The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1940-03-31
NEARLY FIVE
MILLION TONS
ORE HANDLED
Local Mine Triumph Of 90
Year Gold Search on
6astineau Channel

1t has not been so many years, as
time goes, since Joe Juneau and
Richard Harris landed in a canoe
at the mouth of a mountain stream
at the site where the town of Ju-
neau now stands. Planning the grav-
ell of this creek they found gold.
and the name of Gold Greek has
since been given to this stream,
Following the news of gold discov-
cry, many prospectors and miners
rushed to the vicinity and the up
per reaches of the Creek were ex-
plored. A large hydraulic placer OPP
Grafton was established, and many
lode claims were located.
Soon after the discovery of gold
in Gold Greek, discovery of gold was
made on Douglas Island across ths
channel from Gold Greek, and
claims were located. These claims
were developed and profitable OPP
Grafton soon emerged, out of which
came the Treadwell mines of Doug
las Island, we'll known for the ex-
tent of their operation.
Not For Small Companies
Various groupings of lode claims
were made in Silver Bow Basin at
the head of Gold Greek, and COM
panies were formed to exploit and
work the several groups of claims.
These early companies operated with
small, if any, profit, and it was
demonstrated that the ore depos-
its were of too low gold content to
permit a profitable operation when
worked on small scale and inter-
mittently, as was necessary. due to
the lack of water In Gold Creek
Basin and vicinity In the winter
season. Gradually the various
claims, claim holdings, and COM
panies were gathered together into
two groups, and after several years
of seasonal operation on a moderate
scale by the two companies con-
trolling these groups to further de-
termine the gold content of the ore,
each of these companies decided to
build a large mill on Gastineau
Channel, and to further develop its
claims to furnish ore for the mills.
The Alaska Gastineau Gold Min
ing Company started building their
mill at Thane in 1912. and opera
lions were started in 1915 and dis
continued In 1921, without having
made any profit or returned any Of
the capital invested.
A. ). rs Years Old
In the meantime, In 1918, the Al
aska Juneau Gold Mining Company
began mine development on large
scale, and In 1915 construction of a
large mill was begun. Construc-
ton was finished and the mill be-
gan operation in 1917, but owing
to many structural difficulties, and
the fact that no provision had been
made for sorting the ore, the oper-
alton was not profitable. A period
of ten years elapsed, during which
time many changes and additions
were made in the mill, much addi-
tional work was done in the mine,
and the annual tonnage handled had
been brought up to over 100000
tons annually.
In November of 1927 the first
operating profit was made, but in
the interval between starting the
mill in 1917 and the 1927 profitable
operation, an Indebtedness of So
600 10000, over and above what the
stockholders had invested in the
mine, was incurred. Three years
profitable operation were required
before this Indebtedness was liqui-
dated, and the operating profits
could be applied to dividends. In
1881 the first dividend was paid.
and since that time regular quar-
terly dividends of varying amount
have been paid.
Costs Increase
Operating costs have steadily in
creased. In 1922 Juneau operating
cost was s1,138,351. in 1927 $685.
651 and in 1889 had increased to
$3,390,094. or nearly three times the
1922 figure. OF the amount ex-
pended in 1899, 100000 was paid
as wages in Juneau. Thus it will
be seen that nearly two-thirds of
the Juneau operating cost consists
of wages.
During the years from 1927 to
1881 inclusive, very substantial
amounts of money have been spent
on new construction and improve
NETS annually-a large part for
labor in Juneau.
During the year 1884 all the min
ing claims, power plants, and all
other physical property in Alaska
belonging to the Alaska Mining and
Power Company, were purchased.
The purchase price for this prop
erty was paid with shares of the
Alaska Juneau Gold Mining Com