20 BULLETIN" 950, TJ. S. DEPARTMENT OF AGRICULTURE. 



pounds per capita of all papers. If the market in China were de- 

 veloped to one-tenth that of the United States the demand would 

 be enormous. 



The unique advantages in the exploitation of Alaskan timber are 

 the proximity of raw materials to tidewater and natural power sites 

 and the favorable relation to the world's markets. Obviously, a 

 paper plant located in southeastern Alaska has a world-wide choice 

 of markets under independent transportation conditions, either rail 

 or water transportation being available. 



TAXES. 



Outside of incorporated towns no general property taxes are im- 

 posed, but all industries in Alaska, including those in incorporated 

 towns, pay a Federal license fee which, where applicable, is based 

 on actual yearly output. No license fees have been named to date 

 on pulp and paper, but it is reasonable to suppose that this will be 

 done when the industry becomes established. The fee on lumber is 

 10 cents per thousand feet b. m. 



FREIGHT RATES. 



In the absence of cargoes for shipment, it is difficult to get firm 

 quotations as to costs of transportation. Any rate quoted would 

 probably be above a competitive rate which could be obtained on 

 cargo shipments. In 1914 the rates were about $2 per marine ton 

 (40 cubic feet) from points in the vicinity of Ketchikan to Portland 

 and Seattle. The rate from Juneau and vicinity was about $3 per 

 marine ton. These rates have more than doubled for the class of 

 merchandise included in the classification. However, there is no 

 reason why an enterprise with the tonnage of an ordinary-sized 

 newsprint mill should not operate its own or chartered ships so that 

 the above rates would be approximated under conditions similar to 

 those of the present time, especially if the return cargo were charged 

 with its share of the expense. 



In this connection it is interesting to note that the exports far 

 exceed the imports of Alaska. The balance of trade in favor of 

 Alaska is about $30,000,000 per annum. A result of this is, of course, 

 that there is greater demand for cargo space for outbound than in- 

 bound traffic, and an explanation is afforded in a measure of the fact 

 that coal is shipped into southeastern Alaska from Vancouver rather 

 than from the fields along the Government railroad terminating at 

 Seward. 



In 1917 the rates on dry pulp in bales from Seattle to the Orient 

 were about $5.50 per 2,000- pound ton ; on newsprint, $6 to $7. On 

 paper of any kind the rates to Australia were $5.50 to $8. These 



