The distribution of paper is cared for in part by direct sales from the mills to consumers, such as large publishers of newspapers, magazines, and books, and manufacturers of paper commodities, such as tags, boxes, stationery, toilet accessories etc.
The sale is also conducted to some extent by brokers, who operate principally in a few of the larger cities, especially those located within easy shipping distance from the mills, where the handicap of not carrying a large warehouse stock is at a minimum.
The broker carries no stock as a rule, with the exception of a supply for regular contracts. Occasionally the mills will carry a stock for the broker. A few firms specializing on contract business have made distinct successes in this branch of the paper business, but the broker is not an important figure in the paper trade, taking the country as a whole.
The most important distributing factor to the printing trade, is the paper merchant, who with his large purchasing power, accumulates ample and varied stocks, at minimum cost (having the advantage of carload prices and freight rates), and stands ready to distribute in large or small quantities, whatever is required. He also helps in a considerable measure to finance his trade by extending credit.
There is a distinct tendency toward “chain stores” one of the more prominent of which now comprises eight warehouses and seventeen branch offices, covering practically the entire country. These large factors frequently control the entire output of several mills, and sell to the smaller jobbers, as well as to the printers and consumers.
Statistics on distribution are apparently lacking, since the Government has never regularly compiled them, and the National Paper Trade Association, composed of paper merchants was unable to furnish any. The only estimate the author has obtained, comes through the President of the American Paper & Pulp Association, (The Manufacturers’ Association), who wrote on Jan. 22nd, 1914—
THE PAPER TRADE
“In writing paper I should estimate that 95 per cent is sold through the jobbers.
In book paper I should say not over 33½ per cent is sold through jobbers.
In news paper probably not over 10 per cent is sold through jobbers.
In wrapping paper I should say about 95 per cent is sold through jobbers.
In box boards probably not over 25 per cent is sold by jobbers.
Tissue paper, perhaps 25 per cent is sold through jobbers.
(The balance is sold direct to manufacturers who re-manufacture it, like toilet paper manufacturers).”
The indications therefore are, that the very large consumers of printing papers buy direct from the mills, as do many of the large manufacturers of commodities composed largely of paper.
The printers who in the aggregate consume large quantities of writing, catalog, and miscellaneous printing paper, but whose orders are composed principally of many small items, buy almost wholly from the paper jobbers. In localities far removed from the Mills, the jobber very naturally occupies a more conspicuous position than elsewhere, and his superior facilities for handling the business make him a stronger factor than in the markets adjacent to the mills, and enable him to handle much of the largest business to advantage.