INCREASE IN TERRITORY’S OUTPUT,
WHICH IS OFFICIALLY FIGURED AT
MORE THAN 54 PER CENT, IS
DUE TO COPPER.
OFFICIAL REPORT OF GOVERNOR
Executive Reviews Yield of Every District in
Northland, Recounts in Detail Nature of De
velopment, Conditions Affecting Mining In
dustry, and Sets Forth Specifically Various
Kinds of Metals That Are Found.
Alaska’s mineral production for the calendar year 1916
was the greatest in its history, amounting to $50,900,000,
as compared with $32,850,000 in 1915, according to the
annual report of Governor J. F. A. Strong. The increase in
t
i
i
1
1916 was, therefore, over 54 per cent, this being due to
the greatly increased copper production, which amounted
to 120,850,000 pounds, valued at $32,400,000. There was
also a small increase in the gold output, which in 1916
was $17,050,000. and in 1915 was $16,700,000. In 1916 of
the gold produced $10,600,000 was from placer mines.
Alaska also produced in 1916 silver, lead, tin, antimony,
tungsten, marble, gypsum, and coal to the value of $13,
000,000. During 32 years of mining, Alaska has produced
$351,000,000 of gold, silver, copper, and other minerals,
or nearly fifty times the price paid Russia for the Terri
tory. Of this amount $278,000,000 represents the value
of the gold and $68,000,000 that of the copper.
For the calendar year 1917 the total mineral production
is not likely to be as great as that of 1916. The gold out
put will probably show a decrease, due to the exhaustion
oifthe richer placer areas in interior Alaska, the high price
of 7’uel necessary in mine operation in the same region, and
a llibor shortage affecting nearly the entire Territory. A
labor strike in the Kennecott mines of the Kennecott Cop
per Corporation at Kennecott, which, however, was not of
long duration, may curtail the output of copper to a lim
ited extent, although this condition may be offset by the
increased production of a number of smaller mines in
different parts of the Territory. Much of the placer ground
of the Tanana Valley region can not be worked at a profit
tn the operators under the present conditions. Fuel is
yearly becoming more costly, and until cheaper fuel and
power can be obtained the placer mining industry of that
section must languish. This also applies to gold lode min
ing of the interior. When the Government railroad shall
have reached Xenana coal fields and coal mines are open
ed commercially this condition will be obviated, but not
before.
The output from gold lode mines of the present
calendar year will inevitably show a decrease from that of
the preceding year, due to the labor shortage and the con
sequent lessening of the mining operations and the greatly
increased cost of supplies of all kinds necessary in the
mining industry. Added to this was the loss of three mines
of the Alaska Treadwell Gold Mining Co. in southeastern
Alaska in April last, by flooding. Mining operations in
these mines had extended under the waters of Gastineau
Channel, which broke through the roof, completely flood
ing the mines and entailing a heavy financial loss. It is
stated that no attempt will be made to rehabilitate the
property. An adjoining mine, the Ready Bullion, was not
flooded and is still being worked.
The Alaska-Juneau Gold Mining Co. in May of this
ver A-completed a new mill, one of the finest in the world,
"i** i capacity of 8,000 tons of ore daily. The operations
s company, however, are curtailed by reason of the
•tage of labor.
X'.'• following statement is abstracted from the annual
report on mineral resources and production in Alaska in
1916 by Alfred H. Brooks, of the United States Geological
Survey, Department of the Interior:
The value of Alaska’s lesser mineral products in 1916
was: Silver, 950,000; tin, $120,000; lead, $110,000; anti
mony, $60,000; tungsten, $50,000; coal, $30,000; petroleum,
marble, gypsum, etc., $130,000.
Gold Placer Mining.
The value of the placer gold output in 1916 was $10,
640,000; in 1915 it was $10,480,000. About 640 mines were
operated in 1916, employing some 4,600 men. All the
other districts it appears held up or increased their output,
compared with the previous year, except Fairbanks. The
increased output is, however, to be credited chiefly to the
new camps of Marshall and Tolovana. Thirty-six gold
dredges were operated in Alaska in 1916, one more than in
1M5—29 in the Seward Peninsula, 3 in Iditarod, and 1
each in Ruby, Fairbanks, Circle, and Yentna districts. Of
these 36 dredges 4 were installed in 1916. It is estimated
that Ae dredges produced between $2„000,000 and $2,
20f),000 worth of gold. In 1915 the 35 dredges mined $2,
30T000 worth of gold.
Gold Lode Mining.
About 25 gold lode mines were operated in 1916, com
pared with 28 in 1915. The value of this gold output in
creased from $6,069,000 in 1915 to $6,200,000 in 1916.
