1':\ REVIEW OF

BUSINESS AND ECONOMIC

CONDITIONS

UNIVERSITY OF , INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH JANUARY 1967

Alaska'sEconomy in 1966 Petroleum and Natural Gas From its beginning on th e in 1957 th e An excellent year for Alaska's lea ding industry - fish­ oil and gas industry rapidly became th e lead er in th e eri es - and furth er strides forward by the major growth mineral field in Alaska. In 1966 the value of oil produc ed industr y - oil - ,vere the outstanding features of th e and gas sold totaled $44.6 million , which was 56 p ercent stat e's economy in 1966. At the same tim e, an unusual of th e total valu e of min era l produ ction (see Table 1). amount' of pr eparation for futur e growth went on in Production of both oil and gas in 1966 as compared with almost all sectors. Some of th ese activities will produc e 1965 was remarkabl e: an incr ease of 30 percent in the results in 1967, while others are of somewhat lon ger quantity of gas sold and 24 percent in the oil output. Th e range . Thus , the larg e amount of pr eparatory work for increas e in oil output result ed almost entir ely from th e Alaska Centennial will hav e it s principal effect this new production from the Middl e Ground Shoal field in year, with the anticipat ed incr ease of visitors providing Cook Inl et. Lat e in th e year Middle Ground Shoal was a major boost to the state's economy. This should also producing at a rat e of almost 12,000 barrels per clay from hav e a lastin g effect on th e level of tourist trad e. 13 w ells (including 4 duals listed as 8 wells) tapping the Hemlock and Kenai form ations . Th e oil and gas industry brought in new w ells and also install ed equipm ent to handl e greater output in th e It might hav e be en expected that increases in pro­ fuh1re. 1fany roads were improv ed , and 150 miles were duction of this magnitud e would ha ve caus ed the oil add ed to th e state's highways. Th e Snettisham hydro­ companies to be pr eoccupied with output from th eir electric proj ect, which will have important effects on th e existing facilities, but eve n more rema rkabl e were the ec onomy , was given the go-ah ead in 1966. Compl etion of steps th ey took to augment their drillin g capacity. Dur­ n ew sea and rail terminals had an imm ediat e improv ement ing 1966 severa l drillin g platforms, for which ord ers on the handling of fr eight and will be of continuing bene­ had be en plac ed in 1965, were tow ed to Alask a from th e fit in years to come. California coast and pla ced in position in Cook Inl et. Th ere are now eight platforms in pla ce and th ere may be Th e importan ce of trade with Japan as a factor in th e a doz en by th e encl of 1967. Some of th ese platforms can economy of Alaska incr ease d during 1966. Th e ch emical accommodat e 32 wells each. In addition to th e fitting plants being built on th e Kenai Peninsula are a joint out of these platforms, many miles of pip eline hav e b een Am erican / Japanes e enterpris e, and arrangements for fur­ laid on th e bed of th e Inl et to conn ect the platforms to th er Japan ese investment in Alask a are well advanced. the shore faciliti es. Ala ska already exports a larg e quantity of forest product s to Jap an via th e Japan ese-own ed pulp mill at Sitka, and At th e b eginning of 1967, th erefor e, th e productive it s subsidiary , th e Wrang ell Lumb er Company. Th e tenta­ capacity for oil is much higher th an it was a year ago. tive plan s for a chip mill at Homer did not mat erializ e, It may be a couple of years before all the drilling capacity but as Japan's demand for both wood and pulp is growing is in full use, but th e flow of oil should now incr ease rapidly, Alaska has good prosp ects of furth er incr easing rapidly , to brin g some return to the oil compani es for th e trad e in th ese products. vast expenditures (see diagram on pa ge 3), and yield PAGE 2 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

ment to supply 50 billion cubic feet of gas a year to ALASKA REVIEW OF BUSINESS AND ECONOMIC CONDITIONS Tokyo Gas Co., Ltd. and Tokyo Electric Power Co., Ltd. VOL. IV NO. 1 :Marathon Oil, co-owner with Union of California in the Published by the huge Kenai Unit field, was to furnish 30 percent of the Institute of Social, Economic and Government Research, University of Alaska, College, Alaska gas with Phillips Petroleum, Skelly Oil, Sinclair, and Pan William R. Wood-President, University of Alaska American Petroleum each furnishing 171/z percent from Victor Fischer-Director of the Institute of Social, Economic and Government Research Middle Ground Shoal. No figures were given for sales Victor Fischer-Editor price of the gas, expected to begin in 1969 and continue Francis R. Eels-Author and Associate Editor for 15 vears. Estirnateo C':lpita 1 C'O,ts $100 million for processing plants, tankers and other greatly increased revenue to the state. The year 1966 saw needed facilities. Final approval of the United States the beginning of regular oil and gas royalty payments and Japanese governments was needed, and the com­ from state land: these reached a total of nearly a million panies have now made the necessary applications to their dollars during the year. respective governments. A direct result of the development of an oil industry Further evidence of Japanese interest in Alaska's oil in has been the decision to build and gas was shown in the formation of the Alaska Petro­ two chemical plants beside Cook Inlet (and there are leum Development Co. by a group from Japan's Federa­ prospects of further developments of this nature). tion of Economic Organizations, known as the Alaska The complex on which work began in 1966 will con­ Society, in association with Teikoku Oil. Some of Japan's sist of a 1,000-ton-per-day prilled urea plant and an am­ leading petroleum, electric, shipping, iron and steel, monia plant capable of producing 1,500 tons per day, automobile, and shipbuilding firms put up 4 billion yen using 60 million cubic feet of Kenai Unit gas per day. The ($11 million) as capital for the new company. An Alaskan urea plant will be the largest in the world, and the am­ subsidiary, with capital of $1.5 million was organized in monia plant one of the largest. Collier Carbon and Chemi­ September to participate in bidding for oil and gas leases cal Co., a Union subsidiary, and Japan Gas-Chemical Co., in and offshore from Alaska. Ltd., a major Japanese chemical firm, are associated in this enterprise, which represents an investment of some Other Minerals $70 million. Table 1 shows the mineral output of Alaska in 1966 Negotiations for shipment of Kenai and Cook Inlet gas compared with the output in the previous year. The to Japan as liquefied methane continued over the year. dominance already achieved by oil and the further de­ Five major U.S. oil firms announced reaching an agree- cline in the importance of gold mining are clearly shown

