seems likely, and prospecting work is in progress at a number of these places. The successful development of a large copper mine, however, is an expensive and time-consuming task, and none of the prospects that are now being exploited appear to have yet reached such a stage that their future can be predicted with certainty.

SILVER

Most of the silver produced in Alaska during recent years has been recovered from the copper ores-in fact, during 1927, the latest year for which complete reports are available, over three-quarters of the silver came from that source. With the great reduction in the output of copper ore in 1928 the quantity of silver naturally shows a corresponding decrease. The greater output of gold from both lodes and placers resulted in a slight increase in the amount of silver that is associated with the gold obtained from them. The quantity of silver contained in ordinary lode or placer gold is, however, relatively so small, and silver is so low in price, that the increase in output of gold means an increase of only a few thousand dollars in the value of the silver recovered from those sources. Some silver is also recovered from ores that are principally valuable for the lead and silver they contain. Most of the ore of this sort is mined in the Hyder district in southeastern Alaska and is shipped to smelters in the States for treatment. Silver-lead ores are, however, known in widely separated parts of the Territory, and some mining and prospecting is in progress at several places on ores of this type. The high cost of transportation and treatment discourages development of or search for these ores except in the more accessible parts of Alaska.

COAL

The production of coal from Alaskan mines was greater in 1928 than in any previous year, amounting to 125,289 tons valued at $624,000. As usual the greater part of the production came from the Matanuska and Healy River fields. The principal producing mines in the Matanuska field were those of the Evan Jones Coal Co., and the Premier Coal Mining Co., and in the Healy River Valley the Suntrana mine of the Healy River Coal Corporation. No notable new developments were reported in either of these fields, but there was a steady development in both. The increased demand for fuel in connection with the dredging project of the Fairbanks Exploration Co. in the Fairbanks district has served as an additional outlet for coal from the Healy River field.

During the year considerable activity was shown in the development of coal beds that have long been known on Admiralty Island, in southeastern Alaska. This work was done at the property of the Admiralty Island Coal Co., on Kanalku Bay, and several shipments of coal were sent to Juneau and near-by markets. A small quantity of coal for local needs is also reported to have been produced, principally by Eskimos, from coal beds on the Kuk River, near Wainwright, in northern Alaska.

No new developments were reported in the Bering River field, nor in any of the many coal fields that are known in other parts of Alaska. There is still a considerable use of coals imported from

the States and British Columbia that might be supplied by coals from Alaskan fields if they were pushed by a strong selling organization.

PETROLEUM

All of the petroleum produced in Alaska in 1928 continued to come from the wells of the Chilkat Oil Co., near Katalla, where, in addition to the oil wells, the company operates a small refinery. The gasoline and distillate produced from this petroleum are much in demand in the local market, as they are said to be of better quality than the usual commercial brands. This company is reported to have continued operations in this field on essentially the same scale as heretofore.

The only other place in Alaska where drilling for oil was in progress during the year was in the Matanuska Valley a few miles west of Chickaloon, where the Peterson Oil Association continued work throughout most of the open season. The well is said to have given strong showings of gas at several levels, but as the geologic formations that it penetrated consist of members of the coal series, there is strong probability that this gas comes from them. This probability seems to be borne out by such tests as have been made of the gas.

No new activities in the search for petroleum in the Alaska Peninsula, in northern Alaska, or elsewhere in the Territory, were reported during the year. This lack of activity does not indicate that the possibilities of finding petroleum in them are regarded as exhausted nor that search has been permanently abandoned. It simply means that the proving of a new field in Alaska is an extremely expensive task that can be undertaken only by a large, strongly financed company. Such companies find that at present their endeavors promise more certain and immediate return in other fields.

