The profit-starved state of the newsprint industry is the biggest reason that newsprint prices have been climbing so quickly.

Ogilvie also worked for the establishment of the newsprint industry in Tasmania, and instituted a superannuation fund for state officials.

The purchase will increase Stone's presence in the Southwest and will give the company a foothold in the newsprint industry.

In fact, the economics of the newsprint industry has sometimes raised legal eyebrows.

The Justice Department said today that it had begun a significant investigation into possible anticompetitive pricing practices in the newsprint industry.

After suffering huge losses in recent years, when newsprint prices were at their lows, the newsprint industry has been trying to catch up.

But most of the newsprint industry is taking a more conservative approach - adding recycling machinery to existing mills.

The firm was a mainstay of the Canadian newsprint industry in the first half of the 20th century.

But satisfying that demand is a huge problem for the existing newsprint industry, which is heavily geared toward using virgin pulp.

Bill Brooks, a spokesman, said the department was "looking at the possibility of anti-competitive practices in the newsprint industry" and that the investigation was "ongoing."