1942: Alaska

The outstanding factor of Alaskan history during 1942 was the impact of the war. Preparations for defense had been pushed since 1940 and were speeded after war was declared. Actual hostilities began in Alaska early in June when the Japanese bombed the United States naval base at Dutch Harbor and shortly after occupied Attu, Agattu and Kiska, the three western Aleutian Islands. So thoroughly has Alaska been transformed by the war that five of the major government agencies in the territory found it necessary to withhold the usual information submitted to the public in the Governor's Annual Report. The report of the Governor for the year ending June 30, 1942, in consequence is considerably condensed.

Canadian-Alaska Highway.

Important not only for the prosecution of the war but for the future of Alaska was the opening on Nov. 20 of the Canadian-Alaskan (Alcan) Highway. This highway, stretching from Edmonton, British Columbia, to Fairbanks, Alaska, and approximately 1,600 mi. long, was begun late in March and opened for traffic in less than eight months. Originally planned to be only 9 ft. wide, it was found practical to make the road twice that width and still maintain a construction pace of eight mi. a day. As a whole the road varies from 15 to 30 ft. wide with no grade over 15 per cent.

Much of the construction was in mountainous regions, necessitating the bridging of more than 200 rivers and crossing the continental divide more than 4,000 ft. high. Construction was supervised and much of it done by the Engineering Corps of the U. S. Army. They were aided by the skilled experts of the Public Roads Administration, by civilian contractors and by 6,000 civilian laborers assembled by the Public Roads Administration. Although the road is now open and can be used, some of the construction is temporary and the project is far from finished. The Public Roads Administration which will take over much of the work of completion expects that this phase of the project will take from three to four years before conventional 'maintenance' will begin.

Communication.

The effect of the war can be seen particularly in the statistics of communication.

During the year 146,400 pounds of mail were carried to Alaska from the United States, an increase of 310 per cent. The increase of mail carried to the states was 274 per cent. The regular program of road construction maintained by the Alaska Road Commission through Congressional grants was continued through the year. The principal new project was the grading and surfacing of over 75 mi. of the Glenn Highway and the practical completion of this project by the end of the year. The Glenn Highway leads west from Anchorage, base of the Alaska Defense Command, to the Richardson Highway at Copper Center and thence by connecting roads to the new Alcan Highway. The government-owned Alaska railroad of 500.8 mi. between Seward and Fairbanks was kept open throughout the year with substantial increases over the previous year both in passenger traffic and freight tonnage.

Economic Life.

No statistics are yet available for the fishing industry for 1942. The products of the Alaskan fisheries for 1941, however, showed a marked increase in quantity and value over the preceding year. The increase in quantity was chiefly in salmon products, while the value of all fishery products was considerably higher. Salmon products represented about 83 per cent in volume and about 93 per cent in value of the total fisheries' output in 1941 as compared with 81 per cent in volume and 91 per cent in value in 1940. Over 26,000 people were employed in the commercial fisheries in 1941 with the total value of manufactured fish products estimated at $63,439,593, an increase of $26,998,933 over the previous year. The number of fur seals taken at the Pribilof Islands in 1941 was 95,013, the largest since 1889 and an increase of 29,750 skins over 1940.

As far as possible activity in both the forest and mineral industries was coordinated with the program of defense. Nevertheless, there was a decline in mining. During 1941 the number of men employed in mining was 5,988, a decrease of 405 from the number in 1940. Drafting of men for the army and the lure of higher wages in defense industry brought a shortage of experienced mine labor, the closing of some of the smaller gold mines and curtailment in the operation of some of the larger mines. Despite the war the U. S. Geological Survey and the Territorial Department of Mines continued their work of exploring, surveying and studying the mineral possibilities of the territory.

For the first time in its history the Territory of Alaska established a Department of Labor which began functioning on July 1, 1941, in charge of a Commission of Labor. During its first ten months of operation it conducted an employer-employee educational program, carried out safety and sanitation inspection, surveyed the situation regarding workmen's compensation insurance, enforced the provisions of the women's minimum wage act and negotiated labor disputes. Only three strikes have taken place in Alaska since the Department was established, none of these in 1942.

