Abstract: An apparatus for shredding paper and the like and compacting the paper into a disposable cylindrical roll. The apparatus includes a pair of cooperating roller cutters mounted in a housing to cut the paper into elongate strips. The paper is compacted into cylindrical rolls by rotatably driven cylinder end wheels and a plurality of compacting rollers disposed about the circumference of the drum. The compacting rollers are rotatably driven in a direction opposite that of the end wheel. The compacted cylindrical roll is formed in a compacting zone defined by the rollers and end wheels. The apparatus can also compact paper without shredding. To allow for this function the housing has a paper feed opening that bypasses the roller cutters introducing the paper directly to the compacting zone.