ANNUAL REPORT OF THE GOVERNOR OF ALASKA INTRODUCTION Alaska made substantial progress during the fiscal year that ended June 30, 1935. A few labor strikes are practically all that clouded the beginning of the new year. The most important of these strikes was the strike at the Alaska-Juneau gold mine and a fishermen's strike in the vicinity of Cordova. Aside from these striking miners and fishermen, there was scarcely any unemployment among those who were able to work and wished to do so. There was no dire poverty to speak of. The various N. I. R. A. activities including P. W. A., F. E. R. A., C. C. C. in 1933 and 1934, substantially supported by liberal Territorial indigent and welfare appropriations, had served to relieve distress. Our experience has convinced me that the best method to fight the depression is to carry on a large program of construction including the erection of necessary buildings, schools, hospitals, etc. Of course, there would still be need for direct and work relief for those who find it impossible to secure employment through these public projects and private enterprises and for unemployables. I believe the Territorial municipal governments ought to take care of the unemployed. This has been done throughout the Territory to a very large extent. The fishermen's strike at Cordova and elsewhere reduced the 1935 salmon pack to the extent of $500,000 or $600,000. However, the termination of the Alaska-Juneau miners' strike, July 5, in a manner that indicates there will be little or no further interruption in mining through labor troubles, points to a productive and prosperous mining industry throughout the coming fiscal year. The increase in gold production for the year just ended over that for the previous year indicates what we may expect from continued operation under the increased value of gold. The outlook for the mining industry is rosy. The salmon pack the last year was the largest in the history of the Territory. This indicates that the efforts to maintain the supply of raw materials for fisheries have been successful. The year last past is further proof that immediate expansion of activities and industry in Alaska may be advanced further by encouragement to mining-particularly, gold mining-than in any other way. The advancement for mining activities always means an increase in population, and people is what Alaska needs more than any other one thing. Increased population means greater consumption of foodstuffs and other things produced in the Territory. This suggests the need for more and better roads and more airplanes and better aids to navigation; liberal appropriations for roads, bridges, trails, and airways are those indicated. TERRITORIAL FINANCES The fiscal system of the Territory is controlled by laws enacted by the Territorial legislature, and is separate from revenues received by the Federal Government from business and trade licenses which are covered into and disbursed from the "Alaska fund " in the Federal Treasury. The Territorial government has no system of property taxation. The municipal governments imposed real and personal taxes within their boundaries. Territorial revenues are derived from gross receipts of railroad, receipts from national forests in the Territory, school tax, and those from mail, residence, and license taxes and taxes on resident and nonresident fishermen, inheritance and profit taxes, escheated estate, and from a tax imposed upon production in fisheries, lumbering, mining, and other industries. The condition of the Territorial treasury for the year ended December 31, 1933, was as follows: Balance of cash on hand Jan. 1, 1934_. ALASKA FUND $381, 524. 82 1, 935, 183. 70 1, 800, 310. 26 516, 398. 26 The Alaska fund is revenue derived from business and trade licenses issued outside of incorporated towns and through the Treasury of the United States and is divided as follows: 65 percent for construction and repairing of roads and trails, 25 percent for maintenance of schools, and 10 percent for relief of indigents. TERRITORIAL BANKS At the close of the year there were 11 Territorial banks and 4 national banks doing business in the Territory. The Territorial banking board maintains supervision over Territorial bank institutions and requires published statements of all banks at stated intervals. The total deposits in Territorial banks June 30, 1935, totaled $7,440,597.48, as compared with the total of $6,626,573.71 at the close of the previous year. Combined capital of Territorial banks amounted to $615,000. Combined capital of national banks on June 30, 1935, totaled $275,000 with a surplus and net undivided profits of $233,335.81 and a deposit of $4,521,683.30. COMMERCE OF ALASKA During the fiscal year 1935 there was an increase in the commerce between the United States and Alaska of approximately $14,520,054. About 80 percent of this increase was due to greatly increased production of fish products, especially canned salmon; and the balance accountable to an increased production of gold and other products. The balance of trade in favor of Alaska was $29,872,022, as compared with $18,262.968 in 1934. TOURIST TRAVEL For the first time in several years, records of tourist travel to Alaska during the fiscal year 1935 disclose a decided increase. Five regular steamship lines served Alaska with 33 vessels during the tourist season, carrying capacity loads. All passenger and freight vessels operating to Alaska offer service which compares favorably with that offered by steamship lines elsewhere. It is believed with improving economical conditions throughout the United States that Alaska will shortly become the mecca of thousands of travelers from the States who are becoming Alaska-minded. THE ALASKA RAILROAD The summer passenger-train schedule was in effect on the Alaska Railroad at the beginning of the fiscal year and provided two round trips per week between Seward and Fairbanks and one round trip between Fairbanks and McKinley Park. In September passenger-train service was reduced to one round trip per week between Seward and Fairbanks, and on June 8, 1935, the summer passenger schedule was resumed with the same schedule as operated in previous years. Weekly mixed-train service was maintained on the Chickaloon branch to serve the coal mines. Regular service with one round trip per week between Seward and Fairbanks was maintained throughout most of the year, with additional service when required. Steamboat service was maintained throughout the season of navigation between the rail head at Nenana, Tanana, Ruby, Holy Cross, and Marshall. The combined pay roll, including