The aggregate banking figures for the 14 territorial and four national banks doing business in the territory for the fiscal year closing June 30, 1942 were: capital, $972,000; surplus and net undivided profits, $1,464,811; deposits, $28,099,866. These figures were approximately the same as in the previous year except deposits which showed an increase of $5,989,167.

Federal Aid.

Under the War Public Works program Alaska secured allotments of $1,278,000 which have been used to build schools, hospitals, recreational centers, sewer systems, power plants and other services increased by the war. On the other hand the regular Civilian Conservation Corps field work ceased on the last day of the fiscal year, when Congress approved liquidation of the CCC. During the nine years that this Corps had operated it had done much in improving air, sea and land transportation facilities as well as improving sanitation and living facilities in certain areas.

1941: Alaska

Population.

For the first time in its history the territory of Alaska showed a rapid growth in population. Complete figures of the sixteenth decennial census of Alaska, taken in the fall of 1939, but not available until the end of the 1940 fiscal year, showed a population of 72,524, an increase of 22.3 per cent over the preceding census. By race the 1939 census figures reveal a white population of 39,170, of whom 30,384 are native-born and 8,786 foreign born. Of the 32,458 native stock, 32,248 were native born and 210 foreign born. The native stock was divided as follows: Alcut, 5,559; Eskimo, 15,576 and Indian, 11,283. There were 896 inhabitants of other races of whom 263 were Japanese. This increase in population has continued during more recent months, and it is the belief of Governor Ernest Gruening that the population of the territory had passed 80,000 by the end of 1941, an increase of 35 per cent over 1930.

Defense.

It was the increased activity pertaining to defense which was the chief cause for the unusual increase of population. Defense activity, in fact, more than anything else dominated the life of Alaska during 1941. Except for two companies of infantry at Chilkoot Barracks, a military and naval establishment in Alaska had been virtually non-existent before 1939. By the middle of 1941 $70,000,000 had been authorized for military purposes. New navy bases were under construction at Sitka, Kodiak and Dutch Harbor. Plans were underway to add substantial army contingents to those bases and to create additional bases at Seward, Nome and elsewhere. A large airfield program was instituted with major airports on Annette Island, at Yakutat, Boundary, Big Delta, West Ruby, Bethel and Cordova. Plans were started for an Alaskan trunk highway to connect with important roads in the territory. The work of the weather bureau was being enlarged, as was that of the Coast and Geodetic Survey, the United States Guard and other territorial services and all were more and more pointed definitely to defense efforts.

Economic Progress.

'The Territory of Alaska,' said the Governor of the Territory in his annual report for the year ending June 30, 1941, 'reached an all time high of prosperity during the past year.' This he attributed to the defense program which had added a third 'economic prop for the Territory, which hitherto had rested none too securely on two main industries, gold mining and salmon fisheries.' The value of metal production for 1940 (last figures available) was $28,470,000 as against $25,296,000 in 1939. Of this gold represented $26,178,000 in 1940 and $23,279,000 in 1939. The 1940 statistics showed an increase in the value of gold, silver, platinum, tin and coal over 1939 but a decrease in value of copper and lead.

Despite the general prosperity the products of the Alaskan fisheries in 1940 decreased considerably, the total quantity being the smallest for any year since 1927. The total value of the fishery products for 1940 was $36,440,660, a decrease of $3,663,833 from the preceding year. Of this value salmon represented 91 per cent, both in 1939 and 1940. Decline in the fisheries was due to light runs of salmon and herring in certain localities, necessitating curtailment of operation in order to rebuild the populations to their normal abundance, and to the suspension of operations by the Alaskan whaling stations because of the low price of whale oil. The decline in the value of the fishery products was reflected in the decline of the export trade. The value of shipments of all products from Alaska to the United States declined from $63,245,951 for the year ended June 30, 1940 to $61,153,874 for the year ended June 30, 1941, a decrease of $2,092,077.

