519 



The long-term contract was the key element which brought 

 Alaska Pulp to Sitka in the 1950s. Without the long-term contract 

 as collateral, it will be difficult to obtain financing. A pulp mill 

 without an adequate timber supply is not a good business risk. 

 Trying to run a plant such as ours with less than the necessary 

 volume of wood is out of the question. We are barely cost competi- 

 tive now, at full capacity. It is not feasible to operate at reduced 

 capacity, even if we could get sales contracts to supply pulp on and 

 if and when we get enough wood basis. 



As a matter of fact, right now we are struggling to obtain enough 

 wood to operate at full production, even with a long-term contract. 

 The sawmill in Wrangell has been closed for three weeks this 

 month because it cannot get enough logs. 



We are hopeful that the information you receive will convince 

 you to adopt the approach by Senator Murkowski in S. 237. 



We appreciate the opportunity to give you our views. 



Senator Wirth. Thank you very much. Mr. Stewart? 



Evidently Mr. Stewart is not here. 



STATEMENT OF BERNICE BROWN, ALASKA WOMEN IN TIMBER 



Ms. Brown. My name is Bernice Brown, and I represent the 

 Sitka branch of Alaska Women in Timber, AWIT. 



We support Senator Murkowski's Senate Bill 237. Obviously 

 there is a need for education, and highlighted is a multiple use for 

 the forest as opposed to a single use. We believe that it is evident 

 that the timber industry plays a big role in the nation's economy, 

 providing for jobs and contributing to the positive side of the U.S. 

 trade balance in both local, state and Federal coffers. 



Locally, we have a reasonable utility and tax rate because of the 

 pulp mills contribution. 



Earlier this month, I accompanied a witness to Washington, D.C. 

 to discuss the Tongass issue with members of the Congress and 

 staff members. We were asked what makes our forest different, 

 why is the logging more costly. It was difficult for them to compre- 

 hend the logistics required in setting up and operating a logging 

 camp in a remote island area. We explained what you have to have 

 to build a logging camp where no previous road has existed and 

 also that supplies are flown in or brought by water. Persons who 

 have never experienced this type of environment legislate this 

 area. 



We furnished photographs to show the folks in D.C. For example, 

 the aerial photos of Sitka showed the land area behind town where 

 the trees were cut by the Russians a hundred years ago. They were 

 surprised to see there was no discernible line to show where the 

 Russians ended their cut. 



We also had a photograph showing Muskeg and clearcut areas. 

 Trees never have grown in Muskeg. However, some magazines 

 have misidentified Muskeg as a result of clearcut. 



Those individuals brought up the so-called $40 million subsidy 

 and the 50-year contracts. The $40 million was the cause of addi- 

 tional wilderness brought about when the loggers had to relinquish 

 commercial timber for noncommercial timber demanded by the en- 

 vironmentalists. Congress had added $12 million to the already ex- 