Southeastern Alaska, especially the Juneau district, is still
the only center of large quartz development in the Ter
ritory. Next in importance is the Willow Creek lode dis
trict. Tliere was also considerable gold lode mining on
Prince rv^lliam Sound, but a very decided falling off in
/this induut^y( in the Fairbanks district. Lode mine owners
of Fairbanks are awaiting the cheapening of operating
cost, especially of fuel, which will be brought about by the
Government railroad.
Copper Mining.
This enormous copper production from Alaska mines
in 1916 has already been referred to. During the year 18
copper mines were operated, compared with 13 in 1915_
7 in the Ketchikan district, 8 in the Prince William Sound
district, and 3 in the Chitina district. The enormous out
ut from the Kennecott mine in the Chitina district over
adow€K all other operations. Had transportation com
panies and smelters been able to handle ores, many of the
small copper mines would have made a much greater out
put. It was estimated that about 550,000 tons of copper
ore was hoisted in 1916.
Tin Mining.
About 232 tons of stream tin was produced in Alaska
* ■in 1916. this amount 162 tons came from the York
Mt district, vrtyeve t1
_ , N two tin dredges were operated, and the
/ S tfc»rd 'v^s xyorking on placer ground carrying both tin and
JSF 1
?
i
gold. Developments were also continued on the Lost River
lode tin mine. The rest of the concentrates were recovered
incidentally to placer gold mining in the Hot Springs dis
trict in the lower Tanana Basin.
Antimony Mining.
The mining of antimony ore (stibnite) began in Alaska
in 1915 and continued in a small way through the first half
of 1916. The fall in the price of antimony during the mid
summer put an end to most of these operations. About
1,460 tons of crude ore was mined and shipped during
1916. The larger part of this came from the Fairbanks
district.
Tungsten Mining.
Though sheelite has long been known to occur in some
Alaska placers, up to the last two years the demand for
it had not been sufficient to encourage its recovery. The
recent high price of tungsten has induced Alaska miners
to turn their attention to scheelite deposits. In the fall of
1915 a scheelite -bearing vein was discovered in the Fair
banks district and its development began. Later two other
scheelite-bearing veins were found in the same district.
During the winter some of these scheelite ores were treat
ed in a local mill and the concentrates were shipped out by
parcel post. Scheelite mining was continued during the
summer and the crude ore was shipped out by steamer.
Considerable scheelite was also discovered from some gold
placers of Nome and a little was produced in other dis
tricts. About 50 tons of scheelite concentrates, valued at
over $50,000, were produced in Alaska during 1916.
Mineral Fuels.
The production of petroleum from the only oil claim
patented in Alaska in the Katalla district continued in
1916. The operating company was reoi’ganized and more
! extensive exploitation undertaken. About 8,000 tons of
coal was mined in Alaska during 1916 from half a dozen
| small mines. The largest producer was the Bluff Point
I mine, on Cook Inlet, where a lignite bed was exploited
for the local market. The mining of coal in the lower end
! of the Matanuska field for the use of the Alaskan En
gineering Commission was also a significant event. This
! part of the field is already made accessible by the Gov
; eminent railroad now under construction. The construc
[ tion of a private railroad from the Bering River into the
Bering River coal field was also begun and a little coal
was mined at the southwest end of the Bering River field.
Tenders for lease of coal lands in both the Bering River
and Matanuska coal fields, under the new law, have been
received by the Interior Department. Another important
event was the completion, by the Geological Survey, of a
detailed examination of the most accessible part of the
Nenana coal field, lying about 60 miles south of Fairbanks.
All these facts indicate that systematic exploitation of the
Alaska coal fields will soon be undertaken.
REVIEW BY DISTRICTS.
Twelve gold lode mines, 7 copper mines, and 2 placer
! mines were operated in southeastern Alaska during 1916,
; the value of the gold product being $5,960,000. Copper
mining was confined to the Ketchikan district, where over
3,800,000 pounds, valued at $1,000,000 was produced. The
principal copper producers were the Rush & Brown,
Jumbo, It, Mamie, and Mount Andrew. The only other
productive mining in the Ketchikan district was the op
eration of two small lode gold mines and the continuation
i of marble quarrying on about the same scale as in previous
i years. All the four mines of the Treadwell group, in the
Juneau district, were operated on a normal basis until
August 1, 1916. At that time the 200-stamp mill and half
of the stamps of the 300-stamp mill were shut down to
avoid further drawing of ore from beneath settling
ground in the Treadwell, Mexican, and “700” mines. As
noted elsewhere, these three mines were flooded in April,
1917. The other Treadwell mine was operated as in the
past. The Alaska-Gastineau mine was operated on a 6,000
ton daily capacity. Owing to the additional waste from
hanging walls of stopes on the higher levels, the average
tenor of the gold milled fell below the average estimate.
