Alaska Commerce Offers Important Business to New Railway
i
The proposed construction of a
railway outlet from the Peace River
district to the Pacific const at Stew
art ts a matter of decided interest
to the people of Alaska; for the
reason that such a railway, with its
transcontinental connections, would
become an highly Important factor in
the economic affairs of the Alaska
teritory.
Alaska is suffering largely at pres
ent from what may he very properly
termed strangulated circulation. The
great northern territory has but ot'e
outlet, over the sea, and is depend
ent entirely upon steamship trans
portation Ironi Seattle for the main
tenance of its commerce with the
outside world.
To negotiate the long distance be
tween Seattle and the most southerly
point in Alaska requires three days of
time and a "dead haul” of some 700
miles. This dead haul involves not
only a considerable loss of time in
the delivery of commodities but, as
transportation rates are considerably
higher than elsewhere on the Pacific
Coast, also imposes upon the people
of Alaska an excessive burden of cost
lor supplies that is a hardship to the
individual as well as a strong deter
rent to indu-try and development. It
is a most common occurence for
shippers to find that the freight on
commodities exceeds the initial cost
many times over.
As a result . of these conditions
Alaskan’s g narally would welcome
any change in transportation which
would result in quicker deliveries
and lower costs.
Willi the foregoing facts in mind
let us now examine the situation
that would he created in the event
that the Peace River to Stewart
rail route reaches consummation.
Should a transc mt inental railroad
lie imili to the water front at Stew
art, B. an extension of a few
hundred feet would put the railhead
across the international bound
ary line at Hyder. the oniy place n
Alaska that can be reached by :
transcontinental railroad line except
at a cost far out of proportion to tlie
financial return that could be ex
pocted from the Alaska trade to:
many years Ij come.
Hyder Is the most southerly towi
and port In Alaska and Is 7S0 uau:
leal miles from Seattle. From this
It may readily be seen that a trans
continental raihvayf with its term
inus at Hyder would eliminate tin
present costly 700 miles of dead
haul from Seattle over the watei
route.
Examination of the sources and
destinations of Alaska commerce re
veals that considerably more than
half the tonnage shipped to and from
Alaska originates in or is destined
to middle western and eastern points
In view of this fact, may it not In
considered eminently reasonable t<
suggest that if Hyder were connect
ed by rail with some mid-western
distributing point. St. Paul for in
stance, a very large percentage o.
the enire Alaskan commerce, would
he diverted to a route which would
eliminate the delays and heavj
charges incident to that 7S0 mile
dead haul between Seattle and ttu
southern Alaska border by the wate.
route? The distance between St. Pan
and Seattle is approximately 150
airline miles. From St. Paul to Hy
der the airline distance is about
1S50 miles. Hyder then is only abou
350 miles farther west than Seuttl
and commerce for Alaska from tin
east if routed hy way of Hyder would
would not be in transit much longe
than would be required to reach
Seattle.
Still another incentive for Alaska
shippers to use the Peace River line
instead of shipping via Seattle is t<
be found in the tariffs. The base
tonnage rate front Seattle to Hyder
end Ketchikan, the most southerly
ports of Alaska, is $9 per ton, mea
sured on the basis of 40 cubic feet
per ton. Contrast this with the Can
adian National Railway freight rate
from eastern points to Prince Rupert
120 miles south of Hyder. This we
find to be virtually the same rate
as is charged hy the American lines
to Seattle. Therefore it is not un
reasonable to expect that railroad
tates from eastern points to Hyder
would not greatly exceed the rates
to Prince Rupert. Should this prove
to he to.- case, jxiasaa stoppers woult;
save between 36 and S9" per ton
measurement, or approximately tit
lreight charge from southern Alask.
ports.
That Alaskans fully appreciate the
benefits that would accrue to tin
Territory through the construction o:
, a Peace River outlet to Stewart it
fully examplified by the following
resolution passed by the Alaska Leg
islature in 1927:
In the House By Mr. Paul
HOUSE CONCURRENT RES
OLUTION NO. 5
IN THE LEGISLATURE OF THE
TERRITORY OF ALASKA
Eighth Session
WHEREAS, the Great Peace Rive)
District, being the Northern part o
the Province of Alberta and tin
North Eastern part of the Province
of British Columbia. Dominion of Can
ada, contains in excess of eight mil
lion acres of agricultural land. an.
