MATANUSKA COLONIZATION PROJECT

A preliminary survey of Alaska was made in August 1934, by a representative of the Federal Emergency Relief Administration which resulted in that Department's sponsoring, under its Rural Rehabilitation Division, a colonization project in the Matanuska Valley, whereby two hundred stranded families from the sub-marginal and drouth areas of the States were transported to the Matanuska Valley, the first contingent of sixty-six families from Minnesota arriving on May 10; the second contingent of sixty-seven families each from Michigan and Wisconsin arriving on May 23.

The Matanuska Colonization Project is one of a large rehabilitation program sponsored by the F. E. R. A., which began with their adoption of the policy of trying to take well selected families off of the relief rolls, or trying to prevent them from having to go on the direct relief rolls, by placing them on the soil and assisting them to become rehabilitated by gaining subsistence from the land, and wherever possible from coordinated industries and enterprises. The object has been two-fold: (1) to restore their morale as self-sustaining citizens; (2) to relieve the heavy drain on the taxpayers which direct relief (or the dole) calls for.

To permit the emergency relief administration to lawfully arrange to acquire land, convey, lease, and rent property to rehabilitants with repayments over a considerable period of time, and to make the necessary contracts in connection with furnishing equipment, etc., it was necessary to form a corporate entity to carry on these activities. The Alaska Rural Rehabilitation Corporation was incorporated for that purpose on April 12, 1935. In order to speed the initiation of the project, pending the organization of the Alaska Corporation, the initial arrangements for transportation of the colonists and purchase of supplies and equipment, were made by the purchasing department of the Department of the Interior through the established California Rural Rehabilitation Corporation; also through this corporation, the F. E. R. A. made provision for sending to the valley 400 relief workers from the transient camps of California to assist in clearing land and construction of dwelling houses and other buildings for the colonists, and school house, trading post, cannery, creamery, hospital and other buildings for the community center which was established at Palmer, Alaska, near the center of the valley.

Two hundred tracts of not less than 40 acres each were surveyed, all within a radius of 8 miles from Palmer, and drawing was by lot following the arrival of all the colonists.

The colonists were housed temporarily in tent centers. Construction of permanent dwellings on the tracts, at the time of closing this report was in progress together with establishment of the community center, looking to a sucessful completion of the project.

PUBLIC WORKS ADMINISTRATION

The benefit of Public Works Administration funds were extended to Alaska in the fall of 1933 with the allotment of road building funds to the Alaska Road Commission.

An allotment of $175,000 was received during the summer of 1934 for the construction of 20 Territorial schools in localities where Territorial finances were insufficient.

With the exception of the Nome school for which the plans were enlarged and additional funds secured, and one other school delayed by weather conditions, the entire program was completed before the winter of 1934.

The Douglas-Juneau Bridge, a $250,000 project, has been erected under the supervision of the Alaska Road Commission.

Non-Federal Public Works benefits were granted to Alaska by the appointment of the Governor as acting State engineer to accept applications for loan and grant from the several municipalities for much needed civic improvements.

Applications have been received and allotments made to the following towns: Juneau, Sitka, Wrangell, Fairbanks, Douglas, Skagway, Seward, Cordova, Anchorage, and Valdez.

RECOMMENDATIONS

1. I recommend the establishment of a full Territorial form of government in Alaska. No people are so interested in their State as those who live in it and there are none so qualified to determine the problems and policies of the government. The Territory should have authority to create county or other organizations to control local matters, bringing the government closer to the people. That is impossible under the present system.

2. Continued growth of Alaska depends largely upon vigorous development of mining-particularly gold mining. Such development would cause expansion of population and increase of all phases of human activity. Title to nearly all the mineral lands in Alaska is in the Federal Government. The Federal Government should assist in the development of this land, and to that end, I urge sufficient appropriations for the United States Geological Survey and Bureau of Mines to do this work and to permit their cooperation with the Territory and the office of the Territorial mining organization. The increase in gold valuation will foster gold mining development, but a system of quick examinations of new and old discoveries would stimulate prospecting and contribute to mining development. The area and resources of Alaska would provide, if developed, relief for the over population of congested centers throughout the country. People brought to Alaska to prospect for gold and finding employment in public works would furnish population that would make markets for agricultural products, timber, and other resources of the Territory.

3. The Federal Government ought to grant to fur farmers title to not less than 160 acres of the lands they now occupy through leases or otherwise, and upon which their improvements are located.

4. There should be greater cooperation by the Office of Indian Affairs and Federal and Territorial agencies in aiding destitute, aged, and afflicted Indians, and Congress should make larger appropriations for this purpose.

5. There should be greater activity on the part of the Federal Government toward the extermination of predatory animals and other enemies of the fish, game animals, and game birds of the Territory.

6. I urge liberal appropriations for the improvement of national parks and monuments and the encouragement of tourist travel in Alaska.

7. Efficient management of the Alaska Railroad has practically eliminated the deficit in connection with its operation. The railroad, as well as highways, air fields, etc., should be treated liberally and their utilization to the fullest extent encouraged.

8. In the development of Alaska, perhaps the greatest need which Government can supply is adequate transportation. I have especially in mind, roads, trails, bridges, and air service. In order to develop the resources of the Territory the Federal Government should be liberal in contributing to all these things. Right now, perhaps, the matter of paramount importance is the development of air service and of first consequence in air service is air-mail routes. A mail route through the Territory from the States to Nome with airports in Ketchikan, Juneau, Fairbanks, Nome, and other ports. A route from Anchorage or Fairbanks, or both, to the Kuskokwim country at Bethel is also greatly neded. This would require not only funds for carrying the mail but the building and improving of air fields and other aids for aerial investigations where necessary. Not only is quick distribution of mails essential, the operation of planes on scheduled routes would be impossible without mail contracts. I earnestly recommend appropriations for all phases of this transportation scheme.

9. I urge the extension of a comprehensive program of survey for the public domain in Alaska as a means of increasing populations. 10. The construction of an international highway connecting the highways of the United States, through British Columbia and Yukon territory, with the highways of Alaska would contribute immeasurably to the growth of Alaska and it ought to be built at the earliest possible time.

11. I believe the general reindeer supervisor should be given all of the authority that is necessary to carry out his recommendations on the field.

12. The Governor's office should have at least one more competent secretary at a good salary.

13. Improvement to harbors and waterways should be continued and speeded up.

14. The establishment of naval and Army bases in Alaska is urged. Alaska's position on the shortest route to the Orient would give submarines and airplanes command over the sea and make impossible a hostile movement of fleets of warships or transports against the American Pacific coast. To coperate with the Navy there should be Army airplanes and other Army forces.

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JOHN W. TROY, Governor.