Seward daily gateway., 1924-11-04


 Standard Oil Company and the Gen. Petroleum Company in oil drilling op- erations they are now conducting at Cold Bay would mean more to Seat tie than did discovery of gold in the KlondNe, said A. s. Kerry, former chairman of the Alaska committee of the Chamber of Commerce, who was the principal speakers at the mem bers' council luncheon of the Cham Der in the Masonic Club rooms yes terday, when an Alaska Week pro- gram was put on by the Young Mems Business Club.
 The big oil companies, MT. Kerry said, are quite confident that their Alaska operations will bring in oil wells.
 They already have spent $750,000," said MT. Kerry, but the year by no means discouraged and they are still drilling. They believe they will strike oil at about $500 feet and they are now down more than 2,700."
 MT. Kerry talked on Alaskas nat ural resources and the present and future prospects for their develop ment The point he emphasized is HNat while Alaska has great natural wealth, both capital and good busi- ness judgment are needed by those who undertake to develop her re- sources.
 One of the principal tasks of the Alaska committee of the Chamber of Commerce, he said, had been and was to advise and guide prospective in- vestors to prevent them from making costly mistakes that would give a setback to the territorys develop ment.
 Some or the territory's resources, lie pointed out, could not profitably be developed on a large scale at the present time and must wait upon the future. The resources, capable of Iresent development, he said, are those whose prdoucts can be shipped out and marketed. He placed both the agrichltu1 1al and the coal lands of the territory in the deferred de- \, iopment class.
 "It would be folly to encourage q Iargr :Cvemelt 'f :arhIvrs 10 Alaska at the present time, though Alaska ,oI, Jf,I1,o nroI hn said "The market for farm products must be found at home and agricul- tural development in Alaska must only keep pace with the increase in population.
 The coal situation is similar Alaska has extensive coal deposits, as everybody knows, but for the pres ent the coal can be profitably mined only for use in the territory and the development is limited by the home consumption. The Alaska coal can not be exported to the States because they cannot meet the competition of the mines of this state and British
  < tition exists their market must be found at home.
 Another Alaska resource that must wait is the territory's great supply of timber suitable for making paper pulp. It has been great mistake to urge the federal government to hn co1n 0f firoh ar to encourage the establishment of pulp and paper mills in Alaska for pulp wood is byproduct of the great logging operations now being con- ducted in this state and Oregon.
 '"The pulp and paper industry is now being developed to furnish a marked for the hemlock that is logged with other more valuable tim Der and that heretofore has been per mitted to go to waste. The Alaska spruce cannot meet the competition of this byproduct because the logging costs in Alaska are higher than they are on Puget Sound or the Columbia River and other operating expenses are greater.
 Why not consider this situation carefully and think about reserving these Alaska pulp wood resources for the future, when they can be used proftably?'
 Mir Kerry cited several instances where the Alaska committee had been compelled to intervene to protect Alaska against ill-advised develop ment schemes, and said that the wis dom of it's policy had come to be rec ogDized by Alaskans, with the result that business relations between Se- attle and Alaska were now closer and more friendly than ever before.
 Turning to resources that were ca