Evening star., 1947-05-18
Alaska Eager
Make Paper
Hopes Vast Timberland
Will Bolster Her
Economy
By James Hnfcheson

rich Northern Territory is looking
hopefully to the pulp and paper
industry-as it once looked to gold
for new phase in its economic
development.
Acting Gov. Lew Williams told the
Associated Press negotiations for
establishment Of q newsprint mill
in Southeastern Alaska are nearing
completion with q large firm.
"At the present time" he said.
there are actually three concerns
which are actively interested, one Of
them to the point where 1t appears
to be only a clearance matter with
the United States Forest Service
relative to timber contracts"
He added that Identities Of the
negotiating firms were being with
held until the contracts are really
signed with the Forest Service"
Ofacials in WashipEton.
Mr.. Williams said that three key
Alaskan ofaeials are now in WASH
ington working on the project OF the
prospective development of the
green golds resources Of the ter
ritory. They are Gov. Ernest Gruen-
ing, Regional Forester Frank Heint-
zleman and Manager George Sund-
borg of the Alaska Development
Board.
G. M. Granger, assistant chief
forester of the Agriculture Depart-
ment, told a congressional commit-
tee that the hurdle left In negotia-
tions with the No. ! firm was the
problem of arranging the cost OF
timber to meet competitive condi-
tions In the Puget Sound area.
To paper-hungry United States,
the prospects of expansion OF pro-
duction into Alaska probably viii
be as welcome as to Alaskans who
see a means Of tapping rich timber
stands that cover thousands OF
square miles along the coast line
new resource to help support the
vast Territory that has expressed q
desire to become the 49th State.
Some Obstacles.
The major barriers to develop
ment of the industry In Alaska In
clude:
/. High construction costs.
2. Indian title claims to the heavy
Southeastern Alaska timber stands.
8. High shipping costs between
Alaska and the States.
4. The necessity Of establishing
townsites at suitable mill locations.
Pulp and Paper Industry, a trade
magazine published In Seattle, re-
ported in survey OF Alaska possi-
bilities:
Wood and its delivery to a mill
would be comparatively cheap, but
the costs of establishing plant in.
the Ketchikan area would be high
est (per employee for any industry
ever initiated on the continent"
The magazine recently quoted Mr..
Sundborg as estimating the largest
contemplated Southeastern Alaska
plant would represent $28, 900 900
investment.
Krug's Attitude.
Secretary OF the Interior J. A.
Krug buoyed Alaskan hopes when
he stated at a congressional hearing
on Alaska statehood, that 'tfe
paper and plup industry in Alaska
may come sooner than we have
anticipated"
Mr.. Krug, expressing the belief
that granting Alaska statehood
would give impetus to industrial
development. said the Interior De-
|partment believed it had disposed
of the problem Of Indian rights to
the lands.
He described the present cost OF
shipping machinery to Alaska, and
paper to the States, as prohibitive.
Mr.. Sundborg, though, has said he
believed the increased volume Of
traffic once mills are in production
would help to reduce present high
transportation costs.
Mr.. Krug estimated that-in the
face Of shipping. labor and town.
/ site problems lit would require
three years to complete construction
OF paper mill. He predicted that
the Territory's timber resources
could support as many as six mills,
each with 6O0-ton daily output Of
Inewsprint. without ever being ex-
hausted.
The supply Of suitable types Of
timber is tremendous. The largest
forests are Ia the southeastern Sec
tion, in the Juneau and Ketchikan
areas.
U,ssribused b. the Asys.assa prsss,