OTHER MINERALS

In addition to the mineral products already mentioned, Alaska also produced during 1928 some lead, marble, limestone, tin, and platinum. The aggregate value of the output of these minerals, with that of petroleum, was $356,000. Most of the lead came as a by-product from the gold ores of the Alaska Juneau mine, and the increased production of those ores resulted in the recovery of a greater amount of lead also. An increasing amount of lead is also recovered from the silver-lead ores of the Hyder district. The output of marble in 1928 came as heretofore entirely from the quarries of the Vermont Marble Co., on Prince of Wales Island, in southeastern Alaska. The mining of certain limestone deposits on Dall Island, in southeastern Alaska, by the Pacific Coast Cement Co., as a source of one of the constituents of its cement, marks the beginning of a new enterprise whose development should materially increase the mineral production from that part of the Territory. The tin ore was derived principally from placers near York, in Seward Peninsula, but small amounts were recovered from placers in the Hot Springs district of the Yukon-Tanana region. Negotiations were concluded late in the summer of 1928 for more extensive develop

REPORT OF THE GOVERNOR OF ALASKA

ments of the tin resources of the Hot Springs district in the near future. Prospecting for tin ore near Big Creek, in the Ruby district, was continued, and probably some placer tin was recovered, but no details regarding the results of the prospecting there are yet available. The platinum metals came principally from placers in the eastern part of Seward Peninsula and in the Goodnews Bay district at the mouth of the Kuskokwim River. The mine of the Alaska Palladium Co. on Kasaan Peninsula, in southeastern Alaska, which for a number of years had been a large producer of platinum metals and the only one in which these metals were recovered from lodes was closed throughout the year. Possibly a few other mineral commodities were produced during the year, but for the purposes of this summary their value may be regarded as inconsequential.

ADMINISTRATIVE ARRANGEMENTS

The work of the Geological Survey in Alaska consists of two main types-investigations of the mineral resources of the Territory and activities connected with the administration of certain land laws relating to leasing and prospecting of mineral deposits on the public domain. Administrative control of both types of work is vested in the chief Alaskan geologist at Washington. For the conduct of certain phases of both types of work local offices are maintained by the Geological Survey at Juneau and Anchorage, in charge of a supervising mining engineer. By the appropriation act for 1929-30 separate funds were provided for the two types of work conducted by the personnel of the local Alaska offices, an allotment of $10,000 being made to care for activities under the various mineral leasing acts applicable to the Territory and an allotment of $4,500 for activities under the authorization for investigation of the mineral resources of Alaska.

In accordance with an informal arrangement with the Department of Commerce, the resident supervising engineer of the Geological Survey directs the work of the United States Bureau of Mines in the Territory.

The Territorial government of Alaska has cooperated in certain phases of the work carried on by the resident personnel of the Geological Survey to the extent of furnishing office facilities and clerical services at Juneau and supplying funds for such traveling expenses as are incurred in the interest of the Territory. The Territorial legislature at its last session also authorized the use of Territorial funds in paying salaries of additional mining engineers to assist in mining investigations. This cooperation has worked out especially well, for it eliminates much duplication that would be necessary if the Federal and Territorial Governments each maintained separate organizations to conduct the work desired by them, much of which is identical in character.

INVESTIGATION WORK

The investigations of mineral resources embrace a wide variety of activities, including an annual canvass of the mineral production of the Territory, the study of individual mineral deposits, and the preparation of reports and maps covering prospective mineral-bearing

areas. In connection with this work, both geologic and topographic surveys are carried on.

Their familiarity with mining matters throughout many parts of the Territory and their availability for consultation enabled the supervising mining engineer and his staff to give much valuable information and advice to many of the Federal and Territorial agencies in Alaska as well as to many individuals, including the governor, the Alaska Railroad, the Forest Service, members of the Territorial legislature, and many operators and prospectors. The Alaska offices also act as local distributing offices for handling publications of the Geological Survey and assist in furnishing the main office at Washington with information on many phases of the mineral industry.

