DEVELOPMENT OF PULPWOOD RESOURCES. 27 



AMOUNT OF CAPITAL REQUIRED. 



The production of pulp and paper is always in large units, on 

 account of the extensive investment for the developments which 

 must be made for power, manufacture, transportation, and other 

 facilities. Koughly, the capital required for manufacturing a given 

 amount of stumpage into paper is thirty to forty times greater than 

 that for manufacturing it into lumber. In 1916 the cost of a pulp 

 and paper plant was figured by the Forest Service at $25,000 per ton 

 for a balanced ground-wood sulphite and paper plant producing 75 

 tons per day. The same plant to-day would probably cost $4,000,000. 

 The trade paper, Pulp and Paper Magazine, of Canada, for January 

 15, 1920, cited two proposed developments. One requires a capital 

 of $5,000,000 to build a plant covering 100 acres with an annual 

 capacity of 75,000 tons of sulphite pulp and 35,000 tons of news- 

 print. Twelve thousand horsepower are required. Another plant 

 with a 200-ton daily capacity of sulphite pulp and a ground-wood 

 mill with a daily capacity of 20Q tons of newsprint calls for an 

 outlay of $5,000,000 to $6,000,000. There is likely to be great diver- 

 gence in costs of plants of similar capacity in Alaska, depending 

 on the cost of power development and the inherent conditions of the 

 site. 



The careful investigation of various sites by a competent engineer 

 is necessary for the proper correlation of initial costs as against costs 

 of operation. A prospective purchaser will, of course, make his own 

 investigations of all essential features. One applicant is known to 

 have spent more than twenty-five thousand dollars through several 

 experts in investigations of pulp timber, water power, and general 

 conditions before making formal applications for timber or water 

 power. 



APPLICATIONS FOR TIMBER AND WATER POWER. 



There is no prescribed form of application for timber, and no 

 priority is established by the filing of an application, for the award 

 is based on the acceptance of the highest satisfactory bid. An appli- 

 cation filed with the Forest Service furnishes a basis for the deter- 

 mination as to whether the timber is for sale and, if the application 

 is from responsible parties, for the examination and advertisement 

 of the timber. Definite statements as to the requirements, plans, re- 

 sources, and tentative organization of the applicant are very desirable 

 as an aid to the Service in considering applications. Applications 

 should preferably be made to the district forester, Forest Service, 

 Ketchikan, Alaska (Juneau, Alaska, after July 1, 1921), although 

 they may be made through the district forester, Forest Service, Port- 

 land, Oreg., or the Forester, Forest Service, Washington, D. C. Ap- 

 plications for water power should be made to the Federal Power 

 Commission, Washington, D. C. 