Chicago, Seattle, and Washington offices, was $1,338,825.27. The number of rail-line passengers carried amounted to 23,310, with rail-line passenger-miles amounting to 3,184,778. Rail-line freight traffic amounted to 109,214 tons, of which 73,060 tons consisted of coal. Passenger revenues amounted to $116,085.55, while freight revenues amounted to $1,091,445.81. Miscellaneous operating revenues amounted to $143,171.25. Water-line passenger revenues amounted to $8,510.95, while freight revenues amounted to $48,674.70. The total rail and water-line revenues, including nonoperating income, was $1,476,567.76. The cost of maintenance and operation of rail lines, including replacements was $1,488,265.11. The operating ratio of the railroad for 1935 was 105.61 percent. The maintenance and operating cost of water lines was $69,298.07. The total deficit for rail and river boat operations was $83,607.66. The net deficit, including expenses of operation of rail and water lines with miscellaneous operations, less revenues of operation and nonoperating income, was $73,674.66, or a decrease of 58.83 percent from the previous year. A progressive stride in the colonization of Alaska was made when during May 1935, 200 colonists and their families were transported to Alaska, and under the Government-sponsored Alaska Rural Rehabilitation Corporation, were placed upon land in the Matanuska Valley. The railroad continued to disseminate information to prospective settlers and others interested in Alaska. There was a decided increase in the number of inquiries received and this, no doubt, was because of publicity in connection with the rehabilitation project. Withal, very few independent settlers were able to establish themselves in the Territory, no doubt because of lack of capital to carry on until crops could be grown. TERRITORIAL ROAD COMMISSION Road-building activities in the Territory of Alaska are administered under three heads: The Bureau of Public Roads under the Department of Agriculture; the Alaska Road Commission under the Department of the Interior; and the Territorial Road Board consisting of the Governor, the Territorial treasurer, and the highway engineer. Funds appropriated by the Territorial Legislature are expended by the Territorial Road Board direct and in cooperation with the Bureau of Public Roads and the Alaska Road Commission, in the construction of roads, trails, bridges, aviation fields, and shelter cabins. These funds are augmented by revenues derived from sale of timber in national forests. There are in excess of 200 miles of Territorial roads and approximately 600 miles built and maintained jointly with the Alaska Road Commission. Since 1917 when this work was authorized, 274 shelter cabins have been constructed along the principal trails at a cost of $150,000. BUREAU OF PUBLIC ROADS Funds designated for expenditure by the Bureau of Public Roads have been available for use in the Territory since 1917. Construction and maintenance operations from 1917 to 1920 were handled by joint representatives of the Alaska Road Commission and Bureau of Public Roads. On July 1, 1920, a branch office of district 1 of the Bureau was established and an assistant district engineer placed in charge. Since that date all roads within the national forests have been constructed and maintained by the Bureau of Public Roads. During the period from July 1, 1920, to March 1, 1927, plans for proposed projects and major problems in construction work were submitted to the district office at Portland, Oreg., for approval. On March 1, 1927, district 11 of the Bureau of Public Roads was created with headquarters at Juneau. Federal funds now being expended on the roads within the national forests are provided by the Federal Highway Act, approved June 11, 1916, with subsequent amendments thereto, and by the National Industrial Recovery Act, approved June 16, 1933, Federal appropriations have been made available for expenditure by the Bureau of Public Roads-$7,316,251 for roads in and adjacent to the national forests in Alaska. In addition to the Federal funds so provided, $373,793 have been made available by the Territorial board of road commissioners, making a total to June 30, 1935, of $7,690,044. A total of 248 miles of highways have been constructed and are now under maintenance by the Bureau with funds provided under the above-mentioned Federal Highway Act and in cooperation with funds made available by the Territorial board of road commissioners. An additional 25 miles are at present under construction and will be completed within the present year, making a total of 273 miles of forest highways. A total expenditure of $508,107.12 has been made during the past fiscal year. All funds have been expended on projects which are a part of a highway-development program jointly recommended by representatives of the Bureau of Public Roads, Forest Service, and Territorial board of road commissioners and approved by the Secretary of Agriculture. THE ALASKA ROAD COMMISSION The Alaska Road Commission was created by act of Congress approved January 7, 1905, as a bureau of the War Department. By act of Congress approved June 30, 1932, the activity was transferred to the Department of the Interior. Under orders issued by the Secretary of the Interior, administration of the activity was assigned to the Governor of Alaska in his capacity as ex-officio commissioner for Alaska, with a chief engineer in direct charge of the work under the direction of the Governor. The Alaska Road Commission is charged with the construction and maintenance of roads, bridges, and trails in Alaska. Construction and maintenance of air fields, telephone lines, and shelter cabins is also undertaken for the Territory. Funds are made available for the work by annual congressional appropriations, from the "Alaska fund ", and from contributions. by the Territory of Alaska and others. During the past year in addition to the above usual sources of funds a balance of $912,124.22, allocated by the Public Works Administration under the National Industrial Recovery Act, was available for expenditure and on June 10, 1935, $446,500 was allotted under the Emergency Relief Act for road construction. The total costs to the end of the fiscal year are $21,543,492.79, of which $11,327,062.31 was for new work and $10,216,430.48 was for maintenance and improvement. The total expended to June 30, 1935, is $22,107,952.97. Of this amount $15,902,655.26 was appropriated by acts of Congress, $4,330,686.79 was allotted from the Alaska fund, and $1,874,610.92 from Territorial appropriations and contributions. 24396-35-2 |