On the other hand, successful expansion and excellent crops were reported in the Matanuska Valley colonization project and enough evidence was collected to prove the practicability of cereal production and dairying in this region.

Nothing illustrated the economic development of the past year better than that of air transportation. Work completed during the fiscal year 1941 now provides the Territory with an airways system from Nome to Ketchikan and improvements under way will expand the system to the Alaska Peninsula and the Aleutian Islands. Inauguration of scheduled air-line trips between Alaska and the United States greatly increased commercial air travel in Alaska. The growth of aviation in Alaska may be indicated by the facts that flying hours in 1941 increased 24 per cent over 1940, number of trips 33 per cent, number of miles flown 23 per cent, number of passengers carried, 33 per cent and number of passenger miles 37 per cent.

Matters of Government.

From July 1, 1940, to June 30, 1941, Territorial vouchers were drawn for the following purposes: Education, $532,692.48; Aid to Municipalities, $507,104.17; Welfare and Relief, $1,090,737.25; Development of Territory, $207,179.61; Industrial Development, $153,015.24; Administration, $130,179.03, a total of $2,620,907.78. It will be noted that the major item in the budget was welfare and relief, a good proportion of which went to the native population for health, sanitation, relief and other projects of a similar type.

The annual meeting of the territorial legislature was given added interest in 1941 by the effort of Governor Gruening to bring about a new tax program and other reforms. Pointing out that the existing tax structure was inadequate, unequitable and discriminatory in favor of the absentee owners of the mining and fishing industries as well as of the imported labor coming to Alaska in the summer, the Governor recommended the levying of two new basic taxes, a corporate and personal income tax and a general property tax. At the same time he recommended the repeal of over 30 existing taxes. Although the proposals would still have left Alaska the most lightly taxed political entity of the United States, the program was defeated in its entirety. Among the few constructive pieces of legislation was a much needed traffic law and one creating a Territorial Department of Labor.

1940: Alaska

Population.

Ernest Gruening, Governor of Alaska, reporting for the fiscal year ended June 30, 1940, pointed out that the 1940 census showed the first substantial increase in Alaska's population since the boom period around 1900. The population, which had risen to 64,356 in 1910 and had declined to 59,278 in 1930, is now estimated to be approximately 73,000, an increase of 13,700 for the decade. This increase was uniform throughout the Territory, equally among white and native population, and seemed to indicate that Alaska had entered a new period of consistent growth. Preliminary estimates for the chief cities are as follows: Juneau, the capital, 5,748; Ketchikan, 4,601; Anchorage, 3,488; Fairbanks, 3,304; and Sitka, 1,945.

Governor's Recommendations.

The Governor's annual report, noting the decline of the gold-rush days and the development of a more stabilized civilization, urged the establishment of more adequate health services, particularly a tuberculosis sanitarium and an orthopedic hospital for crippled children. The death rate for tuberculosis in 1940 reached 498 per 100,000, the highest rate in eight years. He also urged improved communications and a thorough revision of the territorial tax structure. Except in a few incorporated towns, there is no property tax in Alaska, no taxes on corporations or incomes, no taxes on banks, utilities or mercantile establishments, except a nominal license fee. With these large categories of occupations and individuals wholly untaxed, Alaska seems unique in the civilized world. Pointing out that the economy of Alaska 'rests none too securely' on two props, mining and fishing, the Governor urged the development of new activities and suggested that the most obvious economic resource to be developed was the recreational industry.

Trade Relations.

