The Daily Alaska empire., 1930-12-26
PACKERS PLAN REDUCED
 OPERATIONS.

The report from Ketchikan that three of the larger salmon packing corporations in Southeast Alaska will each operate three less plants this year than usual seems to be in line with the declared intention of the canners in this district to reduce operating costs next season and to cut down the pack. meeting held recently in Seattle, largely attended by cannery operators, at which several problems discussed and emphasis was placed on the necessity for effecting substantial economies the importance of paying more attention to the marketing end and concentrating less the production end of the industry.
 Pinks and chums, of which the pack of South east Alaska is mainly composed selling at present below the cost of production by the unani- nous admission of all canners attending the meet ing. They agreed, also, that there must be a material contraction of operations a result of this situation, the reduction to be made either later. The packers, apparently, realize that the longer this disagreeabe task is postponed the more difficult will be- and to have arranged a program to make it now. The Seattle meeting also studied ways and of eliminating un- profitable gear this the canneries will be helped along by the United States Bureau of Fisheries, which has announced it will permanently reduce by 58 the number of traps operated heretofore in South east Alaska. Commissioner OMalley suggested to the packers that each company operating five or more traps eliminate out of each five. This, he estimated would account for 51 out of the 58 He didn't leave the canners much alternative either, since he informed them if they didn't make the elimination proposed by him, the Bureau of Fish cries would do it for them. After consideration, the suggestion carried out and some of the canners discussing the possibility of cut ting out other traps to further reduce operating costs.
 P. E. Harris, President of P. E. Harris & Com pany one of the most successful operators in the Territory significantly commented this policy as follows
 When we cut out traps in Icy and
 Chatham Straits from IT to five when
 our Hawk Inlet cannery commenced to be
 profitable. We simply quit taking chances;
 cut out traps that weren't paying for them
 selves and fitted out for pack we were
 fairly sure to get. Before that if the run
 was short we liable to lose heavily;
 now, if the run is short of expectations,
 our pack will not be very much short of
 what prepared for; and if the run is
 heavy can handle what our traps produce
 a profitable basis
 The for all these discussions, of course, is the enoromus carryover stocks with which the industry is faced, salmon which it has not been possible to move despite the fact that the fish are cheaper than for many years. Undoubtedly the operators confronted by a serious situation It will take the best brains of the industry to keep it on an keel until, to word in vogue just decade ago. "normalcy" is restored
 Alaska is as vitally interested in a successful solution of their problems the operators Most of the of the Territory come from the industry. Funds for the functioning of the Territorial Government are derived from it, and ii it is not prosperous then the Territory suffers along with it. And any serious reduction on the operations whole will inevitably react unfav- oraby upon the Territory.