Estimated Production and Net Earnings

We aim to produce at least 1,000 tons of coal per day
for a starter. This we except to obtain during this year
and increase this output from time to time during the next
three years to 3,000 tons per day, and employ several hun-
dred men. We intend to build large coal bunkers at Prince
Rupert and supply the steamships with bunker coal. Most
all of the ships now sailing from San Francisco and Puget
Sound points to Alaska stop at Prince Rupert, both on their

2

way north and on their way south, Owing, however, to
there being no coal mined in that region now, all ships
have to take four times as much coal with them as they
should. This will be all changed when these mines are
opened up. In time Massett will be a great coaling station
for commerce engaged in the Alaska trade. These large
fleets of steamers all need and must have coal. There is
no coal nearer than Vancouver Island, which is about 600
miles south of Prince Rupert.

It is quite safe and conservative to figure a net profit of
$2.50 per ton on all the coal we will ship from Massett

10

Massett Inlet, front of Company’s property, looking south toward Kumdis Island