Abstract: In general, paper shredders cut paper into narrow strips, and for such purpose, include narrow, somewhat delicate blades. A paper spreader for receiving shredded paper from a shredder, and compacting and cutting the paper into smaller pieces before distributing the paper pieces to a pile includes an outlet chute for receiving shredded paper from a shredder, an auger inclined upwardly and outwardly from the chute for compacting and conveying shredded paper away from the shredder, a deflector plate at the outer top end of the auger for deflecting paper carried by the auger, and a blade on the deflector plate extending tangentially of the auger shaft for cooperating with a sharpened, upwardly tapering auger flight to shear the paper carried by the auger.