Answering The American Pulp & Paper Association
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NOTE:—On Sept. 1, 1931 the
American Pulp & Paper Associa
tion of New York addressed a
letter to President Hoover and
the Department of Agriculture,
asking them to restrict the sale
of pulp timber from Alaska and
to suspend present negotiations
with pulp and paper interests
whereby Alaska forests might
come into competition with the
interests of said Association. .
Protests against this request
were made to the Department of
Agriculture by Chambers of
Commerce of Alaska and on
Sept. 11, 1931 Secretary Hyde
made an able and comprehen
sive reply to the American Pulp
& Paper Association. We deem
this letter of special interest to
Alaskans and are therefore
printing and transmitting same
to you for your information.
Board of Managers,
Alaska Territorial Chamber of
Commerce,
Juneau, Alaska, October 1, 1931.
Mr. Jesse H. Neal, Cen. Mgr.,
American Paper and Pulp As
sociation, New York City.
Dear Sir:—
“To clarify and orient our
thought regarding the proposal
contained in your letter to the
President under date of July 24.
and the numerous letters sub
sequently addressed to the Presi
dent or to me by your self and
ethers, it seems worth while to
reduce the proposal to its sim
plest proportions.
“The Territory of Alaska,
within the Tongass National
Forest which is under the ad
ministration of this Department,
contains a large volume of tim
ber which is admirably adapted
to the manufacture of newsprint,
paper. It is situated close to
tidewater transportation and to
abundant sources of hydro-elec
trie power. All factors tend to
establish very favorable condi
tions for the manufacture of
newsprint. The people of Alaska
naturally regard this timber as
an important economic resource
and have long urged its indus
trial exploitation, which would
do much to promote the econo
mic progress of the Territory.
This Department opposed any
speculative exploitation of the
timber, but seme seven or eight
years ago, when economic con
ditions seemed to warrant the
utilization of the timber, step?
were taken to make it available
for such utilization. Conditions
were prescribed which would
preclude any but sound and con
servative development.
Resources Were Determined
“The timber resources were
carefully determined. The relat
ed water power projects were
worked out. All factors indicated
the existence of conditions fav
orable to the establishment of a
sound and permanent enterprise.
Applications were received from
companies o f unquestioned
financial and technical ability to
develop the resource. Condition
al awards of the timber forming
two major units of operation
were made m 192/ and tne fed
eral Power Commission took fav
orable action in the matter of
related, water power projects.
The two applicant companies,
both before and subsequent to
the awards, made heavy outlays
in- engineering and timber sur
veys. At the time, every circum
stance warranted the contem
plated development. Conditions
subsequently arising have mili
tated against the final consuma
tion 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 De
partment of its intention to a
bandon the project or to with
draw its applications for the
timber and power privileges.
Gist of Proposal
“In substance your proposal is
that this timber be withdrawal
from industrial utilization and
held simply as a reserve until the
time when newsprint from other
present sources of supply is in
sufficient to meet national needs.
This proposal is based upon the
grounds that there is now an
overproduction o f newsprint,
that the price thereof is much
below previous levels, that the
competition of the Alaska pro
duct would tend to still further
depress the price by creating a
condition of ruinous competition
and that as a result many mills
in the United States would be
forced to close and their em
ployees would be thrown out of
employment.
“During the calendar years
1929 and 1930 the average con
sumption of newsprint in the
United States was reported to be
3,653,464 tons per year. Of this,
an average of 1,306,441 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 evident
that such overproduction as ex
ists is not domestic but foreign,
and a proposal that newsprint
development in Alaska be sup
pressed until overproduction by
foreign countries is discontinued
might mean a practically per
manent prohibition of paper
manufacture in that Territory,
which certainly would be a grave
injustice.