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



sible development of over 100,000 horsepower; and the Forest Serv- 

 ice estimates that a complete exploration of the National Forests in 

 southern Alaska will disclose their potential horsepower to be not 

 less than a quarter of a million. 



Scarcely any other part of the country offers a field for the up- 

 building of a permanent pulp and paper industry equal to that 

 afforded by Alaska. It is a virgin field because, in spite of its 

 natural advantages and vast supplies of raw material, economic 

 conditions had not, prior to 1919, become sufficiently favorable to 

 attract capital. For years the Forest Service tried in vain to interest 

 capital in the development of enterprises for paper production in 

 Alaska. Had it succeeded these enterprises would now be in a very 

 advantageous position. 



It may be said in passing that the purpose of the Forest Service 

 looks beyond merely finding a market for Government timber in 

 order that the timber may be cut and a new growth started in its 1 

 place. The Forests are administered as public properties created to 

 serve public needs. Alaska's first need is capital. It has not yet 

 reached a point at which the upbuilding of the Territory can be 

 effected merely by an influx of pioneers of the type that conquered 

 the wilderness in our Western States. While development must 

 be a gradual process governed by economic facts, large-scale oper- 

 ations are essential. To the extent that conditions can be made 

 favorable for such operations development will be hastened. 



Public ownership of the National Forests and their administra- 

 tion in accordance with the general policy pursued by the Forest 

 Service affords capital certain important advantages. The amount 

 of the investment necessary is greatly reduced by the fact that the 

 Service is in position to guarantee permanent supplies, on reasonable 

 terms as to price, and made available as needed. In other words, the 

 operator does not need to invest heavily in raw material or assume 

 the speculative risks involved when timber must be carried for a 

 number of years with accumulating charges before manufacture. 

 Again, prospective operators do not have to negotiate with a number 

 of different owners or spend time and money in building up an op- 

 erating unit. It is the desire of the Government to facilitate the es- 

 tablishment of mills, and the Forest Service is therefore glad to make 

 available all the information that it can secure and to offer terms and 

 conditions of sale that will interpose no unnecessary or unreasonable 

 obstacles to development. 



The value to Alaska of a pulp and paper industry on the National 

 Forests can scarcely be overstated. By creating a demand for labor 

 it will build up the population; by creating a market for farmers' 

 crops it will stimulate agricultural development ; and it will improve 

 transportation facilities and benefit all kinds of business. The Ter- 