WHEREAS, the inhabitants of the
vast domain have joined with ths
citizens of Northern British Columbit
in an endeavor to bring about tlu
construction of a railroad from tin
end of the main line of the Edition
ton Dunvegan and British Columbit
Railroad at Spirit River. Alberta, U
the Pacific Coast, and
WHEREAS, the town of Stewart
British Columbia. Canada, is situatef
at the head of Portland Canal am
on the Boundary Line between Alas
ka and British Columbia, and is con
nected to the Peace River District bj
easy passes through a semi-mountain- j
! ous country which presents no dif- j
| ficult engineering problems, (the en- j
[ ginoer's estimates on completing amt '
j equiping the road being $31,000,000.
! 00), and
WHEREAS, it is accepted by the j
Government of the Dominion of Can- j
! ada tliat the economic and industrial
I conditions of the Peace River Coun
try make it imperative that such def
inite action be taken in the immedi
ate future as will provide transport
ation for the products of the district
to the Pacific Coast and the markets
of tlie world, and
WHEREAS, the Premier of Canada
lias heretofore stated that a railway
outlet for Hie Peace River District
to the Pacific Coast will be con
structed as soon as humanly pos
sible, and
WHEREAS, the matter is now be
ing discussed in the Dominion Par
liament at Ottawa, and
WHEREAS the Honorable Charles
Stewart, Minister of the Interior,
Dominion of Canada, in a speech oil
the floor of the House, of Commons,
in Ottawa on February 14th, 1!)27,
gave his unqualified indorsement to
the construction of the Railroad over
the Stewart Itritish Columbia Route,
and,
WHEREAS in the event tlie road
is built over the Stewart Route an l
Hie rail head will be at the Stewart
waterfront, which is separated from
he waterfront of Hyder, Alaska, by
Hie International Boundary Line, a
j strip 120 feet wide, and
WHEREAS the town of Hyder,
Alaska, lias an available, accessible
waterfront one and one-half miles in
extent, and
“A very large part of the frelghl
originating near the Great Lakes 01
east thereof and destined for tin
west is shipped over the Great Lake.'
by Canadian vessels to Port Arthui
or Port Williams, thence west ovei
the Canadian Pacific Railroad to Van
couver, thence by Canadian vessel;
south to Seattle or other ports. Bu
such freight destined for Alaska can
not he shipped by Canadian bottom;
either over the Great Lakes or fron
Prince Rupert or from Prince Rupee
or any otiier Canadian port to Alas
ka direct. It must first be consignet
to some firm in Seattle and thenc;
rebilled and reshipped to Alaska, be
cause no American vessels are op
erating as common carriers betwee.
Alaska and Canadian ports, (excep
recently, a small vessel bet wee;
Prince Rupert and Ketchikan, whici
operates at a loss).
“When we remember that the nal
ionail railroads of Canada are will
ing and ready to ship freight frou
the Great Lakes to Alaska ove
Prince Rupert for axactly what i
now charges for shipping over th
Canadian routes to Seattle, provide
a Canadian vessel could be used, i
will be seen that on this class o
freight (freight originating near o
east of the Great Lakes) the trail
portation charges from Seattle l
Alaska become extra and unneces
sary expense. They constitute a grai
uity which the American governmeu
lorces the people of Alaska to pa
to the Seattle steamship lines. Thi
rate on freight from Seattle to Ji
neau is Si).55 per ton by measuremon
including wharfage and handlin
charges in Seattle. On a Chevrole
automobile this amounts to abou
ot this territory ought to be patri
Itic enough to send their freight over
an unnecessary and circuitous route
and at unnecessary expense in order
to aid the American merchant mar
ine. It would be as reasonable to
ask that the people of Seattle for the
same patriotic reason send their
freight to Alaska before it is deliver
ed to them at Seattle as it is to ask
that the people of Alaska first send
their freight to Seattle before it is
delivered in Alaska.