TABLE 1 MINERAL PRODUCTION IN ALASKA

1965 1966 (Estimated) Percentage Value Value Change in Quantity ($'000) Quantity ($'000) Value 1965-66 Coal (short tons) 893,000 6,095 900,000 6,100 Gold (troy ounces) 42,249 1,479 31,237 1,093 - 26.1 Mercury (76-pound flasks) a a 238 101 Natural Gas (million cubic feet) 7,255 b 1,799 9,400 b 2,350 + 30.6 Petroleum (barrels crude) 11,128,000 34,073 13,800,000 42,228 + 23.9 Sand and Gravel (short tons) 30,266,000 34,467 17,558,000 20,713 - 40.0 Silver (troy ounces) 8,000 10 16,000 20 +100.0 Undistributed c 5,532 6,618 + 19.7 TOTAL Value 83,455 79,223 5.1

a Withheld in order to avoid disclosure regarding individual firms. b Includes only natural gas sold. An additional 4,722 million cubic feet in 1965 and approximately 6,000 million cubic feet in 1966 were used for pressure maintenance and power, or were unavoidably lost. c Includes barite, copper, gem stones, lead, mercury (1965), peat, platinum-group metals, stone, tin and uranium ore. SOURCE: Alaska State Department of Natural Resources, Division of Mines and Minerals. UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 3 by the figures. The margin between the cost of pro­ of Alaskan coal in 1966. These and the other military duction and the price of gold has become so unsatisfac­ establishments in the state taken together, are by far tory that there has been further contraction of this in­ the largest consumers of Alaskan coals. Military contracts dustry. The value of gold output in Alaska in 1966 was for the fiscal year ending in 1967 are for 668,000 tons, only just over a million dollars. compared with 639,000 tons for fiscal 1966. Although the The coal industry continues to be an important part of recent decision was against a change, the arguments in the Alaskan economy. The industry was saved from what favor of converting the two Anchorage bases to the use would have been a severe set-back, when the House and of gas will certainly be heard again. SPnatP Appropriations Committee of the federal govern­ Sand and gravel production was not much more than ment declined to sanction funds for conversion of the half as much during 1966 as it was m 1\)6b. [he main boilers at Fort Richardson and Elmendorf Air Force reasons were that most earthquake reconstruction work Base from coal to natural gas. The importance of this has now been completed, and also that highway work in to the coal industry is that the two military bases men­ 1966 consisted more of resurfacing and paving than of tioned consumed about a quarter of the whole output primary construction. The fall in the production of sand

170------and gravel more than accounts for the comparatively slight decrease in the total value of minerals produced in 1966 as compared with the previous year; oil and natural gas increases almost made up the difference. Despite good prices for mercury, production of the Alaska Oil and Gas Industry liquid metal increased only slightly. At yea.rend, nego­ tiatio'l1s were underway for reopening the Red Devil Expenditures and Value of Output mine near Sleetmute, on the Kuskokwim River. Previous 1959 -1966 operations at this mine enabled Alaska to rank third among the mercury producing states of the nation. In 1966 Alaska again had the only primary producer of platinum in the United States - the Goodnews Bay Mining Company. Dredging operations on the Salmon INDUSTRY River, 10 miles south of Platinum in the southwest Kusko­ kwim River region, also yielded appreciable quantities of 100 other platinum-group metals. Volume and value of pro­ duction were almost the same as in 1965. 90 In northwestern Alaska, the Kennecott Copper Cor­ poration has continued exploration and development of 80 (I) the Ruby Creek copper deposit in the Shungnak district. Cl:'. <( During 1966 the vertical shaft reached below 1,000 feet ...J ...J 70 0 to the target depth for lateral exploration. No ore pro­ 0 duction is expected for at least two years. z 60 0 Future development of Alaska's mineral industry may J ...J include extensive operations offshore. The discovery of ~ 50 gold in the sand of the seashore at Nome, early this century, has passed into history: now the search in that 40 area has been extended under the waves by the use of an experimental sea-bottom suction dredge, and the re­ 30 sults have been encouraging enough to stimulate further efforts. Representatives of major U.S. firms are reported

20 to have shown an interest in the potential of mineral production from the sea placers. 10 Fisheries

0.3 Although the oil and gas and associated industries

1959 1960 1961 1962 1963 1964 1965 1966 show the most rapid growth, the fisheries are still far ahead as Alaska's most important industrial activity. The SOURCE: Alaska Slo!e Deportment of Natural Resources, Division of Mines and Minerals. The eKpenditure figures do not indude markeling and soles activity. Other estimates, such o!i thorn of the Western Oil and Gos Anodolion, differ because of varying methods of compilation, but indicafe the some relative growth over the period. PAGE 4 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH wholesale value of Alaska's fishery products, after pro­ Closely related to the fisheries is Alaska's rich resource cessing, has been well over $100 million annually for of sea mammals, the most notable being seals and sea several years past. In 1965 the value was $166 million, otters. In 1966 the harvest of fur seals in the Pribilof and when all the figures for 1966 have been recorded, Islands numbered 52,866-all males. This was the largest it may again approach $170 million. number of male skins taken since 1962. The total harvest The most important part of the fisheries is the catch was greater in years when a large number of female pelts of salmon. During 1966 the total value of salmon to the were taken. There is a lengthy period of processing be­ fishermen (i.e., before processing) was less than in 1965, fore the skins are sold. although the actual size of the catch was extremely good. At present a bounty of $3 per skull is paid on hair seals bee.:ause of the damage they do to commercial fisheries. year, and many canneries were so busy that boats had Recently, however, there has been an increased demand to be put on limits. The reason for the lower total landed for hair seal skins for the garment trade, and large value was that the catch of red salmon, the most valuable numbers are killed for their pelts. In view of this, the species, was substantially less than in 1965. The figures cancellation of the bounty has been proposed. (a preliminary estimate) are as follows: After many years of conservation, sea otters have be­

