The Daily Alaska empire., 1931-01-05
RAW MATERIALS VS. FINISHED
 PRODUCT.

Elsewhere in this edition of The Empire there appears communication entitled "A Progressive Movement for the Alaska Logging Industry" signed by number of responsible business of Aet- chikan. including three men who actually en- gagged in the logging business. Inasmuch as they plead for a direct reversal of one of the major policies of the United States Forest Service in Alaska what they have to say is of vital interest not only to the residents of Southeast Alaska but, also to all Alaskans since revenue derived from Aaskas forest is diverted into Territorial as well local channels.
 The issue which this communication raises can be stated simply and in few words. It is the long established policy of the Forest Service to protect local timbering industries, such mills, by denying the exportation of logs to British Columbia and Puget Sound points. Certain Ketchikan inter ests demand the abandonment of this policy and ask in it's stead that new policy be promul- gated which will permit the forest resources of Alaska to be shipped in form to foreign manu- featuring centers.
 This immediately raises the question: Which is the more profitable for Alaska, to manufacture and market its own forests in finished form, to permit them to be cut and shipped elsewhere to be manufactured into the various articles of commerce and marketed thereq Upon the correct to it depends a great sdeal. The proposition is so elementary that it hardly needs arguing. The Forest Service in initiating it's present non-expor- taton policy considered the query in all of its aspects Its decision that Alaska would never have any substantial forests products industries if il permitted the exploitation of the resources for the benefit of already established industries in other localities And this seems to be logical conclusion At least it is in line with the history of all industrial communities and is borne out by the development record of other lands That iS nearest to completely transforming into finished products its natural resources, surpassng by far those which strip themselves of materials to have them manufactured into final forms some where else
 Some of the arguments of the Ketchikan inter ests, while based on facts, do not give the whole picture. For instance, the statement, Tt is esti- mated the standing spruce timber in Alaska is equivalent to the entire standing growth of both the States of Oregon and Washington" needs clari- flying. It is true the entire spruce stand in the Territory probably exceeds that of the two States mentioned, but the stands of commercial logging chances are something else again The spruce trees scattered in the great hemlock forests, in the aggregate containing billions of feet do not offer logging chances for timber. The entire spruce stand of Southeast Alaska is estimated to be 15800000000 feet board measure. Of that amount about 316,OOo,oOO feet board measure probably con stitute the logging chances available today. The effect upon that supply if it were thrown wide open to logging operations for export would be disastrous In decade every stand would melt under the axes and and splitting machines" of the woods gangs and the only source of supply left for Alaska sawmills would be the spruce mixed in the hemlock growths which could be logged only at a cost SC prohibtive to make it impossible for the local manufacturers to compete on open markets with Puget Sound and British Columbia mills
 Currently, in the past and will continue to be in the coming few years at least, Southeast Alaska sawmills rely in large measure upon theil production of clear spruce to enable them to oper ate at profit It be sold proftably even during slack times because it is a unique product which has real competitor for certain uses Should this of revenue be cut off from local manufacturers their chances for successful opera tion would be seriously endangered The export of spruce would this market in two re- spects-by limiting the of the supply for the local mills and by bringing Puget Sound ol other factories into direct competition with them The latter, being the markets, naturally would have decided sales advantage over the local plants
 The timber industry, including logging. Sawmls and box factories. is the of some $1,5oooo in annual revenue Ten years of unrestricted expor- tation of spruce logs would wipe out at least goodly part of that and endanger capital :n vested in the sawmilling branch.
 The comparison made by the Ketchikan interest. as to fish and mining unfortunate for them selves One of the hardest fights ever waged by the business men of Ketchikan. unsuccessfully it i true but in righteous cause. was to prevent tht shipment of American halibut through ioreigr