“Possibly the greatest injury done
to us by the discrimination complain
ed of is by compelling Alaska fish
erman to take their catches directly
to Prince Rupert instead of landing
1 them at some Alaska port. I treated
this feature at some length in my
1 report of 1925 on the subject of Water
1 Trasportation, but for the continuity
and completion of this presentation
- 1 beg to here recapitulate what 1 in
- that report sought to make clear:
i “Fresh fish from Alaska cannot
' reach the markets east of the Mis
t sissippi River except over Prince
“ Rupert, and the Atlantic Coast reg
I ions are our best and safest market
l for this product. There are no Arner
f lean ships plying as common carriers
r between Prince Rupert and Alaska,
- save as above stated, but Canadian
) ships call at our ports every week.
and sometimes several times a week.
- bound to and from Prince Rupert
L By discrimination inserted in Section
.• 27 of the present Merchant Marine
■) Act these ships are prohibited from
- carrying American fish to a Canadian
t port. The result is that if fishermen
i want to take advantage of the east
t ern market they have to carry their
t i catches direct to Prince Rupert. This
to which we are obviously entitled.
Under the circumstances I would
I suggest that the proper authorizat
ion and appropriation be granted to
permit an American steamship line to
be subsidized to operate between
Prince Rupert and Southeastern Alas
ka ports. Such line should be re
quired to make two sailings each
week during the months of the hal
ibut season and to make the run in
not more than 36 hours from the
northern terminus to Prince Rupert,
including stops at, say, Petersburg,
Wrangell and Ketchikan, it should
also be required to have cold storage
space for not less than 5(>0 tons ol
freight, besides additional cargo and
passenger space. Inasmuch as there
is now no American vessel equipped
for such trade and it may be neces
sary to build one for the purpose, it
seems essential that the subsidy be
given for three seasons, be of not
less than $65,000.00 per annum, and
that it begin in the spring of 1928
It is not improbable that at the end
of this term here proposed the tral'
tie will Justify the operation of tilt
necessary vessels on this route with
out subsidy, it is also possible tliai
if this course be pursued, those win
are responsible for the commercia
discrimination complained of, maj
lift the embargo against us whei
they discover they gain nothing b]
it, but are forced to contribute t<
the expense of overcoming it.”
Regarding the probable benefit:
that would accrue to the railroa<
through* the flow of Alaska com
therce, it may be said that betweei
the year 1867 and December 1, 1921
Alaska exported commodities valuet
at $1,451,345,487. During the same per
MAP SHOWING PROPOSED RAIL ROUTE FROM PEACE RIVER TO
HEAD OF PORTLAND CANAL
WHEREAS we believe that a trails
continental railroad with its eastern
terminus in Minneapolis and St. Paul,
or Duluth, and its western tertninu
in Alaska will bring about a new era
in the development of this great em
pire, by providing another solution
of the transportation problem, and
greatly assisting the upbuilding and
prosperity of the Portland Canal Min
ing District and Alaska as a whole:
THEREFORE, be it resolved by
ihe Legislature of the Territory of
Alaska, in Eighth Regular Session
assembled. That we give our un
qualified indorsement to the con
struction of a transcontinental rail
road with its western terminus in
Hyder, Alaska, and pledge our moral
support to all those who are en
deavoring to bring about the real
ization of such project, and.
BE IT FURTHER RESOLVED,
that a copy of this Resolution I).
sent to the town council of Hyder.
Alaska.
I Passed the House May 3. 1927.
Sumner S. Smith
Speaker of the House
ATTEST:
i Cash Cole
! Clerk of the House.
Passed the Senate May 4. 1927.
Bartley Howard
President of the Senate
!ATTEST:
Ruth Reat. Secretary of the Senate.
To this convincing expression ot
the attitude of the people of Alaska
toward a Peace River rail outlet via
l Stewart, is appended the following ex
cerpt from the report of the Attorney
General of Alaska to the Legislat
tire ot 1927 on the subject of Alas
ka transportation.