Commerce between Alaska and the United States, virtually her only customer, declined during the year ended June 30, 1940, from $73,139,898 to $63,245,951, a drop of $8,893,947 from the previous year. The decrease was chiefly in shipments of canned salmon and other fish, and was due rather to a poor fishing season than to a decline in demand. On the other hand, gold production for the year reached a value of $20,951,791, over $1,500,000 more than the preceding year, and an all-time high. This brought the total production of gold in Alaska to over half a billion dollars since records have been kept. The expansion was due to higher prices for gold, and to the introduction of new machinery and modern methods which made mines hitherto unprofitable worth operating. There was expansion in one other commodity, fur skins, the total export value for the year amounting to $2,844,262. Although the year saw a considerable drop in the value of exports, the decline in the value of imports from the United States was small — from $44,759,880 to $43,827,202, or $932,678 less.

Economic Progress.

Despite a drop in exports the general economic condition of the Territory did not slump. This was due in part to increase in tourist traffic and to Federal defense activity. The number of tourists (not including those transported on government vessels) increased from 68,065 to 75,269. Defense work was continued on the Navy bases at Sitka and Kodiak and the Army bases at Fairbanks and Anchorage. Unemployment in the Territory declined during the year, partly as a result of governmental efforts to encourage the use of native residents rather than imported labor in the seasonal fishing industry. The total assessed valuation of the 20 incorporated towns in Alaska was $35,441,644, an increase of $3,533,039 from 1939.

The activities of public services of various kinds showed no diminution during the year. The government-owned Alaska railway continued a policy of improvement and rehabilitation and closed the year with an income in excess of expenses amounting to $341,663. The Alaska Road Commission, created by Act of Congress in 1905 as a Bureau in the War Department, built 19½ miles of new road, regraded and widened 47 miles and resurfaced 121½ miles. Among its other projects it constructed or improved airports at eight places. The Public Roads Administration, with money from Congress for roads in and adjacent to the national forests, spent $407,077 for maintenance and enlargement of such facilities. Through funds sanctioned by the territorial Legislature, the Griffin Memorial Hospital at Kodiak was refurnished, the Skagway school gymnasium was improved and a gymnasium constructed for the Douglas public school. During the year five Public Works Administration projects were under construction at a cost of $344,000. They included such municipal improvements as paying, sidewalks, and the building of water systems and sewers, for which the municipalities contributed 55 per cent. Of the territorial expenses during the fiscal year of $2,751,107.44, the chief items were welfare and relief $1,028,729.37 (38 per cent); education, $511,105.13 (19 per cent), and aid to municipalities $480,863.71 (17 per cent).

Transportation.

Some progress was made toward solving one of Alaska's greatest problems, that of improved transportation facilities. During the year Alaska was linked to the United States by regular commercial airplane service twice a week. While aeronautical operations expanded, new landing fields, radio stations, and Weather Bureau facilities were established both for the benefit of improved transportation and national defense. See also ANTHROPOLOGY; ARCHAEOOLOGY.

1939: Alaska

Economic Progress.

The annual report of the Governor of Alaska for the fiscal year ending June 30, 1939, showed economic losses in certain activities and gains in others. The total value of exports declined from $81,906,036 for the year ending June 30, 1938 to $72,139,898 for 1939, a decrease of $9,766,138. The chief export losses were in canned salmon and copper ore, the first and third of Alaskan exports in point of value. The decline of $5,486,249 in value of salmon exports was due primarily to fall in price rather than amount shipped out; the decline of $4,353,904 in value of copper exports was the result of the closing down of several of the largest mines. Gold, on the other hand, Alaska's second most important export, increased its shipment by $871,987, and its production was greater in dollar value than in any year in the history of the territory. Encouragement was also derived from increased production of platinum. Despite decline in exports Alaska had a favorable balance of trade with the United States of $27,380,018 for 1939. In percentage of total value the exports of Alaska for fiscal 1939 were as follows: canned salmon, 51.4; all other fish and fish products, 9.0; gold, 27.0; fur skins, 3.6; all other products, 9.0.

