year. Imports were valued at $32,636,833, or $3,739,537 less than 1927. The balance of trade in favor of Alaska is $42,213,085, as compared with $20,566,605 for last year, an increase of more than 50 per cent. The increase is accounted for almost entirely by the large salmon pack. The outstanding feature of the year from an economic viewpoint was the remarkable improvement in the production of the salmon fisheries.

FISHING INDUSTRY

As compared with the number of salmon caught in 1927 the catch in 1928 discloses an increase of approximately 86 per cent. This is accounted for primarily by the large runs of red salmon in western Alaska and pink salmon in the southeastern district. The most notable increases were 227 per cent in southeastern Alaska and 66 per cent in western Alaska. The value of the fisheries products, exclusive of aquatic furs, was $54,545,588, an increase of $14,382,288 over 1927. This represents the worth of manufactured product. It is estimated that the value of the catch to the fishermen was approximately $17,343,000. Salmon and herring make up the principal part of the catch. The round weight of salmon catch landed by fishermen was approximately 517,069,403 pounds and of herring approximately 134,020,216 pounds. Thirty-one thousand and eighty-six persons were employed in the commercial fisheries in 1928, an increase of 2,214 over the preceding year. Of these 17,326 were whites, 5,614 were natives, and the rest Filipinos, Japanese, Chinese, Mexicans, and Negroes, in the order named.

The value of the canned salmon in 1928 represents about 96 per cent of the total value of the industry. Twenty-four thousand four hundred and twenty-eight persons were employed to can 6,083,903 cases, valued at $45,383,885. One hundred and fifty-three canneries were operated as compared with 145 in 1927.

The production of mild-cured salmon, while considerably less than in 1927, was not below the average for the past several years. Twenty plants were operated and employed 1,970 persons to pack 4,193 tierces of kings, 1,650 tierces of cohoes, and 7 tierces of chums, a total of 5,850 tierces, valued at $1,101,871. Efforts to utilize the by-products of the canning industry have been successful, and during the season 1,421,644 pounds of fertilizer, valued at $44,109, and 43,390 gallons of oil, valued at $16,420, were derived from this source.

The total production of the herring industry was somewhat greater than in 1927. An important feature was the discovery of large schools of herring in the vicinity of Dutch Harbor. Sixty-five plants, employing 1,992 persons, produced 16,056,595 pounds of Scotch-cured herring, 20,004,164 pounds of meal, 2,543,600 gallons of oil, and 6,553,266 pounds of bait, valued at $3,098,457, in 1928.

The halibut industry suffered a decline in prices and in the quantity of fish caught in 1928. One thousand two hundred forty-one persons were employed in this industry and they caught 31,567,000 pounds, valued at $3,094,000, as compared with 34,491,283 pounds, valued at $3,805,088, in 1927. The problem of preserving the halibut fisheries has occupied the attention of the International Halibut Commission for several years and as a result of their investigations it is apparent that the fishing grounds bordering Canada and Alaska have been seriously depleted. If these fisheries are to be rehabilitated, it is probable that fishing will have to be restricted for a period of years. The output from the cod fisheries declined about 50 per cent under last year because none of the large plants were operated. There was a sharp decline in the whaling industry, both in the number of people employed and the value of the catch. Two hundred and thirty persons captured 402 whales, which yielded 730,650 gallons of oil, valued at $343,786; 93,750 gallons of sperm oil, valued at $36,748; and 1,326 tons of fertilizer, valued at $73,740, or a total of $454,274 as compared with $622,412 in 1927.

SEALING

The census of the seal herd on the Pribilof Islands is computed in August each year, and the Bureau of Fisheries estimates the increase for 1928 to be 62,643, or 7.7 per cent. The total number of seals of all ages and classes in the herd on August 10, 1928, is given as 871,513. In 1911, when the Government assumed control of the herds, there were about 132,000 seals of all classes on the islands, and the results that have been achieved in building up the herds to more than six times the original herd in 18 years is a striking example of what may be accomplished by proper methods of control and wise utilization of the surplus.

While the herds have been increasing, they have been made to produce many thousands of sealskins for the market, and each year the number of marketable skins increases. Only bachelor seals are taken for their skins. The seal industry will continue to be a source of revenue, and there is no longer danger of the extermination of the herds so long as they are maintained under the supervision of the Government.

Thirty-one thousand and ninety-nine sealskins were taken from the Pribilof Islands herds during the calendar year 1928. This is an increase of 6,157, or 24.2 per cent, over the catch for 1927. During the year 28,929 skins were sold at public auction and at private sales authorized by the Secretary of Commerce for a total of $896.383.40. In 1927 20,315 skins were sold for a gross price of $718,101. The revenue derived from the Pribilof Islands is aug mented by the trapping of white and blue foxes, which are fed with

the by-products of the sealing industry. During the trapping season 1928-29 544 blue and 9 white fox skins were taken and prepared for market. October 15, 1928, 278 blues and 15 whites, taken the previous season, were sold at public auction for $21,290.

MINING

In 1928 the total value of all mineral products is reported to be $14,128,000. This is $176,000 under the 1927 valuation. The decline is due wholly to the decrease in the quantity and value of copper that was mined. Although the total mineral production is less than that for 1927, it is significant that the gold production increased very materially. The mining industry has been stimulated during the past year by new developments and by assistance given to prospectors; hence it is almost certain that the production from the mines will show an increase next year.