This caused misgivings on the part of some as to the ul
timate success of the outcome. However, the difficulties
in selective stoping are being gradually overcome and the
tenor of the ore milled showed a gradual improvement dur
ing the summer. Moreover, economies were effected so
that the operating costs were reduced.
Mine development continued on the Alaska-Juneau in
a large way and much progress was made in the construc
j tion of the mill, with a daily capacity of 8,000 tons. This
mill began operations in May, 1917. On the Alaska-Ebner
properties developments were continued. The chief activi
I ties north of Juneau were the Eagle River, Jualin and
| Kensington mines. Some ore was milled at Jualin, but the
j other mines were not productive in 1916, nor are they in
J 1917. A little beach mining was done on Lituya Bay and
! some investigations were made as to the feasibility of in
| stalling machinery. In the Y'akataga district placer min
I ing continued on about the same scale as in the past.
Copper River Basin.
As in 1915, the principal copper mines of the Copper
River Basin are the Jumbo and Kennecott Bonanza, which
made enormous shipments throughout the year. Produc
tive mining was also continued at the adjacent Mother
Lode mine. Much development work was done on other
copper properties in the Kotsina-Chitina copper belt, but
| there were no other producing mines. Hydraulic placer
mining continued on a large scale in the Nizina placer
district. The placer gold output of the Chistochina dis
trict, also in the Copper River Basin, was larger than that
of the previous year.
Prince William Sound.
The value of the total mineral production of Prince
William Sound was about $3,000,000 in 1916, compared
with $1,340,000 in 1915. This represents the value of the
production of eight copper mines and eight small gold
mines. The Beatson, Bonanza, Ellamar, and Midas mines
j were the largest copper producers, and the Granite and
| the Ramsay-Rutherford the largest gold producers.
Kenai Peninsula and Susitna Regions.
The rebuilding of the old Alaska Northern Railroad,
now in Government ownership, leading inland from Sew
ard, stimulated mining development in the Kenai Penin
sula. The production from placer mining did not in
crease, however, and there were no lode mining operations
except some small development work. On the other hand,
in the Susitna Basin, which is also served by the Gov
ernment railroad, there was much advance in mining.
About 60 miles of railroad were operated in 1916 from
the town of Anchorage. Its immediate tributary territory
includes the Matanuska coal field and the Willow Creek
lode district. In the Willow Creek district four lode mines
were operated in 1916, compared with three in 1915. A
dredge was installed in the Yentna district, and hydraulic
operations were continued in the Valdez Creek district.
The value of the total mineral output of the Susitna Basin
in 1916 was $400,000.
Southwestern Alaska.
Some developments were continued on copper deposits
<
of the Iliamna region, but as yet there are no producing
mines in this field. A small cyaniding plant was installec
and operated to handle the old tailings of the Apollo mine
on Unga Island. A large body of low-grade auriferous
quartz is said to have been found on the south end of
Unga Island, about three miles from the Apollo mine.
Some auriferous gravels were found in 1916 on the east
side of the Alaska Peninsula between Cold and Katmai
bays. It appears that the placers were found on only one
creek and the output was only a few hundi'ed dollars. The
discovery, as far as known, is of importance only in mark
ing a new locality where aurifei’ous mineralization has
taken place. Beach placer mining was continued on Kodiak
and Popof Islands.
Yukon Basin.
The Alaska camps of the Yukon Basin produced about
$7,100,000 worth of gold in 1916, about the same as in 1915.
An estimate of the output of the principal camps is as
follows: Iditarod, $2,000,000; Fairbanks, $1,800,000; Ruby,
$800,000; Hot Springs, $750,000; Tolovana, $500,000, Mar
shall, $400,000; Koyukuk, $300,000; Circle, $250,000. In
addition to placer gold the Fairbanks district produced
lode gold, antimony, and tungsten to the value of $100,000.
About 115 placer mines were operated in the Fairbanks
district during 1916 and several small auriferous lode
mines made some production. Antimony ore was mined
from three or four properties and scheelite from three.
The general attitude of the Fairbanks operators is to await
the completion of the Government railroad before under
taking any large developments.
