When the "Put each page break on a new layer" option is enabled in the Preferences Text to Graphics translator, each page in the text file is imported into a separate slide/layer.
The translator only recognizes "hard" page breaks in the text document. That is, page breaks that are manually entered with the Insert Page Break command (or equivalent).
This option is most useful for bringing multiple pages into separate slides and affects all text translators, including the MacWrite II and Word translators.
If multiple pages of a text document are imported into one layer, that means the document has "soft page breaks." Soft page breaks, page breaks that occur due to normal pagination by the word processor, are not recognized.
Re-open the text document in the word processor, then manually enter the page breaks at the desired positions. Then, import the text file into MacDraw Pro again.