For many years the production of gold from placer mines exceeded that of the lodes, but in recent years there has been a gradual change in the situation, and last year the production from the lodes exceeded that derived from the placers. The total gold production from all sources in 1928 is estimated to be $6,775,000, as compared with $5,927,000 in 1927.

Copper-bearing rocks are distributed throughout the territory but commercial-ore bodies are mined in only two localities, Kennecott, in the Copper River district, and on Latouche Island. The production from these mines shows a sharp decline. In 1927 the value of the copper was estimated to be $7,250,000, while in 1928 it decreased to $6,100,000. There has been a steady decline in the production of copper each year since 1923, and further decrease is inevitable unless new ore deposits are discovered.

Approximately 75 per cent of the silver produced in the Territory is recovered from the copper ores, hence the decline in copper production is accompanied by a decrease in the output of silver. The value of the silver recovered is estimated to be $273,000 as compared to $356,000 in 1927.

An increase is noted in the production of lead, marble, limestone, tin, and platinum. During the year a new industry was initiated on Dall Island, situated about 50 miles west of Ketchikan. The Pacific Coast Cement Co. opened a quarry for the production of limestone to supply a cement plant located near Seattle. This quarry has a capacity of several thousand tons per day and no doubt will continue in operation for many years. Alaska contains large quantities of suitable limestone and largely increased production may be expected.

The coal mines in the Territory produced 125,289 tons, valued at $624,000. This is 20 per cent greater than last year and exceeds the production of any previous year. Practically all of the coal is produced in two districts, both tributary to the Alaska Railroad. The Matanuska Field near Anchorage and the Healy River area near Fairbanks supply their respective districts.

Petroleum was produced in only one district in the Territory. A number of shallow wells near Katalla in the vicinity of Bering River produce a small quantity of paraffin-base oil. This is refined locally and the various distillates are sold in local markets.

TRANSPORTATION

The report of the general manager of the Alaska Railroad discloses that there was a decrease in the revenues derived from transportation of freight and passengers. The revenue from the river boats that are operated in conjunction with the railroad increased about 3 per cent. The revenue from all sources, including nonoperating income, was $1,269,634.07, and the total deficit, all expenses except charges to capital account, was $950,711.74. Shipments of coal increased 16 per cent, but this was not sufficient to overcome the decline in shipments of machinery and construction supplies to the Fairbanks Exploration Co. In the interest of colonization along the railroad a traveling representative was appointed, and he has been visiting farming communities in various sections of the West for the purpose of furnishing information to individuals and prospective settlers. It is expected that through his efforts the population along the railroad will be increased.

There was a gratifying increase in the tourist travel, and it is expected that with the completion of the wagon road through Mount McKinley National Park there will be a marked advance in the number of visitors each year.

LUMBERING

The national forests of Alaska embrace an area of approximately 21,000,000 acres and contain the greater part of the commercial timber in the Territory. These forests are administered by the United States Forest Service, Department of Agriculture, and their value to Alaska and the Nation may be appreciated when it is understood that they comprise 13 per cent of the total forest reserves of the United States and contain about 85,000,000,000 board feet of timber. Investigations by the Forest Service indicate that the forests will yield 1,000,000,000 board feet each year in perpetuity and that the present yearly cut is 56,000,000, or 5.6 per cent of what can be taken without danger of depleting the supply.

Much of the timber, especially in the Tongass Forest, is valuable chiefly for the manufacture of pulp and paper. Large areas have been awarded under contracts to paper-manufacturing companies and the preliminary plans for construction of the necessary plants have been completed. It is known that there are more than 550,000 horsepower as yet undeveloped in the regions tributary to the forests. The utilization of this power and the timber resources will place the manufacturing of pulp and paper in the list of Alaska's major industries.

ROADS

The Territory cooperates with the Federal Government in the construction of roads and trails. The Alaska Road Commission, War Department, is responsible for the construction of roads and trails outside of the national forest areas, and the Bureau of Public Roads is charged with similar work in the forest reserves. In the biennium 1927-28 the Territory appropriated $500,365.41 for roads, trails, and aviation fields, and the cost of administration to the Territory was 1.5 per cent of this amount. This clearly shows the benefits of the cooperative arrangements. In 1928 the new construction consisted of 45 miles of road, 481⁄2 miles of sled road, 104 miles of trail, 440 linear feet of bridges, 10 airplane landing fields, and 23 shelter cabins. During the same period 2734 miles of road were reconstructed, 65 miles of road were surfaced, 234 miles of tramway constructed, and 1,2714 miles of road, 844 miles of tramway, 7421⁄2 miles of sled road, 4,3891⁄4 miles of permanent trail, 314 miles of temporary trail, 736 miles of telephone line, 27 airplane landing fields, and 26 shelter cabins were maintained. The total expenditures in 1928 for all activities was $1,447,163.91.

Since March 1, 1927, all roads within national forests have been constructed and maintained by the Bureau of Public Roads. The funds expended by this organization are provided by the Federal highway act and Territorial allotments. The total amount expended for roads in and adjacent to the national forests is $4,618,989, and of this sum $325,593 has been contributed by the Territorial road board.

Two hundred and four and five-tenths miles of highway have been constructed, and in 1928 an additional 17.3 miles were under construction. A total of $573,869.13 was expended during the year, and of this about $40,000 was derived from Territorial allotments. The development that has taken place along the highways affords ample justification for the expenditures that have been made by this organization. A comprehensive program has been prepared, and it is believed that the needs of each community have been anticipated.