Probably the most important feature of the year of
the Yukon Basin was the comparatively large gold output
of the Tolovana and Marshall districts. The Tolovana dis
trict is about 50 miles northeast of Fairbanks. It was dis
covered in 1914 and developed in a small way in 1915, but
made remarkable progress in 1916. The principal mining
is done on the deep channel of Livengood Creek, which
has been traced for about two miles. About 20 mines were
operated in the district during the summer of 1916. The
Marshall district is on the Yukon northward from its delta.
Gold was found in this district in 1913, but until 1916 the
production was very small. In 1916 some rich placers
were developed on Willow Creek, on which seven plants,
employing about 200 men, were operated. Some excite
ment was occasioned during the year by the discovery of
placer gold in the Tolstoi Creek Basin of the Innoko dis
trict. The latest reports indicate that the only workable
placers thus far found in this district are on Boob Creek
and that the production in 1916 amounted to only a few
thousand dollars.
The principal mining in the Iditarod district is that of
a few large operators. In 1916 only 15 plants were in
operation. A new dredge was installed on Black Creek,
making three dredges in the Iditarod district. The most
important event in the Ruby district was the installation
of a new dredge on Greenstone Creek. As in the past, most
of the gold from the Hot Springs district is taken from
a comparatively few rich placer mines. The same is true
of the mining operations in the Koyukuk district.
Seward Peninsula.
The value of the gold output of Seward Peninsula in
1916 was about $2,900,000, which is the same as that of
1915. In addition to this, stream tin, tungsten, and anti
mony ore were produced to the value of $100,000.
Twenty-nine gold dredges were operated on the penin
sula in 1916, seven in the Nome district, four in the Solo
mon River district, nine in the Council district, four in the
Port Clarence district, three in the Fairhaven district, and
two in the Kougarok district. In addition, two tin dredges
were worked in the York district. About 65 deep placer
mines and 30 open-cut plants were operated on the penin
sula during 1916. One of the notable events of the year
was the development of the placers on Dime Creek on the
Koyuk district in the southeastern part of the peninsula.
The output of the district for the year was valued at about
$100,000. These placers carry considerable platinum. The
only other place on the peninsula where platinum has been
reported is in the placers of Bear Creek in the Fairhaven
district.
HANDLING OF NON-EXPENDABLE PROPERTY ON
LOCOMOTIVES.
Department of the Interior,
Alaskan Engineering Commission.
Office of Master Mechanic, Jan. 1, 1918.
Mechanical Dept. Circular No. 35:
TO ENGINEMEN AND ROUNDHOUSE FOREMEN:
I am arranging for standard equipment to be placed
on each and every locomotive on this Division, and as
fast as each engine is so equipped a framed list segregat
ing non-expendable and expendable property will be placed
in the cab.
As you are aware, this office is charged with the re
sponsibility for the proper care and handling of each
piece of property on each locomotive as listed under the
heading “non-expendable,” and as in the past the instruc
tions in force have not been complied with and the hand
ling of non-expendable property on locomotives has been
very unsatisfactory, the following instructions now
supersede and will be strictly enforced:
1. As all engines are similarly equipped, absolutely
no property listed under heading “non-expendable” will
be transferred from one engine to another or by one en
gineer to another. (Roundhouse foreman will instruct his
men that absolutely no tools or equipment are to be tak
en from a locomotive inside or outside of shop for any
purpose, temporarily or othei’wise, without his direct au
thority and no violation of such rule will be counten
anced.)
2. Engineer taking engine from shops or on line
will automatically accept responsibility for all tools shown
on list, unless by first mail after such acceptance he ad
vises this office of discrepancies found.
3. Any tools lost, stolen or found missing must be
reported to this office by first mail immediately subse
quent to the discovery of the loss, so that this office may
arrange for the proper release from responsibility and
also arrange for the replacement of the tool.
4. No tools or equipment belonging to the railroad in
addition to those on the list will be accepted by or placed
on the engine by engineer without permission from this
office. Any excess equipment found on engine will be
turned over by engineer to roundhouse foreman at An
chorage on the first trip in, together with any information
at hand relative to same.
i 5. Any tools broken will be turned over to the
roundhouse foreman by engineer each trip in; roundhouse
foreman will arrange to return same to Obsolete Store
through this office and he will also arrange at this of
fice for replacement of the broken tool.
6. Failure to comply with the above instructions will
constitute “negligence”; and as check of property on lo
comotive is made by this office from time to time unless
satisfactory explanation is submitted arrangements will
be made to deduct the value of any property found miss
ing from any money due the engineer assigned to engine
at the time of the check. For your further information
in this connection I am quoting extract from General Store
keeper’s Bulletin No. 14 of May 18, 1916, which is still
in effect:
“Property lost either through negligence, theft or
unavoidably must be reported at once so that certifi
cate of loss can be prepared and forwarded to responsible
officer for certification. All information as to the place
and circumstances should be given in the original state
ment. PROPERTY LOST THROUGH NEGLIGENCE
will be reported by the responsible head of department
to the General Storekeeper, who will arrange for payroll
deduction for the amount of loss.”