Numbers Value come numerous and there is a prospect of a regular har­ King or Chinook .•••••...• 513,962 $ 1,900,000 vest of these furs, said to be the most beautiful in the Red or Sockeye •.•.•••••..• 14,824,943 17,700,000 world. Coho or Silver •••..•••.•.• 1,752,653 2,900,000 Pink or Humpback •••.•••.• 39,529,938 14,800,000 Chum or Kela •••••••....•. 6,316,031 4,700,000 Forest Products TOTAL...... , 62,937,527 $ 42,000,000 Production from the two national forests - Tongass This compares with a total landed value in 1965 of and Chugach - is the most important part of the forest $47,370,090. industry in Alaska. The U.S. Forest Service reports that The quantity and landed value of other fish taken in the total volume of timber cut in these areas in 1966 was 1966 more than compensated for the lower value of an estimated 476,000,000 board feet with a stumpage value salmon. It was a record year for king crab production of $1,116,000 and a probable end-product value in the and such a good year for halibut that many fishermen region of $67,782,000. The impact on the Alaskan economy is indicated by the fact that the year's activities on these preferred to continue fishing for halibut during the lands involved the expenditure of about $41,000,000 in salmon season. Shrimp production was up again, and payrolls and local purchase of equipment, supplies and dungeness crab production was slightly above the 1965 services. level. A new prawn fishery followed the development of prawn pots and exploratory fishing in . As compared with the U.S. Forest Service's operations Preliminary figures of quantity and landed values are as the State Forestry activities are small, though growing. The State Forester reports a cut of 31,220,000 board feet follows: in 1966, with a value of $73,728. (The figures, at this Quantity (lbs.) Value date, are estimates.) Sales totaled 48,364,000 board feet, Halibut •...••...•••..•..•• 25,000,000 $ 6,600,000 with a value of $287,826. The U.S. Bureau of Land Man­ King Crab .••••.•.••...•.• 159,600,000 16,000,000 Dungeness Crab •.•.••.•..• 4,000,000 400,000 agement's timber sales during the year were 848,000 board Shrimp •. , .••.•••.•• , •.••• 24,100,000 1,100,000 feet, with a stumpage value of $2,339. The Bureau also $ 24,100,000 TOTALVALUE ...... issued free use permits for 5,036,000 board feet; this tim­ The total sum paid to the fishermen of Alaska in 1966 ber was valued at $11,594. The B.L.M. statistics refer to for all the fish mentioned is therefore $66,100,000, but the financial year ending in 1966; the figures for the U.S. the final figure for the year will be higher because some Forest Service and for the state are for the calendar year species are not included in the preliminary estimates. The 1966. value of fish when landed is only about half the total The forest products industry in Alaska, although still value of the end product. Processing, particularly canning far from its full potential, is on the threshold of a big and freezing, could be regarded as a major industiy in step forward as a result of the huge sale of timber in itself, for the value added by processing is approximately 1965 to the St. Regis Paper Company, which, under the as much as the landed value of the fish. The fact that the terms of the contract, has to build a pulp mill in Southeast canneries and other fish processing plants are located Alaska by 1971. This will be Alaska's third pulp mill within Alaska is, therefore, a most important element in and a decision as to its location is eagerly awaited. Short­ the economy of the state. ly before the end of the year it was announced that the UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 5

of hay. Production of 11,600 tons of hay was 32 percent TABLE 2 more than in 1965, and the highest quantity since 1960. ESTIMATED VALUE OF SELECTED In the case of vegetables, dry conditions in the Tanana AGRICULTURAL COMMODITIES PRODUCED IN ALASKA Valley had an adverse effect principally on the output 1965-1966 of potatoes and carrots. An increase in the total produc­

Percentage tion of carrots was clue to greater output in the Matanuska Commodity 1965 1966 change from Valley. (See Table 2.) 1965-1966 In the dairy i·nclustry the trend of the previous year Milk ...... ····· $2,053,000 $1,750,000: -14.8 Wooi ...... 111,000 n.a . Although this indicates a further improvement in standards Potatoes ...... 756,000 546,000 -27.8 Cabbage ············· 37,000 ~l,000 -16.2 on the farms concerned, there was an overall decrease of Carrots ...... 33,000 51,000 +54.5 8.7 percent in the quantity of milk produced within the Lettuce ··············· 98,000 96,000 - 2.0 Oats ...... ········ 57,000 42,000 -26.3 state. The decrease in number of co,vs was mainly out­ Barley 00000 000000000 I 131,000 140,000 + 6.9 side the Matanuska Valley, and the number of Grade A Hay .... ······· ...... 528,000 673,000 +27.5 Silage ...... 412,000 360,000 -12.6 dairy farms decreased from 45 in 1965 to 40 in 1966.

~ This figure is not an official estimate. From a total of 2,600 dairy cows at the beginning of The value of the output of eggs has not yet been calculated. The 1965 the number fell to 2,400 last year and the industry number of eggs produced rose from 9,200,000 in 1965 lo 10,400,000. SOURCE: U.S. Department of Agriculture, Statistical Reporting Service. starts 1967 with 2,100 dairy cows in Alaska. The number of beef cows rose from 2,000 in January 1965 to 2,200 in 1966, and there are 2,300 at the start of 1967. These company had been given until August 1, 1967 to com­ figures all relate to beasts of two years old and over. plete details of the contract. (Originally it was to be The flock of chickens which was 39,000 strong in 1965 signed in November 1966.) The extension was partly in and 47,000 in 1966, starts 1967 at a figure of 51,000. There order to enable the company to complete an analysis of are now 24,000 sheep on Alaskan farms as compared with possible plant sites. The availability of power from the 23,000 in January last year and 20,000 in January 1965. Snettisham hydroelectric project, south of Ju'lleau, may be a major factor in the location of the mill. State Lands Other projects which have been announced during the During 1966 there were a number of instances of state year include a major sawmill to be established at Met­ lands being brought into new uses in order to help in­ lakatla and another plant in the same area to manu­ dustrial and other development. The Division of Lands, facture building products from cedar. The Puget Sound a part of the State Department of Natural Resources, Plywood Company bought out the large Alaska Pacific assisted industrial development by selling seven industrial Lumber Company sawmill at Wrangell and announced sites for petroleum processing facilities, for the plants for a $1.5 million plant expansion and diversification to manufacture of ammonia and urea, and for marine term­ utilize logs for veneer. Two large mills began production inals. Steps were taken to alleviate land shortages in on a limited scale in Haines, sawing cants for export. Kodiak and other areas. Fifteen land auctions were held, These developments show that the forest industries have and 354 tracts sold or leased. The tracts varied from lot good prospects in addition to the big scheme for a size to several hundred acre sites. The state's income from pulp mill. lands during the calendar year totaled approximately Agriculture $11.7 million. In 1966 agriculture in Alaska progressed in some Land management agreements with five boroughs sectors and suffered setbacks in others. Although the proved effective in providing good management and reve­ total acreage harvested was greater than in the pre­ nue production for borough-selected la'llds. After passage vious year, it was below the average of the years 1960- of the Water Use Act, the Division of Lands prepared suit­ 1964. Production was curtailed by drought in the Tanana able regulations for Alaska. Valley and by too much moisture on the Kenai Pen­ insula. The weather at the end of the season permitted Alaska did not select a large area for additional state the harvest to be completed before the arrival of snow - land in 1966: in fact, the 400,000 acres selected was the unlike 1965 when the early onset of winter caught some lowest figure for any year since statehood. The emphasis of the grain and vegetable crops in the fields. was on filling out previously selected areas so as to make The increase in acreage was mainly dtte to a larger area good management units. STATE of ALASKA: Comparison of Populatic

