The Cordova daily times., 1921-04-15

necessary to work only one shift for the present, says the Empire.
 Additional machine equipment for the mill was recently shipped from San Francisco, said MT. Lass, which will enlarge the present capacity and all of the company's plans are made with vigorous prosecution of pulp manufacture as their main purpose. Nothing is farther from the inten- tion of the company than cessation of operations.
 FREIGHT RATES HIGH
 The company, according to MT Lass, has been conducting negotia- tions with both the Alaska Steam ship Company and the Pacific Steam ship Company regarding making ship ments to Seattle but both companies have quoted a rate which is regaGd' d being reasonable and which is out of the qeustion for the manufacture of mechanical pulp to pay. Both trans pOrtation companies have placed a rate of $10 per ton OF pulp from SpeeI river to Seattle, anl according to MT. Lass that figure really means d $22 rate on dry pulp.
 A few days ago, it seemed as if the problem of the first shipment had been solved when the Libby Maine, the cannery ship of Libby, McNeii 6 Libby, southbound from Yakutat with out cargo, offered to call at Speel river and take what was on hand for g.; per to2 Just before tie deal was closed, a telegram was "e 'Civ1d by the maste" of the vessel say ing that the insurance underwriters had refused permission to call in at Speel river and would cancel the iu- surance if the call was made. Under those circumstances the Libby Maine passed up the cargo and left the stGr age docks of the mill full of pup ready for shipment.
 The company was unabl4 to under stand the arbitrary action of the in- surance company in the matter as the call at Speel river offerel no risks beyond the ordinary hazards nor did the cargo present any difficulties. Several vessels of bigger size than the Libby Maine have called at the plant, these including the Admiral Goodrich, City of Seattle and the Spokane The harbor is said to be well sheltered and anchorage suffi- ciently deep for even the largest vessels operating on the Alaska run.
 WORKING ON PROBLEM
 While the transportation question is vital and the rates proposed are matters for serious consideration the company officials are not standing idle but are now in Seattle going over the proposition with the steam ship companies. It is calculated that the company, if it should finally prove necessary, can ship it's own product in 1,000-ton cargoes and land it in Seattle, for transshipment to the Cali fOrnia mill, at cost of not to exceed s per dry ton.
 In the meantime, said MT. Lass, the mill is running at about one-third capacity, working only one full shift two shifts being laid off until trans sr II plenty of water available for full shifts but storage room is lacking as long as no shipments the being made. Between 45O and 500 tons of pulp are stored on the dock now and 15 to 20 tons average will be added daily until three shifts can again be worked and transportation is provided New dock room is being built at this time and when the additional dockage planned is completed the mill will have storage space for 1000 tons of pulp. Materials for the new dock are being shipped from Juneau on every trip of the Speel river boats.
 With a working force of 12 men for the single shift, the company is maintaining it's organization in such shape as to be able to increase it's employees to provide for continuous operation as soon as it's shipping diff ficulties are surmounted, said MT. Lass.
 MT. Lass was in town but short