There is nothing difficult about handling this matter
in the manner as outlined; it simply means a little at
tention on the part of those concerned to the care of
Government property with which they are entrusted, and it
is now expected that the necessary attention will be
forthcoming without furher request.
E. P. HEDBERG, Master Mechanic.
Approved: A. CHRISTENSEN,
Acting Division Engineer.
Anchorage Division Notes.
The recent extreme cold weather has caused consid
erable inconvenience and delay to the contractors working
on the construction between the ends of steel south of An
chorage. Ice forming in the cuts and fills is one of the
difficulties encountered and the task of keeping the ear
tracks clear for the handling of spoil is unusually
troublesome.
A trail through Broad Pass is being marked out under
the supervision of District Engineer Dose for the conveni
ence of travelers between Anchorage and Nenana. With
the completion of the trail the danger of travelers becom
ing lost will be reduced to a minimum.
One outfit car, to be used as a temporary depot at the
end of steel south of Anchorage, was completed by the
machine shop during the week. Work was commenced on
the construction of two additonal outfit cars.
The lunch counter service at the Social Hall was
opened to the public Wednesday morning, January 2. The
tentative schedule of service is as follows: 7 to 8 a. m.;
12 noon to 1 p. m.; and 8 to 10:30 p. m.
Four construction contracts were completed last week:
H. J. Taboloff & Co. at Mile 87; Steve Leakos & Co. at
Mile 90; Gus Hedlund & Co. and E. Burgland & Co. be
| tween Miles 84 and 86.
_
Installation of the new 40-ton crane at the machine
shop was completed, except for a small amount of work to
be done by the electrical force.
A special train left Anchorage for Mile 91 on Monday
morning with 60 passengers, most of whom were former
employees en route to Seattle.
Extra gang No. 5 was engaged all week collecting for
storage construction material between Moose Creek and
Kings River.
The Commission force at Mile 89, Turnagain Arm has
been reduced and the camp was abandoned on January 1.
The total force engaged on Turnagain Arm con
struction is now less than 600.
Matanuska reported a temperature of 44 degrees below
zero for December 24.
Two bridges along Turnagain Arm, between Miles 85
and 86, were completed.
Twenty-two telephones were installed in Anchorage
during the week.
Seward Division Notes.
Three trains a week continue to be operated over the
Alaska Northern Railway, leaving Seward on Tuesday,
Thursday and Saturday.
Despite continued extreme cold weather a small extra
gang has kept the tunnels between Miles 49 and 53 open
to traffic.
The reconstruction of Bridge No. 144 has been com
pleted, and work is progressing satisfactorily on Bridge
No. 146.
The revision of the line between Miles 67 and 71 has
been completed and cross-sectioning is now in progress.
Charles Nelson & Co., contractors, who are filling
Bridges Nos. 63 and 64, have their fills connected.
Contracts have been awarded E. W. Wilburn for 20,000
lineal feet of peeled piling and 15,000 railroad ties.
The rehabilitation work of the Alaska Northern south
of Kern Creek is moving ahead rapidly.
There were 529 employees on the payroll of Seward Di
vision at the close of the week.
Bengsten & Co. have begun work on their contract for
excavation at Mile 814.
APPOINTMENT.
Department of the Interior,
Alaskan Engineering Commission.
Anchorage, Alaska, Dec. 31, 1917.
Effective January 2, 1918, Mr. Andrew Christensen is
appointed Acting Division Engineer of the Anchorage Di
vision, and is authorized to sign all contracts, appoint
ments, employment agreements, travel orders, vouchers
and other necessary papers, and in general to perform all
the duties with respect to said Division that are now per
formed by me as member of the Commission and Division
Engineer. F. MEARS, Acting Chairman.
NORTH DAKOTA COAL LAND IS THROWN OPEN TO
ENTRY.
Secretary of the Interior Lane announces another ad
dition to the available coal supply of the Northwest
through the restoration of 238,082 acres of land in the
former Fort Berthold Indian Reservation, North Dakota, to
coal entry. The coal is classified as lignite and is sub
ject to disposition at the minimum prices of $10 and $20
per acre, according to its distance from a railroad. The
opening of the lands to entry results from their classi
fication by the Geological Survey as coal and the recent
enactment of legislation by Congress permitting their dis
position.