TOTAL POPULATION IN 1960 POPULATION CIVILIAN POPULATION IN 1965 White Non-White Total (Estimated) 1960 1965

SOUTHEAST ALASKA Election District l 8,812 3,030 11,842 13,482 11,537 13,142 Election District 2 2,769 1,412 4,181 4,996 4,181 4,983 Election District 3 3,739 2,951 6,690 8,225 6,605 8,159 Election District 4 8,243 1,502 9,745 12,415 9,546 12,189 Election District 5 1,791 1,154 2,945 3,172 2,926 3,151 Total Southeast Alaska 25,354 10,049 35,403 42,290 34,795 41,624

Election District 6 3,569 1,034 4,603 4,387 3,951 4,301 Election District 7 4,945 243 5,188 6,125 5,162 6,052 Election District 8 76,575 6,258 82,833 102,337 68,650 87,187 Election District 9 2,620 336 2,956 2,213 2,956 2,162 Election District 10 5,202 895 6,097 8,446 5,694 8,292 Election District 11 5,822 1,352 7,174 9,064 5,367 6,777 Total Southcentral Alaska 98,733 10,118 108,851 132,572 91,780 114,771

WESTERN ALASKA Election District 12 3,690 2,321 6,011 7,405 3,599 4,860 Election District 13 1,423 2,601 4,024 4,423 3,488 4,013 Election District 14 508 5;029 5,537 7,241 5,412 7,156 Election District 17 832 4,861 5,693 6,629 5,455 6,459 Election District 18 1,457 4,634 6,091 6,613 5,587 6,208 Election District 19 173 2,955 3,128 4,441 3,057 4,346 Total Western Alaska 8,083 22,401 30,484 36,752 26,598 33,042

INTERIOR ALASKA Election District 15 2,616 3,782 6,398 7,078 5,477 6,068 Election District 16 39,760 5,271 45,031 46,500 35,028 36,670 Total 42,376 9,053 51,429 53,578 40,505 42,738 TOTAL ALASKA 174,546 51,621 226,167 265,192 193,678 232,175

GOVERNMENT OTHER CIVILIAN MILITARYPERSONNEL EMPLOYMENT EMPLOYMENT UNEMPLOYED

1961 1965 1961 1965 1961 1965 1961 1965 SOUTHEAST ALASKA Election District 1 305 340 669 972 3,217 3,615 661 452 Election District 2 13 235 326 1,113 1,380 308 280 Election District 3 85 66 827 839 1,523 1,801 334 143 Election District 4 199 226 2,709 2,910 2,734 2,859 325 311 Election District 5 19 21 150 218 686 677 95 118 .Total Southeast Alaska 608 666 4,590 5,265 9,273 10,332 1,723 1,304

SOUTHCENTRALALASKA Election District 6 652 86 317 579 923 1,127 160 175 Election District 7 26 73 246 408 1,186 1,295 295 277 Election District 8 14,183 15,150 11,249 13,396 15,440 20,482 1,942 2,249 Election District 9 51 183 225 1,044 520 124 147 Election District 10 403 154 294 445 1,808 2,840 410 449 Election District 11 1,807 2,287 831 783 1,360 1,969 173 174 Total Southcentral Alaska 17,071 17,801 13,120 15,836 21,761 28,233 3,104 3,471

WESTERN ALASKA Election District 12 2,412 2,545 606 806 823 812 122 179 Election District 13 536 410 229 286 963 1,084 102 149 Election District 14 125 85 281 468 437 392 216 393 Election District 17 238 170 248 343 803 727 239 273 Election District 18 504 405 301 523 647 591 264 279 Election District 19 71 95 43 85 215 228 111 180 Total Western Alaska 3,886 3,710 1,708 2,511 3,888 3,834 1,054 1,453

INTERIOR ALASKA Election District 15 921 1,010 285 540 1,434 1,204 211 255 Election District 16 10,003 9,830 4,073 5,515 6,884 7,704 1,350 1,114 Total Interior Alaska 10,924 10,840 4,358 6,055 8,318 8,908 1,561 1,369 TOTAL ALASKA 32,489 33,017 23,776 29,667 43,240 51,307 7,442 7,597

Data compiled by Dr. George W. Rogers for The Arts and Cultural life in Alaska (University of Alaska SEG Report No. 11, November 1966), ncome and Employment Data in 1961 and 1965

POPULATION CHANGES 1960-1965 NON-AGRICULTURALWAGE & UNEMPLOYMENTINSURANCE WELFARE Excess of Births Net Total Total Change SALARY PAYMENTS PAYMENTS PAYMENTS Over Deaths Migration (Incl. Military) 1961 1965 1961 1965 1965

($'000) ($'000) ($'000) ($'000) ($'000) + 1,239 + 401 + 1,640 21,624 25,905 770 455 254 + 320 + 495 + 815 5,699 7,298 293 280 45 + 826 + 709 + 1,535 14,221 16,087 279 147 120 + 1,259 + 1,411 + 2,670 31,474 36,808 351 265 195 + 308 81 + 227 4,271 4,943 142 101 106 + 3,952 + 2,935 + 6,887 77,290 91,041 1,834 1,249 720

