The Alaska daily empire., 1921-04-04
NO SHUT DOWN AT PULP MILL
 MANAGER SAYS
Operations Only Curtailed Awaiting Transportation-
 One Shift Producing Pulp.

it is not contemplated by the com- panv to close the mill down, al though it has been found necessary to work only one shift for the pres ent
 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 int0- 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 shipments to Seattle but both com panies have quoted a rate which is regarded by the company as far in excess of being reasonable and which is out of the question for the of mechanical pulp to pay Both transportation companies have placed a rate of $10 per ton on pulp from Speel River to Seattle, and according to MT. Lass, that fi- gure really means a $22 rate on dry pulp.
 Cheaper Rate Offered
 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, McNeil & Libby, southbound from Yakutat without cargo, offered to call at Speel River and take what was on hand for $3 per ton. Just before the deal was closed telegram was received by the master of the yes se saying that the insurance under writers had refused permission to call in at Speel River and would cancel the insurance if the call was made. Under those circumstances, the Libby Maine passed up the cargo and left the storage docks of the mill full of pulp ready for shipment.
 The company was unable to un- derstand the arbitrary action of the insurance company in the matter as the call at Speel River offered no risks beyond the ordinary hazards nor did the cargo present any diff culties. 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 anchor age sufficiently deep for even the largest vessels operating on the Al aska run.
 Working On Problem
 While the transportation question is vital and the rates proposed are matters for serious consideration the company officials are not stand ing idle but are now in Seattle go ing over the proposition with the steamship companies. It is calcu lated 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 California mill, at a cost of not to exceed $3 per dry ton.
 Output Cut Down
 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 transportation is arranged. There is plenty of water available for full shifts but storage room is lacking as long as no shipments are being made. Between 450 and 800 tons of pulp are stored on the dock now and 15 to 20 tons average will be added daily until three shifts car again be worked and transportation is provided. New dock room is being built at this time and when the ad- ditional dockage planned is complet- ed the mill will have storage space for 1000 tons of pulp. Materials for the new JOCK are DtinS SlilppSh Iibiii here on every trip of the Speel river boats.
 With a working force of F 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 faculties are surmounted, said MT Lass.
 Mr. Lass was in town but short time and left again Tor Speel River on the Anita Phillips this afternoon He said before he left that Speel River folks were anxiously awaiting the arrival of the Legislative eXcur sion promoted by Glen C. Bartlett of the Gastineau Hotel. He gave the assurance that the members of the party would meet with hearty wei come