“In the report upon the subject
of water transportation, submitted to
the Legislature of 1925 by this ot
! lice, 1 called special attention to the
I tact that fresh fish from Alaska could
1 reach the eastern markets only over
Prince Rupert and via the Grand
Trunk and Pacific Railroad; that
fresh fish shipped over Seattle could
reach only the Pacific Coast and
I Mountain States, and that at the
] present time, on account of the dis
| crimination against Alaska by Sec
! tion 27 of the Merchant Marine Act
' ot 19211. our fisherman have had to
take their own catches to Prince
Rupert in their own fish boats in or
der to take advantage of tlie eastern
1 markets. It was also pointed out how
{ the people of Alaska were deprived
of the advantages of lower freight
i rates between Alaska and the At
lantic Coast by reason ot the fact
that we were denied the same priv
ilege of using the Canadian vessels
which are accorded in other sections
of the United States.
Without descending into details I
wish to emphasize some observations
1 have made on this subject In my
last report.
$55.00 and on a FSuk'k about $86.00.
All Ibis could be saved were Alaska
afforded the same right as the States
to use foreign vessels, fur 1 under
etand that most of the automobile,
conte west by the Canadian lines.
"To the argument often heard ad
vanced that to permit the people of
Alaska the same use of Canadian
lines as is accorded Seattle would
deprive American railroads of much
freight, it may be answered that at
present the freight here involved
comes by Canadian railroads and
Canadian vessels but comes to Seattl
instead of to Alaska. All we ask I
that the same transportaion cornpan
ies which are now handling this
freight be permitted to take it direct
to Alaska instead of first to Seattle.
‘"The retention of this commercial
discrimination against Alaska is sup
ported on the theory that the people
| represents a loss to them of seven
'days on each trip (besides the ex
| pense in operation of the boat) be
I yond the time consumed in reaching
| Juneau from the fishing banks. To
i he sure, the American boat recently I
i put on the route between Ketchikan !
j and Prince Rupert has relieved the
j situation somewhat, but most fisher
'men after they have been compelled
to go as far as the southermost port ;
; of Alaska prefer to continue the voy- j
age till tliey reach theCanadian port. |
“When we take into consideration !
that at tlie present time about 25,- ‘
000.000 pounds of Alaska halibut, :
valued at about $3,000,000. is taken i
to Prince Rupert by our fisheman j
each year it will be seen that this ,
1 traffic is of great importance to the i
| Territory.
“It seems settled that Congress j
1 does not intend to grant the relief
A TRIP UP THE INSIDE PASSAGE
Special Article Contributed By
Canadian National Railways
It has been said by thousands of
tourists—and quite truly—that the
beauties and picturesqueness of the
Inside Passage up tlie Coast of Brit
ish Columbia are not equalled any
where in the world. Many have com
pared this magnificent trip with the
the cruise through the Fjords of
Norway and so attractive has the In
side Passage trip become that now
thousands of tourists visit the Pa
! cific Coast each year. This has meant
a tremendous development in the
“Tourist Industry” and the result has
been that each port of call made by
the passenger steamships plying this
route, has benefited to a great ex
tent.
It is the now famous Inside Pas
sage route that is followed by the
Canadian National Steamships liners
j which carry on regular sailings
throughout the year as far south
as Seattle to as far north as Skag
way, Alaska. The Alaskan service is
operated only during the summer
mouths, while the service as far
north as Stewart and Anyox is oper
ated twelve months a year.
The beauties of a trip up the In
side Passage cannot be denied. From
the start to finish it is simply
“chock full” of scenic splendour. So
interesting is the visit that passen
gers grudge their sleeping and meal
hours for fear they will miss some
of the interesting part of what should
be classed among the “Seven Won
ders of the World."
One of the most interesting features
of the trip up the Inside Passage
is to visit the magnificant Portland
Canal area, at the head of which are
situated the towns of Stewart, Brit
ish Columbia, and Hyder, Alaska.
Stewart by the way is the most north
erly port of call the steamships ptake
in British Columbia. So entrancing j
\ and beautiful i3 the scenery up the i
Portland Canal that it is well worth i
the time of every tourist to take it. j
After leaving Vancouver the steam-1
ship makes a midnight call at Powell |
River and early the next morning .
j negotiates the Seymour Narrows, j
j which is a decided tribute to the arc |
I of navigation. Later in the afternoon
I a call is made at Ocean Falls, nest
I litlg among the rugged hills at the
j head of Fisher Channel. At both
j Powell River and Ocean Falls are lo
I cated two of the largest paper mak
ing plants in the world.
