The Daily Alaska empire., 1947-06-11
By vERN HAUGLAND

The Forest Service disclosed today it has taken the first concrete step toward promoting an Alaskan pulp wood and newsprint industry. The Service revealed details of 9 sample agreement it has prepared at the request of group of West Coast and New York financiers. high Interior and Agriculture department officials said, for the sale of eight billion board feet of pulp timber near Petersburg, Wrangell and Thomas Bay, Alaska.
 Under tho agreement the success ful bidder must have at least $8,- 100000 immediately available for plant construction The financial group was described as eager to sub init bid When bids can be asked depends on Congressional action on pending legislation.
 Frank Heintzleman. Chief of the Alaskan Forest Service, told re- porter the quantity of timber cov- cred by the agreement would be 1 sufficient to maintain a neWsprint plant production of 525 tons a day for 50 years.
 Town Near Petersburg
 Closing of the deal would mean i the expenditure of $30000,000' tc $40,000,00 to build pulp mill, pow CT plant, and town of 2,000 or g. 1 500, 16 miles east of Petersburg. l The ample sale agreement pro- vides that the lowest bid acceptable for pulp timber will be 85 cents per 100 cubic feet Slightly more than one cord). Heintzleman said this is lower than the prevailing price on the Pacific Coast.
 Bidders must also agree to pay the following rates until July l, 1860, for material to be manufactured for sale or sold in other forms than pulp or it's products.
 S3 per 1000 board feet log scale for spruce sawlogs, including high grade spruce logs intended for pulp manufacture; $1.50 per 1000 board feet for cedar; $2 per 1000 board feet for sawlogs of hemlock and other species; Is cents per linear foot for piling or poles over 95 feet | long; one cent per linear foot for piling or poles 95 feet or under
 The rates are subject to readjust- ment by the Forest Service July l, 1860, and at five-year intervals 1 thereafter
 Call for Bids
 1 The Forest Service has decided to call for oral bids, but will accept seal ed bids from approved bidders. The 1 successful bidder, who must show working capital or at least $8,000,- O0O-less than third of the esti- mated total cost. of the project must put up $l00,000 at the time his offer is accepted This is to serve as a guarantee for one-year option period in which the successful bid der will be permitted to qualify for the final agreement.
 Heintzleman said the firm which wins the bid will have to spend from $500, ,O00 to $500,OO in the first year merely on plans and surveys. He said the Forest Service hopes to conduct the sale as soon as possible so that much of this preliminary work may be accomplished this summer, and actual construction may begin next year.
 If the sale if held early enough for surveys to begin this year. pro- duction may begin in 1850. Thus the 50-year contract would carry into the year of 2000.
 Kind of awed me that's the first time I've worked on contract that far into the future" Heintzle- man said
 | Up to Congress
 When the sale can be held de- bends upon the action of Congress on a joint resolution to authorize the Secretary of Agriculture to sell timber within the Tongass National Forest in Alaska while claims of Alaska Indians and other natives to such land and timber remain un- determined.
 Under that proposal, all receipts from such sales would be maintained in a special treasury account until land and timber rights are finally settled. The Senate Public Lands Subcommittee is conducting hear ing on the measure today, and the