The daily Alaska citizen., 1919-03-18
the first instance and less than $6O.OO pei horsepower year in the second.
 NECESSITY FOR GOVERNMENT CONSTRUCTION

horsepower year in the second
 NECESSITY FOR GOVERNMENT CONSTRUCTION
 It is but natural to look to the govern ment of the United States for capital to de- fray the cost of installing this project, be- cause the United States is more vitally and eminently interested in the development of this vast empire than any private enterprise can be- We are fortunate too, in that con- gress has shown not only willingness, but almost an eagerness, to assist in the devel- opment of Alaska; so that once the facts based upon sound business reasoning and the possibilities to be had from the construction of such plant are presented to them, we may feel confident that there will be no hesitancy in providing the necessary investment. But there are other reasons that make the gov ernment pre-etninently fitted to construct this plant It is essential that the power be fur nished cheaply, and the government will be able to do so at the very lowest price attain able, that of actual cost. Again, the govern ment is now constructing a railroad into the Interior of Alaska based upon faith in the future development of the territory, the reali zation of which depends upon the future of the mining industry. Our nation at large has present need of all the resources of metal that Alaska holds, but in order to produce them the miner must have cheap power. And, finally, the United States has just emerged from world war with huge debt, for the payment of which she may look to Alaska if the government will furnish the cheap power that is so immediately and vitally essential
 To Develop A'aska
 At present the Interior of Alaska depends :~,I o:% indirectly, for its entire life and we'll being, and this condition will continue to exist for many years, if not generations. In making this statement due account is taken of the agricultural possibilities of the district, which have been proven beyond any doubt by the farming that is now carried on in the Tanana valley. But the farmer must took to the min ing industry and the attendant commerce de- pending upon it for a market If the mining industry fails agriculture must fail thru sheer hamilton or else be so seriously crippled that it may perhaps never realize the possi bilities that are within sight
 The present cost of fuel is prohibitive and the opening of the Nenana Ignite fields will not solve the problem entirely because of the inferior quality of this fuel, but with a central plant it will be possible to supply power at the mines for price rangnig from $1OOOO to less than $60.OO per horsepower year, that is 24 horsepower hours per day, 365 days per year. The cost of producing power for mining under the present conditions is rarely less than $4OO.OO and often greater than $oOOO0 per horsepower year.
 The saving that will result from the use of power at from one-fourth to one-tenth of the present cost can hardly be realized. It will make it possible to mine placer ground by shafts and drifts, which cannot be thot of at present. It will insure the installation of dredges to work the abundant low-grade plac- CT gravels that have total gold content far in excess of all the gold that has yet been pro- duced. Gold dredging is a business, operated on principles just as sound and conservative as those of any manufacturing concern: and the solidity of such business will have strong stablizing effect on the future development of the interior of Alaska. Power at this price will not only be the salvation of the lode mining industry, by removing its present re- striction to the more rickly endowed spots and by enabling the working of ore of lower value, but it will also encourage the development of prospects, and stimulate the search for new deposits.
 To insure Cheap Power
 The government can furnish this power at a cheaper rate to the consumer than any other agent The government can afford to wait 20 years for the repayment of the money invested in the plant and need not charge more than per cent interest, thus reducing the amount of liked charges" and in addi- tion private enterprise would, of course, de- mand profits and would have to include in the cost of power the charges for taxes, which the government does not pay, insurance, etc., which it is not the policy of the government