Jim Thompson

Email Jim at jim.thompson@ipulpmedia.com

By Jim Thompson

We come to the end of another Pulp Rats season, our 13^th. We try to capture malfeasance, of various levels, done by the humans that work in our pulp and paper mills as well as the people affiliated with those mills such as suppliers, contractors and so forth.

Every year, our fearless reporter, Fos the Rat, brings these thinly disguised stories to you. We disguise them, not to protect the guilty, but to protect us from the potential of libel suits. Some of these bad characters would sue us in a minute if they had enough of a case.

I want to push a little deeper as we wrap up this year.

What causes people to behave in the ways we describe here? Greed for sure. Hiding their missteps is another. Anger.

Over the years, the trend is fairly steady. People think of pulp and paper companies as being large organizations that won't miss the purloined assets. Managers think they can get by with negligence, with little thought of accidents they may cause. And on and on.

When printing and writing paper volumes decreased, this put pressure on managers to "cook the books." This also led to deferred maintenance, unsafe practices and so forth.

The same things happened with newsprint declination.

In both these cases the most egregious actions were abandoning assets in place. This is pushing off today's costs until tomorrow. It also physically sets up a scenario where something can collapse unexpectedly.

Managers seem to act as if safety issues will not happen. We have been reporting safety issues since 2017. Take a look. Does it look like safety has improved in the last ten years? No.

There is more angst coming to the industry. I have said for a long time that paper used for its physical properties will continue to grow (packaging, toilet tissue, diapers, feminine products, etc.). However, if worldwide human births continue to decline, they will be facing problems in these areas, too.

I have recently been studying the machine tool industry from about 1865 until today. Nearly all the old-line machine tool companies have gone out of business, replaced with modern equipment, computer controlled. When I was a child, I was around this kind of equipment because my father was. He would never have imagined what happened to such machine manufacturers and I wouldn't, either.

We must be cautious and HONEST to keep our vital pulp and paper industry alive.

Be safe and we will talk next week.

For a deeper dive, go here.

Study Guide: Pulp Rats Part 5/2026 - Ethics, Economics, and Industry Trends

This study guide provides a comprehensive review of the "Pulp Rats" series' 13th season wrap-up. It examines the ethical lapses, economic pressures, and historical parallels within the pulp and paper industry as outlined in the source text.

Section 1: Short-Answer Quiz

Instructions: Answer the following questions using information provided in the source. Each response should be between two and three sentences.

1. What is the primary objective of the "Pulp Rats" series?
2. Who is Fos the Rat, and what role does he play in the publication?
3. Why does the author choose to "thinly disguise" the stories reported in the series?
4. According to the text, what are the three primary psychological drivers of malfeasance in the industry?
5. How does the perceived size of pulp and paper organizations influence the behavior of those who steal from them?
6. What specific actions do managers take when pressured by decreasing volumes in printing, writing paper, and newsprint?
7. What does the author identify as the most "egregious" action taken by management in declining sectors?
8. What has been the general trend regarding industry safety since 2017?
9. While packaging and tissue products are currently growing, what future demographic trend poses a threat to these sectors?
10. Why does the author reference the history of the machine tool industry from 1865 to the present?

Section 2: Answer Key

1. What is the primary objective of the "Pulp Rats" series? The series aims to identify and capture various levels of malfeasance committed by humans within the pulp and paper industry. This includes documenting the wrongdoings of mill employees as well as affiliated entities like suppliers and contractors.
2. Who is Fos the Rat, and what role does he play in the publication? Fos the Rat is described as the "fearless reporter" for the series. He is responsible for gathering and bringing the specific stories of industry misconduct to the publication for each season.
3. Why does the author choose to "thinly disguise" the stories reported in the series? The stories are disguised primarily to protect the publication from potential libel suits. The author notes that many of the "bad characters" featured would sue the publication immediately if they believed they had a legal case.
4. According to the text, what are the three primary psychological drivers of malfeasance in the industry? The author identifies greed, the desire to hide personal or professional missteps, and anger as the core causes of the behaviors described. These factors drive individuals to engage in activities ranging from theft to negligence.
5. How does the perceived size of pulp and paper organizations influence the behavior of those who steal from them? Employees and affiliates often view pulp and paper companies as massive organizations with vast resources. Consequently, they believe these large entities will not notice or miss "purloined assets" taken for personal gain.
6. What specific actions do managers take when pressured by decreasing volumes in printing, writing paper, and newsprint? Economic pressure leads some managers to "cook the books" to hide poor financial performance. Additionally, these pressures result in deferred maintenance and the implementation of unsafe operational practices.
7. What does the author identify as the most "egregious" action taken by management in declining sectors? The most egregious action is the abandonment of assets in place, which essentially pushes current costs onto the future. This practice creates dangerous physical scenarios where structures or equipment may collapse unexpectedly.
8. What has been the general trend regarding industry safety since 2017? Despite consistent reporting on safety issues for nearly a decade, there has been no visible improvement in industry safety. Managers often act under the assumption that safety incidents will not happen, despite evidence to the contrary.
9. While packaging and tissue products are currently growing, what future demographic trend poses a threat to these sectors? The industry relies on the physical properties of products like diapers, toilet tissue, and feminine products for growth. However, a continued decline in worldwide human births threatens the long-term viability and demand for these specific categories.
10. Why does the author reference the history of the machine tool industry from 1865 to the present? The author uses the machine tool industry as a cautionary tale because nearly all "old-line" companies in that sector went out of business. They were replaced by modern, computer-controlled equipment, representing a level of change that previous generations could not have imagined.

Section 3: Essay Questions

Instructions: Use the source context to develop detailed responses to the following prompts.

1. The Ethics of Industry Reporting: Analyze the tension between exposing corporate malfeasance and the legal risks of libel. Why does the author feel it is necessary to continue the "Pulp Rats" series despite the threat of lawsuits?
2. Economic Pressures and Operational Integrity: Discuss how the decline of specific paper sectors (printing, writing, and newsprint) correlates with a decrease in ethical management and safety standards.
3. The Risks of "Abandoning Assets": Explain the financial and physical dangers of pushing current costs to the future through the abandonment of equipment and facilities. How does this practice jeopardize the long-term health of the industry?
4. Demographics and Industry Growth: Evaluate the author's argument regarding the relationship between birth rates and the demand for paper products used for their physical properties. What does this suggest about the future of the "vital" pulp and paper industry?
5. Technological Evolution and Survival: Compare the fate of the machine tool industry with the current state of the pulp and paper industry. What "lessons" must the paper industry learn to avoid the same obsolescence faced by old-line machine tool manufacturers?

Section 4: Glossary of Key Terms

Term Definition

Abandoning Assets The practice of leaving industrial equipment or facilities in place without proper decommissioning or maintenance, thereby deferring costs and creating safety hazards.

Cooking the Books A slang term for fraudulent accounting practices used to make a company's financial performance appear better than it actually is.

Deferred Maintenance The practice of postponing maintenance activities such as repairs on real property or equipment in order to save costs in the short term.

Libel Suit A legal action brought against a party for publishing a false statement that is damaging to a person's or organization's reputation.

Malfeasance Wrongdoing or misconduct, specifically by a public official or an employee within a corporate structure.

Old-line Companies Established, traditional companies that often rely on historical manufacturing methods and may struggle to adapt to modern technological shifts.

Pulp Rats The title of a recurring series (now in its 13th season) that exposes corruption, negligence, and theft within the pulp and paper industry.

Purloined Assets Property or equipment belonging to a company that has been stolen or taken dishonestly by employees, contractors, or managers.

________

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