Then comes Prince Rupert, the |
northwestern terminus of the Can-;
adian National Railways and the
center of the halibut fishing industry
on the Pacific Coast. This city is
a very important sea port and is
closer in point of mileage to the
Orient than is the port of Vancouver.
A large dry-dock is located here as
well as a large cold storage plant
which handles the bulk of the fish- j
erman’s catch for shipment by rail
East.
From Prince Rupert the steamship
makes a trip up Observatory Inlet to
the town of Anyox where is located
the famous Grandby Mines. This
company has the largest copper mine
and smelter in the British Empire.
Then back south and around Ramsden
Point and northward- again to Stew
art. Just before docking at Stewart
the city of Hyder, Alaska, is seen
and plenty of time Is made available
for tourists to visit both places.
From start to finish the trip up the
Inside Passage on the Canadian Na
tional Steamers is one of delight and
pleasure and takes a permanent place
in the memory of a most restful and
perfect holiday.
iod it imported commodities valuet
at S740„540.000, making a total com
merce for the period of 32.191.6S5,
493 or an average annual commerci
amounting to $37,147,211,701.
During the year 1930—a subnorma
year—the total commerce of Alaski
amounted to $90,232,413, according ti
U. S. Customs reports. Of this tota
amount of trade, $57,187,146 reprt
sented merchandise, gold and silve
shipped from Alaska, while $33,055
267 represents the value of commodit
ies shipped to Alaska during the sam;
period. Ninety per cent of this tradi
pessed through the port of Seattle.
During 1926, the last normal yea
for which figures are obtainable, Alas
ka shipped the following products t
points east of the Rocky Mountain?
according to figures compiled fron
U. S. Department of Commerce re
ports:
Twenty five million pounds of Alas
ka halibut were shipped via Princ
Rupert. B. C. Rate $1.88. Freight Ret
enue derived $470,000.
Canned salmon totaling 6,633,27;
cases, at 80 cents per hundred pound
or 40 cents per case. Revenue derivei
$2,663,311.
Other fish and fish products, a!
lowing the same rate as halibut. Rev
enue derived $1,311,757.
Furs valued at $657.S00, about on;
half of which were erportei
irom Southeastern Alaska. Estimate;
freight revenues on one-half, $ll)
000.
The freight revenues representei
in the tabulation total 84.445.06S.
Combined with this great trans
portation revenue on exports,must bi
included transportation charges ot
imports of Eastern products estiniat
ed at 157,936,000 pounds shipped ti
Southeastern Alaska, the freight rev
enue on which approximated $4,738,
000, making a grand total revenue fo
transportation amounting to mor.
than nine million dollars.
While it is hardly to be expectet
that the Peace River line would re
ceive all the freight from that par
of Alaska accessible from and ad
jacent to Hyder, it is believed tha
lower rates and quicker service a:
compared to the water route woulc
result in the diversion of at leas
fifty per cent of the annual commerci
of the indicated area.
There is also to be considered tin
tourist and regular passenger traffii
lrom eastern points to Alaska. During
1930, over 30,000 persons arrived it
Alaska from United States and Brit
ish Columbia ports and this miinbei
has been maintained or exceeded an
nually since 1925.
It is impossible to estimate hov
much of this great volume of an
nual passenger traffic would flov
over the Peace River line, but it ii
safe to assume that a very large per
centage from eastern points wouh
welcome an opportunity to trave
through Canada enroute to Alaska.
STEWART - IT’S PRESENT
AND FUTURE
By H. W. M. ROLSTON
Editor Stewart News
Stewart, an important gateway to
one of the large mineral belts of
the Continent, has not been left un
touched by the present world wide
depression, but the retardation, if it
is such, has been more imaginary
than real.
