(The documents referred to are as follows:)

FEBRUARY 25, 1953.

To: Mr. Joseph Rand, Postcertification Division, Office of Construction and Resources Expansion, NPA.

From: Leonard Pasek, Assistant Director for Pulp, Paper, and Paperboard, Forest Products Division, NPA.

Subject: Certification of necessity for white pulp.

It is recommended that approval be given for certificates of necessity as indicated on the attached tabulation which shows the status of companies having white pulp expansion projects.

COMPANIES HAVING STARTED CONSTRUCTION

Brunswick Pulp & Paper-TA-2537

This company is jointly owned by the Mead Corp. and the Scott Paper Co. These companies have received 4 certificates involving 288,000 tons of pulp and 264,000 tons of paper and board at a cost of 51.5 millions of dollars. Therefore, Brunswick Pulp & Paper is considered as under the “Maybank” ruling and our "Big Ten" ruling and should not be considered eligible for a certificate at this time. Since they have completed this expansion of 40,000 tons we are considering that as meeting the expansion goal even though they are not granted a certificate.

The International Paper Co.-TA-5265

This company has received 3 certificates covering 279,000 tons of pulp and 93,000 tons of paper and board costing 58.6 millions of dollars. They also fall under the "Maybank" ruling and the "Big Ten" ruling. As they have started construction of their expansion project, we are also considering their 8,000 tons increase against the expansion goal.

The Rhinelander Papar Co.-TA-10494

The Rhinelander Paper Co. has been granted a certificate for paper production increase and this certificate is for the necessary pulp required to meet that paper production increase. They do not fall under the "Maybank" ruling nor the "Big Ten" ruling. Since they were originally denied solely on the grounds that the white pulp goal had been filled, it is recommended that approval be given to their certificate of necessity at this time. Their construction has started and the 12,000 tons of expansion will be increased against the program.

The Champion Paper and Fiber, TA-2687

This company has received 4 certificates covering 38,000 tons of pulp and 42,000 tons of paper and board costing 6.1 millions of dollars. Therefore, they fall under the Maybank ruling and the Big Ten ruling. Since they have started construction of this project the 8,000 tons of pulp will be increased against the expansion program.

The New York & Pennsylvania Co., TA-21487

This company has not received a prior certificate of necessity. They were originally denied on the grounds that the goal was filled. Since the goal is now open it is recommended that they be granted a certificate of necessity. As they have started construction, the 8,000 tons of pulp involved will be credited against the expansion program.

COMPANIES WHO HAVE NOT STARTED CONSTRUCTION

The West Virginia Pulp & Paper Co., TA-3069

This company has received 8 certificates covering 159,000 tons of pulp and 140,000 tons of paper and board costing 35.3 millions of dollars, they fall under the Maybank ruling and the Big Ten ruling. Since construction has not started, no credit is given against the balance of the expansion program.

East Texas Pulp Co., TA-9539

This company has not received any prior certificates of necessity as they are a new company in this field. They were originally denied on the basis that the expansion program was filled. Since there is, after giving credit to all projects under construction, a balance of 112,000 tons, their expansion of 78,000 tons is eligible. It is recommended that a certificate of necessity be granted to this company.

The Rayonier Co., TA–9916

This company contemplated construction of a new dissolving pulp mill in the Southeastern United States. Their product is vitally important to the Government's munition program and they are the principle source of supply of nitrating pulp at this time. This expansion will increase the supply of this vitally needed material. They have received 4 of the certificates of necessity covering minor efficiency expansions of their existing plants. They were not therefore, major necessitites in supply. The location of this plant relieves the concentration of the nitrating pulp facilities in the Pacific Northwest. It is recommended that approval be given to this certificate of necessity.

To: Mr. Joseph Rand, Post-Certification Division, Office of Construction and Resources Expansion, ODM.

From: Leonard Pasek, Assistant Director for Pulp, Paper and Paperboard Forest Products Division.

Subject: Certificates of Necessity for White Pulp.

This Division hereby submits recommendations concerning certificates of necessity covering white pulp. Such recommendations are indicated in the following reports which cover all companies who are eligible for certificate of necessity consideration in line with the present opening in the "white pulp" expansion goal which amounts to 188,000 tons. There is attached a listing of companies having white pulp expansion projects and the effect of such expansions on the expansion goal.

