380 PAPER IN FOREIGN COUNTRIES. 



4 per cent in 1895, with only ^275 carried forward. The Titaghur Mills, near Cal- 

 cutta, have also had a successful career, and the handsome dividends paid must 

 have courted and encouraged in a high degree the foundation and growth of other 

 concerns. 



But there are other mills in the East where enormous sums of money have been 

 sunk and European skilled labor employed without any return whatever. It may 

 be contended that the plant of nonpaying mills is not of the most modern descrip- 

 tion, and that the conditions of working have not been on the most suitable lines. 

 Probably this is true to a limited extent; such contentions, however, are not appli- 

 cable to the Imperial Paper Mills, where one of the finest and most complete 

 equipments in the world is installed, and no money has been spared to make the 

 works a thorough success. Yet, after three years' working, no dividend has been 

 paid, although a late advice assures us that a profit has been made during 1895. 

 According to several correspondents, writing from Bombay, Calcutta, and other 

 paper-making centers, the present time is unsuitable for the investment of more 

 capital in Indian paper manufacture, for the increase in the mills has already 

 brought about much competition, and the market is being flooded with local and for- 

 eign paper, while profits, even for well-equipped mills with ample trading capital, 

 have been steadily diminishing: Trre losses in Indian currency have materially 

 hampered industrial enterprises generally. 



INDIA S PAPER TRADE. 



The paper industry of India has for some time been under a cloud of depression, 

 and the outlook, so far as the immediate future is concerned, is not very encourag- 

 ing. There are many persons, however, who have great faith in the ultimate 

 prosperity of the principal modern Indian mills, especially as the latter have 

 greatly improved the color and quality of their paper; and the demand, it is con- 

 tended, must continue to increase, owing to the growth of population, the spread 

 of education, and the demand for literature. 



It seems as if the Indian mills were rather too premature in increasing their 

 capacity, as during the last three years or so six new paper-making machines were 

 erected. In 1893, the Titaghur Mills started a new machine, and the Bengal Mills 

 speedily followed the example. About this time the mills of the Imperial Paper 

 Company were built, and three machines were installed. The Bally Paper Mills, 

 not wishing to be out of the fashion, also started up another machine. This enor- 

 mous increase in the production soon had its effect, and, owing to the severe local 

 competition, and also the importation of cheap foreign paper, prices were cut down 

 to a very low rate. 



The fierce competition prevailing could not last long, and it was soon evident 

 to some of the mills that they were cantering on in the direction of liquidation. 

 Consequently, the mills in Bombay came to an understanding and formed a paper- 

 makers' association. The association's existence was not altogether of the serenest 

 character, there being evidences of discontent from time to time. True, the asso- 

 ciation did for a while succeed in checking the reckless competition following upon 

 the starting up of so many new machines; but relations became somewhat strained, 

 and a disagreement occurred amongst the mills, with the result that the association 

 was suspended, if it may not be said to have collapsed altogether. Prices, too, 

 have given way. 



Probably the low price of the local-manufactured products has had an important 

 influence on the value of imports of foreign paper, pasteboard, etc. The following 