+ 372 588 216 6,032 8,691 160 172 92 + 580 + 347 + 927 5,871 7,862 331 285 45 + 14,363 + 5,141 + 19,504 184,607 202,494 2,571 2,294 313 + 188 931 743 4,842 5,313 132 107 58 + 803 + 1,546 + 2,349 6,72'4 9,465 442 525 101 + 1,106 + 784 + 1,890 10,089 11,320 94 139 69 + 17,412 + 6,299 + 23,711 218,166 245,146 3,730 3,522 678

+ 630 + 764 + 1,394 10,559 9,757 55 84 72 + 655 256 + 399 8,744 5,617 104 146 152 + 1,223 + 481 + 1,704 3,387 3,592 180 213 402 + 1,234 298 + 936 6,917 7,317 267 278 397 + 767 245 + 522 5,123 5,306 248 267 395 + 646 + 667 + 1,313 857 961 82 106 203 + 5,155 + 1,113 + 6,268 35,585 32,548 936 1,094 1,620

+ 929 249 + 680 17,013 15,732 284 247 392 + 7,039 5,570 + 1,469 69,503 83,215 1,588 1,059 463 + 7,968 5,819 + 2,149 86,515 98,947 1,871 1,306 854 + 34,487 + 4,538 + 39,025 417,556* 467,682* 8,371* 7,170* 3,873*

UNEMPLOYMENTAS A GOV. EMPLOYMENT TOTALCIVILIAN PERCENTAGEOF TOTAL AS PERCENTAGEOF WORKFORCE SEASONAL PATTERNOF CIVILIAN EMPLOYMENT CIVILIAN WORKFORCE ALL CIVILIAN EMPLOYMENT High Month High Month Low Month Low Month 1961 1965 1961 1965 1961 1965 1961 1965 1961 1965

4,547 5,039 4,578 5,487 3,248 3,487 14.5 9.0 17.2 21.2 1,656 1,986 1,867 2,223 954 1,310 18.6 14.1 17.4 19.1 2,684 2,783 2,806 2,973 2,160 2,266 12.4 5.2 35.2 31.8 5,768 6,080 6,110 6,009 4,569 5,228 5.6 5.1 49.8 50.4 931 1,013 1,282 1,382 577 610 10.2 11.6 17.9 24.4 15,586 16,901 16,643 18,074 11,508 12,901 11.1 7.7 33.1 33.8

1,400 1,881 1,794 2,137 780 1,380 11.4 9.3 25.6 33.9 1,727 1,980 1,866 2,140 1,139 1,477 17.1 14.0 17.2 24.0 28,631 36,127 28,780 37,045 24,331 30,583 6.8 6.2 42.1 39.5 1,351 892 1,343 901 1,077 560 9.2 16.5 14.9 30.2 2,512 3,734 2,761 4,183 1,367 2,051 16.3 12.0 14.0 13.5 2,364 2,926 2,728 3,669 1,962 2,169 7,3 5.9 37.9 28.5 37,985 47,540 39,272 50,075 30,656 38,220 8.2 7.3 34.5 35.9

1,551 1,797 2,143 2,219 1,069 1,213 7.9 10.0 47.0 49.8 1,294 1,519 4,169 4,402 438 436 7.9 9.8 18.2 20.9 934 1,253 892 1,343 527 588 23.1 31.4 39.1 54.4 1,290 1,343 1,603 1,389 748 948 18.5 20.3 23.6 32.1 1,212 1,393 1,315 1,679 713 792 21.8 20.0 31.8 46.9 369 493 492 632 113 148 30.1 36.5 16.7 27.2 6,650 7,798 10,614 11,664 3,608 4,125 15.8 18.6 25.7 32.2

1,930 1,999 2,152 2,106 1,447 1,440 10.9 12.8 16.6 31.0 12,307 14,333 12,827 15,145 9,550 11,030 11.0 7.8 37.2 41.7 14,237 16,332 14,979 17,251 10,997 12,470 11.0 8.4 34.4 40.5 74,458 88,571 81,508 97,064 56,769 67,716 9.9 8.6 35.5 36.7

* The figures in these columns do not agree in detail due lo rounding. PAGE 8 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

Transportation The state Division of Aviation has a continuous pro­ Because of Alaska's geographical location and the gram of airport and airfield construction and improve­ large size of the state itself, air transportation has become ment. This task was greatly increased during late 1965 of primaiy importance. Most passenger travel between and the first half of 1966, when 21 airports formerly Alaska and other parts of the United States is by air owned and operated by the Federal Aviation Agency via Seattle. Even in the peak vacation months there are were transferred to state ownership. more air passengers than by road or ferry; in the winter The Alaska Railroad continues to play an important almost all persons traveling to and from Alaska do so part in the economy of the state. During 1966 it carried by air. The major places of arrival anrl rlPpartiire ,iJ'P thP 147() 007 International Airports at Anchorage and Fairbanks. As 337 tons in 1965. The railroad's regular passenger service shown in Table 3, the total number of passengers using is of less importance, since most passenger travel be­ these two airports was nearly one million in 1966, an tween Anchorage and Fairbanks is by air. However, the increase of almost a quarter of a million over the previous railroad comes into its own during the summer with a year. The biggest increase was in the number of through heavy load of tourist traffic. Passengers carried in 1966 passengers on the international airlines at Anchorage. totaled 39,055. Total freight carried in and out of Alaska by air is now The Alaska Ferry System was busier than ever in 1966. in the neighborhood of 50,000 tons annually, a growth In the second half of the year, which includes the major of nearly 10,000 tons since 1965. tourist months of July and August, the revenue on the Anchorage airport handles regular traffic to Japan and Southeast ferry was $2,198,405, an increase of 23 percent over the pole to Europe; applications by airlines to use over the same period in 1965. This represented the car­ Fairbanks as a stopping place for flights from the Eastern riage of 89,132 passengers and 20,146 motor vehicles. The U.S. to Japan are at present under examination by the Southwest ferry, serving Kodiak, Valdez, Cordova and Civil Aeronautics Board. Anchorage and Fairbanks pro­ Anchorage, carried 4,216 passengers and 1,586 vehicles vide air services, both scheduled and chartered 1 to prin­ and earned a revenue of $131,496. Over the year, the cipal Alaskan towns and to more than 200 airfields revenue increase on the entire system was approximately in the state. Air transportation, both within the state itself 25 percent, there having been an increase of about 35 and between Alaska and other places, has become one percent in the earnings for the months of July and of the major factors in Alaska's economy, and during August. A bond issue of $15.5 million was approved by 1966 it continued its steady growth. the state electors in November for improvements and ex­ tension of the capital facilities of the feny system. The introduction of modern cargo handling facilities TABLE 3 in the state continued in several places. The Port of INTERNATIONAL AIRPORT TRAFFIC Anchorage completed its petroleum berth and commenced ANCHORAGE AND FAIRBANKS construction of a second general cargo and van loading

