The Alaska daily empire., 1923-02-19
SEWARD PROJECT FOR PULP PLANT
 GIVEN SET BACK
Fisheries Interest Paramount, Says Department Com
 merce, Tn Protest.

The proposed construction Of q | pulp plant at Seward has been blocked by an intimation of refusal | by the Federal Power Commission to | grant a license for the water power ! project on Kenai River, according 10 information received here today The ! whole undertaking is being promoted i by Frank l.. Ballane, of Seward, | who has been notified by the Com | mission that, on account of a protest entered by the Bureau of Fisheries, | it is probable no license Will be granted.
 | Mr. Blllaine has been working on 1 the project more than one year and it was recently announced al Sew ard that financial backing sufficient to carry it through to completion, in cluding water development and con struction of the pulp manufacturing plant, had been secured. The pro , test made by the Bureau of Fisheries l is based on claim that the dams called for in development of the rIoWer site on Konai River would de- stroy that stream and it's tributaries as salmon spawning streams and the entire red fisheries of Cook Inlet as a commercial proposition.
 Huston Makes Protest
 The formal protest against the
 project was made by Assistant Secre
 tary of Commerce Huston. He said lit was understood that two dams
 were to be constructed one six feet
 in heighth at the outlet of kenai
 Lake and the other, diversion dam, 120 feet high. II miles below the l lake A personal investigation was
 made by an agent of the Bureau of Fisheries. This developed, said MT
 Huston, two outstanding facts.
 "1 That the main run of red
 salmon spawns in the upper kenai River waters above the proposed di-
 version dam in Kenai River canyon.
 70 That the tributary streams be-
 low the proposed diversion dam carry almost negligible runs of red salmon.
 These two important facts" he said, have most vital bearing on the subject under discussion. The | portant salmon stream in Cook Inlet and 1t is believed that the salmon in
 dustry of that region would be ire parably ruined If the run in the Kenai River were to be destroyed,
 which would, l believe, be the prac- tical effect of the proposed power
 projects. If the run on Kenai River
 zlah n cessitate the closing of several large : salmon canncrios, including those of r Libby, McNeil & Libby, Northwest
 ern Fisheries Company, Alaska Pack r CTS Association and the Fdalgo - Island Packing Company, and would , also limit the operations of various , smaller cannerics and salting sta
 tons to such an extent that they
 would eventually be compelled to
 close"
 Mir. Huston gives the number oi streams the Bureau claims would
 be affected by the proposed develop ]. ment and emphasizes the extent ol - injury to the salmon canning in n dustry that would result from putting 1 the proposed plans into execution. :. Supported by pr. Gilbert l. He quotes Bureau representatives !. in support of his contentious and I cites a statement made by Dr. c
 H. Gilbert, of Stamford University on the same matter. The latter is :. quoted as follows:
 > "I beg to express my conviction | that the proposed dams between the
 Kenai and Skilak Lakes would re
 suit in reducing the red salmon run
 in the Kenai River to such a point ' to such a point that t would cease
 to have any commercial significance !. 1 believe it would be wholly i'm a practicable to operate successfully n hatchery below the dam. The ret h salmon C1 their ascent of the rivel Q are far too green to spawn. It i' Il their habit fo remain in the deer r waters of the lake for month ol l. more untl their eggs are ripe. T' 2 impound them for this purpose in th' u river below the dam would certainl, n result in the loss of a large per V centage of spawning fish.
 g. "The Kenai River is the most i'm a portant red salmon stream of Cool
 Inlet. If the Kenai run is destroyed Y the Cook Inlet salmon fisheries vii q go with it. 1 recommend that tn
 Bureau of Fisheries use it's influ
 ence in opposition to tho construe
 ton of the proposed dam."
 D. The Secretary concludes by dt E, claring that in the Kenai River. "th Fl rights ef fishery are absolutely para o mount to other considerations"
 A copy of the letter mentlone