2 BULLETIN 950, U. S. DEPARTMENT OF AGRICULTURE. 



DEMAND FOR PULP AND PAPER. 



The time seems to be ripe for the extensive exploitation of Alaskan 

 pulpwoocl. The successful operation of pulp and paper mills in 

 near-by British Columbia, which has practically similar timber and 

 power resources and comparable transportation facilities, removes 

 the speculative element from the proposed development. The de- 

 mand for paper has increased to such an extent that it has become 

 possible for well-organized and adequately financed companies to 

 operate pulp and paper mills on an extensive scale, particularly for 

 making newsprint. Ten years ago the United States produced its 

 entire supply of newsprint. In 1919 two-thirds of it was imported, 

 mostly from Canada ; and Canadian supplies are not without limit. 2 

 All indications point to a continuance of the demand at prices which 

 should make possible profitable operations in Alaska. 



New sources are imperatively required for the supply of raw 

 pulpwoocl. This need has already brought mills to the Pacific coast. 

 They were located, first in California, Washington, and Oregon, and 

 then in British Columbia. The same transition has taken place in 

 the lumber industry, and the production of lumber in the Pacific 

 Northwest is increasing steadily. The movement in the pulp in- 

 dustry, however, is necessarily slower, because of the greater invest- 

 ment called for per unit and the very large requirement for power. 

 Furthermore, the pulp industry demands an assured permanent sup- 

 ply of raw material and a proper allocation of water power under 

 stable tenure, both of which requisites are found in the Tongass 

 National Forest in southeastern Alaska. It is the policy of the 

 Forest Service to sell pulpwood from the National Forests with such 

 provisions for future supply as will assure the permanence of the 

 industry. 



ADVANTAGES OF REGIONAL DEVELOPMENT. 



There is room for a number of mills on the Tongass Forest. When 

 these are in operation, together with the established mills of British 

 Columbia, which are reported 3 to represent an investment of 

 $42,000,000, they will constitute a producing region whose products 

 will have a recognized standing in the world's markets. The develop- 

 ment of this region will facilitate the procurement of sales contracts 

 and needed capital, make it possible to attract both skilled and un- 

 skilled labor, and, lastly, but by no means of least importance, en- 

 able the industry to secure favorable conditions and rates for the 

 transportation of its products. These are prime factors in the suc- 

 cess of an operation of any magnitude, and are recognized as such. 



2 See " Some Startling Facts About Canada's Forests," by Frank D. Barnjum. in the 

 Tulp and Paper Magazine of Canada, Jan. 1, 1920, reprints of which are available from 

 the publishers. 



3 See consular letter of .7. J. Johnson, Feb. 20, 1920. 