The New York & Pennsylvania Co. TA-21478

This company has not received a prior certificate of necessity and is not one of the Big 10 in this the white pulp category. As there is an opening in the goal, it is recommended that they be granted a certificate of necessity. This company is also expanding their production of book paper by 25,000 tons. There is sufficient opening (62,000 tons) in this book paper goal to warrant granting this certificate. Since they have started construction, the 8,000 tons of pulp involved will be credited against the expansion goal.

The East Texas Pulp Co., TA-9539

This company has not received a prior certificate of necessity as they are a new company in this field. They were originally denied on the basis that the expansion goal was filled. Since there is, after giving credit to all projects under construction, a balance of 112,000 tons, their capacity of 73,000 tons is eligible (see attached table). It is recommended that their appeal from the previous denial be granted and a certificate of necessity be issued.

The Rhinelander Paper Co. TA-10494

This company has been granted a certificate of necessity (TA-311) for a paper production increase and this application is for the necessary pulp to meet that

expansion. They are not one of the Big 10 in this category nor do they fall under the Maybank ruling as their prior certificate was not in this category. Since they were originally denied solely on the grounds that the goal was filled, it is recommended that approval be given to their appeal from the previous denial. Their construction has started and the 12,000 ton expansion has been credited against the goal.

The Rayonier Co., TA-9916

After giving credit against the expansion goal to those companies which have started construction and the East Texas Pulp Co., which has not started construction, there is still sufficient opening in the goal to grant their certificate. Rayonier ras received 4 previous certificates involving 48,000 tons of pulp However, these covered minor expansions in their present facilities. This application covers a new dissolving pulp mill in the Southeastern United States. Their facilities is one of the major sources for nitrating pulp and as such are of vital importance to the defense effort. Further, they are producers of market pulp which is in short supply and would be more so in a full mobilization period.

This company falls under the Big 10 criteria in this category. However, because there is still an opening in the goal, after giving consideration to all companies not under the Big 10 criteria and the recognized importance of their product both as nitrating pulp and market pulp, they should be considered eligible for a certificate of necessity. Under the Maybank ruling they are also eligible as consideration has been given to all other companies who have not received a certificate involving this category. It is recommended that they be granted their appeal from the previous denial and a certificate of necessity he issued.

The Brunswick Pulp & Paper Co., TA-2537

Co.

This company is jointly owned by the Mead Corp. and the Scott Paper These companies have received 4 certificates involving 288,000 tons of pulp and 264,000 tons of paper and board at a cost of 51.5 millions of dollars. This Division has given prior consideration to all other companies having white pulp expansion and no longer considers Brunswick ineligible because of the Maybank ruling. The Big 10 criteria of this Division does not apply to them as Mead and Scott combined have not received more than 10 percent of the total pulp expansion program. Brunswick has completed construction of this expansion and credit has been given against the expansion goal.

In view of the above, it is recommended that approval be granted to their appeal from our previous denial and a certificate of necessity be granted. The International Paper Co., TA-5265

This company has received 3 certificates involving 279,000 tons of pulp and 93,000 tons of paper and board costing 58.6 millions of dollars. As in the case of Brunswick, they are now eligible under the Maybank ruling. Further, they do not fall under the Big 10 criteria as they have not received more than 10 percent of the total pulp expansion program.

They have started construction of the project and credit has been given toward this expansion. It is, therefore, recommended that their appeal from the previous denial be granted and a certificate of necessity be granted.

The Champion Paper & Fibre Co., TA-2687

This company has received 4 certificates covering 38,000 tons of pulp and 42,000 tons of paper and board costing 6.1 millions of dollars. Like Brunswick and International Paper, they are now eligible under the Maybank ruling. Also, they should not be excluded under the Big 10 criteria as they have not received 10 percent of the total pulp expansion program. It is recommended that their appeal from the previous denial be granted and a certificate of necessity be granted.

West Virginia Pulp & Paper Co., TA-3069

Since the expansion goals for white pulp will be filled by the granting of the certificates of necessity for the previously mentioned companies, no more certificates of necessity covering expansion projects in this category should be granted.