1965 1966 berth. A high speed container crane ,vas installed to han­ dle the increasing volume of vans across the facility. A Passengers new and efficient multi-purpose terminal came into use Anchorage In 202,209 222,769 at Seward. This completely up-to-elate facility of the Out 211,001 224,344 Alaska Railroad replaces the clock which was destroyed Through 167,853 359,943 Total 581,063 807,056 by the 1964 earthquake and tidal waves. New terminal Fairbanks and handling facilities also came into use at Kenai and In 73,108 76,358 Out 72,011 75,240 Juneau during the year. A bulk loading facility was erect­ Through 7,774 n.a. ed and utilized for the export of barite ore at Duncan Total 152,893 Canal near Petersburg. Freight (tons) A highlight of Alaska's waterborne commerce in 1966 Anchorage In 10,187 10,306 was the further consumer acceptance of containerized Out 15,968 22,506 Total 26,155 32,812 shipments to the railbelt. :Millions of dollars have been Fairbanks invested in specialized handling facilities (canned salmon In 5,299 5,641 and containers) for the support of the Alaska trade by the Out 9,460 11,183 Total 14,759 16,824 Port of Seattle during the year.

SOURCE: Alaska State Department of Public Works, Division of Aviation. During 1966 there were the usual minor adjustments of rates by the competing railbelt carriers. A fifteen UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 9 percent increase to Southeastern ports along with sched­ state ferries in Southeast Alaska is referred to in the ule frequency changes has caused concern to the con­ section on transportation.) Some international tourism, sumers of that area. The Southeast rate increase, along although on a small scale so far, has developed by pas­ with proposed increases to the , the sengers on international airlines spending a short time and Bristol Bay, is under investigation in Alaska under "stopover" arrangements. by the Federal lvlaritime Commission. There was a conspicuous amount of preparation for Despite the extensive use of aircraft for freight move­ the increased number of visitors who will come to Alaska ment within Alaska, the amount of goods moved by road in 1967. New hotel accommodations and improved trans­ has increaspd greatlv. The number of trncks operating in portation facilities rup 11Ping provided. A spPcial tomist Alaska in 1966 was approximately 2,000 more than in promotion program was launched during the year. 1965. The total number of trucks in use, both by private Congress appropriated $4.6 million in 1966 to be used owners and by transportation companies, is now 34,500. on a 50-50 matching basis for 30 centennial projects and Nevertheless, road transportation in Alaska must be con­ five exhibition sites. Fairbanks, which is the location of sidered as still in its infancy, owing to the small mileage the central centennial exposition, will have gained a Pio­ of roads available for such a vast territory. neer memorial park with several major permanent public The provision of an adequate network of roads is one buildings when the exposition is over. Many other places of the greatest tasks facing Alaska today. This was recog­ in the state will also have lasting memorials, in the prep­ nized by Congress in August when a special allocation of $14 million per year for five ye~rs was authorized for aration of which they have had technical assistance from construction and maintenance. This was the State Division of Lands. The historical importance of in addition to the $40 million already authorized annually Sitka, the capital of Russian Alaska, has not been over- under the general federal highway aid legislation. Highway construction was at an all time high during 1966, with a total of $87,572,000 worth of work under TABLE 4 contract. This work included construction of 149 miles ALASKA STATE FINANCE of new highways and 310 miles of major reconstruction. 1965-1966 Twenty-nine bridges were completed and 406 miles of road were given bituminous paving. This is the largest Fiscal Year Fiscal Year paving program in the . A major item in Ended Ended June 30, 1965 June 30, 1966 the year's work was the first stage of construction of the bridge at Nenana to carry the new Anchorage/Fairbanks REVENUES (Dollars) (Dollars) highway across the Tanana River. The highway is a few Taxes ...... , ...... 36,615,950 43,781,848 Federal Program Augmentation .. 66,805,326 64,627,710 years from completion, with the difficult central section Fund Receipts from Federal through scenic country yet to be built. Government ...... 26,057,784 12,701,681 Mineral leases and Royalties .. . 7,812,855 13,586,298 The immediate problems which faced the state high­ Business Licenses, Fees and Permits ...... 1,528,396 1,791,622 way department after the 1964 earthquake have now Non-Business Licenses ...... , 3,010,883 4,490,863 been overcome: under the emergency reconstruction pro­ Miscellaneous ...... 9,155,325 11,583,623 gram, 90 miles of road were completed in 1965 and TOTAL ...... 150,986,519 152,563,645 another 60 miles in 1966. The major job of earthquake reconstruction still outstanding is the Copper River Road. EXPENDITURES Education ...... 35,777,202 39,714,426 Due to the heavy loss of roadway and bridges in this Health and Welfare .... , ... . 15,226,446 16,726,105 area, it was necessary to re-survey the route, and this Highways and Public Works ... . 16,332,705 18,400,010 Conservation of Natural preparatory study was completed in 1966. Resources and Development .. 5,587,234 6,795,064 Earthquake Programs ...... 6,822,415 1,557,312 Tourism General Government and Other Expenses ...... 16,937,339 22,111,816 The tourist industry is one which defies accurate Capital Outlay Budgets: Highways ...... 52,908,878 45,595,722 measurement, but estimates are that between 130,000 Public Works ...... 3,068,368 4,197,441 and 145,000 tourists came to Alaska in 1966. There was Other ...... ___ _ 106,966 definitely a large increase in numbers as compared with TOTAL 152,660,587 155,204,862 1965: tour operators reported increases of from 22 per­ cent to 38 percent, and all airlines showed significant SOURCE: State of Alaska, Annual Financial Reports of the Division of Finance. gains in total passengers. (The heavy booking on the PAGE 10 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH looked, with improvements made at the Baranof Castle The number of passengers entering Alaska by road Hill Historical Site. through Tok was some 6,000 more in .1966 than in 1965, The Division of Lands has had support from federal reaching a total of over 76,000 people. These were not land and water conservation fund money to improve the all tourists, but it is certain that the large majority were, facilities in the state for outdoor recreation. :t\fore than since more than half of the total passed through Tok $800,000 in federal grants has been allocated and