UTILIZATION OF THE FISH WASTE OF THE PACIFIC OCEAN. 51 



The running expenses, then, may be put as follows : 



Interest on investment $6,000, at 10 per cent $600 



Depreciation, at 10 per cent 600 



Wages, 1 man at $100, 4 at $75 per month, 2 months 800 



• Sacks, 2,300, at 10 cents 230 



Barrels, 380, at $1.85 700 



Coal for rendering, 10 tons, at $S 1 80 



Coal for drying, 12 tons, at $8 96 



Freight (from Alaska) on 120 tons scrap at $4 480 



.Freight (from Alaska) on 380 barrels oil, 75 tons, at $4 300 



Total 3. 886 



The proceeds may be estimated as follows : 



Scrap, 115 tons, at $40 $4,600 



Oil, 19,000 gallons, at 30 cents 5, 700 



Total proceeds 10, 300 



Total expenses 3,886 



Balance 6, 414 



According to the above estimate $6,414 are put down as profit. 

 More strictly this should be regarded as the working margin of in- 

 come over expenses. As the conditions imposed are more severe than 

 those probably to be encountered, it is believed that this estimate is 

 conservative. This belief is strengthened by the fact that the esti- 

 mates on the same general basis, prepared by an experienced manu- 

 facturer of fish scrap from this class of material, is 50 per cent lower 

 than the above as concerns the running expenses and 20 per cent 

 lower with respect to equipment. Thus, a larger capacity is pre- 

 scribed than probably would be necessary, and a much shorter 

 working day than would be required in actual practice. 



In operating the supposed by-products plant, the labor problem 

 is regarded by those packers who operate in Alaska as a serious 

 matter. This may be the case in western Alaska, where it may be 

 necessary to employ the force for the by-products plant before leav- 

 ing the States and to carry them on the pay roll until they return in 

 the fall; but in the other parts of Alaska it is difficult to see how 

 the problem of securing three or four additional laborers could be 

 serious. While it is probable that in the busiest part of the season 

 every member of the cannery force is employed, at other times there 

 should be a sufficient number of men temporarity idle to do all the 

 work required in the by-products plant. An additional force, if 

 necessary, could be secured for the rush season. 



ADVANTAGES OF THE BY-PRODUCTS PLANT. 



FINANCIAL. 



There are three decided advantages possessed by this system of 

 disposing of cannery waste. The first and most striking is that of 