While there was a decline in the production of certain commodities, the Territory as a whole showed progress. The total assessed valuation of the 17 incorporated towns in Alaska for the fiscal year was $31,908,605, an increase of $2,345,165 from 1938. Bank deposits showed an increase of $1,272,385 over the previous year. The desire of the Territorial Government to expand transportation facilities as rapidly as possible was seen when the 1939 legislature appropriated $800,000 for roads and landing fields, twice the amount made available during the preceding biennium. As the development of Alaska is to no small extent dependent upon the enlargement of transportation facilities, a good share of the Government's attention is devoted to such projects. During 1939 railroad facilities were improved, including the opening of a hotel at McKinley Park; new roads were built by the various boards and commissions (in part by Federal contributions) and a network of radio stations was located at strategic points for the benefit of aviation. On Jan. 14, 1939, a meteorological radio station was completed in Juneau and began operations broadcasting information for 8 hours daily. Realization by Alaskans of the importance of aviation is evident from the fact that of the 121 aviation fields in the Territory, only 8 have been built by the Federal Government. In a little over 10 years air operations have developed in Alaska, which, in relation to population, exceed anything in the world.

Education and Social Welfare.

Educational facilities were maintained and expanded during the year. The University of Alaska showed increased registrations both in regular and extension courses. There was a registration of 291 regular students and 33 degrees were conferred. Three agricultural experiment stations and various types of extension work, largely financed by the Federal Government, were operated successfully. In addition to elementary schools, 4-year high schools accredited by the University of Washington were maintained in 11 cities. The Office of Indian Affairs supervised 99 day schools and 2 boarding schools with average attendance of 3,455.

Relative to the population and income of the Territory an extensive health program was maintained by the Territorial Department of Health, the Medical Service of the Office of Indian Affairs and the United States Health Service. The same was true of other branches of social welfare. During the year 10 projects with total appropriations of $1,145,000 were under construction by the Public Works Administration, two thirds of which were in Fairbanks and Anchorage. For the Works Project Administration $133,313 was allotted for 29 projects.

Matanuska Valley Project.

The famous Matanuska Valley Colonization Project, established in 1935 by the Federal Emergency Relief Administration and operated since September 1938 by the Department of the Interior, was in a prosperous and more stabilized condition. Of the 202 families originally settled, 131 departed in the four years following settlement but 71 additional families were admitted. During 1939 acreage was expanded and production increased. Success was due in part to the efficient operation of the Matanuska Valley Farmers Cooperative Association.

Finance.

Expenditures by the territorial treasurer for the fiscal year ending June 30, 1939 were listed as $2,532,887, of which education amounted to $999,616 or 39 per cent, and welfare and relief $724,548, or 29 per cent. In his annual report the Governor urged more liberal appropriations for roads and other transportation facilities, the construction of an international highway, aid in the construction of a radiotelephone network among the villages of Alaska and the granting of full territorial government.

Matters of Government.

Following the researches of various Government agencies, the Department of the Interior on Aug. 14 published a survey of Alaskan potentialities prepared by Henry Slattery, Under Secretary of the Interior. The survey pointed out that the resources of Alaska are quite different from those of the United States and invited private capital to cooperate with the Government in aiding the development of the Territory. It emphasized the fact that Alaska was the 'last frontier,' that 98 per cent of the public land was still available for homesites and it noted the resources of tin, newsprint, fur and certain kinds of fish for which there is a ready market in the United States.

After prolonged ill health Governor John W. Troy resigned, his resignation to take effect on Oct. 15. His place was taken by Dr. Ernest Gruening, Chief of the Division of Island and Territorial Possessions of the Department of the Interior. The appointment was made by the President on Sept. 2.

1938: Alaska

Economic Progress.

'In practically all lines of endeavor,' said Governor John W. Troy in his annual report. 'Alaska made substantial progress during the fiscal year ended June 30, 1938.' Commerce, which enjoyed a healthy increase over the previous year, showed exports to the United States of $81,906,036 and imports of $42,701,222 with a trade balance in favor of Alaska. Of the exports from Alaska, the most important was canned salmon comprising 52.1 per cent in value and valued at $42,677,210; gold comprising 22.7 per cent and valued at $18,575,022 and other fish and fish products valued at $7,547,815. Fiscal 1938 showed an increase in the amount of gold and copper ore exported, but a decline in the amount of fish, particularly salmon.