Unquestionably the difficulty in se
curing development capital for new
er properties has reduced activity
and postponed for the time being
the development of a number of prom
ising prospects. However, depressions
such as the world is now experiencing
bring in their wake readjustments es
sential to greater progress. Realign
ments, consolidations and savings that
makes for greater economic strength
and stability are affected, and human
society benefits accordingly. So it is
with Stewart .
While it may be said that mining
development in the Stewart district
has been retarded, there is room to
doubt if this is the case. Rather it
can he asserted that the district lias
! just paused to catch its breath as a
preliminary to still greater things, for
which the foundations are being well
and solidly laid.
in the first piace the Premier Gold
Mining Co. is continuing to operate,
paying a high rate of dividend, with
; out any cut in wages.
The Consolidated Mining and Smelt
ing Co. has a situation on Big Mis
souri of sufficient interest to war
rant the installation last year of a
100-ton pilot concentrating plant and
if, as can be anticipated, future de
velopment proves that this mill was
justified, the district will have an
other large producer.
Prospecting has continued in spite
of the depression, and new discover
ies have been made, thus adding to
the possibility of more mines when
metal prices and financial conditions
improve. From the standpoint of min
ing development, Stewart has no
cause for pessimism.
A few years ago the strongest
hydro power group in Canada, the
Power Corporation of Canada, enter
ed the district and in spite of the
slump, has not curtailed in any way
its persistant policy of extension, ex
pansion, examination and surveys of
the Canadian area. As a mark of still
greater confidence in the future of the
district, an American power group
has acquired very valuable water
waters on the Davis River, a stream
emptying into the Portland Canal
from the west some 12 miles south
of Hyder, and have since made ex
tensive surveys which have demon
strated the possibility of developing
a large power project.
Some three years ago the C. P. R.,
through its subsidary, the Consolidat
. ed Mining and Smelting Co., secured
. a charter for a line of railway from
. Stewart to Fort Graham on the Fin
lay River, a tributary of the Peace
I River. In addition to this the same
! company secured very valuable water
, frontage at Stewart. Since that time
I the company has made extensive
. reconnaisance surveys between Stew
■ art and the Peace River which have
. disclosed the fact that no engineer
. ing difficulties exist for the building
, of a line of railway from tidewater
, to the famed Peace River agricultural
areas. The Bear River Pass through
. the Coast Range of mountains has
. an elevation of between 1800 and
, 1000 feet and, once through it, any
one of several routes across B. C. to
i the Peace River are available. Sev
. eral of these would pass through
the only anthracite coal fields in
. Canada,known as the Groundhog Coal
, area, covering something over 2000
. square miles of territory, situated by
air line 90 miles behind Stewart,
j Stewart is the most northerly port
s in Canada, that is free of ice the
I year round and is destined to play
an important part in the development
of northwestern Canada. This is easily
verified by a glance at a map. Situat
ed just south of the 56th parallet.
, Stewart is no farther north than many
I great cities such as Edinburgh, Copen
I hagen and Moscow. Many great and
' prosperous cities in Europe are sit
uated stiil farther north.
I At the moment we have lying east
and north of Stewart a vast expanse
of undeveloped country, rich in nat
ural resources awaiting only labor,
i capital and ingeuuity to convert to
human use. This area comprises a
i total area of 875.137 square miles
and embraces as great a variety of
• natural resources possibly as any
■ other known similar area of the
■ world's surface; including millions of
acres of rich agricultural lands, water
powers, oil, natural gas, salt, asphalt
beds, gypsum, every variety of coal
front lignite to anthracite, timber,
fish, radium, platinum, gold, silver,
lead, zinc, copper, and a wide variety
of other minerals. This schedule of
natural resources is hard to equal.
Stewart is so situated geograph
ically as to be the natural seaport
tor all this great Country.
With the development of this hint
erland Stewart will grow from a vil
lage to a great and thriving port.
The foregoing may seem to some
like a fantastic dream; but is it?
Let us take a look at Europe. Swed
en, Norway and Finland, comprising
H7.710 square miles, with many cities,
towns and industries but without the
same variety of resources, sustain a
population of some 12.500,000. Put 12,
1 1 000,000 people into the hinterland of
Stewart, and some conception is
' t gained, of what sort of a town Stew
art would be. „ _ .