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4.3.10.wavAlaska's two largest industries during this period, mining and canned salmon, were completely dominated by outside corporations. This caused resentment among many Alaskans, who felt outside companies reaped huge profits from Alaskan resources while contributing little to the state. Since the Alaska legislature was prohibited from regulating or taxing fishing or mining, Alaskans had little power to control these businesses or the territory's resources.
Resistance to the perceived exploitation of Alaska became an important political issue. As early as 1908, Wickersham gained public support with warnings that the corporate power of J.P. Morgan and the Guggenheims was trying to dominate mining and transportation in Alaska. Morgan was the leading banker in the United States, and the Guggenheims had made fortunes in the Colorado copper mines. They teamed up to develop the Kennecott mine and build the first major standard-gauge railroad in Alaska.
A Morgan-Guggenheim syndicate also bought rival shipping companies, giving them a virtual monopoly on ships that sailed to Alaska. Residents complained the monopoly led to irregular service and unreasonably high rates. In a territory that depended on boats for all transportation and trade with the rest of the world, this was an important issue. "The central political issue in Alaska, as Wickersham phrased it, was whether the territory would have Government Rule or Guggenheim rule," historian Terrence Cole wrote.
Political Cartoon about Guggenheim-Morgan Syndicate and Alaska
The salmon industry faced similar issues. From the beginning, non-residents dominated the salmon fishing and canning industry in Alaska. Originally, the owners were from San Francisco, Portland, and Seattle. These companies fished in Alaska waters with short-sighted aggressiveness. As early as 1899, Alaska Natives appealed to the government to protect the salmon for those who relied on it for food. Congress did pass some laws to conserve fish stocks, such as requiring companies to establish hatcheries and limiting fishing seasons. But in general, these were poorly enforced.
By the 1930s, the number of salmon in Alaskan waters declined alarmingly. Some parts of Alaska were declared disaster areas. Alaskans blamed mismanagement of the fisheries and overfishing by outside corporations. Residents felt Alaskans benefited little as the fish stocks dwindled for short term profits of outside companies. Canned salmon companies generated 75% of the economic product in Alaska, but little of that wealth actually went to Alaskans in profits, jobs, or taxes. In the years to come, the power to regulate the territory's resources for the benefit of Alaskans would become a major political issue.
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