The sulphite paper made by the Borregaard mills is also of high quality, the great bulk of the output being produced from pure bleached sulphite. This applies also to the Hallein Mills in Austria and the Waterfalls Paper Mills in America. These mills excel in the production of fine-grade sulphite paper, which is used more particularly as writing paper.

In addition to chemical pulp and paper the mills at Borregaard and in Sweden make a quantity of mechanical pulp, which is exported partly moist and partly dry.

The company also owns a small cardboard mill in Sweden, and its other industrial works include joinery mills and brick and tile works.

As already mentioned, the constant aim of A/S Borregaard is to turn out high-grade products, and consequently their prices are slightly higher than those ruling for ordinary grades. This is more especially the case with bleached sulphite pulp, and it is in this particular line that A/S Borregaard holds a leading position. The annual output of this product now approximates 180 000 tons, of which 30 000 tons is made into paper at the company's own mills, and the remainder sold in the form of pulp. The total world output of bleached chemical pulp is estimated to be something like 900 000 tons, so that the A/S Borregaard may probably be said to represent one-sixth of the world's production, and is presumably the largest producer of bleached chemical pulp in the world. This bleached chemical pulp is used for a great variety of purposes. The lower and the socalled second grades make book paper, etc., while the superior qualities are manufactured into fine-grade paper, including writing paper, either in pure pulp or mixed with rags.

As a comparatively new speciality the A/S Borregaard has recently been turning out increasing quantities of bleached pulp for the manufacture of artificial silk. Present sales under this head total 30/35.000 tons per annum. As regards sulphate pulp, special mention

may be made of the manufacture of kraft paper at the Deje and Klarafors mills. A high degree of perfection has been attained in the production of this class of paper, which has gained a high reputation for quality. Other specialities include crepe paper.

With the nine large paper machines now in operation, the company's Mølnbacka-Trysil mills are now presumably the largest producers of kraft paper, and, at all events, the largest exporters in the world.

The output of sulphate paper at the Deje and Klarafors mills is between 25 and 30 000 tons per year.

As to sulphite paper, the Borregaard and Hallein mills produce most of their paper without any addition of mechanical pulp. The production of sulphite paper at these two mills is, in all, about 30 000 tons, and also in this department I should say that the A/S Borregaard are the largest exporters in Europe, or, for that matter, in the whole world, for there are of course many large mills in the U. S. A., but they do not export very much.

The company's Hurum and Bamble mills turn out approximately 17 000 tons of sulphate pulp for export.

The annual production of mechanical pulp is 25 000 tons, calculated wet, and of cardboard only abt. 1 200 tons. From its power works the A/S Borregaard leases 5 000 h. p. from the Sarpsfoss, and 5 000 h. p. from the Dejefoss and Frykfoss centrals.

The above particulars will serve to show that the A/S Borregaard is a concern of imposing dimensions. The total consumption of timber per annum may be put down at roughly one million cubic metres of spruce fir and a quarter of a million cubic metres of pine.

Electric power is employed to the greatest possible extent. The Borregaard mills have 25/26000 h. p., and the company's mills in Sweden, Austria, and America also employ a fairly large volume of electric energy from their own waterfalls. In spite of this, the annual consumption of coal approximates 200 000 tons.

The number of mill hands employed is from 6 to 7 000. Including forest workers, and technical and office staffs, the total number of employees is probably somewhere between 8 and 9000. The company's annual wages and salaries bill is round about 30 million Norwegian kroner.

The improvements effected by the new A/S Borregaard company may be said to fall into two main sections, viz. the technical and the commercial. In the technical department special attention has been devoted to the increased use of labour and power saving machinery. At the Borregaard and Hallein mills the old Kellner electrolysers in which platina is employed as electrodes have been replaced by electrolysers of the so-called diaphragm system with graphite and iron electrodes. This new bleaching system requires only half the volume of power, and only 60 per cent. of the quantity of salt, formerly used. In this connection I may mention that this company has erected plant at Borregaard for the production of vacuum salt. From 2 to 3 000 tons of fine salt is recovered from the soda lye. This salt is refined, dried, and sold for ordinary household purposes.

Considerable improvements have been effected with a view to reducing the consumption of coal.

But perhaps the greatest improvements are in devices for the conveyance of timber, and more particularly at the Swedish mills. The old kehrrad conveyors have been replaced by cable cranes capable of carrying large bundles of timber. A very high degree of efficiency has been attained with this new conveyor system at a considerably reduced cost. The company has two cable conveyors of this type at the Swedish mills. The Edsvalla mills have also installed a wire ropeway that runs right round the mill premises, so that practically all transport to and from the mills, ex

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cepting timber, is dealt with by this ropeway. It is a most ingenious device, and works very satisfactorily.

Of other extensions I may mention the installation of a fifth machine at the Deje paper mills. The sulphate output at Deje has also been increased by 10 000 tons, so that it now produces sufficient sulphate pulp for both the Deje and the Klarafors paper mills. The latter mill had formerly to buy part of its sulphate pulp requirements from other sources.

As regards the acquisition of new undertakings, the two sulphate mills in Norway were purchased to enable the company to utilise the fir timber that has to be taken along with pine, for there will always be a quantity of fir that sellers insisting upon including in pine lots.