Of the three companies who have not started construction, consideration was given first to East Texas Pulp Co. as they had not received any previous cer· tificates as had West Virginia. Second consideration was given to Rayonier because of the importance of their product to the defense effort.

Because of the above, it is recommended that this application by West Virginia Pulp & Paper Co. be considered ineligible for a certificate of necessity at this time.

Mr. WALDEN. I will read your memo of March 3, 1953, if I may with respect to East Texas:

This company has not received a prior certificate of necessity as they are a new company in this field. They were originally denied on the basis that the expansion goal was filled. Since there is, after giving credit to all projects under construction a balance of 112,000 tons, their capacity of 78,000 tons is eligible (see attached table). It is recommended that their appeal from the previous denial be granted and a certificate of necessity be issued.

I would like to introduce at this time, Mr. Chairman, a letter to you from East Texas Pulp & Paper Co., giving the following information:

Sales of market pulp-same period as above. Tons pulp converted, and paper production, and the paper production is milk carton.

Sales of market pulp-

Tons pulp converted.

Paper production

Grade as follows:

Milk carton:

Semibleached___
Fully bleached_.

Liner board__

Tag and folder_

Carton stock__
Bleached board..

Hood and can---.

Mr. PASEK. Who is that letter from?

Tons

Mr. WALDEN. The letter is dated July 18, 1955, to the chairman indicating the type of production and facilities East Texas had. Wasn't that similar to the Potlatch application?

Mr. PASEK. It might be now, but that has no bearing on what it was at the time.

(The document referred to is as follows:)

Hon. EMANUEL CELLER,

House of Representatives,

Washington, D. C.

EAST TEXAS PULP & PAPER CO.,
Evadale, Tex., July 18, 1955.

SIR: We are pleased to give you the following information in answer to your letter of July 11, 1955, addressed to Mr. Harold Decker, president, Houston Oil Company of Texas.

Total tonnage pulp produced from inception (Dec. 5, 1954) to June
30, 1955.

Sales of market pulp-same period as above..
Tons pulp converted-same period__---

Paper production-same period as above‒‒‒‒‒‒

Grade as follows:

Milk carton:

Semibleached.
Fully bleached..

Liner board___
Tag and folder__
Carton stock___
Bleached board_
Hood and can_.

Total_

Yours very truly,

Tons

50, 251

30, 281

19, 619

19, 619

Mr. WALDEN. At this time I introduce into the record an excerpt from the Paper Trade Journal, December 12, 1952:

Houston Oil Company of Texas and Time, Inc., jointly announce the formation of the East Texas Pulp & Paper Co. for building a pulp and paper mill in Evadale, Tex.

(The document referred to is as follows:)

[Paper Trade Journal, December 12, 1952, p. 12]

TIME, INC., AND OIL COMPANY TO BUILD MILL

Houston Oil Company of Texas and Time, Inc., jointly announce the formation of the East Texas Pulp & Paper Co., for building a pulp and paper mill in Evadale, Tex.

To be located in Jasper County 15 miles north of Beaumont, and approximately 90 miles northeast of Houston, the plant will be designed to turn out bleached sulfate pulp and paperboard, with a capacity of approximately 250 tons a day. A substantial part of the wood supply for the new mill will be drawn from lands owned by the Southwestern Settlement & Development Corp., a wholly owned subsidiary of the Houston Oil Co. It is anticipated that construction ov the site will commence this spring.

The Houston Oil Co. and Time, Inc., own equal shares of the equity interest in the new company.

The proposed board of directors for East Texas will be as follows: David W. Brumbaugh, vice president, Time, Inc.; Harold Decker, president, Houston Oil Company of Texas; Artemus L. Gates, director, Time, Inc.; R. A. McDonald, director, Crown Zellerbach Corp.; A. G. McNeese, Jr., assistant to president, Houston Oil Company of Texas; Foster Parker, treasurer, Houston Oil Company of Texas; Charles L. Stillman, executive vice president, Time, Inc.; Gurdon Wattles, president, Webster Tobacco Co., and director, Houston Oil Company of Texas.

Mr. WALDEN. The next excerpt I will read is the Paper Trade Journal, January 9, 1953:

The East Texas Pulp & Paper Co. will begin construction this month at a site near Evadale on the Neches River about 15 miles north of Beaumont, Tex.