During 1929 the supervising mining engineer and the field staff attached to the local offices in Alaska will continue as heretofore to conduct general investigations of mining development and the progress of prospecting work in the Territory; will render assistance to prospectors; and will consult and advise the governor, the legislature, the Alaska Railroad, and other Federal and Territorial agencies on matters relating to the economic development of the mineral resources of the Territory. Specific investigations of the results of mining development and mineral resources will be made in those parts of southeastern Alaska and in the general region served by the Alaska Railroad where such activities have been most significant in their importance to the Territory.

MINERAL LEASING WORK

Supervision of operations in Alaska carried on under the various acts relating to mineral leases and permits on public lands is conducted by the Geological Survey, and most of the local details are performed by the local field offices at Juneau and Anchorage, in charge of the supervising mining engineer. Nearly all the coal mining and much of the oil drilling in Alaska is done on public lands, held temporarily by private individuals or companies under leases or permits. The interests of the Government in these lands requires that the developments shall be supervised so as to insure that proper methods of extracting the minerals are employed, to prevent undue waste, and that the lives, health, and welfare of those employed in the work are properly safeguarded. The coal-mining developments are carefully supervised, and wherever possible assistance is given to the operators by outlining and putting into effect economical and safe development and mining programs. Special attention is given to the installation and maintenance of safe and efficient hoisting and tramming equipment; mine ventilation; the reduction of fire, explosion, and blasting hazards; and to the providing of adequate pillars in all advance mining operations.

The care and maintenance of the coal properties and equipment that the Government owns at Eska, Chickaloon, Sutton, and Coal Creek devolves upon the supervising mining engineer and his staff. All these properties are now idle, but the Eska mine and camp are kept in condition for immediate reopening in case an emergency should arise that might jeopardize the supply of coal for the Alaska Railroad.

REPORT OF THE GOVERNOR OF ALASKA

TRANSPORTATION ASSISTANCE TO PROSPECTORS

There continued during the fiscal year to be a large number of applications for Territorial transportation assistance from prospectors throughout the Territory, and claims on the fund of $20,000 provided by the 1927 legislature exceeded the fund available before the end of the Territorial biennium on March 31, 1929. The legisla ture at its session recognized the importance of this assistance to prospectors in stimulating the search for valuable minerals in the Territory by again appropriating $20,000 for the ensuing biennium. It also appropriated an additional $4,000 to cover claims originating during the biennium ended March 31, 1929. Administration of the act continued in charge of the mine inspector acting as ex officio commissioner of transportation for prospectors.

Up to the end of the fiscal year a total of 200 prospectors had been assisted from the appropriations in transporting themselves and supplies. Of this number 34 were prospecting in the first division, 53 in the second division, 39 in the third division, and 74 in the fourth division. From these 200 prospectors a total of 110 very good reports had been received up to the end of the fiscal year, 27 reports being from the first division, 28 from the second, 22 from the third, and 33 from the fourth. The reports submitted contain some interesting and valuable material on mineralization, timber, and other resources for use in mining, topography, and accessibility. Some of the data is from regions concerning which nothing has been published and very little is known, and should prove of considerable value to prospectors and others contemplating trips to these sections. Several finds of minerals of possible commercial importance were reported by prospectors who received assistance, the most important of which seems to be a copper prospect located near McCarthy which has been taken over for development by a large company.

Many expressions of appreciation for assistance rendered have been received from prospectors, and in several instances it has been admitted that it would have been impossible to continue prospecting operations without the assistance made available by the Territory. Aside from the monetary assistance the "prospectors' aid act" seems to have stimulated interest in prospecting in Alaska by making prospectors feel that the Territory appreciates the value of their efforts toward developing its latent resources.

BUREAU OF MINES

The activities of the Bureau of Mines in Alaska during the fiscal year ended June 30, 1929, were again confined to the mine-safety service, assaying and mineral analysis for prospectors and others, and the sampling and analysis of coal. The supervision of this work continued in charge of the supervising mining engineer for the Geological Survey in Alaska, with headquarters at Anchorage and branch offices at Juneau and Fairbanks.

MINE-SAFETY SERVICE

The purpose of the mine-safety service is to safeguard the lives and health of those engaged in mining and related activities. This