstallation of new machinery. The present shareholders have al­ready raised a third of the sum advertised for. With this addition theCompany expects to w inorease 1Jts output as to adequately meet theincreasing demand of Chinese publishing companies for papers made inChina. I I' I Ii: I ! i:

'I r I ,.

The Kiang-Nan Paper Manufacturing Co. has to iJts oredit the inven­tion of a new pulp t.o be made from reeds that grow in great luxuriancein marshy places. The reed puJp has proved iJts worth in paper-making,and this innovation will significantly cheapen the process of production,pIlacing ,the Company at a premium in competition with the products ofany other paper mill in China. The path is far from being trodden asChir:a annually imports paper to the amount of 50 million dollars. Muchmay be done in the way of filling the gap. In anticipation of significantdevelopment, the Board of Directors have authorized the esta\jJishmentof a mill in the vicinity of Kaotse Station along the Shapghai-NankingLine.The district called Tsung Koo Chow will serve as a site for a millsolely devoted to the manufacture of reed pulp. In addition to this reedpUlp mill, the officers of the Company have arra.nged for the purchaseof 4,000 mow of land for the cultivation of reeds.

As to its organization, a new departure has been made in that thecompany is formed under a corporation plan wiJth separate divisions to

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402 CHINESE ECONOMIC JOURNAL

take care of the growth of raw maiterial, the conversion of reeds intopulp, and the ultimate process of paper-making, thus revolutionizing theexisting system in China. As modernization of business becomes moreand more established industrial specializa,tion is bound to set in. Pre­paration is now well under way for the formation of a [arge paper manu_facturing company dedicated principally to the manufacture of news-print. .

A new landmark will decidedly be reached if the Wenchow News­paper Manufacturing Co., now under organization, becomes a fact. Foryears and years China has had to look to foreign mills for her suPPly ofnewsprint because of the lack of similar plants here. There is littlereason for China to rely on fo.reign producers for things so. vitally reollated to the cuItural development of a country. And this absurdityincreases when we realize that the raw mruterial needed for the productionof newsprints grows in great abundance in China. Poplar, sulphur, limeand what not are one and aU within our reach. It may be recalled thatin 1911 the Newspaper Asso.ciation endorsed the founding of a newspapermanufaoturing plant which for some reason or other failed to mater­iallize. Encouraging news came when last year the Chekiang Governmenttook the matter up and authorized Mr. King Han, a paper expert, tomake a systemaJtic investigation into the suitability and profitability oflaunching on an enterprise of t·his nature. The result of his finding isextremely satisfactory, for Wenchow and Chuchow are noted for theirpoplar growth. No.t only that but suitable quarters may be had, utiliz­ing fully availlable water supply for plant operation. Assured of thismpport from the Mini~,try of Industry, Commerce, and Labor and theProvincia.l Government of Chekiang, the promoters managed the con·vocation of a meeting which was held at 80 Tibet Road. It was attendedby industrial leaders as well as capitalists including Messrs. S. U. Zau,Y. C. Yu, S. S. Feng, L. T. Sze, etc. Inasmuch as the establishment ofa newspaper manufacturing mill is an adventure hitherto unattempted,the members pre~enlt aU agreed that the time has come fo.r such anundertaking to be launched. Thirty-one articles governing the subscrip­tion of shares were drawn up follo\ving heated discussion over theadvisability of establishing such a milil in China. The proposed plantwill be capitalized at $3,000,000, divided into 30,000 shaxes of $100 each,The members of the Organization Conunibtee have been entrusted withthe safe custody of funds collected. Should business prosper, the divid­ends will be parceilled out into 20 units, 10 units being reserved as theshareholders' quota. The promoters will get two units in recognition oftheir effort while the allotment for the superintendents and directorswill amount to two addirtional units. The company is pUaced on a profit­sharing plan in that 5 units will be reserved for distribution among staffmembers. An interesting poind; is that one unit will be set apart for thecause of charity and philanthropy. Upon expiration of a 10-year limit,

t·he promoters' bounty .wilJl be rescinded in favor of shareholders.In making this analysis, I am not attempted to do the impossible.

Paper mills have existed in China by hundreds and' no exhaustive listcould possibly be given. Also, a,t present they are working on very· limitedrcales and their outputs are neglligibly small, so insignificant that they

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IMPORTANCE OF THE PAPER INDUSTRY 403

do not merit an intensive study. With regard to the products turned outby such mills, no standardization is possible. Different names are givenfor the same product in different localities, and the terms are so mislead­ing that any attempt at classification would prove a boomerang.

As to conditions of labor, we are vis-a-vis with the same deploralXlesituation that exists throughout China. Labor is a cheap commodityand is subject to systematic exploitation. An average workman in a papermill gets something between 40 cents and a dollar and 20 cents a day,the rate being dependent upon individual skill. Women and childrenreceive still aower wages, ranging from 15 cents to 40 cents a day.

In many mills labor is organized, for the employes have institutedwhat is known as the Paper Trade Employes' Union for safeguardingtheir interests. Between employers and employes the rellation is fairlywholesome. Any disputes that may arise over remuneration of labor canbe readily settled by a Board of Arbitration composed of representativesof both employers and employes.

In conclusion, let me again stress the importance of developing thisindustry in China. At present the importation of foreign-made paperhas increased to allarming proportions. It is rather encouraging to notethat our paper-making industry is rapidly engaging the alttention ofChinese industrial spokesmen as exempHfied in development plans re­cently mapped out. My conviction is that increasing stress will be laidin that direction.