a in the peak tourist months of July and August. survey of demand for recreation is in progress. The State Finances 20,000 acre Nancy Lake Recreation Area, near vVasilla, The importance of Federal contributions to Alaska's was estal,lished hv legisfative action :mcl progress has 1evemw is shown iu Table 4. income .horn Federal been made on planning and road construction. The im­ sources was 61.5 percent of total income in the fiscal provement of these and other facilities will add notice­ year ending June 30, 1965, and 50.7 percent of the total ably to the attraction of Alaska as a vacation center. in fiscal year 1966. The principal reasons for the de­ crease were a drop in transitional grants of $11.7 million and the lack of any receipts in fiscal year 1966 from the TABLE 5 sale of fur sealskins from the Pribilof Islands (which had AVERAGE YEARLY EMPLOYMENT AND PERCENTAGE brought the State $964,000 the year before). Federal CHANGE BY INDUSTRY IN ALASKA Program Augmentation is the heading under which the 1965-1966 State receives federal monies for a large number of Percentage health and welfare schemes including employment secur­ Change in Yearly ity, school milk, head start, native health, medicare, and Yearly Yearly Average water pollution control; and for forestry protection, land Average Average from 1965 1966 1965-1966 and water conservation, highway maintenance, and fed­ eral aid airport projects. The fund receipts from the Civilian Work Force 85,900 90,625 + 5.5 Total Unemployment 6,100 8,317 +36.3 federal government are Alaska's share of proceeds from Percent of Work Force 7.1 9.3 the state's natural resources: national forest timber sales, Total Employment 79,800 82,258 + 3.1 oil and gas lease royalties, Pribilof Islands fur seals, and Non-agricultural wage and salary 69,600 72,333 + 3.9 other items. Non-business licenses include hunting and Mining 1,100 1,183 + 0.8 Construction 6,500 5,633 -13.3 trapping licenses, motor vehicle licenses and plates, and Manufacturing 6,100 6,508 + 6.7 various fees. 3,000 3,092 + 3.1 Food Processing The net tax and license collections for the fiscal year Logging, Lumber & Pulp 2,200 2,467 +12.1 Other Manufacturing 900 950 + 5.6 1965-66 were some $9 million above the total for the Transportation, Communications previous year. This was an increase of nearly 22 percent, and Utilities 7,200 7,267 + 0.9 accomplished without tax increases. Trucking and Warehousing 1,100 1,117 + 1.6 Water Transportation 1,200 1,142 - 4.8 Table 4 also shows the expenditure for the fiscal years Air Transportation 1,900 1,942 + 2.2 1965 and 1966. This shows little change between the Other Transportation, two years except for the decrease in payments on the Communications and Utilities 3,000 3;067 + 2.2 earthquake disaster programs from nearly $7 million in Trade 9,500 10,592 +11.5 Wholesale Trade 1,800 2,067 +14.8 1965 to just over $1.5 million in 1966. The increase in Retail Trade 7,700 8,525 +10.7 general government and other expenses of some $5 million General Merchandise included a rise of about $1 million in expenditure on and Apparel 2,000 2,342 +11.1 Food Stores 1,100 1,242 +12.9 rural development and smaller increases in a number of Eating and Drinking Places 1,900 1,992 + 4.8 other items. Other Retail Trade 2,700 2,950 + 9.3 Through the Alaska State Development Corporation, Finance, Insurance and Real Estate 2,100 2,292 + 9.1 revenue bonds to the amount of $18 million were author­ Service and Miscellaneous 7,400 7,958 + 7.5 ized to provide loans for the construction of tourist and Government 29,700 30,900 + 4.0 other facilities to stimulate economic development. 17,400 17,625 Federal + 1.3 Under this program building began during the year on State 7,100 7,550 + 6.3 Local 5,200 5,725 +10.1 16 tourist accommodations, 13 industrial and mining projects, six retail centers and service units, five office SOURCE: Computed from data obtained from the Employment Security Division of the Alaska Department of Labor. buildings, two sets of multi-unit housing in support of industry, and two transportation facilities. UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 11

Business increase than employment in several other sectors. The There has been extremely rapid growth in the business effect has been to make Alaska somewhat less dependent sector in Alaska during recent years. Gross business on military expenditures and federal public works con­ receipts reported in 1964 exceeded $1 billion for the first struction, and to that extent has made for a healthier time, with a growth of $55 million or 5.7 percent over economy. Federal employment, in fact, rose very little­ 1963. In 1965 a much greater increase of $211 million only 1.3 percent or 225 persons, the greatest increase in represented a growth of no less than 20.5 percent for government employment being in local government, the year. Data for 1966 are not available yet, but a where there was a growth of 10 percent (525 jobs). State thP of government emplovees increaser! in nnmher l1v 4.'50. or is likely to be reported. (The figures mentioned do not 6.3 percent. include the fishing or mining industries, nor the sale The next largest category of employment in Alaska of alcoholic beverages.) is in trade, which gave jobs to 10,592 people in 1966 as There has also been a steady growth in the number against 9,500 in 1965, an increase of 11.5 percent. Retail of businesses licensed within the state over these years: trade now employs more than 8,500 people. Calendar Year No. of Licenses Issued Manufacturing is a comparatively small, but growing, 1963 10,217 1964 11,055 part of the economy of Alaska. The expansion of 6.7 per­ 1965 11,799 cent from 1965 to 1966 was due mainly to an increase of 1966 12,010 267 in the number of workers in logging, lumber and In the fiscal year 1965-66, a total of 484 new domestic pulp. With the advent of a petro-chemical industry, corporations and 118 new foreign corporations were manufachuing seems headed for rapid growth. Em­ added to the state file. Taken together, this was an ployment in transportation. communications and utilities increase of 7.1 percent over the number of new corpora­ changed little from 1965 to 1966. This sector, at present tions filed the year before. On June 30, 1966, there employing some 7,200 persons, may be expected to were approximately 5,000 active corporations on file. grow with increase of population and as industry Employment develops. The largest employment sector in the Alaskan economy The only major category of employment to show a remains government employment (Table 5). Although the decided decrease in 1966 was construction, which em­ total number so employed was some 1,200 more in 1966 ployed about 900 fewer workers than in 1965. This was than in 1965, this represented a smaller proportionate mainly a matter of readjustment after completion of

