History Overview: 1917-1941

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A History of Prince William Sound, Alaska

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World War I affected Alaska and Prince William Sound in a number of ways. During 1916 and 1917, increased wartime demand for copper created a temporary mining boom. Copper which had sold for around fourteen cents a pound during the early years suddenly rose to thirty two cents a pound in 1916. Consequently, the Kennecott mines operated at peak production, and copper ore worth as much as two to three million dollars a month was shipped through Cordova. However, following the war, reduced demand and a surplus created by the opening of the Kennecott copper mines in Chile caused copper prices to fall to ten cents a pound in 1919 and finally to five cents a pound in 1932. Although the Kennecott and Latouche mines continued production, most of the Sound's copper mines closed down following World War I.

The loss of mining in the Sound was more than offset by expansion of the fishing industry. In terms of economic importance, the fishing industry in Alaska during the late '20s and early '30s far outpaced mining, timber, fur farming and tourism. At times, the fishing industry generated as much as 85% of the territory's meager revenues and the value of salmon taken from territorial waters exceeded the ore extracted from its mines by a factor of two.

The military boosted the industry when it purchased salmon from Alaskan canneries to feed troops during the war. When the military canceled its salmon contracts after the war, the price crashed due to a surplus. The salmon packers started dumping salmon which was to little avail as a brief recession in the early twenties led to a further decrease in demand. During the mid-to-late twenties, however, the demand began to increase and production peaked in 1936. The downside, however, was that the over-exploitation and poor conservation measures of the period led to a crash in the fisheries during the late 1940s and '50s.

The war effort further drew young men away from the territory, many of whom never returned. The 1920 census shows an Alaska-wide population decrease of 14% from 1910. The decline was even greater in Prince William Sound. Between 1910 and 1920 Cordova's population fell 17% ; Katalla's fell 55% and Valdez' 42%. Because of these trends, the Sound failed to enjoy the general economic boom of the roaring twenties. However, one small sector of the economy did prosper-the fur industry. Blue fox furs from the Sound's fox farms were the popular rage during the twenties.

Prince William Sound residents seem not to have suffered from the depression of the thirties as acutely as the rest of the nation- mainly because the gold mining industry recovered from the wartime closures, and the Kennecott mines and the Copper River and Northwestern Railroad continued to operate. Also, like farmers who suffered less during the depression because of a ready supply of food, the Sound's residents took advantage of the area's rich subsistence resources.

The Sound was not untouched by the pervasive unionism resulting from the depression and increased mechanization. On at least two occasions, dock strikes in Seattle disrupted the flow of goods from the lower 48. The Sound's fishermen organized to obtain better prices from the canneries. And there were cannery worker strikes for better wages and working conditions.

During reconstruction under President Roosevelt the Sound's communities benefited from federal government public work projects. Politically, Alaska and Prince William Sound continued to suffer the same treatment from Washington D.C. and the powerful outside monopolies. Both continued to oppose home rule. In short, Alaska was treated more like a colony to be exploited than a legitimate territory of the United States. Alaska provided a convenient source of cheap natural resources and a ready market for manufactured goods.

Local Alaskan fishermen continued to issue warnings that the Alaska Packers were overexploiting the territory's salmon resources with their fish traps, but their warnings fell on deaf ears. Although Alaska had been given "a toy legislature to play with," (as one issue of the Alaska Packers' official organ The Pacific Fisherman mockingly put it), the territory had no vote nor political power at the federal level. In fact, its efforts to gain some input concerning the management of its resources was countered at every turn by the powerful Alaska Syndicate and the San Francisco and Seattle based Alaska Packers, and The Cannery Association. Because Alaskan representatives, including the federally appointed governor himself, often served the monopolies' interests, the concerns of Alaskans were rarely given a fair representation at congressional hearings in distant Washington D.C. When they were, the powers in Washington usually gave greater credence to Syndicate and cannery lobbyists who as businessmen clearly understood the interests of the territory better than the people living there. "Home rule" championed by Alaska's representatives was anathema to the Packers and Syndicate who feared higher taxes, license fees, increased regulation and local control over their monopolistic practices.

The 1920 Jones Act, sponsored by Washington's Senator Wesley Jones, was a perfect example of the domination of Alaska by outside economic interests. The 1920 act stipulated that commerce between American ports must use American built ships. An exception was granted in trading with Canada. However, Alaska and Hawaii were excluded from this exception. The clear intent of the exclusion was to prevent Canadian competition for the Alaska and Hawaii steamship trade. The bill effectively eliminated the two Canadian lines serving Alaska, leaving Alaskans at the mercy of the two American lines. The Canadian owned Midas Mine across from Valdez at the head of Solomon Gulch was a victim of this legislation.

At times, the government pretended to listen to local complaints concerning the monopolies. In November of 1916, Cordova merchants complained that the Syndicate railroad and Alaska Steamship Company's tariffs were excessive. They pointed out that they were paying tariffs 3 to 5 times those charged by railroads outside. The Interstate Commerce Committee held hearings in Cordova but the proceedings came to naught.

The completion of the government railway from Seward to Fairbanks in 1923 diminished the significance of Valdez and the Richardson Highway as a supply route to the interior. The Alaska Railroad, however, operating under difficult and expensive Alaskan conditions proved to be a heavy financial burden on the federal government so that toward the end of this period trucking over the improved Richardson Highway became competitive.