Seward daily gateway., 1932-07-09
FOREST SERVICE
 POLICY IN ALASKA
(Continued from Page Opel

there should be not only a large volume of wood now available, but also a productive capacity of wood. The best opportunities to get this wood and to grow future supplies were found on the nearby Admiral ty Island, and on the east side of the slightly more distant Chichagof Island The resources, in power timber, and poten tial timber growth, each essential, are avail able for permanent industry which will employ over a thousand men, and are well grouped for low cost production. Without the tim Der and the timber growth there is no incentive to develop the power. Without the power, the timber can not be manufactured and sold in a highly competitive market.
 Other water powers, mostly more costly to develop than those near Juneau, were found in other parts of the Tongass Forest, and it is apparent that, when economic conditions justify full development throughout the Forest, the ability of the reasonable accessible timber growing areas to produce wood on a permanent basis will be at least balanced by the availability of po- wer for manufacturing that wood into paper.
 From the start the Forest Ser vice has insisted that the paper making industry in Alaska must be on sound permanent basis Some times against the urging of impa- tient Alaskans, it took the stand that the best interests of the Ter ritory and of the nation would be served by having the industry es- tablished only when economic con- ditions justified the belief that it would be reasonably successful in it's competitive field, when agencies qualified technically and financial ly were willing to undertake devel- opment, and when study has deter mined the limitations of size of the plants which could be supplied per- manently with raw material.
 By 1926 and 1927 these conditions seemed to have met. Applications for timber and for water power per- mits were submitted by persons of unquestionable financial ability, and of experience in large under takings. Newsprint prices were high, and production in Alaska seemed economically sound.
 One of these application was for the water powers near Juneau and for the appurtenant timber, in cluding the timber on Admiralty Island. Public advertisement, call ing for competitive bids in the case of the timber, led to the granting of a preliminary permit to MT. Geo. T. Cameron for the water powers and to an award of the timber to him at the price which he bid and under terms of the sample contract which was made public during the period of advertising and which corresponded to the specified tions" ordinarily furnished any in- terested parties when bids for pub lie supplies or work called d far. Thus the good faith of the Federal Government is involved in this out standing award. The form of con- tract was printed in full as part of the record of the recent hearings before the Senate Committee on Wild Life. Under the award, MT. Cameron had to obtain a water po- Wer license, and the formal timber contract was not to be executed until this was done. The Federal Water Power Commission has sent the license to him for execution. He also has the formal timber con- tract, ready for execution.
 Economic conditions during the last few years have made MT. Cam eron hesitate to invest the $Ie, ,OOO,- 900 to $15,000,OO0 necessary for water power development, plant construction, and logging equip ment. Whether the development
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