TABLE 6 HOURS WORKED AND AVERAGE EARNINGS SELECTED INDUSTRIES Alaska, 1965-1966 Percentage Change 1965 1966 a From 1965 to 1966 Average Average Average Average Average Average Average Average Average Weekly Weekly Hourly Weekly Weekly Hourly Weekly Weekly Hourly Industry Earnings Hours Earnings Earnings Hours Earnings Earnings Hours Earnings

Mining $206.27 48.3 $ 4.27 $204.08 46.7 $ 4.37 -1. l -3.3 +2.3 Contract Construction 286.68 43.7 6.56 300.91 43.7 6.87 +5.o 0 +4.7 Manufacturing 154.83 41.2 3.77 161.48 41.2 3.92 +4.3 0 +4.0 Food Processing 117.40 39. l 2.99 122.53 40.0 3.05 +4.4 +2.3 +2.0 Logging-Lumber & Pulp 178.84 42.8 4.18 183.97 41.6 4.42 +2.9 -2.8 +5.7 Wholesale Trade 165.12 39.7 4.16 169.30 40. l 4.22 +2.5 +1.0 +1.4 Retail Trade b 117.47 35.7 3.29 117.7 4 34.9 3.38 +0.2 -2.2 +2.7 Finance-Insurance & Real Estate 103.42 l 06.55 +3.0

~ Based on figures for the first 11 months of the year. Excludes eating and drinking places. SOURCE: Computed from data obtained from the Employment Security Division, Alaska State Department of Labor. PAGE 12 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH post-earthquake reconsh·uction, and is not an indication of serious decline. Some reductions have been made in TABLE 7 garrison strengths in Alaska in 1966, and the effects of this PERSONAL INCOME IN ALASKA BY MAJOR SOURCES on the economy probably include some reduction of 1963-1965 demands on the construction industry. (millions of dollors)

The Employment Security Division of the Alaska Percentage Changes State Department of Labor made 9,899 job placements 1963 1964 1965 1963-64 1964-65 in the fiscal year 1965-66, compared with 11,387 in Personal Income ...... 704 789 851 +12.1 + 7.9 Wage and Salary 1964 The 18 8 Disbursements , , ..... , , .. 584 665 716 +13.9 + 7.7 decreased activity in Anchorage, where there had been Services ················· 44 49 55 +11.3 +12.2 much earthquake reconstruction in 1965. Job openings Other Labor Income ..... 18 20 23 +11.1 +15.o Proprietors' Income ...... 53 48 50 - 9.4 + 4.2 notified to the employment service totaled 14,468 in Properly Income ...... 38 46 51 +21.1 +10.9

1965-66, which was 2.7 percent less than in 1964-65. SOURCE: U.S. Department of Commerce, Office of Business Economics. Only 267 of these jobs were not filled as compared with 860 in the previous year. Prospects for 1967 Unemployment remains an· intractable problem in It is evident that 1966 was part of a "settling in" period Alaska. Although it is strongly seasonal - a reflection for Alaska, a time when energies and finances were of the climatic conditions - the average over the whole applied to enterprises and industries which were con­ of 1966 was 9.3 percent, a considerable increase over ceived as long term investments. Thus, an unusually the year before. The capacity for growth already shown large amount of the work accomplished was not ex­ by the Alaskan economy and the prospects of big in­ pected to bring immediate financial results. At the same dustrial developments do encourage hope that the num­ time there were areas of increased production that ber of unemployed can be sharply reduced in the next brightened the economic picture of the entire state: fish­ few years. Meanwhile, the state Depa1tment of Labor eries and forest products both reached high output levels uses the machinery of the federal Manpower Develop­ and there were notable advances in trade activity. De­ ment and Training Act to identify occupational training velopment such as road building, laying the foundation needs, select trainees and organize training. There were for a chemical industry, improving port cargo facilities, 44 training programs, attended by 867 unemployed and and the work connected with the 1967 centennial celebra­ underemployed persons during the year. tions - all these were "good faith" investments. Population and Income Naturally some of the investments will produce results Although precise figures will not be known until after in 1967. For instance, the centennial is expected to bring the 1970 census, official estimates show that Alaska's large numbers of tourists into the state who would not population continues to grow. The estimate for July 1, normally be counted on. The centennial promotion will 1966 was 272,000. This is a small population for a vast bring Alaska to the attention of the traveling public witl1 area, but it represents more than a 20 percent increase resultant permanent broadening of the tourist industry. since the census in 1960. At this rate, a population of The oil industry is an outstanding example of an 300,000 by the next census seems assured. enterprise growing in present economic production while Aggregate personal income is a measure of the com­ at the same time preparing for the future. There was bined effect of growth of population and increase in heavy investment in drilling and handling equipment per capita income. In Alaska, the total of personal in­ for Alaska during 1965 and 1966. The resulting increase comes is estimated (by the magazine "Business Week") in oil and gas production, and the associated growth in to have risen in 1966 by 6.9 percent: from $851 million employment, is not expected for several years. Even so, in 1965 to $908 million. This is well above the population during 1966 · the oil and gas industry registered an ad­ rise of some 2 percent, but does represent a slowing vance of more than 20 percent in production. down of the rate of growth from the figure of 7.9 The period of solid progress in Alaska's output, com­ percent between 1964 and 1965, and from 12.1 percent bined with strong emphasis on laying the groundwork between 1963 and 1964. (See the official figures of the for further economic development, is likely to continue U.S. Department of Commerce for three recent years in 1967. Thus, as the industries of the state continue to in Table 7.) It is also below the estimated growth of grow, it can be expected that Alaska's economy for a 7.9 percent for 1965-66 in total personal income for the number of years ahead will be characterized by invest­ nation as a whole. ments directed at an ever-rising level of future production.