Other aspects of Alaskan economic life continued in a healthy condition. On June, 30 the eleven territorial and four national banks in the Territory showed deposits of $15,308,175, an increase of $533,512 over the previous year.

Transportation.

Records of the five regular steamship companies serving Alaska revealed a total number of 73,209 passengers carried as compared with 72,734 the previous year. The Government-owned Alaska Railroad, running regular passenger service between Seward and Fairbanks, with supplementary service out of Fairbanks to Nenana and McKinley Parks and out of Seward to Anchorage and Palmer, had total operating expenses of $2,142,617.97 and total revenues of $2,212,844.65. With other small profits the railroad had a total income in excess of expense of $76,703.69.

Transportation improvements during fiscal 1938 included the completion of a $450,000 hotel project at the McKinley Park station on the Alaska Railroad, the completion, by the Alaska Road Commission, of 56¾ miles of road and 54 miles of sled roads, besides improvement and maintenance of existing roads. The Bureau of Public Roads of the United States Government expended $634,097 during the past year while the Territorial Road Board operated on a territorial appropriation for the biennium ending March 31, 1939, amounting to $400,000. The lack of a complete highway system in the Territory has developed a large volume of passenger and freight traffic by airplane which has led to a growing demand for more and larger airfields. Sixteen new fields were constructed during the year, making 109 in all, and many existing fields were improved. Seaplane floats have also been established at Craig, Wrangell, Petersburg, Sitka, Hoonah, Tenakee, and Skagway. Alaska benefits each year from the River and Harbor Acts of the United States Congress, and projects were completed during 1937 and 1938 at Sitka, Juneau, Skagway, Seward, Nome and other harbors. During the year a new radio beacon was established on St. Paul Island, Pribilof Islands, and a new concrete light and fog signal building was placed in commission at Mary Island Light Station. For the year ending June 30 1938, 5,634,461 passenger miles were flown in Alaska and 3,415,750 pounds of freight carried.

Education; Medical Service.

Social progress is demonstrated through the work of the University of Alaska, with a total enrollment, including short courses, of 952, through the work of the Agricultural Experiment Station, which carried on 14 projects during the year at the University and Matanuska stations, by the extension service and by the establishment of a territorial experiment station for fur-bearing animals. Four-year course high schools accredited by the University of Alaska are maintained in eleven cities. In addition the Office of Indian affairs operated 90 elementary schools and 2 vocational schools with an increased enrollment for the year. For medical service to the Alaskan natives the sum of $370,000 was appropriated for the fiscal year 1937-38. Seven hospitals were operated while 12 others furnished hospitalization on a contract system. The most serious native medical problem continues to be tuberculosis and little impression is being made on it with existing facilities. Statistics reveal that mumps led all recorded communicable diseases during the year, followed by tuberculosis.

Matanuska Valley Project.

The Matanuska Valley colonization project, established in May 1935 by the Federal Emergency Relief Administration and continued under the direction of the Works Progress Administration has continued to develop. Although the original 200 settlers have declined to 165, those remaining have cleared 2,300 acres of timber land, successfully harvested two crops and are working out a successful community through the Matanuska Valley Farmers Cooperative Association under the Alaska Rural Rehabilitation Corporation.

Relations with Japan.

A difficult Alaskan situation was improved on March 25 when Japan assured the United States that she would stop her vessels from salmon fishing in Alaskan waters.

Recommendations of Governor.

In his annual report Governor Troy urged the development of aeronautics through Government aid, and a continuation of aid to roads, schools and other public projects. He urged that the full territorial form of Government be given to Alaska, and suggested that the serious liquor problem among the Indians be met by reenacting a law of 1913 forbidding the selling of intoxicating liquors to Indians.