Respecting the paper mill in America I may add that it was acquired as a result of the prohibitive protective duties levied on fine-grade paper imported into that country, whereas there is no import duty on sulphite pulp. Our sulphite pulp is therefore now shipped to Portland, Maine, from which port it is only 20/25 miles to the paper mill. There are two railway systems running practically through the mill, so that the finished paper can be sent direct to any part of the U. S. A. This mill has been modernised and its output increased to 15 000 tons. It now manufactures a sulphite paper that has gained the reputation of being one of the best of its kind in the American market.

There are also other directions in which this company has carried out extensions and improvements, but they lie beyond the scope of the present article. I may however mention in connection with the question of housing accommodation that the company has erected workmen's dwellings in the vicinity of all their mills.

The A/S Borregaard is administered in such a way that its various concerns have each an

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independent management, who confer with the board of directors at Sarpsborg in more important matters relating to timber purchases, building extensions, repairs, prices, large contracts, the closing of accounts, and so forth. The board of directors also has the control of all financial affairs and the appointment of the leading members of the staffs. The technical department is arranged on the same lines. Each mill is under the control of an independent technical leader. Members of the Sarpsborg board make regular tours of inspection. Output and stock reports, and cost sheets, are sent in to Sarpsborg for each month.

The company has its own testing department at Borregaard, to which chemical pulp samples are sent in daily from the various home and foreign mills for classification according to both strength and purity. This department and also the company's research laboratory are under the special supervision of Mr. Pedersen, late manager of Borregaard and now a member of Borregaard's board of directors.

As regards the commercial development of A/S Borregaard, I may point out that the present company took charge during the War, when things were more or less in a state of dissolution. Old trade connections had been severed, and the whole business was thrown into the melting pot. It was therefore essential to effect a thorough re-organisation of the company's affairs. When an undertaking has an output of 150 000 tons of bleached chemical pulp and perhaps an equal quantity of paper, mechanical pulp, and other grades, it will readily be understood that one market is not sufficient. A/S Borregaard does not belong to the category of small industries, but is a world concern, and its organisation must therefore assume a world-embracing character.

The company's principal export markets for chemical pulp are: America, France,Italy, Japan, Holland, Belgium, Germany and England. For paper the leading export markets in Europe are France and England, and latterly also Russia. Over-seas markets include America, Japan, India, and Australia. In consequence of the increasing tendency to levy protective duties on finished products, including paper, we have during the last four or five years made a special point of distributing our production of paper over a larger number of markets both in Europe and over-seas.

America is far and away the best market for our bleached chemical pulp. These sales of chemical pulp in the American market are partly effected through agents, although the company has also its own office there, which in addition to selling chemical pulp and paper from Europe also sells the output of our American paper mill.

The company has its own offices also in London, Manchester, and Kobe.

In the markets of South & Central Europe sales are effected mainly through agents, while in India, Australia, and other over-seas countries the trade in paper is mostly done through one or two large English export houses who act as sole distributors.

All regular agents and commercial houses working for the company submit a telegraphic report on the position of their respective markets on the first of each month, and we keep in constant touch with them respecting these special markets and other markets in general. This system appears to be a serviceable one, for we are always very well supplied with orders, and more so now than ever before.

As far as the company's Norwegian mills are concerned, the export trade with over-seas markets has in some instances been greatly impeded by the excessive freights that have recently been charged, making it difficult for these mills to compete with exporters in other countries where freights are far lower; but these are conditions that will no doubt right themselves in time.

It will be understood from the above rough outline of the development and position of the A/S Borregaard that, in its particular field, this concern occupies a prominent place in world trade.

The whole of the business of the A/S Borregaard in various parts of the world is directed from its head offices at Sarpsborg, Norway. The technical and commercial management of the company's mills in the various countries is largely in the hands of Norwegians, most of whom have been sent out from the Sarpsborg mills; and even the company's forests in Austria are under Norwegian management.

After all, it is but natural that Norwegians should occupy this position as leaders of a world-embracing enterprise in the wood man

COMMERCIAL AND NAVIGATION TREATY BETWEEN NORWAY AND

RUSSIA

A Preliminary Agreement was entered into between Norway and Russia in 1921. On December 15, 1925 a new Commercial and Navigation Treaty was signed by the two countries which will replace the preliminary agreement. The new treaty provides for ordinary mutual most-favoured treatment in regard to all commercial intercourse between the two countries. The shipping trade of the one country with the other shall be treated in the same manner as the former country's own shipping (national treatment), an exception being made in the case of petit cabotage, which each country reserves to itself. Most-favoured-nation treatment is to apply to grand cabotage.

Detailed provisions are set forth relative to the reduction of customs duty on various Norwegian fish products imported into Russia. Norwegian sardines are placed on an equal footing with those from other countries.

The most-favoured principle does not apply to such preferences as are or may be reserved to those States which have recognised Soviet Russia de jure previous to February 15, 1924. Norwegian shipowners are allowed to have their appointed shipping agents in Archangel, Murman, Leningrad and Novorossisk.

The exchange of ratifications took place on March 3, 1926.

CONVENTION OF NAVIGATION BETWEEN NORWAY AND FINLAND

A convention of navigation between Norway and Finland was signed on December 19, 1925 at Helsingfors. It is to take effect when ratifications have been exchanged. During the time in which Norway has been without a navigation treaty with Finland Norwegian shipowners have had to pay double light dues in Finnish ports. It is estimated that this additional expense for Norwegian shipping has run to from 150 000 to 200 000 kroner in a single

year.

A Century of Trade between Great Britain and Norway. Commercial relations between Norway and great Britain are regulated by the Convention of Commerce and Naviga