The Daily Alaska empire., 1931-09-24
HYDE REFUSES TO STOP ALASKA
 PULP PROJECTS
Agricultural Secretary Re- jects Plea of Paper Manu-
 featuring Interests

| AASuiGuIt tO dCQultSCe III the rpQueS of paper and pulp manufacturin, 1 interests to prevent the establish ment of paper and pulp industrie in Alaska because of the competi l tion they would offer to existin, enterprises is contained in a lette
 to James H. Neal, general manage
 of the American Paper and Pull I Association, from Arthur M. Hyde Secretary of Agriculture. 4 copy of Secretary Hyde's letter wa transmitted to the Juneau Cham Der of Commerce and was submit
 ted to that body at its noon lunch con today by M s. Whittier, actins secretary. The Chamber expressed it's thanks to Secretary Hyde
 Text of Letter
 The text of the letter follows:
 ITO clarify and orient our though regarding the proposal contained in your letter to the President un. der date of July 24, and the mum. erous letters subsequently, addressed to the President or to me by your self and others, it seems wortf while to reduce the proposal to its simplest proportions.
 "The Territory of Alaska, within the Tongass National Forest which is under the administration of this ] Department, contains a large vol ume of timber which is admirably adapted to the manufacture oi newsprint paper. It is situated close to tidewater transportation and to abundant sources of hydro-electric power All factors tend to estab- fish very favorable conditions for the manufacture of newsprint. The people of Alaska naturally regard this timber as an important eco homie resource and have long urg- ed its industrial exploitation, which would do much to promote the eco homie progress of the Territory This Department opposed any spec ulative exploitation of the timber, but some seven or eight years ago, when economic conditions seemed to warrant the utilization of the timber, steps were taken to make it available for such utilization. Conditions were prescribed which would preclude any but sound and conservative development
 Resources Were Determined
 The timber resources were care fully determined. The related water power projects were worked out. All factors indicated the existence of conditions favorable to the estab- lishment of sound and permanent enterprise. Applications were receiv- ed from companies of unquestion- ed financial and technical ability to develop the resource. Conditional awards of the timber forming two major units of operation were made in 1927 and the Federal Power Commission took favorable action in the matter of related water power projects. The two ap- plicant companies, both before and subsequent to the awards, made heavy outlays in engineering and timber surveys. At the time, every circumstance warranted the con- templated development. Conditions subsequently, arising have initiated against the final consumption of the two proposed timber sales or the construction of the necessary mills and power plants, but neither applicant company has thus far advised this Department of it's in- tention to abandon the project or to withdraw it's applications for the timber and power privileges.
 Gist of Proposal
 Tn substance your proposal is that this timber be withdrawn from industrial util ization and held simply as a reserve until the time when newsprint from other present sources of supply is insufficient to meet national needs This proposal is based upon the grounds that there is now an overproduction Of newsprint, that the price thereof is much below previous levels, that the competition of the Alaska product would tend to still further depress the price by creating a condition of ruinous competition and that as a result many mills Tn the United States would be forced to close and their employees would be thrown out of employment.
 During the calendar years 1929 and 1930 the average consumption of newsprint in the United States was reported to be 3,653, ,464 tons per year. Of this an average of l BOG, Al tons or 35.8 per cent of the total was produced in the United States. The remaining 64.2 per cent was imported from other countries, principally from Canada and Newfoundland It thus is evl- dent that such overproduction as exists is not domestic but foreign, and a proposal that newsprint de-
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